Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

18. SEGMENT INFORMATION

The Company’s reportable segments offer different products and services and are managed separately as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed to determine the allocation of resources and to assess its performance. The Company’s principal operating activities are included in its Financial Advisory and Asset Management business segments as described in Note 1 above. In addition, as described in Note 1, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month periods ended March 31, 2017 and 2016 is prepared using the following methodology:

• Revenue and expenses directly associated with each segment are included in determining operating income.

• Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

• Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors.

The Company allocates investment gains and losses, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

Each segment’s operating expenses include (i) compensation and benefits expenses incurred directly in support of the businesses and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, human resources, legal, facilities management and senior management activities.

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

		Three Months Ended
		March 31,
		2017			2016
Financial Advisory	Net Revenue	$	335,812		$	266,014
	Operating Expenses		262,751			227,078
	Operating Income	$	73,061		$	38,936
Asset Management	Net Revenue	$	283,363		$	245,759
	Operating Expenses		188,751			175,161
	Operating Income	$	94,612		$	70,598
Corporate	Net Revenue	$	4,289		$	(13,555	)
	Operating Expenses		21,765			(2,398	)
	Operating Loss	$	(17,476	)	$	(11,157	)
Total	Net Revenue	$	623,464		$	498,218
	Operating Expenses		473,267			399,841
	Operating Income	$	150,197		$	98,377

	As Of
	March 31, 2017		December 31, 2016
Total Assets
Financial Advisory	$	828,374	$	907,035
Asset Management		572,915		645,653
Corporate		2,983,969		3,003,820
Total	$	4,385,258	$	4,556,508