19.	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. 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, 2018 and 2017 is prepared using the following methodology:

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

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

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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,
		2018			2017
Financial Advisory	Net Revenue	$	409,121		$	335,812
	Operating Expenses		324,696			262,751
	Operating Income	$	84,425		$	73,061
Asset Management	Net Revenue	$	354,283		$	283,363
	Operating Expenses		229,669			188,751
	Operating Income	$	124,614		$	94,612
Corporate	Net Revenue	$	(8,706	)	$	4,289
	Operating Expenses		14,505			21,765
	Operating Loss	$	(23,211	)	$	(17,476	)
Total	Net Revenue	$	754,698		$	623,464
	Operating Expenses		568,870			473,267
	Operating Income	$	185,828		$	150,197

	As Of
	March 31, 2018		December 31, 2017
Total Assets
Financial Advisory	$	866,734	$	843,142
Asset Management		686,724		756,398
Corporate		2,931,637		3,329,137
Total	$	4,485,095	$	4,928,677