Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

23. 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 years ended December 31, 2021, 2020 and 2019 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 records other revenue, 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.

For the years ended December 31, 2021, 2020 and 2019, no individual client constituted more than 10% of the net revenue of any of the Company’s business segments.

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:

		As of or for the Year Ended December 31,
		2021			2020			2019
Financial Advisory	Net Revenue	$	1,764,509		$	1,420,501		$	1,374,036
	Operating Expenses (a)		1,356,567			1,130,850			1,225,795
	Operating Income	$	407,942		$	289,651		$	148,241
	Total Assets	$	1,239,964		$	1,181,783		$	1,144,339
Asset Management	Net Revenue	$	1,424,985		$	1,167,466		$	1,237,390
	Operating Expenses (a)		1,032,825			861,031			887,522
	Operating Income	$	392,160		$	306,435		$	349,868
	Total Assets	$	1,128,549		$	958,588		$	821,641
Corporate	Net Revenue	$	3,554		$	(21,829	)	$	(24,653	)
	Operating Expenses (a)		79,808			72,116			80,758
	Operating Loss	$	(76,254	)	$	(93,945	)	$	(105,411	)
	Total Assets	$	4,778,668		$	3,831,490		$	3,673,601
Total	Net Revenue	$	3,193,048		$	2,566,138		$	2,586,773
	Operating Expenses (a)		2,469,200			2,063,997			2,194,075
	Operating Income	$	723,848		$	502,141		$	392,698
	Total Assets	$	7,147,181		$	5,971,861		$	5,639,581

(a) Operating expenses include depreciation and amortization of property as set forth in table below.

	Year Ended December 31,
	2021		2020		2019
Financial Advisory	$	8,480	$	6,104	$	5,492
Asset Management		5,618		3,730		2,995
Corporate		24,217		25,261		27,085
Total	$	38,315	$	35,095	$	35,572

Geographic Information

Due to the highly integrated nature of international financial markets, the Company manages its business based on the profitability of the enterprise as a whole. Accordingly, management believes that profitability by geographic region is not necessarily meaningful. The Company’s revenue and identifiable assets are generally allocated based on the country or domicile of the legal entity providing the service.

The following table sets forth the net revenue from, and identifiable assets for, the Company and its consolidated subsidiaries by geographic region allocated on the basis described above. In the table below, Americas principally includes the U.S., EMEA principally includes the U.K. and France, and Asia Pacific principally includes Australia.

	As of or for the Year Ended December 31,
	2021		2020		2019
Net Revenue:
Americas	$	1,780,815	$	1,530,100	$	1,544,063
EMEA		1,251,058		885,924		873,007
Asia Pacific		161,175		150,114		169,703
Total	$	3,193,048	$	2,566,138	$	2,586,773
Operating Income:
Americas	$	399,916	$	362,446	$	241,992
EMEA		295,991		109,991		120,481
Asia Pacific		27,941		29,704		30,225
Total	$	723,848	$	502,141	$	392,698
Identifiable Assets:
Americas	$	4,011,071	$	3,124,103	$	2,908,926
EMEA		2,933,180		2,534,168		2,437,788
Asia Pacific		202,930		313,590		292,867
Total	$	7,147,181	$	5,971,861	$	5,639,581