Segment Information

9 Months Ended

Sep. 30, 2022

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. 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 and nine month periods ended September 30, 2022 and 2021 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.

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						Nine Months Ended
		September 30,						September 30,
		2022			2021			2022			2021
Financial Advisory	Net Revenue	$	456,521		$	384,976		$	1,254,621		$	1,155,328
	Operating Expenses		341,578			304,482			956,410			931,612
	Operating Income	$	114,943		$	80,494		$	298,211		$	223,716
Asset Management	Net Revenue	$	298,797		$	338,747		$	926,449		$	1,051,492
	Operating Expenses		233,614			246,094			707,676			747,511
	Operating Income	$	65,183		$	92,653		$	218,773		$	303,981
Corporate	Net Revenue (Loss)	$	(28,574	)	$	(6,294	)	$	(119,888	)	$	(6,147	)
	Operating Expenses (Credit)		(6,590	)		11,894			(46,612	)		66,040
	Operating Loss	$	(21,984	)	$	(18,188	)	$	(73,276	)	$	(72,187	)
Total	Net Revenue	$	726,744		$	717,429		$	2,061,182		$	2,200,673
	Operating Expenses		568,602			562,470			1,617,474			1,745,163
	Operating Income	$	158,142		$	154,959		$	443,708		$	455,510

	As Of
	September 30, 2022		December 31, 2021
Total Assets
Financial Advisory	$	1,175,237	$	1,239,964
Asset Management		912,481		1,128,549
Corporate		4,120,207		4,778,668
Total	$	6,207,925	$	7,147,181