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Segment Operating Results
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Operating Results Segment Operating Results
Business Segments – The Company's business results are categorized into the following two segments: Investment Banking and Investment Management. Investment Banking includes providing advice to clients on significant mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company.
The Company's segment information for the three and nine months ended September 30, 2022 and 2021 is prepared using the following methodology:
•Revenue, expenses and income (loss) from equity method investments directly associated with each segment are included in determining pre-tax income.
•Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other performance and time-based factors.
•Segment assets are based on those directly associated with each segment, or for certain assets shared across segments, those assets are allocated based on the most relevant measures applicable, including headcount and other factors.
•Investment gains and losses, interest income and interest expense are allocated between the segments based on the segment in which the underlying asset or liability is held.
Other Revenue, net, included in each segment's Net Revenues includes the following:
•Interest income and income (losses) on investment securities, including the Company's investment funds which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents, long-term accounts receivable and on the Company’s debt security investment in G5 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full. See Note 7 for further information.)
•A gain on the sale of a portion of the Company's interests in ABS in the first quarter of 2022. See Note 7 for further information
•Gains (losses) resulting from foreign currency fluctuations
•Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company
•Interest expense associated with the Company’s Notes Payable and lines of credit
•Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates
Each segment's Operating Expenses include: a) employee compensation and benefits expenses that are incurred directly in support of the segment and b) non-compensation expenses, which include expenses for premises and occupancy, professional fees, travel and entertainment, communications and information services, execution, clearing and custody fees, equipment 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, legal, technology, human capital, facilities management and senior management activities.
Other Expenses includes the following:
•Special Charges, Including Business Realignment Costs – Includes expenses in 2022 related to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees related to the ongoing liquidation of the Company's operations in Mexico. Includes expenses in 2021 related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's investment strategy, the Company decided to wind down during the third quarter.
•Acquisition and Transition Costs – Includes costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services.
The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses.
No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three and nine months ended September 30, 2022.
The following information presents each segment's contribution.
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2022202120222021
Investment Banking
Net Revenues(1)
$560,518 $806,918 $1,880,069 $2,125,023 
Operating Expenses433,599 556,277 1,404,711 1,480,963 
Other Expenses(2)
— — 532 7 
Operating Income126,919 250,641 474,826 644,053 
Income from Equity Method Investments451 564 989 1,282 
Pre-Tax Income $127,370 $251,205 $475,815 $645,335 
Identifiable Segment Assets$2,986,364 $3,097,453 $2,986,364 $3,097,453 
Investment Management
Net Revenues(1)
$16,419 $16,637 $50,639 $48,707 
Operating Expenses12,939 13,571 39,520 37,832 
Other Expenses(2)
— 8,554 — 8,554 
Operating Income (Loss)3,480 (5,488)11,119 2,321 
Income from Equity Method Investments1,576 3,117 5,824 8,817 
Pre-Tax Income (Loss)$5,056 $(2,371)$16,943 $11,138 
Identifiable Segment Assets$164,905 $174,435 $164,905 $174,435 
Total
Net Revenues(1)
$576,937 $823,555 $1,930,708 $2,173,730 
Operating Expenses446,538 569,848 1,444,231 1,518,795 
Other Expenses(2)
— 8,554 532 8,561 
Operating Income130,399 245,153 485,945 646,374 
Income from Equity Method Investments2,027 3,681 6,813 10,099 
Pre-Tax Income$132,426 $248,834 $492,758 $656,473 
Identifiable Segment Assets$3,151,269 $3,271,888 $3,151,269 $3,271,888 
(1)Net Revenues include Other Revenue, net, allocated to the segments as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2022202120222021
Investment Banking(A)
$(5,603)$(2,559)$(40,066)$11,258 
Investment Management778 (323)1,915 615 
Total Other Revenue, net$(4,825)$(2,882)$(38,151)$11,873 
(A)Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $4,188 and $12,696 for the three and nine months ended September 30, 2022, respectively, and $4,393 and $13,269 for the three and nine months ended September 30, 2021, respectively.
(2)Other Expenses are as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2022202120222021
Investment Banking
Special Charges, Including Business Realignment Costs$— $— $532 $— 
Acquisition and Transition Costs— — — 7 
Total Investment Banking— — 532 7 
Investment Management
Special Charges, Including Business Realignment Costs— 8,554 — 8,554 
Total Investment Management— 8,554 — 8,554 
Total Other Expenses$— $8,554 $532 $8,561 
Geographic Information – The Company manages its business based on the profitability of the enterprise as a whole.
The Company's revenues were derived from clients located and managed in the following geographical areas:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2022202120222021
Net Revenues:(1)
United States$374,571 $659,158 $1,408,491 $1,648,128 
Europe and Other206,893 165,065 553,926 508,796 
Latin America298 2,214 6,442 4,933 
Total$581,762 $826,437 $1,968,859 $2,161,857 
(1)Excludes Other Revenue, Including Interest and Investments, and Interest Expense.
The Company's total assets are located in the following geographical areas:
September 30, 2022December 31, 2021
Total Assets:
United States$2,565,503 $3,199,435 
Europe and Other585,766 603,222 
Total$3,151,269 $3,802,657