Segments (Tables)

6 Months Ended

Jun. 30, 2020

The following table presents the financial data for the Company’s three segments for the three months ended June 30, 2020 (in millions):


	Three Months Ended June 30, 2020
	Quant & Solutions		Alter-natives		Liquid Alpha		Other		Reconciling Adjustments			Total U.S. GAAP⁽¹⁾
ENI revenue	$	82.8	$	42.5	$	47.1	$	0.1	$	2.2	(a)	$	174.7

ENI operating expenses	35.0		15.7		17.4		5.9		16.4		(b)	90.4
Earnings before variable compensation	47.8		26.8		29.7		(5.8)		(14.2)			84.3
Variable compensation	17.7		9.7		11.2		0.8		7.7		(c)	47.1
ENI operating earnings (after variable comp)	30.1		17.1		18.5		(6.6)		(21.9)			37.2
Affiliate key employee distributions	1.3		6.9		2.8		—		—			11.0
Earnings after Affiliate key employee distributions	28.8		10.2		15.7		(6.6)		(21.9)			26.2
Net interest expense	—		—		—		(5.6)		(1.6)		(d)	(7.2)
Net investment income	—		—		—		—		42.2		(e)	42.2
Net income attributable to non-controlling interests in consolidated Funds	—		—		—		—		(35.0)		(e)	(35.0)
Income tax (expense) benefit	—		—		—		(9.6)		2.3		(f)	(7.3)
Economic net income	$	28.8	$	10.2	$	15.7	$	(21.8)	$	(14.0)		$	18.9

The following table presents the financial data for the Company’s three segments for the three months ended June 30, 2019 (in millions):


	Three Months Ended June 30, 2019
	Quant & Solutions		Alter-natives		Liquid Alpha		Other		Reconciling Adjustments			Total U.S. GAAP⁽¹⁾
ENI revenue	$	93.7	$	44.3	$	66.5	$	0.1	$	2.5	(a)	$	207.1

ENI operating expenses	39.7		15.6		19.9		7.8		14.7		(b)	97.7
Earnings before variable compensation	54.0		28.7		46.6		(7.7)		(12.2)			109.4
Variable compensation	20.0		10.4		15.7		2.3		0.6		(c)	49.0
ENI operating earnings (after variable comp)	34.0		18.3		30.9		(10.0)		(12.8)			60.4
Affiliate key employee distributions	1.6		6.4		5.8		—		—			13.8
Earnings after Affiliate key employee distributions	32.4		11.9		25.1		(10.0)		(12.8)			46.6
Net interest expense	—		—		—		(6.2)		(2.3)		(d)	(8.5)
Net investment loss	—		—		—		—		(2.4)		(e)	(2.4)
Net loss attributable to non-controlling interests in consolidated Funds	—		—		—		—		6.4		(e)	6.4
Income tax expense	—		—		—		(12.2)		(1.9)		(f)	(14.1)

Economic net income	$	32.4	$	11.9	$	25.1	$	(28.4)	$	(13.0)		$	28.0

The following table presents the financial data for the Company’s three segments for the six months ended June 30, 2020 (in millions):


	Six Months Ended June 30, 2020
	Quant & Solutions		Alter-natives		Liquid Alpha		Other		Reconciling Adjustments			Total U.S. GAAP⁽¹⁾
ENI revenue	$	168.9	$	84.4	$	99.6	$	0.2	$	4.2	(a)	$	357.3

ENI operating expenses	72.1		32.3		37.2		13.6		(12.2)		(b)	143.0
Earnings before variable compensation	96.8		52.1		62.4		(13.4)		16.4			214.3
Variable compensation	34.7		18.9		23.7		1.8		14.1		(c)	93.2
ENI operating earnings (after variable comp)	62.1		33.2		38.7		(15.2)		2.3			121.1
Affiliate key employee distributions	2.1		12.7		6.0		—		—			20.8
Earnings after Affiliate key employee distributions	60.0		20.5		32.7		(15.2)		2.3			100.3
Net interest expense	—		—		—		(11.2)		(3.5)		(d)	(14.7)
Net investment income	—		—		—		—		11.3		(e)	11.3
Net income attributable to non-controlling interests in consolidated Funds	—		—		—		—		(24.5)		(e)	(24.5)
Income tax expense	—		—		—		(19.6)		(1.3)		(f)	(20.9)
Economic net income	$	60.0	$	20.5	$	32.7	$	(46.0)	$	(15.7)		$	51.5

The following table presents the financial data for the Company’s three segments for the six months ended June 30, 2019 (in millions):


	Six Months Ended June 30, 2019
	Quant & Solutions		Alter-natives		Liquid Alpha		Other		Reconciling Adjustments			Total U.S. GAAP⁽¹⁾
ENI revenue	$	184.2	$	88.3	$	137.6	$	0.2	$	4.0	(a)	$	414.3

ENI operating expenses	79.6		33.3		41.4		17.2		(0.7)		(b)	170.8
Earnings before variable compensation	104.6		55.0		96.2		(17.0)		4.7			243.5
Variable compensation	38.7		20.2		32.6		5.6		4.6		(c)	101.7
ENI operating earnings (after variable comp)	65.9		34.8		63.6		(22.6)		0.1			141.8
Affiliate key employee distributions	2.6		12.1		12.5		—		—			27.2
Earnings after Affiliate key employee distributions	63.3		22.7		51.1		(22.6)		0.1			114.6
Net interest expense	—		—		—		(9.7)		(4.7)		(d)	(14.4)
Net investment income	—		—		—		—		18.2		(e)	18.2
Net income attributable to non-controlling interests in consolidated Funds	—		—		—		—		(2.0)		(e)	(2.0)
Income tax expense	—		—		—		(24.6)		(11.1)		(f)	(35.7)
Economic net income	$	63.3	$	22.7	$	51.1	$	(56.9)	$	0.5		$	80.7

(1) The most directly comparable U.S. GAAP measure of ENI revenue is U.S. GAAP revenue. The most directly comparable U.S. GAAP measure of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation and Affiliate key employee distributions above. The most directly comparable U.S. GAAP measure of earnings after Affiliate key employee distributions is U.S. GAAP operating income. The most directly comparable U.S. GAAP measure of ENI is U.S. GAAP net income attributable to controlling interests.

Management Fee Revenue by Geographical Area

Management fee revenue by principal geographic area is comprised of the following for the three and six months ended June 30 (in millions):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
U.S.	$	128.7	$	154.9	$	261.8	$	311.2
Non-U.S.	42.0		51.0		87.4		102.2
Management fee revenue	$	170.7	$	205.9	$	349.2	$	413.4