Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

The following tables set forth summarized operating results for the Company’s segments and related adjustments necessary to reconcile the segment economic net income to arrive at the Company's consolidated U.S. GAAP net income (loss) for the year ended December 31, 2021 (in millions):


	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	488.1	$	35.4	$	0.3	(a)	$	523.8

ENI operating expenses	160.8		32.0		41.3		(b)	234.1
Earnings before variable compensation	327.3		3.4		(41.0)			289.7
Variable compensation	100.8		28.8		0.9		(c)	130.5
ENI operating earnings (after variable comp)	226.5		(25.4)		(41.9)			159.2
Affiliate key employee distributions	12.4		1.0		—			13.4
Earnings after Affiliate key employee distributions	214.1		(26.4)		(41.9)			145.8
Net interest expense	—		(22.3)		(2.3)		(d)	(24.6)
Net investment income	—		—		8.3		(e)	8.3
Gain on sale of subsidiaries	—		—		48.6		(e)	48.6
Net income attributable to non-controlling interests in consolidated Funds	—		—		(68.0)		(e)	(68.0)
Income tax expense	—		(47.1)		(2.9)		(f)	(50.0)
Income from discontinued operations, net of tax	—		—		77.3		(g)	77.3
Gain on disposal of discontinued operations, net of tax	—		—		691.0		(h)	691.0
Economic net income	$	214.1	$	(95.8)	$	710.1		$	828.4

The following table presents the financial data for the Company’s segments for the year ended December 31, 2020 (in millions):


	Quant & Solutions		Liquid Alpha		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	354.8	$	111.1	$	26.4	$	7.2	(a)	$	499.5

ENI operating expenses	149.0		39.4		45.1		13.7		(b)	247.2
Earnings before variable compensation	205.8		71.7		(18.7)		(6.5)			252.3
Variable compensation	72.8		29.0		6.1		4.2		(c)	112.1
ENI operating earnings (after variable comp)	133.0		42.7		(24.8)		(10.7)			140.2
Affiliate key employee distributions	4.3		3.9		0.3		—			8.5
Earnings after Affiliate key employee distributions	128.7		38.8		(25.1)		(10.7)			131.7
Net interest income expense	—		—		(21.6)		(6.3)		(d)	(27.9)
Net investment income	—		—		—		(0.3)		(e)	(0.3)
Gain on sale of Affiliates	—		—		—		241.3		(e)	241.3
Net income attributable to non-controlling interests in consolidated Funds	—		—		—		(28.8)		(e)	(28.8)
Income tax (expense) benefit	—		—		(32.5)		(64.6)		(f)	(97.1)
Income from discontinued operations, net of tax	—		—		—		67.8		(g)	67.8

Economic net income	$	128.7	$	38.8	$	(79.2)	$	198.4		$	286.7

The following table presents the financial data for the Company’s segments for the year ended December 31, 2019 (in millions):


	Quant & Solutions		Liquid Alpha		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	380.6	$	180.3	$	25.5	$	8.2	(a)	$	594.6

ENI operating expenses	160.6		54.1		57.4		(57.8)		(b)	214.3
Earnings before variable compensation	220.0		126.2		(31.9)		66.0			380.3
Variable compensation	75.6		43.7		12.0		6.7		(c)	138.0
ENI operating earnings (after variable comp)	144.4		82.5		(43.9)		59.3			242.3
Affiliate key employee distributions	6.4		13.7		—		—			20.1
Earnings after Affiliate key employee distributions	138.0		68.8		(43.9)		59.3			222.2
Net interest income (expense)	—		—		(21.0)		(9.0)		(d)	(30.0)
Net investment income	—		—		—		21.0		(e)	21.0
Net income attributable to non-controlling interests in consolidated Funds	—		—		—		(16.1)		(e)	(16.1)
Income tax (expense) benefit	—		—		(37.7)		27.2		(f)	(10.5)
Income from discontinued operations, net of tax	—		—		—		37.3		(g)	37.3

Economic net income	$	138.0	$	68.8	$	(102.6)	$	119.7		$	223.9

(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.

Reconciling Adjustments:

(a)Adjusted to exclude earnings from equity-accounted Affiliate, which are included in U.S. GAAP investment income, and to include consolidated Funds revenues and the separate revenues recorded for certain Fund expenses reimbursed by customers, which are included in U.S. GAAP revenue.

(b)Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, capital transaction costs, goodwill impairment and amortization of acquired intangible assets, restructuring costs, consolidated Funds’ operating expenses and the Fund expenses reimbursed by customers, each of which are included in U.S. GAAP operating expenses.

(c)Adjusted to include restructuring costs which are included in U.S. GAAP compensation expense.

(d)Adjusted to include the cost of seed financing, and amortization of debt issuance costs, which is included in U.S. GAAP interest expense.

(e)Adjusted to include net investment income (loss), net income (loss) attributable to non-controlling interests in consolidated Funds, and the gain on sale of Affiliates, all of which are included in U.S. GAAP net income attributable to controlling interests.

(f)Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles. Adjusted to include tax expense or benefits relating to uncertain tax positions, the tax impact of certain ENI adjustments and other unusual items that are not included in current operating results for ENI purposes.

(g)Adjusted to include the results of discontinued operations, net of tax, which is included in U.S. GAAP net income attributable to controlling interests.

(h)Adjusted to include the gain on disposal of discontinued operations, net of tax, which is included in U.S. GAAP net income attributable to controlling interests.