Segments (Tables)

3 Months Ended

Mar. 31, 2022

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2022 (in millions):


	Three Months Ended March 31, 2022
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	112.2	$	—	$	—		$	112.2

ENI operating expenses	41.1		4.5		(6.4)		(a)	39.2
Earnings before variable compensation	71.1		(4.5)		6.4			73.0
Variable compensation	26.3		1.6		—			27.9
ENI operating earnings (after variable comp)	44.8		(6.1)		6.4			45.1
Affiliate key employee distributions	1.9		—		—			1.9
Earnings after Affiliate key employee distributions	42.9		(6.1)		6.4			43.2
Net interest expense	—		(4.6)		(1.9)		(b)	(6.5)
Net investment income	—		—		(0.1)		(c)	(0.1)


Loss on extinguishment of debt	—		—		(3.2)		(c)	(3.2)
Income tax expense	—		(8.8)		(0.8)		(d)	(9.6)


Economic net income	$	42.9	$	(19.5)	$	0.4		$	23.8

The following table presents the financial data for the Company’s segments for the three months ended March 31, 2021 (in millions):


	Three Months Ended March 31, 2021
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	103.5	$	6.3	$	(0.1)	(e)	$	109.7

ENI operating expenses	39.1		9.7		3.1		(a)	51.9
Earnings before variable compensation	64.4		(3.4)		(3.2)			57.8
Variable compensation	22.6		0.9		0.5		(f)	24.0
ENI operating earnings (after variable comp)	41.8		(4.3)		(3.7)			33.8
Affiliate key employee distributions	1.5		(0.2)		—			1.3
Earnings after Affiliate key employee distributions	40.3		(4.1)		(3.7)			32.5
Net interest expense	—		(5.4)		(0.8)		(b)	(6.2)
Net investment income	—		—		2.6		(c)	2.6
Loss on sale of subsidiary	—		—		(1.3)		(c)	(1.3)
Net income attributable to non-controlling interests in consolidated Funds	—		—		(13.4)		(c)	(13.4)
Income tax expense	—		(8.3)		(0.8)		(d)	(9.1)
Income from discontinued operations, net of tax	—		—		21.9		(c)	21.9
Economic net income	$	40.3	$	(17.8)	$	4.5		$	27.0

(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 include non-cash expenses for key employee equity and profit interest revaluations, capital transaction costs, 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.

(b)Adjusted to include the cost of seed financing, which is included in U.S. GAAP interest expense.

(c)Adjusted to include net investment income (loss), the loss on extinguishment of debt, net income (loss) attributable to non-controlling interests in consolidated Funds, and the loss on sale of subsidiary, and the results of discontinued operations, net of tax, all of which are included in U.S. GAAP net income attributable to controlling interests.

(d)Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles. Also adjusted to include the tax impact of certain ENI adjustments; exclude the tax expense

or benefits relating to uncertain tax positions, and exclude the tax impact of other unusual items that are not related to current operating results for ENI purposes.

(e)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.

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