Segments (Tables)

9 Months Ended

Sep. 30, 2022

The following table presents the financial data for the Company’s segment for the three months ended September 30, 2022 (in millions):


	Three Months Ended September 30, 2022
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	86.8	$	—	$	—		$	86.8

ENI operating expenses	40.4		4.1		(8.7)		(a)	35.8
Earnings before variable compensation	46.4		(4.1)		8.7			51.0
Variable compensation	18.9		0.9		—			19.8
ENI operating earnings (after variable comp)	27.5		(5.0)		8.7			31.2
Affiliate key employee distributions	1.1		—		—			1.1
Earnings after Affiliate key employee distributions	26.4		(5.0)		8.7			30.1
Net interest expense	—		(4.3)		(0.1)		(b)	(4.4)
Net investment loss	—		—		(0.4)		(c)	(0.4)


Income tax expense	—		(4.6)		(2.9)		(d)	(7.5)


Economic net income	$	26.4	$	(13.9)	$	5.3		$	17.8

The following table presents the financial data for the Company’s segments for the three months ended September 30, 2021 (in millions):


	Three Months Ended September 30, 2021
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	110.6	$	6.8	$	0.5	(e)	$	117.9

ENI operating expenses	39.4		7.6		10.1		(a)	57.1
Earnings before variable compensation	71.2		(0.8)		(9.6)			60.8
Variable compensation	23.5		3.5		0.1		(f)	27.1
ENI operating earnings (after variable comp)	47.7		(4.3)		(9.7)			33.7
Affiliate key employee distributions	3.8		1.2		—			5.0
Earnings after Affiliate key employee distributions	43.9		(5.5)		(9.7)			28.7
Net interest expense	—		(5.8)		(0.4)		(b)	(6.2)
Net investment income	—		—		0.3		(c)	0.3
Gain on sale of subsidiaries	—		—		34.6		(c)	34.6

Income tax expense	—		(9.0)		(5.5)		(d)	(14.5)
Income from discontinued operations, net of tax	—		—		1.2		(c)	1.2
Gain on disposal of discontinued operations, net of tax	—		—		185.4		(g)	185.4
Economic net income	$	43.9	$	(20.3)	$	205.9		$	229.5

The following table presents the financial data for the Company’s segment for the nine months ended September 30, 2022 (in millions):


	Nine Months Ended September 30, 2022
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	294.5	$	—	$	—		$	294.5

ENI operating expenses	121.2		13.0		(33.6)		(a)	100.6
Earnings before variable compensation	173.3		(13.0)		33.6			193.9
Variable compensation	66.9		3.5		—			70.4
ENI operating earnings (after variable comp)	106.4		(16.5)		33.6			123.5
Affiliate key employee distributions	3.5		—		—			3.5
Earnings after Affiliate key employee distributions	102.9		(16.5)		33.6			120.0
Net interest expense	—		(13.5)		(2.1)		(b)	(15.6)
Net investment loss	—		—		(1.2)		(c)	(1.2)


Loss on extinguishment of debt	—		—		(3.2)		(c)	(3.2)
Income tax expense	—		(19.7)		(10.1)		(d)	(29.8)


Economic net income	$	102.9	$	(49.7)	$	17.0		$	70.2

The following table presents the financial data for the Company’s segments for the nine months ended September 30, 2021 (in millions):


	Nine Months Ended September 30, 2021
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	325.2	$	35.4	$	0.3	(e)	$	360.9

ENI operating expenses	116.8		26.8		26.7		(a)	170.3
Earnings before variable compensation	208.4		8.6		(26.4)			190.6
Variable compensation	68.1		14.8		0.9		(f)	83.8
ENI operating earnings (after variable comp)	140.3		(6.2)		(27.3)			106.8
Affiliate key employee distributions	8.4		1.1		—			9.5
Earnings after Affiliate key employee distributions	131.9		(7.3)		(27.3)			97.3
Net interest expense	—		(16.6)		(2.0)		(b)	(18.6)
Net investment income	—		—		7.6		(c)	7.6
Gain on sale of subsidiaries	—		—		33.3		(c)	33.3
Net loss attributable to non-controlling interests in consolidated Funds	—		—		(68.0)		(c)	(68.0)
Income tax expense	—		(29.0)		(4.5)		(d)	(33.5)
Income from discontinued operations, net of tax	—		—		76.5		(c)	76.5
Gain on disposal of discontinued operations, net of tax	—		—		694.6		(g)	694.6
Economic net income	$	131.9	$	(52.9)	$	710.2		$	789.2

(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 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 loss attributable to non-controlling interests in consolidated Funds, the gain on sale of subsidiaries, 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 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.

g.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.