Segments (Tables)

6 Months Ended

Jun. 30, 2023

The following table presents the financial data for the Company’s segment for the three months ended June 30, 2023 (in millions):


	Three Months Ended June 30, 2023
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	95.0	$	—	$	1.3		$	96.3

ENI operating expenses	47.3		3.9		0.8		(a)	52.0
Earnings before variable compensation	47.7		(3.9)		0.5			44.3
Variable compensation	22.0		0.7		—			22.7
ENI operating earnings (after variable comp)	25.7		(4.6)		0.5			21.6
Affiliate key employee distributions	1.2		—		—			1.2
Earnings after Affiliate key employee distributions	24.5		(4.6)		0.5			20.4
Net interest expense	—		(3.5)		(0.4)		(b)	(3.9)
Net investment income	—		—		0.5		(c)	0.5

Net income attributable to non-controlling interests in consolidated Funds	—		—		(0.1)		(c)	(0.1)
Income tax expense	—		(4.4)		(1.1)		(d)	(5.5)


Economic net income	$	24.5	$	(12.5)	$	(0.6)		$	11.4

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


	Three Months Ended June 30, 2022
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	95.5	$	—	$	—		$	95.5

ENI operating expenses	39.7		4.4		(18.5)		(a)	25.6
Earnings before variable compensation	55.8		(4.4)		18.5			69.9
Variable compensation	21.7		1.0		—			22.7
ENI operating earnings (after variable comp)	34.1		(5.4)		18.5			47.2
Affiliate key employee distributions	0.5		—		—			0.5
Earnings after Affiliate key employee distributions	33.6		(5.4)		18.5			46.7
Net interest expense	—		(4.6)		(0.1)		(b)	(4.7)
Net investment loss	—		—		(0.7)		(c)	(0.7)


Income tax expense	—		(6.3)		(6.4)		(d)	(12.7)


Economic net income	$	33.6	$	(16.3)	$	11.3		$	28.6

The following table presents the financial data for the Company’s segment for the six months ended June 30, 2023 (in millions):


	Six Months Ended June 30, 2023
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	186.1	$	—	$	2.0		$	188.1

ENI operating expenses	90.9		7.4		1.3		(a)	99.6
Earnings before variable compensation	95.2		(7.4)		0.7			88.5
Variable compensation	44.5		1.4		—			45.9
ENI operating earnings (after variable comp)	50.7		(8.8)		0.7			42.6
Affiliate key employee distributions	2.4		—		—			2.4
Earnings after Affiliate key employee distributions	48.3		(8.8)		0.7			40.2
Net interest expense	—		(6.9)		(0.8)		(b)	(7.7)
Net investment income	—		—		1.6		(c)	1.6

Net income attributable to non-controlling interests in consolidated Funds	—		—		(0.1)		(c)	(0.1)

Income tax expense	—		(8.8)		(1.8)		(d)	(10.6)


Economic net income	$	48.3	$	(24.5)	$	(0.4)		$	23.4

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


	Six Months Ended June 30, 2022
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	207.7	$	—	$	—		$	207.7

ENI operating expenses	80.8		8.9		(24.9)		(a)	64.8
Earnings before variable compensation	126.9		(8.9)		24.9			142.9
Variable compensation	48.0		2.6		—			50.6
ENI operating earnings (after variable comp)	78.9		(11.5)		24.9			92.3
Affiliate key employee distributions	2.4		—		—			2.4
Earnings after Affiliate key employee distributions	76.5		(11.5)		24.9			89.9
Net interest expense	—		(9.2)		(2.0)		(b)	(11.2)
Net investment loss	—		—		(0.8)		(c)	(0.8)


Loss on extinguishment of debt	—		—		(3.2)		(c)	(3.2)
Income tax expense	—		(15.1)		(7.2)		(d)	(22.3)


Economic net income	$	76.5	$	(35.8)	$	11.7		$	52.4

(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 and restructuring costs, each of which are included in U.S. GAAP operating expenses.

b.Adjusted to include the cost of seed financing and amortization of debt issuance costs, 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 attributable to non-controlling interests in consolidated Funds, 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.