XML 44 R29.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Segment Operating Results | 12 Months Ended
--- | ---
Dec. 31, 2015
Segment Reporting [Abstract] |
Segment Operating Results | Segment Operating Results Business Segments – The Company’s business results are categorized into the following two segments: Investment Banking and Investment Management. Investment Banking includes providing advice to clients on significant mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private fund placement services and commissions for agency-based equity trading services and equity research. Investment Management includes advising third-party investors in the Institutional Asset Management, Wealth Management and Private Equity sectors. On December 31, 2015 the Company deconsolidated the assets and liabilities of Atalanta Sosnoff and will account for its interest as an equity method investment from that date forward. On October 31, 2014, the Company acquired the operating businesses of ISI, which is included in the Investment Banking segment. On December 3, 2013, the Company sold its investment in Pan and the results are presented within Discontinued Operations. The following segment information reflects the Company's results from its continuing operations. The Company’s segment information for the years ended December 31, 2015, 2014 and 2013 is prepared using the following methodology:
• | Revenue, expenses and income (loss) from equity method investments directly associated with each segment are included in determining pre-tax income.
• | Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other performance and time-based factors.
• | Segment assets are based on those directly associated with each segment, or for certain assets shared across segments; those assets are allocated based on the most relevant measures applicable, including headcount and other factors.
• | Investment gains and losses, interest income and interest expense are allocated between the segments based on the segment in which the underlying asset or liability is held.
Each segment’s Operating Expenses include: a) employee compensation and benefits expenses that are incurred directly in support of the segment and b) non-compensation expenses, which include expenses for premises and occupancy, professional fees, travel and entertainment, communications and information services, equipment and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, legal, facilities management and senior management activities. Other Expenses include the following:
• | Amortization of LP Units/Interests and Certain Other Awards - Includes amortization costs associated with the modification and vesting of Class A LP Units, the vesting of Class E LP Units and Class G and H LP Interests issued in conjunction with the acquisition of ISI and certain other related awards.
• | Other Acquisition Related Compensation Charges - Includes compensation charges associated with deferred consideration, retention awards and related compensation for Lexicon employees.
• | Special Charges - Includes expenses in 2015 primarily related to an impairment charge associated with the impairment of goodwill in the Company's Institutional Asset Management reporting unit and charges related to the restructuring of our investment in Atalanta Sosnoff, primarily related to the conversion of certain of Atalanta Sosnoff’s profits interests held by management to equity interests. Special Charges for 2015 also include separation benefits and costs associated with the termination of certain contracts within the Company’s Evercore ISI business, as well as the finalization of a matter associated with the wind-down of the Company’s U.S. Private Equity business. Special Charges in 2014 primarily related to separation benefits and certain exit costs related to combining the equities business upon the ISI acquisition during 2014 and a provision recorded in 2014 against contingent consideration due on the 2013 disposition of Pan. Special Charges in 2013 includes expenses related to the write-off of intangible assets from the Company’s acquisition of Morse, Williams and Company, Inc.
• | Professional Fees - Includes expense associated with share based awards resulting from increases in the share price, which is required upon change in employment status.
• | Acquisition and Transition Costs - Includes professional fees for legal and other services incurred related to the Company’s acquisitions, as well as costs related to certain regulatory settlements and transitioning ISI’s infrastructure.
• | Fair Value of Contingent Consideration - Includes expense associated with changes in the fair value of contingent consideration issued to the sellers of certain of the Company’s acquisitions.
• | Intangible Asset and Other Amortization - Includes amortization of intangible assets and other purchase accounting-related amortization associated with certain acquisitions.
The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses. The following information presents each segment’s contribution.
| For the Years Ended December 31,
| 2015 |  | 2014 |  | 2013
Investment Banking |  |  |  |  |
Net Revenues (1) | $ | 1,130,915 |  |  | $ | 819,637 |  |  | $ | 670,785 |
Operating Expenses | 869,301 |  |  | 632,927 |  |  | 516,921 |
Other Expenses (2) | 108,739 |  |  | 25,109 |  |  | 33,740 |
Operating Income | 152,875 |  |  | 161,601 |  |  | 120,124 |
Income from Equity Method Investments | 978 |  |  | 495 |  |  | 2,906 |
Pre-Tax Income from Continuing Operations | $ | 153,853 |  |  | $ | 162,096 |  |  | $ | 123,030 |
Identifiable Segment Assets | $ | 1,097,373 |  |  | $ | 934,648 |  |  | $ | 693,890 |
Investment Management |  |  |  |  |
Net Revenues (1) | $ | 92,358 |  |  | $ | 96,221 |  |  | $ | 94,643 |
Operating Expenses | 77,231 |  |  | 86,547 |  |  | 81,885 |
Other Expenses (2) | 39,332 |  |  | 328 |  |  | 2,707 |
Operating Income (Loss) | (24,205 | ) |  | 9,346 |  |  | 10,051 |
Income from Equity Method Investments | 5,072 |  |  | 4,685 |  |  | 5,420 |
Pre-Tax Income (Loss) from Continuing Operations | $ | (19,133 | ) |  | $ | 14,031 |  |  | $ | 15,471 |
Identifiable Segment Assets | $ | 381,798 |  |  | $ | 511,908 |  |  | $ | 486,893 |
Total |  |  |  |  |
Net Revenues (1) | $ | 1,223,273 |  |  | $ | 915,858 |  |  | $ | 765,428 |
Operating Expenses | 946,532 |  |  | 719,474 |  |  | 598,806 |
Other Expenses (2) | 148,071 |  |  | 25,437 |  |  | 36,447 |
Operating Income | 128,670 |  |  | 170,947 |  |  | 130,175 |
Income from Equity Method Investments | 6,050 |  |  | 5,180 |  |  | 8,326 |
Pre-Tax Income from Continuing Operations | $ | 134,720 |  |  | $ | 176,127 |  |  | $ | 138,501 |
Identifiable Segment Assets | $ | 1,479,171 |  |  | $ | 1,446,556 |  |  | $ | 1,180,783 |
(1) | Net revenues include Other Revenue, net, allocated to the segments as follows:
| For the Years Ended December 31,
| 2015 |  | 2014 |  | 2013
Investment Banking (A) | $ | (2,945 | ) |  | $ | (1,722 | ) |  | $ | 3,979 |
Investment Management (B) | (2,771 | ) |  | (2,530 | ) |  | (1,116 | )
Total Other Revenue, net | $ | (5,716 | ) |  | $ | (4,252 | ) |  | $ | 2,863 |
(A) | Investment Banking Other Revenue, net, includes interest expense on the Senior Notes, New Loan, subordinated borrowings and line of credit of $6,041, $4,470 and $4,386 for the years ended December 31, 2015, 2014 and 2013, respectively, and changes in amounts due pursuant to the Company's tax receivable agreement of $5,524 for the year ended December 31, 2013.
(B) | Investment Management Other Revenue, net, includes interest expense on the Senior Notes, New Loan and line of credit of $3,576, $3,770 and $3,702 for the years ended December 31, 2015, 2014 and 2013, respectively, and changes in amounts due pursuant to the Company's tax receivable agreement of $1,381 for the year ended December 31, 2013.
(2) | Other Expenses are as follows:
| For the Years Ended December 31,
| 2015 |  | 2014 |  | 2013
Investment Banking |  |  |  |  |
Amortization of LP Units / Interests and Certain Other Awards | $ | 83,673 |  |  | $ | 3,399 |  |  | $ | 17,817 |
Other Acquisition Related Compensation Charges | 1,537 |  |  | 7,939 |  |  | 15,923 |
Special Charges | 2,151 |  |  | 4,893 |  |  | — |
Professional Fees | — |  |  | 1,672 |  |  | — |
Acquisition and Transition Costs | 4,879 |  |  | 4,712 |  |  | — |
Fair Value of Contingent Consideration | 2,704 |  |  | — |  |  | — |
Intangible Asset and Other Amortization | 13,795 |  |  | 2,494 |  |  | — |
Total Investment Banking | 108,739 |  |  | 25,109 |  |  | 33,740 |
Investment Management |  |  |  |  |
Amortization of LP Units and Certain Other Awards | — |  |  | — |  |  | 2,209 |
Special Charges | 38,993 |  |  | — |  |  | 170 |
Acquisition and Transition Costs | 11 |  |  | — |  |  | — |
Intangible Asset and Other Amortization | 328 |  |  | 328 |  |  | 328 |
Total Investment Management | 39,332 |  |  | 328 |  |  | 2,707 |
Total Other Expenses | $ | 148,071 |  |  | $ | 25,437 |  |  | $ | 36,447 |
Geographic Information – The Company manages its business based on the profitability of the enterprise as a whole. The Company’s revenues were derived from clients and private equity funds located and managed in the following geographical areas:
| For the Years Ended December 31,
| 2015 |  | 2014 |  | 2013
Net Revenues: (1) |  |  |  |  |
United States | $ | 900,672 |  |  | $ | 608,631 |  |  | $ | 532,615 |
Europe and Other | 287,884 |  |  | 248,815 |  |  | 145,267 |
Latin America | 40,433 |  |  | 62,664 |  |  | 84,683 |
Total | $ | 1,228,989 |  |  | $ | 920,110 |  |  | $ | 762,565 |
(1) Excludes Other Revenue and Interest Expense. The Company’s total assets are located in the following geographical areas:
| For the Years Ended December 31,
| 2015 |  | 2014
Total Assets: |  |  |
United States | $ | 1,135,570 |  |  | $ | 1,099,363 |
Europe and Other | 221,358 |  |  | 160,934 |
Latin America | 122,243 |  |  | 186,259 |
Total | $ | 1,479,171 |  |  | $ | 1,446,556 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration