XML 58 R31.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Segment Operating Results | 12 Months Ended
--- | ---
Dec. 31, 2021
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 placement services and commissions for agency-based equity trading services and equity research. Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, and the historical results include Institutional Asset Management. The Company completed the sales of its ECB businesses in 2020. In addition, in 2020, the Company completed the transition of its advisory presence in Mexico to a strategic alliance relationship with a newly-formed independent strategic advisory firm founded by certain former employees. See Note 5 for further information. The Company's segment information for the years ended December 31, 2021, 2020 and 2019 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. Other Revenue, net, included in each segment's Net Revenues includes the following: •Interest income and income (losses) on investment securities, including the Company's investment funds and futures contracts which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents, long-term accounts receivable and on the Company’s debt security investment in G5 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full. See Note 10 for further information.) •Gains (losses) resulting from foreign currency fluctuations •Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company •Interest expense associated with the Company’s Notes Payable and lines of credit, as well as revenue and expenses associated with repurchase or resale transactions (prior to the sale of the Company's ECB business in December 2020) •A net loss on the sales of the Company's businesses at ECB, as well as a loss related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico in 2020 •Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates 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, execution, clearing and custody fees, 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, technology, human capital, facilities management and senior management activities. Other Expenses include the following: •Amortization of LP Units and Certain Other Awards – Includes amortization costs associated with the vesting of Class J LP Units issued in conjunction with the acquisition of ISI and certain other related awards. •Special Charges, Including Business Realignment Costs – Includes the following expenses: ◦2021 – Includes expenses related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's current investment strategy, the Company decided to wind-down during 2021 ◦2020 – Includes expenses related to separation and transition benefits and related costs as a result of the Company's review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the expansion of the Company's headquarters in New York and the Company's business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of the Company's businesses in Mexico ◦2019 – Includes expenses related to the acceleration of depreciation expense for leasehold improvements in conjunction with the expansion of the Company's headquarters in New York, the impairment of goodwill in the Company's Institutional Asset Management reporting unit and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations •Acquisition and Transition Costs – Includes costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services, including costs in 2020 associated with the sale of the Company's ECB businesses. •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,
|  |  |  |  | 2021 |  | 2020 |  | 2019
Investment Banking |  |  |  |  |  |  |  |  |
Net Revenues(1) |  |  |  |  | $ | 3,223,889 |  |  | $ | 2,217,386 |  |  | $ | 1,951,795 |
Operating Expenses |  |  |  |  | 2,125,871 |  |  | 1,637,542 |  |  | 1,485,477 |
Other Expenses(2) |  |  |  |  | 7 |  |  | 49,112 |  |  | 33,618 |
Operating Income |  |  |  |  | 1,098,011 |  |  | 530,732 |  |  | 432,700 |
Income from Equity Method Investments |  |  |  |  | 1,337 |  |  | 1,546 |  |  | 916 |
Pre-Tax Income |  |  |  |  | $ | 1,099,348 |  |  | $ | 532,278 |  |  | $ | 433,616 |
Identifiable Segment Assets |  |  |  |  | $ | 3,605,332 |  |  | $ | 3,186,864 |  |  | $ | 2,393,647 |
Investment Management |  |  |  |  |  |  |  |  |
Net Revenues(1) |  |  |  |  | $ | 65,610 |  |  | $ | 46,519 |  |  | $ | 56,903 |
Operating Expenses |  |  |  |  | 52,629 |  |  | 50,473 |  |  | 48,645 |
Other Expenses(2) |  |  |  |  | 8,554 |  |  | 345 |  |  | 3,247 |
Operating Income (Loss) |  |  |  |  | 4,427 |  |  | (4,299) |  |  | 5,011 |
Income from Equity Method Investments |  |  |  |  | 12,824 |  |  | 12,852 |  |  | 10,080 |
Pre-Tax Income |  |  |  |  | $ | 17,251 |  |  | $ | 8,553 |  |  | $ | 15,091 |
Identifiable Segment Assets |  |  |  |  | $ | 197,325 |  |  | $ | 184,024 |  |  | $ | 204,966 |
Total |  |  |  |  |  |  |  |  |
Net Revenues(1) |  |  |  |  | $ | 3,289,499 |  |  | $ | 2,263,905 |  |  | $ | 2,008,698 |
Operating Expenses |  |  |  |  | 2,178,500 |  |  | 1,688,015 |  |  | 1,534,122 |
Other Expenses(2) |  |  |  |  | 8,561 |  |  | 49,457 |  |  | 36,865 |
Operating Income |  |  |  |  | 1,102,438 |  |  | 526,433 |  |  | 437,711 |
Income from Equity Method Investments |  |  |  |  | 14,161 |  |  | 14,398 |  |  | 10,996 |
Pre-Tax Income |  |  |  |  | $ | 1,116,599 |  |  | $ | 540,831 |  |  | $ | 448,707 |
Identifiable Segment Assets |  |  |  |  | $ | 3,802,657 |  |  | $ | 3,370,888 |  |  | $ | 2,598,613 |
(1)Net Revenues include Other Revenue, net, allocated to the segments as follows:
|  |  | For the Years Ended December 31,
|  |  |  |  | 2021 |  | 2020 |  | 2019
Investment Banking(A) |  |  |  |  | $ | 19,370 |  |  | $ | (20,770) |  |  | $ | 18,431 |
Investment Management(B) |  |  |  |  | (174) |  |  | (7,878) |  |  | 6,292 |
Total Other Revenue, net |  |  |  |  | $ | 19,196 |  |  | $ | (28,648) |  |  | $ | 24,723 |
(A)Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $17,586, $18,197 and $12,917 for the years ended December 31, 2021, 2020 and 2019, respectively. Other Revenue, net, also includes a loss of $21,070 related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico for the year ended December 31, 2020. (B)Other Revenue, net, from Investment Management includes a net loss of $3,441 related to the sale of the Company's ECB businesses and a loss of $6,295 related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico for the year ended December 31, 2020. (2)Other Expenses are as follows:
|  |  | For the Years Ended December 31,
|  |  |  |  | 2021 |  | 2020 |  | 2019
Investment Banking |  |  |  |  |  |  |  |  |
Amortization of LP Units and Certain Other Awards |  |  |  |  | $ | — |  |  | $ | 1,067 |  |  | $ | 18,183 |
Special Charges, Including Business Realignment Costs |  |  |  |  | — |  |  | 46,600 |  |  | 7,202 |
Acquisition and Transition Costs |  |  |  |  | 7 |  |  | 262 |  |  | 705 |
Intangible Asset and Other Amortization |  |  |  |  | — |  |  | 1,183 |  |  | 7,528 |
Total Investment Banking |  |  |  |  | 7 |  |  | 49,112 |  |  | 33,618 |
Investment Management |  |  |  |  |  |  |  |  |
Special Charges, Including Business Realignment Costs |  |  |  |  | 8,554 |  |  | 45 |  |  | 2,939 |
Acquisition and Transition Costs |  |  |  |  | — |  |  | 300 |  |  | 308 |
Total Investment Management |  |  |  |  | 8,554 |  |  | 345 |  |  | 3,247 |
Total Other Expenses |  |  |  |  | $ | 8,561 |  |  | $ | 49,457 |  |  | $ | 36,865 |
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 located and managed in the following geographical areas:
|  |  | For the Years Ended December 31,
|  |  |  |  | 2021 |  | 2020 |  | 2019
Net Revenues:(1) |  |  |  |  |  |  |  |  |
United States |  |  |  |  | $ | 2,553,806 |  |  | $ | 1,768,901 |  |  | $ | 1,465,143 |
Europe and Other |  |  |  |  | 710,660 |  |  | 497,102 |  |  | 501,425 |
Latin America |  |  |  |  | 5,837 |  |  | 26,550 |  |  | 17,407 |
Total |  |  |  |  | $ | 3,270,303 |  |  | $ | 2,292,553 |  |  | $ | 1,983,975 |
(1)Excludes Other Revenue, Including Interest and Investments, and Interest Expense. The Company's total assets are located in the following geographical areas:
| December 31,
| 2021 |  | 2020
Total Assets: |  |  |
United States | $ | 3,199,435 |  |  | $ | 2,862,343 |
Europe and Other | 603,222 |  |  | 508,545 |
Total | $ | 3,802,657 |  |  | $ | 3,370,888 |

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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration