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Segment Operating Results | 9 Months Ended
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Sep. 30, 2023
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 & Equities and Investment Management. The Investment Banking & Equities segment 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. The Investment Management segment includes Wealth Management and interests in private equity funds which are not managed by the Company. The Company's segment information for the three and nine months ended September 30, 2023 and 2022 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, including accretion, and income (losses) on investment securities, including the Company's investment funds which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents and long-term accounts receivable •A gain on the sale of a portion of the Company's interests in ABS in the first quarter of 2022. See Note 7 for further information •Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts •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 •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 relate to Special Charges, Including Business Realignment Costs, which include the following: •2023 – Other Expenses for the nine months ended September 30, 2023 include expenses related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico •2022 – Other Expenses for the nine months ended September 30, 2022 include expenses related to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees related to the wind-down of the Company's operations in Mexico The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses. No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three and nine months ended September 30, 2023 and 2022. The following information presents each segment's contribution.
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Investment Banking & Equities |  |  |  |  |  |  |  |  |
Net Revenues(1) | $ | 552,641 |  |  | $ | 560,518 |  |  | $ | 1,589,698 |  |  | $ | 1,880,069 |  |  |
Operating Expenses | 479,429 |  |  | 433,599 |  |  | 1,356,853 |  |  | 1,404,711 |  |  |
Other Expenses | — |  |  | — |  |  | 2,921 |  |  | 532 |  |  |
Operating Income | 73,212 |  |  | 126,919 |  |  | 229,924 |  |  | 474,826 |  |  |
Income from Equity Method Investments | 180 |  |  | 451 |  |  | 394 |  |  | 989 |  |  |
Pre-Tax Income | $ | 73,392 |  |  | $ | 127,370 |  |  | $ | 230,318 |  |  | $ | 475,815 |  |  |
Identifiable Segment Assets | $ | 3,068,495 |  |  | $ | 2,986,364 |  |  | $ | 3,068,495 |  |  | $ | 2,986,364 |  |  |
Investment Management |  |  |  |  |  |  |  |  |
Net Revenues(1) | $ | 17,579 |  |  | $ | 16,419 |  |  | $ | 52,084 |  |  | $ | 50,639 |  |  |
Operating Expenses | 13,965 |  |  | 12,939 |  |  | 40,562 |  |  | 39,520 |  |  |
Operating Income | 3,614 |  |  | 3,480 |  |  | 11,522 |  |  | 11,119 |  |  |
Income from Equity Method Investments | 1,484 |  |  | 1,576 |  |  | 4,280 |  |  | 5,824 |  |  |
Pre-Tax Income | $ | 5,098 |  |  | $ | 5,056 |  |  | $ | 15,802 |  |  | $ | 16,943 |  |  |
Identifiable Segment Assets | $ | 157,303 |  |  | $ | 164,905 |  |  | $ | 157,303 |  |  | $ | 164,905 |  |  |
Total |  |  |  |  |  |  |  |  |
Net Revenues(1) | $ | 570,220 |  |  | $ | 576,937 |  |  | $ | 1,641,782 |  |  | $ | 1,930,708 |  |  |
Operating Expenses | 493,394 |  |  | 446,538 |  |  | 1,397,415 |  |  | 1,444,231 |  |  |
Other Expenses | — |  |  | — |  |  | 2,921 |  |  | 532 |  |  |
Operating Income | 76,826 |  |  | 130,399 |  |  | 241,446 |  |  | 485,945 |  |  |
Income from Equity Method Investments | 1,664 |  |  | 2,027 |  |  | 4,674 |  |  | 6,813 |  |  |
Pre-Tax Income | $ | 78,490 |  |  | $ | 132,426 |  |  | $ | 246,120 |  |  | $ | 492,758 |  |  |
Identifiable Segment Assets | $ | 3,225,798 |  |  | $ | 3,151,269 |  |  | $ | 3,225,798 |  |  | $ | 3,151,269 |  |  |
(1)Net Revenues include Other Revenue, net, allocated to the segments as follows:
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Investment Banking & Equities(A) | $ | 5,729 |  |  | $ | (5,603) |  |  | $ | 46,472 |  |  | $ | (40,066) |  |  |
Investment Management | 275 |  |  | 778 |  |  | 2,247 |  |  | 1,915 |  |  |
Total Other Revenue, net | $ | 6,004 |  |  | $ | (4,825) |  |  | $ | 48,719 |  |  | $ | (38,151) |  |  |
(A)Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $4,184 and $12,536 for the three and nine months ended September 30, 2023, respectively, and $4,188 and $12,696 for the three and nine months ended September 30, 2022, respectively. 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 Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Net Revenues:(1) |  |  |  |  |  |  |  |  |
United States | $ | 417,553 |  |  | $ | 374,571 |  |  | $ | 1,156,979 |  |  | $ | 1,408,491 |  |  |
Europe and Other | 145,065 |  |  | 206,893 |  |  | 425,137 |  |  | 553,926 |  |  |
Latin America | 1,598 |  |  | 298 |  |  | 10,947 |  |  | 6,442 |  |  |
Total | $ | 564,216 |  |  | $ | 581,762 |  |  | $ | 1,593,063 |  |  | $ | 1,968,859 |  |  |
(1)Excludes Other Revenue, Including Interest and Investments, and Interest Expense. The Company's total assets are located in the following geographical areas:
| September 30, 2023 |  | December 31, 2022
Total Assets: |  |  |
United States | $ | 2,777,971 |  |  | $ | 2,902,153 |
Europe and Other | 447,827 |  |  | 718,770 |
Total | $ | 3,225,798 |  |  | $ | 3,620,923 |

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- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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