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Segment Operating Results
 12 Months Ended
Dec. 31, 2024
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 Banking & Equities segment also includes interests in Seneca Evercore and Luminis (through September 2024), which are accounted for under the equity method of accounting. The Investment Management segment includes Wealth Management and interests in private equity funds which are not managed by the Company, as well as interests in Atalanta Sosnoff and ABS (through July 2024), which are accounted for under the equity method of accounting.
The Company's segment information 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
•Gains on the sale of the Company's interests in ABS in 2024 and 2022. See Note 10 for further information
•A loss related to the release of cumulative foreign exchange losses resulting from the redemption of the Company's interest in Luminis in 2024. See Note 10 for further information
•Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments
•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 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 corporate services. Such corporate services include, but are not limited to, accounting, tax, legal, technology, human capital, facilities management and senior management activities.
Additionally, the Company's segment expenses also include Special Charges, Including Business Realignment Costs, which reflect the following:
•2024 – Expenses related to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest
•2023 – Expenses related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico
•2022 – Expenses related to charges associated with the prepayment of the Company's Series B Notes, as well as certain professional fees, separation benefits and other charges 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. The Company's resources are allocated and performance is assessed by the Company's CEO and Chairman, whom the Company has determined to be the CODM. For both segments, the CODM reviews net revenues and pre-tax income against current and past performance on a quarterly basis when making decisions about allocating resources to the segments, inclusive of decisions regarding new hires, expansion into new geographical locations and entering into material contracts, including lease agreements and significant investments in technology. The CODM also uses these measures in determining appropriate levels of employee compensation.
No client accounted for more than 10% of the Company's Consolidated Net Revenues for the years ended December 31, 2024, 2023 and 2022, respectively.
The following information presents each segment's contribution.
 For the Years Ended December 31,
 202420232022
Investment Banking & Equities
Net Revenues(1)
$2,898,489 $2,355,943 $2,696,125 
Employee Compensation and Benefits1,927,928 1,617,449 1,658,076 
Non-Compensation(2)
456,257 393,308 351,837 
Special Charges, Including Business Realignment Costs7,305 2,921 3,126 
Operating Income506,999 342,265 683,086 
Income from Equity Method Investments1,073 620 1,217 
Pre-Tax Income $508,072 $342,885 $684,303 
Identifiable Segment Assets$4,022,227 $3,541,886 $3,446,075 
Investment Management
Net Revenues(1)
$81,104 $70,006 $65,923 
Employee Compensation and Benefits46,108 39,426 39,443 
Non-Compensation(2)
15,081 13,710 13,524 
Operating Income19,915 16,870 12,956 
Income from Equity Method Investments5,158 6,035 6,782 
Pre-Tax Income$25,073 $22,905 $19,738 
Identifiable Segment Assets$151,744 $161,412 $174,848 
Total
Net Revenues(1)
$2,979,593 $2,425,949 $2,762,048 
Employee Compensation and Benefits1,974,036 1,656,875 1,697,519 
Non-Compensation(2)
471,338 407,018 365,361 
Special Charges, Including Business Realignment Costs7,305 2,921 3,126 
Operating Income526,914 359,135 696,042 
Income from Equity Method Investments6,231 6,655 7,999 
Pre-Tax Income$533,145 $365,790 $704,041 
Identifiable Segment Assets$4,173,971 $3,703,298 $3,620,923 
(1)Net Revenues include Other Revenue, net, allocated to the segments as follows:
 For the Years Ended December 31,
 202420232022
Investment Banking & Equities(A)
$86,772 $78,281 $(25,668)
Investment Management1,554 2,965 1,440 
Total Other Revenue, net$88,326 $81,246 $(24,228)
(A)Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $16,768, $16,717 and $16,850 for the years ended December 31, 2024, 2023 and 2022, respectively.
(2)Non-Compensation expenses are as follows:
For the Years Ended December 31,
202420232022
Investment Banking & Equities
Occupancy and Equipment Rental$88,604 $82,180 $76,317 
Professional Fees130,397 104,099 103,378 
Travel and Related Expenses78,519 63,798 49,588 
Communications and Information Services78,555 68,937 60,181 
Depreciation and Amortization24,141 23,943 26,976 
Execution, Clearing and Custody Fees11,487 10,724 8,813 
Other Operating Expenses44,554 39,627 26,584 
Total Non-Compensation$456,257 $393,308 $351,837 
Investment Management
Occupancy and Equipment Rental$2,349 $2,149 $2,120 
Professional Fees5,329 4,702 4,910 
Travel and Related Expenses927 729 595 
Communications and Information Services2,919 2,666 2,461 
Depreciation and Amortization327 405 737 
Execution, Clearing and Custody Fees1,724 1,551 1,532 
Other Operating Expenses1,506 1,508 1,169 
Total Non-Compensation$15,081 $13,710 $13,524 
Total
Occupancy and Equipment Rental$90,953 $84,329 $78,437 
Professional Fees135,726 108,801 108,288 
Travel and Related Expenses79,446 64,527 50,183 
Communications and Information Services81,474 71,603 62,642 
Depreciation and Amortization24,468 24,348 27,713 
Execution, Clearing and Custody Fees13,211 12,275 10,345 
Other Operating Expenses46,060 41,135 27,753 
Total Non-Compensation$471,338 $407,018 $365,361 
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,
 202420232022
Net Revenues:(1)
Americas(2)
$2,331,369 $1,826,861 $2,185,165 
Europe, Middle East and Africa ("EMEA")503,496 469,694 534,784 
Asia-Pacific56,402 48,148 66,327 
Total$2,891,267 $2,344,703 $2,786,276 
(1)Excludes Other Revenue, Including Interest and Investments, and Interest Expense.
(2)Primarily includes revenue attributable to the United States of $2,187,916, $1,719,337 and $1,989,387 for the years ended December 31, 2024, 2023 and 2022, respectively.
The Company's total assets are located in the following geographical areas:
December 31,
20242023
Total Assets:
Americas(1)
$3,496,519 $3,167,244 
EMEA(2)
614,494 481,558 
Asia-Pacific62,958 54,496 
Total$4,173,971 $3,703,298 
(1)Primarily includes assets located in the United States.
(2)Primarily includes assets located in the United Kingdom.