XML 45 R31.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information

21.

SEGMENT INFORMATION

The Company’s reportable segments offer different products and services and are managed separately, as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed to determine the allocation of resources and to assess its performance. The Company’s principal operating activities are included in its Financial Advisory and Asset Management business segments as described in Note 1. In addition, as described in Note 1, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the years ended December 31, 2022, 2021 and 2020 is prepared using the following methodology:

 

•

Revenue and expenses directly associated with each segment are included in determining operating income.

 

•

Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

 

•

Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors.

The Company records other revenue, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

Each segment’s operating expenses include (i) compensation and benefits expenses incurred directly in support of the businesses and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services 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, human resources, legal, facilities management and senior management activities.

For the years ended December 31, 2022, 2021 and 2020, no individual client constituted more than 10% of the net revenue of any of the Company’s business segments.

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

 

 

 

 

 

As of or for the Year Ended December 31,

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

Financial Advisory

 

Net Revenue

 

$

1,666,156

 

 

$

1,764,509

 

 

$

1,420,501

 

 

 

Operating Expenses (a)

 

 

1,304,715

 

 

 

1,356,567

 

 

 

1,130,850

 

 

 

Operating Income

 

$

361,441

 

 

$

407,942

 

 

$

289,651

 

 

 

Total Assets

 

$

1,099,921

 

 

$

1,239,964

 

 

$

1,181,783

 

Asset Management

 

Net Revenue

 

$

1,204,927

 

 

$

1,424,985

 

 

$

1,167,466

 

 

 

Operating Expenses (a)

 

 

963,640

 

 

 

1,032,825

 

 

 

861,031

 

 

 

Operating Income

 

$

241,287

 

 

$

392,160

 

 

$

306,435

 

 

 

Total Assets

 

$

978,083

 

 

$

1,128,549

 

 

$

958,588

 

Corporate

 

Net Revenue (Loss)

 

$

(97,512

)

 

$

3,554

 

 

$

(21,829

)

 

 

Operating Expenses (Credit) (a)

 

 

(11,632

)

 

 

79,808

 

 

 

72,116

 

 

 

Operating Loss

 

$

(85,880

)

 

$

(76,254

)

 

$

(93,945

)

 

 

Total Assets

 

$

3,774,557

 

 

$

4,778,668

 

 

$

3,831,490

 

Total

 

Net Revenue

 

$

2,773,571

 

 

$

3,193,048

 

 

$

2,566,138

 

 

 

Operating Expenses (a)

 

 

2,256,723

 

 

 

2,469,200

 

 

 

2,063,997

 

 

 

Operating Income

 

$

516,848

 

 

$

723,848

 

 

$

502,141

 

 

 

Total Assets

 

$

5,852,561

 

 

$

7,147,181

 

 

$

5,971,861

 

 

(a)

Operating expenses include depreciation and amortization of property as set forth in table below.

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Financial Advisory

 

$

8,968

 

 

$

8,480

 

 

$

6,104

 

Asset Management

 

 

9,390

 

 

 

5,618

 

 

 

3,730

 

Corporate

 

 

23,978

 

 

 

24,217

 

 

 

25,261

 

Total

 

$

42,336

 

 

$

38,315

 

 

$

35,095

 

 

Geographic Information

Due to the highly integrated nature of international financial markets, the Company manages its business based on the profitability of the enterprise as a whole, not by geographic region. The Company’s revenue and identifiable assets are generally allocated based on the country or domicile of the legal entity providing the service.

The following table sets forth the net revenue from, and identifiable assets for, the Company and its consolidated subsidiaries by geographic region allocated on the basis described above. In the table below, Americas principally includes the U.S., EMEA principally includes the U.K. and France, and Asia Pacific principally includes Australia.

 

 

 

As of or for the Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Net Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,487,056

 

 

$

1,780,815

 

 

$

1,530,100

 

EMEA

 

 

1,136,636

 

 

 

1,251,058

 

 

 

885,924

 

Asia Pacific

 

 

149,879

 

 

 

161,175

 

 

 

150,114

 

Total

 

$

2,773,571

 

 

$

3,193,048

 

 

$

2,566,138

 

Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

235,640

 

 

$

399,916

 

 

$

362,446

 

EMEA

 

 

248,404

 

 

 

295,991

 

 

 

109,991

 

Asia Pacific

 

 

32,804

 

 

 

27,941

 

 

 

29,704

 

Total

 

$

516,848

 

 

$

723,848

 

 

$

502,141

 

Identifiable Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

3,458,250

 

 

$

4,011,071

 

 

$

3,124,103

 

EMEA

 

 

2,218,136

 

 

 

2,933,180

 

 

 

2,534,168

 

Asia Pacific

 

 

176,175

 

 

 

202,930

 

 

 

313,590

 

Total

 

$

5,852,561

 

 

$

7,147,181

 

 

$

5,971,861