XML 25 R15.htm IDEA: XBRL DOCUMENT v3.23.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. The Company’s segment information is prepared on the same basis that management reviews the financial information for operational decision-making purposes.
Westwood’s chief operating decision maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues and Economic Earnings, a non-GAAP measurement. We define Economic Earnings as net income (loss) plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic Earnings because depreciation charges represent an allocation of the decline in the value of the related assets that will
ultimately require replacement. In addition, we do not adjust Economic Earnings for tax deductions related to restricted stock expense or amortization of intangible assets.
Westwood Holdings Group, Inc., the parent company of Advisory and Trust, does not have revenues and is the entity in which we record typical holding company expenses including employee compensation and benefits for holding company employees, directors’ fees and investor relations costs. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment.
Advisory
Our Advisory segment provides investment advisory services to (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals, (ii) sub-advisory relationships where Westwood provides investment management services to the Westwood Funds®, funds offered by other financial institutions and funds offered by our Trust segment and (iii) pooled investment vehicles, including collective investment trusts. Westwood Management, Salient and Broadmark provide investment advisory services to similar clients and are included in our Advisory segment.
Trust
Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment.
(in thousands)AdvisoryTrustWestwood
Holdings		EliminationsConsolidated
Three Months Ended September 30, 2023
Net fee revenues from external sources$16,902 $5,063 $— $— $21,965 
Net intersegment revenues1,564 66 — (1,630)— 
Other, net(85)— — — (85)
Total revenues$18,381 $5,129 $— $(1,630)$21,880 
September 30, 2023 segment assets$278,466 $47,897 $14,536 $(190,148)$150,751 
September 30, 2023 segment goodwill$23,100 $16,401 $— $— $39,501 
Three Months Ended September 30, 2022
Net fee revenues from external sources$10,474 $5,177 $— $— $15,651 
Net intersegment revenues450 83 — (533)— 
Other, net(245)— — — (245)
Total revenues$10,679 $5,260 $— $(533)$15,406 
September 30, 2022 segment assets$227,781 $48,600 $28,676 $(174,070)$130,987 
September 30, 2022 segment goodwill$— $16,401 $— $— $16,401