Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Information

19. 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 two business segments as described in Note 1 above - Financial Advisory and Asset Management. In addition, as described in Note 1 above, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month periods ended March 31, 2013 and 2012 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 allocates investment gains and losses, 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, legal, facilities management and senior management activities.

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:

		Three Months Ended March 31,
		2013(a)			2012
Financial Advisory	Net Revenue	$	168,462		$	277,196
	Operating Expenses		216,908			249,897
	Operating Income (Loss)	$	(48,446	)	$	27,299
Asset Management	Net Revenue	$	244,025		$	214,527
	Operating Expenses		155,077			160,501
	Operating Income	$	88,948		$	54,026
Corporate	Net Revenue	$	(10,584	)	$	(5,684	)
	Operating Expenses		8,321			37,818
	Operating Loss	$	(18,905	)	$	(43,502	)
Total	Net Revenue	$	401,903		$	486,039
	Operating Expenses		380,306			448,216
	Operating Income	$	21,597		$	37,823

(a) See Note 14 of Notes to Condensed Consolidated Financial Statements for information regarding the Cost Saving Initiatives, and the impact on each of the Company’s business segments during the three month period ended March 31, 2013.

	As Of
	March 31, 2013		December 31, 2012
Total Assets
Financial Advisory	$	703,961	$	793,007
Asset Management		492,618		566,677
Corporate		1,531,588		1,627,209
Total	$	2,728,167	$	2,986,893