Segment Information

12 Months Ended

Dec. 31, 2014

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 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 years ended December 31, 2014, 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, human resources legal, facilities management and senior management activities.

For the years ended December 31, 2014, 2013 and 2012, 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,
		2014			2013(b)			2012(b)
Financial Advisory	Net Revenue	$	1,206,734		$	980,577		$	1,049,090
	Operating Expenses (a)		977,681			959,668			1,057,620
	Operating Income (Loss)	$	229,053		$	20,909		$	(8,530	)
	Total Assets	$	785,557		$	714,708		$	793,007
Asset Management	Net Revenue	$	1,134,595		$	1,039,130		$	896,260
	Operating Expenses (a)		749,345			704,045			659,502
	Operating Income	$	385,250		$	335,085		$	236,758
	Total Assets	$	588,403		$	612,018		$	566,677
Corporate	Net Revenue	$	(40,882	)	$	(34,355	)	$	(32,902	)
	Operating Expenses (a)		53,956			104,832			71,441
	Operating Loss	$	(94,838	)	$	(139,187	)	$	(104,343	)
	Total Assets	$	1,958,276		$	1,684,411		$	1,627,209
Total	Net Revenue	$	2,300,447		$	1,985,352		$	1,912,448
	Operating Expenses (a)		1,780,982			1,768,545			1,788,563
	Operating Income	$	519,465		$	216,807		$	123,885
	Total Assets	$	3,332,236		$	3,011,137		$	2,986,893

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

	Year Ended December 31,
	2014		2013		2012
Financial Advisory	$	4,826	$	5,256	$	5,710
Asset Management		2,610		2,556		3,250
Corporate		27,028		26,938		21,895
Total	$	34,464	$	34,750	$	30,855

(b) See Note 16 of Notes to Consolidated Financial Statements for information regarding the Cost Saving Initiatives and the impact on each of the Company’s business segments.

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. Accordingly, management believes that profitability by geographic region is not necessarily meaningful. 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.

	As Of Or For The Year Ended December 31,
	2014		2013			2012
Net Revenue:
United States	$	1,308,220	$	1,217,014		$	1,172,566
United Kingdom		277,610		205,695			180,784
France		376,432		281,740			265,523
Other Western Europe		150,810		123,975			132,754
Rest of World		187,375		156,928			160,821
Total	$	2,300,447	$	1,985,352		$	1,912,448
Operating Income (Loss):
United States	$	320,082	$	234,247		$	169,111
United Kingdom		61,744		(6,474	)		(37,329	)
France		87,308		14,845			8,332
Other Western Europe		12,634		(8,260	)		(20,812	)
Rest of World		37,697		(17,551	)		4,583
Total	$	519,465	$	216,807		$	123,885
Identifiable Assets:
United States	$	1,840,882	$	1,529,695		$	1,507,331
United Kingdom		266,584		239,606			226,578
France		809,241		824,712			808,655
Other Western Europe		135,889		118,939			114,763
Rest of World		279,640		298,185			329,566
Total	$	3,332,236	$	3,011,137		$	2,986,893