20.	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, 2017, 2016 and 2015 is prepared using the following methodology:

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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.

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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, 2017, 2016 and 2015, 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,
		2017			2016			2015
Financial Advisory	Net Revenue	$	1,387,682		$	1,301,044		$	1,279,628
	Operating Expenses (a)		1,143,586			1,017,055			1,005,837
	Operating Income	$	244,096		$	283,989		$	273,791
	Total Assets	$	843,142		$	907,035		$	763,374
Asset Management	Net Revenue	$	1,255,820		$	1,051,316		$	1,111,105
	Operating Expenses (a)		810,870			769,737			736,798
	Operating Income	$	444,950		$	281,579		$	374,307
	Total Assets	$	756,398		$	645,653		$	640,034
Corporate	Net Revenue	$	809		$	(18,989	)	$	(37,125	)
	Operating Expenses (a)/(b)		(135,591	)		29,118			627,593
	Operating Income (Loss)	$	136,400		$	(48,107	)	$	(664,718	)
	Total Assets	$	3,329,137		$	3,003,820		$	3,074,366
Total	Net Revenue	$	2,644,311		$	2,333,371		$	2,353,608
	Operating Expenses (a)		1,818,865			1,815,910			2,370,228
	Operating Income (Loss)	$	825,446		$	517,461		$	(16,620	)
	Total Assets	$	4,928,677		$	4,556,508		$	4,477,774

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

	Year Ended December 31,
	2017		2016		2015
Financial Advisory	$	6,596	$	5,661	$	4,412
Asset Management		2,830		3,666		2,957
Corporate		22,072		23,937		25,416
Total	$	31,498	$	33,264	$	32,785

(b)

Operating expenses include a benefit of $202,546 for the year ended December 31, 2017, and a provision of $547,691 for the year ended December 31, 2015, recorded for the provision (benefit) pursuant to the tax receivable agreement. See Note 18 for information regarding the tax receivable agreement obligation.

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.

Effective January 1, 2017, the Company’s reporting by geographic region was transitioned from the Company’s previously disclosed North America, Europe and rest of the world regions to the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific. Comparable prior year information has been recast to reflect our revised geographic presentation.

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,
	2017		2016		2015
Net Revenue:
Americas	$	1,558,070	$	1,399,285	$	1,322,898
EMEA		903,525		795,932		813,136
Asia Pacific		182,716		138,154		217,574
Total	$	2,644,311	$	2,333,371	$	2,353,608
Operating Income (Loss):
Americas (a)	$	596,044	$	335,887	$	(259,538	)
EMEA		193,781		168,745		163,612
Asia Pacific		35,621		12,829		79,306
Total	$	825,446	$	517,461	$	(16,620	)
Identifiable Assets:
Americas	$	2,600,412	$	3,015,267	$	2,811,850
EMEA		2,039,385		1,286,149		1,405,555
Asia Pacific		288,880		255,092		260,369
Total	$	4,928,677	$	4,556,508	$	4,477,774

(a)

Operating income (loss) includes a benefit of $202,546 for the year ended December 31, 2017, and a provision of $547,691 for the year ended December 31, 2015, recorded for the provision (benefit) pursuant to the tax receivable agreement. See Note 18 for information regarding the tax receivable agreement obligation.