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Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
Operating Company
 
Asset Company
 
Total Economic Income/(Loss)
 
Funds
Consolidation
 
Other
Adjustments
 
 
 
US GAAP
 
(dollars in thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking
$
104,216

 
$
—

 
$
104,216

 
$
—

 
$
10,489

 
(a)
 
$
114,705

Brokerage
120,672

 
—

 
120,672

 
—

 
(9,290
)
 
(b)
 
111,382

Management fees
9,968

 
500

 
10,468

 
(565
)
 
(2,864
)
 
(c)
 
7,039

Incentive income (loss)
2,633

 
1,596

 
4,229

 
—

 
(4,221
)
 
(c)
 
8

Investment income (loss)
(3,141
)
 
3,626

 
485

 
—

 
(485
)
 
(d)
 
—

Interest and dividends
—

 
—

 
—

 
—

 
40,047

 
(b)(d)
 
40,047

Reimbursement from affiliates
—

 
—

 
—

 
(33
)
 
287

 
(e)
 
254

Reinsurance premiums
—

 
—

 
—

 
—

 
14,331

 
(f)
 
14,331

Other revenue
4,304

 
15

 
4,319

 
12

 
(3,401
)
 
(f)
 
930

Consolidated Funds revenues
—

 
—

 
—

 
3,468

 
—

 
 
 
3,468

Total revenues
238,652

 
5,737

 
244,389

 
2,882

 
44,893

 
 
 
292,164

Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)
5,298

 
1,408

 
6,706

 
—

 
32,822

 
(b)(d)
 
39,528

Total net revenues
233,354

 
4,329

 
237,683

 
2,882

 
12,071

 
 
 
252,636

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Non interest expense
215,808

 
3,011

 
218,819

 
—

 
21,962

 
(a)(e)(h)(i)
 
240,781

Goodwill impairments
—

 
—

 
—

 
—

 
4,100

 
 
 
4,100

Consolidated Funds expenses
—

 
—

 
—

 
2,231

 
—

 
 
 
2,231

Total expenses
215,808

 
3,011

 
218,819

 
2,231

 
26,062

 
 
 
247,112

Total other income (loss)
—

 
—

 
—

 
2,827

 
6,865

 
(c)(d)(i)
 
9,692

Income taxes expense / (benefit)
—

 
—

 
—

 
—

 
5,073

 
(h)
 
5,073

Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and investment funds
1,448

 
235

 
1,683

 
3,478

 
(830
)
 
 
 
4,331

Income (loss) attributable to Cowen Inc.
16,098

 
1,083

 
17,181

 
—

 
(11,369
)
 
 
 
5,812

Less: Preferred stock dividends
1,341

 
357

 
1,698

 
—

 
—

 
 
 
1,698

Economic income (loss) / Income (loss) attributable to Cowen Inc. common stockholders
14,757

 
726

 
15,483

 
$
—

 
$
(11,369
)
 
 
 
$
4,114

Add back: Depreciation and amortization expense
4,945

 
7

 
4,952

 
 
 
 
 
 
 
 
Economic operating income (loss)
$
19,702

 
$
733

 
$
20,435

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
Operating Company
 
Asset Company
 
Total
Economic Income/(Loss)
 
Funds
Consolidation
 
Other
Adjustments
 
 
 
US GAAP
 
(dollars in thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking
$
80,042

 
$
—

 
$
80,042

 
$
—

 
$
4,784

 
(a)
 
$
84,826

Brokerage
113,186

 
—

 
113,186

 
—

 
(9,901
)
 
(b)
 
103,285

Management fees
10,938

 
1,548

 
12,486

 
(612
)
 
(4,501
)
 
(c)
 
7,373

Incentive income (loss)
12,321

 
(2,958
)
 
9,363

 
(8
)
 
(9,307
)
 
(c)
 
48

Investment income (loss)
18,476

 
1,478

 
19,954

 
—

 
(19,954
)
 
(d)(g)
 
—

Interest and dividends
—

 
—

 
—

 
—

 
25,109

 
(b)(d)
 
25,109

Reimbursement from affiliates
—

 
—

 
—

 
(65
)
 
401

 
(e)
 
336

Aircraft lease revenue
—

 
—

 
—

 
—

 
419

 
(g)
 
419

Reinsurance premiums
—

 
—

 
—

 
—

 
9,226

 
(f)
 
9,226

Other revenue
(811
)
 
90

 
(721
)
 
—

 
1,597

 
(f)
 
876

Consolidated Funds revenues
—

 
—

 
—

 
3,075

 
—

 
 
 
3,075

Total revenues
234,152

 
158

 
234,310

 
2,390

 
(2,127
)
 
 
 
234,573

Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)
3,134

 
990

 
4,124

 
—

 
20,182

 
(b)(d)
 
$
24,306

Total net revenues
231,018

 
(832
)
 
230,186

 
2,390

 
(22,309
)
 
 
 
210,267

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Non interest expense
203,684

 
2,281

 
205,965

 
—

 
14,302

 
(a)(e)(h)(i)
 
220,267

Consolidated Funds expenses
—

 
—

 
—

 
3,149

 
—

 
 
 
3,149

Total expenses
203,684

 
2,281

 
205,965

 
3,149

 
14,302

 
 
 
223,416

Total other income (loss)
—

 
—

 
—

 
23,411

 
23,737

 
(c)(d)(i)(j)
 
47,148

Income taxes expense / (benefit)
—

 
—

 
—

 
—

 
3,993

 
(h)
 
3,993

Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and investment funds
1,672

 
808

 
2,480

 
22,652

 
(525
)
 
 
 
24,607

Income (loss) attributable to Cowen Inc.
25,662

 
(3,921
)
 
21,741

 
—

 
(16,342
)
 
 
 
5,399

Less: Preferred stock dividends
1,290

 
408

 
1,698

 
—

 
—

 
 
 
1,698

Economic income (loss) / Income (loss) attributable to Cowen Inc. common stockholders
24,372

 
(4,329
)
 
20,043

 
$
—

 
$
(16,342
)
 
 
 
$
3,701

Add back: Depreciation and amortization expense
2,913

 
46

 
2,959

 
 
 
 
 
 
 
 
Economic operating income (loss)
$
27,285

 
$
(4,283
)
 
$
23,002

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
Operating Company
 
Asset Company
 
Total Economic Income (Loss)
 
Funds
Consolidation
 
Other
Adjustments
 
 
 
US GAAP Net Income (Loss)
 
(dollars in thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking
$
187,212

 
$
—

 
$
187,212

 
$
—

 
$
7,599

 
(a)
 
$
194,811

Brokerage
225,829

 
—

 
225,829

 
—

 
(16,984
)
 
(b)
 
208,845

Management fees
19,695

 
1,203

 
20,898

 
(1,066
)
 
(5,652
)
 
(c)
 
14,180

Incentive income (loss)
19,270

 
1,706

 
20,976

 
(544
)
 
(20,409
)
 
(c)
 
23

Investment income (loss)
13,001

 
4,467

 
17,468

 
—

 
(17,468
)
 
(d)
 
—

Interest and dividends
—

 
—

 
—

 
—

 
69,139

 
(b)(d)
 
69,139

Reimbursement from affiliates
—

 
—

 
—

 
(67
)
 
609

 
(e)
 
542

Reinsurance premiums
—

 
—

 
—

 
—

 
20,922

 
(f)
 
20,922

Other revenue
5,427

 
51

 
5,478

 
12

 
(3,499
)
 
(f)
 
1,991

Consolidated Funds revenues
—

 
—

 
—

 
5,808

 
—

 
 
 
5,808

Total revenues
470,434

 
7,427

 
477,861

 
4,143

 
34,257

 
 
 
516,261

Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)
10,615

 
2,655

 
13,270

 
—

 
55,342

 
(b)(d)
 
68,612

Total net revenues
459,819

 
4,772

 
464,591

 
4,143

 
(21,085
)
 
 
 
447,649

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Non interest expense
421,562

 
4,442

 
426,004

 
—

 
34,084

 
(a)(e)(h)(i)
 
460,088

Goodwill impairment
—

 
—

 
—

 
—

 
4,100

 
 
 
4,100

Consolidated Funds expenses
—

 
—

 
—

 
3,713

 
—

 
 
 
3,713

Total expenses
421,562

 
4,442

 
426,004

 
3,713

 
38,184

 
 
 
467,901

Total other income (loss)
—

 
—

 
—

 
3,448

 
47,186

 
(c)(d)(i)
 
50,634

Income taxes expense / (benefit)
—

 
—

 
—

 
—

 
8,250

 
(h)
 
8,250

Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and investment funds
3,250

 
1,181

 
4,431

 
3,878

 
(1,772
)
 
 
 
6,537

Income (loss) attributable to Cowen Inc.
35,007

 
(851
)
 
34,156

 
—

 
(18,561
)
 
 
 
$
15,595

Less: Preferred stock dividends
2,717

 
679

 
3,396

 
—

 
—

 
 
 
3,396

Economic income (loss) / Income (loss) attributable to Cowen Inc. common stockholders
32,290

 
(1,530
)
 
30,760

 
$
—

 
$
(18,561
)
 
 
 
$
12,199

Add back: Depreciation and amortization expense
9,884

 
24

 
9,908

 
 
 
 
 
 
 
 
Economic operating income (loss)
$
42,174

 
$
(1,506
)
 
$
40,668

 
 
 
 
 
 
 
 


 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
Operating Company
 
Asset Company
 
Total Economic Income (Loss)
 
Funds
Consolidation
 
Other
Adjustments
 
 
 
US GAAP Net Income (Loss)
 
(dollars in thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking
$
173,966

 
$
—

 
$
173,966

 
$
—

 
$
8,848

 
(a)
 
$
182,814

Brokerage
227,257

 
—

 
227,257

 
—

 
(18,239
)
 
(b)
 
209,018

Management fees
22,217

 
3,396

 
25,613

 
(1,815
)
 
(9,008
)
 
(c)
 
14,790

Incentive income (loss)
15,360

 
(801
)
 
14,559

 
(17
)
 
(14,478
)
 
(c)
 
64

Investment income (loss)
36,710

 
(2,454
)
 
34,256

 
—

 
(34,256
)
 
(d)(g)
 
—

Interest and dividends
—

 
—

 
—

 
—

 
51,063

 
(b)(d)
 
51,063

Reimbursement from affiliates
—

 
—

 
—

 
(133
)
 
846

 
(e)
 
713

Aircraft lease revenue
—

 
—

 
—

 
—

 
1,134

 
(g)
 
1,134

Reinsurance premiums
—

 
—

 
—

 
—

 
17,873

 
(f)
 
17,873

Other revenue
(147
)
 
313

 
166

 
—

 
2,046

 
(f)
 
2,212

Consolidated Funds revenues
—

 
—

 
—

 
6,276

 
—

 
 
 
6,276

Total revenues
475,363

 
454

 
475,817

 
4,311

 
5,829

 
 
 
485,957

Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)
7,661

 
2,420

 
10,081

 
—

 
38,765

 
(b)(d)
 
48,846

Total net revenues
467,702

 
(1,966
)
 
465,736

 
4,311

 
(32,936
)
 
 
 
437,111

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Non interest expense
410,059

 
5,239

 
415,298

 
—

 
28,284

 
(a)(e)(h)(i)
 
443,582

Consolidated Funds expenses
—

 
—

 
—

 
5,580

 
—

 
 
 
5,580

Total expenses
410,059

 
5,239

 
415,298

 
5,580

 
28,284

 
 
 
449,162

Total other income (loss)
—

 
—

 
—

 
33,458

 
47,524

 
(c)(d)(i)(j)
 
80,982

Income taxes expense / (benefit)
—

 
—

 
—

 
—

 
10,916

 
(h)
 
10,916

Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and investment funds
3,812

 
826

 
4,638

 
32,189

 
(1,064
)
 
 
 
35,763

Income (loss) attributable to Cowen Inc.
53,831

 
(8,031
)
 
45,800

 
—

 
(23,548
)
 
 
 
22,252

Less: Preferred stock dividends
2,581

 
815

 
3,396

 
—

 
—

 
 
 
3,396

Economic income (loss) / Income (loss) attributable to Cowen Inc. common stockholders
51,250

 
(8,846
)
 
42,404

 
$
—

 
$
(23,548
)
 
 
 
$
18,856

Add back: Depreciation and amortization expense
5,842

 
103

 
5,945

 
 
 
 
 
 
 
 
Economic operating income (loss)
$
57,092

 
$
(8,743
)
 
$
48,349

 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

The following is a summary of the adjustments made to US GAAP net income (loss) to arrive at
Economic Income (Loss):
Funds Consolidation: The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP net income (loss) included elimination of incentive income and management fees earned from the Consolidated Funds and addition of investment fund expenses excluding management fees paid, investment fund revenues and investment income (loss).
Other Adjustments:
(a)     Economic Income (Loss) presents underwriting expenses net of investment banking revenues, expenses reimbursed
from clients within their respective expense category. Economic Income (Loss) also records retainer fees, relating to investment banking activities, collectible during the period that would otherwise be deferred until closing for US GAAP reporting.
(b)    Economic Income (Loss) brokerage revenues included net securities borrowed and securities loaned activities which
are shown gross in interest income and interest expense for US GAAP.
(c)     Economic Income (Loss) recognizes revenues (i) net of distribution fees paid to agents, (ii) records income from
uncrystallized incentive fees and (iii) the Company's proportionate share of management and incentive fees of certain
real estate operating entities, the healthcare royalty business and the activist business.
(d)     Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends).
(e)     Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of
revenues under US GAAP.
(f)     Economic Income (Loss) recognizes underwriting income from the Company's insurance related activities, net of
expenses, within other revenue.
(g)     Aircraft lease revenue is shown net of expenses in investment income for Economic Income (Loss).
(h)    Economic Income (Loss) excludes income taxes and acquisition related adjustments as management does not consider
these items when evaluating the performance of the segment.
(i)     Economic Income (Loss) recognizes the Company's proportionate share of expenses, for certain real estate
operating entities and the activist business, for which the investments are recorded under the equity method of accounting for investments.
(j)     Economic Income (Loss) excludes gain/(loss) on debt extinguishment.