Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

	Three Months Ended September 30, 2019
										Adjustments
	Operating Company			Asset Company			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	70,022		$	—		$	70,022		$	—		$	7,270		(a)	$	77,292
Brokerage	105,860			—			105,860			—			(11,865		)	(b)	93,995
Management fees	10,321			586			10,907			(574		)	(3,033		)	(c)	7,300
Incentive income (loss)	15,384			(1,007		)	14,377			(13		)	(13,663		)	(c)	701
Investment income (loss)	15,231			822			16,053			—			(16,053		)	(d)	—
Interest and dividends	—			—			—			—			60,707			(b)(d)	60,707
Reimbursement from affiliates	—			—			—			(27		)	265			(e)	238
Reinsurance premiums	—			—			—			—			8,146			(f)	8,146
Other revenue	(132		)	6			(126		)	(26		)	1,389			(f)	1,237
Consolidated Funds revenues	—			—			—			2,431			—				2,431
Total revenues	216,686			407			217,093			1,791			33,163				252,047
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	5,758			1,389			7,147			—			49,330			(b)(d)	56,477
Total net revenues	210,928			(982		)	209,946			1,791			(16,167		)		195,570
Expenses
Non interest expense	200,637			1,403			202,040			—			15,408			(a)(e)(h)(i)	217,448
Consolidated Funds expenses	—			—			—			2,516			—				2,516
Total expenses	200,637			1,403			202,040			2,516			15,408				219,964
Total other income (loss)	—			—			—			5,621			26,721			(c)(d)(i)	32,342
Income taxes expense / (benefit)	—			—			—			—			1,365			(h)	1,365
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	661			—			661			4,896			(2,787		)		2,770
Income (loss) attributable to Cowen Inc.	9,630			(2,385		)	7,245			—			(3,432		)		3,813
Less: Preferred stock dividends	1,341			357			1,698			—			—				1,698
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	8,289			(2,742		)	5,547			$	—		$	(3,432	)		$	2,115
Add back: Depreciation and Amortization expense	5,073			9			5,082
Economic operating income (loss)	$	13,362		$	(2,733	)	$	10,629

	Three Months Ended September 30, 2018
								Adjustments
	Operating Company		Asset Company			Total Economic Income/(Loss)		Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	77,510	$	—		$	77,510	$	—		$	4,413		(a)	$	81,923
Brokerage	101,672		—			101,672		—			(9,637		)	(b)	92,035
Management fees	10,840		1,546			12,386		(381		)	(4,459		)	(c)	7,546
Incentive income (loss)	1,859		5,051			6,910		(20		)	(6,857		)	(c)(a)	33
Investment income (loss)	25,779		1,893			27,672		—			(27,672		)	(d)(g)	—
Interest and dividends	—		—			—		—			26,448			(b)(d)	26,448
Reimbursement from affiliates	—		—			—		(65		)	418			(e)	353
Aircraft lease revenue	—		—			—		—			375			(g)	375
Reinsurance premiums	—		—			—		—			8,378			(f)	8,378
Other revenue	4		79			83		—			1,551			(f)	1,634
Consolidated Funds revenues	—		—			—		2,303			—				2,303
Total revenues	217,664		8,569			226,233		1,837			(7,042		)		221,028
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	4,878		1,541			6,419		—			19,581			(b)(d)	$	26,000
Total net revenues	212,786		7,028			219,814		1,837			(26,623		)		195,028
Expenses
Non interest expense	189,516		6,672			196,188		—			14,454			(a)(e)(h)(i)	210,642
Consolidated Funds expenses	—		—			—		1,687			—				1,687
Total expenses	189,516		6,672			196,188		1,687			14,454				212,329
Total other income (loss)	—		—			—		2,654			39,328			(c)(d)(i)(j)	41,982
Income taxes expense / (benefit)	—		—			—		—			5,083			(h)	5,083
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	898		44			942		2,804			364				4,110
Income (loss) attributable to Cowen Inc.	22,372		312			22,684		—			(7,196		)		15,488
Less: Preferred stock dividends	1,290		408			1,698		—			—				1,698
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	21,082		(96		)	20,986		$	—		$	(7,196	)		$	13,790
Add back: Depreciation and Amortization expense	2,865		43			2,908
Economic operating income (loss)	$	23,947	$	(53	)	$	23,894

	Nine Months Ended September 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	$	257,234	$	—		$	257,234	$	—		$	14,869		(a)	$	272,103
Brokerage	331,689		—			331,689		—			(28,849		)	(b)	302,840
Management fees	30,016		1,788			31,804		(1,640		)	(8,684		)	(c)	21,480
Incentive income (loss)	34,654		699			35,353		(557		)	(34,072		)	(c)	724
Investment income (loss)	28,233		5,289			33,522		—			(33,522		)	(d)	—
Interest and dividends	—		—			—		—			129,846			(b)(d)	129,846
Reimbursement from affiliates	—		—			—		(94		)	874			(e)	780
Reinsurance premiums	—		—			—		—			29,068			(f)	29,068
Other revenue	5,295		56			5,351		(14		)	(2,109		)	(f)	3,228
Consolidated Funds revenues	—		—			—		8,239			—				8,239
Total revenues	687,121		7,832			694,953		5,934			67,421				768,308
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	16,371		4,046			20,417		—			104,672			(b)(d)	125,089
Total net revenues	670,750		3,786			674,536		5,934			(37,251		)		643,219
Expenses
Non interest expense	623,167		7,025			630,192		—			49,463			(a)(e)(h)(i)	679,655
Goodwill impairment	—		—			—		—			4,100				4,100
Consolidated Funds expenses	—		—			—		6,229			—				6,229
Total expenses	623,167		7,025			630,192		6,229			53,563				689,984
Total other income (loss)	—		—			—		9,069			73,907			(c)(d)(i)	82,976
Income taxes expense / (benefit)	—		—			—		—			9,615			(h)	9,615
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	2,944		—			2,944		8,774			(4,530		)		7,188
Income (loss) attributable to Cowen Inc.	44,639		(3,239		)	41,400		—			(21,992		)		$	19,408
Less: Preferred stock dividends	4,058		1,036			5,094		—			—				5,094
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	40,581		(4,275		)	36,306		$	—		$	(21,992	)		$	14,314
Add back: Depreciation and Amortization expense	14,957		30			14,987
Economic operating income (loss)	$	55,538	$	(4,245	)	$	51,293

	Nine Months Ended September 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	$	251,476		$	—		$	251,476	$	—		$	13,261		(a)	$	264,737
Brokerage	328,929			—			328,929		—			(27,876		)	(b)	301,053
Management fees	33,057			4,941			37,998		(2,197		)	(13,465		)	(c)	22,336
Incentive income (loss)	17,219			4,251			21,470		(37		)	(21,336		)	(c)	97
Investment income (loss)	62,488			(561		)	61,927		—			(61,927		)	(d)(g)	—
Interest and dividends	—			—			—		—			77,511			(b)(d)	77,511
Reimbursement from affiliates	—			—			—		(198		)	1,264			(e)	1,066
Aircraft lease revenue	—			—			—		—			1,509			(g)	1,509
Reinsurance premiums	—			—			—		—			26,251			(f)	26,251
Other revenue	(143		)	393			250		—			3,596			(f)	3,846
Consolidated Funds revenues	—			—			—		8,579			—				8,579
Total revenues	693,026			9,024			702,050		6,147			(1,212		)		706,985
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	12,539			3,961			16,500		—			58,346			(b)(d)	74,846
Total net revenues	680,487			5,063			685,550		6,147			(59,558		)		632,139
Expenses
Non interest expense	601,480			12,081			613,561		—			42,738			(a)(e)(h)(i)	656,299
Consolidated Funds expenses	—			—			—		7,267			—				7,267
Total expenses	601,480			12,081			613,561		7,267			42,738				663,566
Total other income (loss)	—			—			—		36,113			86,851			(c)(d)(i)(j)	122,964
Income taxes expense / (benefit)	—			—			—		—			15,999			(h)	15,999
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	2,805			700			3,505		34,993			(700		)		37,798
Income (loss) attributable to Cowen Inc.	76,202			(7,718		)	68,484		—			(30,744		)		37,740
Less: Preferred stock dividends	3,871			1,223			5,094		—			—				5,094
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	72,331			(8,941		)	63,390		$	—		$	(30,744	)		$	32,646
Add back: Depreciation and Amortization expense	8,707			147			8,854
Economic operating income (loss)	$	81,038		$	(8,794	)	$	72,244

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.