Segment Reporting

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has two reportable business segments: Op Co and Asset Co. The Op Co segment consists of Cowen Investment Management ("CIM"), Investment Banking, Markets and Research. The Asset Co segment consists of the Company's private investments, private real estate investments and other legacy investment strategies.

Segment Measures

The measure of profit or loss for these segments is Economic Income (Loss), which management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

In general, Economic Income (Loss) is an after tax measure, which excludes the impact of deferred taxes and (i) includes management reclassifications which the Company believes provides additional insight into the performance of the Company’s core businesses and divisions (ii) eliminates the impact of consolidation for Consolidated Funds and (iii) excludes (1) goodwill and certain other impairments (2) certain other transaction-related adjustments and/or reorganization expenses and (3) certain costs associated with debt.

The Company does not disclose total asset information for its business segments as the information is not reviewed by the Chief Operating Decision Maker ("CODM"). The Op Co and Asset Co segments do not conduct inter-segment transactions.

The following table sets forth operating results for the Company's consolidated US GAAP net income (loss) and related reclassifications and adjustments necessary to reconcile to the Company's Economic Income (Loss) measure which represents the Company's Op Co and Asset Co segments' results:

	Three Months Ended March 31,
	2021	2020
	(dollars in thousands)
Economic Income
Op Co	143,858	3,650
Asset Co	(1,476)	(16,229)
Adjustments made to arrive at Income (loss) before income taxes
Non-controlling Interest	4,562	(62,188)
Preferred stock dividends	1,698	1,698
Amortization of (discount)/premium on convertible debt	(776)	(1,110)
Acquisition related amounts	(238)	—
Contingent liability adjustments	6,798	895
Debt extinguishment gain (loss)	(4,538)	—
Bargain purchase gain	3,855	—
Net Income tax effect	(1,677)	1,173
Net income (loss)	152,066	(72,111)

Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense, (iv) depreciation and amortization expense and (v) income taxes (subsequent to 2020 after all available net operating losses were utilized) presented on an Economic Income (Loss) basis by Segment. The following table sets forth the included segment information on a US GAAP basis with reconciliations to consolidated amounts.

	Three Months Ended March 31,
	2021	2020
	(dollars in thousands)
Op Co
Non-Interest Revenue	704,682	173,123
Interest Revenue	51,104	33,666
Interest Revenue, Consolidated funds	—	577
Total Revenues	755,786	207,366
Interest Expense	53,803	33,639
Interest Expense, Consolidated funds	—	1,061
Depreciation and Amortization	4,349	5,436
Income Taxes	55,085	—
Asset Co
Non-Interest Revenue	(1,668)	(10,695)
Interest Revenue	203	50
Interest Revenue, Consolidated funds	2	2
Total Revenues	(1,463)	(10,643)
Interest Expense	1,275	1,689
Interest Expense, Consolidated funds	—	—
Depreciation and Amortization	5	6
Income Taxes	(657)	—
Total Segment
Non-Interest Revenue *	703,014	162,428
Interest Revenue	51,307	33,716
Interest Revenue, Consolidated funds	2	579
Total Revenues	754,323	196,723
Interest and Dividend Expense (includes dividend expense of $2.6 million, and $3.5 million for the three months ended March 31, 2021 and 2020, respectively)	57,641	38,792
Interest and Dividend Expense, Consolidated funds (includes dividend expense of $0.2 million for the three months ended March 31, 2020)	—	1,252
Depreciation and Amortization	4,354	5,442
Income Taxes	54,428	—

* Includes dividend revenue of $8.1 million and $8.3 million for the three months ended March 31, 2021 and 2020, respectively. In addition, includes dividend revenue, consolidated funds, of $2.6 million and $3.5 million for the three months ended March 31, 2021 and 2020, respectively.