Segment Reporting

3 Months Ended

Mar. 31, 2022

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 represents the Company’s income tax expense or benefit calculated on Pre-tax Economic Income (Loss) once all currently available net operating losses have been utilized and is presented after preferred stock dividends. Economic Income (Loss) (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 goodwill and certain other impairments, certain other transaction-related adjustments and/or reorganization expenses and 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,
		2022		2021
	(dollars in thousands)
Economic Income
Op Co		$	36,297	$	143,858
Asset Co		1,150		(1,476)
Adjustments applied to arrive at Net Income (loss)
Income attributable to non-controlling interest		20,131		4,562
Preferred stock dividends		1,698		1,698
Amortization of (discount)/premium on convertible debt		(75)		(776)
Acquisition related amounts		(80)		(238)
Contingent liability adjustments		(5,133)		6,798
Debt extinguishment gain (loss) and accelerated debt costs		—		(4,538)
Bargain purchase gain		—		3,855
US GAAP Income tax expense		(11,889)		(54,428)
Economic income tax expense		13,048		52,751
Net income (loss)		$	55,147	$	152,066

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 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,
	2022		2021
	(dollars in thousands)
Op Co
Non-Interest Revenue	$	367,652	$	697,885
Interest Revenue	40,331		51,104
Total Revenues	407,983		748,989
Interest Expense	43,300		53,803
Depreciation and Amortization	7,179		4,349
Income Taxes	11,832		55,085
Asset Co
Non-Interest Revenue	2,599		(1,668)
Interest Revenue	8		203
Interest Revenue, Consolidated funds	2		2
Total Revenues	2,609		(1,463)
Interest Expense	1,236		1,275
Depreciation and Amortization	6		5
Income Taxes	57		(657)
Total Segment
Non-Interest Revenue *	370,251		696,217
Interest Revenue	40,339		51,307
Interest Revenue, Consolidated funds	2		2
Total Revenues	$	410,592	$	747,526
Interest and Dividend Expense (includes dividend expense of $2.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively)	46,524		57,641
Depreciation and Amortization	7,185		4,354
Income Taxes	11,889		54,428

* Includes dividend revenue of $6.0 million and $8.1 million for the three months ended March 31, 2022 and 2021, respectively. In addition, includes dividend revenue, consolidated funds, of $0.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively.