Segment Reporting

12 Months Ended

Dec. 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:

	Year Ended December 31,
	2022		2021		2020
	(dollars in thousands)
Economic Income
Op Co	$	87,502	$	314,519	$	329,381
Asset Co	(27,482)		(2,291)		(16,136)
Adjustments applied to arrive at Net Income (loss)
Income attributable to non-controlling interest	(10,603)		8,380		(9,299)
Preferred stock dividends	6,792		6,792		6,792
Amortization of (discount)/premium on convertible debt	(309)		(1,604)		(4,499)
Acquisition related amounts	(16,293)		(6,593)		(606)
Contingent liability adjustments	13,560		(15,118)		(8,492)
Debt extinguishment gain (loss) and accelerated debt costs	—		(10,095)		2,719
Bargain purchase gain	—		3,855		—
Goodwill and other impairment	—		(1,009)		(2,423)
US GAAP Income tax expense	(10,786)		(102,039)		(90,373)
Economic income tax expense	23,474		109,194		—
Net income (loss)	$	65,855	$	303,991	$	207,064

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.

	Year Ended December 31,
	2022		2021		2020
	(dollars in thousands)
Op Co
Non-Interest Revenue	$	1,442,022	$	1,917,406	1,564,710
Interest Revenue	153,050		192,756		169,358
Interest Revenue, Consolidated funds	—		—		2,683
Total Revenues	1,595,072		2,110,162		1,736,751
Interest Expense	180,983		199,570		173,537
Interest Expense, Consolidated funds	—		—		1,376
Depreciation and Amortization	27,700		18,982		22,655
Income Taxes	21,635		103,149		90,373
Asset Co
Non-Interest Revenue	(57,756)		2,163		18,396
Interest Revenue	407		465		770
Interest Revenue, Consolidated funds	—		9		9
Total Revenues	(57,349)		2,637		19,175
Interest Expense	5,100		5,035		6,120
Interest Expense, Consolidated funds	—		—		—
Depreciation and Amortization	25		22		22
Income Taxes	(10,849)		(1,110)		—
Total Segment
Non-Interest Revenue *	1,384,266		1,919,569		1,583,106
Interest Revenue	153,457		193,221		170,128
Interest Revenue, Consolidated funds	—		9		2,692
Total Revenues	$	1,537,723	$	2,112,799	1,755,926
Interest and Dividend Expense (includes dividend expense of $73.0 million, $6.8 million, and $8.1 million for the years ended December 31, 2022, 2021 and 2020, respectively)	259,126		211,387		187,725
Interest and Dividend Expense, Consolidated funds (includes dividend expense of $0 million, $— million and $0.7 million for the years ended December 31, 2022, 2021 and 2020, respectively)	—		—		2,064
Depreciation and Amortization	27,725		19,004		22,677
Income Taxes	10,786		102,039		90,373

* Includes dividend revenue of $158.7 million, $26.0 million and $17.3 million for the year ended December 31, 2022, 2021 and 2020, respectively. Dividend revenue, consolidated funds, was $0.0 million, $0.0 million and $2.5 million for the year ended December 31, 2022, 2021 and 2020, respectively.