NEW YORK, Feb. 17, 2023 (GLOBE NEWSWIRE) -- Cowen Inc. (NASDAQ: COWN) (“Cowen” or “the Company”) today announced its operating results for the fourth quarter and full year ended December 31, 2022.

Announced Transaction

On August 2, 2022, TD Bank Group ("TD”) and Cowen announced a definitive agreement for TD to acquire Cowen in an all-cash transaction valued at approximately $1.3 billion, or $39 for each Class A common share of Cowen.  The transaction remains on track to close in the first calendar quarter of 2023 and is subject to customary closing conditions, including receipt of certain regulatory approvals.

Fourth Quarter 2022 Financial Summary

 Operating Results
(GAAP)		 Economic Operating
Income (Non-GAAP)
 Three Months Ended
December 31,		 Three Months Ended
December 31,
($ in millions, except per share information) 2022  2021 Δ %  2022  2021 Δ %
            
            
Revenue/Economic Proceeds (Non-GAAP)$413.9 $494.3 (16)% $371.7 $454.0 (18)%
Net income (loss) attributable to common stockholders for diluted earnings per share/Economic Operating Income (Non-GAAP)$11.2 $63.3 (82)% $9.6 $86.7 (89)%
Earnings (loss) per common share (diluted)$0.34 $2.02 (83)% $0.29 $2.77 (90)%
            
Note: Throughout this press release the Company presents Non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). A reconciliation of these Non-GAAP measures appears under the section, "Reconciliation of US GAAP (Unaudited) to Non-GAAP Measures."


Capital Optimization Update
During 2022, the Company repurchased $31.1 million of its common stock, or 1,069,002 shares, at an average price of $29.07 per share under the Company's existing share repurchase program. Outside the share repurchase program, the Company acquired approximately $36.1 million of stock as a result of net share settlements relating to the vesting of equity awards, or 1,058,933 shares, at an average price of $34.07 per share.

Quarterly Cash Dividend
On February 14, 2023, the Board of Directors declared a cash dividend of $0.12 per common share. The dividend will be payable on March 15, 2023, to stockholders of record as of the close of trading on March 1, 2023. If the merger with TD is consummated prior to the close of trading on March 1, 2023, no dividend will be paid to stockholders of Cowen who hold common shares prior to the closing of the merger with TD.

Select Balance Sheet Data

(Amounts in millions, except per share information)   
 December 31, 2022 December 31, 2021
Common equity (CE)$1,064.2  $1,015.9 
    
Book value per share (CE/CSO)$37.69  $36.57 
    
Common shares outstanding (CSO) 28.2   27.8 
    
Note: Common Equity (CE) is equivalent to Cowen Inc. stockholders’ equity.



Cowen Inc.
US GAAP Preliminary Unaudited Condensed Consolidated Statements of Operations
(Dollar and share amounts in thousands, except per share data)
        
 Three Months Ended Twelve Months Ended
 December 31 December 31
  2022   2021   2022   2021 
Revenue       
Investment banking$138,651  $263,815  $494,842  $1,067,162 
Brokerage 133,382   140,994   592,292   585,162 
Investment income (loss)       
Securities principal transactions, net 31,205   10,282   112,829   122,110 
Portfolio fund principal transactions, net 11,365   (2,062)  (4,442)  338 
Carried interest allocations 8,152   4,291   (31,555)  5,059 
Total investment income (loss) 50,722   12,511   76,832   127,507 
Management fees 16,529   16,216   66,670   72,287 
Incentive income 13   299   646   2,732 
Interest and dividends 69,370   51,753   312,134   219,292 
Insurance and reinsurance premiums 186   8,435   36,522   39,631 
Other revenues, net 14,208   2,599   7,010   5,211 
Consolidated Funds revenues (9,134)  (2,342)  (49,225)  (6,185)
Total revenue        413,927           494,280        1,537,723        2,112,799  
Interest and dividends expense 82,407   47,638   259,126   211,387 
Total net revenue        331,520           446,642        1,278,597        1,901,412  
Expenses       
Employee compensation and benefits 229,008   237,303   771,386   1,046,371 
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs (35,890)  9,095   (12,260)  33,938 
Operating, general, administrative and other expenses 126,243   121,540   424,470   430,250 
Depreciation and amortization expense 6,549   5,289   27,725   19,004 
Consolidated Funds expenses 19   111   248   630 
Total expenses        325,929           373,338        1,211,569        1,530,193  
Other income (loss)       
Net (losses) gains on other investments 2,143   11,853   9,613   35,494 
Bargain purchase gain, net of tax —   —   —   3,855 
Gain/(loss) on debt extinguishment —   —   —   (4,538)
Total other income (loss)            2,143             11,853               9,613             34,811  
Income (loss) before income taxes            7,734             85,157             76,641           406,030  
Income tax expense/(benefit) (11,487)  25,175   10,786   102,039 
Net income (loss)          19,221             59,982             65,855           303,991  
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and funds 6,293   (4,999)  (10,603)  8,380 
Net income (loss) attributable to Cowen Inc.          12,928             64,981             76,458           295,611  
Less: Preferred stock dividends 1,698   1,698   6,792   6,792 
Net income (loss) attributable to Cowen Inc. common stockholders$       11,230   $       63,283   $       69,666   $     288,819  
        
Earnings (loss) per share:       
Basic$0.40  $2.28  $2.47  $10.42 
Diluted$0.34  $2.02  $2.21  $8.85 
        
Weighted average shares used in per share data:       
Basic 28,411   27,731   28,183   27,721 
Diluted 32,744   31,355   31,544   32,628 


U.S. GAAP Financial Measures

Fourth quarter 2022 revenue was $413.9 million versus $494.3 million in the fourth quarter of 2021. Full-year 2022 revenue was $1.54 billion, down from $2.1 billion for full-year 2021. The year-over-year decrease was primarily due to reduced investment banking activity.

Fourth quarter 2022 investment banking revenues decreased $125.2 million to $138.7 million. Full-year 2022 investment banking revenues decreased $572.3 million to $494.8 million. During full-year 2022, the Company completed 49 underwriting transactions and 137 strategic advisory transactions.

Fourth quarter 2022 brokerage revenues decreased $7.6 million to $133.4 million. Full-year 2022 brokerage revenues increased $7.1 million to $592 million. The year-over-year increase was attributable to an increase in institutional services activity.

Fourth quarter 2022 investment income increased $38.2 million to $50.7 million. Full-year 2022 investment income decreased $50.6 million to $76.8 million. The year-over-year decrease is primarily due to negative carried interest allocations.

Fourth quarter 2022 interest and dividends increased $17.6 million to $69.4 million. Full-year 2022 interest and dividends income increased $92.8 million to $312.1 million. The increase in interest and dividends is primarily attributable to dividends receivable.

Fourth quarter 2022 employee compensation and benefits expenses were $229.0 million, a decrease of $8.3 million from the prior-year period. Full-year 2022 employee compensation and benefits expenses decreased $275 million to $771.4 million. The year-over-year decrease was primarily due to lower revenue.

Fourth quarter 2022 total expenses were $325.9 million, a decrease of $47.4 million from the prior-year period. Full-year 2022 total expenses decreased $318.6 million to $1.21 billion. The year-over-year decrease was primarily driven by lower compensation expenses associated with lower revenues.

Fourth quarter 2022 income tax benefit was $11.5 million compared to $25.2 million income tax expense in the prior-year quarter. Full-year 2022 income tax expense decreased $91.2 million to $10.8 million. The decrease was primarily due to the year-over-year decrease in the Company's income before income taxes.

Fourth quarter 2022 net income attributable to common stockholders was $11.2 million, down from $63.3 million in the fourth quarter of 2021. Full-year 2022 net income decreased $219.1 million to $69.7 million.

Non-GAAP Financial Measures 

Throughout this press release, the Company presents supplemental financial measures that are not prepared in accordance with US GAAP. These Non-GAAP financial measures include (i) Pre-tax Economic Income (Loss) (ii) Economic Income (Loss), (iii) Economic Operating Income (Loss), (iv) Economic Proceeds and related components, (v) Net Economic Proceeds and related components, (vi) Economic Expenses and related components and (vii) related per share measures. The Company believes that these Non-GAAP financial measures, viewed in addition to, and not in lieu of, the Company’s reported US GAAP results, provide useful information to investors and analysts regarding its performance and overall results of operations as it presents investors and analysts with a supplemental operating view of the Company’s financials to help better inform their analysis of the Company’s performance.

These Non-GAAP financial measures are an integral part of the Company’s internal reporting to measure the performance of its business segments, allocate capital and other strategic decisions as well as assess the overall effectiveness of senior management. The Company believes that presenting these Non-GAAP measures may provide expanded transparency into the Company’s business operations, growth opportunities and expense allocation decisions.

The Company’s primary Non-GAAP financial measures of profit or loss are Pre-tax Economic Income (Loss), Economic Income (Loss) and Economic Operating Income (Loss).  Pre-tax Economic Income (Loss) is a pre-tax measure which (i) includes management reclassifications which the Company believes provide additional insight on the performance of the Company’s core businesses and divisions; (ii) eliminates the impact of consolidation for Consolidated Funds; and excludes (iii) goodwill and intangible impairment, (iv) certain other transaction-related adjustments and/or reorganization expenses, as well as (v) certain costs associated with debt.  Economic Income (Loss) is a similar measure, but after tax, which includes 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 (this occurred during tax year 2020) and is presented after preferred stock dividends. Economic Operating Income (Loss) is a similar measure to Economic Income (Loss), but before depreciation and amortization expenses.  The Company believes that these Non-GAAP financial measures provide analysts and investors transparency into the measures of profit and loss management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Additionally, the measures provide investors and analysts with additional insight into the activities of the Company’s core businesses, taking into account, among other things, the impact of minority investment stakes, securities borrowing and lending activities and expenses from investment banking activities on US GAAP reported results.  The Company presents Pre-tax Economic Income (Loss) in addition to Economic Income (Loss) and Economic Operating Income (Loss) to provide insight to investors and analysts on how the Company manages its tax position over time.

In addition to Pre-tax Economic Income (Loss), Economic Income (Loss) and Economic Operating Income (Loss), the Company also presents Economic Proceeds, Net Economic Proceeds, Economic Expenses, as well as their related components. These measures include management reclassifications and the elimination of the impact of the consolidation for Consolidated funds as described above. These adjustments are meant to provide comparability to our peers as well as to provide investors and analysts with transparency into how the Company manages its operating businesses and how analysts and investors review and analyze the Company’s and its peers’ similar lines of businesses. For example, among others, within the Company’s Op Co business segment, investors and analysts typically review and analyze the performance of investment banking revenues net of underwriting expenses and excluding the impact of reimbursable expenses.  Additionally, the performance of the Company’s Markets business is typically analyzed as a unit  incorporating commissions, interest from securities financing transactions and gains and losses from proprietary and facilitation trading. The Company’s investment management business performance is analyzed and reviewed by investors and analysts through investment income, incentive income and management fees. The presentation of Economic Proceeds, Net Economic Proceeds, Economic Expenses as well as their related components align with these and other examples of how the Company’s business activities and performance are reviewed by analysts and investors in addition to providing simplification related to legacy businesses and investments for which the Company maintains long-term monetization strategies. Additionally, the Company manages its operating businesses to an Economic Compensation-to-Proceeds ratio. Presentation of Economic Compensation Expense and Economic Proceeds provides transparency in addition to the Company’s US GAAP Compensation Expense.

Reconciliations to comparable US GAAP measures are presented along with the Company’s Non-GAAP financial measures. The Non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other public companies and are not identical to corresponding measures used in our various agreements or public filings.

These Non-GAAP measures should not be considered in isolation or as a substitute for revenue, expenses, income (loss) before income taxes, net income, operating cash flows, investing and financing activities, or other income or cash flow statement data prepared in accordance with US GAAP.  As a result of the adjustments made to arrive at these Non-GAAP measures described below, these Non-GAAP measures have limitations in that they do not take into account certain items included or excluded under US GAAP, including its consolidated funds.

Fourth Quarter and Full Year 2022 Non-GAAP Financial Review

Economic Proceeds

 Three Months Ended Twelve Months Ended
 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
(Dollar amounts in thousands)Op Co Asset
Co		 Total Op Co Asset
Co		 Total Op Co Asset
Co		 Total Op Co Asset
Co		 Total
Economic Proceeds                       
Investment banking$132,371 $—  $ 132,371  $255,155  $—  $ 255,155   $478,184  $—  $  478,184   $1,025,688 $—  $  1,025,688
Brokerage 167,320  —     167,320   170,347   —      170,347    719,208   —       719,208    728,525  —          728,525
Management fees 19,942  150       20,092   19,807   289        20,096    82,681   850         83,531    79,255  1,200            80,455
Incentive income 13,542  (1,511)      12,031   13,508   (6)       13,502    (12,678)  (13,143)       (25,821)  34,579  (1,153)           33,426
Investment income (loss) 9,925  (9,292)           633   (8,553)  2,650         (5,903)  21,226   (20,837)             389    8,542  6,014            14,556
Other economic proceeds 39,239  5       39,244   792   (1)            791    57,299   7         57,306    7,942  (2)             7,940
Total: Economic Proceeds      382,339      (10,648)    371,691       451,056           2,932       453,988     1,345,920       (33,123)   1,312,797      1,884,531          6,059        1,890,590
Economic Interest Expense / (Income) 10,563  1,274       11,837   4,879   698          5,577    5,233   283           5,516    23,914  3,779            27,693
Net Economic Proceeds$   371,776  $ (11,922) $ 359,854  $  446,177   $     2,234   $ 448,411   $  1,340,687   $ (33,406) $  1,307,281   $  1,860,617  $     2,280   $  1,862,897


Economic Proceeds were $371.7 million, down 18% from the prior-year period. Full-year 2022 economic proceeds were $1,312.8 million, down 31% year-over-year.

Investment Banking Economic Proceeds were $132.4 million, down 48% from the prior-year period. Full-year 2022 banking proceeds were $478.2 million, down 53% year-over-year. The decrease was primarily due to reduced capital markets activity.

Brokerage Economic Proceeds were $167.3 million, down 2% from the prior-year period. Full-year 2022 brokerage proceeds were $719.2 million, down 1% year-over-year.

Management Fees Economic Proceeds were $20.1 million, flat from the prior-year period. Full-year 2022 management fees were $83.5 million, up 4% year-over-year.

Incentive Income Economic Proceeds were a gain of $12.0 million in the fourth quarter of 2022 versus a gain of $13.5 million in the prior-year period. Full-year 2022 incentive income proceeds were a loss of $25.8 million. The decline was primarily due to a decrease in performance fees.

Investment Income Economic Proceeds were a gain of $0.6 million in the fourth quarter of 2022 versus a loss of $5.9 million in the prior-year period. Full-year 2022 investment income proceeds were $0.4 million, a decrease of $14.2 million year-over-year.

Economic Interest Expense (Income) was an expense of $11.8 million, versus an expense of $5.6 million in the prior-year period. Full-year 2022 interest expense decreased $22.2 million year-over-year. The decrease in expense was primarily due to gains from mark-to-market adjustments on interest rate swaps.

Economic Expenses

 Three Months Ended Twelve Months Ended
 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
(Dollar amounts in thousands)Op Co Asset
Co		 Total Op Co Asset
Co		 Total Op Co Asset
Co		 Total Op Co Asset
Co		 Total
Economic Expenses                       
Compensation & Benefits$230,245 $326 $ 230,571  $246,170 $(7,266) $ 238,904  $772,202 $2,330 $    774,532  $1,046,730 $3,871 $ 1,050,601
Non-Compensation Expenses 113,429  123    113,552   93,994  174        94,168   412,192  232        412,424   359,577  187        359,764
Depreciation & Amortization 6,544  5        6,549   5,282  7          5,289   27,702  23         27,725   18,982  22          19,004
Non-Controlling Interest 502  —           502   1,142  —          1,142   2,314  —           2,314   5,314  —            5,314
Total: Economic Expenses$   350,720  $       454  $ 351,174  $  346,588  $   (7,085) $ 339,503  $  1,214,410  $    2,585  $ 1,216,995  $  1,430,603  $    4,080  $ 1,434,683


Economic Compensation Expenses were $230.6 million, down 3% from prior year period. Full-year 2022 economic compensation expenses were $774.5 million, down 26% year-over-year. Full-year 2022 economic compensation-to-proceeds ratio was 59%.

Economic Fixed Non-Compensation Expenses in the fourth quarter of 2022 were up $1.1 million from the prior-year period at $45.0 million. Full-year 2022 economic fixed non-compensation expenses were $172.0 million, up 7% year-over-year due in part to an increase in headcount as well as investments in infrastructure. The fixed non-compensation-to-economic-proceeds ratio rose from 8.5% in FY'21 to 13.1% in FY'22.

Economic Variable Non-Compensation Expenses were $68.6 million in the fourth quarter of 2022, up from $50.3 million in the fourth quarter of 2021. Full-year 2022 economic variable non-compensation expenses were $240.5 million, an increase of 20% year-over-year due in part to increased client event and entertainment costs and a change in business mix. The variable non-compensation-to-proceeds ratio rose from 10.6% in FY'21 to 18.3% in FY'22.

Economic Depreciation and Amortization Expenses were $6.5 million in the fourth quarter of 2022 compared to $5.3 million in the fourth quarter of 2021. Full-year 2022 economic depreciation and amortization expenses were $27.7 million, an increase of 46% due primarily to expenses associated with the Portico acquisition in late 2021.

Economic Income and Economic Operating Income

 Three Months Ended Twelve Months Ended
 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
(Dollar amounts in thousands)Op Co Asset
Co		 Total Op Co Asset
Co		 Total Op Co Asset
Co		 Total Op Co Asset
Co		 Total
Pre-tax Economic Income (Loss)$    21,056  $ (12,376) $    8,680  $    99,589  $     9,319  $ 108,908  $  126,277  $ (35,991) $  90,286  $ 430,014  $   (1,800) $ 428,214
Economic income tax expense 5,474  (3,218)  2,256  22,090  2,489  24,579  32,832  (9,358)  23,474  109,654  (460)  109,194
Preferred stock dividends 1,511  187   1,698  1,477  221  1,698  5,943  849   6,792  5,841  951   6,792
Economic Income (Loss) $    14,071  $   (9,345) $    4,726  $    76,022  $     6,609  $   82,631         87,502      (27,482)      60,020     314,519        (2,291)    312,228
Add back: Depreciation and amortization expense, net of taxes 4,843  3         4,846   4,072  5         4,077   20,500  17       20,517   14,142  16       14,158
Economic Operating Income (Loss)$    18,914  $   (9,342) $    9,572  $    80,094  $     6,614  $   86,708  $  108,002  $ (27,465) $  80,537  $ 328,661  $   (2,275) $ 326,386
                        
Economic Income per diluted share$0.43 $(0.29) $      0.14  $2.42 $0.21 $       2.64  $2.77 $(0.87) $      1.90  $9.64 $(0.07) $      9.57
Economic Operating Income per diluted share$0.58 $(0.29) $      0.29  $2.55 $0.21 $       2.77  $3.42 $(0.87) $      2.55  $10.07 $(0.07) $    10.00


The following tables reconciles total US GAAP Revenues and Other Income (Loss) to total Economic Proceeds for the three and twelve months ended December 31, 2022 and 2021:

For the three months ended December 31, 2022
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums  Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $138,651  $133,382  $50,722  $16,529  $13 $69,370  $186  $14,208  $(9,134) $2,143  $416,070 
Management Presentation Reclassifications:                      
Underwriting expensesa (1,867)  —   —   —   —  —   —   —   —   —   (1,867)
Reimbursable client expensesb (4,413)  —   —   —   —  —   —   (234)  —   —   (4,647)
Securities financing interest expensec —   (6,783)  —   —   —  (19,690)  —   —   —   —   (26,473)
Fund start-up costs, distribution and other feesd —   —   —   (395)  —  —   —   (549)  —   —   (944)
Certain equity method investmentse —   —   —   3,928   3,866  —   —   —   —   (5,763)  2,031 
Carried interestf —   —   (8,152)  —   8,152  —   —   —   —   —   — 
Proprietary trading, interest and dividendsg —   4,981   (29,216)  —   —  (44,480)  —   (10,258)  —   29,204   (49,769)
Insurance related activities expensesh —   —   —   —   —  —   (186)  36,077   —   —   35,891 
Facilitation trading gains and lossesi —   35,740   (6,705)  —   —  (5,200)  —   —   —   (25,584)  (1,749)
Total Management Presentation Reclassifications:  (6,280)  33,938   (44,073)  3,533   12,018  (69,370)  (186)  25,036   —   (2,143)  (47,527)
Fund Consolidated Reclassificationsl —   —   (6,016)  30   —  —   —   —   9,134   —   3,148 
Total Economic Proceeds $132,371  $167,320  $633  $20,092  $12,031 $—  $—  $39,244  $—  $—  $  371,691  


For the three months ended December 31, 2021
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $263,815  $140,994  $12,511  $16,216  $299  $51,753  $8,435  $2,599  $(2,342) $11,853  $506,133 
Management Presentation Reclassifications:                      
Underwriting expensesa (4,703)  —   —   —   —   —   —   —   —   —   (4,703)
Reimbursable client expensesb (3,957)  —   —   —   —   —   —   (234)  —   —   (4,191)
Securities financing interest expensec —   (1,126)  —   —   —   (32,855)  —   —   —   —   (33,981)
Fund start-up costs, distribution and other feesd —   —   —   (341)  —   —   —   (719)  —   —   (1,060)
Certain equity method investmentse —   —   —   4,168   9,212   —   —   —   —   (10,962)  2,418 
Carried interestf —   —   (4,291)  —   4,396   —   —   —   —   —   105 
Proprietary trading, interest and dividendsg —   9,371   (13,028)  —   (285)  (7,217)  —   (195)  —   12,767   1,413 
Insurance related activities expensesh —   —   —   —   —   —   (8,435)  (660)  —   —   (9,095)
Facilitation trading gains and lossesi —   21,108   20   —   —   (11,681)  —   —   —   (13,658)  (4,211)
Total Management Presentation Reclassifications:  (8,660)  29,353   (17,299)  3,827   13,323   (51,753)  (8,435)  (1,808)  —   (11,853)  (53,305)
Fund Consolidated Reclassificationsl —   —   (1,115)  53   (120)  —   —   —   2,342   —   1,160 
Total Economic Proceeds $255,155  $170,347  $(5,903) $20,096  $13,502  $—  $—  $791  $—  $—  $ 453,988  


For the twelve months ended December 31, 2022
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums  Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $494,842  $592,292  $76,832  $66,670  $646  $312,134  $36,522  $7,010  $(49,225) $9,613  $1,547,336 
Management Presentation Reclassifications:                      
Underwriting expensesa (4,914)  —   —   —   —   —   —   —   —   —   (4,914)
Reimbursable client expensesb (11,744)  —   —   —   —   —   —   (1,101)  —   —   (12,845)
Securities financing interest expensec —   (10,363)  —   —   —   (103,924)  —   —   —   —   (114,287)
Fund start-up costs, distribution and other feesd —   —   —   (1,513)  —   —   —   (2,445)  —   —   (3,958)
Certain equity method investmentse —   —   —   18,208   7,135   —   —   —   —   (16,040)  9,303 
Carried interestf —   —   31,555   —   (28,781)  —   —   —   —   —   2,774 
Proprietary trading gains and lossesg —   (55,407)  (67,956)  —   (4,821)  (98,139)  —   5,060   —   92,981   (128,282)
Insurance related activities expensesh —   —   —   —   —   —   (36,522)  48,782   —   —   12,260 
Facilitation trading gains and lossesi —   192,686   (7,547)  —   —   (110,071)  —   —   —   (86,554)  (11,486)
Total Management Presentation Reclassifications:  (16,658)  126,916   (43,948)  16,695   (26,467)  (312,134)  (36,522)  50,296   —   (9,613)  (251,435)
Fund Consolidated Reclassificationsl —   —   (32,495)  166   —   —   —   —   49,225   —   16,896 
Total Economic Proceeds $478,184  $719,208  $389  $83,531  $(25,821) $—  $—  $57,306  $—  $—  $  1,312,797  


For the twelve months ended December 31, 2021
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums  Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $1,067,162  $585,162  $127,507  $72,287  $2,732  $219,292  $39,631  $5,211  $(6,185) $34,811  $2,147,610 
Management Presentation Reclassifications:                      
Underwriting expensesa (24,978)  —   —   —   —   —   —   —   —   —   (24,978)
Reimbursable client expensesb (16,496)  —   —   —   —   —   —   (1,206)  —   —   (17,702)
Securities financing interest expensec —   8,006   —   —   —   (153,928)  —   —   —   —   (145,922)
Fund start-up costs, distribution and other feesd —   (361)  —   (9,190)  —   —   —   (2,633)  —   —   (12,184)
Certain equity method investmentse —   —   —   15,142   25,802   —   —   —   —   (32,261)  8,683 
Carried interestf —   —   (5,059)  —   5,486   —   —   —   —   —   427 
Proprietary trading gains and lossesg —   44,241   (92,900)  —   (494)  (19,233)  —   875   —   46,918   (20,593)
Insurance related activities expensesh —   —   —   —   —   —   (39,631)  5,693   —   —   (33,938)
Facilitation trading gains and lossesi —   91,477   (11,034)  —   —   (46,131)  —   —   —   (50,151)  (15,839)
Total Management Presentation Reclassifications:  (41,474)  143,363   (108,993)  5,952   30,794   (219,292)  (39,631)  2,729   —   (35,494)  (262,046)
Fund Consolidated Reclassificationsl —   —   (3,958)  2,216   (100)  —   —   —   6,185   —   4,343 
Income Statement Adjustments                      
Bargain purchase gainn —   —   —   —   —   —   —   —   —   (3,855)  (3,855)
Debt extinguishmentp —   —   —   —   —   —   —   —   —   4,538   4,538 
Total Income Statement Adjustments: