What changed in this filing

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Item 1. Financial Statements

2023-11-08 compared with 2023-08-08 · 101 added, 85 removed, 595 unchanged (24% of the section changed)

3 unchanged sentences

(in millions, except for share and per share data, unaudited)

September 30,

2023 December 31,

41 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

7 unchanged sentences

Depreciation and amortization 4.5 4.2 12.7 14.8

Amortization of acquired intangibles — 0.1 — 0.1

Consolidated Funds’ expense 0.8 — 2.7 —

22 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

10 unchanged sentences

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended June 30, 2023 and 2022

For the three months ended September 30, 2023 and 2022

($ in millions except share data, unaudited)

7 unchanged sentences

non-controlling

March 31, 2022 41.4 $ — $ — $ ( 88.0 ) $ ( 9.9 ) $ ( 97.9 ) $ — $ ( 97.9 )

June 30, 2022 41.4 $ — $ 0.5 $ ( 59.8 ) $ ( 11.7 ) $ ( 71.0 ) $ — $ ( 71.0 )

Equity-based compensation — — 0.4 — — 0.4 — 0.4

6 unchanged sentences

Net income — — — 17.8 — 17.8 — 17.8

September 30, 2022 41.4 $ — $ 0.9 $ ( 42.4 ) $ ( 13.6 ) $ ( 55.1 ) $ — $ ( 55.1 )

June 30, 2023 41.5 $ — $ 1.5 $ 10.1 $ ( 7.9 ) $ 3.7 $ 2.3 $ 6.0

March 31, 2023 41.5 $ — $ 1.4 $ ( 0.8 ) $ ( 9.3 ) $ ( 8.7 ) $ 0.4 $ ( 8.3 )

Capital contributions — — — — — — 7.7 7.7

4 unchanged sentences

— — — — 0.7 0.7 — 0.7

Withholding tax related to stock option exercise — — ( 0.4 ) — — ( 0.4 ) — ( 0.4 )

Net de-consolidation of Funds

— — — — — ( 1.9 ) ( 1.9 )

Dividends ($ 0.01 per share)

1 unchanged sentence

Net income — — — 19.6 — 19.6 0.2 19.8

June 30, 2023 41.5 $ — $ 1.5 $ 10.1 $ ( 7.9 ) $ 3.7 2.3 $ 6.0

September 30, 2023 41.5 $ — $ 1.8 $ 29.2 $ ( 8.1 ) $ 22.9 8.3 $ 31.2

See Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the six months ended June 30, 2023 and 2022

For the nine months ended September 30, 2023 and 2022

($ in millions except share data, unaudited)

19 unchanged sentences

Net income — — — 70.2 — 70.2 — 70.2

June 30, 2022 41.4 $ — $ 0.5 $ ( 59.8 ) $ ( 11.7 ) $ ( 71.0 ) $ — $ ( 71.0 )

September 30, 2022 41.4 $ — $ 0.9 $ ( 42.4 ) $ ( 13.6 ) $ ( 55.1 ) $ — $ ( 55.1 )

December 31, 2022 41.4 $ — $ 1.5 $ ( 12.5 ) $ ( 10.6 ) $ ( 21.6 ) $ — $ ( 21.6 )

7 unchanged sentences

Withholding tax related to stock option exercise and restricted stock vesting — — ( 0.7 ) — — ( 0.7 ) — ( 0.7 )

Net de-consolidation of Funds

— — — — — — ( 1.9 ) ( 1.9 )

Dividends ($ 0.03 per share)

1 unchanged sentence

Net income — — — 43.0 — 43.0 0.3 43.3

June 30, 2023 41.5 $ — $ 1.5 $ 10.1 $ ( 7.9 ) $ 3.7 $ 2.3 $ 6.0

September 30, 2023 41.5 $ — $ 1.8 $ 29.2 $ ( 8.1 ) $ 22.9 $ 8.3 $ 31.2

See Notes to Condensed Consolidated Financial Statements

2 unchanged sentences

(in millions, unaudited)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

2 unchanged sentences

Adjustments to reconcile net income to net cash flows from operating activities:

Amortization of acquired intangibles — 0.1

Loss on extinguishment of debt — 3.2

6 unchanged sentences

Decrease in investment advisory fees receivable 18.7 75.9

(Increase) decrease in other receivables, prepayments, deposits and other assets 2.1 ( 1.7 )

Increase in other receivables, prepayments, deposits and other assets ( 2.7 ) ( 4.9 )

Decrease in accrued incentive compensation, operating lease liabilities and other liabilities ( 21.9 ) ( 65.1 )

3 unchanged sentences

Adjustments to reconcile net income (loss) attributable to redeemable non-controlling interests of consolidated Funds to net cash flows from operating activities of consolidated Funds:

(Gains) losses on other investments ( 0.2 ) —

Purchase of investments ( 9.8 ) —

1 unchanged sentence

(Increase) decrease in receivables and other assets ( 3.2 ) —

Increase in accounts payable and other liabilities 24.6 —

Net cash flows from operating activities of consolidated Funds ( 10.2 ) —

4 unchanged sentences

Sale of investment securities 8.0 8.7

Cash flows from investing activities of consolidated Funds

Deconsolidation of Funds ( 12.5 ) —

Net cash flows from investing activities ( 23.7 ) ( 9.3 )

3 unchanged sentences

(in millions, unaudited)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from financing activities:

38 unchanged sentences

On October 15, 2014, the Company completed the initial public offering (the “Offering”) by OM plc pursuant to the Securities Act of 1933, as amended.

As of June 30, 2023, Paulson & Co.

As of September 30, 2023, Paulson & Co.

(“Paulson”) held approximately 21.6 % of the common stock of the Company.

For the six months ended June 30, 2022, the Company repurchased 4,147,450 shares of common stock at an average price of $ 24.09 per share, or approximately $ 100 million in total, including commissions.

For the nine months ended September 30, 2022, the Company repurchased 4,147,450 shares of common stock at an average price of $ 24.09 per share, or approximately $ 100 million in total, including commissions.

All shares of common stock repurchased by the Company were retired.

25 unchanged sentences

Investments are comprised of the following as of the dates indicated (in millions):

September 30,

2023 December 31,

4 unchanged sentences

4) Fair Value Measurements

The following table summarizes the Company’s assets that are measured at fair value on a recurring basis at June 30, 2023 (in millions):

The following table summarizes the Company’s assets that are measured at fair value on a recurring basis at September 30, 2023 (in millions):

Quoted prices

1 unchanged sentence

(Level II) Significant

(Level III) Uncategorized Total value, June 30, 2023

(Level III) Uncategorized Total value, September 30,

Assets of BSIG and consolidated Funds (1)

12 unchanged sentences

Derivatives ( 3.0 ) — — — ( 3.0 )

Common Stock ( 1.3 ) — — — ( 1.3 )

Consolidated Funds total ( 3.0 ) — — — ( 3.0 )

36 unchanged sentences

The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures.

(2) Investments in separate accounts of $ 0.1 million at June 30, 2023 consisted of 100 % cash equivalents.

(2) Investments in separate accounts of $ 0.1 million at September 30, 2023 consisted of 100 % cash equivalents.

Investments in separate accounts of $ 4.2 million at December 31, 2022 consist of approximately 100 % of equity securities and other investments.

The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II).

(3) Investments related to long-term incentive compensation plans of $ 43.0 million and $ 40.0 million at June 30, 2023 and December 31, 2022, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates.

(3) Investments related to long-term incentive compensation plans of $ 42.0 million and $ 40.0 million at September 30, 2023 and December 31, 2022, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates.

Accordingly, the Company has classified these investments as Level I.

(4) The uncategorized amounts of $ 4.3 million and $ 4.2 million at June 30, 2023 and December 31, 2022, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy.

(4) The uncategorized amounts of $ 20.2 million and $ 4.2 million at September 30, 2023 and December 31, 2022, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy.

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets.

2 unchanged sentences

Other investment vehicles are not subject to redemption restrictions.

The real estate investment Funds of $ 4.2 million and $ 4.1 million at June 30, 2023 and December 31, 2022, respectively, are subject to longer than quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds.

The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one to two years from June 30, 2023.

The real estate investment Funds of $ 4.1 million and $ 4.1 million at September 30, 2023 and December 31, 2022, respectively, are subject to longer than quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds.

The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one to two years from September 30, 2023.

The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams.

2 unchanged sentences

In connection with this process, changes in fair value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions.

There were no significant transfers of financial assets or liabilities between Levels II or III during the three and six months ended June 30, 2023 and 2022, respectively.

There were no significant transfers of financial assets or liabilities between Levels II or III during the three and nine months ended September 30, 2023 and 2022, respectively.

BrightSphere Investment Group Inc.

8 unchanged sentences

The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions):

September 30,

2023 December 31,

4 unchanged sentences

Total Liabilities $ 3.1 $ 2.5

“Investments at fair value” consist of investments in derivative securities.

“Investments at fair value” consist of investments in equity securities and derivatives.

To the extent the Company also has consolidated Funds that are not VIEs, the assets and liabilities of those Funds are not included in the table above.

9 unchanged sentences

The following information pertains to unconsolidated VIEs for which the Company holds a variable interest (in millions):

September 30,

2023 December 31,

6 unchanged sentences

The Company’s borrowings and long-term debt was comprised of the following as of the dates indicated (in millions):

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

(in millions) Carrying Value Fair Value Fair Value Level Carrying Value Fair Value Fair Value Level

12 unchanged sentences

(3) On January 18, 2022, the Company completed the full redemption of the $ 125 million aggregate principal amount outstanding of its 5.125 % Senior Notes due August 1, 2031.

As a result of this transaction, the Company recorded a $ 3.2 million loss on extinguishment of debt within the Condensed Consolidated Statements of Operations for the six months ended June 30, 2022.

As a result of this transaction, the Company recorded a $ 3.2 million loss on extinguishment of debt within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2022.

BrightSphere Investment Group Inc.

9 unchanged sentences

The operating leases have remaining lease terms of less than 1 year to 10 years, some of which include options to extend the leases for up to 5 years.

The following table summarizes information about the Company’s operating leases for the three and six months ended June 30 (in millions):

Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes information about the Company’s operating leases for the three and nine months ended September 30 (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

10 unchanged sentences

In determining the incremental borrowing rate, the Company considered the interest rate yield for the specific interest rate environment and the Company’s credit spread at the inception of the lease.

For the six months ended June 30, 2023 and 2022, the weighted average remaining lease term was 10.0 and 10.9 years, respectively, and the weighted average discount rate was 3.55 % and 3.39 %, respectively.

For the nine months ended September 30, 2023 and 2022, the weighted average remaining lease term was 9.7 and 10.7 years, respectively, and the weighted average discount rate was 3.53 % and 3.39 %, respectively.

Maturities of operating lease liabilities were as follows (in millions):

1 unchanged sentence

Year Ending December 31,

2023 (excluding the six months ended June 30, 2023)

2023 (excluding the nine months ended September 30, 2023)

Thereafter 49.6

8 unchanged sentences

This guaranty expires in 2033.

There are no liabilities recorded on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 related to this guaranty.

There are no liabilities recorded on the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 related to this guaranty.

The Company is subject to claims, legal proceedings, and other contingencies in the ordinary course of its business activities.

1 unchanged sentence

The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated.

As of June 30, 2023, there were no material accruals for claims and the Company does not believe any outstanding matters will have a material adverse effect on the Company.

As of September 30, 2023, there were no material accruals for claims and the Company does not believe any outstanding matters will have a material adverse effect on the Company.

BrightSphere Investment Group Inc.

9 unchanged sentences

However, given the fact that uncertainty exists around the requirement, the Company has chosen to evaluate its potential exposure related to non-collection and remittance of these taxes.

At June 30, 2023, management of the Company has estimated the potential maximum exposure and concluded that it is not material.

No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at June 30, 2023.

At September 30, 2023, management of the Company has estimated the potential maximum exposure and concluded that it is not material.

No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at September 30, 2023.

Considerations of credit risk

8 unchanged sentences

Diluted earnings per share is similar to basic earnings per share, but is adjusted for the effect of potentially issuable common stock, except when inclusion is antidilutive.

The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data):

BrightSphere Investment Group Inc.

1 unchanged sentence

9) Earnings Per Share (cont.)

Three Months Ended June 30, Six Months Ended June 30,

The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data):

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

18 unchanged sentences

Disaggregation of management fee revenue

The geographic disaggregation of management fee revenue for the three and six months ended June 30 (in millions) are presented below:

Three Months Ended June 30, Six Months Ended June 30,

The geographic disaggregation of management fee revenue for the three and nine months ended September 30 (in millions) are presented below:

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

4 unchanged sentences

11) Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended June 30, 2023 and 2022 are as follows (in millions):

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2023 and 2022 are as follows (in millions):

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of March 31, 2023

Balance, as of June 30, 2023

$ 3.2 $ ( 11.1 ) $ ( 7.9 )

2 unchanged sentences

Tax impact — ( 0.2 ) ( 0.2 )

Other comprehensive income 0.8 0.6 1.4

Balance, as of June 30, 2023

Other comprehensive income (loss) ( 0.9 ) 0.7 ( 0.2 )

Balance, as of September 30, 2023

$ 2.3 $ ( 10.4 ) $ ( 8.1 )

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of March 31, 2022

Balance, as of June 30, 2022

$ 1.7 $ ( 13.4 ) $ ( 11.7 )

3 unchanged sentences

Other comprehensive income (loss) ( 2.5 ) 0.6 ( 1.9 )

Balance, as of June 30, 2022

Balance, as of September 30, 2022

$ ( 0.8 ) $ ( 12.8 ) $ ( 13.6 )

2 unchanged sentences

11) Accumulated Other Comprehensive Income (Loss) (cont.)

The components of accumulated other comprehensive income (loss), net of tax, for the six months ended June 30, 2023 and 2022 are as follows (in millions):

The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2023 and 2022 are as follows (in millions):

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

4 unchanged sentences

Other comprehensive income 0.6 1.9 2.5

Balance, as of June 30, 2023

Balance, as of September 30, 2023

$ 2.3 $ ( 10.4 ) $ ( 8.1 )

5 unchanged sentences

Other comprehensive income (loss) ( 5.6 ) 2.8 ( 2.8 )

Balance, as of June 30, 2022

Balance, as of September 30, 2022

$ ( 0.8 ) $ ( 12.8 ) $ ( 13.6 )

(1) On January 18, 2022, the Company completed the full redemption of the $ 125 million aggregate principal amount outstanding of its 5.125 % Senior Notes due August 1, 2031.

As a result of this transaction, the Company recorded $ 1.3 million of amortization expense included in Amortization related to derivatives securities, before tax for the six months ended June 30, 2022.

As a result of this transaction, the Company recorded $ 1.3 million of amortization expense included in Amortization related to derivatives securities, before tax for the nine months ended September 30, 2022.

12) Derivatives and Hedging

8 unchanged sentences

12) Derivatives and Hedging (cont.)

As of June 30, 2023, the balance recorded in accumulated other comprehensive income (loss) was $( 11.1 ) million, net of tax.

As of September 30, 2023, the balance recorded in accumulated other comprehensive income (loss) was $( 10.4 ) million, net of tax.

This balance will be reclassified to earnings through interest expense over the life of the issued debt.

The Company reclassified $ 0.8 million for each of the three months ended June 30, 2023 and 2022.

Amounts of $ 1.7 million and $ 3.0 million have been reclassified for the six months ended June 30, 2023 and 2022, respectively.

The Company reclassified $ 0.9 million and $ 0.8 million for the three months ended September 30, 2023 and 2022, respectively.

Amounts of $ 2.5 million and $ 3.8 million have been reclassified for the nine months ended September 30, 2023 and 2022, respectively.

During the next twelve months the Company expects to reclassify approximately $ 3.6 million to interest expense.

On January 18, 2022, the Company completed the full redemption of the $ 125 million aggregate principal amount outstanding of its 5.125 % Senior Notes due August 1, 2031.

As a result of this transaction, amortization expense of $ 1.3 million (of the $ 3.0 million interest expense reclassified to earnings for the six months ended June 30, 2022) was reclassified to earnings as interest expense.

As a result of this transaction, amortization expense of $ 1.3 million (of the $ 3.8 million interest expense reclassified to earnings for the nine months ended September 30, 2022) was reclassified to earnings as interest expense.

The Company has the following reportable segment:

16 unchanged sentences

ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S.

GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, goodwill impairment and amortization of acquired intangible assets, capital transaction costs and restructuring costs.

GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, and restructuring costs.

Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses.

6 unchanged sentences

GAAP net income (loss).

The following table presents the financial data for the Company’s segment for the three months ended June 30, 2023 (in millions):

Three Months Ended June 30, 2023

The following table presents the financial data for the Company’s segment for the three months ended September 30, 2023 (in millions):

Three Months Ended September 30, 2023

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 95.0 $ — $ 1.3 $ 96.3

ENI operating expenses 47.3 3.9 0.8 (a) 52.0

ENI revenue $ 106.5 $ — $ 0.8 (a) $ 107.3

ENI operating expenses 44.0 3.4 ( 0.3 ) (b)

Earnings before variable compensation 62.5 ( 3.4 ) 1.1 60.2

3 unchanged sentences

Earnings after Affiliate key employee distributions 33.2 ( 4.1 ) 1.1 30.2

Net interest expense — ( 3.5 ) ( 0.4 ) (b) ( 3.9 )

Net investment income — — 0.5 (c) 0.5

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.1 ) (c) ( 0.1 )

Income tax expense — ( 4.4 ) ( 1.1 ) (d) ( 5.5 )

Net interest expense — ( 2.7 ) ( 0.4 ) (c)

Net investment income — — 0.4 (d)

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.2 ) (d)

Income tax expense — ( 7.1 ) ( 0.6 ) (e)

Economic net income $ 33.2 $ ( 13.9 ) $ 0.3 $ 19.6

2 unchanged sentences

13) Segments (cont.)

The following table presents the financial data for the Company’s segments for the three months ended June 30, 2022 (in millions):

Three Months Ended June 30, 2022

The following table presents the financial data for the Company’s segments for the three months ended September 30, 2022 (in millions):

Three Months Ended September 30, 2022

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 86.8 $ — $ — $ 86.8

ENI operating expenses 39.7 4.4 ( 18.5 ) (a) 25.6

ENI operating expenses 40.4 4.1 ( 8.7 ) (b)

Earnings before variable compensation 46.4 ( 4.1 ) 8.7 51.0

3 unchanged sentences

Earnings after Affiliate key employee distributions 26.4 ( 5.0 ) 8.7 30.1

Net interest expense — ( 4.6 ) ( 0.1 ) (b) ( 4.7 )

Net investment loss — — ( 0.7 ) (c) ( 0.7 )

Income tax expense — ( 6.3 ) ( 6.4 ) (d) ( 12.7 )

Net interest expense — ( 4.3 ) ( 0.1 ) (c)

Net investment loss — — ( 0.4 ) (d)

Income tax expense — ( 4.6 ) ( 2.9 ) (e)

Economic net income $ 26.4 $ ( 13.9 ) $ 5.3 $ 17.8

The following table presents the financial data for the Company’s segment for the six months ended June 30, 2023 (in millions):

Six Months Ended June 30, 2023

The following table presents the financial data for the Company’s segment for the nine months ended September 30, 2023 (in millions):

Nine Months Ended September 30, 2023

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 186.1 $ — $ 2.0 $ 188.1

ENI operating expenses 90.9 7.4 1.3 (a) 99.6

ENI revenue $ 292.6 $ — $ 2.8 (a) $ 295.4

ENI operating expenses 134.9 10.8 1.0 (b)

Earnings before variable compensation 157.7 ( 10.8 ) 1.8 148.7

3 unchanged sentences

Earnings after Affiliate key employee distributions 81.5 ( 12.9 ) 1.8 70.4

Net interest expense — ( 6.9 ) ( 0.8 ) (b) ( 7.7 )

Net investment income — — 1.6 (c) 1.6

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.1 ) (c) ( 0.1 )

Income tax expense — ( 8.8 ) ( 1.8 ) (d) ( 10.6 )

Net interest expense — ( 9.6 ) ( 1.2 ) (c)

Net investment income — — 2.0 (d)

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.3 ) (d)

Income tax expense — ( 15.9 ) ( 2.4 ) (e)

Economic net income $ 81.5 $ ( 38.4 ) $ ( 0.1 ) $ 43.0

2 unchanged sentences

13) Segments (cont.)

The following table presents the financial data for the Company’s segment for the six months ended June 30, 2022 (in millions):

Six Months Ended June 30, 2022

The following table presents the financial data for the Company’s segment for the nine months ended September 30, 2022 (in millions):

Nine Months Ended September 30, 2022

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 294.5 $ — $ — $ 294.5

ENI operating expenses 80.8 8.9 ( 24.9 ) (a) 64.8

ENI operating expenses 121.2 13.0 ( 33.6 ) (b)

Earnings before variable compensation 173.3 ( 13.0 ) 33.6 193.9

3 unchanged sentences

Earnings after Affiliate key employee distributions 102.9 ( 16.5 ) 33.6 120.0

Net interest expense — ( 9.2 ) ( 2.0 ) (b) ( 11.2 )

Net investment loss — — ( 0.8 ) (c) ( 0.8 )

Loss on extinguishment of debt — — ( 3.2 ) (c) ( 3.2 )

Income tax expense — ( 15.1 ) ( 7.2 ) (d) ( 22.3 )

Net interest expense — ( 13.5 ) ( 2.1 ) (c)

Net investment loss — — ( 1.2 ) (d)

Loss on extinguishment of debt — — ( 3.2 ) (d)

Income tax expense — ( 19.7 ) ( 10.1 ) (e)

Economic net income $ 102.9 $ ( 49.7 ) $ 17.0 $ 70.2

12 unchanged sentences

Reconciling Adjustments:

Adjusted to include non-cash expenses for key employee equity and profit interest revaluations and restructuring costs, each of which are included in U.S.

Adjusted to include consolidated Funds revenues which are included in U.S.

GAAP revenue.

Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, amortization of acquired intangible assets, restructuring costs, and consolidated Funds’ operating expenses, each of which are included in U.S.

GAAP operating expenses.

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements