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Item 8. Financial Statements and Supplementary Data

2022-02-24 compared with 2021-02-25 · 430 added, 523 removed, 1481 unchanged (39% of the section changed)

1 unchanged sentence

Index to Financial Statements Page

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm (PCAOB ID No.

Consolidated Statements of Financial Condition

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Supplemental Financial Information

Consolidated Quarterly Results of Operations (unaudited)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes (collectively referred to as the "consolidated financial statements").

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with the accounting principles generally accepted in the United States of America.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2022, expressed an unqualified opinion on the Company’s internal control over financial reporting.

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The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Investment Banking Advisory Revenue - Success Fees - Refer to Notes 2 and 4 to the consolidated financial statements

Investment Banking Advisory Fee Revenue - Success Fees - Refer to Notes 2 and 4 to the consolidated financial statements

Critical Audit Matter Description

The Company recognizes investment banking advisory revenue that includes success fees for investment banking advisory services as performance obligations are fulfilled and these advisory services are provided to the Company’s clients.

However, the recognition of success fees, which are included in investment banking advisory revenue, is generally constrained until substantially all services have been provided, specified conditions have been met and it is probable that a significant reversal of

The Company recognizes investment banking advisory fee revenue that includes success fees for investment banking advisory services as performance obligations are satisfied and these advisory services are provided to the Company’s clients.

However, the recognition of success fees, which are included in investment banking advisory fee revenue, is generally constrained until substantially all services have been provided, specified conditions have been met and it is probable that a significant reversal of

the applicable revenue will not occur in a future period.

In certain instances, success fees may meet the criteria for recognition during a given reporting period although the transaction closed subsequent to the reporting period end.

The Company applies careful analysis and judgment to the remaining factors necessary for completion of a transaction, including any factors outside of their control, to determine whether it is probable a significant reversal of the success fee revenue will not occur.

A transaction can fail to be completed for many reasons, which are outside of the Company’s control, including but not limited to, failure of parties to agree upon final terms with the counterparty, securing necessary board or shareholder approvals, securing necessary financing or to achieve necessary regulatory approvals, or due to adverse market conditions.

The Company applies careful analysis and judgment to the remaining factors necessary for completion of a transaction, including factors outside of the Company’s control, to determine whether it is probable a significant reversal of the success fee revenue will not occur.

A transaction can fail to be completed for many reasons, which are outside of the Company’s control, including but not limited to, failure of parties to agree upon final terms with the counterparty, securing necessary board or shareholder approvals, securing necessary financing, achieving necessary regulatory approvals, or due to adverse market conditions.

Given the considerations to determine whether it is probable a significant reversal of success fee revenue will not occur at year end, performing audit procedures to evaluate such considerations involved a high degree of auditor judgement.

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– Evaluated whether the Company appropriately identified performance obligations and recognized revenue in the correct period by obtaining and evaluating evidence, including, but not limited to, inquiry with management, transaction close documents, press releases, confirmations, court approvals, executed agreements and communications, regarding the extent of uncertainty associated with variable consideration.

– Evaluated the accuracy of management’s calculation of investment banking advisory services fees by recalculating the revenue amounts and comparing our expectation to management’s calculation.

– Evaluated the accuracy of management’s calculation of investment banking advisory fee revenue by recalculating the revenue amounts and comparing our expectation to management’s calculation.

– Evaluated whether it was probable that a significant reversal of the applicable revenue would not occur.

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Cash and Cash Equivalents $ 578,317 $ 829,598

Investment Securities and Certificates of Deposit (includes available-for-dale debt securities with an amortized cost of $ 402,824 and $ 114,204 at December 31, 2020 and 2019, respectively)

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 706,826 and $ 402,824 at December 31, 2021 and 2020, respectively)

1,784,639 1,060,836

Financial Instruments Owned and Pledged as Collateral at Fair Value — 12,431

Securities Purchased Under Agreements to Resell — 13,566

Accounts Receivable (net of allowances of $ 2,704 and $ 5,372 at December 31, 2021 and 2020, respectively)

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Accounts Payable and Accrued Expenses 31,633 37,961

Securities Sold Under Agreements to Repurchase — 26,000

Payable to Employees and Related Parties 58,876 24,047

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Underwriting Fees 246,705 276,191 89,681

Commissions and Related Fees 205,767 189,506 200,015

Commissions and Related Revenue 205,822 206,692 190,098

Asset Management and Administration Fees 65,784 54,397 50,611

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Balance at December 31, 2018 65,872,014 $ 659 $ 1,818,100 $ ( 30,434 ) $ 364,882 ( 26,123,438 ) $ ( 1,395,087 ) $ 249,819 $ 1,007,939

Cumulative Effect of Accounting Change (1)

— — — 2,229 ( 2,229 ) — — — —

Net Income — — — — 297,436 — — 56,225 353,661

Other Comprehensive Income (Loss) — — — ( 1,252 ) — — — ( 203 ) ( 1,455 )

Other Comprehensive Income — — — 2,838 — — — 513 3,351

Treasury Stock Purchases — — — — — ( 3,399,227 ) ( 283,081 ) — ( 283,081 )

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Balance at December 31, 2019 68,698,675 687 2,016,524 ( 27,596 ) 558,269 ( 29,522,665 ) ( 1,678,168 ) 256,534 1,126,250

Cumulative Effect of Accounting Change (1)

— — — — ( 1,310 ) — — — ( 1,310 )

Net Income — — — — 350,574 — — 62,106 412,680

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Balance at December 31, 2020 72,195,283 722 2,266,136 ( 9,758 ) 798,573 ( 31,445,058 ) ( 1,824,727 ) 258,428 1,489,374

Cumulative Effect of Accounting Change (2)

— — — — ( 1,310 ) — — — ( 1,310 )

Net Income — — — — 740,116 — — 128,457 868,573

Other Comprehensive Income — — — 17,838 — — — 7,366 25,204

Other Comprehensive Income (Loss) — — — ( 2,328 ) — — — ( 447 ) ( 2,775 )

Treasury Stock Purchases — — — — — ( 5,455,800 ) ( 720,725 ) — ( 720,725 )

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(1) The cumulative adjustment relates to the adoption of Accounting Standards Update ("ASU") No.

2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01") on January 1, 2018, for which the Company recorded an adjustment to Retained Earnings to reflect cumulative unrealized losses, net of tax, on available-for-sale equity securities previously recorded in Accumulated Other Comprehensive Income (Loss).

(2) The cumulative adjustment relates to the adoption of ASU No.

2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") on January 1, 2020, for which the Company recorded an adjustment to Retained Earnings to reflect the increase in the Company's Allowance for Doubtful Accounts as a result of the use of the current expected credit loss model.

See Notes 2 and 3 for further information.

2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") on January 1, 2020, for which the Company recorded an adjustment to Retained Earnings to reflect an increase in the Company's allowance for credit losses as a result of the use of the current expected credit loss model.

See Note 2 for further information.

See Notes to Consolidated Financial Statements.

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Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration ( 8,681 ) ( 13,750 ) 10,718

Net (Gains) Losses on Investments and Investment Securities ( 24,227 ) ( 8,681 ) ( 13,750 )

Equity Method Investments 1,105 ( 1,636 ) 403

Equity-Based and Other Deferred Compensation 422,210 367,438 360,341

Net Loss on Sale and Wind-down of Operations in Mexico, Including Release of Cumulative Foreign Exchange Losses 35,247 — —

Net Loss on Sale and Wind-down of Operations in Mexico in 2020 and Release of Cumulative Foreign Exchange Losses 1,250 35,247 —

Impairment of Goodwill — — 2,921

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Investments Purchased ( 6,660 ) ( 143 ) ( 3,843 )

Proceeds from Redemption and Sale of Investments 20,967 — —

Distributions of Private Equity Investments 827 650 1,893

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Repayment of Short-Term Borrowings — — ( 30,000 )

Repayment of Subordinated Borrowings — — ( 6,799 )

Payment of Notes Payable ( 38,000 ) — —

Issuance of Notes Payable 38,000 — 205,718

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Accrued Dividends $ 14,332 $ 13,734 $ 14,642

Amounts Due for Purchase of Noncontrolling Interest $ 48,297 $ 851 $ —

Noncash Purchase of Noncontrolling Interest $ — $ — $ 2,701

Receipt of Equity Securities in Settlement of Accounts Receivable $ 1,955 $ — $ —

See Notes to Consolidated Financial Statements.

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The Company is a holding company which owns a controlling interest in, and is the sole general partner of, Evercore LP, a Delaware limited partnership ("Evercore LP").

The Company operates from its offices and through its affiliates in North America, Europe, the Middle East and Asia.

The Company operates from its offices and through its affiliates in the Americas, Europe, the Middle East and Asia.

The Investment Banking segment includes the advisory business through which the Company provides advice to clients on significant mergers, acquisitions, divestitures, shareholder activism and other strategic corporate transactions, with a particular focus on advising prominent multinational corporations and substantial private equity firms on large, complex transactions.

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The Investment Management segment includes the wealth management business through which the Company provides investment advisory, wealth management and fiduciary services for high-net-worth individuals and associated entities, and the private equity business, which holds interests in private equity funds which are not managed by the Company.

The Company's results also include the institutional asset management business, through which the Company directly and through affiliates, manages financial assets for sophisticated institutional investors.

The Company's historical results also include the institutional asset management business, through which the Company directly and through affiliates, managed financial assets for sophisticated institutional investors.

This business included Evercore Casa de Bolsa, S.A.

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("Evercore Canada") are also VIEs, and the Company is the primary beneficiary of these VIEs.

Specifically for Evercore ISI U.K., Evercore Japan, Evercore Beijing and Evercore Canada (as of January 1, 2019 for Evercore Japan and Evercore Beijing, and as of January 1, 2020 for Evercore Canada), the Company provides financial support through transfer pricing agreements with these entities, which exposes the Company to losses that are potentially significant to these entities, and has decision making authority that significantly affects the economic performance of these entities.

Specifically for Evercore ISI U.K., Evercore Japan, Evercore Beijing and Evercore Canada (as of January 1, 2020 for Evercore Canada), the Company provides financial support through transfer pricing agreements with these entities, which exposes the Company to losses that are potentially significant to these entities, and has decision making authority that significantly affects the economic performance of these entities.

The Company has the majority economic interest in Evercore U.K.

and has decision making authority that significantly affects the economic performance of this entity.

The Company included in its Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 377,878 and liabilities of $ 164,779 at

The Company included in its Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 446,736 and liabilities of $ 260,426 at December 31, 2021 and assets of $ 377,878 and liabilities of $ 164,779 at December 31, 2020.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

December 31, 2020 and Evercore ISI U.K., Evercore U.K., Evercore Japan and Evercore Beijing assets of $ 227,885 and liabilities of $ 129,494 at December 31, 2019.

All intercompany balances and transactions with the Company's subsidiaries have been eliminated upon consolidation.

Evercore LP partnership units

Class A LP Units – At the time of the formation transaction, the members of Evercore LP (the "Members") received Class A limited partnership units of Evercore LP ("Class A LP Units") in consideration for their contribution of the various entities included in the historical combined financial statements of the Company.

Class A LP Units – At the time of the Company's initial public offering, the members of Evercore LP (the "Members") received Class A limited partnership units of Evercore LP ("Class A LP Units") in consideration for their contribution of the various entities included in the historical combined financial statements of the Company.

The Class A LP Units were subject to vesting requirements and transfer restrictions and are exchangeable on a one -for-one basis for shares of Class A common stock of the Company ("Class A Shares").

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At December 31, 2020, all Class E LP Units were fully vested.

Class I-P Units – In 2016, in conjunction with the appointment of a current Co-Chief Executive Officer (then Executive Chairman) , the Company issued unvested Class I-P Units of Evercore LP ("Class I-P Units").

Class I-P Units – In 2016, in conjunction with the appointment of the Co-Chief Executive Officer (then Executive Chairman) , the Company issued unvested Class I-P Units of Evercore LP ("Class I-P Units").

The Class I-P Units are contingently exchangeable into Class I limited partnership units of Evercore LP ("Class I LP Units"), which are exchangeable on a one -for-one basis for Class A Shares.

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The Class K-P Units are contingently exchangeable into Class K limited partnership units of Evercore LP ("Class K LP Units"), which are ultimately exchangeable on a one -for-one basis for Class A Shares.

See Note 19 for further information.

In December 2021, the Class K-P Units that were issued in 2017 converted into Class K LP Units upon the achievement of certain defined benchmark results and continued service requirements.

See Note 18 for further information on Evercore LP partnership units subject to performance conditions.

The Company accounts for exchanges of Evercore LP partnership units ("LP Units") for Class A Shares based on the carrying amounts of the Members' LP Units immediately before the exchange.

The Company's interest in Evercore LP is within the scope of Accounting Standards Codification ("ASC") 810-20, " Control of Partnerships and Similar Entities." The Company consolidates Evercore LP and records noncontrolling interest for the economic interest in Evercore LP held directly by others, which includes the Members.

Revenue Recognition – The Company adopted ASU No.

2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09") on January 1, 2018 using the modified retrospective method of transition applied to contracts which were not completed as of January 1, 2018.

The Company did not have a cumulative-effect adjustment as of the date of adoption.

ASU 2014-09 creates ASC 606, "Revenue from Contracts with Customers," ("ASC 606"), which provides a five step model to revenue recognition as follows:

Revenue Recognition – The Company accounts for revenue recognition under ASC 606, "Revenue from Contracts with Customers," ("ASC 606"), which provides a five step model to revenue recognition as follows:

Identify the contract(s) with a customer

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For performance obligations satisfied over time, determining a measure of progress requires the Company to make significant judgments that affect the timing of revenue recognized.

For certain advisory services, the Company has

For certain advisory services, the Company has concluded that performance obligations are satisfied over time.

This is based on the premise that the Company transfers control of services and the client simultaneously receives benefits from these services over the course of an engagement.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

concluded that performance obligations are satisfied over time.

This is based on the premise that the Company transfers control of services and the client simultaneously receives benefits from these services over the course of an engagement.

For performance obligations satisfied at a point in time, determining when control transfers requires the Company to make significant judgments that affect the timing of when revenue is recognized.

performance obligations satisfied at a point in time, determining when control transfers requires the Company to make significant judgments that affect the timing of when revenue is recognized.

The Company records Investment Banking Revenue on the Consolidated Statements of Operations for the following:

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A transaction can fail to be completed for many reasons which are outside of the Company’s control, including failure of parties to agree upon final terms, to secure necessary board or shareholder approvals, to secure necessary financing, to achieve necessary regulatory approvals, or due to adverse market conditions.

In the case of bankruptcy engagements, fees are subject to approval of the court.

In the case of bankruptcy engagements, fees are subject to court approval.

With respect to retainer, announcement and success fees, there are no distinct performance obligations aside from advisory activities, which are generally focused on achieving a milestone (typically, the announcement and/or the closing of a transaction).

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Accordingly, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods.

In circumstances in which retainer fees are received in advance of services, these fees are initially recorded as deferred revenue (a contract liability), which is recorded in Other Current Liabilities on the Consolidated Statements of Financial Condition, and subsequently recognized as advisory fee revenue in Advisory Fees on the Consolidated Statements of Operations during the applicable time period within which the service is rendered.

In circumstances in which retainer fees are received in advance of services, these fees are initially recorded as deferred revenue (a contract liability), which is recorded in Other Current Liabilities on the Consolidated Statements of Financial Condition, and subsequently recognized in Advisory Fees on the Consolidated Statements of Operations during the applicable time period within which the service is rendered.

Announcement fees for advisory services are recognized upon announcement (the point at which it is determined that the reversal of revenue is not probable) and all other requirements for revenue recognition are satisfied.

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Revenues related to fairness or valuation opinions are recognized at the point in time when the opinion has been rendered and delivered to the client.

In the event the Company was to receive an opinion or success fee in advance of the completion conditions noted above, such fee would initially be recorded as deferred revenue (a contract liability) in Other Current Liabilities on the Consolidated Statements of Financial Condition and subsequently recognized as advisory fee revenue in Advisory Fees on the Consolidated Statements of Operations when the conditions of completion have been satisfied.

In the event the Company was to receive an opinion or success fee in advance of the completion conditions noted above, such fee would initially be recorded as deferred revenue (a contract liability) in Other Current Liabilities on the Consolidated Statements of Financial Condition and subsequently recognized in Advisory Fees on the Consolidated Statements of Operations when the conditions of completion have been satisfied.

Placement fee revenues are attributable to capital raising on both corporations and financial sponsors.

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Offering expenses are presented gross in the Consolidated Statements of Operations.

Commissions and Related Fees – Commissions and Related Fees include commissions received from customers for the execution of agency-based brokerage transactions in listed and over-the-counter equities.

Commissions and Related Revenue – Commissions and Related Revenue include commissions received from customers for the execution of agency-based brokerage transactions in listed and over-the-counter equities.

The execution of each trade order represents a distinct performance obligation and the transaction price at the point in time of trade order execution is fixed.

Trade execution is satisfied at the point in time that the customer has control of the asset and as such, fees are recorded on a trade date

Trade execution is satisfied at the point in time that the customer has control of the asset and as such, fees are recorded on a trade date basis or, in the case of payments under commission sharing arrangements, when earned.

The Company also earns subscription fees for the sales of research, as well as revenues from principal transactions primarily executed on a riskless

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

basis or, in the case of payments under commission sharing arrangements, when earned.

The Company also earns subscription fees for the sales of research.

principal basis.

The delivery of research under subscription arrangements represents a distinct performance obligation that is satisfied over time.

The fees are fixed and are recognized over the period in which the performance obligation is satisfied.

Cash received before the subscription period ends is initially recorded as deferred revenue (a contract liability) in Other Current Liabilities on the Consolidated Statements of Financial Condition, and is recognized in Commissions and Related Fees on the Consolidated Statements of Operations ratably over the period in which the related services are rendered.

Cash received before the subscription period ends is initially recorded as deferred revenue (a contract liability) in Other Current Liabilities on the Consolidated Statements of Financial Condition, and is recognized in Commissions and Related Revenue on the Consolidated Statements of Operations ratably over the period in which the related services are rendered.

Taxes collected from customers and remitted to governmental authorities are presented on a net basis on the Consolidated Statements of Operations.

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Fees paid in advance of services rendered and satisfaction of the performance obligation are initially recorded as deferred revenue (a contract liability) in Other Current Liabilities on the Consolidated Statements of Financial Condition, and are recognized in Asset Management and Administration Fees on the Consolidated Statements of Operations ratably over the period in which the related services are rendered and the performance obligation is satisfied.

Other Revenue, Including Interest and Investments, and Interest Expense – Other Revenue and Interest Expense is derived from investing customer funds in financing transactions.

These transactions are principally repurchases and resales of Mexican government and government agency securities.

Revenue and expenses associated with these transactions are recognized over the term of the repurchase or resale transaction.

These transactions were part of the Company's ECB business in Mexico, which was sold on December 16, 2020.

Other Revenue, Including Interest and Investments, and Interest Expense – Other Revenue, Including Interest and Investments, includes the following:

• Interest income and income (losses) on investment securities, including the Company's investment funds and futures contracts which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents, long-term accounts receivable and on the Company's debt security investment in G5 Holdings S.A.

("G5") (through June 25, 2021, the date G5 repaid its outstanding debentures in full.

See Note 10 for further information.)

Other Revenue also includes the following:

• Income (losses) earned on investment securities, including our investment funds and futures contracts which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents and on the Company’s debt security investment in G5 Holdings S.A.

• Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates

• Gains (losses) resulting from foreign currency fluctuations

• Principal trading and realized and unrealized gains and losses on interests in Private Equity funds which are not managed by the Company

• Realized and unrealized gains and losses on interests in private equity funds which the Company does not manage

• A net loss on the sales of the Company's businesses at ECB, as well as a loss related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico in 2020

• Adjustments to amounts due pursuant to the Company's tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates

Interest Expense includes interest expense associated with the Company’s Notes Payable and lines of credit.

In prior periods, Other Revenue and Interest Expense were also derived from investing customer funds in financing transactions.

These transactions were principally repurchases and resales of Mexican government and government agency securities.

Revenue and expenses associated with these transactions were recognized over the term of the repurchase or resale transaction.

These transactions were part of the Company's ECB business in Mexico, which was sold on December 16, 2020.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

Interest Expense also includes interest expense associated with the Company’s Notes Payable, subordinated borrowings and lines of credit.

Client Expense Reimbursement – In the conduct of its financial advisory service engagements, the Company receives reimbursement for certain expenses incurred by the Company in the course of performing services.

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Changes in a parent's ownership interest while the parent retains control of its subsidiary are accounted for as equity transactions.

See Note 16 for further information.

Fair Value of Financial Instruments – The majority of the Company's assets and liabilities are recorded at fair value or at amounts that approximate fair value.

Such assets and liabilities include cash and cash equivalents, investments, investment securities, financial instruments owned and pledged as collateral, repurchase and reverse repurchase agreements, receivables and payables and accruals.

Such assets and liabilities include cash and cash equivalents, investments, investment securities, receivables and payables and accruals.

See Note 11 for further information.

Cash and Cash Equivalents – Cash and Cash Equivalents consist of short-term highly-liquid investments with original maturities of three months or less.

Investment Securities and Certificates of Deposit and Futures Contracts – During 2019, the Company renamed "Marketable Securities and Certificates of Deposit" to "Investment Securities and Certificates of Deposit" on the Consolidated Statements of Financial Condition.

Investment Securities include investments in U.S.

Treasury securities, corporate, municipal and other debt securities and investments in readily-marketable equity securities, which are accounted for under ASC 320-10, " Investments - Debt Securities" and ASC 321-10, " Investments - Equity Securities," ("ASC 321-10").

Investment Securities and Certificates of Deposit and Futures Contracts – Investment Securities may include investments in U.S.

Treasury securities, other debt securities and investments in readily-marketable equity securities, including the Company's portfolio of exchange-traded funds, which are accounted for under ASC 320-10, " Investments - Debt Securities" and ASC 321-10, " Investments - Equity Securities," ("ASC 321-10").

The securities are carried at fair value on the Consolidated Statements of Financial Condition;

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Investment Securities transactions are recorded as of the trade date.

The Company also periodically enters into futures contracts.

The Company also periodically enters into futures contracts as an economic hedge against the Company's deferred cash compensation program.

In accordance with ASC 815, "Derivatives and Hedging," ("ASC 815") futures contracts are carried at fair value.

The Company invests in readily marketable debt and equity securities, as well as in a portfolio of exchange-traded funds and mutual funds, and periodically enters into futures contracts, as an economic hedge against the Company’s deferred cash compensation program.

Debt securities are classified as available-for-sale and any unrealized gains and losses are recorded as net increases or decreases to Accumulated Other Comprehensive Income (Loss), net of tax, and realized gains and losses on these securities are included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

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Realized and unrealized gains and losses on futures contracts are recorded in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

EGL and other broker-dealers also invest in fixed income portfolios consisting primarily of U.S.

Treasury securities, municipal bonds and other debt securities, which are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations, as required for broker-dealers in securities.

Certificates of Deposit consist of investments with certain banks with original maturities of six months or less when purchased.

EGL also invests in fixed income portfolios consisting of U.S.

Treasury securities, which are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations, as required for broker-dealers in securities.

Certificates of Deposit consist of investments with certain banks with original maturities of four months or less when purchased.

See Note 8 for further information.

Accounts Receivable and Contract Assets – Accounts Receivable consists primarily of investment banking fees and expense reimbursements charged to the Company's clients.

The Company records Accounts Receivable, net of any allowance for credit losses, when relevant revenue recognition criteria has been achieved and payment is conditioned on the passage of time.

The Company maintains an allowance for credit losses to provide coverage for estimated losses from its client receivables.

The Company adopted ASU 2016-13 on January 1, 2020, using a modified retrospective method of transition.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

Financial Instruments Owned and Pledged as Collateral at Fair Value – The Company's Financial Instruments Owned and Pledged as Collateral at Fair Value consist principally of foreign government obligations, which are recorded on a trade-date basis and are stated at quoted market values.

Related gains and losses are reflected in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

The Company pledges the Financial Instruments Owned and Pledged as Collateral at Fair Value to collateralize certain financing arrangements, which permits the counterparty to pledge the securities.

The Company's ECB business was sold in December 2020;

following the sale, there are no remaining Financial Instruments Owned and Pledged as Collateral at Fair Value.

See Notes 5 and 9 for further information.

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase – Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase are treated as collateralized financing transactions.

The agreements provide that the transferor will receive substantially the same securities in return at the maturity of the agreement.

These transactions are carried at the amounts at which the related securities will be subsequently resold or repurchased, plus accrued interest payable or receivable.

As the maturities on these transactions are short-term in nature (i.e.

mature on the next business day) and the underlying securities are debt instruments of the Mexican Government or its agencies, their carrying amounts approximate fair value.

The Company periodically assesses the collectability or credit quality related to securities purchased under agreements to resell.

The Company's ECB business was sold in December 2020;

following the sale, there are no remaining Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase.

See Notes 5 and 9 for further information.

Accounts Receivable and Contract Assets – Accounts Receivable consists primarily of investment banking fees and expense reimbursements charged to the Company's clients.

The Company records Accounts Receivable, net of any allowance for doubtful accounts, when relevant revenue recognition criteria has been achieved and payment is conditioned on the passage of time.

The Company maintains an allowance for doubtful accounts to provide coverage for estimated losses from its client receivables.

The Company adopted ASU 2016-13 on January 1, 2020, using a modified retrospective method of transition.

The Company recorded a cumulative-effect adjustment to decrease retained earnings by $ 1,310 as of January 1, 2020.

Company recorded a cumulative-effect adjustment to decrease retained earnings by $ 1,310 as of January 1, 2020.

Following the adoption of ASU 2016-13, the Company determines the adequacy of the allowance by estimating the probability of loss based on the Company's analysis of historical credit loss experience of its client receivables, and taking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the reported amount.

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Expected credit losses for newly recognized financial assets and changes to expected credit losses during the period are recognized in earnings.

The Investment Banking and Investment Management receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and fees related to private funds capital raising, which are collected in a period exceeding one year .

The Investment Banking and Investment Management receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and fees related to private funds capital raising and certain fees related to the private capital businesses, which are collected in a period exceeding one year .

The collection period for restructuring transaction receivables may exceed 90 days.

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The Company applies a practical expedient to expense costs to obtain a contract as incurred when the amortization period is one year or less.

See Note 4 for further information.

Investments – The Company's investments include investments in unconsolidated affiliated companies and other investments in private equity partnerships:

Affiliates – The Company has equity interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC (collectively, "ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff") and Luminis Partners ("Luminis") and includes its share of the income (losses) within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Consolidated Statements of Operations.

Affiliates – The Company has equity interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC (collectively, "ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff"), Luminis Partners ("Luminis") and Seneca Advisors LTDA ("Seneca Evercore", from July 2021 onward) and includes its share of the income (losses) within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Consolidated Statements of Operations.

The Company assesses its equity method investments annually for impairment, or more frequently if circumstances indicate impairment may have occurred.

See Note 11 for further information.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Private Equity – The investments in private equity funds consist primarily of investments in marketable and non-marketable securities of the portfolio companies.

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The Company recognizes its allocable share of the changes in fair value of the private equity funds' underlying investments as realized and unrealized gains (losses) within Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

The Company also maintains investments in Glisco Manager Holdings LP, Trilantic Capital Partners ("Trilantic") and equity securities in private companies, which are accounted for as equity securities without readily determinable fair values in accordance with ASC 321-10, as well as an investment in a debt security that is accounted for as a held-to-maturity security.

The Company assesses its investments quarterly for impairment, or more frequently if circumstances indicate impairment may have occurred.

Other – The Company also maintains investments in Glisco Manager Holdings LP and equity securities in private companies, which are accounted for as equity securities without readily determinable fair values in accordance with ASC 321-10.

During 2021, consistent with the Company's current investment strategy, the Company decided to wind-down its investment relationship with Trilantic Capital Partners ("Trilantic").

The Company also previously held an investment in a debt security that was accounted for as a held-to-maturity security, through June 25, 2021.

The Company assesses these investments quarterly for impairment, or more frequently if circumstances indicate impairment may have occurred.

See Note 10 for further information.

Leases – The Company adopted ASC 842, " Leases " ("ASC 842") on January 1, 2019, using the modified retrospective method of transition.

The Company did not have a cumulative-effect adjustment as of the date of adoption.

The Company elected to apply the package of practical expedients, which does not require reassessment of whether contracts are or contain leases, of lease classification and of initial direct costs.

The Company also elected the transition option in ASU No.

2018-11, " Leases (Topic 842):

Targeted Improvements ," ("ASU 2018-11") to not apply the new lease standard in comparative periods presented in financial statements in the year of adoption.

Following the adoption of ASC 842, the Company includes all leases, including short-term leases, on its Consolidated Statements of Financial Condition.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Leases – Following the adoption of ASC 842, "Leases" ("ASC 842") on January 1, 2019, the Company includes all leases, including short-term leases, on its Consolidated Statements of Financial Condition.

The Company does not separate lease and non-lease components of contracts for leases for the use of office space and equipment.

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The Company's lease agreements do not contain any residual value guarantees.

Operating lease expense is included in Occupancy and Equipment Rental on the Company's Consolidated Statements of Operations (which did not change from the legacy U.S.

GAAP presentation).

Operating lease expense is included in Occupancy and Equipment Rental on the Company's Consolidated Statements of Operations.

See Note 9 for further information.

Furniture, Equipment and Leasehold Improvements – Fixed assets, including equipment, hardware and software and leasehold improvements, are stated at cost, net of accumulated depreciation and amortization.

Furniture, equipment and computer hardware and software are depreciated using the straight-line method over the estimated useful lives of the assets, primarily ranging from three years to seven years .

Furniture, equipment and computer hardware and software are depreciated using the straight-line method over the estimated useful lives of the assets, primarily ranging from three to seven years .

Leasehold improvements are amortized over the shorter of the term of the lease or the useful life of the asset.

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The capitalized costs associated with cloud computing arrangements are amortized over the term of the arrangement and the expense is presented in the same line item on the Consolidated Statements of Operations as the fees associated with the hosting element of the arrangement (within Communications and Information Services).

See Note 12 for further information.

Goodwill and Intangible Assets – Goodwill is tested for impairment annually, as of November 30 th , or more frequently if circumstances indicate impairment may have occurred.

The Company assesses whether any goodwill allocated to its applicable

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

reporting unit is impaired by comparing the fair value of each reporting unit with its respective carrying amount.

The Company assesses whether any goodwill allocated to its applicable reporting unit is impaired by comparing the fair value of each reporting unit with its respective carrying amount.

For acquired businesses, contingent consideration is recognized and measured at fair value as of the acquisition date and at subsequent reporting periods.

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The discounted cash flow methodology begins with the forecasted adjusted cash flows from each of the reporting units and uses a discount rate that reflects the weighted average cost of capital adjusted for the risks inherent in the future cash flows.

The Company adopted ASU No.

2017-04, "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04") effective April 1, 2017.

ASU 2017-04 eliminates Step 2 from the goodwill impairment test and requires companies to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value.

The Company recognizes an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value.

Intangible assets with finite lives are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable as prescribed by ASC 360, " Property, Plant, and Equipment".

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

See Note 5 for further information.

Compensation and Benefits – Compensation includes salaries, bonuses (discretionary awards and guaranteed amounts), severance, deferred cash and share-based compensation.

Cash bonuses are accrued over the respective service periods to which they relate and deferred cash and share-based bonuses are expensed prospectively over their requisite service period.

Compensation and Benefits – Compensation includes salaries, bonuses (discretionary awards and guaranteed amounts), severance, deferred cash and share-based compensation, and other benefits.

Cash bonuses are accrued over the respective service periods to which they relate and deferred cash and share-based grants are expensed prospectively over their requisite service period.

Share-Based Payments and Other Deferred Compensation – The Company accounts for share-based payments in accordance with ASC 718, " Compensation – Stock Compensation" ("ASC 718").

See Note 19 for further information.

Compensation expense recognized pursuant to share-based awards is based on the grant date fair value of the award.

The fair value (as measured on the grant date) of awards that vest from one year to five years ("Service-based Awards") is amortized over the vesting periods or requisite service periods as required under ASC 718, however, the vesting of some Service-based Awards will accelerate upon the occurrence of certain events.

Compensation expense recognized pursuant to share-based compensation awards is based on the grant date fair value of the award.

The grant date fair value is amortized over the vesting periods or requisite service periods as required under ASC 718 ("Service-based Awards").

However, the vesting of some Service-based Awards will accelerate upon the occurrence of certain events.

The Company amortizes the grant-date fair value of share-based compensation awards made to employees, who are or will become retirement eligible prior to the stated vesting date, over the expected substantive service period.

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Once vested, restricted stock units ("RSUs"), and restricted stock are included in the basic and diluted weighted average Class A Shares outstanding.

Expense relating to RSUs, restricted stock and LP Units is charged to Employee Compensation and Benefits on the Consolidated Statements of Operations.

Compensation expense is recognized pursuant to performance-based awards if it is probable that the performance condition will be achieved.

Expense relating to RSUs, restricted stock and LP Units is reflected in Employee Compensation and Benefits on the Consolidated Statements of Operations.

Compensation expense is recognized pursuant to performance-based awards if, and to the extent, it is probable that the performance condition will be achieved.

See Note 18 for a discussion of the Company's Long-term Incentive Plan and other performance-based awards.

Awards classified as liabilities as required under ASC 718, such as cash settled share-based awards, are re-measured at fair value at each reporting period.

See Note 18 for further information.

Foreign Currency Translation – Foreign currency assets and liabilities have been translated at rates of exchange prevailing at the end of the periods presented.

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Transactional exchange gains and losses, as well as releases of cumulative foreign currency translation gains and losses from Accumulated Other Comprehensive Income (Loss), are included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

Income Taxes – The Company accounts for income taxes in accordance with ASC 740, " Income Taxes" ("ASC 740") which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of its assets and liabilities, as disclosed in Note 22.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Deferred income taxes reflect the net tax effects of temporary differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse.

Deferred income taxes reflect the net tax effects of temporary differences between financial reporting and the tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse.

Such temporary differences are reflected on the Company's Consolidated Statements of Financial Condition as deferred tax assets and liabilities.

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Excess tax benefits and deficiencies from the delivery of Class A Shares under share-based payment arrangements are recognized in the Company's Provision for Income Taxes.

See Note 22 for further information.

ASC 740 provides a benefit recognition model with a two-step approach consisting of "more-likely-than-not" recognition criteria, and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement.

ASC 740 also requires the recognition of liabilities created by differences between tax positions taken in a tax return and amounts recognized in the financial statements.

See Note 22 for further information.

Reclassifications – During 2018, the Company disaggregated "Investment Banking Revenue" into "Advisory Fees", "Underwriting Fees" and "Commissions and Related Fees" on the Consolidated Statements of Operations.

The Company also renamed Investment Management Revenue" to "Asset Management and Administration Fees" on the Consolidated Statements of Operations, which includes management fees from the wealth management and institutional asset management businesses.

Note 3 – Recent Accounting Pronouncements

ASU 2016-13 – In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13.

ASU 2016-13 provides amendments to ASC 326, "Financial Instruments - Credit Losses," which amend the guidance on the impairment of financial instruments and add an impairment model (the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses.

Entities will recognize an allowance for its estimate of expected credit losses as of the end of each reporting period.

ASU 2016-13 also eliminates the concept of other-than-temporary impairment for available-for-sale debt securities and requires impairments on these securities to be recognized in earnings through an allowance when fair value is less than amortized cost and a credit loss exists or when the securities are expected to be sold before a recovery of amortized cost.

The amendments in this update are effective during interim and annual periods beginning after December 15, 2019, with early adoption permitted after December 15, 2018.

The Company adopted ASU 2016-13 on January 1, 2020 using the modified retrospective approach by means of a cumulative-effect adjustment to decrease retained earnings by $ 1,310 as of January 1, 2020.

As a result of adopting ASU 2016-13, the Company’s allowance for credit losses on financial assets that are measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets.

These expected credit losses are measured based on historical experience, current conditions and forecasts that affect the collectability of the reported amounts.

Expected credit losses for newly recognized financial assets, and changes to expected credit losses during the period are recognized in earnings.

The impact of the new guidance primarily relates to the Company’s trade accounts receivable.

The Company previously used the specific identification method for establishing credit provisions and write-offs of its trade accounts receivable.

ASU 2018-13 – In August 2018, the FASB issued ASU No.

2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13").

ASU 2018-13 provides amendments to ASC 820, " Fair Value Measurements and Disclosures" ("ASC 820"), which remove the requirements surrounding the disclosure and policy of transfers between fair value levels and the valuation processes for recurring Level 3 fair value measurements.

In addition, ASU 2018-13 adds disclosure requirements for changes in unrealized gains and losses for Level 3 measurements and the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements.

The amendments in this update are effective during interim and annual periods beginning after December 15, 2019, with early adoption permitted.

The amendments on changes in unrealized gains and losses and unobservable inputs for Level 3 measurements should be applied prospectively, and all other amendments in this update should be applied retrospectively.

The Company adopted ASU 2018-13 on January 1, 2020.

The adoption of ASU 2018-13 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

ASU 2018-17 – In October 2018, the FASB issued ASU No.

2018-17, "Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities" ("ASU 2018-17").

ASU 2018-17 provides amendments to ASC 810, " Consolidation" which states that any indirect interest held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.

The amendments in this update are effective during interim and annual periods beginning after December 15, 2019, with early adoption permitted.

The amendments are required to be applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented.

The Company adopted ASU 2018-17 on January 1, 2020.

The adoption of ASU 2018-17 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

ASU 2019-12 – In December 2019, the FASB issued ASU No.

See Note 21 for further information.

Reclassifications:

During 2021, certain balances on the Consolidated Statements of Operations for prior periods were reclassified to conform to their current presentation.

Commissions and Related Revenue – The Company renamed "Commissions and Related Fees" to "Commissions and Related Revenue" on the Consolidated Statements of Operations and reclassified $ 925 and $ 592 of principal trading gains and losses from the Company's institutional equities business from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue" for the years ended December 31, 2020 and 2019, respectively.

Note 3 – Recent Accounting Pronouncements

ASU 2019-12 – In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU No.

2019-12, "Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes" ("ASU 2019-12").

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The amendments on separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented, amendments on ownership changes of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis, with a cumulative-effect adjustment recorded through retained earnings as of the beginning of the period of adoption, and all other amendments should be applied prospectively.

The Company adopted ASU 2019-12 on January 1, 2021.

The adoption of ASU 2019-12 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

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The amendments in this update are effective during interim and annual periods beginning after December 15, 2020, with early adoption permitted.

The Company adopted ASU 2020-01 on January 1, 2021.

The adoption of ASU 2020-01 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

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The amendments should be applied using a modified or full retrospective transition method.

The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

The Company adopted ASU 2020-06 on January 1, 2022.

The adoption of ASU 2020-06 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the years ended December 31, 2021, 2020 and 2019:

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the years ended December 31, 2020, 2019 and 2018:

For the Years Ended December 31,

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Underwriting Fees 246,705 276,191 89,681

Commissions and Related Fees 205,767 189,506 200,015

Commissions and Related Revenue 205,822 206,692 190,098

Total Investment Banking $ 3,204,519 $ 2,238,156 $ 1,933,364

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Contract Balances

The change in the Company’s contract assets and liabilities during the periods primarily reflects timing differences between the Company’s performance and the client’s payment.

The change in the Company’s contract assets and liabilities during the following periods primarily reflects timing differences between the Company’s performance and the client’s payment.

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the years ended December 31, 2021 and 2020 are as follows:

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The Company's contract assets represent arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date.

Under ASC 606, revenue is

Under ASC 606, revenue is recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.

The Company recognized revenue of $ 28,657 , $ 23,409 and $ 15,115 on the Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Consolidated Statements of Financial Condition.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.

The Company recognized revenue of $ 23,409 , $ 15,115 and $ 16,468 on the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018, respectively, that was initially included in deferred revenue on the Company’s Consolidated Statements of Financial Condition.

Generally, performance obligations under client arrangements will be settled within one year ;

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$ 5,372 $ 9,191

Bad debt expense 6,878 10,451

Bad debt expense, net of reversals ( 60 ) 6,878

Write-offs, foreign currency translation and other adjustments ( 2,608 ) ( 10,697 )

Ending Balance $ 2,704 $ 5,372

(1) Beginning Balance for the year ended December 31, 2020 includes the cumulative-effect adjustment of $ 1,310 , which reflects the increase in the Company's Allowance for Doubtful Accounts as a result of the use of the current expected credit loss model related to the adoption of ASU 2016-13 on January 1, 2020.

See Notes 2 and 3 for further information.

The change in the balance during the year ended December 31, 2020 is primarily related to an increase in the current period provision of expected credit losses, which is impacted by the change in the amount of receivables outstanding greater than 120 days at December 31, 2020, and the write-off of aged receivables.

(1) Beginning Balance for the year ended December 31, 2020 includes the cumulative-effect adjustment of $ 1,310 , which reflects the increase in the Company's allowance for credit losses as a result of the use of the current expected credit loss model related to the adoption of ASU 2016-13 on January 1, 2020.

See Note 2 for further information.

The change in the balance during the year ended December 31, 2021 is primarily related to the write-off of aged receivables.

The decrease in the current period provision of expected credit losses is impacted by recoveries of bad debt, as well as the change in the amount of receivables outstanding greater than 120 days at December 31, 2021.

For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics.

The following table presents the Company’s long-term accounts receivable and long-term contract assets from the Company's private and secondary fund advisory businesses as of December 31, 2021, by year of origination:

Amortized Cost Basis by Origination Year

Amortized Carrying Value by Origination Year

2021 2020 2019 2018 2017 Total

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As a result of this transaction, the Company deconsolidated assets of $ 475 , representing an allocation of goodwill based on the relative fair value of the business being sold to the total fair value of the Institutional Asset Management reporting unit.

This transaction resulted in a pre-tax gain of $ 1,355 included in Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

This transaction resulted in a pre-tax gain of $ 1,355 included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations for the year ended December 31, 2020.

• On December 16, 2020, the Company completed the sale of its remaining ECB business for a purchase price of MXN 35,000 ($ 1,634 ).

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As a result of this transaction, the Company deconsolidated assets of $ 32,487 , comprised primarily of $ 24,742 of Financial Instruments Owned and Pledged as Collateral at Fair Value, $ 3,317 of Investment Securities and $ 2,785 of Cash and Cash Equivalents and Restricted Cash and deconsolidated liabilities of $ 26,519 , comprised primarily of $ 24,764 of Securities Sold Under Agreements to Repurchase.

This transaction resulted in a pre-tax loss of $ 4,796 included in

This transaction resulted in a pre-tax loss of $ 4,796 included in Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020 .

• In 2020, the Company completed the transition of its advisory presence in Mexico to a strategic alliance relationship with a newly-formed independent strategic advisory firm founded by certain former employees.

The Company is in the process of winding down the business, which is expected to be completed in 2022.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

The Company is in the process of winding down the business, which is expected to be completed in 2021.

Following the above transactions, the Company concluded that the liquidation of its operations in Mexico was substantially complete.

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$ 122,756 $ 8,002 $ 130,758

Impairment of Goodwill — ( 2,921 ) ( 2,921 )

Sale of ECB Trust Business — ( 475 ) ( 475 )

Foreign Currency Translation and Other ( 1,157 ) — ( 1,157 )

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121,599 7,527 129,126

Sale of ECB Trust Business — ( 475 ) ( 475 )

Foreign Currency Translation and Other ( 880 ) — ( 880 )

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$ 120,719 $ 7,527 $ 128,246

(1) The amount of the Company's goodwill before accumulated impairment losses of $ 35,607 was $ 166,994 at December 31, 2018.

(1) The amount of the Company's goodwill before accumulated impairment losses of $ 38,528 was $ 166,774 , $ 167,654 and $ 169,286 at December 31, 2021, 2020 and 2019, respectively.

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Client Related $ — $ 3,630 $ 3,630 $ — $ 2,932 $ 2,932

Other 5,320 445 5,765 4,159 390 4,549

Total $ — $ 3,630 $ 3,630 $ — $ 2,932 $ 2,932

Expense associated with the amortization of intangible assets was $ 362 , $ 1,605 and $ 8,077 for the years ended December 31, 2021, 2020 and 2019, respectively.

Based on the intangible assets above, as of December 31, 2021, annual amortization of intangibles for each of the next five years is as follows:

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

Expense associated with the amortization of intangible assets was $ 1,605 , $ 8,077 and $ 9,199 for the years ended December 31, 2020, 2019 and 2018, respectively.

Based on the intangible assets above, as of December 31, 2020, annual amortization of intangibles for each of the next five years is as follows:

Impairments of Goodwill

At November 30, 2020, in accordance with ASC 350, "Intangibles - Goodwill and Other" ("ASC 350"), the Company performed its annual goodwill impairment assessment and concluded that the fair value of its reporting units substantially exceeded their carrying values.

At November 30, 2021 and 2020, in accordance with ASC 350, "Intangibles - Goodwill and Other" ("ASC 350"), the Company performed its annual goodwill impairment assessment and concluded that the fair value of its reporting units substantially exceeded their carrying values.

At November 30, 2019, the Company determined that the fair value of its reporting units substantially exceeded their carrying values, with the exception of its Institutional Asset Management reporting unit, which was less than its carrying value.

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(after adjustments for noncontrolling interest and income taxes) for the year ended December 31, 2019.

Note 6 – Acquisition and Transition Costs and Special Charges, Including Business Realignment Costs

Acquisition and Transition Costs

The Company recognized $ 562 , $ 1,013 and $ 21 for the years ended December 31, 2020, 2019 and 2018, respectively, as Acquisition and Transition Costs incurred in connection with acquisitions, divestitures, and other ongoing business development initiatives.

These costs are primarily comprised of professional fees for legal and other services, including costs in 2020 associated with the sale of the ECB business.

Special Charges, Including Business Realignment Costs

Note 6 – Special Charges, Including Business Realignment Costs

The Company recognized $ 8,554 for the year ended December 31, 2021, as Special Charges, Including Business Realignment Costs, related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's current investment strategy, the Company decided to wind-down during 2021.

See Note 10 for further information.

The Company recognized $ 46,645 for the year ended December 31, 2020, as Special Charges, Including Business Realignment Costs, including expenses of $ 41,669 primarily for separation and transition benefits for certain employees terminated as a result of the Company's review of its operations, described below, $ 3,320 related to the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the expansion of the Company's headquarters in New York and the Company's business realignment initiatives, and $ 1,656 for charges related to the impairment of assets resulting from the wind-down of the Company's businesses in Mexico.

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In 2020, the Company completed a review of its operations focused on markets, sectors and people which delivered lower levels of productivity in an effort to attain greater flexibility of operations and better position itself for future growth.

This review, which began in the fourth quarter of 2019, generated reductions of 8 % of the Company's headcount.

In conjunction with the employment reductions, the Company incurred costs (including costs related to the acceleration of deferred compensation) of $ 41,669 and $ 2,850 for the years ended December 31, 2020 and 2019, respectively, which has been recorded in Special Charges Including Business Realignment Costs.

The Company recognized $ 10,141 for the year ended December 31, 2019, as Special Charges, Including Business Realignment Costs, including expenses of $ 4,370 related to the acceleration of depreciation expense for leasehold improvements in conjunction with the expansion of the Company's headquarters in New York, a charge of $ 2,921 associated with the impairment of goodwill in the Company's Institutional Asset Management reporting unit and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations of $ 2,850 (described above).

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

review, which began in the fourth quarter of 2019, generated reductions of 8 % of the Company's headcount.

The Company recognized $ 5,012 for the year ended December 31, 2018, as Special Charges, Including Business Realignment Costs, related to separation benefits and costs for the termination of certain contracts associated with closing the Company's agency trading platform in the U.K.

and separation benefits and related charges associated with the Company's businesses in Mexico, as well as the acceleration of depreciation expense for leasehold improvements in conjunction with the expansion of the Company's headquarters in New York.

Note 7 – Related Parties

Investment Banking Revenue includes advisory fees earned from clients that have Senior Managing Directors and certain Senior Advisors and executives as a member of their Board of Directors of $ 15,641 for the year ended December 31, 2020.

Investment Banking Revenue includes advisory fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of $ 34,656 and $ 15,641 for the years ended December 31, 2021 and 2020, respectively.

Other Assets on the Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 20,397 and $ 10,159 as of December 31, 2021 and 2020, respectively.

See Note 18 for further information.

Receivable from Employees and Related Parties on the Consolidated Statements of Financial Condition consisted of the following at December 31, 2021 and 2020:

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Payable to Employees and Related Parties on the Consolidated Statements of Financial Condition consisted of the following at December 31, 2021 and 2020:

Board of Director Fees $ 550 $ 567

Amounts Due to U.K.

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Amounts Due Pursuant to Tax Receivable Agreements (a)

Amounts Due to Employees for the Sale of Outstanding Class R Interests of Private Capital Advisory L.P.

Other 480 550

Payable to Employees and Related Parties $ 58,876 $ 24,047

1 unchanged sentence

The long-term portion of $ 70,209 and $ 76,860 is disclosed in Amounts Due Pursuant to Tax Receivable Agreements on the Consolidated Statements of Financial Condition at December 31, 2021 and 2020, respectively.

(b) Relates to the current portion of the amount due to employees of the Real Estate Capital Advisory ("RECA") business for the sale of Class R Interests of Private Capital Advisory L.P.

The long-term portion of $ 20,587 due for contingent cash consideration is included within Other Long-term Liabilities on the Consolidated Statement of Financial Condition at December 31, 2021.

See Note 16 for further information.

Note 8 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of December 31, 2021 and 2020 were as follows:

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

Note 8 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of December 31, 2020 and 2019 were as follows:

December 31, 2021 December 31, 2020

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Due within one year $ 706,826 $ 706,847 $ 402,824 $ 402,863

Due after one year through five years — — 5,542 5,567

Total $ 706,826 $ 706,847 $ 402,824 $ 402,863

9 unchanged sentences

Equity Securities are carried at fair value with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

The Company had net realized and unrealized gains (losses) of $ 95 , $ 243 and ($ 193 ) for the years ended December 31, 2020, 2019 and 2018, respectively.

The Company had net realized and unrealized gains of $ 1,156 , $ 95 and $ 243 for the years ended December 31, 2021, 2020 and 2019, respectively.

Debt Securities Carried by Broker-Dealers

EGL and other broker-dealers invest in fixed income portfolios consisting primarily of U.S.

Treasury bills, municipal bonds and other debt securities.

At December 31, 2020, this portfolio consisted solely of U.S.

EGL and other broker-dealer subsidiaries invest in fixed income portfolios consisting primarily of U.S.

Treasury bills.

1 unchanged sentence

The Company had net realized and unrealized gains (losses) of $ 6 , ($ 1,216 ) and $ 491 for the years ended December 31, 2021, 2020 and 2019, respectively.

Included in Investment Securities above at December 31, 2020, are $ 99,983 of U.S.

Treasury bills purchased on December 31, 2020, which did not settle until January 4, 2021.

As of December 31, 2020, the Company had a payable to the broker for securities purchased of $ 99,983 recorded in Other Current Liabilities on the Consolidated Statement of Financial Condition.

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

Included in Investment Securities above are $ 99,983 of U.S.

Treasury bills purchased on December 31, 2020, which did not settle until January 4, 2021.

As of December 31, 2020, the Company had a payable to the broker for securities purchased of $ 99,983 recorded in Other Current Liabilities on the Consolidated Statements of Financial Condition.

Investment Funds

The Company invests in a portfolio of exchange-traded funds and mutual funds as an economic hedge against the Company's deferred cash compensation program.

The Company invests in a portfolio of exchange-traded funds as an economic hedge against its deferred cash compensation program.

See Note 18 for further information.

These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

The Company had net realized and unrealized gains (losses) of $ 16,913 , $ 13,785 and ($ 5,113 ) for the years ended December 31, 2020, 2019 and 2018, respectively.

The Company periodically enters into futures contracts as an economic hedge against the Company's deferred cash compensation program.

The Company had net realized and unrealized gains of $ 29,025 , $ 16,913 and $ 13,785 for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company periodically enters into futures contracts as an economic hedge against its deferred cash compensation program.

See Note 19 for further information.

Certificates of Deposit

At December 31, 2019, the Company held certificates of deposit of $ 214,796 with certain banks with original maturities of six months or less when purchased.

These certificates of deposit matured in January 2020.

Note 9 – Financial Instruments Owned and Pledged as Collateral at Fair Value, Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

The Company's ECB business was sold in December 2020.

See Note 5 for further information.

Prior to its sale, the Company, through its ECB business, entered into repurchase agreements with clients seeking overnight money market returns whereby ECB transferred to the clients Mexican government securities in exchange for cash and concurrently agreed to repurchase the securities at a future date for an amount equal to the cash exchanged plus a stipulated premium or interest factor.

ECB deployed the cash received from, and acquired the securities deliverable to, clients under these repurchase arrangements by purchasing securities in the open market, which the Company reflected as Financial Instruments Owned and Pledged as Collateral at Fair Value on the Consolidated Statements of Financial Condition, or by entering into reverse repurchase agreements with unrelated third parties.

The Company accounted for these repurchase and reverse repurchase agreements as collateralized financing transactions, which were carried at their contract amounts, which approximated fair value given that the contracts matured the following business day.

The Company recorded a liability on its Consolidated Statements of Financial Condition in relation to repurchase transactions executed with clients as Securities Sold Under Agreements to Repurchase.

The Company recorded as assets on its Consolidated Statements of Financial Condition, Financial Instruments Owned and Pledged as Collateral at Fair Value (where the Company had acquired the securities deliverable to clients under these repurchase arrangements by purchasing securities in the open market) and Securities Purchased Under Agreements to Resell (where the Company had acquired the securities deliverable to clients under these repurchase agreements by entering into reverse repurchase agreements with unrelated third parties).

These Mexican government securities were pledged as collateral against repurchase agreements.

Generally, collateral was posted equal to the contract value at inception and was subject to market changes.

These repurchase agreements were primarily with institutional customer accounts managed by ECB and permitted the counterparty to pledge the securities.

There were no remaining assets or liabilities related to collateralized financing activities as of December 31, 2020.

See Note 5 for further information.

As of December 31, 2019, a summary of the Company's assets, liabilities and collateral received or pledged related to these transactions is as follows:

December 31, 2019

Balance Market Value of

Collateral Received

Financial Instruments Owned and Pledged as Collateral at Fair Value $ 12,431

Securities Purchased Under Agreements to Resell 13,566 $ 13,572

Total Assets $ 25,997

Securities Sold Under Agreements to Repurchase $ ( 26,000 ) $ ( 25,992 )

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

At December 31, 2021, the Company held certificates of deposit of $ 141,218 with certain banks with original maturities of four months or less when purchased.

Note 9 – Leases

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The Company does not have any leases with variable lease payments.

Occupancy and Equipment Rental on the Consolidated Statements of Operations includes operating lease cost for office space of $ 48,561 and $ 41,257 for the years ended December 31, 2020 and 2019, respectively, and variable lease cost of $ 7,490 and $ 8,474 for the years ended December 31, 2020 and 2019, respectively.

On July 1, 2018, the Company entered into a new lease agreement for office space at its headquarters at 55 East 52nd St., New York, New York.

Under the terms of the agreement, the Company committed to extend the lease term for the Company's current space and add space on up to seven additional floors, three of which commenced as of the lease’s effective date.

The Company anticipates that it will take possession of the remainder of these floors over the next three years .

On December 6, 2019, the lease was modified to add an additional floor and to extend the lease term for all current and prospective space to end on December 31, 2035.

Occupancy and Equipment Rental on the Consolidated Statements of Operations includes operating lease cost for office space of $ 49,580 , $ 48,561 and $ 41,257 for the years ended December 31, 2021, 2020 and 2019, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses, of $ 6,062 , $ 7,490 and $ 8,474 for the years ended December 31, 2021, 2020 and 2019, respectively.

On June 10, 2021, the Company entered into lease agreements to take on an additional 14 rentable square feet at its 1 Stanhope Gate office in London, U.K.

The approximate additional annual expense under these lease agreements, net of certain lease incentives, is £ 1,081 and the lease term is June 10, 2021 through March 24, 2027.

In conjunction with its lease agreements at 55 East 52nd St., New York, New York, the Company had an option to take on an additional 30 rentable square feet of office space, which it exercised during 2021.

The Company anticipates that it will take possession of this space during 2023.

The expected approximate additional annual expense under this lease agreement, net of certain lease incentives, is $ 2,200 and the lease term will end on December 31, 2035.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amounts of $ 5,616 and $ 5,550 as of December 31, 2021 and 2020, respectively, which are secured by cash that is included in Other Assets on the Consolidated Statements of Financial Condition.

6 unchanged sentences

The Company incurred net operating cash outflows of $ 45,886 , $ 30,709 and $ 20,175 for the years ended December 31, 2021, 2020 and 2019, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 9,216 , $ 14,732 and $ 18,771 for the years ended December 31, 2021, 2020 and 2019, respectively.

Upon adoption of ASC 842 on January 1, 2019, the Company recorded Right-of-Use Assets on its statement of financial condition of $ 180,935 .

Other information as it relates to the Company's operating leases is as follows:

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

For the Years Ended December 31,

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Weighted-average discount rate - operating leases 3.92 % 4.08 %

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

As of December 31, 2021, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

12 unchanged sentences

Note 10 – Investments

The Company's investments reported on the Consolidated Statements of Financial Condition consist of investments in unconsolidated affiliated companies, other investments in private equity partnerships, equity securities in private companies and investments in G5, Glisco Manager Holdings LP and Trilantic.

The Company's investments are relatively high-risk and illiquid assets.

The Company's investments in ABS, Atalanta Sosnoff and Luminis are in voting interest entities.

The Company's share of earnings (losses) on these investments is included within Income from Equity Method Investments on the Consolidated Statements of Operations.

The Company's investments in ABS, Atalanta Sosnoff, Luminis and Seneca Evercore are in voting interest entities.

The Company's share of earnings (losses) from these investments is included within Income from Equity Method Investments on the Consolidated Statements of Operations.

The Company also has investments in private equity partnerships which consist of investment interests in private equity funds which are voting interest entities.

Realized and unrealized gains and losses on the private equity investments are included within Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

Realized and unrealized gains and losses on private equity investments are included within Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

Equity Method Investments

A summary of the Company's investments accounted for under the equity method of accounting as of December 31, 2021 and 2020 was as follows:

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

ABS $ 40,977 $ 41,439

1 unchanged sentence

Luminis 6,158 6,119

Seneca Evercore 507 —

Total $ 58,590 $ 59,508

On December 29, 2011, the Company made an investment accounted for under the equity method of accounting in ABS Investment Management, LLC.

Effective as of September 1, 2018, ABS Investment Management, LLC underwent an internal

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

reorganization pursuant to which the Company contributed its ownership interest in ABS Investment Management, LLC to ABS in exchange for ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC.

Taken together, the ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC are substantially equivalent to the contributed ownership interests in ABS Investment Management, LLC.

At December 31, 2020, the Company's economic ownership interest in ABS was 46 %.

Effective as of September 1, 2018, ABS Investment Management, LLC underwent an internal reorganization pursuant to which the Company contributed its ownership interest in ABS Investment Management, LLC to ABS in exchange for ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC.

Taken together, the ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC were substantially equivalent to the contributed ownership interests in ABS Investment Management, LLC.

At December 31, 2021, the Company's ownership interest in ABS was 46 %.

This investment resulted in earnings of $ 10,524 , $ 10,855 and $ 8,870 for the years ended December 31, 2021, 2020 and 2019, respectively, included within Income from Equity Method Investments on the Consolidated Statements of Operations.

In January 2022, the Company entered into an agreement to sell a portion of its interest in ABS for $ 1,000 per 1 % sold.

This transaction will result in the reduction of the Company's ownership interest from 46 % to a minimum of 26 %.

The amount of interests sold, which is at the discretion of the buyer, will be determined at the closing of the transaction, which is expected to occur in March 2022.

Atalanta Sosnoff

5 unchanged sentences

This investment resulted in earnings of $ 1,334 , $ 1,546 and $ 916 for the years ended December 31, 2021, 2020 and 2019, respectively, included within Income from Equity Method Investments on the Consolidated Statements of Operations.

This investment is subject to currency translation from the Australian dollar to the U.S.

dollar, included in Accumulated Other Comprehensive Income (Loss), on the Consolidated Statements of Financial Condition.

Seneca Evercore

On July 7, 2021, the Company acquired a 20 % interest in Seneca Evercore for $ 500 and maintains proportional representation on the board of directors of Seneca Evercore (but not less than one director) following this transaction.

The Company accounts for its interest under the equity method of accounting.

This investment resulted in earnings of $ 3 for the year ended December 31, 2021, included within Income from Equity Method Investments on the Consolidated Statement of Operations.

This investment is subject to currency translation from the Brazilian real to the U.S.

dollar, included in Accumulated Other Comprehensive Income (Loss), on the Consolidated Statements of Financial Condition.

The Company allocates the purchase price of its equity method investments, in part, to the inherent finite-lived identifiable intangible assets of the investees.

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 316 , $ 316 and $ 684 for the years ended December 31, 2021, 2020 and 2019, respectively.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

The Company assesses its equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.

1 unchanged sentence

On December 31, 2017, the Company exchanged all of its outstanding equity interests in G5 for debentures of G5.

The Company records its investment in G5 as a held-to-maturity debt security within Investments on the Consolidated Statements of Financial Condition.

The securities are mandatorily redeemable on December 31, 2027, or earlier, subject to the occurrence of certain events.

The Company is accreting its investment to its redemption value ratably, or on an accelerated basis if certain revenue thresholds are met by G5, from December 31, 2017 to December 31, 2027.

This investment is subject to currency translation from Brazilian real to the U.S.

The Company previously recorded its investment in G5 as a held-to-maturity debt security within Investments on the Consolidated Statement of Financial Condition.

These securities were mandatorily redeemable on December 31, 2027, or earlier, subject to the occurrence of certain events.

The Company was accreting its investment to its redemption value ratably, or on an accelerated basis if certain revenue thresholds were met by G5, from December 31, 2017 to December 31, 2027.

This investment was subject to currency translation from the Brazilian real to the U.S.

dollar, included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

This investment had a balance of $ 7,385 and $ 9,235 as of December 31, 2020 and 2019, respectively.

This investment had a balance of $ 7,385 as of December 31, 2020.

On June 25, 2021, G5 repaid its outstanding debentures with the Company in full, resulting in a gain of $ 4,374 , included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations for the year ended December 31, 2021.

Investments in Private Equity

9 unchanged sentences

Additionally, the Company reflects its pro rata share of realized gains, losses and carried interest associated with any investment realizations.

During 2019, the Company made an investment of $ 3,015 in Trilantic VI.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

A summary of the Company's investments in the private equity funds as of December 31, 2021 and 2020 was as follows:

5 unchanged sentences

As of December 31, 2021, $ 785 of previously distributed carried interest received from the funds was subject to repayment.

On December 14, 2021, the Company entered into an agreement to sell its interests in Trilantic VI for $ 9,188 (see "Investment in Trilantic Capital Partners" below).

Consideration for this transaction was received in December 2021 and is reflected in Cash and Cash Equivalents and Other Current Liabilities on the Consolidated Statement of Financial Condition at December 31, 2021.

This transaction closed on January 1, 2022 and as of that date, the Company has no further commitments to invest in Trilantic VI.

General Partners of Private Equity Funds which are VIEs

3 unchanged sentences

Further, as a limited partner in these entities, the Company does not possess substantive participating rights.

The Company had assets of $ 3,083 and $ 4,658 included in its Consolidated Statements of Financial Condition at December 31, 2020 and 2019, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company had assets of $ 3,408 and $ 3,083 included in its Consolidated Statements of Financial Condition at December 31, 2021 and 2020,

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company's exposure to the obligations of these VIEs is generally limited to its investments in these entities.

3 unchanged sentences

This investment gave the Company the right to invest in Trilantic's current and future private equity funds, beginning with Trilantic Fund IV.

The Company accounts for this investment at its cost minus impairment, if any, plus or minus changes resulting from observable price changes.

The Company allocates the cost of this investment to its investments in current and future Trilantic funds as the Company satisfies the capital calls of these funds.

The Company bases this allocation on its expectation of Trilantic's future fundraising ability and performance.

During 2020, $ 29 and $ 110 of this investment was allocated to Trilantic Fund V and VI, respectively.

From 2010 to 2019, $ 1,178 , $ 5,135 and $ 3,015 of this investment was allocated to Trilantic Fund IV, V and VI, respectively.

This investment had a balance of $ 6,623 and $ 6,762 as of December 31, 2020 and 2019, respectively.

The Company has a $ 5,000 commitment to invest in Trilantic Fund V, of which $ 372 was unfunded at December 31, 2020.

The Company also has a $ 12,000 commitment to invest in Trilantic Fund VI, of which $ 9,054 was unfunded at December 31, 2020.

The Company accounted for this investment at its cost minus impairment, if any, plus or minus changes resulting from observable price changes.

The Company had a $ 5,000 commitment to invest in Trilantic Fund V, of which $ 336 was unfunded at December 31, 2021.

The Company also had a $ 12,000 commitment to invest in Trilantic Fund VI, of which $ 3,420 was unfunded at December 31, 2021.

During 2021, consistent with the Company's current investment strategy, the Company decided to wind-down its investment relationship with Trilantic.

Accordingly, the Company wrote-off the remaining carrying value of its investment in Trilantic, as well as certain amounts allocated to fund investments exceeding their net asset value.

As a result, the Company recorded an aggregate charge of $ 8,554 within Special Charges, Including Business Realignment Costs, on the Consolidated Statements of Operations for the year ended December 31, 2021.

See above in "Investments in Private Equity" for further information.

Other Investments

5 unchanged sentences

This investment had a balance of $ 221 and $ 387 as of December 31, 2021 and 2020, respectively.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Note 11 – Fair Value Measurements

7 unchanged sentences

Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

The estimated fair values of corporate bonds, municipal bonds and other debt securities held at December 31, 2020 and 2019 are based on prices provided by external pricing services.

Periodically, the Company holds investments in corporate bonds, municipal bonds and other debt securities, the estimated fair values of which are based on prices provided by external pricing services.

Level 3 – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment.

The inputs into the determination of fair value require significant management judgment or estimation.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of December 31, 2021 and 2020:

12 unchanged sentences

Investment Funds 107,354 — — 107,354

Financial Instruments Owned and Pledged as Collateral at Fair Value 12,431 — — 12,431

Total Assets Measured At Fair Value $ 1,067,836 $ — $ — $ 1,067,836

(1) Includes $ 7,000 and $ 2,990 of treasury bills and notes and municipal bonds classified within Cash and Cash Equivalents on the Consolidated Statements of Financial Condition as of December 31, 2020 and 2019, respectively.

(1) Includes $ 3,000 and $ 7,000 of treasury bills and notes classified within Cash and Cash Equivalents on the Consolidated Statement of Financial Condition as of December 31, 2021 and 2020, respectively.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

1 unchanged sentence

The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

During the fourth quarter of 2019, the Company determined that the fair value of the Institutional Asset Management reporting unit was $ 8,777 .

The fair value of the reporting unit was estimated by utilizing a discounted cash flow methodology based on adjusted cash flows from operations.

Goodwill is measured at fair value on a non-recurring basis as a Level 3 asset.

See Note 5 for further information.

The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities, which are not measured at fair value on the Consolidated Statements of Financial Condition, are listed in the tables below.

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

December 31, 2021

3 unchanged sentences

Cash and Cash Equivalents $ 575,317 $ 575,317 $ — $ — $ 575,317

Debt Security Investment 7,385 — — 7,385 7,385

Certificates of Deposit 141,218 — 141,218 — 141,218

Receivables (1)

8 unchanged sentences

Notes Payable 376,243 — 390,288 — 390,288

376,492 — 409,682 — 409,682

December 31, 2020

3 unchanged sentences

Cash and Cash Equivalents $ 822,598 $ 822,598 $ — $ — $ 822,598

Certificates of Deposit 214,796 — 214,796 — 214,796

Debt Security Investment 7,385 — — 7,385 7,385

Securities Purchased Under Agreements to Resell 13,566 — 13,566 — 13,566

Receivables (1)

6 unchanged sentences

Accounts Payable and Accrued Expenses $ 37,961 $ — $ 37,961 $ — $ 37,961

Securities Sold Under Agreements to Repurchase 26,000 — 26,000 — 26,000

Payable to Employees and Related Parties 24,047 — 24,047 — 24,047

Notes Payable (3)

376,492 — 409,682 — 409,682

(1) Includes Accounts Receivable, as well as long-term receivables, which are included in Other Assets on the Consolidated Statements of Financial Condition.

1 unchanged sentence

(3) Includes current and long-term Notes Payable included in Current Portion of Notes Payable and Notes Payable on the Consolidated Statements of Financial Condition.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Note 12 – Furniture, Equipment and Leasehold Improvements

6 unchanged sentences

Furniture, Equipment and Leasehold Improvements, Net $ 148,589 $ 148,832

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Depreciation and amortization expense for Furniture, Equipment and Leasehold Improvements totaled $ 27,737 , $ 24,640 and $ 22,946 for the years ended December 31, 2021, 2020 and 2019, respectively.

3 unchanged sentences

See Notes 5 and 6 for further information.

Other Assets on the Consolidated Statements of Financial Condition includes capitalized costs associated with cloud computing arrangements of $ 7,033 as of December 31, 2020.

Other Assets on the Consolidated Statements of Financial Condition includes capitalized costs associated with cloud computing arrangements of $ 9,419 and $ 7,033 as of December 31, 2021 and 2020, respectively.

Amortization expense, included within Communications and Information Services on the Consolidated Statement of Operations, for capitalized costs associated with cloud computing arrangements totaled $ 1,245 for the year ended December 31, 2021.

Note 13 – Notes Payable

2016 Private Placement Notes

On March 30, 2016, the Company issued an aggregate of $ 170,000 of senior notes, including:

$ 38,000 aggregate principal amount of its 4.88 % Series A senior notes due 2021 (the "Series A Notes"), $ 67,000 aggregate principal amount of its 5.23 % Series B senior notes due 2023 (the "Series B Notes"), $ 48,000 aggregate principal amount of its 5.48 % Series C senior notes due 2026 (the "Series C Notes") and $ 17,000 aggregate principal amount of its 5.58 % Series D senior notes due 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "2016 Private Placement Notes"), pursuant to a note purchase agreement (the "2016 Note Purchase Agreement") dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

$ 38,000 aggregate principal amount of its 4.88 % Series A senior notes which were due March 30, 2021 (the "Series A Notes"), $ 67,000 aggregate principal amount of its 5.23 % Series B senior notes due March 30, 2023 (the "Series B Notes"), $ 48,000 aggregate principal amount of its 5.48 % Series C senior notes due March 30, 2026 (the "Series C Notes") and $ 17,000 aggregate principal amount of its 5.58 % Series D senior notes due March 30, 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "2016 Private Placement Notes"), pursuant to a note purchase agreement (the "2016 Note Purchase Agreement") dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

In March 2021, the Company repaid the $ 38,000 aggregate principal amount of its Series A Notes.

Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

2 unchanged sentences

As of December 31, 2021, the Company was in compliance with all of these covenants.

2019 Private Placement Notes

On August 1, 2019, the Company issued $ 175,000 and £ 25,000 of senior unsecured notes through private placement.

1 unchanged sentence

These notes include:

$ 75,000 aggregate principal amount of its 4.34 % Series E senior notes due 2029 (the "Series E Notes"), $ 60,000 aggregate principal amount of its 4.44 % Series F senior notes due 2031 (the "Series F Notes"), $ 40,000 aggregate principal amount of its 4.54 % Series G senior notes due 2033 (the "Series G Notes") and £ 25,000 aggregate principal amount of its 3.33 % Series H senior notes due 2033 (the "Series H Notes" and together with the Series E Notes, the Series F Notes and the Series G Notes, the "2019 Private Placement Notes"), each of which were issued pursuant to a note purchase agreement dated as of August 1, 2019 (the "2019 Note Purchase Agreement"), among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

$ 75,000 aggregate principal amount of its 4.34 % Series E senior notes due August 1, 2029 (the "Series E Notes"), $ 60,000 aggregate principal amount of its 4.44 % Series F senior notes due August 1, 2031 (the "Series F Notes"), $ 40,000 aggregate principal amount of its 4.54 % Series G senior notes due August 1, 2033 (the "Series G Notes") and £ 25,000 aggregate principal amount of its 3.33 % Series H senior notes due August 1, 2033 (the "Series H Notes" and together with the Series E Notes, the Series F Notes and the Series G Notes, the "2019 Private Placement Notes"), each of which were issued pursuant to a note purchase agreement dated as of August 1, 2019 (the "2019 Note Purchase Agreement"), among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

EVERCORE INC.

5 unchanged sentences

As of December 31, 2021, the Company was in compliance with all of these covenants.

2021 Private Placement Notes

On March 29, 2021, the Company issued an aggregate of $ 38,000 of senior notes, comprised of $ 38,000 aggregate principal amount of its 1.97 % Series I senior notes due August 1, 2025 (the "Series I Notes" or the "2021 Private Placement Notes"), pursuant to a note purchase agreement (the "2021 Note Purchase Agreement") dated as of March 29, 2021, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

Interest on the 2021 Private Placement Notes is payable semi-annually and the 2021 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

The Company may, at its option, prepay all, or from time to time any part of, the 2021 Private Placement Notes, in an amount not less than 5 % of the aggregate principal amount of the 2021 Private Placement Notes then outstanding at 100 % of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2021 Private Placement Notes will have the right to require the Company to prepay the entire unpaid principal amounts held by each holder of the 2021 Private Placement Notes plus accrued and unpaid interest to the prepayment date.

The 2021 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default.

As of December 31, 2021, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of December 31, 2021 and 2020:

25 unchanged sentences

8/1/2033 3.42 % 33,564 33,906

Evercore Inc.

1.97 % Series I Senior Notes

8/1/2025 2.20 % 37,704 —

Total $ 376,243 $ 376,492

3 unchanged sentences

As of December 31, 2021, the future payments required on the Notes Payable, including principal and interest, were as follows:

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

2022 $ 16,693

9 unchanged sentences

The Company, at its sole discretion, determines the amount, if any, of profit to be contributed to the Evercore Plan.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Effective January 1, 2020, the Evercore Plan was amended to provide for a matching contribution from the Company to be made for eligible participants, as defined by the Evercore Plan.

3 unchanged sentences

Participants will vest 100 % in the matching contribution from the Company upon completion of three years of service.

The Company made no contributions to the Evercore Plan for each of the years ended December 31, 2020, 2019 and 2018.

The Company made contributions to the Evercore Plan of $ 2,032 for the year ended December 31, 2021 and no contributions for each of the years ended December 31, 2020 and 2019, respectively.

Evercore Europe Defined Contribution Benefit Plan – Evercore U.K.

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Personal Pension Plan of $ 74 , $ 86 and $ 124 for the years ended December 31, 2021, 2020 and 2019, respectively.

Contributions to the various plans are recorded in Employee Compensation and Benefits on the Consolidated Statements of Operations and accrued in Accrued Compensation and Benefits on the Consolidated Statements of Financial Condition.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

In addition, the Company self-funds certain medical benefits and offers separation and transition and certain other benefits.

See Note 18 for further information.

Note 15 – Evercore Inc.

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During the year ended December 31, 2020, the Company declared and paid dividends of $ 2.35 per share, totaling $ 95,226 , and accrued deferred cash dividends on unvested RSUs, totaling $ 13,734 .

During the year ended December 31, 2019, the Company also paid deferred cash dividends of $ 7,396 .

Treasury Stock – During the year ended December 31, 2020, the Company purchased 1,068 Class A Shares from employees at market values ranging from $ 38.23 to $ 104.38 per share (at an average cost per share of $ 76.51 ), primarily for the net settlement of stock-based compensation awards, and 854 Class A Shares at market values ranging from $ 58.28 to $ 81.96 per share (at an average cost per share of $ 75.93 ) pursuant to the Company's share repurchase program.

During the year end ed December 31, 2020, the Company also paid deferred cash dividends of $ 11,356 .

Treasury Stock – During the year ended December 31, 2021, the Company purchased 995 Class A Shares from employees at an average cost per share of $ 118.62 , primarily for the net settlement of stock-based compensation awards, and 4,461 Class A Shares at an average cost per share of $ 135.11 pursuant to the Company's share repurchase program.

The aggregate 5,456 Class A Shares were purchased at an average cost per share of $ 132.10 , and the result of these purchases was an increase in Treasury Stock of $ 720,725 on the Company's Consolidated Statement of Financial Condition as of December 31, 2021.

During the year ended December 31, 2019, the Company purchased 1,039 Class A Shares primarily from employees at market values ranging from $ 71.11 to $ 96.22 per share (at an average cost per share of $ 89.15 ), primarily for the net settlement of stock-based compensation awards, and 2,360 Class A Shares at market values ranging from $ 73.18 to $ 92.33 per share (at an average cost per share of $ 80.69 ) pursuant to the Company's share repurchase program.

The aggregate 3,399 Class A Shares were purchased

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

at an average cost per share of $ 83.28 and the result of these purchases was an increase in Treasury Stock of $ 283,081 on the Company's Consolidated Statement of Financial Condition as of December 31, 2019.

During the year ended December 31, 2020, the Company purchased 1,068 Class A Shares from employees at an average cost per share of $ 76.51 , primarily for the net settlement of stock-based compensation awards, and 854 Class A Shares at an average cost per share of $ 75.93 pursuant to the Company's share repurchase program.

The aggregate 1,922 Class A Shares were purchased at an average cost per share of $ 76.25 , and the result of these purchases was an increase in Treasury Stock of $ 146,559 on the Company's Consolidated Statement of Financial Condition as of December 31, 2020.

LP Units – During the year ended December 31, 2021, 242 LP Units were exchanged for Class A Shares, resulting in an increase to Common Stock and Additional Paid-In-Capital of $ 2 and $ 12,304 , respectively, on the Company's Consolidated Statement of Financial Condition as of December 31, 2021.

During the year ended December 31, 2020, 899 LP Units were exchanged for Class A Shares, resulting in an increase to Common Stock and Additional Paid-In-Capital of $ 9 and $ 37,674 , respectively, on the Company's Consolidated Statement of Financial Condition as of December 31, 2020.

See Note 22 for further discussion.

See Note 21 for further information.

Accumulated Other Comprehensive Income (Loss) – As of December 31, 2021, Accumulated Other Comprehensive Income (Loss) on the Company's Consolidated Statement of Financial Condition includes an accumulated Unrealized Gain (Loss) on Securities and Investments, net, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($ 5,541 ) and ($ 6,545 ), respectively.

The substantially complete liquidation of the Company's businesses in Mexico resulted in the reclassification of $ 20,337 of cumulative foreign currency translation losses from Accumulated Other Comprehensive Income (Loss) on the Consolidated Statement of Financial Condition to Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

The substantially complete liquidation of the Company's businesses in Mexico in 2020 resulted in the reclassification of $ 20,337 of cumulative foreign currency translation losses from Accumulated Other Comprehensive Income (Loss) on the Consolidated Statement of Financial Condition to Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

See Note 5 for further information.

The application of ASU 2016-01 resulted in the reclassification of $ 2,229 of cumulative unrealized losses, net of tax, on Investment Securities in Accumulated Other Comprehensive Income (Loss) to Retained Earnings on the Consolidated Statement of Financial Condition as of January 1, 2018.

Note 16 – Noncontrolling Interest

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Evercore LP 11 % 11 % 12 %

Evercore Wealth Management ("EWM") (1)

26 % 26 % 30 %

Private Capital Advisory L.P.

Real Estate Capital Advisory ("RECA") (3)

— % 38 % 38 %

(1) Noncontrolling Interests represent a blended rate for multiple classes of interests in EWM.

(2) Noncontrolling Interests represent the Common Interests of Private Capital Advisory L.P.

(2) Noncontrolling Interests represent the Class R Interests of Private Capital Advisory L.P.

The Noncontrolling Interests for Evercore LP, EWM and RECA have rights, in certain circumstances, to convert into Class A Shares.

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

The Noncontrolling Interests for Evercore LP, EWM and RECA have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the years ended December 31, 2021, 2020 and 2019 were as follows:

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Ending balance $ 314,910 $ 258,428 $ 256,534

Other Comprehensive Income – Other Comprehensive Income (Loss) attributed to Noncontrolling Interest includes Unrealized Gain (Loss) on Securities and Investments, net, of ($ 223 ), ($ 82 ) and ($ 43 ) for the years ended December 31, 2020, 2019 and 2018, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of $ 561 , $ 595 and ($ 160 ) for the years ended December 31, 2020, 2019 and 2018, respectively.

The substantially complete liquidation of the Company's businesses in Mexico resulted in the reclassification of $ 7,028 of cumulative foreign currency translation losses from Noncontrolling Interest on the Consolidated Statement of Financial Condition to Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($ 49 ), ($ 223 ) and ($ 82 ) for the years ended December 31, 2021, 2020 and 2019, respectively, and foreign currency translation adjustment gains (losses), net, of ($ 398 ), $ 561 and $ 595 for the years ended December 31, 2021, 2020 and 2019, respectively.

The substantially complete liquidation of the Company's businesses in Mexico in 2020 resulted in the reclassification of $ 7,028 of cumulative foreign currency translation losses from Noncontrolling Interest on the Consolidated Statement of Financial Condition to Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

See Note 5 for further information.

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This resulted in a decrease to Noncontrolling Interest of $ 12,306 and an increase to Additional-Paid-In-Capital of $ 12,304 on the Company's Consolidated Statement of Financial Condition as of December 31, 2021.

In addition, 899 and 353 LP Units were exchanged for Class A Shares during the years ended December 31, 2020 and 2019, respectively.

See Note 15 for further information.

Interests Issued – During 2019, 32 Class A LP Units were issued, primarily related to the purchase of EWM Class A Units.

See Interests Purchased below for further information.

During 2018, in conjunction with the establishment of the RECA business, certain employees of that business purchased Class R Interests, at fair value, in Private Capital Advisory L.P., resulting in an increase to Noncontrolling Interest of $ 770 on the Company's Consolidated Statement of Financial Condition as of December 31, 2018.

Interests Purchased – During 2020, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 1,703 (which was paid in cash of $ 852 during the year ended December 31, 2020 and through the issuance of notes payable of $ 851 , included within Other Current Liabilities on the Consolidated Statement of Financial Condition as of December 31, 2020).

On February 24, 2022, the Company entered into an agreement (the "Exchange Agreement") with ISI Holding, Inc.

("ISI Holding"), the principal stockholder of which is Ed Hyman, an executive officer of the Company.

Pursuant to the Exchange Agreement, ISI Holding has agreed to exercise its existing conversion rights under the terms of the partnership agreement of Evercore LP to exchange (the "Exchange") all 2,545 of the Class E LP Units owned by it for 2,545 Class A Shares.

Following the Exchange, ISI Holding will liquidate and distribute the Class A Shares received in the Exchange to its stockholders in accordance with their ownership interests in ISI Holding.

The parties have relied on the exemption from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) thereof for the Exchange.

The Exchange will result in a decrease in noncontrolling interest of Evercore LP from 11 % to approximately 5 %.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Interests Issued – During 2021, certain employees of EWM purchased EWM Class A Units, at fair value, resulting in an increase to Noncontrolling Interest of $ 1,175 on the Company's Consolidated Statement of Financial Condition as of December 31, 2021.

During 2021, certain employees of RECA purchased Class R Interests of Private Capital Advisory L.P., at fair value, resulting in an increase to Noncontrolling Interest of $ 872 on the Company's Consolidated Statement of Financial Condition as of December 31, 2021.

During 2019, 32 Class A LP Units were issued, primarily related to the purchase of EWM Class A Units.

Interests Purchased – During 2021, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 3,170 .

This purchase resulted in a decrease to Noncontrolling Interest of $ 344 and a decrease to Additional Paid-In-Capital of $ 2,826 on the Company's Consolidated Statement of Financial Condition as of December 31, 2021.

On December 31, 2021, the Company purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business for $ 54,297 .

The Company’s consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash payable in early 2022, included within Payable to Employees and Related Parties on the Company's Consolidated Statement of Financial Condition as of December 31, 2021, and contingent cash consideration which will be settled in early 2024.

The contingent consideration has a fair value of $ 20,587 as of December 31, 2021 and is included within Other Long-term Liabilities on the Company's Consolidated Statement of Financial Condition.

The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business meeting the revenue performance targets.

The amount of contingent consideration to be paid is dependent on the business achieving certain revenue performance targets.

This purchase resulted in a decrease to Noncontrolling Interest of $ 7,137 and a decrease to Additional Paid-In-Capital of $ 47,160 on the Company’s Consolidated Statement of Financial Condition on December 31, 2021.

In conjunction with this transaction, the Company will also issue two separate payments in early 2023 and 2024, contingent on continued employment with the Company, and accordingly, will be treated as compensation expense for accounting purposes in the periods earned.

These payments will also be dependent on the business achieving certain revenue performance targets.

During 2020, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 1,703 (which was paid in cash of $ 851 and $ 852 during the years ended December 31, 2021 and 2020, respectively).

This purchase resulted in a decrease to Noncontrolling Interest of $ 138 and a decrease to Additional Paid-In-Capital of $ 1,565 on the Company's Consolidated Statement of Financial Condition as of December 31, 2020.

On May 31, 2019, the Company purchased, at fair value, the remaining 10 % of the Private Capital Advisory L.P.

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This purchase resulted in a decrease to Noncontrolling Interest of $ 6,674 and a decrease to Additional Paid-In-Capital of $ 21,708 , on the Company's Consolidated Statement of Financial Condition as of December 31, 2019.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

On May 31, 2019, the Company also purchased, at fair value, an additional 17 % of the EWM Class A Units for $ 24,533 (in cash of $ 21,832 and the issuance of 31 Class A LP Units having a fair value of $ 2,701 ).

This purchase resulted in a net decrease to Noncontrolling Interest of $ 4,759 and a decrease to Additional Paid-In-Capital of $ 19,774 , on the Company's Consolidated Statement of Financial Condition as of December 31, 2019.

On March 29, 2018, the Company purchased, at fair value, an additional 15 % of the Private Capital Advisory L.P.

Common Interests for $ 25,525 .

This purchase resulted in a decrease to Noncontrolling Interest of $ 298 and a decrease to Additional Paid-In-Capital of $ 25,227 on the Company's Consolidated Statement of Financial Condition as of December 31, 2018.

In addition, LP Units were exchanged for Class A Shares during the years ended December 31, 2020, 2019 and 2018.

See Note 16 for further information.

Note 17 – Net Income Per Share Attributable to Evercore Inc.

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common shareholders for the years ended December 31, 2021, 2020 and 2019 are described and presented below.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

For the Years Ended December 31,

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(a) The Company previously had outstanding Class J LP Units, which converted into Class E LP Units and ultimately became exchangeable into Class A Shares on a one -for-one basis.

As of December 31, 2020, no Class J LP Units remained issued or outstanding.

As of December 31, 2021 and 2020, no Class J LP Units remained issued or outstanding.

See Note 18 for further information.

During the years ended December 31, 2020, 2019 and 2018, the Class J LP Units were dilutive and consequently the effect of their exchange into Class A Shares has been included in the

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

calculation of diluted net income per share attributable to Evercore Inc.

During the years ended December 31, 2020 and 2019, the Class J LP Units were dilutive and consequently the effect of their exchange into Class A Shares has been included in the calculation of diluted net income per share attributable to Evercore Inc.

common shareholders under the if-converted method.

In computing this adjustment, the Company assumes that all Class J LP Units are converted into Class A Shares.

(b) The Company has outstanding Class A and E LP Units, which give the holders the right to receive Class A Shares upon exchange on a one -for-one basis.

During the years ended December 31, 2020, 2019 and 2018, the Class A and E LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc.

(b) The Company has outstanding Class A, E and K LP Units, which give the holders the right to receive Class A Shares upon exchange on a one -for-one basis.

During the years ended December 31, 2021, 2020 and 2019, the Class A, E and K LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc.

common shareholders.

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The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $ 92,797 , $ 45,578 and $ 39,940 for the years ended December 31, 2021, 2020 and 2019, respectively.

In computing this adjustment, the Company assumes that all vested Class A LP Units and all Class E LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc.

In computing this adjustment, the Company assumes that all Class A, E and K LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc.

and that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S.

at prevailing corporate tax rates.

The Company does not anticipate that the Class A and E LP Units will result in a dilutive computation in future periods.

The Company does not anticipate that the Class A, E and K LP Units will result in a dilutive computation in future periods.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

(c) The Company has outstanding Class I-P Units which are contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and outstanding Class K-P Units which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved.

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The units that were assumed to be converted to an equal number of Class A Shares for purposes of computing diluted net income per share attributable to Evercore Inc.

common shareholders were 420 for the year ended December 31, 2020 and 400 for each of the years ended December 31, 2019 and 2018.

common shareholders were 499 , 420 and 400 for the years ended December 31, 2021, 2020 and 2019, respectively.

The shares of Class B common stock have no right to receive dividends or a distribution on liquidation or winding up of the Company.

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Equities business – In conjunction with the acquisition of the operating businesses of ISI in 2014, the Company issued Evercore LP units and interests which have been treated as compensation.

In July 2017, the Company exchanged all of the previously outstanding 4,148 Class H limited partnership interests of Evercore LP ("Class H LP Interests") for 1,012 vested ( 963 of which were subject to certain liquidated damages and continued employment provisions) and 938 unvested Class J LP Units.

In July 2017, the Company exchanged all of the previously outstanding 4,148 Class H limited partnership interests of Evercore LP for 1,012 vested ( 963 of which were subject to certain liquidated damages and continued employment provisions) and 938 unvested Class J LP Units.

These units converted into an equal amount of Class E LP Units, and became exchangeable into Class A Shares of the Company, ratably, on February 15, 2018, 2019 and 2020.

These Class J LP Units had the same vesting and delivery schedule, acceleration and forfeiture triggers, and distribution rights as the Class H LP Interests.

In connection with this exchange, one share of Class B common stock has been issued to each holder of Class J LP Units, which entitles each holder to one vote on all matters submitted generally to holders of Class A and Class B common stock for each Class E LP Unit and Class J LP Unit held.

As the number of Class J LP Units exchanged was within the number of Class H LP Interests that the Company determined were probable of being exchanged on the date of modification, the Company expensed the previously unrecognized grant date fair value of the Class H LP Interests ratably over the remaining vesting period of the Class J LP Units.

Compensation expense related to the Class J LP Units was $ 1,067 and $ 18,101 for the years ended December 31, 2020 and 2019, respectively.

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Following the conversion, no Class J LP Units remain issued and outstanding.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

The following table summarizes activity related to the LP Units for the Company's equities business during the year ended December 31, 2020:

Class J LP Units

Number of Units Grant Date Weighted

Average Fair Value

Unvested Balance at January 1, 2020 223 $ 4,311

Forfeited — —

Vested ( 223 ) ( 4,311 )

Unvested Balance at December 31, 2020 — $ —

Othe r Performance-based Awards – In November 2016, the Company issued 400 Class I-P Units in conjunction with the appointment of a current Co-Chief Executive Officer (then Executive Chairman).

Class I-P Units – In November 2016, the Company issued 400 Class I-P Units in conjunction with the appointment of the Co-Chief Executive Officer (then Executive Chairman).

These Class I-P Units convert into a specified number of Class I LP Units, which are exchangeable on a one -for-one basis to Class A Shares, contingent on the achievement of certain market and service conditions, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following January 15, 2022, subject to a one year prior written notice requirement) or a change in control.

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As the award contains market-based conditions, the entire expense will be recognized if the award does not vest for any reason other than the service conditions.

Compensation expense related to this award was $ 4,632 for the year ended December 31, 2020 and $ 4,619 for each of the years ended December 31, 2019 and 2018.

In November 2017, the Company issued 64 Class K-P Units to an employee of the Company.

These Class K-P Units convert into a specified number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares), contingent upon the achievement of certain defined benchmark results and continued service through December 31, 2021.

Compensation expense related to this award was $ 4,625 , $ 4,632 and $ 4,619 for the years ended December 31, 2021, 2020 and 2019, respectively .

Class K-P Units – In November 2017, the Company issued 64 Class K-P Units to an employee of the Company.

These Class K-P Units converted into 80 Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares), upon the achievement of certain defined benchmark results relating to the employee's business and continued service through December 31, 2021.

In June 2019, the Company issued 220 Class K-P Units to an employee of the Company.

These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares), contingent and based upon the achievement of certain defined benchmark results and continued service through February 4, 2023 for the first tranche, which consists of 120 Class K-P Units convertible into a number of Class K LP Units, and February 4, 2028 for the second tranche, which consists of 100 Class K-P Units convertible into a number of Class K LP Units.

These Class K-P Units may convert into a maximum of 460 Class K LP Units, contingent upon the achievement of certain defined benchmarks and continued service, as described above.

The Company determined the grant date fair value of these awards probable to vest as of December 31, 2020 to be $ 34,684 , related to 403 Class K Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Compensation expense related to the Class K-P Units was $ 8,920 , $ 3,690 and $ 1,200 for the years ended December 31, 2020, 2019 and 2018, respectively.

As of December 31, 2020, the total compensation cost not yet recognized related to the Class I-P Units and Class K-P Units, including awards which are subject to performance conditions, was $ 21,112 .

These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares), contingent and based upon the achievement of certain defined benchmark results relating to the employee's business and continued service through February 4, 2023 for the first tranche, which consists of 120 Class K-P Units, and February 4, 2028 for the second tranche, which consists of 100 Class K-P Units.

In December 2021, the Company issued 400 Class K-P Units to certain employees of the Company.

As this award contains market, performance and service conditions, the expense for this award will reflect

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance and service conditions.

These Class K-P Units in the aggregate may convert into a maximum of 1,180 Class K LP Units, contingent upon the achievement of certain defined benchmarks and continued service, as described above.

The Company determined the grant date fair value of these awards probable to vest as of December 31, 2021 to be $ 98,525 , related to 926 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Aggregate compensation expense related to the Class K-P Units was $ 8,564 , $ 8,920 and $ 3,690 for the years ended December 31, 2021, 2020 and 2019, respectively.

As of December 31, 2021, the total compensation cost not yet recognized related to the Class I-P Units and Class K-P Units, including awards which are subject to performance conditions, based on the current probability of the benchmarks being achieved, was $ 82,958 .

The weighted-average period over which this compensation cost is expected to be recognized is 36 months.

Class L Interests – In April 2021, the Company's Board of Directors approved the issuance of Class L Interests in Evercore LP ("Class L Interests") to certain of the named executive officers of the Company, pursuant to which the named executive officers may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2022.

Distributions pursuant to these interests are anticipated to be made in lieu of any cash incentive compensation payments which may otherwise have been made to the named executive officers of the Company in respect of their service for 2021.

The Company records expense related to these interests as part of its accrual for incentive compensation within Employee Compensation and Benefits on the Consolidated Statements of Operations.

In January 2022, the Company issued Class L Interests to certain of the named executive officers of the Company, pursuant to which the named executive officers may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2023.

Stock Incentive Plan

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During 2020, the Company's stockholders approved the Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan (the "Amended 2016 Plan"), which amended the 2016 Plan.

The Amended 2016 Plan, among other things, authorizes an

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

additional 6,000 shares of the Company's Class A Shares.

Stock Incentive Plan (the "Amended 2016 Plan"), which amended the prior Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan.

The Amended 2016 Plan, among other things, authorizes an additional 6,000 shares of the Company's Class A Shares.

The Amended 2016 Plan permits the Company to grant to certain employees, directors and consultants incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs and other awards based on the Company's Class A Shares.

The Company intends to use newly-issued Class A Shares to satisfy any awards under the Amended 2016 Plan and its predecessor plan.

Class A Shares underlying any award granted under the 2016 Plan that expire, terminate or are canceled or satisfied for any reason without being settled in stock again become available for awards under the plans.

Class A Shares underlying any award granted under the Amended 2016 Plan that expire, terminate or are canceled or satisfied for any reason without being settled in stock again become available for awards under the plan.

The total shares available to be granted in the future under the Amended 2016 Plan was 4,072 as of December 31, 2021.

The Company also grants, at its discretion, dividend equivalents, in the form of unvested RSU awards, or deferred cash dividends, concurrently with the payment of dividends to the holders of Class A Shares, on all unvested RSU grants awarded in conjunction with annual bonuses, as well as new hire awards.

The dividend equivalents have the same vesting and delivery terms as the underlying RSU award.

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The Company had 119 RSUs which were fully vested but not delivered as of December 31, 2021.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Equity Grants

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During 2021, 2,287 Service-based Awards vested and 184 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 192,070 f or the year ended December 31, 2020.

Compensation expense related to Service-based Awards was $ 211,298 for the year ended December 31, 2021.

The following table summarizes activity related to Service-based Awards during the year ended December 31, 2021:

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The Company periodically assesses the forfeiture rates used for such estimates.

A change in estimated forfeiture rates would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described herein.

The weighted-average period over which this compensation cost is expected to be recognized is 22 months.

2020 Equity Grants.

During 2019, pursuant to the 2016 Plan, the Company granted employees 2,598 RSUs that are Service-based Awards.

During 2020, pursuant to the above Stock Incentive Plans, the Company granted employees 1,946 RSUs that are Service-based Awards.

Service-based Awards granted during 2020 had grant date fair values of $ 44.21 to $ 93.19 per share, with an average value of $ 80.94 per share, for an aggregate fair value of $ 157,508 .

During 2020, 2,715 Service-based Awards vested and 121 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 208,786 for the year ended December 31, 2019.

Compensation expense related to Service-based Awards was $ 192,070 f or the year ended December 31, 2020.

2019 Equity Grants.

During 2018, pursuant to the 2016 Plan, the Company granted employees 1,968 RSUs that are Service-based Awards.

During 2019, pursuant to the above Stock Incentive Plans, the Company granted employees 2,598 RSUs that are Service-based Awards.

Service-based Awards granted during 2019 had grant date fair values of $ 72.11 to $ 96.22 per share, with an average value of $ 91.04 per share, for an aggregate fair value of $ 236,529 .

During 2018, 2,523 Service-based Awards

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

vested and 70 Service-based Awards were forfeited.

During 2019, 2,473 Service-based Awards vested and 121 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 208,786 for the year ended December 31, 2019.

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The weighted-average period over which this compensation cost is expected to be recognized is 21 months.

Amounts due pursuant to this program are expensed over the service period of the award and are reflected in Accrued Compensation and Benefits, a component of current liabilities, on the Consolidated Statement of Financial Condition as of December 31, 2020.

Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of a current Co-Chief Executive Officer (then Executive Chairman) with a target payment amount of $ 35,000 , of which $ 11,000 vested on March 1, 2019, $ 6,000 vested on March 1, 2020, and $ 6,000 is scheduled to vest on each of the next three anniversaries of March 1, 2020, provided that the current Co-Chief Executive Officer continues to remain employed through each such vesting date, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following May 1, 2019, subject to a six month prior written notice requirement) or a change in control.

Amounts due pursuant to this program are expensed over the service period of the award and are reflected in Accrued Compensation and Benefits on the Consolidated Statement of Financial Condition as of December 31, 2021.

Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of the Co-Chief Executive Officer (then Executive Chairman) with a target payment amount of $ 35,000 , of which $ 11,000 vested on March 1, 2019, $ 6,000 vested on each of March 1, 2020 and 2021, and $ 6,000 is scheduled to vest on each of the next two anniversaries of March 1, 2021, provided that the Co-Chief Executive Officer continues to remain employed

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(amounts in thousands, except per share amounts, unless otherwise noted)

through each such vesting date, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following May 1, 2019, subject to a six month prior written notice requirement) or a change in control.

The Company had the discretion to increase (by an amount up to $ 35,000 ) or decrease (by an amount up to $ 8,750 ) the total amount payable under this award.

2 unchanged sentences

The Company recognizes expense for these awards ratably over the vesting period.

In addition, the Company periodically grants other deferred cash awards to certain employees.

The Company recognizes expense for these awards ratably over the vesting period.

Compensation expense related to other deferred cash awards was $ 10,595 , $ 12,897 and $ 26,827 for the years ended December 31, 2021, 2020 and 2019, respectively.

7 unchanged sentences

Long-term Incentive Plan

The Company's Long-term Incentive Plan provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over four-year performance periods beginning January 1, 2013 (the "2013 Long-term Incentive Plan") and January 1, 2017 (the "2017 Long-term Incentive Plan").

The 2013 Long-term Incentive Plan was paid in cash installments in 2017, 2018 and 2019.

The 2017 Long-term Incentive Plan, which aggregate $ 48,631 of current liabilities and $ 70,560 of long-term liabilities on the Consolidated Statement of Financial Condition as of December 31, 2020, is due to be paid, in cash or Class A Shares, at the Company's discretion, in three equal installments in the first quarter of 2021, 2022 and 2023, subject to employment at the time of payment.

The Company's Long-term Incentive Plan provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (the "2017 Long-term Incentive Plan") and January 1, 2021 (the "2021 Long-term Incentive Plan", which was approved by the Company's Board of Directors in April 2021 and modified in July 2021).

Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 3,940 of current liabilities and $ 76,376 of long-term liabilities on the Consolidated Statement of Financial Condition as of December 31, 2021, are due to be paid, in cash or Class A Shares, at the Company's discretion, in the first quarter of 2022 and 2023 (for the 2017 Long-term Incentive Plan), and in the first quarter of 2025, 2026 and 2027 (for the 2021 Long-term Incentive Plan), subject to employment at the time of payment.

The performance period for the 2017 Long-term Incentive Plan ended on December 31, 2020.

These awards are subject to retirement eligibility requirements after the performance criteria has been achieved.

In conjunction with this plan, the Company distributed cash payments of $ 92,938 in the year ended December 31, 2021, including the first cash distribution made in March 2021 of $ 48,461 , and an additional cash distribution made in December 2021 of $ 44,477 related to the acceleration of certain amounts due in the first quarter of 2022.

Awards issued under the 2017 Long-term Incentive Plan are subject to retirement eligibility requirements after the performance criteria has been achieved.

The Company periodically assesses the probability of the benchmarks being achieved and expenses the probable payout over the requisite service period of the award.

The Company recorded $ 21,808 , $ 31,931 and $ 42,745 of expense for the years ended December 31, 2020, 2019 and 2018,

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

respectively.

The Company distributed cash payments of $ 19,516 and $ 4,532 during the years ended December 31, 2019 and 2018, respectively, related to the 2013 Long-term Incentive Plan.

The Company recorded $ 54,066 , $ 21,808 and $ 31,931 of compensation expense for the years ended December 31, 2021, 2020 and 2019, respectively.

As of December 31, 2021, the total remaining expense to be recognized for the 2017 Long-term Incentive Plan over the future vesting period ending March 15, 2023 is $ 8,232 .

As of December 31, 2021, the total remaining expense to be recognized for the 2021 Long-term Incentive Plan over the future vesting period ending March 15, 2027, based on the current anticipated probable payout for the plan, is $ 222,792 .

Employee Loans Receivable

Periodically, the Company provides new and existing employees with cash payments in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements ranging from one to five years and in certain circumstances, subject to the achievement of performance requirements.

Generally, the terms of these awards include a requirement of either full or partial repayment of these awards based on the terms of their employment agreements with the Company.

Generally, these awards, based on the terms, include a requirement of either full or partial repayment by the employee if the service or other requirements of the agreements with the Company are not achieved.

In circumstances where the employee meets the Company's minimum credit standards, the Company amortizes these awards to compensation expense over the relevant service period, which is generally the period they are subject to forfeiture.

Compensation expense related to these awards was $ 20,411 , $ 20,421 and $ 17,971 for the years ended December 31, 2020, 2019 and 2018, respectively.

Compensation expense related to these awards was $ 23,136 , $ 20,411 and $ 20,421 for the years ended

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

December 31, 2021, 2020 and 2019, respectively.

The remaining unamortized amount of these awards was $ 43,933 as of December 31, 2021.

1 unchanged sentence

Separation and Transition Benefits

During 2020, the Company completed a review of operations focused on markets, sectors and people which delivered lower levels of productivity in an effort to attain greater flexibility of operations and better position itself for future growth.

In 2020, the Company completed a review of operations focused on markets, sectors and people which delivered lower levels of productivity in an effort to attain greater flexibility of operations and better position itself for future growth.

This review, which began in the fourth quarter of 2019, generated reductions of approximately 8 % of the Company's headcount.

In conjunction with the employment reductions, for the years ended December 31, 2020 and 2019, the Company incurred expenses related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") of $ 30,340 and $ 1,578 , respectively, and the acceleration of the amortization of share-based payments previously granted to affected employees of $ 10,916 and $ 1,272 (related to 156 and 22 RSUs), respectively, each recorded in Special Charges, Including Business Realignment Costs, primarily within the Investment Banking segment, on the Company's Consolidated Statements of Operations.

In conjunction with these arrangements, the Company distributed cash payments of $ 26,492 and $ 377 for the years ended December 31, 2020 and 2019, respectively.

The Company granted separation and transition benefits to certain employees, resulting in expense included in Employee Compensation and Benefits, primarily within the Investment Banking segment, of $ 8,145 and $ 9,420 for the years ended December 31, 2019 and 2018, respectively.

This is comprised of expense related to Termination Costs of $ 6,178 and $ 6,190 , respectively, and expense related to the acceleration of the amortization of share-based payments of $ 1,967 and $ 3,230 , respectively, for the years ended December 31, 2019 and 2018.

In conjunction with the employment reductions, for the years ended December 31, 2020 and 2019, the Company incurred expenses related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") of $ 30,340 and $ 1,578 , respectively, and the acceleration of the amortization of share-based payments previously granted to affected employees of $ 10,916 and $ 1,272 , respectively, (related to 156 and 22 RSUs), respectively, each recorded in Special Charges, Including Business Realignment Costs, primarily within the Investment Banking segment, on the Company's Consolidated Statements of Operations.

In conjunction with these arrangements, the Company distributed cash payments of $ 26,492 and $ 377 for the years ended December 31, 2020 and 2019, respectively.

The Company also granted separation and transition benefits to certain employees, resulting in expense included in Special Charges, Including Business Realignment Costs, of $ 2,024 for the year ended December 31, 2018.

See Note 6 for further information.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

This is comprised of expense related to Termination Costs of $ 6,178 and expense related to the acceleration of the amortization of share-based payments of $ 1,967 for the year ended December 31, 2019.

In conjunction with these arrangements, the Company distributed cash payments of $ 6,035 for the year ended December 31, 2019.

The following table presents the change in the Company's Termination Costs liability for the years ended December 31, 2021 and 2020:

5 unchanged sentences

Ending Balance $ 675 $ 4,589

In addition to the above Termination Costs incurred, for the year ended December 31, 2021, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 2,434 (related to 34 RSUs) recorded in Employee Compensation and Benefits, within the Investment Banking segment, on the Company's Consolidated Statements of Operations.

Note 19 – Commitments and Contingencies

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This facility is secured by East's accounts receivable and the proceeds therefrom, as well as certain assets of EGL, including certain of EGL's accounts receivable.

In addition, the agreement contains certain reporting covenants, as well as certain debt covenants that prohibit East and the Company from incurring other indebtedness, subject to specified exceptions.

In addition, the agreement contains certain reporting covenants, as well as certain debt covenants that prohibit East and the Company from incurring other

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

indebtedness, subject to specified exceptions.

The Company and its consolidated subsidiaries were in compliance with these covenants as of December 31, 2021.

Drawings under this facility bear interest at the prime rate.

On March 11, 2019, East drew down $ 30,000 on this facility, which was repaid on May 3, 2019.

East amended this facility on October 30, 2020 such that, among other things, the interest rate provisions were modified to LIBOR plus 150 basis points and the maturity date was extended to October 31, 2022 (as amended, the "Existing PNC Facility").

On July 26, 2019, East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount of up to $ 20,000 , to be used for working capital and other corporate activities.

The facility is unsecured.

East amended this facility on October 29, 2021 such that, among other things, the interest rate provisions were LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date was extended to October 28, 2023 (as amended, the "Existing PNC Facility").

There were no drawings under this facility at December 31, 2021.

On July 26, 2019, East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount, as amended on October 30, 2020, of up to $ 30,000 , to be used for working capital and other corporate activities.

This facility is unsecured.

In addition, the agreement contains certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

The Company and its consolidated subsidiaries were in compliance with these covenants as of December 31, 2021.

On October 30, 2020, East amended this facility such that, among other things, the revolving credit facility has increased to an aggregate principal amount of $ 30,000 .

Drawings under this facility will bear interest at LIBOR plus 180 basis points and the maturity date was extended to October 31, 2022.

East amended this facility on October 29, 2021 such that, among other things, the revolving credit facility has increased to an aggregate principal amount of $ 55,000 .

Drawings under this facility bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date was extended to October 28, 2023.

East is only permitted to borrow under this facility if there is no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility.

There have been no drawings under this facility as of December 31, 2020.

There were no drawings under this facility at December 31, 2021.

On October 29, 2021, EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount of up to $ 75,000 , to be used as needed in support of capital requirements from time to time of EGL.

This facility is unsecured and is guaranteed by Evercore LP and other affiliates, pursuant to a guaranty agreement, which provides for certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

Drawings under this facility will bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date will be October 28, 2023, unless prepayment is otherwise approved earlier by FINRA.

There were no drawings under this facility at December 31, 2021.

In addition, EGL's clearing broker provides temporary funding for the settlement of securities transactions.

3 unchanged sentences

The Company paid $ 270 and $ 81 of its commitment for contingent consideration related to its acquisition of Kuna & Co, KG during the years ended December 31, 2021 and 2020, respectively.

At December 31, 2020, the Company had a remaining commitment of $ 274 for contingent consideration related to its acquisition of Kuna & Co.

The contingent consideration was fully paid as of December 31, 2021.

The Company has a commitment for contingent consideration related to the purchase of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business in 2021.

The Company’s consideration for this transaction included contingent cash consideration which will be settled in 2024.

The contingent consideration has a fair value of $ 20,587 as of December 31, 2021, and is included within Other Long-term Liabilities on the Consolidated Statement of Financial Condition.

The amount of contingent consideration to be paid is dependent on the business achieving certain revenue performance targets.

See Note 16 for further information.

The Company also had a commitment for contingent consideration related to an arrangement with the former employer of certain RECA employees, which provided for contingent consideration to be paid to the former employer of up to $ 4,463 , based on the completion of certain client engagements.

The Company recognized expenses of $ 400 and $ 3,971 for the years ended December 31, 2019 and 2018, respectively, in Professional Fees on the Company's Consolidated Statements of Operations pursuant to this arrangement.

The Company recognized expenses of $ 400 for the year ended December 31, 2019 in Professional Fees on the Company's Consolidated Statements of Operations pursuant to this arrangement.

The contingent consideration was fully paid as of December 31, 2019.

Restricted Cash – The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statements of financial condition that sum to the total of amounts shown in the Consolidated Statements of Cash Flows:

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

Restricted Cash – The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statements of financial position that sum to the total of amounts shown in the Consolidated Statements of Cash Flows:

2021 2020 2019

6 unchanged sentences

These contracts settled in June 2020 and June 2019, respectively.

In accordance with ASC 815, these contracts are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

The Company had net realized gains (losses) of ($ 3,998 ) and $ 59 for the years ended December 31, 2020 and 2019, respectively.

In accordance with ASC 815, these contracts were carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

The Company had realized gains (losses) of ($ 3,998 ) and $ 59 for the years ended December 31, 2020 and 2019, respectively.

There were no futures contracts outstanding as of December 31, 2021 and 2020.

Foreign Exchange – On occasion, the Company enters into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable in EGL.

There were no foreign currency exchange forward contracts outstanding as of December 31, 2020.

The Company entered into foreign currency exchange forward contracts to sell 3.8 billion Japanese yen for $ 35,598 during the first quarter of 2019 as an economic hedge against the exchange rate risk for Japanese yen denominated accounts receivable in EGL.

These contracts settled in April 2019.

There were no foreign currency exchange forward contracts outstanding as of December 31, 2021 and 2020.

Contingencies

In the normal course of business, from time to time, the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including contractual and employment matters.

In addition, Mexican, United Kingdom, German, Hong Kong, Singapore, Canadian, Dubai and United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, conduct periodic examinations and initiate administrative proceedings regarding the Company's business, including, among other matters, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees.

In addition, United Kingdom, German, Hong Kong, Singapore, Canadian, Dubai and United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, conduct periodic examinations and initiate administrative proceedings regarding the Company's business, including, among other matters, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees.

In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be.

7 unchanged sentences

EGL's regulatory net capital as of December 31, 2021 and 2020 was $ 660,032 and $ 586,814 , respectively, which exceeded the minimum net capital requirement by $ 659,782 and $ 586,564 , respectively.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Certain other non-U.S.

3 unchanged sentences

("ETC"), which is limited to fiduciary activities, is regulated by the Office of the Comptroller of the Currency ("OCC") and is a member bank of the Federal Reserve System.

The Company, Evercore LP and ETC are subject to written agreements with the OCC that, among other things, require the Company and Evercore LP to maintain at least $ 5,000 in Tier 1 capital in ETC (or such other amount as the OCC may require) and maintain liquid assets in ETC in an amount at least equal to the greater of $ 3,500 or 180 days coverage of ETC's operating expenses.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

ETC in an amount at least equal to the greater of $ 3,500 or 180 days coverage of ETC's operating expenses.

The Company was in compliance with the aforementioned agreements as of December 31, 2021.

3 unchanged sentences

Taxes Payable as of December 31, 2021 and 2020 were $ 20,980 and $ 15,346 , respectively.

On December 22, 2017, the SEC staff issued SAB 118 to address the application of U.S.

GAAP in situations when a registrant does not have the necessary information available or computed analysis in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act.

The Company recognized a provisional tax impact related to the re-measurement of net deferred tax assets, the write down of other comprehensive income related to certain foreign subsidiaries, the valuation allowance and effects of the mandatory deemed repatriation tax on undistributed earnings of foreign subsidiaries within its consolidated financial statements for the year ended December 31, 2017.

During 2018, the Company finalized the provisional tax impact.

Additionally, the Company is subject to the income tax effects associated with the new global intangible low-taxed income ("GILTI") provisions in the period incurred.

Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred.

For the years ended December 31, 2021, 2020 and 2019, no additional income tax expense associated with the GILTI provisions has been recognized.

34 unchanged sentences

ASU 2016-09 Benefit for Stock Compensation ( 1.7 ) % — % ( 2.7 ) %

Tax Cuts and Jobs Act - Primarily Related to the

Re-measurement of Net Deferred Tax Assets — % — % 0.1 %

Valuation Allowances ( 0.4 ) % 1.8 % 0.3 %

2 unchanged sentences

(1) Primarily related to non-deductible share-based compensation expense.

During 2018, the Company finalized the provisional tax impact of the Tax Cuts and Jobs Act resulting in an additional charge of $ 399 , primarily related to the re-measurement of net deferred tax assets.

In conjunction with the enactment of the Tax Cuts and Jobs Act, the Company's effective tax rate for the year ended December 31, 2018 was reduced by 12.3 percentage points, before the impact of ASU 2016-09.

The effective tax rate for the years ended December 31, 2020, 2019 and 2018 also reflects the application of ASU 2016-09, which was adopted effective January 1, 2017.

ASU 2016-09 requires that the tax deduction associated with the appreciation or depreciation in the Company's share price upon vesting of employee share-based awards above or below the original grant price be reflected in income tax expense.

The effective tax rate reflects net excess tax benefits and deficiencies associated with the appreciation or depreciation in the Company's share price upon vesting of employee share-based awards above or below the original grant price.

The Company's Provision for Income Taxes reflects an additional tax expense of $ 17 for the year ended December 31, 2020 and an additional tax benefit of $ 12,229 and $ 23,350 for the years ended December 31, 2019 and 2018, respectively, and resulted in a reduction in the effective tax rate of 2.7 and 4.2 percentage points for the years ended December 31, 2019 and 2018, respectively.

The effective tax rate for the years ended December 31, 2021, 2020 and 2019 reflects the application of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" which requires that the tax deduction associated with the appreciation or depreciation in the Company's share price upon vesting of employee share-based awards above or below the original grant price be reflected in income tax expense.

The Company's Provision for Income Taxes reflects an additional tax benefit of $ 18,664 and $ 12,229 for the years ended December 31, 2021 and 2019, respectively, related to the application of ASU 2016-09, and an additional tax expense of $ 17 for the year ended December 31, 2020, and resulted in a reduction in the effective tax rate of 1.7 and 2.7 percentage points for the years ended December 31, 2021 and 2019, respectively.

The effective tax rate for 2021, 2020 and 2019 also reflects the effect of certain nondeductible expenses, including expenses related to Class E and J LP Units and Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

3 unchanged sentences

any additional liability would be immaterial.

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Statements of Financial Condition.

1 unchanged sentence

Details of the Company's deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows:

EVERCORE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Deferred Tax Assets:

6 unchanged sentences

Operating Lease 81,198 80,446

80,446 58,497

Other 9,511 21,478

2 unchanged sentences

Operating Lease $ 62,164 $ 63,460

$ 63,460 $ 46,682

Goodwill, Intangible Assets and Other 16,289 12,873

5 unchanged sentences

(2) Step-up in the tax basis associated with the exchange of LP Units for holders which do not have a tax receivable agreement.

(3) As discussed in Note 2, in 2019, the Company adopted ASC 842 using the modified retrospective approach as of the date of adoption, which resulted in the recognition of operating lease right-of-use assets and lease liabilities.

The $ 10,729 decrease in net deferred tax assets from December 31, 2019 to December 31, 2020 was primarily attributable to the net $ 13,406 decrease in compensation and benefits, depreciation and amortization, as well as the step-up in basis of the tangible and intangible assets of Evercore LP, as discussed below.

In addition, management has weighed both the positive and negative evidence and determined that it was appropriate to establish a valuation allowance of $ 9,494 , primarily related to the substantial liquidation of its operations in Mexico.

See Note 5 for further information.

The $ 9,785 decrease in net deferred tax assets from December 31, 2020 to December 31, 2021 was primarily attributable to the write-off of deferred tax credits included in Other and the excess amortization over the current year step-up in the basis of the tangible and intangible assets of Evercore LP, as discussed below.

In addition, as of December 31, 2021, management weighted both the positive and negative evidence and concluded that it was appropriate to reverse $ 4,996 of the valuation allowance, primarily related to the $ 4,601 reversal of deferred New York City unincorporated business tax credits that expired due to the statute of limitations.

During 2021, the LP holders exchanged 86 Class A and Class E LP Units for Class A Shares, which resulted in an increase in the tax basis of the tangible and intangible assets of Evercore LP.

4 unchanged sentences

See Note 15 for further discussion.

The Company reported an increase in deferred tax assets of $ 458 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 7,772 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2020.

The Company reported an increase in deferred tax assets of $ 93 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 783 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2021.

A reconciliation of the changes in tax positions for the years ended December 31, 2021, 2020 and 2019 is as follows:

EVERCORE INC.

1 unchanged sentence

(amounts in thousands, except per share amounts, unless otherwise noted)

A reconciliation of the changes in tax positions for the years ended December 31, 2020, 2019 and 2018 is as follows:

2021 2020 2019

8 unchanged sentences

Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 40 and $ 2 , respectively, during the year ended December 31, 2021.

In 2020, the Company recognized tax benefits of ($ 42 ) and ($ 3 ) of interest and penalties, respectively, associated with the lapse of the statute of limitations.

In addition, during the year ended December 31, 2021, $ 122 of unrecognized tax benefits were recognized by the Company as a result of a lapse in the statute of limitations, of which $ 99 affected the effective tax rate.

In addition, the Company also recognized a tax benefit for accrued interest and penalties of ($ 43 ) and ($ 3 ), respectively, associated with the lapse in the statute of limitations.

As of December 31, 2020, there were $ 376 of unrecognized tax benefits that, if recognized, $ 306 would affect the effective tax rate.

1 unchanged sentence

In 2020, the Company recognized tax benefits of ($ 42 ) and ($ 3 ) of interest and penalties, respectively, associated with the lapse of the statute of limitations.

The Company had no unrecognized tax benefits from January 1, 2018 through December 31, 2018.

As of December 31, 2019, there were $ 494 of unrecognized tax benefits that, if recognized, $ 402 would affect the effective tax rate.

The Company is subject to taxation in the U.S.

and various state, local and foreign jurisdictions.

The Company and its affiliates are currently under examination by New York City for tax years 2014 through 2016 and New York State for tax years 2013 through 2015.

The Company and its affiliates are currently under examination by the U.S.

Internal Revenue Service for tax year 2019, New York City for tax years 2014 through 2016 and New York State for tax years 2013 through 2015.

With a few exceptions, the Company is no longer subject to U.S.

11 unchanged sentences

Accounts Receivable consists primarily of advisory fees and expense reimbursements billed to clients.

Other Assets includes long-term receivables from fees related to private funds capital raising.

Receivables are reported net of any allowance for doubtful accounts.

The Company maintains an allowance for doubtful accounts to provide coverage for probable losses from customer receivables and determines the adequacy of the allowance by estimating the probability of loss based on the Company's analysis of historical credit loss experience of the Company's client receivables, and taking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the reported amount.

Other Assets includes long-term receivables from fees related to private funds capital raising and certain fees related to the private capital businesses.

Receivables are reported net of any allowance for credit losses.

The Company maintains an allowance for credit losses to provide coverage for probable losses from customer receivables and determines the adequacy of the allowance by estimating the probability of loss based on the Company's analysis of historical credit loss experience of the Company's client receivables, and taking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the reported amount.

The Investment Banking and Investment Management receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and fees related to private funds capital raising and certain fees related to the private capital businesses, which are collected in a period exceeding one year .

The collection period for restructuring transaction receivables may exceed 90 days.

4 unchanged sentences

At December 31, 2021 and 2020, total receivables recorded in Accounts Receivable amounted to $ 351,668 and $ 368,346 , respectively, net of an allowance, and total receivables recorded in Other Assets amounted to $ 87,764 and $ 70,975 , respectively.

The Company recorded bad debt expense of $ 6,878 , $ 10,451 and $ 3,365 for the years ended December 31, 2020, 2019 and 2018, respectively.

The Company reversed bad debt expense of $ 60 for the year ended December 31, 2021 and recorded bad debt expense of $ 6,878 and $ 10,451 for the years ended December 31, 2020 and 2019, respectively.

Other Current Assets and Other Assets include arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date (contract assets).

1 unchanged sentence

As of December 31, 2020, total contract assets recorded in Other Current Assets and Other Assets amounted to $ 29,327 and $ 5,283 , respectively.

With respect to the Company's Investment Securities portfolio, which is comprised of highly-rated corporate and municipal bonds, treasury bills, exchange-traded funds, mutual funds and securities investments, the Company manages its credit risk exposure by limiting concentration risk and maintaining investment grade credit quality.

As of December 31, 2020, the Company had Investment Securities of $ 1,060,836 , of which 90 % were treasury bills and 10 % were equity securities and exchange-traded funds.

With respect to the Company's Investment Securities portfolio, which is comprised of treasury bills, exchange-traded funds and securities investments, the Company manages its credit risk exposure by limiting concentration risk and maintaining investment grade credit quality.

As of December 31, 2021, the Company had Investment Securities of $ 1,643,421 , of which 91 % were U.S.

treasury bills and 9 % were equity securities and exchange-traded funds, and Certificates of Deposit of $ 141,218 with financial institutions with high credit ratings.

Periodically, the Company provides compensation to new and existing employees in the form of loans and/or other cash awards, which include a requirement of either full or partial repayment of these awards based on the terms of their employment agreements with the Company.

4 unchanged sentences

Investment Banking includes providing advice to clients on significant mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research.

Investment Management includes advising third-party investors in Institutional Asset Management and Wealth Management and interests in private equity funds which are not managed by the Company.

Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, and the historical results include Institutional Asset Management.

The Company completed the sales of its ECB businesses in 2020.

7 unchanged sentences

Other Revenue, net, included in each segment's Net Revenues includes the following:

• Interest income and income (losses) earned on investment securities, including our investment funds and futures contracts which are used as an economic hedge against our deferred cash compensation program, certificates of deposit, cash and cash equivalents and on the Company’s debt security investment in G5

• Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates

See Note 10 for further information.)

• Gains (losses) resulting from foreign currency fluctuations

• Principal trading and realized and unrealized gains and losses on interests in Private Equity funds which are not managed by the Company

• Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company

• Interest expense associated with the Company’s Notes Payable and lines of credit, as well as revenue and expenses associated with repurchase or resale transactions (prior to the sale of the Company's ECB business in December 2020)

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

• Interest expense associated with the Company’s Notes Payable, subordinated borrowings and lines of credit, as well as revenue and expenses associated with repurchase or resale transactions

• Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates

Each segment's Operating Expenses include:

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• Amortization of LP Units and Certain Other Awards – Includes amortization costs associated with the vesting of Class J LP Units issued in conjunction with the acquisition of ISI and certain other related awards.

• Special Charges, Including Business Realignment Costs – Includes the following expenses for the years ended December 31, 2020, 2019 and 2018:

• Special Charges, Including Business Realignment Costs – Includes the following expenses:

◦ 2021 – Includes expenses related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's current investment strategy, the Company decided to wind-down during 2021

◦ 2020 – Includes expenses related to separation and transition benefits and related costs as a result of the Company's review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the expansion of the Company's headquarters in New York and the Company's business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of the Company's businesses in Mexico

◦ 2019 – Includes expenses related to the acceleration of depreciation expense for leasehold improvements in conjunction with the expansion of the Company's headquarters in New York, the impairment of goodwill in the Company's Institutional Asset Management reporting unit and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations

◦ 2018 – Includes expenses related to separation benefits and costs for the termination of certain contracts associated with closing the Company's agency trading platform in the U.K.

• Acquisition and Transition Costs – Includes costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services, including costs in 2020 associated with the sale of the Company's ECB businesses.

• Fair Value of Contingent Consideration – Includes expense, or the reversal of expense, associated with changes in the fair value of contingent consideration issued to the sellers of certain of the Company's acquisitions.

• Intangible Asset and Other Amortization – Includes amortization of intangible assets and other purchase accounting-related amortization associated with certain acquisitions.

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Other Expenses (2)

8,554 345 3,247

Operating Income (Loss) 4,427 ( 4,299 ) 5,011

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Total Other Revenue, net $ 19,196 $ ( 28,648 ) $ 24,723

(A) Investment Banking Other Revenue, net, includes interest expense on the Notes Payable, subordinated borrowings and lines of credit of $ 18,197 , $ 12,917 and $ 9,201 for the years ended December 31, 2020, 2019 and 2018, respectively.

Investment Banking Other Revenue, net, also includes a loss of $ 21,070 related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico for the year ended December 31, 2020.

(B) Investment Management Other Revenue, net, includes a net loss of $ 3,441 related to the sale of the Company's ECB businesses and a loss of $ 6,295 related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico for the year ended December 31, 2020.

(A) Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $ 17,586 , $ 18,197 and $ 12,917 for the years ended December 31, 2021, 2020 and 2019, respectively.

Other Revenue, net, also includes a loss of $ 21,070 related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico for the year ended December 31, 2020.

(B) Other Revenue, net, from Investment Management includes a net loss of $ 3,441 related to the sale of the Company's ECB businesses and a loss of $ 6,295 related to the release of cumulative foreign exchange losses resulting from the sale and wind-down of the Company's businesses in Mexico for the year ended December 31, 2020.

(2) Other Expenses are as follows:

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Acquisition and Transition Costs 7 262 705

Fair Value of Contingent Consideration — — 1,485

Intangible Asset and Other Amortization — 1,183 7,528

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Europe and Other 603,222 508,545

Latin America 3,568 66,444

Total $ 3,802,657 $ 3,370,888

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Payable to Related Party $ 10,465 $ 9,891

Taxes Payable 13,075 —

Other Current Liabilities 3,629 3,963

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CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Notes Payable ( 38,000 ) — —

Issuance of Notes Payable 38,000 — 205,718

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At December 31, 2021, the Company has issued 74,804 Class A Shares.

The Company canceled two shares of Class B common stock, which were held by limited partners of Evercore LP during 2020.

During 2020, the Company purchased 1,068 Class A Shares primarily from employees at market values ranging from $ 38.23 to $ 104.38 per share (at an average cost per share of $ 76.51 ) primarily for the net settlement of stock-based compensation awards and 854 Class A Shares at market values ranging from $ 58.28 to $ 81.96 per share (at an average cost per share of $ 75.93 ) pursuant to the Company's share repurchase program.

The Company canceled six shares of Class B common stock, which were held by limited partners of Evercore LP during 2021.

During 2021, the Company purchased 995 Class A Shares from employees at an average cost per share of $ 118.62 , primarily for the net settlement of stock-based compensation awards, and 4,461 Class A Shares at an average cost per share of $ 135.11 pursuant to the Company's share repurchase program.

The result of these purchases was an increase in Treasury Stock of $ 720,725 on the Company's Statement of Financial Condition as of December 31, 2021.

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On March 30, 2016, the Company issued an aggregate of $ 170,000 of senior notes (the "2016 Private Placement Notes"), including:

$ 38,000 aggregate principal amount of its 4.88 % Series A senior notes due 2021, $ 67,000 aggregate principal amount of its 5.23 % Series B senior notes due 2023, $ 48,000 aggregate principal amount of its 5.48 % Series C senior notes due 2026 and $ 17,000 aggregate principal amount of its 5.58 % Series D senior notes due 2028, pursuant to a note purchase agreement dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

$ 38,000 aggregate principal amount of its 4.88 % Series A senior notes which were due March 30, 2021 (the "Series A Notes"), $ 67,000 aggregate principal amount of its 5.23 % Series B senior notes due March 30, 2023, $ 48,000 aggregate principal amount of its 5.48 % Series C senior notes due March 30, 2026 and $ 17,000 aggregate principal amount of its 5.58 % Series D senior notes due March 30, 2028, pursuant to a note purchase agreement dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

In March 2021, the Company repaid the $ 38,000 aggregate principal amount of its Series A Notes.

On August 1, 2019, the Company issued $ 175,000 and £ 25,000 of senior unsecured notes (the "2019 Private Placement Notes"), through private placement.

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These notes include:

$ 75,000 aggregate principal amount of its 4.34 % Series E senior notes due 2029, $ 60,000 aggregate principal amount of its 4.44 % Series F senior notes due 2031, $ 40,000 aggregate principal amount of its 4.54 % Series G senior notes due 2033 and £ 25,000 aggregate principal amount of its 3.33 % Series H senior notes due 2033, each of which were issued pursuant to a note purchase agreement dated as of August 1, 2019, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

$ 75,000 aggregate principal amount of its 4.34 % Series E senior notes due August 1, 2029, $ 60,000 aggregate principal amount of its 4.44 % Series F senior notes due August 1, 2031, $ 40,000 aggregate principal amount of its 4.54 % Series G senior notes due August 1, 2033 and £ 25,000 aggregate principal amount of its 3.33 % Series H senior notes due August 1, 2033, each of which were issued pursuant to a note purchase agreement dated as of August

EVERCORE INC.

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(amounts in thousands, except per share amounts, unless otherwise noted)

1, 2019, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

On March 29, 2021, the Company issued an aggregate of $ 38,000 of senior notes, comprised of $ 38,000 aggregate principal amount of its 1.97 % Series I senior notes due August 1, 2025 (the "2021 Private Placement Notes"), pursuant to a note purchase agreement dated as of March 29, 2021, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

Note E – Commitments and Contingencies

As of December 31, 2020, as discussed in Note 14 to the consolidated financial statements, the Company estimates the contractual obligations related to the 2016 and 2019 Private Placement Notes to be $ 505,236 .

As of December 31, 2021, as discussed in Note 13 to the consolidated financial statements, future payments required related to the 2016, 2019 and 2021 Private Placement Notes are $ 490,661 .

Pursuant to the 2016, 2019 and 2021 Private Placement Notes, the Company expects to make payments to the notes' holders of $ 16,693 within one year or less, $ 95,130 in one to three years, $ 110,127 in three to five years and $ 268,711 after five years.

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SUPPLEMENTAL FINANCIAL INFORMATION

(dollars in thousands, except per share data)

Consolidated Quarterly Results of Operations (unaudited)

The following represents the Company's unaudited quarterly results for the years ended December 31, 2020 and 2019.

These quarterly results were prepared in accordance with U.S.

GAAP and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results.

For the Three Months Ended

2020 September 30,

2020 June 30,

2020 March 31,

Net Revenues $ 927,308 $ 402,515 $ 507,075 $ 427,007

Total Expenses 600,593 338,829 420,346 377,704

Income Before Income from Equity Method Investments and Income Taxes 326,715 63,686 86,729 49,303

Income from Equity Method Investments 5,846 3,111 2,313 3,128

Income Before Income Taxes 332,561 66,797 89,042 52,431

Provision for Income Taxes 77,109 15,677 21,814 13,551

Net Income 255,452 51,120 67,228 38,880

Net Income Attributable to Noncontrolling Interest 35,075 8,510 10,816 7,705

Net Income Attributable to Evercore Inc.

$ 220,377 $ 42,610 $ 56,412 $ 31,175

Net Income Per Share Attributable to Evercore Inc.

Common Shareholders

Basic $ 5.40 $ 1.05 $ 1.39 $ 0.78

Diluted $ 5.02 $ 1.01 $ 1.35 $ 0.74

Dividends Declared Per Share of Class A Common Stock $ 0.61 $ 0.58 $ 0.58 $ 0.58

For the Three Months Ended

2019 September 30,

2019 June 30,

2019 March 31,

Net Revenues $ 660,127 $ 402,198 $ 531,046 $ 415,327

Total Expenses 503,404 331,854 404,212 331,517

Income Before Income from Equity Method Investments and Income Taxes 156,723 70,344 126,834 83,810

Income from Equity Method Investments 3,770 2,562 2,453 2,211

Income Before Income Taxes 160,493 72,906 129,287 86,021

Provision for Income Taxes 34,793 20,402 32,030 7,821

Net Income 125,700 52,504 97,257 78,200

Net Income Attributable to Noncontrolling Interest 20,516 9,226 15,515 10,968

Net Income Attributable to Evercore Inc.

$ 105,184 $ 43,278 $ 81,742 $ 67,232

Net Income Per Share Attributable to Evercore Inc.

Common Shareholders

Basic $ 2.68 $ 1.09 $ 2.02 $ 1.66

Diluted $ 2.48 $ 1.01 $ 1.88 $ 1.52

Dividends Declared Per Share of Class A Common Stock $ 0.58 $ 0.58 $ 0.58 $ 0.50

Not applicable.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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-K

Item 8. Financial Statements and Supplementary Data