7 unchanged sentences
Consolidated Statements of Cash Flows
−Removed: Notes to Con solidated Financial Statements
+Added: Notes to Consolidated Financial Statements
Supplemental Financial Information
25 unchanged sentences
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.
−Removed: However, the recognition of success fees, which are included in investment banking advisory fee revenue, is generally constrained until
−Removed: 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.
+Added: However, the recognition of success fees, which are included in investment banking advisory fee revenue, is generally constrained until it
+Added: 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.
31 unchanged sentences
Goodwill 125,493 123,285
−Removed: Intangible Assets (net of accumulated amortization of $ 3,294 at December 31, 2021)
Other Assets 147,287 109,865
95 unchanged sentences
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
−Removed: Cumulative Effect of Accounting Change (1)
−Removed: — — — — ( 1,310 ) — — — ( 1,310 )
Net Income — — — — 740,116 — — 128,457 868,573
−Removed: Other Comprehensive Income — — — 17,838 — — — 7,366 25,204
+Added: Other Comprehensive Income (Loss) — — — ( 2,328 ) — — — ( 447 ) ( 2,775 )
Treasury Stock Purchases — — — — — ( 5,455,800 ) ( 720,725 ) — ( 720,725 )
13 unchanged sentences
Net Income — — — — 255,479 — — 29,744 285,223
−Removed: Other Comprehensive Income (Loss) — — — ( 15,856 ) — — — ( 1,612 ) ( 17,468 )
+Added: Other Comprehensive Income — — — 1,404 — — — 112 1,516
Treasury Stock Purchases — — — — — ( 3,001,283 ) ( 387,286 ) — ( 387,286 )
4 unchanged sentences
Balance at December 31, 2023 82,114,009 $ 821 $ 3,163,198 $ ( 26,538 ) $ 1,892,656 ( 44,340,396 ) $ ( 3,453,203 ) $ 205,556 $ 1,782,490
−Removed: (1) The cumulative adjustment relates to the adoption of Accounting Standards Update ("ASU") No.
−Removed: 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.
−Removed: See Note 2 for further information.
See Notes to Consolidated Financial Statements.
10 unchanged sentences
Equity-Based and Other Deferred Compensation 515,381 467,339 422,210
−Removed: Net Loss on Sale and Wind-down of Operations in Mexico in 2020 and Release of Cumulative Foreign Exchange Losses — 1,250 35,247
+Added: Release of Cumulative Foreign Exchange Losses — — 1,250
Noncash Lease Expense 42,153 41,534 40,761
−Removed: Depreciation, Amortization and Accretion 28,651 28,655 30,002
+Added: Depreciation, Amortization and Accretion, net 2,388 28,651 28,655
Bad Debt Expense 5,559 5,513 ( 60 )
2 unchanged sentences
Investment Securities 11,635 ( 1,777 ) ( 1,960 )
−Removed: Financial Instruments Owned and Pledged as Collateral at Fair Value — — ( 1,516 )
−Removed: Securities Purchased Under Agreements to Resell — — ( 399 )
Accounts Receivable 11,273 ( 46,084 ) 16,028
4 unchanged sentences
Accounts Payable and Accrued Expenses ( 966 ) ( 1,093 ) ( 5,497 )
−Removed: Securities Sold Under Agreements to Repurchase — — 1,935
Payables to Employees and Related Parties ( 8,734 ) 12,642 6,065
7 unchanged sentences
Investment Securities:
−Removed: Proceeds from Sales and Maturities of Investment Securities and Futures Contracts Activity 3,160,061 2,669,500 555,624
−Removed: Purchases of Investment Securities and Futures Contracts Activity ( 2,850,658 ) ( 3,219,975 ) ( 1,201,617 )
+Added: Proceeds from Sales and Maturities of Investment Securities 3,279,088 3,160,061 2,669,500
+Added: Purchases of Investment Securities ( 3,313,200 ) ( 2,850,658 ) ( 3,219,975 )
Maturity of Certificates of Deposit 177,446 281,386 121,912
1 unchanged sentence
Purchase of Furniture, Equipment and Leasehold Improvements ( 20,048 ) ( 23,187 ) ( 27,971 )
−Removed: Proceeds from Sale of Business, Net of Cash Sold — — 679
Net Cash Provided by (Used in) Investing Activities 15,621 313,303 ( 705,892 )
30 unchanged sentences
The Investment Banking & Equities segment includes the investment banking 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.
−Removed: The Company also provides restructuring advice to companies in financial transition, as well as to creditors, shareholders and potential acquirers.
−Removed: In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on secondary transactions for private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private equity interests.
+Added: The Company also provides liability management and restructuring advice to companies in financial transition, as well as to creditors, shareholders and potential acquirers.
+Added: In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on partnerships and private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private equity interests.
The Investment Banking & Equities segment also includes the equities business through which the Company offers macroeconomic, policy and fundamental equity research and agency-based equity securities trading for institutional investors.
−Removed: During 2022, the Company renamed its "Investment Banking" segment to "Investment Banking & Equities." The renaming of this segment did not result from changes to the overall business structure or reporting.
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.
−Removed: 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.
−Removed: This business included Evercore Casa de Bolsa, S.A.
−Removed: ("ECB"), which was sold during 2020.
−Removed: See Note 5 for further information.
Note 2 – Significant Accounting Policies
13 unchanged sentences
("Evercore Japan"), Evercore Consulting (Beijing) Co.
−Removed: ("Evercore Beijing") and Evercore Partners Canada Ltd.
−Removed: ("Evercore Canada") are also VIEs, and the Company is the primary beneficiary of these VIEs.
−Removed: Specifically for Evercore ISI U.K., Evercore Japan, Evercore Beijing and 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.
+Added: ("Evercore Beijing"), Evercore Partners Canada Ltd.
+Added: ("Evercore Canada") and Evercore Asia Limited ("Evercore Hong Kong") are also VIEs, and the Company is the primary beneficiary of these VIEs.
+Added: Specifically for Evercore ISI U.K., Evercore Japan, Evercore Beijing, Evercore Canada and Evercore Hong Kong (as of September 30, 2023 for Evercore Hong Kong), 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.
−Removed: The Company included in its Consolidated Statements of Financial Condition Evercore ISI U.K.,
+Added: The Company included in its Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing, Evercore Canada and Evercore Hong Kong assets of $ 466,588 and liabilities of $ 224,263 at December 31, 2023 and Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 584,192 and liabilities of $ 247,884 at December 31, 2022.
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 584,192 and liabilities of $ 247,884 at December 31, 2022 and assets of $ 446,736 and liabilities of $ 260,426 at December 31, 2021.
All intercompany balances and transactions with the Company's subsidiaries have been eliminated upon consolidation.
2 unchanged sentences
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").
+Added: Periodically, certain employees of the Company purchase vested Class A LP Units at fair value at the time of purchase.
At December 31, 2013, all Class A LP Units were fully vested.
−Removed: Class E LP Units – As a result of the acquisition of the operating businesses of International Strategy & Investment ("ISI") in 2014 and the conversion of the Class J limited partnership units of Evercore LP ("Class J LP Units"), the Company has Class E limited partnership units of Evercore LP ("Class E LP Units") outstanding.
+Added: Class E LP Units – As a result of the acquisition of the operating businesses of International Strategy & Investment ("ISI") in 2014, the Company has Class E limited partnership units of Evercore LP ("Class E LP Units") outstanding, which are exchangeable on a one -for-one basis for Class A Shares.
At December 31, 2020, all Class E LP Units were fully vested.
4 unchanged sentences
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.
−Removed: 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.
+Added: 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 and in February 2023, the first tranche of the Class K-P Units that were issued in 2019 converted into Class K LP Units upon the achievement of certain performance and service conditions.
See Note 18 for further information on Evercore LP partnership units ("LP Units") where exchangeability is subject to performance and/or market conditions.
8 unchanged sentences
The Company applies this model to revenue streams from its Investment Banking & Equities and Investment Management segments.
−Removed: Investment Banking & Equities Revenue – The Company earns fees from clients for providing advisory services on strategic matters, including mergers, acquisitions, divestitures, leveraged buyouts, restructurings, activism and defense and similar corporate finance matters.
+Added: Investment Banking & Equities Revenue – The Company earns fees from clients for providing advisory services on strategic matters, including mergers, acquisitions, divestitures, leveraged buyouts, liability management and restructurings, activism and defense and similar corporate finance matters.
The Company's Investment Banking & Equities segment also includes services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research.
−Removed: Revenue is recognized as the Company satisfies performance obligations, upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for these
+Added: Revenue is recognized as the Company satisfies performance obligations, upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for these services.
+Added: The Company’s contracts with customers may include promises to transfer multiple services to a
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: The Company’s contracts with customers may include promises to transfer multiple services to a customer.
Determining whether services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.
11 unchanged sentences
In the case of bankruptcy engagements, fees may be subject to court approval.
−Removed: 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).
+Added: With respect to retainer, announcement and success fees in merger and acquisition ("M&A") transactions, 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).
These advisory services are provided over time throughout the contract period.
4 unchanged sentences
A portion of the announcement fee may be deferred based on the services remaining to be completed, if any.
−Removed: Success fees for advisory services, such as merger and acquisition ("M&A") advice, are recognized when it is determined that the reversal of revenue is not probable and all other requirements for revenue recognition are satisfied, which is generally at closing of the transaction.
+Added: Success fees for advisory services, such as M&A advice, are recognized when it is determined that the reversal of revenue is not probable and all other requirements for revenue recognition are satisfied, which is generally at closing of the transaction.
With respect to fairness or valuation opinions, fees are fixed and there is a distinct performance obligation, since the opinion is rendered separate from any other advisory activities.
4 unchanged sentences
Underwriting Fees – Underwriting fees are attributable to public and private offerings of equity and debt securities and are recognized at the point in time when the offering has been deemed to be completed by the lead manager of the underwriting group, or in the case of certain ongoing issuances when the sale of the securities has settled.
−Removed: When the offering is completed, the performance obligation has been satisfied and the Company recognizes the applicable
+Added: When the offering is completed, the performance obligation has been satisfied and the Company recognizes the applicable management fee, selling concession, sales agent commission or placement agent fee.
+Added: Offering expenses are presented gross
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: management fee, selling concession, sales agent commission or placement agent fee.
−Removed: Offering expenses are presented gross in the Consolidated Statements of Operations.
+Added: in the Consolidated Statements of Operations.
The Company also manages assignments involving the exchange of an issuer's securities where fees are recognized when earned.
2 unchanged sentences
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.
−Removed: The Company also earns subscription fees for the sales of research, as well as revenues from principal transactions primarily executed on a riskless principal basis.
+Added: The Company also earns subscription fees for the sales of research, as well as revenues from trades primarily executed on a riskless principal basis.
The delivery of research under subscription arrangements represents a distinct performance obligation that is satisfied over time.
10 unchanged sentences
Fees paid in advance of services rendered are initially recorded as deferred revenue (a contract liability), which is recorded 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 service is rendered.
−Removed: Generally, to the extent performance fee arrangements have been negotiated, these fees are earned when the likelihood of clawback is mathematically improbable.
Fees generated for serving as an independent fiduciary and/or trustee are either based on a flat fee, are pre-negotiated with the client or are based on the value of assets under administration.
3 unchanged sentences
Other Revenue, Including Interest and Investments, and Interest Expense – Other Revenue, Including Interest and Investments, includes the following:
−Removed: • 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.
+Added: • Interest income, including accretion, and income (losses) on investment securities, including the Company's investment funds (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.
2 unchanged sentences
See Note 10 for further information
−Removed: • Gains (losses) resulting from foreign currency exchange rate fluctuations
+Added: • Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge
+Added: • Realized and unrealized gains and losses on interests in private equity funds which the Company does not manage
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: • Realized and unrealized gains and losses on interests in private equity funds which the Company does not manage
−Removed: • 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.
−Removed: In prior periods, Other Revenue and Interest Expense were also derived from investing customer funds in financing transactions.
−Removed: These transactions were principally repurchases and resales of Mexican government and government agency securities.
−Removed: Revenue and expenses associated with these transactions were recognized over the term of the repurchase or resale transaction.
−Removed: These transactions were part of the Company's ECB business in Mexico, which was sold on December 16, 2020.
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.
11 unchanged sentences
Cash and Cash Equivalents – Cash and Cash Equivalents consist of short-term highly-liquid investments with original maturities of three months or less.
−Removed: Investment Securities and Certificates of Deposit and Futures Contracts – Investment Securities may include investments in U.S.
+Added: Investment Securities and Certificates of Deposit and Futures and Forward 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").
2 unchanged sentences
Investment Securities transactions are recorded as of the trade date.
−Removed: The Company also periodically enters into futures contracts as an economic hedge against the Company's deferred cash compensation program.
−Removed: In accordance with ASC 815, "Derivatives and Hedging," ("ASC 815") futures contracts are carried at fair value.
+Added: The Company also periodically enters into futures contracts as an economic hedge against the Company's deferred cash compensation program and foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments.
+Added: In accordance with ASC 815, "Derivatives and Hedging," ("ASC 815") futures and forward contracts are carried at fair value.
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.
1 unchanged sentence
EGL also invests in fixed income portfolios consisting of U.S.
−Removed: Treasury securities, which are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: Investments, on the Consolidated Statements of Operations, as required for broker-dealers in securities.
+Added: 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.
3 unchanged sentences
The Company maintains an allowance for credit losses to provide coverage for estimated losses from its client receivables.
−Removed: The Company adopted ASU 2016-13 on January 1, 2020, using a modified retrospective method of transition.
−Removed: The Company recorded a cumulative-effect adjustment to decrease retained earnings by $ 1,310 as of January 1, 2020.
−Removed: 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.
+Added: In accordance with ASC 326, "Financial Instruments - Credit Losses" , the Company determines the adequacy of the allowance by
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: 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.
The Company has determined that long-term forecasted information is not relevant to its fee receivables, which are primarily short-term.
2 unchanged sentences
Expected credit losses for newly recognized financial assets and changes to expected credit losses during the period are recognized in earnings.
−Removed: The Company's 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 .
+Added: The Company's 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 certain fees related to private funds capital raising and the private capital businesses, a portion of which may be collected in a period exceeding one year .
The collection period for restructuring transaction receivables may exceed 90 days.
6 unchanged sentences
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") 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.
−Removed: The Company assesses its equity method investments annually for impairment, or more frequently if circumstances indicate impairment may have occurred.
+Added: The Company assesses each of its equity method investments annually for impairment, or more frequently if circumstances indicate impairment may have occurred.
Private Equity – The investments in private equity funds consist primarily of investments in marketable and non-marketable securities of the portfolio companies.
4 unchanged sentences
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.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
Other Investments – 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.
4 unchanged sentences
The Company does not separate lease and non-lease components of contracts for leases for the use of office space and equipment.
−Removed: Operating leases for office space generally contain payments for real estate taxes, common area maintenance and other operating expenses in addition to rent payments that are not fixed;
+Added: Operating leases for office space generally
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: contain payments for real estate taxes, common area maintenance and other operating expenses in addition to rent payments that are not fixed;
the Company accounts for these costs as variable payments and does not include these as part of the lease component.
22 unchanged sentences
The market multiple approach includes applying the average earnings multiples of comparable public companies for their respective reporting unit multiplied by the forecasted earnings of the respective reporting unit to yield an estimate of fair value.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
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.
3 unchanged sentences
Compensation and Benefits – Compensation includes salaries, bonuses (discretionary awards and guaranteed amounts), severance, deferred cash and share-based compensation, and other benefits.
−Removed: 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, subject to acceleration in certain cases.
+Added: Cash bonuses are accrued over the respective
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: service periods to which they relate and deferred cash and share-based grants are expensed prospectively over their requisite service period, subject to acceleration in certain cases.
+Added: Effective January 1, 2023, the Company changed its medical insurance plan in the U.S.
+Added: from a fully insured to a self-funded plan.
+Added: The Company is liable for the funding of claims under the self-funded plan.
+Added: The Company also maintains stop-loss insurance for its medical plan to provide coverage for claims over a defined financial threshold.
+Added: In accordance with ASC 405-30, " Liabilities - Insurance-Related Assessments ", the Company accrues losses for the total cost of both asserted and unasserted claims.
+Added: The cost of incurred but not reported claims is measured at the present value, as applicable, of the estimated ultimate cost to the plan of settling those claims.
+Added: See Note 14 for further information.
Share-Based Payments and Other Deferred Compensation – The Company accounts for share-based payments in accordance with ASC 718, " Compensation – Stock Compensation" ("ASC 718").
8 unchanged sentences
Compensation expense is recognized pursuant to performance-based awards if, and to the extent, it is probable that the performance condition will be achieved.
+Added: The effect of a market condition is reflected in the grant date fair value of an award and compensation cost is recognized provided the service condition is satisfied and to the extent any performance condition is achieved.
See Note 18 for a discussion of the Company's Long-term Incentive Plan and other performance-based awards.
10 unchanged sentences
Deferred tax assets are reduced by a valuation allowance when it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized.
−Removed: Significant management
+Added: Significant management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against the Company's net deferred tax assets.
+Added: 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 on the Consolidated Statements of Operations.
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against the Company's net deferred tax assets.
−Removed: 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.
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.
1 unchanged sentence
See Note 21 for further information.
−Removed: Reclassifications – During 2021, certain balances on the Consolidated Statements of Operations for prior periods were reclassified to conform to their current presentation.
−Removed: 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 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 year ended December 31, 2020.
Note 3 – Recent Accounting Pronouncements
−Removed: ASU 2020-06 – In August 2020, the Financial Accounting Standards Board issued ASU No.
−Removed: 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06").
−Removed: ASU 2020-06 provides amendments to reduce the number of models used to account for convertible instruments and to simplify the accounting for contracts in an entity's own equity.
−Removed: ASU 2020-06 also provides amendments to diluted earnings per share calculations, which require entities to use the if-converted method for convertible instruments and to include the effect of potential share settlement from instruments that may be settled in cash or in shares.
−Removed: The amendments in this update are effective during interim and annual periods beginning after December 15, 2021, with early adoption permitted.
−Removed: The amendments should be applied using a modified or full retrospective transition method.
−Removed: The Company adopted ASU 2020-06 on January 1, 2022.
−Removed: 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.
+Added: ASU 2023-07 – In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.
+Added: 2023-07, "Improvements to Reportable Segment Disclosures" ("ASU 2023-07").
+Added: ASU 2023-07 provides amendments to ASC 280, "Segment Reporting," which require disclosure of incremental segment information on an annual and interim basis, and require that all annual disclosures currently required by ASC 280 about a reportable segment's profit or loss and assets are also provided in interim periods.
+Added: The amendments in this update are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.
+Added: The amendments should be applied on a retrospective basis.
+Added: 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.
+Added: ASU 2023-09 – In December 2023, the FASB issued ASU No.
+Added: 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09").
+Added: ASU 2023-09 provides amendments to ASC 740, which require greater disaggregation of information in a reporting entity's effective tax rate reconciliation, require disaggregation of income taxes paid by federal, state, and foreign jurisdictions and add or modify certain other disclosure requirements.
+Added: The amendments in this update are effective for annual periods beginning after December 15, 2024, with early adoption permitted.
+Added: The amendments should be applied on a prospective or retrospective basis.
+Added: 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 .
Note 4 – Revenue and Accounts Receivable
11 unchanged sentences
$ 67,041 $ 64,483 $ 65,784
−Removed: Institutional Asset Management
Total Investment Management $ 67,041 $ 64,483 $ 65,784
Contract Balances
+Added: 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.
+Added: The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the years ended December 31, 2023 and 2022 are as follows:
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: 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.
−Removed: The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the years ended December 31, 2022 and 2021 are as follows:
For the Year Ended December 31, 2023
38 unchanged sentences
Ending Balance $ 5,603 $ 4,683
−Removed: The change in the balance during the year ended December 31, 2022 is primarily related an increase in the Company's reserve for credit losses and the write-off of aged receivables.
+Added: The increase in the balance during the year ended December 31, 2023 is primarily related to an increase in the Company's reserve for credit losses, partially offset by the write-off of aged receivables.
For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics.
7 unchanged sentences
Note 5 – Business Changes and Developments
−Removed: Business Developments
−Removed: Sale of ECB Business and Wind-down of Mexico Advisory – During 2020, the Company completed the sale of its ECB businesses and the transition of its advisory presence in Mexico:
−Removed: • On July 2, 2020, the Company completed the sale of the trust business of ECB (the "ECB Trust Business"), which was a part of its Investment Management segment, for a purchase price of MXN 39,500 ($ 1,830 ).
−Removed: 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.
−Removed: 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.
−Removed: • On December 16, 2020, the Company completed the sale of its remaining ECB business for a purchase price of MXN 35,000 ($ 1,634 ).
−Removed: The ECB business was part of the Company’s Investment Management segment.
−Removed: 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.
−Removed: 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 .
−Removed: • 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.
−Removed: Following the above transactions, the Company concluded that the liquidation of its operations in Mexico was substantially complete.
−Removed: This determination resulted in the reclassification of $ 20,337 and $ 7,028 of cumulative foreign currency translation losses from Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest, respectively, 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.
−Removed: In addition, the Company recorded $ 1,656 in Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations for the year ended December 31, 2020, for charges related to the impairment of assets resulting from the wind-down of the Company's businesses in Mexico.
−Removed: This was comprised of a charge of $ 1,176 related to the impairment of operating lease right-of-use assets and a charge of $ 480 related to the impairment of leasehold improvements.
−Removed: Further, in conjunction with the ongoing wind-down of the administrative functions in Mexico, the Company incurred certain professional fees, separation benefits and other charges, which are recorded within Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations for the year ended December 31, 2022.
−Removed: See Note 6 for further information.
Goodwill and Intangible Assets
Goodwill associated with the Company's acquisitions is as follows:
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
Banking & Equities Investment
9 unchanged sentences
(1) The amount of the Company's goodwill before accumulated impairment losses of $ 38,528 was $ 164,021 , $ 161,813 and $ 166,774 at December 31, 2023, 2022 and 2021, respectively.
−Removed: Intangible assets associated with the Company's acquisitions are as follows:
−Removed: December 31, 2021
−Removed: Gross Carrying Amount Accumulated Amortization
−Removed: Banking & Equities Investment
−Removed: Management Total Investment
−Removed: Banking & Equities Investment
−Removed: Management Total
−Removed: Client Related $ — $ 3,630 $ 3,630 $ — $ 3,294 $ 3,294
−Removed: Total $ — $ 3,630 $ 3,630 $ — $ 3,294 $ 3,294
−Removed: Expense associated with the amortization of intangible assets was $ 336 , $ 362 and $ 1,605 for the years ended December 31, 2022, 2021 and 2020, respectively.
+Added: Expen se associated with the amortization of intangible assets was $ 336 and $ 362 for the years ended December 31, 2022 and 2021, respectively.
The Company's intangible assets were fully amortized as of December 31, 2022.
2 unchanged sentences
Note 6 – Special Charges, Including Business Realignment Costs
−Removed: The Company recognized $ 3,126 for the year ended December 31, 2022, as Special Charges, Including Business Realignment Costs, related to charges associated with the prepayment of the Company's 5.23 % Series B senior notes originally due March 30, 2023 (the "Series B Notes"), as well as certain professional fees, separation benefits and other charges related to the ongoing wind-down of the Company's administrative functions in Mexico.
−Removed: See Notes 5 and 13 for further information.
−Removed: 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 investment strategy, the Company decided to wind-down during 2021.
+Added: The Company recognized $ 2,921 for the year ended December 31, 2023, as Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico.
+Added: The Company recognized $ 3,126 for the year ended December 31, 2022, as Special Charges, Including Business Realignment Costs, related to charges associated with the prepayment of the Company's 5.23 % Series B senior notes originally due March 30, 2023 (the "Series B Notes"), as well as certain professional fees, separation benefits and other charges related to the wind-down of the Company's operations in Mexico.
See Note 13 for further information.
−Removed: The Company recognized $ 46,645 for the year ended December 31, 2020, as Special Charges, Including Business Realignment Costs.
−Removed: This included 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.
+Added: 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 investment strategy, the Company decided to wind-down during 2021.
See Note 10 for further information.
−Removed: As noted above, 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.
−Removed: This review, which began in the fourth quarter of 2019, generated reductions of 8 % of the Company's headcount.
−Removed: In conjunction with the employment reductions, the Company incurred costs (including costs related to the acceleration of deferred compensation) of $ 41,669 for the year ended December 31, 2020, which has been recorded in Special Charges Including Business Realignment Costs.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
Note 7 – Related Parties
3 unchanged sentences
Receivable from Employees and Related Parties on the Consolidated Statements of Financial Condition consisted of the following at December 31, 2023 and 2022:
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
Advances to Employees $ 25,364 $ 21,003
12 unchanged sentences
The long-term portion of $ 52,813 and $ 61,169 is included within Amounts Due Pursuant to Tax Receivable Agreements on the Consolidated Statements of Financial Condition at December 31, 2023 and 2022, respectively.
−Removed: (2) Reflects the current portion due to employees of the Real Estate Capital Advisory ("RECA") business for the sale of Class R Interests of Private Capital Advisory L.P.
−Removed: The long-term portion of $ 5,036 and $ 20,587 due related to the contingent cash consideration is included within Other Long-term Liabilities on the Consolidated Statements of Financial Condition at December 31, 2022 and 2021, respectively.
+Added: (2) Reflects the current portion of contingent cash consideration due to employees of the Real Estate Capital Advisory ("RECA") business for the sale of Class R Interests of Private Capital Advisory L.P.
+Added: The long-term portion of contingent cash consideration due to employees of $ 5,036 is included within Other Long-term Liabilities on the Consolidated Statement of Financial Condition at December 31, 2022.
See Note 16 for further information.
1 unchanged sentence
The Company's Investment Securities and Certificates of Deposit as of December 31, 2023 and 2022 were as follows:
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: December 31, 2022 December 31, 2021
−Removed: Losses Fair Value Cost Gross
−Removed: Losses Fair Value
Debt Securities $ 744,315 $ 807,135
2 unchanged sentences
Investment Funds 160,559 136,718
−Removed: Total Investment Securities (carried at fair value) $ 1,311,377 $ 6,828 $ 8,379 $ 1,309,826 $ 1,603,987 $ 39,464 $ 30 $ 1,643,421
−Removed: Certificates of Deposit (carried at contract value) 122,890 141,218
+Added: Total Investment Securities, at fair value $ 1,382,027 $ 1,309,826
+Added: Certificates of Deposit, at contract value 54,856 122,890
Total Investment Securities and Certificates of Deposit $ 1,436,883 $ 1,432,716
+Added: Debt Securities
+Added: Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Consolidated Statements of Financial Condition.
+Added: These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) on the Consolidated Statements of Financial Condition and realized gains and losses included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations, on a specific identification basis.
+Added: Gross unrealized gains included in Accumulated Other Comprehensive Income (Loss) were $ 419 , $ 6,760 and $ 29 for the years ended December 31, 2023, 2022 and 2021, respectively.
+Added: Gross unrealized losses included in Accumulated Other
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: Comprehensive Income (Loss) were ($ 280 ), ($ 2,301 ) and ($ 36 ) for the years ended December 31, 2023, 2022 and 2021, respectively.
+Added: Gross realized losses included within Other Revenue, Including Interest and Investments, were ($ 261 ), ($ 34 ) and ($ 11 ) for the years ended December 31, 2023, 2022 and 2021, respectively.
+Added: Proceeds from the sales and maturities of available-for-sale securities, including interest, were $ 1,772,642 , $ 1,415,291 and $ 814,800 for the years ended December 31, 2023, 2022 and 2021, respectively.
Scheduled maturities of the Company's available-for-sale debt securities as of December 31, 2023 and 2022 were as follows:
9 unchanged sentences
As such, the Company does not consider these securities to be impaired at December 31, 2023 and has not recorded a credit allowance on these securities.
−Removed: Debt Securities
−Removed: Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Consolidated Statements of Financial Condition.
−Removed: These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) on the Consolidated Statements of Financial Condition and realized gains and losses included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.
−Removed: The Company had net realized gains (losses) of ($ 34 ), ($ 11 ) and $ 75 for the years ended December 31, 2022, 2021 and 2020, respectively.
Equity Securities
5 unchanged sentences
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, as required for broker-dealers in securities.
−Removed: The Company had net realized and unrealized gains (losses) of $ 1,777 , $ 6 and ($ 1,216 ) for the years ended December 31, 2022, 2021 and 2020, respectively.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: The Company had net realized and unrealized gains of $ 216 , $ 1,777 and $ 6 for the years ended December 31, 2023, 2022 and 2021, respectively.
Investment Funds
2 unchanged sentences
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.
−Removed: The Company had net realized and unrealized gains (losses) of ($ 29,778 ), $ 29,025 and $ 16,913 for the years ended December 31, 2022, 2021 and 2020, respectively.
+Added: The Company had net realized and unrealized gains (losses) of $ 31,724 , ($ 29,778 ) and $ 29,025 for the years ended December 31, 2023, 2022 and 2021, respectively (of which $ 26,342 , ($ 45,619 ) and $ 19,470 , respectively, were net unrealized gains (losses)).
Certificates of Deposit
6 unchanged sentences
The Company does not have any leases with variable lease payments.
−Removed: Occupancy and Equipment Rental on the Consolidated Statements of Operations includes operating lease cost for office space of $ 51,913 , $ 49,580 and $ 48,561 for the years ended December 31, 2022, 2021 and 2020, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $ 6,563 , $ 6,062 and $ 7,490 for the years ended December 31, 2022, 2021 and 2020, respectively.
+Added: Occupancy and Equipment Rental on the Consolidated Statements of Operations includes operating lease cost for office space of $ 56,202 , $ 51,913 and $ 49,580 for the years ended December 31, 2023, 2022 and 2021, respectively, and variable lease cost, which principally include costs for real
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: estate taxes, common area maintenance and other operating expenses of $ 5,548 , $ 6,563 and $ 6,062 for the years ended December 31, 2023, 2022 and 2021, respectively.
In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,757 and $ 5,637 as of December 31, 2023 and 2022, respectively, which are secured by cash that is included in Other Assets on the Consolidated Statements of Financial Condition.
11 unchanged sentences
Weighted-average discount rate - operating leases 4.56 % 3.92 %
+Added: In 2023, the Company's lease for certain floors at 55 East 52nd St., New York, New York commenced.
+Added: The lease term will end on December 31, 2035.
+Added: In December 2022, the Company entered into a lease agreement to take on 38 rentable square feet in New York, New York.
+Added: The Company's lease of this space commenced in January 2023 and the lease term will end on December 31, 2035.
+Added: New Right-of-Use Assets obtained in exchange for new operating lease liabilities above for the year ended December 31, 2023 includes $ 174,415 related to these spaces.
As of December 31, 2023, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:
10 unchanged sentences
Long-term lease liabilities $ 434,247
−Removed: In December 2022, the Company entered into a lease agreement to take on 38 rentable square feet in New York, New York.
−Removed: The Company took possession of this space in January 2023.
−Removed: The approximate additional annual expense under this lease agreement, net of certain lease incentives, is $ 2,300 and the lease term will end on December 31, 2035.
−Removed: In conjunction with the lease agreement to expand its headquarters at 55 East 52nd St., New York, New York, and lease agreements at certain other locations, including the lease above, the Company entered into leases for office space which have not yet commenced and thus are not yet included on the Company's Consolidated Statements of Financial Condition as right-of-use assets and lease liabilities.
−Removed: The Company anticipates that it will take possession of these spaces by the end of 2023.
−Removed: These spaces will have lease terms of 3 to 13 years once the Company has taken possession.
+Added: The Company has entered into certain lease agreements which have not yet commenced and thus are not yet included on the Company's Consolidated Statements of Financial Condition as right-of-use assets and lease liabilities.
+Added: The Company anticipates that these leases will commence in 2024 and will have lease terms of 7 years once they have commenced.
The additional future payments under these arrangements are $ 1,314 as of December 31, 2023.
+Added: Further, 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 three floors, which it exercised during 2023.
+Added: The Company entered into a lease agreement for this space in January 2024 and anticipates that it will take possession of this space by the end of 2024.
+Added: The lease term will end on December 31, 2035.
+Added: The expected additional annual expense under this lease agreement, net of certain lease incentives, is $ 9,862 and the expected additional future payments are $ 110,124 .
Note 10 – Investments
−Removed: 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 (through June 25, 2021), Glisco Manager Holdings LP and Trilantic (through September 2021).
+Added: 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 and equity securities in private companies.
The Company's investments are relatively high-risk and illiquid assets.
13 unchanged sentences
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: On December 29, 2011, the Company made an investment accounted for under the equity method of accounting in ABS Investment Management, LLC.
−Removed: 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.
−Removed: 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.
+Added: The Company has an investment accounted for under the equity method of accounting in ABS.
+Added: At December 31, 2023, the Company's ownership interest in ABS was 26 %.
+Added: This investment resulted in earnings of $ 4,132 , $ 4,463 and $ 10,524 for the years ended December 31, 2023, 2022 and 2021, 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.
1 unchanged sentence
The Company received cash of $ 18,300 as consideration for its interests sold and recorded a gain of $ 1,294 for the year ended December 31, 2022, included within Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations.
−Removed: At December 31, 2022, the Company's ownership interest in ABS was 26 %.
−Removed: This investment resulted in earnings of $ 4,463 , $ 10,524 and $ 10,855 for the years ended December 31, 2022, 2021 and 2020, respectively, included within Income from Equity Method Investments on the Consolidated Statements of Operations.
Atalanta Sosnoff
−Removed: On December 31, 2015, the Company amended the Operating Agreement with Atalanta Sosnoff and deconsolidated its assets and liabilities, accounting for its interest under the equity method of accounting from that date forward.
+Added: The Company has an investment accounted for under the equity method of accounting in Atalanta Sosnoff.
At December 31, 2023, the Company's ownership interest in Atalanta Sosnoff was 49 %.
This investment resulted in earnings of $ 1,903 , $ 2,319 and $ 2,300 for the years ended December 31, 2023, 2022 and 2021, respectively, included within Income from Equity Method Investments on the Consolidated Statements of Operations.
−Removed: On January 1, 2017, the Company acquired an interest in Luminis and accounted for its interest under the equity method of accounting.
+Added: The Company has an investment accounted for under the equity method of accounting in Luminis.
At December 31, 2023, the Company's ownership interest in Luminis was 20 %.
3 unchanged sentences
Seneca Evercore
−Removed: 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.
−Removed: The Company accounts for its interest under the equity method of accounting.
+Added: The Company has an investment accounted for under the equity method of accounting in Seneca Evercore.
+Added: At December 31, 2023, the Company's ownership interest in Seneca Evercore was 20 %.
This investment resulted in earnings of $ 230 , $ 404 and $ 3 for the years ended December 31, 2023, 2022 and 2021, respectively, included within Income from Equity Method Investments on the Consolidated Statements of Operations.
3 unchanged sentences
The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 316 for each of the years ended December 31, 2023, 2022 and 2021.
−Removed: The Company assesses its equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.
+Added: The Company assesses each of its equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.
Debt Security Investment
1 unchanged sentence
The Company recorded this investment as a held-to-maturity debt security within Investments on the Consolidated Statement of Financial Condition.
−Removed: These securities were mandatorily redeemable on December 31, 2027, or earlier, subject to the occurrence of certain events.
−Removed: 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.
−Removed: This investment was subject to
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: currency translation from the Brazilian real to the U.S.
−Removed: dollar, included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.
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 Statement of Operations for the year ended December 31, 2021.
5 unchanged sentences
("Trilantic IV"), Trilantic Capital Partners V, L.P.
−Removed: ("Trilantic V") and Trilantic Capital Partners VI (North America), L.P.
+Added: ("Trilantic V") and Trilantic Capital Partners VI
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: (North America), L.P.
("Trilantic VI") (through January 1, 2022).
4 unchanged sentences
Glisco II, Glisco III and Glisco IV $ 4,141 $ 3,602
−Removed: Trilantic IV, Trilantic V and Trilantic VI 1,939 12,210
+Added: Trilantic IV and Trilantic V 1,766 1,939
Total Private Equity Funds $ 5,907 $ 5,541
3 unchanged sentences
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).
−Removed: Consideration for this transaction was received in December 2021 and was reflected in Cash and Cash Equivalents and Other Current Liabilities on the Consolidated Statement of Financial Condition at December 31, 2021.
+Added: Consideration for this transaction was received in December 2021.
This transaction closed on January 1, 2022 and as of that date, the Company has no further commitments to invest in Trilantic VI.
9 unchanged sentences
During 2021, consistent with the Company's investment strategy, the Company decided to wind-down its investment relationship with Trilantic.
−Removed: Accordingly, the Company wrote-off the remaining carrying value of its investment in Trilantic, as well as certain amounts allocated to fund investments exceeding net asset value.
+Added: Accordingly, the Company wrote-off the remaining carrying value of its investment in Trilantic and related assets.
As a result, the Company recorded an aggregate charge of $ 8,554 within Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations for the year ended December 31, 2021.
See above in "Investments in Private Equity" for further information.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
Other Investments
1 unchanged sentence
These investments, which had a balance of $ 636 and $ 604 as of December 31, 2023 and 2022, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.
−Removed: Following the Glisco transaction in 2016, the Company recorded an investment in Glisco Manager Holdings LP representing the fair value of the deferred consideration resulting from this transaction.
−Removed: This investment was accounted for at its cost minus impairment, if any, plus or minus changes resulting from observable price changes.
−Removed: The Company amortized the balance of its investment as distributions were received related to the deferred consideration.
−Removed: This investment was fully amortized as of December 31, 2022 and had a balance of $ 221 as of December 31, 2021.
Note 11 – Fair Value Measurements
−Removed: ASC 820 establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value.
+Added: ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820") establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value.
Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment.
−Removed: Investments with readily-available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
+Added: Investments with readily-available active quoted prices, or for which fair value can be measured from actively
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Investments measured and reported at fair value are classified and disclosed in one of the following categories:
4 unchanged sentences
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.
+Added: The Company also periodically holds foreign exchange currency forward contracts, the estimated fair value of which is based on foreign currency exchange rates provided by external services.
Level 3 – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment.
7 unchanged sentences
Investment Funds 160,559 — — 160,559
+Added: Other — 1,585 — 1,585
Total Assets Measured At Fair Value $ 1,390,584 $ 1,585 $ — $ 1,392,169
7 unchanged sentences
(1) Includes $ 8,557 and $ 7,939 of treasury bills classified within Cash and Cash Equivalents on the Consolidated Statements of Financial Condition as of December 31, 2023 and 2022, respectively.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.
2 unchanged sentences
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.
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
December 31, 2023
8 unchanged sentences
91,246 — 90,876 — 90,876
−Removed: Receivable from Employees and Related Parties 21,914 — 21,914 — 21,914
Closely-held Equity Securities 636 — — 636 636
13 unchanged sentences
118,496 — 117,701 — 117,701
−Removed: Receivable from Employees and Related Parties 25,208 — 25,208 — 25,208
Closely-held Equity Securities 604 — — 604 604
5 unchanged sentences
(2) Includes current and long-term contract assets included in Other Current Assets and Other Assets on the Consolidated Statements of Financial Condition.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
Note 12 – Furniture, Equipment and Leasehold Improvements
7 unchanged sentences
Depreciation and amortization expense for Furniture, Equipment and Leasehold Improvements totaled $ 24,348 , $ 27,377 and $ 27,737 for the years ended December 31, 2023, 2022 and 2021, respectively.
−Removed: In addition, the Company recognized Special Charges, Including Business Realignment Costs, of $ 3,320 for the year ended December 31, 2020, 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.
−Removed: The Company also recorded $ 480 in Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations for the year ended December 31, 2020, for charges related to the impairment of leasehold improvements resulting from the wind-down of the Company's businesses in Mexico.
−Removed: 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 $ 17,044 and $ 11,437 as of December 31, 2023 and 2022, respectively.
−Removed: Amortization expense for capitalized costs associated with cloud computing arrangements was $ 1,670 and $ 1,245 for the years ended December 31, 2022 and 2021, respectively, included within Communications and Information Services on the Consolidated Statements of Operations.
+Added: Amortization expense for capitalized costs associated with cloud computing arrangements was $ 2,631 , $ 1,670 and $ 1,245 for the years ended December
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: 31, 2023, 2022 and 2021, respectively, included within Communications and Information Services on the Consolidated Statements of Operations.
Note 13 – Notes Payable
8 unchanged sentences
On June 28, 2022, the Company prepaid the $ 67,000 aggregate principal amount of its Series B Notes plus the applicable make-whole amount.
−Removed: In conjunction with the June 2022 prepayment and the acceleration of the remaining debt issuance costs, the Company recorded a
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: loss of $ 456 for the year ended December 31, 2022, included within Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations.
+Added: In conjunction with the June 2022 prepayment and the acceleration of the remaining debt issuance costs, the Company recorded a loss of $ 456 for the year ended December 31, 2022, included within Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations.
2019 Private Placement Notes
7 unchanged sentences
As of December 31, 2023, the Company was in compliance with all of these covenants.
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
2021 Private Placement Notes
6 unchanged sentences
On June 28, 2022, the Company issued $ 67,000 aggregate principal amount of its 4.61 % Series J senior notes due November 15, 2028 (the "Series J Notes" or the "2022 Private Placement Notes"), pursuant to a note purchase agreement (the "2022 Note Purchase Agreement") dated as of June 28, 2022, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
Interest on the 2022 Private Placement Notes is payable semi-annually and the 2022 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.
6 unchanged sentences
Evercore Inc.
−Removed: 5.23 % Series B Senior Notes
−Removed: 3/30/2023 5.44 % $ — $ 66,829
−Removed: Evercore Inc.
5.48 % Series C Senior Notes
24 unchanged sentences
As of December 31, 2023, the future payments required on the Notes Payable, including principal and interest, were as follows:
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
2024 $ 16,211
9 unchanged sentences
The Company, at its sole discretion, determines the amount, if any, of profit to be contributed to the Evercore Plan.
−Removed: The Evercore Plan provides for a matching contribution from the Company to be made for eligible participants, as defined by the Evercore Plan.
+Added: The Evercore Plan provides for a discretionary matching contribution from the Company to be made for eligible participants, as defined by the Evercore Plan.
The matching contribution from the Company is made annually pursuant to a discretionary formula.
−Removed: The matching contribution is determined as 100 % of up to 3 % of eligible compensation, defined as salary plus cash bonus
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: compensation, to a maximum of $ 3 per employee.
+Added: The matching contribution is determined as 100 % of up to 3 % of eligible compensation, defined as salary plus cash bonus compensation, to a maximum of $ 3 per employee.
Catch-up contributions are not matched.
−Removed: Participants vest 100 % in the matching contribution from the Company upon completion of three years of service.
−Removed: The Company made contributions to the Evercore Plan of $ 2,188 and $ 2,032 for the years ended December 31, 2022 and 2021, respectively, and no contributions for the year ended December 31, 2020.
+Added: Participants vest 100 % in the discretionary matching contribution from the Company upon completion of three years of service.
+Added: The Company made contributions to the Evercore Plan of $ 2,533 , $ 2,188 and $ 2,032 for the years ended December 31, 2023, 2022 and 2021, respectively.
Evercore Europe Defined Contribution Benefit Plan – Evercore U.K.
21 unchanged sentences
See Note 18 for further information.
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
Self-Funded Medical Insurance Program – Effective January 1, 2023, the Company changed its medical insurance plan in the U.S.
2 unchanged sentences
The Company also maintains stop-loss insurance for its medical plan to provide coverage for claims over a defined financial threshold.
−Removed: As of January 1, 2023, the estimated present value of the liability related to incurred but not reported claims was approximately $ 3,530 .
+Added: The estimated present value of incurred but not reported claims is $ 3,165 as of December 31, 2023, which is included within Accrued Compensation and Benefits on the Consolidated Statement of Financial Condition.
Note 15 – Evercore Inc.
Stockholders' Equity
−Removed: Dividends – The Company's Board of Directors declared on January 31, 2023, a quarterly cash dividend of $ 0.72 per share, to the holders of record of Class A Shares as of February 24, 2023, which will be paid on March 10, 2023.
+Added: Dividends – On January 30, 2024, the Company's Board of Directors declared a quarterly cash dividend of $ 0.76 per share to the holders of record of Class A Shares as of February 23, 2024, which will be paid on March 8, 2024.
During the year ended December 31, 2023, the Company declared and paid dividends of $ 3.00 per share, totaling $ 113,867 , and accrued deferred cash dividends on unvested RSUs totaling $ 17,054 .
4 unchanged sentences
The aggregate 3,001 Class A Shares were purchased at an average cost per share of $ 129.04 and the result of these purchases was an increase in Treasury Stock of $ 387,286 on the Company's Consolidated Statement of Financial Condition as of December 31, 2023.
−Removed: During the year ended December 31, 2021, the Company purchased 995 Class A Shares from employees at an
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: 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.
+Added: During the year ended December 31, 2022, the Company purchased 1,011 Class A Shares from employees at an average cost per share of $ 127.02 , primarily for the net settlement of stock-based compensation awards, and 3,427 Class A Shares at an average cost per share of $ 114.39 pursuant to the Company's share repurchase program.
The aggregate 4,438 Class A Shares were purchased at an average cost per share of $ 117.27 and the result of these purchases was an increase in Treasury Stock of $ 520,465 on the Company's Consolidated Statement of Financial Condition as of December 31, 2022.
3 unchanged sentences
Accumulated Other Comprehensive Income (Loss) – As of December 31, 2023, 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 ($ 5,269 ) and ($ 21,269 ), respectively.
−Removed: 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.
−Removed: See Note 5 for further information.
Note 16 – Noncontrolling Interest
2 unchanged sentences
Noncontrolling ownership interests for the Company's subsidiaries were as follows:
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
As of December 31,
3 unchanged sentences
26 % 26 % 26 %
−Removed: (1) Noncontrolling Interests represent a blended rate for multiple classes of interests in EWM.
−Removed: (2) Noncontrolling Interests represent the Class R Interests of Private Capital Advisory L.P.
+Added: (1) On February 24, 2022, 2,545 Class E LP Units were exchanged for 2,545 Class A Shares, which resulted in a decrease in noncontrolling interest of Evercore LP.
+Added: For further information see " LP Units Exchanged" below.
+Added: (2) Noncontrolling Interests as of December 31, 2022 and 2021 represent a blended rate for multiple classes of interests in EWM.
The Noncontrolling Interests for Evercore LP and EWM have rights, in certain circumstances, to convert into Class A Shares.
1 unchanged sentence
See Note 2 for further information.
−Removed: During the period January 1, 2023 through December 31, 2023, the Company has the option to purchase, at fair value, a portion of the outstanding EWM Class A Units such that the noncontrolling interest holders would continue to hold no less than 25 % of the outstanding units following the transaction.
−Removed: This transaction may be settled in cash, Evercore LP Units or Class A shares of the Company, at the Company’s discretion.
−Removed: If the Company has not exercised its option prior to the end of the option period, or the noncontrolling interest holders continue to hold greater than 25 % of the outstanding units following the transaction, the noncontrolling interest holders may exchange their interests for Evercore LP Units, at fair value, sufficient to reduce their outstanding interest to 25 %.
−Removed: As of December 31, 2022, the EWM members held 26 % of the outstanding EWM Units.
Changes in Noncontrolling Interest for the years ended December 31, 2023, 2022 and 2021 were as follows:
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
For the Years Ended December 31,
13 unchanged sentences
Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($ 268 ), $ 313 and ($ 49 ) for the years ended December 31, 2023, 2022 and 2021, respectively, and foreign currency translation adjustment gains (losses), net, of $ 380 , ($ 1,925 ) and ($ 398 ) for the years ended December 31, 2023, 2022 and 2021, respectively.
−Removed: 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.
−Removed: See Note 5 for further information.
LP Units Exchanged – On February 24, 2022, the Company entered into an agreement (the "Exchange Agreement") with ISI Holding, Inc.
3 unchanged sentences
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.
−Removed: During the year ended December 31, 2022, 2,574 LP Units were exchanged for Class A Shares, including the Class E LP Units described above.
−Removed: This resulted in a decrease to Noncontrolling Interest of $ 159,412 and increases to Additional-Paid-In-Capital and Class A Common Stock of $ 159,386 and $ 26 , respectively, on the Company's Consolidated Statement of Financial Condition as of December 31, 2022.
−Removed: In addition, 242 and 899 LP Units were exchanged for Class A Shares during the years ended December 31, 2021 and 2020, respectively.
−Removed: See Note 15 for further information.
−Removed: 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.
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
+Added: During the year ended December 31, 2023, 178 LP Units were exchanged for Class A Shares.
+Added: This resulted in a decrease to Noncontrolling Interest of $ 11,490 and increases to Class A Common Stock and Additional Paid-In Capital of $ 2 and $ 11,488 , respectively, on the Company's Consolidated Statement of Financial Condition as of December 31, 2023.
+Added: In addition, 2,574 and 242 LP Units were exchanged for Class A Shares during the years ended December 31, 2022 and 2021, respectively.
+Added: See Note 15 for further information.
+Added: 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.
3 unchanged sentences
This purchase resulted in a decrease to Noncontrolling Interest of $ 195 and a decrease to Additional Paid-In Capital of $ 2,959 on the Company's Consolidated Statement of Financial Condition as of December 31, 2022.
+Added: During 2021, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 3,170 .
+Added: 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 .
−Removed: Consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash in 2022, and contingent cash consideration which will be settled in early 2024.
−Removed: The fair value of the remaining contingent consideration is $ 6,119 and $ 20,587 as of December 31, 2022 and 2021, respectively, $ 1,083 of which is included within Other Current Liabilities on the Company's Consolidated Statement of Financial Condition as of December 31, 2022 and the remainder of which is included within Other Long-term Liabilities on the Company's Consolidated Statement of Financial Condition as of December 31, 2022.
+Added: Consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash in 2022, and contingent cash consideration which is due to be settled in early 2024.
+Added: The Company paid $ 1,365 of this contingent cash consideration in 2023.
+Added: The fair value of the remaining contingent consideration is $ 2,023 as of December 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Consolidated Statements of Financial Condition, and $ 6,119 as of December 31, 2022, $ 1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Consolidated Statements of Financial Condition.
The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.
−Removed: The decline in the fair value of contingent consideration in 2022 reduced Other Operating Expenses by $ 14,468 on the Consolidated Statements of Operations.
+Added: The decline in the fair value of contingent consideration reduced Other Operating Expenses by $ 2,366 and $ 14,468 for the years ended December 31, 2023 and 2022, respectively, on the Consolidated Statements of Operations.
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.
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.
−Removed: 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.
−Removed: These payments will also be dependent on the RECA business achieving certain revenue performance targets.
−Removed: 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).
−Removed: 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.
+Added: In conjunction with this transaction, the Company also issued a payment in early 2023 and will issue another payment in early 2024, contingent on continued employment with the Company.
+Added: Accordingly, these payments are treated as compensation expense for accounting purposes in the periods earned.
+Added: These payments are also dependent on the RECA business achieving certain revenue performance targets.
Note 17 – Net Income Per Share Attributable to Evercore Inc.
26 unchanged sentences
Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method (2)
+Added: 1,902 1,605 2,768
Shares that are contingently issuable (3)
12 unchanged sentences
The Company does not anticipate that the Class A, E, I and K LP Units will result in a dilutive computation in future periods.
−Removed: (2) 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.
−Removed: As of December 31, 2022, 2021 and 2020, no Class J LP Units remained issued or outstanding.
−Removed: See Note 18 for further information.
−Removed: During the year ended December 31, 2020, 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.
−Removed: common shareholders under the if-converted method.
−Removed: In computing this adjustment, the Company assumes that all Class J LP Units are converted into Class A Shares.
+Added: (2) During the year ended December 31, 2022, certain shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method, 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.
+Added: common shareholders.
+Added: The shares that would have been included in the treasury stock method calculation if the effect would have been dilutive were 94 for the year ended December 31, 2022.
+Added: (3) The Company previously had outstanding Class I-P Units which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has outstanding Class K-P Units which are contingently exchangeable into Class K LP
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: (3) The Company previously had outstanding Class I-P Units which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has 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.
+Added: Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved.
On March 1, 2022, all of the Class I-P Units converted to Class I LP Units.
7 unchanged sentences
Note 18 – Share-Based and Other Deferred Compensation
−Removed: Equities business – In conjunction with the acquisition of the operating businesses of ISI in 2014, the Company issued Evercore LP units and interests which were treated as compensation.
−Removed: 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.
−Removed: 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.
−Removed: Compensation expense related to the Class J LP Units was $ 1,067 for the year ended December 31, 2020.
−Removed: On February 15, 2020, 223 Class J LP Units vested and were converted to an equal amount of Class E LP Units.
−Removed: Following the conversion, no Class J LP Units remain issued and outstanding.
Class I-P Units – In November 2016, the Company awarded 400 Class I-P Units in conjunction with the appointment of the Chief Executive Officer (then Executive Chairman).
6 unchanged sentences
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.
−Removed: In February 2023, the first tranche of 120 Class K-P Units converted into 193 Class K LP Units upon the achievement of certain performance conditions and service conditions.
+Added: In February 2023, the first tranche of 120 Class K-P Units converted into 193 Class K LP Units upon the achievement of certain performance and service conditions.
+Added: The second tranche of these Class K-P Units may convert into a maximum of 173 Class K LP Units, contingent upon the achievement of defined benchmark results and continued service as described above.
• In December 2021, the Company awarded 400 Class K-P Units to certain employees of the Company.
1 unchanged sentence
As this award contains market, performance and service conditions, the expense for this award will be recognized over the service period of the award and will reflect 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 condition.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: These Class K-P Units may convert into a maximum of 800 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service as described above.
• In December 2022, the Company awarded 200 Class K-P Units to an employee of the Company.
1 unchanged sentence
The first three tranches 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 market conditions and continued service through February 28, 2025, 2026 and 2027, respectively, while the final tranche converts 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 market conditions, defined benchmark results relating to the employee's business and continued service through February 28, 2028.
+Added: As this award contains market, performance and service conditions, the expense for this award will be
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: recognized over the service period of the award and will reflect 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 condition.
+Added: These Class K-P Units may convert into a maximum of 320 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service as described above.
+Added: • In June 2023, the Company awarded 60 Class K-P Units to an employee of the Company.
+Added: 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 market conditions, defined benchmark results and continued service through June 30, 2027.
As this award contains market, performance and service conditions, the expense for this award will be recognized over the service period of the award and will reflect 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 condition.
−Removed: These Class K-P Units in the aggregate may convert into a maximum of 1,500 Class K LP Units, contingent upon the achievement of certain defined benchmarks and continued service, as described above.
+Added: These Class K-P Units may convert into 60 Class K LP Units contingent upon the achievement of certain market conditions and continued service, while additional units may be received in conversion based on a multiple of certain revenues earned.
The Company determined the grant date fair value of these awards probable to vest as of December 31, 2023 to be $ 103,636 , related to 889 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 $ 24,058 , $ 22,672 and $ 8,564 for the years ended December 31, 2023, 2022 and 2021, respectively.
−Removed: As of December 31, 2022, the total compensation cost not yet recognized related to the Class K-P Units, including awards which are subject to performance conditions, based on the value of units currently expected to vest, was $ 78,152 .
+Added: As of December 31, 2023, the total compensation cost not yet recognized related to the Class K-P Units based on the value of units currently expected to vest was $ 57,553 .
The weighted-average period over which this compensation cost is expected to be recognized is 31 months.
−Removed: Class L Interests – In April 2021 and January 2022, 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 received a discretionary distribution of profits from Evercore LP, which was paid in the first quarter of 2022 and 2023, respectively.
−Removed: Distributions pursuant to these interests were 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 and 2022, respectively.
−Removed: Following the distribution, these Class L Interests were cancelled pursuant to their terms.
+Added: Class L Interests – In April 2021, January 2022 and January 2023, 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 received a discretionary distribution of profits from Evercore LP, paid in the first quarters of 2022, 2023 and 2024, respectively.
+Added: Distributions pursuant to these interests are 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, 2022 and 2023, respectively.
+Added: Following the distributions, the Class L Interests are cancelled pursuant to their terms.
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.
2 unchanged sentences
Stock Incentive Plan
−Removed: In 2006 the Company's stockholders and board of directors adopted the Evercore Inc.
−Removed: 2006 Stock Incentive Plan.
−Removed: The total number of Class A Shares which could be issued under this plan was 20,000 .
−Removed: During the second quarter of 2013, the Company's stockholders approved the Amended and Restated 2006 Evercore Inc.
−Removed: Stock Incentive Plan.
−Removed: The amended and restated plan, among other things, authorized an additional 5,000 shares of the Company's Class A Shares.
−Removed: During 2016, the Company's stockholders approved the Amended and Restated 2016 Evercore Inc.
−Removed: Stock Incentive Plan (the "2016 Plan").
−Removed: The 2016 Plan, among other things, authorized an additional 10,000 shares of the Company's Class A Shares.
−Removed: During 2020, the Company's stockholders approved the Amended and Restated 2016 Evercore Inc.
−Removed: Stock Incentive Plan (the "Amended 2016 Plan"), which amended the prior Amended and Restated 2016 Evercore Inc.
−Removed: Stock Incentive Plan.
−Removed: The Amended 2016 Plan, among other things, authorized an additional 6,000 shares of the Company's Class A Shares.
During 2022, the Company's stockholders approved the Second Amended and Restated 2016 Evercore Inc.
−Removed: Stock Incentive Plan (the "Second Amended 2016 Plan"), which amended the Amended 2016 Plan.
−Removed: The Second Amended 2016 Plan, among other things, authorizes an additional 6,500 shares of the Company's Class A Shares.
+Added: Stock Incentive Plan (the "Second Amended 2016 Plan"), which amended the Amended and Restated 2016 Evercore Inc.
+Added: Stock Incentive Plan (the "Amended 2016 Plan").
+Added: The Second Amended 2016 Plan, among other things, authorizes the grant of an additional 6,500 of the Company's Class A Shares.
The Second 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.
+Added: The Company intends to use newly-issued Class A Shares to satisfy any awards under the Second Amended 2016 Plan and its predecessor plan.
+Added: Class A Shares underlying any award granted under the Second 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.
+Added: The total shares available to be granted in the future under the Second Amended 2016 Plan was 5,184 as of December 31, 2023, approximately 1,550 of which were used for RSUs granted in the first quarter of 2024, as described below.
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: Company intends to use newly-issued Class A Shares to satisfy any awards under the Second Amended 2016 Plan and its predecessor plan.
−Removed: Class A Shares underlying any award granted under the Second 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.
−Removed: The total shares available to be granted in the future under the Second Amended 2016 Plan was 7,570 as of December 31, 2022, approximately 2,400 of which were used for RSUs granted in the first quarter of 2023, as described below.
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.
6 unchanged sentences
2023 Equity Grants.
−Removed: During 2022, pursuant to the above Stock Incentive Plans, the Company granted employees 2,978 RSUs that are Service-based Awards.
+Added: During 2023, pursuant to the Second Amended 2016 Plan, the Company granted employees 2,492 RSUs that are Service-based Awards.
Service-based Awards granted during 2023 had grant date fair values of $ 107.89 to $ 148.49 per share, with an average value of $ 135.79 per share and generally vest ratably over four years .
5 unchanged sentences
Granted 2,492 338,363
+Added: Modified ( 1 ) ( 110 )
Forfeited ( 190 ) ( 23,827 )
7 unchanged sentences
2022 Equity Grants.
−Removed: During 2021, pursuant to the above Stock Incentive Plans, the Company granted employees 2,166 RSUs that are Service-based Awards.
+Added: During 2022, the Company granted employees 2,978 RSUs that are Service-based Awards.
Service-based Awards granted during 2022 had grant date fair values of $ 83.34 to $ 137.59 per share, with an average value of $ 123.74 per share, for an aggregate fair value of $ 368,561 .
2 unchanged sentences
2021 Equity Grants.
−Removed: During 2020, pursuant to the above Stock Incentive Plans, the Company granted employees 1,946 RSUs that are Service-based Awards.
+Added: During 2021, the Company granted employees 2,166 RSUs that are Service-based Awards.
Service-based Awards granted during 2021 had grant date fair values of $ 111.03 to $ 154.56 per share, with an average value of $ 119.86 per share, for an aggregate fair value of $ 259,551 .
During 2021, 2,287 Service-based Awards vested and 184 Service-based Awards were forfeited.
−Removed: Compensation expense related to Service-based Awards was $ 192,070 f or the year ended December 31, 2020.
+Added: Compensation expense related to Service-based Awards was $ 211,298 for the year ended December 31, 2021 .
Deferred Cash
−Removed: Deferred Cash Compensation Program – The Company's deferred cash compensation program provides participants the ability to elect to receive a portion of their deferred compensation in cash, which is indexed to notional investment portfolios
+Added: Deferred Cash Compensation Program – The Company's deferred cash compensation program provides participants the ability to elect to receive a portion of their deferred compensation in cash, which is indexed to notional investment portfolios selected by the participant and generally vests ratably over four years and requires payment upon vesting.
+Added: The Company granted $ 162,748 , $ 123,729 and $ 96,511 of deferred cash awards pursuant to the deferred cash compensation program during the years ended December 31, 2023, 2022 and 2021, respectively.
+Added: Compensation expense related to the Company's deferred cash compensation program was $ 151,141 , $ 119,737 and $ 130,767 for the years ended December 31, 2023, 2022 and 2021, respectively.
+Added: As of December 31, 2023, the Company
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: selected by the participant and generally vests ratably over four years and requires payment upon vesting.
−Removed: The Company granted $ 123,729 , $ 96,511 , $ 181,165 and $ 93,366 of deferred cash awards pursuant to the deferred cash compensation program during the years ended December 31, 2022, 2021, 2020 and 2019, respectively.
−Removed: Compensation expense related to the Company's deferred cash compensation program was $ 119,737 , $ 130,767 and $ 112,216 for the years ended December 31, 2022, 2021 and 2020, respectively.
−Removed: As of December 31, 2022, the Company expects to pay an aggregate of $ 304,323 related to the Company's deferred cash compensation program at various dates through 2026 and total compensation expense not yet recognized related to these awards was $ 146,070 .
+Added: expects to pay an aggregate of $ 366,918 related to the Company's deferred cash compensation program at various dates through 2027 and total compensation expense not yet recognized related to these awards was $ 180,002 .
The weighted-average period over which this compensation cost is expected to be recognized is 31 months.
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.
−Removed: Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of the 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, 2021 and 2022, and $ 6,000 is scheduled to vest on March 1, 2023, provided that the Chief Executive Officer continues to remain employed through 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.
−Removed: 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.
+Added: Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of the Chief Executive Officer (then Executive Chairman) with a payment amount of $ 35,000 , of which $ 11,000 vested on March 1, 2019 and $ 6,000 vested on each of March 1, 2020, 2021, 2022 and 2023, upon the achievement of service conditions.
In 2017, the Company granted deferred cash awards of $ 29,500 to certain employees.
9 unchanged sentences
2024 Equity and Deferred Cash Grants
−Removed: During the first quarter of 2023, as part of the 2022 annual awards, the Company granted to certain employees approximately 2,400 unvested RSUs pursuant to the Second Amended 2016 Plan, with a grant date fair value of approximately $ 324,000 .
+Added: During the first quarter of 2024, primarily as part of the 2023 annual awards, the Company granted to certain employees approximately 1,550 unvested RSUs pursuant to the Second Amended 2016 Plan, with a grant date fair value of approximately $ 283,000 .
These awards will generally vest over four years .
2 unchanged sentences
Long-term Incentive Plan
−Removed: 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).
−Removed: Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 48,328 of current liabilities and $ 88,155 of long-term liabilities on the Consolidated Statement of Financial Condition as of December 31, 2022, are due to be paid, in cash or Class A Shares, at the Company's discretion, in the first quarter of 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.
−Removed: The performance period for the 2017 Long-term Incentive Plan ended on December 31, 2020.
−Removed: In conjunction with this plan, the Company distributed cash payments of $ 3,940 in the year ended December 31, 2022, and $ 92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 pursuant to the 2017 Long-term Incentive Plan 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).
−Removed: Awards issued under the 2017 Long-term Incentive Plan are subject to retirement eligibility
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: requirements after the performance criteria has been achieved.
+Added: The Company's Long-term Incentive Plans provide 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", which ended on December 31, 2020) 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).
+Added: The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan, the Company distributed cash payments of $ 48,331 in the year ended December 31, 2023, $ 3,940 in the year ended December 31, 2022 and $ 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).
+Added: Amounts accrued pursuant to the 2021 Long-term Incentive Plan of $ 128,730 are included within Other Long-term Liabilities on the Company's Consolidated Statement of Financial Condition as of December 31, 2023 and may be paid in cash or Class A Shares, at the Company's discretion, in the first quarter of 2025, 2026 and 2027, subject to employment at the time of payment.
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 compensation expense related to the 2017 Long-term Incentive Plan and 2021 Long-term Incentive Plan of $ 40,028 , $ 60,138 and $ 54,066 for the years ended December 31, 2023, 2022 and 2021, respectively.
−Removed: As of December 31, 2022, the total remaining expense to be recognized for the 2017 Long-term Incentive Plan over the future vesting period ending March 15, 2023 is $ 1,358 .
As of December 31, 2023, 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 $ 100,136 .
Employee Loans Receivable
−Removed: 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.
+Added: 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
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: circumstances, subject to the achievement of performance requirements.
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.
11 unchanged sentences
Ending Balance $ 2,824 $ 4,997
−Removed: In conjunction with the ongoing wind-down of the Company's administrative functions in Mexico, for the year ended December 31, 2022, the Company incurred expenses related to separation benefits of $ 2,123 , which are recorded within Special Charges, Including Business Realignment Costs, on the Company's Consolidated Statement of Operations and are included within the above Termination Costs.
−Removed: See Notes 5 and 6 for further information.
−Removed: In addition to the above Termination Costs incurred, for the years ended December 31, 2022 and 2021, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 2,244 and $ 2,434 , respectively, (related to 28 and 34 RSUs, respectively) recorded in Employee Compensation and Benefits, within the Investment Banking & Equities segment, on the Company's Consolidated Statements of Operations.
+Added: In conjunction with the wind-down of the Company's operations in Mexico, for the year ended December 31, 2022, the Company incurred expenses related to separation benefits of $ 2,123 , which are recorded within Special Charges, Including Business Realignment Costs, on the Company's Consolidated Statement of Operations and are included within the above Termination Costs.
+Added: See Note 6 for further information.
+Added: In addition to the above Termination Costs incurred, for the years ended December 31, 2023 and 2022, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 7,895 and $ 2,244 , respectively (related to 76 and 28 RSUs, respectively).
+Added: For the year ended December 31, 2021, the Company incurred Termination Costs of $ 2,780 and expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 2,434 (related to 34 RSUs).
+Added: These expenses are recorded in Employee Compensation and Benefits, within the Investment Banking & Equities segment, on the Company's Consolidated Statements of Operations.
Note 19 – Commitments and Contingencies
2 unchanged sentences
Such commitments are satisfied in cash and are generally required to be made as investment opportunities are consummated by the private equity funds.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
Lines of Credit – Evercore Partners Services East L.L.C.
−Removed: ("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility in an aggregate principal amount, as amended on October 29, 2021, (the "Existing PNC Facility"), of up to $ 30,000 , to be used for working capital and other corporate activities.
+Added: ("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $ 30,000 (the "Existing PNC Facility") to be used for working capital and other corporate activities.
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.
1 unchanged sentence
The Company and its consolidated subsidiaries were in compliance with these covenants as of December 31, 2023.
−Removed: The interest rate provisions are LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date is October 28, 2023.
+Added: The interest rate provisions are Daily SOFR plus 161 basis points and the maturity date is October 27, 2024.
There were no drawings under this facility at December 31, 2023.
−Removed: East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount, as amended on October 29, 2021, of up to $ 55,000 , to be used for working capital and other corporate activities.
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: East entered into an additional loan agreement with PNC for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $ 55,000 to be used for working capital and other corporate activities.
This facility is unsecured.
1 unchanged sentence
The Company and its consolidated subsidiaries were in compliance with these covenants as of December 31, 2023.
−Removed: Drawings under this facility bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date is October 28, 2023.
+Added: The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 27, 2024.
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 were no drawings under this facility at December 31, 2023.
−Removed: EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount, as amended on October 31, 2022, of up to $ 75,000 , to be used as needed in support of capital requirements from time to time of EGL.
+Added: EGL entered into a subordinated revolving credit facility with PNC, as amended on November 6, 2023, 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.
6 unchanged sentences
from employees of the RECA business in 2021.
−Removed: The Company’s consideration for this transaction included contingent cash consideration which will be settled in 2024.
−Removed: The remaining contingent consideration had a fair value of $ 6,119 and $ 20,587 as of December 31, 2022 and 2021, respectively, $ 1,083 of which is included within Other Current Liabilities on the Consolidated Statement of Financial Condition as of December 31, 2022, and the remainder of which is included within Other Long-term Liabilities on the Consolidated Statement of Financial Condition as of December 31, 2022.
+Added: Consideration for this transaction includes contingent cash consideration which is due to be settled in early 2024.
+Added: The Company paid $ 1,365 of this contingent cash consideration in 2023.
+Added: The fair value of the remaining contingent consideration is $ 2,023 as of December 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Consolidated Statements of Financial Condition, and $ 6,119 as of December 31, 2022, $ 1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Consolidated Statements of Financial Condition.
The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.
See Note 16 for further information.
−Removed: The Company enters into commitments to pay contingent consideration related to certain of its acquisitions.
−Removed: 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.
−Removed: The contingent consideration was fully paid as of December 31, 2021.
Restricted Cash – The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statements of Financial Condition that sum to the total of amounts shown in the Consolidated Statements of Cash Flows:
3 unchanged sentences
Total Cash, Cash Equivalents and Restricted Cash shown in the Statement of Cash Flows $ 605,484 $ 672,123 $ 587,293
+Added: Restricted Cash included in Other Assets on the Consolidated Statements of Financial Condition primarily represents letters of credit which are secured by cash as collateral for the lease of office space and security deposits for certain equipment.
+Added: The restrictions will lapse when the leases end.
+Added: Foreign Exchange – Periodically, the Company enters into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments.
+Added: The Company entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30,000 British Pounds sterling for $ 36,903 , which settled during the third quarter of 2023, and resulted in a loss of $ 303 .
+Added: Upon settlement, the Company entered into a new foreign currency exchange forward contract to buy 30,000 British Pounds sterling for $ 36,675 , which will settle in the first quarter of 2024.
+Added: The contract is recorded at its fair value of $ 1,585 as of December 31, 2023, and is included within Other Current Assets on the Consolidated Statement of Financial Condition.
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: Restricted Cash included in Other Assets on the Consolidated Statements of Financial Condition primarily represents letters of credit which are secured by cash as collateral for the lease of office space and security deposits for certain equipment.
−Removed: The restrictions will lapse when the leases end.
−Removed: Futures Contracts – In February 2020, the Company entered into four-month futures contracts on a stock index fund with a notional amount of $ 38,908 as an economic hedge against the Company's deferred cash compensation program.
−Removed: This contract settled in June 2020.
−Removed: In accordance with ASC 815, this contract was carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments , on the Consolidated Statements of Operations.
−Removed: The Company had realized losses of ($ 3,998 ) for the year ended December 31, 2020.
Contingencies
21 unchanged sentences
Taxes Payable as of December 31, 2023 and 2022 were $ 5,424 and $ 9,842 , respectively.
+Added: In October 2021, members of the Organization for Economic Co-operation and Development ("OECD") agreed on a two-pillar tax framework to realign international taxation with economic activities, including a coordinated set of rules designed to ensure large multinational enterprises pay a minimum 15% tax rate across all jurisdictions, known as Pillar Two.
+Added: The implications of these rules begin to take effect for corporations in 2024, as jurisdictions enact legislation in line with the OECD rules and related guidance.
+Added: The Company is evaluating the current and proposed legislation of Pillar Two and does not expect it to materially impact the Company's effective tax rate in the future.
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, 2023, 2022 and 2021, no additional income tax expense associated with the GILTI provisions has been recognized.
−Removed: The following table presents the U.S.
−Removed: components of Income before income tax expense:
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
+Added: The following table presents the U.S.
+Added: components of Income before income tax expense:
For the Years Ended December 31,
33 unchanged sentences
The effective tax rate for the years ended December 31, 2023, 2022 and 2021 reflects the application of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), 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.
−Removed: The Company's Provision for Income Taxes reflects an additional tax benefit of $ 19,633 and $ 18,664 for the years ended December 31, 2022 and 2021, 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 2.8 and 1.7 percentage points for the years ended December 31, 2022 and 2021, respectively.
−Removed: The effective tax rate for 2022, 2021 and 2020 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.
+Added: The Company's Provision for Income Taxes reflects an additional tax benefit of $ 13,699 , $ 19,633 and $ 18,664 for the years ended December 31, 2023, 2022 and 2021, respectively, related to the application of ASU 2016-09, and resulted in a reduction in the effective tax rate of 3.7 , 2.8 and 1.7 percentage points for the years ended December 31, 2023, 2022 and 2021, respectively.
+Added: The effective tax rate for 2023, 2022 and 2021 also
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: Due to the enactment of the Tax Cuts and Jobs Act on December 22, 2017, the previous undistributed earnings of certain foreign subsidiaries are subject to a mandatory deemed repatriation tax.
−Removed: Income taxes paid or payable to foreign jurisdictions partially reduce the repatriation tax as a foreign tax credit, based on a formula that includes earnings of certain foreign subsidiaries.
−Removed: The Company has computed the repatriation tax and determined that it should have sufficient foreign tax credits to offset the estimated charge;
−Removed: any additional liability would be immaterial.
+Added: reflects the effect of certain nondeductible expenses, including expenses related to Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.
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.
20 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.
−Removed: The $ 9,089 increase in net deferred tax assets from December 31, 2021 to December 31, 2022 was primarily related to additions to deferred compensation expense exceeding the grant date value of prior awards which vested during the period, included in Compensation and Benefits, 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.
−Removed: In addition, as of December 31, 2022, management weighted both the positive and negative evidence and concluded that it was appropriate to increase the valuation allowance by $ 2,218 , which is primarily attributable to the wind-down of our administrative functions in Mexico.
+Added: The $ 8,648 increase in net deferred tax assets from December 31, 2022 to December 31, 2023 was primarily related to additions to deferred compensation expense exceeding the grant date value of prior awards which vested during the period, included in Compensation and Benefits, partially offset by the impact of excess amortization over the current year step-up in the basis of the tangible and intangible assets of Evercore LP, as discussed below.
+Added: In addition, as of December 31, 2023, management weighted both the positive and negative evidence and concluded that it was appropriate to increase the valuation allowance by $ 1,134 , which is primarily attributable to the wind-down of the Company's operations in Mexico.
During 2023, the LP holders exchanged 89 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.
−Removed: The Company recorded a decrease in deferred tax assets of $ 1,120 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 6,900 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2022.
−Removed: The Company recorded an increase in deferred tax assets of $ 93 associated with changes in Unrealized Gain (Loss) on Securities and
+Added: The Company recorded an increase in deferred tax assets of $ 973 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 1,585 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2023.
+Added: The Company recorded a decrease in deferred tax assets of $ 1,120 associated with changes in Unrealized Gain (Loss) on Securities and Investments and
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: 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.
+Added: an increase of $ 6,900 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2022.
A reconciliation of the changes in tax positions for the years ended December 31, 2023, 2022 and 2021 is as follows:
11 unchanged sentences
Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 61 and $ 17 , respectively, during the year ended December 31, 2022.
−Removed: 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.
−Removed: In addition, during the year ended December 31, 2021, 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, 2021, there were $ 254 of unrecognized tax benefits that, if recognized, $ 206 would affect the effective tax rate.
1 unchanged sentence
and various state, local and foreign jurisdictions.
−Removed: The Company and its affiliates are currently under examination by the U.S.
−Removed: Internal Revenue Service for tax year 2019, Illinois for tax years 2018 through 2019 and New York City for tax years 2014 through 2017.
+Added: The Company and its affiliates are currently under examination by Illinois for tax years 2018 through 2019, New York City for tax years 2014 through 2017 and Pennsylvania for tax years 2020 through 2021.
With a few exceptions, the Company is no longer subject to U.S.
14 unchanged sentences
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.
−Removed: The Company's 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
+Added: The Company's 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 certain fees related to private funds capital raising and the private capital businesses, a portion of which may be collected in a period exceeding one year (see Note 4 for further information).
+Added: The collection period for restructuring transaction receivables may exceed 90 days.
+Added: Receivables that are collected in a period exceeding one year are reflected in Other Assets on the Consolidated Statements of Financial Condition.
EVERCORE INC.
1 unchanged sentence
(amounts in thousands, except per share amounts, unless otherwise noted)
−Removed: capital raising and certain fees related to the private capital businesses, which are collected in a period exceeding one year .
−Removed: The collection period for restructuring transaction receivables may exceed 90 days.
−Removed: Receivables that are collected in a period exceeding one year are reflected in Other Assets on the Consolidated Statements of Financial Condition.
At December 31, 2023 and 2022, total receivables recorded in Accounts Receivable amounted to $ 371,606 and $ 385,131 , respectively, net of an allowance, and total receivables recorded in Other Assets amounted to $ 93,689 and $ 64,139 , respectively.
12 unchanged sentences
The Investment Banking & Equities segment 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.
−Removed: During 2022, the Company renamed its "Investment Banking" segment to "Investment Banking & Equities." The renaming of this segment did not result from changes to the overall business structure or reporting.
−Removed: The Investment Management segment includes Wealth Management and interests in private equity funds which are not managed by the Company, and the historical results include Institutional Asset Management.
−Removed: The Company completed the sales of its ECB businesses in 2020.
−Removed: In addition, 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.
−Removed: See Note 5 for further information.
+Added: The Investment Management segment includes Wealth Management and interests in private equity funds which are not managed by the Company.
The Company's segment information for the years ended December 31, 2023, 2022 and 2021 is prepared using the following methodology:
4 unchanged sentences
Other Revenue, net, included in each segment's Net Revenues includes the following:
−Removed: • 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 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full.
+Added: • Interest income, including accretion, and income (losses) on investment securities, including the Company's investment funds (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 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full.
See Note 10 for further information.)
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
• A gain on the sale of a portion of the Company's interests in ABS in 2022.
See Note 10 for further information
−Removed: • Gains (losses) resulting from foreign currency exchange rate fluctuations
+Added: • Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge
• Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company
−Removed: • 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)
−Removed: • 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
+Added: EVERCORE INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: (amounts in thousands, except per share amounts, unless otherwise noted)
+Added: • Interest expense associated with the Company’s Notes Payable and lines of credit
• Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates
2 unchanged sentences
Such administrative services include, but are not limited to, accounting, tax, legal, technology, human capital, facilities management and senior management activities.
−Removed: Other Expenses includes the following:
−Removed: • 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
−Removed: • Special Charges, Including Business Realignment Costs – Includes the following expenses:
−Removed: ◦ 2022 – Includes expenses related to charges associated with the prepayment of the Company's Series B Notes, as well as certain professional fees, separation benefits and other charges related to the ongoing wind-down of the Company's administrative functions in Mexico
−Removed: ◦ 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 investment strategy, the Company decided to wind-down during 2021
−Removed: ◦ 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
−Removed: • 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
−Removed: • Intangible Asset and Other Amortization – Includes amortization of intangible assets and other purchase accounting-related amortization associated with certain acquisitions
+Added: Other Expenses include the following:
+Added: • Special Charges, Including Business Realignment Costs – Includes the following:
+Added: ◦ 2023 – Expenses related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico
+Added: ◦ 2022 – Expenses related to charges associated with the prepayment of the Company's Series B Notes, as well as certain professional fees, separation benefits and other charges related to the wind-down of the Company's operations in Mexico
+Added: ◦ 2021 – Expenses related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's investment strategy, the Company decided to wind-down during 2021
+Added: • 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
The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses.
21 unchanged sentences
Other Expenses (2)
−Removed: Operating Income (Loss) 12,956 4,427 ( 4,299 )
+Added: Operating Income 16,870 12,956 4,427
Income from Equity Method Investments 6,035 6,782 12,824
18 unchanged sentences
$ 78,281 $ ( 25,668 ) $ 19,370
−Removed: Investment Management (B)
−Removed: 1,440 ( 174 ) ( 7,878 )
+Added: Investment Management 2,965 1,440 ( 174 )
Total Other Revenue, net $ 81,246 $ ( 24,228 ) $ 19,196
(A) Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $ 16,717 , $ 16,850 and $ 17,586 for the years ended December 31, 2023, 2022 and 2021, respectively.
−Removed: 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.
−Removed: (B) Other Revenue, net, from the Investment Management segment 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:
2 unchanged sentences
Investment Banking & Equities
−Removed: Amortization of LP Units and Certain Other Awards $ — $ — $ 1,067
Special Charges, Including Business Realignment Costs $ 2,921 $ 3,126 $ —
Acquisition and Transition Costs — — 7
−Removed: Intangible Asset and Other Amortization — — 1,183
Total Investment Banking & Equities 2,921 3,126 7
1 unchanged sentence
Special Charges, Including Business Realignment Costs — — 8,554
−Removed: Acquisition and Transition Costs — — 300
Total Investment Management — — 8,554
10 unchanged sentences
(1) Excludes Other Revenue, Including Interest and Investments, and Interest Expense.
−Removed: EVERCORE INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (amounts in thousands, except per share amounts, unless otherwise noted)
The Company's total assets are located in the following geographical areas:
20 unchanged sentences
Payable to Related Party $ 10,522 $ 10,417
−Removed: Taxes Payable — 13,075
Other Current Liabilities 3,304 3,287
87 unchanged sentences
At December 31, 2023, the Company has issued 82,114 Class A Shares.
−Removed: The Company canceled four shares of Class B common stock, which were held by limited partners of Evercore LP, and granted one share of Class B common stock during 2022.
+Added: The Company canceled one share of Class B common stock, which was held by a limited partner of Evercore LP, and granted one share of Class B common stock during 2023.
During 2023, the Company purchased 968 Class A Shares from employees at an average cost per share of $ 131.53 , primarily for the net settlement of stock-based compensation awards, and 2,033 Class A Shares at an average cost per share of $ 127.85 pursuant to the Company's share repurchase program.
6 unchanged sentences
On March 30, 2016, the Company issued an aggregate of $ 170,000 of senior notes (the "2016 Private Placement Notes"), including:
−Removed: $ 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 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.
+Added: $ 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 originally 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 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.
19 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.