Evercore Financial Performance and Governance
U.S. GAAP Reconciliation to Adjusted Results (Unaudited)
Footnotes
1.
Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation.
2.
Interest Expense on Debt is excluded from Net Revenues and presented below Operating Income in the Adjusted results and is included in Interest
Expense on a U.S. GAAP Basis.
3.
The gain on the sale of a portion of the Company's interests in ABS in the first quarter of 2022 is excluded from the Adjusted presentation.
4.
The gain resulting from the redemption of the G5 debt security in the second quarter of 2021 is excluded from the Adjusted presentation.
5.
6.
7.
8.
9.
The net loss resulting from the gain on the sale of the ECB Trust business and the loss on the sale of the remaining ECB business in the third and fourth
quarters of 2020, respectively, is excluded from the Adjusted presentation.
Release of cumulative foreign exchange losses in the fourth quarter of 2020 resulting from the sale and wind-down of our businesses in Mexico are
excluded from the Adjusted presentation.
The gain resulting from the sale of the Institutional Trust and Independent Fiduciary business of ETC in the fourth quarter of 2017 is excluded from the
Adjusted presentation.
Release of cumulative foreign exchange losses resulting from the restructuring of our former equity method investment in G5 in the fourth quarter of 2017
are excluded from the Adjusted presentation.
The gain resulting from the transfer of ownership of the Mexican Private Equity business in the third quarter of 2016 is excluded from the Adjusted
presentation.
10. The exclusion from the Adjusted presentation of expenses associated with amortization of intangible assets and other purchase accounting-related
amortization from the acquisitions of ISI, SFS and certain other acquisitions.
11. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent.
Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result,
not all of the Company's income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted
earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common
stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP's noncontrolling interest
holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that
certain state and local taxes are reduced accordingly. Excluded from the Company's Adjusted results are adjustments, described below, related to the
impact of the enactment of the Tax Cuts and Jobs Act that was signed into law on December 22, 2017, which resulted in a reduction in income tax rates in
the U.S. in 2018 and in future years. The enactment of this tax reform resulted in a charge to the Provision for Income Taxes for the fourth quarter of 2017
of $143.3 million primarily resulting from the estimated re-measurement of net deferred tax assets, which relates principally to temporary differences from
the step-up in basis associated with the exchange of partnership units, deferred compensation, accumulated other comprehensive income and depreciation
of fixed assets and leasehold improvements. The tax reform also resulted in an estimated adjustment to Other Revenue for the fourth quarter of 2017 of
$77.5 million related to the re-measurement of amounts due pursuant to our tax receivable agreement, which was reduced due to the lower enacted
income tax rates in the U.S. in 2018 and in future years.
EVERCORE
22
22View entire presentation