Note 18. Segment Information
Artisan operates as one segment in the investment management business. The Company’s Chief Operating Decision Maker (the “CODM”) is its Chief Executive Officer and President, who reviews financial information on a consolidated basis for purposes of allocating resources and assessing financial performance. The CODM uses consolidated Net Income attributable to Artisan Partners Asset Management as presented within the Consolidated Statements of Operations (“net income”), among other consolidated metrics, to evaluate segment performance. Based on net income, as well as the other metrics, the CODM determines whether to use profits to invest in growth initiatives or return cash to shareholders through dividends while considering the level of resources available through review of “Total assets” as presented within the consolidated statements of financial condition. The CODM reviews significant segment expenses at a level consistent with that presented in the Consolidated Statements of Operations with the exception of Compensation and Benefits which is reviewed at a more disaggregated level as presented in the table below for the years ended December 31, 2025, 2024 and 2023.
| | | | | | | | | | | | | | | | | |
| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Salaries | 100,868 | | | 99,070 | | | 93,528 | |
| Incentive compensation | 402,275 | | | 375,862 | | | 332,208 | |
| Benefits and payroll taxes | 49,416 | | | 46,130 | | | 44,133 | |
| Long-term incentive compensation | 73,965 | | | 65,282 | | | 54,751 | |
| Market valuation changes in compensation plans | 23,055 | | | 7,781 | | | 4,775 | |
| Total compensation and benefits | $ | 649,579 | | | $ | 594,125 | | | $ | 529,395 | |
Artisan generates a portion of its revenues from clients domiciled in countries outside the United States. Revenues by geographic location based on client domicile for the years ended December 31, 2025, 2024 and 2023 were as follows: | | | | | | | | | | | | | | | | | |
| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| U.S. | $ | 956,799 | | | $ | 894,543 | | | $ | 794,847 | |
| Non-U.S. | 239,889 | | | 217,259 | | | 180,284 | |
| Total revenues | $ | 1,196,688 | | | $ | 1,111,802 | | | $ | 975,131 | |
The following table sets forth Artisan’s long-lived assets, which consist of net property and equipment and operating lease assets, by geographic area: | | | | | | | | | | | |
| As of December 31, 2025 | | As of December 31, 2024 |
| U.S. | $ | 129,829 | | | $ | 114,717 | |
| Non-U.S. | 8,469 | | | 10,119 | |
| Total long-lived assets | $ | 138,298 | | | $ | 124,836 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.