Segment and Geographic Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

22. Segment and Geographic Information

Segment Information

The Company’s business segments are determined based on the products and services provided and reflect the manner in which financial information is evaluated by management. The Company’s operations consist of two reportable segments, Financial Services and Real Estate Services.

The Company’s Financial Services segment specializes in the brokerage of a broad range of products, including fixed income (rates and credit), foreign exchange, equities, energy and commodities, and futures. It also provides a wide range of services, including trade execution, broker-dealer services, clearing, trade compression, post trade, information, and other back-office services to a broad range of financial and non-financial institutions. The Company’s Real Estate Services segment offers commercial real estate tenants, owners, investors and developers a wide range of services, including leasing and corporate advisory, investment sales and real estate finance, consulting, project and development management, and property and facilities management.

The Company evaluates the performance and reviews the results of the segments based on each segment’s “Income (loss) from operations before income taxes.”

The amounts shown below for the Financial Services and Real Estate Services segments reflect the amounts that are used by management to allocate resources and assess performance, which is based on each segment’s “Income (loss) from operations before income taxes.” In addition to the two business segments, the tables below include a “Corporate Items” category. Corporate revenues include fees from related parties and interest income as well as gains that are not considered part of the Company’s ordinary, ongoing business, such as the realized gain related to the GFI shares owned by the Company prior to the completion of the tender offer to acquire GFI on February 26, 2015 and the gain related to the disposition of the equity interests in the entities that make up the Trayport business. Corporate expenses include non-cash compensation expenses (such as the grant of exchangeability to limited partnership units; redemption/exchange of partnership units, issuance of restricted shares and a reserve on compensation-related partnership loans; and allocations of net income to limited partnership units and FPUs), as well as unallocated expenses, such as certain professional and consulting fees, executive compensation and interest expense, which are managed separately at the corporate level.

Certain financial information for the Company’s segments is presented below. Certain reclassifications have been made to previously reported amounts to conform to the current presentation. See Note 16—“Goodwill and Other Intangible Assets, Net,” for goodwill by reportable segment.

Three months ended June 30, 2016 (in thousands):

	Financial Services		Real Estate Services		Corporate Items		Total
Brokerage revenues:
Rates	$	120,678	$	—	$	—	$	120,678
Credit		77,330		—		—		77,330
Foreign exchange		76,835		—		—		76,835
Energy and commodities		57,306		—		—		57,306
Equities and other asset classes		45,593		—		—		45,593
Leasing and other services		—		124,555		—		124,555
Real estate capital markets		—		82,739		—		82,739
Real estate management services		—		45,529		—		45,529
Fees from related parties		—		—		4,865		4,865
Data, software and post-trade		12,448		—		—		12,448
Other revenues		100		76		129		305
Total non-interest revenues		390,290		252,899		4,994		648,183
Interest income		640		863		2,274		3,777
Total revenues		390,930		253,762		7,268		651,960

Interest expense		—			—		14,624			14,624
Non-interest expenses		336,678			229,032		51,027			616,737
Total expenses		336,678			229,032		65,651			631,361
Other income (losses), net:
Gains (losses) on equity investments		—			—		500			500
Other income (losses)		(1,326	)		—		11,338			10,012
Total other income (losses), net		(1,326	)		—		11,838			10,512
Income (loss) from operations before income taxes	$	52,926		$	24,730	$	(46,545	)	$	31,111

Three months ended June 30, 2015 (in thousands):

	Financial Services			Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	126,798		$	—	$	—		$	126,798
Credit		73,814			—		—			73,814
Foreign exchange		85,976			—		—			85,976
Energy and commodities		54,843			—		—			54,843
Equities and other asset classes		50,329			—		—			50,329
Leasing and other services		—			130,221		—			130,221
Real estate capital markets		—			61,178		—			61,178
Real estate management services		—			46,528		—			46,528
Fees from related parties		83			—		6,012			6,095
Data, software and post-trade		27,693			—		—			27,693
Other revenues		1,858			445		192			2,495
Total non-interest revenues		421,394			238,372		6,204			665,970
Interest income		327			325		2,509			3,161
Total revenues		421,721			238,697		8,713			669,131
Interest expense		185			12		18,242			18,439
Non-interest expenses		366,451			211,650		58,360			636,461
Total expenses		366,636			211,662		76,602			654,900
Other income (losses), net:
Gains (losses) on divestiture and sale of investments		—			—		894			894
Gains (losses) on equity investments		—			—		833			833
Other income (losses)		(2,097	)		—		3,428			1,331
Total other income (losses), net		(2,097	)		—		5,155			3,058
Income (loss) from operations before income taxes	$	52,988		$	27,035	$	(62,734	)	$	17,289

Six months ended June 30, 2016 (in thousands):

	Financial Services		Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	240,297	$	—	$	—		$	240,297
Credit		162,245		—		—			162,245
Foreign exchange		159,303		—		—			159,303
Energy and commodities		121,704		—		—			121,704
Equities and other asset classes		93,959		—		—			93,959
Leasing and other services		—		230,182		—			230,182
Real estate capital markets		—		144,872		—			144,872
Real estate management services		—		91,587		—			91,587
Fees from related parties		—		—		11,935			11,935
Data, software and post-trade		24,765		—		—			24,765
Other revenues		3,496		76		415			3,987
Total non-interest revenues		805,769		466,717		12,350			1,284,836
Interest income		1,150		1,525		3,485			6,160
Total revenues		806,919		468,242		15,835			1,290,996
Interest expense		—		—		28,082			28,082
Non-interest expenses		678,103		427,606		113,116			1,218,825
Total expenses		678,103		427,606		141,198			1,246,907
Other income (losses), net:
Gains (losses) on equity investments		—		—		1,058			1,058
Other income (losses)		9,646		—		(2,551	)		7,095
Total other income (losses), net		9,646		—		(1,493	)		8,153
Income (loss) from operations before income taxes	$	138,462	$	40,636	$	(126,856	)	$	52,242

Six months ended June 30, 2015 (in thousands):

	Financial Services		Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	249,549	$	—	$	—		$	249,549
Credit		140,687		—		—			140,687
Foreign exchange		161,608		—		—			161,608
Energy and commodities		84,250		—		—			84,250
Equities and other asset classes		83,412		—		—			83,412
Leasing and other services		—		233,784		—			233,784
Real estate capital markets		—		114,920		—			114,920
Real estate management services		—		87,130		—			87,130
Fees from related parties		108		—		12,593			12,701
Data, software and post-trade		39,220		—		—			39,220
Other revenues		3,517		639		415			4,571
Total non-interest revenues		762,351		436,473		13,008			1,211,832
Interest income		723		613		3,530			4,866
Total revenues		763,074		437,086		16,538			1,216,698
Interest expense		657		12		33,672			34,341
Non-interest expenses		643,433		393,803		126,408			1,163,644
Total expenses		644,090		393,815		160,080			1,197,985
Other income (losses), net:
Gains (losses) on divestiture and sale of investments		—		—		679			679
Gains (losses) on equity investments		—		—		1,636			1,636
Other income (losses)		836		—		31,695			32,531
Total other income (losses), net		836		—		34,010			34,846
Income (loss) from operations before income taxes	$	119,820	$	43,271	$	(109,532	)	$	53,559

Total assets by reportable segment (in thousands):

Total Assets1	Financial Services		Real Estate Services		Total
At June 30, 2016	$	4,382,364	$	730,020	$	5,112,384
At December 31, 2015	$	3,296,815	$	694,639	$	3,991,454

¹  Corporate assets have been fully allocated to the Company’s business segments.

Geographic Information

The Company offers products and services in the U.S., U.K., Asia (including Australia), France, Other Americas, Other Europe, and the Middle East and Africa region (defined as the “MEA” region). Information regarding revenues for the three months and six months ended June 30, 2016 and 2015, respectively, is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues:
United States	$	373,835	$	378,145	$	728,909	$	685,085
United Kingdom		161,444		172,070		325,271		313,774
Asia		52,704		58,689		109,455		107,307
France		25,271		22,697		50,838		43,524
Other Americas		14,756		14,295		29,363		26,729
Other Europe/MEA		23,950		23,235		47,160		40,279
Total revenues	$	651,960	$	669,131	$	1,290,996	$	1,216,698

Information regarding long-lived assets (defined as loans, forgivable loans and other receivables from employees and partners, net; fixed assets, net; certain other investments; goodwill; other intangible assets, net of accumulated amortization; and rent and other deposits) in the geographic areas as of June 30, 2016 and December 31, 2015, respectively, is as follows (in thousands):

	June 30,		December 31,
	2016		2015
Long-lived assets:
United States	$	1,231,564	$	1,145,876
United Kingdom		168,310		164,970
Asia		29,156		28,368
France		6,466		6,964
Other Americas		17,733		16,135
Other Europe/MEA		6,163		6,277
Total long-lived assets	$	1,459,392	$	1,368,590