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Segment Reporting
9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting

Basis for Presentation

The Company structures its segments primarily based upon the nature of the financial products and services provided to customers and the Company’s management organization. The Company evaluates performance and allocates resources based on segment pre-tax operating income or loss and segment pre-tax operating margin. Revenues and expenses directly associated with each respective segment are included in determining their operating results. Other revenues and expenses that are not directly attributable to a particular segment are allocated based upon the Company’s allocation methodologies, including each segment’s respective net revenues, use of shared resources, headcount or other relevant measures. The financial management of assets is performed on an enterprise-wide basis. As such, assets are not assigned to the business segments.

Segment pre-tax operating income and segment pre-tax operating margin exclude the results of discontinued operations.

Reportable segment financial results from continuing operations are as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(Dollars in thousands)
2013
 
2012
 
2013
 
2012
Capital Markets
 
 
 
 
 
 
 
Investment banking
 
 
 
 
 
 
 
Financing
 
 
 
 
 
 
 
Equities
$
30,010

 
$
18,781

 
$
66,085

 
$
55,141

Debt
12,808

 
16,573

 
51,971

 
53,598

Advisory services
20,215

 
16,317

 
39,180

 
41,670

Total investment banking
63,033

 
51,671

 
157,236

 
150,409

 
 
 
 
 
 
 
 
Institutional sales and trading
 
 
 
 
 
 
 
Equities
22,960

 
17,927

 
65,087

 
55,589

Fixed income
20,437

 
46,690

 
53,439

 
95,773

Total institutional sales and trading
43,397

 
64,617

 
118,526

 
151,362

 
 
 
 
 
 
 
 
Other income/(loss)
3,833

 
(1,039
)
 
7,519

 
(2,141
)
 
 
 
 
 
 
 
 
Net revenues
110,263

 
115,249

 
283,281

 
299,630

 
 
 
 
 
 
 
 
Operating expenses (1)
103,906

 
94,671

 
266,301

 
266,529

 
 
 
 
 
 
 
 
Segment pre-tax operating income
$
6,357

 
$
20,578

 
$
16,980

 
$
33,101

 
 
 
 
 
 
 
 
Segment pre-tax operating margin
5.8
%
 
17.9
%
 
6.0
%
 
11.0
%
 
 
 
 
 
 
 
 
Asset Management
 
 
 
 
 
 
 
Management and performance fees
 
 
 
 
 
 
 
Management fees
$
17,547

 
$
15,800

 
$
52,212

 
$
47,213

Performance fees
60

 
22

 
716

 
664

Total management and performance fees
17,607

 
15,822

 
52,928

 
47,877

 
 
 
 
 
 
 
 
Other income
444

 
434

 
1,410

 
534

 
 
 
 
 
 
 
 
Net revenues
18,051

 
16,256

 
54,338

 
48,411

 
 
 
 
 
 
 
 
Operating expenses (1)
12,348

 
11,482

 
37,757

 
35,283

 
 
 
 
 
 
 
 
Segment pre-tax operating income
$
5,703

 
$
4,774

 
$
16,581

 
$
13,128

 
 
 
 
 
 
 
 
Segment pre-tax operating margin
31.6
%
 
29.4
%
 
30.5
%
 
27.1
%
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
Net revenues
$
128,314

 
$
131,505

 
$
337,619

 
$
348,041

 
 
 
 
 
 
 
 
Operating expenses (1)
116,254

 
106,153

 
304,058

 
301,812

 
 
 
 
 
 
 
 
Pre-tax operating income
$
12,060

 
$
25,352

 
$
33,561

 
$
46,229

 
 
 
 
 
 
 
 
Pre-tax operating margin
9.4
%
 
19.3
%
 
9.9
%
 
13.3
%
(1)
Operating expenses include intangible asset amortization expense as set forth in the table below:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(Dollars in thousands)
2013
 
2012
 
2013
 
2012
Capital Markets
$
1,238

 
$

 
$
1,238

 
$

Asset Management
1,661

 
1,736

 
4,983

 
5,208

Total intangible asset amortization expense
$
2,899

 
$
1,736

 
$
6,221

 
$
5,208


Geographic Areas

The Company operates in both U.S. and non-U.S. markets. The Company’s non-U.S. business activities are principally conducted through European locations. Net revenues and long-lived assets for the Company's Asian locations were not significant. Net revenues disclosed in the following table reflect the regional view, with financing revenues allocated to geographic locations based upon the location of the capital market, advisory revenues allocated based upon the location of the investment banking team and net institutional sales and trading revenues allocated based upon the location of the client. Asset management revenues are allocated to the U.S. based upon the geographic location of the Company’s asset management team. Net revenues exclude discontinued operations for all periods presented.
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(Dollars in thousands)
2013
 
2012
 
2013
 
2012
Net revenues:
 
 
 
 
 
 
 
United States
$
126,458

 
$
128,580

 
$
329,379

 
$
339,727

Europe
1,856

 
2,925

 
8,240

 
8,314

Consolidated
$
128,314

 
$
131,505

 
$
337,619

 
$
348,041



Long-lived assets are allocated to geographic locations based upon the location of the asset. The following table presents long-lived assets held for use by geographic region:
 
September 30,
 
December 31,
(Dollars in thousands)
2013
 
2012
Long-lived assets:
 
 
 
United States
$
294,936

 
$
285,682

Europe
793

 
1,131

Consolidated
$
295,729

 
$
286,813