Segment Reporting

9 Months Ended

Sep. 30, 2014

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)	2014			2013			2014			2013
Capital Markets
Investment banking
Financing
Equities	$	14,269		$	30,010		$	93,628		$	66,085
Debt	14,435			12,808			48,148			51,971
Advisory services	66,320			20,215			145,743			39,165
Total investment banking	95,024			63,033			287,519			157,221
Institutional sales and trading
Equities	16,711			22,958			59,337			65,077
Fixed income	22,737			17,083			69,060			49,732
Total institutional sales and trading	39,448			40,041			128,397			114,809
Management and performance fees	1,387			1,094			4,512			2,677
Investment income	5,224			7,892			20,600			14,213
Long-term financing expenses	(1,613		)	(1,797		)	(5,058		)	(5,618		)
Net revenues	139,470			110,263			435,970			283,302
Operating expenses (1)	119,001			103,906			364,622			266,301
Segment pre-tax operating income	$	20,469		$	6,357		$	71,348		$	17,001
Segment pre-tax operating margin	14.7		%	5.8		%	16.4		%	6.0		%

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2014			2013			2014			2013
Asset Management
Management and performance fees
Management fees	$	19,738		$	17,547		$	59,474		$	52,191
Performance fees	470			60			834			716
Total management and performance fees	20,208			17,607			60,308			52,907
Investment income/(loss)	(252		)	444			1,312			1,410
Net revenues	19,956			18,051			61,620			54,317
Operating expenses (1)	14,733			12,348			44,146			37,757
Segment pre-tax operating income	$	5,223		$	5,703		$	17,474		$	16,560
Segment pre-tax operating margin	26.2		%	31.6		%	28.4		%	30.5		%
Total
Net revenues	$	159,426		$	128,314		$	497,590		$	337,619
Operating expenses (1)	133,734			116,254			408,768			304,058
Pre-tax operating income	$	25,692		$	12,060		$	88,822		$	33,561
Pre-tax operating margin	16.1		%	9.4		%	17.9		%	9.9		%

(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)	2014		2013		2014		2013
Capital Markets	$	743	$	1,238	$	2,229	$	1,238
Asset Management	1,575		1,661		4,725		4,983
Total intangible asset amortization expense	$	2,318	$	2,899	$	6,954	$	6,221

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 location was 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)	2014		2013		2014		2013
Net revenues:
United States	$	153,375	$	126,458	$	486,251	$	329,379
Europe	6,051		1,856		11,339		8,240
Consolidated	$	159,426	$	128,314	$	497,590	$	337,619

Long-lived assets are allocated to geographic locations based upon the location of the asset. The following table presents long-lived assets by geographic region:

	September 30,		December 31,
(Dollars in thousands)	2014		2013
Long-lived assets:
United States	$	293,823	$	296,516
Europe	5,899		6,414
Consolidated	$	299,722	$	302,930