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Segment and Geographic Information
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
During the three months ended September 30, 2020, the Company completed its acquisition of Gain Capital Group Inc. (“Gain”), which it views as a significant acquisition and which triggered a reassessment of the financial information reviewed by its executive management team, which is considered our Chief Operating Decision Maker, on a regular basis, and which is used to make resource allocation decisions. The acquisition of Gain added a significant amount of incremental business from a new client type – retail. Prior to the acquisition, Gain was a publicly traded corporation in the United States, and reported its performance along two reportable segments: retail and futures, in its periodic reporting with the SEC. The Company has existing businesses with activities similar to Gain’s futures business. Gain’s retail business however, represents a fundamental change in the Company’s business strategy.
In light of this fundamental change and reassessment described above, the Company has modified the operating segments it uses to evaluate its performance. Accordingly, its operating segments are now based primarily on the nature of the clients we serve (commercial, institutional, and retail), and a fourth operating segment, its global payments business. The Company manages its business in this manner due to its large global footprint, in which it has more than 2,900 employees allowing it to serve clients in more than 180 countries.
Following the acquisition of Gain, the Company’s business activities are managed as operating segments and organized into reportable segments as follows:
•Commercial
•Institutional
•Retail
•Global Payments
All segment information has been revised to reflect the operating segment reorganization retroactive to October 1, 2017.
Commercial
The Company offers commercial clients a comprehensive array of products and services, including risk management and hedging services, execution and clearing of exchange-traded and OTC products, voice brokerage, market intelligence and physical trading as well as commodity financing and logistics services. The ability to provide these high-value-added products and services, differentiates the Company from its competitors and maximizes the opportunity to retain clients.
Institutional
The Company provides institutional clients with a complete suite of equity trading services to help them find liquidity with best execution, consistent liquidity across a robust array of fixed income products, competitive and efficient clearing and execution in all major futures and securities exchanges globally as well as prime brokerage in equities and major foreign currency pairs and swap transactions. In addition, the Company originates, structures and place debt instruments in the international and
domestic capital markets. These instruments include asset-backed securities (primarily in Argentina) and domestic municipal securities.
Retail
The Company provides retail clients around the world access to over 15,000 global financial markets, including spot foreign exchange ("forex"), both financial trading and physical investment in precious metals, as well as contracts for difference (“CFDs”), which are investment products with returns linked to the performance of underlying assets. In addition, its independent wealth management business offers a comprehensive product suite to retail investors in the United States.
Global Payments
The Company provides customized foreign exchange and treasury services to banks and commercial businesses as well as charities and non-governmental organizations and government organizations. The Company provides transparent pricing and offers payments services in more than 170 countries and 140 currencies, which it believes is more than any other payments solution provider.
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The total revenues reported combine gross revenues from physical contracts for subsidiaries that are not broker-dealers and net revenues for all other businesses. In order to reflect the way that the Company’s management views the results, the table below also reflects the segment contribution to ‘operating revenues’, which is shown on the face of the consolidated income statements and which is calculated by deducting physical commodities cost of sales from total revenues.
Segment data includes the profitability measure of net contribution by segment. Net contribution is one of the key measures used by management to assess the performance of each segment and for decisions regarding the allocation of the Company’s resources. Net contribution is calculated as revenue less direct cost of sales, transaction-based clearing expenses, variable compensation, introducing broker commissions, and interest expense. Variable compensation paid to risk management consultants/traders generally represents a fixed percentage of revenues generated, and in some cases, revenues generated less transaction-based clearing expenses, base salaries and an overhead allocation.
Segment data also includes segment income which is calculated as net contribution less non-variable direct expenses of the segment. These non-variable direct expenses include trader base compensation and benefits, operational employee compensation and benefits, communication and data services, business development, professional fees, bad debt expense and other direct expenses.
Inter-segment revenues, expenses, receivables and payables are eliminated upon consolidation, except revenues and expenses related to foreign currency transactions undertaken on an arm’s length basis by the foreign exchange trading business for the securities business. The foreign exchange trading business competes for this business as it does any other business. If its rates are not competitive, the securities businesses buy or sell their foreign currency through other market participants.
Total revenues, operating revenues and net operating revenues shown as “Corporate Unallocated” primarily consist of interest income from its centralized corporate treasury function. In the normal course of operations, the Company operates a centralized corporate treasury function in which it may sweep excess cash from certain subsidiaries, where permitted within regulatory limitations, in exchange for a short-term interest bearing intercompany payable, or provide excess cash to subsidiaries in exchange for a short-term interest bearing intercompany receivable in lieu of the subsidiary borrowing on external credit facilities. The intercompany receivables and payables are eliminated during consolidation; however, this practice may impact reported total assets between segments.
Net costs not allocated to operating segments include costs and expenses of certain shared services such as information technology, accounting and treasury, credit and risk, legal and compliance, and human resources and other activities.
Information for the reportable segments is shown in accordance with the Segment Reporting Topic of the ASC as follows
 Year Ended September 30,
(in millions)202020192018
Total revenues:
Commercial$52,970.1 $32,125.4 $27,018.7 
Institutional624.1 515.0 427.1 
Retail432.7 148.1 73.3 
Global Payments117.4 112.8 99.2 
Corporate Unallocated14.6 20.8 23.9 
Eliminations(19.3)(25.1)(19.5)
Total$54,139.6 $32,897.0 $27,622.7 
Operating revenues:
Commercial$431.5 $404.4 $371.8 
Institutional624.1 515.0 427.1 
Retail140.0 78.2 73.3 
Global Payments117.4 112.8 99.2 
Corporate Unallocated14.6 20.8 23.9 
Eliminations(19.3)(25.1)(19.5)
Total$1,308.3 $1,106.1 $975.8 
Net operating revenues (loss):
Commercial$353.4 $321.2 $299.4 
Institutional363.8 220.1 176.3 
Retail63.8 15.7 12.7 
Global Payments111.5 107.0 93.5 
Corporate Unallocated(24.5)(10.8)(0.3)
Total$868.0 $653.2 $581.6 
Net contribution:
(Revenues less cost of sales of physical commodities, transaction-based clearing expenses, variable compensation, introducing broker commissions and interest expense)
Commercial$242.2 $224.6 $210.0 
Institutional248.9 157.0 135.6 
Retail58.8 14.6 11.8 
Global Payments89.6 86.6 75.0 
Total$639.5 $482.8 $432.4 
Segment income (loss):
(Net contribution less non-variable direct segment costs)
Commercial (1)
$141.9 $144.6 $118.3 
Institutional152.9 88.6 78.2 
Retail31.7 6.4 5.6 
Global Payments68.6 66.1 59.8 
Total$395.1 $305.7 $261.9 
Reconciliation of segment income to income before tax:
Segment income$395.1 $305.7 $261.9 
Net costs not allocated to operating segments(270.3)(200.2)(162.4)
Gain on acquisitions and other gains81.9 5.5 2.0 
Income before tax$206.7 $111.0 $101.5 
(1) During fiscal 2019, the Company recorded recoveries on the bad debt on physical coal of $12.4 million. During fiscal 2018, the Company recorded charges to earnings of $1.0 million to record an allowance for doubtful accounts related to a bad debt incurred in the physical coal business with a coal supplier, as further discussed in Note 19.
(in millions)As of September 30, 2020As of September 30, 2019As of September 30, 2018
Total assets:
Commercial $2,753.6 $2,386.4 $2,349.5 
Institutional 8,740.8 7,111.2 5,168.1 
Retail1,245.9 12.4 — 
Global Payments315.9 278.2 206.6 
Corporate unallocated418.7 147.9 100.5 
Total$13,474.9 $9,936.1 $7,824.7 
Information regarding revenues and operating revenues for the years ended September 30, 2020, 2019, and 2018, and information regarding long-lived assets (defined as property, equipment, leasehold improvements and software) as of September 30, 2020, 2019, and 2018 in geographic areas were as follows:
 Year Ended September 30,
(in millions)202020192018
Total revenues:
United States $2,223.3 $1,947.6 $1,587.6 
Europe 532.6 280.2 189.6 
South America58.9 56.5 59.5 
Middle East and Asia 51,317.1 30,606.9 25,781.4 
Other 7.7 5.8 4.6 
Total$54,139.6 $32,897.0 $27,622.7 
Operating revenues:
United States $928.3 $799.4 $695.3 
Europe 237.9 209.6 189.0 
South America58.9 56.5 58.0 
Middle East and Asia 75.5 34.8 28.9 
Other 7.7 5.8 4.6 
Total$1,308.3 $1,106.1 $975.8 
(in millions)As of September 30, 2020As of September 30, 2019As of September 30, 2018
Long-lived assets, as defined:
United States $55.4 $33.9 $33.0 
Europe 3.1 6.6 6.8 
South America2.1 2.1 1.4 
Middle East and Asia 1.3 1.0 1.2 
Other 0.2 0.3 — 
Total$62.1 $43.9 $42.4