Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting

Segment Reporting

(24) Segment Reporting

        The Company is organized into four operating segments through which the Company's chief operating decision makers manage the Company's business. The U.S. Operations segment provides trade execution, trade order management, network connectivity and research services. The Canadian Operations segment provides trade execution, network connectivity and research services. The European Operations segment provides trade execution, trade order management, network connectivity and research services and includes a technology research and development facility in Israel. The Asia Pacific Operations segment provides trade execution, network connectivity and research services.

        The accounting policies of the reportable segments are the same as those described in Note 2, Summary of Significant Accounting Policies. The Company allocates resources to, and evaluates the performance of, its reportable segments based on income or loss before income tax expense. Consistent with the Company's resource allocation and operating performance evaluation approach, the effects of inter-segment activities are eliminated except in limited circumstances where certain technology related costs are allocated to a segment to support that segment's revenue producing activities. Commissions and fees revenue for trade executions and commission share revenues are principally attributed to each segment based upon the location of execution of the related transaction. Recurring revenues are principally attributed based upon the location of the client using the respective service.

        A summary of the segment financial information is as follows (dollars in thousands):

	U.S. Operations			Canadian Operations		European Operations		Asia Pacific Operations			Consolidated
2011
Total revenues	$	375,521		$	85,550	$	70,670	$	40,296		$	572,037
(Loss) income before income tax expense (1) (2)		(222,337	)		20,035		2,263		(6,589	)		(206,628	)
Identifiable assets		1,351,062			83,453		336,454		407,100			2,178,069
Capital purchases		18,684			1,525		1,448		1,200			22,857
Depreciation and amortization		47,004			2,882		7,636		1,535			59,057
Share-based compensation		16,436			1,076		1,509		1,135			20,156
2010
Total revenues	$	385,690		$	78,479	$	73,277	$	33,308		$	570,754
Income (loss) before income tax expense (3) (4)		45,000			21,119		4,043		(20,829	)		49,333
Identifiable assets		1,486,022			113,356		404,789		526,686			2,530,853
Capital purchases		15,472			1,724		1,660		424			19,280
Depreciation and amortization		50,089			2,425		8,169		1,690			62,373
Share-based compensation		14,336			1,344		1,380		946			18,006
2009
Total revenues	$	457,414		$	70,767	$	75,443	$	29,445		$	633,069
Income (loss) before income tax expense (5)		74,102			16,617		4,662		(18,930	)		76,451
Identifiable assets		951,015			199,875		334,667		217,546			1,703,103
Capital purchases		9,570			1,822		2,948		891			15,231
Depreciation and amortization		50,256			1,898		6,720		1,872			60,746
Share-based compensation		13,327			695		1,562		399			15,983

(1)

Loss before tax expense for the U.S. Operations for 2011 includes the impact of a $229.3 million goodwill and other asset impairment charge.

(2)

(Loss) income before income tax expense in 2011 includes the impact of a $24.4 million restructuring charge to reduce costs. The segment breakdown of this charge is as follows: U.S. Operations—$22.5 million, Canadian Operations—$0.6 million, European Operations—$1.0 million and Asia Pacific Operations—$0.3 million.

(3)

Income before income tax expense for the U.S. Operations for 2010 includes the impact of a $6.1 million charge to write-off certain capitalized software initiatives, restructuring charges of $2.3 million related to closing the Company's Westchester, NY office, and $2.4 million of acquisition related charges associated with the purchases of Majestic.

(4)

Loss before income tax expense for the Asia Pacific Operations for 2010 includes the impact of a $5.4 million impairment charge related to Australian goodwill and a restructuring charge of $2.1 million to close the Company's on-shore Japanese operations.

(5)

Income (loss) before income tax expense in 2009 includes the impact of a $25.4 million restructuring charge to reduce costs. The segment breakdown of this charge is as follows: U.S. Operations—$21.3 million, Canadian Operations—$2.6 million, European Operations—$0.1 million and Asia Pacific Operations—$1.4 million.

        Long-lived assets, classified by the geographic region in which the Company operates, are as follows (dollars in thousands):

	2011		2010		2009
Long-lived Assets at December 31,
United States	$	360,309	$	554,879	$	502,612
Canada		6,873		7,237		6,576
Europe		40,052		42,121		43,581
Asia Pacific		3,162		3,132		10,283
Total	$	410,396	$	607,369	$	563,052

        The Company's long-lived assets primarily consist of premises and equipment, capitalized software, goodwill, other intangibles and debt issuance costs.