Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting

Segment Reporting

(16) 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 in Europe, 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, in our Annual Report on Form 10-K for the year ended December 31, 2010.  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 (1)(2)(3)(4)			Canadian Operations (1)		European Operations (1)		Asia Pacific Operations (1)(5)			Consolidated
Three Months Ended September 30, 2011
Total revenues	$	97,999		$	21,682	$	18,611	$	11,127		$	149,419
Income (loss) before income tax (benefit) expense	11,471			5,623		1,335		(1,239		)	17,190
Identifiable assets	1,229,009			131,311		660,219		696,787			2,717,326
Three Months Ended September 30, 2010
Total revenues	$	88,138		$	17,364	$	16,771	$	8,123		$	130,396
Income (loss) before income tax expense (benefit)	10,131			4,312		381		(3,448		)	11,376
Identifiable assets	1,529,236			105,835		535,595		613,434			2,784,100
Nine Months Ended September 30, 2011
Total revenues	$	292,402		$	64,350	$	54,487	$	30,875		$	442,114
(Loss) income before income tax (benefit) expense	(211,231		)	15,267		935		(5,241		)	(200,270		)
Nine Months Ended September 30, 2010
Total revenues	$	296,135		$	57,294	$	55,080	$	23,899		$	432,408
Income (loss) before income tax expense (benefit)	47,517			15,194		2,861		(19,387		)	46,185

(1)Income (loss) before income tax expense for the nine months ended September 30, 2011 includes the impact of restructuring charges of $15.4 million, $0.7 million, $1.2 million and $0.3 million for the U.S., Canadian, European and Asia Pacific Operations, respectively.

(2)Income (loss) before income tax expense for the nine months ended September 30, 2011 includes the impact of a $225.0 million goodwill impairment charge.

(3)Income (loss) before income tax expense for the nine months ended September 30, 2011 includes the impact of acquisition related costs of $2.5 million.

(4)Income (loss) before income tax expense for the nine months ended September 30, 2010 includes the impact of a $6.1 million charge to write-off certain capitalized software initiatives.

(5)Income (loss) before income tax expense for the nine months ended September 30, 2010 includes the impacts of a $5.4 million impairment charge related to Australian goodwill and a restructuring charge of $2.5 million to close the Company’s on-shore Japanese operations.