Segment Reporting

9 Months Ended

Sep. 30, 2012

Segment Reporting

Segment Reporting

(15) 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 and European Operations segments provide trade execution, trade order management, network connectivity and research services. The European Operations segment also includes a technology research and development facility in Israel. The Canadian Operations and Asia Pacific Operations segments provide 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, 2011.  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 (2)		European Operations(1)(2)			Asia Pacific Operations (1)(2)			Consolidated(1)(2)(3)(4)
Three Months Ended September 30, 2012
Total revenues	$	77,801		$	17,727	$	14,793		$	9,296		$	119,617
Income (loss) before income tax (benefit) expense	841			1,637		(286		)	(2,011		)	181
Identifiable assets	1,101,085			98,082		567,527			617,902			2,384,596
Three Months Ended September 30, 2011
Total revenues	$	97,999		$	21,682	$	18,611		$	11,127		$	149,419
Income (loss) before income tax expense (benefit)	11,471			5,623		1,335			(1,239		)	17,190
Identifiable assets	1,229,009			131,311		660,219			696,787			2,717,326
Nine Months Ended September 30, 2012
Total revenues	$	244,305		$	58,877	$	50,412		$	29,308		$	382,902
(Loss) income before income tax (benefit) expense	(239,715		)	9,020		(25,524		)	(5,666		)	(261,885		)
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		)

(1)Loss before income tax benefits for the nine months ended September 30, 2012 includes the impact of goodwill impairment charges of $245.1 million, $28.5 million and $0.7 million for the U.S., European and Asia Pacific Operations, respectively.

(2)Loss before income tax benefits 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.

(3)Loss before income tax benefits for the nine months ended September 30, 2011 includes the impact of a $225.0 million goodwill impairment charge.

(4)Loss before income tax benefits for the nine months ended September 30, 2011 includes the impact of acquisition related costs of $2.5 million.