Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting

Segment Reporting

(14) Segment Reporting

The Company is organized into four geographic operating segments through which the Company’s chief operating decision makers manage the Company’s business. The U.S., Canadian, European and Asia Pacific Operations segments provide products and services from each of the following product groups:

· Electronic Brokerage —  includes self-directed trading using algorithms, smart routing and matching through POSIT in cash equities (including single stocks and portfolio lists), futures and options

· Research Sales and Trading — includes (a) unbiased, data-driven equity research through the use of innovative data mining and analysis, as well as detailed analysis of energy asset plays, and (b) portfolio trading and high-touch trading desks providing execution expertise and trading ideas based on ITG Investment Research

· Platforms — includes trade order and execution management software applications in addition to network connectivity

· Analytics — includes tools enabling portfolio managers and traders to improve pre-trade and real-time execution performance, portfolio construction and optimization decisions and securities valuation.

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, 2012.  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)		Canadian Operations		European Operations		Asia Pacific Operations			Consolidated
Three Months Ended March 31, 2013
Total revenues	$	81,243	$	18,544	$	20,950	$	11,313		$	132,050
Income (loss) before income tax expense (benefit)	5,740		2,576		3,501		(865		)	10,952
Identifiable assets	1,888,817		97,632		1,271,052		743,862			4,001,363
Three Months Ended March 31, 2012
Total revenues	$	84,589	$	20,831	$	20,127	$	10,828		$	136,375
Income (loss) before income tax expense (benefit)	3,353		3,862		2,485		(1,206		)	8,494
Identifiable assets	1,657,150		95,324		994,500		1,061,221			3,808,195

(1) Income before income tax expense for the three months ended March 31, 2013 for the U.S. Operations includes the impact of $1.3 million in duplicate rent charges for the new U.S. headquarters in New York City.

	Three months ended March 31,
	2013		2012
Revenues by Product Group:
Electronic Brokerage	$	69,648	$	72,180
Research Sales and Trading	25,413		26,426
Platforms	25,099		25,744
Analytics	11,670		11,597
Corporate (non-product)	220		428
Total Revenues	$	132,050	$	136,375