Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2016

Summary of the segment financial information

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

	U.S. Operations			Canadian Operations		European Operations		Asia Pacific Operations			Corporate			Consolidated Total
Three Months Ended June 30, 2016
Total revenues (1)	$	58,574		$	15,790	$	32,203	$	11,280		$	2,763		$	120,610
(Loss) income before income tax (benefit) expense (2)(3)(4)	(2,874		)	2,782		6,284		(93		)	(15,757		)	(9,658		)
Identifiable assets	504,998			99,036		429,986		72,196			—			1,106,216
Three Months Ended June 30, 2015
Total revenues	$	75,474		$	16,705	$	33,574	$	14,512		$	229		$	140,494
Income (loss) before income tax expense (benefit) (5)	5,735			3,615		7,763		1,602			(27,664		)	(8,949		)
Identifiable assets	1,209,355			96,370		286,607		86,163			—			1,678,495
Six Months Ended June 30, 2016
Total revenues (1)	$	124,903		$	31,886	$	63,342	$	22,037		$	3,110		$	245,278
(Loss) income before income tax (benefit) expense (2)(3)(4)	(769		)	6,120		11,963		(693		)	(29,917		)	(13,296		)
Six Months Ended June 30, 2015
Total revenues	$	155,928		$	35,617	$	70,180	$	28,034		$	462		$	290,221
Income (loss) before income tax expense (benefit) (5)	16,791			7,369		18,893		2,709			(32,371		)	13,391

The following notes relate to Corporate activity:

(1)

The Company received insurance proceeds of $2.4 million in June 2016 from its corporate insurance carrier to settle a claim for lost profits arising from an August 2015 outage in its outsourced primary data center in the U.S. Additionally, the Company generated a nominal gain on the completion of the sale of its investment research operations in May 2016.

(2)

During the three months ended June 30, 2016, the Company incurred $4.4 million in restructuring charges related to (a) the reduction in its high-touch trading and sales organizations and (b) the closing of its U.S. matched-book securities lending operations and its Canadian arbitrage trading desk.

(3)

The Company’s new Chief Executive Officer was granted cash and stock awards upon the commencement of his employment in January 2016, a significant portion of which replaced awards he forfeited at his former employer. The amount expensed for these awards during the three and six month periods ended June 30, 2016 was $0.5 million and $3.3 million, respectively. Due to U.S. tax regulations, only a small portion of the amount expensed for these awards was eligible for a tax deduction.

(4)

During the three and six month periods ended June 30, 2016, the Company established a reserve of $2.3 million and $4.8 million, respectively, for the arbitration case with its former CEO. In addition, the Company incurred legal fees related to this matter of $2.4 million and $2.7 million during the three and six month periods ended June 30, 2016, respectively. The Company settled the arbitration case in June 2016. For more information, see Note 18, Contingencies — Legal Matters.

(5)

In the second quarter of 2015, the Company reserved $20.3 million for a settlement with the SEC in connection with the investigation into a proprietary trading pilot and incurred $2.3 million in legal and other related costs associated with this matter.

Schedule of total revenues for the products and services provided by our geographic segments

The table below details the total revenues for the categories of products and services provided by the Company (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues by Product Group:
Execution Services	$	83,408	$	105,427	$	173,201	$	218,394
Workflow Technology	23,094		23,550		46,687		48,623
Analytics	11,345		11,288		22,280		22,742
Corporate	2,763		229		3,110		462

Total Revenues	$	120,610	$	140,494	$	245,278	$	290,221