Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting

Summary of the segment financial information

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

	U.S.		Canadian		European		Asia Pacific
	Operations		Operations		Operations		Operations		Corporate		Consolidated
Three Months Ended September 30, 2018
Total revenues	$	45,398	$	16,190	$	40,019	$	18,524	$	638	$	120,769
(Loss) income before income tax (benefit) expense (1)(3)(4)		(2,736)		1,833		9,377		3,852		(9,567)		2,759
Identifiable assets		389,240		96,951		315,351		90,217		—		891,759
Three Months Ended September 30, 2017
Total revenues	$	47,403	$	15,055	$	36,256	$	15,327	$	490	$	114,531
(Loss) income before income tax (benefit) expense (2)(6)		(6,333)		738		7,662		2,204		(6,226)		(1,955)
Identifiable assets		338,000		75,332		323,142		57,571		—		794,045
Nine Months Ended September 30, 2018
Total revenues	$	141,910	$	51,967	$	127,760	$	57,561	$	1,532	$	380,730
(Loss) income before income tax (benefit) expense (1)(3)(4)		(5,090)		8,712		31,726		12,532		(39,478)		8,402
Nine Months Ended September 30, 2017
Total revenues	$	153,559	$	47,521	$	111,707	$	42,990	$	1,170	$	356,947
(Loss) income before income tax (benefit) expense (5)(6)		(12,646)		6,034		27,170		4,117		(17,732)		6,943

Notes:

(1) During the nine months ended September 30, 2018, the Company incurred a charge to establish an accrual of $12.0 million for a potential settlement with the SEC of an investigation into the operational features of U.S. POSIT and access to U.S. POSIT data, together with certain related disclosures, and incurred related legal fees of $0.2 million. Additional legal fees of $0.8 million were incurred in the third quarter of 2018. For more information, see Note 19, Contingencies – Legal Matters.

(2) The Company has restated segment results for the three months ended September 30, 2017, resulting in a decrease in U.S. expenses of $2.7 million and increases in expenses in Canada, Europe and Asia Pacific of $0.7 million, $1.3 million and $0.7 million, respectively.

(3) During the three and nine months ended September 30, 2018, the Company incurred restructuring charges of $3.4 million and $10.6 million, respectively, related to the elimination of certain positions in the U.S. and the reduction of office space in Los Angeles.

(4) During the three and nine months ended September 30, 2018, the Company incurred a charge of $0.9 million to increase the liability for vacated space in New York.

(5) The Company has restated segment results for the nine months ended September 30, 2017, resulting in a decrease in U.S. expenses of $8.0 million and increases in expenses in Canada, Europe and Asia Pacific of $2.0 million, $3.8 million and $2.2 million, respectively.

(6) In the third quarter of 2017, the Company deemed the remaining value of a customer intangible asset recorded in ITG Derivatives of $0.3 million fully impaired and incurred legal fees of $0.8 million related to the formation of the Matrix derivatives venture that was completed in the first quarter of 2018.

Schedule of total revenues for the products and services provided by the company

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Revenues:
Execution Services	$	84,899	$	80,141	$	269,214		253,225
Workflow Technology		24,407		22,553		78,094		69,005
Analytics		10,825		11,347		31,890		33,547
Corporate (non-product)		638		490		1,532		1,170
Total Revenues	$	120,769	$	114,531	$	380,730	$	356,947