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Segment and Geographic Information | 3 Months Ended
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Mar. 31, 2018
Segment Reporting [Abstract] |
Segment and Geographic Information | 29.Segment and Geographic Information Segment Information The Company’s business segments are determined based on the products and services provided and reflect the manner in which financial information is evaluated by management. The Company’s operations consist of two reportable segments, Financial Services and Real Estate Services. The Company’s Financial Services segment specializes in the brokerage of a broad range of products, including fixed income (rates and credit), foreign exchange, equities, insurance, energy and commodities, and futures. It also provides a wide range of services, including trade execution, broker-dealer services, clearing, trade compression, post trade, information, and other back-office services to a broad range of financial and non-financial institutions. The Company’s Real Estate Services segment offers commercial real estate tenants, owners, investors and developers a wide range of services, including leasing and corporate advisory, investment sales and real estate finance, consulting, project and development management, property and facilities management, and multifamily lending through government-sponsored and government-funded loan programs, as well as the servicing of the loans that it originates and other commercial real estate loans. The Company evaluates the performance and reviews the results of the segments based on each segment’s “Income (loss) from operations before income taxes.” The amounts shown below for the Financial Services and Real Estate Services segments reflect the amounts that are used by management to allocate resources and assess performance, which is based on each segment’s “Income (loss) from operations before income taxes.” In addition to the two business segments, the tables below include a “Corporate Items” category. Corporate revenues include fees from related parties and interest income. Corporate expenses include non-cash compensation expenses (such as the grant of exchangeability to limited partnership units; redemption/exchange of partnership units, issuance of restricted shares and a reserve on compensation-related partnership loans; and allocations of net income to limited partnership units and FPUs), as well as unallocated expenses, such as certain professional and consulting fees, executive compensation and interest expense, which are managed separately at the corporate level. Corporate other income (losses), net includes gains that are not considered part of the Company’s ordinary, ongoing business, and the adjustment of future earn-out payments. During the third quarter of 2017, the Company transferred the right to receive earn-out payments from Nasdaq from the Financial Services segment to the Real Estate Services segment. As a result, the Nasdaq payment for the third quarter of 2017 was recorded as “Other income (loss)” in the Real Estate Services segment. Certain financial information for the Company’s segments is presented below. Certain reclassifications have been made to previously reported amounts to conform to the current presentation (see Note 1—“Organization and Basis of Presentation”). See Note 20—“Goodwill and Other Intangible Assets, Net,” for goodwill by reportable segment. Three months ended March 31, 2018 (in thousands):
|  | Financial Services |  |  | Real Estate Services |  |  | Corporate Items |  |  | Total |
Brokerage revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rates |  | $ | 160,772 |  |  | $ | — |  |  | $ | — |  |  | $ | 160,772 |
Credit |  |  | 82,050 |  |  |  | — |  |  |  | — |  |  |  | 82,050 |
Foreign exchange |  |  | 99,050 |  |  |  | — |  |  |  | — |  |  |  | 99,050 |
Energy and commodities |  |  | 60,149 |  |  |  | — |  |  |  | — |  |  |  | 60,149 |
Equities, insurance, and other asset classes |  |  | 97,754 |  |  |  | — |  |  |  | — |  |  |  | 97,754 |
Leasing and other services |  |  | — |  |  |  | 159,378 |  |  |  | — |  |  |  | 159,378 |
Real estate capital markets |  |  | — |  |  |  | 101,364 |  |  |  | — |  |  |  | 101,364 |
Gains from mortgage banking activities/originations, net |  |  | — |  |  |  | 38,914 |  |  |  | — |  |  |  | 38,914 |
Real estate management and other services |  |  | — |  |  |  | 96,878 |  |  |  | — |  |  |  | 96,878 |
Servicing fees |  |  | — |  |  |  | 28,926 |  |  |  | — |  |  |  | 28,926 |
Fees from related parties |  |  | — |  |  |  | 291 |  |  |  | 6,299 |  |  |  | 6,590 |
Data, software and post-trade |  |  | 15,099 |  |  |  | — |  |  |  | — |  |  |  | 15,099 |
Other revenues |  |  | 913 |  |  |  | 48 |  |  |  | 13 |  |  |  | 974 |
Total non-interest revenues |  |  | 515,787 |  |  |  | 425,799 |  |  |  | 6,312 |  |  |  | 947,898 |
Interest income |  |  | 834 |  |  |  | 6,072 |  |  |  | 1,842 |  |  |  | 8,748 |
Total revenues |  |  | 516,621 |  |  |  | 431,871 |  |  |  | 8,154 |  |  |  | 956,646 |
Interest expense |  |  | — |  |  |  | 3,692 |  |  |  | 23,446 |  |  |  | 27,138 |
Non-interest expenses |  |  | 403,821 |  |  |  | 351,427 |  |  |  | 80,809 |  |  |  | 836,057 |
Total expenses |  |  | 403,821 |  |  |  | 355,119 |  |  |  | 104,255 |  |  |  | 863,195 |
Other income (losses), net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on divestiture and sale of investments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Gains (losses) on equity investments |  |  | — |  |  |  | 3,176 |  |  |  | 2,625 |  |  |  | 5,801 |
Other income (losses) |  |  | 10,935 |  |  |  | 2,433 |  |  |  | 20,574 |  |  |  | 33,942 |
Total other income (losses), net |  |  | 10,935 |  |  |  | 5,609 |  |  |  | 23,199 |  |  |  | 39,743 |
Income (loss) from operations before income taxes |  | $ | 123,735 |  |  | $ | 82,361 |  |  | $ | (72,902 | ) |  | $ | 133,194 |
Three months ended March 31, 2017 (in thousands):
|  | Financial Services |  |  | Real Estate Services |  |  | Corporate Items |  |  | Total |
Brokerage revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rates |  | $ | 135,752 |  |  | $ | — |  |  | $ | — |  |  | $ | 135,752 |
Credit |  |  | 81,870 |  |  |  | — |  |  |  | — |  |  |  | 81,870 |
Foreign exchange |  |  | 80,026 |  |  |  | — |  |  |  | — |  |  |  | 80,026 |
Energy and commodities |  |  | 53,145 |  |  |  | — |  |  |  | — |  |  |  | 53,145 |
Equities, insurance, and other asset classes |  |  | 75,706 |  |  |  | — |  |  |  | — |  |  |  | 75,706 |
Leasing and other services |  |  | — |  |  |  | 127,574 |  |  |  | — |  |  |  | 127,574 |
Real estate capital markets |  |  | — |  |  |  | 77,390 |  |  |  | — |  |  |  | 77,390 |
Gains from mortgage banking activities/originations, net |  |  | — |  |  |  | 45,261 |  |  |  | — |  |  |  | 45,261 |
Real estate management and other services |  |  | — |  |  |  | 50,630 |  |  |  | — |  |  |  | 50,630 |
Servicing fees |  |  | — |  |  |  | 24,832 |  |  |  | — |  |  |  | 24,832 |
Fees from related parties |  |  | — |  |  |  | 373 |  |  |  | 6,565 |  |  |  | 6,938 |
Data, software and post-trade |  |  | 13,087 |  |  |  | — |  |  |  | — |  |  |  | 13,087 |
Other revenues |  |  | 942 |  |  |  | 4 |  |  |  | 30 |  |  |  | 976 |
Total non-interest revenues |  |  | 440,528 |  |  |  | 326,064 |  |  |  | 6,595 |  |  |  | 773,187 |
Interest income |  |  | 650 |  |  |  | 7,656 |  |  |  | 1,700 |  |  |  | 10,006 |
Total revenues |  |  | 441,178 |  |  |  | 333,720 |  |  |  | 8,295 |  |  |  | 783,193 |
Interest expense |  |  | — |  |  |  | 1,874 |  |  |  | 16,889 |  |  |  | 18,763 |
Non-interest expenses |  |  | 353,906 |  |  |  | 279,292 |  |  |  | 79,252 |  |  |  | 712,450 |
Total expenses |  |  | 353,906 |  |  |  | 281,166 |  |  |  | 96,141 |  |  |  | 731,213 |
Other income (losses), net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on divestiture and sale of investments |  |  | — |  |  |  | — |  |  |  | 557 |  |  |  | 557 |
Gains (losses) on equity investments |  |  | — |  |  |  | — |  |  |  | 237 |  |  |  | 237 |
Other income (losses) |  |  | 4,648 |  |  |  | — |  |  |  | 372 |  |  |  | 5,020 |
Total other income (losses), net |  |  | 4,648 |  |  |  | — |  |  |  | 1,166 |  |  |  | 5,814 |
Income (loss) from operations before income taxes |  | $ | 91,920 |  |  | $ | 52,554 |  |  | $ | (86,680 | ) |  | $ | 57,794 |
Total assets by reportable segment (in thousands):
Total Assets1 |  | Financial Services |  |  | Real Estate Services |  |  | Total |
At March 31, 2018 |  | $ | 3,720,346 |  |  | $ | 3,057,150 |  |  | $ | 6,777,496 |
At December 31, 2017 |  | $ | 3,146,023 |  |  | $ | 2,283,689 |  |  | $ | 5,429,712 |
1 | Corporate assets have been fully allocated to the Company’s business segments.
Geographic Information The Company offers products and services in the U.S., U.K., Asia (including Australia), Other Europe, the Middle East and Africa region (defined as the “MEA” region), France, and Other Americas. Information regarding revenues for the three months ended March 31, 2018 and 2017, respectively, is as follows (in thousands):
|  | Three Months Ended March 31, |
|  | 2018 |  |  | 2017 |
Revenues: |  |  |  |  |  |  |  |
United States |  | $ | 572,254 |  |  | $ | 461,686 |
United Kingdom |  |  | 223,559 |  |  |  | 186,810 |
Asia |  |  | 69,029 |  |  |  | 61,109 |
Other Europe/MEA |  |  | 53,672 |  |  |  | 34,002 |
France |  |  | 23,018 |  |  |  | 25,265 |
Other Americas |  |  | 15,114 |  |  |  | 14,321 |
Total revenues |  | $ | 956,646 |  |  | $ | 783,193 |
Information regarding long-lived assets (defined as loans, forgivable loans and other receivables from employees and partners, net; fixed assets, net; certain other investments; goodwill; other intangible assets, net of accumulated amortization; and rent and other deposits) in the geographic areas as of March 31, 2018 and December 31, 2017, respectively, is as follows (in thousands):
|  | March 31, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
Long-lived assets: |  |  |  |  |  |  |  |
United States |  | $ | 1,419,107 |  |  | $ | 1,373,118 |
United Kingdom |  |  | 330,683 |  |  |  | 352,232 |
Asia |  |  | 38,207 |  |  |  | 32,603 |
Other Europe/MEA |  |  | 12,235 |  |  |  | 10,477 |
France |  |  | 9,163 |  |  |  | 7,373 |
Other Americas |  |  | 27,313 |  |  |  | 27,050 |
Total long-lived assets |  | $ | 1,836,708 |  |  | $ | 1,802,853 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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