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