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Segment Information
 12 Months Ended
Dec. 31, 2011
Segment Information [Abstract]  
Segment Information

17. Segment Information

The Company has determined its reportable segments based on the Company’s method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company’s segments are: Private Client which includes commission and fee income earned on client transactions, net interest earnings on client margin loans and cash balances, stock loan activities and financing activities; Capital Markets which includes investment banking, market-making activities in over-the-counter equities, institutional trading in both fixed income and equities, structured assets transactions, bond trading, trading in mortgage-backed securities, corporate underwriting activities, public finance activities, syndicate participation as well as the Company’s operations in the United Kingdom, Hong Kong, and Israel; and Asset Management which includes fees from money market funds and the investment management services of Oppenheimer Asset Management Inc. and Oppenheimer’s asset management divisions employing various programs to professionally manage client assets either in individual accounts or in funds. The Company evaluates the performance of its segments and allocates resources to them based upon profitability. The Company has allocated all revenue and expenses to its segments and has eliminated the “Other” category as these are now allocated by the Chief Executive Officer and Chief Financial Officer in their analysis. Previously reported segment information has been revised to reflect this change.

The table below presents information about the reported revenue and profit before income taxes of the Company for the years ended December 31, 2011, 2010 and 2009. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use.

 

Expressed in thousands of dollars.

 

      September 30,       September 30,       September 30,  
    Year ended December 31,  
    2011     2010     2009  

Revenue:

                        

Private Client (1) (2)

   $ 535,371     $ 570,448     $ 543,365  

Capital Markets

     349,613       391,868       383,909  

Asset Management (1)

     74,008       73,957       63,206  
   

 

 

    

 

 

    

 

 

  

Total

   $ 958,992     $ 1,036,273     $ 990,480  
   

 

 

    

 

 

    

 

 

  
       

Profit (loss) before income taxes:

                        

Private Client (2)

   $ 17,990     $ 25,531     $ 14,237  

Capital Markets

     (17,973 )      18,894       6,680  

Asset Management

     17,831       23,566       16,150  
   

 

 

    

 

 

    

 

 

  

Total

   $ 17,848     $ 67,991     $ 37,067  
   

 

 

    

 

 

    

 

 

  

 

(1)

For the year ended December 31, 2011, the Asset Management and the Private Client segments earned performance fees of approximately $2.0 million and $1.0 million, respectively ($6.8 million and $6.1 million, respectively, in 2010 and $5.1 million and $5.4 million, respectively, in 2009). These fees are based on participation as general partner in various alternative investments.

 

(2)

For the years ended December 31, 2011, the Private Client segment continued to be negatively impacted by the low interest rate environment. Revenue from margin interest, money fund products and sponsored FDIC-covered deposits totaled $33.9 million ($37.7 million in 2010 and $45.5 million in 2009).

Revenues, classified by the major geographic areas in which they were earned for the years ended December 31, 2011, 2010 and 2009, were as follows:

Expressed in thousands of dollars.

 

      September 30,       September 30,       September 30,  
    2011     2010     2009  

United States

   $ 909,662     $ 976,402     $ 945,049  

Europe / Middle East

     28,858       28,077       22,580  

Asia

     11,301       16,511       14,688  

South America

     9,171       15,283       8,163  
   

 

 

    

 

 

    

 

 

  

Total

   $ 958,992     $ 1,036,273     $ 990,480