XML 78 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 9 Months Ended
Sep. 30, 2012
Segment Information

12. 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 (loss) before income taxes of the Company for the three months and nine months ended September 30, 2012 and 2011. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use.

Expressed in thousands of dollars.

 

    

Three months ended

September 30,

    

Nine months ended

September 30,

  
     2012     2011     2012     2011  

Revenue:

         

Private Client (1)

    $ 132,847      $ 128,154      $ 403,307      $ 413,117   

Capital Markets

      77,082        87,682        234,431        262,660   

Asset Management (1)

      21,909        15,783        65,459        53,777   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 231,838      $ 231,619      $ 703,197      $ 729,554   
  

 

 

    

 

 

    

 

 

    

 

 

  

Profit (loss) before income taxes:

         

Private Client (1)

    $ 5,700      $ 4,528        15,798      $ 18,868   

Capital Markets

      (5,252 )      (2,097 )      (23,942 )      (14,045 ) 

Asset Management (1)

      4,810        1,833        14,752        10,974   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 5,258      $ 4,264        6,608      $ 15,797   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Asset management revenue is allocated 22.5% to the Asset Management segment and 77.5% to the Private Client segment.

Revenue, classified by the major geographic areas in which it was earned for the three and nine months ended September 30, 2012 and 2011 was as follows:

Expressed in thousands of dollars.

 

    

Three months ended

September 30,

     

Nine months ended

September 30,

  
     2012      2011      2012      2011  

United States

    $ 222,226       $ 219,545       $ 670,339       $ 691,107   

Europe / Middle East

      5,894         7,093         21,428         21,881   

Asia

      1,913         2,787         5,359         9,172   

South America

      1,805         2,194         6,071         7,394   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 231,838       $ 231,619       $ 703,197       $ 729,554