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Segment Information
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
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 evaluates the performance of its segments and allocates resources to them based upon profitability.

Due to the recent growth in the Company’s commercial loan origination and servicing business operated out of OMHHF, the Company has presented separately the results of this business in a reportable segment titled “Commercial Mortgage Banking.” This reportable segment engages in business activities in which it earns revenues and incurs expenses that are distinct from the Company’s other reportable segments, its operating results are reviewed by the Company’s CEO who makes decisions about resources to be allocated to this business, and separate financial information is available for the legal entity from which it operates. The Commercial Mortgage Banking reportable segment not only meets these qualitative criteria but, as a result of its recent growth, also meets one of the quantitative thresholds for segment reporting. Previously reported segment information has been revised to reflect this new reportable segment.

The Company’s reportable segments are:

Private Client—includes commission and fee income earned on client transactions, net interest earnings on client margin loans and cash balances, fees from money market funds, net contributions from stock loan activities and financing activities, and direct expenses associated with this segment;

Asset Management—includes fees from 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, and direct expenses associated with this segment;

Capital Markets—includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company’s operations in the United Kingdom, Hong Kong, and Israel, and direct expenses associated with this segment; and

 

Commercial Mortgage Banking—includes loan origination and servicing fees from the Company’s subsidiary, OMHHF. The Company has added this business segment due to the significant growth and profitability of this line of business over the last several quarters. In prior periods, this business had been part of the Capital Markets business segment.

The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its operating segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit. Costs associated with these groups are separately reported in a Corporate/Other category and include, for example, compensation and benefits, rent expense, information technology, legal and professional.

The table below presents information about the reported revenue and net income before taxes of the Company for the three and six months ended June 30, 2013 and 2012. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use.

 

     For the Three months
ended June 30,		    

For the Six months

ended June 30,

  
(Expressed in thousands)    2013     2012     2013     2012  

Revenue

         

Private client division

    $ 143,278      $ 128,469      $ 286,647      $ 272,732   

Asset management

      22,006        19,992        42,962        39,036   

Capital markets

      67,904        71,561        133,035        140,890   

Commercial mortgage banking

      9,477        10,934        17,543        18,988   

Corporate/Other

      1,165        2,189        2,789        (287 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 243,830      $ 233,145      $ 482,976      $ 471,359   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income taxes

         

Private client division

    $ 15,698      $ 12,770      $ 33,025      $ 27,732   

Asset management

      7,402        4,106        13,945        9,096   

Capital markets

      972        2,660        4,505        1,005   

Commercial mortgage banking

      2,276        5,000        5,154        8,830   

Corporate/Other

      (20,674 )      (16,697 )      (44,242 )      (45,313 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 5,674      $ 7,839      $ 12,387      $ 1,350   
  

 

 

    

 

 

    

 

 

    

 

 

  

Revenue, classified by the major geographic areas in which it was earned for the three and six months ended June 30, 2013 and 2012, was as follows:

 

     For the Three months
ended June 30,		      For the Six months ended
June 30,		  
(Expressed in thousands)    2013      2012      2013      2012  

United States

    $ 232,781       $ 222,478       $ 461,474       $ 448,113   

Europe/Middle East

      9,317         8,767         17,720         18,680   

Asia

      709         111         1,534         301   

South America

      1,023         1,789         2,248         4,265   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 243,830       $ 233,145       $ 482,976       $ 471,359