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Segment Information
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information
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.
The Company's reportable segments are:
Private Client - includes commissions and a proportionate amount of fee income earned on assets under management ("AUM"), 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 a proportionate amount of fee income earned on AUM from investment management services of Oppenheimer Asset Management Inc. Oppenheimer's asset management divisions employ various programs to professionally manage client assets either in individual accounts or in funds, and includes 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
Corporate/Other - the Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable 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 primarily include compensation and benefits.
The Commercial Mortgage Banking segment was discontinued during the second quarter of 2016. See Note 3 for further details.
The table below presents information about the reported revenue and income (loss) before income taxes from continuing operations of the Company for the three and six months ended June 30, 2017 and 2016. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker.
(Expressed in thousands)
 
 
 
 
 
 
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Revenue
 
 
 
 
 
 
 
Private client (1)
$
140,252

 
$
121,358

 
$
277,641

 
$
248,902

Asset management (1)
19,304

 
22,770

 
37,970

 
45,744

Capital markets
53,707

 
65,524

 
109,610

 
126,589

Corporate/Other
2,621

 
2,422

 
3,924

 
5,795

Total
$
215,884

 
$
212,074

 
$
429,145

 
$
427,030

 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
Private client (1)
$
28,051

 
$
14,345

 
$
56,813

 
$
30,662

Asset management (1)
4,081

 
5,703

 
7,792

 
12,471

Capital markets
(10,982
)
 
4,045

 
(23,596
)
 
(2,753
)
Corporate/Other
(22,787
)
 
(29,339
)
 
(49,671
)
 
(52,966
)
Total
$
(1,637
)
 
$
(5,246
)
 
$
(8,662
)
 
$
(12,586
)
(1)
Clients investing in the OAM advisory program are charged fees based on the value of assets under management. Advisory fees were allocated 22.5% to the Asset Management and 77.5% to the Private Client segments. Starting January 1, 2017, the Company determined it was appropriate to change the allocation to 10.0% to the Asset Management and 90.0% to the Private Client segments due to changes in the mix of the business over time and costs associated with it.
Revenue classified by the major geographic areas in which it was earned for the three and six months ended June 30, 2017 and 2016 was as follows:
(Expressed in thousands)
 
 
 
 
 
 
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Americas
$
204,052

 
$
202,821

 
$
407,715

 
$
406,290

Europe/Middle East
10,904

 
8,440

 
19,364

 
19,032

Asia
928

 
813

 
2,066

 
1,708

Total
$
215,884

 
$
212,074

 
$
429,145

 
$
427,030