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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2012
Segment and Geographic Information | 27. SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company operates within three business segments: Capital Markets, Asset Management, and Principal Investing. See note 1. The accounting policies of the three segments are the same as those described in note 3. The Company’s business segment information for the years ended December 31, 2012, 2011, and 2010 was prepared using the following methodologies and generally represents the information that was relied upon by management in its decision making processes: (a) Revenues and expenses directly associated with each business segment are included in determining net income / (loss) by business segment. (b) Indirect expenses (such as general and administrative expenses including executive and indirect overhead costs) not directly associated with specific business segments are not allocated to the business segments’ statements of operations. Accordingly, the Company presents business segment information consistent with internal management reporting. See note (1) in the table below for more detail on unallocated items. The following tables present the financial information for the Company’s business segments for the periods indicated. During 2012, the Company reclassified the investment in certain equity method affiliates as well as the income / (loss) from these equity method affiliates from the Principal Investing business segment to the Asset Management business segment. Relevant prior period amounts have been reclassified to conform to the current period presentation.
As of and for the year ended December 31, 2012 |  | Capital Markets |  |  | Asset Management |  |  | Principal Investing |  |  | Segment Total |  |  | Unallocated (1) |  |  | Total |
Summary statement of operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net trading |  | $ | 69,486 |  |  | $ | — |  |  | $ | — |  |  | $ | 69,486 |  |  | $ | — |  |  | $ | 69,486 |
Asset management |  |  | — |  |  |  | 23,172 |  |  |  | — |  |  |  | 23,172 |  |  |  | — |  |  |  | 23,172 |
New issue and advisory |  |  | 6,021 |  |  |  | — |  |  |  | — |  |  |  | 6,021 |  |  |  | (1,000 | ) |  |  | 5,021 |
Principal transactions and other income |  |  | 166 |  |  |  | 894 |  |  |  | (3,499 | ) |  |  | (2,439 | ) |  |  | — |  |  |  | (2,439 | )
Total revenues |  |  | 75,673 |  |  |  | 24,066 |  |  |  | (3,499 | ) |  |  | 96,240 |  |  |  | (1,000 | ) |  |  | 95,240 |
Total operating expenses |  |  | 74,595 |  |  |  | 8,690 |  |  |  | 347 |  |  |  | 83,632 |  |  |  | 11,313 |  |  |  | 94,945 |
Operating income / (loss) |  |  | 1,078 |  |  |  | 15,376 |  |  |  | (3,846 | ) |  |  | 12,608 |  |  |  | (12,313 | ) |  |  | 295 |
Income / (loss) from equity method affiliates |  |  | — |  |  |  | 3,309 |  |  |  | 1,743 |  |  |  | 5,052 |  |  |  | — |  |  |  | 5,052 |
Other non operating income / (expense) |  |  | (3,554 | ) |  |  | — |  |  |  | — |  |  |  | (3,554 | ) |  |  | (4,449 | ) |  |  | (8,003 | )
Income / (loss) before income taxes |  |  | (2,476 | ) |  |  | 18,685 |  |  |  | (2,103 | ) |  |  | 14,106 |  |  |  | (16,762 | ) |  |  | (2,656 | )
Income tax expense / (benefit) |  |  | 49 |  |  |  | — |  |  |  | — |  |  |  | 49 |  |  |  | (664 | ) |  |  | (615 | )
Net income / (loss) |  |  | (2,525 | ) |  |  | 18,685 |  |  |  | (2,103 | ) |  |  | 14,057 |  |  |  | (16,098 | ) |  |  | (2,041 | )
Less: Net income / (loss) attributable to the non-controlling interest |  |  | (216 | ) |  |  | — |  |  |  | — |  |  |  | (216 | ) |  |  | (857 | ) |  |  | (1,073 | )
Net income / (loss) attributable to IFMI |  | $ | (2,309 | ) |  | $ | 18,685 |  |  | $ | (2,103 | ) |  | $ | 14,273 |  |  | $ | (15,241 | ) |  | $ | (968 | )
Other statement of operations data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization (included in total operating expense) |  | $ | 859 |  |  | $ | 17 |  |  | $ | — |  |  | $ | 876 |  |  | $ | 429 |  |  | $ | 1,305 |
Balance sheet data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets (2) (3) |  | $ | 279,863 |  |  | $ | 7,257 |  |  | $ | 39,741 |  |  | $ | 326,861 |  |  | $ | 14,140 |  |  | $ | 341,001 |
Investment in equity method affiliates (included in total assets) |  | $ | — |  |  | $ | 493 |  |  | $ | 1,417 |  |  | $ | 1,910 |  |  | $ | — |  |  | $ | 1,910 |
As of and for the year ended December 31, 2011 |  | Capital Markets |  |  | Asset Management |  |  | Principal Investing |  |  | Segment Total |  |  | Unallocated (1) |  |  | Total |
Summary statement of operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net trading |  | $ | 73,167 |  |  | $ | — |  |  | $ | — |  |  | $ | 73,167 |  |  | $ | — |  |  | $ | 73,167 |
Asset management |  |  | — |  |  |  | 21,698 |  |  |  | — |  |  |  | 21,698 |  |  |  | — |  |  |  | 21,698 |
New issue and advisory |  |  | 3,585 |  |  |  | — |  |  |  | — |  |  |  | 3,585 |  |  |  | — |  |  |  | 3,585 |
Principal transactions and other income |  |  | 199 |  |  |  | 1,316 |  |  |  | 366 |  |  |  | 1,881 |  |  |  | — |  |  |  | 1,881 |
Total revenues |  |  | 76,951 |  |  |  | 23,014 |  |  |  | 366 |  |  |  | 100,331 |  |  |  | — |  |  |  | 100,331 |
Total operating expenses |  |  | 79,986 |  |  |  | 6,017 |  |  |  | 690 |  |  |  | 86,693 |  |  |  | 31,803 |  |  |  | 118,496 |
Operating income / (loss) |  |  | (3,035 | ) |  |  | 16,997 |  |  |  | (324 | ) |  |  | 13,638 |  |  |  | (31,803 | ) |  |  | (18,165 | )
Income / (loss) from equity method affiliates |  |  | (204 | ) |  |  | 5,329 |  |  |  | 1,107 |  |  |  | 6,232 |  |  |  | — |  |  |  | 6,232 |
Other non operating income / (expense) |  |  | 386 |  |  |  | — |  |  |  | — |  |  |  | 386 |  |  |  | (6,329 | ) |  |  | (5,943 | )
Income / (loss) before income taxes |  |  | (2,853 | ) |  |  | 22,326 |  |  |  | 783 |  |  |  | 20,256 |  |  |  | (38,132 | ) |  |  | (17,876 | )
Income tax expense / (benefit) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,149 | ) |  |  | (1,149 | )
Net income / (loss) |  |  | (2,853 | ) |  |  | 22,326 |  |  |  | 783 |  |  |  | 20,256 |  |  |  | (36,983 | ) |  |  | (16,727 | )
Less: Net income / (loss) attributable to the non-controlling interest |  |  | (1,768 | ) |  |  | — |  |  |  | — |  |  |  | (1,768 | ) |  |  | (5,571 | ) |  |  | (7,339 | )
Net income / (loss) attributable to IFMI |  | $ | (1,085 | ) |  | $ | 22,326 |  |  | $ | 783 |  |  | $ | 22,024 |  |  | $ | (31,412 | ) |  | $ | (9,388 | )
Other statement of operations data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization (included in total operating expense) |  | $ | 596 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 611 |  |  | $ | 1,627 |  |  | $ | 2,238 |
Balance sheet data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets (2) (3) |  | $ | 352,817 |  |  | $ | 7,972 |  |  | $ | 47,696 |  |  | $ | 408,485 |  |  | $ | 12,105 |  |  | $ | 420,590 |
Investment in equity method affiliates (included in total assets) |  | $ | — |  |  | $ | 1,150 |  |  | $ | 4,926 |  |  | $ | 6,076 |  |  | $ | — |  |  | $ | 6,076 |
As of and for the year ended December 31, 2010 |  | Capital Markets |  |  | Asset Management |  |  | Principal Investing |  |  | Segment Total |  |  | Unallocated (1) |  |  | Total |
Summary statement of operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net trading |  | $ | 70,809 |  |  | $ | — |  |  | $ | — |  |  | $ | 70,809 |  |  | $ | — |  |  | $ | 70,809 |
Asset management |  |  | — |  |  |  | 25,281 |  |  |  | — |  |  |  | 25,281 |  |  |  | — |  |  |  | 25,281 |
New issue and advisory |  |  | 3,778 |  |  |  | — |  |  |  | — |  |  |  | 3,778 |  |  |  | — |  |  |  | 3,778 |
Principal transactions and other income |  |  | (125 | ) |  |  | 475 |  |  |  | 25,334 |  |  |  | 25,684 |  |  |  | — |  |  |  | 25,684 |
Total revenues |  |  | 74,462 |  |  |  | 25,756 |  |  |  | 25,334 |  |  |  | 125,552 |  |  |  | — |  |  |  | 125,552 |
Total operating expenses |  |  | 56,313 |  |  |  | 20,711 |  |  |  | 2,261 |  |  |  | 79,285 |  |  |  | 37,525 |  |  |  | 116,810 |
Operating income / (loss) |  |  | 18,149 |  |  |  | 5,045 |  |  |  | 23,073 |  |  |  | 46,267 |  |  |  | (37,525 | ) |  |  | 8,742 |
Income / (loss) from equity method affiliates |  |  | — |  |  |  | 5,621 |  |  |  | 263 |  |  |  | 5,884 |  |  |  | — |  |  |  | 5,884 |
Other non operating income / (expense) |  |  | — |  |  |  | 970 |  |  |  | — |  |  |  | 970 |  |  |  | (5,130 | ) |  |  | (4,160 | )
Income / (loss) before income taxes |  |  | 18,149 |  |  |  | 11,636 |  |  |  | 23,336 |  |  |  | 53,121 |  |  |  | (42,655 | ) |  |  | 10,466 |
Income tax expense / (benefit) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (749 | ) |  |  | (749 | )
Net income / (loss) |  |  | 18,149 |  |  |  | 11,636 |  |  |  | 23,336 |  |  |  | 53,121 |  |  |  | (41,906 | ) |  |  | 11,215 |
Less: Net income / (loss) attributable to the non-controlling interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,620 |  |  |  | 3,620 |
Net income / (loss) attributable to IFMI. |  | $ | 18,149 |  |  | $ | 11,636 |  |  | $ | 23,336 |  |  | $ | 53,121 |  |  | $ | (45,526 | ) |  | $ | 7,595 |
Other statement of operations data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization (included in total operating expense) |  | $ | — |  |  | $ | 600 |  |  | $ | — |  |  | $ | 600 |  |  | $ | 1,756 |  |  | $ | 2,356 |
Balance sheet data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets (2) |  | $ | 200,207 |  |  | $ | 26,069 |  |  | $ | 43,481 |  |  | $ | 269,757 |  |  | $ | 36,990 |  |  | $ | 306,747 |
Investment in equity method affiliates (included in total assets) |  | $ | — |  |  | $ | 502 |  |  | $ | 1,604 |  |  | $ | 2,106 |  |  | $ | — |  |  | $ | 2,106 |
(1) | Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not allocated include: (1) operating expenses (such as cash compensation and benefits, equity-based compensation expense, professional fees, travel and entertainment, consulting fees, and rent) related to support departments excluding certain departments that directly support the Capital Markets business segment; (2) interest expense on debt; and (3) income taxes. Management does not consider these items necessary for an understanding of the operating results of these business segments and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker. During the third quarter of 2012, PrinceRidge (Capital Markets business segment) entered into an intercompany engagement with CCFL (Asset Management business segment). This intercompany transaction was eliminated in the unallocated segment.
(2) | Unallocated assets primarily include (1) amounts due from related parties; (2) furniture and equipment, net; and (3) other assets that are not considered necessary for an understanding of business segment assets and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker.
(3) | Goodwill and intangible assets as of December 31, 2012 and 2011 are allocated to the Capital Markets and Asset Management business segments as indicated in the table listed below.
As of December 31, 2012:
|  | Capital Markets |  |  | Asset Management |  |  | Principal Investing |  |  | Segment Total |  |  | Unallocated |  |  | Total |
Goodwill |  | $ | 7,937 |  |  | $ | 3,176 |  |  | $ | — |  |  | $ | 11,113 |  |  |  | — |  |  | $ | 11,113 |
Intangible assets (included in other assets) |  | $ | 332 |  |  |  | — |  |  |  | — |  |  | $ | 332 |  |  |  | — |  |  | $ | 332 |
As of December 31, 2011:
|  | Capital Markets |  |  | Asset Management |  |  | Principal Investing |  |  | Segment Total |  |  | Unallocated |  |  | Total |
Goodwill |  | $ | 8,030 |  |  | $ | 3,176 |  |  | $ | — |  |  | $ | 11,206 |  |  |  | — |  |  | $ | 11,206 |
Intangible assets (included in other assets) |  | $ | 538 |  |  |  | — |  |  |  | — |  |  | $ | 538 |  |  |  | — |  |  | $ | 538 |
Asset management total operating expenses included an impairment charge of $0, $0, and $5,607 for the years ended December 31, 2012, 2011, and 2010, respectively, related to the impairment of goodwill allocated to the Cira SCM reporting unit. See note 12. Geographic Information The Company conducts its business activities through offices in the following locations: (1) United States, and (2) United Kingdom and other. Total revenues by geographic area are summarized as follows: GEOGRAPHIC INFORMATION (Dollars in Thousands)
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Total Revenues: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 78,597 |  |  | $ | 90,475 |  |  | $ | 111,067 |
United Kingdom & Other |  |  | 16,643 |  |  |  | 9,856 |  |  |  | 14,485 |
|  | $ | 95,240 |  |  | $ | 100,331 |  |  | $ | 125,552 |
Long-lived assets attributable to an individual country, other than the United States, are not material.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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