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Segment And Geographic Information
 12 Months Ended
Dec. 31, 2013
Segment and Geographic Information [Abstract]  
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 Company’s business segment information was prepared using the following methodologies and generally represents the information that is 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 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 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 segments for the periods indicated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Net trading

 

$
38,528 

 

$

 -

 

$

 -

 

$
38,528 

 

$

 -

 

$
38,528 

Asset management

 

 

 -

 

 
19,803 

 

 

 -

 

 
19,803 

 

 

 -

 

 
19,803 

New issue and advisory

 

 
6,418 

 

 

 -

 

 

 -

 

 
6,418 

 

 

 -

 

 
6,418 

Principal transactions and other income

 

 
542 

 

 
1,712 

 

 
(9,486)

 

 
(7,232)

 

 

 -

 

 
(7,232)

    Total revenues

 

 
45,488 

 

 
21,515 

 

 
(9,486)

 

 
57,517 

 

 

 -

 

 
57,517 

    Total operating expenses

 

 
53,518 

 

 
11,523 

 

 
319 

 

 
65,360 

 

 
13,261 

 

 
78,621 

    Operating income / (loss)

 

 
(8,030)

 

 
9,992 

 

 
(9,805)

 

 
(7,843)

 

 
(13,261)

 

 
(21,104)

Income / (loss) from equity method affiliates

 

 

 -

 

 
546 

 

 
1,282 

 

 
1,828 

 

 

 -

 

 
1,828 

Other non-operating income / (expense)

 

 
(164)

 

 
(9)

 

 

 -

 

 
(173)

 

 
(4,035)

 

 
(4,208)

    Income / (loss) before income taxes

 

 
(8,194)

 

 
10,529 

 

 
(8,523)

 

 
(6,188)

 

 
(17,296)

 

 
(23,484)

Income tax expense / (benefit)

 

 
14 

 

 

 -

 

 

 -

 

 
14 

 

 
(3,579)

 

 
(3,565)

Net income / (loss)

 

 
(8,208)

 

 
10,529 

 

 
(8,523)

 

 
(6,202)

 

 
(13,717)

 

 
(19,919)

Less: Net income / (loss) attributable to the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 non-controlling interest

 

 
(9)

 

 

 -

 

 

 -

 

 
(9)

 

 
(6,592)

 

 
(6,601)

    Net income / (loss) attributable to IFMI

 

$
(8,199)

 

$
10,529 

 

$
(8,523)

 

$
(6,193)

 

$
(7,125)

 

$
(13,318)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other statement of operations data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization (included in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 total operating expense)

 

$
795 

 

$
317 

 

$

 -

 

$
1,112 

 

$
293 

 

$
1,405 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION

Statement of Operations Information

For the Year Ended December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

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 

 

(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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data

As of December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Total Assets

 

$
172,271 

 

$
9,938 

 

$
26,897 

 

$
209,106 

 

$
7,689 

 

$
216,795 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included within total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Investment in equity method affiliates

 

$

 -

 

$
(48)

 

$
17 

 

$
(31)

 

$

 -

 

$
(31)

 Goodwill (2)

 

$
7,937 

 

$
3,176 

 

$

 -

 

$
11,113 

 

$

 -

 

$
11,113 

 Intangible assets (2)

 

$
332 

 

$
151 

 

$

 -

 

$
483 

 

$

 -

 

$
483 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data

As of December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

Asset

 

Principal

 

Segment

 

Unallocated

 

 

 

 

 

Markets

 

Management

 

Investing

 

Total

 

(1)

 

Total

Total Assets

 

$
279,863 

 

$
7,257 

 

$
39,741 

 

$
326,861 

 

$
14,140 

 

$
341,001 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included within total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Investment in equity method affiliates

 

$

 -

 

$
493 

 

$
1,417 

 

$
1,910 

 

$

 -

 

$
1,910 

 Goodwill (2)

 

$
7,937 

 

$
3,176 

 

$

 -

 

$
11,113 

 

$

 -

 

$
11,113 

 Intangible assets (2)

 

$
332 

 

$

 -

 

$

 -

 

$
332 

 

$

 -

 

$
332 

 

(1)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.

(2)Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the table from above.

Geographic Information

The Company conducts its business activities through offices in the following locations: (1) United States; (2) United Kingdom and other; and (3) Asia. Total revenues by geographic area are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GEOGRAPHIC DATA

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

For the year ended December 31,

 

2013

 

2012

 

2011

Total Revenues:

 

 

 

 

 

 

 

 

United States

$
44,043 

 

$
78,597 

 

$
90,475 

United Kingdom & Other

 
11,178 

 

 
16,643 

 

 
9,856 

Asia

 
2,296 

 

 

 -

 

 

 -

 Total

$
57,517 

 

$
95,240 

 

$
100,331 

 

Long-lived assets attributable to an individual country, other than the United States, are not material.  See note 31.