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Note 29 - Segment and Geographic Information
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
29.
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, 2020
(Dollars in Thousands)
 
   
Capital
    
Asset
    
Principal
    
Segment
    
 
      
 
  
   
Markets
    
Management
    
Investing
    
Total
    
Unallocated (1)
    
Total
  
Net trading
   $
73,611
     $
-
     $
-
     $
73,611
     $
-
     $
73,611
  
Asset management
    
-
      
8,759
      
-
      
8,759
      
-
      
8,759
  
New issue and advisory
    
2,234
      
-
      
-
      
2,234
      
-
      
2,234
  
Principal transactions and other income
    
3
      
639
      
44,864
      
45,506
      
-
      
45,506
  
Total revenues
    
75,848
      
9,398
      
44,864
      
130,110
      
-
      
130,110
  
Compensation and benefits    
36,092
      
5,309
      
11,700
      
53,101
      
6,801
      
59,902
  
Other operating expense
    
12,546
      
2,042
      
168
      
14,756
      
5,241
      
19,997
  
Impairment of goodwill    
7,883
      
-
      
-
      
7,883
      
-
      
7,883
  
Total operating expenses
    
56,521
      
7,351
      
11,868
      
75,740
      
12,042
      
87,782
  
Operating income / (loss)
    
19,327
      
2,047
      
32,996
      
54,370
      
(12,042
 )    
42,328
  
Interest income (expense)
    
(997
 )    
-
      
-
      
(997
 )    
(8,592
 )    
(9,589
 )
Income / (loss) from equity method affiliates
    
-
      
639
      
(3,594
 )    
(2,955
 )    
-
      
(2,955
 )
Income / (loss) before income taxes
    
18,330
      
2,686
      
29,402
      
50,418
      
(20,634
 )    
29,784
  
Income tax expense / (benefit)
    
-
      
-
      
-
      
-
      
(8,669
 )    
(8,669
 )
Net income / (loss)
    
18,330
      
2,686
      
29,402
      
50,418
      
(11,965
 )    
38,453
  
Less: Net income / (loss) attributable to the non-controlling interest
    
-
      
1,408
      
8,640
      
10,048
      
14,200
      
24,248
  
Net income / (loss) attributable to Cohen & Company Inc.
   $
18,330
     $
1,278
     $
20,762
     $
40,370
     $
(26,165
 )   $
14,205
  
                                                 
Other statement of operations data                                                
Depreciation and amortization (included in total operating expense)   $
18
     $
3
     $
-
     $
21
     $
313
     $
334
  
 
SEGMENT INFORMATION
Statement of Operations Information
For the Year Ended
December 31, 2019
(Dollars in Thousands)
 
   
Capital
    
Asset
    
Principal
    
Segment
    
 
      
 
  
   
Markets
    
Management
    
Investing
    
Total
    
Unallocated (1)
    
Total
  
Net trading
   $
38,172
     $
-
     $
-
     $
38,172
     $
-
     $
38,172
  
Asset management
    
-
      
7,560
      
-
      
7,560
      
-
      
7,560
  
New issue and advisory
    
1,831
      
-
      
-
      
1,831
      
-
      
1,831
  
Principal transactions and other income
    
1
      
530
      
1,572
      
2,103
      
-
      
2,103
  
Total revenues
    
40,004
      
8,090
      
1,572
      
49,666
      
-
      
49,666
  
Compensation and benefits    
18,575
      
4,805
      
-
      
23,380
      
2,592
      
25,972
  
Other operating expense    
12,257
      
2,456
      
399
      
15,112
      
4,541
      
19,653
  
Impairment of goodwill    
-
      
-
      
-
      
-
      
-
      
-
  
Total operating expenses
    
30,832
      
7,261
      
399
      
38,492
      
7,133
      
45,625
  
Operating income / (loss)
    
9,172
      
829
      
1,173
      
11,174
      
(7,133
 )    
4,041
  
Interest income (expense)
    
(175
 )    
-
      
-
      
(175
 )    
(7,409
 )    
(7,584
 )
Income / (loss) from equity method affiliates
    
-
      
-
      
(553
 )    
(553
 )    
-
      
(553
 )
Income / (loss) before income taxes
    
8,997
      
829
      
620
      
10,446
      
(14,542
 )    
(4,096
 )
Income tax expense / (benefit)
    
-
      
-
      
-
      
-
      
(523
 )    
(523
 )
Net income / (loss)
    
8,997
      
829
      
620
      
10,446
      
(14,019
 )    
(3,573
 )
Less: Net income / (loss) attributable to the non-controlling interest
    
-
      
-
      
(288
 )    
(288
 )    
(1,231
 )    
(1,519
 )
Net income / (loss) attributable to Cohen & Company Inc.
   $
8,997
     $
829
     $
908
     $
10,734
     $
(12,788
 )   $
(2,054
 )
                                                 
Other statement of operations data
      
 
      
 
      
 
      
 
      
 
      
 
Depreciation and amortization (included in total operating expense)
   $
18
     $
3
     $
-
     $
21
     $
297
     $
318
  
 

 
 
 
 
SEGMENT INFORMATION
Statement of Operations Information
For the Year Ended
December 31, 2018
(Dollars in Thousands)
 
   
Capital
    
Asset
    
Principal
    
Segment
    
 
      
 
  
   
Markets
    
Management
    
Investing
    
Total
    
Unallocated (1)
    
Total
  
Net trading
   $
29,298
     $
-
     $
-
     $
29,298
     $
-
     $
29,298
  
Asset management
    
-
      
12,536
      
-
      
12,536
      
-
      
12,536
  
New issue and advisory
    
2,979
      
-
      
-
      
2,979
      
-
      
2,979
  
Principal transactions and other income
    
39
      
678
      
3,856
      
4,573
      
-
      
4,573
  
Total revenues
    
32,316
      
13,214
      
3,856
      
49,386
      
-
      
49,386
  
Salaries/Wages
    
17,539
      
4,571
      
321
      
22,431
      
2,954
      
25,385
  
Other Operating Expense
    
12,410
      
3,800
      
391
      
16,601
      
3,741
      
20,342
  
Impairment of goodwill
    
-
      
-
      
-
      
-
      
-
      
-
  
Total operating expenses
    
29,949
      
8,371
      
712
      
39,032
      
6,695
      
45,727
  
Operating income / (loss)
    
2,367
      
4,843
      
3,144
      
10,354
      
(6,695
 )    
3,659
  
Interest income (expense)
    
(236
 )    
-
      
-
      
(236
 )    
(8,251
 )    
(8,487
 )
Income / (loss) from equity method affiliates
    
-
      
-
      
-
      
-
      
-
      
-
  
Income / (loss) before income taxes
    
2,131
      
4,843
      
3,144
      
10,118
      
(14,946
 )    
(4,828
 )
Income tax expense / (benefit)
    
-
      
-
      
-
      
-
      
(841
 )    
(841
 )
Net income / (loss)
    
2,131
      
4,843
      
3,144
      
10,118
      
(14,105
 )    
(3,987
 )
Less: Net income / (loss) attributable to the non-controlling interest    
-
      
-
      
-
      
-
      
(1,524
 )    
(1,524
 )
Net income / (loss) attributable to Cohen & Company Inc.   $
2,131
     $
4,843
     $
3,144
     $
10,118
     $
(12,581
 )   $
(2,463
 )
                                                 
Other statement of operations data                                                
Depreciation and amortization (included in total operating expense)   $
48
     $
4
     $
-
     $
52
     $
209
     $
261
  
 
(
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.
  
 
Balance Sheet Data
As of
December 31, 2020
(Dollars in Thousands)
 
   
Capital
    
Asset
    
Principal
    
Segment
    
 
      
 
  
   
Markets
    
Management
    
Investing
    
Total
    
Unallocated (1)
    
Total
  
Total Assets
   $
6,049,599
     $
1,540
     $
72,292
     $
6,123,431
     $
25,948
     $
6,149,379
  
                                                 
Included within total assets:
      
 
      
 
      
 
      
 
      
 
      
 
Investments in equity method affiliates
   $
-
     $
-
     $
13,482
     $
13,482
     $
-
     $
13,482
  
Goodwill (2)
   $
54
     $
55
     $
-
     $
109
     $
-
     $
109
  
Intangible assets (2)
   $
166
     $
-
     $
-
     $
166
     $
-
     $
166
  
 
 
Balance Sheet Data
As of
December 31, 2019
(Dollars in Thousands)
 
   
Capital
    
Asset
    
Principal
    
Segment
    
 
      
 
  
   
Markets
    
Management
    
Investing
    
Total
    
Unallocated (1)
    
Total
  
Total Assets
   $
7,968,491
     $
1,616
     $
18,689
     $
7,988,796
     $
12,828
     $
8,001,624
  
                                                 
Included within total assets:
      
 
      
 
      
 
      
 
      
 
      
 
Investments in equity method affiliates
   $
-
     $
-
     $
3,799
     $
3,799
     $
-
     $
3,799
  
Goodwill (2)
   $
7,937
     $
55
     $
-
     $
7,992
     $
-
     $
7,992
  
Intangible assets (2)
   $
166
     $
-
     $
-
     $
166
     $
-
     $
166
  
 
(
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 has conducted 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 DATA
(Dollars in Thousands)
 
   
Year Ended December 31,
  
   
2020
    
2019
    
2018
  
Total Revenues:
                        
United States
   $
125,067
     $
43,772
     $
43,309
  
United Kingdom & Other
    
5,043
      
5,894
      
6,077
  
Total
   $
130,110
     $
49,666
     $
49,386
  
 
Long-lived assets attributable to an individual country, other than the United States, are
not
material.