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Note 29 - Segment and Geographic Information
 12 Months Ended
Dec. 31, 2021
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, 2021

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

        
  

Markets

  

Management

  

Investing

  

Total

  

Unallocated (1)

  

Total

 

Net trading

 $69,385  $-  $-  $69,385  $-  $69,385 

Asset management

  -   10,923   -   10,923   -   10,923 

New issue and advisory

  28,736   -   -   28,736   -   28,736 

Principal transactions and other income

  (3)  768   36,559   37,324   -   37,324 

Total revenues

  98,118   11,691   36,559   146,368   -   146,368 

Compensation and benefits

  42,064   6,630   16,546   65,240   19,808   85,048 

Other operating expense

  13,914   2,151   387   16,452   5,275   21,727 

Total operating expenses

  55,978   8,781   16,933   81,692   25,083   106,775 

Operating income / (loss)

  42,140   2,910   19,626   64,676   (25,083)  39,593 

Interest income (expense)

  (435)  -   -   (435)  (6,798)  (7,233)

Income / (loss) from equity method affiliates

  -   -   36,010   36,010   -   36,010 

Other non-operating income

  -   -   -   -   2,127   2,127 

Income / (loss) before income taxes

  41,705   2,910   55,636   100,251   (29,754)  70,497 

Income tax expense / (benefit)

  -   -   -   -   (1,614)  (1,614)

Net income / (loss)

  41,705   2,910   55,636   100,251   (28,140)  72,111 

Less: Net income / (loss) attributable to the non-controlling interest

  -   1,878   33,696   35,574   25,255   60,829 

Net income / (loss) attributable to Cohen & Company Inc.

 $41,705  $1,032  $21,940  $64,677  $(53,395) $11,282 
                         

Other statement of operations data

                        

Depreciation and amortization (included in total operating expense)

 $1  $2  $-  $3  $368  $371 

 

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

  -   -   (2,955)  (2,955)  -   (2,955)

Income / (loss) before income taxes

  18,330   2,047   30,041   50,418   (20,634)  29,784 

Income tax expense / (benefit)

  -   -   -   -   (8,669)  (8,669)

Net income / (loss)

  18,330   2,047   30,041   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  $639  $21,401  $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 

Salaries/Wages

  18,575   4,805   -   23,380   2,592   25,972 

Other Operating Expense

  12,257   2,456   399   15,112   4,541   19,653 

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

  -   -   (289)  (289)  (1,230)  (1,519)

Net income / (loss) attributable to Cohen & Company Inc.

 $8,997  $829  $909  $10,735  $(12,789) $(2,054)
                         

Other statement of operations data

                        

Depreciation and amortization (included in total operating expense)

 $18  $3  $-  $21  $297  $318 

 

(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, 2021

(Dollars in Thousands)

 

  

Capital

  

Asset

  

Principal

  

Segment

        
  

Markets

  

Management

  

Investing

  

Total

  

Unallocated (1)

  

Total

 

Total Assets

 $3,501,973  $5,251  $104,491  $3,611,715  $42,544  $3,654,259 
                         

Included within total assets:

                        

Investments in equity method affiliates

 $-  $-  $48,238  $48,238  $-  $48,238 

Goodwill (2)

 $54  $55  $-  $109  $-  $109 

Intangible assets (2)

 $166  $-  $-  $166  $-  $166 

 

 

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 

 

(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,

 
  

2021

  

2020

  

2019

 

Total Revenues:

            

United States

 $140,420  $125,151  $43,853 

United Kingdom & Other

  5,948   4,959   5,813 

Total

 $146,368  $130,110  $49,666 

 

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