Segment and Geographic Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

21.Segment and Geographic Information

Segment Information

The Company’s business segments are determined based on the products and services provided and reflect the manner in which financial information is evaluated by management. The Company’s operations consist of two reportable segments, Financial Services and Real Estate Services.

The Company’s Financial Services segment specializes in the brokerage of a broad range of products, including fixed income (rates and credit), foreign exchange, equities, insurance, energy and commodities, and futures. It also provides a wide range of services, including trade execution, broker-dealer services, clearing, trade compression, post trade, information, and other back-office services to a broad range of financial and non-financial institutions. The Company’s Real Estate Services segment offers commercial real estate tenants, owners, investors and developers a wide range of services, including leasing and corporate advisory, investment sales and real estate finance, consulting, project and development management, and property and facilities management.

The Company evaluates the performance and reviews the results of the segments based on each segment’s “Income (loss) from operations before income taxes.”

The amounts shown below for the Financial Services and Real Estate Services segments reflect the amounts that are used by management to allocate resources and assess performance, which is based on each segment’s “Income (loss) from operations before income taxes.” In addition to the two business segments, the tables below include a “Corporate Items” category. Corporate revenues include fees from related parties and interest income. Corporate expenses include non-cash compensation expenses (such as the grant of exchangeability to limited partnership units; redemption/exchange of partnership units, issuance of restricted shares and a reserve on compensation-related partnership loans; and allocations of net income to limited partnership units and FPUs), as well as unallocated expenses, such as certain professional and consulting fees, executive compensation and interest expense, which are managed separately at the corporate level. Corporate other income (losses), net includes gains that are not considered part of the Company’s ordinary, ongoing business, such as the mark-to-market on marketable securities and any related hedging transactions when applicable, and the adjustment of future earn-out payments.

Certain financial information for the Company’s segments is presented below. Certain reclassifications have been made to previously reported amounts to conform to the current presentation. See Note 15—“Goodwill and Other Intangible Assets, Net,” for goodwill by reportable segment.

Three months ended March 31, 2017 (in thousands):

	Financial Services		Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	135,752	$	—	$	—		$	135,752
Credit		81,870		—		—			81,870
Foreign exchange		80,026		—		—			80,026
Energy and commodities		53,145		—		—			53,145
Equities, insurance, and other asset classes		75,706		—		—			75,706
Leasing and other services		—		127,574		—			127,574
Real estate capital markets		—		78,796		—			78,796
Real estate management services		—		50,630		—			50,630
Fees from related parties		—		—		6,565			6,565
Data, software and post-trade		13,087		—		—			13,087
Other revenues		942		4		30			976
Total non-interest revenues		440,528		257,004		6,595			704,127
Interest income		650		953		1,700			3,303
Total revenues		441,178		257,957		8,295			707,430
Interest expense		—		—		14,821			14,821
Non-interest expenses		353,906		236,583		79,252			669,741
Total expenses		353,906		236,583		94,073			684,562
Other income (losses), net:
Gain (loss) on divestiture and sale of investments		—		—		557			557
Gains (losses) on equity investments		—		—		237			237
Other income (losses)		4,648		—		441			5,089
Total other income (losses), net		4,648		—		1,235			5,883
Income (loss) from operations before income taxes	$	91,920	$	21,374	$	(84,543	)	$	28,751

Three months ended March 31, 2016 (in thousands):

	Financial Services		Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	119,619	$	—	$	—		$	119,619
Credit		84,915		—		—			84,915
Foreign exchange		82,468		—		—			82,468
Energy and commodities		64,398		—		—			64,398
Equities, insurance, and other asset classes		48,366		—		—			48,366
Leasing and other services		—		105,627		—			105,627
Real estate capital markets		—		62,133		—			62,133
Real estate management services		—		46,058		—			46,058
Fees from related parties		—		—		7,070			7,070
Data, software and post-trade		13,934		—		—			13,934
Other revenues		3,396		—		286			3,682
Total non-interest revenues		417,096		213,818		7,356			638,270
Interest income		511		662		1,211			2,384
Total revenues		417,607		214,480		8,567			640,654
Interest expense		—		—		13,458			13,458
Non-interest expenses		345,114		198,574		62,089			605,777
Total expenses		345,114		198,574		75,547			619,235
Other income (losses), net:
Gain (loss) on divestiture and sale of investments		—		—		—			—
Gains (losses) on equity investments		—		—		888			888
Other income (losses)		10,972		—		(13,889	)		(2,917	)
Total other income (losses), net		10,972		—		(13,001	)		(2,029	)
Income (loss) from operations before income taxes	$	83,465	$	15,906	$	(79,981	)	$	19,390

Total assets by reportable segment (in thousands):

Total Assets1	Financial Services		Real Estate Services		Total
At March 31, 2017	$	4,128,035	$	779,656	$	4,907,691
At December 31, 2016	$	2,707,677	$	800,723	$	3,508,400

¹ Corporate assets have been fully allocated to the Company’s business segments.

Geographic Information

The Company offers products and services in the U.S., U.K., Asia (including Australia), France, Other Americas, Other Europe, and the Middle East and Africa region (defined as the “MEA” region). Information regarding revenues for the three months ended March 31, 2017 and 2016, respectively, is as follows (in thousands):

	Three Months Ended March 31,
	2017		2016
Revenues:
United States	$	385,923	$	356,828
United Kingdom		186,810		163,691
Asia		61,109		56,751
France		25,265		25,567
Other Americas		14,321		14,607
Other Europe/MEA		34,002		23,210
Total revenues	$	707,430	$	640,654

Information regarding long-lived assets (defined as loans, forgivable loans and other receivables from employees and partners, net; fixed assets, net; certain other investments; goodwill; other intangible assets, net of accumulated amortization; and rent and other deposits) in the geographic areas as of March 31, 2017 and December 31, 2016, respectively, is as follows (in thousands):

	March 31		December 31
	2017		2016
Long-lived assets:
United States	$	1,279,147	$	1,275,482
United Kingdom		337,697		229,555
Asia		25,563		23,154
France		5,844		5,540
Other Americas		24,469		22,246
Other Europe/MEA		5,710		4,952
Total long-lived assets	$	1,678,430	$	1,560,929