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 June 30, 2017 (in thousands):

	Financial Services		Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	133,469	$	—	$	—		$	133,469
Credit		70,730		—		—			70,730
Foreign exchange		79,681		—		—			79,681
Energy and commodities		48,479		—		—			48,479
Equities, insurance, and other asset classes		85,324		—		—			85,324
Leasing and other services		—		144,681		—			144,681
Real estate capital markets		—		98,029		—			98,029
Real estate management services		—		51,589		—			51,589
Fees from related parties		—		—		5,576			5,576
Data, software and post-trade		13,322		—		—			13,322
Other revenues		655		128		93			876
Total non-interest revenues		431,660		294,427		5,669			731,756
Interest income		657		890		4,454			6,001
Total revenues		432,317		295,317		10,123			737,757
Interest expense		—		—		16,676			16,676
Non-interest expenses		351,579		261,512		68,947			682,038
Total expenses		351,579		261,512		85,623			698,714
Other income (losses), net:
Gains (losses) on equity investments		—		—		1,602			1,602
Other income (losses)		4,069		—		786			4,855
Total other income (losses), net		4,069		—		2,388			6,457
Income (loss) from operations before income taxes	$	84,807	$	33,805	$	(73,112	)	$	45,500

Three months ended June 30, 2016 (in thousands):

	Financial Services			Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	120,678		$	—	$	—		$	120,678
Credit		77,330			—		—			77,330
Foreign exchange		76,835			—		—			76,835
Energy and commodities		57,306			—		—			57,306
Equities, insurance, and other asset classes		45,593			—		—			45,593
Leasing and other services		—			124,555		—			124,555
Real estate capital markets		—			82,739		—			82,739
Real estate management services		—			45,529		—			45,529
Fees from related parties		—			—		4,865			4,865
Data, software and post-trade		14,160			—		—			14,160
Other revenues		197			76		129			402
Total non-interest revenues		392,099			252,899		4,994			649,992
Interest income		641			863		2,274			3,778
Total revenues		392,740			253,762		7,268			653,770
Interest expense		—			—		14,624			14,624
Non-interest expenses		340,758			229,032		51,027			620,817
Total expenses		340,758			229,032		65,651			635,441
Other income (losses), net:
Gains (losses) on equity investments		—			—		863			863
Other income (losses)		(1,326	)		—		11,338			10,012
Total other income (losses), net		(1,326	)		—		12,201			10,875
Income (loss) from operations before income taxes	$	50,656		$	24,730	$	(46,182	)	$	29,204

Six months ended June 30, 2017 (in thousands):

	Financial Services		Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	269,221	$	—	$	—		$	269,221
Credit		152,600		—		—			152,600
Foreign exchange		159,707		—		—			159,707
Energy and commodities		101,624		—		—			101,624
Equities, insurance, and other asset classes		161,030		—		—			161,030
Leasing and other services		—		272,255		—			272,255
Real estate capital markets		—		176,825		—			176,825
Real estate management services		—		102,219		—			102,219
Fees from related parties		—		—		12,141			12,141
Data, software and post-trade		26,409		—		—			26,409
Other revenues		1,597		132		123			1,852
Total non-interest revenues		872,188		551,431		12,264			1,435,883
Interest income		1,307		1,843		6,154			9,304
Total revenues		873,495		553,274		18,418			1,445,187
Interest expense		—		—		31,497			31,497
Non-interest expenses		705,485		498,095		148,199			1,351,779
Total expenses		705,485		498,095		179,696			1,383,276
Other income (losses), net:
Gain (loss) on divestiture and sale of investments		—		—		557			557
Gains (losses) on equity investments		—		—		1,839			1,839
Other income (losses)		8,717		—		1,227			9,944
Total other income (losses), net		8,717		—		3,623			12,340
Income (loss) from operations before income taxes	$	176,727	$	55,179	$	(157,655	)	$	74,251

Six months ended June 30, 2016 (in thousands):

	Financial Services		Real Estate Services		Corporate Items			Total
Brokerage revenues:
Rates	$	240,297	$	—	$	—		$	240,297
Credit		162,245		—		—			162,245
Foreign exchange		159,303		—		—			159,303
Energy and commodities		121,704		—		—			121,704
Equities, insurance, and other asset classes		93,959		—		—			93,959
Leasing and other services	—			230,182		—			230,182
Real estate capital markets	—			144,872		—			144,872
Real estate management services	—			91,587		—			91,587
Fees from related parties	—			—		11,935			11,935
Data, software and post-trade		28,094		—		—			28,094
Other revenues		3,593		76		415			4,084
Total non-interest revenues		809,195		466,717		12,350			1,288,262
Interest income		1,152		1,525		3,485			6,162
Total revenues		810,347		468,242		15,835			1,294,424
Interest expense		—		—		28,082			28,082
Non-interest expenses		685,872		427,606		113,116			1,226,594
Total expenses		685,872		427,606		141,198			1,254,676
Other income (losses), net:
Gain (loss) on divestiture and sale of investments		—		—		—			—
Gains (losses) on equity investments		—		—		1,751			1,751
Other income (losses)		9,646		—		(2,551	)		7,095
Total other income (losses), net		9,646		—		(800	)		8,846
Income (loss) from operations before income taxes	$	134,121	$	40,636	$	(126,163	)	$	48,594

Total assets by reportable segment (in thousands):

Total Assets¹

Financial

Services

Real Estate

Services

Total

At June 30, 2017

4,351,569

829,313

5,180,882

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), Other Europe, the Middle East and Africa region (defined as the “MEA” region), France, and Other Americas. Information regarding revenues for the three and six months ended June 30, 2017 and 2016, respectively, is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Revenues:
United States	$	424,454	$	375,430	$	810,377	$	732,258
United Kingdom		177,796		161,659		364,606		325,350
Asia		58,648		52,704		119,757		109,455
Other Europe/MEA		37,737		23,950		71,739		47,160
France		23,654		25,271		48,919		50,838
Other Americas		15,468		14,756		29,789		29,363
Total revenues	$	737,757	$	653,770	$	1,445,187	$	1,294,424

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 June 30, 2017 and December 31, 2016, respectively, is as follows (in thousands):

	June 30		December 31
	2017		2016
Long-lived assets:
United States	$	1,299,683	$	1,275,482
United Kingdom		340,250		229,555
Asia		26,138		23,154
Other Europe/MEA		6,577		4,952
France		6,284		5,540
Other Americas		25,657		22,246
Total long-lived assets	$	1,704,589	$	1,560,929