Segment and Geographic Information

6 Months Ended

Jun. 30, 2012

Segment and Geographic Information [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

18. 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 for the six and three months ended June 30, 2012 and 2011 is 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 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.

As of and for the six months ended June 30, 2012	Capital Markets			Asset Management		Principal Investing			Segment Total			Unallocated (1)			Total
Summary statement of operations
Net trading	$	37,642		$	—	$	—		$	37,642		$	—		$	37,642
Asset management		—			9,545		—			9,545			—			9,545
New issue and advisory		1,266			—		—			1,266			—			1,266
Principal transactions and other income		(34	)		393		(5,015	)		(4,656	)		—			(4,656	)
Total revenues		38,874			9,938		(5,015	)		43,797			—			43,797
Total operating expenses		37,676			2,842		156			40,674			7,496			48,170
Operating income / (loss)		1,198			7,096		(5,171	)		3,123			(7,496	)		(4,373	)
Income / (loss) from equity method affiliates		—			—		2,042			2,042			—			2,042
Other non operating income / (expense)		(4,224	)		—		—			(4,224	)		(2,449	)		(6,673	)
Income / (loss) before income taxes		(3,026	)		7,096		(3,129	)		941			(9,945	)		(9,004	)
Income tax expense / (benefit)		—			—		—			—			54			54
Net income / (loss)		(3,026	)		7,096		(3,129	)		941			(9,999	)		(9,058	)
Less: Net income / (loss) attributable to the non-controlling interest		(238	)		—		—			(238	)		(2,883	)		(3,121	)
Net income / (loss) attributable to IFMI	$	(2,788	)	$	7,096	$	(3,129	)	$	1,179		$	(7,116	)	$	(5,937	)
Other statement of operations data:
Depreciation and amortization (included in total operating expense)	$	452		$	7	$	—		$	459		$	275		$	734
Balance sheet data:
Total assets (2) (3)	$	444,297		$	7,219	$	39,995		$	491,511		$	11,524		$	503,035
Investment in equity method affiliates (included in total assets)	$	—		$	—	$	2,390		$	2,390		$	—		$	2,390

As of and for the six months ended June 30, 2011	Capital Markets			Asset Management		Principal Investing			Segment Total			Unallocated (1)			Total
Summary statement of operations
Net trading	$	43,514		$	—	$	—		$	43,514		$	—		$	43,514
Asset management		—			11,225		—			11,225			—			11,225
New issue and advisory		1,240			—		—			1,240			—			1,240
Principal transactions and other income		174			920		(1,302	)		(208	)		—			(208	)
Total revenues		44,928			12,145		(1,302	)		55,771			—			55,771
Total operating expenses		38,187			3,317		157			41,661			20,701			62,362
Operating income / (loss)		6,741			8,828		(1,459	)		14,110			(20,701	)		(6,591	)
Income / (loss) from equity method affiliates		—			4,359		171			4,530			—			4,530
Other non operating income / (expense)		13			—		—			13			(2,942	)		(2,929	)
Income / (loss) before income taxes		6,754			13,187		(1,288	)		18,653			(23,643	)		(4,990	)
Income tax expense / (benefit)		—			—		—			—			(346	)		(346	)
Net income / (loss)		6,754			13,187		(1,288	)		18,653			(23,297	)		(4,644	)
Less: Net income / (loss) attributable to the non-controlling interest		(53	)		—		—			(53	)		(1,595	)		(1,648	)
Net income / (loss) attributable to IFMI	$	6,807		$	13,187	$	(1,288	)	$	18,706		$	(21,702	)	$	(2,996	)
Other statement of operations data:
Depreciation and amortization (included in total operating expense)	$	145		$	7	$	—		$	152		$	821		$	973
Balance sheet data:
Total assets (2) (3)	$	370,731		$	21,553	$	44,020		$	436,304		$	19,429		$	455,733
Investment in equity method affiliates (included in total assets)	$	—		$	—	$	1,488		$	1,488		$	—		$	1,488

For the three months ended June 30, 2012	Capital Markets			Asset Management		Principal Investing			Segment Total			Unallocated (1)			Total
Summary statement of operations
Net trading	$	19,951		$	—	$	—		$	19,951		$	—		$	19,951
Asset management		—			4,608		—			4,608			—			4,608
New issue and advisory		189			—		—			189			—			189
Principal transactions and other income		(7	)		233		63			289			—			289
Total revenues		20,133			4,841		63			25,037			—			25,037
Total operating expenses		18,806			1,762		75			20,643			3,564			24,207
Operating income / (loss)		1,327			3,079		(12	)		4,394			(3,564	)		830
Income / (loss) from equity method affiliates		—			—		1,526			1,526			—			1,526
Other non operating income / (expense)		(4,289	)		—		—			(4,289	)		(1,172	)		(5,461	)
Income / (loss) before income taxes		(2,962	)		3,079		1,514			1,631			(4,736	)		(3,105	)
Income tax expense / (benefit)		—			—		—			—			63			63
Net income / (loss)		(2,962	)		3,079		1,514			1,631			(4,799	)		(3,168	)
Less: Net income / (loss) attributable to the non-controlling interest		(109	)		—		—			(109	)		(981	)		(1,090	)
Net income / (loss) attributable to IFMI	$	(2,853	)	$	3,079	$	1,514		$	1,740		$	(3,818	)	$	(2,078	)
Other statement of operations data:
Depreciation and amortization (included in total operating expense)	$	223		$	3	$	—		$	226		$	117		$	343

For the three months ended June 30, 2011	Capital Markets			Asset Management		Principal Investing		Segment Total			Unallocated (1)			Total
Summary statement of operations
Net trading	$	16,240		$	—	$	—	$	16,240		$	—		$	16,240
Asset management		—			5,255		—		5,255			—			5,255
New issue and advisory		1,131			—		—		1,131			—			1,131
Principal transactions and other income		156			342		333		831			—			831
Total revenues		17,527			5,597		333		23,457			—			23,457
Total operating expenses		18,733			1,040		102		19,875			11,760			31,635
Operating income / (loss)		(1,206	)		4,557		231		3,582			(11,760	)		(8,178	)
Income / (loss) from equity method affiliates		—			4,359		76		4,435			—			4,435
Other non operating income / (expense)		13			—		—		13			(1,460	)		(1,447	)
Income / (loss) before income taxes		(1,193	)		8,916		307		8,030			(13,220	)		(5,190	)
Income tax expense / (benefit)		—			—		—		—			(133	)		(133	)
Net income / (loss)		(1,193	)		8,916		307		8,030			(13,087	)		(5,057	)
Less: Net income / (loss) attributable to the non-controlling interest		(53	)		—		—		(53	)		(1,633	)		(1,686	)
Net income / (loss) attributable to IFMI	$	(1,140	)	$	8,916	$	307	$	8,083		$	(11,454	)	$	(3,371	)
Other statement of operations data:
Depreciation and amortization (included in total operating expense)	$	116		$	3	$	—	$	119		$	384		$	503

(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 related to support departments excluding certain departments that directly support the capital markets 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 segments and such amounts are excluded in segment reporting to the Chief Operating Decision Maker.

(2) 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 segment assets and such amounts are excluded in segment reporting to the Chief Operating Decision Maker.

(3) Goodwill and intangible assets as of June 30, 2012 and 2011 are allocated to the Capital Markets and Asset Management segments as indicated in the table listed below.

As of June 30, 2012:

	Capital Markets		Asset Management		Principal Investing		Segment Total		Unallocated		Total
Goodwill	$	7,937	$	3,176	$	—	$	11,113	$	—	$	11,113
Intangible assets (included in other assets)	$	538	$	—	$	—	$	538	$	—	$	538

As of June 30, 2011:

	Capital Markets		Asset Management		Principal Investing		Segment Total		Unallocated		Total
Goodwill	$	8,000	$	3,176	$	—	$	11,176		—	$	11,176
Intangible assets (included in other assets)	$	538	$	—	$	—	$	538		—	$	538

Geographic Information

The Company conducts 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 INFORMATION

(Dollars in Thousands)

	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
Total Revenues:
United States	$	20,390	$	21,057	$	37,503	$	49,246
United Kingdom & Other		4,647		2,400		6,294		6,525
Total	$	25,037	$	23,457	$	43,797	$	55,771

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