BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 15— BUSINESS SEGMENTS

The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company has several operating subsidiaries through which it delivers specific services. The Company provides investment banking, corporate finance, securities lending, restructuring, research, sales and trading and wealth management services to corporate, institutional and high net worth clients. The Company also provides auction and liquidation services to help clients dispose of assets that include multi-location retail inventory, wholesale inventory, trade fixtures, machinery and equipment, intellectual property and real property and valuation and appraisal services to clients with independent appraisals in connection with asset based loans, acquisitions, divestitures and other business needs. As a result of the acquisition of UOL on July 1, 2016, the Company provides consumer services and products over the Internet.

The Company’s business is classified into the Capital Markets segment, Auction and Liquidation segment, Valuation and Appraisal segment and Principal Investments - United Online segment. These reportable segments are all distinct businesses, each with a different marketing strategy and management structure.

The following is a summary of certain financial data for each of the Company’s reportable segments:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Capital Markets reportable segment:
Revenues - Services and fees	$	21,676		$	7,172		$	39,399		$	12,736
Interest income - Securities lending		2,218			—			2,218			—
Total revenues		23,894			7,172			41,617			12,736
Selling, general, and administrative expenses		(23,067	)		(7,669	)		(34,036	)		(13,843	)
Restructuring costs		(3,923	)		—			(3,923	)		—
Interest expense - Securities lending		(1,565	)		—			(1,565	)		—
Depreciation and amortization		(166	)		(23	)		(293	)		(44	)
Segment (loss) income		(4,827	)		(520	)		1,800			(1,151	)
Auction and Liquidation reportable segment:
Revenues - Services and fees		21,807			5,393			35,803			12,300
Revenues - Sale of goods		—			—			—			2
Total revenues		21,807			5,393			35,803			12,302
Direct cost of services		(11,763	)		(2,087	)		(22,097	)		(5,505	)
Cost of goods sold		—			—			—			(2	)
Selling, general, and administrative expenses		(2,749	)		(1,577	)		(4,599	)		(2,802	)
Depreciation and amortization		(5	)		(37	)		(10	)		(78	)
Segment income		7,290			1,692			9,097			3,915
Valuation and Appraisal reportable segment:
Revenues - Services and fees		7,960			7,696			15,756			15,169
Direct cost of services		(3,581	)		(3,473	)		(7,253	)		(6,738	)
Selling, general, and administrative expenses		(2,062	)		(2,124	)		(4,142	)		(4,243	)
Depreciation and amortization		(43	)		(24	)		(87	)		(53	)
Segment income		2,274			2,075			4,274			4,135
Principal Investments - United Online segment:
Revenues - Services and fees		12,952			—			26,255			—
Revenues - Sale of goods		63			—			142			—
Total revenues		13,015			—			26,397			—
Direct cost of services		(3,141	)		—			(6,736	)		—
Cost of goods sold		(130	)		—			(189	)		—
Selling, general, and administrative expenses		(2,791	)		—			(6,103	)		—
Depreciation and amortization		(1,770	)		—			(3,610	)		—
Restructuring costs		(109	)		—			(483	)		—
Segment income		5,074			—			9,276			—
Consolidated operating income from reportable segments		9,811			3,247			24,447			6,899
Corporate and other expenses (including restructuring costs of $2,182 for the three and six months ended June 30, 2017)		(7,251	)		(3,067	)		(11,176	)		(5,054	)
Interest income		150			3			282			6
Interest expense		(1,894	)		(275	)		(2,685	)		(407	)
Income (loss) before income taxes		816			(92	)		10,868			1,444
Benefit (provision) for income taxes		2,547			65			6,396			(101	)
Net income (loss)		3,363			(27	)		17,264			1,343
Net income (loss) attributable to noncontrolling interests		83			74			(37	)		1,196
Net income (loss) attributable to B. Riley Financial, Inc.	$	3,280		$	(101	)	$	17,301		$	147

The following table presents revenues by geographical area:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017		2016
Revenues:
Revenues - Services and fees:
North America	$	64,310		$	19,600	$	115,372	$	39,538
Australia		99			—		1,039		—
Europe		(14	)		661		802		667
Total Revenues - Services and fees	$	64,395		$	20,261	$	117,213	$	40,205
Revenues - Sale of goods
North America	$	63		$	—	$	142	$	2
Revenues - Interest income - Securities lending:
North America	$	2,218		$	—	$	2,218	$	—
Total Revenues:
North America	$	66,591		$	19,600	$	117,732	$	39,540
Australia		99			—		1,039		—
Europe		(14	)		661		802		667
Total Revenues	$	66,676		$	20,261	$	119,573	$	40,207

The following table presents long-lived assets, which consists of property and equipment and other assets, by geographical area:

	As of		As of
	June 30,		December 31,
	2017		2016
Long-lived Assets - Property and Equipment, net:
North America	$	13,450	$	5,785
Australia		—		—
Europe		—		—
Total	$	13,450	$	5,785

Segment assets are not reported to, or used by, the Company’s Chief Operating Decision Maker to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.