BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

The Company’s business is classified into six reportable operating segments: the Capital Markets segment, Wealth Management segment, Auction and Liquidation segment, Financial Consulting segment, Communications segment, and Consumer segment. These reportable segments are all distinct businesses, each with a different marketing strategy and management structure. During the fourth quarter of 2022, the Company realigned its segment reporting structure to reflect organizational changes from recent acquisitions and the manner in which capital is allocated. The Consumer segment includes the previously reported Brands segment and Targus, which the Company acquired in the fourth quarter of 2022. The Company has also re-aligned its previously reported Principal Investments - Communications and Other segment into the Communications segment and the All Other category that is reported with Corporate and Other below.

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

	Year Ended December 31,
	2022		2021		2020
			(As Restated)		(As Restated)
Capital Markets segment:
Revenues - Services and fees	$	292,933	$	555,585	$	318,714
Trading (loss) income and fair value adjustments on loans	(206,150)		212,922		55,873
Interest income - Loans and securities lending	240,813		122,723		102,499
Total revenues	327,596		891,230		477,086
Selling, general and administrative expenses	(171,006)		(345,455)		(198,962)
Restructuring charge	—		—		(917)
Interest expense - Securities lending and loan participations sold	(66,495)		(52,631)		(42,451)
Depreciation and amortization	(8,493)		(2,136)		(2,386)
Segment (loss) income	81,602		491,008		232,370
Wealth Management segment:
Revenues - Services and fees	230,735		374,361		72,345
Trading income and fair value adjustments	3,522		7,623		804
Total revenues	234,257		381,984		73,149
Selling, general and administrative expenses	(258,134)		(357,130)		(68,368)
Restructuring charge	(4,955)		—		—
Depreciation and amortization	(5,488)		(8,920)		(1,880)

	Year Ended December 31,
	2022	2021	2020
Segment (loss) income	(34,320)	15,934	2,901
Auction and Liquidation segment:
Revenues - Services and fees	12,581	20,169	63,101
Revenues - Sale of goods	56,928	53,348	25,663
Interest Income - Loan	4,587	—	—
Total revenues	74,096	73,517	88,764
Direct cost of services	(23,920)	(30,719)	(40,730)
Cost of goods sold	(17,893)	(20,675)	(9,766)
Selling, general and administrative expenses	(19,683)	(14,069)	(12,357)
Restructuring charge	—	—	(140)
Depreciation and amortization	—	—	(2)
Segment income	12,600	8,054	25,769
Financial Consulting segment:
Revenues - Services and fees	98,508	94,312	91,622
Selling, general and administrative expenses	(81,891)	(77,062)	(68,232)
Restructuring charge	—	—	(500)
Depreciation and amortization	(305)	(356)	(347)
Segment income	16,312	16,894	22,543
Communications segment:
Revenues - Services and fees	228,129	88,490	83,666
Revenues - Sale of goods	7,526	4,857	3,472
Total revenues	235,655	93,347	87,138
Direct cost of services	(108,686)	(23,671)	(19,721)
Cost of goods sold	(8,592)	(6,278)	(2,694)
Selling, general and administrative expenses	(64,836)	(25,493)	(20,352)
Depreciation and amortization	(19,165)	(10,747)	(11,011)
Restructuring charge	(4,056)	—	—
Segment income	30,320	27,158	33,360
Consumer segment:
Revenues - Services and fees	18,940	20,308	16,458
Revenues - Sale of goods	77,821	—	—
Total revenues	96,761	20,308	16,458
Cost of goods sold	(52,162)	—	—
Selling, general and administrative expenses	(18,458)	(3,178)	(2,889)
Depreciation and amortization	(4,279)	(2,745)	(2,858)
Impairment of tradenames	—	—	(12,500)
Segment income	21,862	14,385	(1,789)
Consolidated operating income from reportable segments	128,376	573,433	315,154
All Other:
Revenues - Services and fees	13,797	—	—
Corporate and other expenses	(72,725)	(58,905)	(38,893)
Interest income	2,735	229	564
Dividend income	35,874	19,732	21,163
Realized and unrealized gains (losses) on investments	(201,079)	166,131	47,341

	Year Ended December 31,
	2022		2021		2020
Change in fair value of financial instruments and other	10,188		3,796		—
Income (loss) on equity method investments	3,570		2,801		(623)
Interest expense	(141,186)		(92,455)		(65,249)
(Loss) income before income taxes	(220,450)		614,762		279,457
Benefit from (provision for) income taxes	63,856		(163,960)		(75,440)
Net (loss) income	(156,594)		450,802		204,017
Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests	3,235		5,748		(1,131)
Net (loss) income attributable to B. Riley Financial, Inc.	(159,829)		445,054		205,148
Preferred stock dividends	8,008		7,457		4,710
Net (loss) income available to common shareholders	$	(167,837)	$	437,597	$	200,438

The following table presents revenues by geographical area:

	Year Ended December 31,
	2022		2021		2020
			(As Restated)		(As Restated)
Revenues:
Revenues - Services and fees:
North America	$	888,679	$	1,148,751	$	619,964
Australia	—		—		664
Europe	6,944		4,474		25,278
Total Revenues - Services and fees	895,623		1,153,225		645,906
Trading (loss) income and fair value adjustments on loans
North America	(202,628)		220,545		56,677
Revenues - Sale of goods
North America	51,899		12,130		6,788
Australia	4,903		—		—
Europe and Middle East	75,413		46,075		22,347
Asia	7,970		—		—
Latin America	2,090		—		—
Total Revenues - Sale of Goods	142,275		58,205		29,135
Revenues - Interest income - Loans and securities lending:
North America	240,813		122,723		102,499
Europe	4,587		—		—
	245,400		122,723		102,499
Total Revenues:
North America	978,763		1,504,149		785,928
Australia	4,903		—		664
Europe and Middle East	86,944		50,549		47,625
Asia	7,970		—		—
Latin America	2,090		—		—
Total Revenues	$	1,080,670	$	1,554,698	$	834,217

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

	December 31, 2022		December 31, 2021
Long-lived Assets - Property and Equipment, net:
North America	$	26,276	$	12,870
Europe	577		—
Asia Pacific	162		—
Australia	126		—
Total	$	27,141	$	12,870

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.