Business Segment and Geographic Information

12 Months Ended

Dec. 31, 2019

Business Segment and Geographic Information

Business Segment and Geographic Information

20.          Business Segment and Geographic Information

The Company operates electronic marketplaces for the trading of products across the rates, credit, equities and money markets asset classes and provides related pre-trade and post-trade services.  The Company’s operations constitute a single business segment because of the integrated nature of these marketplaces and services.  Information regarding revenue by client sector is as follows (in thousands):

	Successor		Successor		Predecessor		Predecessor
	Year Ended		October 1, 2018 to		January 1, 2018 to		Year Ended
	December 31,		December 31,		September 30,		December 31,
	2019		2018		2018		2017
Net revenue:
Institutional	$	453,379	$	103,971	$	301,918	$	318,038
Wholesale		171,096		38,153		99,028		118,451
Retail		80,368		19,780		57,766		70,857
Market Data		70,723		16,733		47,059		55,622
Contingent consideration		—		—		(26,830)		(58,520)
Net revenue		775,566		178,637		478,941		504,448
Operating expenses		585,747		146,702		338,607		415,356
Operating income	$	189,819	$	31,935	$	140,334	$	89,092

The Company operates in the U.S. and internationally, primarily in the Europe and Asia regions. Revenues are attributed to geographic area based on the jurisdiction where the underlying transactions take place. The results by geographic region are not meaningful in understanding the Company's business. Long-lived assets are attributed to the geographic area based on the location of the particular subsidiary.

The following table provides a breakdown of revenue by geographic area for the year ended December 31, 2019, the 2018 Successor Period, the 2018 Predecessor Period and the year ended December 31, 2017 (in thousands):

	Successor		Successor		Predecessor		Predecessor
	Year Ended		October 1, 2018 to		January 1, 2018 to		Year Ended
	December 31,		December 31,		September 30,		December 31,
	2019		2018		2018		2017
Net Revenue:
U.S.	$	497,316	$	115,907	$	324,304	$	385,176
International		278,250		62,730		181,467		177,792
Gross revenue		775,566		178,637		505,771		562,968
Contingent consideration		—		—		(26,830)		(58,520)
Total	$	775,566	$	178,637	$	478,941	$	504,448

The following table provides information on the attribution of long-lived assets by geographic area (in thousands):

	Successor		Successor
	December 31,		December 31,
	2019		2018
Long-lived assets
U.S.	$	4,200,133	$	4,276,568
International		14,100		7,787
Total	$	4,214,233	$	4,284,355