Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment information

The Company has determined its reportable segments based on the Company’s method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company evaluates the performance of its segments and allocates resources to them based upon profitability.

The Company’s reportable segments are:

Private Client- includes commissions and a proportionate amount of fee income earned on AUM, net interest earnings on client margin loans and cash balances, fees from money market funds, net contributions from stock loan activities and financing activities, and direct expenses associated with this segment;

Asset Management - includes a proportionate amount of fee income earned on AUM from investment management services of Oppenheimer Asset Management Inc. Oppenheimer’s asset management divisions employ various programs to professionally manage client assets either in individual accounts or in funds, and includes direct expenses associated with this segment;

Capital Markets - includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company’s operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment; and

Commercial Mortgage Banking - includes loan origination and servicing fees from the Company’s subsidiary, OMHHF.

The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit. Costs associated with these groups are separately reported in a Corporate/Other category and which primarily include compensation and benefits.

The table below presents information about the reported revenue and net income (loss) before taxes of the Company for the years ended December 31, 2014, 2013 and 2012. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker.

(Expressed in thousands)
	For the Year Ended December 31,
	2014			2013			2012
Revenue
Private client (1)	$	582,364		$	600,071		$	550,797
Asset management (1)	99,964			102,214			84,160
Capital markets	298,597			281,377			283,139
Commercial mortgage banking	23,329			34,144			35,682
Corporate/Other	210			1,908			(1,166		)
Total	$	1,004,464		$	1,019,714		$	952,612
Income (loss) before income taxes
Private client (1)	$	60,116		$	65,924		$	53,487
Asset management (1)	33,707			40,951			25,436
Capital markets	17,819			6,968			(15,324		)
Commercial mortgage banking	8,546			11,413			15,267
Corporate/Other	(94,452		)	(81,347		)	(79,393		)
Total	$	25,736		$	43,909		$	(527	)

(1)  Asset management fees are allocated 22.5% to the Asset Management and 77.5% to the Private Client segments.

Revenue, classified by the major geographic areas in which it was earned for the years ended December 31, 2014, 2013 and 2012 was as follows:

(Expressed in thousands)
	Year Ended December,
	2014		2013		2012
Americas	$	955,361	$	978,249	$	916,568
Europe/Middle East	43,087		36,516		34,913
Asia	6,016		4,949		1,131
Total	$	1,004,464	$	1,019,714	$	952,612