Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 16 – SEGMENT INFORMATION

An operating segment is defined as a component of an entity that has all of the following characteristics: it engages in business activities from which it may earn revenues and incur expenses; its operating results are regularly reviewed by the entity’s chief operating decision-maker (or decision-making group) for resource allocation and to assess performance; and discrete financial information is available. Operating segments may be combined in certain circumstances into reportable segments for financial reporting. The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada.

Each segment, in its own geographic location, primarily derives its revenues from the retail brokerage business through the sale of listed and unlisted securities and insurance products, investment banking, principal transactions, as a distributor of mutual fund shares and through revenues related to assets held by and account services provided to its clients.

The accounting policies of the segments are the same as those described in “Note 1 – Summary of Significant Accounting Policies.” Financial information about the Partnership’s reportable segments is presented in the following table. For the computation of its segment information, the Partnership allocates costs incurred by the U.S. entity in support of Canadian operations to the Canadian segment.

The Partnership evaluates the performance of its segments based upon income before allocation to partners as well as income before variable incentive compensation. Variable incentive compensation is determined at the Partnership level for profit sharing and home office and branch employee bonus amounts, and therefore is allocated to each geographic segment independent of that segment’s individual income before variable incentive compensation. The amount of financial advisor bonuses is determined in part by the overall Partnership profitability, as well as the performance of the individual financial advisors at the segment. As such, both income before allocation to partners and income before variable incentive compensation are considered in evaluating segment performance. Long-lived assets are not disclosed because the balances are not used for evaluating segment performance and deciding how to allocate resources to segments. However, total assets from continuing operations for each segment are provided for informational purposes.

The Canadian segment information as reported in the following table is based upon the Consolidated Financial Statements of the Partnership’s Canadian operations without eliminating any intercompany items, such as management fees that it pays to affiliated entities. The U.S. segment information is derived from the Partnership’s Consolidated Financial Statements less the Canada segment information as presented. This is consistent with how management reviews the segments in order to assess performance.

Financial information for the Partnership’s reportable segments is presented in the following table for the years ended December 31, 2012, 2011 and 2010:

	2012			2011			2010
Financial metrics:
Net revenue:
United States of America	$	4,789,850		$	4,324,451		$	3,939,831
Canada		175,325			185,410			166,945
Total net revenue	$	4,965,175		$	4,509,861		$	4,106,776
Net interest and dividends revenue:
United States of America	$	66,912		$	57,647		$	66,775
Canada		4,314			4,862			3,671
Total net interest and dividends revenue	$	71,226		$	62,509		$	70,446
Pre-variable income (loss):
United States of America	$	1,055,550		$	855,862		$	678,110
Canada		(3,482	)		4,189			(10,715	)
Total pre-variable income		1,052,068			860,051			667,395
Variable incentive compensation:
United States of America		485,196			366,663			266,100
Canada		11,852			11,605			8,510
Total variable incentive compensation		497,048			378,268			274,610
Income (loss) before allocation to partners:
United States of America		570,354			489,199			412,010
Canada		(15,334	)		(7,416	)		(19,225	)
Total Income before allocation to partners	$	555,020		$	481,783		$	392,785
Capital expenditures:
United States of America	$	36,700		$	53,219		$	90,500
Canada		1,058			1,793			2,494
Total capital expenditures	$	37,758		$	55,012		$	92,994
Depreciation and amortization:
United States of America	$	78,226		$	88,118		$	95,548
Canada		1,922			2,491			2,639
Total depreciation and amortization	$	80,148		$	90,609		$	98,187
Total assets:
United States of America	$	12,617,643		$	9,158,882		$	7,785,698
Canada		424,600			424,704			455,452
Total assets	$	13,042,243		$	9,583,586		$	8,241,150
Non-financial metrics:
Financial Advisors (as of year-end):
United States of America		11,822			11,622			11,980
Canada		641			620			636
Total financial advisors		12,463			12,242			12,616