| |
On June 27, 2001, the Company
announced a reorganization of its corporate and management structure.
The new structure created two principal business units, a Private
Client Division and an Institutional Client Division. Both divisions
provide multiple service offerings tailored to specific clients and
their respective investing and trading preferences. The Private Client
Division provides brokerage services directly to individual investors.
The Institutional Client Division provides clearing services, brokerage
capabilities and advisor tools as co-branded or private-label products
to business partners and their customers. During the fourth quarter
of fiscal 2001 and first quarter of fiscal 2002, the Company operated
in one reportable business segment as the new organizational structure
was implemented and the management financial reporting structure was
developed. During the second fiscal quarter of 2002, the Company substantially
completed development of its new management financial reporting structure.
The Company reevaluated its segment reporting in light of the new
financial reporting structure, and determined that the Company's Private
Client and Institutional Client divisions are reportable business
segments. Client segments within the Private Client and Institutional
Client divisions have been aggregated due to similarities in economic
characteristics, types of services provided, types of clients, distribution
channels and regulatory environment.
The Company evaluates the performance of its segments based on both
segment contribution (net revenues less direct expenses) and pretax
income (segment contribution less allocated expenses). Identifiable
assets are not disclosed, as they are not used in evaluating segment
performance or in allocating resources to segments. Financial information
for the Company's reportable segments is presented in the following
table for fiscal 2002. The totals are equal to the Company's consolidated
amounts as reported in the condensed consolidated statements of operations.
Certain corporate overhead and administrative costs not specifically
identifiable to a particular segment are not allocated to the operating
segments and remain in the Corporate column. Information for fiscal
years 2001 and 2000 is not presented, as it would be impracticable
to restate those periods to reflect the new reporting structure. |
 |
|
|
|
|
Private
Client |
|
|
Institutional
Client |
|
|
Corporate |
|
|
Total |
|
|
|
|
|
|
|
|
|
| Non-interest
revenues |
|
$ |
313,935 |
|
$ |
12,773 |
|
$ |
- |
|
$ |
326,708 |
| Interest revenue, net |
|
|
101,583 |
|
|
2,502 |
|
|
- |
|
|
104,085 |
|
|
|
|
|
|
|
|
|
| Net
revenues |
|
|
415,518 |
|
|
15,275 |
|
|
- |
|
|
430,793 |
| Direct
expenses |
|
|
58,121 |
|
|
11,917 |
|
|
315,866 |
|
|
385,904 |
|
|
|
|
|
|
|
|
|
| Segment
contribution |
|
|
357,397 |
|
|
3,358 |
|
|
(315,866) |
|
|
44,889 |
| Allocated
expenses |
|
|
260,665 |
|
|
3,658 |
|
|
(264,323) |
|
|
- |
| TradeCast
impairment (see Note 6) |
|
|
56,431 |
|
|
6,975 |
|
|
- |
|
|
63,406 |
|
|
|
|
|
|
|
|
|
| Income
(loss) before income taxes |
|
$ |
40,301 |
|
$ |
(7,275) |
|
$ |
(51,543) |
|
$ |
(18,517) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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