Note 1: Organization and Description of the Business Note 2: Significant Accounting Policies Note 3: Securities Owned and Securities Sold, Not Yet Purchased Note 4: Receivable From/Payable to Brokers and Dealers Note 5: Goodwill and Intangible Assets Note 6: Investment in Deephaven Sponsored Fund Note 7: Significant Customers Note 8: International Charges Note 9: Writedown of Assets and Lease Loss Accrual Note 10: Fixed Assets and Leasehold Improvements Note 11: Commitments and Contingent Liabilities Note 12: Earnings Per Share Note 13: Employee Benefit Plan Note 14: Income Taxes Note 15: Long-Term Incentive Plans Note 16: Financial Instruments With Off-Balance Sheet Risk and Concentrations of Credit Risk Note 17: Net Capital Requirements Note 18: Subsequent Events Note 19: Business Segments Note 20: Condensed Financial Statements of Knight Trading Group, Inc. (Parent Only) Note 19: BUSINESS SEGMENTS The Company has two reportable business segments: Equity Markets and Asset Management. Equity markets includes two geographic classifications: domestic and international. Domestic equity markets primarily represents market-making in U.S. equity securities listed on Nasdaq, on the OTCBB of the NASD, in the Nasdaq Intermarket™ and in U.S. options on individual equities, equity indices and fixed income futures instruments. International equity markets includes market-making in equities in Europe and Japan and in options in Europe and Australia. Market-making in Europe and Australia was discontinued during 2002. The Asset Management segment consists of investment management and sponsorship of the Deephaven Fund. The Company’s net revenues, income before income taxes and minority interest and assets by segment are summarized below:   (1)  Losses before income taxes and minority interest for 2002 include $16.2 million in writedowns of assets and lease loss accruals described in Note 9 and $7.0 million in severance expense. The pre-tax numbers for 2001 include $20.5 million related to the writedown of assets and lease loss accrual described in Note 9 and $4.1 million in severance expense. (2)  Losses before income taxes and minority interest for 2002 include $35.9 million in international charges described in Note 8 and $3.2 million in severance expense. (3)  The Company had invested $153.8 million, $50.9 million and $12.3 million in the Deephaven Fund at December 31, 2002, 2001 and 2000, respectively.This investment is included in the assets of the asset management segment. Revenues generated by the Deephaven Fund investments made by the Company for 2002, 2001 and 2000 were $10.7 million, $5.0 million and $3.6 million, respectively. (4)  Eliminations primarily represent management fees earned by certain of the Company’s subsidiaries for management services provided to other subsidiaries.