BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 20— BUSINESS SEGMENTS

 

The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company has several operating subsidiaries through which it delivers specific services. The Company provides investment banking, corporate finance, restructuring, research, wealth management, sales and trading services to corporate, institutional and high net worth clients. The Company also provides auction and liquidation services to help clients dispose of assets that include multi-location retail inventory, wholesale inventory, trade fixtures, machinery and equipment, intellectual property and real property and valuation and appraisal services to clients with independent appraisals in connection with asset based loans, acquisitions, divestitures and other business needs. As a result of the acquisition of UOL on July 1, 2016, the Company provides consumer services and products over the Internet.

 

The Company’s business is classified into the Capital Markets segment, Auction and Liquidation segment, Valuation and Appraisal segment and Principal Investments - United Online segment. These reportable segments are all distinct businesses, each with a different marketing strategy and management structure.

 

The following is a summary of certain financial data for each of the Company’s reportable segments: 

 

    Year Ended December 31,  
    2016     2015     2014  
Capital markets reportable segment:                        
Revenues - Services and fees   $ 39,335     $ 35,183     $ 19,420  
Selling, general, and administrative expenses     (32,695 )     (30,229 )     (14,185 )
Depreciation and amortization     (549 )     (519 )     (193 )
Segment income     6,091       4,435       5,042  
Auction and Liquidation reportable segment:                        
Revenues - Services and fees   $ 61,891     $ 35,633     $ 17,166  
Revenues - Sale of goods     25,855       10,596       9,859  
Total revenues     87,746       46,229       27,025  
Direct cost of services     (17,787 )     (15,489 )     (10,719 )
Cost of goods sold     (14,502 )     (3,072 )     (14,080 )
Selling, general, and administrative expenses     (14,331 )     (8,170 )     (8,481 )
Restructuring costs     -       -       (1,339 )
Depreciation and amortization     (26 )     (191 )     (107 )
Segment income (loss)     41,100       19,307       (7,701 )
Valuation and Appraisal reportable segment:                        
Revenues - Services and fees     31,749       31,113       30,671  
Direct cost of services     (13,983 )     (13,560 )     (12,747 )
Selling, general, and administrative expenses     (8,778 )     (9,101 )     (10,721 )
Restructuring costs     -       -       (203 )
Depreciation and amortization     (107 )     (137 )     (151 )
Segment income     8,881       8,315       6,849  
Principal Investments - United Online segment:                        
Revenues - Services and fees     31,260       -       -  
Revenues - Sale of goods     261       -       -  
Total revenues     31,521       -       -  
Direct cost of services     (9,087 )     -       -  
Cost of goods sold     (253 )     -       -  
Selling, general, and administrative expenses     (5,974 )     -       -  
Depreciation and amortization     (3,518 )                
Restructuring costs     (3,474 )     -       -  
Segment income     9,215       -       -  
Consolidated operating income from  reportable segments     65,287       32,057       4,190  
Corporate and other expenses (includes restructuring costs of $413 and $1,006 for the year ended December 31, 2016 and 2014, respectively     (16,562 )     (9,975 )     (11,621 )
Interest income     318       17       12  
Interest expense     (1,996 )     (834 )     (1,262 )
Income (loss) before income taxes     47,047       21,265       (8,681 )
(Provision) benefit for income taxes     (14,321 )     (7,688 )     2,886  
Net income (loss)     32,726       13,577       (5,795 )
Net income attributable to noncontrolling interests     11,200       1,772       6  
Net income (loss) attributable to B. Riley Financial, Inc.   $ 21,526     $ 11,805     $ (5,801 )

  

The following table presents revenues by geographical area:

 

    Year Ended December 31,  
    2016     2015     2014  
Revenues:                        
Revenues - Services and fees:                        
North America   $ 135,428     $ 77,153     $ 63,417  
Australia     26,487       -       -  
Europe     2,320       24,776       3,840  
Total Revenues - Services and fees   $ 164,235     $ 101,929     $ 67,257  
                         
Revenues - Sale of goods                        
North America   $ 323     $ 907     $ 9,859  
Australia     -       -       -  
Europe     25,793       9,689       -  
Total Revenues - Sale of goods   $ 26,116     $ 10,596     $ 9,859  
                         
Total Revenues:                        
North America   $ 135,751     $ 78,060     $ 73,276  
Australia     26,487       -       -  
Europe     28,113       34,465       3,840  
Total Revenues   $ 190,351     $ 112,525     $ 77,116  

 

The following table presents long-lived assets, which consists of property and equipment and other assets, by geographical area:

 

    As of     As of  
    December 31,     December 31,  
    2016     2015  
Long-lived Assets - Property and Equipment, net:                
North America   $ 5,785     $ 592  
Australia     -       -  
Europe     -       -  
Total Long-lived Assets   $ 5,785     $ 592  

 

Segment assets are not reported to, or used by, the Company's CODM to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.