| Segment and Geographic Information |
SEGMENTS AND GEOGRAPHIC INFORMATION
The Company evaluates segment reporting in accordance with FASB ASC 280, Segment Reporting, each reporting period, including evaluating the organizational structure and the reporting package that is reviewed by the Chief Operating Decision Makers (“CODM”). The Company's operations are organized under three business segments — Wholesale Trading & Ancillary Services, Secured Lending, and Direct Sales.
Revenue
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Revenue by segment |
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Wholesale Trading & Ancillary Services |
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$ |
1,554,313 |
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$ |
2,153,420 |
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Direct Sales |
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10,777 |
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(1) |
10,370 |
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(2) |
Total revenue |
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$ |
1,565,090 |
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$ |
2,163,790 |
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_________________________________ |
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(1) Includes $0.8 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment. Intercompany sales are transacted at prices consistent with arms-length transactions with third-parties.
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(2) Includes $6.9 million of intercompany sales from the Direct Sales segment to the Wholesale Trading & Ancillary Services segment. The elimination of these intercompany sales are reflected in the Wholesale Trading & Ancillary Services segment. Intercompany sales are transacted at prices consistent with arms-length transactions with third-parties.
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Revenue by geographic region
(as determined by the shipping address or where the services were performed):
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United States |
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$ |
1,375,636 |
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$ |
2,051,921 |
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Europe |
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90,152 |
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|
54,358 |
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North America, excluding United States |
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96,384 |
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54,878 |
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Asia Pacific |
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2,343 |
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1,352 |
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Africa |
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1 |
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— |
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Australia |
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574 |
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1,281 |
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Total revenue |
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$ |
1,565,090 |
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$ |
2,163,790 |
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Gross profit by segment |
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Wholesale Trading & Ancillary Services |
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$ |
7,412 |
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$ |
5,645 |
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Direct Sales |
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1,063 |
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1,661 |
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Total gross profit |
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$ |
8,475 |
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$ |
7,306 |
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Gross margin percentage by segment |
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Wholesale Trading & Ancillary Services |
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0.477 |
% |
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0.262 |
% |
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Direct Sales |
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9.864 |
% |
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16.017 |
% |
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Weighted average gross margin percentage |
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0.542 |
% |
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0.338 |
% |
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Operating income and (expenses)
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Operating income and expenses by segment |
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Wholesale Trading & Ancillary Services |
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Selling, general and administrative expenses |
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$ |
(5,258 |
) |
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$ |
(5,410 |
) |
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Interest income |
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$ |
2,052 |
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$ |
1,058 |
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Interest expense |
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$ |
(1,880 |
) |
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$ |
(1,519 |
) |
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Other income, net |
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$ |
178 |
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$ |
(40 |
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Secured Lending |
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Selling, general and administrative expenses |
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$ |
(345 |
) |
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$ |
(383 |
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Interest income |
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$ |
2,499 |
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$ |
2,103 |
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Interest expense |
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$ |
(1,477 |
) |
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$ |
(1,135 |
) |
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Direct Sales |
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Selling, general and administrative expenses |
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$ |
(2,116 |
) |
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$ |
(1,183 |
) |
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Interest expense |
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$ |
(195 |
) |
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$ |
(79 |
) |
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Net (loss) income before provision for income taxes
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Net (loss) income before provision for income taxes by segment |
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Wholesale Trading & Ancillary Services |
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$ |
2,504 |
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$ |
(266 |
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Secured Lending |
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677 |
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|
585 |
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Direct Sales |
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(1,248 |
) |
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399 |
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Total net (loss) income before provision for income taxes
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$ |
1,933 |
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$ |
718 |
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Depreciation and Amortization
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Depreciation and amortization by segment |
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Wholesale Trading & Ancillary Services |
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$ |
(396 |
) |
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$ |
(391 |
) |
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Direct Sales |
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(301 |
) |
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(138 |
) |
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Total depreciation and amortization |
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$ |
(697 |
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$ |
(529 |
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Advertising expense
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Advertising expense by segment |
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Wholesale Trading & Ancillary Services |
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$ |
(107 |
) |
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$ |
(101 |
) |
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Secured Lending |
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(3 |
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(11 |
) |
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Direct Sales |
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(480 |
) |
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(405 |
) |
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Total advertising expense |
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$ |
(590 |
) |
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$ |
(517 |
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Precious metals held under financing arrangements
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Precious metals held under financing arrangements by segment |
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Wholesale Trading & Ancillary Services |
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$ |
232,476 |
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$ |
262,566 |
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Total precious metals held under financing arrangements |
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$ |
232,476 |
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$ |
262,566 |
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Inventories by segment |
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Wholesale Trading & Ancillary Services |
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$ |
282,420 |
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$ |
272,034 |
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Direct Sales |
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7,385 |
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8,082 |
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Total inventories |
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$ |
289,805 |
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$ |
280,116 |
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Inventories by geographic region |
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United States |
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$ |
281,101 |
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$ |
273,008 |
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Europe |
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2,604 |
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|
1,965 |
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North America, excluding United States |
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5,991 |
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4,976 |
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Asia |
|
109 |
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|
167 |
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Total inventories |
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$ |
289,805 |
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$ |
280,116 |
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Assets by segment |
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Wholesale Trading & Ancillary Services |
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$ |
629,231 |
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$ |
616,522 |
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Secured Lending |
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83,019 |
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111,304 |
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Direct Sales |
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14,302 |
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|
15,175 |
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Total assets |
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$ |
726,552 |
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$ |
743,001 |
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Assets by geographic region |
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United States |
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$ |
711,048 |
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$ |
733,131 |
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Europe |
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9,404 |
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|
4,727 |
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North America, excluding United States |
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5,991 |
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4,976 |
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Asia |
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109 |
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|
167 |
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Total assets |
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$ |
726,552 |
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$ |
743,001 |
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Long-term Assets
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Long-term assets by segment |
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Wholesale Trading & Ancillary Services |
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$ |
30,871 |
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$ |
31,328 |
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Secured Lending |
|
103 |
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|
102 |
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Direct Sales |
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4,263 |
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|
4,588 |
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Total long-term assets |
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$ |
35,237 |
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$ |
36,018 |
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Long-term assets by geographic region |
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United States |
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$ |
35,184 |
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$ |
35,965 |
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Europe |
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53 |
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|
53 |
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Total long-term assets |
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$ |
35,237 |
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$ |
36,018 |
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Capital Expenditures for Property and Equipment
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Capital expenditures on plant, property and equipment by segment |
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Wholesale Trading & Ancillary Services |
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$ |
122 |
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$ |
194 |
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Direct Sales |
|
— |
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|
124 |
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Total capital expenditures on property and equipment |
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$ |
122 |
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$ |
318 |
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Goodwill and Intangible Assets
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Goodwill and Intangibles by segment |
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Wholesale Trading & Ancillary Services |
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$ |
12,409 |
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$ |
12,516 |
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Direct Sales |
|
3,081 |
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|
3,226 |
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Total goodwill and intangible assets |
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$ |
15,490 |
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$ |
15,742 |
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