Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Mar. 31, 2014 | Apr. 25, 2014 | |
Entity [Abstract] | ' | ' |
Entity Registrant Name | 'CBOE Holdings, Inc. | ' |
Entity Central Index Key | '0001374310 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 85,981,985 |
Entity Current Reporting Status | 'Yes | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Revenues: | ' | ' |
Transaction fees | $112,790 | $99,145 |
Access fees | 15,232 | 15,654 |
Exchange services and other fees | 9,492 | 9,088 |
Market data fees | 7,158 | 5,537 |
Regulatory fees | 9,857 | 9,700 |
Other revenue | 3,356 | 3,581 |
Total Operating Revenues | 157,885 | 142,705 |
Operating Expenses: | ' | ' |
Employee costs | 33,374 | 30,837 |
Depreciation and amortization | 8,604 | 8,282 |
Data processing | 4,721 | 4,516 |
Outside services | 7,378 | 11,035 |
Royalty fees | 15,902 | 13,169 |
Trading volume incentives | 1,126 | 1,013 |
Travel and promotional expenses | 1,987 | 2,064 |
Facilities costs | 1,313 | 1,253 |
Other expenses | 1,442 | 1,106 |
Total Operating Expenses | 75,847 | 73,275 |
Operating Income | 82,038 | 69,430 |
Other Income/(Expense): | ' | ' |
Investment income | 14 | 4 |
Net loss from investment in affiliates | -509 | -725 |
Total Other Expense | -495 | -721 |
Income Before Income Taxes | 81,543 | 68,709 |
Income tax provision | 32,519 | 26,336 |
Net Income | 49,024 | 42,373 |
Net Income | 49,024 | 42,373 |
Net Income allocated to participating securities | -496 | -584 |
Net Income Allocated to Common Stockholders | $48,528 | $41,789 |
Net income per share (Note 4): | ' | ' |
Basic (in dollars per share) | $0.56 | $0.48 |
Diluted (in dollars per share) | $0.56 | $0.48 |
Weighted average shares used in computing income per share: | ' | ' |
Basic (in shares) | 86,453 | 87,272 |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 86,453 | 87,272 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $49,024 | $42,373 |
Post-retirement benefit obligation | 315 | -208 |
Comprehensive Income | 49,339 | 42,165 |
Comprehensive income allocated to participating securities | -496 | -584 |
Comprehensive Income allocated to common stockholders | $48,843 | $41,581 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $199,065 | $221,341 |
Accounts receivable—net allowances of $279 and $266 | 57,856 | 49,888 |
Marketing fee receivable | 10,176 | 8,869 |
Income taxes receivable | 732 | 22,039 |
Other prepaid expenses | 7,271 | 4,007 |
Other current assets | 922 | 2,717 |
Total Current Assets | 276,022 | 308,861 |
Investments in Affiliates | 14,571 | 14,581 |
Land | 4,914 | 4,914 |
Property and Equipment: | ' | ' |
Construction in progress | 2,231 | 23 |
Building | 65,491 | 65,448 |
Furniture and equipment | 275,416 | 271,437 |
Less accumulated depreciation and amortization | -273,958 | -269,614 |
Total Property and Equipment—Net | 69,180 | 67,294 |
Other Assets: | ' | ' |
Software development work in progress | 10,754 | 7,853 |
Data processing software and other assets (less accumulated amortization—2014, $150,778; 2013, $147,322) | 37,403 | 38,086 |
Total Other Assets—Net | 48,157 | 45,939 |
Total | 412,844 | 441,589 |
Current Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 41,403 | 52,958 |
Dividends Payable, Current | 0 | 43,831 |
Marketing fee payable | 10,743 | 9,442 |
Deferred revenue and other liabilities | 14,167 | 1,100 |
Post-retirement benefit obligation - current | 80 | 127 |
Income tax payable | 8,064 | 0 |
Total Current Liabilities | 74,457 | 107,458 |
Long-term Liabilities: | ' | ' |
Post-retirement benefit obligation - long-term | 1,654 | 2,110 |
Income tax liability | 32,249 | 29,903 |
Other long-term liabilities | 3,833 | 3,856 |
Deferred income taxes | 13,971 | 13,745 |
Total Long-term Liabilities | 51,707 | 49,614 |
Commitments and Contingencies | ' | ' |
Total Liabilities | 126,164 | 157,072 |
Stockholders’ Equity: | ' | ' |
Preferred stock, $0.01 par value: 20,000,000 shares authorized, no shares issued and outstanding at March 31, 2014 or December 31, 2013 | 0 | 0 |
Additional paid-in-capital | 98,662 | 90,985 |
Retained earnings | 382,587 | 349,290 |
Treasury stock at cost – 5,813,929 shares at March 31, 2014 and 5,074,755 shares at December 31, 2013 | -194,754 | -155,627 |
Accumulated other comprehensive loss | -735 | -1,050 |
Total Stockholders’ Equity | 286,680 | 284,517 |
Total | 412,844 | 441,589 |
Unrestricted Common Stock | ' | ' |
Stockholders’ Equity: | ' | ' |
Unrestricted common stock, $0.01 par value: 325,000,000 shares authorized; 92,008,024 issued and 86,194,095 outstanding at March 31, 2014; 91,845,492 issued and 86,770,737 outstanding at December 31, 2013 | $920 | $919 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parenthetical (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $279 | $266 |
Finite-Lived Intangible Assets, Accumulated Amortization | $150,778 | $147,322 |
Preferred Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 325,000,000 | 325,000,000 |
Common Stock, Shares, Issued | 92,008,024 | 91,845,492 |
Common Stock, Shares, Outstanding | 86,194,095 | 86,770,737 |
Treasury Stock, Shares | 5,813,929 | 5,074,755 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholders’ Equity (USD $) | Total | Preferred Stock | Unrestricted Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
In Thousands | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Beginning of Period at Dec. 31, 2013 | $284,517 | $0 | $919 | $90,985 | $349,290 | ($155,627) | ($1,050) |
Cash dividends on common stock | -15,727 | ' | ' | ' | -15,727 | ' | ' |
Share-based Compensation | 6,913 | ' | ' | 6,913 | ' | ' | ' |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 765 | ' | ' | 765 | ' | ' | ' |
Issuance of vested restricted stock granted to employees | 0 | ' | 1 | -1 | ' | ' | ' |
Purchase of unrestricted common stock from employees to fulfill employee tax obligations | -1,990 | ' | ' | ' | ' | -1,990 | ' |
Purchase Of Unrestricted Common Stock | -37,137 | ' | ' | ' | ' | -37,137 | ' |
Net income | 49,024 | ' | ' | ' | 49,024 | ' | ' |
Post-retirement benefit obligation adjustment—net of tax | 315 | ' | ' | ' | ' | ' | 315 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest End of Period at Mar. 31, 2014 | $286,680 | $0 | $920 | $98,662 | $382,587 | ($194,754) | ($735) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net income | $49,024 | $42,373 |
Adjustments to reconcile net income to net cash flows from operating activities: | ' | ' |
Depreciation and amortization | 8,604 | 8,282 |
Other amortization | 18 | 29 |
Provision for deferred income taxes | 25 | -515 |
Stock-based compensation | 6,913 | 6,739 |
Loss on disposition of property | 253 | 1 |
Loss on investment in affiliate | 509 | 480 |
Impairment of investment in affiliate | 0 | 245 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -7,968 | -5,470 |
Marketing fee receivable | -1,307 | -1,035 |
Income taxes receivable | 21,307 | 11,236 |
Prepaid expenses | -3,264 | -2,189 |
Other current assets | 1,795 | -168 |
Accounts payable and accrued expenses | -12,342 | -2,133 |
Marketing fee payable | 1,301 | 1,034 |
Deferred revenue and other liabilities | 13,045 | 22,674 |
Post-retirement benefit obligations | -7 | -9 |
Income taxes liability | 2,346 | 13,723 |
Income taxes payable | 8,064 | 0 |
Net Cash Flows provided by Operating Activities | 88,316 | 95,297 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ' | ' |
Capital and other assets expenditures | -12,172 | -6,440 |
Investment in Affiliates | -500 | -676 |
Other | 0 | 8 |
Net Cash Flows used in Investing Activities | -12,672 | -7,108 |
Payment of quarterly dividends | -15,727 | -13,297 |
Excess tax benefit from stock-based compensation | 765 | 0 |
Purchase of unrestricted stock from employees | -1,990 | -3 |
Purchase of unrestricted common stock under announced program | -37,137 | 0 |
Payment of special dividend | 43,831 | 0 |
Net Cash Flows used in Financing Activities | -97,920 | -13,300 |
Net Increase (Decrease) in Cash and Cash Equivalents | -22,276 | 74,889 |
Cash and Cash Equivalents at Beginning of Period | 221,341 | 135,597 |
Cash and Cash Equivalents at End of Period | 199,065 | 210,486 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid for income taxes | 10 | 1,910 |
Non-cash activities: | ' | ' |
Unpaid liability to acquire equipment and software | $3,835 | $907 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description Of Business | ' |
DESCRIPTION OF BUSINESS | |
CBOE Holdings, Inc. is the holding company for Chicago Board Options Exchange, Incorporated, CBOE Futures Exchange, LLC, C2 Options Exchange, Incorporated and other subsidiaries. | |
The primary business of the Company is the operation of markets for the trading of listed, or exchange-traded, derivatives contracts on four broad product categories: 1) options on various market indexes (index options), 2) futures on the VIX Index and other products, 3) options on the stocks of individual corporations (equity options) and 4) options on other exchange-traded products (ETP options), such as exchange-traded funds (ETF options) and exchange-traded notes (ETN options). | |
The Company owns and operates three stand-alone exchanges, but reports the results of its operations in one reporting segment. CBOE is our primary options market and offers trading in listed options through a single system that integrates electronic trading and traditional open outcry trading on our trading floor in Chicago. This integration of electronic trading and traditional open outcry trading into a single exchange is known as our Hybrid trading model. CFE, our all-electronic futures exchange, offers trading of futures on the VIX Index and other products. C2 is our all-electronic exchange that also offers trading for listed options, but with a different market model and fee structure than CBOE. All of our exchanges operate on our proprietary technology platform known as CBOE Command. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | |
These interim unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and reported amounts of operating revenues and expenses. On an ongoing basis, management evaluates its estimates, including those related to matters that require a significant level of judgment or are otherwise subject to an inherent degree of uncertainty. These estimates are based on management’s knowledge and judgments, historical experience and observance of trends, information available from outside sources and various other assumptions that are believed to be reasonable under the circumstances. | |
In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. | |
The results of operations for interim periods are not necessarily indicative of the results of operations for the full year. |
Share_Repurchase_Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2014 | |
Share Repurchase Program [Abstract] | ' |
Share Repurchase Program | ' |
SHARE REPURCHASE PROGRAM | |
In 2011, the board of directors approved an initial authorization for the Company to repurchase shares of its outstanding unrestricted common stock of $100 million and approved additional authorizations in 2012 of $100 million and 2013 of $100 million. The program permits the Company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the Company to make any repurchases at any specific time or situation. | |
For the three months ended March 31, 2014, the Company repurchased 700,868 shares of unrestricted common stock at an average cost per share of $52.99 totaling $37.1 million in purchases under the program. | |
Since inception of the program through March 31, 2014, the Company has repurchased 5,340,692 shares of unrestricted common stock at an average cost per share of $33.55, totaling $179.2 million in purchases under the program. |
Net_Income_per_Common_Share
Net Income per Common Share | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
New Income per Common Share | ' | |||||||||
NET INCOME PER COMMON SHARE | ||||||||||
The computation of basic net income allocated to common stockholders is calculated by reducing net income for the period by dividends paid or declared and undistributed net income for the period to arrive at net income allocated to common stockholders. Net income allocated to common stockholders is divided by the weighted average number of common shares outstanding during the period to determine net income per share allocated to common stockholders. | ||||||||||
The computation of diluted earnings per share is calculated by dividing net income allocated to common stockholders by the sum of the weighted average number of common shares outstanding plus all additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. The dilutive effect is calculated using the more dilutive of the treasury stock or the two-class method. | ||||||||||
The following table reconciles net income allocated to common stockholders and the number of shares used to calculate the basic and diluted net income per common share for the three months ended March 31, 2014 and 2013: | ||||||||||
Three Months Ended March 31, | ||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | ||||||||
Basic EPS Numerator: | ||||||||||
Net Income | $ | 49,024 | $ | 42,373 | ||||||
Less: Earnings allocated to participating securities | (496 | ) | (584 | ) | ||||||
Net Income allocated to common stockholders | $ | 48,528 | $ | 41,789 | ||||||
Basic EPS Denominator: | ||||||||||
Weighted average shares outstanding | 86,453 | 87,272 | ||||||||
Basic net income per common share | $ | 0.56 | $ | 0.48 | ||||||
Diluted EPS Numerator: | ||||||||||
Net Income | $ | 49,024 | $ | 42,373 | ||||||
Less: Earnings allocated to participating securities | (496 | ) | (584 | ) | ||||||
Net Income allocated to common stockholders | $ | 48,528 | $ | 41,789 | ||||||
Diluted EPS Denominator: | ||||||||||
Weighted average shares outstanding | 86,453 | 87,272 | ||||||||
Dilutive common shares issued under restricted stock program | — | — | ||||||||
Diluted net income per common share | $ | 0.56 | $ | 0.48 | ||||||
For the three months ended March 31, 2014, 816,850 shares of restricted stock were not included in the computation of diluted net income per common share because to do so would have an anti-dilutive effect. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Share-based Compensation [Abstract] | ' | ||||||||
Stock-Based Compensation | ' | ||||||||
STOCK-BASED COMPENSATION | |||||||||
Stock-based compensation is based on the fair value of the award on the date of grant, which is recognized over the related service period, net of estimated forfeitures. The service period is the period over which the related service is performed, which is generally the same as the vesting period. | |||||||||
On February 19, 2014, the Company granted 45,168 shares of restricted stock and 161,024 restricted stock units ("RSUs"), each of which entitles the holders to one share of common stock upon vesting, to certain officers and employees at a fair value of $55.35 per share. The RSUs vest ratably over three years, with one-third vesting on each anniversary of the grant date, and vesting accelerates upon the occurrence of a change in control. Unvested restricted stock units will be forfeited if the officer or employee leaves the company prior to the applicable vesting date, except in limited circumstances. The restricted stock units have no voting rights but are able to participate in the payment of dividends. | |||||||||
In addition, on February 19, 2014, the Company granted 47,470 RSUs contingent on the achievement of performance conditions including 23,735 RSUs, at a fair value of $55.35 per RSU, related to earnings per share during the performance period and 23,735 RSUs, at a fair value of $77.00 per RSU, related to total shareholder return during the performance period. The Company used the Monte Carlo valuation model method to estimate the fair value of the total shareholder return RSUs which incorporated the following assumptions: risk free interest rate (0.69%), three-year volatility (24.8%) and three-year correlation with S&P 500 Index (0.56). Each of these performance shares has a performance condition under which the number of units ultimately awarded will vary from 0% to 200% of the original grant, with each unit representing the contingent right to receive one share of our common stock. The vesting period for the shares contingent on the achievement of performance is three years. For each of the award types, the restricted stock units will be settled in shares of our common stock following vesting of the restricted stock unit assuming that the participant has been continuously employed during the vesting period, subject to acceleration in the event of a change of control of the Company or in the event of a participant’s earlier death, disability or qualified retirement. Participants shall have no voting rights with respect to shares until the issuance of the shares of stock. Dividends are accrued by the Company and will be paid once the RSUs contingent on the achievement of performance conditions vest. | |||||||||
For the three months ended March 31, 2014 and 2013, the Company recognized $6.9 million and $6.7 million in stock-based compensation expense, respectively. The three months ended March 31, 2014 and 2013 included $2.5 million and $3.2 million of accelerated stock-based compensation expense, respectively. The accelerated stock-based compensation expense, in 2014 and 2013, is primarily for certain executives due to provisions contained in their employment arrangements. Stock-based compensation expense is included in employee costs in the condensed consolidated statements of income. | |||||||||
As of March 31, 2014, the Company had unrecognized stock-based compensation of $20.5 million. The remaining unrecognized stock-based compensation is expected to be recognized over a weighted average period of 26.5 months. | |||||||||
The activity in the Company’s restricted stock and restricted stock units for the three months ended March 31, 2014 was as follows: | |||||||||
Number of Shares | Weighted Average | ||||||||
Grant-Date Fair | |||||||||
Value | |||||||||
Unvested at January 1, 2014 | 708,221 | $ | 33.41 | ||||||
Granted | 253,662 | 57.38 | |||||||
Vested | (144,618 | ) | 52.84 | ||||||
Forfeited | (415 | ) | 29 | ||||||
Unvested at March 31, 2014 | 816,850 | $ | 38.35 | ||||||
Investment_in_Affiliates
Investment in Affiliates | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' | |||||||||
Investments in Affiliates | ' | |||||||||
INVESTMENTS IN AFFILIATES | ||||||||||
At March 31, 2014 and December 31, 2013, the investments in affiliates was composed of the following (in thousands): | ||||||||||
March 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Investment in OCC | $ | 333 | $ | 333 | ||||||
Investment in Signal Trading Systems, LLC | 11,120 | 11,130 | ||||||||
Investment in IPXI Holdings, LLC | 3,118 | 3,118 | ||||||||
Investment in CBOE Stock Exchange, LLC (1) | — | — | ||||||||
Investments in Affiliates | $ | 14,571 | $ | 14,581 | ||||||
(1) CBOE Stock Exchange, LLC ceased trading operations on April 30, 2014. |
Accounts_Payable_and_Accured_L
Accounts Payable and Accured Liabilities | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Payables and Accruals [Abstract] | ' | |||||||||
Accounts Payable and Accrued Liabilities | ' | |||||||||
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||||||||||
At March 31, 2014 and December 31, 2013, accounts payable and accrued liabilities consisted of the following (in thousands): | ||||||||||
March 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Compensation and benefit-related liabilities (1) | $ | 8,678 | $ | 22,193 | ||||||
Royalties | 14,509 | 13,512 | ||||||||
Accounts payable | 2,816 | 4,219 | ||||||||
Facilities | 1,459 | 1,824 | ||||||||
Legal | 1,402 | 1,602 | ||||||||
Linkage | 2,071 | 1,157 | ||||||||
Other | 10,468 | 8,451 | ||||||||
Total | $ | 41,403 | $ | 52,958 | ||||||
(1) The variance in compensation and benefit-related liabilities is primarily the result of the payment of 2013 annual incentive compensation in the first quarter of 2014, partially offset by the accrual of 2014 annual compensation expense through the three months ended March 31, 2014. |
Marketing_Fee
Marketing Fee | 3 Months Ended |
Mar. 31, 2014 | |
Marketing Fee [Abstract] | ' |
Marketing Fees | ' |
MARKETING FEE | |
CBOE facilitates the collection and payment of marketing fees assessed on certain trades taking place at CBOE. Funds resulting from the marketing fees are made available to Designated Primary Market Makers and Preferred Market Makers as an economic inducement to route orders to CBOE. Pursuant to ASC 605-45, Revenue Recognition—Principal Agent Considerations, the Company reflects the assessments and payments on a net basis, with no impact on revenues or expenses. | |
As of March 31, 2014 and December 31, 2013, amounts assessed by the Company on behalf of others included in current assets totaled $10.2 million and $8.9 million, respectively, and payments due to others included in current liabilities totaled $10.7 million and $9.4 million, respectively. |
Deferred_Revenue
Deferred Revenue | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Deferred Revenue [Abstract] | ' | ||||||||||||||||
Deferred Revenue | ' | ||||||||||||||||
DEFERRED REVENUE | |||||||||||||||||
The following table summarizes the activity in deferred revenue for the three months ended March 31, 2014 (in thousands): | |||||||||||||||||
Balance at | Cash | Revenue | Balance at March 31, 2014 | ||||||||||||||
December 31, | Additions | Recognition | |||||||||||||||
2013 | |||||||||||||||||
Other – net | $ | 1,100 | $ | 4,081 | $ | (1,814 | ) | $ | 3,367 | ||||||||
Liquidity provider sliding scale (1) | — | 14,400 | (3,600 | ) | 10,800 | ||||||||||||
Total deferred revenue | $ | 1,100 | $ | 18,481 | $ | (5,414 | ) | $ | 14,167 | ||||||||
(1) Liquidity providers are eligible to participate in the sliding scale program, which involves prepayment of transaction fees, and receive reduced fees based on the achievement of certain volume thresholds reached within a month. The prepayment of 2014 transaction fees totaled $14.4 million. This amount is amortized and recorded as transaction fees over the respective period. |
Employee_Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2014 | |
Employee Benefits [Abstract] | ' |
Postemployment Benefits Disclosure | ' |
EMPLOYEE BENEFITS | |
Employees are eligible to participate in the Chicago Board Options Exchange SMART Plan (“SMART Plan”). The SMART Plan is a defined contribution plan, which is qualified under Internal Revenue Code Section 401(k). The Company contributed $1.1 million and $1.0 million to the SMART Plan for the three months ended March 31, 2014 and 2013, respectively. | |
Eligible employees may participate in the Supplemental Employee Retirement Plan, Executive Retirement Plan and Deferred Compensation Plan. Each plan is a defined contribution plan that is non-qualified by Internal Revenue Code regulations. The Company contributed $0.3 million and $0.5 million to the above plans for the three months ended March 31, 2014 and 2013, respectively. | |
The Company has a post-retirement medical plan for certain current and former members of senior management. The Company recorded immaterial post-retirement benefits expense for the three months ended March 31, 2014 and 2013. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
For the three months ended March 31, 2014 and 2013, the Company recorded income tax provisions of $32.5 million and $26.3 million, respectively. The effective tax rate for the three months ended March 31, 2014 and 2013 was 39.9% and 38.3%, respectively. The increase in the effective tax rate for the three months ended March 31, 2014 resulted primarily from the recognition of a discrete tax charge. The prior year period included a discrete tax benefit, which lowered the effective rate. | |
As of March 31, 2014 and December 31, 2013, the Company had $28.5 million and $26.7 million, respectively, of uncertain tax positions excluding interest and penalties, which, if recognized in the future, would affect the annual effective income tax rate. Reductions to uncertain tax positions primarily from the lapse of the applicable statutes of limitations during the next twelve months are estimated to be approximately $7.2 million, not including any potential new additions. | |
Estimated interest costs and penalties, which are classified as part of the provision for income taxes in the Company’s condensed consolidated statements of income, were $0.6 million and $0.2 million for the three months ended March 31, 2014 and 2013, respectively. Accrued interest and penalties were $3.8 million and $3.2 million as of March 31, 2014 and December 31, 2013, respectively. | |
The Company is subject to U.S. federal tax, Illinois, New Jersey, and New York state taxes and Washington, D.C. taxes, as well as taxes in other local jurisdictions. The Company has open tax years from 2007 on for New York, 2008 on for Federal, 2009 on for Illinois, and 2010 on for New Jersey and Washington, D.C. The Internal Revenue Service is currently auditing 2010 and is looking at specific line items from 2008 to 2012 due to the filing by the Company of amended returns containing the recognition of certain credits and deductions. The Illinois Department of Revenue is currently auditing 2009 and 2010 tax years. The New York State Department of Taxation and Finance is currently auditing the 2007 through 2009 tax years. The New Jersey Division of Taxation has notified the Company that it will be auditing the 2010 through 2012 tax years. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk. | |||||||||||||||||
The Company applied FASB ASC 820, Fair Value Measurement and Disclosure (formerly, FASB Statement No. 157, Fair Value Measurements), which provides guidance for using fair value to measure assets and liabilities by defining fair value and establishing the framework for measuring fair value. ASC 820 applies to financial and nonfinancial instruments that are measured and reported on a fair value basis. The three-level hierarchy of fair value measurements is based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels: | |||||||||||||||||
• | Level 1—Unadjusted inputs based on quoted markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2—Observable inputs, either direct or indirect, not including Level 1, corroborated by market data or based upon quoted prices in non-active markets. | ||||||||||||||||
• | Level 3—Unobservable inputs that reflect management’s best assumptions of what market participants would use in valuing the asset or liability. | ||||||||||||||||
The Company has included a tabular disclosure for financial assets that are measured at fair value on a recurring basis in the condensed consolidated balance sheet as of March 31, 2014 and December 31, 2013. The Company holds no financial liabilities that are measured at fair value on a recurring basis. | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets at fair value: | |||||||||||||||||
Money market funds | $ | 183,000 | $ | — | $ | — | $ | 183,000 | |||||||||
Total assets at fair value at March 31, 2014 | $ | 183,000 | $ | — | $ | — | $ | 183,000 | |||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets at fair value: | |||||||||||||||||
Money market funds | $ | 207,000 | $ | — | $ | — | $ | 207,000 | |||||||||
Total assets at fair value at December 31, 2013 | $ | 207,000 | $ | — | $ | — | $ | 207,000 | |||||||||
The Company, through DerivaTech Corporation, a wholly-owned subsidiary, acquired a 10.0% interest in IPXI Holdings, LLC ("IPXI") for $2.5 million. The Company contributed an additional $0.6 million in October 2013. The investment, measured at fair value on a non-recurring basis, is classified as Level 3 as the fair value was based on both observable and unobservable inputs. |
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2014 | |
Legal Proceedings [Abstract] | ' |
Legal Proceedings | ' |
LEGAL PROCEEDINGS | |
As of March 31, 2014, the end of the period covered by this report, the Company was subject to various legal proceedings and claims, as well as certain other legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business. For a description of each of these proceedings, please see Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
The Company reviews its legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. The Company's assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. | |
Estimates of probable losses resulting from patent litigation involving the Company are inherently difficult to make, particularly when the Company's view of the case is significantly different than that expressed by the plaintiff. The Company has not recorded a liability related to damages in connection with these matters. | |
As of March 31, 2014, the Company does not think that there is a reasonable possibility that any material loss exceeding the amounts already recognized for these reviews, inspections or other legal proceedings, if any, has been incurred. While the consequences of certain unresolved proceedings are not presently determinable, the outcome of any litigation is inherently uncertain and an adverse outcome from certain matters could have a material effect on our earnings in any given reporting period. However, in the opinion of management, the ultimate liability is not expected to have a material effect on our financial position, liquidity or capital resources. | |
The following information updates the legal proceedings disclosures in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Patent Litigation | |
On April 7, 2014, the United States Court of Appeals for the Federal Circuit (the "Federal Circuit") issued its decision affirming the judgment of the United States Circuit Court for the Northern District of Illinois that CBOE did not infringe the International Securities Exchange, LLC ("ISE") patent at issue in this case. On May 5, 2014, the Federal Circuit denied ISE's petition for a panel rehearing of its appeal by the Federal Circuit. | |
City of Providence Litigation | |
On April 18, 2014, the City of Providence sued CBOE and C2 in federal court in New York City on behalf of a proposed class of all public investors who bought or sold stock, at any time since April 18, 2009 (the “class period”), that was listed on a U.S.-based exchange or alternate trading venue. Also named as defendants are other securities exchanges and a proposed defendant class of all firms that, during the class period, placed bids or offers or trades in stocks on behalf of public investors, operated alternate trading venues for placing bids, offers or trades in stocks, or engaged in high frequency trading (“HFT”) in stocks (the "Firm Defendants"). As applicable to CBOE and C2 and the other exchange defendants, the complaint alleges that the exchanges (i) participated in a scheme by which HFT firms allegedly defrauded U.S. public investors and manipulated the prices of stocks and (ii) failed to operate their stock markets in accordance with their duties under the Exchange Act. In addition to injunctive relief and attorneys’ fees, the complaint seeks unspecified amounts representing damages resulting from defendants' alleged wrongdoing, restitution of monies paid by the plaintiff class, disgorgement of defendants’ gains resulting from their alleged wrongdoing, and forfeiture of fees and compensation paid by the plaintiff class to defendants. On May 2, 2014, American European Insurance Company filed a substantially similar lawsuit against CBOE and C2, along with other securities exchanges and a similar group of Firm Defendants, on behalf of a proposed class of public investors. CBOE and C2 have not yet responded to either of the complaints, and no plaintiff class or defendant class has been certified. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
The Company announced that its board of directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable June 20, 2014 to stockholders of record at the close of business on May 30, 2014. |
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||
The following table reconciles net income allocated to common stockholders and the number of shares used to calculate the basic and diluted net income per common share for the three months ended March 31, 2014 and 2013: | ||||||||||
Three Months Ended March 31, | ||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | ||||||||
Basic EPS Numerator: | ||||||||||
Net Income | $ | 49,024 | $ | 42,373 | ||||||
Less: Earnings allocated to participating securities | (496 | ) | (584 | ) | ||||||
Net Income allocated to common stockholders | $ | 48,528 | $ | 41,789 | ||||||
Basic EPS Denominator: | ||||||||||
Weighted average shares outstanding | 86,453 | 87,272 | ||||||||
Basic net income per common share | $ | 0.56 | $ | 0.48 | ||||||
Diluted EPS Numerator: | ||||||||||
Net Income | $ | 49,024 | $ | 42,373 | ||||||
Less: Earnings allocated to participating securities | (496 | ) | (584 | ) | ||||||
Net Income allocated to common stockholders | $ | 48,528 | $ | 41,789 | ||||||
Diluted EPS Denominator: | ||||||||||
Weighted average shares outstanding | 86,453 | 87,272 | ||||||||
Dilutive common shares issued under restricted stock program | — | — | ||||||||
Diluted net income per common share | $ | 0.56 | $ | 0.48 | ||||||
For the three months ended March 31, 2014, 816,850 shares of restricted stock were not included in the computation of diluted net income per common share because to do so would have an anti-dilutive effect. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Share-based Compensation [Abstract] | ' | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||
The activity in the Company’s restricted stock and restricted stock units for the three months ended March 31, 2014 was as follows: | |||||||||
Number of Shares | Weighted Average | ||||||||
Grant-Date Fair | |||||||||
Value | |||||||||
Unvested at January 1, 2014 | 708,221 | $ | 33.41 | ||||||
Granted | 253,662 | 57.38 | |||||||
Vested | (144,618 | ) | 52.84 | ||||||
Forfeited | (415 | ) | 29 | ||||||
Unvested at March 31, 2014 | 816,850 | $ | 38.35 | ||||||
Investment_in_Affiliates_Table
Investment in Affiliates (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' | |||||||||
Investments in and Advances to Affiliates | ' | |||||||||
At March 31, 2014 and December 31, 2013, the investments in affiliates was composed of the following (in thousands): | ||||||||||
March 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Investment in OCC | $ | 333 | $ | 333 | ||||||
Investment in Signal Trading Systems, LLC | 11,120 | 11,130 | ||||||||
Investment in IPXI Holdings, LLC | 3,118 | 3,118 | ||||||||
Investment in CBOE Stock Exchange, LLC (1) | — | — | ||||||||
Investments in Affiliates | $ | 14,571 | $ | 14,581 | ||||||
(1) CBOE Stock Exchange, LLC ceased trading operations on April 30, 2014. |
Accounts_Payable_and_Accured_L1
Accounts Payable and Accured Liabilities (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Payables and Accruals [Abstract] | ' | |||||||||
Schedule of Accounts Payable and Accrued Liabilities | ' | |||||||||
At March 31, 2014 and December 31, 2013, accounts payable and accrued liabilities consisted of the following (in thousands): | ||||||||||
March 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Compensation and benefit-related liabilities (1) | $ | 8,678 | $ | 22,193 | ||||||
Royalties | 14,509 | 13,512 | ||||||||
Accounts payable | 2,816 | 4,219 | ||||||||
Facilities | 1,459 | 1,824 | ||||||||
Legal | 1,402 | 1,602 | ||||||||
Linkage | 2,071 | 1,157 | ||||||||
Other | 10,468 | 8,451 | ||||||||
Total | $ | 41,403 | $ | 52,958 | ||||||
(1) The variance in compensation and benefit-related liabilities is primarily the result of the payment of 2013 annual incentive compensation in the first quarter of 2014, partially offset by the accrual of 2014 annual compensation expense through the three months ended March 31, 2014. |
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Deferred Revenue [Abstract] | ' | ||||||||||||||||
Deferred Revenue, by Arrangement, Disclosure | ' | ||||||||||||||||
The following table summarizes the activity in deferred revenue for the three months ended March 31, 2014 (in thousands): | |||||||||||||||||
Balance at | Cash | Revenue | Balance at March 31, 2014 | ||||||||||||||
December 31, | Additions | Recognition | |||||||||||||||
2013 | |||||||||||||||||
Other – net | $ | 1,100 | $ | 4,081 | $ | (1,814 | ) | $ | 3,367 | ||||||||
Liquidity provider sliding scale (1) | — | 14,400 | (3,600 | ) | 10,800 | ||||||||||||
Total deferred revenue | $ | 1,100 | $ | 18,481 | $ | (5,414 | ) | $ | 14,167 | ||||||||
(1) Liquidity providers are eligible to participate in the sliding scale program, which involves prepayment of transaction fees, and receive reduced fees based on the achievement of certain volume thresholds reached within a month. The prepayment of 2014 transaction fees totaled $14.4 million. This amount is amortized and recorded as transaction fees over the respective period. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value, Measurement Inputs, Disclosure | ' | ||||||||||||||||
The Company has included a tabular disclosure for financial assets that are measured at fair value on a recurring basis in the condensed consolidated balance sheet as of March 31, 2014 and December 31, 2013. The Company holds no financial liabilities that are measured at fair value on a recurring basis. | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets at fair value: | |||||||||||||||||
Money market funds | $ | 183,000 | $ | — | $ | — | $ | 183,000 | |||||||||
Total assets at fair value at March 31, 2014 | $ | 183,000 | $ | — | $ | — | $ | 183,000 | |||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets at fair value: | |||||||||||||||||
Money market funds | $ | 207,000 | $ | — | $ | — | $ | 207,000 | |||||||||
Total assets at fair value at December 31, 2013 | $ | 207,000 | $ | — | $ | — | $ | 207,000 | |||||||||
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 32 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 11, 2013 | Jul. 31, 2012 | Aug. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 |
Stock Repurchase Program, Authorized Amount | $100 | $100 | $100 | ' | ' |
Treasury Stock, Shares, Acquired | ' | ' | ' | 700,868 | 5,340,692 |
Treasury Stock Acquired, Average Cost Per Share | ' | ' | ' | $52.99 | ' |
Treasury Stock, Shares | ' | ' | ' | 179.2 | 179.2 |
Treasury Stock Acquired,Cost Per Share | ' | ' | ' | $33.55 | $33.55 |
Treasury Stock [Member] | ' | ' | ' | ' | ' |
Treasury Stock, Value, Acquired, Cost Method | ' | ' | ' | $37.10 | ' |
Net_Income_per_Common_Share_De
Net Income per Common Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $49,024 | $42,373 |
Net Income allocated to participating securities | -496 | -584 |
Net Income Allocated to Common Stockholders | $48,528 | $41,789 |
Weighted Average Number of Shares Outstanding, Basic (in shares) | 86,453,000 | 87,272,000 |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 86,453,000 | 87,272,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 |
Basic (in dollars per share) | $0.56 | $0.48 |
Diluted (in dollars per share) | $0.56 | $0.48 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 20, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | ' | 253,662 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | $57.38 | ' |
Stock-based compensation | ' | $6,913,000 | $6,739,000 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | ' | 2,500,000 | 3,200,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | ' | $20,500,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | '26 months 15 days | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.69% | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 24.80% | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 45,168 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 55.35 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 161,024 | ' | ' |
Performance Shares [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 47,470 | ' | ' |
Earnings Per Share [Member] | Performance Shares [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 23,735 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 55.35 | ' | ' |
Total Shareholder Return [Member] | Performance Shares [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 23,735 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 77 | ' | ' |
StockBased_Compensation_Restic
Stock-Based Compensation (Resticted Stock) (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 20, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | 816,850 | 708,221 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ' | $38.35 | $33.41 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | ' | 253,662 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | $57.38 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | -144,618 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | ' | $52.84 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | -415 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | $29 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 24.80% | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.69% | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 45,168 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 55.35 | ' | ' |
Performance Shares [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 47,470 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 161,024 | ' | ' |
Earnings Per Share [Member] | Performance Shares [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 23,735 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 55.35 | ' | ' |
Total Shareholder Return [Member] | Performance Shares [Member] | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares) | 23,735 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 77 | ' | ' |
Investment_in_Affiliates_Detai
Investment in Affiliates (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Investments in Affiliates | $14,571 | $14,581 | ' |
Investment in OCC [Member] | ' | ' | ' |
Investments in Affiliates | 333 | 333 | ' |
Investment in Signal Trading [Member] | ' | ' | ' |
Investments in Affiliates | 11,120 | 11,130 | ' |
Investment in IPXI [Member] | ' | ' | ' |
Investments in Affiliates | 3,118 | 3,118 | 2,500 |
Investment in CBSX [Member] [Member] | ' | ' | ' |
Investments in Affiliates | $0 | $0 | ' |
Accounts_Payable_and_Accured_L2
Accounts Payable and Accured Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and benefit-related liabilities (1) | $8,678 | $22,193 |
Royalties | 14,509 | 13,512 |
Accounts payable | 2,816 | 4,219 |
Facilities | 1,459 | 1,824 |
Legal | 1,402 | 1,602 |
Linkage | 2,071 | 1,157 |
Other | 10,468 | 8,451 |
Accounts payable and accrued liabilities | $41,403 | $52,958 |
Marketing_Fee_Details
Marketing Fee (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Marketing Fee [Abstract] | ' | ' |
Marketing fee receivable | $10,176 | $8,869 |
Marketing fee payable | $10,743 | $9,442 |
Deferred_Revenue_Details
Deferred Revenue (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Deferred Revenue [Roll Forward] | ' |
Balance at December 31, 2013 | $1,100 |
Cash Additions | 18,481 |
Revenue Recognition | -5,414 |
Balance at March 31, 2014 | 14,167 |
Other – net | ' |
Deferred Revenue [Roll Forward] | ' |
Balance at December 31, 2013 | 1,100 |
Cash Additions | 4,081 |
Revenue Recognition | -1,814 |
Balance at March 31, 2014 | 3,367 |
Liquidity Provider Slidingn Scale [Member] | ' |
Deferred Revenue [Roll Forward] | ' |
Cash Additions | 14,400 |
Revenue Recognition | -3,600 |
Balance at March 31, 2014 | $10,800 |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Benefits [Abstract] | ' | ' |
Defined Benefit Plan, Contributions by Employer | $1,108 | $964 |
Pension and Other Postretirement Benefit Contributions | $317 | $524 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Income Tax Expense (Benefit) | $32,519,000 | $26,336,000 | ' |
Effective Income Tax Rate, Continuing Operations | 39.90% | 38.30% | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 28,500,000 | ' | 26,700,000 |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | 7,193,000 | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 600,000 | 200,000 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $3,800,000 | ' | $3,200,000 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment in IPXI [Member] | Investment in IPXI [Member] | Investment in IPXI [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' |
Investments in Affiliates | $14,571,000 | ' | $14,581,000 | $3,118,000 | $3,118,000 | $2,500,000 |
Other than Temporary Impairment Losses, Investments | 0 | 245,000 | ' | ' | ' | ' |
Cost Method Investment, Ownership Percentage | 10.00% | ' | ' | ' | ' | ' |
Payments for (Proceeds from) Investments | 500,000 | 676,000 | ' | ' | ' | ' |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | ' | ' | ' | ' | $600,000 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 | ' | ' |
Money market funds | $183,000 | $207,000 |
Assets, Fair Value Disclosure | 183,000 | 207,000 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Money market funds | 183,000 | 207,000 |
Assets, Fair Value Disclosure | $183,000 | $207,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended |
Apr. 30, 2014 | |
Common Stock, Dividends, Per Share, Declared | $0.18 |