Documentation_and_Entity_Infor
Documentation and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 02, 2015 | |
Entity Registrant Name | Interactive Brokers Group, Inc. | ||
Entity Central Index Key | 1381197 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Fiscal Year Focus | 2014 | ||
Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,329,833,125 | ||
Common Class A | |||
Common Stock Shares Outstanding | 58,473,186 | ||
Common Class B | |||
Common Stock Shares Outstanding | 100 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $1,269,317 | $1,213,241 |
Cash and securities segregated for regulatory purposes | 15,403,512 | 13,991,711 |
Securities borrowed | 3,659,766 | 2,751,501 |
Securities purchased under agreements to resell | 386,221 | 386,316 |
Financial instruments owned, at fair value: | ||
Financial instruments owned | 1,998,427 | 3,285,313 |
Financial instruments owned and pledged as collateral | 1,935,722 | 1,163,531 |
Total financial instruments owned, at fair value | 3,934,149 | 4,448,844 |
Receivables: | ||
Customer receivables | 17,051,452 | 13,596,650 |
Receivables from brokers, dealers and clearing organizations | 1,131,177 | 858,189 |
Interest receivable | 36,785 | 26,489 |
Total receivables | 18,219,414 | 14,481,328 |
Other assets | 512,647 | 597,759 |
Total assets | 43,385,026 | 37,870,700 |
Liabilities and equity | ||
Short-term borrowings | 33,791 | 24,635 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 2,560,787 | 3,153,673 |
Securities loaned | 3,199,106 | 2,563,653 |
Payables: | ||
Customer payables | 31,795,853 | 26,319,420 |
Payables to brokers, dealers and clearing organizations | 234,098 | 330,956 |
Payable to affiliate | 277,400 | 287,242 |
Accounts payable, accrued expenses and other liabilities | 95,401 | 96,026 |
Interest payable | 3,962 | 2,969 |
Total payables | 32,406,714 | 27,036,613 |
Total liabilities | 38,200,398 | 32,778,574 |
Stockholders' equity: | ||
Additional paid-in capital | 636,150 | 583,312 |
Retained earnings | 120,670 | 98,868 |
Accumulated other comprehensive income, net of income taxes of $651 and $936 at December 31, 2014 and 2013 | 11,982 | 27,028 |
Treasury stock, at cost, 139,059 and 123,954 shares at December 31, 2014 and 2013 | -3,064 | -2,492 |
Total stockholders' equity | 766,324 | 707,264 |
Noncontrolling interests | 4,418,304 | 4,384,862 |
Total equity | 5,184,628 | 5,092,126 |
Total liabilities and stockholders' equity | 43,385,026 | 37,870,700 |
Common Class A | ||
Stockholders' equity: | ||
Common stock | 586 | 548 |
Common Class B | ||
Stockholders' equity: | ||
Common stock |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $6,613 | $67,999 |
Common stock, par value | $0.01 | |
Common stock, shares issued | 58,612,245 | |
Common stock, shares outstanding | 58,473,186 | |
Accumulated Other Comprehensive Income, Tax | $651 | $936 |
Treasury stock shares | 139,059 | 123,954 |
Common Class A | ||
Common stock, par value | $0.01 | $0.01 |
Shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 58,612,245 | 54,788,049 |
Common stock, shares outstanding | 58,473,186 | 54,664,095 |
Common Class B | ||
Shares authorized | 100 | 100 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Trading gains | $261,147 | $331,233 | $465,973 |
Commissions and execution fees | 548,830 | 502,116 | 412,614 |
Interest income | 416,152 | 303,356 | 270,319 |
Other (loss) income | -110,581 | -8,845 | 43,564 |
Total revenues | 1,115,548 | 1,127,860 | 1,192,470 |
Interest expense | 72,272 | 51,720 | 61,950 |
Total net revenues | 1,043,276 | 1,076,140 | 1,130,520 |
Non-interest expenses: | |||
Execution and clearing | 211,498 | 242,426 | 250,990 |
Employee compensation and benefits | 204,805 | 205,329 | 244,504 |
Occupancy, depreciation and amortization | 39,369 | 38,923 | 38,875 |
Communications | 24,196 | 23,130 | 23,258 |
General and administrative | 57,285 | 115,054 | 45,893 |
Total non-interest expenses | 537,153 | 624,862 | 603,520 |
Income before income taxes | 506,123 | 451,278 | 527,000 |
Income tax expense | 47,254 | 33,685 | 30,014 |
Net income | 458,869 | 417,593 | 496,986 |
Less net income attributable to noncontrolling interests | 414,336 | 380,590 | 456,318 |
Net income attributable to common stockholders | 44,533 | 37,003 | 40,668 |
Earnings per share: | |||
Basic | $0.79 | $0.74 | $0.89 |
Diluted | $0.77 | $0.73 | $0.89 |
Weighted average common shares outstanding: | |||
Weighted Average Number of Shares Outstanding, Basic | 56,492,381 | 49,742,428 | 46,814,676 |
Weighted Average Number of Shares Outstanding, Diluted | 57,709,668 | 50,924,736 | 47,070,522 |
Comprehensive income: | |||
Net income attributable to common stockholders | 44,533 | 37,003 | 40,668 |
Other comprehensive income: | |||
Cumulative translation adjustment, before income taxes | -15,331 | -3,207 | 2,231 |
Income taxes related to items of other comprehensive income | -285 | -481 | -9,036 |
Other comprehensive income (loss), net of tax | -15,046 | -2,726 | 11,267 |
Comprehensive income attributable to common stockholders, net of tax | 29,487 | 34,277 | 51,935 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income attributable to noncontrolling interests | 414,336 | 380,590 | 456,318 |
Other comprehensive income (loss) - cumulative translation adjustment | -91,992 | -24,643 | 16,955 |
Comprehensive income attributable to noncontrolling interests | $322,344 | $355,947 | $473,273 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $458,869 | $417,593 | $496,986 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Deferred income taxes | 18,168 | 11,730 | 17,784 |
Depreciation and amortization | 19,679 | 19,244 | 19,269 |
Employee stock plan compensation | 40,621 | 40,272 | 67,092 |
Unrealized losses on other investments, net | 9,664 | 5,561 | 2,164 |
Bad debt expense | 3,174 | 67,166 | 758 |
Change in operating assets and liabilities: | |||
Cash and securities - segregated for regulatory purposes | -1,409,364 | -1,275,330 | -2,235,490 |
Securities borrowed | -908,265 | 81,644 | -171,474 |
Securities purchased under agreements to resell | 95 | 42,588 | -53,538 |
Financial instruments owned, at fair value | 512,058 | 95,892 | 2,070,342 |
Receivables from customers | -3,457,976 | -3,745,632 | -2,826,226 |
Other receivables | -283,284 | -16,700 | 550,874 |
Other assets | -7,745 | -75,489 | -2,886 |
Financial instruments sold but not yet purchased, at fair value | -592,886 | -1,132,587 | -1,869,888 |
Securities loaned | 635,453 | 724,379 | 453,215 |
Payable to customers | 5,476,433 | 4,897,442 | 4,121,873 |
Other payables | -97,728 | -16,873 | 84,609 |
Net cash provided by operating activities | 416,966 | 140,900 | 725,464 |
Cash flows from investing activities: | |||
Purchases of other investments | -443,154 | -263,499 | -453,161 |
Proceeds from sales of other investments | 515,223 | 236,818 | 417,158 |
Distributions received from and redemptions of equity investments | 1,484 | 11,054 | 1,567 |
Purchase of property and equipment | -19,428 | -16,812 | -17,997 |
Net cash provided by (used in) investing activities | 54,125 | -32,439 | -52,433 |
Cash flows from financing activities: | |||
Dividends paid to stockholders | -22,731 | -20,207 | -66,298 |
Distributions to noncontrolling interests | -278,650 | -142,458 | -525,253 |
Redemptions of senior notes | -101,411 | ||
Short-term borrowings, net | 9,156 | -85,785 | 103,882 |
Payments made under the Tax Receivable Agreement | -15,752 | -16,115 | |
Net cash used in financing activities | -307,977 | -248,450 | -605,195 |
Effect of exchange rate changes on cash and cash equivalents | -107,038 | -27,369 | 28,221 |
Net increase (decrease) in cash and cash equivalents | 56,076 | -167,358 | 96,057 |
Cash and cash equivalents at beginning of period | 1,213,241 | 1,380,599 | 1,284,542 |
Cash and cash equivalents at end of period | 1,269,317 | 1,213,241 | 1,380,599 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 72,856 | 53,258 | 63,858 |
Cash paid for taxes | 36,787 | 52,086 | 23,110 |
Non-cash financing activities: | |||
Issuance of Common Stock in exchange of member interests in IBG LLC | 35,185 | 109,684 | |
Redemption of member interests from IBG Holdings LLC | -35,185 | -109,684 | |
Adjustments to additional paid-in capital for changes in proportionate ownership in IBG LLC | 10,476 | -30,350 | 13,800 |
Adjustments to noncontrolling interests for changes in proportionate ownership in IBG LLC | -10,476 | 30,350 | -13,800 |
Changes in redemption value of redeemable noncontrolling interests | -5,269,619 | ||
Changes to total equity for the change in redemptions value of redeemable noncontrolling interests | $5,269,519 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Changes in Equity (USD $) | Stocks [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total Stockholders' Equity [Member] | Non-controlling Interests [Member] | Redeemable Noncontrolling Interests [Member] | Total |
In Thousands, except Share data | |||||||||
Balance at Dec. 31, 2011 | $460 | ($13,310) | ($465,138) | $18,487 | ($459,501) | $1,837 | $5,269,619 | ($457,664) | |
Common stock, shares issued at Dec. 31, 2011 | 46,061,256 | ||||||||
Adjustment of redeemable noncontrolling interests from temporary to permanent equity (Note 4) | 472,409 | 572,840 | 1,045,249 | 4,322,304 | -5,269,619 | 5,367,553 | |||
Common stock distributed pursuant to stock plans | 18 | -18 | 5,592 | 5,592 | 5,592 | ||||
Common Stock distributed pursuant to stock plans (in shares) | 1,736,588 | ||||||||
Compensation for stock grants vesting in the future | 7,226 | 7,226 | 29,096 | 36,322 | |||||
Deferred tax benefit retained - follow-on offering | 495 | 495 | 495 | ||||||
Dividends paid to stockholders | -66,298 | -66,298 | -66,298 | ||||||
Distributions from IBG LLC to noncontrolling interests | -490,261 | -490,261 | |||||||
Adjustments for changes in proportionate ownership in IBG LLC | 13,800 | 13,800 | -59 | 13,741 | |||||
Comprehensive Income | 40,668 | 11,267 | 51,935 | 351,732 | 403,667 | ||||
Balance at Dec. 31, 2012 | 478 | 493,912 | -7,718 | 82,072 | 29,754 | 598,498 | 4,214,649 | 4,813,147 | |
Common stock, shares issued at Dec. 31, 2012 | 47,797,844 | ||||||||
Issuance of common stock in follow-on offering | 47 | 109,639 | 109,686 | -109,686 | |||||
Number of new stock issued during the period (in shares) | 4,683,415 | 4,683,415 | |||||||
Common stock distributed pursuant to stock plans | 23 | -23 | 5,226 | 5,226 | 5,226 | ||||
Common Stock distributed pursuant to stock plans (in shares) | 2,306,790 | ||||||||
Compensation for stock grants vesting in the future | 5,128 | 5,128 | 36,060 | 41,188 | |||||
Deferred tax benefit retained - follow-on offering | 5,006 | 5,006 | 5,006 | ||||||
Dividends paid to stockholders | -20,207 | -20,207 | -20,207 | ||||||
Distributions from IBG LLC to noncontrolling interests | -142,458 | -142,458 | |||||||
Adjustments for changes in proportionate ownership in IBG LLC | -30,350 | -30,350 | 30,350 | ||||||
Comprehensive Income | 37,003 | -2,726 | 34,277 | 355,947 | 390,224 | ||||
Balance at Dec. 31, 2013 | 548 | 583,312 | -2,492 | 98,868 | 27,028 | 707,264 | 4,384,862 | 5,092,126 | |
Common stock, shares issued at Dec. 31, 2013 | 54,788,049 | ||||||||
Issuance of common stock in follow-on offering | 14 | 35,171 | 35,185 | -35,185 | |||||
Number of new stock issued during the period (in shares) | 1,358,478 | 1,358,478 | |||||||
Common stock distributed pursuant to stock plans | 24 | -24 | 178 | 178 | 178 | ||||
Common Stock distributed pursuant to stock plans (in shares) | 2,445,200 | ||||||||
Compensation for stock grants vesting in the future | 5,671 | 5,671 | 34,951 | 40,622 | |||||
Stock Incentive Plan Adjustment | 75 | -750 | -675 | 458 | -217 | ||||
Stock Incentive Plan Adjustment (in hsares) | 20,518 | ||||||||
Deferred tax benefit retained - follow-on offering | 998 | 998 | 998 | ||||||
Deferred tax benefit retained on stock incentive plans | 471 | 471 | 471 | ||||||
Dividends paid to stockholders | -22,731 | -22,731 | -22,731 | ||||||
Distributions from IBG LLC to noncontrolling interests | -278,650 | -278,650 | |||||||
Adjustments for changes in proportionate ownership in IBG LLC | 10,476 | 10,476 | -10,476 | ||||||
Comprehensive Income | 44,533 | -15,046 | 29,487 | 322,344 | 351,831 | ||||
Balance at Dec. 31, 2014 | $586 | $636,150 | ($3,064) | $120,670 | $11,982 | $766,324 | $4,418,304 | $5,184,628 | |
Common stock, shares issued at Dec. 31, 2014 | 58,612,245 | 58,612,245 |
Organization_And_Nature_Of_Bus
Organization And Nature Of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Nature Of Business [Abstract] | |
Organization And Nature Of Business | 1. Organization and Nature of Business |
Interactive Brokers Group, Inc. (“IBG, Inc.”) is a Delaware holding company whose primary asset is its ownership of approximately 14.5% of the membership interests of IBG LLC, which, in turn, owns operating subsidiaries (collectively, “IBG LLC”). IBG, Inc. together with IBG LLC and its consolidated subsidiaries (collectively, “the Company”), is an automated global electronic broker and market maker specializing in executing and clearing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 100 electronic exchanges and trading venues around the world and offering custody, prime brokerage, securities and margin lending services to customers. In the United States of America (“U.S.”), the Company’s business is conducted from its headquarters in Greenwich, Connecticut, from Chicago, Illinois and from Jersey City, New Jersey. Abroad, business is conducted through offices located in Canada, England, Switzerland, Liechtenstein, China (Hong Kong and Shanghai), Japan, India, and Australia. At December 31, 2014, the Company had 960 employees worldwide. | |
IBG LLC is a Connecticut limited liability company that conducts its business through its operating subsidiaries (collectively, the “Operating Companies”): Interactive Brokers LLC (“IB LLC”) and its subsidiary, Interactive Brokers Corp. (“IB Corp”); Interactive Brokers Canada Inc. (“IBC”); Interactive Brokers (U.K.) Limited and its subsidiary, Interactive Brokers (U.K.) Nominee Limited (collectively, “IBUK”); Interactive Brokers Securities Japan, Inc. (“IBSJ”); Interactive Brokers (India) Private Limited (“IBI”); Timber Hill LLC (“TH LLC”); Timber Hill Europe AG and its subsidiary, Timber Hill (Liechtenstein) AG (collectively, “THE”); Timber Hill Securities Hong Kong Limited (“THSHK”); Timber Hill Australia Pty Limited (“THA”); Timber Hill Canada Company (“THC”); Interactive Brokers Financial Products S.A. (“IBFP”); Interactive Brokers Hungary KFT (“IBH”); IB Exchange Corp. (“IBEC”); Interactive Brokers Software Services Estonia OU (“IBEST”) and Interactive Brokers Software Services Russia (“IBRUS”). | |
The Company operates in two business segments: electronic brokerage and market making, both supported by corporate. The Company conducts its electronic brokerage business through certain Interactive Brokers subsidiaries, which provide electronic execution and clearing services to customers worldwide. The Company conducts its market making business principally through its Timber Hill subsidiaries on the world’s leading exchanges and market centers, primarily in exchange‑traded equities, equity options and equity‑index options and futures. Corporate enables the Company to operate cohesively and effectively by providing support via control functions to the business segments and also by executing the Company’s currency diversification strategy. | |
Certain of the Operating Companies are members of various securities and commodities exchanges in North America, Europe and the Asia/Pacific region and are subject to regulatory capital and other requirements (see Note 17). IB LLC, IBUK, IBC, IBI and IBSJ carry securities accounts for customers or perform custodial functions relating to customer securities. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Significant Accounting Policies [Abstract] | |||||
Significant Accounting Policies | 2. Significant Accounting Policies | ||||
Basis of Presentation | |||||
These consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding financial reporting with respect to Form 10‑K. | |||||
These consolidated financial statements include the accounts of the Company and its consolidated subsidiaries and reflect all adjustments of a normal and recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the periods presented. | |||||
In connection with the Company’s currency diversification strategy, the Company’s net worth is held in a basket of 16 currencies (referred to by management as the “GLOBAL”). For the year ended December 31, 2014, the Company has improved the transparency of its currency diversification strategy results by (1) reporting nearly all translation gains and losses from this strategy as other income (previously reported as a component of trading gains) in the consolidated statements of comprehensive income, and (2) reporting these gains and losses in the corporate segment instead of the market making segment . These changes in presentation resulted in certain reclassifications to previously reported amounts. | |||||
Principles of Consolidation, including Noncontrolling Interests | |||||
The consolidated financial statements include the accounts of IBG, Inc. and its majority and wholly owned subsidiaries. As sole managing member of IBG LLC, IBG, Inc. exerts control over IBG LLC’s operations. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation”, the Company consolidates IBG LLC’s financial statements and records the interests in IBG LLC that it does not own as noncontrolling interests. | |||||
Prior to the June 6, 2012 amendment (the ‘‘Amendment’’) to the Exchange Agreement (see Note 4), the Company was required to report IBG Holdings LLC’s (‘‘Holdings’’) ownership as redeemable noncontrolling interests (i.e., temporary equity), outside of total equity. Redemption value of these redeemable noncontrolling interests was measured as the number of equivalent shares of member interests in IBG LLC owned by Holdings multiplied by the then current market price per share of the Company’s common stock. The excess of the redemption value over the book value of these interests, which did not affect net income attributable to common stockholders or cash flows, was required to be accounted for as a reduction of the Company’s stockholders’ equity. | |||||
The Company elected to recognize changes in redemption value in each reporting period immediately as they occurred as if the end of each reporting period was also the redemption date for the entire redeemable noncontrolling interest, notwithstanding that the redeemable noncontrolling interests are redeemable over a period of time pursuant to a redemption schedule (see Note 4). | |||||
For periods after the Amendment, the noncontrolling interests in IBG LLC attributable to Holdings are reported as a component of equity. | |||||
The Company’s policy is to consolidate all other entities in which it owns more than 50% unless it does not have control. All inter‑company balances and transactions have been eliminated. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in these consolidated financial statements and accompanying notes. These estimates and assumptions are based on judgment and the best available information at the time. Therefore, actual results could differ materially from those estimates. Such estimates include the allowance for doubtful accounts, valuation of certain investments, compensation accruals, current and deferred income taxes, and estimated contingency reserves. | |||||
Fair Value | |||||
Substantially all of the Company’s assets and liabilities, including financial instruments are carried at fair value based on published market prices and are marked to market, or are assets and liabilities which are short‑term in nature and are carried at amounts that approximate fair value. | |||||
The Company applies the fair value hierarchy in accordance with FASB ASC Topic 820, “Fair Value Measurement” (“ASC Topic 820”), to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are: | |||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||
Level 2 | Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly. | ||||
Level 3 | Prices or valuations that require inputs that are both significant to fair value measurement and unobservable. | ||||
Financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value are generally classified as Level 1 of the fair value hierarchy. The Company’s Level 1 financial instruments, which are valued using quoted market prices as published by exchanges and clearing houses or otherwise broadly distributed in active markets, include active listed stocks, options, warrants and discount certificates, U.S. and foreign government securities and corporate and municipal bonds. The Company does not adjust quoted prices for financial instruments classified as Level 1 of the fair value hierarchy, even in the event that the Company may hold a large position whereby a purchase or sale could reasonably impact quoted prices. | |||||
Currency forward contracts are valued using broadly distributed bank and broker prices, and are classified as Level 2 of the fair value hierarchy as such instruments are not exchange‑traded. Other securities that are not traded in active markets are also classified in Level 2 of the fair value hierarchy. Level 3 financial instruments are comprised of securities that have been delisted or otherwise are no longer tradable and have been valued by the Company based on internal estimates. | |||||
Other fair value investments and other fair value liabilities, included in other assets and other liabilities and accrued expenses, respectively, in the consolidated statements of financial condition, are comprised of listed stocks, options, foreign currency contracts and corporate and municipal bonds that the Company does not carry in its market making business. These investments are generally reported as Level 2 of the fair value hierarchy, except for unrestricted listed securities, which are classified as Level 1 of the fair value hierarchy, and delisted securities which are classified as Level 3 of the fair value hierarchy. | |||||
Earnings Per Share | |||||
Earnings per share (“EPS”) are computed in accordance with FASB ASC Topic 260, “Earnings per Share.” Basic EPS is computed by dividing the net income available for common stockholders by the weighted average number of shares outstanding for that period. Diluted EPS is calculated by dividing the net income available for common stockholders by the diluted weighted average shares outstanding for that period. Diluted EPS includes the determinants of the basic EPS and, in addition, reflects the dilutive effect of shares of common stock estimated to be distributed in the future under the Company’s stock-based compensation plans, with no adjustments to net income available for common stockholders for dilutive potential common shares. | |||||
For periods prior to June 6, 2012 (see Note 4), the Company has determined to reflect measurement adjustments for non-fair value redemption rights through application of the two-class method of calculating earnings per share in lieu of recognizing the impact through the determination of net income attributable to common shareholders. Furthermore, the Company has elected to treat only the portion of the periodic measurement adjustments that reflect a redemption in excess of fair value as being akin to a dividend, reducing net income attributable to common stockholders for purposes of applying the two-class method. Decreases in the carrying amount of redeemable noncontrolling interests through measurement adjustments are reflected in the application of the two-class method only to the extent they represent recoveries of amounts previously accounted for by applying the two-class method. | |||||
Stock‑Based Compensation | |||||
The Company follows FASB ASC Topic 718, “Compensation - Stock Compensation” (“ASC Topic 718”), to account for its stock‑based compensation plans. ASC Topic 718 requires all share‑based payments to employees to be recognized in the consolidated financial statements using a fair value‑based method. Grants, which are denominated in U.S. dollars, are communicated to employees in the year of grant, thereby establishing the fair value of each grant. The fair value of awards granted to employees are generally expensed as follows: 50% in the year of grant in recognition of plan forfeiture provisions (as described below) and the remaining 50% over the related vesting period utilizing the “graded vesting” method permitted under ASC Topic 718. In the case of “retirement eligible” employees (those employees older than 59), 100% of awards are expensed when granted. | |||||
Awards granted under stock‑based compensation plans are subject to forfeiture in the event an employee ceases employment with the Company. The plans provide that employees who discontinue employment with the Company without cause and continue to meet the terms of the plans’ post‑employment provisions will forfeit 50% of unvested previously granted awards unless the employee is over the age of 59, in which case the employee would be eligible to receive 100% of unvested awards previously granted. | |||||
Cash and Cash Equivalents | |||||
The Company considers all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes or to meet margin requirements at clearing houses to be cash equivalents. | |||||
Cash and Securities - Segregated for Regulatory Purposes | |||||
As a result of customer activities, certain Operating Companies are obligated by rules mandated by their primary regulators to segregate or set aside cash or qualified securities to satisfy such regulations, which regulations have been promulgated to protect customer assets. Securities segregated for regulatory purposes consisted of U.S. Treasury securities of $6.68 billion and $1.30 billion at December 31, 2014 and December 31, 2013, respectively, and securities purchased under agreements to resell in the amount of $3.87 billion and $6.73 billion as of December 31, 2014 and December 31, 2013, respectively, which amounts approximate fair value. | |||||
Securities Borrowed and Securities Loaned | |||||
Securities borrowed and securities loaned are recorded at the amount of the cash collateral advanced or received. Securities borrowed transactions require the Company to provide counterparties with collateral, which may be in the form of cash, letters of credit or other securities. With respect to securities loaned, the Company receives collateral, which may be in the form of cash or other securities in an amount generally in excess of the fair value of the securities loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as permitted contractually. The Company does not net, in the consolidated statements of financial condition, securities borrowed and securities loaned entered into with the same counterparty. | |||||
Securities lending fees received and paid by the Company are included in interest income and interest expense, respectively, in the consolidated statements of comprehensive income. | |||||
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | |||||
Securities purchased under agreements to resell, which are reported as collateralized financing transactions, are recorded at contract value, which approximates fair value. To ensure that the fair value of the underlying collateral remains sufficient, the collateral is valued daily with additional collateral obtained or excess collateral returned, as permitted under contractual provisions. The Company does not net, in the consolidated statements of financial condition, securities purchased under agreements to resell transactions and securities sold under agreements to repurchase transactions entered into with the same counterparty. | |||||
Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased, at Fair Value | |||||
Financial instrument transactions are accounted for on a trade date basis. Financial instruments owned and financial instruments sold, but not yet purchased are stated at fair value based upon quoted market prices. All firm‑owned financial instruments pledged to counterparties where the counterparty has the right, by contract or custom, to sell or repledge the financial instruments are reported as financial instruments owned and pledged as collateral in the consolidated statements of financial condition. | |||||
The Company also enters into currency forward contracts. These transactions, which are also accounted for on a trade date basis, are agreements to exchange a fixed amount of one currency for a specified amount of a second currency at completion of the currency forward contract term. Unrealized mark‑to‑market gains and losses on currency forward contracts are included in financial instruments owned, at fair value or financial instruments sold, but not yet purchased, at fair value in the consolidated statements of financial condition. | |||||
Customer Receivables and Payables | |||||
Customer securities transactions are recorded on a settlement date basis and customer commodities transactions are recorded on a trade date basis. Receivables from and payables to customers include amounts due on cash and margin transactions, including futures contracts transacted on behalf of customers. Securities owned by customers, including those that collateralize margin loans or other similar transactions, are not reported in the consolidated statements of financial condition. Amounts receivable from customers that are determined by management to be uncollectible are expensed and included in general and administrative expense in the consolidated statements of comprehensive income. | |||||
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | |||||
Receivables from and payables to brokers, dealers and clearing organizations include net receivables and payables from unsettled trades, including amounts related to futures and options on futures contracts executed on behalf of customers, amounts receivable for securities not delivered by the Company to the purchaser by the settlement date (“fails to deliver”) and cash margin deposits. Payables to brokers, dealers and clearing organizations also include amounts payable for securities not received by the Company from a seller by the settlement date (“fails to receive”). | |||||
Investments | |||||
The Company makes certain strategic investments related to its business and accounts for these investments under the cost method of accounting or under the equity method of accounting as required under FASB ASC Topic 323, “Investments - Equity Method and Joint Ventures.” Investments accounted for under the equity method, including where the investee is a limited partnership or limited liability company, are recorded at the fair value amount of the Company’s initial investment and are adjusted each period for the Company’s share of the investee’s income or loss. The Company’s share of the income or losses from equity method investments is included in other income in the consolidated statements of comprehensive income. The recorded amounts of the Company’s equity method investments, $37.3 million at December 31, 2014 ($27.5 million at December 31, 2013), which are included in other assets in the consolidated statements of financial condition, increase or decrease accordingly. Contributions paid to and distributions received from equity method investees are recorded as additions or reductions, respectively, to the respective investment balance. | |||||
The Company also holds exchange memberships and investments in equity securities of certain exchanges as required to qualify as a clearing member, and strategic investments in corporate stock that do not qualify for equity method accounting. Such investments, $30.7 million at December 31, 2014 ($27.6 million at December 31, 2013), are recorded at cost or, if an other‑than‑temporary impairment in value has occurred, at a value that reflects management’s estimate of the impairment, and are also included in other assets in the consolidated statements of financial condition. Dividends received from cost basis investments are included in other income in the consolidated statements of comprehensive income when such dividends are received. | |||||
A judgmental aspect of accounting for investments is evaluating whether an other‑than‑temporary decline in the value of an investment has occurred. The evaluation of an other‑than‑temporary impairment is dependent on specific quantitative and qualitative factors and circumstances surrounding an investment, including recurring operating losses, credit defaults and subsequent rounds of financing. The Company’s equity investments do not have readily determinable market values. All investments are reviewed for changes in circumstances or occurrence of events that suggest the Company’s investment may not be recoverable. If an unrealized loss on any investment is considered to be other‑than‑temporary, the loss is recognized in the period the determination is made. | |||||
The Company also has certain investments (which are not considered core business activities) that are accounted for at fair value (see Note 6) and included in other assets in the consolidated statements of financial condition. Gains and losses related to these investments are included in other income in the consolidated statements of comprehensive income. | |||||
Property and Equipment | |||||
Property and equipment, which is included in other assets in the consolidated statements of financial condition, consists of purchased technology hardware and software, internally developed software, leasehold improvements and office furniture and equipment. | |||||
Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Additions and improvements that extend the lives of assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Depreciation and amortization are computed using the straight‑line method. Equipment is depreciated over the estimated useful lives of the assets, while leasehold improvements are amortized over the lesser of the estimated economic useful life of the asset or the term of the lease. Computer equipment is depreciated over three to five years and office furniture and equipment are depreciated over five to seven years. Qualifying costs for internally developed software are capitalized and amortized over the expected useful life of the developed software, not to exceed three years. | |||||
Comprehensive Income and Foreign Currency Translation | |||||
The Company’s operating results are reported in the consolidated statements of comprehensive income pursuant to FASB Accounting Standards Update 2011‑05, “Comprehensive Income.” | |||||
Comprehensive income consists of two components: net income and other comprehensive income (“OCI”). OCI is comprised of revenues, expenses, gains and losses that are reported in the comprehensive income section of the statements of comprehensive income, but are excluded from reported net income. The Company’s OCI is comprised of gains and losses resulting from translating foreign currency financial statements of non-U.S. subsidiaries, net of related income taxes, where applicable. In general, the practice and intention of the Company is to reinvest the earnings of its non‑U.S. subsidiaries in those operations, therefore no tax is accrued. | |||||
The Company’s non‑U.S. domiciled subsidiaries have a functional currency that is other than the U.S. dollar. Such subsidiaries’ assets and liabilities are translated into U.S. dollars at period‑end exchange rates, and revenues and expenses are translated at average exchange rates prevailing during the period. Adjustments that result from translating amounts from a subsidiary’s functional currency to the U.S. dollar (as described above) are reported net of tax, where applicable, in accumulated OCI in the consolidated statements of financial condition. During 2013, the Company derecognized accumulated OCI of a $5.2 million loss attributable to its Brazilian subsidiary, IB Brasil Participações Ltda, which was liquidated during the year, and recognized a foreign currency translation loss, before taxes, which is included in other income in the consolidated statements of comprehensive income. | |||||
Revenue Recognition | |||||
Trading Gains | |||||
Trading gains and losses are recorded on trade date and are reported on a net basis. Trading gains and losses are comprised of changes in the fair value of financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value (i.e., unrealized gains and losses) and realized gains and losses. Included in trading gains are net gains and losses on stocks, U.S. and foreign government securities, corporate and municipal bonds, options, futures, foreign exchange and other derivative instruments. Dividends are integral to the valuation of stocks and interest is integral to the valuation of fixed income instruments. Accordingly, both dividends and interest income and expense attributable to financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value are reported on a net basis in trading gains in the consolidated statements of comprehensive income. | |||||
Commissions and Execution Fees | |||||
Commissions earned for executing and clearing transactions are accrued on a trade date basis and are reported as commissions and execution fees in the statements of comprehensive income. | |||||
Interest Income and Expense | |||||
The Company earns interest income and incurs interest expense primarily in connection with its electronic brokerage customer business and its securities lending activities, which are recorded on the accrual basis and are included in interest income and interest expense, respectively, in the consolidated statements of comprehensive income. | |||||
Foreign Currency Gains and Losses | |||||
Currency translation refers to the gains and losses resulting from foreign currency transactions. Foreign currency translation gains and losses related to the Company’s currency diversification strategy are included in other income in the consolidated statements of comprehensive income. Foreign currency translation gains and losses related to the market making core-business activities are included in trading gains in the consolidated statements of comprehensive income. Electronic brokerage foreign currency translation gains and losses, arising from currency swap transactions, are included in interest income in the consolidated statements of comprehensive income. | |||||
Income Taxes | |||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes” (“ASC Topic 740”). The Company’s income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits are based on enacted tax laws (see Note 13) and reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and numerous foreign jurisdictions. Determining income tax expense requires significant judgments and estimates. | |||||
The Company recognizes interest related to income tax matters as interest income or interest expense and penalties related to income tax matters as income tax expense. | |||||
Deferred income tax assets and liabilities arise from temporary differences between the tax and financial statements recognition of the underlying assets and liabilities. In evaluating the ability to recover deferred tax assets within the jurisdictions from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax‑planning strategies, and results of recent operations. In projecting future taxable income, historical results are adjusted for changes in accounting policies and incorporate assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax‑planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company is using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, three years of cumulative operating income (loss) are considered. Deferred income taxes have not been provided for U.S. tax liabilities or for additional foreign taxes on the unremitted earnings of foreign subsidiaries that have been indefinitely reinvested. | |||||
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across the Company’s global operations. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. The Company is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows, or financial position. | |||||
The Company recognizes that a tax benefit from an uncertain tax position only when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. A tax position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. | |||||
The Company records tax liabilities in accordance with ASC Topic 740 and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in payments that are different from the current estimates of these tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information becomes available. | |||||
Recently Issued Accounting Pronouncements | |||||
Following is a summary of recently issued FASB Accounting Standards Updates (“ASUs”) that have affected or may affect the Company’s consolidated financial statements: | |||||
Affects | Status | ||||
ASU 2013-05 | Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. | Effective for fiscal years and interim periods within those years beginning after December 15, 2013. | |||
ASU 2014-06 | Technical Corrections and Improvements Related to Glossary Terms. | Effective on issuance in March 2014. | |||
ASU 2014-08 | Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. | Effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. | |||
ASU 2014-09 | Revenue from Contracts with Customers (Topic 606) | Effective for annual periods beginning on or after December 15, 2016. | |||
ASU 2014-11 | Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. | Effective for the first interim or annual period beginning after December 15, 2014. | |||
ASU 2014-15 | Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. | Effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. | |||
Adoption of those ASUs that became effective during 2014 and 2015, prior to the issuance of the Company’s consolidated financial statements, did not have a material effect on these financial statements. | |||||
Trading_Activities_And_Related
Trading Activities And Related Risks | 12 Months Ended |
Dec. 31, 2014 | |
Trading Activities And Related Risks [Abstract] | |
Trading Activities And Related Risks | 3. Trading Activities and Related Risks |
The Company’s trading activities include providing securities market making and brokerage services. Trading activities expose the Company to market and credit risks. These risks are managed in accordance with established risk management policies and procedures. To accomplish this, management has established a risk management process that includes: | |
•a regular review of the risk management process by executive management as part of its oversight role; | |
•defined risk management policies and procedures supported by a rigorous analytic framework; and | |
•articulated risk tolerance levels as defined by executive management that are regularly reviewed to ensure that the Company’s risk‑taking is consistent with its business strategy, capital structure, and current and anticipated market conditions. | |
Market Risk | |
The Company is exposed to various market risks. Exposures to market risks arise from equity price risk, foreign currency exchange rate fluctuations and changes in interest rates. The Company seeks to mitigate market risk associated with trading inventories by employing hedging strategies that correlate rate, price and spread movements of trading inventories and related financing and hedging activities. The Company uses a combination of cash instruments and exchange traded derivatives to hedge its market exposures. The Company does not apply hedge accounting. The following discussion describes the types of market risk faced: | |
Equity Price Risk | |
Equity price risk arises from the possibility that equity security prices will fluctuate, affecting the value of equity securities and other instruments that derive their value from a particular stock, a defined basket of stocks, or a stock index. The Company is subject to equity price risk primarily in financial instruments held. The Company attempts to limit such risks by continuously reevaluating prices and by diversifying its portfolio across many different options, futures and underlying securities and avoiding concentrations of positions based on the same underlying security. | |
Currency Risk | |
Currency risk arises from the possibility that fluctuations in foreign exchange rates will impact the value of financial instruments. The Company manages this risk using spot (i.e., cash) currency transactions, currency futures contracts and currency forward contracts. As a global market maker trading on exchanges around the world in multiple currencies, the Company is exposed to foreign currency risk. The Company actively manages its currency exposure using hedging strategies that are based on a defined basket of 16 currencies internally referred to as the “GLOBAL.” These strategies minimize the fluctuation of the Company’s net worth as expressed in GLOBALs, thereby diversifying its risk in alignment with these global currencies, weighted by the Company’s view of their importance. As the Company’s financial results are reported in U.S. dollars, the change in the value of the GLOBAL as expressed in U.S. dollars affects the Company’s earnings. The impact of this currency diversification strategy in the Company’s earnings is included in other income in the consolidated statements of comprehensive income. | |
Interest Rate Risk | |
Interest rate risk arises from the possibility that changes in interest rates will affect the value of financial instruments. The Company is exposed to interest rate risk on cash and margin balances, positions carried in equity securities, options, and futures and on its debt obligations. These risks are managed through investment policies and by entering into interest rate futures contracts. | |
Credit Risk | |
The Company is exposed to risk of loss if an individual, counterparty or issuer fails to perform its obligations under contractual terms (“default risk”). Both cash instruments and derivatives expose the Company to default risk. The Company has established policies and procedures for mitigating credit risk on principal transactions, including reviewing and establishing limits for credit exposure, maintaining collateral, and continually assessing the creditworthiness of counterparties. | |
The Company’s credit risk is limited in that substantially all of the contracts entered into are settled directly at securities and commodities clearing houses and a small portion is settled through member firms and banks with substantial financial and operational resources. The Company seeks to control the risks associated with its customer margin activities by requiring customers to maintain collateral in compliance with regulatory and internal guidelines. | |
In the normal course of business, the Company executes, settles, and finances various customer securities transactions. Execution of these transactions includes the purchase and sale of securities which exposes the Company to default risk arising from the potential that customers or counterparties may fail to satisfy their obligations. In these situations, the Company may be required to purchase or sell financial instruments at unfavorable market prices to satisfy obligations to customers or counterparties. Liabilities to other brokers and dealers related to unsettled transactions (i.e., securities fails to receive) are recorded at the amount for which the securities were purchased, and are paid upon receipt of the securities from other brokers or dealers. In the case of aged securities fails to receive, the Company may purchase the underlying security in the market and seek reimbursement for any losses from the counterparty. | |
For cash management purposes, the Company enters into short‑term securities purchased under agreements to resell and securities sold under agreements to repurchase transactions (“repos”) in addition to securities borrowing and lending arrangements, all of which may result in credit exposure in the event the counterparty to a transaction is unable to fulfill its contractual obligations. Repos are collateralized by securities with a market value in excess of the obligation under the contract. Similarly, securities lending agreements are collateralized by deposits of cash or securities. The Company attempts to minimize credit risk associated with these activities by monitoring collateral values on a daily basis and requiring additional collateral to be deposited with or returned to the Company as permitted under contractual provisions. | |
Concentrations of Credit Risk | |
The Company’s exposure to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by groups of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, credit limits are established and exposure is monitored in light of changing counterparty and market conditions. As of December 31, 2014, the Company did not have any material concentrations of credit risk outside the ordinary course of business. | |
Off‑Balance Sheet Risks | |
The Company may be exposed to a risk of loss not reflected in the consolidated financial statements to settle futures and certain over‑the‑counter contracts at contracted prices, which may require repurchase or sale of the underlying products in the market at prevailing prices. Accordingly, these transactions result in off‑balance sheet risk as the Company’s cost to liquidate such contracts may exceed the amounts reported in the Company’s consolidated statements of financial condition. | |
Equity_And_Earnings_Per_Share
Equity And Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity And Earnings Per Share [Abstract] | ||||||||||
Equity And Earnings Per Share | 4. Equity and Earnings Per Share | |||||||||
In connection with IBG, Inc.’s initial public offering of Class A common stock (“IPO”) in May 2007, it purchased 10.0% of the membership interests in IBG LLC from Holdings, became the sole managing member of IBG LLC and began to consolidate IBG LLC’s financial results into its financial statements. Holdings owns all of IBG, Inc.’s Class B common stock, which has voting rights in proportion to its ownership interests in IBG LLC, approximately 85.5% as of December 31, 2014. The consolidated financial statements reflect the results of operations and financial position of IBG, Inc., including consolidation of its investment in IBG LLC and its subsidiaries. Prior to the June 6, 2012 amendment to the Exchange Agreement (described below), Holdings’ ownership interests in IBG LLC were accounted for and reported in these consolidated financial statements as ‘‘redeemable noncontrolling interests’’ (temporary equity). For periods after the Amendment, beginning with the quarter ended June 30, 2012, the noncontrolling interests in IBG LLC attributable to Holdings are reported as a component of total equity in the consolidated statements of financial condition, as described below. | ||||||||||
Recapitalization and Post‑IPO Capital Structure | ||||||||||
Immediately prior to and immediately following the consummation of the IPO, IBG, Inc., Holdings, IBG LLC and the members of IBG LLC consummated a series of transactions collectively referred to herein as the “Recapitalization.” In connection with the Recapitalization, IBG, Inc., Holdings and the historical members of IBG LLC entered into an exchange agreement, dated as of May 3, 2007 (the “Exchange Agreement”), pursuant to which the historical members of IBG LLC received membership interests in Holdings in exchange for their membership interests in IBG LLC. Additionally, IBG, Inc. became the sole managing member of IBG LLC. | ||||||||||
In connection with the consummation of the IPO, Holdings used the net proceeds to redeem 10.0% of members’ interests in Holdings in proportion to their interests. Immediately following the Recapitalization and IPO, Holdings owned approximately 90% of IBG LLC and 100% of IBG, Inc.’s Class B common stock, which has voting power in IBG, Inc. in proportion to Holdings’ ownership of IBG LLC. | ||||||||||
Since consummation of the IPO and Recapitalization, IBG, Inc.’s equity capital structure has been comprised of Class A and Class B common stock. All shares of common stock have a par value of $0.01 per share and have identical rights to earnings and dividends and in liquidation. As described previously in this Note 4, Class B common stock has voting power in IBG, Inc. proportionate to the extent of Holdings’ and IBG, Inc.’s respective ownership of IBG LLC. At December 31, 2014 and December 31, 2013, 1,000,000,000 shares of Class A common stock were authorized, of which 58,612,245 and 54,788,049 shares have been issued; and 58,473,186 and 54,664,095 shares were outstanding, respectively. Class B common stock is comprised of 100 authorized shares, of which 100 shares were issued and outstanding as of December 31, 2014 and December 31, 2013, respectively. In addition, 10,000 shares of preferred stock have been authorized, of which no shares are issued or outstanding as of December 31, 2014 and December 31, 2013, respectively. | ||||||||||
As a result of a federal income tax election made by IBG LLC applicable to the acquisition of IBG LLC member interests by IBG, Inc., the income tax basis of the assets of IBG LLC acquired by IBG, Inc. have been adjusted based on the amount paid for such interests. Deferred tax assets were recorded as of the IPO date and in connection with subsequent redemptions of Holdings member interests in exchange for common stock. These deferred tax assets are included in other assets in the Company’s consolidated statements of financial condition and are being amortized as additional deferred income tax expense over 15 years from the IPO date and from the additional redemption dates, respectively, as allowable under current tax law. As of December 31, 2014 and December 31, 2013, the unamortized balance of these deferred tax assets was $278.8 million and $294.7 million, respectively. | ||||||||||
IBG, Inc. also entered into an agreement (the “Tax Receivable Agreement”) with Holdings to pay Holdings (for the benefit of the former members of IBG LLC) 85% of the tax savings that IBG, Inc. actually realizes as the result of tax basis increases. These payables, net of payments made to Holdings, are reported as payable to affiliate in the Company’s consolidated statements of financial condition. The remaining 15% is accounted for as a permanent increase to additional paid‑in capital in the Company’s consolidated statements of financial condition. | ||||||||||
The cumulative amounts of deferred tax assets, payables to Holdings and additional paid‑in capital arising from stock offerings from the date of the IPO through December 31, 2014 were $427.1 million, $363.0 million and $64.1 million, respectively. Amounts payable under the Tax Receivable Agreement are payable to Holdings annually following the filing of IBG, Inc.’s federal income tax return. The Company has paid Holdings a cumulative total of $86.2 million through December 31, 2014 pursuant to the terms of the Tax Receivable Agreement. | ||||||||||
The Exchange Agreement, as amended June 6, 2012, provides for future redemptions of member interests and for the purchase of member interests in IBG LLC by IBG, Inc. from Holdings, which could result in IBG, Inc. acquiring the remaining member interests in IBG LLC that it does not own. On an annual basis, holders of Holdings member interests are able to request redemption of such member interests over a minimum eight (8) year period following the IPO; 12.5% annually for seven (7) years and 2.5% in the eighth year. | ||||||||||
At the time of IBG, Inc.’s IPO in 2007, three hundred sixty (360) million shares of authorized common stock were reserved for future sales and redemptions. From 2008 through 2010, Holdings redeemed 5,013,259 IBG LLC shares with a total value of $114.0 million, which redemptions were funded using cash on hand at IBG LLC. Upon cash redemption these IBG LLC shares were retired. In 2011 and 2013, respectively, IBG, Inc. issued 1,983,624 shares and 4,683,415 shares of common stock directly to Holdings in exchange for an equivalent number of shares of member interests in IBG LLC. On October 24, 2014, the Company issued 1,358,478 shares of Class A common stock (with a fair value of $35.2 million) to Holdings in exchange for membership interests in IBG LLC equal in number to such number of shares of Class A common stock issued by IBG, Inc. | ||||||||||
As a consequence of these redemption transactions, and distribution of shares to employees (see Note 12), IBG, Inc.’s interest in IBG LLC has increased to approximately 14.5%, with Holdings owning the remaining 85.5% as of December 31, 2014. The redemptions also resulted in an increase in the Holdings interest held by Thomas Peterffy and his affiliates from approximately 84.6% at the IPO to approximately 88.0% at December 31, 2014. | ||||||||||
The Exchange Agreement, as amended June 6, 2012, provides that the Company may facilitate the redemption by Holdings of interests held by its members through the issuance of shares of common stock through a public offering in exchange for the interests in IBG LLC being redeemed by Holdings. The Amendment eliminated from the Exchange Agreement an alternative funding method, which provided that upon approval by the board of directors and by agreement of IBG, Inc., IBG LLC and Holdings, redemptions could be made in cash. | ||||||||||
Subsequent to the amendment to the Exchange Agreement on June 6, 2012, the Company recorded adjustments to report Holdings’ noncontrolling interests in IBG LLC as component of total equity, reducing redeemable noncontrolling interests to zero and reversing the cumulative effect of adjustments through June 6, 2012 to redemption value previously recorded to additional paid‑in capital. The effect of these adjustments was: | ||||||||||
Adjustments | ||||||||||
as of June 6, | ||||||||||
2012 | ||||||||||
(in thousands) | ||||||||||
Redeemable noncontrolling interests | $ | -5,367,553 | ||||||||
Additional Paid in Capital | $ | 472,409 | ||||||||
Retained earnings | $ | 572,840 | ||||||||
Noncontrolling interests | $ | 4,322,304 | ||||||||
Earnings per Share | ||||||||||
For periods prior to June 6, 2012, the Company reflected measurement adjustments for non‑fair value redemption rights through application of the two‑class method of calculating earnings per share in lieu of recognizing the impact through the determination of net income attributable to common stockholders. | ||||||||||
Basic earnings per share are calculated utilizing net income available for common stockholders divided by the weighted average number of shares of Class A and Class B common stock outstanding for that period. | ||||||||||
Year-Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands, except for shares or per share amounts) | ||||||||||
Basic earnings per share | ||||||||||
Net income attributable to common stockholders | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Add net income attributable to non-fair value redemption rights | - | - | 1,108 | |||||||
Net income available for common stockholers | $ | 44,533 | $ | 37,003 | $ | 41,776 | ||||
Weighted average shares of common stock outstanding | ||||||||||
Class A | 56,492,281 | 49,742,328 | 46,814,576 | |||||||
Class B | 100 | 100 | 100 | |||||||
56,492,381 | 49,742,428 | 46,814,676 | ||||||||
Basic earnings per share | $ | 0.79 | $ | 0.74 | $ | 0.89 | ||||
Diluted earnings per share are calculated utilizing the Company’s basic net income available for common stockholders divided by diluted weighted average shares outstanding with no adjustments to net income available to common stockholders for potentially dilutive common shares. | ||||||||||
Year-Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands, except for shares or per share amounts) | ||||||||||
Diluted earnings per share | ||||||||||
Net income available for common stockholders | $ | 44,533 | $ | 37,003 | $ | 41,776 | ||||
Weighted average shares of common stock outstanding | ||||||||||
Class A | ||||||||||
Issued and outstanding | 56,492,281 | 49,742,328 | 46,814,576 | |||||||
Potentially dilutive common shares | ||||||||||
Issuable pursuant to employee incentive plans | 1,217,287 | 1,182,308 | 255,846 | |||||||
Class B | 100 | 100 | 100 | |||||||
57,709,668 | 50,924,736 | 47,070,522 | ||||||||
Diluted earnings per share | $ | 0.77 | $ | 0.73 | $ | 0.89 | ||||
Member Distributions and Stockholder Dividends | ||||||||||
During the three years ended December 31, 2014, 2013 and 2012, IBG LLC made distributions totaling $323.6 million, $162.9 million and $595.8 million, respectively, to its members, of which IBG, Inc.’s proportionate share was $45.0 million, $20.5 million and $70.6 million, respectively. The Company paid quarterly cash dividends of $0.10 per share of common stock, totaling $22.7 million, $20.2 million and $18.8 million during 2014, 2013 and 2012, respectively. In addition, in December 2012, a special dividend of $1.00 per share of common stock was also paid, totaling $47.5 million. | ||||||||||
On January 20, 2015, the Company declared a cash dividend of $0.10 per common share, payable on March 13, 2015 to stockholders of record as of February 27, 2015. | ||||||||||
Comprehensive_Income
Comprehensive Income | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Comprehensive Income Detail [Abstract] | ||||||||||
Comprehensive Income | 5. Comprehensive Income | |||||||||
The following table presents comprehensive income and earnings per share on comprehensive income (calculated using the two‑class method for periods prior to June 6, 2012). | ||||||||||
Year-Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Comprehensive income attributable to common stockholders | $ | 29,487 | $ | 34,277 | $ | 51,935 | ||||
Add net income attributable to non-fair value redemption rights | — | — | 1,108 | |||||||
Comprehensive income available for common stockholders | $ | 29,487 | $ | 34,277 | $ | 53,043 | ||||
Earnings per share on comprehensive income | ||||||||||
Basic | $ | 0.52 | $ | 0.69 | $ | 1.13 | ||||
Diluted | $ | 0.51 | $ | 0.67 | $ | 1.13 | ||||
Weighted average common shares outstanding | ||||||||||
Basic | 56,492,381 | 49,742,428 | 46,814,676 | |||||||
Diluted | 57,709,668 | 50,924,736 | 47,070,522 | |||||||
Collateralized_Transactions
Collateralized Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure Collateralized Transactions [Abstract] | |||||||||||||
Collateralized Transactions | 7. Collateralized Transactions | ||||||||||||
The Company enters into securities borrowing and lending transactions and agreements to repurchase and resell securities to finance trading inventory, to obtain securities for settlement and to earn residual interest rate spreads. In addition, the Company’s customers pledge their securities owned to collateralize margin loans. Under these transactions, the Company either receives or provides collateral, including equity, corporate debt and U.S. government securities. Under many agreements, the Company is permitted to sell or repledge securities received as collateral and use these securities to secure securities purchased under agreements to resell, enter into securities lending transactions or deliver these securities to counterparties to cover short positions. | |||||||||||||
The Company also engages in securities financing transactions with and for customers through margin lending. Customer receivables generated from margin lending activity are collateralized by customer‑owned securities held by the Company. Customers’ required margin levels and established credit limits are monitored continuously by risk management staff using automated systems. Pursuant to the Company’s policy and as enforced by such systems, customers are required to deposit additional collateral or reduce positions, when necessary to avoid automatic liquidation of their positions. | |||||||||||||
Margin loans are extended to customers on a demand basis and are not committed facilities. Factors considered in the acceptance or rejection of margin loans are the amount of the loan, the degree of leverage being employed in the customer account and an overall evaluation of the customer’s portfolio to ensure proper diversification or, in the case of concentrated positions, appropriate liquidity of the underlying collateral. Additionally, transactions relating to concentrated or restricted positions are limited or prohibited by raising the level of required margin collateral (to 100% in the extreme case). Underlying collateral for margin loans is evaluated with respect to the liquidity of the collateral positions, valuation of securities, volatility analysis and an evaluation of industry concentrations. Adherence to the Company’s collateral policies significantly limits the Company’s credit exposure to margin loans in the event of a customer’s default. Under margin lending agreements, the Company may request additional margin collateral from customers and may sell securities that have not been paid for or purchase securities sold but not delivered from customers, if necessary. At December 31, 2014 and December 31, 2013, approximately $17.05 billion and $13.60 billion, respectively, of customer margin loans were outstanding. | |||||||||||||
The following table summarizes the amounts related to collateralized transactions at December 31, 2014 and December 31, 2013: | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Permitted | Sold or | Permitted | Sold or | ||||||||||
to Repledge | Repledged | to Repledge | Repledged | ||||||||||
(in millions) | |||||||||||||
Securities lending transactions | $ | 10,907.2 | $ | 2,366.0 | $ | 9,331.9 | $ | 2,504.3 | |||||
Agreements to resell (1) | 4,259.8 | 4,259.8 | 7,116.1 | 7,099.6 | |||||||||
Customer margin assets | 14,933.0 | 5,739.8 | 11,753.3 | 4,602.9 | |||||||||
$ | 30,100.0 | $ | 12,365.6 | $ | 28,201.3 | $ | 14,206.8 | ||||||
-1 | At December 31, 2014, $3.87 billion or 91% (at December 31, 2013, $6.73 billion, or 95%), of securities acquired through agreements to resell that are shown as repledged have been deposited in a separate bank account for the exclusive benefit of customers in accordance with SEC Rule 15c3-3. | ||||||||||||
In the normal course of business, the Company pledges qualified securities with clearing organizations to satisfy daily margin and clearing fund requirements. At December 31, 2014 and December 31, 2013, the majority of the Company’s U.S. and foreign government securities owned were pledged to clearing organizations. | |||||||||||||
Financial instruments owned and pledged as collateral, including amounts pledged to affiliates, where the counterparty has the right to repledge, at December 31, 2014 and December 31, 2013 are presented in the following table: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||
Stocks | $ | 1,859.5 | $ | 1,097.8 | |||||||||
Warrants | 0.3 | 0.2 | |||||||||||
U.S. and foreign government obligations | 75.9 | 64.4 | |||||||||||
Corporate and municipal bonds | — | 1.1 | |||||||||||
$ | 1,935.7 | $ | 1,163.5 | ||||||||||
ShortTerm_Borrowings
Short-Term Borrowings | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Short-Term Borrowings [Abstract] | |||||||||||
Short-Term Borrowings | 8. Short‑Term Borrowings | ||||||||||
Short-term borrowings consist primarily of collateralized borrowing facilities with clearing banks in multiple currencies that bear interest at variable overnight rates based on interbank funds rates prevailing in the respective currencies. In addition, the Company has available secured and unsecured overnight bank loan facilities. All short-term borrowings outstanding at December 31, 2014 and 2013 were either repaid on the next business day or rolled forward and, accordingly, their carrying values approximated fair values. | |||||||||||
As of December 31, 2014 and 2013, short‑term borrowings consisted of: | |||||||||||
2014 | 2013 | ||||||||||
Weighted | Weighted | ||||||||||
Average | Average | ||||||||||
Principal | Rates | Principal | Rates | ||||||||
(in thousands) | (in thousands) | ||||||||||
Overnight borrowing facilities | $ | 33,791 | 0.50% | $ | 24,635 | 0.33% | |||||
$ | 33,791 | $ | 24,635 | ||||||||
Interest expense on short term borrowings for each of the three years ended December 31, 2014, 2013 and 2012 was $0.9 million, $0.7 million and $0.6 million, respectively. | |||||||||||
Senior_Notes_Payable
Senior Notes Payable | 12 Months Ended |
Dec. 31, 2014 | |
Senior Notes Payable [Abstract] | |
Senior Notes Payable | 9. Senior Notes Payable |
In January 2012, the Company discontinued its Senior Notes Program. All previously issued Senior Notes, $101.4 million outstanding as of December 31, 2011, were redeemed prior to June 30, 2012. | |
Other_Income
Other Income | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Income [Abstract] | ||||||||||
Other Income | 11. Other Income | |||||||||
As described in Note 2, in 2014, nearly all of the currency translation gains and losses related to the Company’s currency diversification strategy were reclassified from trading gains to other income. Prior period amounts have been reclassified to conform to the current presentation. The components of other income for the three years ended December 31, 2014, 2013 and 2012 were: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Payments for order flow | $ | 25,433 | $ | 25,701 | $ | 21,167 | ||||
Market data fees | 23,933 | 34,853 | 27,175 | |||||||
Account activity fees | 14,287 | 15,498 | 13,404 | |||||||
Exchange fee income | 1,197 | 1,930 | 4,393 | |||||||
Market maker incentives | 732 | 540 | 988 | |||||||
Losses on other investments, net | -5,286 | -1,651 | -3,373 | |||||||
Losses from currency diversification strategy, net | -185,239 | -91,577 | -29,854 | |||||||
Other, net | 14,362 | 5,861 | 9,664 | |||||||
$ | -110,581 | $ | -8,845 | $ | 43,564 | |||||
Payments for order flow are earned from various options exchanges based upon options trading volume originated by the Operating Companies. Market data fees are charged to customers based upon market data services provided. This income is largely offset by the related cost to obtain the underlying market data from third party vendors. Various exchanges pay the Company market maker incentives for its market making efforts on those exchanges. Gains and losses on other investments are generated from investments in securities that are not held for the Group’s market making operations or from securities that are subject to restrictions, and include the Company’s interests in the earnings of equity method investees and dividends received on cost‑basis investments. | ||||||||||
Employee_Incentive_Plans
Employee Incentive Plans | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Employee Incentive Plans [Abstract] | |||||||||
Employee Incentive Plans | 12. Employee Incentive Plans | ||||||||
Return on Investment Dollar Units (“ROI Dollar Units”) | |||||||||
From 1998 through January 1, 2006, IBG LLC granted all non‑member employees ROI Dollar Units, which are redeemable under the amended provisions of the plan, and in accordance with regulations issued by the Internal Revenue Service (Section 409A of the Internal Revenue Code). Upon redemption, the grantee is entitled to accumulated earnings on the face value of the certificate, but not the actual face value. For grants made in 1998 and 1999, grantees may redeem the ROI Dollar Units after vesting on the fifth anniversary of the date of their grant and prior to the tenth anniversary of the date of their grant. For grants made between January 1, 2000 and January 1, 2005, grantees must elect to redeem the ROI Dollar Units upon the fifth, seventh or tenth anniversary date. These ROI Dollar Units have vested at the fifth anniversary of the date of their grant and will continue to accumulate earnings until the elected redemption date. For grants made on or after January 1, 2006, all ROI Dollar Units vested on the fifth anniversary date of their grant and were or will be automatically redeemed. Subsequent to the IPO, no additional ROI Dollar Units have been or will be granted, and non‑cash compensation to employees will consist primarily of grants of shares of restricted common stock as described below under “2007 Stock Incentive Plan.” | |||||||||
As of December 31, 2014 and December 31, 2013, payables to employees for ROI Dollar Units were $3.1 million and $5.6 million, respectively, all of which were vested. These amounts are included in other liabilities and accrued expenses in the consolidated statements of financial condition. Compensation expense for the ROI Dollar Unit plan, included in the consolidated statements of comprehensive income was $0.3 million, $0.5 million and $0.8 million for the three years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
2007 ROI Unit Stock Plan | |||||||||
In connection with the IPO, the Company adopted the IBG, Inc. 2007 ROI Unit Stock Plan (“ROI Unit Stock Plan”). Under this plan, certain employees of IBG LLC who held ROI Dollar Units, at the employee’s option, elected to invest their ROI Dollar Unit accumulated earnings as of December 31, 2006 in shares of restricted common stock. An aggregate of 1,271,009 shares of restricted common stock (consisting of 1,250,000 shares issued under the ROI Unit Stock Plan and 21,009 shares under the 2007 Stock Incentive Plan, as described below), with a fair value at the date of grant of $38.1 million were issued to IBG LLC and held as treasury stock, to be distributed to employees in accordance with the following schedule and subject to the conditions below: | |||||||||
•10% on the date of the IPO (or on the first anniversary of the IPO, in the case of U.S. ROI Unit holders who made the above-referenced elections after December 31, 2006); and | |||||||||
•an additional 15% on each of the first six anniversaries of the date of the IPO, assuming continued employment with the Company and compliance with other applicable covenants. | |||||||||
Of the fair value at the date of grant, $17.8 million represented the accumulated ROI Dollar Unit value elected to be invested by employees in restricted common stock and such amount was accrued for as of December 31, 2006. The remainder was being ratably accrued as compensation expense by the Company from the date of the IPO over the requisite service period represented by the aforementioned distribution schedule. | |||||||||
As of December 31, 2012, compensation costs for the ROI Unit Stock Plan had been fully accrued. Compensation expense for the ROI Unit Stock Plan, net of the effect of forfeitures, included in the consolidated statements of comprehensive income was $3.6 million for the year ended December 31, 2012. As of December 31, 2014, the Company has 9,614 shares of common stock remaining to be distributed to former employees under the ROI Unit Stock Plan. | |||||||||
2007 Stock Incentive Plan | |||||||||
Under the Company’s 2007 Stock Incentive Plan (the “Stock Incentive Plan”), up to 30 million shares (20 million shares at December 31, 2013) of the Company’s common stock may be granted and issued to directors, officers, employees, contractors and consultants of the Company. The 10 million increase in shares allocated to the Stock Incentive Plan was approved by the Company’s Compensation Committee and Board of Directors in February 2014. The Board of Directors’ approval was ratified by a vote of the stockholders at the Company’s 2014 Annual Meeting held on April 24, 2014. The purpose of the Stock Incentive Plan is to promote the Company’s long‑term financial success by attracting, retaining and rewarding eligible participants. | |||||||||
As a result of the Company’s organizational structure, a description of which can be found in “Business – Our Organizational Structure” in Part I Item 1 of this annual Report Form 10-K, there is no dilutive effect upon ownership of minority stockholders of issuing shares under the Stock Incentive Plan. The issuances do not dilute the book value of the ownership of minority stockholders since the restricted stock units are granted at market value, and upon their vesting and the related issuance of shares of common stock, the ownership of the IBG, Inc. in IBG LLC, increases proportionately to the shares issued. As a result of such proportionate increase in share ownership, the dilution upon issuance of common stock is borne by IBG LLC’s majority member (i.e., noncontrolling interest), Holdings, and not by IBG, Inc. or its minority shareholders. Additionally, dilution of earnings that may take place after issuance of common stock is reflected in EPS reported in the Company’s financial statements. The EPS dilution can be neither estimated nor projected, but historically it has not been material. | |||||||||
The Stock Incentive Plan is administered by the Compensation Committee of the Company’s Board of Directors. The Compensation Committee has discretionary authority to determine the eligibility to participate in the Stock Incentive Plan and establishes the terms and conditions of the stock awards, including the number of awards granted to each participant and all other terms and conditions applicable to such awards in individual grant agreements. Awards are expected to be made primarily through grants of restricted common stock. Stock Incentive Plan awards are subject to issuance over time and may be forfeited upon the participant’s termination of employment or violation of certain applicable covenants prior to issuance, unless determined otherwise by the Compensation Committee. | |||||||||
The Stock Incentive Plan provides that, upon a change in control, the Compensation Committee may, at its discretion, fully vest any granted but not yet earned awards under the Stock Incentive Plan, or provide that any such granted but not yet earned awards will be honored or assumed, or new rights substituted by the new employer on a substantially similar basis and on terms and conditions substantially comparable to those of the Stock Incentive Plan. | |||||||||
The Company expects to continue to grant awards on or about December 31 of each year to eligible participants as part of an overall plan of equity compensation. Shares of common stock vest, and become distributable to participants in accordance with the following schedule: | |||||||||
•10% on the first vesting date, which is on or about May 9 of each year; and | |||||||||
•an additional 15% on each of the following six anniversaries of the first vesting, assuming continued employment with the Company and compliance with non-competition and other applicable covenants. | |||||||||
Awards granted to external directors vest, and are distributed, over a five‑year period (20% per year) commencing one year after the date of grant. A total of 22,996 shares have been granted to the external directors cumulatively since the plan inception. | |||||||||
Stock Incentive Plan share grants (excluding 21,009 shares issued pursuant to the ROI Unit Stock Plan described above) and the related fair values since the plan inception are presented in the table below: | |||||||||
Fair Value at | |||||||||
Date of Grant | |||||||||
Shares | ($ millions) | ||||||||
Prior periods (since inception) | 13,654,494 | $ | 251.9 | ||||||
31-Dec-12 | 3,629,960 | 50.5 | |||||||
31-Dec-13 | 1,894,046 | 46.2 | |||||||
31-Dec-14 | 1,709,968 | 48.6 | |||||||
20,888,468 | $ | 397.2 | |||||||
Estimated future grants under the Stock Incentive Plan are accrued for ratably during each year (see Note 2). In accordance with the vesting schedule, outstanding awards vest and are distributed to participants yearly on or about May 9 of each year. At the end of each year, there are no vested awards that remain undistributed. | |||||||||
Compensation expense related to the Stock Incentive Plan recognized in the consolidated statements of comprehensive income was $40.6 million, $40.3 million and $63.3 million for the three years ended December 31, 2014, 2013 and 2012, respectively. Estimated future compensation costs for unvested awards, net of forfeiture credits, at December 31, 2014 are $38.6 million. | |||||||||
The following summarizes the Stock Incentive Plan and ROI Unit Stock Plan activities for the three year period from January 1, 2012 through December 31, 2014: | |||||||||
Intrinsic Value | |||||||||
of SIP Shares | |||||||||
Stock | which Vested | ||||||||
Incentive Plan | and were | ROI Unit | |||||||
("SIP") | Distributed | Stock Plan | |||||||
Shares | ($ millions) (2) | (Shares) | |||||||
Balance, December 31, 2011 | 9,408,994 | 356,149 | |||||||
Granted | 4,845,826 | — | |||||||
Forfeited | -115,750 | -500 | |||||||
Distributed | -1,736,588 | $ | 25.1 | -186,360 | |||||
Balance, December 31, 2012 | 12,402,482 | 169,289 | |||||||
Granted | 1,894,046 | — | |||||||
Forfeited | -334,111 | -6,423 | |||||||
Distributed | -2,315,300 | $ | 36.3 | -162,866 | |||||
Balance, December 31, 2013 | 11,647,117 | — | |||||||
Granted | 1,709,968 | — | |||||||
Forfeited (1) | -535,085 | 15,518 | |||||||
Distributed | -2,445,200 | $ | 55.7 | -5,904 | |||||
Balance, December 31, 2014 | 10,376,800 | 9,614 | |||||||
-1 | ROI Unit Stock Plan number of forfeited shares related to prior years was adjusted by 15,518 shares during the period. | ||||||||
-2 | Intrinsic value of SIP shares distributed represents the compensation value reported to the participants. | ||||||||
Awards granted under the stock plans are subject to forfeiture in the event a participant ceases employment with the Company. The stock plans provide that participants who discontinue employment with the Company without cause and continue to meet the terms of the plans’ post‑employment provisions will forfeit 50% of unvested previously granted awards unless the participant is over the age of 59, in which case the participant would be eligible to receive 100% of unvested awards previously granted. Distributions of remaining awards granted on or before January 1, 2009 to former participants will occur within 90 days of the anniversary of the termination of employment date over a five (5) year vesting schedule, 12.5% in each of the first four years and 50% in the fifth year. Distributions of remaining awards granted on or after January 1, 2010 to former participants will occur over the remaining vesting schedule applicable to each grant. Through December 31, 2014, a total of 188,203 shares have been distributed under these post‑employment provisions. These distributions are included in the table above. | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Income Taxes | 13. Income Taxes | |||||||||
Income tax expense for the three years ended December 31, 2014, 2013 and 2012 differs from the U.S. federal statutory rate primarily due to the taxation treatment of income attributable to noncontrolling interests in IBG LLC. These noncontrolling interests are subject to U.S. taxation as partnerships. Accordingly, the income attributable to these noncontrolling interests is reported in the consolidated statements of comprehensive income, but the related U.S. income tax expense attributable to these noncontrolling interests is not reported by the Company as it is the obligation of the individual partners. Income tax expense is also affected by the differing effective tax rates in foreign, state and local jurisdictions where certain of the Company’s subsidiaries are subject to corporate taxation. | ||||||||||
Deferred income taxes arise primarily due to the amortization of the deferred tax assets recognized in connection with the common stock offerings (see Note 4), differences in the valuation of financial assets and liabilities, and for other temporary differences arising from the deductibility of compensation and depreciation expenses in different time periods for book and income tax return purposes. | ||||||||||
For the three years ended December 31, 2014, 2013 and 2012, the provision for income taxes consisted of: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Current | ||||||||||
Federal | $ | 720 | $ | -1,096 | $ | 1,379 | ||||
State and local | 81 | 10 | 167 | |||||||
Foreign | 28,285 | 23,041 | 10,684 | |||||||
Total current | 29,086 | 21,955 | 12,230 | |||||||
Deferred | ||||||||||
Federal | 21,323 | 17,691 | 16,765 | |||||||
State and local | 14 | -1 | 27 | |||||||
Foreign | -3,169 | -5,960 | 992 | |||||||
Total deferred | 18,168 | 11,730 | 17,784 | |||||||
$ | 47,254 | $ | 33,685 | $ | 30,014 | |||||
A reconciliation of the statutory U.S. Federal income tax rate of 35% to the Company’s effective tax rate for the three years ending December 31, 2014, 2013 and 2012 is set forth below: | ||||||||||
2014 | 2013 | 2012 | ||||||||
U.S. Statutory Tax Rate | 35.0% | 35.0% | 35.0% | |||||||
Less: rate attributable to noncontrolling interests | -28.60% | -29.50% | -30.30% | |||||||
State, local and foreign taxes, net of federal benefit | 2.9% | 2.0% | 1.0% | |||||||
9.3% | 7.5% | 5.7% | ||||||||
Significant components of the Company’s deferred tax assets (liabilities), which are respectively reported in other assets and in other liabilities and accrued expenses in the consolidated statements of financial condition, as of December 31, 2014, 2013 and 2012 were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Deferred tax assets | ||||||||||
Arising from the acquisition of interests in IBG LLC | $ | 278,842 | $ | 294,666 | $ | 281,615 | ||||
Deferred compensation | 6,236 | 8,274 | 7,309 | |||||||
Other | 7,533 | 3,028 | 1,135 | |||||||
Total deferred tax assets | 292,611 | 305,968 | 290,059 | |||||||
Deferred tax liabilities | ||||||||||
Foreign, primarily THE | 2,964 | 7,942 | 14,022 | |||||||
Other comprehensive income | -484 | -199 | 282 | |||||||
Other | 432 | 335 | — | |||||||
Total deferred tax liabilities | 2,912 | 8,078 | 14,304 | |||||||
Net deferred tax assets | $ | 289,699 | $ | 297,890 | $ | 275,755 | ||||
As of and for the years ended December 31, 2014 and 2013, the Company had no unrecognized tax and no valuation allowances on deferred tax assets were required. The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. As of December 31, 2014, the Company is no longer subject to U.S. Federal and State income tax examinations for tax years prior to 2010, and to non-U.S. income tax examinations for tax years prior to 2006. | ||||||||||
At December 31, 2014, accumulated earnings held by non‑U.S. subsidiaries totaled $1,004.5 million (at December 31, 2013 $1,072.9 million). Of this amount, approximately $393.7 million (at December 31, 2013 $422.3 million) is attributable to earnings of the Company’s foreign subsidiaries that are considered “pass‑through” entities for U.S. income tax purposes. Since the Company accounts for U.S. income taxes on these earnings on a current basis, no additional U.S. tax consequences would result from the repatriation of these earnings other than that which would be due arising from currency fluctuations between the time the earnings are reported for U.S. tax purposes and when they are remitted. With respect to certain of these subsidiaries’ accumulated earnings (approximately $293.0 million and $318.7 million as of December 31, 2014 and December 31, 2013, respectively), repatriation would result in additional foreign taxes in the form of dividend withholding tax imposed on the recipient of the distribution or dividend distribution tax imposed on the payor of the distribution. The Company has not provided for its proportionate share of these additional foreign taxes as it does not intend to repatriate these earnings in the foreseeable future. For the same reason, the Company has not provided deferred U.S. tax on cumulative translation adjustments associated with these earnings. | ||||||||||
The remainder of the accumulated earnings are attributable to non‑U.S. subsidiaries that are not considered “pass‑through” entities for U.S. tax purposes. The Company’s U.S. tax basis in the stock of most of these entities exceeds its book basis. Establishing a deferred tax asset pursuant to ASC Topic 740 is not permitted as this difference will not reverse in the foreseeable future. In the instances in which the Company’s book basis were to exceed its U.S. tax basis, no deferred tax liability would be established as the Company would consider the earnings of those entities to be indefinitely reinvested. | ||||||||||
Property_And_Equipment
Property And Equipment | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property And Equipment [Abstract] | |||||||
Property And Equipment | 14. Property and Equipment | ||||||
Property and equipment, which is included in other assets in the consolidated statements of financial condition, is comprised of leasehold improvements, computer equipment, software developed for the Company’s internal use and office furniture and equipment. At December 31, 2014 and 2013, property and equipment consisted of: | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Leasehold improvements | $ | 17,341 | $ | 21,177 | |||
Computer equipment | 8,515 | 8,157 | |||||
Internally developed software | 44,172 | 39,127 | |||||
Office furniture and equipment | 3,270 | 3,727 | |||||
73,298 | 72,188 | ||||||
Less - accumulated depreciation and amortization | -41,475 | -39,951 | |||||
Property and equipment, net | $ | 31,823 | $ | 32,237 | |||
Depreciation and amortization of $19.7 million, $19.2 million and $19.3 million for the three years ended December 31, 2014, 2013 and 2012, respectively, is included in occupancy, depreciation and amortization expenses in the consolidated statements of comprehensive income. | |||||||
Commitments_Contingencies_And_
Commitments, Contingencies And Guarantees | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments, Contingencies And Guarantees [Abstract] | ||||
Commitments, Contingencies And Guarantees | 15. Commitments, Contingencies and Guarantees | |||
In October 2013, a small number of the Company’s brokerage customers had taken relatively large positions in four stocks listed on the Singapore Exchange. In early October 2013, within a very short timeframe, these securities lost over 90% of their value. The customer accounts were margined and fell into deficits totaling $64 million prior to the time the Company took possession of their securities positions. The Company has recognized a cumulative loss of approximately $83.4 million from October 2013 through December 31, 2014. The maximum aggregate loss, which would occur if the securities’ prices all fell to zero and none of the debts were collected, would be approximately $84 million. The Company is currently pursuing the collection of the debts. The ultimate effect of this incident on the Company’s results will depend upon market conditions and the outcome of the Company’s debt collection efforts. | ||||
Litigation | ||||
The Company is subject to certain pending and threatened legal actions which arise out of the normal course of business. Litigation is inherently unpredictable, particularly in proceedings where claimants seek substantial or indeterminate damages, or which are in their early stages. The Company has not been able to quantify the actual loss or range of loss related to such legal proceedings, the manner in which they will be resolved, the timing of final resolution or the ultimate settlement. Management believes that the resolution of these actions will not have a material effect, if any, on the Company’s business or financial condition, but may have a material impact on the results of operations for a given period. | ||||
Trading Technologies Matter | ||||
On February 3, 2010, Trading Technologies International, Inc. (“Trading Technologies”) filed a complaint in the United States District Court for the Northern District of Illinois, Eastern Division, against Interactive Brokers Group, Inc., IBG LLC, Holdings, and Interactive Brokers LLC. Thereafter, Trading Technologies dismissed Interactive Brokers Group, Inc. and Holdings from the case, leaving only IBG LLC and Interactive Brokers LLC as defendants (the “Defendants”). The operative complaint, as amended, alleges that the Defendants have infringed and continue to infringe twelve U.S. patents held by Trading Technologies. Trading Technologies is seeking, among other things, unspecified damages and injunctive relief (“the Litigation”). | ||||
The Defendants filed an answer to Trading Technologies’ amended complaint, as well as related counterclaims. The defendants deny Trading Technologies’ claims, assert that the asserted patents are not infringed and are invalid, and assert several other defenses as well. | ||||
Trading Technologies also filed patent infringement lawsuits against approximately a dozen other companies in the same court, many of which are still pending. The Litigation was consolidated with the other lawsuits filed by Trading Technologies. | ||||
On June 2, 2014, the Defendants filed a motion to stay the Litigation pursuant to Section 18(b) of the America Invents Act in light of petitions for Covered Business Method (“CBM”) Review on five asserted patents filed with the United States Patent and Trademark Office (“USPTO”) by other defendants in the consolidated cases. Some of the other defendants have similarly requested a stay in light of such petitions. On December 2, 2014, the USPTO issued decisions instituting CBM Review on four of the asserted patents for which CBM petitions were filed, declining to institute CBM Review on one of the asserted patents. The District Court has not yet ruled on the motions to stay. | ||||
The case is in the early stages and discovery has yet to begin. While it is too early to predict the outcome of the matter, the Company believes it has meritorious defenses to the allegations made in the complaint and intends to defend itself vigorously against them. However, litigation is inherently uncertain and there can be no guarantee that the Company will prevail or that the litigation can be settled on favorable terms. | ||||
The Company accounts for potential losses related to litigation in accordance with FASB ASC Topic 450, “Contingencies.” As of December 31, 2014 and 2013, reserves provided for potential losses related to litigation matters were not material. | ||||
Leases | ||||
Operating Companies have non‑cancelable operating leases covering office space. All but one of the office space leases are subject to escalation clauses based on specified costs incurred by the respective landlords and contain renewal elections. Rent expense calculated on a straight‑line basis for the Company was $12.9 million, $13.3 million and $13.3 million for the three years ended December 31, 2014, 2013 and 2012, respectively, and is reported in occupancy, depreciation and amortization expenses in the consolidated statements of comprehensive income. As of December 31, 2014, the Company’s minimum annual lease commitments totaled $41.8 million, as follows: | ||||
Year | (in thousands) | |||
2015 | $ | 11,495 | ||
2016 | 11,367 | |||
2017 | 9,259 | |||
2018 | 9,115 | |||
Thereafter | 632 | |||
$ | 41,868 | |||
Guarantees | ||||
Certain of the Operating Companies provide guarantees to securities clearing houses and exchanges which meet the accounting definition of a guarantee under FASB ASC Topic 460, “Guarantees.” Under standard membership agreements, clearing house and exchange members are required to guarantee collectively the performance of other members. Under the agreements, if a member becomes unable to satisfy its obligations, other members would be required to meet shortfalls. In the opinion of management, the Operating Companies’ liability under these arrangements is not quantifiable and could exceed the cash and securities they have posted as collateral. However, the potential for these Operating Companies to be required to make payments under these arrangements is remote. Accordingly, no contingent liability is carried in the consolidated statements of financial condition for these arrangements. | ||||
In connection with its retail brokerage business, IB LLC or other electronic brokerage Operating Companies perform securities and commodities execution, clearance and settlement on behalf of their customers for whom they commit to settle trades submitted by such customers with the respective clearing houses. If a customer fails to fulfill its settlement obligations, the respective Operating Company must fulfill those settlement obligations. No contingent liability is carried on the consolidated statements of financial condition for such customer obligations. | ||||
Other Commitments | ||||
Certain clearing houses and clearing banks and firms used by certain Operating Companies are given a security interest in certain assets of those Operating Companies held by those clearing organizations. These assets may be applied to satisfy the obligations of those Operating Companies to the respective clearing organizations. | ||||
Segment_And_Geographic_Informa
Segment And Geographic Information | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment And Geographic Information [Abstract] | ||||||||||
Segment And Geographic Information | 16. Segment and Geographic Information | |||||||||
The Company has two operating business segments: electronic brokerage and market making. These segments are supported by our corporate segment which provides centralized services and executes Company’s currency diversification strategy. | ||||||||||
The Company conducts its electronic brokerage business through its Interactive Brokers subsidiaries, which provide electronic execution and clearing services to customers worldwide. The Company conducts its market making business principally through its Timber Hill subsidiaries on the world’s leading exchanges and market centers, primarily in exchange‑traded equities, equity options and equity‑index options and futures. | ||||||||||
Significant transactions and balances between the Operating Companies occur, primarily as a result of certain Operating Companies holding exchange or clearing organization memberships, which are utilized to provide execution and clearing services to affiliates. Charges for transactions between segments are designed to approximate full costs. Intra‑segment and intra‑region income and expenses and related balances have been eliminated in this segment and geographic information to reflect the external business conducted in each segment or geographical region. As described in Note 2, during the fourth quarter of 2014, the Company had taken several steps to improve the transparency of its currency diversification strategy. The Company reclassified gains and losses from its currency diversification strategy in the corporate segment instead of the market making segment. To provide meaningful comparisons, prior period amounts have been reclassified for changes in the presentation of currency translation effects. Corporate items include non‑allocated corporate income and expenses that are not attributed to segments for performance measurement, net gains and losses on positions held as part of our overall currency diversification strategy, corporate assets and eliminations. | ||||||||||
Management believes that the following information by business segment provides a reasonable representation of each segment’s contribution to total net revenues and income before income taxes for the three years ended December 31, 2014, 2013 and 2012, and to total assets as of December 31, 2014, 2013 and 2012. | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Net revenues | ||||||||||
Electronic brokerage | $ | 952.3 | $ | 818.5 | $ | 672.2 | ||||
Market making | 284.4 | 361.1 | 490.5 | |||||||
Corporate and eliminations | -193.4 | -103.4 | -32.2 | |||||||
Total net revenues | $ | 1,043.3 | $ | 1,076.2 | $ | 1,130.5 | ||||
Income before income taxes | ||||||||||
Electronic brokerage | $ | 588.5 | $ | 395.8 | $ | 343.5 | ||||
Market making | 114.1 | 158.5 | 219.5 | |||||||
Corporate and eliminations | -196.5 | -103 | -36 | |||||||
Total income before income taxes | $ | 506.1 | $ | 451.3 | $ | 527.0 | ||||
December 31, | December 31, | December 31, | ||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Segment Assets | ||||||||||
Electronic brokerage | $ | 38,280.1 | $ | 31,333.5 | $ | 25,741.5 | ||||
Market making | 12,172.4 | 12,139.5 | 12,730.8 | |||||||
Corporate and eliminations | -7,067.50 | -5,602.30 | -5,272.70 | |||||||
Total assets | $ | 43,385.0 | $ | 37,870.7 | $ | 33,199.6 | ||||
The Company operates its automated global business in the U.S. and international markets on more than 100 exchanges and market centers. A significant portion of the Company’s net revenues are generated by subsidiaries operating outside the U.S. International operations are comprised of electronic brokerage and market making activities in 25 countries in Europe, Asia and the Americas (outside the U.S.). The following table presents total net revenues and income before income taxes by geographic area for the three years ended December 31, 2014, 2013 and 2012. | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Net revenues | ||||||||||
United States | $ | 964.6 | $ | 889.0 | $ | 862.7 | ||||
International | 279.6 | 295.6 | 301.5 | |||||||
Corporate and eliminations | -200.9 | -108.4 | -33.7 | |||||||
Total net revenues | $ | 1,043.3 | $ | 1,076.2 | $ | 1,130.5 | ||||
Income before income taxes | ||||||||||
United States | $ | 619.7 | $ | 456.2 | $ | 468.9 | ||||
International | 90.3 | 98.2 | 95.4 | |||||||
Corporate and eliminations | -203.9 | -103.1 | -37.3 | |||||||
Total income before income taxes | $ | 506.1 | $ | 451.3 | $ | 527.0 | ||||
Regulatory_Requirements
Regulatory Requirements | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Regulatory Requirements [Abstract] | ||||||||||
Regulatory Requirements | 17. Regulatory Requirements | |||||||||
At December 31, 2014, aggregate excess regulatory capital for all of the Operating Companies was $3.27 billion. | ||||||||||
TH LLC and IB LLC are subject to the Uniform Net Capital Rule (Rule 15c3‑1) under the Exchange Act and the Commodities and Futures Trading Commission’s minimum financial requirements (Regulation 1.17), and THE is subject to the Swiss Financial Market Supervisory Authority eligible equity requirement. Additionally, THSHK is subject to the Hong Kong Securities Futures Commission liquid capital requirement, THA is subject to the Australian Stock Exchange liquid capital requirement, THLI is subject to the Financial Market Authority Liechtenstein eligible capital requirements, THC and IBC are subject to the Investment Industry Regulatory Organization of Canada risk adjusted capital requirement, IBUK is subject to the U.K. Financial Conduct Authority Capital Requirements Directive, IBI is subject to the National Stock Exchange of India net capital requirements and IBSJ is subject to the Japanese Financial Supervisory Agency capital requirements. The following table summarizes capital, capital requirements and excess regulatory capital. | ||||||||||
Net Capital/ | ||||||||||
Eligible Equity | Requirement | Excess | ||||||||
(in millions) | ||||||||||
IB LLC | $ | 2,333.9 | $ | 279.0 | $ | 2,054.9 | ||||
TH LLC | 374.2 | 63.6 | 310.6 | |||||||
THE | 661.7 | 205.3 | 456.4 | |||||||
Other regulated Operating Companies | 486.0 | 36.1 | 449.9 | |||||||
$ | 3,855.8 | $ | 584.0 | $ | 3,271.8 | |||||
Regulatory capital requirements could restrict the Operating Companies from expanding their business and declaring dividends if their net capital does not meet regulatory requirements. Also, certain entities within the Company are subject to other regulatory restrictions and requirements. | ||||||||||
At December 31, 2014, all of the regulated Operating Companies were in compliance with their respective regulatory capital requirements. | ||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions |
Receivable from affiliate, reported in other assets in the consolidated statement of financial conditon, represents amounts advanced to Holdings and payable to affiliate represents amounts payable to Holdings under the Tax Receivable Agreement (see Note 4). | |
Included in receivables from and payables to customers in the accompanying consolidated statements of financial condition as of December 31, 2014 and December 31, 2013 were accounts receivable from directors, officers and their affiliates of $151.9 million and $0.4 million and payables of $273.7 million and $815.5 million, respectively. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events |
As required by FASB ASC Topic 855, “Subsequent Events”, the Company has evaluated subsequent events for adjustment to or disclosure in its consolidated financial statements through the date the consolidated financial statements were issued. | |
On January 15, 2015, due to a sudden move in the value of the Swiss Franc that followed an unprecedented action by the Swiss National Bank, several of the Company's customers who held currency futures and spot positions suffered losses in excess of their deposits with the Company. The Company took immediate action to hedge its exposure to the foreign currency receivables from these customers. The Company estimates unsecured receivables, net of hedging activity, to be approximately $129 million. The Company is actively pursuing collection of the debts. The ultimate effect of this incident on the Company's results will depend upon the outcome of the Company's debt collection efforts. | |
No other recordable or disclosable events occurred. | |
***** | |
Schedule_ICondensed_Financial_
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) [Abstract] | ||||||||||
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | |||||||||
To the Board of Directors and Stockholders of | ||||||||||
Interactive Brokers Group, Inc. | ||||||||||
Greenwich, CT | ||||||||||
We have audited the consolidated financial statements of Interactive Brokers Group, Inc. and subsidiaries (the “Company”) as of December 31, 2014 and 2013, and for each of the three years in the period ended December 31, 2014, and the Company’s internal control over financial reporting as of December 31, 2014, and have issued our reports thereon dated March 2, 2015; such reports are included elsewhere in this Form 10-K. Our audits also included the financial statement schedule of the Company listed in the accompanying index at Item 15. This financial statement schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion based on our audits. In our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. | ||||||||||
/s/ Deloitte & Touche LLP | ||||||||||
New York, New York | ||||||||||
March 2, 2014 | ||||||||||
INTERACTIVE BROKERS GROUP, INC. | ||||||||||
(Parent Company Only) | ||||||||||
CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||||||
As of December 31, | ||||||||||
(in thousands, except share and per share amounts) | 2014 | 2013 | ||||||||
Assets | ||||||||||
Cash and cash equivalents | $ | 1,154 | $ | 1,164 | ||||||
Investments in subsidiaries, equity basis | 748,449 | 691,499 | ||||||||
Other assets | 294,136 | 302,919 | ||||||||
Total assets | $ | 1,043,739 | $ | 995,582 | ||||||
Liabilities and stockholders' equity | ||||||||||
Liabilities: | ||||||||||
Payable to affiliates | $ | 277,395 | $ | 287,216 | ||||||
Accrued expenses and other liabilities | 20 | 1,102 | ||||||||
277,415 | 288,318 | |||||||||
Stockholders' equity: | ||||||||||
Common stock, $0.01 par value per share: | ||||||||||
Class A – Authorized - 1,000,000,000, Issued - 58,612,245 and 54,788,049 shares, Outstanding – 58,473,186 and 54,664,095 shares at December 31, 2014 and 2013 | 586 | 548 | ||||||||
Class B – Authorized, Issued and Outstanding – 100 shares at December 31, 2014 and 2013 | — | — | ||||||||
Additional paid-in capital | 636,150 | 583,312 | ||||||||
Retained earnings | 120,670 | 98,868 | ||||||||
Accumulated other comprehensive income, net of income taxes of $651 and $936 at December 31, 2014 and 2013 | 11,982 | 27,028 | ||||||||
Treasury stock, at cost, 139,059 and 123,954 shares at December 31, 2014 and 2013 | -3,064 | -2,492 | ||||||||
Total stockholders’ equity | 766,324 | 707,264 | ||||||||
Total liabilities and stockholders' equity | $ | 1,043,739 | $ | 995,582 | ||||||
See accompanying notes to the condensed financial statements. | ||||||||||
INTERACTIVE BROKERS GROUP, INC. | ||||||||||
(Parent Company Only) | ||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||
Year ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||
Revenues – dividends, interest and other | $ | 3 | $ | 4 | $ | — | ||||
Expenses: | ||||||||||
Other | — | 51 | — | |||||||
Delaware franchise taxes | 180 | 180 | 180 | |||||||
Total expenses | 180 | 231 | 180 | |||||||
Loss before equity in income of subsidiary | -177 | -227 | -180 | |||||||
Equity in income of subsidiary, net of tax | 44,710 | 37,230 | 40,848 | |||||||
Net income | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Net income attributable to common stockholders | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Cumulative translation adjustment, net of tax | -15,046 | -2,726 | 11,267 | |||||||
Comprehensive income attributable to common stockholders | $ | 29,487 | $ | 34,277 | $ | 51,935 | ||||
See accompanying notes to the condensed financial statements. | ||||||||||
INTERACTIVE BROKERS GROUP, INC. | ||||||||||
(Parent Company Only) | ||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||
Year ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||
Equity in income of subsidiary | -44,710 | -37,230 | -40,848 | |||||||
Deferred income taxes | 21,517 | 17,565 | 17,283 | |||||||
Changes in operating assets and liabilities | -43,589 | -16,557 | -21,337 | |||||||
Net cash (used in) provided by operating activities | -22,249 | 781 | -4,234 | |||||||
Cash flows from investing activities | 44,970 | 20,496 | 70,608 | |||||||
Cash flows used in financing activities | -22,731 | -20,207 | -66,298 | |||||||
Net (decrease) increase in cash and cash equivalents | -10 | 1,070 | 76 | |||||||
Cash and cash equivalents at beginning of year | 1,164 | 94 | 18 | |||||||
Cash and cash equivalents at end of year | $ | 1,154 | $ | 1,164 | $ | 94 | ||||
Supplemental disclosures of cash flow information: | ||||||||||
Interest paid | $ | — | $ | — | $ | — | ||||
Taxes paid | $ | 5,954 | $ | 29 | $ | — | ||||
See accompanying notes to the condensed financial statements. | ||||||||||
INTERACTIVE BROKERS GROUP, INC. | ||||||||||
(Parent Company Only) | ||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | ||||||||||
(In U.S. dollars (thousands), unless otherwise noted) | ||||||||||
1. Basis of Presentation | ||||||||||
The accompanying condensed financial statements (the “Parent Company Financial Statements”) of Interactive Brokers Group, Inc. (“IBG, Inc.”), a Delaware holding company, including the notes thereto, should be read in conjunction with the consolidated financial statements of Interactive Brokers Group, Inc. and subsidiaries (the “Company”) and the notes thereto. IBG, Inc.’s primary operating asset is its ownership interest in IBG LLC, an automated global market maker and electronic broker specializing in routing orders and processing trades in securities, futures and foreign exchange instruments. | ||||||||||
The preparation of the Parent Company Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures in the condensed financial statements and accompanying notes. Actual results could differ materially from those estimates. | ||||||||||
Income Taxes | ||||||||||
Refer to Note 2 to the consolidated financial statements. | ||||||||||
2. Transactions with Affiliates | ||||||||||
As of December 31, 2014, there were no receivables from affiliates. Dividends received from IBG LLC for the three years ended December 31, 2014, 2013 and 2012 were $45.0 million, $20.5 million and $70.6 million, respectively. | ||||||||||
As of December 31, 2014 and 2013, respectively, payable to affiliates of $277.4 million and $287.2 million consisted primarily of amounts payable to Holdings under the Tax Receivable Agreement. | ||||||||||
3. Stockholders’ Equity | ||||||||||
Refer to Note 4 to the consolidated financial statements. | ||||||||||
4. Employee Stock Plans | ||||||||||
Refer to Note 12 to the consolidated financial statements. | ||||||||||
5. Commitments, Contingencies and Guarantees | ||||||||||
Refer to Note 15 to the consolidated financial statements. | ||||||||||
6. Subsequent Events | ||||||||||
As required by FASB ASC Topic, “Subsequent Events”, the Company has evaluated subsequent events for adjustment to or disclosure in its condensed financial statements through the date the condensed financial statements were issued. No recordable or disclosable events, not otherwise reported in these condensed financial statements or the notes thereto, occurred. | ||||||||||
**** | ||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Significant Accounting Policies [Abstract] | |||||
Basis Of Presentation | Basis of Presentation | ||||
These consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding financial reporting with respect to Form 10‑K. | |||||
These consolidated financial statements include the accounts of the Company and its consolidated subsidiaries and reflect all adjustments of a normal and recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the periods presented. | |||||
In connection with the Company’s currency diversification strategy, the Company’s net worth is held in a basket of 16 currencies (referred to by management as the “GLOBAL”). For the year ended December 31, 2014, the Company has improved the transparency of its currency diversification strategy results by (1) reporting nearly all translation gains and losses from this strategy as other income (previously reported as a component of trading gains) in the consolidated statements of comprehensive income, and (2) reporting these gains and losses in the corporate segment instead of the market making segment . These changes in presentation resulted in certain reclassifications to previously reported amounts. | |||||
Principles Of Consolidation, Including Noncontrolling Interests | Principles of Consolidation, including Noncontrolling Interests | ||||
The consolidated financial statements include the accounts of IBG, Inc. and its majority and wholly owned subsidiaries. As sole managing member of IBG LLC, IBG, Inc. exerts control over IBG LLC’s operations. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation”, the Company consolidates IBG LLC’s financial statements and records the interests in IBG LLC that it does not own as noncontrolling interests. | |||||
Prior to the June 6, 2012 amendment (the ‘‘Amendment’’) to the Exchange Agreement (see Note 4), the Company was required to report IBG Holdings LLC’s (‘‘Holdings’’) ownership as redeemable noncontrolling interests (i.e., temporary equity), outside of total equity. Redemption value of these redeemable noncontrolling interests was measured as the number of equivalent shares of member interests in IBG LLC owned by Holdings multiplied by the then current market price per share of the Company’s common stock. The excess of the redemption value over the book value of these interests, which did not affect net income attributable to common stockholders or cash flows, was required to be accounted for as a reduction of the Company’s stockholders’ equity. | |||||
The Company elected to recognize changes in redemption value in each reporting period immediately as they occurred as if the end of each reporting period was also the redemption date for the entire redeemable noncontrolling interest, notwithstanding that the redeemable noncontrolling interests are redeemable over a period of time pursuant to a redemption schedule (see Note 4). | |||||
For periods after the Amendment, the noncontrolling interests in IBG LLC attributable to Holdings are reported as a component of equity. | |||||
The Company’s policy is to consolidate all other entities in which it owns more than 50% unless it does not have control. All inter‑company balances and transactions have been eliminated. | |||||
Use Of Estimates | Use of Estimates | ||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in these consolidated financial statements and accompanying notes. These estimates and assumptions are based on judgment and the best available information at the time. Therefore, actual results could differ materially from those estimates. Such estimates include the allowance for doubtful accounts, valuation of certain investments, compensation accruals, current and deferred income taxes, and estimated contingency reserves. | |||||
Fair Value | Fair Value | ||||
Substantially all of the Company’s assets and liabilities, including financial instruments are carried at fair value based on published market prices and are marked to market, or are assets and liabilities which are short‑term in nature and are carried at amounts that approximate fair value. | |||||
The Company applies the fair value hierarchy in accordance with FASB ASC Topic 820, “Fair Value Measurement” (“ASC Topic 820”), to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are: | |||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||
Level 2 | Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly. | ||||
Level 3 | Prices or valuations that require inputs that are both significant to fair value measurement and unobservable. | ||||
Financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value are generally classified as Level 1 of the fair value hierarchy. The Company’s Level 1 financial instruments, which are valued using quoted market prices as published by exchanges and clearing houses or otherwise broadly distributed in active markets, include active listed stocks, options, warrants and discount certificates, U.S. and foreign government securities and corporate and municipal bonds. The Company does not adjust quoted prices for financial instruments classified as Level 1 of the fair value hierarchy, even in the event that the Company may hold a large position whereby a purchase or sale could reasonably impact quoted prices. | |||||
Currency forward contracts are valued using broadly distributed bank and broker prices, and are classified as Level 2 of the fair value hierarchy as such instruments are not exchange‑traded. Other securities that are not traded in active markets are also classified in Level 2 of the fair value hierarchy. Level 3 financial instruments are comprised of securities that have been delisted or otherwise are no longer tradable and have been valued by the Company based on internal estimates. | |||||
Other fair value investments and other fair value liabilities, included in other assets and other liabilities and accrued expenses, respectively, in the consolidated statements of financial condition, are comprised of listed stocks, options, foreign currency contracts and corporate and municipal bonds that the Company does not carry in its market making business. These investments are generally reported as Level 2 of the fair value hierarchy, except for unrestricted listed securities, which are classified as Level 1 of the fair value hierarchy, and delisted securities which are classified as Level 3 of the fair value hierarchy. | |||||
Earnings Per Share | Earnings Per Share | ||||
Earnings per share (“EPS”) are computed in accordance with FASB ASC Topic 260, “Earnings per Share.” Basic EPS is computed by dividing the net income available for common stockholders by the weighted average number of shares outstanding for that period. Diluted EPS is calculated by dividing the net income available for common stockholders by the diluted weighted average shares outstanding for that period. Diluted EPS includes the determinants of the basic EPS and, in addition, reflects the dilutive effect of shares of common stock estimated to be distributed in the future under the Company’s stock-based compensation plans, with no adjustments to net income available for common stockholders for dilutive potential common shares. | |||||
For periods prior to June 6, 2012 (see Note 4), the Company has determined to reflect measurement adjustments for non-fair value redemption rights through application of the two-class method of calculating earnings per share in lieu of recognizing the impact through the determination of net income attributable to common shareholders. Furthermore, the Company has elected to treat only the portion of the periodic measurement adjustments that reflect a redemption in excess of fair value as being akin to a dividend, reducing net income attributable to common stockholders for purposes of applying the two-class method. Decreases in the carrying amount of redeemable noncontrolling interests through measurement adjustments are reflected in the application of the two-class method only to the extent they represent recoveries of amounts previously accounted for by applying the two-class method. | |||||
Stock-Based Compensation | Stock‑Based Compensation | ||||
The Company follows FASB ASC Topic 718, “Compensation - Stock Compensation” (“ASC Topic 718”), to account for its stock‑based compensation plans. ASC Topic 718 requires all share‑based payments to employees to be recognized in the consolidated financial statements using a fair value‑based method. Grants, which are denominated in U.S. dollars, are communicated to employees in the year of grant, thereby establishing the fair value of each grant. The fair value of awards granted to employees are generally expensed as follows: 50% in the year of grant in recognition of plan forfeiture provisions (as described below) and the remaining 50% over the related vesting period utilizing the “graded vesting” method permitted under ASC Topic 718. In the case of “retirement eligible” employees (those employees older than 59), 100% of awards are expensed when granted. | |||||
Awards granted under stock‑based compensation plans are subject to forfeiture in the event an employee ceases employment with the Company. The plans provide that employees who discontinue employment with the Company without cause and continue to meet the terms of the plans’ post‑employment provisions will forfeit 50% of unvested previously granted awards unless the employee is over the age of 59, in which case the employee would be eligible to receive 100% of unvested awards previously granted. | |||||
Cash And Cash Equivalents | Cash and Cash Equivalents | ||||
The Company considers all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes or to meet margin requirements at clearing houses to be cash equivalents. | |||||
Cash And Securities - Segregated For Regulatory Purposes | Cash and Securities - Segregated for Regulatory Purposes | ||||
As a result of customer activities, certain Operating Companies are obligated by rules mandated by their primary regulators to segregate or set aside cash or qualified securities to satisfy such regulations, which regulations have been promulgated to protect customer assets. Securities segregated for regulatory purposes consisted of U.S. Treasury securities of $6.68 billion and $1.30 billion at December 31, 2014 and December 31, 2013, respectively, and securities purchased under agreements to resell in the amount of $3.87 billion and $6.73 billion as of December 31, 2014 and December 31, 2013, respectively, which amounts approximate fair value. | |||||
Securities Borrowed And Securities Loaned | Securities Borrowed and Securities Loaned | ||||
Securities borrowed and securities loaned are recorded at the amount of the cash collateral advanced or received. Securities borrowed transactions require the Company to provide counterparties with collateral, which may be in the form of cash, letters of credit or other securities. With respect to securities loaned, the Company receives collateral, which may be in the form of cash or other securities in an amount generally in excess of the fair value of the securities loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as permitted contractually. The Company does not net, in the consolidated statements of financial condition, securities borrowed and securities loaned entered into with the same counterparty. | |||||
Securities lending fees received and paid by the Company are included in interest income and interest expense, respectively, in the consolidated statements of comprehensive income. | |||||
Securities Purchased Under Agreements To Resell | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | ||||
Securities purchased under agreements to resell, which are reported as collateralized financing transactions, are recorded at contract value, which approximates fair value. To ensure that the fair value of the underlying collateral remains sufficient, the collateral is valued daily with additional collateral obtained or excess collateral returned, as permitted under contractual provisions. The Company does not net, in the consolidated statements of financial condition, securities purchased under agreements to resell transactions and securities sold under agreements to repurchase transactions entered into with the same counterparty. | |||||
Financial Instruments Owned And Sold But Not Yet Purchased | Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased, at Fair Value | ||||
Financial instrument transactions are accounted for on a trade date basis. Financial instruments owned and financial instruments sold, but not yet purchased are stated at fair value based upon quoted market prices. All firm‑owned financial instruments pledged to counterparties where the counterparty has the right, by contract or custom, to sell or repledge the financial instruments are reported as financial instruments owned and pledged as collateral in the consolidated statements of financial condition. | |||||
The Company also enters into currency forward contracts. These transactions, which are also accounted for on a trade date basis, are agreements to exchange a fixed amount of one currency for a specified amount of a second currency at completion of the currency forward contract term. Unrealized mark‑to‑market gains and losses on currency forward contracts are included in financial instruments owned, at fair value or financial instruments sold, but not yet purchased, at fair value in the consolidated statements of financial condition. | |||||
Customer Receivables And Payables | Customer Receivables and Payables | ||||
Customer securities transactions are recorded on a settlement date basis and customer commodities transactions are recorded on a trade date basis. Receivables from and payables to customers include amounts due on cash and margin transactions, including futures contracts transacted on behalf of customers. Securities owned by customers, including those that collateralize margin loans or other similar transactions, are not reported in the consolidated statements of financial condition. Amounts receivable from customers that are determined by management to be uncollectible are expensed and included in general and administrative expense in the consolidated statements of comprehensive income. | |||||
Receivables From And Payables To Brokers, Dealers And Clearing Organizations | Receivables from and Payables to Brokers, Dealers and Clearing Organizations | ||||
Receivables from and payables to brokers, dealers and clearing organizations include net receivables and payables from unsettled trades, including amounts related to futures and options on futures contracts executed on behalf of customers, amounts receivable for securities not delivered by the Company to the purchaser by the settlement date (“fails to deliver”) and cash margin deposits. Payables to brokers, dealers and clearing organizations also include amounts payable for securities not received by the Company from a seller by the settlement date (“fails to receive”). | |||||
Investments | Investments | ||||
The Company makes certain strategic investments related to its business and accounts for these investments under the cost method of accounting or under the equity method of accounting as required under FASB ASC Topic 323, “Investments - Equity Method and Joint Ventures.” Investments accounted for under the equity method, including where the investee is a limited partnership or limited liability company, are recorded at the fair value amount of the Company’s initial investment and are adjusted each period for the Company’s share of the investee’s income or loss. The Company’s share of the income or losses from equity method investments is included in other income in the consolidated statements of comprehensive income. The recorded amounts of the Company’s equity method investments, $37.3 million at December 31, 2014 ($27.5 million at December 31, 2013), which are included in other assets in the consolidated statements of financial condition, increase or decrease accordingly. Contributions paid to and distributions received from equity method investees are recorded as additions or reductions, respectively, to the respective investment balance. | |||||
The Company also holds exchange memberships and investments in equity securities of certain exchanges as required to qualify as a clearing member, and strategic investments in corporate stock that do not qualify for equity method accounting. Such investments, $30.7 million at December 31, 2014 ($27.6 million at December 31, 2013), are recorded at cost or, if an other‑than‑temporary impairment in value has occurred, at a value that reflects management’s estimate of the impairment, and are also included in other assets in the consolidated statements of financial condition. Dividends received from cost basis investments are included in other income in the consolidated statements of comprehensive income when such dividends are received. | |||||
A judgmental aspect of accounting for investments is evaluating whether an other‑than‑temporary decline in the value of an investment has occurred. The evaluation of an other‑than‑temporary impairment is dependent on specific quantitative and qualitative factors and circumstances surrounding an investment, including recurring operating losses, credit defaults and subsequent rounds of financing. The Company’s equity investments do not have readily determinable market values. All investments are reviewed for changes in circumstances or occurrence of events that suggest the Company’s investment may not be recoverable. If an unrealized loss on any investment is considered to be other‑than‑temporary, the loss is recognized in the period the determination is made. | |||||
The Company also has certain investments (which are not considered core business activities) that are accounted for at fair value (see Note 6) and included in other assets in the consolidated statements of financial condition. Gains and losses related to these investments are included in other income in the consolidated statements of comprehensive income. | |||||
Property And Equipment | Property and Equipment | ||||
Property and equipment, which is included in other assets in the consolidated statements of financial condition, consists of purchased technology hardware and software, internally developed software, leasehold improvements and office furniture and equipment. | |||||
Property and equipment are recorded at historical cost, less accumulated depreciation and amortization. Additions and improvements that extend the lives of assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Depreciation and amortization are computed using the straight‑line method. Equipment is depreciated over the estimated useful lives of the assets, while leasehold improvements are amortized over the lesser of the estimated economic useful life of the asset or the term of the lease. Computer equipment is depreciated over three to five years and office furniture and equipment are depreciated over five to seven years. Qualifying costs for internally developed software are capitalized and amortized over the expected useful life of the developed software, not to exceed three years. | |||||
Comprehensive Income And Foreign Currency Translation | Comprehensive Income and Foreign Currency Translation | ||||
The Company’s operating results are reported in the consolidated statements of comprehensive income pursuant to FASB Accounting Standards Update 2011‑05, “Comprehensive Income.” | |||||
Comprehensive income consists of two components: net income and other comprehensive income (“OCI”). OCI is comprised of revenues, expenses, gains and losses that are reported in the comprehensive income section of the statements of comprehensive income, but are excluded from reported net income. The Company’s OCI is comprised of gains and losses resulting from translating foreign currency financial statements of non-U.S. subsidiaries, net of related income taxes, where applicable. In general, the practice and intention of the Company is to reinvest the earnings of its non‑U.S. subsidiaries in those operations, therefore no tax is accrued. | |||||
The Company’s non‑U.S. domiciled subsidiaries have a functional currency that is other than the U.S. dollar. Such subsidiaries’ assets and liabilities are translated into U.S. dollars at period‑end exchange rates, and revenues and expenses are translated at average exchange rates prevailing during the period. Adjustments that result from translating amounts from a subsidiary’s functional currency to the U.S. dollar (as described above) are reported net of tax, where applicable, in accumulated OCI in the consolidated statements of financial condition. During 2013, the Company derecognized accumulated OCI of a $5.2 million loss attributable to its Brazilian subsidiary, IB Brasil Participações Ltda, which was liquidated during the year, and recognized a foreign currency translation loss, before taxes, which is included in other income in the consolidated statements of comprehensive income. | |||||
Revenue Recognition | Revenue Recognition | ||||
Trading Gains | |||||
Trading gains and losses are recorded on trade date and are reported on a net basis. Trading gains and losses are comprised of changes in the fair value of financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value (i.e., unrealized gains and losses) and realized gains and losses. Included in trading gains are net gains and losses on stocks, U.S. and foreign government securities, corporate and municipal bonds, options, futures, foreign exchange and other derivative instruments. Dividends are integral to the valuation of stocks and interest is integral to the valuation of fixed income instruments. Accordingly, both dividends and interest income and expense attributable to financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value are reported on a net basis in trading gains in the consolidated statements of comprehensive income. | |||||
Commissions and Execution Fees | |||||
Commissions earned for executing and clearing transactions are accrued on a trade date basis and are reported as commissions and execution fees in the statements of comprehensive income. | |||||
Interest Income and Expense | |||||
The Company earns interest income and incurs interest expense primarily in connection with its electronic brokerage customer business and its securities lending activities, which are recorded on the accrual basis and are included in interest income and interest expense, respectively, in the consolidated statements of comprehensive income. | |||||
Foreign Currency Gains and Losses | |||||
Currency translation refers to the gains and losses resulting from foreign currency transactions. Foreign currency translation gains and losses related to the Company’s currency diversification strategy are included in other income in the consolidated statements of comprehensive income. Foreign currency translation gains and losses related to the market making core-business activities are included in trading gains in the consolidated statements of comprehensive income. Electronic brokerage foreign currency translation gains and losses, arising from currency swap transactions, are included in interest income in the consolidated statements of comprehensive income. | |||||
Income Taxes | Income Taxes | ||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes” (“ASC Topic 740”). The Company’s income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits are based on enacted tax laws (see Note 13) and reflect management’s best assessment of estimated future taxes to be paid. The Company is subject to income taxes in both the U.S. and numerous foreign jurisdictions. Determining income tax expense requires significant judgments and estimates. | |||||
The Company recognizes interest related to income tax matters as interest income or interest expense and penalties related to income tax matters as income tax expense. | |||||
Deferred income tax assets and liabilities arise from temporary differences between the tax and financial statements recognition of the underlying assets and liabilities. In evaluating the ability to recover deferred tax assets within the jurisdictions from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax‑planning strategies, and results of recent operations. In projecting future taxable income, historical results are adjusted for changes in accounting policies and incorporate assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax‑planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company is using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, three years of cumulative operating income (loss) are considered. Deferred income taxes have not been provided for U.S. tax liabilities or for additional foreign taxes on the unremitted earnings of foreign subsidiaries that have been indefinitely reinvested. | |||||
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across the Company’s global operations. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. The Company is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows, or financial position. | |||||
The Company recognizes that a tax benefit from an uncertain tax position only when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. A tax position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. | |||||
The Company records tax liabilities in accordance with ASC Topic 740 and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in payments that are different from the current estimates of these tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information becomes available. | |||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | ||||
Following is a summary of recently issued FASB Accounting Standards Updates (“ASUs”) that have affected or may affect the Company’s consolidated financial statements: | |||||
Affects | Status | ||||
ASU 2013-05 | Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. | Effective for fiscal years and interim periods within those years beginning after December 15, 2013. | |||
ASU 2014-06 | Technical Corrections and Improvements Related to Glossary Terms. | Effective on issuance in March 2014. | |||
ASU 2014-08 | Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. | Effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. | |||
ASU 2014-09 | Revenue from Contracts with Customers (Topic 606) | Effective for annual periods beginning on or after December 15, 2016. | |||
ASU 2014-11 | Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. | Effective for the first interim or annual period beginning after December 15, 2014. | |||
ASU 2014-15 | Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. | Effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. | |||
Adoption of those ASUs that became effective during 2014 and 2015, prior to the issuance of the Company’s consolidated financial statements, did not have a material effect on these financial statements. | |||||
Equity_And_Earnings_Per_Share_
Equity And Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity And Earnings Per Share [Abstract] | ||||||||||
Redeemable Noncontrolling Interests Adjustments | ||||||||||
Adjustments | ||||||||||
as of June 6, | ||||||||||
2012 | ||||||||||
(in thousands) | ||||||||||
Redeemable noncontrolling interests | $ | -5,367,553 | ||||||||
Additional Paid in Capital | $ | 472,409 | ||||||||
Retained earnings | $ | 572,840 | ||||||||
Noncontrolling interests | $ | 4,322,304 | ||||||||
Earnings Per Share Basic And Diluted | Basic earnings per share are calculated utilizing net income available for common stockholders divided by the weighted average number of shares of Class A and Class B common stock outstanding for that period. | |||||||||
Year-Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands, except for shares or per share amounts) | ||||||||||
Basic earnings per share | ||||||||||
Net income attributable to common stockholders | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Add net income attributable to non-fair value redemption rights | - | - | 1,108 | |||||||
Net income available for common stockholers | $ | 44,533 | $ | 37,003 | $ | 41,776 | ||||
Weighted average shares of common stock outstanding | ||||||||||
Class A | 56,492,281 | 49,742,328 | 46,814,576 | |||||||
Class B | 100 | 100 | 100 | |||||||
56,492,381 | 49,742,428 | 46,814,676 | ||||||||
Basic earnings per share | $ | 0.79 | $ | 0.74 | $ | 0.89 | ||||
Diluted earnings per share are calculated utilizing the Company’s basic net income available for common stockholders divided by diluted weighted average shares outstanding with no adjustments to net income available to common stockholders for potentially dilutive common shares. | ||||||||||
Year-Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands, except for shares or per share amounts) | ||||||||||
Diluted earnings per share | ||||||||||
Net income available for common stockholders | $ | 44,533 | $ | 37,003 | $ | 41,776 | ||||
Weighted average shares of common stock outstanding | ||||||||||
Class A | ||||||||||
Issued and outstanding | 56,492,281 | 49,742,328 | 46,814,576 | |||||||
Potentially dilutive common shares | ||||||||||
Issuable pursuant to employee incentive plans | 1,217,287 | 1,182,308 | 255,846 | |||||||
Class B | 100 | 100 | 100 | |||||||
57,709,668 | 50,924,736 | 47,070,522 | ||||||||
Diluted earnings per share | $ | 0.77 | $ | 0.73 | $ | 0.89 | ||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Comprehensive Income Detail [Abstract] | ||||||||||
Comprehensive Income Table | ||||||||||
Year-Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Comprehensive income attributable to common stockholders | $ | 29,487 | $ | 34,277 | $ | 51,935 | ||||
Add net income attributable to non-fair value redemption rights | — | — | 1,108 | |||||||
Comprehensive income available for common stockholders | $ | 29,487 | $ | 34,277 | $ | 53,043 | ||||
Earnings per share on comprehensive income | ||||||||||
Basic | $ | 0.52 | $ | 0.69 | $ | 1.13 | ||||
Diluted | $ | 0.51 | $ | 0.67 | $ | 1.13 | ||||
Weighted average common shares outstanding | ||||||||||
Basic | 56,492,381 | 49,742,428 | 46,814,676 | |||||||
Diluted | 57,709,668 | 50,924,736 | 47,070,522 | |||||||
Financial_Assets_And_Financial
Financial Assets And Financial Liabilities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Financial Assets And Financial Liabilities [Abstract] | |||||||||||||||||
Fair Value Table | |||||||||||||||||
Financial Assets At Fair Value as of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Securities segregated for regulatory purposes | $ | 6,680,951 | $ | — | $ | — | $ | 6,680,951 | |||||||||
Financial instruments owned | |||||||||||||||||
Stocks | 2,552,641 | — | 74 | 2,552,715 | |||||||||||||
Options | 1,208,899 | — | — | 1,208,899 | |||||||||||||
Warrants and discount certificates | 72,307 | — | — | 72,307 | |||||||||||||
U.S. and foreign government securities | 97,942 | — | — | 97,942 | |||||||||||||
Currency forward contracts | — | 2,286 | — | 2,286 | |||||||||||||
Total financial instruments owned, at fair value | 3,931,789 | 2,286 | 74 | 3,934,149 | |||||||||||||
Other fair value investments, included in other assets | |||||||||||||||||
Stocks and options | 39,305 | — | 98 | 39,403 | |||||||||||||
Currency forward contracts | — | 1,269 | — | 1,269 | |||||||||||||
Corporate and municipal bonds | — | 3,233 | — | 3,233 | |||||||||||||
Total other fair value investments, included in other assets | 39,305 | 4,502 | 98 | 43,905 | |||||||||||||
Total financial assets at fair value | $ | 10,652,045 | $ | 6,788 | $ | 172 | $ | 10,659,005 | |||||||||
Financial Liabilities At Fair Value as of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial instruments sold, but not yet purchased, at fair value | |||||||||||||||||
Stocks | $ | 1,355,634 | $ | — | $ | 930 | $ | 1,356,564 | |||||||||
Options | 1,193,125 | — | — | 1,193,125 | |||||||||||||
Warrants and discount certificates | 690 | — | — | 690 | |||||||||||||
Currency forward contracts | — | 10,408 | — | 10,408 | |||||||||||||
Total financial instruments sold, but not yet purchased, at fair value | 2,549,449 | 10,408 | 930 | 2,560,787 | |||||||||||||
Other fair value liabilities, included in accounts payable, accrued expenses and other liabilities | |||||||||||||||||
Stocks and options | 7,827 | — | — | 7,827 | |||||||||||||
Total other fair value liabilities, included in accounts payable, accrued expenses and other liabilities | 7,827 | — | — | 7,827 | |||||||||||||
Total financial liabilities at fair value | $ | 2,557,276 | $ | 10,408 | $ | 930 | $ | 2,568,614 | |||||||||
Financial Assets At Fair Value as of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Securities segregated for regulatory purposes | $ | 1,300,016 | $ | — | $ | — | $ | 1,300,016 | |||||||||
Financial instruments owned | |||||||||||||||||
Stocks | 2,341,648 | — | 57 | 2,341,705 | |||||||||||||
Options | 1,880,481 | — | — | 1,880,481 | |||||||||||||
Warrants and discount certificates | 57,377 | — | — | 57,377 | |||||||||||||
U.S. and foreign government securities | 69,080 | 2,102 | — | 71,182 | |||||||||||||
Corporate and municipal bonds | 73,875 | 18,476 | — | 92,351 | |||||||||||||
Currency forward contracts | — | 5,748 | — | 5,748 | |||||||||||||
Total financial instruments owned, at fair value | 4,422,461 | 26,326 | 57 | 4,448,844 | |||||||||||||
Other fair value investments, included in other assets | |||||||||||||||||
Stocks | 25,604 | 419 | 101 | 26,124 | |||||||||||||
Corporate and municipal bonds | 1,776 | 47,896 | — | 49,672 | |||||||||||||
Mortgage backed securities | — | 26,892 | — | 26,892 | |||||||||||||
Other asset backed securities | — | 22,734 | — | 22,734 | |||||||||||||
Other | — | 5,328 | — | 5,328 | |||||||||||||
Total other fair value assets | 27,380 | 103,269 | 101 | 130,750 | |||||||||||||
Total financial assets at fair value | $ | 5,749,857 | $ | 129,595 | $ | 158 | $ | 5,879,610 | |||||||||
Financial Liabilities At Fair Value as of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial instruments sold, but not yet purchased, at fair value | |||||||||||||||||
Stocks | $ | 1,266,429 | $ | — | $ | 3 | $ | 1,266,432 | |||||||||
Options | 1,793,248 | — | — | 1,793,248 | |||||||||||||
Warrants and discount certificates | 1,215 | — | — | 1,215 | |||||||||||||
U.S. and foreign government securities | — | 4,412 | — | 4,412 | |||||||||||||
Corporate bonds | 77,936 | 9,628 | — | 87,564 | |||||||||||||
Currency forward contracts | — | 802 | — | 802 | |||||||||||||
Total financial instruments sold, but not yet purchased, at fair value | $ | 3,138,828 | $ | 14,842 | $ | 3 | $ | 3,153,673 | |||||||||
Level 3 Financial Assets And Financial Liabilities | |||||||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance, January 1, 2014 | $ | 158 | $ | 3 | |||||||||||||
Total gains or losses (realized/unrealized) - included in earnings | 77 | - | |||||||||||||||
Purchases, issuances and settlements | -63 | 927 | |||||||||||||||
Transfers in and/or out of Level 3 | - | - | |||||||||||||||
Balance, December 31, 2014 | $ | 172 | $ | 930 | |||||||||||||
Financial Assets | Financial Liabilities | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance, January 1, 2013 | $ | - | $ | - | |||||||||||||
Total gains or losses (realized/unrealized) - included in earnings | -526 | - | |||||||||||||||
Purchases, issuances and settlements | - | - | |||||||||||||||
Transfers in and/or out of Level 3 | 684 | 3 | |||||||||||||||
Balance, December 31, 2013 | $ | 158 | $ | 3 | |||||||||||||
Trading Gains From Market Making Transactions | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Equities | $ | 247,227 | $ | 285,364 | $ | 422,026 | |||||||||||
Fixed income | 20,615 | 24,485 | 37,567 | ||||||||||||||
Foreign exchange | -6,695 | 21,269 | 6,496 | ||||||||||||||
Commodities | — | 115 | -116 | ||||||||||||||
Total trading gains, net | $ | 261,147 | $ | 331,233 | $ | 465,973 | |||||||||||
Financial Assets and Liabilities Not Measured at Fair Value | 31-Dec-14 | ||||||||||||||||
Carrying | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||
Value | Value | ||||||||||||||||
Financial assets, not measured at fair value | |||||||||||||||||
Cash and cash equivalents | $ | 1,269,317 | $ | 1,269,317 | $ | 1,269,317 | $ | - | $ | - | |||||||
Cash and securities segregated for regulatory purposes | 8,722,560 | 8,722,560 | 4,849,257 | 3,873,303 | - | ||||||||||||
Securities borrowed | 3,659,766 | 3,659,766 | - | 3,659,766 | - | ||||||||||||
Securities purchased under agreements to resell | 386,221 | 386,221 | - | 386,221 | - | ||||||||||||
Customer receivables | 17,051,452 | 17,051,452 | - | 17,051,452 | |||||||||||||
Receivables from broker, dealers, and clearing organizations | 1,131,177 | 1,131,177 | - | 1,131,177 | - | ||||||||||||
Interest receivable | 36,785 | 36,785 | - | 36,785 | - | ||||||||||||
Other assets | 29,547 | 55,078 | - | 55,078 | - | ||||||||||||
Total financial assets, not measured at fair value | $ | 32,286,825 | $ | 32,312,356 | $ | 6,118,574 | $ | 26,193,782 | $ | — | |||||||
Financial liabilities, not measured at fair value | |||||||||||||||||
Securities loaned | $ | 3,199,106 | $ | 3,199,106 | $ | - | $ | 3,199,106 | $ | - | |||||||
Short-term borrowings | 33,791 | 33,791 | - | 33,791 | - | ||||||||||||
Customer payables | 31,795,853 | 31,795,853 | - | 31,795,853 | - | ||||||||||||
Payables to brokers, dealers and clearing organizations | 234,098 | 234,098 | - | 234,098 | - | ||||||||||||
Interest payable | 3,962 | 3,962 | - | 3,962 | - | ||||||||||||
Total financial liabilities, not measured at fair value | $ | 35,266,810 | $ | 35,266,810 | $ | — | $ | 35,266,810 | $ | — | |||||||
31-Dec-13 | |||||||||||||||||
Carrying | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||
Value | Value | ||||||||||||||||
Financial assets, not measured at fair value | |||||||||||||||||
Cash and cash equivalents | $ | 1,213,241 | $ | 1,213,241 | $ | 1,213,241 | $ | - | $ | - | |||||||
Cash and securities segregated for regulatory purposes | 12,691,695 | 12,691,695 | 5,957,517 | 6,734,178 | - | ||||||||||||
Securities borrowed | 2,751,501 | 2,751,501 | - | 2,751,501 | - | ||||||||||||
Securities purchased under agreements to resell | 386,316 | 386,316 | - | 386,316 | - | ||||||||||||
Customer receivables | 13,596,650 | 13,596,650 | - | 13,596,650 | |||||||||||||
Receivables from broker, dealers, and clearing organizations | 858,189 | 858,189 | - | 858,189 | - | ||||||||||||
Interest receivable | 26,489 | 26,489 | - | 26,489 | - | ||||||||||||
Other assets | 26,942 | 49,610 | - | 49,610 | - | ||||||||||||
Total financial assets, not measured at fair value | $ | 31,551,023 | $ | 31,573,691 | $ | 7,170,758 | $ | 24,402,933 | $ | — | |||||||
Financial liabilities, not measured at fair value | |||||||||||||||||
Securities loaned | $ | 2,563,653 | $ | 2,563,653 | $ | - | $ | 2,563,653 | $ | - | |||||||
Short-term borrowings | 24,635 | 24,635 | - | 24,635 | - | ||||||||||||
Customer payables | 26,319,420 | 26,319,420 | - | 26,319,420 | - | ||||||||||||
Payables to brokers, dealers and clearing organizations | 330,956 | 330,956 | - | 330,956 | - | ||||||||||||
Interest payable | 2,969 | 2,969 | - | 2,969 | - | ||||||||||||
Total financial liabilities, not measured at fair value | $ | 29,241,633 | $ | 29,241,633 | $ | — | $ | 29,241,633 | $ | — | |||||||
Netting Of Financial Assets And Financial Liabilities | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Amounts | Net Amounts | Amounts Not Offset | |||||||||||||||
Offset in the | Presented in | in the Consolidated | |||||||||||||||
Consolidated | the Consolidated | Statement of | |||||||||||||||
Statement of | Statement of | Financial Condition | |||||||||||||||
Gross Amounts | Financial | Financial | Cash or Financial | ||||||||||||||
of Recognized | Condition | Condition | Instruments | Net Exposure | |||||||||||||
(in millions) | |||||||||||||||||
Offsetting of Financial Assets | |||||||||||||||||
Securities segregated for regulatory purposes—purchased under agreements to resell | $ | 3,873.3 | 1 | $ | — | $ | 3,873.3 | $ | -3,873.30 | $ | — | ||||||
Securities borrowed | 3,659.8 | — | 3,659.8 | -3,564.40 | 95.4 | ||||||||||||
Securities purchased under agreements to resell | 386.2 | — | 386.2 | -386.2 | — | ||||||||||||
Financial Instruments owned, at fair value | |||||||||||||||||
Options | 1,208.9 | — | 1,208.9 | -1,146.60 | 62.3 | ||||||||||||
Warrants and discount certificates | 72.3 | — | 72.3 | -0.7 | 71.6 | ||||||||||||
Currency forward contracts | 2.3 | — | 2.3 | — | 2.3 | ||||||||||||
Total | $ | 9,202.8 | $ | — | $ | 9,202.8 | $ | -8,971.20 | $ | 231.6 | |||||||
(in millions) | |||||||||||||||||
Offsetting of Financial Liabilities | |||||||||||||||||
Securities loaned | $ | 3,199.1 | $ | — | $ | 3,199.1 | $ | -3,183.50 | $ | 15.6 | |||||||
Financial instruments sold, but not yet purchased, at fair value | |||||||||||||||||
Options | 1,193.1 | — | 1,193.1 | -1,146.60 | 46.5 | ||||||||||||
Warrants and discount certificates | 0.7 | — | 0.7 | -0.7 | — | ||||||||||||
Currency forward contracts | 10.4 | — | 10.4 | — | 10.4 | ||||||||||||
Total | $ | 4,403.3 | $ | — | $ | 4,403.3 | $ | -4,330.80 | $ | 72.5 | |||||||
31-Dec-13 | |||||||||||||||||
Amounts | Net Amounts | Amounts Not Offset | |||||||||||||||
Offset in the | Presented in | in the Consolidated | |||||||||||||||
Consolidated | the Consolidated | Statement of | |||||||||||||||
Statement of | Statement of | Financial Condition | |||||||||||||||
Gross Amounts | Financial | Financial | Cash or Financial | ||||||||||||||
of Recognized | Condition | Condition | Instruments | Net Exposure | |||||||||||||
(in millions) | |||||||||||||||||
Offsetting of Financial Assets | |||||||||||||||||
Securities segregated for regulatory purposes — purchased under agreements to resell | $ | 6,734.2 | 1 | $ | — | $ | 6,734.2 | $ | -6,734.20 | $ | — | ||||||
Securities borrowed | 2,751.5 | — | 2,751.5 | -2,694.60 | 56.9 | ||||||||||||
Securities purchased under agreements to resell | 386.3 | — | 386.3 | -386.3 | — | ||||||||||||
Financial Instruments owned, at fair value | |||||||||||||||||
Options | 1,880.5 | — | 1,880.5 | -1,652.80 | 227.7 | ||||||||||||
Warrants and discount certificates | 57.4 | — | 57.4 | -1.2 | 56.2 | ||||||||||||
Currency forward contracts | 5.7 | — | 5.7 | — | 5.7 | ||||||||||||
Total | $ | 11,815.6 | $ | — | $ | 11,815.6 | $ | -11,469.10 | $ | 346.5 | |||||||
(in millions) | |||||||||||||||||
Offsetting of Financial Liabilities | |||||||||||||||||
Securities loaned | $ | 2,563.7 | $ | — | $ | 2,563.7 | $ | -2,544.60 | $ | 19.1 | |||||||
Financial instruments sold, but not yet purchased, at fair value | |||||||||||||||||
Options | 1,793.2 | — | 1,793.2 | -1,652.80 | 140.4 | ||||||||||||
Warrants and discount certificates | 1.2 | — | 1.2 | -1.2 | — | ||||||||||||
Currency forward contracts | 0.8 | — | 0.8 | — | 0.8 | ||||||||||||
Total | $ | 4,358.9 | $ | — | $ | 4,358.9 | $ | -4,198.60 | $ | 160.3 | |||||||
As of December 31, 2014 and December 31, 2013, the Company had $3.87 billion and $6.73 billion, respectively, of securities purchased under agreements to resell that were segregated to satisfy regulatory requirements. These securities are included in “Cash and securities—segregated for regulatory purposes” in the consolidated statements of financial condition. | |||||||||||||||||
Collateralized_Transactions_Ta
Collateralized Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure Collateralized Transactions [Abstract] | |||||||||||||
Amounts Related To Collateralized Transactions | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Permitted | Sold or | Permitted | Sold or | ||||||||||
to Repledge | Repledged | to Repledge | Repledged | ||||||||||
(in millions) | |||||||||||||
Securities lending transactions | $ | 10,907.2 | $ | 2,366.0 | $ | 9,331.9 | $ | 2,504.3 | |||||
Agreements to resell (1) | 4,259.8 | 4,259.8 | 7,116.1 | 7,099.6 | |||||||||
Customer margin assets | 14,933.0 | 5,739.8 | 11,753.3 | 4,602.9 | |||||||||
$ | 30,100.0 | $ | 12,365.6 | $ | 28,201.3 | $ | 14,206.8 | ||||||
-1 | At December 31, 2014, $3.87 billion or 91% (at December 31, 2013, $6.73 billion, or 95%), of securities acquired through agreements to resell that are shown as repledged have been deposited in a separate bank account for the exclusive benefit of customers in accordance with SEC Rule 15c3-3. | ||||||||||||
Financial Instruments Owned And Pledged Where The Counterparty Has The Right To Repledge | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||
Stocks | $ | 1,859.5 | $ | 1,097.8 | |||||||||
Warrants | 0.3 | 0.2 | |||||||||||
U.S. and foreign government obligations | 75.9 | 64.4 | |||||||||||
Corporate and municipal bonds | — | 1.1 | |||||||||||
$ | 1,935.7 | $ | 1,163.5 | ||||||||||
ShortTerm_Borrowings_Tables
Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Short-Term Borrowings [Abstract] | |||||||||||
Schedule Of Short-term Borrowings | |||||||||||
2014 | 2013 | ||||||||||
Weighted | Weighted | ||||||||||
Average | Average | ||||||||||
Principal | Rates | Principal | Rates | ||||||||
(in thousands) | (in thousands) | ||||||||||
Overnight borrowing facilities | $ | 33,791 | 0.50% | $ | 24,635 | 0.33% | |||||
$ | 33,791 | $ | 24,635 | ||||||||
Other_Income_Tables
Other Income (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Income [Abstract] | ||||||||||
Schedule Of Components Of Other Income | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Payments for order flow | $ | 25,433 | $ | 25,701 | $ | 21,167 | ||||
Market data fees | 23,933 | 34,853 | 27,175 | |||||||
Account activity fees | 14,287 | 15,498 | 13,404 | |||||||
Exchange fee income | 1,197 | 1,930 | 4,393 | |||||||
Market maker incentives | 732 | 540 | 988 | |||||||
Losses on other investments, net | -5,286 | -1,651 | -3,373 | |||||||
Losses from currency diversification strategy, net | -185,239 | -91,577 | -29,854 | |||||||
Other, net | 14,362 | 5,861 | 9,664 | |||||||
$ | -110,581 | $ | -8,845 | $ | 43,564 | |||||
Employee_Incentive_Plans_Table
Employee Incentive Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Employee Incentive Plans [Abstract] | |||||||||
Share Grants And Fair Value | |||||||||
Fair Value at | |||||||||
Date of Grant | |||||||||
Shares | ($ millions) | ||||||||
Prior periods (since inception) | 13,654,494 | $ | 251.9 | ||||||
31-Dec-12 | 3,629,960 | 50.5 | |||||||
31-Dec-13 | 1,894,046 | 46.2 | |||||||
31-Dec-14 | 1,709,968 | 48.6 | |||||||
20,888,468 | $ | 397.2 | |||||||
2007 Stock Incentive Plan, ROI Summary | |||||||||
Intrinsic Value | |||||||||
of SIP Shares | |||||||||
Stock | which Vested | ||||||||
Incentive Plan | and were | ROI Unit | |||||||
("SIP") | Distributed | Stock Plan | |||||||
Shares | ($ millions) (2) | (Shares) | |||||||
Balance, December 31, 2011 | 9,408,994 | 356,149 | |||||||
Granted | 4,845,826 | — | |||||||
Forfeited | -115,750 | -500 | |||||||
Distributed | -1,736,588 | $ | 25.1 | -186,360 | |||||
Balance, December 31, 2012 | 12,402,482 | 169,289 | |||||||
Granted | 1,894,046 | — | |||||||
Forfeited | -334,111 | -6,423 | |||||||
Distributed | -2,315,300 | $ | 36.3 | -162,866 | |||||
Balance, December 31, 2013 | 11,647,117 | — | |||||||
Granted | 1,709,968 | — | |||||||
Forfeited (1) | -535,085 | 15,518 | |||||||
Distributed | -2,445,200 | $ | 55.7 | -5,904 | |||||
Balance, December 31, 2014 | 10,376,800 | 9,614 | |||||||
-1 | ROI Unit Stock Plan number of forfeited shares related to prior years was adjusted by 15,518 shares during the period. | ||||||||
-2 | Intrinsic value of SIP shares distributed represents the compensation value reported to the participants. | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Schedule Of The Provision For Income Taxes | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Current | ||||||||||
Federal | $ | 720 | $ | -1,096 | $ | 1,379 | ||||
State and local | 81 | 10 | 167 | |||||||
Foreign | 28,285 | 23,041 | 10,684 | |||||||
Total current | 29,086 | 21,955 | 12,230 | |||||||
Deferred | ||||||||||
Federal | 21,323 | 17,691 | 16,765 | |||||||
State and local | 14 | -1 | 27 | |||||||
Foreign | -3,169 | -5,960 | 992 | |||||||
Total deferred | 18,168 | 11,730 | 17,784 | |||||||
$ | 47,254 | $ | 33,685 | $ | 30,014 | |||||
Reconciliation Of The Statutory U.S. Federal Income Tax Rate Of 35% To The Company's Effective Tax Rate | ||||||||||
2014 | 2013 | 2012 | ||||||||
U.S. Statutory Tax Rate | 35.0% | 35.0% | 35.0% | |||||||
Less: rate attributable to noncontrolling interests | -28.60% | -29.50% | -30.30% | |||||||
State, local and foreign taxes, net of federal benefit | 2.9% | 2.0% | 1.0% | |||||||
9.3% | 7.5% | 5.7% | ||||||||
Significant Components Of The Company's Deferred Tax Assets (Liabilities) | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Deferred tax assets | ||||||||||
Arising from the acquisition of interests in IBG LLC | $ | 278,842 | $ | 294,666 | $ | 281,615 | ||||
Deferred compensation | 6,236 | 8,274 | 7,309 | |||||||
Other | 7,533 | 3,028 | 1,135 | |||||||
Total deferred tax assets | 292,611 | 305,968 | 290,059 | |||||||
Deferred tax liabilities | ||||||||||
Foreign, primarily THE | 2,964 | 7,942 | 14,022 | |||||||
Other comprehensive income | -484 | -199 | 282 | |||||||
Other | 432 | 335 | — | |||||||
Total deferred tax liabilities | 2,912 | 8,078 | 14,304 | |||||||
Net deferred tax assets | $ | 289,699 | $ | 297,890 | $ | 275,755 | ||||
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property And Equipment [Abstract] | |||||||
Property And Equipment | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Leasehold improvements | $ | 17,341 | $ | 21,177 | |||
Computer equipment | 8,515 | 8,157 | |||||
Internally developed software | 44,172 | 39,127 | |||||
Office furniture and equipment | 3,270 | 3,727 | |||||
73,298 | 72,188 | ||||||
Less - accumulated depreciation and amortization | -41,475 | -39,951 | |||||
Property and equipment, net | $ | 31,823 | $ | 32,237 | |||
Commitments_Contingencies_And_1
Commitments, Contingencies And Guarantees (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments, Contingencies And Guarantees [Abstract] | ||||
Minimum Annual Lease Commitments | ||||
Year | (in thousands) | |||
2015 | $ | 11,495 | ||
2016 | 11,367 | |||
2017 | 9,259 | |||
2018 | 9,115 | |||
Thereafter | 632 | |||
$ | 41,868 | |||
Segment_And_Geographic_Informa1
Segment And Geographic Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment And Geographic Information [Abstract] | ||||||||||
Segment And Geographic Information | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Net revenues | ||||||||||
Electronic brokerage | $ | 952.3 | $ | 818.5 | $ | 672.2 | ||||
Market making | 284.4 | 361.1 | 490.5 | |||||||
Corporate and eliminations | -193.4 | -103.4 | -32.2 | |||||||
Total net revenues | $ | 1,043.3 | $ | 1,076.2 | $ | 1,130.5 | ||||
Income before income taxes | ||||||||||
Electronic brokerage | $ | 588.5 | $ | 395.8 | $ | 343.5 | ||||
Market making | 114.1 | 158.5 | 219.5 | |||||||
Corporate and eliminations | -196.5 | -103 | -36 | |||||||
Total income before income taxes | $ | 506.1 | $ | 451.3 | $ | 527.0 | ||||
December 31, | December 31, | December 31, | ||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Segment Assets | ||||||||||
Electronic brokerage | $ | 38,280.1 | $ | 31,333.5 | $ | 25,741.5 | ||||
Market making | 12,172.4 | 12,139.5 | 12,730.8 | |||||||
Corporate and eliminations | -7,067.50 | -5,602.30 | -5,272.70 | |||||||
Total assets | $ | 43,385.0 | $ | 37,870.7 | $ | 33,199.6 | ||||
Schedule Of Total Net Revenues And Income Before Income Taxes By Geographic Area | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Net revenues | ||||||||||
United States | $ | 964.6 | $ | 889.0 | $ | 862.7 | ||||
International | 279.6 | 295.6 | 301.5 | |||||||
Corporate and eliminations | -200.9 | -108.4 | -33.7 | |||||||
Total net revenues | $ | 1,043.3 | $ | 1,076.2 | $ | 1,130.5 | ||||
Income before income taxes | ||||||||||
United States | $ | 619.7 | $ | 456.2 | $ | 468.9 | ||||
International | 90.3 | 98.2 | 95.4 | |||||||
Corporate and eliminations | -203.9 | -103.1 | -37.3 | |||||||
Total income before income taxes | $ | 506.1 | $ | 451.3 | $ | 527.0 | ||||
Regulatory_Requirements_Tables
Regulatory Requirements (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Regulatory Requirements [Abstract] | ||||||||||
Summary Of Capital, Capital Requirements And Excess Capital | ||||||||||
Net Capital/ | ||||||||||
Eligible Equity | Requirement | Excess | ||||||||
(in millions) | ||||||||||
IB LLC | $ | 2,333.9 | $ | 279.0 | $ | 2,054.9 | ||||
TH LLC | 374.2 | 63.6 | 310.6 | |||||||
THE | 661.7 | 205.3 | 456.4 | |||||||
Other regulated Operating Companies | 486.0 | 36.1 | 449.9 | |||||||
$ | 3,855.8 | $ | 584.0 | $ | 3,271.8 | |||||
Schedule_ICondensed_Financial_1
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Statements Of Comprehensive Income (Parent Company Only) | ||||||||||
INTERACTIVE BROKERS GROUP, INC. | ||||||||||
(Parent Company Only) | ||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||
Year ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||
Revenues – dividends, interest and other | $ | 3 | $ | 4 | $ | — | ||||
Expenses: | ||||||||||
Other | — | 51 | — | |||||||
Delaware franchise taxes | 180 | 180 | 180 | |||||||
Total expenses | 180 | 231 | 180 | |||||||
Loss before equity in income of subsidiary | -177 | -227 | -180 | |||||||
Equity in income of subsidiary, net of tax | 44,710 | 37,230 | 40,848 | |||||||
Net income | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Net income attributable to common stockholders | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Cumulative translation adjustment, net of tax | -15,046 | -2,726 | 11,267 | |||||||
Comprehensive income attributable to common stockholders | $ | 29,487 | $ | 34,277 | $ | 51,935 | ||||
Condensed Statements Of Cash Flows (Parent Company Only) | ||||||||||
INTERACTIVE BROKERS GROUP, INC. | ||||||||||
(Parent Company Only) | ||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||
Year ended December 31, | ||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 44,533 | $ | 37,003 | $ | 40,668 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||
Equity in income of subsidiary | -44,710 | -37,230 | -40,848 | |||||||
Deferred income taxes | 21,517 | 17,565 | 17,283 | |||||||
Changes in operating assets and liabilities | -43,589 | -16,557 | -21,337 | |||||||
Net cash (used in) provided by operating activities | -22,249 | 781 | -4,234 | |||||||
Cash flows from investing activities | 44,970 | 20,496 | 70,608 | |||||||
Cash flows used in financing activities | -22,731 | -20,207 | -66,298 | |||||||
Net (decrease) increase in cash and cash equivalents | -10 | 1,070 | 76 | |||||||
Cash and cash equivalents at beginning of year | 1,164 | 94 | 18 | |||||||
Cash and cash equivalents at end of year | $ | 1,154 | $ | 1,164 | $ | 94 | ||||
Supplemental disclosures of cash flow information: | ||||||||||
Interest paid | $ | — | $ | — | $ | — | ||||
Taxes paid | $ | 5,954 | $ | 29 | $ | — | ||||
Parent Company [Member] | ||||||||||
Condensed Statements Of Financial Condition (Parent Company Only) | ||||||||||
INTERACTIVE BROKERS GROUP, INC. | ||||||||||
(Parent Company Only) | ||||||||||
CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||||||
As of December 31, | ||||||||||
(in thousands, except share and per share amounts) | 2014 | 2013 | ||||||||
Assets | ||||||||||
Cash and cash equivalents | $ | 1,154 | $ | 1,164 | ||||||
Investments in subsidiaries, equity basis | 748,449 | 691,499 | ||||||||
Other assets | 294,136 | 302,919 | ||||||||
Total assets | $ | 1,043,739 | $ | 995,582 | ||||||
Liabilities and stockholders' equity | ||||||||||
Liabilities: | ||||||||||
Payable to affiliates | $ | 277,395 | $ | 287,216 | ||||||
Accrued expenses and other liabilities | 20 | 1,102 | ||||||||
277,415 | 288,318 | |||||||||
Stockholders' equity: | ||||||||||
Common stock, $0.01 par value per share: | ||||||||||
Class A – Authorized - 1,000,000,000, Issued - 58,612,245 and 54,788,049 shares, Outstanding – 58,473,186 and 54,664,095 shares at December 31, 2014 and 2013 | 586 | 548 | ||||||||
Class B – Authorized, Issued and Outstanding – 100 shares at December 31, 2014 and 2013 | — | — | ||||||||
Additional paid-in capital | 636,150 | 583,312 | ||||||||
Retained earnings | 120,670 | 98,868 | ||||||||
Accumulated other comprehensive income, net of income taxes of $651 and $936 at December 31, 2014 and 2013 | 11,982 | 27,028 | ||||||||
Treasury stock, at cost, 139,059 and 123,954 shares at December 31, 2014 and 2013 | -3,064 | -2,492 | ||||||||
Total stockholders’ equity | 766,324 | 707,264 | ||||||||
Total liabilities and stockholders' equity | $ | 1,043,739 | $ | 995,582 | ||||||
Recovered_Sheet1
Organization and Nature of Business (Details) | 12 Months Ended | |
Dec. 31, 2014 | 3-May-07 | |
segment | ||
employee | ||
Organization And Nature Of Business [Abstract] | ||
IBG Inc. ownership % of IBG LLC | 14.50% | 10.00% |
Number of employees | 960 | |
Number of operating segments | 2 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | 3-May-07 | |
SIP expense - Year of grant | 50.00% | ||
SIP expense - Remaining vesting period | 50.00% | ||
SIP expense - Employees over 59 in year of grant | 100.00% | ||
Percent of shares forfeited post employment | 50.00% | ||
Over 59 percent of shares eligible | 100.00% | ||
U.S. Treasury Securities | $6,680,000,000 | $1,300,000,000 | |
Securities Purchased Under Agreement to Resell Segregated for Regulatory Purposes | 3,870,000,000 | 6,730,000,000 | |
Equity method investments | 37,300,000 | 27,500,000 | |
Cost method investments | 30,700,000 | 27,600,000 | |
Property and equipment useful lives, description | Computer equipment is depreciated over three to five years and office furniture and equipment are depreciated over five to seven years. Qualifying costs for internally developed software are capitalized and amortized over the expected useful life of the developed software, not to exceed three years. | ||
Derecognized accumulated OCI related to IBBH | ($5,200,000) | ||
Maximum [Member] | Computer Equipment [Member] | |||
Property and equipment useful lives | 5 years | ||
Maximum [Member] | Office Furniture And Equipment [Member] | |||
Property and equipment useful lives | 7 years | ||
Maximum [Member] | Internally Developed Software [Member] | |||
Property and equipment useful lives | 3 years | ||
Minimum [Member] | Computer Equipment [Member] | |||
Property and equipment useful lives | 3 years | ||
Minimum [Member] | Office Furniture And Equipment [Member] | |||
Property and equipment useful lives | 5 years |
Equity_And_Earnings_Per_Share_1
Equity And Earnings Per Share (Narrative) (Details) (USD $) | 12 Months Ended | 36 Months Ended | 92 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2014 | Oct. 24, 2014 | 3-May-07 | |
Equity And Earnings Per Share [Line Items] | ||||||||
IBG Inc. ownership % of IBG LLC | 14.50% | 14.50% | 10.00% | |||||
IBG Holdings ownership % of IBG LLC | 85.50% | 85.50% | 90.00% | |||||
IBG Holdings Redemption of IBG LLC | 10.00% | |||||||
IBG Holdings LLC Ownership Percentage of Class B Common Stock | 100.00% | |||||||
Common stock, par value | $0.01 | $0.01 | ||||||
Common stock, shares issued | 58,612,245 | 58,612,245 | ||||||
Common stock, shares outstanding | 58,473,186 | 58,473,186 | ||||||
Preferred stock shares authorized | 10,000 | 10,000 | 10,000 | |||||
Preferred stock shares issued | 0 | 0 | 0 | |||||
Preferred stock shares outstanding | 0 | 0 | 0 | |||||
Amortization period DTA (years) | 15 years | |||||||
Deferred tax asset arising from the acquisition of interests in IBGLLC | $278,842,000 | $294,666,000 | $281,615,000 | $278,842,000 | ||||
Unamortized deferred tax asset arising from equity offerings | 278,800,000 | 294,700,000 | 278,800,000 | |||||
Percent of tax savings owed to IBG Holdings LLC | 85.00% | |||||||
Percentage of tax savings retained by IBG Inc. | 15.00% | |||||||
Deferred tax asset from common stock offerings | 427,100,000 | 427,100,000 | ||||||
Tax savings owed to IBG Holdings LLC | 363,000,000 | 363,000,000 | ||||||
Tax savings retained by IBG Inc. | 64,100,000 | 64,100,000 | ||||||
Tax savings paid to IBG Holdings LLC | 86,200,000 | |||||||
Exchange Agreement Future Redemption Schedule | 12.5% annually for seven (7)B years and 2.5% in the eighth year. | |||||||
Shares reserved for future issuance | 360,000,000 | |||||||
Shares redeemed by IBG Holdings from IBG LLC | 5,013,259 | |||||||
Cash Redemptions IBG Holdings | 114,000,000 | |||||||
Fair Value Of Issued Shares For Membership Exchange | 35,200,000 | |||||||
Shares Issued | 1,358,478 | 4,683,415 | 1,983,624 | |||||
Thomas Peterffy and Affiliates Ownership | 88.00% | 88.00% | 84.60% | |||||
Dividends paid by IBG LLC | 323,600,000 | 162,900,000 | 595,800,000 | |||||
Cash dividend paid to IBG, Inc. | 45,000,000 | 20,500,000 | 70,600,000 | |||||
Dividend per share | $0.10 | |||||||
Dividends paid to common shareholders | 22,731,000 | 20,207,000 | 66,298,000 | |||||
Declaration Date | 20-Jan-15 | |||||||
Payment Date | 13-Mar-15 | |||||||
Record Date | 27-Feb-15 | |||||||
Common Class A | ||||||||
Equity And Earnings Per Share [Line Items] | ||||||||
Common stock, par value | $0.01 | $0.01 | $0.01 | |||||
Shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common stock, shares issued | 58,612,245 | 54,788,049 | 58,612,245 | |||||
Common stock, shares outstanding | 58,473,186 | 54,664,095 | 58,473,186 | |||||
Common Class B | ||||||||
Equity And Earnings Per Share [Line Items] | ||||||||
Shares authorized | 100 | 100 | 100 | |||||
Common stock, shares issued | 100 | 100 | 100 | |||||
Common stock, shares outstanding | 100 | 100 | 100 | |||||
Quarterly Dividend | ||||||||
Equity And Earnings Per Share [Line Items] | ||||||||
Dividends paid to common shareholders | 18,800,000 | |||||||
Special Dividend [Member] | ||||||||
Equity And Earnings Per Share [Line Items] | ||||||||
Dividend per share | $1 | |||||||
Dividends paid to common shareholders | $47,500,000 |
Equity_And_Earnings_Per_Share_2
Equity And Earnings Per Share (Redeemable Noncontrolling Interests Adjustments) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2012 |
Equity And Earnings Per Share [Abstract] | |
Redeemable noncontrolling interests | ($5,367,553) |
Additional Paid in Capital | 472,409 |
Retained earnings | 572,840 |
Noncontrolling interests | $4,322,304 |
Equity_And_Earnings_Per_Share_3
Equity And Earnings Per Share (Basic Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share: | |||
Net income attributable to common stockholders | $44,533 | $37,003 | $40,668 |
Add net income attributable non-fair value redemption rights | 1,108 | ||
Net income available for common stockholders | $44,533 | $37,003 | $41,776 |
Weighted average shares of common stock outstanding: | |||
Weighted Average Number of Shares Outstanding, Basic | 56,492,381 | 49,742,428 | 46,814,676 |
Basic earnings per share | $0.79 | $0.74 | $0.89 |
Common Class A | |||
Weighted average shares of common stock outstanding: | |||
Weighted Average Number of Shares Outstanding, Basic | 56,492,281 | 49,742,328 | 46,814,576 |
Common Class B | |||
Weighted average shares of common stock outstanding: | |||
Weighted Average Number of Shares Outstanding, Basic | 100 | 100 | 100 |
Equity_And_Earnings_Per_Share_4
Equity And Earnings Per Share (Diluted Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Diluted earnings per share: | |||
Net income available for common stockholders | $44,533 | $37,003 | $41,776 |
Weighted Average Shares Outstanding [Abstract] | |||
Weighted Average Number of Shares Outstanding, Basic | 56,492,381 | 49,742,428 | 46,814,676 |
Potentially dilutive common shares: | |||
Issuable pursuant to 2007 ROI Unit Stock Plan | 1,217,287 | 1,182,308 | 255,846 |
Weighted Average Number of Shares Outstanding, Diluted | 57,709,668 | 50,924,736 | 47,070,522 |
Earnings Per Share, Diluted | $0.77 | $0.73 | $0.89 |
Common Class A | |||
Weighted Average Shares Outstanding [Abstract] | |||
Weighted Average Number of Shares Outstanding, Basic | 56,492,281 | 49,742,328 | 46,814,576 |
Common Class B | |||
Weighted Average Shares Outstanding [Abstract] | |||
Weighted Average Number of Shares Outstanding, Basic | 100 | 100 | 100 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income Detail [Abstract] | |||
Comprehensive income attributable to common stockholders, net of tax | $29,487 | $34,277 | $51,935 |
Add net income attributable to non-fair value redemption rights | 1,108 | ||
Comprehensive income available for common stockholders | $29,487 | $34,277 | $53,043 |
Earnings per share on comprehensive income: | |||
Basic | $0.52 | $0.69 | $1.13 |
Diluted | $0.51 | $0.67 | $1.13 |
Weighted average common shares outstanding: | |||
Weighted Average Number of Shares Outstanding, Basic | 56,492,381 | 49,742,428 | 46,814,676 |
Weighted Average Number of Shares Outstanding, Diluted | 57,709,668 | 50,924,736 | 47,070,522 |
Financial_Assets_And_Financial1
Financial Assets And Financial Liabilities (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers of financial instruments owned from level 1 to level 2 | $1,800,000 | |
Transfers of financial instruments owned from level 2 to level 1 | 1,100,000 | |
Transfers of financial instruments sold, but not yet purchased from level 1 to level 2 | 600,000 | |
Transfers of financial instruments sold, but not yet purchased from level 2 to level 1 | 1,800,000 | |
Transfers of other financial instruments owned from level 1 to level 2 | 1,200,000 | |
Total financial assets, at fair value | 10,659,005,000 | 5,879,610,000 |
Financial instruments sold but not yet purchased, at fair value | 2,560,787,000 | 3,153,673,000 |
Securities Purchased Under Agreement to Resell Segregated for Regulatory Purposes | 3,870,000,000 | 6,730,000,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets, at fair value | 172,000 | 158,000 |
Financial instruments sold but not yet purchased, at fair value | $930,000 | $3,000 |
Financial_Assets_And_Financial2
Financial Assets And Financial Liabilities (Fair Value Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities segregated for regulatory purposes | $6,680,951 | $1,300,016 |
Financial instruments owned | 1,998,427 | 3,285,313 |
Financial instruments owned and pledged as collateral | 1,935,722 | 1,163,531 |
Total financial instruments owned | 3,934,149 | 4,448,844 |
Other fair value investments, included in other assets | 43,905 | 130,750 |
Total Financial Assets at Fair Value | 10,659,005 | 5,879,610 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 2,560,787 | 3,153,673 |
Other fair value liabilities, included in accounts payable, accrued expenses and other liabilities | 7,827 | |
Total Financial Liabilities at Fair Value | 2,568,614 | |
Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 2,552,715 | 2,341,705 |
Other fair value investments, included in other assets | 26,124 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 1,356,564 | 1,266,432 |
Stocks And Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 39,403 | |
Other fair value liabilities, included in accounts payable, accrued expenses and other liabilities | 7,827 | |
Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 1,208,899 | 1,880,481 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 1,193,125 | 1,793,248 |
Warrants And Discount Certificates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 72,307 | 57,377 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 690 | 1,215 |
U.S. And Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 97,942 | 71,182 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 4,412 | |
Corporate And Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 92,351 | |
Other fair value investments, included in other assets | 3,233 | 49,672 |
Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 26,892 | |
Other Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 22,734 | |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments Sold, Not yet Purchased, at Fair Value | 87,564 | |
Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 2,286 | 5,748 |
Other fair value investments, included in other assets | 1,269 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 10,408 | 802 |
Other Assets - Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 5,328 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities segregated for regulatory purposes | 6,680,951 | 1,300,016 |
Total financial instruments owned | 3,931,789 | 4,422,461 |
Other fair value investments, included in other assets | 39,305 | 27,380 |
Total Financial Assets at Fair Value | 10,652,045 | 5,749,857 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 2,549,449 | 3,138,828 |
Other fair value liabilities, included in accounts payable, accrued expenses and other liabilities | 7,827 | |
Total Financial Liabilities at Fair Value | 2,557,276 | |
Level 1 | Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 2,552,641 | 2,341,648 |
Other fair value investments, included in other assets | 25,604 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 1,355,634 | 1,266,429 |
Level 1 | Stocks And Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 39,305 | |
Other fair value liabilities, included in accounts payable, accrued expenses and other liabilities | 7,827 | |
Level 1 | Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 1,208,899 | 1,880,481 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 1,193,125 | 1,793,248 |
Level 1 | Warrants And Discount Certificates [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 72,307 | 57,377 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 690 | 1,215 |
Level 1 | U.S. And Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 97,942 | 69,080 |
Level 1 | Corporate And Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 73,875 | |
Other fair value investments, included in other assets | 1,776 | |
Level 1 | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments Sold, Not yet Purchased, at Fair Value | 77,936 | |
Level 1 | Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments Sold, Not yet Purchased, at Fair Value | ||
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial instruments owned | 2,286 | 26,326 |
Other fair value investments, included in other assets | 4,502 | 103,269 |
Total Financial Assets at Fair Value | 6,788 | 129,595 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 10,408 | 14,842 |
Total Financial Liabilities at Fair Value | 10,408 | |
Level 2 | Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 419 | |
Level 2 | U.S. And Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 2,102 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 4,412 | |
Level 2 | Corporate And Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 18,476 | |
Other fair value investments, included in other assets | 3,233 | 47,896 |
Level 2 | Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 26,892 | |
Level 2 | Other Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 22,734 | |
Level 2 | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments Sold, Not yet Purchased, at Fair Value | 9,628 | |
Level 2 | Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 2,286 | 5,748 |
Other fair value investments, included in other assets | 1,269 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 10,408 | 802 |
Level 2 | Other Assets - Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 5,328 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial instruments owned | 74 | 57 |
Other fair value investments, included in other assets | 98 | 101 |
Total Financial Assets at Fair Value | 172 | 158 |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 930 | 3 |
Total Financial Liabilities at Fair Value | 930 | |
Level 3 | Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | 74 | 57 |
Other fair value investments, included in other assets | 101 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value | 930 | 3 |
Level 3 | Stocks And Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other fair value investments, included in other assets | 98 | |
Level 3 | Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments Sold, Not yet Purchased, at Fair Value |
Financial_Assets_And_Financial3
Financial Assets And Financial Liabilities (Level 3 Financial Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Assets Level 3 Rollforward [Abstract] | ||
Beginning balance | $158 | |
Total gains or losses (realized/unrealized) - included in earnings (Assets) | 77 | -526 |
Purchases, issuances and settlements (Assets) | -63 | |
Transfers in and/or out of Level 3 (Assets) | 684 | |
Ending balance | $172 | $158 |
Financial_Assets_And_Financial4
Financial Assets And Financial Liabilities (Level 3 Financial Liabilities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Liabilities Level 3 Rollforward [Abstract] | ||
Beginning balance | $3 | |
Total gains or losses (realized/unrealized) - included in earnings (Liabilities) | ||
Purchases, issuances and settlements (Liabilities) | 927 | |
Transfers in and/or out of Level 3 (Liabilities) | 3 | |
Ending balance | $930 | $3 |
Financial_Assets_And_Financial5
Financial Assets And Financial Liabilities (Trading Gains from Market Making Transactions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Assets And Financial Liabilities [Abstract] | |||
Equities | $247,227 | $285,364 | $422,026 |
Fixed Income | 20,615 | 24,485 | 37,567 |
Foreign Exchange | -6,695 | 21,269 | 6,496 |
Commodities | 115 | -116 | |
Trading gains | $261,147 | $331,233 | $465,973 |
Financial_Assets_And_Financial6
Financial Assets And Financial Liabilities (Financial Assets and Liabilities Not Measured at Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents | $1,269,317 | $1,213,241 | $1,380,599 | $1,284,542 |
Cash and securities segregated for regulatory purposes | 15,403,512 | 13,991,711 | ||
Securities borrowed | 3,659,766 | 2,751,501 | ||
Securities purchased under agreements to resell | 386,221 | 386,316 | ||
Customer receivables | 17,051,452 | 13,596,650 | ||
Receivables from brokers, dealers and clearing organizations | 1,131,177 | 858,189 | ||
Interest receivable | 36,785 | 26,489 | ||
Other assets | 512,647 | 597,759 | ||
Securities loaned | 3,199,106 | 2,563,653 | ||
Short-term borrowings | 33,791 | 24,635 | ||
Customer payables | 31,795,853 | 26,319,420 | ||
Payables to brokers, dealers and clearing organizations | 234,098 | 330,956 | ||
Interest payable | 3,962 | 2,969 | ||
at Fair Value | ||||
Cash and cash equivalents | 1,269,317 | 1,213,241 | ||
Cash and securities segregated for regulatory purposes | 8,722,560 | 12,691,695 | ||
Securities borrowed | 3,659,766 | 2,751,501 | ||
Securities purchased under agreements to resell | 386,221 | 386,316 | ||
Customer receivables | 17,051,452 | 13,596,650 | ||
Receivables from brokers, dealers and clearing organizations | 1,131,177 | 858,189 | ||
Interest receivable | 36,785 | 26,489 | ||
Other assets | 55,078 | 49,610 | ||
Total financial assets, not measured at fair value | 32,312,356 | 31,573,691 | ||
Securities loaned | 3,199,106 | 2,563,653 | ||
Short-term borrowings | 33,791 | 24,635 | ||
Customer payables | 31,795,853 | 26,319,420 | ||
Payables to brokers, dealers and clearing organizations | 234,098 | 330,956 | ||
Interest payable | 3,962 | 2,969 | ||
Total financial liabilities, not measured at fair value | 35,266,810 | 29,241,633 | ||
Carrying Value | ||||
Cash and cash equivalents | 1,269,317 | 1,213,241 | ||
Cash and securities segregated for regulatory purposes | 8,722,560 | 12,691,695 | ||
Securities borrowed | 3,659,766 | 2,751,501 | ||
Securities purchased under agreements to resell | 386,221 | 386,316 | ||
Customer receivables | 17,051,452 | 13,596,650 | ||
Receivables from brokers, dealers and clearing organizations | 1,131,177 | 858,189 | ||
Interest receivable | 36,785 | 26,489 | ||
Other assets | 29,547 | 26,942 | ||
Total financial assets, not measured at fair value | 32,286,825 | 31,551,023 | ||
Securities loaned | 3,199,106 | 2,563,653 | ||
Short-term borrowings | 33,791 | 24,635 | ||
Customer payables | 31,795,853 | 26,319,420 | ||
Payables to brokers, dealers and clearing organizations | 234,098 | 330,956 | ||
Interest payable | 3,962 | 2,969 | ||
Total financial liabilities, not measured at fair value | 35,266,810 | 29,241,633 | ||
Level 1 | ||||
Cash and cash equivalents | 1,269,317 | 1,213,241 | ||
Cash and securities segregated for regulatory purposes | 4,849,257 | 5,957,517 | ||
Total financial assets, not measured at fair value | 6,118,574 | 7,170,758 | ||
Securities loaned | ||||
Short-term borrowings | ||||
Customer payables | ||||
Payables to brokers, dealers and clearing organizations | ||||
Interest payable | ||||
Total financial liabilities, not measured at fair value | ||||
Level 2 | ||||
Cash and securities segregated for regulatory purposes | 3,873,303 | 6,734,178 | ||
Securities borrowed | 3,659,766 | 2,751,501 | ||
Securities purchased under agreements to resell | 386,221 | 386,316 | ||
Customer receivables | 17,051,452 | 13,596,650 | ||
Receivables from brokers, dealers and clearing organizations | 1,131,177 | 858,189 | ||
Interest receivable | 36,785 | 26,489 | ||
Other assets | 55,078 | 49,610 | ||
Total financial assets, not measured at fair value | 26,193,782 | 24,402,933 | ||
Securities loaned | 3,199,106 | 2,563,653 | ||
Short-term borrowings | 33,791 | 24,635 | ||
Customer payables | 31,795,853 | 26,319,420 | ||
Payables to brokers, dealers and clearing organizations | 234,098 | 330,956 | ||
Interest payable | 3,962 | 2,969 | ||
Total financial liabilities, not measured at fair value | 35,266,810 | 29,241,633 | ||
Level 3 | ||||
Cash and cash equivalents | ||||
Cash and securities segregated for regulatory purposes | ||||
Securities borrowed | ||||
Securities purchased under agreements to resell | ||||
Customer receivables | ||||
Receivables from brokers, dealers and clearing organizations | ||||
Interest receivable | ||||
Other assets | ||||
Total financial assets, not measured at fair value | ||||
Securities loaned | ||||
Short-term borrowings | ||||
Customer payables | ||||
Payables to brokers, dealers and clearing organizations | ||||
Interest payable | ||||
Total financial liabilities, not measured at fair value |
Financial_Assets_And_Financial7
Financial Assets And Financial Liabilities (Netting of Financial Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Offsetting Assets [Line Items] | ||||
Gross Amounts of Recognized Assets | $9,202.80 | $11,815.60 | ||
Amounts Assets Offset in the Consolidated Statement of Financial Condition | ||||
Net Amounts of Assets Presented in the Statement of Financial Condition | 9,202.80 | 11,815.60 | ||
Amounts of Assets Not | -8,971.20 | -11,469.10 | ||
Net Exposure of Assets | 231.6 | 346.5 | ||
Securities Segregated For Regulatory Purposes - Purchased Under Agreements To Resell [Member] | ||||
Offsetting Assets [Line Items] | ||||
Gross Amounts of Recognized Assets | 3,873.30 | [1] | 6,734.20 | [1] |
Amounts Assets Offset in the Consolidated Statement of Financial Condition | ||||
Net Amounts of Assets Presented in the Statement of Financial Condition | 3,873.30 | 6,734.20 | ||
Amounts of Assets Not | -3,873.30 | -6,734.20 | ||
Securities Borrowed [Member] | ||||
Offsetting Assets [Line Items] | ||||
Gross Amounts of Recognized Assets | 3,659.80 | 2,751.50 | ||
Amounts Assets Offset in the Consolidated Statement of Financial Condition | ||||
Net Amounts of Assets Presented in the Statement of Financial Condition | 3,659.80 | 2,751.50 | ||
Amounts of Assets Not | -3,564.40 | -2,694.60 | ||
Net Exposure of Assets | 95.4 | 56.9 | ||
Securities Purchased Under Agreement to Resell [Member] | ||||
Offsetting Assets [Line Items] | ||||
Gross Amounts of Recognized Assets | 386.2 | 386.3 | ||
Amounts Assets Offset in the Consolidated Statement of Financial Condition | ||||
Net Amounts of Assets Presented in the Statement of Financial Condition | 386.2 | 386.3 | ||
Amounts of Assets Not | -386.2 | -386.3 | ||
Options [Member] | ||||
Offsetting Assets [Line Items] | ||||
Gross Amounts of Recognized Assets | 1,208.90 | 1,880.50 | ||
Amounts Assets Offset in the Consolidated Statement of Financial Condition | ||||
Net Amounts of Assets Presented in the Statement of Financial Condition | 1,208.90 | 1,880.50 | ||
Amounts of Assets Not | -1,146.60 | -1,652.80 | ||
Net Exposure of Assets | 62.3 | 227.7 | ||
Warrants And Discount Certificates [Member] | ||||
Offsetting Assets [Line Items] | ||||
Gross Amounts of Recognized Assets | 72.3 | 57.4 | ||
Amounts Assets Offset in the Consolidated Statement of Financial Condition | ||||
Net Amounts of Assets Presented in the Statement of Financial Condition | 72.3 | 57.4 | ||
Amounts of Assets Not | -0.7 | -1.2 | ||
Net Exposure of Assets | 71.6 | 56.2 | ||
Currency Forward Contracts [Member] | ||||
Offsetting Assets [Line Items] | ||||
Gross Amounts of Recognized Assets | 2.3 | 5.7 | ||
Amounts Assets Offset in the Consolidated Statement of Financial Condition | ||||
Net Amounts of Assets Presented in the Statement of Financial Condition | 2.3 | 5.7 | ||
Net Exposure of Assets | $2.30 | $5.70 | ||
[1] | As of DecemberB 31, 2014 and DecemberB 31, 2013, the Company had $3.87B billion and $6.73B billion, respectively, of securities purchased under agreements to resell that were segregated to satisfy regulatory requirements. These securities are included in bCash and securitiesbsegregated for regulatory purposesb in the consolidated statements of financial condition. |
Financial_Assets_And_Financial8
Financial Assets And Financial Liabilities (Netting of Financial Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $4,403.30 | $4,358.90 |
Amounts Liabilities Offset in the Consolidated Statement of Financial Condition | ||
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 4,403.30 | 4,358.90 |
Amounts of Liabilities Not Offset in the Consolidated Statement of Financial Condition (Cash or Financial Instruments) | -4,330.80 | -4,198.60 |
Net Exposure of Liabilities | 72.5 | 160.3 |
Securities Loaned [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 3,199.10 | 2,563.70 |
Amounts Liabilities Offset in the Consolidated Statement of Financial Condition | ||
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 3,199.10 | 2,563.70 |
Amounts of Liabilities Not Offset in the Consolidated Statement of Financial Condition (Cash or Financial Instruments) | -3,183.50 | -2,544.60 |
Net Exposure of Liabilities | 15.6 | 19.1 |
Options Sold, Not Yet Purchased [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 1,193.10 | 1,793.20 |
Amounts Liabilities Offset in the Consolidated Statement of Financial Condition | ||
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 1,193.10 | 1,793.20 |
Amounts of Liabilities Not Offset in the Consolidated Statement of Financial Condition (Cash or Financial Instruments) | -1,146.60 | -1,652.80 |
Net Exposure of Liabilities | 46.5 | 140.4 |
Warrants And Discount Certificates Sold, Not Yet Purchased [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 0.7 | 1.2 |
Amounts Liabilities Offset in the Consolidated Statement of Financial Condition | ||
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 0.7 | 1.2 |
Amounts of Liabilities Not Offset in the Consolidated Statement of Financial Condition (Cash or Financial Instruments) | -0.7 | -1.2 |
Currency Forward Contracts Sold, Not Yet Purchased [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 10.4 | 0.8 |
Amounts Liabilities Offset in the Consolidated Statement of Financial Condition | ||
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 10.4 | 0.8 |
Net Exposure of Liabilities | $10.40 | $0.80 |
Collateralized_Transactions_Na
Collateralized Transactions (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure Collateralized Transactions [Abstract] | ||
Customer margin loans outstanding | $17,051,452,000 | $13,596,650,000 |
Securities repledged and deposited for customers | $3,870,000,000 | $6,730,000,000 |
Percentage of securities repledged and deposited for customers | 91.00% | 95.00% |
Collateralized_Transactions_Am
Collateralized Transactions (Amounts Related to Collateralized Transactions) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Permitted To Repledge [Member] | ||
Collateralized Transactions [Line Items] | ||
Securities lending transactions | $10,907.20 | $9,331.90 |
Agreements to resell | 4,259.80 | 7,116.10 |
Customer margin assets | 14,933 | 11,753.30 |
Total collateralized transactions | 30,100 | 28,201.30 |
Sold Or Repledged [Member] | ||
Collateralized Transactions [Line Items] | ||
Securities lending transactions | 2,366 | 2,504.30 |
Agreements to resell | 4,259.80 | 7,099.60 |
Customer margin assets | 5,739.80 | 4,602.90 |
Total collateralized transactions | $12,365.60 | $14,206.80 |
Collateralized_Transactions_Fi
Collateralized Transactions (Financial instruments owned and pledged where the counterparty has the right to repledge) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Disclosure Collateralized Transactions [Abstract] | ||
Stocks | $1,859.50 | $1,097.80 |
Warrants | 0.3 | 0.2 |
U.S. and foreign government securities | 75.9 | 64.4 |
Corporate and municipal bonds | 1.1 | |
Financial Instruments Owned and Pledged as Collateral - Eligible to be Repledged by Counterparty | $1,935.70 | $1,163.50 |
ShortTerm_Borrowings_Narrative
Short-Term Borrowings (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Short-Term Borrowings [Abstract] | |||
Interest expense on short-term borrowings | $0.90 | $0.70 | $0.60 |
ShortTerm_Borrowings_Schedule_
Short-Term Borrowings (Schedule Of Short-term Borrowings) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Short-Term Borrowings [Abstract] | ||
Overnight borrowing facilities, Principal | $33,791 | $24,635 |
Overnight borrowing facilities, Weighted Average Rates | 0.50% | 0.33% |
Short-term borrowings | $33,791 | $24,635 |
Senior_Notes_Payable_Details
Senior Notes Payable (Details) (USD $) | Dec. 31, 2011 |
In Millions, unless otherwise specified | |
Senior Notes Payable [Abstract] | |
Senior Notes at 3% | $101.40 |
Senior_Secured_Revolving_Credi
Senior Secured Revolving Credit Facility (Details) (USD $) | 17-May-12 |
Senior Secured Revolving Credit Facility [Abstract] | |
Senior secured revolving credit facility maximum capacity | $100,000,000 |
Other_Income_Schedule_Of_Compo
Other Income (Schedule Of Components Of Other Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income [Abstract] | |||
Payments for order flow | $25,433 | $25,701 | $21,167 |
Market data fees | 23,933 | 34,853 | 27,175 |
Account activity fees | 14,287 | 15,498 | 13,404 |
Exchange fee income | 1,197 | 1,930 | 4,393 |
Market maker incentives | 732 | 540 | 988 |
Losses on other investments, net | -5,286 | -1,651 | -3,373 |
Losses From currency Diversification Strategy Net | -185,239 | -91,577 | -29,854 |
Other, net | 14,362 | 5,861 | 9,664 |
Other income | ($110,581) | ($8,845) | $43,564 |
Employee_Incentive_Plans_Narra
Employee Incentive Plans (Narrative) (Details) (USD $) | 12 Months Ended | 92 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Apr. 24, 2014 | 3-May-07 | Dec. 31, 2006 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
ROI Dollar Unit Payable | $3.10 | $5.60 | $3.10 | ||||
Vested balance of ROI payable | 3.1 | 5.6 | 3.1 | ||||
ROI dollar compensation expense | 0.3 | 0.5 | 0.8 | ||||
Common Stock Shares issued under ROI Unit Stock Plan | 1,271,009 | ||||||
ROI Shares issued to IBG LLC | 1,250,000 | ||||||
2007 SIP shares issued under ROI Unit Stock Plan | 21,009 | ||||||
Fair value ROI Treasury Stock | 38.1 | ||||||
Vesting Percentage | b" 10% on the date of the IPO (or on the first anniversary of the IPO, in the case of U.S. ROI Unit holders who made the above-referenced elections after DecemberB 31, 2006); andb" an additional 15% on each of the first six anniversaries of the date of the IPO, assuming continued employment with the Company and compliance with other applicable covenants. | ||||||
Fair Value ROI Accrual | 17.8 | ||||||
Compensation expense, ROI Unit Stock Plan | 3.6 | ||||||
Common stock to be distributed to former employees under the ROI Unit Stock Plan | 9,614 | ||||||
Maximum shares of stock distributable under 2007 Stock Incentive Plan | 30,000,000 | 20,000,000 | 30,000,000 | ||||
Increase in 2007 Stock Incentive Plan shares | 10,000,000 | ||||||
Shares granted to external directors | 22,996 | ||||||
2007 Stock Incentive Plan Compensation Expense | 40.6 | 40.3 | 63.3 | ||||
Estimated Future 2007 Stock Incentive Plan Compensation Expense | $38.60 | $38.60 | |||||
Percent Shares Forfeited Post Employment | 50.00% | ||||||
Over Fifty Nine Percent Unvested Shares Eligible | 100.00% | ||||||
Former employees vesting schedule (Years) | 5 years | ||||||
Post employment vesting percentage (Years 1 - 4) | 12.50% | ||||||
Post employment vesting percentage (Year 5) | 50.00% | ||||||
Post employment shares distribution | 188,203 | ||||||
2007 Stock Incentive Plan (Shares) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting Percentage | b" 10% on the first vesting date, which is on or about May 9 of each year; andb" an additional 15% on each of the following six anniversaries of the first vesting, assuming continued employment with the Company and compliance with non-competition and other applicable covenants. | ||||||
Shares Distributed | -2,445,200 | -2,315,300 | -1,736,588 |
Employee_Incentive_Plans_Share
Employee Incentive Plans (Share Grants And Fair Value) (Details) (USD $) | 12 Months Ended | 56 Months Ended | 92 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 |
Employee Incentive Plans [Abstract] | |||||
Shares granted | 1,709,968 | 1,894,046 | 3,629,960 | 13,654,494 | |
Fair Value - Date of Grant | $48.60 | $46.20 | $50.50 | $251.90 | $48.60 |
Shares Granted IPO to Date | 20,888,468 | ||||
Fair Value - Date of Grant IPO to Date | $397.20 |
Employee_Incentive_Plans_2007_
Employee Incentive Plans (2007 Stock Incentive Plan, ROI Summary) (Details) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
2007 Stock Incentive Plan (Shares) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning Balance | 11,647,117 | 12,402,482 | 9,408,994 | |||
Shares Granted | 1,709,968 | 1,894,046 | 4,845,826 | |||
Shares Forfeited | -535,085 | [1] | -334,111 | -115,750 | ||
Shares Distributed | -2,445,200 | -2,315,300 | -1,736,588 | |||
Ending Balance | 10,376,800 | 11,647,117 | 12,402,482 | |||
Intrinsic Value Of SIP Shares Which Vested And Were Distributed [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares Distributed | 55,700,000 | [2] | 36,300,000 | [2] | 25,100,000 | [2] |
2007 ROI Unit Stock Plan (Shares) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning Balance | 169,289 | 356,149 | ||||
Shares Forfeited | 15,518 | [1] | -6,423 | -500 | ||
Shares Distributed | -5,904 | -162,866 | -186,360 | |||
Ending Balance | 9,614 | 169,289 | ||||
[1] | ROI Unit Stock Plan number of forfeited shares related to prior years was adjusted by 15,518 shares during the period. | |||||
[2] | Intrinsic value of SIP shares distributed represents the compensation value reported to the participants. |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
U.S. Statutory Tax Rate | 35.00% | 35.00% | 35.00% |
Undistributed accumulated earnings of foreign subsidiaries | $1,004.50 | $1,072.90 | |
Accumulated earnings of foreign pass through subsidiaries | 393.7 | 422.3 | |
Accumulated earnings subject to additional foreign tax | $293 | $318.70 |
Income_Taxes_Schedule_Of_The_P
Income Taxes (Schedule Of The Provision For Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $720 | ($1,096) | $1,379 |
State and local | 81 | 10 | 167 |
Foreign | 28,285 | 23,041 | 10,684 |
Total current | 29,086 | 21,955 | 12,230 |
Deferred: | |||
Federal | 21,323 | 17,691 | 16,765 |
State and local | 14 | -1 | 27 |
Foreign | -3,169 | -5,960 | 992 |
Total deferred | 18,168 | 11,730 | 17,784 |
Income tax expense | $47,254 | $33,685 | $30,014 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of The Statutory U.S. Federal Income Tax Rate Of 35% To The Company's Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | |||
U.S. Statutory Tax Rate | 35.00% | 35.00% | 35.00% |
Less: rate attributable to noncontrolling interests | -28.60% | -29.50% | -30.30% |
State, local and foreign taxes, net of federal benefit | 2.90% | 2.00% | 1.00% |
Effective income tax rate | 9.30% | 7.50% | 5.70% |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components Of The Company's Deferred Tax Assets (Liabilities)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | |||
Deferred tax asset arising from the acquisition of interests in IBGLLC | $278,842 | $294,666 | $281,615 |
Deferred compensation | 6,236 | 8,274 | 7,309 |
Other | 7,533 | 3,028 | 1,135 |
Total deferred tax assets | 292,611 | 305,968 | 290,059 |
Deferred tax liabilities: | |||
Foreign, primarily THE | 2,964 | 7,942 | 14,022 |
Other comprehensive income | -484 | -199 | 282 |
Other | 432 | 335 | |
Total deferred tax liabilities | 2,912 | 8,078 | 14,304 |
Net deferred tax assets | $289,699 | $297,890 | $275,755 |
Property_And_Equipment_Narrati
Property And Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property And Equipment [Abstract] | |||
Depreciation and amortization | $19,679 | $19,244 | $19,269 |
Property_And_Equipment_Propert
Property And Equipment (Property And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property And Equipment [Abstract] | ||
Leasehold improvements | $17,341 | $21,177 |
Computer equipment | 8,515 | 8,157 |
Internally developed software | 44,172 | 39,127 |
Office furniture and equipment | 3,270 | 3,727 |
Property and Equipment, Gross, Total | 73,298 | 72,188 |
Less-accumulated depreciation and amortization | -41,475 | -39,951 |
Property and Equipment, Net, Total | $31,823 | $32,237 |
Recovered_Sheet2
Commitments, Contingencies and Guarantees (Details) (USD $) | 1 Months Ended | 12 Months Ended | 15 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
item | |||||
Commitment And Contingencies [Line Items] | |||||
Number of Stocks | 4 | ||||
Percentage of loss on securities | 90.00% | ||||
Loss on large positions on Singapore Exchange | $64 | $83.40 | |||
Rent expense | 12.9 | 13.3 | 13.3 | ||
Scenario, Forecast [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Loss on large positions on Singapore Exchange | $84 |
Commitments_Contingencies_And_2
Commitments, Contingencies And Guarantees (Minimum Annual Lease Commitments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments, Contingencies And Guarantees [Abstract] | |
2015 | $11,495 |
2016 | 11,367 |
2017 | 9,259 |
2018 | 9,115 |
Thereafter | 632 |
Total future minimum annual lease commitments | $41,868 |
Segment_And_Geographic_Informa2
Segment And Geographic Information (Segment Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Net revenues | $1,043,276 | $1,076,140 | $1,130,520 |
Income before income taxes | 506,123 | 451,278 | 527,000 |
Assets | 43,385,026 | 37,870,700 | |
Electronic Brokerage [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 952,300 | 818,500 | 672,200 |
Income before income taxes | 588,500 | 395,800 | 343,500 |
Assets | 38,280,100 | 31,333,500 | 25,741,500 |
Market Making [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 284,400 | 361,100 | 490,500 |
Income before income taxes | 114,100 | 158,500 | 219,500 |
Assets | 12,172,400 | 12,139,500 | 12,730,800 |
Corporate And Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | -193,400 | -103,400 | -32,200 |
Income before income taxes | -196,500 | -103,000 | -36,000 |
Assets | ($7,067,500) | ($5,602,300) | ($5,272,700) |
Segment_And_Geographic_Informa3
Segment And Geographic Information (Geographic Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Net revenues | $1,043,276 | $1,076,140 | $1,130,520 |
Income before income taxes | 506,123 | 451,278 | 527,000 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 964,600 | 889,000 | 862,700 |
Income before income taxes | 619,700 | 456,200 | 468,900 |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 279,600 | 295,600 | 301,500 |
Income before income taxes | 90,300 | 98,200 | 95,400 |
Corporate And Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | -200,900 | -108,400 | -33,700 |
Income before income taxes | ($203,900) | ($103,100) | ($37,300) |
Regulatory_Requirements_Narrat
Regulatory Requirements (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Regulatory Requirements [Abstract] | |
Excess regulatory capital | $3,271.80 |
Regulatory_Requirements_Summar
Regulatory Requirements (Summary Of Capital, Capital Requirements And Excess Capital) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Net Capital / Eligible Equity | $3,855.80 |
Required net capital | 584 |
Excess regulatory capital | 3,271.80 |
IB LLC [Member] | |
Net Capital / Eligible Equity | 2,333.90 |
Required net capital | 279 |
Excess regulatory capital | 2,054.90 |
TH LLC [Member] | |
Net Capital / Eligible Equity | 374.2 |
Required net capital | 63.6 |
Excess regulatory capital | 310.6 |
THE [Member] | |
Net Capital / Eligible Equity | 661.7 |
Required net capital | 205.3 |
Excess regulatory capital | 456.4 |
Other Regulated Operating Companies [Member] | |
Net Capital / Eligible Equity | 486 |
Required net capital | 36.1 |
Excess regulatory capital | $449.90 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transactions [Abstract] | ||
Due from Related Parties - Customers | $151.90 | $0.40 |
Due to Related Parties - Customers | $273.70 | $815.50 |
Schedule_ICondensed_Financial_2
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) (Condensed Statements Of Financial Conditions) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, except Share data, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $1,269,317 | $1,213,241 | $1,380,599 | $1,284,542 |
Other assets | 512,647 | 597,759 | ||
Total assets | 43,385,026 | 37,870,700 | ||
Liabilities and stockholders' equity | ||||
Payable to affiliates | 277,400 | 287,242 | ||
Accrued expenses and other liabilities | 95,401 | 96,026 | ||
Total liabilities | 38,200,398 | 32,778,574 | ||
Stockholders' equity (deficit): | ||||
Additional paid-in capital | 636,150 | 583,312 | ||
Retained earnings | 120,670 | 98,868 | ||
Accumulated other comprehensive income, net of income taxes of $651 and $936 at December 31, 2014 and 2013 | 11,982 | 27,028 | ||
Treasury stock, at cost, 139,059 and 123,954 shares at December 31, 2014 and 2013 | -3,064 | -2,492 | ||
Total stockholders' equity | 766,324 | 707,264 | ||
Total liabilities and stockholders' equity | 43,385,026 | 37,870,700 | ||
Common stock, par value | $0.01 | |||
Common stock, shares issued | 58,612,245 | |||
Common stock, shares outstanding | 58,473,186 | |||
Treasury stock shares | 139,059 | 123,954 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 1,154 | 1,164 | 94 | 18 |
Investments in subsidiaries, equity basis | 748,449 | 691,499 | ||
Other assets | 294,136 | 302,919 | ||
Total assets | 1,043,739 | 995,582 | ||
Liabilities and stockholders' equity | ||||
Payable to affiliates | 277,395 | 287,216 | ||
Accrued expenses and other liabilities | 20 | 1,102 | ||
Total liabilities | 277,415 | 288,318 | ||
Stockholders' equity (deficit): | ||||
Additional paid-in capital | 636,150 | 583,312 | ||
Retained earnings | 120,670 | 98,868 | ||
Accumulated other comprehensive income, net of income taxes of $651 and $936 at December 31, 2014 and 2013 | 11,982 | 27,028 | ||
Treasury stock, at cost, 139,059 and 123,954 shares at December 31, 2014 and 2013 | -3,064 | -2,492 | ||
Total stockholders' equity | 766,324 | 707,264 | ||
Total liabilities and stockholders' equity | 1,043,739 | 995,582 | ||
Common Class A | ||||
Stockholders' equity (deficit): | ||||
Common stock | 586 | 548 | ||
Common stock, par value | $0.01 | $0.01 | ||
Shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock, shares issued | 58,612,245 | 54,788,049 | ||
Common stock, shares outstanding | 58,473,186 | 54,664,095 | ||
Common Class A | Parent Company [Member] | ||||
Stockholders' equity (deficit): | ||||
Common stock | 586 | 548 | ||
Common Class B | ||||
Stockholders' equity (deficit): | ||||
Common stock | ||||
Shares authorized | 100 | 100 | ||
Common stock, shares issued | 100 | 100 | ||
Common stock, shares outstanding | 100 | 100 | ||
Common Class B | Parent Company [Member] | ||||
Stockholders' equity (deficit): | ||||
Common stock |
Schedule_ICondensed_Financial_3
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) (Condensed Statements Of Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues - dividends, interest and other | $1,115,548 | $1,127,860 | $1,192,470 |
Other | 57,285 | 115,054 | 45,893 |
Total non-interest expenses | 537,153 | 624,862 | 603,520 |
Net income | 458,869 | 417,593 | 496,986 |
Net income attributable to common stockholders | 44,533 | 37,003 | 40,668 |
Comprehensive income attributable to common stockholders | 29,487 | 34,277 | 53,043 |
Parent Company [Member] | |||
Revenues - dividends, interest and other | 3 | 4 | |
Other | 51 | ||
Delaware franchise taxes | 180 | 180 | 180 |
Total non-interest expenses | 180 | 231 | 180 |
Loss before equity in income of subsidiary | -177 | -227 | -180 |
Equity in income of subsidiary, net of tax | 44,710 | 37,230 | 40,848 |
Net income | 44,533 | 37,003 | 40,668 |
Net income attributable to common stockholders | 44,533 | 37,003 | 40,668 |
Cumulative translation adjustment, net of tax | -15,046 | -2,726 | 11,267 |
Comprehensive income attributable to common stockholders | $29,487 | $34,277 | $51,935 |
Schedule_ICondensed_Financial_4
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) (Condensed Statements Of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $458,869 | $417,593 | $496,986 |
Deferred income taxes | 18,168 | 11,730 | 17,784 |
Net cash provided by operating activities | 416,966 | 140,900 | 725,464 |
Net cash provided by (used in) investing activities | 54,125 | -32,439 | -52,433 |
Net cash used in financing activities | -307,977 | -248,450 | -605,195 |
Net increase (decrease) in cash and cash equivalents | 56,076 | -167,358 | 96,057 |
Cash and cash equivalents at beginning of period | 1,213,241 | 1,380,599 | 1,284,542 |
Cash and cash equivalents at end of period | 1,269,317 | 1,213,241 | 1,380,599 |
Interest paid | 72,856 | 53,258 | 63,858 |
Taxes paid | 36,787 | 52,086 | 23,110 |
Parent Company [Member] | |||
Net income | 44,533 | 37,003 | 40,668 |
Equity in income of subsidiary, net of tax | -44,710 | -37,230 | -40,848 |
Deferred income taxes | 21,517 | 17,565 | 17,283 |
Changes in operating assets and liabilities | -43,589 | -16,557 | -21,337 |
Net cash provided by operating activities | -22,249 | 781 | -4,234 |
Net cash provided by (used in) investing activities | 44,970 | 20,496 | 70,608 |
Net cash used in financing activities | -22,731 | -20,207 | -66,298 |
Net increase (decrease) in cash and cash equivalents | -10 | 1,070 | 76 |
Cash and cash equivalents at beginning of period | 1,164 | 94 | 18 |
Cash and cash equivalents at end of period | 1,154 | 1,164 | 94 |
Taxes paid | $5,954 | $29 |
Schedule_ICondensed_Financial_5
Schedule I-Condensed Financial Information of Registrant (Parent Company Only) (Transactions With Affiliates) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends received | $1,484,000 | $11,054,000 | $1,567,000 |
Parent Company [Member] | |||
Receivables from affiliates | 0 | ||
Dividends received | 45,000,000 | 20,500,000 | 70,600,000 |
Payable to affiliates | $277,400,000 | $287,200,000 |