INTERACTIVE BROKERS GROUP, INC. Item 8.01 Other Information
Selected Financial Information
As previously disclosed in Interactive Brokers Group, Inc.'s (the "Company")
Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 , filed with
the Securities and Exchange Commission (the "SEC") on May 8, 2017 , and in
subsequent filings, the Company intended to eliminate the reporting of separate
operating business segments upon its determination that the continued wind-down
of the Company's market making activity rendered it no longer reportable as a
business segment. Pursuant to the requirements of Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC) Topic 280, "Segment
Reporting," the Company performed a quantitative and a qualitative assessment of
its business and determined that its remaining market making activity no longer
supports the Company's reporting of separate business segments. Accordingly,
effective for the quarter ended March 31, 2020 , the Company discontinued the
reporting of separate business segments. Since the Company's decision to wind
down its market making activities, management has continued to shift its focus
to growing and strengthening the Company's electronic brokerage business. The
Company believes the elimination of segment reporting aligns its financial
reporting with its business strategy and management's focus on the electronic
brokerage business. In addition, the Company changed the presentation of its
consolidated statements of comprehensive income to better align with its
business strategy. As a result, the Company made the following changes to the
presentation of its consolidated statement of comprehensive income:
?Other fees and services - reclassified previously reported amounts as other income to other fees and services, which includes market data fees, account activity fees, risk exposure fees, order flow income from options exchange-mandated programs, and revenues from other fees and services.
?Other income - reclassified previously reported as trading gains to other income as a component of "principal transactions." Other income includes gains (losses) from principal transactions? the impact of the currency diversification strategy? gains (losses) from equity method investments; and other revenues not directly attributable to the Company's core business offerings. The Company has determined that the discontinuation of reporting separate business segments and the change in presentation of its consolidated statements of comprehensive income does not constitute a material change as per Item 11(a) of Form S-3. The change in presentation of its consolidated statements of comprehensive income did not change the amounts reported as total net revenues or net income for the years endedDecember 31, 2017 , 2018, and 2019 disclosed in the Company's audited consolidated statements of comprehensive income reported in the Company's Annual Report on Form 10-K, filed with theSEC onFebruary 28, 2020 . The Company is providing this selected financial information to provide investors and other users of the Company's financial statements with the most recent presentation of its consolidated statements of comprehensive income on a historical basis. ?
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The following table shows the impact of the change in presentation to the consolidated statement of comprehensive income on selected historical financial and other data of the Company for the periods indicated:
Year Ended December 31,
(in millions, except share or per share amounts) 2019 2018 2017 2016 2015
Revenues
Commissions $ 706 $ 777 $ 647 $ 612 $ 617
Other fees and services 141 148 114 98 95
Other income (loss) 7 49 258 159 52
Total non-interest income 854 974 1,019 869 764
Interest income 1,726 1,392 908 606 492
Interest expense (643) (463) (225) (79) (67)
Total net interest income 1,083 929 683 527 425
Total net revenues 1,937 1,903 1,702 1,396 1,189
Non-interest expenses
Execution, clearing and distribution fees 251 269 241 244 231
Employee compensation and benefits 288 264 249 242 227
Occupancy, depreciation and amortization 60 49 47 51 44
Communications 25 25 28 30 25
General and administrative 112 96 86 62 58
Customer bad debt 44 4 2 6 146
Total non-interest expenses 780 707 653 635 731
Income before income taxes 1,157 1,196 1,049 761 458
Income tax expense 68 71 256 62 43
Net income 1,089 1,125 793 699 415
Less net income attributable to noncontrolling
interests 928 956 717 615 366
Net income available for common stockholders $ 161 $ 169 $ 76 $ 84 $ 49
Earnings per share
Basic $ 2.11 $ 2.30 $ 1.09 $ 1.28 $ 0.80
Diluted $ 2.10 $ 2.28 $ 1.07 $ 1.25 $ 0.78
Weighted average common shares outstanding
76,121,570 73,438,209 69,926,933 66,013,247 61,043,071
Basic 76,121,570 73,438,209 69,926,933 66,013,247 61,043,071
76,825,863 74,266,370 70,904,921 67,299,413 62,509,796
Diluted 76,825,863 74,266,370 70,904,921 67,299,413 62,509,796
Comprehensive income
Net income available for common stockholders $ 161 $ 169 $ 76 $ 84 $ 49
Other comprehensive income
Cumulative translation adjustment, before income
taxes 4 (14) 11 (4) (10)
Income taxes related to items of other
comprehensive income - (1) - - -
Other comprehensive income (loss), net of tax 4 (13) 11 (4) (10)
Comprehensive income available for common
stockholders $ 165 $ 156 $ 87 $ 80 $ 39
Comprehensive income attributable to noncontrolling interests Net income attributable to noncontrolling interests$ 928 $ 956 $ 717 $ 615 $ 366 Other comprehensive income - cumulative translation adjustment 20 (66) 54 (21) (53) Comprehensive income attributable to noncontrolling interests$ 948 $ 890 $ 771 $ 594 $ 313 ________________
1)The Company reclassified
2)The Company reclassified$27 million ,$39 million ,$40 million ,$163 million , and$269 million for the years endedDecember 31, 2019 , 2018, 2017, 2016, and 2015, respectively, previously reported as trading gains to other income as a component of "principal transactions". --------------------------------------------------------------------------------
Item. 9.01 Financial Statements and Exhibits.
Exhibit No. Description
104 Cover Page Interactive Data File (the cover page XBRL tags are
embedded within the Inline XBRL Document).
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