v2.4.0.6
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2013
Notes to Consolidated Financial Statements  
Segment and Geographic Information
13. Segment and Geographic Information
 
IBG, Inc. operates in two business segments: electronic brokerage and market making. 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. IBG, Inc. conducts its electronic brokerage business through its Interactive Brokers subsidiaries, which provide electronic execution and clearing services to customers worldwide.
 
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 accurately reflect the external business conducted in each segment or geographical region. Corporate items include non-allocated corporate income and expenses that are not attributed to segments for performance measurement, 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 months ended March 31, 2013 and 2012, and to total assets as of March 31, 2013 and December 31, 2012 (millions):

 
   
Three months ended
 
   
March 31,
 
   
2013
    
2012
 
Net revenues:
          
Electronic brokerage
$
                 195.3
   $
                159.3
 
Market making
 
                      23.6
    
                    142.4
 
Corporate and eliminations
 
                      (2.8
)    
                        2.2
 
Total net revenues
$
                  216.1
   $
                 303.9
 
            
Income before income taxes:
          
Electronic brokerage
$
                  111.0
   $
                    83.4
 
Market making
 
                    (29.0
)    
                      66.0
 
Corporate and eliminations
 
                        0.2
    
                        0.3
 
Total income before income taxes
$
                    82.2
   $
                  149.7
 


   
March 31,
    
December 31,
 
   
2013
    
2012
 
Segment assets:
          
Electronic brokerage
$
            27,598.7
   $
            25,741.5
 
Market making
 
               13,461.1
    
               12,730.8
 
Corporate and eliminations
 
               (5,915.7
)    
               (5,272.7
) 
        Total assets
$
             35,144.1
   $
             33,199.6
 
 
The Company operates its automated global business in U.S. and international markets on more than 100 exchanges and market centers. A significant portion of IBG, Inc.’s net revenues are generated by subsidiaries operating outside the United States. International operations are comprised of electronic brokerage and market making activities in 23 countries in Europe, Asia and the Americas (outside the United States). The following table presents total net revenues and income before income taxes by geographic area for the three months ended March 31, 2013 and 2012 (millions):

 
   
Three months ended
 
   
March 31,
 
   
2013
    
2012
 
Net revenues:
          
United States
$
138.6
   $
                  232.4
 
International
 
                      80.2
    
                      70.6
 
Corporate and eliminations
 
                      (2.7
)    
                        0.9
 
Total net revenues
$
 216.1
   $
                  303.9
 
            
Income before income taxes:
          
United States
$
   51.9
    
                  134.6
 
International
 
                      29.9
    
                      16.0
 
Corporate and eliminations
 
                        0.4
    
                      (0.9
) 
Total income before income taxes
$
                   82.2
   $
                  149.7