v2.4.0.8
Segment And Geographic Information
 6 Months Ended
Jun. 30, 2014
Segment And Geographic Information [Abstract]  
Segment And Geographic Information

12. Segment and Geographic Information

IBG, Inc. operates in two business segments: electronic brokerage and market making. IBG, Inc. 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. 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 June 30, 2014 and 2013, and to total assets as of June 30, 2014 and December 31, 2013 (millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2014

 

2013

 

2014

 

2013

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$
220.6 

 

$
212.5 

 

$
444.3 

 

$
407.8 

Market making

 

 
91.9 

 

 
67.4 

 

 
225.0 

 

 
91.0 

Corporate and eliminations

 

 
(3.2)

 

 
4.0 

 

 
(5.1)

 

 
1.2 

Total net revenues

 

$
309.3 

 

$
283.9 

 

$
664.2 

 

$
500.0 

Income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$
131.4 

 

$
123.3 

 

$
265.7 

 

$
234.3 

Market making

 

 
46.5 

 

 
7.6 

 

 
134.6 

 

 
(21.4)

Corporate and eliminations

 

 
(3.7)

 

 
3.0 

 

 
(8.0)

 

 
3.2 

Total income before income taxes

 

$
174.2 

 

$
133.9 

 

$
392.3 

 

$
216.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2014

 

2013

Assets:

 

 

 

 

 

 

Electronic brokerage

 

$
34,560.6 

 

$
31,333.5 

Market making

 

 
12,190.7 

 

 
12,139.5 

Corporate and eliminations

 

 
(6,595.8)

 

 
(5,602.3)

Total assets

 

$
40,155.5 

 

$
37,870.7 

 

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 24 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 June 30, 2014 and 2013 (millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2014

 

2013

 

2014

 

2013

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$
252.5 

 

$
193.4 

 

$
535.3 

 

$
331.9 

International

 

 
60.5 

 

 
87.4 

 

 
134.8 

 

 
167.7 

Corporate and eliminations

 

 
(3.7)

 

 
3.1 

 

 
(5.9)

 

 
0.4 

Total net revenues

 

$
309.3 

 

$
283.9 

 

$
664.2 

 

$
500.0 

Income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$
165.1 

 

$
99.0 

 

$
362.1 

 

$
151.0 

International

 

 
13.1 

 

 
32.7 

 

 
38.8 

 

 
62.6 

Corporate and eliminations

 

 
(4.0)

 

 
2.2 

 

 
(8.6)

 

 
2.5 

Total income before income taxes

 

$
174.2 

 

$
133.9 

 

$
392.3 

 

$
216.1