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Segment And Geographic Information
 9 Months Ended
Sep. 30, 2016
Segment And Geographic Information [Abstract]  
Segment And Geographic Information

12. Segment and Geographic Information

The Company has two operating business segments: electronic brokerage and market making. These segments are supported by the corporate segment which provides centralized services and executes the Company’s currency diversification strategy.



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.

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 geographic region. 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 months and nine months ended September 30, 2016 and 2015, and to total assets as of September 30, 2016 and December 31, 2015.





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2016

 

2015

 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

 



 

(in millions)

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$

 288 

 

$

 300 

 

$

 945 

 

$

 878 

Market making

 

 

 43 

 

 

 90 

 

 

 145 

 

 

 229 

Corporate

 

 

 14 

 

 

 (31)

 

 

 113 

 

 

 (189)

Total net revenues

 

$

 345 

 

$

 359 

 

$

 1,203 

 

$

 918 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$

 162 

 

$

 184 

 

$

 588 

 

$

 423 

Market making

 

 

 7 

 

 

 46 

 

 

 32 

 

 

 103 

Corporate

 

 

 14 

 

 

 (28)

 

 

 113 

 

 

 (195)

Total income before income taxes

 

$

 183 

 

$

 202 

 

$

 733 

 

$

 331 







 

 

 

 

 

 



 

 

 

 

 

 



 

September 30,

 

December 31,



 

2016

 

2015



 

 

 

 

 

 



 

(in millions)

Segment Assets

 

 

 

 

 

 

Electronic brokerage

 

$

 50,307 

 

$

 44,421 

Market making

 

 

 11,777 

 

 

 10,825 

Corporate

 

 

 (7,020)

 

 

 (6,512)

Total assets

 

$

 55,064 

 

$

 48,734 



The Company operates its automated global business in the U.S. and international markets on more than 100 electronic 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 24 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 and nine months ended September 30, 2016 and 2015. The geographic analysis presented below is based on the location of the subsidiaries in which the transactions are recorded. This geographic information does not reflect the way the Company’s business is managed.







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2016

 

2015

 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

 



 

(in millions)

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

 265 

 

$

 261 

 

$

 947 

 

$

 640 

International

 

 

 80 

 

 

 98 

 

 

 256 

 

 

 278 

Total net revenues

 

$

 345 

 

$

 359 

 

$

 1,203 

 

$

 918 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

 156 

 

$

 155 

 

$

 641 

 

$

 198 

International

 

 

 27 

 

 

 47 

 

 

 92 

 

 

 133 

Total income before income taxes

 

$

 183 

 

$

 202 

 

$

 733 

 

$

 331