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Segment And Geographic Information
 12 Months Ended
Dec. 31, 2016
Segment And Geographic Information [Abstract]  
Segment And Geographic Information

14. 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 trade 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 years ended December 31, 2016, 2015, and 2014, and total assets as of December 31, 2016, 2015, and 2014:





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Year-Ended December 31,



 

2016

 

2015

 

2014



 

 

 

 

 

 

 

 

 



 

(in millions)

Net revenues

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$

 1,239 

 

$

 1,097 

 

$

 952 

Market making

 

 

 190 

 

 

 298 

 

 

 284 

Corporate

 

 

 (33)

 

 

 (206)

 

 

 (193)

Total net revenues

 

$

 1,396 

 

$

 1,189 

 

$

 1,043 

Income before income taxes

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$

 756 

 

$

 536 

 

$

 589 

Market making

 

 

 44 

 

 

 130 

 

 

 114 

Corporate

 

 

 (39)

 

 

 (208)

 

 

 (197)

Total income before income taxes

 

$

 761 

 

$

 458 

 

$

 506 







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

December 31,



 

2016

 

2015

 

2014



 

 

 

 

 

 

 

 

 



 

(in millions)

Segment assets

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$

 50,072 

 

$

 44,421 

 

$

 38,280 

Market making

 

 

 11,765 

 

 

 10,825 

 

 

 12,172 

Corporate

 

 

 (7,164)

 

 

 (6,512)

 

 

 (7,067)

Total assets

 

$

 54,673 

 

$

 48,734 

 

$

 43,385 



The Company operates its automated global business in the U.S. and international markets on more than 120 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 years ended December 31, 2016, 2015, and 2014. 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.





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Year-Ended December 31,



 

2016

 

2015

 

2014



 

 

 

 

 

 

 

 

 



 

(in millions)

Net revenues

 

 

 

 

 

 

 

 

 

United States

 

$

 1,046 

 

$

 832 

 

$

 773 

International

 

 

 350 

 

 

 357 

 

 

 270 

Total net revenues

 

$

 1,396 

 

$

 1,189 

 

$

 1,043 

Income before income taxes

 

 

 

 

 

 

 

 

 

United States

 

$

 632 

 

$

 294 

 

$

 425 

International

 

 

 129 

 

 

 164 

 

 

 81 

Total income before income taxes

 

$

 761 

 

$

 458 

 

$

 506