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Segment And Geographic Information
 6 Months Ended
Jun. 30, 2017
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 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 three months and six months ended June 30, 2017 and 2016, and total assets as of June 30, 2017 and December 31, 2016:





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

2017

 

2016

 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 



 

(in millions)

 

(in millions)

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$

 334 

 

$

 310 

 

$

 648 

 

$

 657 

Market making

 

 

 23 

 

 

 43 

 

 

 31 

 

 

 102 

Corporate

 

 

 30 

 

 

 16 

 

 

 82 

 

 

 99 

Total net revenues

 

$

 387 

 

$

 369 

 

$

 761 

 

$

 858 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Electronic brokerage

 

$

 198 

 

$

 191 

 

$

 383 

 

$

 426 

Market making

 

 

 (24)

 

 

 5 

 

 

 (46)

 

 

 25 

Corporate

 

 

 30 

 

 

 17 

 

 

 80 

 

 

 99 

Total income before income taxes

 

$

 204 

 

$

 213 

 

$

 417 

 

$

 550 







 

 

 

 

 

 



 

 

 

 

 

 



 

June 30,

 

December 31,



 

2017

 

2016



 

 

 

 

 

 



 

(in millions)

Segment assets

 

 

 

 

 

 

Electronic brokerage

 

$

 54,562 

 

$

 50,072 

Market making

 

 

 8,663 

 

 

 11,765 

Corporate

 

 

 (5,628)

 

 

 (7,164)

Total assets

 

$

 57,597 

 

$

 54,673 



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 three months and six ended June 30, 2017 and 2016. 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 June 30,

 

Six Months Ended June 30,



 

2017

 

2016

 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 



 

(in millions)

 

(in millions)

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

 316 

 

$

 278 

 

$

 619 

 

$

 682 

International

 

 

 71 

 

 

 91 

 

 

 142 

 

 

 176 

Total net revenues

 

$

 387 

 

$

 369 

 

$

 761 

 

$

 858 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

 186 

 

$

 177 

 

$

 381 

 

$

 485 

International

 

 

 18 

 

 

 36 

 

 

 36 

 

 

 65 

Total income before income taxes

 

$

 204 

 

$

 213 

 

$

 417 

 

$

 550