Schedule I - Condensed Financial Information of Registrant (Parent Company Only)

12 Months Ended

Dec. 31, 2019

Schedule I - Condensed Financial Information of Registrant (Parent Company Only) [Abstract]

Schedule I - Condensed Financial Information of Registrant (Parent Company Only)



INTERACTIVE BROKERS GROUP, INC.
(Parent Company Only)
CONDENSED STATEMENTS OF FINANCIAL CONDITION


	December 31,
(in millions, except share amounts)	2019		2018
Assets
Cash and cash equivalents	$	1	$	1
Investments in subsidiaries, equity basis		1,469		1,302
Other assets		143		152
Total assets	$	1,613	$	1,455
Liabilities and Equity
Liabilities:
Payable to affiliates	$	152	$	171
Accrued expenses and other liabilities		9		2
		161		173
Stockholders' equity:
Common stock, $0.01 par value per share:
Class A – Authorized - 1,000,000,000, Issued - 76,889,040 and 75,230,400 shares, Outstanding – 76,750,110 and 75,100,952 shares as of December 31, 2019 and 2018		1		1
Class B – Authorized, Issued and Outstanding – 100 shares as of December 31, 2019 and 2018		—		—
Additional paid-in capital		934		898
Retained earnings		520		390
Accumulated other comprehensive income, net of income taxes $0 and $0 as of December 31, 2019 and 2018		—		(4)
Treasury stock, at cost, 138,930 and 129,448 shares as of December 31, 2019 and 2018		(3)		(3)
Total equity		1,452		1,282
Total liabilities and equity	$	1,613	$	1,455

See accompanying notes to the condensed financial statements.

‎



INTERACTIVE BROKERS GROUP, INC.
(Parent Company Only)
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME


	Year-Ended December 31,
(in millions)	2019		2018		2017
Income (loss) before income from subsidiaries	$	(2)	$	2	$	92
Undistributed gains of subsidiaries, net		208		206		147
Income tax expense		45		39		163
Net income	$	161	$	169	$	76

Net income available for common stockholders	$	161	$	169	$	76
Cumulative translation adjustment, net of tax		4		(13)		11
Comprehensive income available for common stockholders	$	165	$	156	$	87

See accompanying notes to the condensed financial statements.

‎



INTERACTIVE BROKERS GROUP, INC.
(Parent Company Only)
CONDENSED STATEMENTS OF CASH FLOWS


	Year-Ended December 31,
(in millions)	2019		2018		2017
Cash flows from operating activities
Net income	$	161	$	169	$	76
Adjustments to reconcile net income to net cash provided by operating activities
Undistributed gains of subsidiaries, net		(208)		(206)		(147)
Deferred income taxes		23		23		149
Gain on remeasurement of Tax Receivable Agreement liability		—		(3)		(93)
Changes in operating assets and liabilities		(1)		15		(9)
Net cash used in operating activities		(25)		(2)		(24)
Cash flows provided by investing activities		81		74		56
Cash flows used in financing activities		(60)		(58)		(43)
Effect of exchange rate changes on cash and cash equivalents		4		(13)		11
Net increase in cash and cash equivalents		—		1		—
Cash and cash equivalents at beginning of period		1		—		—
Cash and cash equivalents at end of period	$	1	$	1	$	—
Supplemental disclosures of cash flow information
Cash paid for interest	$	2	$	1	$	—
Cash paid for taxes, net	$	20	$	14	$	13

Non-cash investing activities:
Non-cash distributions from subsidiaries	$	—	$	2	$	—

See accompanying notes to the condensed financial statements.

‎

INTERACTIVE BROKERS GROUP, INC.

(Parent Company Only)

NOTES TO CONDENSED FINANCIAL STATEMENTS

1. Basis of Presentation

The accompanying condensed financial statements (the “Parent Company Financial Statements”) of Interactive Brokers Group, Inc. (“IBG, Inc.”), a Delaware holding company, including the notes thereto, should be read in conjunction with the consolidated financial statements of IBG, Inc. and its subsidiaries (the “Company”) and the notes thereto. IBG, Inc.’s primary asset is its ownership interest in IBG LLC, an automated global electronic broker and market maker specializing in executing and clearing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 135 electronic exchanges and market centers around the world and offering custody, prime brokerage, securities and margin lending services to customers.

The preparation of the Parent Company Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures in the condensed financial statements and accompanying notes.

Income Taxes

Refer to Note 2 to the consolidated financial statements.

2. Related Party Transactions

As of December 31, 2019, there were no receivables from affiliates. Dividends received from IBG LLC for the three years ended December 31, 2019, 2018, and 2017, were $81 million, $76 million and $56 million, respectively.

As of December 31, 2019, and 2018, respectively, payable to affiliates of $152 million and $171 million consisted primarily of amounts payable to Holdings under the Tax Receivable Agreement.

3. Stockholders’ Equity

Refer to Note 4 to the consolidated financial statements.

4. Employee Incentive Plans

Refer to Note 10 to the consolidated financial statements.

5. Commitments, Contingencies and Guarantees

Refer to Note 14 to the consolidated financial statements.

6. Subsequent Events

As required by FASB ASC Topic, “Subsequent Events,” IBG, Inc. has evaluated subsequent events for adjustment to or disclosure in its condensed financial statements through the date the condensed financial statements were issued.

Except as disclosed in Note 4 and Note 14 to the consolidated financial statements, no other recordable or disclosable events occurred.