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

12 Months Ended

Dec. 31, 2022

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)	2022		2021
Assets
Cash and cash equivalents	$	1	$	—
Investments in subsidiaries, equity basis		2,845		2,400
Other assets		231		236
Total assets	$	3,077	$	2,636
Liabilities and Equity
Liabilities:
Payable to affiliates	$	214	$	222
Accrued expenses and other liabilities		15		19
		229		241
Stockholders' equity:
Common stock, $0.01 par value per share:
Class A – Authorized - 1,000,000,000, Issued - 103,057,148 and 98,359,572 shares, Outstanding – 102,887,728 and 98,204,658 shares as of December 31, 2022 and 2021		1		1
Class B – Authorized, Issued and Outstanding – 100 shares as of December 31, 2022 and 2021		—		—
Additional paid-in capital		1,581		1,442
Retained earnings		1,294		953
Accumulated other comprehensive income, net of income taxes of $0 and $0 as of December 31, 2022 and 2021		(22)		4
Treasury stock, at cost, 169,420 and 154,914 shares as of December 31, 2022 and 2021		(6)		(5)
Total equity		2,848		2,395
Total liabilities and equity	$	3,077	$	2,636

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)	2022		2021		2020
Income (loss) before income from subsidiaries	$	4	$	—	$	(3)
Undistributed gains of subsidiaries, net		463		383		237
Income tax expense		87		75		39
Net income	$	380	$	308	$	195

Net income available for common stockholders	$	380	$	308	$	195
Cumulative translation adjustment, net of tax		(26)		(22)		26
Comprehensive income available for common stockholders	$	354	$	286	$	221

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)	2022		2021		2020
Cash flows from operating activities
Net income	$	380	$	308	$	195
Adjustments to reconcile net income to net cash used in operating activities
Undistributed gains of subsidiaries, net		(463)		(383)		(237)
Deferred income taxes		28		18		15
(Gain) loss on remeasurement of Tax Receivable Agreement liability		(6)		(1)		3
Changes in operating assets and liabilities		20		21		(17)
Net cash used in operating activities		(41)		(37)		(41)
Cash flows provided by investing activities		127		111		67
Cash flows used in financing activities		(59)		(56)		(49)
Effect of exchange rate changes on cash and cash equivalents		(26)		(22)		26
Net increase in cash and cash equivalents		1		(4)		3
Cash and cash equivalents at beginning of period		—		4		1
Cash and cash equivalents at end of period	$	1	$	—	$	4
Supplemental disclosures of cash flow information
Cash paid for interest	$	1	$	1	$	—
Cash paid for taxes, net	$	67	$	57	$	16

Non-cash investing activities:
Non-cash distributions from subsidiaries	$	1	$	1	$	1

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 specializing in executing and clearing trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange-traded funds (“ETFs”) and precious metals on more than 150 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, 2022, receivables from affiliates was immaterial and as of December 31, 2021, there were no receivables from affiliates. Dividends received from IBG LLC for the three years ended December 31, 2022, 2021, and 2020, were $128 million, $112 million and $68 million, respectively.

As of December 31, 2022 and 2021, respectively, payable to affiliates of $214 million and $222 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.