Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA

The following tables set forth selected historical consolidated financial and other data of the Company. They are presented for the years ended, and as of, December 31, 2013, 2014, 2015, 2016, and 2017.


	Year Ended December 31,
	2017		2016		2015			2014			2013
	(in millions, except share and per share amounts)
Consolidated Statement of Comprehensive Income Data
Revenues
Trading gains	$	40	$	163	$	269		$	261		$	331
Commissions		647		612		617			549			502
Interest income		908		606		492			416			304
Other (loss) income(1)		332		94		(122	)		(111	)		(9	)

Total revenues		1,927		1,475		1,256			1,115			1,128
Interest expense		225		79		67			72			52

Total net revenues		1,702		1,396		1,189			1,043			1,076

Non-interest expenses
Execution and clearing		241		244		231			212			243
Fixed expenses		410		385		354			322			315
Customer bad debt(2)		2		6		146			3			67

Total non-interest expenses		653		635		731			537			625

Income before income taxes		1,049		761		458			506			451
Income tax expense(1)		256		62		43			47			33

Net income		793		699		415			459			418
Less net income attributable to noncontrolling interests		717		615		366			414			381

Net income available for common stockholders	$	76	$	84	$	49		$	45		$	37



Earnings per share
Basic	$	1.09	$	1.28	$	0.80		$	0.79		$	0.74



Diluted	$	1.07	$	1.25	$	0.78		$	0.77		$	0.73



Comprehensive income available for common stockholders	$	87	$	80	$	39		$	30		$	34



Comprehensive income attributable to noncontrolling interests	$	771	$	594	$	313		$	322		$	356



Comprehensive earnings per share
Basic	$	1.24	$	1.21	$	0.64		$	0.52		$	0.69



Diluted	$	1.22	$	1.19	$	0.62		$	0.51		$	0.67



Weighted average common shares outstanding
Basic		69,926,933		66,013,247		61,043,071			56,492,381			49,742,428



Diluted		70,904,921		67,299,413		62,509,796			57,709,668			50,924,736

(1)

The results for 2017 include the impact of the Tax Cuts and Job Act ("Tax Act") which was enacted on December 22, 2017. The Tax Act resulted in additional income tax expense of $62 million for the one-time transition tax on deemed repatriation of earnings of some of our foreign subsidiaries and $115 million from the remeasurement of the Company's deferred tax assets at the reduced corporate income tax rate of 21%. Other income includes a $93 million gain from the remeasurement of Tax Receivable Agreement liability, payable to Holdings, which is associated with and offsetting to the expense on remeasurement of deferred tax assets. See Note 4 and Note 10 to the audited consolidated financial statements, in Part II, Item 8 of this Annual Report on Form 10-K.

(2)

The results for 2015 include an unusual loss of $137 million as further described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II Item 7 of this Annual Report on Form 10-K. In October 2013, a small number of the Company's brokerage customers had taken relatively large positions in four securities listed on the Singapore Exchange. In early October, within a very short timeframe, these securities lost over 90% of their value. The customer accounts were margined and fell into deficits totaling $64 million prior to the time the Company took possession of their securities positions.


	December 31,
	2017		2016		2015		2014		2013
	(in millions)
Consolidated Statement of Financial Condition Data
Cash, cash equivalents and short-term investments(1)	$	23,999	$	26,053	$	23,105	$	17,059	$	15,591
Total assets(2)(3)	$	61,162	$	54,673	$	48,734	$	43,385	$	37,871
Total liabilities(3)	$	54,729	$	48,853	$	43,390	$	38,200	$	32,779
Stockholders' equity	$	1,090	$	974	$	863	$	766	$	707
Noncontrolling interests	$	5,343	$	4,846	$	4,481	$	4,419	$	4,385

(1)

Cash, cash equivalents and short-term investments represent cash and cash equivalents, cash and securities segregated under federal and other regulations, short-term investments and securities purchased under agreements to resell.

(2)

As of December 31, 2017, approximately $60.8 billion, or 99.3%, of total assets were considered liquid and consisted primarily of cash, marketable securities and collateralized receivables.

(3)

As a result of the Company's acquisition from Holdings of IBG LLC membership interests, the Company received not only an interest in IBG LLC but also, for federal income tax purposes, a step-up to the federal income tax basis of the assets of IBG LLC underlying such additional interest. This increased tax basis is expected to result in tax benefits as a result of increased amortization deductions. The Company will retain 15% of the tax benefits actually realized. As set forth in the Tax Receivable Agreement the Company entered into with Holdings, the Company will pay the remaining 85% of the realized tax benefits relating to any applicable tax year to Holdings. The deferred tax asset was $146 million, $273 million, $288 million, $279 million, and $295 million and the corresponding payable to Holdings was $187 million, $285 million, $291 million, $277 million, and $287 million as of December 31, 2017, 2016, 2015, 2014, and 2013, respectively. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II Item 7 of this Annual Report on Form 10-K for additional details related to the impact of the Tax Act on the Company.

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