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, 2014, 2015, 2016, 2017, and 2018.
Year Ended December 31,
2018
2017
2016
2015
2014
(in millions, except share and per share amounts)
Consolidated Statement of Comprehensive Income Data
Revenues
Commissions
$
777
$
647
$
612
$
617
$
549
Interest income
1,392
908
606
492
416
Trading gains
39
40
163
269
261
Other (loss) income(1)
158
332
94
(122
)
(111
)
Total revenues
2,366
1,927
1,475
1,256
1,115
Interest expense
463
225
79
67
72
Total net revenues
1,903
1,702
1,396
1,189
1,043
Non-interest expenses
Execution, clearing and distribution fees
269
241
244
231
212
Fixed expenses
434
410
385
354
322
Customer bad debt(2)
4
2
6
146
3
Total non-interest expenses
707
653
635
731
537
Income before income taxes
1,196
1,049
761
458
506
Income tax expense(1)
71
256
62
43
47
Net income
1,125
793
699
415
459
Less net income attributable to noncontrolling interests
956
717
615
366
414
Net income available for common stockholders
$
169
$
76
$
84
$
49
$
45
Earnings per share
Basic
$
2.30
$
1.09
$
1.28
$
0.80
$
0.79
Diluted
$
2.28
$
1.07
$
1.25
$
0.78
$
0.77
Comprehensive income available for common stockholders
$
156
$
87
$
80
$
39
$
30
Comprehensive income attributable to noncontrolling interests
$
890
$
771
$
594
$
313
$
322
Comprehensive earnings per share
Basic
$
2.12
$
1.24
$
1.21
$
0.64
$
0.52
Diluted
$
2.09
$
1.22
$
1.19
$
0.62
$
0.51
Weighted average common shares outstanding
Basic
73,438,209
69,926,933
66,013,247
61,043,071
56,492,381
Diluted
74,266,370
70,904,921
67,299,413
62,509,796
57,709,668
(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 11 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. On January 15, 2015, in an unprecedented action, the Swiss National Bank removed a previously instituted and repeatedly confirmed cap of the currency relative to the euro, causing a sudden move in the value of the Swiss franc. Several of our customers holding currency futures and spot positions suffered losses in excess of their deposits with us. We took immediate action to hedge our exposure to the foreign currency receivables from these customers. As of December 31, 2018, we have incurred cumulative losses, net of hedging activity and debt collection efforts, of $116 million. We continue to actively pursue collection of the debts. The ultimate effect of this incident on our results will depend upon the outcome of our debt collection efforts.
December 31,
2018
2017
2016
2015
2014
(in millions)
Consolidated Statement of Financial Condition Data
Cash, cash equivalents and short-term investments(1)
$
26,937
$
23,999
$
26,053
$
23,105
$
17,059
Total assets(2),(3)
$
60,547
$
61,162
$
54,673
$
48,734
$
43,385
Total liabilities(3)
$
53,391
$
54,729
$
48,853
$
43,390
$
38,200
Stockholders’ equity
$
1,282
$
1,090
$
974
$
863
$
766
Noncontrolling interests
$
5,874
$
5,343
$
4,846
$
4,481
$
4,419
(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, 2018, approximately $60.2 billion, or 99.5%, 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 $140 million, $146 million, $273 million, $288 million, and $279 million and the corresponding payable to Holdings was $171 million, $187 million, $285 million, $291 million, and $277 million as of December 31, 2018, 2017, 2016, 2015, and 2014, 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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