filings.toolsItem 16. 10-K SUMMARY
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Item 16. 10-K SUMMARY
None.
| INTERACTIVE BROKERS GROUP, INC. | ||||||
| (Parent Company Only) | ||||||
| CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||
| December 31, | ||||||
| (in millions, except share amounts) | 2023 | 2022 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 6 | $ | 1 | ||
| Investments in subsidiaries, equity basis | 3,571 | 2,845 | ||||
| Other assets | 230 | 231 | ||||
| Total assets | $ | 3,807 | $ | 3,077 | ||
| Liabilities and Equity | ||||||
| Liabilities: | ||||||
| Payable to affiliates | $ | 209 | $ | 214 | ||
| Accrued expenses and other liabilities | 14 | 15 | ||||
| 223 | 229 | |||||
| Stockholders' equity: | ||||||
| Common stock, $0.01 par value per share: | ||||||
| Class A – Authorized - 1,000,000,000, Issued - 107,178,928 and 103,057,148 shares, Outstanding – 107,045,994 and 102,887,728 shares as of December 31, 2023 and 2022 | 1 | 1 | ||||
| Class B – Authorized, Issued and Outstanding – 100 shares as of December 31, 2023 and 2022 | — | — | ||||
| Additional paid-in capital | 1,726 | 1,581 | ||||
| Retained earnings | 1,852 | 1,294 | ||||
| Accumulated other comprehensive income, net of income taxes of $0 and $0 as of December 31, 2023 and 2022 | 8 | (22) | ||||
| Treasury stock, at cost, 133,034 and 169,420 shares as of December 31, 2023 and 2022 | (3) | (6) | ||||
| Total equity | 3,584 | 2,848 | ||||
| Total liabilities and equity | $ | 3,807 | $ | 3,077 |
See accompanying notes to the condensed financial statements.
F-1
| INTERACTIVE BROKERS GROUP, INC. | |||||||||
| (Parent Company Only) | |||||||||
| CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||
| Year-Ended December 31, | |||||||||
| (in millions) | 2023 | 2022 | 2021 | ||||||
| Income (loss) before income from subsidiaries | $ | 5 | $ | 4 | $ | — | |||
| Undistributed gains of subsidiaries, net | 737 | 463 | 383 | ||||||
| Income tax expense | 142 | 87 | 75 | ||||||
| Net income | $ | 600 | $ | 380 | $ | 308 | |||
| Net income available for common stockholders | $ | 600 | $ | 380 | $ | 308 | |||
| Cumulative translation adjustment, net of tax | 30 | (26) | (22) | ||||||
| Comprehensive income available for common stockholders | $ | 630 | $ | 354 | $ | 286 |
See accompanying notes to the condensed financial statements.
F - 2
| INTERACTIVE BROKERS GROUP, INC. | |||||||||
| (Parent Company Only) | |||||||||
| CONDENSED STATEMENTS OF CASH FLOWS | |||||||||
| Year-Ended December 31, | |||||||||
| (in millions) | 2023 | 2022 | 2021 | ||||||
| Cash flows from operating activities | |||||||||
| Net income | $ | 600 | $ | 380 | $ | 308 | |||
| Adjustments to reconcile net income to net cash used in operating activities | |||||||||
| Undistributed gains of subsidiaries, net | (737) | (463) | (383) | ||||||
| Deferred income taxes | 34 | 28 | 18 | ||||||
| (Gain) loss on remeasurement of Tax Receivable Agreement liability | (7) | (6) | (1) | ||||||
| Changes in operating assets and liabilities | (33) | 20 | 21 | ||||||
| Net cash used in operating activities | (143) | (41) | (37) | ||||||
| Cash flows provided by investing activities | 185 | 127 | 111 | ||||||
| Cash flows used in financing activities | (67) | (59) | (56) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 30 | (26) | (22) | ||||||
| Net increase in cash and cash equivalents | 5 | 1 | (4) | ||||||
| Cash and cash equivalents at beginning of period | 1 | — | 4 | ||||||
| Cash and cash equivalents at end of period | $ | 6 | $ | 1 | $ | — | |||
| Supplemental disclosures of cash flow information | |||||||||
| Cash paid for interest | $ | 2 | $ | 1 | $ | 1 | |||
| Cash paid for taxes, net | $ | 111 | $ | 67 | $ | 57 | |||
| Non-cash investing activities: | |||||||||
| Non-cash distributions from subsidiaries | $ | — | $ | 1 | $ | 1 |
See accompanying notes to the condensed financial statements.
F - 3
INTERACTIVE BROKERS GROUP, INC.
(Parent Co****mpany Only)
NOTES TO CONDEN****SED 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, 2023 and 2022, receivables from affiliates were immaterial. Dividends received from IBG LLC for the three years ended December 31, 2023, 2022, and 2021, were $185 million, $128 million and $112 million, respectively.
As of December 31, 2023 and 2022, respectively, payable to affiliates of $210 million and $214 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.
F - 4
SIGNA****TURES
Pursuant to the requirements of Section 13 or 15(d) the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| INTERACTIVE BROKERS GROUP, INC. | ||
| /s/ Paul J. Brody | ||
| Name: | Paul J. Brody | |
| Title: | Chief Financial Officer, Treasurer and Secretary | |
| (Signing both in his capacity as a duly authorized officer and as principal financial officer of the registrant) |
Date: February 26, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated:
| Signature | Title | Date | ||
| /s/ Thomas Peterffy Thomas Peterffy | Chairman of the Board of Directors | February 26, 2024 | ||
| /s/ Earl H. Nemser Earl H. Nemser | Vice Chairman of the Board of Directors | February 26, 2024 | ||
| /s/ Milan Galik Milan Galik | Chief Executive Officer and President (Principal Executive Officer) | February 26, 2024 | ||
| /s/ Denis mendonca Denis Mendonca | Chief Accounting Officer (Principal Accounting Officer) | February 26, 2024 | ||
| /s/ Lawrence E. Harris Lawrence E. Harris | Director | February 26, 2024 | ||
| /s/ NICOLE YUEN Nicole Yuen | Director | February 26, 2024 |
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