Parent Company Information

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Parent Company Information

19. Parent Company Information

The following tables present Parent Company-only financial information that should be read in conjunction with the consolidated financial statements of the Company.

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Financial Condition
	As of
	December 31, 2022			December 31, 2021
	(In thousands)
ASSETS
Cash and cash equivalents	$	43,909		$	61,820
Investments, at fair value		5,343			6,327
Accounts receivable		769			—
Receivable from subsidiaries		8,962			3,488
Intangible assets, net of accumulated amortization		23			25
Furniture, equipment, leasehold improvements and capitalized    software, net of accumulated depreciation and amortization		19,557			21,596
Operating lease right-of-use assets		57,402			60,753
Investments in subsidiaries		985,222			982,029
Prepaid expenses and other assets		41,511			4,810
Income and other tax receivable		11,474			1,763
Total assets	$	1,174,172		$	1,142,611
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accrued employee compensation	$	9,693		$	11,065
Income and other tax liabilities		12			5,026
Accounts payable, accrued expenses and other liabilities		11,087			9,233
Operating lease liabilities		72,287			75,978
Total liabilities		93,079			101,302
Stockholders' equity
Preferred stock		—			—
Series A Preferred Stock		—			—
Common stock voting		123			123
Common stock non-voting		—			—
Additional paid-in capital		345,468			330,262
Treasury stock		(328,326	)		(232,712	)
Retained earnings		1,101,525			956,966
Accumulated other comprehensive loss		(37,697	)		(13,330	)
Total stockholders' equity		1,081,093			1,041,309
Total liabilities and stockholders' equity	$	1,174,172		$	1,142,611

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Operations and Comprehensive Income
	Year Ended December 31,
	2022			2021			2020
	(In thousands)
Dividends from subsidiaries	$	257,200		$	173,000		$	30,000
Expenses
Employee compensation and benefits		17,655			17,887			19,710
Depreciation and amortization		2,136			2,123			2,068
Professional and consulting fees		5,528			7,081			7,332
General and administrative		3,081			3,620			2,723
Total expenses		28,400			30,711			31,833
Operating income (loss)		228,800			142,289			(1,833	)
Other income (expense)
Interest income		272			132			2,799
Interest expense		(271	)		—			(805	)
Equity in earnings of unconsolidated affiliate		1,126			—			—
Other, net		(2,633	)		(2,950	)		(318	)
Total other income (expense)		(1,506	)		(2,818	)		1,676
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries		227,294			139,471			(157	)
Benefit from income taxes		(7,710	)		(6,472	)		(23,444	)
Income before equity in undistributed income of subsidiaries		235,004			145,943			23,287
Equity in undistributed income of subsidiaries		15,220			111,945			276,090
Net income		250,224			257,888			299,377
Other comprehensive income (loss), net		(24,367	)		(8,680	)		5,620
Comprehensive income	$	225,857		$	249,208		$	304,997

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
	Year Ended December 31,
	2022			2021			2020
	(In thousands)
Cash flows from operating activities
Net income	$	250,224		$	257,888		$	299,377
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,136			2,123			2,068
Amortization of operating lease right-of-use assets		3,347			4,484			4,117
Stock-based compensation expense		12,554			12,706			10,834
Deferred taxes		(5,076	)		1,712			3,644
Equity in undistributed income of subsidiaries		(15,220	)		(111,945	)		(276,090	)
Other		441			—			(671	)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(769	)		178			(115	)
Decrease (increase) in receivable from subsidiaries		7,931			47,371			(25,049	)
(Increase) in prepaid expenses and other assets		(1,175	)		(219	)		(1,085	)
Decrease (increase) in mutual funds held in rabbi trust		984			(1,516	)		(1,328	)
(Increase) decrease in income and other tax receivables		(9,711	)		7,265			(1,240	)
(Decrease) increase in accrued employee compensation		(1,372	)		824			3,698
Increase (decrease) in income and other tax liabilities		62			(143	)		6,676
Increase (decrease) in accounts payable, accrued expenses and other liabilities		443			(607	)		(442	)
(Decrease) in operating lease liabilities		(3,689	)		(4,673	)		(4,055	)
Net cash provided by operating activities		241,110			215,449			20,339
Cash flows from investing activities
Acquisition of business, net of cash and cash equivalents acquired		—			(17,079	)		—
Acquisition of equity method investment		(34,400	)		—			—
Investments in subsidiaries		(8,326	)		—			—
Available-for-sale investments
Proceeds from maturities and sales		—			—			170,657
Purchases		—			—			(32,865	)
Purchases of furniture, equipment and leasehold improvements		(96	)		(198	)		(337	)
Net cash (used in) provided by investing activities		(42,822	)		(17,277	)		137,455
Cash flows from financing activities
Cash dividend on common stock		(105,942	)		(99,791	)		(90,566	)
Exercise of stock options		672			7,096			4,007
Withholding tax payments on restricted stock vesting and stock option exercises		(23,404	)		(33,890	)		(42,418	)
Repurchases of common stock		(87,540	)		(63,189	)		(16,135	)
Proceeds from short-term borrowings		100,000			—			348,000
Repayments of short-term borrowings		(100,000	)		—			(348,000	)
Net cash (used in) financing activities		(216,214	)		(189,774	)		(145,112	)
Effect of exchange rate changes on investments		15			(2,324	)		(5,176	)
Cash and cash equivalents including restricted cash
Net increase (decrease) for the period		(17,911	)		6,073			7,506
Beginning of period		61,820			55,747			48,241
End of period	$	43,909		$	61,820		$	55,747
Supplemental cash flow information:
Cash paid for income taxes	$	65,764		$	41,103		$	32,674
Cash paid for interest		271			—			805
Non-cash investing and financing activity:
Exercise of stock options - cashless		3,845			2,750			10,866