ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 20-4568600 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Bedminster One 135 Route 202/206 Bedminster, New Jersey | 07921 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of exchange on which registered | |
Common stock, $0.00001 | New York Stock Exchange |
Large accelerated filer | ¨ | Accelerated filer | ý | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Item 1. | Business | |
Item 1A. | Risk Factors | |
Item 1B. | Unresolved Staff Comments | |
Item 2. | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
Item 6. | Selected Financial Data | |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 8. | Financial Statements and Supplementary Data | |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | |
Item 11. | Executive Compensation | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |
Item 14. | Principal Accountant Fees and Services | |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | |
EXHIBIT INDEX | ||
ITEM 1. | BUSINESS |
Key Financial Data | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2015 | 2014 (As Restated) | 2013 (As Restated) | 2012 | 2011 | |||||||||||||||
Net Revenue | $ | 435.3 | $ | 369.2 | $ | 267.7 | $ | 151.8 | $ | 182 | |||||||||
Net income applicable to Gain Capital Holdings, Inc. | $ | 10.3 | $ | 24.9 | $ | 28.1 | $ | 2.6 | $ | 15.7 | |||||||||
Adjusted net income(1) | $ | 34.3 | $ | 30.9 | $ | 29.8 | $ | 4.3 | $ | 15.7 |
Key Operating Metrics | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Retail | |||||||||||||||||||
OTC Trading Volume (billions) | $ | 3,985.8 | $ | 2,430.5 | $ | 1,796.7 | $ | 1,303.4 | $ | 1,574.0 | |||||||||
OTC Average Daily Volume (billions) | $ | 15.4 | $ | 9.4 | $ | 6.9 | $ | 5.0 | $ | 6.0 | |||||||||
Active OTC Accounts(2) | 146,977 | 94,895 | 98,696 | 60,219 | 63,435 | ||||||||||||||
Client Assets (millions) | $ | 920.6 | $ | 759.6 | $ | 739.3 | $ | 446.3 | $ | 310.4 | |||||||||
Institutional | |||||||||||||||||||
Volume (billions) | $ | 2,671.9 | $ | 3,183.7 | $ | 2,599.6 | $ | 1,493.8 | $ | 445.7 | |||||||||
Average Daily Volume (billions) | $ | 10.3 | $ | 12.7 | $ | 10.0 | $ | 5.7 | $ | 1.7 | |||||||||
Futures | |||||||||||||||||||
Futures Contracts(3) | 8,623,392 | 7,027,008 | 5,386,383 | 1,507,425 | — | ||||||||||||||
Futures Average Daily Contracts | 34,356 | 28,108 | 21,460 | 18,383 | — |
(1) | Adjusted net income is a non-GAAP financial measure and represents our net income excluding restructuring, acquisition and integration-related expenses, impairment on investment and gain on extinguishment of debt. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Key Income Statement Line Items and Key Operating Metrics” and “Reconciliation of Non-GAAP Financial Measures,” for discussion and reconciliation of non-GAAP financial measures. |
(2) | Represents accounts which executed a transaction over the last 12 months. |
(3) | Futures contracts represent the total number of contracts transacted by customers of our futures business. |
• | Continue to enhance our proprietary trading platforms and innovative trading tools in our retail, institutional and futures segments in order to attract customers and increase our market share; |
• | Strategically expand our operations and customer base through business acquisitions, investments and partnerships, such as our purchase of the entire issued and outstanding share capital of City Index (Holdings) Limited ("City Index"), a global online trading firm specializing in CFDs, forex and spread betting, which we completed on April 1, 2015; |
• | Expand our product offerings in order to facilitate clients' trading of our wide range of financial products and to generate more revenue per customer; and |
• | Identify and enter high-growth markets in order to expand our presence globally in markets where we believe there are large revenue opportunities. |
• | Regulated Forex Firms, such as Forex Capital Markets LLC and OANDA Corporation. Like us, these firms have also expanded globally over the past several years, and we consider them to be competitors in the United States, as well as in several of our key international markets. |
• | Global Multi-Asset Trading Firms, including firms such as Interactive Brokers, IG Group Holdings plc and CMC Group. These firms generally offer a broad set of asset classes and earn a significant percentage of their revenue from CFDs, equities and other exchange-traded products. |
• | sales and marketing activities, including our interaction with, and solicitation of, customers; |
• | trading practices, including the types of products and services we may offer; |
• | treatment of customer assets, including custody, control, safekeeping and, in certain countries, segregation of our customer funds and securities; |
• | maintaining specified minimum amounts of capital and limiting withdrawals of funds from our regulated operating subsidiaries; |
• | continuing education requirements for our employees; |
• | anti-money laundering practices; |
• | recordkeeping and reporting; and |
• | supervision regarding the conduct of directors, officers and employees. |
• | creating “retail foreign exchange dealers,” or RFEDs, a new regulated category of forex brokers focused on retail investors that are permitted to act as counterparty to retail forex transactions; |
• | imposing an initial minimum security deposit amount of 2.0% of the notional value for retail forex transactions in “major currency” pairs and 5.0% of the notional value for all other retail forex transactions; |
• | providing that introducing brokers, money managers and fund managers must either (i) register with the CFTC and become members of the NFA or apply for an exemption from registration and (ii) meet the minimum net capital requirements applicable to futures and commodity options introducing brokers or enter into a guarantee agreement with a CFTC-regulated forex dealer member and permitting only one such guarantee agreement per introducing broker; |
• | requiring that a risk disclosure statement be provided to every retail forex customer, including disclosure of the number of profitable and unprofitable non-discretionary accounts maintained by the forex broker during the four most recent calendar quarters; |
• | prohibiting RFEDs, FCMs and introducing brokers from including statements in sales and marketing materials that would appear to convey to potential retail forex customers that there is a guaranty against loss, and requiring that FCMs, RFEDs and introducing brokers provide retail forex customers with enhanced written disclosure statements that, among other things, inform customers of the risk of loss; and |
• | requiring RFEDs to maintain net capital of at least $20.0 million, plus 5.0% of the RFED’s retail customer obligations in excess of $10.0 million. In addition, in the event an RFED’s net capital position falls below 110.0% of the minimum net capital requirement, the RFED would be subject to additional reporting requirements. |
• | rules that, beginning in October 2010, require us to ensure that our customers residing in the United States have accounts open only with our NFA-member operating entity, GAIN Capital Group, LLC; |
• | amendments to the Commodity Exchange Act that, beginning on July 15, 2011, required essentially all retail transactions in any commodity other than foreign currency to be executed on an exchange, rather than OTC; |
• | a requirement that federal banking regulators adopt new rules regarding the conduct and operation of retail forex businesses by banks; and |
• | a requirement that the SEC adopt rules regarding the conduct and operation of retail forex businesses by broker-dealers. |
• | maintain adequate segregation of client funds; |
• | maintain adequate records in order to be able to meet future obligations when we hold client assets as collateral and be able to identify details of those assets to clients; |
• | comply with custody rules when holding financial instruments (as defined by MiFID I) or other investments belonging to a client in the course of our business, including the safeguarding of those investments and holding all dividends and fees (e.g., stock lending fees) in accordance with the client money rules; |
• | have adequate organizational arrangements in place to minimize the risk that client money may be paid for the account of a client whose money has not yet been received by us; |
• | undertake daily internal client money reconciliation; and |
• | appoint an individual who is responsible for CASS oversight. |
• | report all derivative contracts and their lifecycle events (concluded, modified and terminated) to which we are a party to a trade repository either by ourselves or through a third party; |
• | keep all records relating to concluding of derivative contracts and any subsequent modification for 5 years; |
• | comply with the risk management requirements for OTC bilateral derivatives, including portfolio reconciliation, portfolio compression, record keeping, dispute resolution and margining (some of these requirements will be phased in from September 2016); and |
• | clear through central counterparties all OTC derivatives which will be subject to the mandatory clearing obligation. |
• | the types of services, transactions and financial instruments with which the retail client is familiar; |
• | the nature, volume, and frequency of the retail client’s transactions in financial instruments and the period over which they have been carried out; and |
• | the level of education, and profession or relevant former profession of the retail client or potential retail client. |
• | expand the number of financial instruments for which firms are required to carry out an appropriateness assessment before providing an execution only service to retail clients; |
• | extend the pre- and post-trade transparency regime to derivatives traded on regulated markets, multi-lateral trading facilities, or MTFs, and organized trading facilities, or OTFs; |
• | expand transaction reporting to those financial instruments traded on MTFs, OTFs, and those financial instruments where the underlying instrument is traded on a Trading Venue; and |
• | give E.U. Member State regulators the new power to ban or restrict the marketing, distribution or sale of a financial instrument or types of financial practice where there is a threat to investor protection, the orderly functioning and integrity of markets or to financial stability. The European Banking Authority and the European Securities and Markets Authority have similar powers to impose a ban on an EU-wide basis or in relation to a particular E.U. Member State. |
• | price changes in foreign currencies; |
• | lack of liquidity in foreign currencies in which we have positions; and |
• | inaccuracies in our proprietary pricing mechanism, or rate engine, which evaluates, monitors and assimilates market data and reevaluates our outstanding currency quotes, and is designed to publish prices reflective of prevailing market conditions throughout the trading day. |
• | diversion of management time and focus from operating our business to address challenges that may arise in integrating the acquired business; |
• | transition of operations, users and customers onto our existing platforms or onto platforms of the acquired company; |
• | failure to successfully further develop the acquired business; |
• | failure to realize anticipated operational or financial synergies; |
• | implementation or remediation of controls, procedures, and policies at the acquired company; |
• | in the case of foreign acquisitions, the need to integrate operations across different cultures and languages and to address the particular economic, currency, political, and regulatory risks associated with specific countries; |
• | liability for activities of the acquired company before the acquisition, such as violations of laws, commercial disputes, tax liabilities, and other known and unknown liabilities; and |
• | integration of the acquired business’ accounting, human resource and other administrative systems, and coordination of trading and sales and marketing functions. |
• | develop products and services that are similar to ours, or that are more attractive to customers than ours in one or more of our markets; |
• | provide products and services we do not offer; |
• | provide execution and clearing services that are more rapid, reliable, efficient or less expensive than ours; |
• | offer products and services at prices below ours to gain market share and to promote other businesses, such as forex options, futures, listed securities, CFDs, precious metals and OTC derivatives; |
• | adapt at a faster rate to market conditions, new technologies and customer demands; |
• | offer better, faster and more reliable technology; |
• | outbid us for desirable acquisition targets; |
• | more efficiently engage in and expand existing relationships with strategic alliances; |
• | market, promote and sell their products and services more effectively; and |
• | develop stronger relationships with customers. |
• | changing customer demands; |
• | the need to enhance existing services and products or introduce new services and products; |
• | evolving industry practices; and |
• | rapidly evolving technology solutions. |
• | less developed or mature local technological infrastructure and higher costs, which could make our products and services less attractive or accessible in emerging markets; |
• | difficulty in complying with the diverse regulatory requirements of multiple jurisdictions, which may be more burdensome, not clearly defined and subject to unexpected changes, potentially exposing us to significant compliance costs and regulatory penalties; |
• | less developed and established local financial and banking infrastructure, which could make our products and services less accessible; |
• | reduced protection of intellectual property rights; |
• | inability to enforce contracts; |
• | difficulties and costs associated with staffing and managing foreign operations, including reliance on newly hired local personnel; |
• | tariffs and other trade barriers; |
• | currency and tax laws that may prevent or restrict the transfer of capital and profits among our various operations around the world; and |
• | time zone, language and cultural differences among personnel in different areas of the world. |
• | sales and marketing activities, including our interaction with, and solicitation of, customers; |
• | trading practices, including the types of investment products we may offer; |
• | the methods by which customers can fund accounts with us, including the recently implemented NFA ban on the use of credit cards to fund accounts in the United States; |
• | treatment of customer assets, including custody, control, safekeeping and, in certain countries, segregation of our customer funds and securities; |
• | maintaining specified minimum amounts of capital and limiting withdrawals of funds from our regulated operating subsidiaries; |
• | continuing education requirements for our employees; |
• | anti-money laundering practices; |
• | record keeping and reporting; and |
• | supervision regarding the conduct of directors, officers and employees. |
• | our sales and marketing activities; |
• | the use of a website specifically targeted to potential customers in a particular country; |
• | the minimum income level or financial sophistication of potential customers we may contact; |
• | our ability to have a physical presence in a particular country; or |
• | the types of services we may offer customers physically present in each country. |
• | future announcements concerning us or our competitors, including the announcement of acquisitions; |
• | changes in government regulations or in the status of our regulatory approvals or licensure; |
• | public perceptions of risks associated with our services or operations; |
• | developments in our industry; and |
• | general economic, market and political conditions and other factors that may be unrelated to our operating performance or the operating performance of our competitors. |
• | support more rapid expansion; |
• | develop new or enhanced services and products; |
• | respond to competitive pressures; |
• | acquire new businesses, products or technologies; or |
• | respond to unanticipated requirements. |
2015 | 2014 | ||||||||||||||
Quarter | High | Low | High | Low | |||||||||||
First Quarter | $ | 10.24 | $ | 7.98 | $ | 11.81 | $ | 7.82 | |||||||
Second Quarter | $ | 10.38 | $ | 9.29 | $ | 11.14 | $ | 7.58 | |||||||
Third Quarter | $ | 9.69 | $ | 6.98 | $ | 7.71 | $ | 6.01 | |||||||
Fourth Quarter | $ | 8.41 | $ | 7.14 | $ | 9.11 | $ | 6.18 |
Total | Maximum Number | ||||||||||||
Number of Shares | (or Approximate | ||||||||||||
Purchased as | Dollar Value) of | ||||||||||||
Part of Publicly | Shares that May | ||||||||||||
Total Number | Announced | Yet Be Purchased | |||||||||||
of Shares | Average Price | Plans or | Under the Plans or | ||||||||||
Period | Purchased(1) | Paid per Share(1) | Programs(1) | Programs(1)(2) | |||||||||
January 2015 | — | — | — | $ | 8,528,167 | ||||||||
February 2015 | — | — | — | $ | 8,528,167 | ||||||||
March 2015 | — | — | — | $ | 8,528,167 | ||||||||
April 2015 | — | — | — | $ | 8,528,167 | ||||||||
May 2015 | 21,132 | $ | 9.46 | 21,132 | $ | 8,327,753 | |||||||
June 2015 | 20,801 | 9.61 | 20,801 | $ | 8,127,346 | ||||||||
July 2015 | 24,334 | 8.94 | 24,334 | $ | 7,909,320 | ||||||||
August 2015 | 49,977 | 7.42 | 49,977 | $ | 7,537,261 | ||||||||
September 2015 | 150,023 | 7.67 | 150,023 | $ | 6,384,123 | ||||||||
October 2015 | 100,000 | 7.33 | 100,000 | $ | 5,648,902 | ||||||||
November 2015 | — | — | — | $ | 5,648,902 | ||||||||
December 2015 | 288,095 | 7.65 | 288,095 | $ | 3,439,347 |
(1) | In May 2013, the Company announced that its Board of Directors approved a share repurchase plan, which authorizes the expenditure of up to $15.0 million for the purchase of the Company’s common stock. |
Number of | |||||||||
securities remaining | |||||||||
Number of | Weighted-average | available for future | |||||||
securities to be | exercise price | issuance under | |||||||
issued upon exercise | of | equity compensation | |||||||
of outstanding | outstanding | plans (excluding | |||||||
options, warrants | options, warrants | securities reflected | |||||||
and rights | and rights | in column (a) | |||||||
Plan category | (a) | (b) | (c) | ||||||
Equity compensation plans approved by security holders | 2,540,052 | $ | 5.76 | 5,821,424 |
Selected Consolidated Statement of Income and Comprehensive Income | |||||||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2015(1) | 2014 (As Restated) | 2013(1) (As Restated) | 2012 | 2011 | |||||||||||||||
Consolidated Statement of Income and Comprehensive Income Data: | |||||||||||||||||||
Net Revenue | $ | 435,347 | $ | 369,189 | $ | 267,691 | $ | 151,804 | $ | 182,009 | |||||||||
Total operating expense | $ | 417,698 | $ | 317,592 | $ | 222,968 | $ | 150,218 | $ | 158,221 | |||||||||
Income before income tax expense | $ | 8,427 | $ | 45,450 | $ | 45,490 | $ | 1,142 | $ | 23,244 | |||||||||
Net Income applicable to GAIN Capital Holdings, Inc. | $ | 10,279 | $ | 24,877 | $ | 28,107 | $ | 2,621 | $ | 15,698 | |||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 0.22 | $ | 0.56 | $ | 0.76 | $ | 0.08 | $ | 0.46 | |||||||||
Diluted | $ | 0.22 | $ | 0.53 | $ | 0.71 | $ | 0.07 | $ | 0.40 | |||||||||
Weighted average common shares outstanding used in computing earnings per common share | |||||||||||||||||||
Basic | 47,601,979 | 40,561,644 | 36,551,246 | 34,940,800 | 34,286,840 | ||||||||||||||
Diluted | 48,379,051 | 43,214,895 | 39,632,878 | 37,880,208 | 38,981,792 | ||||||||||||||
Cash dividends per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.05 |
Selected Consolidated Balance Sheet | |||||||||||||||||||
(in thousands unless otherwise stated) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2015(1) | 2014 (As Restated) | 2013(1) | 2012 | 2011 | |||||||||||||||
Consolidated Balance Sheet Data: | |||||||||||||||||||
Cash and cash equivalents | $ | 171,888 | $ | 139,351 | $ | 39,871 | $ | 36,820 | $ | 60,221 | |||||||||
Cash and securities held for customers | $ | 920,621 | $ | 759,559 | $ | 739,318 | $ | 446,311 | $ | 310,447 | |||||||||
Receivables from brokers | $ | 121,153 | $ | 134,908 | $ | 227,630 | $ | 89,916 | $ | 85,401 | |||||||||
Total assets | $ | 1,424,815 | $ | 1,183,301 | $ | 1,112,560 | $ | 629,262 | $ | 504,930 | |||||||||
Payables to customers | $ | 920,621 | $ | 759,559 | $ | 739,318 | $ | 446,311 | $ | 310,447 | |||||||||
Notes payable | $ | — | $ | — | $ | — | $ | — | $ | 7,875 | |||||||||
Convertible senior notes | $ | 121,996 | $ | 68,367 | $ | 65,360 | $ | — | $ | — | |||||||||
Total shareholders' equity | $ | 306,084 | $ | 249,920 | $ | 226,723 | $ | 162,568 | $ | 163,974 |
(1) | There were material business combinations that occurred in 2013 and 2015, respectively. See Note 11 for further discussion. |
Year Ended December 31, | |||||||||||
2015 | 2014 (As Restated) | 2013 (As Restated) | |||||||||
Net income applicable to GAIN Capital Holdings, Inc. | $ | 10,279 | $ | 24,877 | $ | 28,107 | |||||
Add Back, net of tax: | |||||||||||
Acquisition expense | 2,199 | 2,539 | 1,171 | ||||||||
Restructuring | 2,716 | 1,680 | 289 | ||||||||
Integration | 21,510 | 1,792 | 1,252 | ||||||||
Other items(1) | — | 36 | (995 | ) | |||||||
Adjustment to fair value of contingent consideration | (4,369 | ) | — | — | |||||||
Bad Debt related to SNB event in January 2015 | 1,950 | — | — | ||||||||
Adjusted net income | $ | 34,285 | $ | 30,924 | $ | 29,824 | |||||
Adjusted earnings per common share | |||||||||||
Basic | $ | 0.72 | $ | 0.76 | $ | 0.82 | |||||
Diluted | $ | 0.71 | $ | 0.72 | $ | 0.75 |
Key Operating Metrics | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Retail | |||||||||||||||||||
OTC Trading Volume (billions) | $ | 3,985.8 | $ | 2,430.5 | $ | 1,796.7 | $ | 1,303.4 | $ | 1,574.0 | |||||||||
OTC Average Daily Volume (billions) | $ | 15.4 | $ | 9.4 | $ | 6.9 | $ | 5.0 | $ | 6.0 | |||||||||
Active OTC Accounts | 146,977 | 94,895 | 98,696 | 60,219 | 63,435 | ||||||||||||||
Client Assets (millions) | $ | 920.6 | $ | 759.6 | $ | 739.3 | $ | 446.3 | $ | 310.4 | |||||||||
Institutional | |||||||||||||||||||
Volume (billions) | $ | 2,671.9 | $ | 3,183.7 | $ | 2,599.6 | $ | 1,493.8 | $ | 445.7 | |||||||||
Average Daily Volume (billions) | $ | 10.3 | $ | 12.7 | $ | 10 | $ | 5.7 | $ | 1.7 | |||||||||
Futures | |||||||||||||||||||
Futures Contracts | 8,623,392 | 7,027,008 | 5,386,383 | 1,507,425 | — | ||||||||||||||
Futures Average Daily Contracts | 34,356 | 28,108 | 21,460 | 18,383 | — |
• | overall economic conditions and outlook; |
• | volatility of financial markets; |
• | legislative changes; and |
• | regulatory changes. |
• | the effectiveness of our sales activities; |
• | the competitiveness of our products and services; |
• | the effectiveness of our customer service team; and |
• | the effectiveness of our marketing activities. |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
REVENUE: | |||||||
Retail revenue | $ | 347,489 | $ | 292,778 | |||
Institutional revenue | 33,773 | 34,518 | |||||
Futures revenue | 45,427 | 36,160 | |||||
Other revenue | 8,487 | 4,904 | |||||
Total non-interest revenue | 435,176 | 368,360 | |||||
Interest revenue | 1,220 | 1,428 | |||||
Interest expense | 1,049 | 599 | |||||
Total net interest revenue | 171 | 829 | |||||
Net Revenue | $ | 435,347 | $ | 369,189 |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Total operating expenses (amounts in thousands) | $ | 417,698 | $ | 317,592 | |||
As a percentage of net revenue | 95.9 | % | 86.0 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Employee compensation and benefits (amounts in thousands) | $ | 106,581 | $ | 99,233 | |||
As a percentage of net revenue | 24.5 | % | 26.9 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Selling and marketing (amounts in thousands) | $ | 27,168 | $ | 20,213 | |||
As a percentage of net revenue | 6.2 | % | 5.5 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Referral fees (amounts in thousands) | $ | 103,523 | $ | 90,972 | |||
As a percentage of net revenue | 23.8 | % | 24.6 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Trading expenses (amounts in thousands) | $ | 31,914 | $ | 26,168 | |||
As a percentage of net revenue | 7.3 | % | 7.1 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
General and administrative (amounts in thousands) | $ | 55,067 | $ | 38,651 | |||
As a percentage of net revenue | 12.6 | % | 10.5 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Depreciation and amortization (amounts in thousands) | $ | 11,111 | $ | 6,610 | |||
As a percentage of net revenue | 2.6 | % | 1.8 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Purchased intangible amortization (amounts in thousands) | $ | 16,550 | $ | 8,080 | |||
As a percentage of net revenue | 3.8 | % | 2.2 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Communications and technology (amounts in thousands) | $ | 18,929 | $ | 15,567 | |||
As a percentage of net revenue | 4.3 | % | 4.2 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Bad debt (amounts in thousands) | $ | 7,462 | $ | 3,699 | |||
As a percentage of net revenue | 1.7 | % | 1.0 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Restructuring (amounts in thousands) | $ | 3,482 | $ | 2,334 | |||
As a percentage of net revenue | 0.8 | % | 0.6 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Integration (amounts in thousands) | $ | 33,092 | $ | 2,489 | |||
As a percentage of net revenue | 7.6 | % | 0.7 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Acquisition expense (amounts in thousands) | $ | 2,819 | $ | 3,526 | |||
As a percentage of net revenue | 0.6 | % | 1.0 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Interest on long term borrowings (amounts in thousands) | $ | 9,222 | $ | 6,147 | |||
As a percentage of net revenue | 2.1 | % | 1.7 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Income tax expense (amounts in thousands) | $ | (3,512 | ) | $ | 19,140 | ||
Effective tax rate | (41.7 | )% | 42.1 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Net revenue | $ | 351,472 | $ | 296,941 | |||
Employee compensation and benefits | 67,515 | 61,989 | |||||
Selling and marketing | 26,129 | 19,574 | |||||
Referral fees | 87,175 | 78,553 | |||||
Other operating expenses | 76,301 | 51,561 | |||||
Segment profit | $ | 94,352 | $ | 85,264 |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Net revenue | 35,072 | 35,413 | |||||
Employee compensation and benefits | 15,305 | 13,963 | |||||
Selling and marketing | 138 | 120 | |||||
Other operating expenses | 9,573 | 10,939 | |||||
Segment profit | $ | 10,056 | $ | 10,391 |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Net revenue | $ | 45,797 | $ | 36,016 | |||
Employee compensation and benefits | 10,634 | 8,918 | |||||
Selling and marketing | 901 | 519 | |||||
Referral fees | 16,348 | 12,419 | |||||
Other operating expenses | 13,960 | 11,585 | |||||
Segment profit | $ | 3,954 | $ | 2,575 |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Other revenue | $ | (3,716 | ) | $ | 819 | ||
Employee compensation and benefits | 13,127 | 14,362 | |||||
Other operating expenses | 11,038 | 10,001 | |||||
Loss | $ | (27,881 | ) | $ | (23,544 | ) |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
REVENUE: | |||||||
Retail revenue | $ | 292,778 | $ | 215,734 | |||
Institutional revenue | 34,518 | 28,005 | |||||
Futures revenue | 36,160 | 22,188 | |||||
Other revenue | 4,904 | 1,099 | |||||
Total non-interest revenue | 368,360 | 267,026 | |||||
Interest revenue | 1,428 | 821 | |||||
Interest expense | 599 | 156 | |||||
Total net interest revenue | 829 | 665 | |||||
Net Revenue | $ | 369,189 | $ | 267,691 |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Total operating expenses (amounts in thousands) | $ | 317,592 | $ | 222,968 | |||
As a percentage of net revenue | 86.0 | % | 83.3 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Employee compensation and benefits (amounts in thousands) | $ | 99,233 | $ | 74,607 | |||
As a percentage of net revenue | 26.9 | % | 27.9 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Selling and marketing (amounts in thousands) | $ | 20,213 | $ | 22,337 | |||
As a percentage of net revenue | 5.5 | % | 8.3 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Referral fees (amounts in thousands) | $ | 90,972 | $ | 52,623 | |||
As a percentage of net revenue | 24.6 | % | 19.7 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Trading expenses (amounts in thousands) | $ | 26,168 | $ | 18,164 | |||
As a percentage of net revenue | 7.1 | % | 6.8 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
General and administrative (amounts in thousands) | $ | 38,651 | $ | 26,558 | |||
As a percentage of net revenue | 10.5 | % | 9.9 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Depreciation and amortization (amounts in thousands) | $ | 6,610 | $ | 8,283 | |||
As a percentage of net revenue | 1.8 | % | 3.1 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Purchased intangible amortization (amounts in thousands) | $ | 8,080 | $ | 2,906 | |||
As a percentage of net revenue | 2.2 | % | 1.1 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Communication and technology (amounts in thousands) | $ | 15,567 | $ | 11,315 | |||
As a percentage of net revenue | 4.2 | % | 4.2 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Bad debt provision (amounts in thousands) | $ | 3,699 | $ | 1,501 | |||
As a percentage of net revenue | 1.0 | % | 0.6 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Restructuring (amounts in thousands) | $ | 2,334 | $ | 450 | |||
As a percentage of net revenue | 0.6 | % | 0.2 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Acquisition expense (amounts in thousands) | $ | 3,526 | $ | 1,824 | |||
As a percentage of net revenue | 1.0 | % | 0.7 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Integration (amounts in thousands) | $ | 2,489 | $ | 1,950 | |||
As a percentage of net revenue | 0.7 | % | 0.7 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Interest on long term borrowings (amounts in thousands) | $ | 6,147 | $ | 1,233 | |||
As a percentage of net revenue | 1.7 | % | 0.5 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Income tax expense/(benefit) (amounts in thousands) | $ | 19,140 | $ | 17,383 | |||
Effective tax rate | 42.1 | % | 38.2 | % |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Net revenue | $ | 296,941 | $ | 218,848 | |||
Employee compensation and benefits | 61,989 | 44,924 | |||||
Selling and marketing | 19,574 | 21,761 | |||||
Referral fees | 78,553 | 41,459 | |||||
Other operating expenses | 51,561 | 33,148 | |||||
Segment profit | $ | 85,264 | $ | 77,556 |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Net revenue | 35,413 | 29,213 | |||||
Employee compensation and benefits | 13,963 | 13,006 | |||||
Selling and marketing | 120 | 244 | |||||
Other operating expenses | 10,939 | 8,170 | |||||
Segment profit | $ | 10,391 | $ | 7,793 |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Net revenue | $ | 36,016 | $ | 23,360 | |||
Employee compensation and benefits | 8,918 | 3,399 | |||||
Selling and marketing | 519 | 332 | |||||
Referral fees | 12,419 | 11,164 | |||||
Other operating expenses | 11,585 | 8,948 | |||||
Segment profit | $ | 2,575 | $ | (483 | ) |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Other revenue | $ | 819 | $ | (3,729 | ) | ||
Employee compensation and benefits | 14,362 | 13,279 | |||||
Other operating expenses | 10,001 | 7,272 | |||||
Loss | $ | (23,544 | ) | $ | (24,280 | ) |
Entity Name | Cash | Accumulated Earnings | |||||
GAIN Capital-Forex.com U.K., Ltd. | $ | 230.6 | $ | 67.2 | |||
GAIN Capital UK Limited | 307.9 | 17.3 | |||||
GAIN Capital Japan Co., Ltd. | 48.8 | — | |||||
GAIN Capital Forex.com Australia, Pty. Ltd. | 9.0 | — | |||||
GAIN Capital-Forex.com Hong Kong, Ltd. | 4.4 | — | |||||
GAIN Capital-Forex.com Canada Ltd. | 6.5 | — | |||||
GAIN Capital Singapore Pte. Ltd. | 28.4 | 0.9 | |||||
GAIN Capital Australia Pty Ltd. | 20.0 | 1.3 | |||||
Galvan Research and Trading Ltd. | 0.7 | 4.7 | |||||
GAIN Global Markets, Inc. | 0.3 | — | |||||
Faraday Research LLP | 0.3 | 0.6 | |||||
GTX Bermuda Ltd. | 6.5 | 8.0 | |||||
Gain Global Markets Bermuda, Ltd. | 2.8 | — | |||||
Total | $ | 666.2 | $ | 100.0 |
Entity Name | Minimum Regulatory Capital Requirements | Capital Levels Maintained | Excess Net Capital | ||||||||
GAIN Capital Group, LLC | $ | 26.1 | $ | 36.3 | $ | 10.2 | |||||
GAIN Capital Securities, Inc. | 0.1 | 0.4 | 0.3 | ||||||||
GAIN Global Markets, Inc. | 0.2 | 0.3 | 0.1 | ||||||||
GAIN Capital Forex.com Australia, Pty. Ltd. | 0.7 | 2.4 | 1.7 | ||||||||
GAIN Capital Forex.com U.K., Ltd. | 27.8 | 61.6 | 33.8 | ||||||||
GAIN Capital-Forex.com Hong Kong, Ltd. | 1.9 | 3.9 | 2.0 | ||||||||
GAIN Capital-Forex.com Canada Ltd. | 0.2 | 1.4 | 1.2 | ||||||||
Forex.com Japan., Ltd. | 0.9 | 9.6 | 8.7 | ||||||||
GAIN Capital UK, Ltd. | 54.5 | 127.9 | 73.4 | ||||||||
GAIN Capital Singapore Pte, Ltd. | 0.6 | 7.4 | 6.8 | ||||||||
GAIN Capital Australia Pty Ltd. | 0.7 | 2.8 | 2.1 | ||||||||
Galvan Research and Trading, Ltd. | 0.7 | 4.3 | 3.6 | ||||||||
Global Assets Advisors, LLC | 0.1 | 1.2 | 1.1 | ||||||||
Total | $ | 114.5 | $ | 259.5 | $ | 145.0 |
As of | As of | ||||||
December 31, | December 31, | ||||||
2015 | 2014 | ||||||
Cash and cash equivalents | $ | 171.9 | $ | 139.4 | |||
Receivables from brokers | 121.2 | 134.9 | |||||
Net operating cash | 293.1 | 274.3 | |||||
Less: Minimum regulatory requirements | (114.5 | ) | (76.3 | ) | |||
Free Cash Available(1) | $ | 38.6 | $ | 118.0 |
(1) | Our Convertible Senior Notes due 2018 and 2020 are excluded given their long-dated maturity |
Year ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash provided by / (used for) operating activities | $ | 77,213 | $ | 136,788 | $ | (18,887 | ) | ||||
Cash used for investing activities | (16,081 | ) | (35,463 | ) | (9,807 | ) | |||||
Cash (used for) / provided by financing activities | (25,840 | ) | (5,938 | ) | 33,633 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2,755 | ) | 4,093 | (1,888 | ) | ||||||
INCREASE IN CASH AND CASH EQUIVALENTS | $ | 32,537 | $ | 99,480 | $ | 3,051 |
Less than | 1-3 | 3-5 | More than | ||||||||||||||||
Total | 1 Year | Years | Years | 5 Years | |||||||||||||||
Purchase Obligations | $ | 14,039 | $ | 12,781 | $ | 1,258 | $ | — | $ | — | |||||||||
Operating Leases | 39,538 | 8,587 | 10,575 | 8,158 | 12,218 | ||||||||||||||
Total | $ | 53,577 | $ | 21,368 | $ | 11,833 | $ | 8,158 | $ | 12,218 |
• | The volatility of our stock price; |
• | The expected life of the option; |
• | Risk free interest rates; and |
• | Expected dividend yield. |
• | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets; |
• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of management and directors of the Company; and |
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
Reports of Independent Registered Public Accounting Firms | F-2 |
Consolidated Balance Sheets as of December 31, 2015 and 2014 (As Restated) | F-4 |
Consolidated Statements of Income and Comprehensive Income for the Years Ended December 31, 2015, 2014 and 2013 (As Restated) | F-5 |
Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2015, 2014 and 2013 (As Restated) | F-6 |
Consolidated Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013 (As Restated) | F-8 |
Notes to Consolidated Financial Statements | F-10 |
Schedule I - Condensed Financial Information of GAIN Capital Holdings, Inc, (Parent Company Only) as of December 31, 2015 and 2014 and for each of the three years in the period ended December 31, 2015 (As Restated) | F-58 |
Exhibit No. | Description | |||
2.1† | Asset Purchase Agreement dated as of April 20, 2011 by and among GAIN Capital Group, LLC and Deutsche Bank AG, acting through is London Branch (Incorporated by reference to Exhibit 2.1 of the Registrant’s Form 10-Q for the quarter ended March 31, 2011, filed on May 16, 2011, No. 001-35008). | |||
2.2 | Stock Purchase Agreement, dated as of April 24, 2013, by and among GAIN Capital Holdings, Inc., Gary J. Tilkin and Global Futures & Forex, Ltd. (Incorporated by reference to Exhibit 2.1 of the Registrant’s Form 10-Q for the quarter ended March 31, 2013, filed on May 10, 2013, No. 001-35008). | |||
2.3 | Amended and Restated Stock Purchase Agreement, dated as of September 24, 2013, by and among GAIN Capital Holdings, Inc., Gary J. Tilkin and Global Futures & Forex, Ltd. (Incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K, filed on September 25, 2013, No. 001-35008). | |||
2.4 | Share Purchase Agreement, dated as of October 31, 2014, by and among GAIN Capital Holdings, Inc., City Index Group Limited, INCAP Gaming B.V. and IPGL Limited (Incorporated by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K/A, filed on January 12, 2015, No. 001-35008). | |||
3.1 | Third Amended and Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.3 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
3.2 | Certificate of Designation of Series A Participating Cumulative Preferred Stock of GAIN Capital Holdings, Inc. (Incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on April 10, 2013, No. 001-35008). | |||
3.3 | Amended and Restated By-laws (Incorporated by reference to Exhibit 3.2 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
4.1 | Specimen Certificate evidencing shares of common stock (Incorporated by reference to Exhibit 4.1 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
4.2 | Investor Rights Agreement, dated January 11, 2008, by and among the Company, the Investors and the Founding Stockholders, as defined therein (Incorporated by reference to Exhibit 4.2 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
4.3 | Amendment to Investor Rights Agreement, dated as of November 18, 2013, by and among the Company, the Investors named therein and the Founding Stockholder, as defined therein (Incorporated by reference to Exhibit 4.3 of the Registrant's Annual Report on Form 10-K for the year ended December 31, 2013, as filed on March 17, 2014, No. 001-35008). | |||
4.4 | Rights Agreement, dated as of April 9, 2013, between GAIN Capital Holdings, Inc. and Broadridge Corporate Issuer Solutions, Inc., as Rights Agent (Incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K, filed on April 10, 2013, No. 001-35008). | |||
4.5 | Indenture, dated as of November 27, 2013, between GAIN Capital Holdings, Inc. and The Bank of New York Mellon (Incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K, filed on November 27, 2013, No. 001-35008). |
4.6 | Indenture, dated as of April 1, 2015, between GAIN Capital Holdings, Inc. and The Bank of New York Mellon (Incorporated by reference to Exhibit 4.11 of the Registrant's Registration Statement on Form S-3, as amended, No. 333-208175). | |||
10.1 | 2015 Omnibus Incentive Compensation Plan (Incorporated by reference to Annex A of the Registrant’s Definitive Proxy Statement on Schedule 14A, filed on October 15, 2015, No. 001-35008).** | |||
10.2 | 2010 Omnibus Incentive Compensation Plan (Incorporated by reference to Exhibit 10.2 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.3 | 2011 Employee Stock Purchase Plan (Incorporated by reference to Exhibit 10.3 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.4 | Nonqualified Deferred Compensation Plan (Incorporated by reference to Exhibit 10.3 of the Registrant’s Form 10-K for the year ended December 31, 2010, filed on March 30, 2011, No. 001-35008).** | |||
10.5 | Form of Incentive Stock Option Agreement (Incorporated by reference to Exhibit 10.4 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). ** | |||
10.6 | Form of Nonqualified Stock Option Agreement (Incorporated by reference to Exhibit 10.5 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). ** | |||
10.7 | Form of Restricted Stock Agreement (Incorporated by reference to Exhibit 10.6 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). ** | |||
10.8 | Form of Restricted Stock Unit Agreement (Time Vesting) (Incorporated by reference to Exhibit 10.7 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.9 | Form of Restricted Stock Unit Agreement (Performance Vesting) (Incorporated by reference to Exhibit 10.8 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.10 | Form of Indemnification Agreement with the Company’s Non-Employee Directors (Incorporated by reference to Exhibit 10.10 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.11 | Amended and Restated 2006 Equity Compensation Plan, effective December 31, 2006 (Incorporated by reference to Exhibit 10.60 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.12 | Amendment No. 2007-1 to the GAIN Capital Holdings, Inc. 2006 Equity Compensation Plan (Incorporated by reference to Exhibit 10.61 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.13 | Amendment No. 2008-1 to the GAIN Capital Holdings, Inc. 2006 Equity Compensation Plan (Incorporated by reference to Exhibit 10.62 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.14 | Amendment No. 2010-1 to the GAIN Capital Holdings, Inc. 2006 Equity Compensation Plan (Incorporated by reference to Exhibit 10.63 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632).** | |||
10.15† | FX Prime Brokerage Master Agreement, dated as of December 6, 2006, by and between GAIN Capital Group, LLC and The Royal Bank of Scotland, plc. (Incorporated by reference to Exhibit 10.24 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.16† | FX Prime Brokerage Agreement, dated as of July 8, 2005, by and between UBS AG and GAIN Capital, Inc. (Incorporated by reference to Exhibit 10.25 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.17† | Foreign Exchange Prime Brokerage Agency Agreement, dated as of July 12, 2006, by and between GAIN Capital Group, LLC and The Royal Bank of Scotland, plc. (Incorporated by reference to Exhibit 10.26 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.18† | Foreign Exchange Prime Brokerage Agreement, dated October 18, 2005, by and between Deutsche Bank AG, London Branch and GCAM, LLC (Incorporated by reference to Exhibit 10.27 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.19 | Amendment to Foreign Exchange Prime Brokerage Agreement, dated January 26, 2006, by and between Deutsche Bank AG, London Branch and GCAM, LLC (Incorporated by reference to Exhibit 10.28 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.20 | Form of ISDA Master Agreement, 1992 edition (Incorporated by reference to Exhibit 10.29 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.21 | Form of Introducing Broker Agreement (Incorporated by reference to Exhibit 10.30 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.22 | Form of Agreement for White Label Services (Incorporated by reference to Exhibit 10.31 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.23 | Lease and Lease Agreement, dated August 18, 2009, by and between S/K Bed One Associates LLC and GAIN Capital Holdings, Inc. (Incorporated by reference to Exhibit 10.37 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.24† | License Agreement, dated August 9, 2007, by and between GAIN Capital Group, LLC and MetaQuotes Software Corp. (Incorporated by reference to Exhibit 10.43 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.25† | Agreement, dated November 22, 2004, by and between esignal, a division of Interactive Data Corporation, and GAIN Capital, Inc. (Incorporated by reference to Exhibit 10.44 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.26 | Form of ISDA Master Agreement, 2002 edition (Incorporated by reference to Exhibit 10.49 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.27 | Executive Employment Agreement, dated May 5, 2015, by and between GAIN Capital Holdings, Inc. and Glenn Stevens (Incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, filed on August 10, 2015, No. 001-35008).** | |||
10.28 | Executive Employment Agreement, dated May 5, 2015, by and between GAIN Capital Holdings, Inc. and Samantha Roady (Incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, filed on August 10, 2015, No. 001-35008).** | |||
10.29 | Executive Employment Agreement, dated May 5, 2015, by and between GAIN Capital Holdings, Inc. and Diego Rotsztain (Incorporated by reference to Exhibit 10.3 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, filed on August 10, 2015, No. 001-35008).** | |||
10.30 | Executive Employment Agreement, dated May 5, 2015, by and between GAIN Capital Holdings, Inc. and Jeffrey Scott (Incorporated by reference to Exhibit 10.4 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, filed on August 10, 2015, No. 001-35008).** | |||
10.31* | Service Agreement, dated as of March 9, 2011, by and between City Index Limited and Nigel Rose.** | |||
10.32 | Asset Purchase Agreement, dated as of October 5, 2010, by and among GAIN Capital Group, LLC, GAIN Capital-Forex.com U.K., and GAIN Capital Forex.com Japan, Co. Ltd., and Capital Market Services, LLC, Capital Market Services UK Ltd., Capital Market Services International - BM, Ltd., and CMS Japan K.K. (Incorporated by reference to Exhibit 10.64 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.33 | Amendment No. 1 to Asset Purchase Agreement, dated as of November 23, 2010, by and among GAIN Capital Group, LLC, GAIN Capital-Forex.com U.K., and GAIN Capital Forex.com Japan, Co. Ltd., and Capital Market Services, LLC, Capital Market Services UK Ltd., Capital Market Services International - BM, Ltd., and CMS Japan K.K. (Incorporated by reference to Exhibit 10.65 of the Registrant’s Registration Statement on Form S-1, as amended, No. 333-161632). | |||
10.34 | Stock Purchase Agreement between optionsXpress Holdings, Inc. and GAIN Capital Group, LLC dated as of June 27, 2012 (Incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, filed August 9, 2012, No. 001-35008). | |||
10.35 | Stockholders’ Agreement, dated as of April 24, 2013, by and among GAIN Capital Holdings, Inc. and Gary J. Tilkin (Incorporated by reference to Exhibit 10.1 of the Registrant’s Form 10-Q for the quarter ended March 31, 2013, filed on May 10, 2013, No. 001-35008). | |||
10.36 | Amended and Restated Stockholders’ Agreement, dated as of September 24, 2013, by and between GAIN Capital Holdings, Inc. and Gary J. Tilkin (Incorporated by reference to Exhibit 10.1 of the Registrant’s Form 10-Q for the quarter ended September 30, 2013, filed on November 12, 2013, No. 001-35008). | |||
10.37 | Loan and Security Agreement, dated as of September 24, 2013, by and between GAIN Capital Holdings, Inc. and Gary J. Tilkin (Incorporated by reference to Exhibit 10.2 of the Registrant’s Form 10-Q for the quarter ended September 30, 2013, filed on November 12, 2013, No. 001-35008). | |||
10.38 | Membership Interest Purchase Agreement, dated as of March 7, 2014, by and among GAIN Capital Holdings, Inc., Global Asset Advisors, LLC, Lucky Good Dog, L.L.C., Glenn A. Swanson and Andrew W. Daniels (Incorporated by reference to Exhibit 10.1 of the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed on May 12, 2014, No. 001-35008). | |||
10.39 | Membership Interest Purchase Agreement, dated as of March 7, 2014, by and among GAIN Capital Holdings, Inc., Top Third Ag Marketing LLC, Global Asset Advisors, LLC, Lucky Good Dog, L.L.C., Glenn A. Swanson and Mark Gold (Incorporated by reference to Exhibit 10.2 of the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed on May 12, 2014, No. 001-35008). | |||
10.40 | Asset Purchase Agreement, dated as of July 10, 2014, between GAIN GTX Bermuda, Ltd., GAIN Capital Holdings, Inc. and Valaquenta Intellectual Properties Limited (Incorporated by reference to Exhibit 10.1 of the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, filed on November 11, 2014, No. 001-35008). | |||
10.41 | Asset Purchase Agreement, dated as of July 10, 2014, between GAIN GTX Bermuda, Ltd., GAIN Capital Holdings, Inc. and Forexster Limited (Incorporated by reference to Exhibit 10.2 of the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, filed on November 11, 2014, No. 001-35008). | |||
10.42 | Stockholders' Agreement, effective as of October 31, 2104, among GAIN Capital Holdings, Inc., City Index Group Limited and the other parties identified as "Stockholders" therein (Incorporated by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K/A, filed on January 12, 2015, No. 001-35008). | |||
10.43 | Form of Registration Rights Agreement among GAIN Capital Holdings, Inc., City Index Group Limited, INCAP Gaming B.V. and the other parties identified as "Investors" therein (Incorporated by reference to Exhibit 10.2 of the Registrant's Current Report on Form 8-K/A, filed on January 12, 2015, No. 001-35008). | |||
10.44 | Letter Agreement, dated as of December 10, 2014, by and among GAIN Capital Holdings, Inc., VantagePoint Venture Partners IV (Q), L.P., VantagePoint Venture Partners IV, L.P., VantagePoint Venture Partners IV Principals Fund, L.P. and VP New York Venture Partners, L.P. | |||
10.45* | Separation and Release Agreement, dated as of October 1, 2015, by and between GAIN Capital Holdings, Inc. and Jason Emerson.** | |||
21.1* | Subsidiaries of the Registrant. | |||
23.1* | Consent of Deloitte & Touche LLP | |||
23.2* | Consent of BDO LLP | |||
31.1* | Certification of Chief Executive Officer pursuant to rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | |||
31.2* | Certification of Chief Financial Officer pursuant to rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | |||
32.1* | Certification of Chief Executive Officer as required by section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* | Certification of Chief Financial Officer as required by section 906 of the Sarbanes-Oxley Act of 2002. | |||
101.INS+ | XBRL Instance | |||
101.SCH+ | XBRL Taxonomy Extension Schema | |||
101.CAL+ | XBRL Taxonomy Extension Calculation | |||
101.DEF+ | XBRL Taxonomy Extension Definition | |||
101.LAB+ | XBRL Taxonomy Extension Labels | |||
101.PRE+ | XBRL Taxonomy Extension Presentation | |||
* | Filed herewith. |
** | Compensation related contract. |
† | Confidential treatment requested. Confidential materials omitted and filed separately with the Securities and Exchange Commission. |
+ | XBRL (Extensible Business Reporting Language) information is furnished and not filed, and is not a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
GAIN CAPITAL HOLDINGS, INC. | |
By: | /s/ Glenn H. Stevens |
Glenn H. Stevens | |
President and Chief Executive Officer (Principal Executive Officer) |
Signature | Title | Date | ||
/s/ Glenn H. Stevens | President, Chief Executive Officer and Director (Principal Executive Officer) | March 17, 2016 | ||
Glenn H. Stevens | ||||
/s/ Nigel Rose | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | March 17, 2016 | ||
Nigel Rose | ||||
/s/ Peter Quick | Chairman of the Board of Directors | March 17, 2016 | ||
Peter Quick | ||||
/s/ Joseph A. Schenk | Director | March 17, 2016 | ||
Joseph A. Schenk | ||||
/s/ Christopher W. Calhoun | Director | March 17, 2016 | ||
Christopher W. Calhoun | ||||
/s/ Thomas Bevilacqua | Director | March 17, 2016 | ||
Thomas Bevilacqua | ||||
/s/ Christopher S. Sugden | Director | March 17, 2016 | ||
Christopher S. Sugden |
Consolidated Financial Statements: | |
Reports of Independent Registered Public Accounting Firms | F-2 |
Consolidated Balance Sheets as of December 31, 2015 and 2014 (As Restated) | F-4 |
Consolidated Statements of Income and Comprehensive Income for the Years Ended December 31, 2015, 2014 and 2013 (As Restated) | F-5 |
Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2015, 2014 and 2013 (As Restated) | F-6 |
Consolidated Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013 (As Restated) | F-8 |
Notes to Consolidated Financial Statements | F-10 |
Financial Statement Schedule: | |
Schedule I - Condensed Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) as of December 31, 2015 and 2014 and for each of the three years in the period ended December 31, 2015 (As Restated) | F-58 |
As of December 31, 2015 | As of December 31, 2014 (As Restated) | ||||||
ASSETS: | |||||||
Cash and cash equivalents | $ | 171,888 | $ | 139,351 | |||
Cash and securities held for customers | 920,621 | 759,559 | |||||
Receivables from brokers, of which ($12,568) and $717, respectively, are open contracts at fair value | 121,153 | 134,908 | |||||
Prepaid assets | 7,835 | 2,537 | |||||
Property and equipment, net of accumulated depreciation of ($44,750) and ($31,544), respectively | 30,367 | 18,796 | |||||
Intangible assets, net of accumulated amortization of ($47,906) and ($12,670), respectively | 91,512 | 60,806 | |||||
Goodwill | 34,017 | 33,579 | |||||
Other assets, net of allowance for doubtful accounts of ($6,832) and ($4,555), respectively | 47,422 | 33,765 | |||||
Total assets | $ | 1,424,815 | $ | 1,183,301 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||
Liabilities | |||||||
Payables to customers, of which ($143,918) and ($102,722), respectively, are open contracts at fair value | $ | 920,621 | $ | 759,559 | |||
Accrued compensation and benefits | 12,362 | 16,912 | |||||
Accrued expenses and other liabilities | 51,638 | 76,195 | |||||
Income tax payable | 1,068 | 1,010 | |||||
Convertible senior notes | 121,996 | 68,367 | |||||
Total liabilities | $ | 1,107,685 | $ | 922,043 | |||
Commitments and contingent liabilities (See Note 18) | |||||||
Redeemable non-controlling interests | $ | 11,046 | $ | 11,338 | |||
Shareholders’ equity | |||||||
Common stock ($0.00001 par value; 120 million shares authorized, 52,072,884 shares issued and 48,771,015 shares outstanding as of December 31, 2015; 60 million shares authorized, 45,582,066 shares issued and 42,934,559 shares outstanding as of December 31, 2014) | $ | — | $ | — | |||
Accumulated other comprehensive loss | (5,865 | ) | (1,513 | ) | |||
Additional paid-in capital | 212,981 | 148,378 | |||||
Treasury stock, at cost (3,301,869 shares at December 31, 2015 and 2,647,507 at December 31, 2014, respectively) | (21,808 | ) | (16,720 | ) | |||
Retained earnings | 120,776 | 119,775 | |||||
Total shareholders’ equity | 306,084 | 249,920 | |||||
Total liabilities and shareholders’ equity | $ | 1,424,815 | $ | 1,183,301 |
For the Fiscal Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
(As Restated) | (As Restated) | ||||||||||
REVENUE: | |||||||||||
Retail revenue | $ | 347,489 | $ | 292,778 | $ | 215,734 | |||||
Institutional revenue | 33,773 | 34,518 | 28,005 | ||||||||
Futures revenue | 45,427 | 36,160 | 22,188 | ||||||||
Other revenue | 8,487 | 4,904 | 1,099 | ||||||||
Total non-interest revenue | 435,176 | 368,360 | 267,026 | ||||||||
Interest revenue | 1,220 | 1,428 | 821 | ||||||||
Interest expense | 1,049 | 599 | 156 | ||||||||
Total net interest revenue | 171 | 829 | 665 | ||||||||
Net revenue | $ | 435,347 | $ | 369,189 | $ | 267,691 | |||||
EXPENSES: | |||||||||||
Employee compensation and benefits | $ | 106,581 | $ | 99,233 | $ | 74,607 | |||||
Selling and marketing | 27,168 | 20,213 | 22,337 | ||||||||
Referral fees | 103,523 | 90,972 | 52,623 | ||||||||
Trading expenses | 31,914 | 26,168 | 18,164 | ||||||||
General and administrative | 55,067 | 38,651 | 26,558 | ||||||||
Depreciation and amortization | 11,111 | 6,610 | 8,283 | ||||||||
Purchased intangible amortization | 16,550 | 8,080 | 2,906 | ||||||||
Communications and technology | 18,929 | 15,567 | 11,315 | ||||||||
Bad debt provision | 7,462 | 3,699 | 1,501 | ||||||||
Acquisition expenses | 2,819 | 3,526 | 1,824 | ||||||||
Restructuring expenses | 3,482 | 2,334 | 450 | ||||||||
Integration expenses | 33,092 | 2,489 | 1,950 | ||||||||
Impairment of investment | — | 50 | 450 | ||||||||
Total operating expense | 417,698 | 317,592 | 222,968 | ||||||||
OPERATING PROFIT | 17,649 | 51,597 | 44,723 | ||||||||
Interest expense on long term borrowings | 9,222 | 6,147 | 1,233 | ||||||||
Gain on extinguishment of debt | — | — | 2,000 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 8,427 | 45,450 | 45,490 | ||||||||
Income tax (benefit)/expense | (3,512 | ) | 19,140 | 17,383 | |||||||
NET INCOME | 11,939 | 26,310 | 28,107 | ||||||||
Net income attributable to non-controlling interest | 1,660 | 1,433 | — | ||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 10,279 | 24,877 | 28,107 | ||||||||
Other comprehensive (loss)/income: | |||||||||||
Foreign currency translation adjustment | (4,352 | ) | (4,089 | ) | 1,327 | ||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 5,927 | $ | 20,788 | $ | 29,434 | |||||
Earnings per common share: | |||||||||||
Basic | $ | 0.22 | $ | 0.56 | $ | 0.76 | |||||
Diluted | $ | 0.22 | $ | 0.53 | $ | 0.71 | |||||
Weighted average common shares outstanding used in computing earnings per common share: | |||||||||||
Basic | 47,601,979 | 40,561,644 | 36,551,246 | ||||||||
Diluted | 48,379,051 | 43,214,895 | 39,632,878 |
Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total | |||||||||||||||||||||
Shares (1) | Amount | |||||||||||||||||||||||||
BALANCE—January 1, 2013 (As Restated) | 34,924,095 | $ | — | $ | (8,280 | ) | $ | 85,009 | $ | 84,590 | $ | 1,249 | $ | 162,568 | ||||||||||||
Exercise of options | 1,394,975 | — | — | 2,539 | — | — | 2,539 | |||||||||||||||||||
Issuance of common stock | 3,625,721 | — | — | 34,771 | — | — | 34,771 | |||||||||||||||||||
Conversion of restricted stock into common stock | 339,686 | — | — | — | — | — | — | |||||||||||||||||||
Employee stock purchase plan | 75,191 | — | — | 302 | — | — | 302 | |||||||||||||||||||
Repurchase of shares | (934,234 | ) | — | (7,189 | ) | — | — | — | (7,189 | ) | ||||||||||||||||
Stock compensation expense | — | — | — | 2,975 | — | — | 2,975 | |||||||||||||||||||
Tax benefit of stock options exercises | — | — | — | 1,026 | — | — | 1,026 | |||||||||||||||||||
Other | — | — | — | (62 | ) | (154 | ) | — | (216 | ) | ||||||||||||||||
Convertible senior note issuance | — | — | — | 12,147 | — | — | 12,147 | |||||||||||||||||||
Tax effect of convertible senior note | — | — | — | (4,308 | ) | — | — | (4,308 | ) | |||||||||||||||||
Dividends declared ($0.20 dividend per share) | — | — | — | — | (7,326 | ) | — | (7,326 | ) | |||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 1,327 | 1,327 | |||||||||||||||||||
Net income applicable to Gain Capital Holdings, Inc. | — | — | — | — | 28,107 | — | 28,107 | |||||||||||||||||||
BALANCE—January 1, 2014 (As Restated) | 39,425,434 | $ | — | $ | (15,469 | ) | $ | 134,399 | $ | 105,217 | $ | 2,576 | $ | 226,723 |
Exercise of options | 719,719 | — | — | 2,087 | — | — | 2,087 | |||||||||||||||||||
Issuance of common stock | 978,736 | — | — | 6,493 | — | — | 6,493 | |||||||||||||||||||
Conversion of restricted stock into common stock | 1,863,396 | — | — | — | — | — | — | |||||||||||||||||||
Employee stock purchase plan | 98,606 | — | — | 740 | — | — | 740 | |||||||||||||||||||
Repurchase of shares | (151,332 | ) | — | (1,251 | ) | — | — | — | (1,251 | ) | ||||||||||||||||
Stock compensation expense | — | — | — | 3,452 | — | — | 3,452 | |||||||||||||||||||
Tax benefit of stock options exercises | — | — | — | 1,221 | — | — | 1,221 | |||||||||||||||||||
Other | — | — | — | (14 | ) | (73 | ) | — | (87 | ) | ||||||||||||||||
Adjustment to the redemption value of non-controlling interests | — | — | — | — | (2,107 | ) | — | (2,107 | ) | |||||||||||||||||
Dividends declared ($0.20 dividend per share) | — | — | — | — | (8,139 | ) | — | (8,139 | ) | |||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (4,089 | ) | (4,089 | ) | |||||||||||||||||
Net income applicable to Gain Capital Holdings, Inc. | — | — | — | — | 24,877 | — | 24,877 | |||||||||||||||||||
BALANCE—January 1, 2015 (As Restated) | 42,934,559 | $ | — | $ | (16,720 | ) | $ | 148,378 | $ | 119,775 | $ | (1,513 | ) | $ | 249,920 |
Exercise of options | 638,241 | — | — | 2,386 | — | — | 2,386 | |||||||||||||||||||
Issuance of common stock | 5,319,149 | — | — | 45,100 | — | — | 45,100 | |||||||||||||||||||
Conversion of restricted stock into common stock | 440,651 | — | — | — | — | — | — | |||||||||||||||||||
Employee stock purchase plan | 92,777 | — | — | 789 | — | — | 789 | |||||||||||||||||||
Repurchase of shares | (654,362 | ) | — | (5,088 | ) | — | — | — | (5,088 | ) | ||||||||||||||||
Stock compensation expense | — | — | — | 3,680 | — | — | 3,680 | |||||||||||||||||||
Tax benefit of stock options exercises | — | — | — | 1,140 | — | — | 1,140 | |||||||||||||||||||
Convertible senior note issuance | — | — | — | 15,348 | — | — | 15,348 | |||||||||||||||||||
Tax effect of convertible senior note | — | — | — | (3,840 | ) | — | — | (3,840 | ) | |||||||||||||||||
Other | — | — | — | (56 | ) | — | (56 | ) | ||||||||||||||||||
Adjustment to the redemption value of put options related to non-controlling interests | — | — | — | — | 308 | — | 308 | |||||||||||||||||||
Dividends declared ($0.20 dividend per share) | — | — | — | — | (9,530 | ) | — | (9,530 | ) | |||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (4,352 | ) | (4,352 | ) | |||||||||||||||||
Net income applicable to Gain Capital Holdings, Inc. | — | — | — | — | 10,279 | — | 10,279 | |||||||||||||||||||
BALANCE—December 31, 2015 | 48,771,015 | $ | — | $ | (21,808 | ) | $ | 212,981 | $ | 120,776 | $ | (5,865 | ) | $ | 306,084 |
For the Fiscal Years Ended December 31, | |||||||||||
2015 | 2014 (As Restated) | 2013 (As Restated) | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 11,939 | $ | 26,310 | $ | 28,107 | |||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | |||||||||||
Loss / (gain) on foreign currency exchange rates | 2,432 | (1,618 | ) | 3,641 | |||||||
Depreciation and amortization | 27,661 | 14,690 | 11,189 | ||||||||
Non-cash integration costs | 26,827 | 1,162 | 1,163 | ||||||||
Deferred tax (benefit)/expense | (12,355 | ) | 5,108 | (5,431 | ) | ||||||
Amortization of deferred financing costs | 354 | 354 | — | ||||||||
Bad debt provision | 7,462 | 3,699 | 1,501 | ||||||||
Impairment of cost method investment | — | 50 | 450 | ||||||||
Convertible senior note discount amortization | 3,624 | 2,150 | 175 | ||||||||
Gain on extinguishment of debt | — | — | (2,000 | ) | |||||||
Stock compensation expense | 3,680 | 3,452 | 2,975 | ||||||||
Adjustment to fair value of contingent consideration | (6,722 | ) | — | — | |||||||
Changes in operating assets and liabilities: | |||||||||||
Cash and securities held for customers | 101,325 | (9,260 | ) | (74,769 | ) | ||||||
Receivables from brokers | 45,576 | 94,933 | (78,556 | ) | |||||||
Prepaid assets | (1,445 | ) | 2,730 | 318 | |||||||
Other assets | (6,229 | ) | (8,495 | ) | (1,075 | ) | |||||
Payables to customers | (101,325 | ) | 9,260 | 74,769 | |||||||
Accrued compensation and benefits | (7,454 | ) | 4,497 | 6,375 | |||||||
Accrued expenses and other liabilities | (18,748 | ) | (2,422 | ) | 7,867 | ||||||
Income tax payable | 611 | (9,812 | ) | 4,414 | |||||||
Cash provided by / (used for) operating activities | 77,213 | 136,788 | (18,887 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | (19,676 | ) | (8,759 | ) | (6,187 | ) | |||||
Sale of treasury bills | — | 614 | 599 | ||||||||
Intangible asset purchases | — | (12,400 | ) | — | |||||||
Funding of acquisitions, net of cash acquired | (3,258 | ) | (14,918 | ) | (4,219 | ) | |||||
Cash received relating to acquisitions | 7,612 | — | — | ||||||||
Purchase of investment | (759 | ) | — | — | |||||||
Cash used for investing activities | (16,081 | ) | (35,463 | ) | (9,807 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Contractual payments for acquisitions | (13,893 | ) | — | (2,419 | ) | ||||||
Proceeds from issuance of convertible senior note, net | — | — | 77,900 | ||||||||
Principal payment on notes payable | — | — | (31,200 | ) | |||||||
Proceeds from exercise of stock options | 2,386 | 2,087 | 2,539 | ||||||||
Proceeds from employee stock purchase plan | 789 | 740 | 302 | ||||||||
Purchase of treasury stock | (5,088 | ) | (1,251 | ) | (7,189 | ) | |||||
Tax benefit from employee stock option exercises | 1,140 | 1,221 | 1,026 | ||||||||
Dividend payments | (9,530 | ) | (8,139 | ) | (7,326 | ) | |||||
Distributions to non-controlling interest holders | (1,644 | ) | (596 | ) | — |
Cash (used for) / provided by financing activities | $ | (25,840 | ) | $ | (5,938 | ) | $ | 33,633 | |||
Effect of exchange rate changes on cash and cash equivalents | (2,755 | ) | 4,093 | (1,888 | ) | ||||||
INCREASE IN CASH AND CASH EQUIVALENTS | 32,537 | 99,480 | 3,051 | ||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | $ | 139,351 | $ | 39,871 | $ | 36,820 | |||||
CASH AND CASH EQUIVALENTS—End of year | $ | 171,888 | $ | 139,351 | $ | 39,871 | |||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash (paid) / received during the year for: | |||||||||||
Interest | (5,065 | ) | (3,373 | ) | (655 | ) | |||||
Taxes | $ | (9,861 | ) | $ | (13,151 | ) | $ | (8,376 | ) | ||
Non-cash investing activities: | |||||||||||
Purchase of fixed assets included in accrued expense and other liabilities | $ | — | $ | 701 | $ | — | |||||
Non-cash financing activities: | |||||||||||
Convertible senior notes issued as consideration for business acquisitions | $ | 65,000 | $ | — | $ | — | |||||
Deferred taxes related to convertible senior notes | $ | (3,840 | ) | $ | — | $ | (4,308 | ) | |||
Senior loan issued by seller | $ | — | $ | — | $ | 33,200 | |||||
Common stock issued as consideration for asset and business acquisitions | $ | 45,100 | $ | 6,493 | $ | 34,771 | |||||
Adjustment to redemption value of non-controlling interests | $ | 308 | $ | (2,107 | ) | $ | — |
• | Valuation of assets and liabilities requiring fair value estimates; |
• | Certain accruals; |
• | The allowance for doubtful accounts; |
• | The realization of deferred taxes; |
• | The carrying amount of goodwill and other intangible assets; |
• | The useful lives of intangible assets and other long-lived assets with finite lives; |
• | Incentive based compensation accruals and valuation of share-based payment arrangements; |
• | Transfer pricing; |
• | The recognition and measurement of uncertain tax positions; and |
• | Other matters that affect the reported amounts and disclosure of contingencies in the consolidated financial statements. |
Balance as of January 1, 2013 | $ | (148 | ) |
Addition to provision | (1,501 | ) | |
Amounts written off | 491 | ||
Balance as of December 31, 2013 | (1,158 | ) | |
Addition to provision | (3,699 | ) | |
Amounts written off | 302 | ||
Balance as of December 31, 2014 | (4,555 | ) | |
Addition to provision | (7,462 | ) | |
Amounts written off | 5,185 | ||
Balance as of December 31, 2015 | $ | (6,832 | ) |
As of December 31, 2014 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | As Restated | ||||||||||||
ASSETS: | |||||||||||||||
Cash and cash equivalents | $ | 139,403 | $ | — | $ | (52 | ) | $ | 139,351 | ||||||
Goodwill | 34,567 | (988 | ) | — | 33,579 | ||||||||||
Other assets, net of allowance for doubtful accounts(1) | 35,311 | 917 | (2,463 | ) | 33,765 | ||||||||||
Total assets | $ | 1,185,887 | $ | (71 | ) | $ | (2,515 | ) | $ | 1,183,301 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||||||||||
Liabilities | |||||||||||||||
Accrued expenses and other liabilities | 64,476 | 12,170 | (451 | ) | 76,195 | ||||||||||
Income tax payable | 1,470 | 1,603 | (2,063 | ) | 1,010 | ||||||||||
Total liabilities | $ | 910,784 | $ | 13,773 | $ | (2,514 | ) | $ | 922,043 | ||||||
Redeemable non-controlling interests | 10,209 | — | 1,129 | 11,338 | |||||||||||
Shareholders’ equity | |||||||||||||||
Accumulated other comprehensive loss | (2,054 | ) | 541 | — | (1,513 | ) | |||||||||
Additional paid-in capital | 152,684 | (4,306 | ) | — | 148,378 | ||||||||||
Retained earnings | 130,984 | (10,079 | ) | (1,130 | ) | 119,775 | |||||||||
Total shareholders’ equity | 264,894 | (13,844 | ) | (1,130 | ) | 249,920 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,185,887 | $ | (71 | ) | $ | (2,515 | ) | $ | 1,183,301 |
For the Fiscal Year Ended December 31, 2014 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | ||||||||||||
REVENUE: | |||||||||||||||
Retail revenue(1) | $ | 293,122 | $ | — | $ | (344 | ) | $ | 292,778 | ||||||
Institutional revenue(1) | 34,518 | — | — | 34,518 | |||||||||||
Futures revenue(1) | 36,160 | — | — | 36,160 | |||||||||||
Total non-interest revenue | 368,704 | — | (344 | ) | 368,360 | ||||||||||
Net revenue | $ | 369,533 | $ | — | $ | (344 | ) | $ | 369,189 | ||||||
EXPENSES: | |||||||||||||||
Employee compensation and benefits | $ | 99,485 | $ | — | $ | (252 | ) | $ | 99,233 | ||||||
Referral fees | 91,092 | — | (120 | ) | 90,972 | ||||||||||
Trading expenses | 26,285 | — | (117 | ) | 26,168 | ||||||||||
General and administrative | 38,509 | — | 142 | 38,651 | |||||||||||
Depreciation and amortization | 7,125 | — | (515 | ) | 6,610 | ||||||||||
Restructuring expenses | 1,214 | — | 1,120 | 2,334 | |||||||||||
Total operating expense | 317,334 | — | 258 | 317,592 | |||||||||||
OPERATING PROFIT | 52,199 | — | (602 | ) | 51,597 | ||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 46,052 | — | (602 | ) | 45,450 | ||||||||||
Income tax (benefit)/expense | 12,993 | 6,200 | (53 | ) | 19,140 | ||||||||||
NET INCOME | 33,059 | (6,200 | ) | (549 | ) | 26,310 | |||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 31,626 | (6,200 | ) | (549 | ) | 24,877 | |||||||||
Other comprehensive (loss)/income: | |||||||||||||||
Foreign currency translation adjustment | (4,630 | ) | 541 | (4,089 | ) | ||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 26,996 | $ | (5,659 | ) | $ | (549 | ) | $ | 20,788 | |||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.76 | $ | (0.16 | ) | $ | (0.04 | ) | $ | 0.56 | |||||
Diluted | $ | 0.71 | $ | (0.14 | ) | $ | (0.04 | ) | $ | 0.53 |
For the Fiscal Year Ended December 31, 2013 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | As Restated | ||||||||||||
REVENUE: | |||||||||||||||
Retail revenue(1) | $ | 215,667 | $ | — | $ | 67 | $ | 215,734 | |||||||
Institutional revenue(1) | 28,005 | — | — | 28,005 | |||||||||||
Futures revenue(1) | 22,188 | — | — | 22,188 | |||||||||||
Total non-interest revenue | 266,959 | — | 67 | 267,026 | |||||||||||
Net revenue | $ | 267,624 | $ | — | $ | 67 | $ | 267,691 | |||||||
EXPENSES: | |||||||||||||||
Employee compensation and benefits | $ | 74,185 | $ | — | $ | 422 | $ | 74,607 | |||||||
Referral fees | 52,503 | — | 120 | 52,623 | |||||||||||
General and administrative | 26,813 | — | (255 | ) | 26,558 | ||||||||||
Depreciation and amortization | 7,768 | — | 515 | 8,283 | |||||||||||
Restructuring expenses | 1,570 | — | (1,120 | ) | 450 | ||||||||||
Total operating expense | 223,286 | — | (318 | ) | 222,968 | ||||||||||
OPERATING PROFIT | 44,338 | — | 385 | 44,723 | |||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 45,105 | — | 385 | 45,490 | |||||||||||
Income tax (benefit)/expense | 13,794 | 3,589 | — | 17,383 | |||||||||||
NET INCOME | 31,311 | (3,589 | ) | 385 | 28,107 | ||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 31,311 | (3,589 | ) | 385 | 28,107 | ||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 32,638 | $ | (3,589 | ) | $ | 385 | $ | 29,434 | ||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.85 | $ | (0.10 | ) | $ | 0.01 | $ | 0.76 | ||||||
Diluted | $ | 0.79 | $ | (0.09 | ) | $ | 0.01 | $ | 0.71 |
Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total | ||||||||||||||||||||||||||||
As Reported | As Restated | As Reported | As Restated | As Reported | As Restated | As Reported | As Restated | ||||||||||||||||||||||||
BALANCE—January 1, 2013 | $ | 85,089 | $ | 85,009 | $ | 84,772 | $ | 84,590 | $ | 1,249 | $ | 1,249 | $ | 162,830 | $ | 162,568 | |||||||||||||||
BALANCE—January 1, 2014 | $ | 138,691 | $ | 134,399 | $ | 108,603 | $ | 105,217 | $ | 2,576 | $ | 2,576 | $ | 234,401 | $ | 226,723 | |||||||||||||||
BALANCE—December 31, 2014 | $ | 152,684 | $ | 148,378 | $ | 130,984 | $ | 119,775 | $ | (2,054 | ) | $ | (1,513 | ) | $ | 264,894 | $ | 249,920 |
For the Fiscal Year Ended December 31, 2014 | |||||||||||
As Reported | Adjustments | As Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 33,059 | $ | (6,749 | ) | $ | 26,310 | ||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | |||||||||||
Depreciation and amortization | 16,367 | (1,677 | ) | 14,690 | |||||||
Non-cash integration costs | — | 1,162 | 1,162 | ||||||||
Deferred tax (benefit)/expense | 2,536 | 2,572 | 5,108 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Cash and securities held for customers | (9,679 | ) | 419 | (9,260 | ) | ||||||
Receivables from brokers | 94,657 | 276 | 94,933 | ||||||||
Prepaid assets | 2,729 | 1 | 2,730 | ||||||||
Other assets | (11,536 | ) | 3,041 | (8,495 | ) | ||||||
Payables to customers | 9,679 | (419 | ) | 9,260 | |||||||
Accrued compensation and benefits | 3,671 | 826 | 4,497 | ||||||||
Accrued expenses and other liabilities | (8,565 | ) | 6,143 | (2,422 | ) | ||||||
Income tax payable | (2,832 | ) | (6,980 | ) | (9,812 | ) | |||||
Cash provided by / (used for) operating activities | 138,173 | (1,385 | ) | 136,788 | |||||||
Effect of exchange rate changes on cash and cash equivalents | 2,760 | 1,333 | 4,093 | ||||||||
INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS | 99,532 | (52 | ) | 99,480 | |||||||
CASH AND CASH EQUIVALENTS—End of year | $ | 139,403 | $ | (52 | ) | $ | 139,351 | ||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Adjustment to redemption value of non-controlling interests | $ | (978 | ) | $ | (1,129 | ) | $ | (2,107 | ) |
For the Fiscal Year Ended December 31, 2013 | |||||||||||
As Reported | Adjustments | Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 31,311 | $ | (3,204 | ) | $ | 28,107 | ||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | |||||||||||
Depreciation and amortization | 11,837 | (648 | ) | 11,189 | |||||||
Non-cash integration costs | — | 1,163 | 1,163 | ||||||||
Deferred tax (benefit)/expense | 39 | (5,470 | ) | (5,431 | ) | ||||||
Stock compensation expense | 2,896 | 79 | 2,975 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Cash and securities held for customers | (74,608 | ) | (161 | ) | (74,769 | ) | |||||
Receivables from brokers | (78,336 | ) | (220 | ) | (78,556 | ) | |||||
Prepaid assets | 318 | — | 318 | ||||||||
Other assets | (383 | ) | (692 | ) | (1,075 | ) | |||||
Payables to customers | 74,608 | 161 | 74,769 | ||||||||
Accrued compensation and benefits | 7,118 | (743 | ) | 6,375 | |||||||
Accrued expenses and other liabilities | 973 | 6,894 | 7,867 | ||||||||
Income tax payable | 2,131 | 2,283 | 4,414 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,446 | ) | 558 | (1,888 | ) | ||||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Deferred taxes related to convertible senior notes | $ | — | $ | (4,308 | ) | $ | (4,308 | ) |
Fair Value Measurements on a Recurring Basis as of December 31, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial Assets (Liabilities): | |||||||||||||||
Customer derivative positions | $ | — | $ | 143,918 | $ | — | $ | 143,918 | |||||||
Broker derivative contracts | — | (12,568 | ) | — | (12,568 | ) | |||||||||
Money market accounts | 25,167 | — | — | 25,167 | |||||||||||
Certificates of deposit | 174 | — | — | 174 | |||||||||||
Investment in gold | 107 | — | — | 107 | |||||||||||
Total | $ | 25,448 | $ | 131,350 | $ | — | $ | 156,798 |
Fair Value Measurements on a Recurring Basis as of December 31, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial Assets (Liabilities): | |||||||||||||||
Customer derivative contracts | $ | — | $ | 102,722 | $ | — | $ | 102,722 | |||||||
Broker derivative contracts | — | 717 | — | 717 | |||||||||||
Money market accounts | 20,537 | — | — | 20,537 | |||||||||||
Certificates of deposit | 174 | — | — | 174 | |||||||||||
Investment in gold | 118 | — | — | 118 | |||||||||||
Contingent consideration | — | — | (9,974 | ) | (9,974 | ) | |||||||||
Total | $ | 20,829 | $ | 103,439 | $ | (9,974 | ) | $ | 114,294 |
Liabilities | Contingent Consideration | |||
Balance at January 1, 2014 | $ | — | ||
Issuance of contingent payment obligation | 10,540 | |||
Gains included in earnings - currency revaluation | (984 | ) | ||
Losses included in earnings - discount amortization | 418 | |||
Balance at January 1, 2015 | 9,974 | |||
Gains included in earnings - adjustment to fair value of contingent consideration | (6,722 | ) | ||
Contingent consideration payments | (2,063 | ) | ||
Gains included in earnings - currency revaluation | (212 | ) | ||
Losses included in earnings - discount amortization | 570 | |||
Settlement of contingent payment obligation | (1,547 | ) | ||
Balance at December 31, 2015 | $ | — |
As of December 31, 2015 | Fair Value Measurements using: | ||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Financial Assets: | |||||||||||||||||||
Receivables from brokers | $ | 133,721 | $ | 133,721 | $ | — | $ | 133,721 | $ | — | |||||||||
Financial Liabilities: | |||||||||||||||||||
Payables to customers | $ | 1,064,539 | $ | 1,064,539 | $ | — | $ | 1,064,539 | $ | — | |||||||||
Convertible senior notes | $ | 121,996 | $ | 122,264 | $ | — | $ | 122,264 | $ | — | |||||||||
As of December 31, 2014 | Fair Value Measurements using: | ||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Financial Assets: | |||||||||||||||||||
Receivables from brokers | $ | 134,191 | $ | 134,191 | $ | — | $ | 134,191 | $ | — | |||||||||
Financial Liabilities: | |||||||||||||||||||
Payables to customers | $ | 862,281 | $ | 862,281 | $ | — | $ | 862,281 | $ | — | |||||||||
Convertible senior notes | $ | 68,367 | $ | 66,440 | $ | — | $ | 66,440 | $ | — | |||||||||
Accrued expenses and other liabilities | $ | 20,000 | $ | 20,000 | $ | — | $ | 20,000 | $ | — |
December 31, 2015 | |||||||||||
Gross amounts of assets for derivative open positions at fair value | Gross amount of (liabilities) for derivative open positions at fair value | Net amounts of assets/(liabilities) for derivative open positions at fair value | |||||||||
Derivative Instruments: | |||||||||||
Foreign currency exchange contracts | $ | 138,140 | $ | (59,468 | ) | $ | 78,672 | ||||
CFD contracts | 111,844 | (70,429 | ) | 41,415 | |||||||
Metals contracts | 18,866 | (7,603 | ) | 11,263 | |||||||
Total | $ | 268,850 | $ | (137,500 | ) | $ | 131,350 | ||||
December 31, 2015 | |||||||||||
Cash Collateral | Net amounts of assets/(liabilities) for derivative open positions at fair value | Net amounts of assets/(liabilities) presented in the balance sheet | |||||||||
Derivative Assets/(Liabilities:) | |||||||||||
Receivables from brokers | $ | 133,721 | $ | (12,568 | ) | $ | 121,153 | ||||
Payables to customers | $ | (1,064,539 | ) | $ | 143,918 | $ | (920,621 | ) |
December 31, 2014 | |||||||||||
Gross amounts of assets for derivative open positions at fair value | Gross amount of (liabilities) for derivative open positions at fair value | Net amounts of assets/(liabilities) for derivative open positions at fair value | |||||||||
Derivative Instruments: | |||||||||||
Foreign currency exchange contracts | $ | 168,034 | $ | (93,057 | ) | $ | 74,977 | ||||
CFD contracts | 44,329 | (24,420 | ) | 19,909 | |||||||
Metals contracts | 16,146 | (7,593 | ) | 8,553 | |||||||
Total | $ | 228,509 | $ | (125,070 | ) | $ | 103,439 | ||||
December 31, 2014 | |||||||||||
Cash Collateral | Net amounts of assets/(liabilities) for derivative open positions at fair value | Net amounts of assets/(liabilities) presented in the balance sheet | |||||||||
Derivative Assets/(Liabilities): | |||||||||||
Receivables from brokers | $ | 134,191 | $ | 717 | $ | 134,908 | |||||
Payables to customers | $ | (862,281 | ) | $ | 102,722 | $ | (759,559 | ) |
December 31, 2015 | |||||
Total contracts in long positions | Total contracts in short positions | ||||
Derivative Instruments: | |||||
Foreign currency exchange contracts | 3,106,885 | 2,931,109 | |||
CFD contracts | 139,465 | 285,640 | |||
Metals contracts | 1,278 | 308 | |||
Total | 3,247,628 | 3,217,057 |
December 31, 2014 | |||||
Total contracts in long positions | Total contracts in short positions | ||||
Derivative Instruments: | |||||
Foreign currency exchange contracts | 3,147,518 | 2,679,041 | |||
CFD contracts | 873,070 | 10,753 | |||
Metals contracts | 835 | 335 | |||
Total | 4,021,423 | 2,690,129 |
For the Years Ended December 31, | |||||||
2015 | 2014 | ||||||
Derivative Instruments: | |||||||
Foreign currency exchange contracts | $ | 163,315 | $ | 136,546 | |||
CFD contracts | 151,553 | 105,174 | |||||
Metals contracts | 28,918 | 48,608 | |||||
Total | $ | 343,786 | $ | 290,328 |
December 31, 2015 | December 31, 2014 | ||||||
Required Collateral | $ | 129,042 | $ | 95,599 | |||
Excess from futures broker - Restricted | 4,679 | 38,592 | |||||
Open foreign exchange positions | (12,568 | ) | 717 | ||||
Total | $ | 121,153 | $ | 134,908 |
December 31, 2015 | December 31, 2014 | ||||||
Software | $ | 44,194 | $ | 30,351 | |||
Computer equipment | 14,300 | 8,516 | |||||
Leasehold improvements | 11,200 | 6,719 | |||||
Telephone equipment | 881 | 719 | |||||
Office equipment | 2,113 | 2,345 | |||||
Furniture and fixtures | 1,761 | 1,044 | |||||
Web site development costs | 668 | 646 | |||||
Gross property and equipment | 75,117 | 50,340 | |||||
Less: Accumulated depreciation and amortization | (44,750 | ) | (31,544 | ) | |||
Property and equipment, net | $ | 30,367 | $ | 18,796 |
December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Intangibles | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||
Customer list | $ | 56,388 | $ | (14,111 | ) | $ | 42,277 | $ | 22,944 | $ | (7,152 | ) | $ | 15,792 | |||||||||
Technology | 74,378 | (32,117 | ) | 42,261 | 48,376 | (4,671 | ) | 43,705 | |||||||||||||||
Trademark | 8,289 | (1,678 | ) | 6,611 | 1,793 | (847 | ) | 946 | |||||||||||||||
Total finite lived intangibles | $ | 139,055 | $ | (47,906 | ) | $ | 91,149 | $ | 73,113 | $ | (12,670 | ) | $ | 60,443 | |||||||||
Trademarks not subject to amortization(1) | 363 | — | 363 | 363 | — | 363 | |||||||||||||||||
Total intangibles assets(2) | $ | 139,418 | $ | (47,906 | ) | $ | 91,512 | $ | 73,476 | $ | (12,670 | ) | $ | 60,806 |
Intangible Asset | Amount (in thousands) | Weighted average amortization period | |||
Customer list | $ | 56,388 | 7.6 years | ||
Technology | 74,378 | 8.9 years | |||
Trademark(1) | 8,652 | 6.7 years | |||
Total intangible assets | $ | 139,418 |
Years Ended December 31: | |||
2016 | $ | 15,988 | |
2017 | 15,132 | ||
2018 | 13,648 | ||
2019 | 11,974 | ||
2020 | 9,992 | ||
Thereafter | 24,415 | ||
Total | $ | 91,149 |
Retail | Institutional | Futures | Total | |||||||||
Carrying amount of goodwill as of December 31, 2015 | $ | 26,722 | $ | 4,788 | $ | 2,507 | $ | 34,017 |
December 31, 2015 | December 31, 2014 | ||||||
Vendor and security deposits | $ | 11,486 | $ | 3,373 | |||
Income tax receivable | 9,482 | 5,163 | |||||
Deferred tax assets, net | 17,827 | 6,308 | |||||
Indemnification asset | — | 8,792 | |||||
GTX Trade Receivables | 4,881 | 4,190 | |||||
Customer Debit Positions | 7,340 | 6,594 | |||||
Allowance on customer debit positions | (6,832 | ) | (4,555 | ) | |||
Miscellaneous receivables | 2,416 | 3,900 | |||||
Equity method investment | 822 | — | |||||
$ | 47,422 | $ | 33,765 |
Cash | $ | 6,103 | |
Convertible senior notes | 65,000 | ||
Common stock issued | 45,100 | ||
Total purchase price | $ | 116,203 |
Cash | $ | 10,546 | |
Cash and securities held for customers | 281,576 | ||
Receivable from brokers | 35,974 | ||
Property and equipment | 10,466 | ||
Prepaid assets | 4,038 | ||
Other assets | 5,119 | ||
Total tangible assets | 347,719 | ||
Total liabilities assumed | 299,000 | ||
Net assets acquired | 48,719 | ||
Identifiable intangible assets: | |||
Customer list | 34,277 | ||
Trade name | 6,645 | ||
Technology | 26,157 | ||
Intangible assets, net | 67,079 | ||
Goodwill | $ | 405 |
Cash | $ | 9,732 | |
Contingent payment | 10,540 | ||
Total purchase price | $ | 20,272 |
Cash and cash equivalents | $ | 2,193 | |
Receivable from brokers | 745 | ||
Property and equipment | 12 | ||
Prepaid assets | 94 | ||
Other assets | 64 | ||
Total tangible assets | 3,108 | ||
Total liabilities assumed | 1,931 | ||
Net assets acquired | 1,177 | ||
Identifiable intangible assets: | |||
Customer list | 4,203 | ||
Trade name | 784 | ||
Intangible assets, net | 4,987 | ||
Goodwill | $ | 14,108 |
Cash | $ | 4,365 | |
Common Stock issued | 1,241 | ||
Total purchase price | $ | 5,606 |
Non-controlling interest | $ | 4,509 | |
Cash and cash equivalents | $ | 360 | |
Receivable from brokers | 438 | ||
Property and equipment | 148 | ||
Prepaid assets | 153 | ||
Other assets | 3 | ||
Total tangible assets | 1,102 | ||
Total liabilities assumed | 515 | ||
Net assets acquired | 587 | ||
Identifiable intangible assets: | |||
Customer list | 3,100 | ||
Trade name | 270 | ||
Intangible assets, net | 3,370 | ||
Goodwill | $ | 6,158 |
Non-controlling interest | $ | 3,885 | |
Cash and cash equivalents | $ | 73 | |
Receivable from brokers | 663 | ||
Total tangible assets | 736 | ||
Total liabilities assumed | 1,103 | ||
Net liabilities assumed | (367 | ) | |
Identifiable intangible assets: | |||
Customer list | 3,900 | ||
Trade name | 90 | ||
Intangible assets, net | 3,990 | ||
Goodwill | $ | 3,806 |
Cash | $ | 40,000 | |
Payment for excess cash adjustment | 2,160 | ||
Loan payable | 33,200 | ||
Common Stock issued | 34,771 | ||
Total purchase price | $ | 110,131 |
Cash and cash equivalents | $ | 15,781 | |
Cash and cash equivalents held for customers | 228,419 | ||
Receivable from brokers | 61,028 | ||
Property and equipment | 7,515 | ||
Other assets | 18,942 | ||
Total tangible assets | 331,685 | ||
Total liabilities assumed | 251,691 | ||
Net assets acquired | 79,994 | ||
Identifiable intangible assets: | |||
Software | 25,300 | ||
Customer relationships | 3,150 | ||
Intangible assets, net | 28,450 | ||
Goodwill | $ | 1,687 |
For the Fiscal Year Ended December 31, | |||||||
2015 | 2014 | ||||||
REVENUE: | |||||||
Total non-interest revenue | $ | 471,959 | $ | 506,228 | |||
Interest revenue | 1,303 | 2,288 | |||||
Interest expense | 1,049 | 599 | |||||
Total net interest revenue | 254 | 1,689 | |||||
Net revenue | 472,213 | 507,917 | |||||
EXPENSES: | |||||||
Depreciation and amortization | 11,753 | 16,500 | |||||
Purchased intangible amortization | 18,619 | 17,962 | |||||
Other expense items | 424,229 | 430,263 | |||||
Total operating expense | 454,601 | 464,725 | |||||
OPERATING PROFIT | 17,612 | 43,192 | |||||
Interest on long term borrowings | 10,267 | 9,283 | |||||
Gain on extinguishment of debt | — | — | |||||
Impairment of investment | — | — | |||||
INCOME BEFORE INCOME TAX EXPENSE | 7,345 | 33,909 | |||||
Income tax expense | 126 | 16,399 | |||||
NET INCOME | 7,219 | 17,510 | |||||
Net income attributable to non-controlling interests | 1,660 | 1,433 | |||||
Net income applicable to Gain Capital Holdings, Inc. | $ | 5,559 | $ | 16,077 |
For the Fiscal Year Ended December 31, | |||||||
2014 | 2013 | ||||||
REVENUE: | |||||||
Total non-interest revenue | $ | 376,362 | $ | 289,810 | |||
Interest revenue | 1,435 | 856 | |||||
Interest expense | 599 | 156 | |||||
Total net interest revenue | 836 | 700 | |||||
Net revenue | 377,198 | 290,510 | |||||
EXPENSES: | |||||||
Depreciation and amortization | 6,626 | 8,407 | |||||
Purchased intangible amortization | 9,044 | 4,834 | |||||
Other expense items | 308,607 | 227,273 | |||||
Total operating expense | 324,277 | 240,514 | |||||
OPERATING PROFIT | 52,921 | 49,996 | |||||
Interest on long term borrowings | (6,147 | ) | (1,232 | ) | |||
Gain on extinguishment of debt | — | 2,000 | |||||
INCOME BEFORE INCOME TAX EXPENSE | 46,774 | 50,764 | |||||
Income tax expense | 19,316 | 18,750 | |||||
NET INCOME | 27,458 | 32,014 | |||||
Net income attributable to non-controlling interests | 1,308 | 691 | |||||
Net income applicable to Gain Capital Holdings, Inc. | $ | 26,150 | $ | 31,323 |
For the Fiscal Year Ended December 31, | |||||||
2013 | 2012 | ||||||
REVENUE: | |||||||
Total non-interest revenue | $ | 353,556 | $ | 248,592 | |||
Interest revenue | 927 | 1,096 | |||||
Interest expense | 634 | 537 | |||||
Total net interest revenue | 293 | 559 | |||||
Net revenue | 353,849 | 249,151 | |||||
EXPENSES: | |||||||
Other expense items(1) | 299,945 | 261,679 | |||||
Depreciation and amortization | 11,527 | 7,958 | |||||
Purchased intangible amortization | 5,157 | 7,250 | |||||
Acquisition expense | 1,824 | 85 | |||||
Restructuring | 451 | 634 | |||||
Integration | 1,950 | — | |||||
Total expense | 320,854 | 277,606 | |||||
OPERATING PROFIT/(LOSSES) | 32,995 | (28,455 | ) | ||||
Interest expense on long term borrowings | 1,232 | 444 | |||||
Gain on extinguishment of debt | 2,000 | — | |||||
INCOME BEFORE INCOME TAX EXPENSE/(BENEFIT) | 33,763 | (28,899 | ) | ||||
Income tax expense | 16,106 | (10,837 | ) | ||||
NET INCOME/(LOSS) | $ | 17,657 | $ | (18,062 | ) |
(in thousands) | |||
Restructuring liability as of January 1, 2014 | $ | 584 | |
2014 restructuring expenses | 2,334 | ||
Payments made in 2014 | (2,543 | ) | |
Liability as of December 31, 2014 | 375 | ||
2015 restructuring expenses | 3,482 | ||
Payments made in 2015 | (3,358 | ) | |
Liability as of December 31, 2015 | $ | 499 |
Redeemable non-controlling interests | |||
December 31, 2013 | $ | — | |
Non-controlling interests related to 2014 acquisitions | 8,394 | ||
Adjustment to the redemption value of non-controlling interests | 2,107 | ||
Net income attributable to non-controlling interests | 1,433 | ||
Distributions to non-controlling interest holders | (596 | ) | |
December 31, 2014 | $ | 11,338 | |
Adjustment to the redemption value of non-controlling interests | (308 | ) | |
Net income attributable to non-controlling interests | 1,660 | ||
Distributions to non-controlling interest holders | (1,644 | ) | |
December 31, 2015 | $ | 11,046 |
• | During any calendar quarter commencing after the calendar quarter ending on March 31, 2014 (and only during such quarter), the last reported sale price of the Company’s common stock for each of at least 20 of the preceding 30 trading days, ending on and including the last trading day of the quarter exceeds 130% of the conversion price. These days need not be consecutive; |
• | During the five consecutive business day period immediately after any five consecutive trading day period (such five consecutive trading day period being referred to as the “measurement period”), in which the trading price (as defined in the offering memorandum) per $1,000 principal amount of the notes, as determined following a request by a holder of the notes in the manner described in the offering memorandum, for each trading day of the measurement period, was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on such trading day; |
• | Upon the occurrence of specified corporate events (as described in the offering memorandum); or |
• | If the Company has called the notes for redemption (as described in the offering memorandum). |
December 31, | December 31, | ||||||
2015 | 2014 | ||||||
Liability component - principal | $ | 140,000 | $ | 80,000 | |||
Deferred bond discount | 18,004 | 11,633 | |||||
Liability component - net carrying value | $ | 121,996 | $ | 68,367 | |||
Additional paid in capital | $ | 27,920 | $ | 12,572 | |||
Discount attributable to equity | (412 | ) | (425 | ) | |||
Equity component | $ | 27,508 | $ | 12,147 |
For the Fiscal Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Interest expense - stated coupon rate | $ | 5,156 | $ | 3,300 | |||
Interest expense - amortization of deferred bond discount and costs | 3,712 | 2,593 | |||||
Total interest expense - convertible note | $ | 8,868 | $ | 5,893 |
For the Years Ended December 31, | ||||||||
2015 | 2014 | 2013 | ||||||
Employee compensation and benefits | 3,680 | 3,452 | 2,975 |
Options Outstanding | ||||||||||||||
Weighted | ||||||||||||||
Weighted | Average | |||||||||||||
Number of | Average | Remaining | Aggregate | |||||||||||
Options | Exercise Price | Life (Years) | Intrinsic Value | |||||||||||
Outstanding January 1, 2015 | 1,908 | $ | 4.83 | 3.30 | ||||||||||
Granted | 137 | 9.51 | 6.40 | |||||||||||
Exercised | (638 | ) | 3.74 | 1.86 | ||||||||||
Forfeited/Expired | (49 | ) | 6.62 | 5.00 | ||||||||||
Outstanding December 31, 2015 | 1,358 | $ | 5.76 | 4.16 | $ | 3,544 | ||||||||
Vested and expected to vest options | 1,340 | $ | 5.71 | 4.13 | $ | 3,525 | ||||||||
Exercisable, December 31, 2015 | 938 | $ | 5.17 | 3.83 | $ | 2,792 | ||||||||
Fair market value of common stock at exercise date | $ | 5,869 | ||||||||||||
Cost to exercise | 2,388 | |||||||||||||
Net value of stock options exercised | $ | 3,481 |
Options Outstanding | Options Exercisable | |||||||||||||||
Weighted | ||||||||||||||||
Average | ||||||||||||||||
Weighted | Remaining | Number of | Weighted | |||||||||||||
Number | Average | Contractual | Options | Average | ||||||||||||
Exercise Price | Outstanding | Exercise Price | Life (Years) | Exercisable | Exercise Price | |||||||||||
$3.83 | 481 | $ | 3.83 | 1.64 | 481 | $ | 3.83 | |||||||||
$4.40 | 238 | 4.40 | 4.22 | 90 | $ | 4.40 | ||||||||||
$5.30 | 208 | 5.30 | 3.31 | 136 | $ | 5.30 | ||||||||||
$8.02 | 210 | 8.02 | 2.29 | 210 | $ | 8.02 | ||||||||||
$9.51 | 137 | 9.51 | 9.51 | — | $ | 9.51 | ||||||||||
$9.95 | 84 | 9.95 | 5.18 | 21 | $ | 9.95 | ||||||||||
1,358 | $ | 5.76 | 4.16 | 938 | $ | 5.17 |
For the Fiscal Year Ended December 31, | |||||
2015 | 2014 | 2013 | |||
Valuation Assumptions | |||||
Risk-free rate | 1.47% | 1.40% | 0.80% | ||
Expected volatility | 49.08% | 51.80% | 48.80% | ||
Expected term (years) | 4.75 | 4.80 | 4.80 | ||
Dividend yield | 2.1% | 2.0% | 4.9% |
Weighted Average | Weighted Average | ||||||||||||
Number | Grant Date | Number | Grant Date | ||||||||||
Non-Vested Shares | of RSUs | Fair Value | of RSAs | Fair Value | |||||||||
Non-vested at January 1, 2015 | 1,073 | $ | 6.69 | 54 | $ | 7.31 | |||||||
Granted | 601 | 9.42 | — | — | |||||||||
Vested | (387 | ) | 6.46 | (53 | ) | 7.32 | |||||||
Forfeited | (104 | ) | 8.08 | (1 | ) | 6.48 | |||||||
Non-vested at December 31, 2015 | 1,183 | $ | 8.03 | — | $ | — |
For the years ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net income applicable to GAIN Capital Holdings, Inc. | $ | 10,279 | $ | 24,877 | $ | 28,107 | |||||
Adjustment(1)(2) | 308 | (2,107 | ) | (154 | ) | ||||||
Net income available to GAIN common shareholders | $ | 10,587 | $ | 22,770 | $ | 27,953 | |||||
Weighted average common shares outstanding: | |||||||||||
Basic weighted average common shares outstanding | 47,601,979 | 40,561,644 | 36,551,246 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options | 424,087 | 763,068 | 1,214,370 | ||||||||
RSUs/RSAs | 352,985 | 1,890,183 | 1,867,262 | ||||||||
Diluted weighted average common shares outstanding | 48,379,051 | 43,214,895 | 39,632,878 | ||||||||
Earnings per common share | |||||||||||
Basic | $ | 0.22 | $ | 0.56 | $ | 0.76 | |||||
Diluted | $ | 0.22 | $ | 0.53 | $ | 0.71 |
(1) | During the years ending December 31, 2015 and 2014, the Company concluded that the carrying value of the Company's redeemable non-controlling interests was less than its redemption value. The adjustment to increase carrying value reduces earnings available to the Company's shareholders. |
(2) | During the year ending December 31, 2013, an adjustment to retained earnings was made, reflecting the amounts deemed uncollectible associated with previously issued preferred stock, which was converted to common stock immediately prior to the Company's IPO in 2010. |
Years Ended December 31: | |||
2016 | $ | 21,369 | |
2017 | 6,716 | ||
2018 | 5,077 | ||
2019 | 4,478 | ||
2020 and beyond | 15,937 | ||
Total | $ | 53,577 |
For the Fiscal Year Ended | |||||||||||
December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
U.S. | $ | (39,761 | ) | $ | 17,439 | $ | 18,546 | ||||
Non-U.S. | 48,188 | 28,011 | 26,944 | ||||||||
Total income before tax (benefit) / expense | $ | 8,427 | $ | 45,450 | $ | 45,490 |
For the Fiscal Year Ended | |||||||||||
December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Current | |||||||||||
Federal | $ | 1,136 | $ | 8,658 | $ | 15,201 | |||||
State | 172 | (199 | ) | 321 | |||||||
UK | 7,239 | 5,322 | 7,275 | ||||||||
Japan | 127 | 173 | 14 | ||||||||
Other non-U.S. | 169 | 78 | 3 | ||||||||
Total current income tax expense | 8,843 | 14,032 | 22,814 | ||||||||
Deferred | |||||||||||
Federal | (9,889 | ) | 4,966 | (5,883 | ) | ||||||
State | (1,375 | ) | (99 | ) | 205 | ||||||
UK | (337 | ) | (122 | ) | — | ||||||
Japan | (148 | ) | 159 | 121 | |||||||
Other non-U.S. | (545 | ) | 20 | (316 | ) | ||||||
Change in valuation allowance | (61 | ) | 184 | 442 | |||||||
Total deferred tax (benefit) / expense | (12,355 | ) | 5,108 | (5,431 | ) | ||||||
Total income tax (benefit) / expense | $ | (3,512 | ) | $ | 19,140 | $ | 17,383 |
December 31, | |||||||
2015 | 2014 | ||||||
Deferred tax assets | |||||||
Foreign net operating losses | $ | 13,286 | $ | 1,909 | |||
Unrealized trading losses | — | 1,293 | |||||
Stock-based compensation expense | 1,437 | 1,474 | |||||
Intangible assets | 3,012 | 6,698 | |||||
Basis difference in property and equipment | 4,950 | — | |||||
Other | 2,962 | 2,126 | |||||
Total deferred tax assets | 25,647 | 13,500 | |||||
Valuation allowance | (853 | ) | (913 | ) | |||
Total deferred tax assets after valuation allowance | $ | 24,794 | $ | 12,587 | |||
Deferred tax liabilities | |||||||
Basis difference in property and equipment | $ | — | $ | (1,717 | ) | ||
Discount on convertible note | (6,186 | ) | (3,778 | ) | |||
Other | (781 | ) | (784 | ) | |||
Total deferred liabilities | (6,967 | ) | (6,279 | ) | |||
Net deferred tax assets | $ | 17,827 | $ | 6,308 |
2015 | 2014 | 2013 | ||||||
Federal income tax at statutory rate | 35.00 | % | 35.00 | % | 35.00 | % | ||
Increase/(decrease) in effective tax rate resulting from: | ||||||||
State income tax | (9.25 | )% | (0.57 | )% | 0.76 | % | ||
Foreign rate differential | (96.96 | )% | (9.71 | )% | (5.22 | )% | ||
Deemed dividends | 55.30 | % | — | % | — | % | ||
Non deductible transaction costs | 11.71 | % | 1.42 | % | — | % | ||
Impact of non-controlling interests | (6.89 | )% | (1.10 | )% | — | % | ||
Contingent liability | (27.92 | )% | — | % | — | % | ||
Foreign losses | (19.20 | )% | — | % | — | % | ||
162 (m) | 3.44 | % | — | % | — | % | ||
GFT Carryback | (6.58 | )% | — | % | — | % | ||
Uncertain tax positions | 19.67 | % | 14.04 | % | 5.88 | % | ||
Other permanent differences | — | % | 3.03 | % | 1.79 | % | ||
Effective Tax Rate | (41.68 | )% | 42.11 | % | 38.21 | % |
• | The Company had outstanding intercompany balances between U.S. and non-U.S. entities, which resulted in a taxable deemed dividend of $37.2 million. This is represented by the deemed dividend adjustment in the table above. |
• | The Company adjusted the fair value of contingent consideration relating to the Galvan acquisition. This resulted in non-taxable earnings of $6.7 million. This is represented by the contingent liability adjustment in the table above. |
• | The Company received a favorable tax ruling on the utilization of historic foreign operating losses and was able to record a deferred tax asset of $1.6 million. This is represented by the foreign losses adjustment in the table above. |
As of December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Beginning balance as of January 1 | $ | 10,517 | $ | 8,345 | $ | 78 | |||||
Increases based on tax positions related to the current period | 885 | 2,197 | 8,287 | ||||||||
Increases based on tax positions related to prior periods | 429 | — | — | ||||||||
Decreases related to a lapse of applicable statute of limitations | (30 | ) | (25 | ) | (20 | ) | |||||
Ending balance as of December 31 | $ | 11,801 | $ | 10,517 | $ | 8,345 |
Entity Name | Minimum Regulatory Capital Requirements | Capital Levels Maintained | Excess Net Capital | Percent of Requirement Maintained | ||||||||||
GAIN Capital Group, LLC | $ | 26.1 | $ | 36.3 | $ | 10.2 | 139 | % | ||||||
GAIN Capital Forex.com U.K., Ltd. | 27.8 | 61.6 | 33.8 | 222 | % | |||||||||
Forex.com Japan., Ltd. | 0.9 | 9.6 | 8.7 | 1,067 | % | |||||||||
GAIN Capital-Forex.com Hong Kong, Ltd. | 1.9 | 3.9 | 2.0 | 205 | % | |||||||||
GAIN Capital Forex.com Australia, Pty. Ltd. | 0.7 | 2.4 | 1.7 | 343 | % | |||||||||
Galvan Research and Trading, Ltd. | 0.7 | 4.3 | 3.6 | 614 | % | |||||||||
GAIN Capital-Forex.com Canada Ltd. | 0.2 | 1.4 | 1.2 | 700 | % | |||||||||
GAIN Capital Securities, Inc. | 0.1 | 0.4 | 0.3 | 400 | % | |||||||||
GAIN Global Markets, Inc. | 0.2 | 0.3 | 0.1 | 150 | % | |||||||||
GAIN Capital UK, Ltd. | 54.5 | 127.9 | 73.4 | 235 | % | |||||||||
GAIN Capital Singapore Pte, Ltd. | 0.6 | 7.4 | 6.8 | 1,233 | % | |||||||||
GAIN Capital Australia Pty Ltd. | 0.7 | 2.8 | 2.1 | 400 | % | |||||||||
Global Assets Advisors, LLC | 0.1 | 1.2 | 1.1 | 1,200 | % | |||||||||
Total | $ | 114.5 | $ | 259.5 | $ | 145.0 | 227 | % |
Retail | |||||||||||
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net revenue | $ | 351,472 | $ | 296,941 | $ | 218,848 | |||||
Employee compensation and benefits | 67,515 | 61,989 | 44,924 | ||||||||
Selling and marketing | 26,129 | 19,574 | 21,761 | ||||||||
Referral fees | 87,175 | 78,553 | 41,459 | ||||||||
Other operating expenses | 76,301 | 51,561 | 33,148 | ||||||||
Segment profit | $ | 94,352 | $ | 85,264 | $ | 77,556 | |||||
Institutional | |||||||||||
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net revenue | $ | 35,072 | $ | 35,413 | $ | 29,213 | |||||
Employee compensation and benefits | 15,305 | 13,963 | 13,006 | ||||||||
Selling and marketing | 138 | 120 | 244 | ||||||||
Referral fees | — | — | — | ||||||||
Other operating expenses | 9,573 | 10,939 | 8,170 | ||||||||
Segment profit | $ | 10,056 | $ | 10,391 | $ | 7,793 | |||||
Futures | |||||||||||
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net revenue | $ | 45,797 | 36,016 | 23,360 | |||||||
Employee compensation and benefits | 10,634 | 8,918 | 3,399 | ||||||||
Selling and marketing | 901 | 519 | 332 | ||||||||
Referral fees | 16,348 | 12,419 | 11,164 | ||||||||
Other operating expenses | 13,960 | 11,585 | 8,948 | ||||||||
Segment profit | $ | 3,954 | $ | 2,575 | $ | (483 | ) | ||||
Corporate and Other | |||||||||||
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Other revenue | $ | (3,716 | ) | $ | 819 | $ | (3,729 | ) | |||
Employee compensation and benefits | 13,127 | 14,362 | 13,279 | ||||||||
Selling and marketing | — | — | — | ||||||||
Referral fees | — | — | — | ||||||||
Other operating expenses | 11,038 | 10,001 | 7,272 | ||||||||
Loss | $ | (27,881 | ) | $ | (23,544 | ) | $ | (24,280 | ) |
For the Fiscal Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Retail segment | $ | 94,352 | $ | 85,264 | $ | 77,556 | |||||
Institutional segment | 10,056 | 10,391 | 7,793 | ||||||||
Futures segment | 3,954 | 2,575 | (483 | ) | |||||||
Corporate and other | (27,881 | ) | (23,544 | ) | (24,280 | ) | |||||
SEGMENT PROFIT | 80,481 | 74,686 | 60,586 | ||||||||
Depreciation and amortization | 11,111 | 6,610 | 8,283 | ||||||||
Purchased intangible amortization | 16,550 | 8,080 | 2,906 | ||||||||
Acquisition expenses | 2,819 | 3,526 | 1,824 | ||||||||
Restructuring expenses | 3,482 | 2,334 | 450 | ||||||||
Integration expenses | 33,092 | 2,489 | 1,950 | ||||||||
Impairment of investment | — | 50 | 450 | ||||||||
Change in fair value to contingent consideration | (6,722 | ) | — | — | |||||||
SNB bad debt provision | 2,500 | — | — | ||||||||
OPERATING PROFIT | 17,649 | 51,597 | 44,723 | ||||||||
Interest expense on long term borrowings | 9,222 | 6,147 | 1,233 | ||||||||
Gain on extinguishment of debt | — | — | 2,000 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | $ | 8,427 | $ | 45,450 | $ | 45,490 |
2015 | 2014 | 2013 | |||||||||
Net Revenue(1): | |||||||||||
North America(2) | $ | 107,534 | $ | 133,103 | $ | 153,449 | |||||
Europe(3) | 307,087 | 237,391 | 33,347 | ||||||||
Other | 20,726 | (1,305 | ) | 80,895 | |||||||
Total Net Revenue | $ | 435,347 | $ | 369,189 | $ | 267,691 |
2015 | 2014 | ||||
Long-lived assets(1): | |||||
North America(2) | 6,370 | 16,729 | |||
Europe(3) | 23,147 | 1,820 | |||
Other | 850 | 247 | |||
Total long-lived assets | 30,367 | 18,796 |
First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||
For the Year Ended December 31, 2015 (As Restated) | |||||||||||||||
Total non-interest revenue | $ | 92,967 | $ | 111,452 | $ | 128,045 | $ | 102,712 | |||||||
Net revenue | $ | 92,986 | $ | 111,457 | $ | 128,111 | $ | 102,793 | |||||||
Income/(loss) before income tax expense | $ | 11,554 | $ | (12,741 | ) | $ | 9,418 | $ | 196 | ||||||
Net income/(loss) | $ | 5,809 | $ | (12,481 | ) | $ | 2,784 | $ | 15,827 | ||||||
Net income attributable to non-controlling interest | $ | 344 | $ | 416 | $ | 583 | $ | 317 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | 5,465 | $ | (12,897 | ) | $ | 2,201 | $ | 15,510 | ||||||
Basic net income/(loss) per share | $ | 0.11 | $ | (0.28 | ) | $ | 0.07 | $ | 0.32 | ||||||
Diluted net income/(loss) per share | $ | 0.11 | $ | (0.28 | ) | $ | 0.07 | $ | 0.32 | ||||||
For the Year Ended December 31, 2014 (As Restated) | |||||||||||||||
Total non-interest revenue | $ | 80,412 | $ | 70,005 | $ | 102,786 | $ | 115,157 | |||||||
Net revenue | $ | 80,722 | $ | 70,264 | $ | 102,956 | $ | 115,275 | |||||||
Income/(loss) before income tax expense | $ | 3,835 | $ | (6,421 | ) | $ | 20,888 | $ | 27,149 | ||||||
Net income/(loss) | $ | 577 | $ | (7,583 | ) | $ | 10,348 | $ | 22,966 | ||||||
Net income attributable to non-controlling interest | $ | 38 | $ | 164 | $ | 785 | $ | 446 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | 539 | $ | (7,747 | ) | $ | 9,563 | $ | 22,520 | ||||||
Basic net income/(loss) per share | $ | 0.01 | $ | (0.20 | ) | $ | 0.19 | $ | 0.54 | ||||||
Diluted net income/(loss) per share | $ | 0.01 | $ | (0.20 | ) | $ | 0.18 | $ | 0.51 |
As Reported | Tax Adjustments | Other Adjustments | As Restated | ||||||||||||
For the three months ended September 30, 2015 | |||||||||||||||
Total non-interest revenue | $ | 127,865 | $ | — | $ | 180 | $ | 128,045 | |||||||
Net revenue | $ | 127,931 | $ | — | $ | 180 | $ | 128,111 | |||||||
Income/(loss) before income tax expense | $ | 9,215 | $ | — | $ | 203 | $ | 9,418 | |||||||
Net income/(loss) | $ | 8,887 | $ | (6,306 | ) | $ | 203 | $ | 2,784 | ||||||
Net income attributable to non-controlling interest | $ | 583 | $ | — | $ | — | $ | 583 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | 8,304 | $ | (6,306 | ) | $ | 203 | $ | 2,201 | ||||||
Basic net income/(loss)per share | $ | 0.20 | $ | 0.07 | |||||||||||
Diluted net income/(loss) per share | $ | 0.20 | $ | 0.07 |
As Reported | Tax Adjustments | Other Adjustments | As Restated | ||||||||||||
For the three months ended June 30, 2015 | |||||||||||||||
Total non-interest revenue | $ | 111,559 | $ | — | $ | (107 | ) | $ | 111,452 | ||||||
Net revenue | $ | 111,564 | $ | — | $ | (107 | ) | $ | 111,457 | ||||||
Income/(loss) before income tax expense | $ | (12,538 | ) | $ | — | $ | (203 | ) | $ | (12,741 | ) | ||||
Net income/(loss) | $ | (8,414 | ) | $ | (3,864 | ) | $ | (203 | ) | $ | (12,481 | ) | |||
Net income attributable to non-controlling interest | $ | 416 | $ | — | $ | — | $ | 416 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | (8,830 | ) | $ | (3,864 | ) | $ | (203 | ) | $ | (12,897 | ) | |||
Basic net income/(loss)per share | $ | (0.23 | ) | $ | (0.28 | ) | |||||||||
Diluted net income/(loss) per share | $ | (0.23 | ) | $ | (0.28 | ) |
As Reported | Tax Adjustments | Other Adjustments | As Restated | ||||||||||||
For the three months ended March 31, 2015 | |||||||||||||||
Total non-interest revenue | $ | 92,933 | $ | — | $ | 34 | $ | 92,967 | |||||||
Net revenue | $ | 92,952 | $ | — | $ | 34 | $ | 92,986 | |||||||
Income/(loss) before income tax expense | $ | 11,498 | $ | — | $ | 56 | $ | 11,554 | |||||||
Net income/(loss) | $ | 8,680 | $ | (2,927 | ) | $ | 56 | $ | 5,809 | ||||||
Net income attributable to non-controlling interest | $ | 344 | $ | — | $ | — | $ | 344 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | 8,336 | $ | (2,927 | ) | $ | 56 | $ | 5,465 | ||||||
Basic net income/(loss)per share | $ | 0.19 | $ | 0.11 | |||||||||||
Diluted net income/(loss) per share | $ | 0.18 | $ | 0.11 |
As Reported | Tax Adjustments | Other Adjustments | As Restated | ||||||||||||
For the three months ended December 31, 2014 | |||||||||||||||
Total non-interest revenue | $ | 114,725 | $ | — | $ | 432 | $ | 115,157 | |||||||
Net revenue | $ | 114,751 | $ | — | $ | 524 | $ | 115,275 | |||||||
Income/(loss) before income tax expense | $ | 26,456 | $ | — | $ | 693 | $ | 27,149 | |||||||
Net income/(loss) | $ | 18,058 | $ | 4,162 | $ | 746 | $ | 22,966 | |||||||
Net income attributable to non-controlling interest | $ | 446 | $ | — | $ | — | $ | 446 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | 17,612 | $ | 4,162 | $ | 746 | $ | 22,520 | |||||||
Basic net income/(loss)per share | $ | 0.44 | $ | 0.54 | |||||||||||
Diluted net income/(loss) per share | $ | 0.42 | $ | 0.51 |
As Reported | Tax Adjustments | Other Adjustments | As Restated | ||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||
Total non-interest revenue | $ | 103,388 | $ | — | $ | (602 | ) | $ | 102,786 | ||||||
Net revenue | $ | 103,650 | $ | — | $ | (694 | ) | $ | 102,956 | ||||||
Income/(loss) before income tax expense | $ | 21,470 | $ | — | $ | (582 | ) | $ | 20,888 | ||||||
Net income/(loss) | $ | 16,130 | $ | (5,199 | ) | $ | (583 | ) | $ | 10,348 | |||||
Net income attributable to non-controlling interest | $ | 785 | $ | — | $ | — | $ | 785 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | 15,345 | $ | (5,199 | ) | $ | (583 | ) | $ | 9,563 | |||||
Basic net income/(loss)per share | $ | 0.35 | $ | 0.19 | |||||||||||
Diluted net income/(loss) per share | $ | 0.33 | $ | 0.18 |
As Reported | Tax Adjustments | Other Adjustments | As Restated | ||||||||||||
For the three months ended June 30, 2014 | |||||||||||||||
Total non-interest revenue | $ | 69,504 | $ | — | $ | 501 | $ | 70,005 | |||||||
Net revenue | $ | 69,763 | $ | — | $ | 501 | $ | 70,264 | |||||||
Income/(loss) before income tax expense | $ | (7,013 | ) | $ | — | $ | 592 | $ | (6,421 | ) | |||||
Net income/(loss) | $ | (4,992 | ) | $ | (3,183 | ) | $ | 592 | $ | (7,583 | ) | ||||
Net income attributable to non-controlling interest | $ | 164 | $ | — | $ | — | $ | 164 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | (5,156 | ) | $ | (3,183 | ) | $ | 592 | $ | (7,747 | ) | ||||
Basic net income/(loss)per share | $ | (0.13 | ) | $ | (0.20 | ) | |||||||||
Diluted net income/(loss) per share | $ | (0.13 | ) | $ | (0.20 | ) |
As Reported | Tax Adjustments | Other Adjustments | As Restated | ||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||
Total non-interest revenue | $ | 81,087 | $ | — | $ | (675 | ) | $ | 80,412 | ||||||
Net revenue | $ | 81,397 | $ | — | $ | (675 | ) | $ | 80,722 | ||||||
Income/(loss) before income tax expense | $ | 5,140 | $ | — | $ | (1,305 | ) | $ | 3,835 | ||||||
Net income/(loss) | $ | 3,863 | $ | (1,980 | ) | $ | (1,305 | ) | $ | 577 | |||||
Net income attributable to non-controlling interest | $ | 38 | $ | — | $ | — | $ | 38 | |||||||
Net income/(loss) applicable to GAIN Capital Holdings, Inc. | $ | 3,826 | $ | (1,980 | ) | $ | (1,305 | ) | $ | 539 | |||||
Basic net income/(loss)per share | $ | 0.10 | $ | — | $ | 0.01 | |||||||||
Diluted net income/(loss) per share | $ | 0.09 | $ | 0.01 |
As of December 31, | |||||||
2015 | 2014 (As Restated) | ||||||
ASSETS: | |||||||
Cash and cash equivalents | $ | 451 | $ | 1,184 | |||
Equity investments in subsidiaries | 447,732 | 380,110 | |||||
Receivables from affiliates | 2,442 | 17,545 | |||||
Prepaid assets | 4 | 2 | |||||
Income tax receivable | 9,482 | 4,994 | |||||
Deferred tax assets, net | 13,563 | 5,911 | |||||
Other assets | 495 | 7,736 | |||||
Total assets | $ | 474,169 | $ | 417,482 | |||
LIABILITIES AND SHAREHOLDERS EQUITY: | |||||||
Liabilities | |||||||
Accrued compensation and benefits | $ | 211 | $ | 51 | |||
Accrued expenses and other liabilities | 20,438 | 37,154 | |||||
Payable to affiliates | 25,440 | 61,990 | |||||
Convertible senior notes | 121,996 | 68,367 | |||||
Total liabilities | 168,085 | 167,562 | |||||
Commitments and contingent liabilities (see Note 3) | |||||||
Shareholders' Equity | |||||||
Common stock ($0.00001 par value; 120 million shares authorized, 52,072,884 shares issued and 48,771,015 shares outstanding as of December 31, 2015; 60 million shares authorized, 45,582,066 shares issued and 42,934,559 shares outstanding as of December 31, 2014) | — | — | |||||
Accumulated other comprehensive income | (5,865 | ) | (1,513 | ) | |||
Additional paid-in capital | 212,981 | 148,378 | |||||
Treasury stock, at cost (3,301,869 shares at December 31, 2015 and 2,647,507 at December 31, 2014, respectively) | (21,808 | ) | (16,720 | ) | |||
Retained earnings | 120,776 | 119,775 | |||||
Total shareholders' equity | 306,084 | 249,920 | |||||
Total liabilities and shareholders' equity | $ | 474,169 | $ | 417,482 |
For the Fiscal Year Ended | |||||||||||
December 31, | |||||||||||
2015 | 2014 (As Restated) | 2013 (As Restated) | |||||||||
REVENUE: | |||||||||||
Dividends from subsidiaries | $ | 38,642 | $ | — | $ | 37,099 | |||||
Interest and other | 178 | 90 | 181 | ||||||||
Total revenue | $ | 38,820 | $ | 90 | $ | 37,280 | |||||
OPERATING EXPENSES: | |||||||||||
Interest expense | 63 | 64 | 63 | ||||||||
Employee compensation and benefits | 10,096 | 11,578 | 187 | ||||||||
General and administrative | 6,775 | 8,208 | 6,075 | ||||||||
Total operating expenses | 16,934 | 19,850 | 6,325 | ||||||||
Interest expense on long term borrowings | 9,222 | 6,147 | 1,233 | ||||||||
Gain on extinguishment of debt | — | — | 2,000 | ||||||||
INCOME/(LOSS) BEFORE INCOME TAX EXPENSE | 12,664 | (25,907 | ) | 31,722 | |||||||
Income tax (benefit) / expense | (10,875 | ) | (2,584 | ) | 10,325 | ||||||
NET INCOME/(LOSS) BEFORE UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | 23,539 | (23,323 | ) | 21,397 | |||||||
Undistributed earnings of subsidiaries | (13,260 | ) | 48,200 | 6,710 | |||||||
NET INCOME | 10,279 | 24,877 | $ | 28,107 | |||||||
Other comprehensive (loss) / income | |||||||||||
Foreign currency translation adjustment | (4,352 | ) | (4,089 | ) | $ | 1,327 | |||||
NET COMPREHENSIVE INCOME | $ | 5,927 | $ | 20,788 | $ | 29,434 |
For the Fiscal Year Ended | |||||||||||
December 31, | |||||||||||
2015 | 2014 (As Restated) | 2013 (As Restated) | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 10,279 | $ | 24,877 | $ | 28,107 | |||||
Adjustments to reconcile net income to cash provided by operating activities | |||||||||||
Undistributed earnings of subsidiaries | 13,260 | (48,200 | ) | (6,710 | ) | ||||||
Gain on extinguishment of debt | — | — | (2,000 | ) | |||||||
Gain on foreign currency exchange rates | (66 | ) | — | (274 | ) | ||||||
Deferred tax (benefit)/expense | (11,264 | ) | 4,867 | 1,448 | |||||||
Amortization of deferred finance costs | 354 | 354 | — | ||||||||
Stock compensation expense | 3,680 | 3,452 | 2,975 | ||||||||
Convertible note discount amortization | 3,624 | 2,150 | 175 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables from affiliates | 37,548 | (33,827 | ) | 19,278 | |||||||
Prepaid assets | (3 | ) | 127 | (127 | ) | ||||||
Other assets | 7,240 | (10,123 | ) | 291 | |||||||
Income tax receivable | (9,069 | ) | (771 | ) | (9,742 | ) | |||||
Accrued compensation and benefits | 160 | 51 | — | ||||||||
Accrued expenses and other liabilities | (4,876 | ) | 10,426 | 1,478 | |||||||
Payable to affiliates | (36,549 | ) | 61,990 | — | |||||||
Cash provided by operating activities | 14,318 | 15,373 | 34,899 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Investment and funding of subsidiaries | 7,081 | (51,107 | ) | (28,648 | ) | ||||||
Purchase of short term investments | — | (92 | ) | — | |||||||
Cash provided by / (used for) investing activities | 7,081 | (51,199 | ) | (28,648 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of convertible senior note issuance, net | — | — | 77,900 | ||||||||
Principal payment on notes payable | — | — | (31,200 | ) | |||||||
Contractual payments for acquisitions | (11,829 | ) | — | — | |||||||
Proceeds from exercise of stock options | 2,386 | 2,087 | 2,539 | ||||||||
Proceeds from employee stock purchase plan | 789 | 740 | 302 | ||||||||
Purchase of treasury stock | (5,088 | ) | (1,251 | ) | (7,189 | ) | |||||
Tax benefit from employee stock option exercises | 1,140 | 1,221 | 1,026 | ||||||||
Dividend payments | (9,530 | ) | (8,139 | ) | (7,326 | ) | |||||
Cash (used for)/provided by financing activities | (22,132 | ) | (5,342 | ) | 36,052 | ||||||
(DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS | (733 | ) | (41,168 | ) | 42,303 | ||||||
CASH AND CASH EQUIVALENTS — Beginning of year | 1,184 | 42,352 | 49 | ||||||||
CASH AND CASH EQUIVALENTS — End of year | $ | 451 | $ | 1,184 | $ | 42,352 | |||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the year for: |
Interest paid | $ | (4,538 | ) | $ | (3,373 | ) | $ | (556 | ) | ||
Taxes refunds received/taxes (paid) | $ | 733 | $ | (3,711 | ) | $ | (5,562 | ) | |||
Non-cash financing activities related to acquisitions: | |||||||||||
Seller provided financing | — | — | $ | 33,200 | |||||||
Common stock issued as consideration for asset and business acquisitions | $ | 45,100 | $ | 6,493 | $ | 34,771 | |||||
As of December 31, 2014 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | As Restated | ||||||||||||
ASSETS: | |||||||||||||||
Cash and cash equivalents | $ | 1,235 | $ | — | $ | (51 | ) | $ | 1,184 | ||||||
Equity investments in subsidiaries | 381,240 | — | (1,130 | ) | 380,110 | ||||||||||
Receivables from affiliates | 18,533 | (988 | ) | — | 17,545 | ||||||||||
Current tax receivable | 5,084 | (90 | ) | — | 4,994 | ||||||||||
Deferred tax assets, net | — | 5,911 | — | 5,911 | |||||||||||
Other assets | 15,703 | (5,504 | ) | (2,463 | ) | 7,736 | |||||||||
Total assets | $ | 421,797 | $ | (671 | ) | $ | (3,644 | ) | $ | 417,482 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||||||||||
Liabilities | |||||||||||||||
Accrued expenses and other liabilities | 25,435 | 12,170 | (451 | ) | 37,154 | ||||||||||
Income tax payable | 1,060 | 1,003 | (2,063 | ) | — | ||||||||||
Total liabilities | 156,903 | 13,173 | (2,514 | ) | 167,562 | ||||||||||
Commitments and contingent liabilities | |||||||||||||||
Shareholders’ equity | |||||||||||||||
Accumulated other comprehensive income | (2,054 | ) | 541 | — | (1,513 | ) | |||||||||
Additional paid-in capital | 152,684 | (4,306 | ) | — | 148,378 | ||||||||||
Retained earnings | 130,984 | (10,079 | ) | (1,130 | ) | 119,775 | |||||||||
Total shareholders' equity | 264,894 | (13,844 | ) | (1,130 | ) | 249,920 | |||||||||
Total liabilities and shareholders’ equity | $ | 421,797 | $ | (671 | ) | $ | (3,644 | ) | $ | 417,482 |
For the Fiscal Year Ended December 31, 2014 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | As Restated | ||||||||||||
Interest expense on long term borrowings | $ | 5,893 | $ | — | $ | 254 | $ | 6,147 | |||||||
INCOME/(LOSS) BEFORE INCOME TAX EXPENSE | (25,653 | ) | — | (254 | ) | (25,907 | ) | ||||||||
Income tax (benefit) / expense | (8,784 | ) | 6,200 | — | (2,584 | ) | |||||||||
NET INCOME/(LOSS) BEFORE UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | (16,869 | ) | (6,200 | ) | (254 | ) | (23,323 | ) | |||||||
Undistributed earnings of subsidiaries | 48,495 | (295 | ) | 48,200 | |||||||||||
NET INCOME | $ | 31,626 | $ | (6,200 | ) | $ | (549 | ) | $ | 24,877 | |||||
Other comprehensive (loss) / income, net of tax | |||||||||||||||
Foreign currency translation adjustment | (4,630 | ) | 541 | — | (4,089 | ) | |||||||||
NET COMPREHENSIVE INCOME | $ | 26,996 | $ | (5,659 | ) | $ | (549 | ) | $ | 20,788 |
For the Fiscal Year Ended December 31, 2013 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | As Restated | ||||||||||||
OPERATING EXPENSES: | |||||||||||||||
Interest expense | 1,199 | — | (1,136 | ) | 63 | ||||||||||
Total operating expense | 7,461 | — | (1,136 | ) | 6,325 | ||||||||||
Interest expense on long term borrowings | — | — | 1,233 | 1,233 | |||||||||||
INCOME/(LOSS) BEFORE INCOME TAX EXPENSE | 31,819 | — | (97 | ) | 31,722 | ||||||||||
Income tax (benefit) / expense | 6,736 | 3,589 | — | 10,325 | |||||||||||
NET INCOME/(LOSS) BEFORE UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | 25,083 | (3,589 | ) | (97 | ) | 21,397 | |||||||||
Undistributed earnings of subsidiaries | 6,228 | 482 | 6,710 | ||||||||||||
NET INCOME | 31,311 | (3,589 | ) | 385 | 28,107 | ||||||||||
Other comprehensive (loss) / income, net of tax | |||||||||||||||
NET COMPREHENSIVE INCOME | $ | 32,638 | $ | (3,589 | ) | $ | 385 | $ | 29,434 |
For the Fiscal Year Ended December 31, 2014 | |||||||||||
As Reported | Adjustments | As Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 31,626 | $ | (6,749 | ) | $ | 24,877 | ||||
Adjustments to reconcile net income to cash provided by operating activities | |||||||||||
Undistributed earnings of subsidiaries | (48,495 | ) | 295 | (48,200 | ) | ||||||
Deferred taxes | 2,508 | 2,359 | 4,867 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables from affiliates | (18,533 | ) | (15,294 | ) | (33,827 | ) | |||||
Other assets | (5,188 | ) | (4,935 | ) | (10,123 | ) | |||||
Current tax receivable | (1,591 | ) | 820 | (771 | ) | ||||||
Accrued compensation and benefits | (21 | ) | 72 | 51 | |||||||
Accrued expenses and other liabilities | 1,762 | 8,664 | 10,426 | ||||||||
Payable to affiliates | 47,522 | 14,468 | 61,990 | ||||||||
Cash provided by operating activities | 15,673 | (300 | ) | 15,373 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Investment and funding of subsidiaries | (46,726 | ) | (4,381 | ) | (51,107 | ) | |||||
Cash used for investing activities | (46,818 | ) | (4,381 | ) | (51,199 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (4,630 | ) | 4,630 | — | |||||||
(DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS | (41,117 | ) | (51 | ) | (41,168 | ) | |||||
CASH AND CASH EQUIVALENTS — Beginning of year | 42,352 | — | 42,352 | ||||||||
CASH AND CASH EQUIVALENTS — End of year | $ | 1,235 | $ | (51 | ) | $ | 1,184 |
For the Fiscal Year Ended December 31, 2013 | |||||||||||
As Reported | Adjustments | As Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 31,311 | $ | (3,204 | ) | $ | 28,107 | ||||
Adjustments to reconcile net income to cash provided by operating activities | |||||||||||
Undistributed earnings of subsidiaries | 6,228 | (12,938 | ) | (6,710 | ) | ||||||
Deferred taxes | (1,448 | ) | 2,896 | 1,448 | |||||||
Amortization of deferred finance costs | 30 | (30 | ) | — | |||||||
Stock compensation expense | 2,896 | 79 | 2,975 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables from affiliates | 17,681 | 1,597 | 19,278 | ||||||||
Prepaid assets | (127 | ) | — | (127 | ) | ||||||
Other assets | (5,354 | ) | 5,645 | 291 | |||||||
Current tax receivable | 2,055 | (11,797 | ) | (9,742 | ) | ||||||
Accrued expenses and other liabilities | (3,486 | ) | 4,964 | 1,478 | |||||||
Cash provided by operating activities | 47,687 | (12,788 | ) | 34,899 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Investment and funding of subsidiaries | (42,764 | ) | 14,116 | (28,648 | ) | ||||||
Cash used for investing activities | (42,764 | ) | 14,116 | (28,648 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 1,328 | (1,328 | ) | — |
(1) | CITY INDEX LIMITED incorporated and registered in England and Wales with company number 1761813 whose registered office is at Park House, 16 Finsbury Circus, London EC2M 7EB (the Company); and |
(2) | NIGEL ROSE (the Executive). |
1. | DEFINITIONS |
1.1. | In this agreement the following words shall have the following meanings: |
1.2. | The headings in this agreement are inserted for convenience only and shall not affect its construction. |
1.3. | A reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension or re-enactment and includes any subordinate legislation for the time being in force made under it. |
1.4. | A reference to one gender includes a reference to the other gender. |
2. | TERM OF APPOINTMENT |
2.1. | The Company shall employ the Executive and the Executive shall serve the Company on the terms of this agreement. The Executive's appointment under this agreement shall commence on the Commencement Date and shall continue unless and until terminated by either party giving to the other not less than twelve months' prior notice in writing. The Executive's period of continuous employment commenced on 1st March 2010. |
2.2. | The Company's normal retirement age is 65. |
2.3. | The Executive warrants that he is entitled to work in the United Kingdom without any additional approvals and will notify the Company immediately if he ceases to be so entitled. |
3. | DUTIES |
3.1. | The Executive shall serve the Company as Group Chief Financial Officer or in such other role as the Company considers appropriate from time to time. |
3.2. | This role is at Executive Director level within the City Index Group. |
3.3. | During the period of this agreement the Executive shall: |
(a) | unless prevented by Incapacity, devote the whole of his time, attention and abilities to the business of the Company; |
(b) | diligently exercise such powers and perform such duties as may from time to time be assigned to him by the Board; |
(c) | comply with all reasonable and lawful directions given to him by the Company; |
(d) | promptly make such reports to the Board in connection with the affairs of the Company on such matters and at such times as are reasonably required; |
(e) | report his own wrongdoing and any wrongdoing or proposed wrongdoing of any other employee or director of the Company to the Board immediately on becoming aware of it; and |
(f) | use his best endeavours to promote, protect, develop and extend the business of the Company. |
3.4. | The Executive shall comply with any rules, policies and procedures set out in the Staff Handbook, a copy of which is available from the Human Resources Department. The Company may amend the policies and procedures at any time. . |
3.5. | All documents, manuals, hardware and software provided for the Executive's use by the Company and any data or documents (including copies) produced, maintained or stored on the Company's computer systems or other electronic equipment (including mobile phones) remain the property of the Company. |
3.6. | The Executive shall at all times comply with, and not use the Company or any Group Company to breach or contravene any rules, regulations or requirements of any regulatory body, code of conduct or statutory provision to which the Executive, the Company and/or any Group Company is/are subject, including, without limitation, the Financial Services and Markets Act 2000 and any rules, regulations or procedures made by the Company and/or any Group Company. |
3.7. | If, for the performance of the Executive's duties, the Executive is, in the Company's opinion, required to be registered individually with the FSA (or any successor) as a 'registered person' (or otherwise) in any one or more categories (or other equivalent or necessary registration or licence) the Executive undertakes that he shall: |
(a) | supply the Company or any Group Company with all such information which the Company or Group Company is required to supply to its regulators in relation to such registration or licence and the Executive shall ensure that such information is complete (including disclosure of any belief why such registration might be delayed or refused), true, accurate and not misleading; and |
(b) | comply in all respects with the rules and requirements of such regulator regarding "registered persons". |
4. | PLACE OF WORK |
4.1. | The Executive's normal place of work is at the Company's London office, Park House, 16 Finsbury Circus, London EC2M 7EB or such other place as the Company may from time to time reasonably require. |
4.2. | The Executive agrees to travel on Company business (both within the United Kingdom or abroad) as may be required for the proper performance of his duties under this agreement. |
4.3. | During this agreement the Executive shall not be required to work outside the United Kingdom for any continuous period of more than one month. |
5. | HOURS OF WORK |
5.1. | The Executive's normal working hours shall be 37.5 hours per week, specific start and finishing times to be determined in accordance with departmental requirements. The Executive may be required to work such additional hours as may be necessary for the proper performance of his duties without extra remuneration. |
5.2. | The Executive agrees that regulation 4 of the Working Time Regulations 1998 shall not apply to your employment by the Company. The Executive may terminate his agreement to this provision on giving three months notice in writing to the Company. |
6. | SALARY |
6.1. | The Executive shall be paid an initial salary of £165,000 per annum, increasing to £200,000 effective 1st November 2010, less appropriate PAYE deductions, which shall accrue from day to day and be payable monthly in arrears on or about the 21st of each month directly into the Executive's bank or building society. During your final month of employment the Executive’s salary will only be paid in arrears and on the final day of the Executive’s employment. |
6.2. | The Executive's salary shall be reviewed by the Board annually, the first such review to take place in April 2011. The Company is under no obligation to award an increase following a salary review. |
6.3. | The Company may deduct from the salary or any other sums owed to the Executive, any money owed to the Company by the Executive. |
7. | BONUS |
7.1. | The executive shall be entitled to a guaranteed bonus payment of not less than £100,000, payable in March 2011. Any additional payments will be determined by the company in its absolute discretion, based on company and individual performance. The executive will not be eligible for consideration to receive any additional payments over and above the guaranteed bonus if the executive is not in employment for any reason, is under notice of termination of employment or is not performing his duties on the date any bonus is due to be paid, subject to clause 17.1. |
8. | PENSION AND OTHER BENEFITS |
8.1. | A contracting out certificate under the Pensions Schemes Act 1993 is not currently in force in respect of your employment. |
8.2. | The Company may offer to make contributions to an individual personal pension arrangement of your choice. If the Company does not choose to make contributions at the level required by law from time to time, the Company will instead provide access to a designated stakeholder pension scheme as required by law. The Company will not make any contributions to such stakeholder scheme. |
8.3. | The Company is prepared to make contributions to an individual personal pension arrangement of your choice at 12% of your basic annual salary from 1st June 2010. |
8.4. | The Company shall not contribute to your personal pension arrangements during the first 3 months of your employment or during any period of notice, whether given, received, worked or not. |
8.5. | You shall be entitled to participate in the Company’s benefit schemes, which the Company reserves the right to vary or withdraw. |
9. | EXPENSES |
9.1. | The Company shall reimburse all reasonable expenses wholly, properly and necessarily incurred by the Executive in the course of carrying out his duties under this agreement, subject to production of receipts or other appropriate evidence of payment as required by the Company. |
9.2. | The Executive shall abide by the Company's policies on expenses as communicated to him from time to time. |
10. | HOLIDAYS |
10.1. | The Executive is entitled to 25 days' holiday during each holiday year, in addition to the usual public holidays in England and Wales. The Executive will be paid his normal basic remuneration during such holidays. The Company's holiday year runs between 1 January and 31 December. If the Executive's employment commences or finishes part way through the holiday year, the holiday entitlement during that year shall be calculated on a pro-rata basis. |
10.2. | The Company may require the Executive to take holiday on specific days as notified to him. |
10.3. | The Executive shall be entitled to carry forward up to 5 accrued but untaken holiday days holiday which must be used by 31st March of the following holiday year. |
10.4. | The Executive shall not be entitled to receive holiday pay in lieu of untaken holiday except as set out in clause 11.5. |
10.5. | On termination of employment the Executive will be entitled to a payment in lieu of any accrued but untaken holiday as at the date of termination. The amount of the payment in lieu shall be calculated on the basis that each day of paid holiday is equal to 1/260 of the Executive's salary. The Company reserves the right to require the Executive to take any unused holiday entitlement during his notice period, whether or not on Garden Leave. |
10.6. | If the Executive has taken more holiday than his accrued entitlement at the date the Executive's employment terminates, the Company shall be entitled to deduct from the Executive's final salary payment one day's pay for each excess day. |
11. | INCAPACITY |
11.1. | If the Executive is absent from work for any reason, he must notify the Company of the reason for absence in accordance with the sickness absence procedure in the Employee Handbook. |
11.2. | The Executive agrees to consent to a medical examination (at the Company's expense) by a doctor nominated by the Company should the Company so require. The Executive agrees that any report produced in connection with any such examination may be disclosed to the Company and the Company may discuss the contents of the report with the relevant doctor. |
11.3. | Subject to the Executive complying with the Company's notification and certification procedures above the Executive will be entitled to receive his full salary (inclusive of any SSP due) for the first thirteen (13) weeks of absence in any 12-month period. |
11.4. | Should the Executive remain absent after the expiry of the thirteen week period referred to above his entitlement will be to statutory sick pay only unless the Company, in its absolute discretion, decides to extend the continuation of the Executive's full salary or part thereof. The Company is not, however, under any obligation to make any payment of salary in these circumstances. |
11.5. | The Company reserves the right to withhold sick pay if the Executive is certified as fit to work by the Company's doctor. |
11.6. | For statutory sick pay purposes qualifying days shall be the Executive's normal working days. |
11.7. | If the Incapacity is or appears to be occasioned by actionable negligence, nuisance or breach of any statutory duty on the part of a third party in respect of which damages are or may be recoverable, the Executive shall immediately notify the Board of that fact and of any claim, compromise, settlement or judgment made or awarded in connection with it and all relevant particulars that the Board may reasonably require. The Executive shall if required by the Board, refund to the Company that part of any damages or compensation recovered by him relating to the loss of earnings for the period of the Incapacity as the Board may reasonably determine less any costs borne by him in connection with the recovery of such damages or compensation, provided that the amount to be refunded shall not exceed the total amount paid to the Executive by the Company in respect of the period of Incapacity. |
12. | CONFIDENTIAL INFORMATION |
12.1. | The Executive acknowledges that in the course of his employment under this agreement he will obtain access to and use Confidential Information which is critical to the Company's present and future commercial interests and continued operation. The Executive agrees and acknowledges that all such Confidential |
12.2. | The Executive shall not (except in the proper course of his duties), either during his employment under this agreement or at any time after its termination (howsoever arising), use or disclose to any person, company or other organisation whatsoever (and shall use his best endeavours to prevent the publication or disclosure of) any Confidential Information. This restriction does not apply to: |
(a) | any use or disclosure authorised by the Board or required by law; or |
(b) | any information which is in the public domain other than through the Executive's unauthorised disclosure; or |
(c) | prevent the Executive from making a protected disclosure within the meaning of section 43A Employment Rights Act 1996. |
13. | GARDEN LEAVE |
13.1. | Following service of notice to terminate this agreement by either party, or if the Executive purports to terminate this agreement in breach of contract, the Company may by written notice require the Executive not to perform any services (or to perform only specified services) for the Company until the termination of this agreement or a specified date (the Garden Leave Period). |
13.2. | During the Garden Leave Period the Company shall be under no obligation to provide any work to, or vest any powers in, the Executive, who shall have no right to perform any services for the Company. |
13.3. | During the Garden Leave Period the Executive shall: |
(a) | continue to receive his salary and all contractual benefits in the usual way; |
(b) | remain an employee of the Company and bound by the terms of this agreement; |
(c) | not, without the prior written consent of the Board, attend his place of work or any other premises of the Company; |
(d) | not, without the prior written consent of the Board, contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, adviser or other business contact of the Company or any Group Company; and |
(e) | (except during any periods taken as holiday in the usual way) ensure that the Board knows where he will be and how he can be contacted during each working day and shall comply with any written requests to contact a specified employee of the Company at specified intervals. |
14. | POST-TERMINATION RESTRICTIONS |
14.1. | The Executive acknowledges that during the course of his employment under this agreement, among other things, he will be privy to Confidential Information and that the Executive will, at the Company's expense, make maintain and develop valuable relationships with clients, customers, staff and third parties. The Executive therefore covenants with the Company that he will not directly or indirectly on his own behalf or on behalf of any other person, concern, undertaking, firm or body corporate either during his employment or for a period of twelve months following the Termination Date less any period spent on Garden Leave pursuant to clause 13 above, in competition with the Restricted Business: |
(a) | be engaged in or concerned in any capacity whatsoever in any business concern, including but not limited to the following: IG Group, Saxobank, CMC Markets, FXCM, London Capital Group, ODL, Gain Financial, Betfair Group, MF Global, GFT, Spreadex, Spread Co, Worldspreads, Alpari, ETX, Gekko Global Markets, Finotec Group, Cantor Index, Delta Index, Macquarie and Capital Spreads. This clause shall not restrain the Executive from being engaged or concerned in any business insofar as the Executive’s duties or work shall relate: |
(i) | solely to geographical areas where the business concern is not in competition with the Restricted Business; or |
(ii) | to services or activities of a kind with which the Executive was not concerned to a material extent and in relation to which he did not have access to any Confidential Information during the Relevant Period. |
(b) | solicit or canvass business from any person, firm or company who at any time during the Relevant Period was a Restricted Customer; |
(c) | solicit or canvass business from any person, firm or company who at any time during the Relevant period was a Prospective Customer; |
(d) | do business with or provide products or services to any person, firm or company who at any time during the Relevant Period was a Restricted Customer; |
(e) | do business with or provide products or services to any person, firm or company who at any time during the Relevant Period was a Prospective Customer; |
(f) | solicit or employ or cause to be employed, whether directly or indirectly, any Employee whether or not this would be a breach of contract on the part of the Employee. |
14.2. | The Executive covenants with the Company that for a period of 12 months following the Termination Date less any period spent on Garden Leave pursuant to clause 13 he will not accept employment with, be engaged in or concerned in any capacity whatsoever in any business concern which intends to compete |
(i) | solely to geographical areas where the business concern is not in competition with the Restricted Business; or |
(ii) | to services or activities of a kind with which the Executive was not concerned to a material extent and in relation to which he did not have access to any Confidential Information during the Relevant Period. |
14.3. | For the purposes of this clause 14 the following expressions shall have the following meanings: |
14.4. | The Executive agrees that the restrictions contained in this clause 14 are reasonable and necessary for the protection of the legitimate interest of the Company and the Group Companies. It is nevertheless agreed that if any of those restrictions shall taken together or separately be held to be void or ineffective for any |
15. | INTELLECTUAL PROPERTY |
15.1. | The Executive shall immediately disclose to the Company any creative work, trade mark, design, copyright (including without limitation the copyright in any software), invention, process or improvement in procedure discovered developed or produced by him alone or with others, to enable the Company to ascertain whether it was discovered developed or produced wholly outside his normal working hours and was wholly unconnected with his employment. The Executive acknowledges and agrees that the copyright, design right, and all and any other intellectual property rights in any works, trademarks, designs, inventions (subject to the provisions of s39 of the Patents Act 1977), processes or improvement in procedure (including without limitation the copyright in any software) (Copyright Works) discovered, developed or produced by him alone or with others (except only those originated conceived written or made by him wholly outside his normal working hours which are wholly unconnected with his employment) shall be the absolute property of the Company and until such rights are fully and absolutely vested in the Company, he shall hold them in trust for the Company absolutely. |
15.2. | The Executive assigns to the Company by way of future assignment all copyright, design right and other proprietary rights (if any) for the full terms thereof throughout the World in respect of all copyright works trademarks and designs originated, conceived, written or made by him (except only those works originated, conceived, written or made by him wholly outside his normal working hours which are wholly unconnected with his employment) during the period of his employment by the Company. |
15.3. | The Executive acknowledges and agrees that having regard to his skills and the business of the Company and because of the nature of his duties and responsibilities, he has an obligation to further the Company's and each Group Company's undertaking and accordingly he acknowledges that any invention, process or improvement in procedure (Invention) discovered or devised by him which is related directly or indirectly to the business of the Company or any Group Company or which is made directly or indirectly in consequence of his employment by the Company (whether or not during his hours of work or using Company property and whether or not discovered in the course of his duties) shall be immediately disclosed to the Company (including full details thereof, drawings, models and the like). The provisions of s39 of the Patents Act 1977 shall apply in determining whether an Invention is the property of the Company (a Company Invention). If the Invention is a Company Invention, he shall hold it in trust for the Company absolutely until such time as the Company Invention shall be fully vested in the Company. |
15.4. | The Executive agrees that he will at the request and expense of the Company complete all necessary deeds and documents and take all action necessary (including joining with the Company in any appropriate application in any country) to vest any Company Invention and Copyright Works and all rights title and interest to the same in the Company and to obtain for the Company the full benefit of all patent trademark copyright and other forms of protection throughout the World. The Executive hereby irrevocably appoints the Company as his attorney to execute any such deeds and documents and to take such action to enable the Company to enjoy the full benefit of any rights granted to it by this clause 15. |
15.5. | The Executive recognises the Company's need to be able to deal without fetter any copyright work in the creation of which he may have been involved as a result of his employment and he hereby irrevocably waives all moral rights as defined in Chapter IV of Part I of the Copyright Designs & Patents Act 1988 in which copyright or design right is vested in the Company whether by Clause 15 or otherwise. |
16. | TERMINATION |
16.1. | Notwithstanding the provisions of clause 2.1, the Company may terminate the Appointment with immediate effect without notice and with no liability to make any further payment to the Executive (other than in respect of amounts accrued due at the date of termination) if the Executive: |
(a) | is guilty of any gross misconduct affecting the business of the Company or any Group Company; or |
(b) | commits any serious or repeated breach or non-observance of any of the provisions of this agreement or refuses or neglects to comply with any reasonable and lawful directions of the Company; or |
(c) | is, in the reasonable opinion of the Board, negligent and incompetent in the performance of his duties; or |
(d) | is declared bankrupt or makes any arrangement with or for the benefit of his creditors; or |
(e) | is convicted of any criminal offence (other than an offence under any road traffic legislation in the United Kingdom or elsewhere for which a fine or non-custodial penalty is imposed) or any offence under any regulation or legislation relating to insider dealing; or |
(f) | fails or ceases to meet the requirements of any regulatory body whose consent is required to enable him to undertake all or any of his duties under this agreement or is guilty of a serious breach of the rules and regulations of such regulatory body or of any compliance manual of the Company; or |
(g) | becomes of unsound mind or a patient under any statute relating to mental health; or |
(h) | ceases to be eligible to work in the United Kingdom; or |
(i) | is guilty of any fraud or dishonesty or acts in any manner which in the opinion of the Board brings or is likely to bring the Executive or the Company into disrepute or is materially adverse to the interests of the Company; or |
(j) | is guilty of a serious breach of any rules issued by the Company from time to time regarding its electronic communications systems; or |
(k) | is unable by reason of Incapacity to perform his duties under this agreement for an aggregate period of 13 weeks in any 52 week period even if, as a result of such termination, the Executive would or might forfeit any entitlement to benefit from sick pay under clause 11 of this agreement. |
16.2. | The rights of the Company under clause 16.1 are without prejudice to any other rights that it might have at law to terminate this agreement or to accept any breach of this agreement by the Executive as having brought the agreement to an end. Any delay by the Company in exercising its rights to terminate shall not constitute a waiver thereof. |
17. | OBLIGATIONS UPON TERMINATION |
17.1. | On termination of this agreement (howsoever arising) the Executive shall: |
(a) | immediately deliver to the Company all documents, books, materials, records, correspondence, papers and information (on whatever media and wherever located) relating to the business or affairs of the Company or its business contacts, any keys, credit card and any other property of the Company which is in his possession or under his control; |
(b) | irretrievably delete any information relating to the business of the Company stored on any magnetic or optical disk or memory and all matter derived from such sources which is in his possession or under his control outside the Company's premises; and |
(c) | provide a signed statement that he has complied fully with his obligations under clause 17.1. |
17.2. | On termination of this agreement howsoever arising the Executive shall not be entitled to any compensation for the loss of any rights or benefits under any share option, bonus, long-term incentive plan or other profit sharing scheme operated by the Company in which he may participate. |
18. | DISCIPLINARY AND GRIEVANCE PROCEDURES |
18.1. | The Executive is subject to the Company's disciplinary and grievance procedures, copies of which are available from the Human Resources Department. These procedures do not form part of the Executive's contract of employment. |
18.2. | The Company may at any time suspend the Executive on full pay during any disciplinary investigation. |
19. | COLLECTIVE AGREEMENT |
20. | RECONSTRUCTION AND AMALGAMATION |
21. | NOTICES |
21.1. | Any notice given under this agreement shall be in writing and signed by or on behalf of the party giving it and shall be served by delivering it personally, or sending it by pre-paid recorded delivery or registered post to the relevant party at (in the case of the Company) its registered office for the time being and (in the case of the Executive) his last known address. Any such notice shall be deemed to have been received: |
(a) | if delivered personally, at the time of delivery; |
(b) | in the case of pre-paid recorded delivery or registered post, 48 hours from the date of posting; and |
21.2. | In proving such service it shall be sufficient to prove that the envelope containing such notice was addressed to the address of the relevant party and delivered either to that address or into the custody of the postal authorities as a pre-paid recorded delivery or registered post. |
22. | VARIATION |
23. | COUNTERPARTS |
24. | THIRD PARTY RIGHTS |
25. | GOVERNING LAW AND JURISDICTION |
25.1. | This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with English law. |
25.2. | The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or claims). |
26. | ENTIRE AGREEMENT |
(a) | this agreement constitutes the entire agreement and understanding between the Executive and the Company and supersedes any previous agreement between them relating to the Appointment (which shall be deemed to have been terminated by mutual consent); |
(b) | in entering into this agreement neither party has relied on any Pre-Contractual Statement; and |
(c) | the only remedy available to each party for breach of this agreement shall be for breach of contract under the terms of this agreement and no party shall have any right of action against any other party in respect of any Pre-Contractual Statement. |
→ | You have had an opportunity to consider the terms of this Agreement for at least twenty-one (21) calendar days; |
→ | You understand that Gain urges you to consult with an attorney of your choosing, at your expense, regarding this Agreement; |
→ | You discussed this Agreement with you lawyer or had a reasonable opportunity to do so, and he or she has answered to your satisfaction any questions you asked with regard to the meaning and significance of any of the provisions of this Agreement; |
→ | You fully understand the significance of all of the terms and conditions of this Agreement; and |
→ | You are executing this Agreement voluntarily and of your own free will and agree to all the terms and conditions contained in this Agreement. |
(a) | Federal laws, such as: |
(b) | State and municipal laws, such as: |
· | The New York State Human Rights Law; the New York State Executive Law; the New York State Civil Rights Law; the New York State Whistleblower Law; the New York State Legal Recreational Activities Law; the retaliation provisions of the New York State Workers’ Compensation Law; the New York Labor Law; the New York State Worker Adjustment and Retraining Notification Act; the New York State False Claims Act; New York State Wage and Hour Laws; the New York State Equal Pay Law; the New York State Rights of Persons with Disabilities Law; the New York State Nondiscrimination Against Genetic Disorders Law; the New York State Smokers’ Rights Law; the New York State Correction Law; the New York Aids Testing Confidentiality Act; the New York Genetic Testing Confidentiality Law; the New York Discrimination by Employment Agencies Law; the New York Bone Marrow Leave Law; the New York Adoptive Parents Child Care Leave Law; the New York City Human Rights Law, as amended; the New York City Administrative Code; the New York City Earned Sick Time Act; and the New York City Charter; and |
· | The New Jersey Law Against Discrimination; the New Jersey Discrimination in Wages Law; the New Jersey Temporary Disability Benefits and Family Leave Insurance Law; the New Jersey Domestic Partnership Act; the New Jersey Conscientious Employee Protection Act; the New Jersey Family Leave Act; the New Jersey Wage Payment Act; the New Jersey Equal Pay Law; the New Jersey Occupational Safety and Health Law; the New Jersey False Claims Act; the New Jersey Smokers’ Rights Law; the New Jersey Genetic Privacy Act; the New Jersey Fair Credit Reporting Act; the New Jersey Emergency Responder Leave Law; the New Jersey Millville Dallas Airmotive Plant Job Loss Notification Act (a/k/a the New Jersey WARN Act); the New Jersey Security and Financial Empowerment Act; and the retaliation provisions of the New Jersey Workers’ Compensation Law; the Jersey City Earned Sick Time Ordinance; and |
· | The Elliott-Larsen Civil Rights Act; the Persons With Disabilities Civil Rights Act; the Payment of Wages and Fringe Benefits Act; the Whistleblowers’ Protection Act; the Michigan Occupational Safety and Health Act; the Bullard-Plawecki Employee Right to Know Act; the Social Security Number Privacy Act; and the Sales Representatives Commission Act. |
Entity Name | Jurisdiction of Incorporation |
City Index (Holdings) Ltd. | England and Wales |
GAIN Capital UK Limited | England and Wales |
GAIN Capital Australia Pty. Ltd. | Australia |
GAIN Capital Singapore Pte. Ltd. | Singapore |
GCAM, LLC | Delaware |
GAIN Holdings, LLC | Delaware |
GAIN Capital Group, LLC | Delaware |
S.L. Bruce Financial Corporation | Ohio |
GAIN Capital Securities, Inc. | Delaware |
GAIN Capital Holdings International, LLC | Delaware |
GAIN Global Markets, Inc. | Cayman Islands |
Island Traders (Cayman), Limited | Cayman Islands |
GAIN Capital-Forex.com Hong Kong, Ltd. | Hong Kong |
GAIN Capital Japan Co., Ltd. | Japan |
GAIN Capital Forex.com Australia Pty. Ltd. | Australia |
GAIN Capital-Forex.com U.K., Ltd. | England and Wales |
GAIN Capital-Forex.com Canada, Ltd. | Canada |
GAIN GTX, LLC | Delaware |
GAIN GTX, Singapore Pte. Ltd. | Singapore |
GAIN Capital Holdings International, B.V. | The Netherlands |
GAIN Capital International Finance Company, B.V. | The Netherlands |
GAIN Capital GTX International, B.V. | The Netherlands |
GAIN Capital – Forex.com International, B.V. | The Netherlands |
GAIN Global Markets International, B.V. | The Netherlands |
GAIN Capital – Forex.com Cyprus Ltd. | Cyprus |
GTX SEF, LLC | Delaware |
Global Futures & Forex, Ltd. | Michigan |
GFT Global Markets UK, Ltd. | England |
Global Asset Advisors, LLC | Illinois |
Top Third AG Marketing, LLC | Delaware |
GAIN Global Markets Bermuda, Ltd. | Bermuda |
Galvan Research & Trading, Ltd. | England |
Faraday Research LLP | England |
Galvan LLP | England |
GTX Bermuda, Ltd. | Bermuda |
Gain Capital Technology Consulting Hong Kong Limited | Hong Kong |
Gain Capital Payments Ltd. | England and Wales |
City Index Academy Ltd. | England and Wales |
IFX Group Ltd. | England and Wales |
IFX Markets Ltd. | England and Wales |
City Index Inc. | Delaware |
FX Solutions LLC | New Jersey |
1. | I have reviewed this annual report on Form 10-K of GAIN Capital Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 17, 2016 | /s/ Glenn H. Stevens | |||||
Glenn H. Stevens | ||||||
President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this annual report on Form 10-K of GAIN Capital Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: March 17, 2016 | /s/ Nigel Rose | |||||
Nigel Rose | ||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |
1. | The accompanying annual report on Form 10-K for the fiscal year ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Glenn H. Stevens |
Glenn H. Stevens Chief Executive Officer and President (Principal Executive Officer) |
1. | The accompanying annual report on Form 10-K for the fiscal year ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Nigel Rose |
Nigel Rose Chief Financial Officer (Principal Financial and Accounting Officer) |
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Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Mar. 11, 2016 |
Jun. 30, 2015 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GAIN Capital Holdings, Inc. | ||
Trading Symbol | GCAP | ||
Entity Central Index Key | 0001444363 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 211 | ||
Entity Common Stock, Shares Outstanding | 48,561,528 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|
Statement of Financial Position [Abstract] | |||||
Receivables from brokers, open contracts at fair value | $ (12,568) | $ 717 | [1] | ||
Property and equipment, accumulated depreciation | (44,750) | (31,544) | [1] | ||
Intangible assets, accumulated amortization | (47,906) | (12,670) | [1] | ||
Other assets, allowance for doubtful accounts | (6,832) | (4,555) | [1] | ||
Payables to customers, open contracts at fair value | $ (143,918) | $ (102,722) | [1] | ||
Common Stock, par value | $ 0.00001 | $ 0.00001 | |||
Common Stock, shares authorized | 120,000,000 | 60,000,000 | |||
Common Stock, shares issued | 52,072,884 | 45,582,066 | |||
Common stock, shares outstanding | 48,771,015 | 42,934,559 | |||
Treasury stock, shares | 3,301,869 | 2,647,507 | |||
|
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
REVENUE: | |||||||
Retail revenue | $ 347,489 | $ 292,778 | $ 215,734 | ||||
Institutional revenue | 33,773 | 34,518 | 28,005 | ||||
Futures revenue | 45,427 | 36,160 | 22,188 | ||||
Other revenue | 8,487 | 4,904 | 1,099 | ||||
Total non-interest revenue | 435,176 | 368,360 | 267,026 | ||||
Interest revenue | 1,220 | 1,428 | 821 | ||||
Interest expense | 1,049 | 599 | 156 | ||||
Total net interest revenue | 171 | 829 | 665 | ||||
Net revenue | 435,347 | 369,189 | 267,691 | ||||
EXPENSES: | |||||||
Employee compensation and benefits | 106,581 | 99,233 | 74,607 | ||||
Selling and marketing | 27,168 | 20,213 | 22,337 | ||||
Referral fees | 103,523 | 90,972 | 52,623 | ||||
Trading expenses | 31,914 | 26,168 | 18,164 | ||||
General and administrative | 55,067 | 38,651 | 26,558 | ||||
Depreciation and amortization | 11,111 | 6,610 | 8,283 | ||||
Purchased intangible amortization | 16,550 | 8,080 | 2,906 | ||||
Communications and technology | 18,929 | 15,567 | 11,315 | ||||
Bad debt provision | 7,462 | 3,699 | 1,501 | ||||
Acquisition expenses | 2,819 | 3,526 | 1,824 | ||||
Restructuring expenses | 3,482 | 2,334 | 450 | ||||
Integration expenses | 33,092 | 2,489 | 1,950 | ||||
Impairment of investment | 0 | 50 | 450 | ||||
Total operating expense | 417,698 | 317,592 | 222,968 | ||||
OPERATING PROFIT | 17,649 | 51,597 | 44,723 | ||||
Interest expense on long term borrowings | 9,222 | 6,147 | 1,233 | ||||
Gain on extinguishment of debt | 0 | 0 | 2,000 | ||||
INCOME BEFORE INCOME TAX EXPENSE | 8,427 | 45,450 | 45,490 | ||||
Income tax (benefit)/expense | (3,512) | 19,140 | 17,383 | ||||
NET INCOME | 11,939 | 26,310 | 28,107 | ||||
Net income attributable to non-controlling interest | 1,660 | 1,433 | 0 | ||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 10,279 | 24,877 | 28,107 | ||||
Other comprehensive (loss)/income: | |||||||
Foreign currency translation adjustment | (4,352) | (4,089) | 1,327 | ||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 5,927 | $ 20,788 | $ 29,434 | ||||
Earnings per common share: | |||||||
Basic (usd per share) | $ 0.22 | $ 0.56 | $ 0.76 | ||||
Diluted (usd per share) | $ 0.22 | $ 0.53 | $ 0.71 | ||||
Weighted average common shares outstanding used in computing earnings per common share: | |||||||
Basic (shares) | 47,601,979 | 40,561,644 | 36,551,246 | ||||
Diluted (shares) | 48,379,051 | 43,214,895 | 39,632,878 | ||||
|
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands |
Total |
Common Stock |
Treasury Stock |
Additional Paid in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income/(Loss) |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
BEGINNING BALANCE (in shares) at Dec. 31, 2012 | [1],[2] | 34,924,095 | |||||||||||
BEGINNING BALANCE at Dec. 31, 2012 | [1] | $ 162,568 | $ (8,280) | $ 85,009 | $ 84,590 | $ 1,249 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Exercise of options (in shares) | [2] | 1,394,975 | |||||||||||
Exercise of options | 2,539 | 2,539 | |||||||||||
Issuance of common stock (in shares) | [2] | 3,625,721 | |||||||||||
Issuance of common stock | 34,771 | 34,771 | |||||||||||
Conversion of restricted stock into common stock (in shares) | [2] | 339,686 | |||||||||||
Shares issued under employee stock purchase plan (in shares) | [2] | 75,191 | |||||||||||
Shares issued under employee stock purchase plan | 302 | 302 | |||||||||||
Repurchase of shares (in shares) | [2] | (934,234) | |||||||||||
Repurchase of shares | (7,189) | (7,189) | |||||||||||
Stock compensation expense | 2,975 | 2,975 | |||||||||||
Tax benefit of stock options exercises | 1,026 | 1,026 | |||||||||||
Other | (216) | (62) | (154) | ||||||||||
Convertible senior note issuance | 12,147 | 12,147 | |||||||||||
Tax effect of convertible senior note | (4,308) | (4,308) | |||||||||||
Adjustment to the redemption value of noncontrolling interests | [1] | 0 | |||||||||||
Dividend declared | (7,326) | (7,326) | |||||||||||
Foreign currency translation adjustment | 1,327 | 1,327 | |||||||||||
Net income | 28,107 | [1] | 28,107 | ||||||||||
ENDING BALANCE (in shares) at Dec. 31, 2013 | [1],[2] | 39,425,434 | |||||||||||
ENDING BALANCE at Dec. 31, 2013 | [1] | 226,723 | (15,469) | 134,399 | 105,217 | 2,576 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Exercise of options (in shares) | [2] | 719,719 | |||||||||||
Exercise of options | 2,087 | 2,087 | |||||||||||
Issuance of common stock (in shares) | [2] | 978,736 | |||||||||||
Issuance of common stock | $ 6,493 | 6,493 | |||||||||||
Conversion of restricted stock into common stock (in shares) | [2] | 1,863,396 | |||||||||||
Shares issued under employee stock purchase plan (in shares) | 98,606 | 98,606 | [2] | ||||||||||
Shares issued under employee stock purchase plan | $ 740 | 740 | |||||||||||
Repurchase of shares (in shares) | [2] | (151,332) | |||||||||||
Repurchase of shares | (1,251) | (1,251) | |||||||||||
Stock compensation expense | 3,452 | 3,452 | |||||||||||
Tax benefit of stock options exercises | 1,221 | 1,221 | |||||||||||
Other | (87) | (14) | (73) | ||||||||||
Adjustment to the redemption value of noncontrolling interests | (2,107) | [1] | (2,107) | ||||||||||
Dividend declared | (8,139) | (8,139) | |||||||||||
Foreign currency translation adjustment | (4,089) | (4,089) | |||||||||||
Net income | 24,877 | [1] | 24,877 | ||||||||||
ENDING BALANCE (in shares) at Dec. 31, 2014 | [1],[2] | 42,934,559 | |||||||||||
ENDING BALANCE at Dec. 31, 2014 | [1] | $ 249,920 | (16,720) | 148,378 | 119,775 | (1,513) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Exercise of options (in shares) | 638,000 | 638,241 | [2] | ||||||||||
Exercise of options | $ 2,386 | 2,386 | |||||||||||
Issuance of common stock (in shares) | [2] | 5,319,149 | |||||||||||
Issuance of common stock | $ 45,100 | 45,100 | |||||||||||
Conversion of restricted stock into common stock (in shares) | [2] | 440,651 | |||||||||||
Shares issued under employee stock purchase plan (in shares) | 92,777 | 92,777 | [2] | ||||||||||
Shares issued under employee stock purchase plan | $ 789 | 789 | |||||||||||
Repurchase of shares (in shares) | [2] | (654,362) | |||||||||||
Repurchase of shares | (5,088) | (5,088) | |||||||||||
Stock compensation expense | 3,680 | 3,680 | |||||||||||
Tax benefit of stock options exercises | 1,140 | 1,140 | |||||||||||
Other | (56) | (56) | |||||||||||
Convertible senior note issuance | 15,348 | 15,348 | |||||||||||
Tax effect of convertible senior note | (3,840) | (3,840) | |||||||||||
Adjustment to the redemption value of noncontrolling interests | 308 | 308 | |||||||||||
Dividend declared | (9,530) | (9,530) | |||||||||||
Foreign currency translation adjustment | (4,352) | (4,352) | |||||||||||
Net income | 10,279 | 10,279 | |||||||||||
ENDING BALANCE (in shares) at Dec. 31, 2015 | [2] | 48,771,015 | |||||||||||
ENDING BALANCE at Dec. 31, 2015 | $ 306,084 | $ (21,808) | $ 212,981 | $ 120,776 | $ (5,865) | ||||||||
|
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividend declared (usd per share) | $ 0.20 | $ 0.20 | $ 0.20 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 | 0 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ 11,939 | $ 26,310 | [1] | $ 28,107 | [1] | ||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | |||||||
Loss / (gain) on foreign currency exchange rates | 2,432 | (1,618) | [1] | 3,641 | [1] | ||
Depreciation and amortization | 27,661 | 14,690 | [1] | 11,189 | [1] | ||
Non-cash integration costs | 26,827 | 1,162 | [1] | 1,163 | [1] | ||
Deferred tax (benefit)/expense | (12,355) | 5,108 | [1] | (5,431) | [1] | ||
Amortization of deferred financing costs | 354 | 354 | [1] | 0 | [1] | ||
Bad debt provision | 7,462 | 3,699 | [1] | 1,501 | [1] | ||
Impairment of investment | 0 | 50 | [1] | 450 | [1] | ||
Convertible senior note discount amortization | 3,624 | 2,150 | [1] | 175 | [1] | ||
Gain on extinguishment of debt | 0 | 0 | [1] | 2,000 | [1] | ||
Stock compensation expense | 3,680 | 3,452 | [1] | 2,975 | [1] | ||
Adjustment to fair value of contingent consideration | (6,722) | 0 | [1] | 0 | [1] | ||
Changes in operating assets and liabilities: | |||||||
Cash and securities held for customers | 101,325 | (9,260) | [1] | (74,769) | [1] | ||
Receivables from brokers | 45,576 | 94,933 | [1] | (78,556) | [1] | ||
Prepaid assets | (1,445) | 2,730 | [1] | 318 | [1] | ||
Other assets | (6,229) | (8,495) | [1] | (1,075) | [1] | ||
Payables to customers | (101,325) | 9,260 | [1] | 74,769 | [1] | ||
Accrued compensation and benefits | (7,454) | 4,497 | [1] | 6,375 | [1] | ||
Accrued expenses and other liabilities | (18,748) | (2,422) | [1] | 7,867 | [1] | ||
Income tax payable | 611 | (9,812) | [1] | 4,414 | [1] | ||
Cash provided by / (used for) operating activities | 77,213 | 136,788 | [1] | (18,887) | [1] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (19,676) | (8,759) | [1] | (6,187) | [1] | ||
Sale of treasury bills | 0 | 614 | [1] | 599 | [1] | ||
Intangible asset purchases | 0 | (12,400) | [1] | 0 | [1] | ||
Funding of acquisitions, net of cash acquired | (3,258) | (14,918) | [1] | (4,219) | [1] | ||
Cash received relating to acquisitions | 7,612 | 0 | [1] | 0 | [1] | ||
Purchase of investment | (759) | 0 | [1] | 0 | [1] | ||
Cash used for investing activities | (16,081) | (35,463) | [1] | (9,807) | [1] | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Contractual payments for acquisitions | (13,893) | 0 | [1] | (2,419) | [1] | ||
Proceeds from issuance of convertible senior note, net | 0 | 0 | [1] | 77,900 | [1] | ||
Principal payment on notes payable | 0 | 0 | [1] | (31,200) | [1] | ||
Proceeds from exercise of stock options | 2,386 | 2,087 | [1] | 2,539 | [1] | ||
Proceeds from employee stock purchase plan | 789 | 740 | [1] | 302 | [1] | ||
Purchase of treasury stock | (5,088) | (1,251) | [1] | (7,189) | [1] | ||
Tax benefit from employee stock option exercises | 1,140 | 1,221 | [1] | 1,026 | [1] | ||
Dividend payment | (9,530) | (8,139) | [1] | (7,326) | [1] | ||
Distributions to non-controlling interest holders | (1,644) | (596) | [1] | 0 | [1] | ||
Cash (used for) / provided by financing activities | (25,840) | (5,938) | [1] | 33,633 | [1] | ||
Effect of exchange rate changes on cash and cash equivalents | (2,755) | 4,093 | [1] | (1,888) | [1] | ||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | 32,537 | 99,480 | [1] | 3,051 | [1] | ||
CASH AND CASH EQUIVALENTS—Beginning of year | [1] | 139,351 | 39,871 | 36,820 | |||
CASH AND CASH EQUIVALENTS—End of year | 171,888 | 139,351 | [1] | 39,871 | [1] | ||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Interest | (5,065) | (3,373) | [1] | (655) | [1] | ||
Taxes | (9,861) | (13,151) | [1] | (8,376) | [1] | ||
Purchase of fixed assets included in accrued expense and other liabilities | 0 | 701 | [1] | 0 | [1] | ||
Convertible senior notes issued as consideration for business acquisitions | 65,000 | 0 | [1] | 0 | [1] | ||
Deferred taxes related to convertible senior notes | (3,840) | 0 | [1] | (4,308) | [1] | ||
Senior loan issued by seller | 0 | 0 | [1] | 33,200 | [1] | ||
Common stock issued as consideration for asset and business acquisitions | 45,100 | 6,493 | [1] | 34,771 | [1] | ||
Adjustment to the redemption value of noncontrolling interests | $ 308 | $ (2,107) | [1] | $ 0 | [1] | ||
|
Description of Business and Basis of Presentation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business GAIN Capital Holdings, Inc. (together with its subsidiaries, the “Company”), is a Delaware corporation formed and incorporated on March 24, 2006. GAIN Holdings, LLC is a wholly-owned subsidiary of GAIN Capital Holdings, Inc., and it owns all outstanding membership units of GAIN Capital Group, LLC (“Group, LLC”), the Company's primary regulated entity in the United States. City Index (Holdings) Ltd ("City Index") is the Company's primary regulated entity outside of the United States. Group, LLC is a retail foreign exchange dealer (“RFED”) and a Futures Commission Merchant (“FCM”) registered with the Commodity Futures Trading Commission (the “CFTC”). As such, it is subject to the regulations of the CFTC, an agency of the U.S. government, and the rules of the National Futures Association (“NFA”), an industry self-regulatory organization. GAIN Capital-Forex.com U.K. Ltd. (“GCUK1”) and GAIN Capital UK Limited ("GCUK2") are each registered in the United Kingdom ("U.K.") and regulated by the Financial Conduct Authority (“FCA”) as full scope €730k IFPRU Investment Firms. The following list includes each of the Company’s significant U.S. and international regulated subsidiaries as of December 31, 2015: GAIN Capital Group, LLC GAIN Capital Forex.com U.K., Ltd. GAIN Capital Japan Co., Ltd. GAIN Capital Forex.com Australia Pty. Ltd. GAIN GTX, LLC Global Assets Advisors, LLC Top Third Ag Marketing LLC Galvan Research and Trading, Ltd. GAIN Capital UK Limited GAIN Capital Australia Pty. Ltd. GAIN Capital Singapore Pte. Ltd. In April 2015, the Company acquired all of the outstanding share capital of City Index from City Index Group Limited. GCUK2, GAIN Capital Australia Pty. Ltd. (“GCAU2”) , and GAIN Capital Singapore Pte. Ltd. ("GCS") are each subsidiaries that were acquired as part of the City Index acquisition. Each of these entities is regulated locally by the relevant regulators, including the FCA. In July 2014, the Company acquired all of the outstanding share capital of Galvan Research and Trading, Ltd. ("Galvan"), a U.K. based corporation, and its subsidiaries, Faraday Research LLP and Galvan LLP. Galvan is regulated by the FCA. In March 2014, the Company acquired controlling interests in Global Asset Advisors, LLC ("GAA") and Top Third Ag Marketing LLC ("Top Third"). In September 2013, the Company purchased all of the outstanding share capital of Global Futures & Forex, Ltd., a Michigan corporation ("GFT"). See Note 11 for further details related to the Company's acquisitions. Basis of Presentation and Principles of Consolidation The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and have been prepared in accordance with the regulations of the Securities and Exchange Commission ("SEC"). During the fourth quarter of 2015, the Company changed its segment reporting structure from a single operating segment to three operating segments, Retail, Institutional and Futures. The Company also provides general corporate services to its segments through a corporate function, which only earns revenues that are incidental to the public entity and is therefore not an operating segment. Such costs are reported as "Corporate and Other." The segment reporting structure is consistent with how the Chief Operating Decision Maker reviews the businesses, makes investing and resource decisions and assesses operating performance. Previously disclosed segment information has been retrospectively adjusted to conform with changes made to the current segment presentation. In connection with the change in segments, management determined that it would be more useful to the users of the consolidated financial statements to have revenue presentation on the Consolidated Statements of Income and Comprehensive Income to have operating revenue presented in a manner consistent with segment revenue, and accordingly, reclassified amounts from Trading revenue and Commission revenue to Retail revenue, Institutional revenue and Futures revenue for the years ended December 31 2014 and 2013. This change in presentation had no impact on Total non-interest revenue. Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and other subsidiaries in which the Company holds a controlling financial interest. All intercompany transactions and balances are eliminated in consolidation. The Company applies relevant accounting standards governing consolidation in determining its principles of consolidation. The Company's consolidated financial statements include non-controlling interests related to certain less than wholly owned subsidiaries. See Note 12 for details regarding non-controlling interests related to certain less than wholly owned subsidiaries. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. In presenting the consolidated financial statements, management makes estimates regarding:
Estimates, by their nature, are based on judgment and available information. Therefore, actual results could differ from those estimates and could have a material impact on the consolidated financial statements, and it is possible that such changes could occur in the near term. Revenue Recognition Revenue is recognized in accordance with revenue recognition guidance. The Company primarily generates revenue through market making and by providing trading execution services for its clients. The Company categorizes revenue as Retail revenue, Institutional revenue, Futures revenue, Other revenue and Net interest revenue. Retail revenue is the Company's largest source of revenue. Retail revenue comprises trading revenue from the retail OTC business, sales trader, and advisory businesses. OTC trading includes forex trading ("forex"), metals trading, contracts-for-difference (“CFDs”) and spread-betting (in markets which do not prohibit such transactions), as well as other financial products. Gains or losses are realized when customer transactions are liquidated. Unrealized gains or losses on trading positions are revalued at prevailing foreign currency exchange rates (the difference between contract price and market price) at the date of the balance sheet and are included in Receivables from brokers as well as Payables to customers on the Consolidated Balance Sheets. Changes in net unrealized gains or losses are recorded in Retail revenue on the Consolidated Statements of Income and Comprehensive Income. Retail revenue is recorded on a trade date basis. Institutional revenue consists of revenue from the Company's GTX business, which provides a proprietary trading platform and sales and trading services to institutions. Revenue for the GTX business is generated primarily through commissions or spreads on trades executed on the GTX platform or by voice-brokers. The Company acts as an agent for the trades executed on the GTX platform. The Company, therefore, does not assume any market or credit risk in connection with those transactions. Revenues are booked on a trade date basis. Futures revenue consists of revenue from the Company's futures business, which offers exchange-based trading execution services, focusing on the indices, agricultural hedging, and commodities sectors. Revenues in this business are generated through commissions, which are earned for executing the Company's customers' trades. These revenues are booked on a trade date basis. The Company acts in an agency capacity with respect to the clearing of trades, but is a principal with respect to fees paid to introducing brokers in its futures business. The Company does not assume any market risk with respect to customer trades in this business. Other revenue primarily comprises account management and transaction fees, inactivity, training fees charged to customer accounts, and adjustments to contingent consideration, as well as foreign currency transaction gains and losses. Net interest revenue consists primarily of the revenue generated by our cash and customer cash held by us at banks, as well as funds on deposit as collateral with our liquidity providers, less interest paid to our customers. Interest revenue and interest expense are recorded when earned and incurred, respectively. Selling and marketing Selling and marketing costs are relate to producing and communicating advertising, as well as other marketing activities, and are expensed as incurred. Restructuring expenses In 2015, 2014 and 2013, the Company incurred restructuring expenses, which reflected costs arising from headcount reductions and other exit costs, measured and disclosed in accordance with relevant accounting guidance. Acquisition expenses In 2015, 2014 and 2013, the Company incurred acquisition related expenses, which included costs such as legal, accounting, valuation and other costs specified in accounting guidance. These costs are expensed as incurred. Integration expenses In 2015, 2014 and 2013, the Company incurred integration expenses, which are acquisition related costs that are subsequently incurred while integrating the acquired company into the consolidated group. Investments For equity investments in which the Company exerts significant influence over operating and financial policies but does not have a controlling financial interest, the equity method of accounting is used. The were no distributed or undistributed earnings from equity method investees during 2015, 2014 or 2013. Impairment of investment In 2013, the Company’s investment in Kapitall, Inc. became impaired. During 2013 and 2014, the remaining carrying value was written off and recognized as an impairment loss. Gain on extinguishment of debt In 2013, the Company settled its GFT acquisition financing for less than the principal amount, in exchange for early payment. The difference between the principal and payment constituted Gain on extinguishment of debt. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of acquisition to be cash equivalents. At December 31, 2015 and 2014, the Company’s cash equivalents consisted of money market accounts with an initial maturity of 90 days or less. Cash equivalents are recorded at fair value. Cash and securities held for customers Cash and securities held for customers represents cash and other highly liquid assets held to fund customer liabilities in connection with trading positions. Included in this balance are funds deposited by customers and funds accruing to customers as a result of trades or contracts. The Company records a corresponding liability in connection with this amount in Payables to customers. In addition, the Company holds certain customer funds in segregated or secured broker accounts. Legally segregated balances are not available for general use, in accordance with certain jurisdictional regulatory requirements. Fair Value Certain financial assets and liabilities are recorded at fair value in accordance with applicable accounting guidance, as discussed in Note 4 Fair Value Information. Other financial assets and liabilities are not measured at fair value on a recurring basis but nevertheless approximate fair value due to their short term maturities. Such financial assets and liabilities include: Receivables from brokers; certain other assets; Payables to customers; and Accrued expenses and other liabilities. The above referenced receivables and payables include open trading positions which are held at fair value, hedging and customer positions, both of which change in value as the price of the underlying product changes. The prices approximate the amounts at which the Company can settle the positions at the balance sheet date. Concentrations of Credit Risk The Company owns financial instruments that subject the Company to credit risk. These financial instruments are held primarily in Cash and cash equivalents as well as Cash and securities held for customers. The Company’s credit risk is managed by investing cash and cash equivalents primarily in high-quality money market and from time to time U.S. and Canadian Government instruments. The majority of the Company’s cash and cash equivalents are held at ten financial institutions. The Company also has credit risk related to receivables from brokers included in Receivables from brokers. As of December 31, 2015 and 2014, 28% and 29%, respectively, of the Company’s Receivables from brokers balance, included in the Consolidated Balance Sheets, was from one large, global financial institution. Receivables from Brokers Receivables from brokers include funds that the Company has posted with brokers as collateral required by agreements for holding hedging positions. Also, Receivables from brokers contains funds required to collateralize customer futures trading, as well as the related excess and the Company's own collateral. These amounts are reflected as Receivables from brokers on the Consolidated Balance Sheets and include gains or losses realized on settled contracts, as well as unrealized gains or losses on open positions. Property and Equipment and Other Long-Lived Assets Property and equipment are recorded at cost, net of accumulated depreciation. Identifiable significant improvements are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Property and equipment are depreciated on a straight-line basis over a three year useful life, except for leasehold improvements, which are depreciated on a straight-line basis over the shorter of the lease term or estimated useful life. The Company accounts for costs incurred to develop its trading platforms and related software in accordance with Accounting Standards Codification ("ASC") 350-40, Internal-Use Software. ASC 350-40 requires that such technology be capitalized in the application and infrastructure development stages. Costs related to training, administration and non-value-added maintenance are charged to expense as incurred. Capitalized software development costs are being amortized over the useful life of the software, which the Company has estimated at three years. In accordance with ASC 360-10, Property, Plant and Equipment, the Company periodically evaluates the carrying value of long-lived assets when events and circumstances warrant such review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from such an asset are separately identifiable and are less than the carrying value. In that event, a loss is recognized in the amount by which the carrying value exceeds the fair market value of the long-lived asset. This guidance applies to assets held for use and not to assets held for sale. The Company has no assets held for sale. The Company has identified no such impairment indicators as of December 31, 2015 or December 31, 2014. Foreign Currencies Items included in the financial statements of each of the Company's subsidiaries are measured using the currency of the primary environment in which the subsidiaries operate ("the functional currency"). The Company has determined that its functional currency is U.S. dollars (“USD”). The Company’s Accumulated other comprehensive income/(loss), consists of foreign currency translation adjustments from subsidiaries not using the USD as their functional currency. Foreign currency transactions are remeasured into functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in Other revenue on the Consolidated Statements of Income and Comprehensive Income. The Company recorded foreign exchange losses of $2.4 million, gains of $1.6 million and losses of $3.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Intangible Assets Accounting guidance addressing intangible assets requires purchased intangible assets other than goodwill to be amortized over their estimated useful lives unless their lives are determined to be indefinite. If indefinite-lived assets are determined to have a finite life in the future, the Company will amortize the carrying value over the remaining estimated useful life at that time. The Company analyzes its business, legal, and regulatory environment at least annually and on an interim basis when conditions indicate impairment may have occurred to determine whether its indefinite-lived intangible assets are likely to be impaired. This qualitative assessment indicated that it is more likely than not that the Company's indefinite lived intangible assets are not impaired. See Note 8 for additional information. Goodwill In accordance with relevant accounting guidance, the Company tests goodwill for impairment on an annual basis during the fourth quarter and on an interim basis when conditions indicate impairment may have occurred (see Note 8). In performing these assessments, management relies on and considers a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, comparable market transactions (to the extent available), other market data and the Company's overall market capitalization. There are inherent uncertainties related to these factors which require judgment in applying them to the analysis of goodwill and indefinite-lived intangible assets for impairment. Goodwill impairment is determined by comparing the estimated fair value of the reporting units with their respective carrying value. At the date of the latest test as of December 31, 2015, using both the income approach and market approach, the fair value of each of the Company's reporting units was significantly in excess of its book value, as such no impairment was identified. Other Assets The Company records short term investments, receivables from vendors, security deposits, current and deferred tax assets, an indemnification asset, customer debit positions, net of related allowance, and miscellaneous receivables in Other assets on the Consolidated Balance Sheets. The Company considers all investments with an original maturity of greater than 90 days, but less than one year to be short term investments. Short term investments consist of short-term certificates of deposit. All income from the certificates of deposit is recorded as interest income when earned. See Note 9 for additional information. Derivatives Forex, metals, and CFDs allow for exchanging the difference in value of a particular asset such as stock index, energy product, or gold contracts, between the time at which a contract is opened and the time at which it is closed. The Company's retail customer open positions and positions with liquidity providers are considered derivatives under derivatives accounting guidance. Therefore, they are accounted for at fair value, and included in Receivables from brokers and Payables to customers in the Consolidated Balance Sheets. The Company did not designate any of its derivatives as hedging instruments. Net gains and losses with respect to derivative instruments are reflected in Retail Revenue in the accompanying Consolidated Statements of Income and Comprehensive Income. Allowance for Doubtful Accounts The Company records an increase in the allowance for doubtful accounts when the prospect of collecting a specific customer account balance becomes doubtful. Management specifically analyzes accounts receivable and historical bad debt experience when evaluating the adequacy of the allowance for doubtful accounts. Should any of these factors change, the estimates made by management will also change, which could affect the level of the Company’s future provision for doubtful accounts. The customer receivables, net of allowance for doubtful accounts, is included in Other assets on the Consolidated Balance Sheets. Receivables from customers are reserved for and the related reserves are recorded in Bad debt provision on the Consolidated Statements of Income and Comprehensive Income. The allowance for doubtful accounts consisted of the following (amounts in thousands):
Payables to Customers Payables to customers, included on the Consolidated Balance Sheets, include amounts due on cash and margin transactions. These transactions include deposits, commissions and gains or losses arising from settled trades. The payables balance also reflects unrealized gains or losses arising from open positions in customer accounts. The Company engages in white label, or omnibus relationships, with other regulated financial institutions. The payables balance includes amounts deposited by these financial institutions in order for the Company to act as clearing broker. Referral fees Introducing brokers direct customers to the Company in return for a commission on each referred customer’s trading volume or a share of net revenue generated by each referred customer’s trading activity. Such fees are referred to as introducing broker fees and are recorded on a trade date basis, in Referral Fees, in the Consolidated Statements of Income and Comprehensive Income. Trading Expenses Trading expenses consist of exchange fees paid to stock exchanges and other third-parties for exchange market data that the Company provides to its customers or uses to create its own derived data products, as well as fees for news services and fees paid to prime brokers in connection with its institutional GTX business and futures business. Income Taxes Income tax expense is provided for using the asset and liability method, under which deferred tax assets and liabilities are determined based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using currently enacted tax rates. The Company operates under a permanent reinvestment strategy, under which earnings derived from foreign businesses remain invested in the Company’s foreign subsidiaries. In accordance with accounting guidance, the Company does not recognize domestic tax expense related to the permanently reinvested earnings. The Company has no plans to repatriate accumulated unremitted earnings as of December 31, 2015. Employee compensation and benefits In accordance with stock compensation guidance, the Company recognizes expense for all share-based payments to employees, including grants of employee stock options as well as restricted stock units on the basis of grant date fair values. The Company estimates fair value using the Black Scholes model for stock options and fair value on grant date for restricted stock units. Shares typically vest incrementally and equally on an annual basis over a four year period, without performance triggers or other requirements beyond continued service. For each type of award, the Company reduces expense by an estimated forfeiture rate. See Note 15 for additional share based payment disclosure. The Company make estimates in determining its quarterly and annual accrued non-share-based compensation. A significant portion of the Company's employee incentive compensation programs is discretionary. Each quarter and year-end the Company determines the amount of its expected discretionary cash bonus pools. Treasury Shares In accordance with ASC 505-30, Equity - Treasury Stock, the Company treats the cost of acquired shares purchased as a deduction from shareholders’ equity and as a reduction of the total shares outstanding when calculating earnings per share. Earnings Per Common Share Basic earnings per common share is calculated using the weighted average common shares outstanding during the year. Common equivalent shares from stock options and restricted stock awards, using the treasury stock method, are also included in the diluted per share calculations unless their effect of inclusion would be anti-dilutive. See Note 16 for discussion of the impact of the Company's convertible note and non-controlling interests on EPS. Risk Management The Company offers its customers access to a diverse range of over 12,500 financial products, including spot foreign exchange, or forex, and precious metals trading, as well as “contracts for difference”, or CFDs, which are investment products with returns linked to the performance of underlying asset. We offer CFDs on currencies, commodities, indices, individual equities, bonds and interest rate products. We also support trading of exchange-traded futures and options on futures on more than 30 global exchanges. In the United Kingdom, we offer spread bets, which are investment products similar to CFDs, but that offer more favorable tax treatment for residents of that country. The Company actively trades currencies in the spot market, earning a dealer spread. The Company seeks to manage its market risk by generally entering into offsetting contracts in the interbank market, also on a margin basis. The Company deposits margin collateral with large money center banks and other major financial institutions. The Company is subject to credit risk or loss from counterparty nonperformance. The Company seeks to control the risks associated with its customers’ activities by requiring its customers to maintain margin collateral. The Company's trading platforms do not allow customers to enter into trades if sufficient margin collateral is not on deposit with the Company. The Company developed risk-management systems and procedures that allow it to manage the market and credit risk associated with managed flow activities in real-time. The Company does not actively initiate directional market positions in anticipation of future movements in the relative prices of currencies and evaluates market risk exposure on a continuous basis. As a result of the Company’s hedging activities, the Company is likely to have open positions in various currencies at any given time. An additional component of the risk-management approach is that levels of capital are maintained in excess of those required under applicable regulations. The Company also maintains liquidity relationships with three established, global prime brokers and at least six other liquidity providers, providing the Company with access to a liquidity pool. |
Restatement |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTATEMENT | RESTATEMENT The Company has determined that there were errors in the manner in which the Company accounted for income taxes as of and for the years ended December 31, 2014 and 2013 and for certain quarters of 2015 under ASC 740 (ASC 740), Income Taxes. These errors related primarily to the manner in which certain intercompany payables and receivables among domestic and overseas subsidiaries of the Company were treated for accounting and tax purposes during the impacted periods. The consolidated financial statements of the Company as of and for the years ended December 31, 2014 and 2013 included in this report have been restated to reflect the correction of these errors. In addition, certain other adjustments, previously determined to be immaterial individually and in the aggregate, have also been corrected in the restated financial statements. Other immaterial adjustments mentioned above include an error related to the calculation of the redemption value of the non-controlling interests previously recorded as an out of period adjustment in the six month period ended June 30, 2015. This previous out of period adjustment of $1.3 million reduced retained earnings and increased non-controlling interests. This has now been reflected in the appropriate periods. All relevant footnotes to the consolidated financial statements, including the quarterly financial data presented in Note 23 have also been restated to reflect the items discussed above. The following tables reflect the financial statement line items impacted by the restatement. The column headed "Tax Adjustment" reflects the impact of the tax matters discussed above, while the "All Other Adjustments" column reflects the impact of the other previously identified immaterial adjustments in the Consolidated Balance Sheet and Statements of Income and Comprehensive Income. The column headed "Adjustments" reflects the impact of the tax matters discussed above as well as the impact of the other previously identified immaterial adjustments in the Consolidated Statement of Cash Flows. For the avoidance of doubt, the following tables include only those line items impacted by the restatement. Consolidated Balance Sheet
(1) The Company previously reported $174,000 as Short term investments, at fair value; this amount has been reclassified to Other assets, net of allowance for doubtful accounts to conform to current year presentation Consolidated Statements of Income and Comprehensive Income
(1) - The Company has changed its revenue presentation, see Note 1 for detail
(1) - The Company has changed its revenue presentation, see Note 1 for detail Consolidated Statement of Changes in Shareholders' Equity
Consolidated Statement of Cash Flows
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Recent Accounting Pronouncements |
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Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued new guidance regarding the accounting for leases. The FASB issued this update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently assessing the impact on its consolidated financial statements of adopting this guidance. In September 2015, the FASB issued new guidance regarding the accounting for provisional adjustments of business combinations. The guidance states that if changes are required to be made to provisional amounts included in previously issued financial statements, such changes should be included in the period in which they are identified. These changes include adjustments to goodwill, as well as the cumulative impact of adjustments for depreciation, amortization or other income. The guidance is effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. This guidance will impact how the Company deals with provisional adjustments for business combinations following adoption. In April 2015, the FASB issued new guidance regarding the accounting for debt issuance costs. The guidance requires presenting any deferred financing costs from debt issuances as a reduction in the amount of debt included on the balance sheet, which is a change from currently applicable rules requiring such costs to be classified as assets. In August 2015, the FASB issued updated guidance, which incorporated an SEC staff announcement highlighting that costs incurred for line-of-credit arrangements could be recorded as assets and amortized ratably over the term of the line-of-credit arrangement (regardless of whether there are any outstanding borrowings). The guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance that superseded the previously existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. The guidance requires recognizing revenue when transferring promised goods or services to customers. Recognition should reflect the consideration which the company expects to receive in exchange for those goods or services. The guidance requires enhanced disclosures to help financial statement users better understand the nature, amount, timing and uncertainty of the revenues that are recognized. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2017, which is a one year deferral from the original guidance, approved by the FASB in July 2015. Early application is permitted for annual periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the impact on its consolidated financial statements of adopting this guidance. |
Fair Value Information |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE INFORMATION | FAIR VALUE INFORMATION Accounting guidance defines fair value as the price that would be received in exchange for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three level hierarchy that ranks the quality and reliability of information used in developing fair value estimates for financial instruments. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three levels of fair value hierarchy are summarized below: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 - Valuations that require inputs that are both unobservable to a market participant and significant to the fair value measurement. For assets and liabilities that are transferred between levels during the period, fair values are ascribed as if the assets or liabilities had been transferred as of the beginning of the period. The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis during the reporting period and the related hierarchy levels (amounts in thousands):
The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the years ended December 31, 2015 and December 31, 2014, nor has there been any movement between levels during these respective periods. Level 1 Financial Assets The Company has money market accounts, certificates of deposit and an investment in gold that are Level 1 financial instruments that are recorded based upon listed or quoted market rates. The money market accounts are recorded in Cash and cash equivalents and Cash and securities held for customers; the certificates of deposit are recorded in Other Assets and the investment in gold is recorded in Other Assets. Level 2 Financial Assets and Liabilities The Company has customer derivative contracts that are Level 2 financial instruments recorded in Payables to customers. The Company has broker derivative contracts that are Level 2 financial instruments recorded in Receivables from brokers. The fair values of these Level 2 financial instruments are based upon directly observable values for underlying instruments. Level 3 Financial Liabilities Under the agreements governing the Company's acquisition of Galvan, the Company was obligated to make contingent payments that are Level 3 financial liabilities. These contingent payments were recorded under Accrued expenses and other liabilities on the Company's Consolidated Balance Sheets. The fair value of these payments was determined using current Company-specific and risk free interest rates as of the balance sheet date and probability-weighted forecasts of the acquired company's performance and client accounts, the estimation of which does not have any basis in quoted or observable markets. Significant increases (decreases) in any of the forecast inputs in isolation would result in a significantly higher (lower) fair value measurement, while significant increases (decreases) in interest rates would result in a significantly lower (higher) fair value measurement. In December 2015, the Company entered into an agreement with the former owners of Galvan to satisfy all remaining obligations under the contingent earn-out arrangement for a one-time payment of $1.5 million, which was paid in early 2016. The following is a rollforward of the Level 3 liabilities from January 1, 2014 to December 31, 2015 (amounts in thousands):
Gains included in earnings - adjustment to fair value of contingent consideration and Gains included in earnings - currency revaluation for Level 3 liabilities are reported in Other revenue, while losses included in earnings attributable to discount amortization are reported in Interest expense. Financial Instruments Not Measured at Fair Value The table below presents the carrying value, fair value, and fair value hierarchy category of certain financial instruments that are not measured at fair value in the consolidated balance sheets (amounts in thousands). Receivables from brokers comprise open trades, which are measured at fair value (disclosed above), and the Company's deposits, which are not measured at fair value but approximate fair value. These deposits approximate fair value because they are cash balances that the Company may withdraw at its discretion. Such settlement would occur within a relatively short period of time once a withdrawal is initiated. Payables to customers comprise open trades, which are measured at fair value (disclosed above), and customer deposits that the Company holds for its role as clearing broker. These deposits are not measured at fair value, but approximate fair value, because they are cash balances that the Company or its customers can settle at either party's discretion. Such settlement would occur within a relatively short period of time once a withdrawal is initiated. The carrying value of Convertible senior notes represents the notes’ principal amounts net of unamortized discount (see Note 14). The Company assessed the notes' fair value as determined by current Company-specific and risk free interest rates as of the balance sheet date. The carrying value of Accrued expenses and other liabilities included $20.0 million as of December 31, 2014, referred to as the Holdback Amount, which is an amount relating to the Company's acquisition of GFT. These liabilities were settled, and accordingly, there are no liabilities for the Holdback Amount as of December 31, 2015. The carrying values of Accrued expense and other liabilities as of December 31, 2014 not measured at fair value approximate fair value because of the relatively short period of time between their origination and expected settlement date.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES The Company's contracts with its customers and its liquidity providers are deemed to be derivative instruments. The table below represents the fair values of the Company’s derivative instruments reported within Receivables from brokers and Payables to customers on the accompanying Consolidated Balance Sheet (amounts in thousands):
The Company’s derivatives include different underlyings, which vary in price. Foreign exchange contracts typically have prices less than two dollars, while certain metals contracts and CFDs can be considerably higher priced. The table below presents the number of contracts reported within Receivables from brokers and Payables to customers on the consolidated balance sheets (amounts in thousands):
The Company did not designate any of its derivatives as hedging instruments. Net gains with respect to derivative instruments reflected in Retail Revenue in the accompanying Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2015 and 2014 were as follows (amounts in thousands):
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Receivables From Brokers |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES FROM BROKERS | RECEIVABLES FROM BROKERS Amounts receivable from brokers consisted of the following as of (amounts in thousands):
The Company has posted funds with brokers as collateral required by agreements for holding trading positions. These amounts are reflected as Receivables from brokers on the Consolidated Balance Sheets. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, including leasehold improvements and capitalized software development costs, consisted of the following as of (amounts in thousands):
As mentioned in Note 1 above, the Company purchased all of the outstanding share capital of City Index in April 2015, Galvan in July 2014 and controlling interests in GAA and Top Third in March 2014. The final purchase price allocation for City Index, Galvan, GAA and Top Third to property and equipment are detailed below in Note 11. Depreciation and amortization expense for property and equipment was $11.1 million, $6.6 million and $8.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company adjusted the depreciation and amortization period of certain property and equipment that experienced changes in estimated useful lives as a result of the City Index and GFT acquisitions. This change in useful lives resulted in an additional charges of $5.4 million and $1.2 million for the years ended December 31, 2015 and 2014. The additional charge was recorded in Integration expenses. In addition, the Company wrote off certain property and equipment that became obsolete as a result of the City Index acquisition. This resulted in an additional charge of $1.9 million for the year ended December 31, 2015. The additional charge was recorded in Integration expenses. |
Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets The Company's various finite-lived intangible assets consisted of the following as of (amounts in thousands):
(1) These indefinite-life trademarks relate to the Forex.com and foreignexchange.com domain names where management determined there was no legal, regulatory or technological limitation on their useful lives. These trademarks are also supported annually in the Company's impairment test for intangible assets. (2) The increase in total intangibles for the year ended December 31, 2015 was primarily due to the customer lists, technology and trademarks acquired as part of the City Index acquisition. See Note 11 for details of the intangibles acquired in the Company's City Index, GAA, Top Third and Galvan acquisitions. The technology acquired pursuant to the asset purchase agreements with Valaquenta Intellectual Property Limited ("Valaquenta") and Forexster Limited ("Forexster"), is described in further detail below. The Company has the following identifiable intangible assets as of December 31, 2015:
(1) Trademarks with indefinite lives, as described above, comprise $0.4 million of the gross $8.7 million of trademarks. The final purchase price allocations to intangible assets for the acquisitions of City Index, Galvan, GAA, and Top Third acquisitions are detailed below in Note 11. On July 10, 2014, the Company entered into asset purchase agreements with Forexster, pursuant to which one of the Company's subsidiaries, GAIN GTX Bermuda, Ltd. ("GTX Bermuda"), agreed to purchase from Valaquenta and Forexster the software and other intellectual property assets utilized to operate the electronic trading platform offered to customers in the Company's Gain GTX, LLC ("GTX") business. The purchase was made with a combination of $12.4 million in cash and $5.3 million in shares of the Company's unregistered common stock. GTX Bermuda agreed to pay Valaquenta contingent consideration in the event that GTX Bermuda or any of its affiliates in the future provide customers the ability to trade new types of financial instruments using the purchased intellectual property and the trading of such new products generates "Net Revenue" (as defined in the agreement with Valaquenta) in excess of thresholds set out in the agreement. Prior to the closing of the acquisitions, the Company had agreements with Valaquenta and Forexster granting it the exclusive right to use the intellectual property in the field of forex trading and non-exclusive rights to use the intellectual property for the trading of financial products in the fields of precious metals and hydrocarbons. Following the closing of the acquisition, GTX Bermuda has full rights and title over the intellectual property for trading of currencies, commodities and all other financial instruments of any kind whatsoever. This purchase added $21.4 million to the Company's intangible assets, $3.7 million of which were previously held as a prepayment made to Forexster under an exclusive rights agreement. The Company has assigned a 10 year useful life to this asset. Amortization expense for the purchased intangibles was $16.6 million, $8.1 million and $2.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company adjusted the amortization periods of certain intangible assets that experienced a change of estimated useful lives as a result of the City Index acquisition. This change resulted in an additional charge of $19.7 million during the year ended December 31, 2015. The additional charge is recorded in Integration expenses. During 2013, the Company accelerated $1.2 million of a software platform which was recorded in Integration expenses. Future annual estimated amortization expense is as follows (amounts in thousands):
Goodwill Goodwill is calculated as the difference between the cost of acquisition and the fair value of the net identifiable assets of an acquired business. As of December 31, 2015 and December 31, 2014, the Company had recorded goodwill of approximately $34.0 million and $33.6 million, respectively. The increase of $0.4 million was primarily related to the City Index acquisition. There were no goodwill impairments as a result of performing the Company's 2015 and 2014 annual impairment tests. As previously noted, the Company changed its segment reporting structure effective December 31, 2015, from a single operating segment to three operating segments, Retail, Institutional and Futures. Goodwill has been allocated based on the relative fair value of each newly identified reporting units within such segments. The allocation was performed effective as of the same date as the goodwill impairment test. The following represents the carrying amount of goodwill by segment (amounts in thousands):
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Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS | OTHER ASSETS Other assets consisted of the following as of (amounts in thousands):
Under the terms of the GFT acquisition, an initial amount of $20.0 million, referred to as the Holdback Amount, was deferred, to be paid following the settlement of certain liabilities of GFT after the closing date of the acquisition. The selling stockholder of GFT agreed to indemnify the Company for these liabilities. At December 31, 2014, based on the Company's best estimate of the amounts necessary to settle such liabilities, the Company recorded an indemnification asset of $8.8 million at December 31, 2014. This was included within Other assets in the purchase price allocation of GFT. During the twelve months ended December 31, 2015, the previous liabilities of GFT were settled and, therefore, the Company made payments to the selling shareholder of GFT, as required by the stock purchase agreement providing for the acquisition of GFT, which settled the liability associated with the Holdback Amount. |
Related Party Transactions |
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Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Certain officers and directors of the Company have personal funds on deposit in separate customer accounts with the Company. These accounts are recorded in Payables to customers on the consolidated balance sheets. The aggregate amount of these funds was $0.3 million and $3.6 million at December 31, 2015 and December 31, 2014, respectively. IPGL Limited, the majority selling shareholder in the acquisition of City Index, has a trading account with the Company, which is recorded in Payables to customers on the consolidated balance sheet. The aggregate amount of these funds was $21.7 million at December 31, 2015. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS City Index (Holdings) Limited On April 1, 2015, the Company acquired the entire issued and outstanding share capital of City Index. City Index is a global online trading firm specializing in offering CFDs, forex and spread betting for retail customers. This acquisition was made to strengthen and diversify the Company's existing global footprint in the retail business. The purchase price consisted of approximately $6.1 million in cash, inclusive of working capital adjustments and $1.0 million in cash to be held in escrow, 5,319,149 shares of the Company's common stock, inclusive of 4,787,234 shares to be held in escrow, and 4.125% unsecured Convertible Senior Notes with an aggregate principal amount of $60.0 million and fair value of $65.0 million, inclusive of an aggregate principal amount of $54.0 million to be held in escrow. In addition, the Company paid City Index approximately $22.4 million, which was used to settle certain inter-company liabilities between City Index and City Index Group Limited (its former parent company). The difference in the purchase price from June 30, 2015 to December 31, 2015 was due to the finalization of working capital adjustments. The purchase price was derived as follows (amounts in thousands):
The purchase price of City Index was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
Acquisition expenses were $2.8 million or the year ended December 31, 2015. They were recorded in Acquisition Expense. For the period from acquisition to December 31, 2015, revenues generated by City Index were $136.0 million, of which $30.8 million have been eliminated in consolidation, and expenses were $95.0 million of which $2.3 million have been eliminated in consolidation. City Index generated income before taxes of $41.0 million, of which $28.5 million have been eliminated in consolidation. The weighted average lives of City Index's intangible assets are 7.9 years for customer lists, 7.0 years for trade names, and 6.9 years for technology. Galvan Research and Trading, Ltd. In July 2014, the Company acquired all the share capital of Galvan and its wholly owned subsidiaries, Faraday Research LLP and Galvan LLP. The purchase price was $20.3 million. This acquisition was made to add an advisory capability to complement the Company's retail business. The purchase price was $9.7 million in cash and a contingent payment of $10.5 million payable over a three year period. Over the three year period, the contingent payment is subject to a fair value assessment related to achieving specific financial and customer account targets. The actual contingent payment for 2014 was $2.1 million, which was paid on September 30, 2015. For the twelve months ended December 31, 2015, the Company adjusted the contingent payment's value based on forecasts of performance related to 2015 and 2016 payments, and in December 2015 settled the outstanding contingent payment for $1.5 million payable in early 2016 (See Note 4). The purchase price was derived as follows (amounts in thousands):
The purchase price of Galvan was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
Acquisition expenses were $0.4 million for the year ended December 31, 2014. They were recorded in Acquisition Expense. For the period from acquisition to December 31, 2014, revenues generated by Galvan were $5.2 million, of which $2.4 million have been eliminated in consolidation, and expenses were $3.0 million, generating income before taxes of $2.2 million. Global Asset Advisors, LLC In March 2014, the Company acquired a 55% interest in GAA. The purchase price was $5.6 million. This acquisition was made to strengthen the Company's futures business. The purchase price was derived as follows (amounts in thousands):
The purchase price of GAA was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
Acquisition expenses were $0.1 million for the year ended December 31, 2014 and were recorded in Acquisition Expense. For the period from acquisition to December 31, 2014, revenues generated by GAA were $5.5 million, of which $4.3 million was eliminated in consolidation, and expenses were $4.8 million, generating income before taxes of $0.7 million, of which $0.3 million was recorded to non-controlling interests. Top Third Ag Marketing LLC In March 2014, the Company acquired a 55% interest in Top Third. The purchase price was a $3.5 million cash payment. This acquisition was made as part of the Company's strategy to diversify its revenue base. The purchase price of Top Third was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
Acquisition expenses were $0.1 million for the year ended December 31, 2014 and were recorded in Acquisition Expense. For the period from acquisition to December 31, 2014, revenues generated by Top Third were $5.1 million and expenses were $2.6 million, generating income before taxes of $2.5 million, of which $1.1 million was recorded to non-controlling interests. Global Futures & Forex, Ltd On September 24, 2013, the Company entered into an Amended and Restated Stock Purchase Agreement with Gary L. Tilkin, a natural person (the “Seller”), and GFT, pursuant to which the Company purchased all of the issued and outstanding share capital of GFT from the Seller. The acquisition was made as part of the Company's strategy to increase its offering of products and to expand its retail and institutional businesses into new markets and geographies. The purchase price allocation was derived as follows (amounts in thousands):
The purchase price of GFT was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
Acquisition expenses were $1.8 million for the year ended December 31, 2013 and were recorded in Acquisition Expense. For the period from acquisition to December 31, 2013, revenues generated by GFT were $26.9 million and expenses were $32.0 million, generating a loss before taxes of $5.1 million. Pro Forma Information (unaudited): The following unaudited pro forma operating data is presented as if the acquisition of City Index had occurred on January 1, 2014, and includes actual results for GFT for periods after their acquisition in September 2013, GAA and Top Third for periods after their acquisition in March 2014, as well as Galvan results after its acquisition in July 2014. This data does not include any proforma adjustments for the GFT, GAA, Top Third or Galvan acquisitions, as the Company believes it is more useful to present the pro forma effects of the City Index acquisition on their own in light of the transaction's significance. The unaudited pro forma data does not include the impact of forecasted operating expense synergies. The unaudited pro forma data is provided for informational purposes only and may not necessarily be indicative of future results of operations or what the results of operations would have been had the Company and City Index operated as a combined entity for the periods presented. Unaudited pro forma income statement line items for the twelve months ended December 31, 2015 and December 31, 2014 were as follows (amounts in thousands):
The following unaudited pro forma operating data is presented as if the acquisition of GAA, Top Third and Galvan had occurred on January 1, 2013. The unaudited pro forma data does not include the impact of forecasted operating expense synergies. The unaudited pro forma data is provided for informational purposes only and may not necessarily be indicative of future results of operations or what the results of operations would have been had the Company and the acquired companies operated as a combined entity for the periods presented. Unaudited pro forma income statement line items for the twelve months ended December 31, 2014 and December 31, 2013 were as follows (amounts in thousands):
The following unaudited pro forma operating data are presented as if the acquisition of GFT had occurred on January 1, 2012. The unaudited pro forma data does not include the impact of forecasted operating expense synergies. The unaudited pro forma data is provided for informational purposes only and may not necessarily be indicative of future results of operations or what the results of operations would have been had the Company and GFT operated as a combined entity for the periods presented. Unaudited pro forma income statement line items for the twelve months ended December 31, 2013 and December 31, 2012, were as follows (amounts in thousands):
(1) Other expenses items for the year ended December 31, 2013, included a one-time, non-recurring expense of $5.1 million relating to a GFT accrual for certain liabilities to third parties. Restructuring In 2013, the Company incurred Restructuring expenses, which reflected the cost of reducing global headcount following the GFT acquisition. Additional headcount reductions in the third quarter of 2014 were designed to meet challenging market conditions in the first half of 2014 and to achieve greater cost efficiency in general. The Company incurred $3.5 million of restructuring expenses for the twelve months ended December 31, 2015, which reflected the cost of reducing global headcount following the City Index acquisition. These expenses are recorded under Restructuring expense in the Consolidated Statements of Income and Comprehensive Income and the restructuring liability is recorded in Accrued compensation and benefits in the Consolidated Balance Sheets.
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Non-controlling Interests |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS Non-controlling interests In March 2014, the Company acquired controlling interests in GAA and Top Third. The Company purchased 55% of each entity, and the respective sellers maintained a 45% interest in each entity. The 45% interests are redeemable at prices determined by applying a contractually agreed upon formula to the respective acquired company's financial results. The Company owns immediately exercisable call options to purchase the remaining interests in each company. The minority owners hold put options, which become exercisable in 2017 or upon the occurrence of certain events, to compel the Company to purchase the remaining interests. The non-controlling interests are not classified as liabilities, because redemption is not mandatory or at fixed prices. They are not classified as equity because their redemption is not exclusively in the Company's control. Therefore, the non-controlling interests are held in temporary equity in the Consolidated Balance Sheets. The non-controlling interests' carrying value is determined by the Company's purchase prices and the non-controlling interests' share of the Company's subsequent net income. This value is benchmarked against the redemption value of the sellers' put options. The carrying value is adjusted to the latter, provided that it does not fall below the initial carrying values, as determined by the Company's purchase price allocation. The Company has made a policy election to reflect any changes caused by such an adjustment in retained earnings, rather than in current earnings. The table below reflects the non-controlling interests effects on the Company's financial statements:
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Shareholders' Equity |
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Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Common Stock — At December 31, 2015 and 2014, the Company had authorized 120,000,000 and 60,000,000 shares of Common Stock, respectively, of which 52,072,884 and 48,771,015 shares were issued and outstanding, respectively as of December 31, 2015, and 45,582,066 and 42,934,559 shares were issued and outstanding, respectively as of December 31, 2014. Treasury Stock — As of December 31, 2015 and 2014, the Company had repurchased 3.3 million shares and 2.6 million shares, respectively, of outstanding Common Stock for an aggregate cost of $21.8 million and $16.7 million, respectively, reducing the number of shares outstanding. Dividends — In February, May, July and November of 2015, 2014 and 2013, the Company announced the payment of a $0.05 quarterly dividend per share of Common Stock. The dividend payments announced in February, May, July and November were paid in March, June, September and December of each year, for an aggregate amount of $9.5 million, $8.1 million and $7.3 million respectively, which was applied against Retained Earnings. |
Convertible Senior Notes |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONVERTIBLE SENIOR NOTES | CONVERTIBLE SENIOR NOTES Convertible Senior Notes due 2020 On April 1, 2015, as part of the City Index acquisition consideration, the Company issued to the sellers $60.0 million aggregate principal amount of 4.125% Convertible Senior Notes maturing on April 1, 2020. These Convertible Senior Notes pay interest semi-annually on April 1 and October 1 at a rate of 4.125% per year, which commenced on October 1, 2015. Prior to the date that is six months immediately preceding the maturity date, the Convertible Notes will be convertible only upon the occurrence of specified events set forth in the Note Indenture. Thereafter, until the close of business on the business day immediately preceding the maturity date, holders may convert their Convertible Notes at any time. The Company will settle conversions of the Convertible Notes by paying or delivering, as the case may be, cash, shares of Common Stock or a combination thereof, at its election. The conversion rate for the Convertible Notes will be equal to $1,000, divided by the initial conversion price, rounded to the nearest 1/10,000th share of Common Stock. The initial conversion price will be equal to 125% of the arithmetic average of the daily volume-weighted average price for the Common Stock over the 20 consecutive trading day period ending on, and including, the trading day immediately preceding the closing date; provided that the initial conversion price shall not exceed the greater of (i) $9.25 and (ii) the last reported sale price of the Common Stock on the Closing Date; and shall not be less than $7.20. The conversion rate and the corresponding conversion price will be subject to customary anti-dilution adjustments, as described in the Note Indenture, including, but not limited to, Common Stock splits, Common Stock combinations, issuances of Common Stock as a dividend on the Common Stock, issuances of options rights, warrants or other securities of the Company as a dividend on the Common Stock, payment by the Company of any cash dividend in excess of $0.05 per quarter per share of Common Stock, and above-market tender offers or exchange offers by the Company or its subsidiaries for the Common Stock. In addition, in certain circumstances, the Company may be required to increase the conversion rate for any Convertible Notes converted in connection with a make-whole fundamental change as defined in the Note Indenture. If the Company undergoes a fundamental change, holders may require the Company to repurchase for cash all or part of their Convertible Notes at a purchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the date of repurchase. Prior to the date that is two years immediately preceding the maturity date, the Company will not have the right to redeem the Convertible Notes. During the two year period immediately preceding the maturity date, the Company may redeem for cash all, but not less than all, of the Convertible Notes if the last reported sale price of the Common Stock equals or exceeds 130% of the conversion price for the Convertible Notes for at least 20 trading days, whether or not consecutive, during the 30 consecutive trading day period ending on the trading day immediately preceding the date the Company delivers notice of redemption. If the Company elects to redeem the Convertible Notes, holders may convert their Convertible Notes at any time prior to the close of business on the business day immediately preceding the redemption date. The Indenture will contain events of default customary for convertible debt securities (with customary grace periods, as applicable) and will provide that, upon the occurrence of an event of default arising from certain events of bankruptcy or insolvency with respect to the Company, all outstanding Convertible Notes will become due and payable immediately without further action or notice. If any other type of event of default occurs and is continuing, then the holders of at least 25% in aggregate principal amount of the then outstanding Convertible Notes or the trustee may declare all of the outstanding Convertible Notes to be due and payable immediately. Convertible Senior Notes due 2018 On November 27, 2013, the Company issued $80.0 million principal amount of 4.125% Convertible Senior Notes maturing on December 1, 2018. The Company received net proceeds of $77.9 million, after deducting the initial purchasers' discount. These Convertible Senior Notes pay interest semi-annually on June 1 and December 1 at a rate of 4.125% per year, which commenced on June 1, 2014. The Convertible Senior Notes will be convertible at an initial conversion rate of 83.33 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $12.00. In addition, following certain corporate transactions occurring prior to the maturity date, the Company will, in certain circumstances, increase the conversion rate for a holder electing to convert notes in connection with such corporate transaction. Upon conversion, the Company will deliver cash up to the principal amount. With respect to any conversion value in excess of the principal amount, the Company will deliver shares of its common stock, unless it elects to deliver cash in lieu of all or a portion of such shares. Holders may convert notes in integral multiples of $1,000 principal amount, at any time prior to the close of business on the business day immediately preceding June 1, 2018, but only in the following circumstances:
In addition, regardless of the foregoing circumstances, holders may convert their notes at any time on or after June 1, 2018 until the close of business on the business day immediately preceding the maturity date. In addition, if the Company undergoes a fundamental change (as defined in the Note indenture), holders may, subject to certain conditions, require the Company to repurchase their notes for cash at a price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest. Under accounting guidance, an entity must separately account for the liability and equity components of a convertible debt instrument that may be settled entirely or partially in cash upon conversion. The separate accounting must reflect the issuer's economic interest cost. The fair value of the equity component, net of pro-rata initial purchasers’ discounts, is included in the additional paid-in capital section of stockholders' equity in the Company's Consolidated Balance Sheets. The principal amount of the Convertible Senior Notes is reduced by unamortized original issue discount, which reflects the Convertible Senior Notes fair value. At issuance, the equity component of the Convertible Senior Notes was valued at $27.9 million before pro-rata initial purchasers' commissions of $0.3 million and related additional costs of $0.1 million. The Convertible Senior Notes were valued at $117.1 million consisting of $140.0 million of principal, net of $27.9 million allocated to equity, not including pro-rata initial purchasers' commissions of $1.8 million and additional related costs of $0.4 million. The original issue discount will be amortized over the life of the Convertible Senior Notes due 2020 and 2018 using the effective interest rate of 8.6% and 8.1%, respectively. Relevant accounting guidance requires entities to disclose the dilutive effects of convertible instruments. As of December 31, 2015 and 2014, the Company’s common stock had not met the convertibility criteria noted in the offering memorandum. Therefore, the Convertible Senior Notes were not dilutive as of December 31, 2015 and 2014. The balances of the liability and equity components as of December 31, 2015 and 2014, were as follows, with amounts in thousands:
Interest expense related to the Convertible Senior Notes, included in Interest expense on long-term borrowings in the Consolidated Statements of Income and Comprehensive Income, was as follows, with amounts in thousands:
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE BASED COMPENSATION | SHARE BASED COMPENSATION Share Based Payment Total share-based compensation cost recognized during 2015, 2014 and 2013 consisted of the following ($ in thousands:)
On September 30, 2015, the Company's board of directors adopted the GAIN Capital Holdings, Inc. 2015 Omnibus Incentive Compensation Plan, (the "2015 Plan"), which became effective November 30, 2015. The 2015 Plan replaces the GAIN Capital Holdings, Inc. 2010 Omnibus Incentive Compensation Plan, (the “2010 Plan”). The 2015 Plan has available 8.7 million shares (5.8 million to be issued pursuant to future awards and grants under the 2015 Plan, 2.7 million shares that are subject to outstanding grants under the 2010 Plan, and 0.2 million shares to be issued pursuant to the 2011 Employee Stock Purchase Plan) for awards to employees, nonemployee directors, consultants, and advisors in the form of incentive stock options ("ISO"), nonqualified stock options ("NQSO"), restricted stock awards ("RSA"), restricted stock units ("RSU"), stock appreciation rights and other stock-based awards. The "evergreen" provision that allowed the Company to authorize additional shares to be issued under the 2010 plan was removed from the 2015 Plan. Accordingly, the maximum number of shares that can be issued will be fixed and cannot be increased in the future without shareholder approval. Under the 2015 Plan, the Compensation Committee of the Board of Directors (the "Compensation Committee") will determine the exercise price of the options granted and may grant options to purchase shares of the Company’s common stock in amounts as determined by the Compensation Committee. The Compensation Committee may grant options that are intended to qualify as ISOs under Section 422 of the Internal Revenue Code, or NQSOs which are not intended to so qualify. ISOs may only be granted to employees. Anyone eligible to participate in the 2015 Plan may receive a grant of NQSQs. The exercise price of a stock option granted under the 2015 Plan cannot be less than the fair market value of a share of the Company’s common stock on the date the option is granted. All options granted under the 2015 Plan expire ten years from the date of grant. Stock Options The following table summarizes the stock option activity under all plans from January 1, 2015 through December 31, 2015 (in thousands, except per share amounts):
The following table summarizes information concerning outstanding and exercisable stock options as of December 31, 2015:
The weighted-average remaining contractual life for the 1.4 million outstanding options as of December 31, 2015, is approximately 4.16 years. There were 0.9 million stock options exercisable as of December 31, 2015. The total intrinsic value of stock options exercised during 2015, 2014, and 2013 respectively were $3.5 million, $4.2 million and $4.7 million. During 2015, the Company had 0.3 million stock options vest. The Company received $2.4 million, $2.1 million, and $2.5 million from stock option exercises in 2015, 2014, and 2013, respectively. In 2015, the Company granted 0.1 million options to employees. In 2014, the Company granted 0.1 million options to employees. In 2013, the Company granted 0.5 million options to employees. The weighted average grant-date fair value of stock options granted in the years ended December 31, 2015, 2014, and 2013 was $3.43, $3.79, and $1.22, respectively. The Compensation Committee approved stock option grants with a fair market value estimated under a Black-Scholes option pricing valuation model using the following assumptions:
The expected volatility was calculated on the basis of the volatility of the Company's common stock. The average risk free rate is based upon the risk free rate of the U.S. Treasury bond rate with a maturity commensurate with the expected term. The options granted during 2015 were granted on May 26, 2015. Restricted Stock Units and Restricted Stock Awards The 2015 Plan provides for the issuance of RSUs that are convertible on a 1:1 basis into shares of the Company’s common stock. The Company maintains a restricted stock unit account for each grantee. RSU grants typically vest over four years, with 25% vesting on each anniversary date of the grant. After the RSUs vest, the grantee shall receive payment in the form of cash, shares of the Company’s common stock, or a combination of the two, as determined by the Company. Payment of cash and/issuance of shares shall be made upon the vesting date, upon a predetermined delivery date, upon a change in control of the Company, or upon the employee leaving the Company. The Company has historically settled these awards through the issuance of common stock to recipients and intends to continue to do so. The Company may also issue performance grants, which vest immediately, but under which delivery of the common stock is deferred until a later date. RSUs are assigned the value of the Company’s common stock at date of grant issuance, and the grant date fair value is amortized over a four year period. During 2015, 2014 and 2013, 0.6 million, 0.5 million and 0.8 million RSUs, respectively, were granted to employees and members of the Board of Directors. The 2015 Plan also provides for the issuance of restricted stock awards, or RSAs, which represent shares of the Company’s common stock subject to transfer and other restrictions. The Company maintains a restricted stock award account for each grantee. Restrictions typically lapse over four years, with 25% vesting on each anniversary date of the grant. After the restrictions lapse, or upon a change in control of the Company, the grantee shall receive payment in the form of cash, shares of the Company’s common stock, or a combination of the two, as determined by the Company. The Company has historically settled these awards through the issuance of common stock to recipients and intends to continue to do so. The Company may also issue performance grants which have immediate vesting. There were no RSAs granted during 2015, 2014 or 2013. A summary of the status of the Company’s nonvested shares of RSUs and RSAs as of December 31, 2015 and changes during the year ended December 31, 2015, is presented below (in thousands, except per share amounts):
As of December 31, 2015, there was $7.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2010 Plan. The cost is expected to be recognized over a weighted-average period of approximately three years . The fair market value on the grant date for RSUs and RSAs vested during the years ended December 31, 2015, 2014 and 2013 was $2.9 million, $4.3 million and $1.7 million, respectively. The total intrinsic value of the RSUs and RSAs that became unrestricted during the year ended December 31, 2015 was $4.2 million at the date they became unrestricted. RSUs and RSAs that were vested during the year ended December 31, 2015, had a value at grant date of $2.9 million. The Company granted RSUs during the year ended December 31, 2015 which had a value of $5.7 million at grant date. The fair market value of RSUs and RSAs at the date of grant during the year ended December 31, 2014 was $4.5 million. Employee Stock Purchase Plan The 2011 Employee Stock Purchase Plan ("ESPP") was adopted by the Company’s Board of Directors on November 22, 2010. The ESPP became effective on January 1, 2011. The ESPP permits eligible employees to purchase shares of the Company’s common stock at a 15% discount from the lesser of the fair market value per share of the Company’s common stock on the first day of the offering period or the fair market value of the Company’s common stock on the interim purchase date through after-tax payroll deductions. The total number of shares reserved for issuance under the ESPP was initially 500,000. It is intended that the ESPP meet the requirements for an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. For the year ended December 31, 2015, 92,777 shares were issued under the plan. For the year ended December 31, 2014, 98,606 shares were issued under the ESPP. The discount on the ESPP of $0.1 million is recorded to Employee compensation and benefits on the Consolidated Statement of Income and Comprehensive Income. |
Earnings Per Common Share |
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EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic and diluted earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the determinants of basic net income per share and, in addition, gives effect to the potential dilution that would occur if securities or other contracts to issue common stock were exercised, vested or converted into common stock, unless they are anti-dilutive. Diluted weighted average common shares include vested and unvested stock options, vested restricted stock units and vested restricted stock awards which are to be delivered as soon as administratively practicable on or after December 31, 2015, unvested restricted stock units and unvested restricted stock awards. Approximately 0.4 million and 0.1 million stock options were excluded from the calculation of diluted earnings per share for the years ended December 31, 2015 and 2014, respectively, as they were anti-dilutive. Diluted earnings per share excludes any shares of Company common stock potentially issuable under the Company's convertible notes, which are discussed in Note 14. Based upon an assumed trading price of $13 for each share of the Company's common stock, and if the relevant conditions under the indentures governing both 2018 and 2020 convertible senior notes were satisfied, there would be an additional 0.5 million and 1.5 million dilutive shares for the 2018 and 2020 notes, respectively. The following table sets forth the computation of earnings per share (amounts in thousands except share and per share data):
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Legal |
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Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL | LEGAL From time to time the Company becomes involved in legal proceedings and in each case the Company assesses the likely liability and/or the amount of damages as appropriate. Where available information indicates that it is probable a liability had been incurred at the date of the consolidated financial statements and the Company can reasonably estimate the amount of that loss, the Company accrues the estimated loss by a charge to income. In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is often not possible to reasonably estimate the size of the possible loss or range of loss. For certain legal proceedings, the Company can estimate possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued. For certain other legal proceedings, the Company cannot reasonably estimate such losses, if any, since the Company cannot predict if, how or when such proceedings will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues must be developed, including the need to discover and determine important factual matters and the need to address novel or unsettled legal questions relevant to the proceedings in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any proceeding. Litigation On February 16, 2012, the Company received a Letter of Claim on behalf of certain individuals who had lost money in an investment scheme operated by a third-party money management firm, incorporated in the United Kingdom, which has since been closed down by the United Kingdom’s Financial Services Authority. The investment firm, Cameron Farley Ltd, had opened a corporate account with the Company and invested the individuals’ money, representing such funds as its own, while operating a fraudulent scheme. Though a complaint has been filed and served on the Company, the claimants requested, and the Company agreed, to follow the United Kingdom’s Pre-Action Protocol, a pre-litigation process intended to resolve matters without the need to engage in formal litigation. The Company submitted a Response to the Letter before Claim on July 4, 2012. On July 5, 2012 the Company received a substantially similar Letter of Claim on behalf of further individuals. Subsequently, the parties agreed to consolidate claims by those other similarly situated individuals with the pending Pre-Action Protocol process. The parties agreed it would be more appropriate for the proceedings to be dealt with in the Commercial Court and the matters were transferred pursuant to Consent Orders dated March 14, 2013. The Company subsequently filed an application for strike out and/or summary judgment in respect of all claims on March 15, 2013. The claimants filed an answer to the Company's motion on June 2, 2013 and subsequently the Company filed a response to this answer on July 15, 2013. A hearing was held on the Company's application for strike out and/or summary judgment on September 18 and 19, 2013. After the hearing, the judge asked the claimants to respond in writing to his additional questions from the hearing. The claimants had until October 11, 2013 to provide answers and the Company was given until November 1, 2013 to respond. On February 26, 2014, the judge denied the Company's motion for strike out and/or summary judgment. Case management conferences were held by the Court on October 17, 2014 and June 18, 2015. On August 3, 2015, the claimants filed an Amended Master Particulars of Claim, and on October 6, 2015, the Company filed an Amended Defense. The parties have completed discovery and provided disclosure on October 30, 2015. The current Court timetable provides for a trial date in the first quarter of 2017. The Company can provide no assurances that this matter will be successfully resolved. As of the date of this report, a potential loss or a potential range of loss cannot be reasonably estimated. Through the Company's acquisition of Open E Cry ("OEC"), the Company became the subject of a patent infringement lawsuit originally filed against OEC on February 9, 2010 in the U.S. District Court for the Northern District of Illinois by Trading Technologies International, Inc. ("Trading Technologies") seeking injunctive relief and unspecified damages. As reflected in a Second Amended Complaint filed on June 15, 2011, plaintiff alleged infringement of 12 patents relating to real-time display of price quotes and market depth on OEC's electronic trading interfaces. The case was consolidated with 11 related cases in February 2011, and the parties have exchanged infringement, non-infringement and invalidity contentions for several of the disputed patents. On May 6, 2015, the Company entered into a settlement and license agreement with Trading Technologies pursuant to which the Company made a one-time royalty payment to Trading Technologies in exchange for a volume-based license for the disputed patents. The Company was fully indemnified for the amount of the royalty payment by the former owner of OEC and therefore the Company incurred no net expense. The lawsuit was dismissed on May 6, 2015. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases & Purchase Obligations — The Company leases office space under non-cancelable operating lease agreements that expire on various dates through 2025. Such leases do not require any contingent rental payments or impose any financial restrictions. Certain of the Company's leases include renewal options and escalation clauses. In addition, the Company has certain non-cancelable purchase obligations for its operational needs. Future annual minimum lease payments for the Company's non-cancellable operating leases and purchase obligations are as follows (amounts in thousands):
Rent expense, which is recorded on a straight-line basis, was $3.7 million, $5.1 million, and $3.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Income Taxes |
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INCOME TAXES | INCOME TAXES The following table presents the U.S. and non-U.S. components of income before income tax (benefit) / expense for the years ended December 31, 2015, 2014, and 2013 (amounts in thousands):
Income tax (benefit) / expense consisted of (amounts in thousands):
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The Company’s net deferred tax assets are included in Other assets on the Consolidated Balance Sheets. The net change in valuation allowance for the year ended December 31, 2015 was $0.2 million. Significant components of the Company’s deferred tax assets and liabilities were as follows (amounts in thousands):
The Company has $62.4 million in foreign net operating loss (“NOL”) carry forwards as of December 31, 2015. These NOLs begin to expire in 2019. The Company has a deferred tax asset of $13.3 million relating to these NOLs for which it has established a valuation allowance of $0.9 million. The following table reconciles the effective tax rate to the U.S. federal statutory income tax rate:
In 2015 the Company had a number of discrete tax items that impacted its effective tax rate:
At December 31, 2015, the Company had approximately $100.0 million held in earnings of its foreign subsidiaries. The Company has made provision for U.S. taxes that would arise on distribution if $48.3 million of these earnings were repatriated to the United States. The remaining earnings are indefinitely invested outside the United States and are expected to be reinvested in the working capital and other business needs of the foreign subsidiaries. If the remaining earnings had been repatriated into the United States as of December 31, 2015, in the form of dividends or otherwise, the Company would have been subject to additional income taxes of approximately $9.8 million. The Company has recorded a liability of $11.8 million related to uncertain tax positions at December 31, 2015 in accordance with ASC 740-10, Income Taxes. This liability is recorded in Accrued expenses and other liabilities on the Consolidated Balance Sheet. The following table summarizes the activity to the gross unrecognized tax benefits from uncertain tax positions (amounts in thousands):
Included in the balance of unrecognised tax benefits as of December 31, 2015, December 31, 2014 and December 31, 2013 are $11.8 million, $10.5 million and $8.3 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate. The Company’s open tax years range from 2013 through 2015 for its U.S. federal returns, from 2012 through 2015 for the U.K., from March 2015 through March 2016 for Japan and from 2011 through 2015 for its major state jurisdictions. It is reasonably possible that the amount of liability for unrecognized tax benefits could change during the next 12 months. An estimate of the range of the possible change cannot be made until issues are further developed or examinations closed. In addition to the total unrecognized tax benefits noted above, the Company recorded $1.8 million and $2.3 million of penalties and interest for the years ended December 31, 2015 and December 31, 2014, respectively. These amounts are recorded in Income tax (benefit) / expense in the Consolidated Statements of Income and are part of the uncertain tax positions impact when reconciling the federal income tax rate to the Company's effective tax rate. |
Retirement Plans |
12 Months Ended |
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Dec. 31, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS The Company sponsors a “Safe Harbor” 401(k) retirement plan which was put into effect as of January 1, 2011. The plan provides for a 100% match by the Company on the first 3% of the employee’s salary contributed to the plan and 50% on the next 2% with immediate vesting on all employer contributions, subject to IRS limitations. Substantially all of the Company’s employees are eligible to participate in the plan. The expense recorded to employee compensation and benefits on the Consolidated Statements of Income and Comprehensive Income by the Company for its employees’ participation in the respective plans during the years ended December 31, 2015, 2014 and 2013 was $0.9 million, $1.3 million, and $0.9 million, respectively. |
Regulatory Requirements |
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REGULATORY REQUIREMENTS | REGULATORY REQUIREMENTS Group, LLC, the Company’s FCM and RFED subsidiary, is subject to the CFTC Net Capital Rule (Rule 1.17) and NFA Financial Requirements Sections 11 and 12. Under applicable provisions of these regulations, Gain Capital Group, LLC is required to maintain adjusted net capital of the greater of $2.5 million or 8% of Customer and Non-Customer Maintenance Margin or $20.0 million plus 5.0% of all liabilities owed to retail customers exceeding $10.0 million. At December 31, 2015, Group LLC maintained $10.2 million more than the required minimum regulatory capital for a total of 1.4 times the required capital and at all times maintained compliance with all applicable regulations. GAIN Capital Securities, Inc. ("GCSI") is a broker-dealer registered with the SEC under the Securities Exchange Act of 1934, as amended. GCSI is a member of the Financial Industry Regulatory Authority (“FINRA”), Municipal Securities Rulemaking Board (“MSRB”), and Securities Investor Protection Corporation (“SIPC”). Pursuant to the SEC’s Uniform Net Capital Rule 15c3-1, GCSI is required to maintain a minimum net capital balance (as defined) of $0.05 million. GCSI must also maintain a ratio of aggregate indebtedness (as defined) to net capital of not more than 15 to 1. At December 31, 2015, GCSI maintained $0.3 million more than the minimum required regulatory capital for a total of 4.0 times the required capital and at all times maintained compliance with all applicable regulations. GCUK1 is registered in the U.K. and regulated by the FCA as a full scope €730k IFPRU Investment Firm. GCUK1 is required to maintain the greater of $1.0 million (€730,000) or the Financial Resources Requirement, which is calculated as the sum of the firm’s operational, credit, counterparty, concentration, market and forex risk. At December 31, 2015, GCUK1 maintained $33.8 million more than the minimum required regulatory capital for a total of 2.2 times the required capital and at all times maintained compliance with all applicable regulations. GCUK2 is registered in the U.K. and regulated by the FCA as a full scope €730k IFPRU Investment Firm. GCUK2 is required to maintain the greater of $1.0 million (€730,000) or the Financial Resources Requirement, which is calculated as the sum of the firm’s operational, credit, counterparty, concentration, market and forex risk. At December 31, 2015, GCUK2 maintained $73.4 million more than the minimum required regulatory capital for a total of 2.3 times the required capital and at all times maintained compliance with all applicable regulations. Forex.com Japan Co., Ltd. (“GC Japan”) is a registered Type I financial instruments business firm regulated by the Japan Financial Services Agency ("FSA") in accordance with Financial Instruments and Exchange Law (Law No. 25 of 1948, as amended). GC Japan is a member of the Financial Futures Association of Japan. GC Japan is subject to a minimum capital adequacy ratio of 120%, which is derived by dividing Net Capital (as defined in Law No. 25) by the sum of GC Japan’s market, counterparty credit risk and operational risk. At December 31, 2015, GC Japan maintained $8.7 million more than the minimum required regulatory capital for a total of 10.7 times the required capital and at all times maintained compliance with all applicable regulations. GCAU1 is regulated under the laws of Australia, including the Corporations Act 2001 (Commonwealth of Australia). The Australian Securities and Investments Commission ("ASIC) is the corporate, markets and financial services regulator in Australia responsible for administering aspects of the Corporations Act 2001. GCAU1 holds an Australian Financial Services License that has been issued by ASIC. GCAU1 is required to maintain a minimum capital requirement of $0.7 million (1.0 million AUD). The regulatory capital held is required to be in excess of 110% of its requirements at all times. At December 31, 2015, GCAU1 maintained $1.7 million more than the minimum required regulatory capital for a total of 3.4 times the required capital and at all times maintained compliance with all applicable regulations. Effective January 31, 2014, ASIC increased the Net Tangible Assets (NTA) requirement, as part of RG166: Licensing: Financial Requirements, for OTC derivative issuers. ASIC requires retail OTC derivative issuers to have at all times the greater of $0.8 million or 10% of average revenue on hand at all times. RG166 outlines that, at the minimum, 50% of the NTA requirement is required to be held in cash or cash equivalents and 50% in liquid assets. OTC derivative issuers must report to ASIC if their NTA falls below 110% of the requirement within 3 business days after becoming aware of the event. GCAU2 is regulated under the laws of Australia, including the Corporations Act 2001 (Commonwealth of Australia). GCAU2 holds an Australian Financial Services License that has been issued by ASIC. GCAU2 is required to maintain a minimum capital requirement of $0.7 million (1.0 million AUD). The regulatory capital held is required to be in excess of 110% of its requirements at all times. At December 31, 2015, GCAU2 maintained $2.1 million more than the minimum required regulatory capital for a total of 4.0 times the required capital and at all times maintained compliance with all applicable regulations. GCHK is licensed by the Securities and Futures Commission (“SFC”) to carry out Type 3 Regulated Activity, Leveraged Foreign Exchange Trading. GCHK is subject to the requirements of section 145 of the Securities and Futures Ordinance (Cap.571). Under this rule, GCHK is required to maintain a minimum liquid capital requirement of the higher of $1.9 million or the sum of 1.5% of its aggregate gross foreign currency position and 5% of its adjusted liabilities and clients’ margin calculated in accordance with applicable rules. At December 31, 2015, GCHK maintained $2.0 million more than the minimum required regulatory capital for a total of 2.1 times the required capital and at all times maintained compliance with all applicable regulations. GAIN Global Markets, Inc. (“GGMI”), the Company’s Cayman Island subsidiary, is a registered securities arranger with the Cayman Islands Monetary Authority (“CIMA”). GGMI is required to maintain a capital level that is the greater of one quarter of relevant annual expenditure, or the financial resources requirement which is the sum of the Base Requirement, counterparty and position risk requirement, or $0.1 million. At December 31, 2015, GGMI maintained $0.1 million more than the minimum required regulatory capital for a total of 1.5 times the required capital and at all times maintained compliance with all applicable regulations. GAIN Capital - Forex.com Canada, Ltd. ("GCCA") is a Dealer Member of the Investment Industry Regulatory Organization of Canada ("IIROC) and regulated under the laws of Canada, including the Canadian Investor Protection Fund. In Canada, the securities industry is governed by provincial or territorial legislation, and there is no national regulator. Local legislation differs from province to province and territory to territory, but generally requires that forex dealing representatives register with applicable regulators and self-regulatory organizations in order to offer forex and/or CFD products to retail clients. GCCA’s principal provincial regulator is the Ontario Securities Commission, or OSC. GCCA is required to maintain risk-adjusted capital in excess of the minimum capital requirement. At December 31, 2015, GCCA maintained $1.2 million more than the minimum required regulatory capital for a total of 7.0 times the required capital and at all times maintained compliance with all applicable regulations. GCS is registered by the Monetary Authority of Singapore (“MAS”) and operates as an approved holder of Capital Market Services License. GCS is subject to the requirements of MAS and pursuant to the Securities and Futures Act (Cap 289). Under these rules GCS is required to maintain a minimum base capital of $0.6 million (1.0 million SGD) and Financial Resources in excess of 120% of the total risk requirements, which is calculated as the sum of operational, counterparty, large exposure and forex risk at all times. At December 31, 2015, GCS maintained $6.8 million more than the required minimum regulatory capital for a total of 12.3 times the required capital and at all times maintained compliance with all applicable regulations. Galvan is registered in the U.K. and regulated by the FCA as a BIPRU Limited Licence Firm. Galvan is required to maintain a base financial resources requirement of $0.1 million (€0.05 million) and a capital requirement of the higher of either credit risk plus market risk or fixed overhead requirement. At December 31, 2015, Galvan maintained $3.6 million more than the minimum required regulatory capital for a total of 6.1 times the required capital and at all times maintained compliance with all applicable regulations. GAA is a registered Introducing Broker and is subject to the CFTC Net Capital Rule (Rule 1.17). Under applicable provisions of these rules, GAA is required to maintain adjusted net capital of $0.1 million. At December 31, 2015, GAA maintained $1.1 million more than the minimum required regulatory capital for a total of 12.0 times the required capital and at all times maintained compliance with all applicable regulations. The following table illustrates the minimum regulatory capital our subsidiaries were required to maintain as of December 31, 2015 and the actual amounts of capital that were maintained (amounts in millions):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION ASC 280, Disclosures about Segments of an Enterprise and Related Information, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise which engage in business activities from which they may earn revenues and incur expenses and about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision making group, in deciding how to allocate resources and in assessing performance. Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments. The Company’s operations relate to global trading services and solutions. During the fourth quarter of 2015, the Company changed its internal reporting structure and the information provided to its chief operating decision maker. As a result the Company has changed its segment reporting structure to include three operating segments, retail, institutional and futures, rather than a single operating segment as had been previously reported. These operating segments are discussed in more detail below. The Company also reports information relating to general corporate services in a fourth component, corporate and other. Information in these consolidated financial statements reflects the information presented to the chief operating decision maker, and prior periods have been retrospectively adjusted to reflect the current segment structure. The chief operating decision maker does not review total assets by operating segment. Retail Segment Business in the retail segment is conducted primarily through the Company's FOREX.com and City Index brands. The Company provides its retail customers around the world with access to a diverse range of 12,500 global financial markets, including spot forex, precious metals and CFDs on commodities, indices, individual equities and interest rate products, as well as OTC options on forex. In the United Kingdom, the Company also offer spread bets, which are investment products similar to CFDs, but that offer more favorable tax treatment to residents of that country. Institutional Segment The institutional segment provides agency execution services and offers access to markets and self-directed trading in foreign exchange, commodities, equities, options and futures via an electronic communications network, or ECN, through the Company's GTX platform. The Company also offers high touch sales and trading aided by a team of sales employees. Futures Segment The futures segment offers execution and related services for exchange-traded futures and futures options on major U.S. and European exchanges. The Company offers futures services through its subsidiary, GAIN Capital Group, LLC, under the GAIN Capital Futures brand. In addition, in 2014, the Company expanded its futures business by acquiring majority interests in GAA and TT. Corporate and other Corporate and other provides general corporate services to the Company's segments and also includes eliminations between operating segments which were $(1.3) million, $(0.9) million and $(0.9) million for the twelve months ended December 31, 2015, 2014 and 2013. Corporate and other revenue primarily comprises foreign currency transaction gains and losses. During the twelve months ended December 31, 2015, corporate and other revenue also included a $6.7 million adjustment to the contingent consideration related to the Galvan acquisition. Selected financial information by segment is presented in the following tables (amounts in thousands):
Reconciliation of operating segment profit / (loss) to Income before income tax (benefit) / expense
Net revenue (loss) by geographic area for the years ended December 31, 2015, 2014 and 2013 is as follows ($ in thousands):
(1) - Net revenue is attributed to individual countries based on the jurisdiction of the formation of the reporting entity that records the transaction (2) - Includes U.S. net revenue of $107.5 million, $133.1 million, and $153.5 million for 2015, 2014, and 2013 respectively. (3) - Includes UK net revenue of $307.3 million and $237.7 million, and $33.3 million for 2015, 2014, and 2013 respectively. Long-lived assets by geographic area as of December 31, 2015, 2014 and 2013 are as follows (in thousands):
(1) - Long-lived assets are comprised of property, plant and equipment, net. They exclude goodwill, other intangible assets and other assets, which are not attributable to any one geographic location. (2) - Includes U.S. long-lived assets of $6.4 million, $16.7 million for 2015 and 2014, respectively. (3) - Includes UK long-lived assets of $23.1 million, $1.7 million for 2015 and 2014, respectively. |
Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following table sets forth selected quarterly financial data for 2015 and 2014 (in thousands, except per share data):
As discussed in Note 2 to our audited consolidated financial statements under the heading "Restatement," the Company has restated its consolidated financial statements as of December 31, 2014, and for the years ending December 31, 2014 and 2013. The following table sets forth the impact of the restatement on the quarterly financial data for the interim periods in 2015 and 2014:
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Subsequent Events |
12 Months Ended |
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Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In March 2016, the Company announced the payment of a $0.05 dividend per share of Common Stock payable on March 29, 2016 to stockholders of record on March 25, 2016. |
Schedule I - Consolidated Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) | GAIN CAPITAL HOLDINGS, INC. (Parent Company Only) Condensed Balance Sheets (in thousands, except share data)
GAIN CAPITAL HOLDINGS, INC. (Parent Company Only) Condensed Statements of Income and Comprehensive Income (in thousands)
GAIN CAPITAL HOLDINGS, INC. (Parent Company Only) Condensed Statements of Cash Flows (in thousands)
1. Basis of Presentation Basis of Financial Information — The accompanying condensed financial statements of GAIN Capital Holdings, Inc. (“Parent Company”), including the notes thereto, should be read in conjunction with the consolidated financial statements of GAIN Capital Holdings, Inc. and Subsidiaries (the “Company”) and the related notes. The condensed financial statements are prepared in accordance with accounting principles generally accepted in the U.S. which require the Company or Parent Company to make estimates and assumptions regarding valuations of certain financial instruments and other matters that affect the Parent Company Financial Statements and related disclosures. Actual results could differ from these estimates. The Parent Company on a stand-alone basis, has accounted for majority-owned subsidiaries using the equity method of accounting. Restatement The Company has determined that there were errors in the Company's accounting for income taxes as of December 31, 2014 and for the years ended December 31, 2014 and 2013 and for certain quarters of 2015 under ASC 740 (ASC 740), Income Taxes. These errors relate primarily to the manner in which certain intercompany payables and receivables among domestic and overseas subsidiaries of the Company were treated for accounting and tax purposes during the impacted periods. The condensed financial statements of the Parent Company as of December 31, 2014 and for the years ended December 31, 2014 and 2013 included in this report have been restated to reflect the correction of these errors. In addition, certain other adjustments, previously determined to be immaterial individually and in the aggregate, have also been corrected in the restated condensed financial statements. The following tables reflect the condensed financial statement line items impacted by the restatement. The column headed "Tax Adjustments" reflects the impact of the tax matters discussed above, while the "Other Adjustments" column reflects the impact of the other previously identified immaterial adjustments in the Condensed Balance Sheet and Condensed Statements of Income and Comprehensive Income. The column headed "Adjustments" reflects the impact of the tax matters discussed above as well as the impact of the other previously identified immaterial adjustments in the Condensed Statement of Cash Flows. For the avoidance of doubt, the following tables include only those line items impacted by the restatement. Condensed Balance Sheet
Condensed Statements of Income and Comprehensive Income
Condensed Statement of Cash Flows
Transactions with Subsidiaries The Parent Company has transactions with its subsidiaries determined on an agreed upon basis. Cash dividends from subsidiaries were $38.6 million, $0.0 million, and $37.1 million for the years ended December 31, 2015, 2014, and 2013, respectively. Commitments and Contingencies For a discussion of commitments and contingencies, see Note 18 to the Company’s consolidated financial statements. |
Description of Business and Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation and Principles of Consolidation The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and have been prepared in accordance with the regulations of the Securities and Exchange Commission ("SEC"). |
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Consolidation | Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and other subsidiaries in which the Company holds a controlling financial interest. All intercompany transactions and balances are eliminated in consolidation. The Company applies relevant accounting standards governing consolidation in determining its principles of consolidation. The Company's consolidated financial statements include non-controlling interests related to certain less than wholly owned subsidiaries. See Note 12 for details regarding non-controlling interests related to certain less than wholly owned subsidiaries. |
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. In presenting the consolidated financial statements, management makes estimates regarding:
Estimates, by their nature, are based on judgment and available information. Therefore, actual results could differ from those estimates and could have a material impact on the consolidated financial statements, and it is possible that such changes could occur in the near term. |
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Revenue Recognition | Revenue Recognition Revenue is recognized in accordance with revenue recognition guidance. The Company primarily generates revenue through market making and by providing trading execution services for its clients. The Company categorizes revenue as Retail revenue, Institutional revenue, Futures revenue, Other revenue and Net interest revenue. Retail revenue is the Company's largest source of revenue. Retail revenue comprises trading revenue from the retail OTC business, sales trader, and advisory businesses. OTC trading includes forex trading ("forex"), metals trading, contracts-for-difference (“CFDs”) and spread-betting (in markets which do not prohibit such transactions), as well as other financial products. Gains or losses are realized when customer transactions are liquidated. Unrealized gains or losses on trading positions are revalued at prevailing foreign currency exchange rates (the difference between contract price and market price) at the date of the balance sheet and are included in Receivables from brokers as well as Payables to customers on the Consolidated Balance Sheets. Changes in net unrealized gains or losses are recorded in Retail revenue on the Consolidated Statements of Income and Comprehensive Income. Retail revenue is recorded on a trade date basis. Institutional revenue consists of revenue from the Company's GTX business, which provides a proprietary trading platform and sales and trading services to institutions. Revenue for the GTX business is generated primarily through commissions or spreads on trades executed on the GTX platform or by voice-brokers. The Company acts as an agent for the trades executed on the GTX platform. The Company, therefore, does not assume any market or credit risk in connection with those transactions. Revenues are booked on a trade date basis. Futures revenue consists of revenue from the Company's futures business, which offers exchange-based trading execution services, focusing on the indices, agricultural hedging, and commodities sectors. Revenues in this business are generated through commissions, which are earned for executing the Company's customers' trades. These revenues are booked on a trade date basis. The Company acts in an agency capacity with respect to the clearing of trades, but is a principal with respect to fees paid to introducing brokers in its futures business. The Company does not assume any market risk with respect to customer trades in this business. Other revenue primarily comprises account management and transaction fees, inactivity, training fees charged to customer accounts, and adjustments to contingent consideration, as well as foreign currency transaction gains and losses. Net interest revenue consists primarily of the revenue generated by our cash and customer cash held by us at banks, as well as funds on deposit as collateral with our liquidity providers, less interest paid to our customers. Interest revenue and interest expense are recorded when earned and incurred, respectively. |
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Selling and Marketing | Selling and marketing Selling and marketing costs are relate to producing and communicating advertising, as well as other marketing activities, and are expensed as incurred |
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Restructuring | Restructuring expenses In 2015, 2014 and 2013, the Company incurred restructuring expenses, which reflected costs arising from headcount reductions and other exit costs, measured and disclosed in accordance with relevant accounting guidance. |
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Acquisition | Acquisition expenses In 2015, 2014 and 2013, the Company incurred acquisition related expenses, which included costs such as legal, accounting, valuation and other costs specified in accounting guidance. These costs are expensed as incurred. Integration expenses In 2015, 2014 and 2013, the Company incurred integration expenses, which are acquisition related costs that are subsequently incurred while integrating the acquired company into the consolidated group. |
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Investments | Investments For equity investments in which the Company exerts significant influence over operating and financial policies but does not have a controlling financial interest, the equity method of accounting is used. |
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Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of acquisition to be cash equivalents. At December 31, 2015 and 2014, the Company’s cash equivalents consisted of money market accounts with an initial maturity of 90 days or less. Cash equivalents are recorded at fair value. |
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Cash and Cash Securities Held for Customers | Cash and securities held for customers Cash and securities held for customers represents cash and other highly liquid assets held to fund customer liabilities in connection with trading positions. Included in this balance are funds deposited by customers and funds accruing to customers as a result of trades or contracts. The Company records a corresponding liability in connection with this amount in Payables to customers. In addition, the Company holds certain customer funds in segregated or secured broker accounts. Legally segregated balances are not available for general use, in accordance with certain jurisdictional regulatory requirements. |
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Fair Value | Fair Value Certain financial assets and liabilities are recorded at fair value in accordance with applicable accounting guidance, as discussed in Note 4 Fair Value Information. Other financial assets and liabilities are not measured at fair value on a recurring basis but nevertheless approximate fair value due to their short term maturities. Such financial assets and liabilities include: Receivables from brokers; certain other assets; Payables to customers; and Accrued expenses and other liabilities. The above referenced receivables and payables include open trading positions which are held at fair value, hedging and customer positions, both of which change in value as the price of the underlying product changes. The prices approximate the amounts at which the Company can settle the positions at the balance sheet date. |
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Concentrations of Credit Risk | Risk Management The Company offers its customers access to a diverse range of over 12,500 financial products, including spot foreign exchange, or forex, and precious metals trading, as well as “contracts for difference”, or CFDs, which are investment products with returns linked to the performance of underlying asset. We offer CFDs on currencies, commodities, indices, individual equities, bonds and interest rate products. We also support trading of exchange-traded futures and options on futures on more than 30 global exchanges. In the United Kingdom, we offer spread bets, which are investment products similar to CFDs, but that offer more favorable tax treatment for residents of that country. The Company actively trades currencies in the spot market, earning a dealer spread. The Company seeks to manage its market risk by generally entering into offsetting contracts in the interbank market, also on a margin basis. The Company deposits margin collateral with large money center banks and other major financial institutions. The Company is subject to credit risk or loss from counterparty nonperformance. The Company seeks to control the risks associated with its customers’ activities by requiring its customers to maintain margin collateral. The Company's trading platforms do not allow customers to enter into trades if sufficient margin collateral is not on deposit with the Company. The Company developed risk-management systems and procedures that allow it to manage the market and credit risk associated with managed flow activities in real-time. The Company does not actively initiate directional market positions in anticipation of future movements in the relative prices of currencies and evaluates market risk exposure on a continuous basis. As a result of the Company’s hedging activities, the Company is likely to have open positions in various currencies at any given time. An additional component of the risk-management approach is that levels of capital are maintained in excess of those required under applicable regulations. The Company also maintains liquidity relationships with three established, global prime brokers and at least six other liquidity providers, providing the Company with access to a liquidity pool. Concentrations of Credit Risk The Company owns financial instruments that subject the Company to credit risk. These financial instruments are held primarily in Cash and cash equivalents as well as Cash and securities held for customers. The Company’s credit risk is managed by investing cash and cash equivalents primarily in high-quality money market and from time to time U.S. and Canadian Government instruments. The majority of the Company’s cash and cash equivalents are held at ten financial institutions. The Company also has credit risk related to receivables from brokers included in Receivables from brokers. |
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Receivables from Brokers | Receivables from Brokers Receivables from brokers include funds that the Company has posted with brokers as collateral required by agreements for holding hedging positions. Also, Receivables from brokers contains funds required to collateralize customer futures trading, as well as the related excess and the Company's own collateral. These amounts are reflected as Receivables from brokers on the Consolidated Balance Sheets and include gains or losses realized on settled contracts, as well as unrealized gains or losses on open positions. |
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Property and Equipment | Property and Equipment and Other Long-Lived Assets Property and equipment are recorded at cost, net of accumulated depreciation. Identifiable significant improvements are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Property and equipment are depreciated on a straight-line basis over a three year useful life, except for leasehold improvements, which are depreciated on a straight-line basis over the shorter of the lease term or estimated useful life. The Company accounts for costs incurred to develop its trading platforms and related software in accordance with Accounting Standards Codification ("ASC") 350-40, Internal-Use Software. ASC 350-40 requires that such technology be capitalized in the application and infrastructure development stages. Costs related to training, administration and non-value-added maintenance are charged to expense as incurred. Capitalized software development costs are being amortized over the useful life of the software, which the Company has estimated at three years. |
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Long Lived Assets | In accordance with ASC 360-10, Property, Plant and Equipment, the Company periodically evaluates the carrying value of long-lived assets when events and circumstances warrant such review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from such an asset are separately identifiable and are less than the carrying value. In that event, a loss is recognized in the amount by which the carrying value exceeds the fair market value of the long-lived asset. This guidance applies to assets held for use and not to assets held for sale. The Company has no assets held for sale. The Company has identified no such impairment indicators as of December 31, 2015 or December 31, 2014. |
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Foreign Currencies | Foreign Currencies Items included in the financial statements of each of the Company's subsidiaries are measured using the currency of the primary environment in which the subsidiaries operate ("the functional currency"). The Company has determined that its functional currency is U.S. dollars (“USD”). The Company’s Accumulated other comprehensive income/(loss), consists of foreign currency translation adjustments from subsidiaries not using the USD as their functional currency. Foreign currency transactions are remeasured into functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in Other revenue on the Consolidated Statements of Income and Comprehensive Income. |
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Intangible Assets | Intangible Assets Accounting guidance addressing intangible assets requires purchased intangible assets other than goodwill to be amortized over their estimated useful lives unless their lives are determined to be indefinite. If indefinite-lived assets are determined to have a finite life in the future, the Company will amortize the carrying value over the remaining estimated useful life at that time. The Company analyzes its business, legal, and regulatory environment at least annually and on an interim basis when conditions indicate impairment may have occurred to determine whether its indefinite-lived intangible assets are likely to be impaired. This qualitative assessment indicated that it is more likely than not that the Company's indefinite lived intangible assets are not impaired. See Note 8 for additional information. |
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Goodwill | Goodwill In accordance with relevant accounting guidance, the Company tests goodwill for impairment on an annual basis during the fourth quarter and on an interim basis when conditions indicate impairment may have occurred (see Note 8). In performing these assessments, management relies on and considers a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, comparable market transactions (to the extent available), other market data and the Company's overall market capitalization. There are inherent uncertainties related to these factors which require judgment in applying them to the analysis of goodwill and indefinite-lived intangible assets for impairment. Goodwill impairment is determined by comparing the estimated fair value of the reporting units with their respective carrying value. At the date of the latest test as of December 31, 2015, using both the income approach and market approach, the fair value of each of the Company's reporting units was significantly in excess of its book value, as such no impairment was identified. |
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Other Assets | Other Assets The Company records short term investments, receivables from vendors, security deposits, current and deferred tax assets, an indemnification asset, customer debit positions, net of related allowance, and miscellaneous receivables in Other assets on the Consolidated Balance Sheets. The Company considers all investments with an original maturity of greater than 90 days, but less than one year to be short term investments. Short term investments consist of short-term certificates of deposit. All income from the certificates of deposit is recorded as interest income when earned. See Note 9 for additional information. |
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Derivatives | Derivatives Forex, metals, and CFDs allow for exchanging the difference in value of a particular asset such as stock index, energy product, or gold contracts, between the time at which a contract is opened and the time at which it is closed. The Company's retail customer open positions and positions with liquidity providers are considered derivatives under derivatives accounting guidance. Therefore, they are accounted for at fair value, and included in Receivables from brokers and Payables to customers in the Consolidated Balance Sheets. |
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Allowance For Doubtful Accounts | Allowance for Doubtful Accounts The Company records an increase in the allowance for doubtful accounts when the prospect of collecting a specific customer account balance becomes doubtful. Management specifically analyzes accounts receivable and historical bad debt experience when evaluating the adequacy of the allowance for doubtful accounts. Should any of these factors change, the estimates made by management will also change, which could affect the level of the Company’s future provision for doubtful accounts. The customer receivables, net of allowance for doubtful accounts, is included in Other assets on the Consolidated Balance Sheets. Receivables from customers are reserved for and the related reserves are recorded in Bad debt provision on the Consolidated Statements of Income and Comprehensive Income. |
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Payables to Customers | Payables to Customers Payables to customers, included on the Consolidated Balance Sheets, include amounts due on cash and margin transactions. These transactions include deposits, commissions and gains or losses arising from settled trades. The payables balance also reflects unrealized gains or losses arising from open positions in customer accounts. The Company engages in white label, or omnibus relationships, with other regulated financial institutions. The payables balance includes amounts deposited by these financial institutions in order for the Company to act as clearing broker. |
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Referral Fees | Referral fees Introducing brokers direct customers to the Company in return for a commission on each referred customer’s trading volume or a share of net revenue generated by each referred customer’s trading activity. Such fees are referred to as introducing broker fees and are recorded on a trade date basis, in Referral Fees, in the Consolidated Statements of Income and Comprehensive Income. |
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Trading Expenses | Trading Expenses Trading expenses consist of exchange fees paid to stock exchanges and other third-parties for exchange market data that the Company provides to its customers or uses to create its own derived data products, as well as fees for news services and fees paid to prime brokers in connection with its institutional GTX business and futures business. |
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Income Taxes | Income Taxes Income tax expense is provided for using the asset and liability method, under which deferred tax assets and liabilities are determined based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using currently enacted tax rates. The Company operates under a permanent reinvestment strategy, under which earnings derived from foreign businesses remain invested in the Company’s foreign subsidiaries. In accordance with accounting guidance, the Company does not recognize domestic tax expense related to the permanently reinvested earnings. The Company has no plans to repatriate accumulated unremitted earnings as of December 31, 2015. |
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Employee Compensation and Benefits | Employee compensation and benefits In accordance with stock compensation guidance, the Company recognizes expense for all share-based payments to employees, including grants of employee stock options as well as restricted stock units on the basis of grant date fair values. The Company estimates fair value using the Black Scholes model for stock options and fair value on grant date for restricted stock units. Shares typically vest incrementally and equally on an annual basis over a four year period, without performance triggers or other requirements beyond continued service. For each type of award, the Company reduces expense by an estimated forfeiture rate. See Note 15 for additional share based payment disclosure. The Company make estimates in determining its quarterly and annual accrued non-share-based compensation. A significant portion of the Company's employee incentive compensation programs is discretionary. Each quarter and year-end the Company determines the amount of its expected discretionary cash bonus pools. |
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Treasury Shares | Treasury Shares In accordance with ASC 505-30, Equity - Treasury Stock, the Company treats the cost of acquired shares purchased as a deduction from shareholders’ equity and as a reduction of the total shares outstanding when calculating earnings per share. |
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Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is calculated using the weighted average common shares outstanding during the year. Common equivalent shares from stock options and restricted stock awards, using the treasury stock method, are also included in the diluted per share calculations unless their effect of inclusion would be anti-dilutive. See Note 16 for discussion of the impact of the Company's convertible note and non-controlling interests on EPS. |
Description of Business and Basis of Presentation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Allowance For Doubtful Accounts | The allowance for doubtful accounts consisted of the following (amounts in thousands):
|
Restatement (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prior Period Adjustments | Consolidated Balance Sheet
(1) The Company previously reported $174,000 as Short term investments, at fair value; this amount has been reclassified to Other assets, net of allowance for doubtful accounts to conform to current year presentation Consolidated Statements of Income and Comprehensive Income
(1) - The Company has changed its revenue presentation, see Note 1 for detail
(1) - The Company has changed its revenue presentation, see Note 1 for detail Consolidated Statement of Changes in Shareholders' Equity
Consolidated Statement of Cash Flows
The following table sets forth the impact of the restatement on the quarterly financial data for the interim periods in 2015 and 2014:
|
Fair Value Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis during the reporting period and the related hierarchy levels (amounts in thousands):
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Rollforward of Level 3 Liabilities | The following is a rollforward of the Level 3 liabilities from January 1, 2014 to December 31, 2015 (amounts in thousands):
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Carrying Value and Fair Value and Fair Value Hierarchy Category of Financial Instruments Not Measured at Fair Value in Condensed Consolidated Statements of Financial Condition |
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Derivatives (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | The table below represents the fair values of the Company’s derivative instruments reported within Receivables from brokers and Payables to customers on the accompanying Consolidated Balance Sheet (amounts in thousands):
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Notional Values of Derivative Instruments | The table below presents the number of contracts reported within Receivables from brokers and Payables to customers on the consolidated balance sheets (amounts in thousands):
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Net Gains (Losses) With Respect to Derivative Instruments Which are Reflected in Trading Revenue | Net gains with respect to derivative instruments reflected in Retail Revenue in the accompanying Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2015 and 2014 were as follows (amounts in thousands):
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Receivables From Brokers (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivable from Brokers | Amounts receivable from brokers consisted of the following as of (amounts in thousands):
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Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment, including leasehold improvements and capitalized software development costs, consisted of the following as of (amounts in thousands):
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Intangible Assets and Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | The Company has the following identifiable intangible assets as of December 31, 2015:
(1) Trademarks with indefinite lives, as described above, comprise $0.4 million of the gross $8.7 million of trademarks. Future annual estimated amortization expense is as follows (amounts in thousands):
The Company's various finite-lived intangible assets consisted of the following as of (amounts in thousands):
(1) These indefinite-life trademarks relate to the Forex.com and foreignexchange.com domain names where management determined there was no legal, regulatory or technological limitation on their useful lives. These trademarks are also supported annually in the Company's impairment test for intangible assets. (2) The increase in total intangibles for the year ended December 31, 2015 was primarily due to the customer lists, technology and trademarks acquired as part of the City Index acquisition. See Note 11 for details of the intangibles acquired in the Company's City Index, GAA, Top Third and Galvan acquisitions. The technology acquired pursuant to the asset purchase agreements with Valaquenta Intellectual Property Limited ("Valaquenta") and Forexster Limited ("Forexster"), is described in further detail below. |
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Schedule of Goodwill | The following represents the carrying amount of goodwill by segment (amounts in thousands):
|
Other Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other assets consisted of the following as of (amounts in thousands):
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Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Costs |
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City Index | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Purchase Price | The purchase price was derived as follows (amounts in thousands):
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Preliminary Purchase Price Allocated to the Fair Value of Assets and Liabilities | The purchase price of City Index was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
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Galvan, GAA, and Top Third | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Pro Forma Income Statement Line Items | Unaudited pro forma income statement line items for the twelve months ended December 31, 2014 and December 31, 2013 were as follows (amounts in thousands):
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Galvan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Purchase Price | The purchase price was derived as follows (amounts in thousands):
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Preliminary Purchase Price Allocated to the Fair Value of Assets and Liabilities | The purchase price of Galvan was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
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GAA | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Purchase Price | The purchase price was derived as follows (amounts in thousands):
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Preliminary Purchase Price Allocated to the Fair Value of Assets and Liabilities | The purchase price of GAA was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
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Top Third | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preliminary Purchase Price Allocated to the Fair Value of Assets and Liabilities | The purchase price of Top Third was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
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Global Futures & Forex Ltd | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Purchase Price | The purchase price allocation was derived as follows (amounts in thousands):
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Preliminary Purchase Price Allocated to the Fair Value of Assets and Liabilities | The purchase price of GFT was allocated to the fair value of various assets and liabilities as follows (amounts in thousands):
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Unaudited Pro Forma Income Statement Line Items | Unaudited pro forma income statement line items for the twelve months ended December 31, 2013 and December 31, 2012, were as follows (amounts in thousands):
(1) Other expenses items for the year ended December 31, 2013, included a one-time, non-recurring expense of $5.1 million relating to a GFT accrual for certain liabilities to third parties. |
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City Index, GFT, GAA, Top Third, Galvan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Pro Forma Income Statement Line Items | Unaudited pro forma income statement line items for the twelve months ended December 31, 2015 and December 31, 2014 were as follows (amounts in thousands):
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Non-controlling Interests (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-controlling Interests | The table below reflects the non-controlling interests effects on the Company's financial statements:
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Convertible Senior Notes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability and Equity Components of Convertible Debt | The balances of the liability and equity components as of December 31, 2015 and 2014, were as follows, with amounts in thousands:
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Schedule of Interest Expense | Interest expense related to the Convertible Senior Notes, included in Interest expense on long-term borrowings in the Consolidated Statements of Income and Comprehensive Income, was as follows, with amounts in thousands:
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Share Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Compensation Cost | Total share-based compensation cost recognized during 2015, 2014 and 2013 consisted of the following ($ in thousands:)
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Summary of Stock Option Activity Under All plans | The following table summarizes the stock option activity under all plans from January 1, 2015 through December 31, 2015 (in thousands, except per share amounts):
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Summary of Outstanding and Exercisable Stock Options | The following table summarizes information concerning outstanding and exercisable stock options as of December 31, 2015:
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Assumptions For Stock Options Granted | The Compensation Committee approved stock option grants with a fair market value estimated under a Black-Scholes option pricing valuation model using the following assumptions:
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Summary of Nonvested Shares of Restricted Stock Units and Restricted Stock Awards | A summary of the status of the Company’s nonvested shares of RSUs and RSAs as of December 31, 2015 and changes during the year ended December 31, 2015, is presented below (in thousands, except per share amounts):
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Earnings Per Common Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings Per Share | The following table sets forth the computation of earnings per share (amounts in thousands except share and per share data):
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Future Annual Minimum Lease Payments | Future annual minimum lease payments for the Company's non-cancellable operating leases and purchase obligations are as follows (amounts in thousands):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income from Continuing Operations Before Income Tax Expense | The following table presents the U.S. and non-U.S. components of income before income tax (benefit) / expense for the years ended December 31, 2015, 2014, and 2013 (amounts in thousands):
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Income Tax Expense (Benefit) | ncome tax (benefit) / expense consisted of (amounts in thousands):
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Components of Company Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows (amounts in thousands):
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Reconciles Provision to United States Federal Statutory Income Tax Rate | The following table reconciles the effective tax rate to the U.S. federal statutory income tax rate:
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Gross Unrecognized Tax Benefits from Uncertain Tax Positions | The following table summarizes the activity to the gross unrecognized tax benefits from uncertain tax positions (amounts in thousands):
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Regulatory Requirements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Regulatory Capital Subsidiaries Required to Maintain | The following table illustrates the minimum regulatory capital our subsidiaries were required to maintain as of December 31, 2015 and the actual amounts of capital that were maintained (amounts in millions):
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Selected financial information by segment is presented in the following tables (amounts in thousands):
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Reconciliation of Operating Segment Profit (Loss) to Total Profit (Loss) | Reconciliation of operating segment profit / (loss) to Income before income tax (benefit) / expense
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Net Revenue by Geographic Area | Net revenue (loss) by geographic area for the years ended December 31, 2015, 2014 and 2013 is as follows ($ in thousands):
(1) - Net revenue is attributed to individual countries based on the jurisdiction of the formation of the reporting entity that records the transaction (2) - Includes U.S. net revenue of $107.5 million, $133.1 million, and $153.5 million for 2015, 2014, and 2013 respectively. (3) - Includes UK net revenue of $307.3 million and $237.7 million, and $33.3 million for 2015, 2014, and 2013 respectively. |
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Long-lived Assets by Geographic Area | Long-lived assets by geographic area as of December 31, 2015, 2014 and 2013 are as follows (in thousands):
(1) - Long-lived assets are comprised of property, plant and equipment, net. They exclude goodwill, other intangible assets and other assets, which are not attributable to any one geographic location. (2) - Includes U.S. long-lived assets of $6.4 million, $16.7 million for 2015 and 2014, respectively. (3) - Includes UK long-lived assets of $23.1 million, $1.7 million for 2015 and 2014, respectively. |
Quarterly Financial Data (Unaudited) (Tables) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data | The following table sets forth selected quarterly financial data for 2015 and 2014 (in thousands, except per share data):
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Schedule of Prior Period Adjustments | Consolidated Balance Sheet
(1) The Company previously reported $174,000 as Short term investments, at fair value; this amount has been reclassified to Other assets, net of allowance for doubtful accounts to conform to current year presentation Consolidated Statements of Income and Comprehensive Income
(1) - The Company has changed its revenue presentation, see Note 1 for detail
(1) - The Company has changed its revenue presentation, see Note 1 for detail Consolidated Statement of Changes in Shareholders' Equity
Consolidated Statement of Cash Flows
The following table sets forth the impact of the restatement on the quarterly financial data for the interim periods in 2015 and 2014:
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Description of Business and Basis of Presentation - Additional Information (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
Segment
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Sep. 30, 2015
Segment
|
Dec. 31, 2015
USD ($)
Segment
|
Dec. 31, 2014
USD ($)
Segment
|
Dec. 31, 2013
USD ($)
|
|||||
Basis of Presentation [Line Items] | |||||||||
Number of operating segments | Segment | 3 | 1 | 3 | 1 | |||||
Distributed earnings of equity method investees | $ 0 | $ 0 | $ 0 | ||||||
Undistributed earnings of equity method investees | 0 | 0 | 0 | ||||||
Foreign currency gain (loss) | $ (2,432,000) | $ 1,618,000 | [1] | $ (3,641,000) | [1] | ||||
Award vesting period | 4 years | ||||||||
Tranche 1 | |||||||||
Basis of Presentation [Line Items] | |||||||||
Award vesting percentage | 25.00% | ||||||||
Tranche 2 | |||||||||
Basis of Presentation [Line Items] | |||||||||
Award vesting percentage | 25.00% | ||||||||
Tranche 3 | |||||||||
Basis of Presentation [Line Items] | |||||||||
Award vesting percentage | 25.00% | ||||||||
Tranche 4 | |||||||||
Basis of Presentation [Line Items] | |||||||||
Award vesting percentage | 25.00% | ||||||||
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Description of Business and Basis of Presentation - Concentration Risk (Details) - Credit Concentration Risk - financial_institution |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Cash and Cash Equivalents | ||
Concentration Risk [Line Items] | ||
Number of financial institutions | 10 | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 28.00% | 29.00% |
Number of financial institutions | 1 | 1 |
Description of Business and Basis of Presentation - Estimated Useful Lives (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Property and equipment excluding leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Software development | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Description of Business and Basis of Presentation - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Beginning balance | $ (4,555) | [1] | $ (1,158) | $ (148) | ||||
Addition to provision | (7,462) | (3,699) | [1] | (1,501) | [1] | |||
Amounts written off | 5,185 | 302 | 491 | |||||
Ending balance | $ (6,832) | $ (4,555) | [1] | $ (1,158) | ||||
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Description of Business and Basis of Presentation - Risk Management (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015
product
exchange
counterparty
| |
Derivative [Line Items] | |
Number of financial products offered | product | 12,500 |
Number of global exchanges, more than 30 | exchange | 30 |
Global Prime Brokers | |
Derivative [Line Items] | |
Liquidity relationships, number of counterparties | 3 |
Forex Trading Partners | |
Derivative [Line Items] | |
Liquidity relationships, number of counterparties | 6 |
Restatement - Additional Information (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|---|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Retained earnings | $ 120,776 | $ 119,775 | [1] | |||
Other assets | $ 47,422 | 33,765 | [1] | |||
Scenario, Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Retained earnings | 130,984 | |||||
Other assets | 35,311 | |||||
Out of Period Adjustment | Scenario, Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Retained earnings | $ 1,300 | |||||
Out of Period Adjustment | Restatement Adjustments | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Adjustment to the redemption value of noncontrolling interests | $ 1,300 | |||||
Short-term Investments | Scenario, Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Other assets | 174,000 | |||||
Other assets, net of allowance for doubtful accounts | Restatement Adjustments | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Other assets | $ 174,000 | |||||
|
Restatement - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
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---|---|---|---|---|---|---|---|---|---|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | $ 171,888 | $ 139,351 | [1] | $ 39,871 | [1] | $ 36,820 | [1] | ||
Goodwill | 34,017 | 33,579 | [1] | ||||||
Other assets | 47,422 | 33,765 | [1] | ||||||
Total assets | 1,424,815 | 1,183,301 | [1] | ||||||
Accrued expenses and other liabilities | 51,638 | 76,195 | [1] | ||||||
Income tax payable | 1,068 | 1,010 | [1] | ||||||
Total liabilities | 1,107,685 | 922,043 | [1] | ||||||
Redeemable non-controlling interests | 11,046 | 11,338 | [1] | 0 | |||||
Accumulated other comprehensive loss | (5,865) | (1,513) | [1] | ||||||
Additional paid-in capital | 212,981 | 148,378 | [1] | ||||||
Retained earnings | 120,776 | 119,775 | [1] | ||||||
Total shareholders’ equity | 306,084 | 249,920 | [1] | 226,723 | [1] | 162,568 | [1] | ||
Total liabilities and shareholders’ equity | $ 1,424,815 | 1,183,301 | [1] | ||||||
Scenario, Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | 139,403 | ||||||||
Goodwill | 34,567 | ||||||||
Other assets | 35,311 | ||||||||
Total assets | 1,185,887 | ||||||||
Accrued expenses and other liabilities | 64,476 | ||||||||
Income tax payable | 1,470 | ||||||||
Total liabilities | 910,784 | ||||||||
Redeemable non-controlling interests | 10,209 | ||||||||
Accumulated other comprehensive loss | (2,054) | ||||||||
Additional paid-in capital | 152,684 | ||||||||
Retained earnings | 130,984 | ||||||||
Total shareholders’ equity | 264,894 | $ 234,401 | $ 162,830 | ||||||
Total liabilities and shareholders’ equity | 1,185,887 | ||||||||
Restatement Adjustments | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | (52) | ||||||||
Tax Adjustment | Restatement Adjustments | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | 0 | ||||||||
Goodwill | (988) | ||||||||
Other assets | 917 | ||||||||
Total assets | (71) | ||||||||
Accrued expenses and other liabilities | 12,170 | ||||||||
Income tax payable | 1,603 | ||||||||
Total liabilities | 13,773 | ||||||||
Redeemable non-controlling interests | 0 | ||||||||
Accumulated other comprehensive loss | 541 | ||||||||
Additional paid-in capital | (4,306) | ||||||||
Retained earnings | (10,079) | ||||||||
Total shareholders’ equity | (13,844) | ||||||||
Total liabilities and shareholders’ equity | (71) | ||||||||
Other Adjustments | Restatement Adjustments | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | (52) | ||||||||
Goodwill | 0 | ||||||||
Other assets | (2,463) | ||||||||
Total assets | (2,515) | ||||||||
Accrued expenses and other liabilities | (451) | ||||||||
Income tax payable | (2,063) | ||||||||
Total liabilities | (2,514) | ||||||||
Redeemable non-controlling interests | 1,129 | ||||||||
Accumulated other comprehensive loss | 0 | ||||||||
Additional paid-in capital | 0 | ||||||||
Retained earnings | (1,130) | ||||||||
Total shareholders’ equity | (1,130) | ||||||||
Total liabilities and shareholders’ equity | $ (2,515) | ||||||||
|
Restatement - Consolidated Statements of Income and Comprehensive Income (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Retail revenue | $ 347,489 | $ 292,778 | [1] | $ 215,734 | [1] | ||||||||||
Institutional revenue | 33,773 | 34,518 | [1] | 28,005 | [1] | ||||||||||
Futures revenue | 45,427 | 36,160 | [1] | 22,188 | [1] | ||||||||||
Total non-interest revenue | $ 102,712 | $ 128,045 | $ 111,452 | $ 92,967 | $ 115,157 | $ 102,786 | $ 70,005 | $ 80,412 | 435,176 | 368,360 | [1] | 267,026 | [1] | ||
Net revenue | 102,793 | 128,111 | 111,457 | 92,986 | 115,275 | 102,956 | 70,264 | 80,722 | 435,347 | 369,189 | [1] | 267,691 | [1] | ||
Employee compensation and benefits | 106,581 | 99,233 | [1] | 74,607 | [1] | ||||||||||
Referral fees | 103,523 | 90,972 | [1] | 52,623 | [1] | ||||||||||
Trading expenses | 31,914 | 26,168 | [1] | 18,164 | [1] | ||||||||||
General and administrative | 55,067 | 38,651 | [1] | 26,558 | [1] | ||||||||||
Depreciation and amortization | 11,111 | 6,610 | [1] | 8,283 | [1] | ||||||||||
Restructuring expenses | 3,482 | 2,334 | [1] | 450 | [1] | ||||||||||
Total operating expense | 417,698 | 317,592 | [1] | 222,968 | [1] | ||||||||||
OPERATING PROFIT | 17,649 | 51,597 | [1] | 44,723 | [1] | ||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 196 | 9,418 | (12,741) | 11,554 | 27,149 | 20,888 | (6,421) | 3,835 | 8,427 | 45,450 | [1] | 45,490 | [1] | ||
Income tax (benefit)/expense | (3,512) | 19,140 | [1] | 17,383 | [1] | ||||||||||
Net income | 15,827 | 2,784 | (12,481) | 5,809 | 22,966 | 10,348 | (7,583) | 577 | 11,939 | 26,310 | [1] | 28,107 | [1] | ||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 15,510 | $ 2,201 | $ (12,897) | $ 5,465 | $ 22,520 | $ 9,563 | $ (7,747) | $ 539 | 10,279 | 24,877 | [1] | 28,107 | [1] | ||
Foreign currency translation adjustment | (4,352) | (4,089) | [1] | 1,327 | [1] | ||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 5,927 | $ 20,788 | [1] | $ 29,434 | [1] | ||||||||||
Basic (usd per share) | $ 0.32 | $ 0.07 | $ (0.28) | $ 0.11 | $ 0.54 | $ 0.19 | $ (0.20) | $ 0.01 | $ 0.22 | $ 0.56 | [1] | $ 0.76 | [1] | ||
Diluted (usd per share) | $ 0.32 | $ 0.07 | $ (0.28) | $ 0.11 | $ 0.51 | $ 0.18 | $ (0.20) | $ 0.01 | $ 0.22 | $ 0.53 | [1] | $ 0.71 | [1] | ||
Scenario, Previously Reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Retail revenue | $ 293,122 | $ 215,667 | |||||||||||||
Institutional revenue | 34,518 | 28,005 | |||||||||||||
Futures revenue | 36,160 | 22,188 | |||||||||||||
Total non-interest revenue | $ 127,865 | $ 111,559 | $ 92,933 | $ 114,725 | $ 103,388 | $ 69,504 | $ 81,087 | 368,704 | 266,959 | ||||||
Net revenue | 127,931 | 111,564 | 92,952 | 114,751 | 103,650 | 69,763 | 81,397 | 369,533 | 267,624 | ||||||
Employee compensation and benefits | 99,485 | 74,185 | |||||||||||||
Referral fees | 91,092 | 52,503 | |||||||||||||
Trading expenses | 26,285 | ||||||||||||||
General and administrative | 38,509 | 26,813 | |||||||||||||
Depreciation and amortization | 7,125 | 7,768 | |||||||||||||
Restructuring expenses | 1,214 | 1,570 | |||||||||||||
Total operating expense | 317,334 | 223,286 | |||||||||||||
OPERATING PROFIT | 52,199 | 44,338 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 9,215 | (12,538) | 11,498 | 26,456 | 21,470 | (7,013) | 5,140 | 46,052 | 45,105 | ||||||
Income tax (benefit)/expense | 12,993 | 13,794 | |||||||||||||
Net income | 8,887 | (8,414) | 8,680 | 18,058 | 16,130 | (4,992) | 3,863 | 33,059 | 31,311 | ||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 8,304 | $ (8,830) | $ 8,336 | $ 17,612 | $ 15,345 | $ (5,156) | $ 3,826 | 31,626 | 31,311 | ||||||
Foreign currency translation adjustment | (4,630) | ||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 26,996 | $ 32,638 | |||||||||||||
Basic (usd per share) | $ 0.20 | $ (0.23) | $ 0.19 | $ 0.44 | $ 0.35 | $ (0.13) | $ 0.10 | $ 0.76 | $ 0.85 | ||||||
Diluted (usd per share) | $ 0.20 | $ (0.23) | $ 0.18 | $ 0.42 | $ 0.33 | $ (0.13) | $ 0.09 | $ 0.71 | $ 0.79 | ||||||
Restatement Adjustments | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Net income | $ (6,749) | $ (3,204) | |||||||||||||
Tax Adjustment | Restatement Adjustments | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Retail revenue | 0 | 0 | |||||||||||||
Institutional revenue | 0 | 0 | |||||||||||||
Futures revenue | 0 | 0 | |||||||||||||
Total non-interest revenue | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | ||||||
Net revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Employee compensation and benefits | 0 | 0 | |||||||||||||
Referral fees | 0 | 0 | |||||||||||||
Trading expenses | 0 | ||||||||||||||
General and administrative | 0 | 0 | |||||||||||||
Depreciation and amortization | 0 | 0 | |||||||||||||
Restructuring expenses | 0 | 0 | |||||||||||||
Total operating expense | 0 | 0 | |||||||||||||
OPERATING PROFIT | 0 | 0 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Income tax (benefit)/expense | 6,200 | 3,589 | |||||||||||||
Net income | (6,306) | (3,864) | (2,927) | 4,162 | (5,199) | (3,183) | (1,980) | (6,200) | (3,589) | ||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | (6,306) | (3,864) | (2,927) | 4,162 | (5,199) | (3,183) | $ (1,980) | (6,200) | (3,589) | ||||||
Foreign currency translation adjustment | 541 | ||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ (5,659) | $ (3,589) | |||||||||||||
Basic (usd per share) | $ 0.00 | $ (0.16) | $ (0.10) | ||||||||||||
Diluted (usd per share) | $ (0.14) | $ (0.09) | |||||||||||||
Other Adjustments | Restatement Adjustments | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Retail revenue | $ (344) | $ 67 | |||||||||||||
Institutional revenue | 0 | 0 | |||||||||||||
Futures revenue | 0 | 0 | |||||||||||||
Total non-interest revenue | 180 | (107) | 34 | 432 | (602) | 501 | $ (675) | (344) | 67 | ||||||
Net revenue | 180 | (107) | 34 | 524 | (694) | 501 | (675) | (344) | 67 | ||||||
Employee compensation and benefits | (252) | 422 | |||||||||||||
Referral fees | (120) | 120 | |||||||||||||
Trading expenses | (117) | ||||||||||||||
General and administrative | 142 | (255) | |||||||||||||
Depreciation and amortization | (515) | 515 | |||||||||||||
Restructuring expenses | 1,120 | (1,120) | |||||||||||||
Total operating expense | 258 | (318) | |||||||||||||
OPERATING PROFIT | (602) | 385 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 203 | (203) | 56 | 693 | (582) | 592 | (1,305) | (602) | 385 | ||||||
Income tax (benefit)/expense | (53) | 0 | |||||||||||||
Net income | 203 | (203) | 56 | 746 | (583) | 592 | (1,305) | (549) | 385 | ||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 203 | $ (203) | $ 56 | $ 746 | $ (583) | $ 592 | $ (1,305) | $ (549) | 385 | ||||||
Foreign currency translation adjustment | |||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ (549) | $ 385 | |||||||||||||
Basic (usd per share) | $ (0.04) | $ 0.01 | |||||||||||||
Diluted (usd per share) | $ (0.04) | $ 0.01 | |||||||||||||
|
Restatement - Consolidated Statement of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||||
---|---|---|---|---|---|---|---|---|---|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | $ 306,084 | $ 249,920 | [1] | $ 226,723 | [1] | $ 162,568 | [1] | ||
Scenario, Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | 264,894 | 234,401 | 162,830 | ||||||
Additional Paid in Capital | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | 212,981 | 148,378 | [1] | 134,399 | [1] | 85,009 | [1] | ||
Additional Paid in Capital | Scenario, Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | 152,684 | 138,691 | 85,089 | ||||||
Retained Earnings | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | 120,776 | 119,775 | [1] | 105,217 | [1] | 84,590 | [1] | ||
Retained Earnings | Scenario, Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | 130,984 | 108,603 | 84,772 | ||||||
Accumulated Other Comprehensive Income/(Loss) | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | $ (5,865) | (1,513) | [1] | 2,576 | [1] | 1,249 | [1] | ||
Accumulated Other Comprehensive Income/(Loss) | Scenario, Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Shareholders' equity | $ (2,054) | $ 2,576 | $ 1,249 | ||||||
|
Restatement - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
[1] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||
Net income | $ 15,827 | $ 2,784 | $ (12,481) | $ 5,809 | $ 22,966 | $ 10,348 | $ (7,583) | $ 577 | $ 11,939 | $ 26,310 | [1] | $ 28,107 | [1] | |||||
Depreciation and amortization | 27,661 | 14,690 | [1] | 11,189 | [1] | |||||||||||||
Non-cash integration costs | 26,827 | 1,162 | [1] | 1,163 | [1] | |||||||||||||
Deferred tax (benefit)/expense | (12,355) | 5,108 | [1] | (5,431) | [1] | |||||||||||||
Stock compensation expense | 2,975 | |||||||||||||||||
Cash and securities held for customers | 101,325 | (9,260) | [1] | (74,769) | [1] | |||||||||||||
Receivables from brokers | 45,576 | 94,933 | [1] | (78,556) | [1] | |||||||||||||
Prepaid assets | (1,445) | 2,730 | [1] | 318 | [1] | |||||||||||||
Other assets | (6,229) | (8,495) | [1] | (1,075) | [1] | |||||||||||||
Payables to customers | (101,325) | 9,260 | [1] | 74,769 | [1] | |||||||||||||
Accrued compensation and benefits | (7,454) | 4,497 | [1] | 6,375 | [1] | |||||||||||||
Accrued expenses and other liabilities | (18,748) | (2,422) | [1] | 7,867 | [1] | |||||||||||||
Income tax payable | 611 | (9,812) | [1] | 4,414 | [1] | |||||||||||||
Cash provided by / (used for) operating activities | 77,213 | 136,788 | [1] | (18,887) | [1] | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,755) | 4,093 | [1] | (1,888) | [1] | |||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | 32,537 | 99,480 | [1] | 3,051 | [1] | |||||||||||||
Cash and cash equivalents | $ 171,888 | 139,351 | [1] | 171,888 | 139,351 | [1] | 39,871 | [1] | $ 36,820 | |||||||||
Adjustment to the redemption value of noncontrolling interests | 308 | (2,107) | [1] | 0 | [1] | |||||||||||||
Deferred taxes related to convertible senior notes | $ (3,840) | 0 | [1] | (4,308) | [1] | |||||||||||||
Scenario, Previously Reported | ||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||
Net income | $ 8,887 | $ (8,414) | $ 8,680 | 18,058 | $ 16,130 | $ (4,992) | $ 3,863 | 33,059 | 31,311 | |||||||||
Depreciation and amortization | 16,367 | 11,837 | ||||||||||||||||
Non-cash integration costs | 0 | 0 | ||||||||||||||||
Deferred tax (benefit)/expense | 2,536 | 39 | ||||||||||||||||
Stock compensation expense | 2,896 | |||||||||||||||||
Cash and securities held for customers | (9,679) | (74,608) | ||||||||||||||||
Receivables from brokers | 94,657 | (78,336) | ||||||||||||||||
Prepaid assets | 2,729 | 318 | ||||||||||||||||
Other assets | (11,536) | (383) | ||||||||||||||||
Payables to customers | 9,679 | 74,608 | ||||||||||||||||
Accrued compensation and benefits | 3,671 | 7,118 | ||||||||||||||||
Accrued expenses and other liabilities | (8,565) | 973 | ||||||||||||||||
Income tax payable | (2,832) | 2,131 | ||||||||||||||||
Cash provided by / (used for) operating activities | 138,173 | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,760 | (2,446) | ||||||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | 99,532 | |||||||||||||||||
Cash and cash equivalents | 139,403 | 139,403 | ||||||||||||||||
Adjustment to the redemption value of noncontrolling interests | (978) | |||||||||||||||||
Deferred taxes related to convertible senior notes | 0 | |||||||||||||||||
Restatement Adjustments | ||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||
Net income | (6,749) | (3,204) | ||||||||||||||||
Depreciation and amortization | (1,677) | (648) | ||||||||||||||||
Non-cash integration costs | 1,162 | 1,163 | ||||||||||||||||
Deferred tax (benefit)/expense | 2,572 | (5,470) | ||||||||||||||||
Stock compensation expense | 79 | |||||||||||||||||
Cash and securities held for customers | 419 | (161) | ||||||||||||||||
Receivables from brokers | 276 | (220) | ||||||||||||||||
Prepaid assets | 1 | 0 | ||||||||||||||||
Other assets | 3,041 | (692) | ||||||||||||||||
Payables to customers | (419) | 161 | ||||||||||||||||
Accrued compensation and benefits | 826 | (743) | ||||||||||||||||
Accrued expenses and other liabilities | 6,143 | 6,894 | ||||||||||||||||
Income tax payable | (6,980) | 2,283 | ||||||||||||||||
Cash provided by / (used for) operating activities | (1,385) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,333 | 558 | ||||||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (52) | |||||||||||||||||
Cash and cash equivalents | $ (52) | (52) | ||||||||||||||||
Adjustment to the redemption value of noncontrolling interests | $ (1,129) | |||||||||||||||||
Deferred taxes related to convertible senior notes | $ (4,308) | |||||||||||||||||
|
Fair Value Information - Additional Information (Detail) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
[1] | ||||
Business Acquisition [Line Items] | ||||||||
Settlement amount for contingent consideration | $ 13,893 | $ 0 | [1] | $ 2,419 | ||||
Galvan | ||||||||
Business Acquisition [Line Items] | ||||||||
Settlement amount for contingent consideration | $ 1,500 | |||||||
Global Futures & Forex Ltd | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration liability | $ 20,000 | |||||||
|
Fair Value Information - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets (liabilities) | $ 156,798 | $ 114,294 |
Customer derivative positions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 143,918 | 102,722 |
Broker derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 717 | |
Liabilities | (12,568) | |
Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 25,167 | 20,537 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 174 | 174 |
Investment in gold | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 107 | 118 |
Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | (9,974) | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets (liabilities) | 25,448 | 20,829 |
Level 1 | Customer derivative positions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 1 | Broker derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Liabilities | 0 | |
Level 1 | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 25,167 | 20,537 |
Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 174 | 174 |
Level 1 | Investment in gold | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 107 | 118 |
Level 1 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets (liabilities) | 131,350 | 103,439 |
Level 2 | Customer derivative positions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 143,918 | 102,722 |
Level 2 | Broker derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 717 | |
Liabilities | (12,568) | |
Level 2 | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | Investment in gold | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets (liabilities) | 0 | (9,974) |
Level 3 | Customer derivative positions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Broker derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Liabilities | 0 | |
Level 3 | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Investment in gold | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | 0 |
Level 3 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ (9,974) |
Fair Value Information - Reconciliation of Unobservable Level 3 Inputs (Details) - Contingent consideration - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 9,974 | $ 0 |
Issuance of contingent payment obligation | 10,540 | |
Gains included in earnings - adjustment to fair value of contingent consideration | (6,722) | |
Contingent consideration payments | (2,063) | |
Gains included in earnings - currency revaluation | (212) | (984) |
Losses included in earnings - discount amortization | 570 | 418 |
Settlement of contingent consideration | (1,547) | |
Ending balance | $ 0 | $ 9,974 |
Fair Value Information - Carrying Value and Fair Value and Fair Value Hierarchy Category of Financial Instruments Not Measured at Fair Value in Condensed Consolidated Statements of Financial Condition (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|
Financial Assets: | |||||
Receivable from brokers | $ 121,153 | $ 134,908 | [1] | ||
Financial Liabilities: | |||||
Convertible senior notes | 121,996 | 68,367 | [1] | ||
Derivative Assets | Level 2 | |||||
Financial Assets: | |||||
Receivable from brokers | 133,721 | 134,191 | |||
Derivative Assets | Carrying Value | |||||
Financial Assets: | |||||
Receivable from brokers | 133,721 | 134,191 | |||
Derivative Assets | Fair Value | |||||
Financial Assets: | |||||
Receivable from brokers | 133,721 | 134,191 | |||
Derivative Liabilities | |||||
Financial Liabilities: | |||||
Payables to customers | (1,064,539) | 862,281 | |||
Derivative Liabilities | Level 2 | |||||
Financial Liabilities: | |||||
Payables to customers | 1,064,539 | 862,281 | |||
Convertible senior notes | 122,264 | 66,440 | |||
Accrued expenses and other liabilities | 20,000 | ||||
Derivative Liabilities | Carrying Value | |||||
Financial Liabilities: | |||||
Payables to customers | 1,064,539 | 862,281 | |||
Convertible senior notes | 121,996 | 68,367 | |||
Accrued expenses and other liabilities | 20,000 | ||||
Derivative Liabilities | Fair Value | |||||
Financial Liabilities: | |||||
Payables to customers | 1,064,539 | 862,281 | |||
Convertible senior notes | $ 122,264 | 66,440 | |||
Accrued expenses and other liabilities | $ 20,000 | ||||
|
Derivatives - Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | |||||
Gross amounts of assets for derivative open positions at fair value | $ 268,850 | $ 228,509 | |||
Gross amounts of liability for derivative open positions at fair value | 137,500 | (125,070) | |||
Net amounts of assets/liabilities for derivative open positions at fair value | 131,350 | 103,439 | |||
Receivable from brokers | 121,153 | 134,908 | [1] | ||
Payables to customers | (920,621) | (759,559) | [1] | ||
Derivative Assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Receivables from brokers | 133,721 | 134,191 | |||
Net amounts of assets/liabilities for derivative open positions at fair value | (12,568) | 717 | |||
Derivative Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Payables to customers | 1,064,539 | (862,281) | |||
Net amounts of assets/liabilities for derivative open positions at fair value | 143,918 | 102,722 | |||
Foreign currency exchange contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross amounts of assets for derivative open positions at fair value | 138,140 | 168,034 | |||
Gross amounts of liability for derivative open positions at fair value | (59,468) | (93,057) | |||
Net amounts of assets/liabilities for derivative open positions at fair value | 78,672 | 74,977 | |||
CFD contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross amounts of assets for derivative open positions at fair value | 111,844 | 44,329 | |||
Gross amounts of liability for derivative open positions at fair value | 70,429 | (24,420) | |||
Net amounts of assets/liabilities for derivative open positions at fair value | 41,415 | 19,909 | |||
Metal contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Gross amounts of assets for derivative open positions at fair value | 18,866 | 16,146 | |||
Gross amounts of liability for derivative open positions at fair value | (7,603) | (7,593) | |||
Net amounts of assets/liabilities for derivative open positions at fair value | $ 11,263 | $ 8,553 | |||
|
Derivatives - Notional Value of Derivative Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Notional amounts of derivative open short positions | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | $ 3,217,057 | $ 2,690,129 |
Notional amounts of derivative open short positions | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | 2,931,109 | 2,679,041 |
Notional amounts of derivative open short positions | CFD contracts | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | 285,640 | 10,753 |
Notional amounts of derivative open short positions | Metal contracts | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | 308 | 335 |
Notional amounts of derivative open long positions | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | 3,247,628 | 4,021,423 |
Notional amounts of derivative open long positions | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | 3,106,885 | 3,147,518 |
Notional amounts of derivative open long positions | CFD contracts | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | 139,465 | 873,070 |
Notional amounts of derivative open long positions | Metal contracts | ||
Derivative [Line Items] | ||
Notional amounts of derivative open long positions | $ 1,278 | $ 835 |
Derivatives - Net Gains (Losses) with Respect to Derivative Instruments (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative [Line Items] | ||
Net gains (losses) on derivative instruments, total | $ 343,786 | $ 290,328 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Net gains (losses) on derivative instruments | 163,315 | 136,546 |
CFD contracts | ||
Derivative [Line Items] | ||
Net gains (losses) on derivative instruments | 151,553 | 105,174 |
Metal contracts | ||
Derivative [Line Items] | ||
Net gains (losses) on derivative instruments | $ 28,918 | $ 48,608 |
Receivables From Brokers (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|
Receivables from Brokerage Clients [Line Items] | |||||
Receivable from brokers | $ 121,153 | $ 134,908 | [1] | ||
Required Collateral | |||||
Receivables from Brokerage Clients [Line Items] | |||||
Receivable from brokers | 129,042 | 95,599 | |||
Excess from futures broker - Restricted | |||||
Receivables from Brokerage Clients [Line Items] | |||||
Receivable from brokers | 4,679 | 38,592 | |||
Open foreign exchange positions | |||||
Receivables from Brokerage Clients [Line Items] | |||||
Receivable from brokers | $ (12,568) | $ 717 | |||
|
Property and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
[1] | ||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | $ 75,117 | $ 50,340 | |||||
Less: Accumulated depreciation and amortization | (44,750) | (31,544) | [1] | ||||
Property and equipment, net | 30,367 | 18,796 | [1] | ||||
Depreciation and amortization expense | 11,111 | 6,610 | [1] | $ 8,283 | |||
Integration costs related to property and equipment | 5,400 | 1,200 | |||||
Software | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | 44,194 | 30,351 | |||||
Computer equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | 14,300 | 8,516 | |||||
Leasehold improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | 11,200 | 6,719 | |||||
Telephone equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | 881 | 719 | |||||
Office equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | 2,113 | 2,345 | |||||
Furniture and fixtures | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | 1,761 | 1,044 | |||||
Website development costs | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment | 668 | $ 646 | |||||
City Index | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Integration costs related to property and equipment | $ 1,900 | ||||||
|
Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jul. 10, 2014 |
Jul. 31, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
||||
Business Acquisition [Line Items] | ||||||||||
Purchased intangible amortization | $ 16,550 | $ 8,080 | $ 2,906 | [1] | ||||||
Integration costs related to intangible assets | 19,700 | $ 1,200 | ||||||||
Goodwill | 34,017 | $ 33,579 | ||||||||
Increase in goodwill | $ 400 | |||||||||
Forexster | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payment | $ 12,400 | |||||||||
Common stock issued as consideration for asset and business acquisitions | 5,300 | |||||||||
Intangible assets acquired | 21,400 | |||||||||
Intangible assets previously held as a prepayment | $ 3,700 | |||||||||
Useful life of asset | 10 years | |||||||||
Galvan | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payment | $ 9,732 | |||||||||
Goodwill | $ 14,108 | |||||||||
GAA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payment | $ 4,365 | |||||||||
Common stock issued as consideration for asset and business acquisitions | 1,241 | |||||||||
Goodwill | 6,158 | |||||||||
Top Third | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payment | 3,500 | |||||||||
Goodwill | $ 3,806 | |||||||||
|
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Intangible Assets by Major Class [Line Items] | |||||
Finite-lived intangible assets, gross | $ 139,055 | $ 73,113 | |||
Accumulated Amortization | (47,906) | (12,670) | [1] | ||
Finite-lived intangible assets, net | 91,149 | 60,443 | |||
Total intangibles, gross | 139,418 | 73,476 | |||
Intangible assets, net | 91,512 | 60,806 | [1] | ||
Future Annual Estimated Purchased Intangible Amortization Expense | |||||
2016 | 15,988 | ||||
2017 | 15,132 | ||||
2018 | 13,648 | ||||
2019 | 11,974 | ||||
2020 | 9,992 | ||||
Thereafter | 24,415 | ||||
Trademark | |||||
Intangible Assets by Major Class [Line Items] | |||||
Indefinite-lived intangible assets | 363 | 363 | |||
Intangible assets, net | 400 | ||||
Customer lists | |||||
Intangible Assets by Major Class [Line Items] | |||||
Finite-lived intangible assets, gross | 56,388 | 22,944 | |||
Accumulated Amortization | (14,111) | (7,152) | |||
Finite-lived intangible assets, net | 42,277 | 15,792 | |||
Total intangibles, gross | $ 56,388 | ||||
Weighted-average useful life | 7 years 7 months 6 days | ||||
Technology | |||||
Intangible Assets by Major Class [Line Items] | |||||
Finite-lived intangible assets, gross | $ 74,378 | 48,376 | |||
Accumulated Amortization | (32,117) | (4,671) | |||
Finite-lived intangible assets, net | 42,261 | 43,705 | |||
Total intangibles, gross | $ 74,378 | ||||
Weighted-average useful life | 8 years 10 months 24 days | ||||
Trademark | |||||
Intangible Assets by Major Class [Line Items] | |||||
Finite-lived intangible assets, gross | $ 8,289 | 1,793 | |||
Accumulated Amortization | (1,678) | (847) | |||
Finite-lived intangible assets, net | 6,611 | $ 946 | |||
Total intangibles, gross | 8,652 | ||||
Intangible assets, net | $ 8,700 | ||||
Weighted-average useful life | 6 years 8 months 12 days | ||||
|
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | ||
---|---|---|---|---|---|
Segment Reporting Information [Line Items] | |||||
Goodwill | $ 34,017 | $ 33,579 | |||
Operating Segments | Retail Segment | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | 26,722 | ||||
Operating Segments | Institutional Segment | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | 4,788 | ||||
Operating Segments | Futures Segment | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | $ 2,507 | ||||
|
Other Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||
---|---|---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||||
Vendor and security deposits | $ 11,486 | $ 3,373 | |||||
Current tax receivable | 9,482 | 5,163 | |||||
Deferred tax assets | 17,827 | 6,308 | |||||
Indemnification asset | 0 | 8,792 | |||||
GTX Trade Receivables | 4,881 | 4,190 | |||||
Customer debit positions | 7,340 | 6,594 | |||||
Allowance for uncollectible customer debit positions | (6,832) | (4,555) | [1] | $ (1,158) | $ (148) | ||
Miscellaneous receivables | 2,416 | 3,900 | |||||
Equity method investment | 822 | 0 | |||||
Other assets, net | 47,422 | $ 33,765 | [1] | ||||
Global Futures & Forex Ltd | |||||||
Business Acquisition [Line Items] | |||||||
Holdback amount | $ 20,000 | ||||||
|
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|
Related Party Transaction [Line Items] | |||||
Payables to customers | $ 920,621 | $ 759,559 | [1] | ||
Management | |||||
Related Party Transaction [Line Items] | |||||
Payables to customers | 300 | $ 3,600 | |||
IPGL Limited | |||||
Related Party Transaction [Line Items] | |||||
Payables to customers | $ 21,700 | ||||
|
Acquisitions - Additional Information (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2015 |
Sep. 24, 2013 |
Dec. 31, 2015 |
Jul. 31, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Nov. 27, 2013 |
|||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Settlement amount for contingent consideration | $ 13,893,000 | $ 0 | [1] | $ 2,419,000 | [1] | ||||||||||||||||
Acquisition expense | 2,819,000 | 3,526,000 | [1] | 1,824,000 | [1] | ||||||||||||||||
Net income attributable to non-controlling interest | $ 317,000 | $ 583,000 | $ 416,000 | $ 344,000 | $ 446,000 | $ 785,000 | $ 164,000 | $ 38,000 | 1,660,000 | 1,433,000 | [1] | 0 | [1] | ||||||||
Restructuring expenses | $ 3,482,000 | 2,334,000 | [1] | 450,000 | [1] | ||||||||||||||||
Convertible Debt | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Debt instrument, principal | $ 140,000,000.0 | ||||||||||||||||||||
Convertible Notes Due 2020 | Convertible Debt | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Stated interest rate | 4.125% | ||||||||||||||||||||
Debt instrument, principal | $ 60,000,000.0 | ||||||||||||||||||||
Customer lists | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Weighted-average useful life | 7 years 7 months 6 days | ||||||||||||||||||||
Technology | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Weighted-average useful life | 8 years 10 months 24 days | ||||||||||||||||||||
City Index | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Cash paid | 6,103,000 | ||||||||||||||||||||
Cash paid, amount held in escrow | $ 1,000,000 | ||||||||||||||||||||
Shares issued to acquire business | 5,319,149 | ||||||||||||||||||||
Shares issued to acquire business, amount held in escrow | 4,787,234 | ||||||||||||||||||||
Liabilities incurred | $ 65,000,000 | ||||||||||||||||||||
Liabilities incurred, amount held in escrow | 54,000,000 | ||||||||||||||||||||
Cash used to settle intercompany liabilities | 22,400,000 | ||||||||||||||||||||
Revenue from acquiree from acquisition date | $ 136,000,000 | ||||||||||||||||||||
Expenses from acquiree from acquisition date | 95,000,000 | ||||||||||||||||||||
Income (loss) before taxes from acquiree from acquisition date | 41,000,000 | ||||||||||||||||||||
Total purchase price | $ 116,203,000 | ||||||||||||||||||||
Acquisition expense | 2,800,000 | ||||||||||||||||||||
City Index | Convertible Notes Due 2020 | Convertible Debt | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Stated interest rate | 4.125% | ||||||||||||||||||||
Debt instrument, principal | $ 60,000,000.0 | ||||||||||||||||||||
City Index | Consolidation, Eliminations | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Revenue from acquiree from acquisition date | 30,800,000 | ||||||||||||||||||||
Expenses from acquiree from acquisition date | 2,300,000 | ||||||||||||||||||||
Income (loss) before taxes from acquiree from acquisition date | $ 28,500,000 | ||||||||||||||||||||
City Index | Customer lists | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Weighted-average useful life | 7 years 10 months 24 days | ||||||||||||||||||||
City Index | Trade name | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Weighted-average useful life | 7 years | ||||||||||||||||||||
City Index | Technology | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Weighted-average useful life | 6 years 10 months 24 days | ||||||||||||||||||||
Galvan | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Cash paid | $ 9,732,000 | ||||||||||||||||||||
Liabilities incurred | 10,540,000 | ||||||||||||||||||||
Revenue from acquiree from acquisition date | 5,200,000 | ||||||||||||||||||||
Expenses from acquiree from acquisition date | 3,000,000 | ||||||||||||||||||||
Income (loss) before taxes from acquiree from acquisition date | $ 2,200,000 | ||||||||||||||||||||
Total purchase price | $ 20,272,000 | ||||||||||||||||||||
Contingent consideration payable period | 3 years | ||||||||||||||||||||
Earnout payment | $ 2,100,000 | ||||||||||||||||||||
Settlement amount for contingent consideration | $ 1,500,000 | ||||||||||||||||||||
Acquisition expense | 400,000 | ||||||||||||||||||||
Galvan | Consolidation, Eliminations | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Revenue from acquiree from acquisition date | 2,400,000 | ||||||||||||||||||||
GAA | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Cash paid | $ 4,365,000 | ||||||||||||||||||||
Revenue from acquiree from acquisition date | 5,500,000 | ||||||||||||||||||||
Expenses from acquiree from acquisition date | 4,800,000 | ||||||||||||||||||||
Income (loss) before taxes from acquiree from acquisition date | 700,000 | ||||||||||||||||||||
Total purchase price | $ 5,606,000 | ||||||||||||||||||||
Percent acquired | 55.00% | 55.00% | |||||||||||||||||||
Acquisition expense | 100,000 | ||||||||||||||||||||
Net income attributable to non-controlling interest | 300,000 | ||||||||||||||||||||
GAA | Consolidation, Eliminations | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Revenue from acquiree from acquisition date | 4,300,000 | ||||||||||||||||||||
Top Third | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Cash paid | $ 3,500,000 | ||||||||||||||||||||
Revenue from acquiree from acquisition date | 5,100,000 | ||||||||||||||||||||
Expenses from acquiree from acquisition date | 2,600,000 | ||||||||||||||||||||
Income (loss) before taxes from acquiree from acquisition date | 2,500,000 | ||||||||||||||||||||
Percent acquired | 55.00% | 55.00% | |||||||||||||||||||
Acquisition expense | 100,000 | ||||||||||||||||||||
Net income attributable to non-controlling interest | 1,100,000 | ||||||||||||||||||||
Global Futures & Forex Ltd | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Cash paid | $ 40,000,000 | ||||||||||||||||||||
Liabilities incurred | 33,200,000 | ||||||||||||||||||||
Revenue from acquiree from acquisition date | 26,900,000 | ||||||||||||||||||||
Expenses from acquiree from acquisition date | 32,000,000 | ||||||||||||||||||||
Income (loss) before taxes from acquiree from acquisition date | (5,100,000) | ||||||||||||||||||||
Total purchase price | $ 110,131,000 | ||||||||||||||||||||
Acquisition expense | 1,800,000 | ||||||||||||||||||||
Non-recurring expense | $ 5,100,000 | ||||||||||||||||||||
Restructuring expenses | $ 3,482,000 | $ 2,334,000 | |||||||||||||||||||
|
Acquisitions - Schedule of Purchase Price (Details) - USD ($) $ in Thousands |
1 Months Ended | |||
---|---|---|---|---|
Apr. 01, 2015 |
Sep. 24, 2013 |
Jul. 31, 2014 |
Mar. 31, 2014 |
|
City Index | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 6,103 | |||
Liabilities incurred | 65,000 | |||
Common stock issued | 45,100 | |||
Total purchase price | $ 116,203 | |||
Galvan | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 9,732 | |||
Liabilities incurred | 10,540 | |||
Total purchase price | $ 20,272 | |||
GAA | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 4,365 | |||
Common stock issued | 1,241 | |||
Total purchase price | $ 5,606 | |||
Global Futures & Forex Ltd | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 40,000 | |||
Payment for excess cash adjustment | 2,160 | |||
Liabilities incurred | 33,200 | |||
Common stock issued | 34,771 | |||
Total purchase price | $ 110,131 |
Acquisitions - Allocation of Purchase Price to Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Apr. 01, 2015 |
Dec. 31, 2014 |
[1] | Jul. 31, 2014 |
Mar. 31, 2014 |
Sep. 24, 2013 |
||
---|---|---|---|---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 34,017 | $ 33,579 | |||||||
City Index | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents acquired | $ 10,546 | ||||||||
Cash and securities held for customers acquired | 281,576 | ||||||||
Receivables from brokers acquired | 35,974 | ||||||||
Property and equipment | 10,466 | ||||||||
Prepaid assets | 4,038 | ||||||||
Other assets acquired | 5,119 | ||||||||
Total tangible assets acquired | 347,719 | ||||||||
Total liabilities assumed | 299,000 | ||||||||
Net assets | 48,719 | ||||||||
Identified intangible assets | 67,079 | ||||||||
Goodwill | 405 | ||||||||
City Index | Customer lists | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | 34,277 | ||||||||
City Index | Trade name | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | 6,645 | ||||||||
City Index | Technology | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | $ 26,157 | ||||||||
Galvan | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents acquired | $ 2,193 | ||||||||
Receivables from brokers acquired | 745 | ||||||||
Property and equipment | 12 | ||||||||
Prepaid assets | 94 | ||||||||
Other assets acquired | 64 | ||||||||
Total tangible assets acquired | 3,108 | ||||||||
Total liabilities assumed | 1,931 | ||||||||
Net assets | 1,177 | ||||||||
Identified intangible assets | 4,987 | ||||||||
Goodwill | 14,108 | ||||||||
Galvan | Customer lists | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | 4,203 | ||||||||
Galvan | Trade name | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | $ 784 | ||||||||
GAA | |||||||||
Business Acquisition [Line Items] | |||||||||
Non-controlling interest | $ 4,509 | ||||||||
Cash and cash equivalents acquired | 360 | ||||||||
Receivables from brokers acquired | 438 | ||||||||
Property and equipment | 148 | ||||||||
Prepaid assets | 153 | ||||||||
Other assets acquired | 3 | ||||||||
Total tangible assets acquired | 1,102 | ||||||||
Total liabilities assumed | 515 | ||||||||
Net assets | 587 | ||||||||
Identified intangible assets | 3,370 | ||||||||
Goodwill | 6,158 | ||||||||
GAA | Customer lists | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | 3,100 | ||||||||
GAA | Trade name | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | 270 | ||||||||
Top Third | |||||||||
Business Acquisition [Line Items] | |||||||||
Non-controlling interest | 3,885 | ||||||||
Cash and cash equivalents acquired | 73 | ||||||||
Receivables from brokers acquired | 663 | ||||||||
Total tangible assets acquired | 736 | ||||||||
Total liabilities assumed | 1,103 | ||||||||
Net assets | (367) | ||||||||
Identified intangible assets | 3,990 | ||||||||
Goodwill | 3,806 | ||||||||
Top Third | Customer lists | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | 3,900 | ||||||||
Top Third | Trade name | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | $ 90 | ||||||||
Global Futures & Forex Ltd | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash and cash equivalents acquired | $ 15,781 | ||||||||
Cash and securities held for customers acquired | 228,419 | ||||||||
Receivables from brokers acquired | 61,028 | ||||||||
Property and equipment | 7,515 | ||||||||
Other assets acquired | 18,942 | ||||||||
Total tangible assets acquired | 331,685 | ||||||||
Total liabilities assumed | 251,691 | ||||||||
Net assets | 79,994 | ||||||||
Identified intangible assets | 28,450 | ||||||||
Goodwill | 1,687 | ||||||||
Global Futures & Forex Ltd | Software | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | 25,300 | ||||||||
Global Futures & Forex Ltd | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Identified intangible assets | $ 3,150 | ||||||||
|
Acquisitions - Pro Forma Revenue and Net Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||||
Revenues: | ||||||||||||||||
Total non-interest revenue | $ 102,712 | $ 128,045 | $ 111,452 | $ 92,967 | $ 115,157 | $ 102,786 | $ 70,005 | $ 80,412 | $ 435,176 | $ 368,360 | [1] | $ 267,026 | [1] | |||
Interest revenue | 1,220 | 1,428 | [1] | 821 | [1] | |||||||||||
Interest expense | 1,049 | 599 | [1] | 156 | [1] | |||||||||||
Total net interest revenue | 171 | 829 | [1] | 665 | [1] | |||||||||||
EXPENSES: | ||||||||||||||||
Depreciation and amortization | 11,111 | 6,610 | [1] | 8,283 | [1] | |||||||||||
Purchased intangible amortization | 16,550 | 8,080 | [1] | 2,906 | [1] | |||||||||||
Acquisition expense | 2,819 | 3,526 | [1] | 1,824 | [1] | |||||||||||
Restructuring expenses | 3,482 | 2,334 | [1] | 450 | [1] | |||||||||||
Integration expenses | 33,092 | 2,489 | [1] | 1,950 | [1] | |||||||||||
Total operating expense | 417,698 | 317,592 | [1] | 222,968 | [1] | |||||||||||
OPERATING PROFIT | 17,649 | 51,597 | [1] | 44,723 | [1] | |||||||||||
Gain on extinguishment of debt | 0 | 0 | [1] | 2,000 | [1] | |||||||||||
Impairment of investment | 0 | 50 | [1] | 450 | [1] | |||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 196 | 9,418 | (12,741) | 11,554 | 27,149 | 20,888 | (6,421) | 3,835 | 8,427 | 45,450 | [1] | 45,490 | [1] | |||
Income tax (benefit)/expense | (3,512) | 19,140 | [1] | 17,383 | [1] | |||||||||||
Net income attributable to non-controlling interest | 317 | 583 | 416 | 344 | 446 | 785 | 164 | 38 | 1,660 | 1,433 | [1] | 0 | [1] | |||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 15,510 | $ 2,201 | $ (12,897) | $ 5,465 | $ 22,520 | $ 9,563 | $ (7,747) | $ 539 | 10,279 | 24,877 | [1] | 28,107 | [1] | |||
City Index, GFT, GAA, Top Third, Galvan | Pro Forma | ||||||||||||||||
Revenues: | ||||||||||||||||
Total non-interest revenue | 471,959 | 506,228 | ||||||||||||||
Interest revenue | 1,303 | 2,288 | ||||||||||||||
Interest expense | 1,049 | 599 | ||||||||||||||
Total net interest revenue | 254 | 1,689 | ||||||||||||||
Net revenue | 472,213 | 507,917 | ||||||||||||||
EXPENSES: | ||||||||||||||||
Other expense items | 424,229 | 430,263 | ||||||||||||||
Depreciation and amortization | 11,753 | 16,500 | ||||||||||||||
Purchased intangible amortization | 18,619 | 17,962 | ||||||||||||||
Total operating expense | 454,601 | 464,725 | ||||||||||||||
OPERATING PROFIT | 17,612 | 43,192 | ||||||||||||||
Interest expense on long term borrowings | (10,267) | (9,283) | ||||||||||||||
Gain on extinguishment of debt | 0 | 0 | ||||||||||||||
Impairment of investment | 0 | 0 | ||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 7,345 | 33,909 | ||||||||||||||
Income tax (benefit)/expense | 126 | 16,399 | ||||||||||||||
NET INCOME | 7,219 | 17,510 | ||||||||||||||
Net income attributable to non-controlling interest | 1,660 | 1,433 | ||||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 5,559 | 16,077 | ||||||||||||||
Galvan, GAA, and Top Third | Pro Forma | ||||||||||||||||
Revenues: | ||||||||||||||||
Total non-interest revenue | 376,362 | 289,810 | ||||||||||||||
Interest revenue | 1,435 | 856 | ||||||||||||||
Interest expense | 599 | 156 | ||||||||||||||
Total net interest revenue | 836 | 700 | ||||||||||||||
Net revenue | 377,198 | 290,510 | ||||||||||||||
EXPENSES: | ||||||||||||||||
Other expense items | 308,607 | 227,273 | ||||||||||||||
Depreciation and amortization | 6,626 | 8,407 | ||||||||||||||
Purchased intangible amortization | 9,044 | 4,834 | ||||||||||||||
Total operating expense | 324,277 | 240,514 | ||||||||||||||
OPERATING PROFIT | 52,921 | 49,996 | ||||||||||||||
Interest expense on long term borrowings | (6,147) | (1,232) | ||||||||||||||
Gain on extinguishment of debt | 0 | 2,000 | ||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 46,774 | 50,764 | ||||||||||||||
Income tax (benefit)/expense | 19,316 | 18,750 | ||||||||||||||
NET INCOME | 27,458 | 32,014 | ||||||||||||||
Net income attributable to non-controlling interest | 1,308 | 691 | ||||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 26,150 | 31,323 | ||||||||||||||
Global Futures & Forex Ltd | ||||||||||||||||
EXPENSES: | ||||||||||||||||
Acquisition expense | 1,800 | |||||||||||||||
Restructuring expenses | $ 3,482 | $ 2,334 | ||||||||||||||
Global Futures & Forex Ltd | Pro Forma | ||||||||||||||||
Revenues: | ||||||||||||||||
Total non-interest revenue | 353,556 | $ 248,592 | ||||||||||||||
Interest revenue | 927 | 1,096 | ||||||||||||||
Interest expense | 634 | 537 | ||||||||||||||
Total net interest revenue | 293 | 559 | ||||||||||||||
Net revenue | 353,849 | 249,151 | ||||||||||||||
EXPENSES: | ||||||||||||||||
Other expense items | 299,945 | 261,679 | ||||||||||||||
Depreciation and amortization | 11,527 | 7,958 | ||||||||||||||
Purchased intangible amortization | 5,157 | 7,250 | ||||||||||||||
Acquisition expense | 1,824 | 85 | ||||||||||||||
Restructuring expenses | 451 | 634 | ||||||||||||||
Integration expenses | 1,950 | 0 | ||||||||||||||
Total operating expense | 320,854 | 277,606 | ||||||||||||||
OPERATING PROFIT | 32,995 | (28,455) | ||||||||||||||
Interest expense on long term borrowings | (1,232) | (444) | ||||||||||||||
Gain on extinguishment of debt | 2,000 | 0 | ||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 33,763 | (28,899) | ||||||||||||||
Income tax (benefit)/expense | 16,106 | (10,837) | ||||||||||||||
NET INCOME | $ 17,657 | $ (18,062) | ||||||||||||||
|
Acquisitions - Restructuring (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring expenses | $ 3,482 | $ 2,334 | [1] | $ 450 | [1] | ||
Global Futures & Forex Ltd | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring liability, beginning balance | 375 | 584 | |||||
Restructuring expenses | 3,482 | 2,334 | |||||
Restructuring payments | (3,358) | (2,543) | |||||
Restructuring liability, ending balance | $ 499 | $ 375 | $ 584 | ||||
|
Non-controlling Interests (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||
Increase (decrease) in non-controlling interests | ||||||||||||||||||
Beginning balance | $ 11,338 | [1] | $ 0 | $ 11,338 | [1] | $ 0 | ||||||||||||
Non-controlling interests related to acquisitions | 8,394 | |||||||||||||||||
Adjustment to the redemption value of noncontrolling interests | (308) | 2,107 | [1] | $ 0 | [1] | |||||||||||||
Net income attributable to non-controlling interest | $ 317 | $ 583 | $ 416 | $ 344 | $ 446 | $ 785 | $ 164 | $ 38 | 1,660 | 1,433 | [1] | 0 | [1] | |||||
Distributions to non-controlling interest holders | (1,644) | (596) | ||||||||||||||||
Ending balance | $ 11,046 | $ 11,338 | [1] | $ 11,046 | 11,338 | [1] | $ 0 | |||||||||||
Global Assets Advisors, LLC | ||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||
Ownership percentage held by parent | 55.00% | |||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 45.00% | |||||||||||||||||
Increase (decrease) in non-controlling interests | ||||||||||||||||||
Net income attributable to non-controlling interest | 300 | |||||||||||||||||
Top Third | ||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||
Ownership percentage held by parent | 55.00% | |||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 45.00% | |||||||||||||||||
Increase (decrease) in non-controlling interests | ||||||||||||||||||
Net income attributable to non-controlling interest | $ 1,100 | |||||||||||||||||
|
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 |
Jul. 31, 2015 |
May. 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2014 |
Jul. 31, 2014 |
May. 31, 2014 |
Feb. 28, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
[1] | ||||
Equity [Abstract] | |||||||||||||||
Common stock, shares authorized | 120,000,000 | 60,000,000 | |||||||||||||
Common stock, shares issued | 52,072,884 | 45,582,066 | |||||||||||||
Common stock, shares outstanding | 48,771,015 | 42,934,559 | |||||||||||||
Treasury stock, shares | 3,301,869 | 2,647,507 | |||||||||||||
Treasury stock, value | $ 21,808 | $ 16,720 | [1] | ||||||||||||
Common stock, dividend declared (usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |||||||
Payments of dividends | $ 9,530 | $ 8,139 | [1] | $ 7,326 | |||||||||||
|
Convertible Senior Notes - Additional Information (Details) |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2015
USD ($)
$ / shares
shares
|
Nov. 27, 2013
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
[1] | ||||
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of convertible senior note, net | $ 0 | $ 0 | [1] | $ 77,900,000 | |||||
Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal | $ 140,000,000.0 | ||||||||
Debt Instrument, Convertible, Issuance Amount of Equity Component | 27,900,000 | 27,920,000 | 12,572,000 | ||||||
Debt Issuance Cost, Purchasers Commission, Equity Component | 300,000 | ||||||||
Debt Issuance Cost, Additional Cost, Equity Component | 100,000 | ||||||||
Long-term Debt | 117,100,000 | 121,996,000 | 68,367,000 | ||||||
Debt Instrument, Unamortized Discount | 27,900,000 | $ 18,004,000 | $ 11,633,000 | ||||||
Debt Issuance Cost, Purchasers Commission | 1,800,000 | ||||||||
Debt Issuance Cost, Additional Cost | 400,000 | ||||||||
Convertible Notes Due 2020 | Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal | $ 60,000,000.0 | ||||||||
Stated interest rate | 4.125% | ||||||||
Conversion period, term preceding maturity date | 6 months | ||||||||
Debt Instrument, Convertible, Conversion Rate Calculation, Amount Divided by Initial Conversion Price | $ 1,000 | ||||||||
Debt Instrument, Convertible, Conversion Rate Calculation, Rounding, Shares | shares | 0.0001 | ||||||||
Debt Instrument, Convertible, Initial Conversion Price Calculation, Percentage of Arithmetic Average of Daily Volume-Weighted Average Price of Common Stock | 125.00% | ||||||||
Debt Instrument, Convertible, Conversion Price, Anti-Dilution Adjustments, Dividend Threshold | $ / shares | $ 0.05 | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Debt Instrument, Convertible, Term Preceding Maturity Date Before Which Instrument May Not Be Converted | 2 years | ||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | ||||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 days | ||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | ||||||||
Debt Instrument, Convertible, Default, Ownership Threshold | 25.00% | ||||||||
Debt Instrument, Unamortized Discount, Effective Interest Rate | 8.60% | ||||||||
Convertible Notes Due 2018 | Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal | $ 80,000,000.0 | ||||||||
Stated interest rate | 4.125% | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Proceeds from issuance of convertible senior note, net | $ 77,900,000 | ||||||||
Debt Instrument, Convertible, Conversion Ratio | 83.33 | ||||||||
Debt Instrument, Convertible, Incremental Principal Convertible | $ 1,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 12.00 | ||||||||
Debt Instrument, Unamortized Discount, Effective Interest Rate | 8.10% | ||||||||
Convertible Notes Due 2018 | Convertible Debt | Debt Instrument, Redemption, Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | ||||||||
Debt Instrument, Convertible, Number of Days Stock Price Exceeds Conversion Price Trigger | 20 days | ||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | ||||||||
Convertible Notes Due 2018 | Convertible Debt | Debt Instrument, Redemption, Period Two and Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Convertible, Conversion Period | 5 days | ||||||||
Convertible Notes Due 2018 | Convertible Debt | Debt Instrument, Redemption, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 98.00% | ||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 5 days | ||||||||
Minimum | Convertible Notes Due 2020 | Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 7.20 | ||||||||
Maximum | Convertible Notes Due 2020 | Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 9.25 | ||||||||
|
Convertible Senior Notes - Schedule of Liability and Equity Components (Details) - Convertible Debt - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Nov. 27, 2013 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Liability component - principal | $ 140,000 | $ 80,000 | |
Deferred bond discount | 18,004 | 11,633 | $ 27,900 |
Liability component - net carrying value | 121,996 | 68,367 | 117,100 |
Additional paid in capital | 27,920 | 12,572 | $ 27,900 |
Discount attributable to equity | (412) | (425) | |
Equity component | $ 27,508 | $ 12,147 |
Convertible Senior Notes - Schedule of Interest Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
[1] | ||||
Debt Instrument [Line Items] | |||||||
Interest expense - amortization of deferred bond discount and costs | $ 354 | $ 354 | [1] | $ 0 | |||
Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense - stated coupon rate | 5,156 | 3,300 | |||||
Interest expense - amortization of deferred bond discount and costs | 3,712 | 2,593 | |||||
Total interest expense - convertible note | $ 8,868 | $ 5,893 | |||||
|
Share Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Nov. 22, 2010 |
|||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, number of shares available for issuance | 8,700,000 | |||||||
Share based compensation, grants expiry period | 10 years | |||||||
Stock options, outstanding | 1,358,000 | 1,908,000 | ||||||
Stock option, weighted average remaining contractual life | 4 years 1 month 28 days | 3 years 3 months 18 days | ||||||
Stock options, exercisable | 938,000 | |||||||
Total intrinsic value of stock options exercised | $ 3,481 | $ 4,233 | $ 4,700 | |||||
Stock options vested | 300,000 | |||||||
Proceeds from exercise of stock options | $ 2,386 | $ 2,087 | [1] | $ 2,539 | [1] | |||
Stock options granted | 137,000 | 100,000 | 500,000 | |||||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 3.43 | $ 3.79 | $ 1.22 | |||||
Award vesting period | 4 years | |||||||
Total unrecognized compensation cost related to non-vested share-based compensation | $ 7,500 | |||||||
Total unrecognized compensation cost related to non-vested share-based compensation, recognition period | 3 years | |||||||
Fair market value on the grant date for RSUs and RSAs vested | $ 2,900 | $ 4,300 | $ 1,700 | |||||
Total intrinsic value of the RSUs and RSAs unrestricted | 4,200 | |||||||
Restricted Stock Units and Restricted Stock awards vested and outstanding | $ 2,900 | |||||||
Restricted Stock Units and Restricted Stock awards, granted | $ 4,500 | |||||||
Shares issued under employee stock purchase plan (in shares) | 92,777 | 98,606 | ||||||
Employee Stock Purchase Plan, discount | $ 100 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Conversion ratio to shares of common stock | 1 | |||||||
Award vesting period | 4 years | |||||||
Restiricted stock lapsing percentage | 25.00% | |||||||
Restricted stock, shares granted | 601,000 | 500,000 | 800,000 | |||||
Number of shares vested | 387,000 | |||||||
Restricted Stock Units and Restricted Stock awards, granted | $ 5,700 | |||||||
Restricted Stock Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Restiricted stock lapsing percentage | 25.00% | |||||||
Restricted stock, shares granted | 0 | 0 | 0 | |||||
Number of shares vested | 53,000 | |||||||
2015 Omnibus Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, number of shares available for issuance | 5,800,000 | |||||||
2010 Omnibus Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, number of shares available for issuance | 2,700,000 | |||||||
Employee Stock Purchase Plan 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation, number of shares available for issuance | 200,000 | |||||||
Employee Stock Purchase Plan, employee discount rate to purchase shares | 15.00% | |||||||
Shares reserved for issuance under employee Stock Purchase Plan | 500,000 | |||||||
|
Share Based Compensation - Schedule of Share-Based Compensation Cost (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Stock compensation expense | $ 3,680 | $ 3,452 | [1] | $ 2,975 | [1] | ||
|
Share Based Compensation - Summary of Stock Option Activity Under All Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Number of Options | |||
Beginning balance | 1,908 | ||
Granted | 137 | 100 | 500 |
Exercised | (638) | ||
Forfeited | (49) | ||
Ending balance | 1,358 | 1,908 | |
Vested and expected to vest options | 1,340 | ||
Number of Options Exercisable | 938 | ||
Fair market value of common stock at exercise date | $ 5,869 | ||
Cost to exercise | 2,388 | ||
Total intrinsic value of stock options exercised | $ 3,481 | $ 4,233 | $ 4,700 |
Weighted average exercise price | |||
Beginning balance | $ 4.83 | ||
Granted | 9.51 | ||
Exercised | 3.74 | ||
Forfeited | 6.62 | ||
Ending balance | 5.76 | $ 4.83 | |
Vested and expected to vest options | 5.71 | ||
Exercisable, end of period | $ 5.17 | ||
Weighted average remaining contractual term | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 4 years 1 month 28 days | 3 years 3 months 18 days | |
Granted | 6 years 4 months 24 days | ||
Exercised | 1 year 10 months 10 days | ||
Forfeited | 5 years | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 4 years 1 month 28 days | 3 years 3 months 18 days | |
Vested and expected to vest options | 4 years 1 month 17 days | ||
Exercisable, end of period | 3 years 9 months 29 days | ||
Aggregate intrinsic value | |||
Outstanding, end of period | $ 3,544 | ||
Vested and expected to vest options | 3,525 | ||
Exercisable, end of period | $ 2,792 |
Share Based Compensation - Summary of Outstanding and Exercisable Stock Options (Details) - $ / shares shares in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 1,358 | 1,908 |
Weighted Average Exercise Price | $ 5.76 | $ 4.83 |
Weighted Average Remaining Contractual Life (Years) | 4 years 1 month 28 days | 3 years 3 months 18 days |
Number of Options Exercisable | 938 | |
Weighted Average Exercise Price | $ 5.17 | |
$3.83 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 481 | |
Weighted Average Exercise Price | $ 3.83 | |
Weighted Average Remaining Contractual Life (Years) | 1 year 7 months 21 days | |
Number of Options Exercisable | 481 | |
Weighted Average Exercise Price | $ 3.83 | |
$4.4 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 238 | |
Weighted Average Exercise Price | $ 4.40 | |
Weighted Average Remaining Contractual Life (Years) | 4 years 2 months 19 days | |
Number of Options Exercisable | 90 | |
Weighted Average Exercise Price | $ 4.40 | |
$5.30 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 208 | |
Weighted Average Exercise Price | $ 5.30 | |
Weighted Average Remaining Contractual Life (Years) | 3 years 3 months 22 days | |
Number of Options Exercisable | 136 | |
Weighted Average Exercise Price | $ 5.30 | |
$8.02 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 210 | |
Weighted Average Exercise Price | $ 8.02 | |
Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 15 days | |
Number of Options Exercisable | 210 | |
Weighted Average Exercise Price | $ 8.02 | |
$9.51 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 137 | |
Weighted Average Exercise Price | $ 9.51 | |
Weighted Average Remaining Contractual Life (Years) | 9 years 6 months 4 days | |
Number of Options Exercisable | 0 | |
Weighted Average Exercise Price | $ 9.51 | |
$9.95 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding | 84 | |
Weighted Average Exercise Price | $ 9.95 | |
Weighted Average Remaining Contractual Life (Years) | 5 years 2 months 5 days | |
Number of Options Exercisable | 21 | |
Weighted Average Exercise Price | $ 9.95 |
Share Based Compensation - Assumptions for Stock Options Granted (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Valuation Assumptions | |||
Risk-free rate | 1.47% | 1.40% | 0.80% |
Expected volatility | 49.08% | 51.80% | 48.80% |
Expected life | 4 years 9 months | 4 years 9 months 18 days | 4 years 9 months 18 days |
Dividend yield | 2.10% | 2.00% | 4.90% |
Share Based Compensation - Summary of Nonvested Shares of Restricted Stock Units and Restricted Stock Awards (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Non-vested, beginning balance | 1,073,000 | ||
Granted | 601,000 | 500,000 | 800,000 |
Vested | (387,000) | ||
Forfeited | (104,000) | ||
Non-vested, ending balance | 1,183,000 | 1,073,000 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, beginning balance | $ 6.69 | ||
Granted | 9.42 | ||
Vested | 6.46 | ||
Forfeited | 8.08 | ||
Non-vested, ending balance | $ 8.03 | $ 6.69 | |
Restricted Stock Awards | |||
Number of Shares | |||
Non-vested, beginning balance | 54,000 | ||
Granted | 0 | 0 | 0 |
Vested | (53,000) | ||
Forfeited | (1,000) | ||
Non-vested, ending balance | 0 | 54,000 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, beginning balance | $ 7.31 | ||
Granted | 0.00 | ||
Vested | 7.32 | ||
Forfeited | 6.48 | ||
Non-vested, ending balance | $ 0.00 | $ 7.31 |
Earnings Per Common Share - Additional Information (Details) - $ / shares shares in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Earnings Per Share [Abstract] | ||
Anti-dilutive awards excluded from calculation of diluted earnings per share | 0.4 | 0.1 |
Common stock threshold for additional dilutive shares | $ 13 | |
Convertible Notes Due 2018 | ||
Debt Instrument [Line Items] | ||
Additional dilutive shares if common stock threshold is reached | 0.5 | |
Convertible Notes Due 2020 | ||
Debt Instrument [Line Items] | ||
Additional dilutive shares if common stock threshold is reached | 1.5 |
Earnings Per Common Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Earnings Per Share [Abstract] | |||||||||||||||
Net income | $ 15,510 | $ 2,201 | $ (12,897) | $ 5,465 | $ 22,520 | $ 9,563 | $ (7,747) | $ 539 | $ 10,279 | $ 24,877 | [1] | $ 28,107 | [1] | ||
Series E correction | 308 | (2,107) | (154) | ||||||||||||
Net income available to GAIN common shareholders | $ 10,587 | $ 22,770 | $ 27,953 | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic weighted average common shares outstanding | 47,601,979 | 40,561,644 | [1] | 36,551,246 | [1] | ||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options (in shares) | 424,087 | 763,068 | 1,214,370 | ||||||||||||
RSUs/RSAs (in shares) | 352,985 | 1,890,183 | 1,867,262 | ||||||||||||
Diluted weighted average common shares outstanding | 48,379,051 | 43,214,895 | [1] | 39,632,878 | [1] | ||||||||||
Earnings per common share | |||||||||||||||
Basic (usd per share) | $ 0.32 | $ 0.07 | $ (0.28) | $ 0.11 | $ 0.54 | $ 0.19 | $ (0.20) | $ 0.01 | $ 0.22 | $ 0.56 | [1] | $ 0.76 | [1] | ||
Diluted (usd per share) | $ 0.32 | $ 0.07 | $ (0.28) | $ 0.11 | $ 0.51 | $ 0.18 | $ (0.20) | $ 0.01 | $ 0.22 | $ 0.53 | [1] | $ 0.71 | [1] | ||
|
Legal - Additional Information (Details) |
Jun. 15, 2011
patents
|
Feb. 28, 2011
cases
|
---|---|---|
Long-term Purchase Commitment [Line Items] | ||
Number of alleged patent infringement lawsuit against the company | cases | 11 | |
Open E Cry Limited Liability Company | ||
Long-term Purchase Commitment [Line Items] | ||
Number of alleged patent infringement lawsuit against the company | patents | 12 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 3.7 | $ 5.1 | $ 3.7 |
Commitments and Contingencies - Future Annual Minimum Lease Payments (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $ 21,369 |
2017 | 6,716 |
2018 | 5,077 |
2019 | 4,478 |
2020 and beyond | 15,937 |
Total future annual lease payments | $ 53,577 |
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount | $ 37,200 | |||
Effective Income Tax Rate Reconciliation, Contingent Liability, Amount | 6,700 | |||
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 1,600 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Net, Amount | (200) | |||
Foreign operating loss carryforwards | 62,400 | |||
Foreign net operating loss carryforwards | 13,286 | $ 1,909 | ||
Valuation allowance on Foreign Operating loss carry forwards | 853 | |||
Undistributed earnings of foreign subsidiaries | 100,000 | |||
Income tax expense on undistributed earnings of foreign subsidiaries upon repatriation | 48,300 | |||
Amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 9,800 | |||
Liability for uncertain tax positions | 11,801 | 10,517 | $ 8,345 | $ 78 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 11,800 | 10,500 | $ 8,300 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 1,800 | $ 2,300 |
Income Taxes - Components of Income from Continuing Operations Before Income Tax Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Income Tax Disclosure [Abstract] | |||||||||||||||
U.S. | $ (39,761) | $ 17,439 | $ 18,546 | ||||||||||||
Non-U.S. | 48,188 | 28,011 | 26,944 | ||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | $ 196 | $ 9,418 | $ (12,741) | $ 11,554 | $ 27,149 | $ 20,888 | $ (6,421) | $ 3,835 | $ 8,427 | $ 45,450 | [1] | $ 45,490 | [1] | ||
|
Income Taxes - Provision for Income Tax Expense Benefit (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Current | |||||||
Federal | $ 1,136 | $ 8,658 | $ 15,201 | ||||
State | 172 | (199) | 321 | ||||
Current Income Tax Expense (Benefit) | 8,843 | 14,032 | 22,814 | ||||
Deferred | |||||||
Federal | (9,889) | 4,966 | (5,883) | ||||
State | (1,375) | (99) | 205 | ||||
Change in valuation allowance | (61) | 184 | 442 | ||||
Deferred Tax Expense (Benefit) | (12,355) | 5,108 | (5,431) | ||||
Total income tax (benefit) / expense | (3,512) | 19,140 | [1] | 17,383 | [1] | ||
UK | |||||||
Current | |||||||
Foreign | 7,239 | 5,322 | 7,275 | ||||
Deferred | |||||||
Foreign | (337) | (122) | 0 | ||||
Japan | |||||||
Current | |||||||
Foreign | 127 | 173 | 14 | ||||
Deferred | |||||||
Foreign | (148) | 159 | 121 | ||||
Other non-U.S. | |||||||
Current | |||||||
Foreign | 169 | 78 | 3 | ||||
Deferred | |||||||
Foreign | $ (545) | $ 20 | $ (316) | ||||
|
Income Taxes - Components of Company Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets | ||
Foreign net operating loss carryforwards | $ 13,286 | $ 1,909 |
Unrealized trading losses | 0 | 1,293 |
Stock-based compensation expense | 1,437 | 1,474 |
Intangible assets | 3,012 | 6,698 |
Basis difference in property and equipment | 4,950 | 0 |
Other | 2,962 | 2,126 |
Total deferred tax assets | 25,647 | 13,500 |
Valuation allowance | (853) | (913) |
Total deferred tax assets after valuation allowance | 24,794 | 12,587 |
Deferred tax liabilities | ||
Basis difference in property and equipment | 0 | (1,717) |
Discount on convertible note | (6,186) | (3,778) |
Other | (781) | (784) |
Total deferred tax liabilities | (6,967) | (6,279) |
Net deferred tax assets | $ 17,827 | $ 6,308 |
Income Taxes - Reconciles Provision to United States Federal Statutory Income Tax Rate (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | 35.00% | 35.00% | 35.00% |
Increase/(decrease) in taxes resulting from: | |||
State income tax | (9.25%) | (0.57%) | 0.76% |
Foreign rate differential | (96.96%) | (9.71%) | (5.22%) |
Deemed dividends | 55.30% | (0.00%) | (0.00%) |
R&D credit | 11.71% | 1.42% | (0.00%) |
Impact of non-controlling interests | (6.89%) | (1.10%) | (0.00%) |
Contingent liability | (27.92%) | 0.00% | 0.00% |
Foreign tax credit | (19.20%) | (0.00%) | (0.00%) |
162 (m) | 3.44% | 0.00% | 0.00% |
GFT Carryback | (6.58%) | (0.00%) | (0.00%) |
Uncertain tax positions | 19.67% | 14.04% | 5.88% |
Other permanent differences | 0.00% | 3.03% | 1.79% |
Effective Tax Rate | (41.68%) | 42.11% | 38.21% |
Income Taxes - Gross Unrecognized Tax Benefits from Uncertain Tax Positions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance as of January 1 | $ 10,517 | $ 8,345 | $ 78 |
Increases based on tax positions related to the current period | 885 | 2,197 | 8,287 |
Increases based on tax positions related to prior periods | 429 | 0 | 0 |
Decreases related to a lapse of applicable statute of limitations | (30) | (25) | (20) |
Ending balance as of December 31 | $ 11,801 | $ 10,517 | $ 8,345 |
Retirement Plans - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Employee compensation, benefits and expense | $ 0.9 | $ 1.3 | $ 0.9 |
401(K) retirement plan | First Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer's matching contribution percentage | 100.00% | ||
Employer's contribution percentage | 3.00% | ||
401(K) retirement plan | Next Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer's matching contribution percentage | 50.00% | ||
Employer's contribution percentage | 2.00% |
Regulatory Requirements - Additional Information (Details) € in Thousands, $ in Thousands, SGD in Millions, AUD in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2015
SGD
|
Dec. 31, 2015
EUR (€)
|
Dec. 31, 2015
AUD
|
Dec. 31, 2014
USD ($)
|
[1] | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Payables to customers | $ 920,621 | $ 759,559 | ||||||
Requirement Maintained | 227.00% | 227.00% | 227.00% | 227.00% | ||||
Capital Requirements | $ 114,500 | |||||||
Capital in excess of regulatory capital, value | 145,000 | |||||||
GAIN Capital Group, LLC | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Minimum adjusted net capital requirement of Customer and Non-Customer Maintenance Margin | $ 2,500 | |||||||
Minimum adjusted net capital requirement of Customer and Non-Customer Maintenance Margin, Percent | 8.00% | 8.00% | 8.00% | 8.00% | ||||
Net capital requirement | $ 20,000 | |||||||
Percentage of total payables to customers required to be maintained | 5.00% | 5.00% | 5.00% | 5.00% | ||||
Requirement Maintained | 139.00% | 139.00% | 139.00% | 139.00% | ||||
Capital Requirements | $ 26,100 | |||||||
Capital in excess of regulatory capital, value | 10,200 | |||||||
GAIN Capital Group, LLC | Minimum | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Payables to customers | 10,000 | |||||||
GAIN Capital Securities, Inc. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Net capital requirement | $ 50 | |||||||
Requirement Maintained | 400.00% | 400.00% | 400.00% | 400.00% | ||||
Capital Requirements | $ 100 | |||||||
Capital in excess of regulatory capital, value | $ 300 | |||||||
GAIN Capital Securities, Inc. | Maximum | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Aggregate indebtedness to net capital ratio | 15 | 15 | 15 | 15 | ||||
GAIN Capital-Forex.com U.K., Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 222.00% | 222.00% | 222.00% | 222.00% | ||||
Capital Requirements | $ 27,800 | |||||||
Capital in excess of regulatory capital, value | 33,800 | |||||||
GAIN Capital-Forex.com U.K., Ltd. | Minimum | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Net capital requirement | $ 1,000 | € 730 | ||||||
Gain Capital UK, Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 235.00% | 235.00% | 235.00% | 235.00% | ||||
Capital Requirements | $ 54,500 | |||||||
Capital in excess of regulatory capital, value | 73,400 | |||||||
Gain Capital UK, Ltd. | Minimum | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Net capital requirement | $ 1,000 | € 730 | ||||||
Forex.com Japan Co., Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 1067.00% | 1067.00% | 1067.00% | 1067.00% | ||||
Capital Requirements | $ 900 | |||||||
Capital in excess of regulatory capital, value | $ 8,700 | |||||||
Minimum capital adequacy ratio | 120.00% | 120.00% | 120.00% | 120.00% | ||||
GAIN Capital Forex.com Australia, Pty. Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Net capital requirement | $ 700 | AUD 1.0 | ||||||
Excess regulatory capital required, percentage | 110.00% | |||||||
Requirement Maintained | 343.00% | 343.00% | 343.00% | 343.00% | ||||
Capital in excess of regulatory capital, value | $ 1,700 | |||||||
Gain Capital Australia Pty Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 400.00% | 400.00% | 400.00% | 400.00% | ||||
Tangible Capital Held in Cash, Minimum Requirement | 50.00% | 50.00% | 50.00% | 50.00% | ||||
Tangible Capital Held in Liquid Assets, Minimum Requirement | 50.00% | 50.00% | 50.00% | 50.00% | ||||
Capital Requirements | $ 700 | AUD 1.0 | ||||||
Tangible Capital Required for Capital Adequacy to Tangible Assets | 110.00% | 110.00% | 110.00% | 110.00% | ||||
Capital in excess of regulatory capital, value | $ 2,100 | |||||||
Gain Capital Australia Pty Ltd. | Australian Securities & Investments Commission [Member] | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Number of days to report NTA noncompliance | 3 days | |||||||
Gain Capital Australia Pty Ltd. | Maximum | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Tangible capital required (greater of) | $ 800 | |||||||
Average revenue required, percentage (greater of) | 10.00% | |||||||
GAIN Capital-Forex.com Hong Kong, Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Percentage of total payables to customers required to be maintained | 5.00% | 5.00% | 5.00% | 5.00% | ||||
Requirement Maintained | 205.00% | 205.00% | 205.00% | 205.00% | ||||
Capital Requirements | $ 1,900 | |||||||
Capital in excess of regulatory capital, value | $ 2,000 | |||||||
Aggregate gross foreign currency position | 1.50% | 1.50% | 1.50% | 1.50% | ||||
GAIN Capital-Forex.com Hong Kong, Ltd. | Maximum | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Net capital requirement | $ 1,900 | |||||||
Gain Global Markets, Inc. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 150.00% | 150.00% | 150.00% | 150.00% | ||||
Capital Requirements | $ 200 | |||||||
Capital in excess of regulatory capital, value | 100 | |||||||
Net capital requirement | $ 100 | |||||||
GAIN Capital-Forex.com Canada Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 700.00% | 700.00% | 700.00% | 700.00% | ||||
Capital Requirements | $ 200 | |||||||
Capital in excess of regulatory capital, value | $ 1,200 | |||||||
Gain Capital Singapore Pte. Ltd. | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 1233.00% | 1233.00% | 1233.00% | 1233.00% | ||||
Capital Requirements | $ 600 | SGD 1.0 | ||||||
Capital in excess of regulatory capital, value | $ 6,800 | |||||||
Minimum capital adequacy ratio | 120.00% | 120.00% | 120.00% | 120.00% | ||||
Galvan | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Requirement Maintained | 614.00% | 614.00% | 614.00% | 614.00% | ||||
Base financial resources requirement | $ 100 | € 50 | ||||||
Capital Requirements | 700 | |||||||
Capital in excess of regulatory capital, value | 3,600 | |||||||
Global Assets Advisors, LLC | ||||||||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ||||||||
Net capital requirement | $ 100 | |||||||
Requirement Maintained | 1200.00% | 1200.00% | 1200.00% | 1200.00% | ||||
Capital Requirements | $ 100 | |||||||
Capital in excess of regulatory capital, value | $ 1,100 | |||||||
|
Regulatory Requirements - Minimum Regulatory Capital Subsidiaries Required to Maintain (Details) $ in Thousands, SGD in Millions, AUD in Millions |
Dec. 31, 2015
USD ($)
|
Dec. 31, 2015
SGD
|
Dec. 31, 2015
AUD
|
---|---|---|---|
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 114,500 | ||
Capital Levels Maintained | 259,500 | ||
Excess Net Capital | $ 145,000 | ||
Requirement Maintained | 227.00% | 227.00% | 227.00% |
GAIN Capital Group, LLC | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 26,100 | ||
Capital Levels Maintained | 36,300 | ||
Excess Net Capital | $ 10,200 | ||
Requirement Maintained | 139.00% | 139.00% | 139.00% |
Net capital requirement | $ 20,000 | ||
GAIN Capital Securities, Inc. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | 100 | ||
Capital Levels Maintained | 400 | ||
Excess Net Capital | $ 300 | ||
Requirement Maintained | 400.00% | 400.00% | 400.00% |
Net capital requirement | $ 50 | ||
Gain Global Markets, Inc. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | 200 | ||
Capital Levels Maintained | 300 | ||
Excess Net Capital | $ 100 | ||
Requirement Maintained | 150.00% | 150.00% | 150.00% |
Gain Capital UK, Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 54,500 | ||
Capital Levels Maintained | 127,900 | ||
Excess Net Capital | $ 73,400 | ||
Requirement Maintained | 235.00% | 235.00% | 235.00% |
Gain Capital Singapore Pte. Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 600 | SGD 1.0 | |
Capital Levels Maintained | 7,400 | ||
Excess Net Capital | $ 6,800 | ||
Requirement Maintained | 1233.00% | 1233.00% | 1233.00% |
Gain Capital Australia Pty Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 700 | AUD 1.0 | |
Capital Levels Maintained | 2,800 | ||
Excess Net Capital | $ 2,100 | ||
Requirement Maintained | 400.00% | 400.00% | 400.00% |
GAIN Capital Forex.com Australia, Pty. Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Levels Maintained | $ 2,400 | ||
Excess Net Capital | $ 1,700 | ||
Requirement Maintained | 343.00% | 343.00% | 343.00% |
Net capital requirement | $ 700 | AUD 1.0 | |
GAIN Capital-Forex.com U.K., Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | 27,800 | ||
Capital Levels Maintained | 61,600 | ||
Excess Net Capital | $ 33,800 | ||
Requirement Maintained | 222.00% | 222.00% | 222.00% |
GAIN Capital-Forex.com Hong Kong, Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 1,900 | ||
Capital Levels Maintained | 3,900 | ||
Excess Net Capital | $ 2,000 | ||
Requirement Maintained | 205.00% | 205.00% | 205.00% |
GAIN Capital-Forex.com Canada Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 200 | ||
Capital Levels Maintained | 1,400 | ||
Excess Net Capital | $ 1,200 | ||
Requirement Maintained | 700.00% | 700.00% | 700.00% |
Forex.com Japan Co., Ltd. | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 900 | ||
Capital Levels Maintained | 9,600 | ||
Excess Net Capital | $ 8,700 | ||
Requirement Maintained | 1067.00% | 1067.00% | 1067.00% |
Galvan | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 700 | ||
Capital Levels Maintained | 4,300 | ||
Excess Net Capital | $ 3,600 | ||
Requirement Maintained | 614.00% | 614.00% | 614.00% |
Global Assets Advisors, LLC | |||
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |||
Capital Requirements | $ 100 | ||
Capital Levels Maintained | 1,200 | ||
Excess Net Capital | $ 1,100 | ||
Requirement Maintained | 1200.00% | 1200.00% | 1200.00% |
Net capital requirement | $ 100 |
Segment Information - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
Segment
|
Sep. 30, 2015
Segment
|
Dec. 31, 2015
USD ($)
Segment
market
|
Dec. 31, 2014
USD ($)
Segment
|
Dec. 31, 2013
USD ($)
|
|||||
Segment Reporting Information [Line Items] | |||||||||
Number of operating segments | Segment | 3 | 1 | 3 | 1 | |||||
Number of accessible global financial markets | market | 12,500 | ||||||||
Adjustment to fair value of contingent consideration | $ 6,722 | $ 0 | [1] | $ 0 | [1] | ||||
Intersegment Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | (1,300) | (900) | (900) | ||||||
Corporate and other | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 3,716 | $ (819) | $ 3,729 | ||||||
Revenue | Corporate and other | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Adjustment to fair value of contingent consideration | $ 6,700 | ||||||||
|
Segment Information - Selected Financial Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Segment Reporting Information [Line Items] | |||||||
Employee compensation and benefits | $ 106,581 | $ 99,233 | [1] | $ 74,607 | [1] | ||
Selling and marketing | 27,168 | 20,213 | [1] | 22,337 | [1] | ||
Referral fees | 103,523 | 90,972 | [1] | 52,623 | [1] | ||
Segment Profit | 80,481 | 74,686 | 60,586 | ||||
Operating Segments | Retail Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 351,472 | 296,941 | 218,848 | ||||
Employee compensation and benefits | 67,515 | 61,989 | 44,924 | ||||
Selling and marketing | 26,129 | 19,574 | 21,761 | ||||
Referral fees | 87,175 | 78,553 | 41,459 | ||||
Other operating expenses | 76,301 | 51,561 | 33,148 | ||||
Segment Profit | 94,352 | 85,264 | 77,556 | ||||
Operating Segments | Institutional Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 35,072 | 35,413 | 29,213 | ||||
Employee compensation and benefits | 15,305 | 13,963 | 13,006 | ||||
Selling and marketing | 138 | 120 | 244 | ||||
Referral fees | 0 | 0 | 0 | ||||
Other operating expenses | 9,573 | 10,939 | 8,170 | ||||
Segment Profit | 10,056 | 10,391 | 7,793 | ||||
Operating Segments | Futures Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 45,797 | 36,016 | 23,360 | ||||
Employee compensation and benefits | 10,634 | 8,918 | 3,399 | ||||
Selling and marketing | 901 | 519 | 332 | ||||
Referral fees | 16,348 | 12,419 | 11,164 | ||||
Other operating expenses | 13,960 | 11,585 | 8,948 | ||||
Segment Profit | 3,954 | 2,575 | (483) | ||||
Corporate and other | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | (3,716) | 819 | (3,729) | ||||
Employee compensation and benefits | 13,127 | 14,362 | 13,279 | ||||
Selling and marketing | 0 | 0 | 0 | ||||
Referral fees | 0 | 0 | 0 | ||||
Other operating expenses | 11,038 | 10,001 | 7,272 | ||||
Segment Profit | $ (27,881) | $ (23,544) | $ (24,280) | ||||
|
Segment Information - Reconciliation of Segment Profit (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment Profit | $ 80,481 | $ 74,686 | $ 60,586 | ||||||||||||
Depreciation and amortization | 11,111 | 6,610 | [1] | 8,283 | [1] | ||||||||||
Purchased intangible amortization | 16,550 | 8,080 | [1] | 2,906 | [1] | ||||||||||
Acquisition expenses | 2,819 | 3,526 | [1] | 1,824 | [1] | ||||||||||
Restructuring expenses | 3,482 | 2,334 | [1] | 450 | [1] | ||||||||||
Integration expenses | 33,092 | 2,489 | [1] | 1,950 | [1] | ||||||||||
Impairment of investment | 0 | 50 | [1] | 450 | [1] | ||||||||||
Adjustment to fair value of contingent consideration | (6,722) | 0 | [1] | 0 | [1] | ||||||||||
SNB bad debt provision | 2,500 | 0 | 0 | ||||||||||||
OPERATING PROFIT | 17,649 | 51,597 | [1] | 44,723 | [1] | ||||||||||
Interest expense on long term borrowings | 9,222 | 6,147 | [1] | 1,233 | [1] | ||||||||||
Gain on extinguishment of debt | 0 | 0 | [1] | 2,000 | [1] | ||||||||||
INCOME BEFORE INCOME TAX EXPENSE | $ 196 | $ 9,418 | $ (12,741) | $ 11,554 | $ 27,149 | $ 20,888 | $ (6,421) | $ 3,835 | 8,427 | 45,450 | [1] | 45,490 | [1] | ||
Operating Segments | Retail Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment Profit | 94,352 | 85,264 | 77,556 | ||||||||||||
Operating Segments | Institutional Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment Profit | 10,056 | 10,391 | 7,793 | ||||||||||||
Operating Segments | Futures Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment Profit | 3,954 | 2,575 | (483) | ||||||||||||
Corporate and other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment Profit | $ (27,881) | $ (23,544) | $ (24,280) | ||||||||||||
|
Segment Information - Net Revenue and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net revenue | $ 102,793 | $ 128,111 | $ 111,457 | $ 92,986 | $ 115,275 | $ 102,956 | $ 70,264 | $ 80,722 | $ 435,347 | $ 369,189 | [1] | $ 267,691 | [1] | ||
Long-lived assets | 30,367 | 18,796 | 30,367 | 18,796 | |||||||||||
North America | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net revenue | 107,534 | 133,103 | 153,449 | ||||||||||||
Long-lived assets | 6,370 | 16,729 | 6,370 | 16,729 | |||||||||||
Europe | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net revenue | 307,087 | 237,391 | 33,347 | ||||||||||||
Long-lived assets | 23,147 | 1,820 | 23,147 | 1,820 | |||||||||||
Other | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net revenue | 20,726 | (1,305) | 80,895 | ||||||||||||
Long-lived assets | 850 | 247 | 850 | 247 | |||||||||||
U.S. | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net revenue | 107,500 | 133,100 | 153,500 | ||||||||||||
Long-lived assets | 6,400 | 16,700 | 6,400 | 16,700 | |||||||||||
UK | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net revenue | 307,300 | 237,700 | $ 33,300 | ||||||||||||
Long-lived assets | $ 23,100 | $ 1,700 | $ 23,100 | $ 1,700 | |||||||||||
|
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total non-interest revenue | $ 102,712 | $ 128,045 | $ 111,452 | $ 92,967 | $ 115,157 | $ 102,786 | $ 70,005 | $ 80,412 | $ 435,176 | $ 368,360 | [1] | $ 267,026 | [1] | ||
Net revenue | 102,793 | 128,111 | 111,457 | 92,986 | 115,275 | 102,956 | 70,264 | 80,722 | 435,347 | 369,189 | [1] | 267,691 | [1] | ||
Income/(loss) before income tax expense | 196 | 9,418 | (12,741) | 11,554 | 27,149 | 20,888 | (6,421) | 3,835 | 8,427 | 45,450 | [1] | 45,490 | [1] | ||
Net income/(loss) | 15,827 | 2,784 | (12,481) | 5,809 | 22,966 | 10,348 | (7,583) | 577 | 11,939 | 26,310 | [1] | 28,107 | [1] | ||
Net income attributable to non-controlling interest | 317 | 583 | 416 | 344 | 446 | 785 | 164 | 38 | 1,660 | 1,433 | [1] | 0 | [1] | ||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 15,510 | $ 2,201 | $ (12,897) | $ 5,465 | $ 22,520 | $ 9,563 | $ (7,747) | $ 539 | $ 10,279 | $ 24,877 | [1] | $ 28,107 | [1] | ||
Basic net income (loss) per share (in dollars per share) | $ 0.32 | $ 0.07 | $ (0.28) | $ 0.11 | $ 0.54 | $ 0.19 | $ (0.20) | $ 0.01 | $ 0.22 | $ 0.56 | [1] | $ 0.76 | [1] | ||
Diluted net income (loss) per share (in dollars per share) | $ 0.32 | $ 0.07 | $ (0.28) | $ 0.11 | $ 0.51 | $ 0.18 | $ (0.20) | $ 0.01 | $ 0.22 | $ 0.53 | [1] | $ 0.71 | [1] | ||
Scenario, Previously Reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total non-interest revenue | $ 127,865 | $ 111,559 | $ 92,933 | $ 114,725 | $ 103,388 | $ 69,504 | $ 81,087 | $ 368,704 | $ 266,959 | ||||||
Net revenue | 127,931 | 111,564 | 92,952 | 114,751 | 103,650 | 69,763 | 81,397 | 369,533 | 267,624 | ||||||
Income/(loss) before income tax expense | 9,215 | (12,538) | 11,498 | 26,456 | 21,470 | (7,013) | 5,140 | 46,052 | 45,105 | ||||||
Net income/(loss) | 8,887 | (8,414) | 8,680 | 18,058 | 16,130 | (4,992) | 3,863 | 33,059 | 31,311 | ||||||
Net income attributable to non-controlling interest | 583 | 416 | 344 | 446 | 785 | 164 | 38 | ||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 8,304 | $ (8,830) | $ 8,336 | $ 17,612 | $ 15,345 | $ (5,156) | $ 3,826 | $ 31,626 | $ 31,311 | ||||||
Basic net income (loss) per share (in dollars per share) | $ 0.20 | $ (0.23) | $ 0.19 | $ 0.44 | $ 0.35 | $ (0.13) | $ 0.10 | $ 0.76 | $ 0.85 | ||||||
Diluted net income (loss) per share (in dollars per share) | $ 0.20 | $ (0.23) | $ 0.18 | $ 0.42 | $ 0.33 | $ (0.13) | $ 0.09 | $ 0.71 | $ 0.79 | ||||||
Restatement Adjustments | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Net income/(loss) | $ (6,749) | $ (3,204) | |||||||||||||
Tax Adjustment | Restatement Adjustments | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total non-interest revenue | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | ||||||
Net revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Income/(loss) before income tax expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Net income/(loss) | (6,306) | (3,864) | (2,927) | 4,162 | (5,199) | (3,183) | (1,980) | (6,200) | (3,589) | ||||||
Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | (6,306) | (3,864) | (2,927) | 4,162 | (5,199) | (3,183) | $ (1,980) | $ (6,200) | $ (3,589) | ||||||
Basic net income (loss) per share (in dollars per share) | $ 0.00 | $ (0.16) | $ (0.10) | ||||||||||||
Diluted net income (loss) per share (in dollars per share) | $ (0.14) | $ (0.09) | |||||||||||||
Other Adjustments | Restatement Adjustments | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total non-interest revenue | 180 | (107) | 34 | 432 | (602) | 501 | $ (675) | $ (344) | $ 67 | ||||||
Net revenue | 180 | (107) | 34 | 524 | (694) | 501 | (675) | (344) | 67 | ||||||
Income/(loss) before income tax expense | 203 | (203) | 56 | 693 | (582) | 592 | (1,305) | (602) | 385 | ||||||
Net income/(loss) | 203 | (203) | 56 | 746 | (583) | 592 | (1,305) | (549) | 385 | ||||||
Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 203 | $ (203) | $ 56 | $ 746 | $ (583) | $ 592 | $ (1,305) | $ (549) | $ 385 | ||||||
Basic net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.01 | |||||||||||||
Diluted net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.01 | |||||||||||||
|
Subsequent Events - Additional Information (Detail) - $ / shares |
1 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Nov. 30, 2015 |
Jul. 31, 2015 |
May. 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2014 |
Jul. 31, 2014 |
May. 31, 2014 |
Feb. 28, 2014 |
|
Subsequent Event [Line Items] | |||||||||
Common stock, dividend declared (usd per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, dividend declared (usd per share) | $ 0.05 |
Schedule I - Consolidated Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||||
---|---|---|---|---|---|---|---|---|---|
ASSETS: | |||||||||
Cash and cash equivalents | $ 171,888 | $ 139,351 | [1] | $ 39,871 | [1] | $ 36,820 | [1] | ||
Equity investments in subsidiaries | 822 | 0 | |||||||
Prepaid assets | 7,835 | 2,537 | [1] | ||||||
Deferred tax assets | 17,827 | 6,308 | |||||||
Other assets | 47,422 | 33,765 | [1] | ||||||
Total assets | 1,424,815 | 1,183,301 | [1] | ||||||
Liabilities | |||||||||
Accrued compensation and benefits | 12,362 | 16,912 | [1] | ||||||
Accrued expenses and other liabilities | 51,638 | 76,195 | [1] | ||||||
Convertible senior notes | 121,996 | 68,367 | [1] | ||||||
Total liabilities | $ 1,107,685 | $ 922,043 | [1] | ||||||
Commitments and contingent liabilities | [1] | ||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Common stock ($0.00001 par value; 120 million shares authorized, 52,072,884 shares issued and 48,771,015 shares outstanding as of December 31, 2015; 60 million shares authorized, 45,582,066 shares issued and 42,934,559 shares outstanding as of December 31, 2014) | $ 0 | $ 0 | [1] | ||||||
Accumulated other comprehensive income | (5,865) | (1,513) | [1] | ||||||
Additional paid-in capital | 212,981 | 148,378 | [1] | ||||||
Treasury stock, at cost (3,301,869 shares at December 31, 2015 and 2,647,507 at December 31, 2014, respectively) | (21,808) | (16,720) | [1] | ||||||
Retained earnings | 120,776 | 119,775 | [1] | ||||||
Total shareholders’ equity | 306,084 | 249,920 | [1] | 226,723 | [1] | 162,568 | [1] | ||
Total liabilities and shareholders’ equity | 1,424,815 | 1,183,301 | [1] | ||||||
Parent Company | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | 451 | 1,184 | 42,352 | 49 | |||||
Equity investments in subsidiaries | 447,732 | 380,110 | |||||||
Receivables from affiliates | 2,442 | 17,545 | |||||||
Prepaid assets | 4 | 2 | |||||||
Current tax receivable | 9,482 | 4,994 | |||||||
Deferred tax assets | 13,563 | 5,911 | |||||||
Other assets | 495 | 7,736 | |||||||
Total assets | 474,169 | 417,482 | |||||||
Liabilities | |||||||||
Accrued compensation and benefits | 211 | 51 | |||||||
Accrued expenses and other liabilities | 20,438 | 37,154 | |||||||
Payable to affiliates | 25,440 | 61,990 | |||||||
Convertible senior notes | 121,996 | 68,367 | |||||||
Income tax payable | 0 | ||||||||
Total liabilities | $ 168,085 | $ 167,562 | |||||||
Commitments and contingent liabilities | |||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Common stock ($0.00001 par value; 120 million shares authorized, 52,072,884 shares issued and 48,771,015 shares outstanding as of December 31, 2015; 60 million shares authorized, 45,582,066 shares issued and 42,934,559 shares outstanding as of December 31, 2014) | $ 0 | $ 0 | |||||||
Accumulated other comprehensive income | (5,865) | (1,513) | |||||||
Additional paid-in capital | 212,981 | 148,378 | |||||||
Treasury stock, at cost (3,301,869 shares at December 31, 2015 and 2,647,507 at December 31, 2014, respectively) | (21,808) | (16,720) | |||||||
Retained earnings | 120,776 | 119,775 | |||||||
Total shareholders’ equity | 306,084 | 249,920 | |||||||
Total liabilities and shareholders’ equity | $ 474,169 | 417,482 | |||||||
Scenario, Previously Reported | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | 139,403 | ||||||||
Other assets | 35,311 | ||||||||
Total assets | 1,185,887 | ||||||||
Liabilities | |||||||||
Accrued expenses and other liabilities | 64,476 | ||||||||
Total liabilities | 910,784 | ||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Accumulated other comprehensive income | (2,054) | ||||||||
Additional paid-in capital | 152,684 | ||||||||
Retained earnings | 130,984 | ||||||||
Total shareholders’ equity | 264,894 | 234,401 | $ 162,830 | ||||||
Total liabilities and shareholders’ equity | 1,185,887 | ||||||||
Scenario, Previously Reported | Parent Company | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | 1,235 | 42,352 | |||||||
Equity investments in subsidiaries | 381,240 | ||||||||
Receivables from affiliates | 18,533 | ||||||||
Current tax receivable | 5,084 | ||||||||
Deferred tax assets | 0 | ||||||||
Other assets | 15,703 | ||||||||
Total assets | 421,797 | ||||||||
Liabilities | |||||||||
Accrued expenses and other liabilities | 25,435 | ||||||||
Income tax payable | 1,060 | ||||||||
Total liabilities | 156,903 | ||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Accumulated other comprehensive income | (2,054) | ||||||||
Additional paid-in capital | 152,684 | ||||||||
Retained earnings | 130,984 | ||||||||
Total shareholders’ equity | 264,894 | ||||||||
Total liabilities and shareholders’ equity | 421,797 | ||||||||
Restatement Adjustments | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | (52) | ||||||||
Restatement Adjustments | Parent Company | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | (51) | $ 0 | |||||||
Tax Adjustment | Restatement Adjustments | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | 0 | ||||||||
Other assets | 917 | ||||||||
Total assets | (71) | ||||||||
Liabilities | |||||||||
Accrued expenses and other liabilities | 12,170 | ||||||||
Total liabilities | 13,773 | ||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Accumulated other comprehensive income | 541 | ||||||||
Additional paid-in capital | (4,306) | ||||||||
Retained earnings | (10,079) | ||||||||
Total shareholders’ equity | (13,844) | ||||||||
Total liabilities and shareholders’ equity | (71) | ||||||||
Tax Adjustment | Restatement Adjustments | Parent Company | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | 0 | ||||||||
Equity investments in subsidiaries | 0 | ||||||||
Receivables from affiliates | (988) | ||||||||
Current tax receivable | (90) | ||||||||
Deferred tax assets | 5,911 | ||||||||
Other assets | (5,504) | ||||||||
Total assets | (671) | ||||||||
Liabilities | |||||||||
Accrued expenses and other liabilities | 12,170 | ||||||||
Income tax payable | 1,003 | ||||||||
Total liabilities | 13,173 | ||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Accumulated other comprehensive income | 541 | ||||||||
Additional paid-in capital | (4,306) | ||||||||
Retained earnings | (10,079) | ||||||||
Total shareholders’ equity | (13,844) | ||||||||
Total liabilities and shareholders’ equity | (671) | ||||||||
Other Adjustments | Restatement Adjustments | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | (52) | ||||||||
Other assets | (2,463) | ||||||||
Total assets | (2,515) | ||||||||
Liabilities | |||||||||
Accrued expenses and other liabilities | (451) | ||||||||
Total liabilities | (2,514) | ||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Accumulated other comprehensive income | 0 | ||||||||
Additional paid-in capital | 0 | ||||||||
Retained earnings | (1,130) | ||||||||
Total shareholders’ equity | (1,130) | ||||||||
Total liabilities and shareholders’ equity | (2,515) | ||||||||
Other Adjustments | Restatement Adjustments | Parent Company | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | (51) | ||||||||
Equity investments in subsidiaries | (1,130) | ||||||||
Receivables from affiliates | 0 | ||||||||
Current tax receivable | 0 | ||||||||
Deferred tax assets | 0 | ||||||||
Other assets | (2,463) | ||||||||
Total assets | (3,644) | ||||||||
Liabilities | |||||||||
Accrued expenses and other liabilities | (451) | ||||||||
Income tax payable | (2,063) | ||||||||
Total liabilities | (2,514) | ||||||||
GAIN Capital Holdings, Inc. Shareholders' equity | |||||||||
Accumulated other comprehensive income | 0 | ||||||||
Additional paid-in capital | 0 | ||||||||
Retained earnings | (1,130) | ||||||||
Total shareholders’ equity | (1,130) | ||||||||
Total liabilities and shareholders’ equity | $ (3,644) | ||||||||
|
Schedule I - Consolidated Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) - Condensed Balance Sheets (Parentheticals) (Details) - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common Stock, par value | $ 0.00001 | $ 0.00001 |
Common Stock, shares authorized | 120,000,000 | 60,000,000 |
Common Stock, shares issued | 52,072,884 | 45,582,066 |
Common stock, shares outstanding | 48,771,015 | 42,934,559 |
Treasury stock, shares | 3,301,869 | 2,647,507 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common Stock, par value | $ 0.00001 | $ 0.00001 |
Common Stock, shares authorized | 120,000,000 | 60,000,000 |
Common Stock, shares issued | 52,072,884 | 45,582,066 |
Common stock, shares outstanding | 48,771,015 | 42,934,559 |
Treasury stock, shares | 3,301,869 | 2,647,507 |
Schedule I - Consolidated Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) - Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
REVENUE: | |||||||||||||||
Interest and other | $ 8,487,000 | $ 4,904,000 | [1] | $ 1,099,000 | [1] | ||||||||||
EXPENSES: | |||||||||||||||
Interest expense | 1,049,000 | 599,000 | [1] | 156,000 | [1] | ||||||||||
Employee compensation and benefits | 106,581,000 | 99,233,000 | [1] | 74,607,000 | [1] | ||||||||||
General and administrative | 55,067,000 | 38,651,000 | [1] | 26,558,000 | [1] | ||||||||||
Interest expense on long term borrowings | 9,222,000 | 6,147,000 | [1] | 1,233,000 | [1] | ||||||||||
Gain on extinguishment of debt | 0 | 0 | [1] | 2,000,000 | [1] | ||||||||||
INCOME BEFORE INCOME TAX EXPENSE | $ 196,000 | $ 9,418,000 | $ (12,741,000) | $ 11,554,000 | $ 27,149,000 | $ 20,888,000 | $ (6,421,000) | $ 3,835,000 | 8,427,000 | 45,450,000 | [1] | 45,490,000 | [1] | ||
Income tax (benefit)/expense | (3,512,000) | 19,140,000 | [1] | 17,383,000 | [1] | ||||||||||
Undistributed earnings of subsidiaries | 0 | 0 | 0 | ||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 15,510,000 | 2,201,000 | (12,897,000) | 5,465,000 | 22,520,000 | 9,563,000 | (7,747,000) | 539,000 | 10,279,000 | 24,877,000 | [1] | 28,107,000 | [1] | ||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | (4,352,000) | (4,089,000) | [1] | 1,327,000 | [1] | ||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 5,927,000 | 20,788,000 | [1] | 29,434,000 | [1] | ||||||||||
Parent Company | |||||||||||||||
REVENUE: | |||||||||||||||
Dividends from subsidiaries | 38,642,000 | 0 | 37,099,000 | ||||||||||||
Interest and other | 178,000 | 90,000 | 181,000 | ||||||||||||
Net revenue | 38,820,000 | 90,000 | 37,280,000 | ||||||||||||
EXPENSES: | |||||||||||||||
Interest expense | 63,000 | 64,000 | 63,000 | ||||||||||||
Employee compensation and benefits | 10,096,000 | 11,578,000 | 187,000 | ||||||||||||
General and administrative | 6,775,000 | 8,208,000 | 6,075,000 | ||||||||||||
Total operating expense | 16,934,000 | 19,850,000 | 6,325,000 | ||||||||||||
Interest expense on long term borrowings | 9,222,000 | 6,147,000 | 1,233,000 | ||||||||||||
Gain on extinguishment of debt | 0 | 0 | 2,000,000 | ||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 12,664,000 | (25,907,000) | 31,722,000 | ||||||||||||
Income tax (benefit)/expense | (10,875,000) | (2,584,000) | 10,325,000 | ||||||||||||
NET INCOME/(LOSS) BEFORE UNDISTRUBTED EARNINGS OF SUBSIDIARES | 23,539,000 | (23,323,000) | 21,397,000 | ||||||||||||
Undistributed earnings of subsidiaries | (13,260,000) | 48,200,000 | 6,710,000 | ||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 10,279,000 | 24,877,000 | 28,107,000 | ||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | (4,352,000) | (4,089,000) | 1,327,000 | ||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 5,927,000 | 20,788,000 | 29,434,000 | ||||||||||||
Scenario, Previously Reported | |||||||||||||||
EXPENSES: | |||||||||||||||
Employee compensation and benefits | 99,485,000 | 74,185,000 | |||||||||||||
General and administrative | 38,509,000 | 26,813,000 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 9,215,000 | (12,538,000) | 11,498,000 | 26,456,000 | 21,470,000 | (7,013,000) | 5,140,000 | 46,052,000 | 45,105,000 | ||||||
Income tax (benefit)/expense | 12,993,000 | 13,794,000 | |||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 8,304,000 | (8,830,000) | 8,336,000 | 17,612,000 | 15,345,000 | (5,156,000) | 3,826,000 | 31,626,000 | 31,311,000 | ||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | (4,630,000) | ||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 26,996,000 | 32,638,000 | |||||||||||||
Scenario, Previously Reported | Parent Company | |||||||||||||||
EXPENSES: | |||||||||||||||
Interest expense | 1,199,000 | ||||||||||||||
Total operating expense | 7,461,000 | ||||||||||||||
Interest expense on long term borrowings | 5,893,000 | 0 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | (25,653,000) | 31,819,000 | |||||||||||||
Income tax (benefit)/expense | (8,784,000) | 6,736,000 | |||||||||||||
NET INCOME/(LOSS) BEFORE UNDISTRUBTED EARNINGS OF SUBSIDIARES | (16,869,000) | 25,083,000 | |||||||||||||
Undistributed earnings of subsidiaries | 48,495,000 | 6,228,000 | |||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 31,626,000 | 31,311,000 | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | (4,630,000) | ||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 26,996,000 | 32,638,000 | |||||||||||||
Tax Adjustment | Restatement Adjustments | |||||||||||||||
EXPENSES: | |||||||||||||||
Employee compensation and benefits | 0 | 0 | |||||||||||||
General and administrative | 0 | 0 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Income tax (benefit)/expense | 6,200,000 | 3,589,000 | |||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | (6,306,000) | (3,864,000) | (2,927,000) | 4,162,000 | (5,199,000) | (3,183,000) | (1,980,000) | (6,200,000) | (3,589,000) | ||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | 541,000 | ||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | (5,659,000) | (3,589,000) | |||||||||||||
Tax Adjustment | Restatement Adjustments | Parent Company | |||||||||||||||
EXPENSES: | |||||||||||||||
Total operating expense | 0 | ||||||||||||||
Interest expense on long term borrowings | 0 | 0 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 0 | 0 | |||||||||||||
Income tax (benefit)/expense | 6,200,000 | 3,589,000 | |||||||||||||
NET INCOME/(LOSS) BEFORE UNDISTRUBTED EARNINGS OF SUBSIDIARES | (6,200,000) | (3,589,000) | |||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | (6,200,000) | (3,589,000) | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | 541,000 | ||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | (5,659,000) | (3,589,000) | |||||||||||||
Other Adjustments | Restatement Adjustments | |||||||||||||||
EXPENSES: | |||||||||||||||
Employee compensation and benefits | (252,000) | 422,000 | |||||||||||||
General and administrative | 142,000 | (255,000) | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 203,000 | (203,000) | 56,000 | 693,000 | (582,000) | 592,000 | (1,305,000) | (602,000) | 385,000 | ||||||
Income tax (benefit)/expense | (53,000) | 0 | |||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ 203,000 | $ (203,000) | $ 56,000 | $ 746,000 | $ (583,000) | $ 592,000 | $ (1,305,000) | $ (549,000) | 385,000 | ||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | |||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ (549,000) | 385,000 | |||||||||||||
Other Adjustments | Restatement Adjustments | Parent Company | |||||||||||||||
EXPENSES: | |||||||||||||||
Interest expense | (1,136,000) | ||||||||||||||
Total operating expense | (1,136,000) | ||||||||||||||
Interest expense on long term borrowings | 254,000 | 1,233,000 | |||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | (254,000) | (97,000) | |||||||||||||
Income tax (benefit)/expense | 0 | 0 | |||||||||||||
NET INCOME/(LOSS) BEFORE UNDISTRUBTED EARNINGS OF SUBSIDIARES | (254,000) | (97,000) | |||||||||||||
Undistributed earnings of subsidiaries | (295,000) | 482,000 | |||||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | (549,000) | 385,000 | |||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | 0 | ||||||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ (549,000) | $ 385,000 | |||||||||||||
|
Schedule I - Consolidated Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | $ 15,827 | $ 2,784 | $ (12,481) | $ 5,809 | $ 22,966 | $ 10,348 | $ (7,583) | $ 577 | $ 11,939 | $ 26,310 | [1] | $ 28,107 | [1] | |||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | ||||||||||||||||
Gain on extinguishment of debt | 0 | 0 | [1] | (2,000) | [1] | |||||||||||
Loss / (gain) on foreign currency exchange rates | 2,432 | (1,618) | [1] | 3,641 | [1] | |||||||||||
Deferred tax (benefit)/expense | (12,355) | 5,108 | [1] | (5,431) | [1] | |||||||||||
Amortization of deferred financing costs | 354 | 354 | [1] | 0 | [1] | |||||||||||
Stock compensation expense | 2,975 | |||||||||||||||
Convertible senior note discount amortization | 3,624 | 2,150 | [1] | 175 | [1] | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid assets | (1,445) | 2,730 | [1] | 318 | [1] | |||||||||||
Current tax receivable | (6,229) | (8,495) | [1] | (1,075) | [1] | |||||||||||
Income tax payable | 611 | (9,812) | [1] | 4,414 | [1] | |||||||||||
Accrued compensation and benefits | (7,454) | 4,497 | [1] | 6,375 | [1] | |||||||||||
Accrued expenses and other liabilities | (18,748) | (2,422) | [1] | 7,867 | [1] | |||||||||||
Cash provided by / (used for) operating activities | 77,213 | 136,788 | [1] | (18,887) | [1] | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Cash used for investing activities | (16,081) | (35,463) | [1] | (9,807) | [1] | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Proceeds from issuance of convertible senior note, net | 0 | 0 | [1] | 77,900 | [1] | |||||||||||
Contractual payments for acquisitions | (13,893) | 0 | [1] | (2,419) | [1] | |||||||||||
Proceeds from exercise of stock options | 2,386 | 2,087 | [1] | 2,539 | [1] | |||||||||||
Proceeds from employee stock purchase plan | 789 | 740 | [1] | 302 | [1] | |||||||||||
Purchase of treasury stock | (5,088) | (1,251) | [1] | (7,189) | [1] | |||||||||||
Tax benefit from employee stock option exercises | 1,140 | 1,221 | [1] | 1,026 | [1] | |||||||||||
Dividend payment | (9,530) | (8,139) | [1] | (7,326) | [1] | |||||||||||
Cash (used for) / provided by financing activities | (25,840) | (5,938) | [1] | 33,633 | [1] | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,755) | 4,093 | [1] | (1,888) | [1] | |||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | 32,537 | 99,480 | [1] | 3,051 | [1] | |||||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | [1] | 139,351 | 39,871 | 139,351 | 39,871 | 36,820 | ||||||||||
CASH AND CASH EQUIVALENTS—End of year | 171,888 | 139,351 | [1] | 171,888 | 139,351 | [1] | 39,871 | [1] | ||||||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||||||||
Interest | (5,065) | (3,373) | [1] | (655) | [1] | |||||||||||
Taxes | (9,861) | (13,151) | [1] | (8,376) | [1] | |||||||||||
Stock issued | 45,100 | 6,493 | [1] | 34,771 | [1] | |||||||||||
Parent Company | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | 10,279 | 24,877 | 28,107 | |||||||||||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | ||||||||||||||||
Equity in income of subsidiaries | 13,260 | (48,200) | (6,710) | |||||||||||||
Gain on extinguishment of debt | 0 | 0 | (2,000) | |||||||||||||
Loss / (gain) on foreign currency exchange rates | (66) | 0 | (274) | |||||||||||||
Deferred tax (benefit)/expense | (11,264) | 4,867 | 1,448 | |||||||||||||
Amortization of deferred financing costs | 354 | 354 | 0 | |||||||||||||
Stock compensation expense | 3,680 | 3,452 | 2,975 | |||||||||||||
Convertible senior note discount amortization | 3,624 | 2,150 | 175 | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Receivables from affiliates | 37,548 | (33,827) | 19,278 | |||||||||||||
Prepaid assets | (3) | 127 | (127) | |||||||||||||
Current tax receivable | 7,240 | (10,123) | 291 | |||||||||||||
Current tax payable | (9,069) | (771) | (9,742) | |||||||||||||
Accrued compensation and benefits | 160 | 51 | 0 | |||||||||||||
Accrued expenses and other liabilities | (4,876) | 10,426 | 1,478 | |||||||||||||
Payable to affiliates | (36,549) | 61,990 | 0 | |||||||||||||
Cash provided by / (used for) operating activities | 14,318 | 15,373 | 34,899 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Investment and funding of subsidiaries | 7,081 | (51,107) | (28,648) | |||||||||||||
Purchase of short term investments | 0 | (92) | 0 | |||||||||||||
Cash used for investing activities | 7,081 | (51,199) | (28,648) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Proceeds from issuance of convertible senior note, net | 0 | 0 | 77,900 | |||||||||||||
Principal payment on notes payable | 0 | 0 | (31,200) | |||||||||||||
Contractual payments for acquisitions | (11,829) | 0 | 0 | |||||||||||||
Proceeds from exercise of stock options | 2,386 | 2,087 | 2,539 | |||||||||||||
Proceeds from employee stock purchase plan | 789 | 740 | 302 | |||||||||||||
Purchase of treasury stock | (5,088) | (1,251) | (7,189) | |||||||||||||
Tax benefit from employee stock option exercises | 1,140 | 1,221 | 1,026 | |||||||||||||
Dividend payment | (9,530) | (8,139) | (7,326) | |||||||||||||
Cash (used for) / provided by financing activities | (22,132) | (5,342) | 36,052 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (733) | (41,168) | 42,303 | |||||||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | 1,184 | 42,352 | 1,184 | 42,352 | 49 | |||||||||||
CASH AND CASH EQUIVALENTS—End of year | $ 451 | 1,184 | 451 | 1,184 | 42,352 | |||||||||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||||||||
Interest | (4,538) | (3,373) | (556) | |||||||||||||
Taxes | 733 | (3,711) | (5,562) | |||||||||||||
Seller provided financing | 0 | 0 | 33,200 | |||||||||||||
Stock issued | 45,100 | 6,493 | 34,771 | |||||||||||||
Scenario, Previously Reported | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | $ 8,887 | $ (8,414) | 8,680 | 18,058 | $ 16,130 | $ (4,992) | 3,863 | 33,059 | 31,311 | |||||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | ||||||||||||||||
Deferred tax (benefit)/expense | 2,536 | 39 | ||||||||||||||
Stock compensation expense | 2,896 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid assets | 2,729 | 318 | ||||||||||||||
Current tax receivable | (11,536) | (383) | ||||||||||||||
Income tax payable | (2,832) | 2,131 | ||||||||||||||
Accrued compensation and benefits | 3,671 | 7,118 | ||||||||||||||
Accrued expenses and other liabilities | (8,565) | 973 | ||||||||||||||
Cash provided by / (used for) operating activities | 138,173 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,760 | (2,446) | ||||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | 99,532 | |||||||||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | 139,403 | 139,403 | ||||||||||||||
CASH AND CASH EQUIVALENTS—End of year | 139,403 | 139,403 | ||||||||||||||
Scenario, Previously Reported | Parent Company | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | 31,626 | 31,311 | ||||||||||||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | ||||||||||||||||
Equity in income of subsidiaries | (48,495) | 6,228 | ||||||||||||||
Deferred tax (benefit)/expense | 2,508 | (1,448) | ||||||||||||||
Amortization of deferred financing costs | 30 | |||||||||||||||
Stock compensation expense | 2,896 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Receivables from affiliates | (18,533) | 17,681 | ||||||||||||||
Prepaid assets | (127) | |||||||||||||||
Current tax receivable | (5,188) | (5,354) | ||||||||||||||
Current tax payable | (1,591) | 2,055 | ||||||||||||||
Accrued compensation and benefits | (21) | |||||||||||||||
Accrued expenses and other liabilities | 1,762 | (3,486) | ||||||||||||||
Payable to affiliates | 47,522 | |||||||||||||||
Cash provided by / (used for) operating activities | 15,673 | 47,687 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Investment and funding of subsidiaries | (46,726) | (42,764) | ||||||||||||||
Cash used for investing activities | (46,818) | (42,764) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (4,630) | 1,328 | ||||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (41,117) | |||||||||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | 1,235 | 42,352 | 1,235 | 42,352 | ||||||||||||
CASH AND CASH EQUIVALENTS—End of year | 1,235 | 1,235 | 42,352 | |||||||||||||
Restatement Adjustments | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | (6,749) | (3,204) | ||||||||||||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | ||||||||||||||||
Deferred tax (benefit)/expense | 2,572 | (5,470) | ||||||||||||||
Stock compensation expense | 79 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid assets | 1 | 0 | ||||||||||||||
Current tax receivable | 3,041 | (692) | ||||||||||||||
Income tax payable | (6,980) | 2,283 | ||||||||||||||
Accrued compensation and benefits | 826 | (743) | ||||||||||||||
Accrued expenses and other liabilities | 6,143 | 6,894 | ||||||||||||||
Cash provided by / (used for) operating activities | (1,385) | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,333 | 558 | ||||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (52) | |||||||||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | (52) | (52) | ||||||||||||||
CASH AND CASH EQUIVALENTS—End of year | (52) | (52) | ||||||||||||||
Restatement Adjustments | Parent Company | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | (6,749) | (3,204) | ||||||||||||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | ||||||||||||||||
Equity in income of subsidiaries | 295 | (12,938) | ||||||||||||||
Deferred tax (benefit)/expense | 2,359 | 2,896 | ||||||||||||||
Amortization of deferred financing costs | (30) | |||||||||||||||
Stock compensation expense | 79 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Receivables from affiliates | (15,294) | 1,597 | ||||||||||||||
Prepaid assets | 0 | |||||||||||||||
Current tax receivable | (4,935) | 5,645 | ||||||||||||||
Current tax payable | 820 | (11,797) | ||||||||||||||
Accrued compensation and benefits | 72 | |||||||||||||||
Accrued expenses and other liabilities | 8,664 | 4,964 | ||||||||||||||
Payable to affiliates | 14,468 | |||||||||||||||
Cash provided by / (used for) operating activities | (300) | (12,788) | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Investment and funding of subsidiaries | (4,381) | 14,116 | ||||||||||||||
Cash used for investing activities | (4,381) | 14,116 | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 4,630 | (1,328) | ||||||||||||||
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (51) | |||||||||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | $ (51) | $ 0 | $ (51) | 0 | ||||||||||||
CASH AND CASH EQUIVALENTS—End of year | $ (51) | $ (51) | $ 0 | |||||||||||||
|
Schedule I - Consolidated Financial Information of GAIN Capital Holdings, Inc. (Parent Company Only) - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends from subsidiaries | $ 38.6 | $ 0.0 | $ 37.1 |
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