Income as reported was $4.4 million compared with losses of $10.1 million in 2000 and $10.4 million in 1999. Special charges include $15.2 million ($9 million after tax) for a writedown of the value of electronic trading software and $9.9 million ($5.8 million after tax) of charges for severance and early retirement. During 2001, eighty-four employees were terminated or took advantage of the early retirement option.
CBOT® Chairman Nickolas J. Neubauer said, "This report reflects the turnaround in the CBOT®'s financial performance that I have been talking about for the past year. Bringing in a high quality CEO like David Vitale, implementing a new business discipline, and running our exchange more like a business has produced these results. We have kept our expenses under control, our finances are sound, and we expect this process will continue."
CBOT® President and CEO David J. Vitale added, "Among our priorities in 2001 was to improve the exchange's financial position and strengthen our balance sheet, and we delivered. This success is attributable to the new business processes, a growth in trading volume, and the desire of our employees to make the CBOT® a better place. Our unrestricted cash balance will allow the CBOT® to implement a capital investment plan this year that we expect will continue the momentum created by our successful electronic order routing initiative for the open auction market, as well as update our overall technology needs."
Total trading volume in 2001 was 260.3 million contracts, an 11% increase from 233.5 million contracts in 2000. Due to the growth in volume, increased trading fees and changes in transaction mix, revenues from exchange fees increased 27%, or $27 million, from $102 million in 2000 to $129 million in 2001. Exchange fee revenue from open auction trading was $88.1 million for the year ended December 31, 2001, compared with $83.8 million in the prior year period. Screen-based trading resulted in revenue of $40.9 million, up from $18.2 million in 2000. The increase in screen-based trading fees accounted for 84% of the total increase in exchange fee revenue in 2001.
Market data revenues were $66.5 million in 2001, an increase of 9% from $61.1 million in 2000. Building revenues from leased office space were $24.8 million for 2001, slightly more than the $24.5 million for the same period in 2000. Service revenues decreased in 2001 to $12.6 million from $17.8 million a year earlier, primarily the result of the absence in the current year of $3.7 million of revenue related to the former electronic platform, Project A®. Membership dues totaled $9 million in 2001, compared with $5.5 million in 2000.
Operating expenses excluding special charges totaled $210.4 million for the year ended December 31, 2001, compared with $214.1 million for the same period in 2000, a decrease of $3.7 million, or 2%. Salaries and expenses, accounting for one quarter of operating expenses, were $58.5 million in 2001, a 4% increase from $56.4 million for the same period in 2000.
Depreciation and amortization charges increased 9% from $40 million in 2000 to $43.5 million in 2001. The increase was related primarily to additional depreciation from computer equipment and software for the electronic platform that was capitalized in 2000 and 2001, offset to a degree by the elimination of some depreciable assets via expiration or retirement. General and administrative expenses increased to $53.7 million for the year ended December 31, 2001, a 3% increase from $52.3 million in the prior year.
Building operating costs increased slightly to $23 million from $22.6 million in 2000. Professional services expenses were $23 million, a decrease of 29%, or $9.5 million, from $32.5 million for the prior year. Interest expense of $6.7 million was relatively unchanged from 2000.
On December 31, 2001, total assets were $359.1 million, a decrease of $14.7 million from $373.8 million on December 31, 2000. Current assets increased $28.5 million from $54 million at the end of 2000 to $82.5 million at the end of 2001, primarily due to an increase in cash and cash equivalents of $25 million.
For more information about the CBOT®'s markets and products, log on to the exchange web site at www.cbot.com.
