(Mark One) | |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Or | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Delaware | 46-2286804 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
(Address of principal executive offices) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Common Stock, $0.01 par value per share | ICE | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |
Emerging growth company | ☐ |
PART I. | Financial Statements | |
Item 1. | ||
Consolidated Balance Sheets as of | ||
Consolidated Statements of Income for the nine and three months ended | ||
Consolidated Statements of Comprehensive Income for the nine and three months ended | ||
Consolidated Statements of Changes in Equity and Redeemable Non-Controlling Interest for the nine and three months ended | ||
Consolidated Statements of Cash Flows for the | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | Other Information | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
As of | As of | As of | As of | |||||||||||
March 31, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||
Assets: | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 653 | $ | 724 | $ | 655 | $ | 724 | ||||||
Short-term restricted cash and cash equivalents | 868 | 818 | 945 | 818 | ||||||||||
Customer accounts receivable, net of allowance for doubtful accounts of $7 at March 31, 2019 and December 31, 2018 | 1,181 | 953 | ||||||||||||
Customer accounts receivable, net of allowance for doubtful accounts of $8 and $7 at September 30, 2019 and December 31, 2018, respectively | 1,056 | 953 | ||||||||||||
Margin deposits, guaranty funds and delivery contracts receivable | 64,564 | 63,955 | 65,988 | 63,955 | ||||||||||
Prepaid expenses and other current assets | 219 | 242 | 227 | 242 | ||||||||||
Total current assets | 67,485 | 66,692 | 68,871 | 66,692 | ||||||||||
Property and equipment, net | 1,538 | 1,241 | 1,505 | 1,241 | ||||||||||
Other non-current assets: | ||||||||||||||
Goodwill | 13,098 | 13,085 | 13,310 | 13,085 | ||||||||||
Other intangible assets, net | 10,406 | 10,462 | 10,330 | 10,462 | ||||||||||
Long-term restricted cash and cash equivalents | 370 | 330 | 389 | 330 | ||||||||||
Other non-current assets | 960 | 981 | 934 | 981 | ||||||||||
Total other non-current assets | 24,834 | 24,858 | 24,963 | 24,858 | ||||||||||
Total assets | $ | 93,857 | $ | 92,791 | $ | 95,339 | $ | 92,791 | ||||||
Liabilities and Equity: | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 509 | $ | 521 | $ | 543 | $ | 521 | ||||||
Section 31 fees payable | 70 | 105 | 34 | 105 | ||||||||||
Accrued salaries and benefits | 125 | 280 | 228 | 280 | ||||||||||
Deferred revenue | 479 | 135 | 247 | 135 | ||||||||||
Short-term debt | 1,005 | 951 | 1,329 | 951 | ||||||||||
Margin deposits, guaranty funds and delivery contracts payable | 64,564 | 63,955 | 65,988 | 63,955 | ||||||||||
Other current liabilities | 283 | 161 | 165 | 161 | ||||||||||
Total current liabilities | 67,035 | 66,108 | 68,534 | 66,108 | ||||||||||
Non-current liabilities: | ||||||||||||||
Non-current deferred tax liability, net | 2,308 | 2,337 | 2,281 | 2,337 | ||||||||||
Long-term debt | 6,492 | 6,490 | 6,496 | 6,490 | ||||||||||
Accrued employee benefits | 203 | 204 | 197 | 204 | ||||||||||
Operating lease liability-non-current | 306 | — | ||||||||||||
Non-current operating lease liability | 287 | — | ||||||||||||
Other non-current liabilities | 312 | 350 | 287 | 350 | ||||||||||
Total non-current liabilities | 9,621 | 9,381 | 9,548 | 9,381 | ||||||||||
Total liabilities | 76,656 | 75,489 | 78,082 | 75,489 | ||||||||||
Commitments and contingencies | ||||||||||||||
Redeemable non-controlling interest in consolidated subsidiaries | 71 | 71 | 72 | 71 | ||||||||||
Equity: | ||||||||||||||
Intercontinental Exchange, Inc. stockholders’ equity: | ||||||||||||||
Preferred stock, $0.01 par value; 100 shares authorized; no shares issued or outstanding at March 31, 2019 and December 31, 2018 | — | — | ||||||||||||
Preferred stock, $0.01 par value; 100 shares authorized; no shares issued or outstanding at September 30, 2019 and December 31, 2018 | — | — |
Common stock, $0.01 par value; 1,500 shares authorized; 606 and 604 shares issued at March 31, 2019 and December 31, 2018, respectively, and 565 and 569 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 6 | 6 | ||||||||||||
Treasury stock, at cost; 41 and 35 shares at March 31, 2019 and December 31, 2018, respectively | (2,851 | ) | (2,354 | ) | ||||||||||
Common stock, $0.01 par value; 1,500 shares authorized; 607 and 604 shares issued at September 30, 2019 and December 31, 2018, respectively, and 558 and 569 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 6 | 6 | ||||||||||||
Treasury stock, at cost; 49 and 35 shares at September 30, 2019 and December 31, 2018, respectively | (3,538 | ) | (2,354 | ) | ||||||||||
Additional paid-in capital | 11,597 | 11,547 | 11,706 | 11,547 | ||||||||||
Retained earnings | 8,644 | 8,317 | 9,335 | 8,317 | ||||||||||
Accumulated other comprehensive loss | (290 | ) | (315 | ) | (348 | ) | (315 | ) | ||||||
Total Intercontinental Exchange, Inc. stockholders’ equity | 17,106 | 17,201 | 17,161 | 17,201 | ||||||||||
Non-controlling interest in consolidated subsidiaries | 24 | 30 | 24 | 30 | ||||||||||
Total equity | 17,130 | 17,231 | 17,185 | 17,231 | ||||||||||
Total liabilities and equity | $ | 93,857 | $ | 92,791 | $ | 95,339 | $ | 92,791 |
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Transaction and clearing, net | $ | 862 | $ | 898 | $ | 2,698 | $ | 2,522 | $ | 929 | $ | 760 | |||||||||||
Data services | 546 | 520 | 1,652 | 1,576 | 553 | 530 | |||||||||||||||||
Listings | 111 | 109 | 336 | 332 | 114 | 112 | |||||||||||||||||
Other revenues | 64 | 53 | 194 | 169 | 67 | 61 | |||||||||||||||||
Total revenues | 1,583 | 1,580 | 4,880 | 4,599 | 1,663 | 1,463 | |||||||||||||||||
Transaction-based expenses: | |||||||||||||||||||||||
Section 31 fees | 69 | 121 | 274 | 272 | 105 | 61 | |||||||||||||||||
Cash liquidity payments, routing and clearing | 244 | 234 | 702 | 656 | 222 | 202 | |||||||||||||||||
Total revenues, less transaction-based expenses | 1,270 | 1,225 | 3,904 | 3,671 | 1,336 | 1,200 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Compensation and benefits | 248 | 240 | 768 | 732 | 261 | 251 | |||||||||||||||||
Professional services | 33 | 30 | 97 | 91 | 35 | 32 | |||||||||||||||||
Acquisition-related transaction and integration costs | — | 12 | 1 | 33 | — | 6 | |||||||||||||||||
Technology and communication | 107 | 105 | 346 | 320 | 126 | 107 | |||||||||||||||||
Rent and occupancy | 17 | 17 | 52 | 50 | 17 | 17 | |||||||||||||||||
Selling, general and administrative | 42 | 33 | 116 | 109 | 33 | 37 | |||||||||||||||||
Depreciation and amortization | 158 | 138 | 473 | 429 | 158 | 148 | |||||||||||||||||
Total operating expenses | 605 | 575 | 1,853 | 1,764 | 630 | 598 | |||||||||||||||||
Operating income | 665 | 650 | 2,051 | 1,907 | 706 | 602 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 9 | 4 | 27 | 15 | 8 | 6 | |||||||||||||||||
Interest expense | (71 | ) | (52 | ) | (214 | ) | (173 | ) | (72 | ) | (66 | ) | |||||||||||
Other income, net | 23 | 15 | 30 | 33 | (2 | ) | 12 | ||||||||||||||||
Other income (expense), net | (39 | ) | (33 | ) | (157 | ) | (125 | ) | (66 | ) | (48 | ) | |||||||||||
Income before income tax expense | 626 | 617 | 1,894 | 1,782 | 640 | 554 | |||||||||||||||||
Income tax expense | 134 | 143 | 387 | 381 | 103 | 89 | |||||||||||||||||
Net income | $ | 492 | $ | 474 | $ | 1,507 | $ | 1,401 | $ | 537 | $ | 465 | |||||||||||
Net income attributable to non-controlling interest | (8 | ) | (10 | ) | (22 | ) | (24 | ) | (8 | ) | (7 | ) | |||||||||||
Net income attributable to Intercontinental Exchange, Inc. | $ | 484 | $ | 464 | $ | 1,485 | $ | 1,377 | $ | 529 | $ | 458 | |||||||||||
Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders: | |||||||||||||||||||||||
Basic | $ | 0.85 | $ | 0.80 | $ | 2.64 | $ | 2.39 | $ | 0.95 | $ | 0.80 | |||||||||||
Diluted | $ | 0.85 | $ | 0.79 | $ | 2.62 | $ | 2.37 | $ | 0.94 | $ | 0.79 | |||||||||||
Weighted average common shares outstanding: | �� | ||||||||||||||||||||||
Basic | 568 | 582 | 563 | 577 | 559 | 572 | |||||||||||||||||
Diluted | 570 | 586 | 566 | 581 | 563 | 576 |
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Net income | $ | 492 | $ | 474 | $ | 1,507 | $ | 1,401 | $ | 537 | $ | 465 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax benefit (expense) of $0 and ($1) for the three months ended March 31, 2019 and 2018, respectively | 26 | 33 | |||||||||||||||||||||
Foreign currency translation adjustments, net of tax benefit of $1 for both the nine months ended September 30, 2019 and 2018 and $1 for the three months ended September 30, 2019 | (32 | ) | (51 | ) | (39 | ) | (9 | ) | |||||||||||||||
Change in equity method investment | (1 | ) | — | (1 | ) | — | — | — | |||||||||||||||
Other comprehensive income | 25 | 33 | |||||||||||||||||||||
Other comprehensive income (loss) | (33 | ) | (51 | ) | (39 | ) | (9 | ) | |||||||||||||||
Comprehensive income | $ | 517 | $ | 507 | $ | 1,474 | $ | 1,350 | $ | 498 | $ | 456 | |||||||||||
Comprehensive income attributable to non-controlling interest | (8 | ) | (10 | ) | (22 | ) | (24 | ) | (8 | ) | (7 | ) | |||||||||||
Comprehensive income attributable to Intercontinental Exchange, Inc. | $ | 509 | $ | 497 | $ | 1,452 | $ | 1,326 | $ | 490 | $ | 449 |
Intercontinental Exchange, Inc. Stockholders’ Equity | Non- Controlling Interest in Consolidated Subsidiaries | Total Equity | Redeemable Non-Controlling Interest | Intercontinental Exchange, Inc. Stockholders’ Equity | Non- Controlling Interest in Consolidated Subsidiaries | Total Equity | Redeemable Non-Controlling Interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, as of December 31, 2018 | 604 | 6 | (35 | ) | (2,354 | ) | 11,547 | 8,317 | (315 | ) | 30 | 17,231 | 71 | 604 | $ | 6 | (35 | ) | $ | (2,354 | ) | $ | 11,547 | $ | 8,317 | $ | (315 | ) | $ | 30 | $ | 17,231 | $ | 71 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 25 | — | 25 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (33 | ) | — | (33 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | 5 | — | — | — | 5 | — | 1 | — | — | — | 22 | — | — | — | 22 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | (6 | ) | (440 | ) | — | — | — | — | (440 | ) | — | — | — | (14 | ) | (1,120 | ) | — | — | — | — | (1,120 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Payments relating to treasury shares | — | — | — | (57 | ) | — | — | — | — | (57 | ) | — | — | — | — | (64 | ) | — | — | — | — | (64 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 33 | — | — | — | 33 | — | — | — | — | — | 109 | — | — | — | 109 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance under the employee stock purchase plan | — | — | — | — | 12 | — | — | — | 12 | — | — | — | — | — | 28 | — | — | — | 28 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | 2 | — | — | — | — | — | — | — | — | — | 2 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions of profits | — | — | — | — | — | — | — | (14 | ) | (14 | ) | — | — | — | — | — | — | — | — | (29 | ) | (29 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to stockholders | — | — | — | — | — | (157 | ) | — | — | (157 | ) | — | — | — | — | — | ��� | (467 | ) | — | — | (467 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | (8 | ) | — | 8 | — | — | — | — | — | — | — | (22 | ) | — | 23 | 1 | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 492 | — | — | 492 | — | — | — | — | — | — | 1,507 | — | — | 1,507 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, as of March 31, 2019 | 606 | $ | 6 | (41 | ) | $ | (2,851 | ) | $ | 11,597 | $ | 8,644 | $ | (290 | ) | $ | 24 | $ | 17,130 | $ | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, as of September 30, 2019 | 607 | $ | 6 | (49 | ) | $ | (3,538 | ) | $ | 11,706 | $ | 9,335 | $ | (348 | ) | $ | 24 | $ | 17,185 | $ | 72 |
Intercontinental Exchange, Inc. Stockholders’ Equity | Non- Controlling Interest in Consolidated Subsidiaries | Total Equity | Redeemable Non-Controlling Interest | Intercontinental Exchange, Inc. Stockholders’ Equity | Non- Controlling Interest in Consolidated Subsidiaries | Total Equity | Redeemable Non-Controlling Interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, as of December 31, 2017 | 600 | 6 | (17 | ) | (1,076 | ) | 11,392 | 6,858 | (223 | ) | 28 | 16,985 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 33 | — | 33 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, as of June 30, 2019 | 606 | $ | 6 | (45 | ) | $ | (3,194 | ) | $ | 11,651 | $ | 8,961 | $ | (309 | ) | $ | 31 | $ | 17,146 | $ | 72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (39 | ) | — | (39 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | 4 | — | — | — | 4 | — | 1 | — | — | — | 5 | — | — | — | 5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | (4 | ) | (300 | ) | — | — | — | — | (300 | ) | — | — | — | (4 | ) | (340 | ) | — | — | — | — | (340 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Payments relating to treasury shares | — | — | (1 | ) | (72 | ) | — | — | — | — | (72 | ) | — | — | — | — | (4 | ) | — | — | — | — | (4 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 32 | — | — | — | 32 | — | — | — | — | — | 36 | — | — | — | 36 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | 3 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance under the employee stock purchase plan | — | — | — | — | 14 | — | — | — | 14 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions of profits | — | — | — | — | — | — | — | (10 | ) | (10 | ) | — | — | — | — | — | — | — | — | (15 | ) | (15 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to stockholders | — | — | — | — | — | (140 | ) | — | — | (140 | ) | — | — | — | — | — | — | (155 | ) | — | — | (155 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | (10 | ) | — | 10 | — | — | — | — | — | — | — | (8 | ) | — | 8 | — | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 474 | — | — | 474 | — | — | — | — | — | — | 537 | — | — | 537 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, as of March 31, 2018 | 603 | $ | 6 | (22 | ) | $ | (1,448 | ) | $ | 11,428 | $ | 7,182 | $ | (190 | ) | $ | 28 | $ | 17,006 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, as of September 30, 2019 | 607 | $ | 6 | (49 | ) | $ | (3,538 | ) | $ | 11,706 | $ | 9,335 | $ | (348 | ) | $ | 24 | $ | 17,185 | $ | 72 |
Intercontinental Exchange, Inc. Stockholders’ Equity | Non- Controlling Interest in Consolidated Subsidiaries | Total Equity | Redeemable Non-Controlling Interest | ||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||||||||||||||||||||||
Balance, as of December 31, 2017 | 600 | $ | 6 | (17 | ) | $ | (1,076 | ) | $ | 11,392 | $ | 6,858 | $ | (223 | ) | $ | 28 | $ | 16,985 | $ | — | ||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (51 | ) | — | (51 | ) | — | |||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | 19 | — | — | — | 19 | — | |||||||||||||||||||||||||||
Repurchases of common stock | — | — | (14 | ) | (1,059 | ) | — | — | — | — | (1,059 | ) | — | ||||||||||||||||||||||||
Payments relating to treasury shares | — | — | (1 | ) | (78 | ) | — | — | — | — | (78 | ) | — | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 107 | — | — | — | 107 | — | |||||||||||||||||||||||||||
Issuance of restricted stock | 3 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Acquisition of non-controlling interest | — | — | — | — | (23 | ) | — | — | (2 | ) | (25 | ) | — | ||||||||||||||||||||||||
Distributions of profits | — | — | — | — | — | — | — | (28 | ) | (28 | ) | — | |||||||||||||||||||||||||
Dividends paid to stockholders | — | — | — | — | — | (417 | ) | — | — | (417 | ) | — | |||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | (24 | ) | — | 24 | — | — | ||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,401 | — | — | 1,401 | — | |||||||||||||||||||||||||||
Balance, as of September 30, 2018 | 603 | $ | 6 | (32 | ) | $ | (2,213 | ) | $ | 11,495 | $ | 7,818 | $ | (274 | ) | $ | 22 | $ | 16,854 | $ | — |
Intercontinental Exchange, Inc. Stockholders’ Equity | Non- Controlling Interest in Consolidated Subsidiaries | Total Equity | Redeemable Non-Controlling Interest | ||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||||||||||||||||||||||
Balance, as of June 30, 2018 | 603 | $ | 6 | (29 | ) | $ | (1,911 | ) | $ | 11,477 | $ | 7,498 | $ | (265 | ) | $ | 35 | $ | 16,840 | $ | — | ||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (9 | ) | — | (9 | ) | — | |||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | 7 | — | — | — | 7 | — | |||||||||||||||||||||||||||
Repurchases of common stock | — | — | (4 | ) | (300 | ) | — | — | — | — | (300 | ) | — | ||||||||||||||||||||||||
Payments relating to treasury shares | — | — | 1 | (2 | ) | — | — | — | — | (2 | ) | — | |||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 34 | — | — | — | 34 | — | |||||||||||||||||||||||||||
Acquisition of non-controlling interest | — | — | — | — | (23 | ) | — | — | (2 | ) | (25 | ) | — | ||||||||||||||||||||||||
Distributions of profits | — | — | — | — | — | — | — | (18 | ) | (18 | ) | — | |||||||||||||||||||||||||
Dividends paid to stockholders | — | — | — | — | — | (138 | ) | — | — | (138 | ) | — | |||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | (7 | ) | — | 7 | — | — | ||||||||||||||||||||||||||
Net income | — | — | — | — | — | 465 | — | — | 465 | — | |||||||||||||||||||||||||||
Balance, as of September 30, 2018 | 603 | $ | 6 | (32 | ) | $ | (2,213 | ) | $ | 11,495 | $ | 7,818 | $ | (274 | ) | $ | 22 | $ | 16,854 | $ | — |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Operating activities: | ||||||||||||||
Net income | $ | 492 | $ | 474 | $ | 1,507 | $ | 1,401 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 158 | 138 | 473 | 429 | ||||||||||
Stock-based compensation | 29 | 29 | 100 | 93 | ||||||||||
Deferred taxes | (28 | ) | (6 | ) | (52 | ) | (2 | ) | ||||||
Other | (21 | ) | 1 | (34 | ) | (11 | ) | |||||||
Changes in assets and liabilities: | ||||||||||||||
Customer accounts receivable | (227 | ) | (259 | ) | (97 | ) | (119 | ) | ||||||
Other current and non-current assets | 15 | (32 | ) | 22 | (24 | ) | ||||||||
Section 31 fees payable | (35 | ) | (8 | ) | (70 | ) | (117 | ) | ||||||
Deferred revenue | 347 | 343 | 114 | 124 | ||||||||||
Other current and non-current liabilities | (76 | ) | (107 | ) | (81 | ) | (39 | ) | ||||||
Total adjustments | 162 | 99 | 375 | 334 | ||||||||||
Net cash provided by operating activities | 654 | 573 | 1,882 | 1,735 | ||||||||||
Investing activities: | ||||||||||||||
Capital expenditures | (26 | ) | (14 | ) | (87 | ) | (49 | ) | ||||||
Capitalized software development costs | (39 | ) | (37 | ) | (116 | ) | (112 | ) | ||||||
Cash paid for acquisitions | (19 | ) | (400 | ) | (352 | ) | (1,151 | ) | ||||||
Return of capital from equity method investment | 44 | — | 44 | — | ||||||||||
Purchases of investments | — | (304 | ) | |||||||||||
Purchases of equity investments | — | (305 | ) | |||||||||||
Other | (1 | ) | — | |||||||||||
Net cash used in investing activities | (40 | ) | (755 | ) | (512 | ) | (1,617 | ) | ||||||
Financing activities: | ||||||||||||||
Proceeds from commercial paper, net of repayments | 54 | 789 | ||||||||||||
Proceeds from debt facilities | 11 | 2,213 | ||||||||||||
Repayments of debt facilities | — | (600 | ) | |||||||||||
Proceeds from/(repayments of) commercial paper, net | 367 | (35 | ) | |||||||||||
Repurchases of common stock | (440 | ) | (300 | ) | (1,120 | ) | (1,059 | ) | ||||||
Dividends to stockholders | (157 | ) | (140 | ) | (467 | ) | (417 | ) | ||||||
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises | (57 | ) | (72 | ) | (64 | ) | (78 | ) | ||||||
Acquisition of non-controlling interest | — | (35 | ) | |||||||||||
Other | 4 | (7 | ) | 22 | (8 | ) | ||||||||
Net cash provided by (used in) financing activities | (596 | ) | 270 | |||||||||||
Net cash used in financing activities | (1,251 | ) | (19 | ) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | 1 | 2 | (2 | ) | (5 | ) | ||||||||
Net increase in cash, cash equivalents, and restricted cash and cash equivalents | 19 | 90 | 117 | 94 | ||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period | 1,872 | 1,568 | 1,872 | 1,568 | ||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, end of period | $ | 1,891 | $ | 1,658 | $ | 1,989 | $ | 1,662 | ||||||
Supplemental cash flow disclosure: | ||||||||||||||
Cash paid for income taxes | $ | 78 | $ | 144 | $ | 457 | $ | 424 | ||||||
Cash paid for interest | $ | 79 | $ | 27 | $ | 214 | $ | 136 |
1. | Description of Business |
Standard/Description | Effective Date and Adoption Considerations | Effect on Financial Statements |
ASU No. 2016-02, Leases. Entities are required to recognize both assets and liabilities arising from finance and operating leases, along with additional qualitative and quantitative disclosures. | We adopted ASU No. 2016-02 on January 1, 2019. | Further disclosures and details on our adoption of ASU 2016-02 are discussed below. |
Standard/Description | Effective Date and Adoption Considerations | Effect on Financial Statements |
ASU No. 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments. Applies to all financial instruments carried at amortized cost including held-to-maturity debt securities and trade receivables. Requires financial assets carried at amortized cost to be presented at the net amount expected to be collected and requires entities to record credit losses through an allowance for credit losses on available-for-sale debt securities. | Effective at the beginning of our first quarter of fiscal year 2020, with early adoption permitted. We do not expect to | We are currently evaluating this guidance to determine statements, and based on our preliminary assessment, we do not expect the impact of adoption of this guidance to be material. |
As of September 30, 2019 | As of January 1, 2019 | |||||
Right-of-use lease assets | $292 | $308 | ||||
Current operating lease liability | 52 | 52 | ||||
Non-current operating lease liability | 287 | 305 | ||||
Total operating lease liability | $339 | $357 |
As of March 31, 2019 | As of January 1, 2019 | |||||
Right-of-use lease assets | $308 | $308 | ||||
Operating lease liability-current | 53 | 52 | ||||
Operating lease liability-non-current | 306 | 305 | ||||
Total operating lease liability | $359 | $357 |
Remainder of 2019 | $ | 14 | |
2020 | 64 | ||
2021 | 63 | ||
2022 | 61 | ||
2023 | 44 | ||
Thereafter | 137 | ||
Lease liability amounts repayable | 383 | ||
Interest costs | 44 | ||
Total operating lease liability | $ | 339 |
Remainder of 2019 | $ | 49 | |
2020 | 63 | ||
2021 | 61 | ||
2022 | 59 | ||
2023 | 43 | ||
Thereafter | 134 | ||
Lease liability amounts repayable | 409 | ||
Interest costs | 50 | ||
Total operating lease liability | $ | 359 |
Nine Months Ended September 30, 2019 | Three Months Ended September 30, 2019 | ||||||
Cash paid for amounts included in the measurement of operating lease liability | $ | 46 | $ | 15 | |||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 381 | $ | 2 |
Three Months Ended March 31, 2019 | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 15 | |
Right-of-use assets obtained in exchange for operating lease obligations | $ | 372 |
Investments |
Revenue Recognition |
• | Transaction and clearing, net - Transaction and clearing revenues represent fees charged for the performance obligations of derivatives trading and clearing, cash, equity options and fixed income trading, as well as mortgage services. The derivatives trading and clearing fees contain 2 performance obligations: (1) trade execution/clearing novation and (2) risk management of open interest. While we allocate the transaction price between these 2 performance obligations, since they generally are satisfied almost simultaneously there is no significant deferral of revenue. Cash trading, equity options, mortgage services and fixed income fees contain 1 performance obligation related to each transaction which occurs instantaneously, and the revenue is recorded at the point in time of the transaction. Our transaction and clearing revenues are reported net of rebates, except for the NYSE transaction-based expenses. Rebates were $653 million and $615 million for the nine months ended September 30, 2019 and 2018, respectively, and $218 million and $183 million for the three months ended September 30, 2019 and 2018, respectively. Transaction and clearing fees can be variable based on trade volume discounts used in the determination of rebates, however virtually all volume discounts are calculated and recorded on a monthly basis. Transaction and clearing fees, as well as any volume discounts rebated to our customers, are calculated and billed monthly in accordance with our published fee schedules. We make liquidity payments to certain customers in our NYSE businesses and recognize those payments as a cost of revenue. In addition, we pay NYSE regulatory oversight fees to the SEC and collect equal amounts from our customers. These are also considered a cost of revenue, and both of these NYSE-related fees are included in transaction-based expenses. Transaction and clearing revenues and the related transaction-based expenses are all recognized in our Trading and Clearing segment. In certain of our revenue share arrangements with third parties we control the delivered contract; in these arrangements we are acting as a principal and the revenue is recorded gross. |
• | Data services- Data service revenuesrepresent the following: |
◦ | Pricing and analytics services provide global securities evaluations, reference data, market indices, risk analytics, derivatives pricing and other information designed to meet our customers' portfolio management, trading, risk management, reporting and regulatory compliance needs. |
◦ | Exchange data and feeds services provide real-time, historical and derived pricing data, order book and transaction information related to our trading venues, as well as data from a broad array of third-party trading venues and news feeds. |
◦ | Desktops and connectivity services provide the connection to our exchanges, clearing houses and data centers and comprise hosting, colocation, infrastructure, technology-based information platforms, workstations and connectivity solutions through the ICE Global Network. |
• | Listings - Listings revenues include original and annual listings fees, and other corporate action fees. Each distinct listing fee is allocated to multiple performance obligations including original and incremental listing and investor relations services, as well as a customer’s material right to renew the option to list on our exchanges. In performing this allocation, the standalone selling price of the listing services is based on the original and annual listing fees and the standalone selling price of the investor relations services is based on its market value. All listings fees are billed upfront and the identified performance obligations are satisfied over time. Revenue related to the investor relations performance obligation is recognized ratably over a two-year period, with the remaining revenue |
• | Other revenues - Other revenuesprimarily include interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees. Generally, fees for other revenues contain one performance obligation. Because these contracts primarily consist of single performance obligations with fixed prices, there is no variable consideration and no need to allocate the transaction price. Services for other revenues are primarily satisfied at a point in time. Therefore, there is no need to allocate the fee and no deferral results as we have no further obligation to the customer at that time. Other revenues are recognized in our Trading and Clearing segment. |
Trading and Clearing Segment | Data and Listings Segment | Total Consolidated | |||||||||
Nine months ended September 30, 2019: | |||||||||||
Transaction and clearing, net | $ | 2,698 | $ | — | $ | 2,698 | |||||
Data services | — | 1,652 | 1,652 | ||||||||
Listings | — | 336 | 336 | ||||||||
Other revenues | 194 | — | 194 | ||||||||
Total revenues | 2,892 | 1,988 | 4,880 | ||||||||
Transaction-based expenses | 976 | — | 976 | ||||||||
Total revenues, less transaction-based expenses | $ | 1,916 | $ | 1,988 | $ | 3,904 | |||||
Timing of Revenue Recognition | |||||||||||
Services transferred at a point in time | $ | 1,653 | $ | — | $ | 1,653 | |||||
Services transferred over time | 263 | 1,988 | 2,251 | ||||||||
Total revenues, less transaction-based expenses | $ | 1,916 | $ | 1,988 | $ | 3,904 |
Trading and Clearing Segment | Data and Listings Segment | Total Consolidated | |||||||||
Nine months ended September 30, 2018: | |||||||||||
Transaction and clearing, net | $ | 2,522 | $ | — | $ | 2,522 | |||||
Data services | — | 1,576 | 1,576 | ||||||||
Listings | — | 332 | 332 | ||||||||
Other revenues | 169 | — | 169 | ||||||||
Total revenues | 2,691 | 1,908 | 4,599 | ||||||||
Transaction-based expenses | 928 | — | 928 | ||||||||
Total revenues, less transaction-based expenses | $ | 1,763 | $ | 1,908 | $ | 3,671 | |||||
Timing of Revenue Recognition | |||||||||||
Services transferred at a point in time | $ | 1,507 | $ | — | $ | 1,507 | |||||
Services transferred over time | 256 | 1,908 | 2,164 | ||||||||
Total revenues, less transaction-based expenses | $ | 1,763 | $ | 1,908 | $ | 3,671 |
Trading and Clearing Segment | Data and Listings Segment | Total Consolidated | |||||||||
Three months ended September 30, 2019: | |||||||||||
Transaction and clearing, net | $ | 929 | $ | — | $ | 929 | |||||
Data services | — | 553 | 553 | ||||||||
Listings | — | 114 | 114 | ||||||||
Other revenues | 67 | — | 67 | ||||||||
Total revenues | 996 | 667 | 1,663 | ||||||||
Transaction-based expenses | 327 | — | 327 | ||||||||
Total revenues, less transaction-based expenses | $ | 669 | $ | 667 | $ | 1,336 | |||||
Timing of Revenue Recognition | |||||||||||
Services transferred at a point in time | $ | 578 | $ | — | $ | 578 | |||||
Services transferred over time | 91 | 667 | 758 | ||||||||
Total revenues, less transaction-based expenses | $ | 669 | $ | 667 | $ | 1,336 |
Trading and Clearing Segment | Data and Listings Segment | Total Consolidated | |||||||||
Three months ended March 31, 2019 | |||||||||||
Transaction and clearing, net | $ | 862 | $ | — | $ | 862 | |||||
Data services | — | 546 | 546 | ||||||||
Listings | — | 111 | 111 | ||||||||
Other revenues | 64 | — | 64 | ||||||||
Total revenues | 926 | 657 | 1,583 | ||||||||
Transaction-based expenses | 313 | — | 313 | ||||||||
Total revenues, less transaction-based expenses | $ | 613 | $ | 657 | $ | 1,270 | |||||
Timing of Revenue Recognition | |||||||||||
Services transferred at a point in time | $ | 528 | $ | — | $ | 528 | |||||
Services transferred over time | 85 | 657 | 742 | ||||||||
Total revenues, less transaction-based expenses | $ | 613 | $ | 657 | $ | 1,270 |
Trading and Clearing Segment | Data and Listings Segment | Total Consolidated | |||||||||
Three months ended September 30, 2018: | |||||||||||
Transaction and clearing, net | $ | 760 | $ | — | $ | 760 | |||||
Data services | — | 530 | 530 | ||||||||
Listings | — | 112 | 112 | ||||||||
Other revenues | 61 | — | 61 | ||||||||
Total revenues | 821 | 642 | 1,463 | ||||||||
Transaction-based expenses | 263 | — | 263 | ||||||||
Total revenues, less transaction-based expenses | $ | 558 | $ | 642 | $ | 1,200 | |||||
Timing of Revenue Recognition | |||||||||||
Services transferred at a point in time | $ | 477 | $ | — | $ | 477 | |||||
Services transferred over time | 81 | 642 | 723 | ||||||||
Total revenues, less transaction-based expenses | $ | 558 | $ | 642 | $ | 1,200 |
Trading and Clearing Segment | Data and Listings Segment | Total Consolidated | |||||||||
Three months ended March 31, 2018 | |||||||||||
Transaction and clearing, net | $ | 898 | $ | — | $ | 898 | |||||
Data services | — | 520 | 520 | ||||||||
Listings | — | 109 | 109 | ||||||||
Other revenues | 53 | — | 53 | ||||||||
Total revenues | 951 | 629 | 1,580 | ||||||||
Transaction-based expenses | 355 | — | 355 | ||||||||
Total revenues, less transaction-based expenses | $ | 596 | $ | 629 | $ | 1,225 | |||||
Timing of Revenue Recognition | |||||||||||
Services transferred at a point in time | $ | 509 | $ | — | $ | 509 | |||||
Services transferred over time | 87 | 629 | 716 | ||||||||
Total revenues, less transaction-based expenses | $ | 596 | $ | 629 | $ | 1,225 |
Goodwill and Other Intangible Assets |
Goodwill balance at December 31, 2018 | $ | 13,085 | |
Acquisitions | 235 | ||
Foreign currency translation | (12 | ) | |
Other activity, net | 2 | ||
Goodwill balance at September 30, 2019 | $ | 13,310 |
Goodwill balance at December 31, 2018 | $ | 13,085 | |
Foreign currency translation | 11 | ||
Other activity, net | 2 | ||
Goodwill balance at March 31, 2019 | $ | 13,098 |
Other intangible assets balance at December 31, 2018 | $ | 10,462 | |
Acquisitions | 116 | ||
Foreign currency translation | (13 | ) | |
Amortization of other intangible assets | (235 | ) | |
Other intangible assets balance at September 30, 2019 | $ | 10,330 |
Other intangible assets balance at December 31, 2018 | $ | 10,462 | |
Acquisitions | 9 | ||
Foreign currency translation | 12 | ||
Amortization of other intangible assets | (77 | ) | |
Other intangible assets balance at March 31, 2019 | $ | 10,406 |
Deferred Revenue |
Annual Listings Revenues | Original Listings Revenues | Other Listings Revenues | Data Services and Other Revenues | Total | |||||||||||||||
Deferred revenue balance at December 31, 2018 | $ | — | $ | 25 | $ | 100 | $ | 92 | $ | 217 | |||||||||
Additions | 387 | 11 | 30 | 300 | 728 | ||||||||||||||
Amortization | (289 | ) | (17 | ) | (30 | ) | (277 | ) | (613 | ) | |||||||||
Deferred revenue balance at September 30, 2019 | $ | 98 | $ | 19 | $ | 100 | $ | 115 | $ | 332 |
Annual Listings Revenues | Original Listings Revenues | Other Listings Revenues | Data Services and Other Revenues | Total | |||||||||||||||
Deferred revenue balance at December 31, 2018 | $ | — | $ | 25 | $ | 100 | $ | 92 | $ | 217 | |||||||||
Additions | 382 | 3 | 20 | 139 | 544 | ||||||||||||||
Amortization | (96 | ) | (6 | ) | (9 | ) | (85 | ) | (196 | ) | |||||||||
Deferred revenue balance at March 31, 2019 | $ | 286 | $ | 22 | $ | 111 | $ | 146 | $ | 565 |
Annual Listings Revenues | Original Listings Revenues | Other Listings Revenues | Data Services and Other Revenues | Total | |||||||||||||||
Deferred revenue balance at December 31, 2017 | $ | — | $ | 25 | $ | 98 | $ | 93 | $ | 216 | |||||||||
Additions | 383 | 17 | 36 | 291 | 727 | ||||||||||||||
Amortization | (288 | ) | (17 | ) | (27 | ) | (272 | ) | (604 | ) | |||||||||
Deferred revenue balance at September 30, 2018 | $ | 95 | $ | 25 | $ | 107 | $ | 112 | $ | 339 |
Annual Listings Revenues | Original Listings Revenues | Other Listings Revenues | Data Services and Other Revenues | Total | |||||||||||||||
Deferred revenue balance at December 31, 2017 | $ | — | $ | 25 | $ | 98 | $ | 93 | $ | 216 | |||||||||
Additions | 380 | 7 | 15 | 147 | 549 | ||||||||||||||
Amortization | (95 | ) | (6 | ) | (8 | ) | (96 | ) | (205 | ) | |||||||||
Deferred revenue balance at March 31, 2018 | $ | 285 | $ | 26 | $ | 105 | $ | 144 | $ | 560 |
Debt |
As of September 30, 2019 | As of December 31, 2018 | ||||||
Debt: | |||||||
Short-term debt: | |||||||
Commercial Paper | $ | 1,318 | $ | 951 | |||
Other short-term debt | 11 | — | |||||
Total short-term debt | 1,329 | 951 | |||||
Long-term debt: | |||||||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | 1,247 | 1,246 | |||||
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | 497 | 496 | |||||
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | 397 | 397 | |||||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | 794 | 793 | |||||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | 1,244 | 1,243 | |||||
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | 496 | 496 | |||||
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | 592 | 591 | |||||
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | 1,229 | 1,228 | |||||
Total long-term debt | 6,496 | 6,490 | |||||
Total debt | $ | 7,825 | $ | 7,441 |
As of March 31, 2019 | As of December 31, 2018 | ||||||
Debt: | |||||||
Short-term debt: | |||||||
Commercial Paper | $ | 1,005 | $ | 951 | |||
Total short-term debt | 1,005 | 951 | |||||
Long-term debt: | |||||||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | 1,247 | 1,246 | |||||
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | 496 | 496 | |||||
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | 397 | 397 | |||||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | 793 | 793 | |||||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | 1,243 | 1,243 | |||||
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | 496 | 496 | |||||
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | 592 | 591 | |||||
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | 1,228 | 1,228 | |||||
Total long-term debt | 6,492 | 6,490 | |||||
Total debt | $ | 7,497 | $ | 7,441 |
Share-Based Compensation |
Number of Options (in thousands) | Weighted Average Exercise Price per Option | |||||
Outstanding at December 31, 2018 | 3,610 | $ | 46.44 | |||
Granted | 493 | 76.16 | ||||
Exercised | (575 | ) | 38.71 | |||
Outstanding at September 30, 2019 | 3,528 | 51.86 |
Number of Options (in thousands) | Weighted Average Exercise Price per Option | |||||
Outstanding at December 31, 2018 | 3,610 | $ | 46.44 | |||
Granted | 493 | 76.16 | ||||
Exercised | (172 | ) | 29.07 | |||
Outstanding at March 31, 2019 | 3,931 | 50.93 |
Number of Options (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (In millions) | |||||||||
Vested or expected to vest | 3,528 | $ | 51.86 | 6.4 | $ | 143 | ||||||
Exercisable | 2,458 | $ | 44.27 | 5.4 | $ | 118 |
Number of Options (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (In millions) | |||||||||
Vested or expected to vest | 3,931 | $ | 50.93 | 6.6 | $ | 99 | ||||||
Exercisable | 2,848 | $ | 43.98 | 5.7 | $ | 92 |
Nine Months Ended September 30, | |||||||
Assumptions: | 2019 | 2018 | |||||
Risk-free interest rate | 2.49 | % | 2.67 | % | |||
Expected life in years | 5.9 | 6.0 | |||||
Expected volatility | 20 | % | 20 | % | |||
Expected dividend yield | 1.44 | % | 1.43 | % | |||
Estimated weighted-average fair value of options granted per share | $ | 15.45 | $ | 14.08 |
Three Months Ended March 31, | |||||||
Assumptions: | 2019 | 2018 | |||||
Risk-free interest rate | 2.49 | % | 2.66 | % | |||
Expected life in years | 5.9 | 6.0 | |||||
Expected volatility | 20 | % | 20 | % | |||
Expected dividend yield | 1.44 | % | 1.43 | % | |||
Estimated weighted-average fair value of options granted per share | $ | 15.45 | $ | 13.98 |
Number of Restricted Shares (in thousands) | Weighted Average Grant-Date Fair Value per Share | ||||
Non-vested at December 31, 2018 | 4,470 | $ | 60.56 | ||
Granted | 1,675 | 76.65 | |||
Vested | (2,191) | 57.64 | |||
Forfeited | (189) | 66.38 | |||
Non-vested at September 30, 2019 | 3,765 | 69.13 |
Number of Restricted Stock Shares (in thousands) | Weighted Average Grant-Date Fair Value per Share | ||||
Non-vested at December 31, 2018 | 4,470 | $ | 60.56 | ||
Granted | 1,569 | 76.19 | |||
Vested | (1,991) | 57.14 | |||
Forfeited | (73) | 64.06 | |||
Non-vested at March 31, 2019 | 3,975 | 68.38 |
Equity |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in Accumulated Other Comprehensive Income (Loss) by Component | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Comprehensive income from equity method investment | Employee benefit plans adjustments | Total | |||||||||||||||||||||||||||||
Balance, as of December 31, 2018 | $ | (227 | ) | $ | 2 | $ | (90 | ) | $ | (315 | ) | $ | (227 | ) | $ | 2 | $ | (90 | ) | $ | (315 | ) | ||||||||||
Other comprehensive income (loss) | 26 | (1 | ) | — | 25 | (33 | ) | (1 | ) | — | (34 | ) | ||||||||||||||||||||
Income tax benefit (expense) | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 26 | (1 | ) | — | 25 | (32 | ) | (1 | ) | — | (33 | ) | ||||||||||||||||||||
Balance, as of March 31, 2019 | $ | (201 | ) | $ | 1 | $ | (90 | ) | $ | (290 | ) | |||||||||||||||||||||
Balance, as of September 30, 2019 | $ | (259 | ) | $ | 1 | $ | (90 | ) | $ | (348 | ) |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ||||||||||||||||
Balance, as of December 31, 2017 | $ | (136 | ) | $ | 2 | $ | (89 | ) | $ | (223 | ) | |||||
Other comprehensive income | 34 | — | — | 34 | ||||||||||||
Income tax benefit (expense) | (1 | ) | — | — | (1 | ) | ||||||||||
Net current period other comprehensive income | 33 | — | — | 33 | ||||||||||||
Balance, as of March 31, 2018 | $ | (103 | ) | $ | 2 | $ | (89 | ) | $ | (190 | ) |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ||||||||||||||||
Foreign currency translation adjustments | Comprehensive income from equity method investment | Employee benefit plans adjustments | Total | |||||||||||||
Balance, as of June 30, 2019 | $ | (220 | ) | $ | 1 | $ | (90 | ) | $ | (309 | ) | |||||
Other comprehensive income (loss) | (40 | ) | — | — | (40 | ) | ||||||||||
Income tax benefit (expense) | 1 | — | — | 1 | ||||||||||||
Net current period other comprehensive income (loss) | (39 | ) | — | — | (39 | ) | ||||||||||
Balance, as of September 30, 2019 | $ | (259 | ) | $ | 1 | $ | (90 | ) | $ | (348 | ) |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ||||||||||||||||
Foreign currency translation adjustments | Comprehensive income from equity method investment | Employee benefit plans adjustments | Total | |||||||||||||
Balance, as of December 31, 2017 | $ | (136 | ) | $ | 2 | $ | (89 | ) | $ | (223 | ) | |||||
Other comprehensive income (loss) | (52 | ) | — | — | (52 | ) | ||||||||||
Income tax benefit (expense) | 1 | — | — | 1 | ||||||||||||
Net current period other comprehensive income (loss) | (51 | ) | — | — | (51 | ) | ||||||||||
Balance, as of September 30, 2018 | $ | (187 | ) | $ | 2 | $ | (89 | ) | $ | (274 | ) |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ||||||||||||||||
Foreign currency translation adjustments | Comprehensive income from equity method investment | Employee benefit plans adjustments | Total | |||||||||||||
Balance, as of June 30, 2018 | $ | (178 | ) | $ | 2 | $ | (89 | ) | $ | (265 | ) | |||||
Other comprehensive income (loss) | (9 | ) | — | — | (9 | ) | ||||||||||
Income tax benefit (expense) | — | — | — | — | ||||||||||||
Net current period other comprehensive income (loss) | (9 | ) | — | — | (9 | ) | ||||||||||
Balance, as of September 30, 2018 | $ | (187 | ) | $ | 2 | $ | (89 | ) | $ | (274 | ) |
11. | Income Taxes |
ICE Portion of Guaranty Fund Contribution | ||||||||||||
(in millions) | ||||||||||||
Clearing House | Products Cleared | Exchange where Executed | Location | As of March 31, 2019 | As of December 31, 2018 | |||||||
ICE Clear Europe | Energy, agricultural, interest rates and equity index futures and options contracts and OTC European CDS instruments | ICE Futures Europe, ICE Futures U.S., ICE Endex and third-party venues | U.K. | $233 | $206 | |||||||
ICE Clear US | Agricultural, metals, FX and equity index futures and options contracts | ICE Futures U.S. | U.S. | 68 | 61 | |||||||
ICE Clear Credit | North American, European, Asian-Pacific and Emerging Market CDS instruments | Creditex and third-party venues | U.S. | 50 | 50 | |||||||
ICE Clear Netherlands | Derivatives on equities and equity indices traded on regulated markets | ICE Endex | The Netherlands | 2 | 2 | |||||||
ICE Clear Singapore | Energy, metals and financial futures products | ICE Futures Singapore | Singapore | 1 | 1 | |||||||
ICE NGX | Physical North American natural gas, electricity and oil futures | ICE NGX | Canada | N/A | N/A | |||||||
Total | $354 | $320 |
Clearing House | Products Cleared | Exchange where Executed | Location | |||
ICE Clear Europe | Energy, agricultural, interest rates and equity index futures and options contracts and OTC European CDS instruments | ICE Futures Europe, ICE Futures U.S., ICE Endex and third-party venues | U.K. | |||
ICE Clear U.S. | Agricultural, metals, FX and equity index futures and options contracts | ICE Futures U.S. | U.S. | |||
ICE Clear Credit | North American, European, Asian-Pacific and Emerging Market CDS instruments | Creditex, OTC and third-party venues | U.S. | |||
ICE Clear Netherlands | Derivatives on equities and equity indices traded on regulated markets | ICE Endex | The Netherlands | |||
ICE Clear Singapore | Energy, metals and financial futures products | ICE Futures Singapore | Singapore | |||
ICE NGX | Physical North American natural gas, electricity and oil futures | ICE NGX | Canada |
ICE Portion of Guaranty Fund Contribution | Default insurance | ||||||||||
Clearing House | As of September 30, 2019 | As of December 31, 2018 | As of September 30, 2019 | As of December 31, 2018 | |||||||
ICE Clear Europe | $233 | $206 | $75 | N/A | |||||||
ICE Clear U.S. | 103 | 61 | 25 | N/A | |||||||
ICE Clear Credit | 50 | 50 | 50 | N/A | |||||||
ICE Clear Netherlands | 2 | 2 | N/A | N/A | |||||||
ICE Clear Singapore | 1 | 1 | N/A | N/A | |||||||
ICE NGX | N/A | N/A | 100 | $100 | |||||||
Total | $389 | $320 | $250 | $100 |
ICE Clear Europe (1) | ICE Clear Credit | ICE Clear US | ICE NGX | Other ICE Clearing Houses | Total | ICE Clear Europe (1) | ICE Clear Credit | ICE Clear U.S. | ICE NGX | Other ICE Clearing Houses | Total | |||||||||||||||||||||||||||||||||||
Original margin | $ | 27,787 | $ | 21,487 | $ | 7,400 | $ | — | $ | 4 | $ | 56,678 | $ | 28,971 | $ | 22,534 | $ | 7,157 | $ | — | $ | 5 | $ | 58,667 | ||||||||||||||||||||||
Unsettled variation margin, net | — | — | — | 290 | — | 290 | — | — | — | 229 | — | 229 | ||||||||||||||||||||||||||||||||||
Guaranty fund | 4,123 | 2,335 | 458 | — | 6 | 6,922 | 4,198 | 2,120 | 445 | — | 5 | 6,768 | ||||||||||||||||||||||||||||||||||
Delivery contracts receivable/payable, net | — | — | — | 674 | — | 674 | — | — | — | 324 | — | 324 | ||||||||||||||||||||||||||||||||||
Total | $ | 31,910 | $ | 23,822 | $ | 7,858 | $ | 964 | $ | 10 | $ | 64,564 | $ | 33,169 | $ | 24,654 | $ | 7,602 | $ | 553 | $ | 10 | $ | 65,988 |
ICE Clear Europe (2) | ICE Clear Credit | ICE Clear U.S. | ICE NGX | Other ICE Clearing Houses | Total | ||||||||||||||||||
Original margin | $ | 27,597 | $ | 22,770 | $ | 6,260 | $ | — | $ | 3 | $ | 56,630 | |||||||||||
Unsettled variation margin, net | — | — | — | 417 | — | 417 | |||||||||||||||||
Guaranty fund | 3,267 | 2,456 | 460 | — | 5 | 6,188 | |||||||||||||||||
Delivery contracts receivable/payable, net | — | — | — | 720 | — | 720 | |||||||||||||||||
Total | $ | 30,864 | $ | 25,226 | $ | 6,720 | $ | 1,137 | $ | 8 | $ | 63,955 |
ICE Clear Europe (2) | ICE Clear Credit | ICE Clear US | ICE NGX | Other ICE Clearing Houses | Total | ||||||||||||||||||
Original margin | $ | 27,597 | $ | 22,770 | $ | 6,260 | $ | — | $ | 3 | $ | 56,630 | |||||||||||
Unsettled variation margin, net | — | — | — | 417 | — | 417 | |||||||||||||||||
Guaranty fund | 3,267 | 2,456 | 460 | — | 5 | 6,188 | |||||||||||||||||
Delivery contracts receivable/payable, net | — | — | — | 720 | — | 720 | |||||||||||||||||
Total | $ | 30,864 | $ | 25,226 | $ | 6,720 | $ | 1,137 | $ | 8 | $ | 63,955 |
• | ICE Clear Europe: $1.0 billion in Committed Repo to finance U.S. dollar, euro and pound sterling deposits. |
• | ICE Clear Credit: $300 million in Committed Repo to finance U.S. dollar and euro deposits, €250 million in Committed Repo to finance euro deposits, and €1.9 billion in Committed FX Facilities to finance euro payment obligations. |
• | ICE Clear U.S.: $250 million in Committed Repo to finance U.S. dollar deposits. |
• | ICE Clear Netherlands: €10 million in Committed FX Facilities to finance euro payment obligations. |
Clearing House | Investment Type | As of September 30, 2019 | As of December 31, 2018 | |||||||||
ICE Clear Europe | National Bank Account (1) | $ | 5,886 | $ | 8,647 | |||||||
ICE Clear Europe | Reverse repo | 24,184 | 18,097 | |||||||||
ICE Clear Europe | Sovereign Debt | 2,940 | 4,035 | |||||||||
ICE Clear Europe | Demand deposits | 159 | 85 | |||||||||
ICE Clear Credit | National Bank Account (2) | 19,947 | 19,484 | |||||||||
ICE Clear Credit | Reverse repo | 2,997 | 1,935 | |||||||||
ICE Clear Credit | Demand deposits | 1,710 | 3,807 | |||||||||
ICE Clear U.S. | Reverse repo | 5,061 | 4,380 | |||||||||
ICE Clear U.S. | U.S. Treasuries | 2,541 | 2,340 | |||||||||
Other ICE Clearing Houses | Demand deposits | 10 | 8 | |||||||||
ICE NGX | Unsettled Variation Margin and Delivery Contracts Receivable/Payable | 553 | 1,137 | |||||||||
Total | $ | 65,988 | $ | 63,955 |
Clearing House | Investment Type | As of March 31, 2019 | As of December 31, 2018 | |||||||||
ICE Clear Europe | National Bank Account (1) | $ | 3,639 | $ | 8,647 | |||||||
ICE Clear Europe | Reverse repo | 24,515 | 18,097 | |||||||||
ICE Clear Europe | Sovereign Debt | 3,737 | 4,035 | |||||||||
ICE Clear Europe | Demand deposits | 19 | 85 | |||||||||
ICE Clear Credit | National Bank Account (2) | 18,735 | 19,484 | |||||||||
ICE Clear Credit | Reverse repo | 2,189 | 1,935 | |||||||||
ICE Clear Credit | Demand deposits | 2,898 | 3,807 | |||||||||
ICE Clear US | Reverse repo | 5,269 | 4,380 | |||||||||
ICE Clear US | U.S. Treasuries | 2,589 | 2,340 | |||||||||
Other ICE Clearing Houses | Demand deposits | 10 | 8 | |||||||||
ICE NGX | Unsettled Variation Margin and Delivery Contracts Receivable/Payable | 964 | 1,137 | |||||||||
Total | $ | 64,564 | $ | 63,955 |
As of September 30, 2019 | ||||||||||||||||||||
ICE Clear Europe | ICE Clear Credit | ICE Clear U.S. | ICE NGX | Total | ||||||||||||||||
Original margin: | ||||||||||||||||||||
Government securities at face value | $ | 29,305 | $ | 13,420 | $ | 9,881 | $ | — | $ | 52,606 | ||||||||||
Letters of credit | — | — | — | 2,247 | 2,247 | |||||||||||||||
ICE NGX cash deposits | — | — | — | 322 | 322 | |||||||||||||||
Total | $ | 29,305 | $ | 13,420 | $ | 9,881 | $ | 2,569 | $ | 55,175 | ||||||||||
Guaranty fund: | ||||||||||||||||||||
Government securities at face value | $ | 407 | $ | 284 | $ | 274 | $ | — | $ | 965 |
As of March 31, 2019 | ||||||||||||||||||||
ICE Clear Europe | ICE Clear Credit | ICE Clear US | ICE NGX | Total | ||||||||||||||||
Original margin: | ||||||||||||||||||||
Government securities at face value | $ | 31,479 | $ | 14,231 | $ | 11,561 | $ | — | $ | 57,271 | ||||||||||
Letters of credit | — | — | — | 2,486 | 2,486 | |||||||||||||||
ICE NGX cash deposits | — | — | — | 482 | 482 | |||||||||||||||
Total | $ | 31,479 | $ | 14,231 | $ | 11,561 | $ | 2,968 | $ | 60,239 | ||||||||||
Guaranty fund: | ||||||||||||||||||||
Government securities at face value | $ | 557 | $ | 279 | $ | 275 | $ | — | $ | 1,111 |
As of December 31, 2018 | ||||||||||||||||||||
ICE Clear Europe | ICE Clear Credit | ICE Clear U.S. | ICE NGX | Total | ||||||||||||||||
Original margin: | ||||||||||||||||||||
Government securities at face value | $ | 29,887 | $ | 12,990 | $ | 10,208 | $ | — | $ | 53,085 | ||||||||||
Letters of credit | — | — | — | 2,556 | 2,556 | |||||||||||||||
ICE NGX cash deposits | — | — | — | 605 | 605 | |||||||||||||||
Total | $ | 29,887 | $ | 12,990 | $ | 10,208 | $ | 3,161 | $ | 56,246 | ||||||||||
Guaranty fund: | ||||||||||||||||||||
Government securities at face value | $ | 654 | $ | 256 | $ | 264 | $ | — | $ | 1,174 |
As of December 31, 2018 | ||||||||||||||||||||
ICE Clear Europe | ICE Clear Credit | ICE Clear US | ICE NGX | Total | ||||||||||||||||
Original margin: | ||||||||||||||||||||
Government securities at face value | $ | 29,887 | $ | 12,990 | $ | 10,208 | $ | — | $ | 53,085 | ||||||||||
Letters of credit | — | — | — | 2,556 | 2,556 | |||||||||||||||
ICE NGX cash deposits | — | — | — | 605 | 605 | |||||||||||||||
Total | $ | 29,887 | $ | 12,990 | $ | 10,208 | $ | 3,161 | $ | 56,246 | ||||||||||
Guaranty fund: | ||||||||||||||||||||
Government securities at face value | $ | 654 | $ | 256 | $ | 264 | $ | — | $ | 1,174 |
Account Type | As of September 30, 2019 (In C$ millions) | As of September 30, 2019 (In $USD millions) | ||||
Daylight liquidity facility | C$300 | $227 | ||||
Overdraft facility | 20 | 15 | ||||
Total | C$320 | $242 |
Account Type | As of March 31, 2019 (In C$ millions) | As of March 31, 2019 (In $USD millions) | ||||
Daylight liquidity facility | C$300 | $225 | ||||
Overdraft facility | 20 | 15 | ||||
Total | C$320 | $240 |
• | Level 1 inputs — quoted prices for identical assets or liabilities in active markets. |
• | Level 2 inputs — observable inputs other than Level 1 inputs such as quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are directly observable. |
• | Level 3 inputs — unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
As of September 30, 2019 | |||||||
(in millions) | |||||||
Debt: | Carrying Amount | Fair value | |||||
Commercial Paper | $ | 1,318 | $ | 1,323 | |||
Other short-term debt | 11 | 11 | |||||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | 1,247 | 1,260 | |||||
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | 497 | 505 | |||||
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | 397 | 419 | |||||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | 794 | 855 | |||||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | 1,244 | 1,349 | |||||
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | 496 | 524 | |||||
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | 592 | 660 | |||||
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | 1,229 | 1,493 | |||||
Total debt | $ | 7,825 | $ | 8,399 |
As of March 31, 2019 | |||||||
Carrying Amount | Fair value | ||||||
Debt: | In Millions | ||||||
Commercial Paper | $ | 1,005 | $ | 1,008 | |||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | 1,247 | 1,252 | |||||
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | 496 | 493 | |||||
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | 397 | 411 | |||||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | 793 | 841 | |||||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | 1,243 | 1,302 | |||||
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | 496 | 497 | |||||
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | 592 | 624 | |||||
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | 1,228 | 1,317 | |||||
Total debt | $ | 7,497 | $ | 7,745 |
Segment Reporting |
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
Trading and Clearing Segment | Data and Listings Segment | Consolidated | Trading and Clearing Segment | Data and Listings Segment | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Energy futures and options contracts | $ | 749 | $ | — | $ | 749 | $ | 708 | $ | — | $ | 708 | |||||||||||
Agricultural and metals futures and options contracts | 194 | — | 194 | 197 | — | 197 | |||||||||||||||||
Financial futures and options contracts | 252 | — | 252 | 262 | — | 262 | |||||||||||||||||
Cash equities and equity options | 1,201 | — | 1,201 | 1,162 | — | 1,162 | |||||||||||||||||
Fixed income and credit | 268 | — | 268 | 157 | — | 157 | |||||||||||||||||
OTC and other transactions | 34 | — | 34 | 36 | — | 36 | |||||||||||||||||
Pricing and analytics | — | 809 | 809 | — | 779 | 779 | |||||||||||||||||
Exchange data and feeds | — | 528 | 528 | — | 496 | 496 | |||||||||||||||||
Desktops and connectivity | — | 315 | 315 | — | 301 | 301 | |||||||||||||||||
Listings | — | 336 | 336 | — | 332 | 332 | |||||||||||||||||
Other revenues | 194 | — | 194 | 169 | — | 169 | |||||||||||||||||
Revenues | 2,892 | 1,988 | 4,880 | 2,691 | 1,908 | 4,599 | |||||||||||||||||
Transaction-based expenses | 976 | — | 976 | 928 | — | 928 | |||||||||||||||||
Revenues, less transaction-based expenses | 1,916 | 1,988 | 3,904 | 1,763 | 1,908 | 3,671 | |||||||||||||||||
Operating expenses | 732 | 1,121 | 1,853 | 655 | 1,109 | 1,764 | |||||||||||||||||
Operating income | $ | 1,184 | $ | 867 | $ | 2,051 | $ | 1,108 | $ | 799 | $ | 1,907 |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||||||||||||
Trading and Clearing Segment | Data and Listings Segment | Consolidated | Trading and Clearing Segment | Data and Listings Segment | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Energy futures and options contracts | $ | 265 | $ | — | $ | 265 | $ | 223 | $ | — | $ | 223 | |||||||||||
Agricultural and metals futures and options contracts | 60 | — | 60 | 58 | — | 58 | |||||||||||||||||
Financial futures and options contracts | 91 | — | 91 | 77 | — | 77 | |||||||||||||||||
Cash equities and equity options | 401 | — | 401 | 335 | — | 335 | |||||||||||||||||
Fixed income and credit | 101 | — | 101 | 56 | — | 56 | |||||||||||||||||
OTC and other transactions | 11 | — | 11 | 11 | — | 11 | |||||||||||||||||
Pricing and analytics | — | 273 | 273 | — | 263 | 263 | |||||||||||||||||
Exchange data and feeds | — | 172 | 172 | — | 168 | 168 | |||||||||||||||||
Desktops and connectivity | — | 108 | 108 | — | 99 | 99 | |||||||||||||||||
Listings | — | 114 | 114 | — | 112 | 112 | |||||||||||||||||
Other revenues | 67 | — | 67 | 61 | — | 61 | |||||||||||||||||
Revenues | 996 | 667 | 1,663 | 821 | 642 | 1,463 | |||||||||||||||||
Transaction-based expenses | 327 | — | 327 | 263 | — | 263 | |||||||||||||||||
Revenues, less transaction-based expenses | 669 | 667 | 1,336 | 558 | 642 | 1,200 | |||||||||||||||||
Operating expenses | 255 | 375 | 630 | 230 | 368 | 598 | |||||||||||||||||
Operating income | $ | 414 | $ | 292 | $ | 706 | $ | 328 | $ | 274 | $ | 602 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||||||||||||
Trading and Clearing Segment | Data and Listings Segment | Consolidated | Trading and Clearing Segment | Data and Listings Segment | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Energy futures and options contracts | $ | 229 | $ | — | $ | 229 | $ | 235 | $ | — | $ | 235 | |||||||||||
Agricultural and metals futures and options contracts | 62 | — | 62 | 65 | — | 65 | |||||||||||||||||
Financial futures and options contracts | 83 | — | 83 | 91 | — | 91 | |||||||||||||||||
Cash equities and equity options | 390 | — | 390 | 438 | — | 438 | |||||||||||||||||
Fixed income and credit | 87 | — | 87 | 56 | — | 56 | |||||||||||||||||
OTC and other transactions | 11 | — | 11 | 13 | — | 13 | |||||||||||||||||
Pricing and analytics | — | 266 | 266 | — | 254 | 254 | |||||||||||||||||
Exchange data and feeds | — | 176 | 176 | — | 164 | 164 | |||||||||||||||||
Desktops and connectivity | — | 104 | 104 | — | 102 | 102 | |||||||||||||||||
Listings | — | 111 | 111 | — | 109 | 109 | |||||||||||||||||
Other revenues | 64 | — | 64 | 53 | — | 53 | |||||||||||||||||
Revenues | 926 | 657 | 1,583 | 951 | 629 | 1,580 | |||||||||||||||||
Transaction-based expenses | 313 | — | 313 | 355 | — | 355 | |||||||||||||||||
Revenues, less transaction-based expenses | 613 | 657 | 1,270 | 596 | 629 | 1,225 | |||||||||||||||||
Operating expenses | 228 | 377 | 605 | 207 | 368 | 575 | |||||||||||||||||
Operating income | $ | 385 | $ | 280 | $ | 665 | $ | 389 | $ | 261 | $ | 650 |
Earnings Per Common Share |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic: | |||||||||||||||
Net income attributable to Intercontinental Exchange, Inc. | $ | 1,485 | $ | 1,377 | $ | 529 | $ | 458 | |||||||
Weighted average common shares outstanding | 563 | 577 | 559 | 572 | |||||||||||
Basic earnings per common share | $ | 2.64 | $ | 2.39 | $ | 0.95 | $ | 0.80 | |||||||
Diluted: | |||||||||||||||
Weighted average common shares outstanding | 563 | 577 | 559 | 572 | |||||||||||
Effect of dilutive securities - stock options and restricted shares | 3 | 4 | 4 | 4 | |||||||||||
Diluted weighted average common shares outstanding | 566 | 581 | 563 | 576 | |||||||||||
Diluted earnings per common share | $ | 2.62 | $ | 2.37 | $ | 0.94 | $ | 0.79 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Basic: | ||||||||
Net income attributable to Intercontinental Exchange, Inc. | $ | 484 | $ | 464 | ||||
Weighted average common shares outstanding | 568 | 582 | ||||||
Basic earnings per common share | $ | 0.85 | $ | 0.80 | ||||
Diluted: | ||||||||
Weighted average common shares outstanding | 568 | 582 | ||||||
Effect of dilutive securities - stock options and restricted shares | 2 | 4 | ||||||
Diluted weighted average common shares outstanding | 570 | 586 | ||||||
Diluted earnings per common share | $ | 0.85 | $ | 0.79 |
Subsequent Events |
• | The proposed revisions to the regulatory structure of non-EU clearing houses. On March 13, 2019, the European Parliament, Council and the European Commission reached a political agreement on revisions to the EU's current regulatory and supervisory structure for EU and non-EU clearing houses, called EMIR 2.2. These proposed revisions of the regulatory structure could have an impact on our non-EU clearing houses if they are determined to be systemically important or likely to become systemically important to the financial stability of the EU or one or more of its Member States. It remains uncertain what the nature and extent of the regulation's impact will be on the regulation and supervision of one or more of our non-EU clearing houses, which will depend on ESMA’s future determination of whether a non-EU clearing house is systemically important to the EU or its Member States and the extent to which ESMA will rely on such clearing house’s domestic regulator. The exact date of the application of EMIR 2.2 is currently unclear, but could be as early as the first quarter of 2020. |
• | Basel III capital charges. The implementation of capital charges in Basel III, particularly, the Supplemental Leverage Ratio applicable to certain financial institutions(1), may impose capital requirements on certain of our clearing house members and their customers that may raise the costs and thus discourage financial institutions from client clearing. The Federal Reserve Board, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have proposed rule changes to the derivative exposure calculations and leverage ratio requirements; however these regulations could have a negative impact on certain of our clearing members. |
• | Capital requirements for investment firms acting as market makers. EU policy makers are developing a framework for European investment firms. The proposed rules risk imposing disproportionate capital requirements on European investment firms acting as market makers. European investment firms may be discouraged from acting as market makers on certain markets operated by ICE Futures Europe and ICE Endex due to the increased capital requirements. |
• | Continued access by EU and U.K. market participants to CCPs and exchanges.The U.K. and EU continue to negotiate the exit of the U.K. from the EU (commonly known as Brexit). The EU has recently agreed to an extension of the date of the U.K.'s exit from the EU to allow for the U.K.'s ratification of the withdrawal agreement. The extension will last until the sooner to occur of January 31, 2020 or the date of the U.K.'s ratification of the withdrawal agreement. The U.K. government plans to hold a general election on December 12, 2019 and has indicated that it will not progress the ratification of the withdrawal agreement until after the general election takes place. Therefore, the status of the ratification of the withdrawal agreement will depend upon the outcome of the U.K. general election. In anticipation of Brexit, the European Commission adopted an equivalence decision regarding the U.K.’s legal and supervisory arrangements for CCPs in December 2018, and in February 2019, ESMA approved ICE Clear Europe as a third-country CCP. Upon the U.K.’s exit from the EU, EU market participants will be able to continue clearing through U.K. CCPs, such as ICE Clear Europe, until March 31, 2020 in the case of a U.K. exit from the EU without a transition period. Separately, following Brexit, ICE Futures Europe and ICE Endex will continue to be able to permit access by persons in the EU and the U.K., respectively, to trading on their platforms, even in the absence of a transition agreement. However, the lack of an equivalence decision may result in increased costs for certain EU and U.K. market participants which could impact trading on ICE Futures Europe and ICE Endex. The impact to our business and corresponding regulatory changes remain uncertain at this time. We are monitoring the impact to our business as a result of these discussions and are pursuing avenues to facilitate continued access for EU customers to our services in the event the U.K. exits the EU without a transition period. |
• | The SEC Transaction Fee Pilot. In December 2018, the SEC adopted a Transaction Fee Pilot. The final rule establishes a pilot program, for at least one-year and up to two-years, that will limit the fees charged and rebates paid by our five national securities exchanges in certain securities to be designated by the SEC. On March 28, 2019, the SEC partially stayed the Transaction Fee Pilot, pending resolution of our and two other national securities exchanges’ petitions for review of the Transaction Fee Pilot by the U.S. Court of Appeals for the District of Columbia Circuit. The only requirement that the SEC did not stay was the requirement that the exchanges collect data during a pre-pilot period, which began on July 1, 2019 and terminates on December 31, 2019. |
• | The EU Benchmark Regulation, or BMR. In June 2016, the EU Benchmark Regulation, or BMR, was adopted and applies from January 2018. Under the BMR, benchmarks provided by a third-country benchmark administrator may be used by EU-supervised entities provided that the European Commission has adopted an equivalence decision or the administrator has been recognized or endorsed and the benchmarks are listed on the register established by ESMA. The BMR provides for a transition period which was extended by the EU authorities to January 1, 2022 for providers of critical benchmarks and third-country benchmark providers. In May 2019, ICE Data Indices, LLC received recognition from the U.K. Financial Conduct Authority, and as such, benchmarks provided by ICE Data Indices, LLC and included in the ESMA register may continue to be used by supervised entities. |
• | MiFID II Pre-Trade Price Transparency Requirements.In June 2019, ESMA issued a Supervisory Briefing to the national regulatory authorities of EU Member States that sets out a supervisory action plan for the pre-trade price transparency regime for commodity derivatives. The supervisory action plan calls upon national regulatory authorities to ensure that the trading venues they regulate either operate under a MiFID II compliant pre-trade transparency waiver or have implemented a full pre-trade transparency regime by December 31, 2019. These requirements could have an impact on the trading arrangements for certain commodity contracts listed on ICE Futures Europe and ICE Endex. |
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||
Revenues, less transaction-based expenses | $ | 1,270 | $ | 1,225 | 4 % | $ | 3,904 | $ | 3,671 | 6 % | $ | 1,336 | $ | 1,200 | 11 % | ||||||||||||||
Operating expenses | $ | 605 | $ | 575 | 5 % | $ | 1,853 | $ | 1,764 | 5 % | $ | 630 | $ | 598 | 5 % | ||||||||||||||
Adjusted operating expenses(1) | $ | 528 | $ | 494 | 7 % | $ | 1,619 | $ | 1,518 | 7 % | $ | 551 | $ | 521 | 6 % | ||||||||||||||
Operating income | $ | 665 | $ | 650 | 2 % | $ | 2,051 | $ | 1,907 | 8 % | $ | 706 | $ | 602 | 17 % | ||||||||||||||
Adjusted operating income(1) | $ | 742 | $ | 731 | 2% | $ | 2,285 | $ | 2,153 | 6% | $ | 785 | $ | 679 | 16% | ||||||||||||||
Operating margin | 52 | % | 53 | % | (1) pt | 53 | % | 52 | % | 1 pt | 53 | % | 50 | % | 3 pts | ||||||||||||||
Adjusted operating margin(1) | 58 | % | 60 | % | (2) pts | 59 | % | 59 | % | — | 59 | % | 57 | % | 2 pts | ||||||||||||||
Other income (expense), net | $ | (39 | ) | $ | (33 | ) | 19 % | $ | (157 | ) | $ | (125 | ) | 26 % | $ | (66 | ) | $ | (48 | ) | 37 % | ||||||||
Income tax expense | $ | 134 | $ | 143 | (7) % | $ | 387 | $ | 381 | 2 % | $ | 103 | $ | 89 | 17 % | ||||||||||||||
Effective tax rate | 21 | % | 23 | % | (2) pts | 20 | % | 21 | % | (1 pt) | 16 | % | 16 | % | — | ||||||||||||||
Net income attributable to ICE | $ | 484 | $ | 464 | 4 % | $ | 1,485 | $ | 1,377 | 8 % | $ | 529 | $ | 458 | 16 % | ||||||||||||||
Adjusted net income attributable to ICE(1) | $ | 527 | $ | 525 | —% | $ | 1,660 | $ | 1,541 | 8 % | $ | 599 | $ | 491 | 22% | ||||||||||||||
Diluted earnings per share attributable to ICE common stockholders | $ | 0.85 | $ | 0.79 | 8 % | $ | 2.62 | $ | 2.37 | 11 % | $ | 0.94 | $ | 0.79 | 19 % | ||||||||||||||
Adjusted diluted earnings per share attributable to ICE common stockholders(1) | $ | 0.92 | $ | 0.90 | 2 % | $ | 2.93 | $ | 2.65 | 11 % | $ | 1.06 | $ | 0.85 | 25 % | ||||||||||||||
Cash flows from operating activities | $ | 654 | $ | 573 | 14 % | $ | 1,882 | $ | 1,735 | 8 % |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Energy futures and options contracts | $ | 749 | $ | 708 | 6 | % | $ | 265 | $ | 223 | 19 | % | |||||||||
Agricultural and metals futures and options contracts | 194 | 197 | (1 | ) | 60 | 58 | 4 | ||||||||||||||
Financial futures and options contracts | 252 | 262 | (4 | ) | 91 | 77 | 18 | ||||||||||||||
Cash equities and equity options | 1,201 | 1,162 | 3 | 401 | 335 | 20 | |||||||||||||||
Fixed income and credit | 268 | 157 | 70 | 101 | 56 | 81 | |||||||||||||||
OTC and other transactions | 34 | 36 | (8 | ) | 11 | 11 | (3 | ) | |||||||||||||
Transaction and clearing, net | 2,698 | 2,522 | 7 | 929 | 760 | 22 | |||||||||||||||
Other revenues | 194 | 169 | 15 | 67 | 61 | 9 | |||||||||||||||
Revenues | 2,892 | 2,691 | 7 | 996 | 821 | 21 | |||||||||||||||
Transaction-based expenses | 976 | 928 | 5 | 327 | 263 | 24 | |||||||||||||||
Revenues, less transaction-based expenses | 1,916 | 1,763 | 9 | 669 | 558 | 20 | |||||||||||||||
Other operating expenses | 554 | 492 | 13 | 195 | 171 | 14 | |||||||||||||||
Depreciation and amortization | 177 | 155 | 14 | 60 | 53 | 13 | |||||||||||||||
Acquisition-related transaction and integration costs | 1 | 8 | (83 | ) | — | 6 | (99 | ) | |||||||||||||
Operating expenses | 732 | 655 | 12 | 255 | 230 | 11 | |||||||||||||||
Operating income | $ | 1,184 | $ | 1,108 | 7 | % | $ | 414 | $ | 328 | 26 | % |
Three Months Ended March 31, | ||||||||||
2019 | 2018 | Change | ||||||||
Revenues: | ||||||||||
Energy futures and options contracts | $ | 229 | $ | 235 | (2 | )% | ||||
Agricultural and metals futures and options contracts | 62 | 65 | (5 | ) | ||||||
Financial futures and options contracts | 83 | 91 | (9 | ) | ||||||
Cash equities and equity options | 390 | 438 | (11 | ) | ||||||
Fixed income and credit | 87 | 56 | 54 | |||||||
OTC and other transactions | 11 | 13 | (14 | ) | ||||||
Transaction and clearing, net | 862 | 898 | (4 | ) | ||||||
Other revenues | 64 | 53 | 21 | |||||||
Revenues | 926 | 951 | (3 | ) | ||||||
Transaction-based expenses | 313 | 355 | (12 | ) | ||||||
Revenues, less transaction-based expenses | 613 | 596 | 3 | |||||||
Other operating expenses | 170 | 157 | 8 | |||||||
Depreciation and amortization | 58 | 50 | 17 | |||||||
Operating expenses | 228 | 207 | 10 | |||||||
Operating income | $ | 385 | $ | 389 | (1 | )% |
• | Energy Futures and Options Contracts: Total energy volume decreased 1% and revenues increased 6%, respectively, for the nine months ended September 30, 2019 from the comparable period in 2018. Total energy volume increased 14% and revenues increased 19% for the three months ended September 30, 2019 from the comparable period in 2018. Volumes decreased for the nine months ended September 30, 2019 due to lower crude oil and North American natural gas volumes, while revenues increased during the nine months ended September 30, 2019 due to an increase in EU natural gas products and other crude and refined oil products that generally have a higher rate per |
• | Agricultural and Metals Futures and Options Contracts: Total volume increased 2% and revenues decreased 1% in our agricultural and metals futures and options markets for the nine months ended September 30, 2019 from the comparable period in 2018. Total volume increased 7% and revenues increased 4% in our agricultural and metals futures and options markets for the three months ended September 30, 2019 from the comparable period in 2018. Volume in our largest agricultural contract, sugar futures and options, increased 4% and 7% for the nine and three months ended September 30, 2019, respectively, from the comparable periods in 2018. Other agricultural and metal futures and options volume increased 1% and 7% for the nine and three months ended September 30, 2019, respectively, from the comparable periods in 2018. The overall increase in agricultural volumes for the nine and three months ended September 30, 2019 was primarily driven by price volatility resulting from supply and demand dynamics, weather concerns and geopolitical events. |
• | Financial Futures and Options Contracts: Interest rate futures and options volume and revenue decreased 7% and 11%, respectively, for the nine months ended September 30, 2019 from the comparable period in 2018. Interest rate futures and options volume and revenue increased 14% and 13%, respectively, for the three months ended September 30, 2019 from the comparable period in 2018. Our interest rate futures and options volume decreased for the nine months ended September 30, 2019, due in part, to a muted European economic backdrop. Interest rate futures and options volume increased for the three months ended September 30, 2019 due to geopolitical events in the U.K. Interest rate futures and options revenues were $152 million and $170 million for the nine months ended September 30, 2019 and 2018, respectively, and $55 million and $48 million for the three months ended September 30, 2019 and 2018, respectively. |
• | Cash Equities and Equity Options: Cash equities handled volume increased 9% and 10% for the nine and three months ended September 30, 2019, respectively, from the comparable periods in 2018 due to increased market share and heightened volatility as compared to the prior year period. Cash equities revenues, net of transaction-based expenses, were $153 million and $157 million for the nine months ended September 30, 2019 and 2018, respectively, and $51 million and $47 million for the three months ended September 30, 2019 and 2018, respectively. |
• | Fixed Income and Credit: Fixed income and credit includes an increase in fixed income transaction revenues of $115 million and $42 million for the nine and three months ended September 30, 2019, respectively, due to acquisitions made in our ICE Mortgage Services and ICE Bonds businesses in late 2018 and in 2019. |
• | OTC and Other Transactions: OTC and other transactions include revenues from our OTC energy business and other trade confirmation services. |
• | Other Revenues: Other revenues primarily include interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees. The increase in other revenues for the nine and three months ended September 30, 2019 from the comparable periods in 2018 is primarily due to increased interest income earned on certain clearing margin deposits reflecting higher balances and increased interest rates as compared to the same prior year periods. The increase was partially offset by a $5 million settlement received by NYSE Regulation from ING Financial Markets, LLC, or ING, in September 2018 following an investigation into improper conduct by ING's lending desk from 2007 to 2015. |
Volume and Rate per Contract |
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
Number of contracts traded (in millions): | ||||||||||||||||||||||||||||||||
Energy futures and options | 156 | 176 | (12 | )% | 502 | 507 | (1 | )% | 177 | 155 | 14 | % | ||||||||||||||||||||
Agricultural and metals futures and options | 27 | 28 | (1 | ) | 85 | 83 | 2 | 26 | 25 | 7 | ||||||||||||||||||||||
Financial futures and options | 168 | 183 | (8 | ) | 491 | 519 | (6 | ) | 174 | 150 | 15 | |||||||||||||||||||||
Total | 351 | 387 | (9 | )% | 1,078 | 1,109 | (3 | )% | 377 | 330 | 14 | % | ||||||||||||||||||||
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
Average Daily Volume of contracts traded (in thousands): | ||||||||||||||||||||||||||||||||
Energy futures and options | 2,552 | 2,893 | (12 | )% | 2,671 | 2,695 | (1 | )% | 2,762 | 2,456 | 12 | % | ||||||||||||||||||||
Agricultural and metals futures and options | 449 | 455 | (1 | ) | 453 | 442 | 2 | 414 | 393 | 5 | ||||||||||||||||||||||
Financial futures and options | 2,672 | 2,916 | (8 | ) | 2,565 | 2,715 | (6 | ) | 2,650 | 2,336 | 13 | |||||||||||||||||||||
Total | 5,673 | 6,264 | (9 | )% | 5,689 | 5,852 | (3 | )% | 5,826 | 5,185 | 12 | % | ||||||||||||||||||||
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
Rate per contract: | ||||||||||||||||||||||||||||||||
Energy futures and options | $ | 1.47 | $ | 1.33 | 11 | % | $ | 1.49 | $ | 1.40 | 7 | % | $ | 1.50 | $ | 1.44 | 4 | % | ||||||||||||||
Agricultural and metals futures and options | $ | 2.25 | $ | 2.33 | (3 | )% | $ | 2.28 | $ | 2.37 | (4 | )% | $ | 2.27 | $ | 2.34 | (3 | )% | ||||||||||||||
Financial futures and options | $ | 0.49 | $ | 0.49 | — | % | $ | 0.51 | $ | 0.49 | 3 | % | $ | 0.52 | $ | 0.50 | 3 | % |
Open Interest |
As of March 31, | As of September 30, | |||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||
Open interest — in thousands of contracts: | ||||||||||||||||
Energy futures and options | 35,825 | 34,711 | 3 | % | 37,621 | 36,312 | 4 | % | ||||||||
Agricultural and metals futures and options | 3,957 | 3,997 | (1 | ) | 3,873 | 3,856 | — | |||||||||
Financial futures and options | 30,350 | 28,129 | 8 | 34,740 | 28,601 | 21 | ||||||||||
Total | 70,132 | 66,837 | 5 | % | 76,234 | 68,769 | 11 | % |
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
NYSE cash equities (shares in millions): | ||||||||||||||||||||||||||
NYSE listed (Tape A) issues: | ||||||||||||||||||||||||||
Handled volume | 1,226 | 1,196 | 3 | % | 1,145 | 1,095 | 5 | % | 1,095 | 985 | 11 | % | ||||||||||||||
Matched volume | 1,213 | 1,186 | 2 | % | 1,133 | 1,087 | 4 | % | 1,083 | 976 | 11 | % | ||||||||||||||
Total NYSE listed consolidated volume | 3,794 | 3,848 | (1 | )% | 3,600 | 3,500 | 3 | % | 3,527 | 3,144 | 12 | % | ||||||||||||||
Share of total matched consolidated volume | 32.0 | % | 30.8 | % | 1.1 pts | 31.5 | % | 31.0 | % | 0.4 pts | 30.7 | % | 31.0 | % | (0.4) pts | |||||||||||
NYSE Arca, NYSE American and regional listed (Tape B) issues: | ||||||||||||||||||||||||||
Handled volume | 389 | 369 | 5 | % | 371 | 324 | 14 | % | 359 | 308 | 17 | % | ||||||||||||||
Matched volume | 380 | 357 | 6 | % | 362 | 315 | 15 | % | 351 | 301 | 17 | % | ||||||||||||||
Total NYSE Arca, NYSE American and regional listed consolidated volume | 1,419 | 1,530 | (7 | )% | 1,362 | 1,293 | 5 | % | 1,364 | 1,149 | 19 | % | ||||||||||||||
Share of total matched consolidated volume | 26.8 | % | 23.3 | % | 3.4 pts | 26.6 | % | 24.4 | % | 2.2 pts | 25.7 | % | 26.2 | % | (0.4) pts | |||||||||||
Nasdaq listed (Tape C) issues: | ||||||||||||||||||||||||||
Handled volume | 272 | 171 | 59 | % | 244 | 190 | 29 | % | 211 | 219 | (4 | )% | ||||||||||||||
Matched volume | 257 | 161 | 60 | % | 230 | 178 | 29 | % | 198 | 206 | (4 | )% | ||||||||||||||
Total Nasdaq listed consolidated volume | 2,327 | 2,255 | 3 | % | 2,178 | 2,156 | 1 | % | 2,047 | 2,067 | (1 | )% | ||||||||||||||
Share of total matched consolidated volume | 11.1 | % | 7.2 | % | 3.9 pts | 10.6 | % | 8.3 | % | 2.3 pts | 9.7 | % | 9.9 | % | (0.3) pts | |||||||||||
Total cash handled volume | 1,886 | 1,736 | 9 | % | 1,760 | 1,609 | 9 | % | 1,665 | 1,512 | 10 | % | ||||||||||||||
Total cash market share matched | 24.5 | % | 22.3 | % | 2.2 pts | 24.2 | % | 22.7 | % | 1.4 pts | 23.5 | % | 23.3 | % | 0.2 pts | |||||||||||
NYSE equity options (contracts in thousands): | ||||||||||||||||||||||||||
NYSE equity options volume | 3,331 | 3,524 | (5 | )% | 3,185 | 3,226 | (1 | )% | 3,062 | 3,070 | — | % | ||||||||||||||
Total equity options volume | 17,331 | 19,578 | (11 | )% | 17,478 | 17,657 | (1 | )% | 17,767 | 16,505 | 8 | % | ||||||||||||||
NYSE share of total equity options | 19.2 | % | 18.0 | % | 1.2 pts | 18.2 | % | 18.3 | % | — | 17.2 | % | 18.6 | % | (1.4) pts | |||||||||||
Revenue capture or rate per contract: | ||||||||||||||||||||||||||
Cash equities rate per contract (per 100 shares) | $0.045 | $0.053 | (15 | )% | $0.046 | $0.051 | (10 | )% | $0.049 | $0.048 | — | % | ||||||||||||||
Equity options rate per contract | $0.12 | $0.13 | (3 | )% | $0.12 | $0.13 | (4 | )% | $0.12 | $0.12 | (5 | )% |
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Pricing and analytics | $ | 266 | $ | 254 | 5 | % | $ | 809 | $ | 779 | 4 | % | $ | 273 | $ | 263 | 4 | % | ||||||||||||||
Exchange data and feeds | 176 | 164 | 7 | 528 | 496 | 6 | 172 | 168 | 3 | |||||||||||||||||||||||
Desktops and connectivity | 104 | 102 | 2 | 315 | 301 | 5 | 108 | 99 | 9 | |||||||||||||||||||||||
Data services | 546 | 520 | 5 | 1,652 | 1,576 | 5 | 553 | 530 | 4 | |||||||||||||||||||||||
Listings | 111 | 109 | 2 | 336 | 332 | 1 | 114 | 112 | 2 | |||||||||||||||||||||||
Revenues | 657 | 629 | 4 | 1,988 | 1,908 | 4 | 667 | 642 | 4 | |||||||||||||||||||||||
Other operating expenses | 277 | 268 | 3 | 825 | 810 | 2 | 277 | 273 | 1 | |||||||||||||||||||||||
Depreciation and amortization | 296 | 274 | 8 | 98 | 95 | 3 | ||||||||||||||||||||||||||
Acquisition-related transaction and integration costs | — | 12 | n/a | — | 25 | (100 | ) | — | — | (100 | ) | |||||||||||||||||||||
Depreciation and amortization | 100 | 88 | 14 | |||||||||||||||||||||||||||||
Operating expenses | 377 | 368 | 3 | 1,121 | 1,109 | 1 | 375 | 368 | 2 | |||||||||||||||||||||||
Operating income | $ | 280 | $ | 261 | 7 | % | $ | 867 | $ | 799 | 9 | % | $ | 292 | $ | 274 | 7 | % |
• | Pricing and Analytics: Our pricing and analytics revenues increased 4% for both the nine and three months ended September 30, 2019, from the comparable periods in 2018. The increase in revenue was driven by the strong retention rate of existing customers, the addition of new customers, increased purchases by existing customers and increases in pricing of our products. This growth was somewhat offset by unfavorable fluctuations in the U.S. dollar compared to the pound sterling and euro. |
• | Exchange Data and Feeds: Our exchange data and feeds revenues increased 6% and 3% for the nine and three months ended September 30, 2019, respectively, from the comparable periods in 2018. The increase in revenue was driven by the strong retention rate of existing customers, the addition of new customers, increased purchases by existing customers, a larger share of the National Market System, or NMS, Plan revenue and increases in pricing of our products. |
• | Desktops and Connectivity: Our desktop and connectivity revenues increased 5% and 9% for the nine and three months ended September 30, 2019, respectively, from the comparable periods in 2018 driven primarily by stronger desktop revenues as well as an increase in revenue from connectivity services including the ICE Global Network. This growth was somewhat offset by unfavorable fluctuations in the U.S. dollar compared to the pound sterling and euro. |
Three Months Ended March 31, | Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
Compensation and benefits | $ | 248 | $ | 240 | 3 | % | $ | 768 | $ | 732 | 5 | % | $ | 261 | $ | 251 | 4 | % | ||||||||||||||
Professional services | 33 | 30 | 13 | 97 | 91 | 6 | 35 | 32 | 7 | |||||||||||||||||||||||
Acquisition-related transaction and integration costs | — | 12 | n/a | 1 | 33 | (96 | ) | — | 6 | (99 | ) | |||||||||||||||||||||
Technology and communication | 107 | 105 | 1 | 346 | 320 | 8 | 126 | 107 | 18 | |||||||||||||||||||||||
Rent and occupancy | 17 | 17 | 5 | 52 | 50 | 3 | 17 | 17 | 1 | |||||||||||||||||||||||
Selling, general and administrative | 42 | 33 | 24 | 116 | 109 | 6 | 33 | 37 | (11 | ) | ||||||||||||||||||||||
Depreciation and amortization | 158 | 138 | 15 | 473 | 429 | 10 | 158 | 148 | 7 | |||||||||||||||||||||||
Total operating expenses | $ | 605 | $ | 575 | 5 | % | $ | 1,853 | $ | 1,764 | 5 | % | $ | 630 | $ | 598 | 5 | % |
Three Months Ended March 31, | ||||||||||
2019 | 2018 | Change | ||||||||
Other income (expense): | ||||||||||
Interest income | $ | 9 | $ | 4 | 139 | % | ||||
Interest expense | (71 | ) | (52 | ) | 35 | |||||
Other income, net | 23 | 15 | 44 | |||||||
Total other income (expense), net | $ | (39 | ) | $ | (33 | ) | 19 | % | ||
Net income attributable to non-controlling interest | $ | (8 | ) | $ | (10 | ) | (15 | )% |
Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest income | $ | 27 | $ | 15 | 79 | % | $ | 8 | $ | 6 | 36 | % | |||||||||
Interest expense | (214 | ) | (173 | ) | 24 | (72 | ) | (66 | ) | 10 | |||||||||||
Other income, net | 30 | 33 | (10 | )% | (2 | ) | 12 | n/a | |||||||||||||
Total other income (expense), net | $ | (157 | ) | $ | (125 | ) | 26 | % | $ | (66 | ) | $ | (48 | ) | 37 | % | |||||
Net income attributable to non-controlling interest | $ | (22 | ) | $ | (24 | ) | (12 | )% | $ | (8 | ) | $ | (7 | ) | (2 | )% |
Three Months Ended, | Three Months Ended, | |||||||||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Energy futures and options contracts | $ | 229 | $ | 257 | $ | 223 | $ | 250 | $ | 235 | $ | 265 | $ | 255 | $ | 229 | $ | 257 | $ | 223 | ||||||||||||||||||
Agricultural and metals futures and options contracts | 62 | 54 | 58 | 74 | 65 | 60 | 72 | 62 | 54 | 58 | ||||||||||||||||||||||||||||
Financial futures and options contracts | 83 | 92 | 77 | 94 | 91 | 91 | 78 | 83 | 92 | 77 | ||||||||||||||||||||||||||||
Cash equities and equity options | 390 | 462 | 335 | 389 | 438 | 401 | 410 | 390 | 462 | 335 | ||||||||||||||||||||||||||||
Fixed income and credit | 87 | 83 | 56 | 45 | 56 | 101 | 80 | 87 | 83 | 56 | ||||||||||||||||||||||||||||
OTC and other transactions | 11 | 13 | 11 | 12 | 13 | 11 | 12 | 11 | 13 | 11 | ||||||||||||||||||||||||||||
Total transaction and clearing, net | 862 | 961 | 760 | 864 | 898 | 929 | 907 | 862 | 961 | 760 | ||||||||||||||||||||||||||||
Pricing and analytics | 266 | 264 | 263 | 262 | 254 | 273 | 270 | 266 | 264 | 263 | ||||||||||||||||||||||||||||
Exchange data and feeds | 176 | 174 | 168 | 164 | 164 | 172 | 180 | 176 | 174 | 168 | ||||||||||||||||||||||||||||
Desktops and connectivity | 104 | 101 | 99 | 100 | 102 | 108 | 103 | 104 | 101 | 99 | ||||||||||||||||||||||||||||
Total data services | 546 | 539 | 530 | 526 | 520 | 553 | 553 | 546 | 539 | 530 | ||||||||||||||||||||||||||||
Listings | 111 | 112 | 112 | 111 | 109 | 114 | 111 | 111 | 112 | 112 | ||||||||||||||||||||||||||||
Other revenues | 64 | 65 | 61 | 55 | 53 | 67 | 63 | 64 | 65 | 61 | ||||||||||||||||||||||||||||
Total Revenues | 1,583 | 1,677 | 1,463 | 1,556 | 1,580 | |||||||||||||||||||||||||||||||||
Total revenues | 1,663 | 1,634 | 1,583 | 1,677 | 1,463 | |||||||||||||||||||||||||||||||||
Transaction-based expenses | 313 | 369 | 263 | 310 | 355 | 327 | 336 | 313 | 369 | 263 | ||||||||||||||||||||||||||||
Total revenues, less transaction-based expenses | 1,270 | 1,308 | 1,200 | 1,246 | 1,225 | 1,336 | 1,298 | 1,270 | 1,308 | 1,200 | ||||||||||||||||||||||||||||
Compensation and benefits | 248 | 262 | 251 | 241 | 240 | 261 | 259 | 248 | 262 | 251 | ||||||||||||||||||||||||||||
Professional services | 33 | 40 | 32 | 29 | 30 | 35 | 29 | 33 | 40 | 32 | ||||||||||||||||||||||||||||
Acquisition-related transaction and integration costs | — | 1 | 6 | 15 | 12 | — | 1 | — | 1 | 6 | ||||||||||||||||||||||||||||
Technology and communication | 107 | 112 | 107 | 108 | 105 | 126 | 113 | 107 | 112 | 107 | ||||||||||||||||||||||||||||
Rent and occupancy | 17 | 18 | 17 | 16 | 17 | 17 | 18 | 17 | 18 | 17 | ||||||||||||||||||||||||||||
Selling, general and administrative | 42 | 42 | 37 | 39 | 33 | 33 | 41 | 42 | 42 | 37 | ||||||||||||||||||||||||||||
Depreciation and amortization | 158 | 157 | 148 | 143 | 138 | 158 | 157 | 158 | 157 | 148 | ||||||||||||||||||||||||||||
Total operating expenses | 605 | 632 | 598 | 591 | �� | 575 | 630 | 618 | 605 | 632 | 598 | |||||||||||||||||||||||||||
Operating income | 665 | 676 | 602 | 655 | 650 | 706 | 680 | 665 | 676 | 602 | ||||||||||||||||||||||||||||
Other income (expense), net (1) | (39 | ) | 62 | (48 | ) | (44 | ) | (33 | ) | (66 | ) | (52 | ) | (39 | ) | 62 | (48 | ) | ||||||||||||||||||||
Income tax expense (benefit) | 134 | 119 | 89 | 149 | 143 | |||||||||||||||||||||||||||||||||
Income tax expense | 103 | 150 | 134 | 119 | 89 | |||||||||||||||||||||||||||||||||
Net income | $ | 492 | $ | 619 | $ | 465 | $ | 462 | $ | 474 | $ | 537 | $ | 478 | $ | 492 | $ | 619 | $ | 465 | ||||||||||||||||||
Net income attributable to non-controlling interest | (8 | ) | (8 | ) | (7 | ) | (7 | ) | (10 | ) | (8 | ) | (6 | ) | (8 | ) | (8 | ) | (7 | ) | ||||||||||||||||||
Net income attributable to Intercontinental, Exchange, Inc. | $ | 484 | $ | 611 | $ | 458 | $ | 455 | $ | 464 | ||||||||||||||||||||||||||||
Net income attributable to Intercontinental Exchange, Inc. | $ | 529 | $ | 472 | $ | 484 | $ | 611 | $ | 458 |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | $ | 654 | $ | 573 | $ | 1,882 | $ | 1,735 | ||||||
Investing activities | (40 | ) | (755 | ) | (512 | ) | (1,617 | ) | ||||||
Financing activities | (596 | ) | 270 | (1,251 | ) | (19 | ) | |||||||
Effect of exchange rate changes | 1 | 2 | (2 | ) | (5 | ) | ||||||||
Net increase in cash, cash equivalents and restricted cash and cash equivalents | $ | 19 | $ | 90 | $ | 117 | $ | 94 |
As of September 30, 2019 | As of December 31, 2018 | |||||||||||||
As of March 31, 2019 | As of December 31, 2018 | (in millions) | ||||||||||||
Debt: | ||||||||||||||
Short-term debt: | ||||||||||||||
Commercial Paper | $ | 1,005 | $ | 951 | $ | 1,318 | $ | 951 | ||||||
Other short-term debt | 11 | — | ||||||||||||
Total short-term debt | 1,005 | 951 | 1,329 | 951 | ||||||||||
Long-term debt: | ||||||||||||||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | 1,247 | 1,246 | 1,247 | 1,246 | ||||||||||
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | 496 | 496 | 497 | 496 | ||||||||||
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | 397 | 397 | 397 | 397 | ||||||||||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | 793 | 793 | 794 | 793 | ||||||||||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | 1,243 | 1,243 | 1,244 | 1,243 | ||||||||||
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | 496 | 496 | 496 | 496 | ||||||||||
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | 592 | 591 | 592 | 591 | ||||||||||
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | 1,228 | 1,228 | 1,229 | 1,228 | ||||||||||
Total long-term debt | 6,492 | 6,490 | 6,496 | 6,490 | ||||||||||
Total debt | $ | 7,497 | $ | 7,441 | $ | 7,825 | $ | 7,441 |
Trading and Clearing Segment | Data and Listings Segment | Consolidated | Trading and Clearing Segment | Data and Listings Segment | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||
Total revenues, less transaction-based expenses | $ | 613 | $ | 596 | $ | 657 | $ | 629 | $ | 1,270 | $ | 1,225 | $ | 1,916 | $ | 1,763 | $ | 1,988 | $ | 1,908 | $ | 3,904 | $ | 3,671 | ||||||||||||||||||||||
Operating expenses | 228 | 207 | 377 | 368 | $ | 605 | $ | 575 | 732 | 655 | 1,121 | 1,109 | 1,853 | 1,764 | ||||||||||||||||||||||||||||||||
Less: Interactive Data integration costs | — | — | — | 12 | — | 12 | ||||||||||||||||||||||||||||||||||||||||
Less: Interactive Data integration costs and acquisition-related success fees | — | 5 | — | 24 | — | 29 | ||||||||||||||||||||||||||||||||||||||||
Less: Amortization of acquisition-related intangibles | 23 | 16 | 54 | 53 | 77 | 69 | 70 | 50 | 164 | 159 | 234 | 209 | ||||||||||||||||||||||||||||||||||
Less: Impairment of exchange registration intangible assets on closure of ICE Futures Canada and ICE Clear Canada | — | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||||||||||||||
Less: Employee severance costs related to ICE Futures Canada and ICE Clear Canada operations | — | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||||||||||||||
Adjusted operating expenses | $ | 205 | $ | 191 | $ | 323 | $ | 303 | $ | 528 | $ | 494 | $ | 662 | $ | 592 | $ | 957 | $ | 926 | $ | 1,619 | $ | 1,518 | ||||||||||||||||||||||
Operating income | $ | 385 | $ | 389 | $ | 280 | $ | 261 | $ | 665 | $ | 650 | $ | 1,184 | $ | 1,108 | $ | 867 | $ | 799 | $ | 2,051 | $ | 1,907 | ||||||||||||||||||||||
Adjusted operating income | $ | 408 | $ | 405 | $ | 334 | $ | 326 | $ | 742 | $ | 731 | $ | 1,254 | $ | 1,171 | $ | 1,031 | $ | 982 | $ | 2,285 | $ | 2,153 | ||||||||||||||||||||||
Operating margin | 63 | % | 65 | % | 43 | % | 42 | % | 52 | % | 53 | % | 62 | % | 63 | % | 44 | % | 42 | % | 53 | % | 52 | % | ||||||||||||||||||||||
Adjusted operating margin | 67 | % | 68 | % | 51 | % | 52 | % | 58 | % | 60 | % | 65 | % | 66 | % | 52 | % | 51 | % | 59 | % | 59 | % | ||||||||||||||||||||||
Net income attributable to ICE common stockholders | $ | 484 | $ | 464 | $ | 1,485 | $ | 1,377 | ||||||||||||||||||||||||||||||||||||||
Add: Interactive Data integration costs | — | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Add: Interactive Data integration costs and acquisition-related success fees | — | 29 | ||||||||||||||||||||||||||||||||||||||||||||
Add: Amortization of acquisition-related intangibles | 77 | 69 | 234 | 209 | ||||||||||||||||||||||||||||||||||||||||||
Add: Impairment of CAT promissory notes | 16 | — | ||||||||||||||||||||||||||||||||||||||||||||
Add: Adjustment to reduce net gain on Trayport divestiture | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||
Add: Impairment of exchange registration intangible assets on closure of ICE Futures Canada and ICE Clear Canada | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Add: Employee severance costs related to ICE Futures Canada and ICE Clear Canada operations | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Less: Income tax effect for the above items | (20 | ) | (21 | ) | (65 | ) | (63 | ) | ||||||||||||||||||||||||||||||||||||||
Less: Deferred tax adjustments on acquisition-related intangibles | (17 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Add: Other tax adjustments | 3 | — | ||||||||||||||||||||||||||||||||||||||||||||
Less: Deferred tax adjustment from U.S. tax rate reduction | — | (12 | ) | |||||||||||||||||||||||||||||||||||||||||||
Add/(Less): Deferred tax adjustment on acquisition-related intangibles | (13 | ) | 5 | |||||||||||||||||||||||||||||||||||||||||||
Add/(Less): Other tax adjustments | 3 | (13 | ) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted net income attributable to ICE common stockholders | $ | 527 | $ | 525 | $ | 1,660 | $ | 1,541 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share attributable to ICE common stockholders | $ | 0.85 | $ | 0.80 | $ | 2.64 | $ | 2.39 | ||||||||||||||||||||||||||||||||||||||
Diluted earnings per share attributable to ICE common stockholders | $ | 0.85 | $ | 0.79 | $ | 2.62 | $ | 2.37 | ||||||||||||||||||||||||||||||||||||||
Adjusted basic earnings per share attributable to ICE common stockholders | $ | 0.93 | $ | 0.90 | $ | 2.95 | $ | 2.67 | ||||||||||||||||||||||||||||||||||||||
Adjusted diluted earnings per share attributable to ICE common stockholders | $ | 0.92 | $ | 0.90 | $ | 2.93 | $ | 2.65 |
Trading and Clearing Segment | Data and Listings Segment | Consolidated | |||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Total revenues, less transaction-based expenses | $ | 669 | $ | 558 | $ | 667 | $ | 642 | $ | 1,336 | $ | 1,200 | |||||||||||
Operating expenses | 255 | 230 | 375 | 368 | 630 | 598 | |||||||||||||||||
Less: Acquisition-related success fees | — | 5 | — | — | — | 5 | |||||||||||||||||
Less: Amortization of acquisition-related intangibles | 24 | 19 | 55 | 53 | 79 | 72 | |||||||||||||||||
Adjusted operating expenses | $ | 231 | $ | 206 | $ | 320 | $ | 315 | $ | 551 | $ | 521 | |||||||||||
Operating income | $ | 414 | $ | 328 | $ | 292 | $ | 274 | $ | 706 | $ | 602 | |||||||||||
Adjusted operating income | $ | 438 | $ | 352 | $ | 347 | $ | 327 | $ | 785 | $ | 679 | |||||||||||
Operating margin | 62 | % | 59 | % | 44 | % | 43 | % | 53 | % | 50 | % | |||||||||||
Adjusted operating margin | 65 | % | 63 | % | 52 | % | 51 | % | 59 | % | 57 | % | |||||||||||
Net income attributable to ICE common stockholders | $ | 529 | $ | 458 | |||||||||||||||||||
Add: Acquisition-related success fees | — | 5 | |||||||||||||||||||||
Add: Amortization of acquisition-related intangibles | 79 | 72 | |||||||||||||||||||||
Add: Impairment of CAT promissory notes | 16 | — | |||||||||||||||||||||
Less: Income tax effect for the above items | (25 | ) | (19 | ) | |||||||||||||||||||
Less: Deferred tax adjustment from U.S. tax rate reduction | — | (12 | ) | ||||||||||||||||||||
Less: Other tax adjustments | — | (13 | ) | ||||||||||||||||||||
Adjusted net income attributable to ICE common stockholders | $ | 599 | $ | 491 | |||||||||||||||||||
Basic earnings per share attributable to ICE common stockholders | $ | 0.95 | $ | 0.80 | |||||||||||||||||||
Diluted earnings per share attributable to ICE common stockholders | $ | 0.94 | $ | 0.79 | |||||||||||||||||||
Adjusted basic earnings per share attributable to ICE common stockholders | $ | 1.07 | $ | 0.86 | |||||||||||||||||||
Adjusted diluted earnings per share attributable to ICE common stockholders | $ | 1.06 | $ | 0.85 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | Nine Months Ended September 30, 2019 | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||
Pound Sterling | Euro | Pound Sterling | Euro | Pound Sterling | Euro | Pound Sterling | Euro | Pound Sterling | Euro | Pound Sterling | Euro | |||||||||||||||||||||||||||||||||||
Average exchange rate to the U.S. dollar in the current year period | $ | 1.3021 | $ | 1.1355 | $ | 1.3918 | $ | 1.2292 | $ | 1.2734 | $ | 1.1237 | $ | 1.2330 | $ | 1.1118 | $ | 1.3520 | $ | 1.1947 | $ | 1.3037 | $ | 1.1631 | ||||||||||||||||||||||
Average exchange rate to the U.S. dollar in the same period in the prior year | $ | 1.3918 | $ | 1.2292 | $ | 1.2396 | $ | 1.0654 | $ | 1.3520 | $ | 1.1947 | $ | 1.3037 | $ | 1.1631 | $ | 1.2760 | $ | 1.1136 | $ | 1.3091 | $ | 1.1752 | ||||||||||||||||||||||
Average exchange rate increase (decrease) | (6 | )% | (8 | )% | 12 | % | 15 | % | (6 | )% | (6 | )% | (5 | )% | (4 | )% | 6 | % | 7 | % | — | % | (1 | )% | ||||||||||||||||||||||
Foreign denominated percentage of: | ||||||||||||||||||||||||||||||||||||||||||||||
Revenues, less transaction-based expenses | 8 | % | 5 | % | 10 | % | 5 | % | 8 | % | 5 | % | 8 | % | 5 | % | 9 | % | 5 | % | 8 | % | 4 | % | ||||||||||||||||||||||
Operating expenses | 10 | % | 2 | % | 12 | % | 2 | % | 10 | % | 2 | % | 10 | % | 2 | % | 11 | % | 2 | % | 11 | % | 2 | % | ||||||||||||||||||||||
Operating income | 7 | % | 8 | % | 8 | % | 7 | % | 7 | % | 8 | % | 7 | % | 8 | % | 7 | % | 7 | % | 6 | % | 7 | % | ||||||||||||||||||||||
Impact of the currency fluctuations (1) on: | ||||||||||||||||||||||||||||||||||||||||||||||
Revenues, less transaction-based expenses | $ | (7 | ) | $ | (6 | ) | $ | 13 | $ | 8 | $ | (20 | ) | $ | (13 | ) | $ | (7 | ) | $ | (3 | ) | $ | 20 | $ | 11 | $ | — | $ | (1 | ) | |||||||||||||||
Operating expenses | $ | (4 | ) | $ | (1 | ) | $ | 7 | $ | 2 | $ | (11 | ) | $ | (3 | ) | $ | (3 | ) | $ | (1 | ) | $ | 11 | $ | 3 | $ | — | $ | — | ||||||||||||||||
Operating income | $ | (3 | ) | $ | (5 | ) | $ | 6 | $ | 6 | $ | (9 | ) | $ | (10 | ) | $ | (4 | ) | $ | (2 | ) | $ | 9 | $ | 8 | $ | — | $ | (1 | ) |
(1) | Represents the impact of currency fluctuation for the nine and three months ended |
As of March 31, 2019 | As of September 30, 2019 | |||||||||||||||||||||
Position in pounds sterling | Position in Canadian dollars | Position in euros | Position in pounds sterling | Position in Canadian dollars | Position in euros | |||||||||||||||||
Assets | £ | 829 | C$ | 1,792 | € | 151 | £ | 825 | C$ | 1,249 | € | 151 | ||||||||||
of which goodwill represents | 632 | 412 | 92 | |||||||||||||||||||
�� of which goodwill represents | 619 | 409 | 92 | |||||||||||||||||||
Liabilities | 81 | 1,380 | 49 | 89 | 831 | 46 | ||||||||||||||||
Net currency position | £ | 748 | C$ | 412 | € | 102 | £ | 736 | C$ | 418 | € | 105 | ||||||||||
Net currency position, in $USD | $ | 975 | $ | 309 | $ | 114 | $ | 905 | $ | 316 | $ | 114 | ||||||||||
Negative impact on consolidated equity of a 10% decrease in foreign currency exchange rates | $ | 98 | $ | 31 | $ | 11 | $ | 90 | $ | 32 | $ | 11 |
Period (2019) | Total number of shares purchased (in thousands) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (in thousands) (1) | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (1) |
July 1 - July 31 | 1,306 | $89.61 | 11,347 | $1,103 |
August 1 - August 31 | 1,289 | $91.44 | 12,636 | $985 |
September 1 - September 30 | 1,135 | $92.62 | 13,771 | $880 |
Total | 3,730 | $91.16 | 13,771 | $880 |
Period (2019) | Total number of shares purchased (in thousands) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (in thousands) | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) |
January 1 - January 31 | 1,570 | $74.51 | 1,570 | $1,883 |
February 1 - February 28 | 2,005 | $75.88 | 3,575 | $1,731 |
March 1 - March 31 | 2,296 | $74.44 | 5,871 | $1,560 |
Total | 5,871 | $74.95 | 5,871 | $1,560 |
Three months ended: | Total number of shares purchased (in thousands) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (in thousands) (1) | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (1) |
March 31, 2019 | 5,871 | $74.95 | 5,871 | $1,560 |
June 30, 2019 | 4,170 | $81.53 | 10,041 | $1,220 |
September 30, 2019 | 3,730 | $91.16 | 13,771 | $880 |
Total | 13,771 | $81.33 | 13,771 | $880 |
(1) | Refer to |
Exhibit Number | Description of Document | |
31.1 | — | |
31.2 | — | |
32.1 | — | |
32.2 | — | |
101 | — | The following materials from Intercontinental Exchange, Inc.’s Quarterly Report on Form 10-Q for the quarter ended |
104 | — | The cover page from Intercontinental Exchange, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, formatted in Inline XBRL. |
Intercontinental Exchange, Inc. (Registrant) | |||
Date: | By: | /s/ Scott A. Hill | |
Scott A. Hill | |||
Chief Financial Officer | |||
(Principal Financial Officer) |