Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36198 | |
Entity Registrant name | INTERCONTINENTAL EXCHANGE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-2286804 | |
Entity Address, Address Line One | 5660 New Northside Drive | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | 770 | |
Local Phone Number | 857-4700 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | ICE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 547,221,813 | |
Entity Central Index Key | 0001571949 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 583 | $ 841 |
Short-term restricted cash and cash equivalents | 999 | 943 |
Customer accounts receivable, net of allowance for doubtful accounts of $22 and $8, respectively | 1,569 | 988 |
Margin deposits, guaranty funds and delivery contracts receivable | 108,863 | 64,987 |
Prepaid expenses and other current assets | 239 | 220 |
Total current assets | 112,253 | 67,979 |
Property and equipment, net | 1,503 | 1,536 |
Other non-current assets: | ||
Goodwill | 13,527 | 13,342 |
Other intangible assets, net | 10,212 | 10,258 |
Long-term restricted cash and cash equivalents | 404 | 404 |
Other non-current assets | 1,002 | 974 |
Total other non-current assets | 25,145 | 24,978 |
Total assets | 138,901 | 94,493 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 548 | 505 |
Section 31 fees payable | 165 | 138 |
Accrued salaries and benefits | 127 | 291 |
Deferred revenue | 504 | 129 |
Short-term debt | 3,071 | 2,569 |
Margin deposits, guaranty funds and delivery contracts payable | 108,863 | 64,987 |
Other current liabilities | 248 | 197 |
Total current liabilities | 113,526 | 68,816 |
Non-current liabilities: | ||
Non-current deferred tax liability, net | 2,312 | 2,314 |
Long-term debt | 5,252 | 5,250 |
Accrued employee benefits | 191 | 198 |
Non-current operating lease liability | 272 | 281 |
Other non-current liabilities | 286 | 270 |
Total non-current liabilities | 8,313 | 8,313 |
Total liabilities | 121,839 | 77,129 |
Commitments and contingencies | ||
Redeemable non-controlling interest in consolidated subsidiaries | 97 | 78 |
Intercontinental Exchange, Inc. stockholders’ equity: | ||
Preferred stock, $0.01 par value; 100 shares authorized; none issued or outstanding at March 31, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.01 par value; 1,500 shares authorized; 609 and 607 issued at March 31, 2020 and December 31, 2019, respectively, and 548 and 554 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 6 | 6 |
Treasury stock, at cost; 61 and 53 shares, respectively | (4,647) | (3,879) |
Additional paid-in capital | 11,810 | 11,742 |
Retained earnings | 10,103 | 9,629 |
Accumulated other comprehensive loss | (333) | (243) |
Total Intercontinental Exchange, Inc. stockholders’ equity | 16,939 | 17,255 |
Non-controlling interest in consolidated subsidiaries | 26 | 31 |
Total equity | 16,965 | 17,286 |
Total liabilities and equity | $ 138,901 | $ 94,493 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 22 | $ 8 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, issued (in shares) | 609,000,000 | 607,000,000 |
Common stock, outstanding (in shares) | 548,000,000 | 554,000,000 |
Treasury stock (in shares) | 61,000,000 | 53,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 2,115 | $ 1,583 |
Transaction-based expenses: | ||
Section 31 fees | 166 | 69 |
Cash liquidity payments, routing and clearing | 390 | 244 |
Total revenues, less transaction-based expenses | 1,559 | 1,270 |
Operating expenses: | ||
Compensation and benefits | 278 | 248 |
Professional services | 29 | 33 |
Acquisition-related transaction and integration costs | 12 | 0 |
Technology and communication | 131 | 107 |
Rent and occupancy | 21 | 17 |
Selling, general and administrative | 49 | 42 |
Depreciation and amortization | 157 | 158 |
Total operating expenses | 677 | 605 |
Operating income | 882 | 665 |
Other income (expense): | ||
Interest income | 6 | 9 |
Interest expense | (72) | (71) |
Other income, net | 20 | 23 |
Other income (expense), net | (46) | (39) |
Income before income tax expense | 836 | 626 |
Income tax expense | 178 | 134 |
Net income | 658 | 492 |
Net income attributable to non-controlling interest | (8) | (8) |
Net income attributable to Intercontinental Exchange, Inc. | $ 650 | $ 484 |
Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders: | ||
Basic (in dollars per share) | $ 1.18 | $ 0.85 |
Diluted (in dollars per share) | $ 1.17 | $ 0.85 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 552 | 568 |
Diluted (in shares) | 555 | 570 |
Transaction and clearing, net | ||
Revenues: | ||
Total revenues | $ 1,364 | $ 862 |
Data services | ||
Revenues: | ||
Total revenues | 564 | 546 |
Listings | ||
Revenues: | ||
Total revenues | 112 | 111 |
Other revenues | ||
Revenues: | ||
Total revenues | $ 75 | $ 64 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 658 | $ 492 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, with no tax benefit for either the three months ended March 31, 2020 or 2019 | (90) | 26 |
Change in equity method investment | 0 | (1) |
Other comprehensive income (loss) | (90) | 25 |
Comprehensive income | 568 | 517 |
Comprehensive income attributable to non-controlling interest | (8) | (8) |
Comprehensive income attributable to Intercontinental Exchange, Inc. | $ 560 | $ 509 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax benefit | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity and Redeemable Non-Controlling Interest - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest in Consolidated Subsidiaries |
Beginning Balance (in shares) at Dec. 31, 2018 | 604,000,000 | 35,000,000 | |||||
Beginning Balance at Dec. 31, 2018 | $ 17,231 | $ 6 | $ (2,354) | $ 11,547 | $ 8,317 | $ (315) | $ 30 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 25 | 25 | |||||
Exercise of common stock options | 5 | 5 | |||||
Repurchases of common stock (in shares) | (6,000,000) | ||||||
Repurchases of common stock | (440) | $ (440) | |||||
Payments relating to treasury shares | (57) | $ (57) | |||||
Stock-based compensation | 33 | 33 | |||||
Issuance under the employee stock purchase plan | 12 | 12 | |||||
Issuance of restricted stock (in shares) | 2,000,000 | ||||||
Distributions of profits | (14) | (14) | |||||
Dividends paid to stockholders | (157) | (157) | |||||
Net income (loss) attributable to non-controlling interest | 0 | (8) | 8 | ||||
Net income | 492 | 492 | |||||
Ending Balance (in shares) at Mar. 31, 2019 | 606,000,000 | 41,000,000 | |||||
Ending Balance at Mar. 31, 2019 | 17,130 | $ 6 | $ (2,851) | 11,597 | 8,644 | (290) | 24 |
Redeemable non-controlling interest, Beginning balance at Dec. 31, 2018 | 71 | ||||||
Redeemable non-controlling interest, Ending balance at Mar. 31, 2019 | $ 71 | ||||||
Beginning Balance (in shares) at Dec. 31, 2019 | 607,000,000 | 607,000,000 | 53,000,000 | ||||
Beginning Balance at Dec. 31, 2019 | $ 17,286 | $ 6 | $ (3,879) | 11,742 | 9,629 | (243) | 31 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (90) | (90) | |||||
Exercise of common stock options | 11 | 11 | |||||
Repurchases of common stock (in shares) | (8,000,000) | ||||||
Repurchases of common stock | (699) | $ (699) | |||||
Payments relating to treasury shares | (69) | $ (69) | |||||
Stock-based compensation | 38 | 38 | |||||
Issuance under the employee stock purchase plan | 16 | 16 | |||||
Warrants issued to minority interest holders | 3 | 3 | |||||
Issuance of restricted stock (in shares) | 2,000,000 | ||||||
Distributions of profits | (15) | (15) | |||||
Dividends paid to stockholders | (166) | (166) | |||||
Net income (loss) attributable to non-controlling interest | 2 | (8) | 10 | ||||
Net income | $ 658 | 658 | |||||
Ending Balance (in shares) at Mar. 31, 2020 | 609,000,000 | 609,000,000 | 61,000,000 | ||||
Ending Balance at Mar. 31, 2020 | $ 16,965 | $ 6 | $ (4,647) | $ 11,810 | $ 10,103 | $ (333) | $ 26 |
Redeemable non-controlling interest, Beginning balance at Dec. 31, 2019 | 78 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Stock-based compensation | 9 | ||||||
Warrants issued to minority interest holders | 2 | ||||||
Redeemable non-controlling interest | 10 | ||||||
Net income (loss) attributable to non-controlling interest | (2) | ||||||
Redeemable non-controlling interest, Ending balance at Mar. 31, 2020 | $ 97 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income | $ 658 | $ 492 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 157 | 158 |
Stock-based compensation | 41 | 29 |
Deferred taxes | (3) | (28) |
Other | (11) | (21) |
Changes in assets and liabilities: | ||
Customer accounts receivable | (600) | (227) |
Other current and non-current assets | (35) | 15 |
Section 31 fees payable | 27 | (35) |
Deferred revenue | 372 | 347 |
Other current and non-current liabilities | (86) | (76) |
Total adjustments | (138) | 162 |
Net cash provided by operating activities | 520 | 654 |
Investing activities: | ||
Capital expenditures | (15) | (26) |
Capitalized software development costs | (44) | (39) |
Cash paid for acquisitions, net of cash acquired | (249) | (19) |
Return of capital from equity method investment | 0 | 44 |
Proceeds from investments, net | 6 | 0 |
Net cash used in investing activities | (302) | (40) |
Financing activities: | ||
Proceeds from commercial paper, net of repayments | 503 | 54 |
Repurchases of common stock | (699) | (440) |
Dividends to stockholders | (166) | (157) |
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises | (69) | (57) |
Other | 20 | 4 |
Net cash used in financing activities | (411) | (596) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | (9) | 1 |
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | (202) | 19 |
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period | 2,188 | 1,872 |
Cash, cash equivalents, and restricted cash and cash equivalents, end of period | 1,986 | 1,891 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes | 127 | 78 |
Cash paid for interest | $ 69 | $ 79 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Nature of Business and Organization We are a leading global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity, financial, fixed income and equity markets. We operate regulated marketplaces for listing, trading and clearing of a broad array of derivatives contracts and securities across major asset classes. These asset classes include: energy and agricultural commodities, metals, interest rates, equities, exchange-traded funds, or ETFs, credit derivatives, digital assets, bonds and currencies We also offer mortgage and technology services to the mortgage industry. In addition, we offer comprehensive data services to support the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2019 . The accompanying unaudited consolidated financial statements reflect all adjustments that are, in our opinion, necessary for a fair presentation of results for the interim periods presented. We believe that these adjustments are of a normal recurring nature. Preparing financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the amounts that are reported in our consolidated financial statements and accompanying disclosures. Actual amounts could differ from those estimates. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for any future period or the full fiscal year. These statements include the accounts of our wholly-owned and controlled subsidiaries. All intercompany balances and transactions between us and our wholly-owned and controlled subsidiaries have been eliminated in consolidation. For consolidated subsidiaries in which our ownership is less than 100% and for which we have control over the assets and liabilities and the management of the entity, the outside stockholders’ interests are shown as non-controlling interests. Where outside owners hold an option to require us to repurchase their interests, these amounts are shown as redeemable non-controlling interests and are subject to remeasurement when repurchase is probable. Recently Adopted Accounting Pronouncements 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 accounts receivable. It 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. We adopted on January 1, 2020 on a modified retrospective basis. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. Further disclosures and details on our adoption are discussed below. ASU 2017-04, Simplifying the Test for Goodwill Impairment, removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation if the fair value of a reporting unit is less than its carrying value. Goodwill impairment will now be measured using the difference between the carrying value and the fair value of the reporting unit, and any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We adopted on January 1, 2020 on a prospective basis. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. The fair values of our reporting units have been greater than their corresponding carrying values in recent years. Changes in future projections, market conditions, and other factors may cause a change in the excess of fair value of our reporting units over their corresponding carrying values. ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance for determining when an arrangement includes a software license and is solely a hosted service. Customers will now apply the same criteria for capitalizing implementation costs as they would for a software license arrangement. The guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. We adopted on January 1, 2020, and will apply the rules prospectively to eligible costs incurred on or after the effective date. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. ASU No. 2019-12, Simplifying the Accounting for Income Taxes , eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It clarifies that single-member limited liability companies, and other similar disregarded entities that are not subject to income tax, are not required to recognize an allocation of consolidated income tax expense in their separate financial statements. Further, it simplifies the accounting for franchise taxes, enacted changes in tax laws or rates and transactions that result in a step-up in the tax basis of goodwill. Effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We elected early adoption and adopted on January 1, 2020. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. Adoption of ASU 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments On January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments , or ASU 2016-13. This standard requires the application of a current expected credit loss, or CECL, impairment model to financial assets measured at amortized cost, including accounts receivable and certain off-balance-sheet credit exposures. The standard also amends the impairment model for available-for-sale debt securities requiring entities to record credit losses through an allowance account. The CECL model requires an entity to estimate its lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. Adoption of the standard requires more timely recognition of credit losses and credit loss estimates are required to use historical information, current information and reasonable and supportable forecasts of future events. We adopted ASU 2016-13 using the modified retrospective approach through a cumulative-effect adjustment to retained earnings on January 1, 2020. ASU 2016-13 primarily impacted the calculation of our allowance for doubtful accounts on accounts receivable utilizing the expected credit losses model. Our adoption of ASU 2016-13 was subject to the same internal controls over financial reporting that we apply to our consolidated financial statements and the impact of our adoption was not material. We do not currently hold available-for-sale debt securities, off-balance-sheet credit exposures, or other material financial assets impacted by the standard, besides those mentioned below. We considered our material financial assets within scope, including our cash equivalents, short-term and long-term restricted cash equivalents as well as our clearing members' cash equivalent and reverse repurchase receivables, and determined that such assets have a de minimis risk of credit loss. We invest our cash and clearing members' cash by placing it in highly-rated government securities, primarily U.S. Treasury securities and other sovereign debt with original maturities of less than three months which we consider to be cash equivalents, or into reverse repurchase agreements, referred to as reverse repos, with primarily overnight maturities. Reverse repos are valued daily and are subject to collateral maintenance provisions whereby the counterparty must provide additional collateral if the value of the underlying securities lose value, in an amount sufficient to maintain collateralization of at least 102% . Therefore, as of and for the quarter ended March 31, 2020 we have not recorded a credit loss for these financial assets. Based on the high turnover and collectability of our accounts receivable, as well as the monthly billing process for the majority of revenue, we did not experience a significant increase in the loss provision recognized upon adoption of the CECL model. Accounts receivable in our futures and clearing businesses have minimal credit risk as all clearing members are pre-screened, collection periods occur within one month and the services to customers are completed almost instantaneously. Our accounts receivable related to market data revenues, cash trading, listing revenues, technology revenues, CDS transaction revenues and bilateral OTC energy transaction revenues subject us to credit losses, but we expeditiously limit our risk of credit loss by taking action such as terminating trading access, terminating public listings or ceasing to distribute data for entities with delinquent accounts. The concentration of risk on our accounts receivable is also mitigated by the high quality and the large number of entities comprising our customer base. We estimated our allowance for doubtful accounts using an aging method, disaggregated based on major revenue stream categories as well as other unique revenue stream factors. The factors for pooling our accounts receivable balances were specific to each revenue stream based on our risk assessment, past patterns of collectability, our knowledge of the business, and customer-specific situations. We apply estimated reserve percentages to the risk pools identified, which are derived from historical write-off factors that are based on the accounts receivable balance’s delinquency status and adjusted as appropriate for our reasonable and supportable estimates of current and future economic conditions. We believe that historical write-off trends provide a basis for estimating future patterns of losses because there have been no significant changes in the mix or risk characteristics of the accounts receivable revenue stream pool populations from the risk pools used to calculate our historical write-off rates. At each measurement date we reassess whether our accounts receivable pools continue to exhibit similar risk characteristics, and determine if assets need to be isolated further as part of their own specific line item reserve due to specific events, such as a customer’s inability to meet its financial obligations (i.e. customer disputes, highly unresponsive customers, delinquency of the receivable, or other indicators of credit deterioration of customers). Lastly, the CECL standard is forward-looking and requires us to factor reasonable and supportable economic expectations into our allowance estimate for the asset's entire expected life which is generally less than one year. A reconciliation of the beginning and ending amount of allowance for doubtful accounts is as follows for the three months ended March 31, 2020 (in millions): Allowance for Doubtful Accounts Beginning balance as of December 31, 2019 $ 8 Impact of adoption of ASU 2016-13 13 Bad debt expense 3 Charge-offs (2 ) Ending balance as of March 31, 2020 $ 22 The impact of adoption of ASU-2016-13 was $10 million , net of tax. This impact was recorded as an adjustment to retained earnings on January 1, 2020 as shown in our Consolidated Statement of Changes in Equity and Redeemable Non-Controlling Interest. We have included in our allowance assessment the impact of and our responses to the COVID-19 pandemic. Our bad debt expense in the table above includes that assessment, the impact of which was not material for the three months ended March 31, 2020 . We will continue to review our accounts receivable and may incur future charge-offs as better estimates become available in future periods. Charge-offs in the table above represent the write-off of uncollectible receivables, net of recoveries. These amounts also include the impact of foreign currency translation adjustments. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On February 21, 2020, we acquired Bridge2 Solutions, a leading provider of loyalty solutions for merchants and consumers. Bridge2 Solutions enables some of the world’s leading brands to engage customers and drive loyalty. It powers incentive and employee perk programs for companies across a wide spectrum of industries. The purchase price has been allocated to the net tangible and identifiable intangible assets and liabilities based on the respective estimated fair values on the date of acquisition. The excess of purchase price over the net tangible and identifiable intangible assets has been recorded as goodwill. Identified intangible assets primarily consist of customer relationships and developed technology, which have been assigned useful lives of twelve years and seven years , respectively. Bridge2 Solutions is included in our Trading and Clearing segment as part of the Bakkt ecosystem. To fund the acquisition of Bridge2 Solutions, Bakkt completed a capital call for $300 million in funding by ICE and the minority investors. This acquisition-related capital call triggered a market condition of certain Bakkt equity incentive awards, and as a result, during the three months ended March 31, 2020 we incurred a $10 million compensation expense related to these awards which has been recorded as an acquisition-related cost. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Our equity investments, including our investments in Euroclear plc, or Euroclear, and Coinbase Global, Inc., among others, are subject to valuation under ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . See Note 14 for a discussion of our determination of fair value of our financial instruments. Investment in OCC We own a 40% interest in the Options Clearing Corporation, or OCC, which is regulated by the SEC and the Commodity Futures Trading Commission, or CFTC, that we treat as an equity method investment. As of March 31, 2020, the OCC is our only equity method investment and is included in other non-current assets in the accompanying consolidated balance sheet. We recognized $17 million and $27 million during the three months ended March 31, 2020 and 2019, respectively, of equity earnings as our share of the OCC's estimated profits, which is included in other income. On February 13, 2019, the SEC disapproved the OCC capital plan that had been established in 2015. Following the SEC disapproval, the OCC also announced that it would not be providing a refund to clearing members or declaring a dividend to shareholders for the year ended December 31, 2018, which resulted in higher reported OCC 2018 net income than we had estimated. Therefore, during the three months ended March 31, 2019 , we adjusted equity earnings in the OCC by $19 million in other income to reflect our share of the OCC's 2018 net income. Refer to Note 4 to our consolidated financial statements included in our 2019 Form 10-K for additional details on our OCC investment. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Substantially all of our revenues are considered to be revenues from contracts with customers. The related accounts receivable balances are recorded in our balance sheets as customer accounts receivable. We do not have obligations for warranties, returns or refunds to customers, other than the rebates discussed below, which are settled each period and therefore do not result in variable consideration. We do not have significant revenue recognized from performance obligations that were satisfied in prior periods, and we do not have any transaction price allocated to unsatisfied performance obligations other than in our deferred revenue. Deferred revenue represents our contract liabilities related to our annual, original and other listings revenues as well as certain data services, clearing services and other revenues. See Note 7 for our discussion of deferred revenue balances, activity, and expected timing of recognition. We have elected not to provide disclosures about transaction price allocated to unsatisfied performance obligations if contract durations are less than one year, or if we are not required to estimate the transaction price. For all of our contracts with customers, except for listings and certain data and clearing services, our performance obligations are short term in nature and there is no significant variable consideration. See the bullets below for further descriptions of our revenue contracts. In addition, we have elected the practical expedient of excluding sales taxes from transaction prices. We have assessed the costs incurred to obtain or fulfill a contract with a customer and determined them to be immaterial. Certain judgments and estimates are used in the identification and timing of satisfaction of performance obligations and the related allocation of transaction price. We believe that these represent a faithful depiction of the transfer of services to our customers. Refer to Note 5 to our consolidated financial statements included in our 2019 Form 10-K where our primary revenue contract classifications are described in detail. The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 15: Trading and Clearing Segment Data and Listings Segment Total Consolidated Three months ended March 31, 2020: Transaction and clearing, net $ 1,364 $ — $ 1,364 Data services — 564 564 Listings — 112 112 Other revenues 75 — 75 Total revenues 1,439 676 2,115 Transaction-based expenses 556 — 556 Total revenues, less transaction-based expenses $ 883 $ 676 $ 1,559 Timing of Revenue Recognition Services transferred at a point in time $ 766 $ — $ 766 Services transferred over time 117 676 793 Total revenues, less transaction-based expenses $ 883 $ 676 $ 1,559 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 The Trading and Clearing segment revenues above include $89 million and $60 million for the three months ended March 31, 2020 and 2019 , respectively, for services transferred over time related to risk management of open interest performance obligations. A majority of these performance obligations are performed over a short period of time of one month or less. Beginning in the second quarter of 2019, we have reflected amounts owed under certain third-party revenue share arrangements as technology and communication operating expenses rather than as had been previously recorded net within transaction and clearing revenues. These are included within our Trading and Clearing segment. Deferred Revenue Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $585 million as of March 31, 2020 , including $504 million in current deferred revenue and $81 million in other non-current liabilities. The changes in our deferred revenue during the three months ended March 31, 2020 are as follows (in millions): Annual Listings Revenues Original Listings Revenues Other Listings Revenues Data Services and Other Revenues Total Deferred revenue balance at December 31, 2019 $ — $ 19 $ 94 $ 88 $ 201 Additions 381 4 21 186 592 Amortization (96 ) (5 ) (11 ) (96 ) (208 ) Deferred revenue balance at March 31, 2020 $ 285 $ 18 $ 104 $ 178 $ 585 The changes in our deferred revenue during the three months ended March 31, 2019 are as follows (in millions): 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 Included in the amortization recognized during the three months ended March 31, 2020 is $44 million related to the deferred revenue balance as of January 1, 2020. Included in the amortization recognized for the three months ended March 31, 2019 is $45 million related to the deferred revenue balance as of January 1, 2019. As of March 31, 2020 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following is a summary of the activity in the goodwill balance for the three months ended March 31, 2020 (in millions): Goodwill balance at December 31, 2019 $ 13,342 Acquisitions 219 Foreign currency translation (36 ) Other activity, net 2 Goodwill balance at March 31, 2020 $ 13,527 The following is a summary of the activity in the other intangible assets balance for the three months ended March 31, 2020 (in millions): Other intangible assets balance at December 31, 2019 $ 10,258 Acquisitions 66 Foreign currency translation (42 ) Amortization of other intangible assets (70 ) Other intangible assets balance at March 31, 2020 $ 10,212 We completed our acquisition of Bridge2 Solutions during the three months ended March 31, 2020 (Note 3). Foreign currency translation adjustments result from a portion of our goodwill and other intangible assets being held at our U.K., EU and Canadian subsidiaries, whose functional currencies are not the U.S. dollar. The change in other activity, net, in the goodwill table above primarily relates to adjustments to the fair value of the net tangible and intangible assets relating to acquisitions, with a corresponding adjustment to goodwill. We have performed an analysis of impairment indicators, including the economic impact of and our responses to the COVID-19 pandemic, and did no t recognize any impairment losses on goodwill or other intangible assets during the three months ended March 31, 2020 |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Revenue Recognition Substantially all of our revenues are considered to be revenues from contracts with customers. The related accounts receivable balances are recorded in our balance sheets as customer accounts receivable. We do not have obligations for warranties, returns or refunds to customers, other than the rebates discussed below, which are settled each period and therefore do not result in variable consideration. We do not have significant revenue recognized from performance obligations that were satisfied in prior periods, and we do not have any transaction price allocated to unsatisfied performance obligations other than in our deferred revenue. Deferred revenue represents our contract liabilities related to our annual, original and other listings revenues as well as certain data services, clearing services and other revenues. See Note 7 for our discussion of deferred revenue balances, activity, and expected timing of recognition. We have elected not to provide disclosures about transaction price allocated to unsatisfied performance obligations if contract durations are less than one year, or if we are not required to estimate the transaction price. For all of our contracts with customers, except for listings and certain data and clearing services, our performance obligations are short term in nature and there is no significant variable consideration. See the bullets below for further descriptions of our revenue contracts. In addition, we have elected the practical expedient of excluding sales taxes from transaction prices. We have assessed the costs incurred to obtain or fulfill a contract with a customer and determined them to be immaterial. Certain judgments and estimates are used in the identification and timing of satisfaction of performance obligations and the related allocation of transaction price. We believe that these represent a faithful depiction of the transfer of services to our customers. Refer to Note 5 to our consolidated financial statements included in our 2019 Form 10-K where our primary revenue contract classifications are described in detail. The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 15: Trading and Clearing Segment Data and Listings Segment Total Consolidated Three months ended March 31, 2020: Transaction and clearing, net $ 1,364 $ — $ 1,364 Data services — 564 564 Listings — 112 112 Other revenues 75 — 75 Total revenues 1,439 676 2,115 Transaction-based expenses 556 — 556 Total revenues, less transaction-based expenses $ 883 $ 676 $ 1,559 Timing of Revenue Recognition Services transferred at a point in time $ 766 $ — $ 766 Services transferred over time 117 676 793 Total revenues, less transaction-based expenses $ 883 $ 676 $ 1,559 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 The Trading and Clearing segment revenues above include $89 million and $60 million for the three months ended March 31, 2020 and 2019 , respectively, for services transferred over time related to risk management of open interest performance obligations. A majority of these performance obligations are performed over a short period of time of one month or less. Beginning in the second quarter of 2019, we have reflected amounts owed under certain third-party revenue share arrangements as technology and communication operating expenses rather than as had been previously recorded net within transaction and clearing revenues. These are included within our Trading and Clearing segment. Deferred Revenue Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $585 million as of March 31, 2020 , including $504 million in current deferred revenue and $81 million in other non-current liabilities. The changes in our deferred revenue during the three months ended March 31, 2020 are as follows (in millions): Annual Listings Revenues Original Listings Revenues Other Listings Revenues Data Services and Other Revenues Total Deferred revenue balance at December 31, 2019 $ — $ 19 $ 94 $ 88 $ 201 Additions 381 4 21 186 592 Amortization (96 ) (5 ) (11 ) (96 ) (208 ) Deferred revenue balance at March 31, 2020 $ 285 $ 18 $ 104 $ 178 $ 585 The changes in our deferred revenue during the three months ended March 31, 2019 are as follows (in millions): 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 Included in the amortization recognized during the three months ended March 31, 2020 is $44 million related to the deferred revenue balance as of January 1, 2020. Included in the amortization recognized for the three months ended March 31, 2019 is $45 million related to the deferred revenue balance as of January 1, 2019. As of March 31, 2020 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our total debt, including short-term and long-term debt, consisted of the following as of March 31, 2020 and December 31, 2019 (in millions): As of As of Debt: Short-term debt: Commercial Paper $ 1,814 $ 1,311 2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) 1,249 1,248 Other short-term debt 8 10 Total short-term debt 3,071 2,569 Long-term debt: 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 498 497 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 398 398 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 795 794 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,244 1,244 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) 592 592 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,229 1,229 Total long-term debt 5,252 5,250 Total debt $ 8,323 $ 7,819 Credit Facilities We have a $3.4 billion senior unsecured revolving credit facility, or the Credit Facility, with a maturity date of August 9, 2023. The Credit Facility includes an option for us to propose an increase in the aggregate amount available for borrowing by up to $975 million , subject to the consent of the lenders funding the increase and certain other conditions. No amounts were outstanding under the Credit Facility as of March 31, 2020 . As of March 31, 2020 , of the $3.4 billion that is currently available for borrowing under the Credit Facility, $1.8 billion is required to back-stop the amount outstanding under our U.S. dollar commercial paper program, or the Commercial Paper Program, and $171 million is required to support certain broker-dealer and other subsidiary commitments. The amount required to back-stop the amounts outstanding under the Commercial Paper Program will fluctuate as we increase or decrease our commercial paper borrowings. The remaining $1.4 billion is available for working capital and general corporate purposes including, but not limited to, acting as a back-stop to future increases in the amounts outstanding under the Commercial Paper Program. Our ICE India subsidiary maintains a $20 million line of credit for its general corporate purposes. As of March 31, 2020 , ICE India had borrowed $8 million , which is reflected as “other short-term debt” in the table above. Commercial Paper Program Our Commercial Paper Program is currently backed by the borrowing capacity available under the Credit Facility, as described above. The effective interest rate of commercial paper issuances does not materially differ from short-term interest rates which fluctuate due to market conditions and as a result may impact our interest expense. During the three months ended March 31, 2020 , we had net issuances of $503 million under the Commercial Paper Program, the proceeds of which were used to fund the acquisition of Bridge2 Solutions and for general corporate purposes. Commercial paper notes of $1.8 billion with original maturities ranging from one to 70 days were outstanding as of March 31, 2020 , with a weighted average interest rate of 1.72% per annum, and a weighted average remaining maturity of 19 |
Shared-Based Compensation
Shared-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Share-Based Compensation | Share-Based Compensation We currently sponsor employee and director stock option, restricted stock and employee stock purchase plans. Stock options and restricted stock are granted at the discretion of the Compensation Committee of our Board of Directors, or Board, based on the estimated fair value on the date of grant. The fair value of the stock options and restricted stock on the date of grant is recognized as expense over the vesting period, net of forfeitures. The non-cash compensation expenses recognized in our consolidated statements of income for stock options, restricted stock and under our employee stock purchase plan were $30 million and $29 million for the three months ended March 31, 2020 and 2019 , respectively. Stock Option Plans The following is a summary of our stock option activity: Number of Options (in thousands) Weighted Average Outstanding at December 31, 2019 3,501 $ 51.87 Granted 413 92.63 Exercised (261 ) 42.09 Forfeited (13 ) 67.00 Outstanding at March 31, 2020 3,640 57.15 Details of stock options outstanding as of March 31, 2020 were as follows: Number of Options (in thousands) Weighted Average Weighted Average Aggregate Vested or expected to vest 3,640 $ 57.15 6.1 $ 91 Exercisable 2,738 $ 48.93 5.1 $ 87 Details of stock options exercised are as follows: Three Months Ended March 31, Options exercised: 2020 2019 Total intrinsic value of options exercised (in millions) $ 13 $ 8 As of March 31, 2020 , there were $13 million in total unrecognized compensation costs related to stock options, which are expected to be recognized over a weighted average period of 2.1 years as the stock options vest. We use the Black-Scholes option pricing model to value our stock option awards. During the three months ended March 31, 2020 and 2019 , we used the assumptions in the table below to compute the value: Three Months Ended March 31, Assumptions: 2020 2019 Risk-free interest rate 1.46 % 2.49 % Expected life in years 5.8 5.9 Expected volatility 20 % 20 % Expected dividend yield 1.30 % 1.44 % Estimated weighted-average fair value of options granted per share $ 16.65 $ 15.45 The risk-free interest rate is based on the zero-coupon U.S. Treasury yield curve in effect at the date of grant. The expected life is derived from historical and anticipated future exercise patterns. Expected volatility is based on historical volatility data of our stock. Restricted Stock Plans Restricted shares are used as an incentive to attract and retain qualified employees and to increase stockholder returns with actual performance linked to both short and long-term stockholder return as well as retention objectives. We issue awards which may contain a combination of time, performance and/or market conditions. The grant date fair value of each award is based on the closing stock price of our stock at the date of grant. For time-based restricted stock, we recognize expense ratably over the vesting period, which is typically three years , net of forfeitures. In February 2020, we reserved a maximum of 0.9 million restricted shares for potential issuance as performance-based restricted shares to certain of our employees. The number of shares ultimately granted under this award will be based on our actual financial performance as compared to financial performance targets set by our Board and the Compensation Committee for the year ending December 31, 2020, and will also be subject to a market condition reduction based on how our 2020 total stockholder return, or TSR, compares to that of the S&P 500 Index. The maximum compensation expense to be recognized under these performance-based restricted shares is $82 million if the maximum financial performance target is met and all 0.9 million shares vest. The compensation expense to be recognized under these performance-based restricted shares will be $41 million if the target financial performance is met, which would result in 0.5 million shares vesting. For these awards with performance conditions, we recognize expense on an accelerated basis over the three -year vesting period based on our quarterly assessment of the probable 2020 actual financial performance as compared to the 2020 financial performance targets. As of March 31, 2020 , our best estimate is that the financial performance level will be above target for 2020 . Based on this assessment, we recorded non-cash compensation expense of $5 million for the three months ended March 31, 2020 related to these awards and the remaining $49 million in non-cash compensation expense will be recorded on an accelerated basis over the remaining vesting period, including $24 million which will be recorded over the remainder of 2020 . We also issue awards with a market condition but no performance condition. The fair value of these awards is estimated based on a simulation of various outcomes and includes inputs such as our stock price on the grant date, the valuation of historical awards with market conditions, the relatively low likelihood that the market condition will affect the number of shares granted (as the market condition only affects shares granted in excess of certain financial performance targets), and our expectation of achieving the financial performance targets. The following is a summary of nonvested restricted shares under all plans discussed above for the three months ended March 31, 2020 : Number of (in thousands) Weighted Average Nonvested at December 31, 2019 3,728 $ 68.87 Granted 1,288 92.57 Vested (1,868) 64.27 Forfeited (45) 73.25 Nonvested at March 31, 2020 3,103 81.41 Performance-based restricted shares have been presented in the table above to reflect the actual shares issued based on the achievement of past performance targets, also considering the impact of any market conditions. Nonvested performance-based restricted shares granted are presented in the table above at the target number of restricted shares that would vest if the performance targets are met. Three Months Ended March 31, 2020 2019 Time-based restricted stock units granted (1) 714 869 Total fair value of restricted stock vested under all restricted stock plans $ 169 $ 149 (1) The remaining shares granted are performance-based. As of March 31, 2020 , there were $184 million in total unrecognized compensation costs related to time-based and performance-based restricted stock. These costs are expected to be recognized over a weighted-average period of 1.9 years as the restricted stock vests. These unrecognized compensation costs assume that a target performance level will be met on the performance-based restricted shares granted in February 2020. Bakkt Incentive Units We sponsor the Bakkt Equity Incentive Plan under which we issue various Bakkt preferred, common and phantom equity unit awards. These awards were made to certain employees and Board members. The units are unvested at the issuance date, are subject to the vesting terms in the award agreements and upon vesting are converted into Bakkt equity or cash. During the three months ended March 31, 2020, the $300 million capital call related to the acquisition of Bridge2 Solutions triggered a market condition of certain of these Bakkt equity incentive awards. The market condition is based on numerous possible Bakkt transaction or event scenarios established on the original date of grant, each of which have a fixed fair market value. Over the life of these awards, we are required to estimate the most likely outcome and reflect the cumulative financial statement impact of any changes between outcomes. As a result, during the three months ended March 31, 2020 we incurred a $10 million compensation expense related to these awards which has been recorded as an acquisition-related cost. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity Stock Repurchase Program In December 2019, our Board approved an aggregate of $2.4 billion for future repurchases of our common stock with no fixed expiration date that became effective on January 1, 2020. The $2.4 billion replaced the previous amount approved by the Board. During the three months ended March 31, 2020 , we repurchased 4.4 million shares of our outstanding common stock at a cost of $400 million under our Rule 10b5-1 trading plan and 3.2 million shares at a cost of $299 million on the open market during an open trading period. As of March 31, 2020 , up to $1.7 billion capacity remains from the Board authorization for repurchases of our common stock. We expect to fund repurchases from our operating cash flow, borrowings under our debt facilities or our Commercial Paper Program. Repurchases may be made from time to time on the open market, through established trading plans, in privately-negotiated transactions or otherwise, in accordance with all applicable securities laws, rules and regulations. We have entered into a Rule 10b5-1 trading plan, as authorized by our Board, to govern some of the repurchases of our shares of common stock. We may discontinue the stock repurchases at any time and may amend or terminate the Rule 10b5-1 trading plan at any time or enter into additional plans. The approval of our Board for the share repurchases does not obligate us to acquire any particular amount of our common stock. In addition, our Board may increase or decrease the amount available for repurchases from time to time. Dividends During the three months ended March 31, 2020 and 2019 , we declared and paid cash dividends per share of $0.30 and $0.275 , respectively, for an aggregate payout of $166 million and $157 million , respectively. The declaration of dividends is subject to the discretion of our Board, and may be affected by various factors, including our future earnings, financial condition, capital requirements, levels of indebtedness, credit ratings, our current and future planned strategic growth initiatives and other considerations which our Board deem relevant. Our Board has adopted a quarterly dividend declaration policy providing that the declaration of any dividends will be determined quarterly by the Board or the Audit Committee, taking into account such factors as our evolving business model, prevailing business conditions and our financial results and capital requirements, without a predetermined annual net income payout ratio. Accumulated Other Comprehensive Income (Loss) The following tables present changes in the accumulated balances for each component of other comprehensive income (loss) (in millions): 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, 2019 $ (177 ) $ 1 $ (67 ) $ (243 ) Other comprehensive income (loss) (90 ) — — (90 ) Income tax benefit (expense) — — — — Net current period other comprehensive income (loss) (90 ) — — (90 ) Balance, as of March 31, 2020 $ (267 ) $ 1 $ (67 ) $ (333 ) 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 ) Other comprehensive income (loss) 26 (1 ) — 25 Income tax benefit (expense) — — — — Net current period other comprehensive income (loss) 26 (1 ) — 25 Balance, as of March 31, 2019 $ (201 ) $ 1 $ (90 ) $ (290 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 21% for both the three months ended March 31, 2020 and 2019 . The 21% effective tax rate for the three months ended March 31, 2020 is based on the existing tax law as of the end of the reporting period and reflects a previously scheduled U.K. corporate income tax rate reduction from 19% to 17% in the current reporting year. The U.K. government has publicly announced its intent to remove this income tax rate reduction, which is expected to be enacted around July 2020. We will account for the income tax impact of that law change upon its enactment. Despite the favorable rate reduction, the effective tax rate is 21% for both comparable periods due to prior period deferred tax benefits related to state apportionment changes. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was enacted and certain income tax related relief was provided under the CARES Act. There is no material impact of the CARES Act on our income tax provision for the three months ended March 31, 2020 . |
Clearing Operations
Clearing Operations | 3 Months Ended |
Mar. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Clearing Operations | Clearing Operations We operate six clearing houses, each of which acts as a central counterparty that becomes the buyer to every seller and the seller to every buyer for its clearing members. Through this central counterparty function, the clearing houses provide financial security for each transaction for the duration of the position by limiting counterparty credit risk. Our clearing houses are responsible for providing clearing services to each of our futures exchanges, and in some cases outside of our execution venues, and are as follows, referred to herein collectively as "the ICE Clearing Houses": 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 and digital assets futures contracts ICE Futures U.S. U.S. ICE Clear Credit OTC 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 and digital assets futures contracts ICE Futures Singapore Singapore ICE NGX Physical North American natural gas, electricity and oil futures ICE NGX Canada Original & Variation Margin Each of the ICE Clearing Houses generally requires all clearing members or participants to deposit collateral in cash or certain pledged assets. The collateral deposits are known as “original margin.” In addition, the ICE Clearing Houses may make intraday original margin calls in circumstances where market conditions require additional protection. The daily profits and losses to and from the ICE Clearing Houses due to the marking-to-market of open contracts is known as “variation margin.” With the exception of ICE NGX’s physical natural gas and physical power products discussed separately below, the ICE Clearing Houses mark all outstanding contracts to market, and therefore pay and collect variation margin, at least once daily. The amounts that the clearing members and participants are required to maintain are determined by proprietary risk models established by each ICE Clearing House and reviewed by the relevant regulators, independent model validators, risk committees and the boards of directors of the respective ICE Clearing House. The amounts required may fluctuate over time. Each of the ICE Clearing Houses is a separate legal entity and is not subject to the liabilities of the others, or the obligations of the members of the other ICE Clearing Houses. Should a particular clearing member or participant fail to deposit its original margin or fail to make a variation margin payment, when and as required, the relevant ICE Clearing House may liquidate or hedge its open positions and use their original margin and guaranty fund deposits to pay any amount owed. In the event that the defaulting clearing member's deposits are not sufficient to pay the amount owed in full, the ICE Clearing Houses will first use their respective contributions to the guaranty fund, often referred to as Skin In The Game, or SITG, to pay any remaining amount owed. In the event that the SITG is not sufficient, the ICE Clearing Houses may utilize the respective guaranty fund deposits, or collect limited additional funds from their respective non-defaulting clearing members on a pro-rata basis, to pay any remaining amount owed. As of March 31, 2020 and December 31, 2019 , the ICE Clearing Houses had received or had been pledged $168.6 billion and $126.0 billion , respectively, in cash and non-cash collateral in original margin and guaranty fund deposits to cover price movements of underlying contracts for both periods. Guaranty Funds & ICE Contribution As described above, mechanisms have been created, called guaranty funds, to provide partial protection in the event of a clearing member default. With the exception of ICE NGX, each of the ICE Clearing Houses requires that each clearing member make deposits into a guaranty fund. In addition, we have contributed our own capital which could be used if a defaulting clearing member’s original margin and guaranty fund deposits are insufficient. Such amounts are recorded as long-term restricted cash and cash equivalents in our balance sheets and are as follows (in millions): ICE Portion of Guaranty Fund Contribution Default insurance Clearing House As of As of As of As of ICE Clear Europe $233 $233 $75 $75 ICE Clear U.S. 103 103 25 25 ICE Clear Credit 50 50 50 50 ICE Clear Netherlands 2 2 N/A N/A ICE Clear Singapore — 1 N/A N/A ICE NGX 15 15 100 100 Total $403 $404 $250 $250 Of our total contribution to ICE Clear U.S. above, $35 million is solely applicable to any losses associated with a default in Bitcoin contracts and other digital asset contracts that ICE Clear U.S. may clear in the future. In September 2019, we added a layer of insurance to our clearing member default protection. The default insurance has a three -year term for the following clearing houses in the following amounts: ICE Clear Credit - $50 million ; ICE Clear Europe - $75 million and, ICE Clear U.S. - $25 million . The default insurance layer resides after and in addition to the ICE Clear Credit, ICE Clear Europe, and ICE Clear U.S. SITG contributions and before the guaranty fund contributions of the non-defaulting clearing members. Similar to SITG, the default insurance layer is not intended to replace or reduce the position risk-based amount of the guaranty fund. As a result, the default insurance layer is not a factor that is included in the calculation of the clearing members’ guaranty fund contribution requirement. Instead, it serves as a new, additional, distinct, and separate default resource that should serve to further protect the non-defaulting clearing members’ guaranty fund contributions from being mutualized in the event of a default. As of March 31, 2020 , ICE NGX maintains a guaranty fund utilizing a $100 million letter of credit and a default insurance policy, discussed below. Cash and Cash Equivalent Deposits We have recorded cash and cash equivalent margin deposits and amounts due in our balance sheets as current assets with corresponding current liabilities to the clearing members. As of March 31, 2020 , our cash and cash equivalent margin deposits are as follows (in millions): ICE Clear Europe (1) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 44,561 $ 40,797 $ 15,375 $ — $ 5 $ 100,738 Unsettled variation margin, net — — — 217 — 217 Guaranty fund 4,449 2,613 494 — 5 7,561 Delivery contracts receivable/payable, net — — — 347 — 347 Total $ 49,010 $ 43,410 $ 15,869 $ 564 $ 10 $ 108,863 As of December 31, 2019 , our cash and cash equivalent margin deposits, are as follows (in millions): ICE Clear Europe (2) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 28,318 $ 22,145 $ 6,802 $ — $ 2 $ 57,267 Unsettled variation margin, net — — — 255 — 255 Guaranty fund 4,144 2,268 463 — 5 6,880 Delivery contracts receivable/payable, net — — — 585 — 585 Total $ 32,462 $ 24,413 $ 7,265 $ 840 $ 7 $ 64,987 (1) $40.0 billion and $9.0 billion is related to futures/options and CDS, respectively. (2) $27.4 billion and $5.1 billion is related to futures/options and CDS, respectively. Our cash and cash equivalent margin and guaranty fund deposits are maintained in accounts with national banks and reputable financial institutions or secured through direct investments, primarily in U.S. Treasury securities with original maturities of less than three months, or reverse repurchase agreements with primarily overnight maturities. To provide a tool to address the liquidity needs of our clearing houses and manage the liquidation of margin and guaranty fund deposits held in the form of cash and high quality sovereign debt, ICE Clear Europe, ICE Clear Credit and ICE Clear U.S. have entered into Committed Repurchase Agreement Facilities, or Committed Repo. Additionally, ICE Clear Credit and ICE Clear Netherlands have entered into Committed FX Facilities to support these liquidity needs. As of March 31, 2020 the following facilities were in place: • 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. Details of our cash and cash equivalent deposits are as follows (in millions): Clearing House Investment Type As of As of ICE Clear Europe National Bank Account (1) $ 11,618 $ 9,667 ICE Clear Europe Reverse repo 27,291 19,187 ICE Clear Europe Sovereign Debt 10,094 3,591 ICE Clear Europe Demand deposits 7 17 ICE Clear Credit National Bank Account 35,183 19,480 ICE Clear Credit Reverse repo 3,035 2,411 ICE Clear Credit Demand deposits 5,192 2,522 ICE Clear U.S. Reverse repo 5,050 4,320 ICE Clear U.S. Sovereign Debt 10,819 2,945 Other ICE Clearing Houses Demand deposits 10 7 ICE NGX Unsettled Variation Margin and Delivery Contracts Receivable/Payable 564 840 Total $ 108,863 $ 64,987 (1) As of March 31, 2020 , ICE Clear Europe held €8.3 billion ( $9.1 billion based on the euro/U.S. dollar exchange rate of 1.1035 as of March 31, 2020 ) at De Nederlandsche Bank, or DNB, £2.0 billion ( $2.5 billion based on the pound sterling/U.S. dollar exchange rate of 1.2414 as of March 31, 2020 ) at the Bank of England, or BOE, and €10 million ( $11 million based on the above exchange rate) at the BOE. As of December 31, 2019, ICE Clear Europe held €8.0 billion ( $9.0 billion based on the euro/U.S. dollar exchange rate of 1.1212 as of December 31, 2019) at DNB, £500 million ( $663 million based on the pound sterling/U.S. dollar exchange rate of 1.3260 as of December 31, 2019) at the BOE and €10 million ( $11 million based on the above exchange rate) at the BOE. Other Deposits In addition to the cash deposits above, the ICE Clearing Houses have also received other assets from clearing members, which include government obligations, and may include other non-cash collateral such as letters of credit at ICE NGX, or gold on rare occasions at ICE Clear Europe, to mitigate credit risk. For certain deposits, we may impose discount or “haircut” rates to ensure adequate collateral if market values fluctuate. The value-related risks and rewards of these assets remain with the clearing members. Any gain or loss accrues to the clearing member. The ICE Clearing Houses do not, in the ordinary course, rehypothecate or re-pledge these assets. These pledged assets are not reflected in our balance sheets, and are as follows (in millions): As of March 31, 2020 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 29,171 $ 11,682 $ 15,100 $ — $ 55,953 Letters of credit — — — 2,184 2,184 ICE NGX cash deposits — — — 260 260 Total $ 29,171 $ 11,682 $ 15,100 $ 2,444 $ 58,397 Guaranty fund: Government securities at face value $ 443 $ 678 $ 213 $ — $ 1,334 As of December 31, 2019 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 30,635 $ 13,710 $ 12,633 $ — $ 56,978 Letters of credit — — — 2,469 2,469 ICE NGX cash deposits — — — 362 362 Total $ 30,635 $ 13,710 $ 12,633 $ 2,831 $ 59,809 Guaranty fund: Government securities at face value $ 475 $ 523 $ 243 $ — $ 1,241 ICE NGX ICE NGX is the central counterparty to participants on opposite sides of its physically-settled contracts, and the balance related to delivered but unpaid contracts is recorded as a delivery contract net receivable, with an offsetting delivery contract net payable in our balance sheets. Unsettled variation margin equal to the fair value of open contracts is recorded as of each balance sheet date. ICE NGX marks all outstanding contracts to market daily, but only collects variation margin when a clearing member's or participant’s open position falls outside a specified percentage of its pledged collateral. ICE NGX requires participants to maintain cash or letters of credit to serve as collateral in the event of default. The cash is maintained in a segregated bank account, held in trust and remains the property of the participant, therefore, it is not included in our balance sheets. ICE NGX maintains the following accounts with a third-party Canadian chartered bank which are available in the event of physical settlement shortfalls, subject to certain conditions: Account Type As of March 31, 2020 (In C$ millions) As of March 31, 2020 (In $USD millions) Daylight liquidity facility C$300 $214 Overdraft facility 20 14 Total C$320 $228 As of March 31, 2020 , ICE NGX maintains a guaranty fund of $100 million funded by a letter of credit issued by a major Canadian chartered bank, and backed by default insurance underwritten by Export Development Canada, or EDC, a Crown corporation operated at arm’s length from the Canadian government. In the event of a participant default where the participant’s collateral is depleted, the shortfall would be covered by a draw down on the letter of credit following which ICE NGX would file a claim under the default insurance to recover additional losses up to $100 million beyond the $15 million first-loss amount that ICE NGX is responsible for under the default insurance policy. Clearing House Exposure Each ICE Clearing House bears financial counterparty credit risk and provides a central counterparty guarantee, or performance guarantee, to its clearing members or participants. To reduce their exposure, the ICE Clearing Houses have a risk management program with both initial and ongoing membership standards. Excluding the effects of original and variation margin, guaranty fund and collateral requirements, the ICE Clearing Houses’ maximum estimated exposure for this guarantee is $149.5 billion as of March 31, 2020 , which represents the maximum estimated value by the ICE Clearing Houses of a hypothetical one-day movement in pricing of the underlying unsettled contracts. This value was determined using proprietary risk management software that simulates gains and losses based on historical market prices, volatility and other factors present at that point in time for those particular unsettled contracts. Future actual market price volatility could result in the exposure being significantly different than this amount. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings We are subject to legal proceedings, claims and investigations that arise in the ordinary course of our business. These include the matters described in Part I, Item 3 “Legal Proceedings” and Note 15 to the consolidated financial statements in Part II, Item 8 of our 2019 Form 10-K. We record estimated expenses and reserves for those matters in circumstances when a loss contingency is considered probable and the related amount is reasonably estimable. Any such accruals may be adjusted as circumstances change. Assessments of losses are inherently subjective and involve unpredictable factors. We do not believe that the resolution of these legal matters, including the matters described below, will have a material adverse effect on our consolidated financial condition, results of operations, or liquidity. It is possible, however, that future results of operations for any particular quarterly or annual period could be materially and adversely affected by any developments relating to the legal proceedings, claims and investigations. A range of possible losses related to the cases below cannot be reasonably estimated at this time, except as otherwise disclosed below. LIBOR Litigation On January 15, 2019 and January 31, 2019, two virtually identical purported class action complaints were filed by, respectively, Putnam Bank, a savings bank based in Putnam, Connecticut, and two municipal pension funds affiliated with the City of Livonia, Michigan in the U.S. District Court for the Southern District of New York against ICE and several of its subsidiaries, including ICE Benchmark Administration Limited (“IBA”) (the “ICE Defendants”), as well as 18 multinational banks and various of their respective subsidiaries and affiliates (the “Panel Bank Defendants”). On March 4, 2019, a virtually identical complaint was filed on behalf of four retirement and benefit funds affiliated with the Hawaii Sheet Metal Workers Union. IBA is the administrator for various regulated benchmarks, including the ICE LIBOR benchmark that is calculated daily based upon the submissions from a reference panel (which includes the Panel Bank Defendants). On July 1, 2019, the various plaintiffs referenced above filed a consolidated amended complaint against the ICE and Panel Bank Defendants. The plaintiffs seek to litigate on behalf of a purported class of all U.S.-based persons or entities who transacted with a Panel Bank Defendant by receiving a payment on an interest rate indexed to a one-month or three-month USD LIBOR-benchmarked rate during the period from February 1, 2014 to the present. The plaintiffs allege that the ICE and Panel Bank Defendants engaged in a conspiracy to set the LIBOR benchmark at artificially low levels, with an alleged purpose and effect of depressing payments by the Panel Bank Defendants to members of the purported class. As with the individual complaints, the consolidated amended complaint asserts a claim for violations of the Sherman and Clayton Antitrust Acts and seeks unspecified treble damages and other relief. The ICE and Panel Bank Defendants filed motions to dismiss the consolidated amended complaint on August 30, 2019. The district court heard oral arguments on the motions on January 30, 2020, and on March 26, 2020 the court issued a decision and order granting the ICE and Panel Bank Defendants' motions to dismiss for failure to state a claim. Among other things, the court found that the amended complaint “…is made up of almost entirely conclusory allegations and is essentially devoid of any evidence, direct or circumstantial, to support the conclusion that Defendants colluded with one another.” On April 24, 2020, the plaintiffs filed a notice of appeal of the district court’s decision. ICE intends to oppose the appeal and to continue to vigorously defend the matter. City of Providence Litigation In the City of Providence litigation, the district court entered an order on May 28, 2019 denying the motions to dismiss filed by the defendant exchanges (which include New York Stock Exchange LLC and NYSE Arca, Inc., two of our subsidiaries). The exchanges filed a motion in the district court on June 17, 2019 asking the court to certify the matter for an immediate appeal to the U.S. Court of Appeals for the Second Circuit and on July 16, 2019, the court denied the exchanges' motion. On July 25, 2019, the exchanges filed answers to the second amended complaint, denying the principal allegations of the plaintiffs, denying liability in the matter, and asserting various affirmative defenses. The discovery period in the matter commenced and is scheduled to continue through 2020. For further information on the City of Providence litigation, see our 2019 Form 10-K. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Our financial instruments consist primarily of certain short-term and long-term assets and liabilities, customer accounts receivable, margin deposits and guaranty funds, equity investments, and short-term and long-term debt. The fair value of our financial instruments is measured based on a three-level hierarchy: • 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. Financial assets and liabilities recorded or disclosed at fair value in the accompanying consolidated balance sheets as of March 31, 2020 and December 31, 2019 were classified in their entirety based on the lowest level of input that is significant to the asset or liability’s fair value measurement. As of March 31, 2020, we considered the impacts of the COVID-19 pandemic on our fair value assessments, and determined no impairment indicators to be present. We will continue to monitor these fair values in future periods if, or as, circumstances change. Our mutual funds are equity and fixed income mutual funds held for the purpose of providing future payments for the supplemental executive savings plan and the supplemental executive retirement plan. These mutual funds are classified as equity investments and measured at fair value using Level 1 inputs with adjustments recorded in net income. MERS is part of our ICE Mortgage Services business and as of March 31, 2020 and December 31, 2019 , held fixed income investments as part of a reserve fund in order to satisfy the original terms of the governing documents of our June 2016 acquisition of a majority equity position in MERS. The majority of these investments are held in U.S. Treasuries and measured at fair value using Level 1 inputs with adjustments recorded to other current liabilities. The remaining amount of the reserve fund is held in other fixed income investments and measured using Level 2 inputs. Excluding our equity investments without a readily determinable fair value, all other financial instruments are determined to approximate carrying value due to the short period of time to their maturities. We did not use Level 3 inputs to determine the fair value of assets or liabilities measured at fair value on a recurring basis as of March 31, 2020 or December 31, 2019 . We measure certain assets, such as intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value if they are deemed to be impaired. As of March 31, 2020 and December 31, 2019 , none of our intangible assets were required to be recorded at fair value since no impairments were recorded. We measure certain equity investments at fair value on a non-recurring basis using our policy election under ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. During the three months ended March 31, 2020 , we evaluated transactions involving these investments and qualitative considerations of impairment as discussed above and concluded that no fair value adjustments were required under this election. See Note 12 for the fair value considerations related to our margin deposits, guaranty funds and delivery contracts receivable. The table below displays the fair value of our debt as of March 31, 2020 . The fair values of our fixed rate notes were estimated using quoted market prices for these instruments. The fair value of our commercial paper includes a discount and other short-term debt approximates par value since the interest rates on this short-term debt approximate market rates as of March 31, 2020 . As of March 31, 2020 (in millions) Debt: Carrying Amount Fair value Commercial Paper $ 1,814 $ 1,820 Other short-term debt 8 8 2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) 1,249 1,252 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 498 509 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 398 421 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 795 866 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,244 1,321 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) 592 641 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,229 1,454 Total debt $ 8,323 $ 8,816 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate two reportable business segments: our Trading and Clearing segment and our Data and Listings segment. This presentation is reflective of how our chief operating decision maker reviews and operates our business. Our Trading and Clearing segment comprises our transaction-based execution and clearing businesses. Our Data and Listings segment comprises our data services and our securities listings businesses, which are both largely subscription-based. Our chief operating decision maker does not review total assets or statements of income below operating income by segments; therefore, such information is not presented below. Our two segments do not engage in intersegment transactions. Financial data for our business segments is as follows for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Trading and Clearing Segment Data and Listings Segment Consolidated Trading and Clearing Segment Data and Listings Segment Consolidated Revenues: Energy futures and options contracts $ 353 $ — $ 353 $ 229 $ — $ 229 Agricultural and metals futures and options contracts 84 — 84 62 — 62 Financial futures and options contracts 123 — 123 83 — 83 Cash equities and equity options 669 — 669 390 — 390 Fixed income and credit 122 — 122 87 — 87 OTC and other transactions 13 — 13 11 — 11 Pricing and analytics — 276 276 — 266 266 Exchange data and feeds — 180 180 — 176 176 Desktops and connectivity — 108 108 — 104 104 Listings — 112 112 — 111 111 Other revenues 75 — 75 64 — 64 Revenues 1,439 676 2,115 926 657 1,583 Transaction-based expenses 556 — 556 313 — 313 Revenues, less transaction-based expenses 883 676 1,559 613 657 1,270 Operating expenses 310 367 677 228 377 605 Operating income $ 573 $ 309 $ 882 $ 385 $ 280 $ 665 Revenue from two clearing members of the Trading and Clearing segment comprised $212 million , or 24% of our Trading and Clearing revenues, less transaction-based expenses for the three months ended March 31, 2020 . Revenue from one clearing member of the Trading and Clearing segment comprised $95 million , or 16% of our Trading and Clearing revenues, less transaction-based expenses for the three months ended March 31, 2019 . Clearing members are primarily intermediaries and represent a broad range of principal trading firms. If a clearing member ceased its operations, we believe that the trading firms would continue to conduct transactions and would clear those transactions through another clearing member firm. No additional customers or clearing members accounted for more than 10% of our segment revenues or consolidated revenues for the three months ended March 31, 2020 and 2019 . |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per common share computations for the three months ended March 31, 2020 and 2019 (in millions, except per share amounts): Three Months Ended March 31, 2020 2019 Basic: Net income attributable to Intercontinental Exchange, Inc. $ 650 $ 484 Weighted average common shares outstanding 552 568 Basic earnings per common share $ 1.18 $ 0.85 Diluted: Weighted average common shares outstanding 552 568 Effect of dilutive securities - stock options and restricted shares 3 2 Diluted weighted average common shares outstanding 555 570 Diluted earnings per common share $ 1.17 $ 0.85 Basic earnings per common share is calculated using the weighted average common shares outstanding during the period. Common equivalent shares from stock options and restricted stock awards, using the treasury stock method, are included in the diluted per share calculations unless the effect of their inclusion would be antidilutive. During the three months ended March 31, 2020 and 2019 , 246,000 and 813,000 outstanding stock options, respectively, were not included in the computation of diluted earnings per common share, because to do so would have had an antidilutive effect. In addition, under the Bakkt Equity Incentive Plan we have excluded preferred and common incentive units because they are also antidilutive. Certain figures in the table above may not recalculate due to rounding. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events and determined that no other events or transactions met the definition of a subsequent event for purposes of recognition or disclosure in the accompanying consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2019 . The accompanying unaudited consolidated financial statements reflect all adjustments that are, in our opinion, necessary for a fair presentation of results for the interim periods presented. We believe that these adjustments are of a normal recurring nature. Preparing financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the amounts that are reported in our consolidated financial statements and accompanying disclosures. Actual amounts could differ from those estimates. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for any future period or the full fiscal year. These statements include the accounts of our wholly-owned and controlled subsidiaries. All intercompany balances and transactions between us and our wholly-owned and controlled subsidiaries have been eliminated in consolidation. For consolidated subsidiaries in which our ownership is less than 100% and for which we have control over the assets and liabilities and the management of the entity, the outside stockholders’ interests are shown as non-controlling interests. Where outside owners hold an option to require us to repurchase their interests, these amounts are shown as redeemable non-controlling interests and are subject to remeasurement when repurchase is probable. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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 accounts receivable. It 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. We adopted on January 1, 2020 on a modified retrospective basis. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. Further disclosures and details on our adoption are discussed below. ASU 2017-04, Simplifying the Test for Goodwill Impairment, removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation if the fair value of a reporting unit is less than its carrying value. Goodwill impairment will now be measured using the difference between the carrying value and the fair value of the reporting unit, and any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We adopted on January 1, 2020 on a prospective basis. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. The fair values of our reporting units have been greater than their corresponding carrying values in recent years. Changes in future projections, market conditions, and other factors may cause a change in the excess of fair value of our reporting units over their corresponding carrying values. ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance for determining when an arrangement includes a software license and is solely a hosted service. Customers will now apply the same criteria for capitalizing implementation costs as they would for a software license arrangement. The guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. We adopted on January 1, 2020, and will apply the rules prospectively to eligible costs incurred on or after the effective date. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. ASU No. 2019-12, Simplifying the Accounting for Income Taxes , eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It clarifies that single-member limited liability companies, and other similar disregarded entities that are not subject to income tax, are not required to recognize an allocation of consolidated income tax expense in their separate financial statements. Further, it simplifies the accounting for franchise taxes, enacted changes in tax laws or rates and transactions that result in a step-up in the tax basis of goodwill. Effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We elected early adoption and adopted on January 1, 2020. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. Adoption of ASU 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments On January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments , or ASU 2016-13. This standard requires the application of a current expected credit loss, or CECL, impairment model to financial assets measured at amortized cost, including accounts receivable and certain off-balance-sheet credit exposures. The standard also amends the impairment model for available-for-sale debt securities requiring entities to record credit losses through an allowance account. The CECL model requires an entity to estimate its lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. Adoption of the standard requires more timely recognition of credit losses and credit loss estimates are required to use historical information, current information and reasonable and supportable forecasts of future events. We adopted ASU 2016-13 using the modified retrospective approach through a cumulative-effect adjustment to retained earnings on January 1, 2020. ASU 2016-13 primarily impacted the calculation of our allowance for doubtful accounts on accounts receivable utilizing the expected credit losses model. Our adoption of ASU 2016-13 was subject to the same internal controls over financial reporting that we apply to our consolidated financial statements and the impact of our adoption was not material. We do not currently hold available-for-sale debt securities, off-balance-sheet credit exposures, or other material financial assets impacted by the standard, besides those mentioned below. We considered our material financial assets within scope, including our cash equivalents, short-term and long-term restricted cash equivalents as well as our clearing members' cash equivalent and reverse repurchase receivables, and determined that such assets have a de minimis risk of credit loss. We invest our cash and clearing members' cash by placing it in highly-rated government securities, primarily U.S. Treasury securities and other sovereign debt with original maturities of less than three months which we consider to be cash equivalents, or into reverse repurchase agreements, referred to as reverse repos, with primarily overnight maturities. Reverse repos are valued daily and are subject to collateral maintenance provisions whereby the counterparty must provide additional collateral if the value of the underlying securities lose value, in an amount sufficient to maintain collateralization of at least 102% . Therefore, as of and for the quarter ended March 31, 2020 we have not recorded a credit loss for these financial assets. Based on the high turnover and collectability of our accounts receivable, as well as the monthly billing process for the majority of revenue, we did not experience a significant increase in the loss provision recognized upon adoption of the CECL model. Accounts receivable in our futures and clearing businesses have minimal credit risk as all clearing members are pre-screened, collection periods occur within one month and the services to customers are completed almost instantaneously. Our accounts receivable related to market data revenues, cash trading, listing revenues, technology revenues, CDS transaction revenues and bilateral OTC energy transaction revenues subject us to credit losses, but we expeditiously limit our risk of credit loss by taking action such as terminating trading access, terminating public listings or ceasing to distribute data for entities with delinquent accounts. The concentration of risk on our accounts receivable is also mitigated by the high quality and the large number of entities comprising our customer base. We estimated our allowance for doubtful accounts using an aging method, disaggregated based on major revenue stream categories as well as other unique revenue stream factors. The factors for pooling our accounts receivable balances were specific to each revenue stream based on our risk assessment, past patterns of collectability, our knowledge of the business, and customer-specific situations. We apply estimated reserve percentages to the risk pools identified, which are derived from historical write-off factors that are based on the accounts receivable balance’s delinquency status and adjusted as appropriate for our reasonable and supportable estimates of current and future economic conditions. We believe that historical write-off trends provide a basis for estimating future patterns of losses because there have been no significant changes in the mix or risk characteristics of the accounts receivable revenue stream pool populations from the risk pools used to calculate our historical write-off rates. At each measurement date we reassess whether our accounts receivable pools continue to exhibit similar risk characteristics, and determine if assets need to be isolated further as part of their own specific line item reserve due to specific events, such as a customer’s inability to meet its financial obligations (i.e. customer disputes, highly unresponsive customers, delinquency of the receivable, or other indicators of credit deterioration of customers). Lastly, the CECL standard is forward-looking and requires us to factor reasonable and supportable economic expectations into our allowance estimate for the asset's entire expected life which is generally less than one year. A reconciliation of the beginning and ending amount of allowance for doubtful accounts is as follows for the three months ended March 31, 2020 (in millions): Allowance for Doubtful Accounts Beginning balance as of December 31, 2019 $ 8 Impact of adoption of ASU 2016-13 13 Bad debt expense 3 Charge-offs (2 ) Ending balance as of March 31, 2020 $ 22 The impact of adoption of ASU-2016-13 was $10 million , net of tax. This impact was recorded as an adjustment to retained earnings on January 1, 2020 as shown in our Consolidated Statement of Changes in Equity and Redeemable Non-Controlling Interest. We have included in our allowance assessment the impact of and our responses to the COVID-19 pandemic. Our bad debt expense in the table above includes that assessment, the impact of which was not material for the three months ended March 31, 2020 . We will continue to review our accounts receivable and may incur future charge-offs as better estimates become available in future periods. Charge-offs in the table above represent the write-off of uncollectible receivables, net of recoveries. These amounts also include the impact of foreign currency translation adjustments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Recently Adopted Accounting Pronouncements 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 accounts receivable. It 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. We adopted on January 1, 2020 on a modified retrospective basis. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. Further disclosures and details on our adoption are discussed below. ASU 2017-04, Simplifying the Test for Goodwill Impairment, removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation if the fair value of a reporting unit is less than its carrying value. Goodwill impairment will now be measured using the difference between the carrying value and the fair value of the reporting unit, and any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We adopted on January 1, 2020 on a prospective basis. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. The fair values of our reporting units have been greater than their corresponding carrying values in recent years. Changes in future projections, market conditions, and other factors may cause a change in the excess of fair value of our reporting units over their corresponding carrying values. ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance for determining when an arrangement includes a software license and is solely a hosted service. Customers will now apply the same criteria for capitalizing implementation costs as they would for a software license arrangement. The guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. We adopted on January 1, 2020, and will apply the rules prospectively to eligible costs incurred on or after the effective date. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. ASU No. 2019-12, Simplifying the Accounting for Income Taxes , eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It clarifies that single-member limited liability companies, and other similar disregarded entities that are not subject to income tax, are not required to recognize an allocation of consolidated income tax expense in their separate financial statements. Further, it simplifies the accounting for franchise taxes, enacted changes in tax laws or rates and transactions that result in a step-up in the tax basis of goodwill. Effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We elected early adoption and adopted on January 1, 2020. We have evaluated this guidance to determine the impact on our consolidated financial statements. Based on our assessment, we concluded the impact of adoption of this guidance is not material to us as of March 31, 2020. |
Schedule of Reconciliation of Allowance for Doubtful Accounts | A reconciliation of the beginning and ending amount of allowance for doubtful accounts is as follows for the three months ended March 31, 2020 (in millions): Allowance for Doubtful Accounts Beginning balance as of December 31, 2019 $ 8 Impact of adoption of ASU 2016-13 13 Bad debt expense 3 Charge-offs (2 ) Ending balance as of March 31, 2020 $ 22 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Recognition | The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 15: Trading and Clearing Segment Data and Listings Segment Total Consolidated Three months ended March 31, 2020: Transaction and clearing, net $ 1,364 $ — $ 1,364 Data services — 564 564 Listings — 112 112 Other revenues 75 — 75 Total revenues 1,439 676 2,115 Transaction-based expenses 556 — 556 Total revenues, less transaction-based expenses $ 883 $ 676 $ 1,559 Timing of Revenue Recognition Services transferred at a point in time $ 766 $ — $ 766 Services transferred over time 117 676 793 Total revenues, less transaction-based expenses $ 883 $ 676 $ 1,559 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 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedules of Intangible Assets and Goodwill | The following is a summary of the activity in the goodwill balance for the three months ended March 31, 2020 (in millions): Goodwill balance at December 31, 2019 $ 13,342 Acquisitions 219 Foreign currency translation (36 ) Other activity, net 2 Goodwill balance at March 31, 2020 $ 13,527 The following is a summary of the activity in the other intangible assets balance for the three months ended March 31, 2020 (in millions): Other intangible assets balance at December 31, 2019 $ 10,258 Acquisitions 66 Foreign currency translation (42 ) Amortization of other intangible assets (70 ) Other intangible assets balance at March 31, 2020 $ 10,212 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Deferred Revenue | The changes in our deferred revenue during the three months ended March 31, 2020 are as follows (in millions): Annual Listings Revenues Original Listings Revenues Other Listings Revenues Data Services and Other Revenues Total Deferred revenue balance at December 31, 2019 $ — $ 19 $ 94 $ 88 $ 201 Additions 381 4 21 186 592 Amortization (96 ) (5 ) (11 ) (96 ) (208 ) Deferred revenue balance at March 31, 2020 $ 285 $ 18 $ 104 $ 178 $ 585 The changes in our deferred revenue during the three months ended March 31, 2019 are as follows (in millions): 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 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our total debt, including short-term and long-term debt, consisted of the following as of March 31, 2020 and December 31, 2019 (in millions): As of As of Debt: Short-term debt: Commercial Paper $ 1,814 $ 1,311 2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) 1,249 1,248 Other short-term debt 8 10 Total short-term debt 3,071 2,569 Long-term debt: 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 498 497 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 398 398 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 795 794 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,244 1,244 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) 592 592 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,229 1,229 Total long-term debt 5,252 5,250 Total debt $ 8,323 $ 7,819 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Stock Options | The following is a summary of our stock option activity: Number of Options (in thousands) Weighted Average Outstanding at December 31, 2019 3,501 $ 51.87 Granted 413 92.63 Exercised (261 ) 42.09 Forfeited (13 ) 67.00 Outstanding at March 31, 2020 3,640 57.15 |
Details of Stock Options Outstanding | Details of stock options outstanding as of March 31, 2020 were as follows: Number of Options (in thousands) Weighted Average Weighted Average Aggregate Vested or expected to vest 3,640 $ 57.15 6.1 $ 91 Exercisable 2,738 $ 48.93 5.1 $ 87 Details of stock options exercised are as follows: Three Months Ended March 31, Options exercised: 2020 2019 Total intrinsic value of options exercised (in millions) $ 13 $ 8 |
Stock Options Valuation Assumptions | During the three months ended March 31, 2020 and 2019 , we used the assumptions in the table below to compute the value: Three Months Ended March 31, Assumptions: 2020 2019 Risk-free interest rate 1.46 % 2.49 % Expected life in years 5.8 5.9 Expected volatility 20 % 20 % Expected dividend yield 1.30 % 1.44 % Estimated weighted-average fair value of options granted per share $ 16.65 $ 15.45 |
Summary of Nonvested Restricted Stock Options | The following is a summary of nonvested restricted shares under all plans discussed above for the three months ended March 31, 2020 : Number of (in thousands) Weighted Average Nonvested at December 31, 2019 3,728 $ 68.87 Granted 1,288 92.57 Vested (1,868) 64.27 Forfeited (45) 73.25 Nonvested at March 31, 2020 3,103 81.41 Performance-based restricted shares have been presented in the table above to reflect the actual shares issued based on the achievement of past performance targets, also considering the impact of any market conditions. Nonvested performance-based restricted shares granted are presented in the table above at the target number of restricted shares that would vest if the performance targets are met. Three Months Ended March 31, 2020 2019 Time-based restricted stock units granted (1) 714 869 Total fair value of restricted stock vested under all restricted stock plans $ 169 $ 149 (1) The remaining shares granted are performance-based. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive income (loss) (in millions): 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, 2019 $ (177 ) $ 1 $ (67 ) $ (243 ) Other comprehensive income (loss) (90 ) — — (90 ) Income tax benefit (expense) — — — — Net current period other comprehensive income (loss) (90 ) — — (90 ) Balance, as of March 31, 2020 $ (267 ) $ 1 $ (67 ) $ (333 ) 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 ) Other comprehensive income (loss) 26 (1 ) — 25 Income tax benefit (expense) — — — — Net current period other comprehensive income (loss) 26 (1 ) — 25 Balance, as of March 31, 2019 $ (201 ) $ 1 $ (90 ) $ (290 ) |
Clearing Operations (Tables)
Clearing Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Schedule of Clearing Houses Information | Our clearing houses are responsible for providing clearing services to each of our futures exchanges, and in some cases outside of our execution venues, and are as follows, referred to herein collectively as "the ICE Clearing Houses": 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 and digital assets futures contracts ICE Futures U.S. U.S. ICE Clear Credit OTC 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 and digital assets futures contracts ICE Futures Singapore Singapore ICE NGX Physical North American natural gas, electricity and oil futures ICE NGX Canada |
Schedule Of Guaranty Fund Contribution and Default Insurance | Such amounts are recorded as long-term restricted cash and cash equivalents in our balance sheets and are as follows (in millions): ICE Portion of Guaranty Fund Contribution Default insurance Clearing House As of As of As of As of ICE Clear Europe $233 $233 $75 $75 ICE Clear U.S. 103 103 25 25 ICE Clear Credit 50 50 50 50 ICE Clear Netherlands 2 2 N/A N/A ICE Clear Singapore — 1 N/A N/A ICE NGX 15 15 100 100 Total $403 $404 $250 $250 |
Schedule of Margin Deposits and Guaranty Funds Assets | As of March 31, 2020 , our cash and cash equivalent margin deposits are as follows (in millions): ICE Clear Europe (1) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 44,561 $ 40,797 $ 15,375 $ — $ 5 $ 100,738 Unsettled variation margin, net — — — 217 — 217 Guaranty fund 4,449 2,613 494 — 5 7,561 Delivery contracts receivable/payable, net — — — 347 — 347 Total $ 49,010 $ 43,410 $ 15,869 $ 564 $ 10 $ 108,863 As of December 31, 2019 , our cash and cash equivalent margin deposits, are as follows (in millions): ICE Clear Europe (2) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 28,318 $ 22,145 $ 6,802 $ — $ 2 $ 57,267 Unsettled variation margin, net — — — 255 — 255 Guaranty fund 4,144 2,268 463 — 5 6,880 Delivery contracts receivable/payable, net — — — 585 — 585 Total $ 32,462 $ 24,413 $ 7,265 $ 840 $ 7 $ 64,987 (1) $40.0 billion and $9.0 billion is related to futures/options and CDS, respectively. (2) $27.4 billion and $5.1 billion is related to futures/options and CDS, respectively. |
Schedule of Cash and Cash Equivalents | Details of our cash and cash equivalent deposits are as follows (in millions): Clearing House Investment Type As of As of ICE Clear Europe National Bank Account (1) $ 11,618 $ 9,667 ICE Clear Europe Reverse repo 27,291 19,187 ICE Clear Europe Sovereign Debt 10,094 3,591 ICE Clear Europe Demand deposits 7 17 ICE Clear Credit National Bank Account 35,183 19,480 ICE Clear Credit Reverse repo 3,035 2,411 ICE Clear Credit Demand deposits 5,192 2,522 ICE Clear U.S. Reverse repo 5,050 4,320 ICE Clear U.S. Sovereign Debt 10,819 2,945 Other ICE Clearing Houses Demand deposits 10 7 ICE NGX Unsettled Variation Margin and Delivery Contracts Receivable/Payable 564 840 Total $ 108,863 $ 64,987 (1) As of March 31, 2020 , ICE Clear Europe held €8.3 billion ( $9.1 billion based on the euro/U.S. dollar exchange rate of 1.1035 as of March 31, 2020 ) at De Nederlandsche Bank, or DNB, £2.0 billion ( $2.5 billion based on the pound sterling/U.S. dollar exchange rate of 1.2414 as of March 31, 2020 ) at the Bank of England, or BOE, and €10 million ( $11 million based on the above exchange rate) at the BOE. As of December 31, 2019, ICE Clear Europe held €8.0 billion ( $9.0 billion based on the euro/U.S. dollar exchange rate of 1.1212 as of December 31, 2019) at DNB, £500 million ( $663 million based on the pound sterling/U.S. dollar exchange rate of 1.3260 as of December 31, 2019) at the BOE and €10 million ( $11 million based on the above exchange rate) at the BOE. |
Schedule of Assets Pledged by Clearing Members | These pledged assets are not reflected in our balance sheets, and are as follows (in millions): As of March 31, 2020 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 29,171 $ 11,682 $ 15,100 $ — $ 55,953 Letters of credit — — — 2,184 2,184 ICE NGX cash deposits — — — 260 260 Total $ 29,171 $ 11,682 $ 15,100 $ 2,444 $ 58,397 Guaranty fund: Government securities at face value $ 443 $ 678 $ 213 $ — $ 1,334 As of December 31, 2019 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 30,635 $ 13,710 $ 12,633 $ — $ 56,978 Letters of credit — — — 2,469 2,469 ICE NGX cash deposits — — — 362 362 Total $ 30,635 $ 13,710 $ 12,633 $ 2,831 $ 59,809 Guaranty fund: Government securities at face value $ 475 $ 523 $ 243 $ — $ 1,241 |
Schedule of Financial Instruments Owned and Pledged as Collateral | ICE NGX maintains the following accounts with a third-party Canadian chartered bank which are available in the event of physical settlement shortfalls, subject to certain conditions: Account Type As of March 31, 2020 (In C$ millions) As of March 31, 2020 (In $USD millions) Daylight liquidity facility C$300 $214 Overdraft facility 20 14 Total C$320 $228 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair values of our fixed rate notes were estimated using quoted market prices for these instruments. The fair value of our commercial paper includes a discount and other short-term debt approximates par value since the interest rates on this short-term debt approximate market rates as of March 31, 2020 . As of March 31, 2020 (in millions) Debt: Carrying Amount Fair value Commercial Paper $ 1,814 $ 1,820 Other short-term debt 8 8 2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) 1,249 1,252 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 498 509 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 398 421 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 795 866 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,244 1,321 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) 592 641 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,229 1,454 Total debt $ 8,323 $ 8,816 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial data for our business segments is as follows for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Trading and Clearing Segment Data and Listings Segment Consolidated Trading and Clearing Segment Data and Listings Segment Consolidated Revenues: Energy futures and options contracts $ 353 $ — $ 353 $ 229 $ — $ 229 Agricultural and metals futures and options contracts 84 — 84 62 — 62 Financial futures and options contracts 123 — 123 83 — 83 Cash equities and equity options 669 — 669 390 — 390 Fixed income and credit 122 — 122 87 — 87 OTC and other transactions 13 — 13 11 — 11 Pricing and analytics — 276 276 — 266 266 Exchange data and feeds — 180 180 — 176 176 Desktops and connectivity — 108 108 — 104 104 Listings — 112 112 — 111 111 Other revenues 75 — 75 64 — 64 Revenues 1,439 676 2,115 926 657 1,583 Transaction-based expenses 556 — 556 313 — 313 Revenues, less transaction-based expenses 883 676 1,559 613 657 1,270 Operating expenses 310 367 677 228 377 605 Operating income $ 573 $ 309 $ 882 $ 385 $ 280 $ 665 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Common Share | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per common share computations for the three months ended March 31, 2020 and 2019 (in millions, except per share amounts): Three Months Ended March 31, 2020 2019 Basic: Net income attributable to Intercontinental Exchange, Inc. $ 650 $ 484 Weighted average common shares outstanding 552 568 Basic earnings per common share $ 1.18 $ 0.85 Diluted: Weighted average common shares outstanding 552 568 Effect of dilutive securities - stock options and restricted shares 3 2 Diluted weighted average common shares outstanding 555 570 Diluted earnings per common share $ 1.17 $ 0.85 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||||
Collateral maintenance provision percentage | 102.00% | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption of ASU 2016-13, net of tax | $ (16,965) | $ (17,286) | $ (17,130) | $ (17,231) | |
Cumulative Effect, Period Of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption of ASU 2016-13, net of tax | $ 10 | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption of ASU 2016-13, net of tax | $ (10,103) | $ (9,629) | $ (8,644) | $ (8,317) | |
Retained Earnings | Cumulative Effect, Period Of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption of ASU 2016-13, net of tax | $ 10 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation of Allowance for Doubtful Accounts (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Allowance for doubtful accounts, beginning balance | $ 8 |
Bad debt expense | 3 |
Charge-offs | (2) |
Allowance for doubtful accounts, ending balance | 22 |
Cumulative Effect, Period Of Adoption, Adjustment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Allowance for doubtful accounts, beginning balance | $ 13 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Feb. 21, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||
Acquisition costs | $ 12 | $ 0 | ||
Bridge2 Solutions | ||||
Business Acquisition [Line Items] | ||||
Acquisition costs | $ 10 | |||
Bakkt | Bridge2 Solutions | ||||
Business Acquisition [Line Items] | ||||
Capital call amount | $ 300 | |||
Customer Relationships | Bakkt | Bridge2 Solutions | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets (in years) | 12 years | |||
Developed Technology | Bakkt | Bridge2 Solutions | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets (in years) | 7 years |
Investments - Narrative (Detail
Investments - Narrative (Details) - Options Clearing Corporation - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment ownership percentage | 40.00% | |
2019 Net Income | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity earnings in other income | $ 17 | $ 27 |
2018 Net Income | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity earnings in other income | $ 19 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2,115 | $ 1,583 |
Interest rates and other financial futures and options contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,364 | 862 |
Trading and Clearing Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,439 | 926 |
Trading and Clearing Segment | Interest rates and other financial futures and options contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,364 | 862 |
Trading and Clearing Segment | Interest rates and other financial futures and options contracts | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 89 | $ 60 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2,115 | $ 1,583 |
Transaction-based expenses | 556 | 313 |
Total revenues, less transaction-based expenses | 1,559 | 1,270 |
Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 766 | 528 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 793 | 742 |
Trading and Clearing Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,439 | 926 |
Transaction-based expenses | 556 | 313 |
Total revenues, less transaction-based expenses | 883 | 613 |
Trading and Clearing Segment | Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 766 | 528 |
Trading and Clearing Segment | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 117 | 85 |
Data and Listings Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 676 | 657 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 676 | 657 |
Data and Listings Segment | Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 0 | 0 |
Data and Listings Segment | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 676 | 657 |
Transaction and clearing, net | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,364 | 862 |
Transaction and clearing, net | Trading and Clearing Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,364 | 862 |
Transaction and clearing, net | Trading and Clearing Segment | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 89 | 60 |
Transaction and clearing, net | Data and Listings Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Data services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 564 | 546 |
Data services | Trading and Clearing Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Data services | Data and Listings Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 564 | 546 |
Listings | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 112 | 111 |
Listings | Trading and Clearing Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Listings | Data and Listings Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 112 | 111 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 75 | 64 |
Other revenues | Trading and Clearing Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 75 | 64 |
Other revenues | Data and Listings Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 0 | $ 0 |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Related to Investor Relations Performance Obligations Recognized (Details) | Mar. 31, 2020 |
Services transferred over time | Interest rates and other financial futures and options contracts | Trading and Clearing Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 month |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill balance at December 31, 2019 | $ 13,342 |
Acquisitions | 219 |
Foreign currency translation | (36) |
Other activity, net | 2 |
Goodwill balance at March 31, 2020 | $ 13,527 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Other intangible assets balance at December 31, 2019 | $ 10,258 |
Acquisitions | 66 |
Foreign currency translation | (42) |
Amortization of other intangible assets | (70) |
Other intangible assets balance at March 31, 2020 | $ 10,212 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment loss recognized on goodwill or other intangible assets | $ 0 |
Deferred Revenue - Narrative (D
Deferred Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Total deferred revenue | $ 585 | $ 565 | $ 201 | $ 217 |
Deferred revenue, current | 504 | $ 129 | ||
Noncurrent deferred revenue | 81 | |||
Revenue recognized | $ 44 | $ 45 |
Deferred Revenue - Schedule of
Deferred Revenue - Schedule of Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | $ 201 | $ 217 |
Additions | 592 | 544 |
Amortization | (208) | (196) |
Ending balance | 585 | 565 |
Annual Listings Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 0 | 0 |
Additions | 381 | 382 |
Amortization | (96) | (96) |
Ending balance | 285 | 286 |
Original Listings Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 19 | 25 |
Additions | 4 | 3 |
Amortization | (5) | (6) |
Ending balance | 18 | 22 |
Other Listings Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 94 | 100 |
Additions | 21 | 20 |
Amortization | (11) | (9) |
Ending balance | 104 | 111 |
Data Services and Other Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 88 | 92 |
Additions | 186 | 139 |
Amortization | (96) | (85) |
Ending balance | $ 178 | $ 146 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Short-term debt: | ||
Commercial Paper | $ 1,814 | $ 1,311 |
Other short-term debt | 8 | 10 |
Total short-term debt | 3,071 | 2,569 |
Long-term debt: | ||
Senior notes | 8,323 | |
Total long-term debt | 5,252 | 5,250 |
Total debt | $ 8,323 | 7,819 |
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.75% | |
Long-term debt: | ||
Senior notes | $ 1,249 | |
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.35% | |
Long-term debt: | ||
Senior notes | $ 498 | |
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.45% | |
Long-term debt: | ||
Senior notes | $ 398 | |
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.00% | |
Long-term debt: | ||
Senior notes | $ 795 | |
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Long-term debt: | ||
Senior notes | $ 1,244 | |
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.10% | |
Long-term debt: | ||
Senior notes | $ 496 | |
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Long-term debt: | ||
Senior notes | $ 592 | |
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.25% | |
Long-term debt: | ||
Senior notes | $ 1,229 | |
Senior Notes | 2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.75% | |
Short-term debt: | ||
Short-term debt | $ 1,249 | 1,248 |
Senior Notes | 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.35% | |
Long-term debt: | ||
Senior notes | $ 498 | 497 |
Senior Notes | 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.45% | |
Long-term debt: | ||
Senior notes | $ 398 | 398 |
Senior Notes | 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.00% | |
Long-term debt: | ||
Senior notes | $ 795 | 794 |
Senior Notes | 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Long-term debt: | ||
Senior notes | $ 1,244 | 1,244 |
Senior Notes | 2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.10% | |
Long-term debt: | ||
Senior notes | $ 496 | 496 |
Senior Notes | 2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Long-term debt: | ||
Senior notes | $ 592 | 592 |
Senior Notes | 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.25% | |
Long-term debt: | ||
Senior notes | $ 1,229 | $ 1,229 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | |||
Other short-term debt | $ 8,000,000 | $ 10,000,000 | |
Proceeds from commercial paper | 503,000,000 | $ 54,000,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 3,400,000,000 | ||
Additional borrowing capacity (up to) | 975,000,000 | ||
Amount of debt outstanding | 0 | ||
Amount required to stop broker-dealer subsidiary commitments | 171,000,000 | ||
Funds available to use for working capital and general and corporate purposes | 1,400,000,000 | ||
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 20,000,000 | ||
Other short-term debt | 8,000,000 | ||
Commercial Paper | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Funds reserved for commercial paper program | $ 1,800,000,000 | ||
Weighted average interest rate | 1.72% | ||
Weighted average maturity period | 19 days | ||
Commercial Paper | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Commercial paper maturities | 1 day | ||
Commercial Paper | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Commercial paper maturities | 70 days | ||
BondPoint and TMC Bonds | |||
Line of Credit Facility [Line Items] | |||
Proceeds from commercial paper | $ 503,000,000 |
Shared-Based Compensation - Nar
Shared-Based Compensation - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2020 | Feb. 29, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | ||||
Non-cash expense recognized | $ 30 | $ 29 | ||
Acquisition costs | $ 12 | $ 0 | ||
Time Based Restricted Units | ||||
Class of Stock [Line Items] | ||||
Cost not yet recognized, period for recognition | 3 years | |||
Performance Based Restricted Stock Units | ||||
Class of Stock [Line Items] | ||||
Unrecognized compensation expense | $ 49 | $ 41 | $ 49 | |
Cost not yet recognized, period for recognition | 3 years | |||
Vested stock options (in shares) | 0.5 | |||
Stock-based compensation | 5 | |||
Amount of non-cash compensation remaining in fiscal period | 24 | 24 | ||
Time Based And Performance Based Restricted Stock | ||||
Class of Stock [Line Items] | ||||
Unrecognized compensation expense | 184 | $ 184 | ||
Cost not yet recognized, period for recognition | 1 year 10 months 24 days | |||
Maximum | Performance Based Restricted Stock Units | ||||
Class of Stock [Line Items] | ||||
Unrecognized compensation expense | $ 82 | |||
Shares reserved for future issuance (in shares) | 0.9 | |||
Employee Stock Option | ||||
Class of Stock [Line Items] | ||||
Unrecognized compensation expense | 13 | $ 13 | ||
Cost not yet recognized, period for recognition | 2 years 1 month 6 days | |||
Bridge2 Solutions | ||||
Class of Stock [Line Items] | ||||
Acquisition costs | $ 10 | |||
Bridge2 Solutions | Bakkt | ||||
Class of Stock [Line Items] | ||||
Capital call amount | $ 300 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Options (in thousands) | |
Outstanding beginning balance (in shares) | shares | 3,501 |
Granted (in shares) | shares | 413 |
Exercised (in shares) | shares | (261) |
Forfeited (in shares) | shares | (13) |
Outstanding ending balance (in shares) | shares | 3,640 |
Weighted Average Exercise Price per Option | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 51.87 |
Granted (in dollars per share) | $ / shares | 92.63 |
Exercised (in dollars per share) | $ / shares | 42.09 |
Forfeited (in dollars per share) | $ / shares | 67 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 57.15 |
Share-Based Compensation - Deta
Share-Based Compensation - Details of Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Vested or expected to vest | |
Number of Options (in shares) | shares | 3,640 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 57.15 |
Weighted Average Remaining Contractual Life | 6 years 1 month 6 days |
Aggregate Intrinsic Value | $ | $ 91 |
Exercisable | |
Number of Options (in shares) | shares | 2,738 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 48.93 |
Weighted Average Remaining Contractual Life | 5 years 1 month 6 days |
Aggregate Intrinsic Value | $ | $ 87 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Options Exercised (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 13 | $ 8 |
Share-Based Compensation - Valu
Share-Based Compensation - Valuation Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Risk-free interest rate | 1.46% | 2.49% |
Expected life in years | 5 years 9 months 18 days | 5 years 10 months 24 days |
Expected volatility | 20.00% | 20.00% |
Expected dividend yield | 1.30% | 1.44% |
Estimated weighted-average fair value of options granted per share (in dollars per share) | $ 16.65 | $ 15.45 |
Share-Based Compensation - Nonv
Share-Based Compensation - Nonvested Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Number of Restricted Shares (in thousands) | ||
Non-vested beginning balance (in shares) | 3,728 | |
Granted (in shares) | 1,288 | |
Vested (in shares) | (1,868) | |
Forfeited (in shares) | (45) | |
Non-vested ending balance (in shares) | 3,103 | |
Weighted Average Grant-Date Fair Value per Share | ||
Non-vested beginning balance (in dollars per share) | $ 68.87 | |
Granted (in dollars per share) | 92.57 | |
Vested (in dollars per share) | 64.27 | |
Forfeited (in dollars per share) | 73.25 | |
Non-vested ending balance (in dollars per share) | $ 81.41 | |
Granted (in shares) | 1,288 | |
Time Based Restricted Units | ||
Number of Restricted Shares (in thousands) | ||
Granted (in shares) | 714 | 869 |
Weighted Average Grant-Date Fair Value per Share | ||
Granted (in shares) | 714 | 869 |
Total fair value of restricted stock vested under all restricted stock plans | $ 169 | $ 149 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 2,400 | ||
Repurchases of common stock | $ 699 | $ 440 | |
Stock repurchase program, remaining authorized amount | $ 1,700 | ||
Cash dividends per share (in dollars per share) | $ 0.30 | $ 0.275 | |
Aggregate payout | $ 166 | $ 157 | |
Rule 10b5-1 Trading Plan | |||
Class of Stock [Line Items] | |||
Repurchases of common stock (in shares) | 4.4 | ||
Repurchases of common stock | $ 400 | ||
Open Market | |||
Class of Stock [Line Items] | |||
Repurchases of common stock (in shares) | 3.2 | ||
Repurchases of common stock | $ 299 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 17,286 | $ 17,231 |
Other comprehensive income (loss) | (90) | 25 |
Ending Balance | 16,965 | 17,130 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (177) | (227) |
Other comprehensive income (loss) | (90) | 26 |
Income tax benefit (expense) | 0 | 0 |
Other comprehensive income (loss) | (90) | 26 |
Ending Balance | (267) | (201) |
Comprehensive income from equity method investment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 1 | 2 |
Other comprehensive income (loss) | 0 | (1) |
Income tax benefit (expense) | 0 | 0 |
Other comprehensive income (loss) | 0 | (1) |
Ending Balance | 1 | 1 |
Employee benefit plans adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (67) | (90) |
Other comprehensive income (loss) | 0 | 0 |
Income tax benefit (expense) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Ending Balance | (67) | (90) |
Accumulated other comprehensive loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (243) | (315) |
Other comprehensive income (loss) | (90) | 25 |
Income tax benefit (expense) | 0 | 0 |
Other comprehensive income (loss) | (90) | 25 |
Ending Balance | $ (333) | $ (290) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21.00% | 21.00% |
Clearing Operations - Narrative
Clearing Operations - Narrative (Details) € in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($)clearing_house | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
Principal Transaction Revenue [Line Items] | ||||
Number of clearing houses | clearing_house | 6 | |||
Margin deposits and guaranty funds assets received or pledged | $ 168,600,000,000 | $ 126,000,000,000 | ||
Default insurance term (in years) | 3 years | |||
Default insurance | $ 250,000,000 | 250,000,000 | ||
Maximum exposure, undiscounted | 149,500,000,000 | |||
ICE NGX | ||||
Principal Transaction Revenue [Line Items] | ||||
Default insurance | 100,000,000 | 100,000,000 | ||
First-loss amount | 15,000,000 | |||
ICE Clear Europe | ||||
Principal Transaction Revenue [Line Items] | ||||
Default insurance | 75,000,000 | 75,000,000 | $ 75,000,000 | |
Committed repo | 1,000,000,000 | |||
ICE Clear Credit | ||||
Principal Transaction Revenue [Line Items] | ||||
Default insurance | 50,000,000 | $ 50,000,000 | 50,000,000 | |
Committed repo | 300,000,000 | € 250 | ||
Committed FX facilities | € | 1,900 | |||
ICE Clear U.S. | ||||
Principal Transaction Revenue [Line Items] | ||||
Contribution applicable to any losses associated with a default in Bitcoin contracts and other digital asset contracts | 35,000,000 | |||
Default insurance | $ 25,000,000 | |||
Committed repo | 250,000,000 | |||
ICE Clear Netherlands | ||||
Principal Transaction Revenue [Line Items] | ||||
Committed FX facilities | € | € 10 | |||
Letter of Credit | ICE NGX | ||||
Principal Transaction Revenue [Line Items] | ||||
Debt instrument, face amount | 100,000,000 | |||
Additional losses under insurance policy | $ 100,000,000 |
Clearing Operations - Guaranty
Clearing Operations - Guaranty Fund Contributions and Default Insurance (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | $ 403 | $ 404 | |
Default insurance | 250 | 250 | |
ICE Clear Europe | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 233 | 233 | |
Default insurance | 75 | 75 | $ 75 |
ICE Clear U.S. | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 103 | 103 | |
Default insurance | 25 | 25 | |
ICE Clear Credit | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 50 | 50 | |
Default insurance | 50 | 50 | $ 50 |
ICE Clear Netherlands | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 2 | 2 | |
ICE Clear Singapore | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 0 | 1 | |
ICE NGX | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 15 | 15 | |
Default insurance | $ 100 | $ 100 |
Clearing Operations - Cash and
Clearing Operations - Cash and Cash Equivalent Deposits (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Clearing Organizations [Line Items] | ||
Original margin | $ 100,738 | $ 57,267 |
Unsettled variation margin, net | 217 | 255 |
Guaranty fund | 7,561 | 6,880 |
Delivery contracts receivable/payable, net | 347 | 585 |
Total | 108,863 | 64,987 |
ICE Clear Europe | ||
Clearing Organizations [Line Items] | ||
Original margin | 44,561 | 28,318 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 4,449 | 4,144 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 49,010 | 32,462 |
ICE Clear Credit | ||
Clearing Organizations [Line Items] | ||
Original margin | 40,797 | 22,145 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 2,613 | 2,268 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 43,410 | 24,413 |
ICE Clear U.S. | ||
Clearing Organizations [Line Items] | ||
Original margin | 15,375 | 6,802 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 494 | 463 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 15,869 | 7,265 |
ICE NGX | ||
Clearing Organizations [Line Items] | ||
Original margin | 0 | 0 |
Unsettled variation margin, net | 217 | 255 |
Guaranty fund | 0 | 0 |
Delivery contracts receivable/payable, net | 347 | 585 |
Total | 564 | 840 |
Other ICE Clearing Houses | ||
Clearing Organizations [Line Items] | ||
Original margin | 5 | 2 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 5 | 5 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 10 | 7 |
Futures and options | ICE Clear Europe | ||
Clearing Organizations [Line Items] | ||
Total | 40,000 | 27,400 |
CDS | ICE Clear Europe | ||
Clearing Organizations [Line Items] | ||
Total | $ 9,000 | $ 5,100 |
Clearing Operations - Separate
Clearing Operations - Separate Cash Accounts (Details) € in Millions, £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020GBP (£) | Mar. 31, 2020EUR (€) | Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | |
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 108,863 | $ 64,987 | ||||
National Bank Account | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 11,618 | 9,667 | ||||
National Bank Account | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 35,183 | 19,480 | ||||
Reverse repo | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 27,291 | 19,187 | ||||
Reverse repo | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 3,035 | 2,411 | ||||
Reverse repo | ICE Clear U.S. | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 5,050 | 4,320 | ||||
Sovereign Debt | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 10,094 | 3,591 | ||||
Sovereign Debt | ICE Clear U.S. | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 10,819 | 2,945 | ||||
Demand deposits | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 7 | 17 | ||||
Demand deposits | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 5,192 | 2,522 | ||||
Demand deposits | Other ICE Clearing Houses | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 10 | 7 | ||||
Unsettled Variation Margin and Delivery Contracts Receivable/Payable | ICE NGX | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 564 | 840 | ||||
Cash Deposit Based On Euro/US Dollar Exchange Rate | De Nederlandsche Bank | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 9,100 | $ 9,000 | € 8,300 | € 8,000 | ||
Exchange rate to USD | 1.1035 | 1.1212 | ||||
Cash Deposit Based On Euro/US Dollar Exchange Rate | Bank of England | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 11 | $ 11 | € 10 | € 10 | ||
Cash Deposit Based On Pound Sterling/US Dollar Exchange Rate | Bank of England | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 2,500 | $ 663 | £ 2,000 | £ 500 | ||
Exchange rate to USD | 1.2414 | 1.3260 |
Clearing Operations - Assets Pl
Clearing Operations - Assets Pledged by Clearing Members (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Original Margin | ||
Original margin: | ||
Government securities at face value | $ 55,953 | $ 56,978 |
Letters of credit | 2,184 | 2,469 |
ICE NGX cash deposits | 260 | 362 |
Total | 58,397 | 59,809 |
Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 1,334 | 1,241 |
ICE Clear Europe | Original Margin | ||
Original margin: | ||
Government securities at face value | 29,171 | 30,635 |
Letters of credit | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 29,171 | 30,635 |
ICE Clear Europe | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 443 | 475 |
ICE Clear Credit | Original Margin | ||
Original margin: | ||
Government securities at face value | 11,682 | 13,710 |
Letters of credit | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 11,682 | 13,710 |
ICE Clear Credit | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 678 | 523 |
ICE Clear U.S. | Original Margin | ||
Original margin: | ||
Government securities at face value | 15,100 | 12,633 |
Letters of credit | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 15,100 | 12,633 |
ICE Clear U.S. | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 213 | 243 |
ICE NGX | Original Margin | ||
Original margin: | ||
Government securities at face value | 0 | 0 |
Letters of credit | 2,184 | 2,469 |
ICE NGX cash deposits | 260 | 362 |
Total | 2,444 | 2,831 |
ICE NGX | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | $ 0 | $ 0 |
Clearing Operations - Cash as C
Clearing Operations - Cash as Collateral with NGX (Details) - Mar. 31, 2020 - ICE NGX $ in Millions, $ in Millions | USD ($) | CAD ($) |
Clearing Organizations [Line Items] | ||
Daylight liquidity facility | $ 214 | $ 300 |
Overdraft facility | 14 | 20 |
Total | $ 228 | $ 320 |
Legal Proceedings (Details)
Legal Proceedings (Details) | Mar. 04, 2019retirement_and_benefit_fund | Jan. 31, 2019lawsuitmultinational_bankmunicipal_pension_fund |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of class action lawsuits | lawsuit | 2 | |
Number of retirement and benefit funds | municipal_pension_fund | 2 | |
Number of multinational banks | multinational_bank | 18 | |
Number of retirement and benefit funds | retirement_and_benefit_fund | 4 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of commercial paper | $ 1,814 | $ 1,311 |
Fair value of commercial paper | 1,820 | |
Carrying value of other short-term debt | 8 | $ 10 |
Fair value of other short-term debt | 8 | |
Carrying amount of debt | 8,323 | |
Fair value of debt | $ 8,816 | |
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 2.75% | |
Carrying amount of debt | $ 1,249 | |
Fair value of debt | $ 1,252 | |
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 2.35% | |
Carrying amount of debt | $ 498 | |
Fair value of debt | $ 509 | |
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.45% | |
Carrying amount of debt | $ 398 | |
Fair value of debt | $ 421 | |
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 4.00% | |
Carrying amount of debt | $ 795 | |
Fair value of debt | $ 866 | |
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Carrying amount of debt | $ 1,244 | |
Fair value of debt | $ 1,321 | |
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.10% | |
Carrying amount of debt | $ 496 | |
Fair value of debt | $ 524 | |
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Carrying amount of debt | $ 592 | |
Fair value of debt | $ 641 | |
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 4.25% | |
Carrying amount of debt | $ 1,229 | |
Fair value of debt | $ 1,454 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segmentmember | Mar. 31, 2019USD ($)member | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenues: | ||
Total revenues | $ 2,115 | $ 1,583 |
Transaction-based expenses | 556 | 313 |
Total revenues, less transaction-based expenses | 1,559 | 1,270 |
Operating expenses | 677 | 605 |
Operating income | 882 | 665 |
Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 1,439 | 926 |
Transaction-based expenses | 556 | 313 |
Total revenues, less transaction-based expenses | 883 | 613 |
Operating expenses | 310 | 228 |
Operating income | 573 | 385 |
Data and Listings Segment | ||
Revenues: | ||
Total revenues | 676 | 657 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 676 | 657 |
Operating expenses | 367 | 377 |
Operating income | 309 | 280 |
Sales Revenue, Net | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | $ 212 | $ 95 |
Number of members | member | 2 | 1 |
Concentration risk, percentage | 24.00% | 16.00% |
Energy futures and options contracts | ||
Revenues: | ||
Total revenues | $ 353 | $ 229 |
Energy futures and options contracts | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 353 | 229 |
Energy futures and options contracts | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Agricultural and metals futures and options contracts | ||
Revenues: | ||
Total revenues | 84 | 62 |
Agricultural and metals futures and options contracts | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 84 | 62 |
Agricultural and metals futures and options contracts | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Financial futures and options contracts | ||
Revenues: | ||
Total revenues | 123 | 83 |
Financial futures and options contracts | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 123 | 83 |
Financial futures and options contracts | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Cash equities and equity options | ||
Revenues: | ||
Total revenues | 669 | 390 |
Cash equities and equity options | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 669 | 390 |
Cash equities and equity options | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Fixed income and credit | ||
Revenues: | ||
Total revenues | 122 | 87 |
Fixed income and credit | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 122 | 87 |
Fixed income and credit | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
OTC and other transactions | ||
Revenues: | ||
Total revenues | 13 | 11 |
OTC and other transactions | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 13 | 11 |
OTC and other transactions | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Pricing and analytics | ||
Revenues: | ||
Total revenues | 276 | 266 |
Pricing and analytics | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Pricing and analytics | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 276 | 266 |
Exchange data and feeds | ||
Revenues: | ||
Total revenues | 180 | 176 |
Exchange data and feeds | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Exchange data and feeds | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 180 | 176 |
Desktops and connectivity | ||
Revenues: | ||
Total revenues | 108 | 104 |
Desktops and connectivity | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Desktops and connectivity | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 108 | 104 |
Listings | ||
Revenues: | ||
Total revenues | 112 | 111 |
Listings | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 0 | 0 |
Listings | Data and Listings Segment | ||
Revenues: | ||
Total revenues | 112 | 111 |
Other revenues | ||
Revenues: | ||
Total revenues | 75 | 64 |
Other revenues | Trading and Clearing Segment | ||
Revenues: | ||
Total revenues | 75 | 64 |
Other revenues | Data and Listings Segment | ||
Revenues: | ||
Total revenues | $ 0 | $ 0 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic: | ||
Net income attributable to Intercontinental Exchange, Inc. | $ 650 | $ 484 |
Weighted average common shares outstanding (in shares) | 552,000 | 568,000 |
Basic earnings per common share (in dollars per share) | $ 1.18 | $ 0.85 |
Diluted: | ||
Weighted average common shares outstanding (in shares) | 552,000 | 568,000 |
Effect of dilutive securities - stock options and restricted (in shares) shares | 3,000 | 2,000 |
Diluted weighted average common shares outstanding (in shares) | 555,000 | 570,000 |
Diluted earnings per common share (in dollars per share) | $ 1.17 | $ 0.85 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 246 | 813 |