Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, $0.01 par value per share | |
Trading Symbol | ICE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 562,765,755 | |
Entity Central Index Key | 0001571949 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 562 | $ 583 |
Short-term restricted cash and cash equivalents | 1,065 | 1,000 |
Customer accounts receivable, net of allowance for doubtful accounts of $27 at March 31, 2021 and December 31, 2020 | 1,530 | 1,230 |
Margin deposits, guaranty funds and delivery contracts receivable | 85,608 | 84,083 |
Prepaid expenses and other current assets | 410 | 323 |
Total current assets | 89,175 | 87,219 |
Property and equipment, net | 1,731 | 1,713 |
Other non-current assets: | ||
Goodwill | 21,304 | 21,291 |
Other intangible assets, net | 14,242 | 14,408 |
Long-term restricted cash and cash equivalents | 398 | 408 |
Other non-current assets | 1,195 | 1,161 |
Total other non-current assets | 37,139 | 37,268 |
Total assets | 128,045 | 126,200 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 673 | 639 |
Section 31 fees payable | 123 | 207 |
Accrued salaries and benefits | 136 | 346 |
Deferred revenue | 523 | 158 |
Short-term debt | 2,068 | 2,411 |
Margin deposits, guaranty funds and delivery contracts payable | 85,608 | 84,083 |
Other current liabilities | 271 | 155 |
Total current liabilities | 89,402 | 87,999 |
Non-current liabilities: | ||
Non-current deferred tax liability, net | 3,527 | 3,563 |
Long-term debt | 14,131 | 14,126 |
Accrued employee benefits | 203 | 206 |
Non-current operating lease liability | 306 | 320 |
Other non-current liabilities | 391 | 359 |
Total non-current liabilities | 18,558 | 18,574 |
Total liabilities | 107,960 | 106,573 |
Commitments and contingencies | ||
Redeemable non-controlling interest in consolidated subsidiaries | 91 | 93 |
Intercontinental Exchange, Inc. stockholders’ equity: | ||
Preferred stock, $0.01 par value; 100 shares authorized; none issued or outstanding at March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.01 par value; 1,500 shares authorized; 631 and 629 issued at March 31, 2021 and December 31, 2020, respectively, and 563 and 561 shares outstanding at March 31, 2021 and December 31, 2020, respectively | 6 | 6 |
Treasury stock, at cost; 68 shares at March 31, 2021 and December 31, 2020 | (5,265) | (5,200) |
Additional paid-in capital | 13,908 | 13,845 |
Retained earnings | 11,498 | 11,039 |
Accumulated other comprehensive loss | (184) | (192) |
Total Intercontinental Exchange, Inc. stockholders’ equity | 19,963 | 19,498 |
Non-controlling interest in consolidated subsidiaries | 31 | 36 |
Total equity | 19,994 | 19,534 |
Total liabilities and equity | $ 128,045 | $ 126,200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets: | |||
Allowance for doubtful accounts | $ 27 | $ 27 | |
Equity: | |||
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) | 631,000,000 | 629,000,000 | |
Common stock, outstanding (in shares) | 563,000,000 | 561,000,000 | |
Treasury stock (in shares) | 68,000,000 | 68,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Total revenues | $ 2,429 | $ 2,115 |
Transaction-based expenses: | ||
Section 31 fees | 125 | 166 |
Cash liquidity payments, routing and clearing | 507 | 390 |
Total revenues, less transaction-based expenses | 1,797 | 1,559 |
Operating expenses: | ||
Compensation and benefits | 354 | 278 |
Professional services | 44 | 29 |
Acquisition-related transaction and integration costs | 18 | 12 |
Technology and communication | 162 | 131 |
Rent and occupancy | 21 | 21 |
Selling, general and administrative | 51 | 49 |
Depreciation and amortization | 255 | 157 |
Total operating expenses | 905 | 677 |
Operating income | 892 | 882 |
Other income (expense): | ||
Interest income | 0 | 6 |
Interest expense | (107) | (72) |
Other income, net | 48 | 20 |
Other income (expense), net | (59) | (46) |
Income before income tax expense | 833 | 836 |
Income tax expense | 183 | 178 |
Net income | 650 | 658 |
Net income attributable to non-controlling interest | (4) | (8) |
Net income attributable to Intercontinental Exchange, Inc. | $ 646 | $ 650 |
Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders: | ||
Basic (in dollars per share) | $ 1.15 | $ 1.18 |
Diluted (in dollars per share) | $ 1.14 | $ 1.17 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 562 | 552 |
Diluted (in shares) | 565 | 555 |
Exchanges | ||
Revenues: | ||
Total revenues | $ 1,606 | $ 1,605 |
Fixed income and data services | ||
Revenues: | ||
Total revenues | 468 | 464 |
Mortgage Technology | ||
Revenues: | ||
Total revenues | $ 355 | $ 46 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 650 | $ 658 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of tax benefit of $1 for the three months ended March 31, 2021 and no tax benefit for the three months ended March 31, 2020 | 7 | (90) |
Change in equity method investment | 1 | 0 |
Other comprehensive income (loss) | 8 | (90) |
Comprehensive income | 658 | 568 |
Comprehensive income attributable to non-controlling interest | (4) | (8) |
Comprehensive income attributable to Intercontinental Exchange, Inc. | $ 654 | $ 560 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax expense (benefit) | $ (1,000,000) | $ 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 Income/(Loss) | Non- Controlling Interest in Consolidated Subsidiaries | Cumulative Effect, Period Of Adoption, Adjustment | Cumulative Effect, Period Of Adoption, AdjustmentRetained Earnings |
Beginning Balance (in shares) at Dec. 31, 2019 | 607,000,000 | 53,000,000 | |||||||
Beginning Balance at Dec. 31, 2019 | $ 17,286 | $ 6 | $ (3,879) | $ 11,742 | $ 9,629 | $ (243) | $ 31 | $ (10) | $ (10) |
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 | 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 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 629,000,000 | 629,000,000 | 68,000,000 | ||||||
Beginning Balance at Dec. 31, 2020 | $ 19,534 | $ 6 | $ (5,200) | 13,845 | 11,039 | (192) | 36 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Other comprehensive income (loss) | 8 | 8 | |||||||
Exercise of common stock options | 3 | 3 | |||||||
Payments relating to treasury shares | (65) | $ (65) | |||||||
Stock-based compensation | 42 | 42 | |||||||
Issuance under the employee stock purchase plan | 18 | 18 | |||||||
Issuance of restricted stock (in shares) | 2,000,000 | ||||||||
Distributions of profits | (11) | (11) | |||||||
Dividends paid to stockholders | (187) | (187) | |||||||
Net income (loss) attributable to non-controlling interest | 2 | (4) | 6 | ||||||
Net income | $ 650 | 650 | |||||||
Ending Balance (in shares) at Mar. 31, 2021 | 631,000,000 | 631,000,000 | 68,000,000 | ||||||
Ending Balance at Mar. 31, 2021 | $ 19,994 | $ 6 | $ (5,265) | $ 13,908 | $ 11,498 | $ (184) | $ 31 | ||
Redeemable non-controlling interest, Beginning balance at Dec. 31, 2020 | 93 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Net income (loss) attributable to non-controlling interest | (2) | ||||||||
Redeemable non-controlling interest, Ending balance at Mar. 31, 2021 | $ 91 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net income | $ 650 | $ 658 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 255 | 157 |
Stock-based compensation | 36 | 41 |
Deferred taxes | (22) | (3) |
Other | (10) | (11) |
Changes in assets and liabilities: | ||
Customer accounts receivable | (303) | (600) |
Other current and non-current assets | (108) | (35) |
Section 31 fees payable | (84) | 27 |
Deferred revenue | 375 | 372 |
Other current and non-current liabilities | (55) | (86) |
Total adjustments | 84 | (138) |
Net cash provided by operating activities | 734 | 520 |
Investing activities: | ||
Capital expenditures | (40) | (15) |
Capitalized software development costs | (76) | (44) |
Cash paid for acquisitions, net of cash acquired | 0 | (249) |
Proceeds from investments, net | 0 | 6 |
Net cash used in investing activities | (116) | (302) |
Financing activities: | ||
Proceeds from/(redemption of) commercial paper, net | (343) | 503 |
Repurchases of common stock | 0 | (699) |
Dividends to stockholders | (187) | (166) |
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises | (65) | (69) |
Other | 12 | 20 |
Net cash used in financing activities | (583) | (411) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | (1) | (9) |
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | 34 | (202) |
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period | 1,991 | 2,188 |
Cash, cash equivalents, and restricted cash and cash equivalents, end of period | 2,025 | 1,986 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes | 131 | 127 |
Cash paid for interest | $ 128 | $ 69 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Nature of Business and Organization We are a provider of market infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. These products, which span major asset classes including futures, equities, fixed income and United States, or U.S., residential mortgages, provide our customers with access to mission critical workflow tools that are designed to increase asset class transparency and workflow efficiency. • In our Exchanges segment, we operate regulated marketplaces for the listing, trading and clearing of a broad array of derivatives contracts and financial securities. • In our Fixed Income and Data Services segment, we provide fixed income pricing, reference data, indices and execution services as well as global credit default swap, or CDS, clearing and multi-asset class data delivery solutions. • In our Mortgage Technology segment, we provide an end-to-end technology platform that offers customers comprehensive, digital workflow tools that aim to address the inefficiencies that exist in the U.S. residential mortgage market. We operate marketplaces and provide data services in the U.S., United Kingdom, or U.K., European Union, or EU, Canada, Singapore and Abu Dhabi Global Market, or ADGM, and offer technology and data solutions to the U.S. mortgage industry. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation We prepared the accompanying unaudited consolidated financial statements 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, 2020. 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, 2021 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. We previously operated and presented our results as two reportable business segments. Effective October 1, 2020, we changed our internal financial reporting and the captions in which we present revenue in our financial statements because we determined that a change in reportable segments had occurred (Note 16). As of March 31, 2021, our business is conducted through three reportable business segments: our Exchanges segment, our Fixed Income and Data Services segment, and our Mortgage Technology segment. Prior periods have been restated to reflect this change. The majority of our identifiable assets are located in the U.S and U.K. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Ellie Mae Acquisition On September 4, 2020, we acquired Ellie Mae, Inc., or Ellie Mae, for aggregate consideration of $11.4 billion from private equity firm Thoma Bravo. The purchase price consisted of $9.5 billion in cash, as adjusted for $335 million of cash and cash equivalents held by Ellie Mae on the date of acquisition, and approximately $1.9 billion, or approximately 18.4 million shares of our common stock, based on our stock price on the acquisition date. ICE funded the cash portion of the purchase price with net proceeds from our offering of senior notes in August 2020, together with the issuance of commercial paper and borrowings under a senior unsecured term loan facility. We have evaluated the impact of this acquisition and related disclosures under ASC 805- Business Combinations. The purchase price has been allocated to the net tangible and identifiable intangible assets and liabilities based on the preliminary respective estimated fair values on the date of acquisition, as determined with the assistance of a third-party valuation specialist. The excess of purchase price over the net tangible and identifiable intangible assets has been recorded as goodwill. Goodwill represents potential revenue synergies related to new product development, various expense synergies and opportunities to enter new markets. The preliminary purchase price allocation is as follows (in millions): Preliminary Purchase Price Allocation Cash and cash equivalents $ 335 Property and equipment 127 Goodwill 7,719 Identifiable intangibles 4,442 Other assets and liabilities, net 51 Deferred tax liabilities on identifiable intangibles (1,246) Total preliminary purchase price allocation $ 11,428 In performing the preliminary purchase price allocation, we considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of the Ellie Mae business. We have not yet obtained all of the information related to the fair value of the acquired assets and liabilities. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to income taxes and certain other tangible assets and liabilities. The allocation of the purchase price will be finalized upon the completion of the analysis of the acquired assets and liabilities within one year of the date of acquisition. The following table sets forth the components of the preliminary intangible assets associated with the acquisition as of March 31, 2021 (in millions, except years): Acquisition-Date Preliminary Fair Value Accumulated Amortization Net Book Value Useful Life (Years) Customer relationships $ 3,136 $ (93) $ 3,043 10 to 20 Backlog 300 (34) 266 5 Trademark/Tradenames 200 (6) 194 5 to 20 Developed Technology 739 (61) 678 7 In-process Research & Development 67 — 67 N/A Total $ 4,442 $ (194) $ 4,248 The financial information in the table below summarizes the combined results of operations of ICE and Ellie Mae, on a pro forma basis, as though the companies had been combined as of the beginning of the period presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the period presented. Such unaudited pro forma financial information is based on the historical financial statements of ICE and Ellie Mae. This unaudited pro forma financial information is based on estimates and assumptions that have been made solely for purposes of developing such unaudited pro forma information, including, without limitation, purchase accounting adjustments, interest expense on debt issued to finance the purchase price, acquisition-related transaction costs, the removal of historical Ellie Mae intangible asset amortization and the addition of intangible asset amortization related to this acquisition. The unaudited pro forma financial information does not reflect any synergies or operating cost reductions that have been and may be achieved from the combined operations. The unaudited pro forma financial information combines the historical results for us and Ellie Mae for the three months ended March 31, 2020 in the following table (in millions). Three months ended March 31, 2020 Total revenues, less transaction-based expenses $ 1,733 Net income attributable to ICE $ 608 Transaction-based expenses included within revenues, less transaction-based expenses in the table above, were not impacted by pro forma adjustments and agree to the amounts presented historically in our consolidated income statements as they relate solely to ICE and not to Ellie Mae. Bakkt Transaction On January 11, 2021, we announced that Bakkt Holdings, LLC, or Bakkt, had entered into a definitive agreement to combine with VPC Impact Acquisition Holdings, or VIH, a special purpose acquisition company sponsored by Victory Park Capital, or VPC. The business combination between Bakkt and VIH is expected to result in over $500 million of cash on the combined company’s balance sheet, reflecting a contribution of up to $207 million of cash held in VIH’s trust account, and a $325 million concurrent private placement, or PIPE, of Class A common stock of the combined company, priced at $10.00 per share, including a $50 million commitment from us. The newly combined company will be renamed Bakkt Holdings, Inc. and is expected to be listed on the New York Stock Exchange, or NYSE. As part of the transaction, Bakkt’s existing equity holders and management will roll 100% of their equity into the combined company. Assuming no shareholders of VIH exercise their redemption rights, current Bakkt equity holders, including ICE, will own approximately 78% of the combined company, VIH’s public shareholders will own approximately 8%, VPC will own 2%, and PIPE investors (a group that will also include us) will own approximately 12% of the issued and outstanding common stock of the combined company at closing. Following completion of the business combination, which is expected to occur by the end of the second quarter of 2021, we are expected to have a 65% economic interest and a minority voting interest in the combined company. Prior to the closing, Bakkt revenues and operating expenses continue to be reported within our consolidated revenues and operating expenses. Following the closing, we will have a minority voting interest in the combined company and as a consequence, we expect to deconsolidate Bakkt and treat it as an equity method investment within our financial statements. As of March 31, 2021, we continue to fully consolidate Bakkt and have not applied accounting treatment under the "held for sale" guidance due to conditional regulatory and shareholder approvals. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Accounts Receivable We measure credit losses in accordance with Accounting Standards Update 2016-13, or ASU 2016-13, Financial Instruments- Measurement of Credit Losses on Financial Instruments . Based on the high turnover and collectability of our accounts receivable, as well as the monthly billing process for the majority of revenue, we have not experienced significant changes in our loss provision under the current expected credit loss, or 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 revenues from market data, cash trading, listings, technology services, mortgage technology, CDS transactions and bilateral OTC energy transactions subject us to credit losses, but we expeditiously limit our risk of credit loss by taking action such as terminating trading or transaction 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 estimate 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 are 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. We then 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 impairment model 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, 2021 (in millions): Allowance for Doubtful Accounts Beginning balance as of December 31, 2020 $ 27 Bad debt expense 3 Charge-offs (3) Ending balance as of March 31, 2021 $ 27 We have included in our allowance assessment the impact of and our responses to the coronavirus, or 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, 2021. 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Our equity investments, including our investments in Euroclear plc, or Euroclear, and Coinbase Global, Inc., or Coinbase, 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, or ASU 2016-01. See Note 15 for a discussion of our determination of fair value of our financial instruments. Investment in Coinbase On December 1, 2014, we acquired preferred stock of Coinbase, which operates a cryptocurrency exchange platform, for $10 million, representing a 1.4% ownership share on a fully-diluted, as-converted basis. On April 14, 2021, Coinbase completed an initial public offering, or IPO. On April 15, 2021, we completed the sale of our investment in Coinbase for $1.24 billion, and will record a gain of $1.23 billion in the second quarter of 2021 as other income in our consolidated statement of income (Note 18). Prior to its IPO, Coinbase did not have a readily determinable fair market value, and we accounted for our investment under a fair value policy election made in accordance with ASU 2016-01. This election required us to only adjust the fair value of such investments if and when there is an observable price change in an orderly transaction of a similar or identical investment, with any change in fair value recognized in net income. As of March 31, 2021, the carrying value of our Coinbase investment was $10 million. Investment in OCC We own a 40% interest in the Options Clearing Corporation, or OCC, through a direct investment by the NYSE and 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, 2021, OCC is our only equity method investment and is included in other non-current assets in the accompanying consolidated balance sheet. We recognized $25 million and $17 million during the three months ended March 31, 2021 and 2020, respectively, of equity earnings as our share of OCC's estimated profits, which is included in other income. Included within the amount recognized in 2021 is a $16 million earnings adjustment to reflect higher than reported 2020 net income than originally estimated by OCC. Similarly, included within the amount recognized in 2020 is a $7 million earnings adjustment to reflect higher than reported 2019 net income than originally estimated. Investment in Euroclear We own a 9.8% stake in Euroclear as of March 31, 2021, and we participate on the Euroclear Board of Directors. Euroclear is a provider of post-trade services, including settlement, central securities depositories and related services for cross-border transactions across asset classes. We classify our investment in Euroclear as an equity investment included in other non-current assets in our accompanying consolidated balance sheets. We recognized dividend income of $30 million during the three months ended March 31, 2021, which is included in other income. As a result of a 2020 European regulation limiting dividend payments, we did not receive a Euroclear dividend in 2020. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
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 rebates, 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, certain data services, clearing services, mortgage technology services and other revenues. Deferred revenue is our only significant contract liability. See Note 8 for our discussion of deferred revenue balances, activity, and expected timing of recognition. We have elected not to provide disclosures about the 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, clearing and mortgage services, our performance obligations are short term in nature and there is no significant variable consideration. 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 2020 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 16: Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three months ended March 31, 2021: Exchanges $ 1,606 $ — $ — $ 1,606 Fixed income and data services — 468 — 468 Mortgage technology — — 355 355 Total revenues 1,606 468 355 2,429 Transaction-based expenses 632 — — 632 Total revenues, less transaction-based expenses $ 974 $ 468 $ 355 $ 1,797 Timing of Revenue Recognition Services transferred at a point in time $ 561 $ 60 $ 221 $ 842 Services transferred over time 413 408 134 955 Total revenues, less transaction-based expenses $ 974 $ 468 $ 355 $ 1,797 Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three months ended March 31, 2020: Exchanges $ 1,605 $ — $ — $ 1,605 Fixed income and data services — 464 — 464 Mortgage technology — — 46 46 Total revenues 1,605 464 46 2,115 Transaction-based expenses 556 — — 556 Total revenues, less transaction-based expenses $ 1,049 $ 464 $ 46 $ 1,559 Timing of Revenue Recognition Services transferred at a point in time $ 638 $ 83 $ 44 $ 765 Services transferred over time 411 381 2 794 Total revenues, less transaction-based expenses $ 1,049 $ 464 $ 46 $ 1,559 The Exchanges segment revenues above include $207 million and $193 million of data services revenues for the three months ended March 31, 2021 and 2020, respectively, and Fixed Income and Data Services segment revenues above include $399 million and $371 million of data services revenues for the three months ended March 31, 2021 and 2020, respectively, for services transferred over time. A majority of those revenues are performed over a short period of time of one month or less and relate to subscription-based data services billed monthly, quarterly or annually in advance. These revenues are recognized ratably over time as our data delivery performance obligations are met consistently throughout the period. The Exchanges segment revenues above also include $66 million and $78 million for the three months ended March 31, 2021 and 2020, respectively, for services transferred over time related to risk management of open interest performance obligations. The Fixed Income and Data Services segment revenues above also include $9 million and $10 million for the three months ended March 31, 2021 and 2020, respectively, for services transferred over time related to risk management of open interest performance obligations. The Mortgage Technology segment revenues transferred over time in the table above primarily relate to our origination technology revenue where performance obligations consist of a series of distinct services and are recognized over the contract terms as subscription performance obligations are satisfied. Contracts generally range from one year to five years. Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $634 million as of March 31, 2021, including $523 million in current deferred revenue and $111 million in other non-current liabilities. The changes in our deferred revenue during the three months ended March 31, 2021 are as follows (in millions): Annual Listings Revenues Original Listings Revenues Other Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at December 31, 2020 $ — $ 13 $ 92 $ 95 $ 59 $ 259 Additions 377 9 24 175 19 604 Amortization (96) (6) (12) (105) (10) (229) Deferred revenue balance at March 31, 2021 $ 281 $ 16 $ 104 $ 165 $ 68 $ 634 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 Included in the amortization recognized during the three months ended March 31, 2021 is $62 million related to the deferred revenue balance as of December 31, 2020. Included in the amortization recognized for the three months ended March 31, 2020 is $44 million related to the deferred revenue balance as of December 31, 2019. As of March 31, 2021, the remaining deferred revenue balance will be recognized over the period of time we satisfy our performance obligations as described in Note 6. Deferred revenue for mortgage technology is related to Ellie Mae and has been included as of March 31, 2021 and December 31, 2020 following our September 2020 acquisition of Ellie Mae. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 (in millions): Goodwill balance at December 31, 2020 $ 21,291 Foreign currency translation 3 Other activity, net 10 Goodwill balance at March 31, 2021 $ 21,304 The following is a summary of the activity in the other intangible assets balance for the three months ended March 31, 2021 (in millions): Other intangible assets balance at December 31, 2020 $ 14,408 Foreign currency translation 4 Amortization of other intangible assets (159) Other activity, net (11) Other intangible assets balance at March 31, 2021 $ 14,242 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, 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 and did not recognize any impairment losses on goodwill or other intangible assets during the three months ended March 31, 2021. |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Mar. 31, 2021 | |
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 rebates, 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, certain data services, clearing services, mortgage technology services and other revenues. Deferred revenue is our only significant contract liability. See Note 8 for our discussion of deferred revenue balances, activity, and expected timing of recognition. We have elected not to provide disclosures about the 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, clearing and mortgage services, our performance obligations are short term in nature and there is no significant variable consideration. 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 2020 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 16: Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three months ended March 31, 2021: Exchanges $ 1,606 $ — $ — $ 1,606 Fixed income and data services — 468 — 468 Mortgage technology — — 355 355 Total revenues 1,606 468 355 2,429 Transaction-based expenses 632 — — 632 Total revenues, less transaction-based expenses $ 974 $ 468 $ 355 $ 1,797 Timing of Revenue Recognition Services transferred at a point in time $ 561 $ 60 $ 221 $ 842 Services transferred over time 413 408 134 955 Total revenues, less transaction-based expenses $ 974 $ 468 $ 355 $ 1,797 Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three months ended March 31, 2020: Exchanges $ 1,605 $ — $ — $ 1,605 Fixed income and data services — 464 — 464 Mortgage technology — — 46 46 Total revenues 1,605 464 46 2,115 Transaction-based expenses 556 — — 556 Total revenues, less transaction-based expenses $ 1,049 $ 464 $ 46 $ 1,559 Timing of Revenue Recognition Services transferred at a point in time $ 638 $ 83 $ 44 $ 765 Services transferred over time 411 381 2 794 Total revenues, less transaction-based expenses $ 1,049 $ 464 $ 46 $ 1,559 The Exchanges segment revenues above include $207 million and $193 million of data services revenues for the three months ended March 31, 2021 and 2020, respectively, and Fixed Income and Data Services segment revenues above include $399 million and $371 million of data services revenues for the three months ended March 31, 2021 and 2020, respectively, for services transferred over time. A majority of those revenues are performed over a short period of time of one month or less and relate to subscription-based data services billed monthly, quarterly or annually in advance. These revenues are recognized ratably over time as our data delivery performance obligations are met consistently throughout the period. The Exchanges segment revenues above also include $66 million and $78 million for the three months ended March 31, 2021 and 2020, respectively, for services transferred over time related to risk management of open interest performance obligations. The Fixed Income and Data Services segment revenues above also include $9 million and $10 million for the three months ended March 31, 2021 and 2020, respectively, for services transferred over time related to risk management of open interest performance obligations. The Mortgage Technology segment revenues transferred over time in the table above primarily relate to our origination technology revenue where performance obligations consist of a series of distinct services and are recognized over the contract terms as subscription performance obligations are satisfied. Contracts generally range from one year to five years. Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $634 million as of March 31, 2021, including $523 million in current deferred revenue and $111 million in other non-current liabilities. The changes in our deferred revenue during the three months ended March 31, 2021 are as follows (in millions): Annual Listings Revenues Original Listings Revenues Other Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at December 31, 2020 $ — $ 13 $ 92 $ 95 $ 59 $ 259 Additions 377 9 24 175 19 604 Amortization (96) (6) (12) (105) (10) (229) Deferred revenue balance at March 31, 2021 $ 281 $ 16 $ 104 $ 165 $ 68 $ 634 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 Included in the amortization recognized during the three months ended March 31, 2021 is $62 million related to the deferred revenue balance as of December 31, 2020. Included in the amortization recognized for the three months ended March 31, 2020 is $44 million related to the deferred revenue balance as of December 31, 2019. As of March 31, 2021, the remaining deferred revenue balance will be recognized over the period of time we satisfy our performance obligations as described in Note 6. Deferred revenue for mortgage technology is related to Ellie Mae and has been included as of March 31, 2021 and December 31, 2020 following our September 2020 acquisition of Ellie Mae. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our total debt, including short-term and long-term debt, consisted of the following as of March 31, 2021 and December 31, 2020 (in millions): As of March 31, 2021 As of December 31, 2020 Debt: Short-term debt: Commercial Paper $ 2,062 $ 2,405 Other short-term debt 6 6 Total short-term debt 2,068 2,411 Long-term debt: 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 499 498 2023 Senior Notes (floating rate senior unsecured notes due June 15, 2023) 1,245 1,244 2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023) 995 995 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 399 398 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 796 796 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,245 1,245 2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) 497 496 2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) 593 593 2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) 1,232 1,232 2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) 1,482 1,481 2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) 1,229 1,229 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,230 1,230 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) 1,219 1,219 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) 1,470 1,470 Total long-term debt 14,131 14,126 Total debt $ 16,199 $ 16,537 Our current fixed rate senior notes of $12.9 billion have a weighted average maturity of 16 years and a weighted average cost of 3.0% per annum. Credit Facilities We have a $3.8 billion senior unsecured revolving credit facility, or the Credit Facility, with a maturity date of August 21, 2025 and future capacity to increase our borrowings under the Credit Facility by an additional $625 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, 2021. As of March 31, 2021, of the $3.8 billion that is currently available for borrowing under the Credit Facility, $2.1 billion is required to back-stop the amount outstanding under our U.S. dollar commercial paper program, or the Commercial Paper Program, and $172 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 $1.5 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 India subsidiaries maintain $20 million of credit lines for their general corporate purposes. As of March 31, 2021, they had borrowed $6 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, 2021, we had net repayments of $343 million under the Commercial Paper Program. Commercial paper notes of $2.1 billion with original maturities ranging from one |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
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, net of amounts classified as capitalized software, were $36 million and $41 million for the three months ended March 31, 2021 and 2020, respectively. This includes the expense related to the Bakkt Incentive Units, described below. Stock Option Plans We use the Black-Scholes option pricing model to value our stock option awards. During the three months ended March 31, 2021 and 2020, we used the assumptions in the table below to compute the value: Three Months Ended March 31, Assumptions: 2021 2020 Risk-free interest rate 0.64% 1.46% Expected life in years 5.7 5.8 Expected volatility 24% 20% Expected dividend yield 1.16% 1.30% Estimated weighted-average fair value of options granted per share $22.70 $16.65 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 align our and our stockholders' interests by linking actual performance to both short and long-term stockholder return. We issue awards that 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 2021, we reserved a maximum of 0.7 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, 2021, and will also be subject to a market condition reduction based on how our 2021 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 $77 million if the maximum financial performance target is met and all 0.7 million shares vest. The compensation expense to be recognized under these performance-based restricted shares will be $38 million if the target financial performance is met, which would result in 0.4 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 2021 actual financial performance as compared to the 2021 financial performance targets. As of March 31, 2021, our best estimate is that the financial performance level will be at target for 2021. Based on this assessment, we recorded non-cash compensation expense of $3 million for the three months ended March 31, 2021 related to these awards and the remaining $35 million in non-cash compensation expense will be recorded on an accelerated basis over the remaining vesting period, including $18 million which will be recorded over the remainder of 2021. 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. Bakkt Incentive Units We sponsor the Bakkt Equity Incentive Plan under which Bakkt issues various Bakkt preferred, common and phantom, or participation, equity unit awards. These awards were made to certain employees and board members of Bakkt. 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, there was a $300 million capital call related to the acquisition of Bridge2 Solutions that 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 that was recorded as an acquisition-related cost. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
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. We fund repurchases from our operating cash flow or 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 may begin or discontinue stock repurchases at any time and may amend or terminate a Rule 10b5-1 trading plan at any time or enter into additional plans. We discontinued stock repurchases and terminated our Rule 10b5-1 trading plan in August 2020 in connection with the Ellie Mae acquisition and had no stock repurchases in the first quarter of 2021. As of March 31, 2021, the remaining balance of Board approved funds for future repurchases is $1.2 billion. 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, 2021 and 2020, we declared and paid cash dividends per share of $0.33 and $0.30, respectively, for an aggregate payout of $187 million and $166 million, respectively. The declaration of dividends is subject to the discretion of our Board. 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, our financial results and capital requirements and other considerations which our Board deems relevant, 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, 2020 $ (134) $ 1 $ (59) $ (192) Other comprehensive income (loss) 6 2 — 8 Income tax benefit (expense) 1 (1) — — Net current period other comprehensive income (loss) 7 1 — 8 Balance, as of March 31, 2021 $ (127) $ 2 $ (59) $ (184) 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) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 22% and 21% for the three months ended March 31, 2021 and 2020, respectively. The effective tax rate for the three months ended March 31, 2021 was higher than the effective tax rate for the comparable period in 2020 primarily due to the U.K. corporate income tax rate increase from 17% to 19%, effective from April 1, 2020, and less excess tax benefits from stock compensation. The U.K. government, in its recent Finance Bill of 2021, proposed increasing the U.K. corporate income tax rate from 19% to 25%, beginning April 1, 2023. We expect this tax law change to be enacted later in 2021 and we will account for the deferred tax effects in the quarter that the tax law is officially enacted. On March 11, 2021, the American Rescue Plan Act, or ARPA, was signed into law. The ARPA enacted certain provisions that are relevant to corporate income tax. These provisions did not have a material impact on our income tax provision for the three months ended March 31, 2021. |
Clearing Operations
Clearing Operations | 3 Months Ended |
Mar. 31, 2021 | |
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 or participants, or 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 to third-party 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, ICE Futures Abu Dhabi and third-party venues U.K. ICE Clear U.S. Agricultural, metals, and foreign exchange, or FX, index futures and options contracts, equity futures 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 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 Members 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 Members 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 Members of the other ICE Clearing Houses. Should a particular Member 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 the defaulting Member's open positions and use their original margin and guaranty fund deposits to pay any amount owed. In the event that the defaulting 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 Members on a pro-rata basis, to pay any remaining amount owed. As of March 31, 2021 and December 31, 2020, the ICE Clearing Houses had received or had been pledged $163.6 billion and $154.1 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 Member default. With the exception of ICE NGX, each of the ICE Clearing Houses requires that each Member make deposits into a guaranty fund. In addition, we have contributed our own capital that could be used if a defaulting 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 March 31, 2021 As of As of March 31, 2021 As of ICE Clear Europe $247 $237 $75 $75 ICE Clear U.S. 83 103 25 25 ICE Clear Credit 50 50 50 50 ICE Clear Netherlands 2 2 N/A N/A ICE Clear Singapore 1 1 N/A N/A ICE NGX 15 15 100 100 Total $398 $408 $250 $250 Of our total contribution to ICE Clear U.S. above, as of March 31, 2021, $15 million was 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 February 2021, we decreased our contribution to ICE Clear U.S.’s guaranty fund applicable to any losses associated with a default in Bitcoin contracts and other digital asset contracts by $20 million from $35 million as of December 31, 2020. In March 2021, we increased our contribution to ICE Clear Europe's guaranty fund by $10 million. We maintain default insurance as an additional layer of Member default protection. The default insurance was added in September 2019 and has a three-year term for the following clearing houses in the following amounts: ICE Clear Europe - $75 million; ICE Clear U.S. - $25 million and ICE Clear Credit - $50 million. The default insurance layer resides after and in addition to the ICE Clear Europe, ICE Clear U.S. and ICE Clear Credit SITG contributions and before the guaranty fund contributions of the non-defaulting 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 Members' guaranty fund contribution requirement. Instead, it serves as an additional, distinct, and separate default resource that should serve to further protect the non-defaulting Members’ guaranty fund contributions from being mutualized in the event of a default. As of March 31, 2021, 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 Members. As of March 31, 2021, 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 $ 31,977 $ 37,753 $ 7,477 $ — $ 19 $ 77,226 Unsettled variation margin, net — — — 146 — 146 Guaranty fund 4,119 2,930 592 — 5 7,646 Delivery contracts receivable/payable, net — — — 590 — 590 Total $ 36,096 $ 40,683 $ 8,069 $ 736 $ 24 $ 85,608 As of December 31, 2020, 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 $ 33,726 $ 34,922 $ 7,288 $ — $ 12 $ 75,948 Unsettled variation margin, net — — — 99 — 99 Guaranty fund 4,374 2,574 502 — 5 7,455 Delivery contracts receivable/payable, net — — — 581 — 581 Total $ 38,100 $ 37,496 $ 7,790 $ 680 $ 17 $ 84,083 (1) $31.2 billion and $4.9 billion is related to futures/options and CDS, respectively. (2) $31.8 billion and $6.3 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 highly-rated 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, 2021 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 March 31, 2021 As of ICE Clear Europe National Bank Account (1) $ 7,229 $ 10,887 ICE Clear Europe Reverse repo 24,896 23,696 ICE Clear Europe Sovereign Debt 3,953 3,501 ICE Clear Europe Demand deposits 18 16 ICE Clear Credit National Bank Account 35,069 30,275 ICE Clear Credit Reverse repo 3,211 4,520 ICE Clear Credit Demand deposits 2,403 2,701 ICE Clear U.S. Reverse repo 7,169 5,690 ICE Clear U.S. Sovereign Debt 900 2,100 Other ICE Clearing Houses Demand deposits 24 17 ICE NGX Unsettled Variation Margin and Delivery Contracts Receivable/Payable 736 680 Total $ 85,608 $ 84,083 (1) As of March 31, 2021, ICE Clear Europe held €3.8 billion ($4.5 billion based on the euro/U.S. dollar exchange rate of 1.1731 as of March 31, 2021) at De Nederlandsche Bank, or DNB, £2.0 billion ($2.8 billion based on the pound sterling/U.S. dollar exchange rate of 1.3782 as of March 31, 2021) at the Bank of England, or BOE, and €10 million ($12 million based on the above exchange rate) at the BOE. As of December 31, 2020, ICE Clear Europe held €6.3 billion ($7.7 billion based on the euro/U.S. dollar exchange rate of 1.2216 as of December 31, 2020) at DNB, £2.3 billion ($3.1 billion based on the pound sterling/U.S. dollar exchange rate of 1.3665 as of December 31, 2020) at the BOE and €10 million ($12 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 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 Members. Any gain or loss accrues to the 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, 2021 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 46,367 $ 8,789 $ 18,302 $ — $ 73,458 Letters of credit — — — 2,773 2,773 ICE NGX cash deposits — — — 542 542 Total $ 46,367 $ 8,789 $ 18,302 $ 3,315 $ 76,773 Guaranty fund: Government securities at face value $ 552 $ 333 $ 284 $ — $ 1,169 As of December 31, 2020 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 36,295 $ 9,523 $ 20,216 $ — $ 66,034 Letters of credit — — — 2,329 2,329 ICE NGX cash deposits — — — 405 405 Total $ 36,295 $ 9,523 $ 20,216 $ 2,734 $ 68,768 Guaranty fund: Government securities at face value $ 508 $ 515 $ 250 $ — $ 1,273 ICE NGX ICE NGX is the central counterparty to Members 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 Member's open position falls outside a specified percentage of its pledged collateral. ICE NGX requires Members 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 Member, 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, 2021 (In C$ millions) As of March 31, 2021 (In $USD millions) Daylight liquidity facility C$300 $239 Overdraft facility 20 16 Total C$320 $255 As of March 31, 2021, 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 Member’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 Members. 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 $143.9 billion as of March 31, 2021, 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, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings In the ordinary course of our business, from time to time we are subject to legal proceedings, lawsuits, government investigations and other claims with respect to a variety of matters. In addition, we are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties, restrictions on our business or other sanctions. We record estimated expenses and reserves for legal or regulatory matters or other claims when these matters present loss contingencies that are 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. While the outcome of legal and regulatory matters is inherently difficult to predict and/or the range of loss often cannot be reasonably estimable, we do not believe that the liabilities, if any, which may ultimately result from the resolution of the various legal and regulatory matters that arise in the ordinary course of our business, including the matters described below and in Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K, are likely to 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 these legal and regulatory matters. Other than a $30 million accrual for potential legal settlements recorded as of December 31, 2020, a range of possible losses related to certain cases cannot be reasonably estimated at this time, except as otherwise disclosed below and in Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K. Individual matter disclosures in this Form 10-Q are limited to new significant matters or significant updates on existing matters since our most recent Form 10-K. ICE Data Pricing & Reference Data Matter As described at greater length in Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K, our subsidiary ICE Data Pricing & Reference Data, LLC, or PRD, is a registered investment advisor in the business of, among other things, providing clients with evaluated pricing and other information for fixed-income securities. Until October 1, 2020, PRD had a business practice of passing through third-party price quotes, or broker quotes, in certain fixed income securities as-is to its clients when PRD did not believe it had sufficient information to produce an evaluated price for such securities. PRD’s legacy business practices with respect to broker quotes received from a now-bankrupt entity named Live Well Financial, Inc., or Live Well, had led to assertions of liability against PRD by Live Well’s bankruptcy trustee, or the Trustee, and certain of Live Well’s financial institution creditors. As of April 2021, PRD had resolved the potential claims of the Trustee and all but one of Live Well’s financial institution creditors. PRD continues to deny any wrongdoing, and to the extent any unresolved assertions relating to broker quotes PRD received from Live Well become litigated matters, we plan to vigorously defend any such litigation. For further information on our legal and regulatory matters, please see Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and December 31, 2020 were classified in their entirety based on the lowest level of input that is significant to the asset or liability’s fair value measurement. 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. Excluding our equity investments without a readily determinable fair value, the fair values of 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, 2021 or December 31, 2020. 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, 2021, 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 2016-01 . During the three months ended March 31, 2021, we evaluated these investments to identify if any increase or decrease in the value of the investment had occurred, including qualitative considerations of impairment as discussed above, and concluded that no fair value adjustments were required under this election. See Note 13 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, 2021. 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, 2021. As of March 31, 2021 (in millions) Debt: Carrying Amount Fair value Commercial Paper $ 2,062 $ 2,065 Other short-term debt 6 6 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 499 513 2023 Senior Notes (floating rate senior unsecured notes due June 15, 2023) 1,245 1,252 2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023) 995 1,003 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 399 427 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 796 868 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,245 1,375 2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) 497 543 2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) 593 662 2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) 1,232 1,204 2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) 1,482 1,375 2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) 1,229 1,158 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,230 1,405 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) 1,219 1,161 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) 1,470 1,346 Total debt $ 16,199 $ 16,363 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We previously operated as two reportable business segments, but effective October 1, 2020, we realigned our businesses as part of a review of, and changes in, our organizational structure following our acquisition of Ellie Mae. As a result, we changed our internal financial reporting and determined that a change in reportable segments had occurred. This presentation is reflective of how our chief operating decision maker reviews and operates our business. In addition, beginning in the first quarter of 2021, origination technology revenues include those related to our ICE Mortgage Technology network (previously reported in closing solutions revenues) and closing solutions revenues now include registration revenues related to MERS (previously reported in other revenues). We believe these changes more accurately reflect how we operate the business. The prior year period has been adjusted to reflect these changes. As of March 31, 2021, our business is conducted through three reportable business segments, comprised of the following: • Our Exchanges segment includes our global futures platforms for trade execution and clearing, NYSE trading and listings and various data services related to those platforms; • Our Fixed Income and Data Services segment includes our fixed income and data analytics offerings, including pricing and reference data, analytics and indices, fixed income execution, or ICE Bonds, CDS clearing, our consolidated feeds, ICE Global Network businesses, other multi-asset class data and network services; and • Our Mortgage Technology segment provides mortgage technology solutions for the U.S. residential mortgage market from application through closing and the secondary market. While revenues are recorded specifically in the segment in which they are earned or to which they relate, a significant portion of our operating expenses are not solely related to a specific segment because the expenses serve functions that are necessary for the operation of more than one segment. We directly allocate expenses when reasonably possible to do so. Otherwise, we use a pro-rata revenue approach as the allocation method for the expenses that do not relate solely to one segment and serve functions that are necessary for the operation of all segments. Our October 1, 2020 change in business segment presentation triggered a reallocation of our segment operating expenses. Prior periods have been adjusted to reflect this change. 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 three segments do not engage in intersegment transactions. Financial data for our business segments is as follows for the three months ended March 31, 2021 and 2020 (in millions): Three Months Ended March 31, 2021 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 310 $ — $ — $ 310 Agricultural and metals futures and options 59 — — 59 Financial futures and options 105 — — 105 Cash equities and equity options 734 — — 734 OTC and other 77 — — 77 Data and connectivity services 207 — — 207 Listings 114 — — 114 Fixed income execution — 14 — 14 CDS clearing — 55 — 55 Fixed income data and analytics — 264 — 264 Other data and network services — 135 — 135 Origination technology — — 254 254 Closing solutions — — 70 70 Data and analytics — — 18 18 Other — — 13 13 Revenues 1,606 468 355 2,429 Transaction-based expenses 632 — — 632 Revenues, less transaction-based expenses 974 468 355 1,797 Operating expenses 321 335 249 905 Operating income $ 653 $ 133 $ 106 $ 892 Three Months Ended March 31, 2020 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 353 $ — $ — $ 353 Agricultural and metals futures and options 84 — — 84 Financial futures and options 123 — — 123 Cash equities and equity options 669 — — 669 OTC and other 71 — — 71 Data and connectivity services 193 — — 193 Listings 112 — — 112 Fixed income execution — 21 — 21 CDS clearing — 72 — 72 Fixed income data and analytics — 245 — 245 Other data and network services — 126 — 126 Closing solutions — — 44 44 Other — — 2 2 Revenues 1,605 464 46 2,115 Transaction-based expenses 556 — — 556 Revenues, less transaction-based expenses 1,049 464 46 1,559 Operating expenses 322 330 25 677 Operating income $ 727 $ 134 $ 21 $ 882 Revenue from one clearing member of the Exchanges segment comprised $109 million, or 11% of our Exchanges revenues less transaction-based expenses during the three months ended March 31, 2021. Revenue from one clearing member of the Exchanges segment comprised $116 million, or 11% of our Exchanges revenues less transaction-based expenses during the three months ended March 31, 2020. 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 |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020 (in millions, except per share amounts): Three Months Ended March 31, 2021 2020 Basic: Net income attributable to Intercontinental Exchange, Inc. $ 646 $ 650 Weighted average common shares outstanding 562 552 Basic earnings per common share $ 1.15 $ 1.18 Diluted: Weighted average common shares outstanding 562 552 Effect of dilutive securities - stock options and restricted stock 3 3 Diluted weighted average common shares outstanding 565 555 Diluted earnings per common share $ 1.14 $ 1.17 Basic earnings per common share is calculated using the weighted average common shares outstanding during the period. The weighted average common shares outstanding increased during the three months ended March 31, 2021 from the comparable period in 2020 primarily due to the stock issued for the Ellie Mae acquisition, partially offset by 2020 stock repurchases. Common equivalent shares from stock options and restricted stock awards, calculated 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, 2021 and 2020, 190,000 and 246,000 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, we have excluded warrants and preferred and common incentive units under the Bakkt Equity Incentive Plan 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, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 14, 2021, Coinbase, a company in which we owned preferred stock which represented a 1.4% ownership share on a fully-diluted, as-converted basis, completed an IPO (Note 5). On April 15, 2021, we completed the sale of our investment in Coinbase for $1.24 billion, and will record a gain of $1.23 billion in the second quarter of 2021 as other income in our consolidated statement of income. 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, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepared the accompanying unaudited consolidated financial statements 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, 2020. 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, 2021 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. We previously operated and presented our results as two reportable business segments. Effective October 1, 2020, we changed our internal financial reporting and the captions in which we present revenue in our financial statements because we determined that a change in reportable segments had occurred (Note 16). As of March 31, 2021, our business is conducted through three reportable business segments: our Exchanges segment, our Fixed Income and Data Services segment, and our Mortgage Technology segment. Prior periods have been restated to reflect this change. The majority of our identifiable assets are located in the U.S and U.K. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting PronouncementsDuring the three months ended March 31, 2021, there were no significant changes to the new and recently adopted accounting pronouncements applicable to us from those disclosed in Note 2 of our Annual Report on Form 10-K for the year ended December 31, 2020, or the Form 10-K. |
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 rebates, 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, certain data services, clearing services, mortgage technology services and other revenues. Deferred revenue is our only significant contract liability. See Note 8 for our discussion of deferred revenue balances, activity, and expected timing of recognition. We have elected not to provide disclosures about the 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, clearing and mortgage services, our performance obligations are short term in nature and there is no significant variable consideration. 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. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation is as follows (in millions): Preliminary Purchase Price Allocation Cash and cash equivalents $ 335 Property and equipment 127 Goodwill 7,719 Identifiable intangibles 4,442 Other assets and liabilities, net 51 Deferred tax liabilities on identifiable intangibles (1,246) Total preliminary purchase price allocation $ 11,428 |
Schedule of Components of the Preliminary Intangible Assets Associated with the Acquisition | The following table sets forth the components of the preliminary intangible assets associated with the acquisition as of March 31, 2021 (in millions, except years): Acquisition-Date Preliminary Fair Value Accumulated Amortization Net Book Value Useful Life (Years) Customer relationships $ 3,136 $ (93) $ 3,043 10 to 20 Backlog 300 (34) 266 5 Trademark/Tradenames 200 (6) 194 5 to 20 Developed Technology 739 (61) 678 7 In-process Research & Development 67 — 67 N/A Total $ 4,442 $ (194) $ 4,248 |
Schedule of Business Acquisition, Pro Forma Information | The unaudited pro forma financial information combines the historical results for us and Ellie Mae for the three months ended March 31, 2020 in the following table (in millions). Three months ended March 31, 2020 Total revenues, less transaction-based expenses $ 1,733 Net income attributable to ICE $ 608 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Schedule of Reconciliation of the Beginning and Ending Amount 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, 2021 (in millions): Allowance for Doubtful Accounts Beginning balance as of December 31, 2020 $ 27 Bad debt expense 3 Charge-offs (3) Ending balance as of March 31, 2021 $ 27 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 16: Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three months ended March 31, 2021: Exchanges $ 1,606 $ — $ — $ 1,606 Fixed income and data services — 468 — 468 Mortgage technology — — 355 355 Total revenues 1,606 468 355 2,429 Transaction-based expenses 632 — — 632 Total revenues, less transaction-based expenses $ 974 $ 468 $ 355 $ 1,797 Timing of Revenue Recognition Services transferred at a point in time $ 561 $ 60 $ 221 $ 842 Services transferred over time 413 408 134 955 Total revenues, less transaction-based expenses $ 974 $ 468 $ 355 $ 1,797 Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three months ended March 31, 2020: Exchanges $ 1,605 $ — $ — $ 1,605 Fixed income and data services — 464 — 464 Mortgage technology — — 46 46 Total revenues 1,605 464 46 2,115 Transaction-based expenses 556 — — 556 Total revenues, less transaction-based expenses $ 1,049 $ 464 $ 46 $ 1,559 Timing of Revenue Recognition Services transferred at a point in time $ 638 $ 83 $ 44 $ 765 Services transferred over time 411 381 2 794 Total revenues, less transaction-based expenses $ 1,049 $ 464 $ 46 $ 1,559 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 (in millions): Goodwill balance at December 31, 2020 $ 21,291 Foreign currency translation 3 Other activity, net 10 Goodwill balance at March 31, 2021 $ 21,304 The following is a summary of the activity in the other intangible assets balance for the three months ended March 31, 2021 (in millions): Other intangible assets balance at December 31, 2020 $ 14,408 Foreign currency translation 4 Amortization of other intangible assets (159) Other activity, net (11) Other intangible assets balance at March 31, 2021 $ 14,242 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 are as follows (in millions): Annual Listings Revenues Original Listings Revenues Other Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at December 31, 2020 $ — $ 13 $ 92 $ 95 $ 59 $ 259 Additions 377 9 24 175 19 604 Amortization (96) (6) (12) (105) (10) (229) Deferred revenue balance at March 31, 2021 $ 281 $ 16 $ 104 $ 165 $ 68 $ 634 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 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our total debt, including short-term and long-term debt, consisted of the following as of March 31, 2021 and December 31, 2020 (in millions): As of March 31, 2021 As of December 31, 2020 Debt: Short-term debt: Commercial Paper $ 2,062 $ 2,405 Other short-term debt 6 6 Total short-term debt 2,068 2,411 Long-term debt: 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 499 498 2023 Senior Notes (floating rate senior unsecured notes due June 15, 2023) 1,245 1,244 2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023) 995 995 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 399 398 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 796 796 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,245 1,245 2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) 497 496 2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) 593 593 2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) 1,232 1,232 2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) 1,482 1,481 2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) 1,229 1,229 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,230 1,230 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) 1,219 1,219 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) 1,470 1,470 Total long-term debt 14,131 14,126 Total debt $ 16,199 $ 16,537 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stock Options Valuation Assumptions | During the three months ended March 31, 2021 and 2020, we used the assumptions in the table below to compute the value: Three Months Ended March 31, Assumptions: 2021 2020 Risk-free interest rate 0.64% 1.46% Expected life in years 5.7 5.8 Expected volatility 24% 20% Expected dividend yield 1.16% 1.30% Estimated weighted-average fair value of options granted per share $22.70 $16.65 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 $ (134) $ 1 $ (59) $ (192) Other comprehensive income (loss) 6 2 — 8 Income tax benefit (expense) 1 (1) — — Net current period other comprehensive income (loss) 7 1 — 8 Balance, as of March 31, 2021 $ (127) $ 2 $ (59) $ (184) 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) |
Clearing Operations (Tables)
Clearing Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 to third-party 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, ICE Futures Abu Dhabi and third-party venues U.K. ICE Clear U.S. Agricultural, metals, and foreign exchange, or FX, index futures and options contracts, equity futures 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 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 March 31, 2021 As of As of March 31, 2021 As of ICE Clear Europe $247 $237 $75 $75 ICE Clear U.S. 83 103 25 25 ICE Clear Credit 50 50 50 50 ICE Clear Netherlands 2 2 N/A N/A ICE Clear Singapore 1 1 N/A N/A ICE NGX 15 15 100 100 Total $398 $408 $250 $250 |
Schedule of Margin Deposits and Guaranty Funds Assets | As of March 31, 2021, 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 $ 31,977 $ 37,753 $ 7,477 $ — $ 19 $ 77,226 Unsettled variation margin, net — — — 146 — 146 Guaranty fund 4,119 2,930 592 — 5 7,646 Delivery contracts receivable/payable, net — — — 590 — 590 Total $ 36,096 $ 40,683 $ 8,069 $ 736 $ 24 $ 85,608 As of December 31, 2020, 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 $ 33,726 $ 34,922 $ 7,288 $ — $ 12 $ 75,948 Unsettled variation margin, net — — — 99 — 99 Guaranty fund 4,374 2,574 502 — 5 7,455 Delivery contracts receivable/payable, net — — — 581 — 581 Total $ 38,100 $ 37,496 $ 7,790 $ 680 $ 17 $ 84,083 (1) $31.2 billion and $4.9 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 March 31, 2021 As of ICE Clear Europe National Bank Account (1) $ 7,229 $ 10,887 ICE Clear Europe Reverse repo 24,896 23,696 ICE Clear Europe Sovereign Debt 3,953 3,501 ICE Clear Europe Demand deposits 18 16 ICE Clear Credit National Bank Account 35,069 30,275 ICE Clear Credit Reverse repo 3,211 4,520 ICE Clear Credit Demand deposits 2,403 2,701 ICE Clear U.S. Reverse repo 7,169 5,690 ICE Clear U.S. Sovereign Debt 900 2,100 Other ICE Clearing Houses Demand deposits 24 17 ICE NGX Unsettled Variation Margin and Delivery Contracts Receivable/Payable 736 680 Total $ 85,608 $ 84,083 (1) As of March 31, 2021, ICE Clear Europe held €3.8 billion ($4.5 billion based on the euro/U.S. dollar exchange rate of 1.1731 as of March 31, 2021) at De Nederlandsche Bank, or DNB, £2.0 billion ($2.8 billion based on the pound sterling/U.S. dollar exchange rate of 1.3782 as of March 31, 2021) at the Bank of England, or BOE, and €10 million ($12 million based on the above exchange rate) at the BOE. As of December 31, 2020, ICE Clear Europe held €6.3 billion ($7.7 billion based on the euro/U.S. dollar exchange rate of 1.2216 as of December 31, 2020) at DNB, £2.3 billion ($3.1 billion based on the pound sterling/U.S. dollar exchange rate of 1.3665 as of December 31, 2020) at the BOE and €10 million ($12 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, 2021 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 46,367 $ 8,789 $ 18,302 $ — $ 73,458 Letters of credit — — — 2,773 2,773 ICE NGX cash deposits — — — 542 542 Total $ 46,367 $ 8,789 $ 18,302 $ 3,315 $ 76,773 Guaranty fund: Government securities at face value $ 552 $ 333 $ 284 $ — $ 1,169 As of December 31, 2020 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 36,295 $ 9,523 $ 20,216 $ — $ 66,034 Letters of credit — — — 2,329 2,329 ICE NGX cash deposits — — — 405 405 Total $ 36,295 $ 9,523 $ 20,216 $ 2,734 $ 68,768 Guaranty fund: Government securities at face value $ 508 $ 515 $ 250 $ — $ 1,273 |
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, 2021 (In C$ millions) As of March 31, 2021 (In $USD millions) Daylight liquidity facility C$300 $239 Overdraft facility 20 16 Total C$320 $255 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021. As of March 31, 2021 (in millions) Debt: Carrying Amount Fair value Commercial Paper $ 2,062 $ 2,065 Other short-term debt 6 6 2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) 499 513 2023 Senior Notes (floating rate senior unsecured notes due June 15, 2023) 1,245 1,252 2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023) 995 1,003 2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) 399 427 2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) 796 868 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,245 1,375 2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) 497 543 2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) 593 662 2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) 1,232 1,204 2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) 1,482 1,375 2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) 1,229 1,158 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,230 1,405 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) 1,219 1,161 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) 1,470 1,346 Total debt $ 16,199 $ 16,363 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020 (in millions): Three Months Ended March 31, 2021 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 310 $ — $ — $ 310 Agricultural and metals futures and options 59 — — 59 Financial futures and options 105 — — 105 Cash equities and equity options 734 — — 734 OTC and other 77 — — 77 Data and connectivity services 207 — — 207 Listings 114 — — 114 Fixed income execution — 14 — 14 CDS clearing — 55 — 55 Fixed income data and analytics — 264 — 264 Other data and network services — 135 — 135 Origination technology — — 254 254 Closing solutions — — 70 70 Data and analytics — — 18 18 Other — — 13 13 Revenues 1,606 468 355 2,429 Transaction-based expenses 632 — — 632 Revenues, less transaction-based expenses 974 468 355 1,797 Operating expenses 321 335 249 905 Operating income $ 653 $ 133 $ 106 $ 892 Three Months Ended March 31, 2020 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 353 $ — $ — $ 353 Agricultural and metals futures and options 84 — — 84 Financial futures and options 123 — — 123 Cash equities and equity options 669 — — 669 OTC and other 71 — — 71 Data and connectivity services 193 — — 193 Listings 112 — — 112 Fixed income execution — 21 — 21 CDS clearing — 72 — 72 Fixed income data and analytics — 245 — 245 Other data and network services — 126 — 126 Closing solutions — — 44 44 Other — — 2 2 Revenues 1,605 464 46 2,115 Transaction-based expenses 556 — — 556 Revenues, less transaction-based expenses 1,049 464 46 1,559 Operating expenses 322 330 25 677 Operating income $ 727 $ 134 $ 21 $ 882 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020 (in millions, except per share amounts): Three Months Ended March 31, 2021 2020 Basic: Net income attributable to Intercontinental Exchange, Inc. $ 646 $ 650 Weighted average common shares outstanding 562 552 Basic earnings per common share $ 1.15 $ 1.18 Diluted: Weighted average common shares outstanding 562 552 Effect of dilutive securities - stock options and restricted stock 3 3 Diluted weighted average common shares outstanding 565 555 Diluted earnings per common share $ 1.14 $ 1.17 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - segment | Oct. 01, 2020 | Mar. 31, 2021 | Sep. 30, 2020 |
Accounting Policies [Abstract] | |||
Number of reportable segments | 2 | 3 | 2 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jan. 11, 2021 | Sep. 04, 2020 | Jun. 30, 2021 |
Private Placement | |||
Business Acquisition [Line Items] | |||
Price per share (in dollars per share) | $ 10 | ||
Bakkt | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 100.00% | ||
Ellie Mae Intermediate Holdings I | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 11,400 | ||
Payments to acquire businesses, gross | 9,500 | ||
Cash acquired in excess of payments to acquire business | 335 | ||
Business combination, consideration transferred, equity interests issued and issuable | $ 1,900 | ||
Equity interests issued and issuable (in shares) | 18.4 | ||
Bakkt, LCC and VPC Impact Acquisition Holdings | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 50 | ||
Cash held on the date of acquisition | 500 | ||
Cash from trust account | 207 | ||
Bakkt, LCC and VPC Impact Acquisition Holdings | Private Placement | |||
Business Acquisition [Line Items] | |||
Consideration of sale of stock | $ 325 | ||
Bakkt, LCC and VPC Impact Acquisition Holdings | Forecast | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 65.00% | ||
Bakkt | Combined Company | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 78.00% | ||
VPC Impact Acquisition Holdings Shareholders | Combined Company | |||
Business Acquisition [Line Items] | |||
Noncontrolling interest percentage | 8.00% | ||
Victory Park Capital | Combined Company | |||
Business Acquisition [Line Items] | |||
Noncontrolling interest percentage | 2.00% | ||
PIPE | Combined Company | |||
Business Acquisition [Line Items] | |||
Noncontrolling interest percentage | 12.00% |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 04, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 21,304 | $ 21,291 | |
Ellie Mae Intermediate Holdings I | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 335 | ||
Property and equipment | 127 | ||
Goodwill | 7,719 | ||
Identifiable intangibles | $ 4,442 | 4,442 | |
Other assets and liabilities, net | 51 | ||
Deferred tax liabilities on identifiable intangibles | (1,246) | ||
Total preliminary purchase price allocation | $ 11,428 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Schedule of Components of the Preliminary Intangible Assets Associated with the Acquisition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 04, 2020 | |
Business Acquisition [Line Items] | |||
Total other intangible assets, net | $ 14,242 | $ 14,408 | |
Ellie Mae Intermediate Holdings I | |||
Business Acquisition [Line Items] | |||
Total | 4,442 | $ 4,442 | |
Accumulated Amortization | (194) | ||
Total other intangible assets, net | 4,248 | ||
Ellie Mae Intermediate Holdings I | In-process Research & Development | |||
Business Acquisition [Line Items] | |||
In-process Research & Development | 67 | ||
Total, Net Book Value | 67 | ||
Customer relationships | Ellie Mae Intermediate Holdings I | |||
Business Acquisition [Line Items] | |||
Acquisition-Date Preliminary Fair Value | 3,136 | ||
Accumulated Amortization | (93) | ||
Total finite-lived intangible assets, net | $ 3,043 | ||
Customer relationships | Ellie Mae Intermediate Holdings I | Minimum | |||
Business Acquisition [Line Items] | |||
Useful life (in years) | 10 years | ||
Customer relationships | Ellie Mae Intermediate Holdings I | Maximum | |||
Business Acquisition [Line Items] | |||
Useful life (in years) | 20 years | ||
Backlog | Ellie Mae Intermediate Holdings I | |||
Business Acquisition [Line Items] | |||
Acquisition-Date Preliminary Fair Value | $ 300 | ||
Accumulated Amortization | (34) | ||
Total finite-lived intangible assets, net | $ 266 | ||
Useful life (in years) | 5 years | ||
Trademark/Tradenames | Ellie Mae Intermediate Holdings I | |||
Business Acquisition [Line Items] | |||
Acquisition-Date Preliminary Fair Value | $ 200 | ||
Accumulated Amortization | (6) | ||
Total finite-lived intangible assets, net | $ 194 | ||
Trademark/Tradenames | Ellie Mae Intermediate Holdings I | Minimum | |||
Business Acquisition [Line Items] | |||
Useful life (in years) | 5 years | ||
Trademark/Tradenames | Ellie Mae Intermediate Holdings I | Maximum | |||
Business Acquisition [Line Items] | |||
Useful life (in years) | 20 years | ||
Developed Technology | Ellie Mae Intermediate Holdings I | |||
Business Acquisition [Line Items] | |||
Acquisition-Date Preliminary Fair Value | $ 739 | ||
Accumulated Amortization | (61) | ||
Total finite-lived intangible assets, net | $ 678 | ||
Useful life (in years) | 7 years |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Business Acquisition Pro Forma Information (Details) - Ellie Mae Intermediate Holdings I $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Total revenues, less transaction-based expenses | $ 1,733 |
Net income attributable to ICE | $ 608 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for doubtful accounts, beginning balance | $ 27 |
Bad debt expense | 3 |
Charge-offs | (3) |
Allowance for doubtful accounts, ending balance | $ 27 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | Apr. 15, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 14, 2021 | Dec. 01, 2014 |
Options Clearing Corporation | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 40.00% | |||||
Equity earnings in other income | $ 25 | $ 17 | ||||
Options Clearing Corporation | Restatement Adjustment | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings in other income | $ 16 | $ 7 | ||||
Euroclear | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 9.80% | |||||
Dividend income | $ 30 | |||||
Coinbase Global, Inc | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value of investments | $ 10 | |||||
Ownership percentage | 1.40% | |||||
Coinbase Global, Inc | Forecast | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on sale of investment | $ 1,230 | |||||
Coinbase Global, Inc | Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 1.40% | |||||
Proceeds from sale of investments | $ 1,240 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2,429 | $ 2,115 |
Transaction-based expenses | 632 | 556 |
Revenues, less transaction-based expenses | 1,797 | 1,559 |
Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,606 | 1,605 |
Transaction-based expenses | 632 | 556 |
Revenues, less transaction-based expenses | 974 | 1,049 |
Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 468 | 464 |
Transaction-based expenses | 0 | 0 |
Revenues, less transaction-based expenses | 468 | 464 |
Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 355 | 46 |
Transaction-based expenses | 0 | 0 |
Revenues, less transaction-based expenses | 355 | 46 |
Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 842 | 765 |
Services transferred at a point in time | Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 561 | 638 |
Services transferred at a point in time | Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 60 | 83 |
Services transferred at a point in time | Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 221 | 44 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 955 | 794 |
Services transferred over time | Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 413 | 411 |
Services transferred over time | Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 408 | 381 |
Services transferred over time | Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, less transaction-based expenses | 134 | 2 |
Exchanges | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,606 | 1,605 |
Exchanges | Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,606 | 1,605 |
Exchanges | Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Exchanges | Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Fixed Income and Data Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 468 | 464 |
Fixed Income and Data Services | Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Fixed Income and Data Services | Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 468 | 464 |
Fixed Income and Data Services | Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Mortgage Technology | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 355 | 46 |
Mortgage Technology | Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Mortgage Technology | Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Mortgage Technology | Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 355 | $ 46 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2,429 | $ 2,115 |
Description of payment terms | Contracts generally range from one year to five years. | |
Interest rates and other financial futures and options contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 9 | 10 |
Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 399 | 371 |
Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,606 | 1,605 |
Exchanges Segment | Services transferred over time | Interest rates and other financial futures and options contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 66 | 78 |
Exchanges Segment | Services transferred over time | Interest rates and other financial futures and options contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 month | |
Exchanges Segment | Services transferred over time | Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 207 | $ 193 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill balance at December 31, 2020 | $ 21,291 |
Foreign currency translation | 3 |
Other activity, net | 10 |
Goodwill balance at March 31, 2021 | $ 21,304 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Other intangible assets balance at December 31, 2020 | $ 14,408 |
Foreign currency translation | 4 |
Amortization of other intangible assets | (159) |
Other activity, net | (11) |
Other intangible assets balance at March 31, 2021 | $ 14,242 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
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, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Total deferred revenue | $ 634 | $ 585 | $ 259 | $ 201 |
Deferred revenue, current | 523 | $ 158 | ||
Noncurrent deferred revenue | 111 | |||
Revenue recognized | $ 62 | $ 44 |
Deferred Revenue - Schedule of
Deferred Revenue - Schedule of Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | $ 259 | $ 201 |
Additions | 604 | 592 |
Amortization | (229) | (208) |
Ending balance | 634 | 585 |
Annual Listings Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 0 | 0 |
Additions | 377 | 381 |
Amortization | (96) | (96) |
Ending balance | 281 | 285 |
Original Listings Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 13 | 19 |
Additions | 9 | 4 |
Amortization | (6) | (5) |
Ending balance | 16 | 18 |
Other Listings Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 92 | 94 |
Additions | 24 | 21 |
Amortization | (12) | (11) |
Ending balance | 104 | 104 |
Data Services and Other Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 95 | 88 |
Additions | 175 | 186 |
Amortization | (105) | (96) |
Ending balance | 165 | $ 178 |
Mortgage Technology | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 59 | |
Additions | 19 | |
Amortization | (10) | |
Ending balance | $ 68 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Short-term debt: | ||
Commercial Paper | $ 2,062 | $ 2,405 |
Other short-term debt | 6 | 6 |
Total short-term debt | 2,068 | 2,411 |
Long-term debt: | ||
Total long-term debt | 14,131 | 14,126 |
Total debt | $ 16,199 | 16,537 |
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 | $ 499 | 498 |
Total debt | 499 | |
Senior Notes | 2023 Senior Notes (floating rate senior unsecured notes due June 15, 2023) | ||
Long-term debt: | ||
Senior notes | 1,245 | 1,244 |
Total debt | $ 1,245 | |
Senior Notes | 2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 0.70% | |
Long-term debt: | ||
Senior notes | $ 995 | 995 |
Total debt | $ 995 | |
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 | $ 399 | 398 |
Total debt | $ 399 | |
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 | $ 796 | 796 |
Total debt | $ 796 | |
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 | $ 1,245 | 1,245 |
Total debt | $ 1,245 | |
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 | $ 497 | 496 |
Total debt | $ 497 | |
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 | $ 593 | 593 |
Total debt | $ 593 | |
Senior Notes | 2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.10% | |
Long-term debt: | ||
Senior notes | $ 1,232 | 1,232 |
Total debt | $ 1,232 | |
Senior Notes | 2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.85% | |
Long-term debt: | ||
Senior notes | $ 1,482 | 1,481 |
Total debt | $ 1,482 | |
Senior Notes | 2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.65% | |
Long-term debt: | ||
Senior notes | $ 1,229 | 1,229 |
Total debt | $ 1,229 | |
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 | $ 1,230 | 1,230 |
Total debt | $ 1,230 | |
Senior Notes | 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.00% | |
Long-term debt: | ||
Senior notes | $ 1,219 | 1,219 |
Total debt | $ 1,219 | |
Senior Notes | 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.00% | |
Long-term debt: | ||
Senior notes | $ 1,470 | $ 1,470 |
Total debt | $ 1,470 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Aug. 21, 2020 | |
Line of Credit Facility [Line Items] | ||||
Other short-term debt | $ 6,000,000 | $ 6,000,000 | ||
Repayments of commercial paper | 343,000,000 | $ (503,000,000) | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 3,800,000,000 | |||
Additional borrowing capacity | $ 625,000,000 | |||
Amount of debt outstanding | 0 | |||
Currently available for borrowing | 3,800,000,000 | |||
Amount required to stop broker-dealer subsidiary commitments | 172,000,000 | |||
Funds available to use for working capital and general and corporate purposes | 1,500,000,000 | |||
Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 20,000,000 | |||
Other short-term debt | 6,000,000 | |||
Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 12,900,000,000 | |||
Debt instrument, term (in months) | 16 years | |||
Weighted average interest rate | 3.00% | |||
Other short-term debt | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Funds reserved for commercial paper program | $ 2,100,000,000 | |||
Weighted average interest rate | 0.33% | |||
Weighted average maturity period (in days) | 41 days | |||
Other short-term debt | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commercial paper maturities (in days) | 1 day | |||
Other short-term debt | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commercial paper maturities (in days) | 176 days |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Class of Stock [Line Items] | |||
Non-cash expense recognized | $ 36 | $ 41 | |
Acquisition costs | $ 18 | 12 | |
Time Based Restricted Units | |||
Class of Stock [Line Items] | |||
Cost not yet recognized, period for recognition (in years) | 3 years | ||
Performance Based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Cost not yet recognized, period for recognition (in years) | 3 years | ||
Unrecognized compensation expense | $ 38 | $ 35 | |
Vested stock options (in shares) | 0.4 | ||
Stock-based compensation | 3 | ||
Amount of non-cash compensation remaining in fiscal period | $ 18 | ||
Maximum | Performance Based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Unrecognized compensation expense | $ 77 | ||
Shares reserved for future issuance (in shares) | 0.7 | ||
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 - Valu
Share-Based Compensation - Valuation Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Risk-free interest rate | 0.64% | 1.46% |
Expected life in years | 5 years 8 months 12 days | 5 years 9 months 18 days |
Expected volatility | 24.00% | 20.00% |
Expected dividend yield | 1.16% | 1.30% |
Estimated weighted-average fair value of options granted per share (in dollars per share) | $ 22.70 | $ 16.65 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jan. 01, 2020 | |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 2,400,000,000 | ||
Stock repurchase program, remaining authorized amount | $ 1,200,000,000 | ||
Cash dividends per share (in dollars per share) | $ 0.33 | $ 0.30 | |
Aggregate payout | $ 187,000,000 | $ 166,000,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 19,534 | $ 17,286 |
Other comprehensive income (loss) | 8 | (90) |
Ending Balance | 19,994 | 16,965 |
Accumulated other comprehensive loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (192) | (243) |
Other comprehensive income (loss) | 8 | (90) |
Income tax benefit (expense) | 0 | 0 |
Other comprehensive income (loss) | 8 | (90) |
Ending Balance | (184) | (333) |
Foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (134) | (177) |
Other comprehensive income (loss) | 6 | (90) |
Income tax benefit (expense) | 1 | 0 |
Other comprehensive income (loss) | 7 | (90) |
Ending Balance | (127) | (267) |
Comprehensive income from equity method investment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | 1 | 1 |
Other comprehensive income (loss) | 2 | 0 |
Income tax benefit (expense) | (1) | 0 |
Other comprehensive income (loss) | 1 | 0 |
Ending Balance | 2 | 1 |
Employee benefit plans adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (59) | (67) |
Other comprehensive income (loss) | 0 | 0 |
Income tax benefit (expense) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Ending Balance | $ (59) | $ (67) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 22.00% | 21.00% |
Clearing Operations - Narrative
Clearing Operations - Narrative (Details) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2021USD ($)clearing_house | Dec. 31, 2020USD ($) | Mar. 31, 2021EUR (€) | |
Principal Transaction Revenue [Line Items] | ||||||
Number of clearing houses | clearing_house | 6 | |||||
Margin deposits and guaranty funds assets received or pledged | $ 163,600,000,000 | $ 163,600,000,000 | $ 154,100,000,000 | |||
Default insurance term (in years) | 3 years | |||||
Default insurance | 250,000,000 | 250,000,000 | 250,000,000 | |||
Maximum exposure, undiscounted | 143,900,000,000 | 143,900,000,000 | ||||
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 | 15,000,000 | 15,000,000 | ||||
Default insurance | $ 25,000,000 | |||||
Committed repo | 250,000,000 | 250,000,000 | ||||
ICE Clear Europe | ||||||
Principal Transaction Revenue [Line Items] | ||||||
Guaranty fund contribution, decrease | $ 20,000,000 | |||||
Guaranty fund contribution, increase | 10,000,000 | 35,000,000 | ||||
Default insurance | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | ||
Committed repo | 1,000,000,000 | 1,000,000,000 | ||||
ICE Clear Credit | ||||||
Principal Transaction Revenue [Line Items] | ||||||
Default insurance | 50,000,000 | $ 50,000,000 | 50,000,000 | 50,000,000 | ||
Committed repo | 300,000,000 | 300,000,000 | € 250 | |||
Committed FX facilities | € | 1,900 | |||||
ICE NGX | ||||||
Principal Transaction Revenue [Line Items] | ||||||
Default insurance | 100,000,000 | 100,000,000 | $ 100,000,000 | |||
First-loss amount | 15,000,000 | |||||
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 | 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, 2021 | Dec. 31, 2020 | Sep. 30, 2019 |
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | $ 398 | $ 408 | |
Default insurance | 250 | 250 | |
ICE Clear Europe | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 247 | 237 | |
Default insurance | 75 | 75 | $ 75 |
ICE Clear U.S. | |||
Clearing Organizations [Line Items] | |||
ICE Portion of Guaranty Fund Contribution | 83 | 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 | 1 | 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, 2021 | Dec. 31, 2020 |
Clearing Organizations [Line Items] | ||
Original margin | $ 77,226 | $ 75,948 |
Unsettled variation margin, net | 146 | 99 |
Guaranty fund | 7,646 | 7,455 |
Delivery contracts receivable/payable, net | 590 | 581 |
Total | 85,608 | 84,083 |
ICE Clear Europe | ||
Clearing Organizations [Line Items] | ||
Original margin | 31,977 | 33,726 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 4,119 | 4,374 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 36,096 | 38,100 |
ICE Clear Europe | Futures and options | ||
Clearing Organizations [Line Items] | ||
Total | 31,200 | 31,800 |
ICE Clear Europe | CDS | ||
Clearing Organizations [Line Items] | ||
Total | 4,900 | 6,300 |
ICE Clear Credit | ||
Clearing Organizations [Line Items] | ||
Original margin | 37,753 | 34,922 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 2,930 | 2,574 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 40,683 | 37,496 |
ICE Clear U.S. | ||
Clearing Organizations [Line Items] | ||
Original margin | 7,477 | 7,288 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 592 | 502 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 8,069 | 7,790 |
ICE NGX | ||
Clearing Organizations [Line Items] | ||
Original margin | 0 | 0 |
Unsettled variation margin, net | 146 | 99 |
Guaranty fund | 0 | 0 |
Delivery contracts receivable/payable, net | 590 | 581 |
Total | 736 | 680 |
Other ICE Clearing Houses | ||
Clearing Organizations [Line Items] | ||
Original margin | 19 | 12 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 5 | 5 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | $ 24 | $ 17 |
Clearing Operations - Separate
Clearing Operations - Separate Cash Accounts (Details) € in Millions, £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2021GBP (£) | Dec. 31, 2020EUR (€) | Dec. 31, 2020GBP (£) | |
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 85,608 | $ 84,083 | ||||
Cash Deposit Based On Euro/US Dollar Exchange Rate | De Nederlandsche Bank | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 4,500 | $ 7,700 | € 3,800 | € 6,300 | ||
Exchange rate to USD | 1.1731 | 1.2216 | ||||
Cash Deposit Based On Euro/US Dollar Exchange Rate | Bank of England | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 12 | $ 12 | € 10 | € 10 | ||
Cash Deposit Based On Pound Sterling/US Dollar Exchange Rate | Bank of England | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 2,800 | $ 3,100 | £ 2,000 | £ 2,300 | ||
Exchange rate to USD | 1.3782 | 1.3665 | ||||
National Bank Account | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 7,229 | $ 10,887 | ||||
National Bank Account | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 35,069 | 30,275 | ||||
Reverse repo | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 24,896 | 23,696 | ||||
Reverse repo | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 3,211 | 4,520 | ||||
Reverse repo | ICE Clear U.S. | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 7,169 | 5,690 | ||||
Sovereign Debt | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 3,953 | 3,501 | ||||
Sovereign Debt | ICE Clear U.S. | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 900 | 2,100 | ||||
Demand deposits | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 18 | 16 | ||||
Demand deposits | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 2,403 | 2,701 | ||||
Demand deposits | Other ICE Clearing Houses | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 24 | 17 | ||||
Unsettled Variation Margin and Delivery Contracts Receivable/Payable | ICE NGX | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 736 | $ 680 |
Clearing Operations - Assets Pl
Clearing Operations - Assets Pledged by Clearing Members (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Original Margin | ||
Original margin: | ||
Government securities at face value | $ 73,458 | $ 66,034 |
Letters of credit | 2,773 | 2,329 |
ICE NGX cash deposits | 542 | 405 |
Total | 76,773 | 68,768 |
Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 1,169 | 1,273 |
ICE Clear Europe | Original Margin | ||
Original margin: | ||
Government securities at face value | 46,367 | 36,295 |
Letters of credit | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 46,367 | 36,295 |
ICE Clear Europe | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 552 | 508 |
ICE Clear Credit | Original Margin | ||
Original margin: | ||
Government securities at face value | 8,789 | 9,523 |
Letters of credit | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 8,789 | 9,523 |
ICE Clear Credit | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 333 | 515 |
ICE Clear U.S. | Original Margin | ||
Original margin: | ||
Government securities at face value | 18,302 | 20,216 |
Letters of credit | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 18,302 | 20,216 |
ICE Clear U.S. | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 284 | 250 |
ICE NGX | Original Margin | ||
Original margin: | ||
Government securities at face value | 0 | 0 |
Letters of credit | 2,773 | 2,329 |
ICE NGX cash deposits | 542 | 405 |
Total | 3,315 | 2,734 |
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, 2021 - ICE NGX $ in Millions, $ in Millions | CAD ($) | USD ($) |
Clearing Organizations [Line Items] | ||
Daylight liquidity facility | $ 300 | $ 239 |
Overdraft facility | 20 | 16 |
Total | $ 320 | $ 255 |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Millions | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for potential legal settlements | $ 30 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount | $ 16,199 | $ 16,537 |
Fair value of debt | 16,363 | |
Other short-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount | 2,062 | |
Fair value of debt | 2,065 | |
Other Short-Term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount | 6 | |
Fair value of debt | $ 6 | |
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 2.35% | |
Carrying amount | $ 499 | |
Fair value of debt | 513 | |
2023 Senior Notes (floating rate senior unsecured notes due June 15, 2023) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount | 1,245 | |
Fair value of debt | $ 1,252 | |
2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 0.70% | |
Carrying amount | $ 995 | |
Fair value of debt | $ 1,003 | |
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.45% | |
Carrying amount | $ 399 | |
Fair value of debt | $ 427 | |
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 4.00% | |
Carrying amount | $ 796 | |
Fair value of debt | $ 868 | |
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Carrying amount | $ 1,245 | |
Fair value of debt | $ 1,375 | |
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.10% | |
Carrying amount | $ 497 | |
Fair value of debt | $ 543 | |
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.75% | |
Carrying amount | $ 593 | |
Fair value of debt | $ 662 | |
2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 2.10% | |
Carrying amount | $ 1,232 | |
Fair value of debt | $ 1,204 | |
2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 1.85% | |
Carrying amount | $ 1,482 | |
Fair value of debt | $ 1,375 | |
2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 2.65% | |
Carrying amount | $ 1,229 | |
Fair value of debt | $ 1,158 | |
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 4.25% | |
Carrying amount | $ 1,230 | |
Fair value of debt | $ 1,405 | |
2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.00% | |
Carrying amount | $ 1,219 | |
Fair value of debt | $ 1,161 | |
2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.00% | |
Carrying amount | $ 1,470 | |
Fair value of debt | $ 1,346 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,429 | $ 2,115 |
Transaction-based expenses | 632 | 556 |
Total revenues, less transaction-based expenses | 1,797 | 1,559 |
Operating expenses | 905 | 677 |
Operating income | 892 | 882 |
Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,606 | 1,605 |
Transaction-based expenses | 632 | 556 |
Total revenues, less transaction-based expenses | 974 | 1,049 |
Operating expenses | 321 | 322 |
Operating income | 653 | 727 |
Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 468 | 464 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 468 | 464 |
Operating expenses | 335 | 330 |
Operating income | 133 | 134 |
Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 355 | 46 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 355 | 46 |
Operating expenses | 249 | 25 |
Operating income | 106 | 21 |
Energy futures and options | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 310 | 353 |
Energy futures and options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 310 | 353 |
Energy futures and options | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Energy futures and options | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Agricultural and metals futures and options | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 59 | 84 |
Agricultural and metals futures and options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 59 | 84 |
Agricultural and metals futures and options | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Agricultural and metals futures and options | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Financial futures and options | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 105 | 123 |
Financial futures and options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 105 | 123 |
Financial futures and options | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Financial futures and options | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Cash equities and equity options | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 734 | 669 |
Cash equities and equity options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 734 | 669 |
Cash equities and equity options | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Cash equities and equity options | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
OTC and other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 77 | 71 |
OTC and other | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 77 | 71 |
OTC and other | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
OTC and other | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Data and connectivity services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 207 | 193 |
Data and connectivity services | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 207 | 193 |
Data and connectivity services | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Data and connectivity services | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Listings | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 114 | 112 |
Listings | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 114 | 112 |
Listings | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Listings | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Fixed income execution | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 14 | 21 |
Fixed income execution | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Fixed income execution | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 14 | 21 |
Fixed income execution | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
CDS clearing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 55 | 72 |
CDS clearing | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
CDS clearing | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 55 | 72 |
CDS clearing | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Fixed income data and analytics | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 264 | 245 |
Fixed income data and analytics | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Fixed income data and analytics | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 264 | 245 |
Fixed income data and analytics | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Other data and network services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 135 | 126 |
Other data and network services | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Other data and network services | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 135 | 126 |
Other data and network services | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Origination technology | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 254 | |
Origination technology | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | |
Origination technology | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | |
Origination technology | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 254 | |
Network and closing solutions | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 70 | 44 |
Network and closing solutions | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Network and closing solutions | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Network and closing solutions | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 70 | 44 |
Data and analytics | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 18 | |
Data and analytics | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | |
Data and analytics | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | |
Data and analytics | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 18 | |
Registrations and other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 13 | 2 |
Registrations and other | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Registrations and other | Fixed Income and Data Services | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Registrations and other | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 13 | $ 2 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | Oct. 01, 2020segment | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($)member | Mar. 31, 2019member | Sep. 30, 2020segment |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 2,429 | $ 2,115 | |||
Number of reportable segments | segment | 2 | 3 | 2 | ||
Exchanges Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 1,606 | $ 1,605 | |||
Revenue | Exchanges Segment | |||||
Segment Reporting Information [Line Items] | |||||
Number of members | member | 1 | 1 | |||
Total revenues | $ 109 | $ 116 | |||
Concentration risk, percentage | 11.00% | 11.00% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic: | ||
Net income attributable to Intercontinental Exchange, Inc. | $ 646 | $ 650 |
Weighted average common shares outstanding (in shares) | 562,000 | 552,000 |
Basic earnings per common share (in dollars per share) | $ 1.15 | $ 1.18 |
Diluted: | ||
Weighted average common shares outstanding (in shares) | 562,000 | 552,000 |
Effect of dilutive securities - stock options and restricted (in shares) | 3,000 | 3,000 |
Diluted weighted average common shares outstanding (in shares) | 565,000 | 555,000 |
Diluted earnings per common share (in dollars per share) | $ 1.14 | $ 1.17 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 190 | 246 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Coinbase Global, Inc - USD ($) $ in Millions | Apr. 15, 2021 | Jun. 30, 2021 | Apr. 14, 2021 | Dec. 01, 2014 |
Subsequent Event [Line Items] | ||||
Ownership percentage | 1.40% | |||
Forecast | ||||
Subsequent Event [Line Items] | ||||
Gain on sale of investment | $ 1,230 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Ownership percentage | 1.40% | |||
Proceeds from sale of investments | $ 1,240 |
Uncategorized Items - ice-20210
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |