Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.01 par value per share | |
Trading Symbol | ICE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 559,866,960 | |
Entity Central Index Key | 0001571949 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,069 | $ 1,799 |
Short-term restricted cash and cash equivalents | 6,145 | 6,149 |
Cash and cash equivalent margin deposits and guaranty funds | 102,072 | 141,990 |
Invested deposits, delivery contracts receivable and unsettled variation margin | 1,897 | 5,382 |
Customer accounts receivable, net of allowance for doubtful accounts of $21 and $22 at March 31, 2023 and December 31, 2022, respectively | 1,650 | 1,169 |
Prepaid expenses and other current assets | 503 | 458 |
Total current assets | 114,336 | 156,947 |
Property and equipment, net | 1,727 | 1,767 |
Other non-current assets: | ||
Goodwill | 21,120 | 21,111 |
Other intangible assets, net | 12,946 | 13,090 |
Long-term restricted cash and cash equivalents | 405 | 405 |
Other non-current assets | 1,016 | 1,018 |
Total other non-current assets | 35,487 | 35,624 |
Total assets | 151,550 | 194,338 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 949 | 866 |
Section 31 fees payable | 118 | 223 |
Accrued salaries and benefits | 146 | 352 |
Deferred revenue | 562 | 170 |
Short-term debt | 0 | 4 |
Margin deposits and guaranty funds | 102,072 | 141,990 |
Invested deposits, delivery contracts payable and unsettled variation margin | 1,897 | 5,382 |
Other current liabilities | 262 | 184 |
Total current liabilities | 106,006 | 149,171 |
Non-current liabilities: | ||
Non-current deferred tax liability, net | 3,409 | 3,493 |
Long-term debt | 18,123 | 18,118 |
Accrued employee benefits | 157 | 160 |
Non-current operating lease liability | 233 | 254 |
Other non-current liabilities | 411 | 381 |
Total non-current liabilities | 22,333 | 22,406 |
Total liabilities | 128,339 | 171,577 |
Commitments and contingencies | ||
Intercontinental Exchange, Inc. stockholders’ equity: | ||
Preferred stock, $0.01 par value; 100 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 1,500 shares authorized; 635 and 634 issued at March 31, 2023 and December 31, 2022, respectively, and 559 shares outstanding for both March 31, 2023 and December 31, 2022 | 6 | 6 |
Treasury stock, at cost; 76 and 75 shares at March 31, 2023 and December 31, 2022, respectively | (6,274) | (6,225) |
Additional paid-in capital | 14,388 | 14,313 |
Retained earnings | 15,362 | 14,943 |
Accumulated other comprehensive loss | (315) | (331) |
Total Intercontinental Exchange, Inc. stockholders’ equity | 23,167 | 22,706 |
Non-controlling interest in consolidated subsidiaries | 44 | 55 |
Total equity | 23,211 | 22,761 |
Total liabilities and equity | $ 151,550 | $ 194,338 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Customer accounts receivable, net of allowance for doubtful accounts | $ 21 | $ 22 |
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) | 635,000,000 | 634,000,000 |
Common stock, outstanding (in shares) | 559,000,000 | 559,000,000 |
Treasury stock (in shares) | 76,000,000 | 75,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total revenues | $ 2,472 | $ 2,459 |
Transaction-based expenses: | ||
Section 31 fees | 119 | 51 |
Cash liquidity payments, routing and clearing | 457 | 509 |
Total revenues, less transaction-based expenses | 1,896 | 1,899 |
Operating expenses: | ||
Compensation and benefits | 352 | 359 |
Professional services | 28 | 34 |
Acquisition-related transaction and integration costs | 21 | 9 |
Technology and communication | 172 | 175 |
Rent and occupancy | 20 | 21 |
Selling, general and administrative | 74 | 55 |
Depreciation and amortization | 260 | 254 |
Total operating expenses | 927 | 907 |
Operating income | 969 | 992 |
Other income/(expense): | ||
Interest income | 91 | 1 |
Interest expense | (176) | (103) |
Other expense, net | (35) | (58) |
Total other income/(expense), net | (120) | (160) |
Income before income tax expense | 849 | 832 |
Income tax expense | 175 | 165 |
Net income | 674 | 667 |
Net income attributable to non-controlling interest | (19) | (10) |
Net income attributable to Intercontinental Exchange, Inc. | $ 655 | $ 657 |
Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders: | ||
Basic (in dollars per share) | $ 1.17 | $ 1.17 |
Diluted (in dollars per share) | $ 1.17 | $ 1.16 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 559 | 561 |
Diluted (in shares) | 561 | 564 |
Exchanges | ||
Revenues: | ||
Total revenues | $ 1,673 | $ 1,643 |
Fixed income and data services | ||
Revenues: | ||
Total revenues | 563 | 509 |
Mortgage technology | ||
Revenues: | ||
Total revenues | $ 236 | $ 307 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 674 | $ 667 |
Other comprehensive income/(loss): | ||
Foreign currency translation adjustments | 16 | (25) |
Other comprehensive income/(loss) | 16 | (25) |
Comprehensive income | 690 | 642 |
Comprehensive income attributable to non-controlling interest | (19) | (10) |
Comprehensive income attributable to Intercontinental Exchange, Inc. | $ 671 | $ 632 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity and Redeemable Non-Controlling Interest - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Non- Controlling Interest in Consolidated Subsidiaries |
Common stock, shares beginning (in shares) at Mar. 31, 2022 | 633 | ||||||
Treasury stock, shares beginning (in shares) at Dec. 31, 2021 | (70) | ||||||
Beginning balance at Dec. 31, 2021 | $ 22,748 | $ 6 | $ (5,520) | $ 14,069 | $ 14,350 | $ (196) | $ 39 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (25) | (25) | |||||
Exercise of common stock options | 15 | 15 | |||||
Repurchases of common stock (in shares) | (3) | ||||||
Repurchases of common stock | (475) | $ (475) | |||||
Payments relating to treasury shares (in shares) | (1) | ||||||
Payments relating to treasury shares | (69) | $ (69) | |||||
Stock-based compensation | 45 | 45 | |||||
Issuance under the employee stock purchase plan | 24 | 24 | |||||
Issuance of restricted stock (in shares) | 2 | ||||||
Distributions of profits | (13) | (13) | |||||
Dividends paid to stockholders | (214) | (214) | |||||
Net income/(loss) attributable to non-controlling interest | 0 | (10) | 10 | ||||
Net income | 667 | 667 | |||||
Common stock, shares ending (in shares) at Dec. 31, 2021 | 631 | ||||||
Treasury stock, shares ending (in shares) at Mar. 31, 2022 | (74) | ||||||
Ending balance at Mar. 31, 2022 | $ 22,703 | $ 6 | $ (6,064) | 14,153 | 14,793 | (221) | 36 |
Common stock, shares beginning (in shares) at Mar. 31, 2023 | 559 | 635 | |||||
Treasury stock, shares beginning (in shares) at Dec. 31, 2022 | (75) | (75) | |||||
Beginning balance at Dec. 31, 2022 | $ 22,761 | $ 6 | $ (6,225) | 14,313 | 14,943 | (331) | 55 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 16 | 16 | |||||
Exercise of common stock options | $ 10 | 10 | |||||
Repurchases of common stock (in shares) | (3.7) | ||||||
Repurchases of common stock | $ (475) | ||||||
Payments relating to treasury shares (in shares) | (1) | ||||||
Payments relating to treasury shares | (49) | $ (49) | |||||
Stock-based compensation | 47 | 47 | |||||
Issuance under the employee stock purchase plan | 18 | 18 | |||||
Issuance of restricted stock (in shares) | 1 | ||||||
Distributions of profits | (30) | (30) | |||||
Dividends paid to stockholders | (236) | (236) | |||||
Net income/(loss) attributable to non-controlling interest | 0 | (19) | 19 | ||||
Net income | $ 674 | 674 | |||||
Common stock, shares ending (in shares) at Dec. 31, 2022 | 559 | 634 | |||||
Treasury stock, shares ending (in shares) at Mar. 31, 2023 | (76) | (76) | |||||
Ending balance at Mar. 31, 2023 | $ 23,211 | $ 6 | $ (6,274) | $ 14,388 | $ 15,362 | $ (315) | $ 44 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income | $ 674 | $ 667 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 260 | 254 |
Stock-based compensation | 40 | 38 |
Deferred taxes | (83) | (86) |
Net losses from unconsolidated investees | 35 | 42 |
Other | 10 | 9 |
Changes in assets and liabilities: | ||
Customer accounts receivable | (484) | (480) |
Other current and non-current assets | (88) | (56) |
Section 31 fees payable | (105) | (7) |
Deferred revenue | 406 | 411 |
Other current and non-current liabilities | (12) | (36) |
Total adjustments | (21) | 89 |
Net cash provided by operating activities | 653 | 756 |
Investing activities: | ||
Capital expenditures | (21) | (36) |
Capitalized software development costs | (64) | (67) |
Purchases of invested margin deposits | (463) | (651) |
Proceeds from sales of invested margin deposits | 2,605 | 1,709 |
Other | (12) | (73) |
Net cash provided by investing activities | 2,045 | 882 |
Financing activities: | ||
Repayments of debt | (4) | 0 |
Proceeds from commercial paper, net | 0 | 256 |
Repurchases of common stock | 0 | (475) |
Dividends to stockholders | (236) | (214) |
Change in cash and cash equivalent margin deposits and guaranty funds | (42,059) | 14,153 |
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises | (49) | (69) |
Other | (3) | 27 |
Net cash provided by/(used in) financing activities | (42,351) | 13,678 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents, and cash and cash equivalent margin deposits and guaranty funds | 1 | (1) |
Net increase/(decrease) in cash, cash equivalents, restricted cash and cash equivalents, and cash and cash equivalent margin deposits and guaranty funds | (39,652) | 15,315 |
Cash, cash equivalents, restricted cash and cash equivalents, and cash and cash equivalent margin deposits and guaranty funds at beginning of period | 150,343 | 147,976 |
Cash, cash equivalents, restricted cash and cash equivalents, and cash and cash equivalent margin deposits and guaranty funds at end of period | 110,691 | 163,291 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes | 149 | 90 |
Cash paid for interest | 167 | 117 |
Reconciliation of the components of cash, cash equivalents, restricted cash and cash equivalents, and cash and cash equivalent margin deposits and guaranty funds to the balance sheet: | ||
Cash and cash equivalents | 2,069 | 638 |
Short-term restricted cash and cash equivalents | 6,145 | 1,101 |
Long-term restricted cash and cash equivalents | 405 | 405 |
Cash and cash equivalent margin deposits and guaranty funds | 102,072 | 161,147 |
Total | $ 110,691 | $ 163,291 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Nature of Business and Organization Intercontinental Exchange, Inc. is 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 tools that are designed to increase asset class transparency and workflow efficiency. Our business is conducted through three reportable business segments: • Exchanges: We operate regulated marketplaces for the listing, trading and clearing of a broad array of derivatives contracts and financial securities. • Fixed Income and Data Services: We provide fixed income pricing, reference data, indices, analytics and execution services as well as global credit default swap, or CDS, clearing and multi-asset class data delivery solutions. • Mortgage Technology: We provide a technology platform that offers customers comprehensive, digital workflow tools that aim to address the inefficiencies that exist in the U.S. residential mortgage market, from application through closing and the secondary market. We operate marketplaces, technology and provide data services in the U.S., United Kingdom, or U.K., European Union, or EU, Canada, Asia Pacific and the Middle East. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared 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, 2022. 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, 2023 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. We have considered the impacts of macroeconomic conditions, including recent banking sector events and the uncertainty surrounding the U.S. debt ceiling, as well as the ongoing conflict between Russia, Belarus and Ukraine on our financial statements. As of March 31, 2023, our businesses and operations, including our exchanges, clearing houses, listings venues, data services businesses and mortgage platforms, have not suffered a material negative impact as a result of these events. There continues to be uncertainty surrounding the extent and duration of this ongoing conflict and the impact that it may have on the global economy and on our business. Recently Adopted Accounting Pronouncements During the three months ended March 31, 2023, there were no significant changes to the new and recently adopted accounting pronouncements applicable to us from those disclosed in Note 2 to the consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2022, or the 2022 Form 10-K. |
Pending Acquisition
Pending Acquisition | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Pending Acquisition | Acquisition Pending Acquisition of Black Knight, Inc. On May 4, 2022, we announced that we had entered into a definitive agreement to acquire Black Knight, Inc., or Black Knight, a software, data and analytics company that serves the housing finance continuum, including real estate data, mortgage lending and servicing, as well as the secondary markets. Pursuant to that certain Agreement and Plan of Merger, dated as of May 4, 2022, among ICE, Sand Merger Sub Corporation, a wholly owned subsidiary of ICE, or Sub, and Black Knight, which we refer to as the “merger agreement,” Sub will merge with and into Black Knight, which we refer to as the “merger,” with Black Knight surviving as a wholly owned subsidiary of ICE. On March 7, 2023, ICE and Black Knight announced that, in connection with the merger agreement, Black Knight has entered into an agreement to sell its loan origination business. On March 7, 2023, ICE and Black Knight also entered into an amendment to the merger agreement to reduce the value of the aggregate transaction consideration to approximately $11.7 billion as of March 7, 2023, or $75 per share of Black Knight common stock, with cash comprising 90% of the value of the aggregate transaction consideration and shares of our common stock comprising 10% of the value of the aggregate transaction consideration. The aggregate cash component of the transaction consideration is fixed at $10.5 billion, and the value of the aggregate stock component of the transaction consideration will fluctuate with the market price of our common stock and will be determined based on the average of the volume weighted averages of the trading prices of our common stock on each of the ten consecutive trading days ending three trading days prior to the closing of the merger. If consummated, we expect that this transaction will build on our position as a provider of end-to-end electronic workflow solutions for the rapidly evolving U.S. residential mortgage industry. We believe the Black Knight ecosystem adds value for clients of all sizes across the mortgage and real estate lifecycles by helping organizations lower costs, increase efficiencies, grow their businesses, and reduce risk. On March 30, 2023, our amended proxy statement/prospectus on Form S-4 was declared effective by the SEC, and on April 28, 2023, Black Knight stockholders approved the amendment to the merger agreement. The transaction is expected to close in the second half of 2023 following the receipt of regulatory approvals, a favorable resolution of the FTC litigation concerning this transaction, and the satisfaction of customary closing conditions. See Note 13 where additional details of this transaction are discussed. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Equity Investments Subject to ASU 2016-01 Our equity investments are subject to valuation under Accounting Standards Update, or ASU, 2016-01, Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. See Note 14 for a discussion of our determination of fair value of our financial instruments, which were not material as of March 31, 2023. Equity Method Investments Our equity method investments include the Options Clearing Corporation, or OCC, and Bakkt Holdings, LLC, or Bakkt, among others. Our equity method investments are included in other non-current assets in the accompanying consolidated balance sheet. We initially record our equity method investments at cost. At the end of each reporting period, we record our share of profits or losses of our equity method investments as equity earnings included in other income, and adjust the carrying value of our equity method investment accordingly. In addition, if and when our equity method investments issue cash dividends to us, we deduct the amount of these dividends from the carrying amount of that investment. We assess the carrying value periodically if impairment indicators are present. We recognized $35 million and $42 million as our share of estimated losses, net, from our equity method investments during the three months ended March 31, 2023 and 2022, respectively. The estimated losses during both the three months ended March 31, 2023 and March 31, 2022 are primarily related to our investment in Bakkt, partially offset by our share of OCC profits. Both periods include adjustments to reflect the difference between reported prior period actual results from our original estimates. When performing our assessment of the carrying value of our investments, we consider, among other things, the length of time and the extent to which the market value has been less than our cost basis, if applicable, the investee's financial condition and near-term prospects, the economic or technological environment in which our investees operate, weakening of the general market condition of the related industry, whether an investee can continue as a going concern, any impairment charges recorded by an investee on goodwill, intangible or long-lived assets, and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. Investment in OCC We own a 40% interest in OCC through a direct investment by the New York Stock Exchange, or NYSE. OCC is regulated by the SEC as a registered clearing agency and by the Commodity Futures Trading Commission, or CFTC, as a derivatives clearing organization. OCC serves as a clearing house for securities options, security futures, commodity futures and options on futures traded on various independent exchanges. OCC clears securities options traded on NYSE Arca and NYSE Amex Options, along with other non-affiliated exchanges. Investment in Bakkt As of March 31, 2023, we held an approximate 66% economic interest in Bakkt. As a result of limitations on ICE from the Bakkt voting agreement entered into in connection with Bakkt's merger with VIH, we hold a minority voting interest in Bakkt and treat it as an equity method investment. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
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. 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. 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 7 for our discussion of deferred revenue balances, activity, and expected timing of recognition. 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, which are primarily our sales commissions. Refer to Note 5 to the consolidated financial statements included in Part II, Item 8 of our 2022 Form 10-K where our primary revenue contract classifications are described in detail. The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 15: Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three Months Ended March 31, 2023: Total revenues $ 1,673 $ 563 $ 236 $ 2,472 Transaction-based expenses 576 — — 576 Total revenues, less transaction-based expenses $ 1,097 $ 563 $ 236 $ 1,896 Timing of Revenue Recognition Services transferred at a point in time $ 635 $ 123 $ 67 $ 825 Services transferred over time 462 440 169 1,071 Total revenues, less transaction-based expenses $ 1,097 $ 563 $ 236 $ 1,896 Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three Months Ended March 31, 2022: Total revenues $ 1,643 $ 509 $ 307 $ 2,459 Transaction-based expenses 560 — — 560 Total revenues, less transaction-based expenses $ 1,083 $ 509 $ 307 $ 1,899 Timing of Revenue Recognition Services transferred at a point in time $ 634 $ 76 $ 142 $ 852 Services transferred over time 449 433 165 1,047 Total revenues, less transaction-based expenses $ 1,083 $ 509 $ 307 $ 1,899 The Exchanges segment and the Fixed Income and Data Services segment revenues above include data services revenues. Our data services revenues are transferred over time, and 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 transferred over time in the table above also include services related to listings, services related to risk management of open interest performance obligations and services related to regulatory fees, trading permits, and software licenses. The Fixed Income and Data Services segment revenues transferred over time in the table above also include services related to risk management of open interest performance obligations, primarily in our CDS business. 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, and to a lesser extent, professional services revenues and revenues from certain of our data and analytics offerings. The components of services transferred over time for each of our segments are as follows: Three Months Ended March 31, 2023 2022 Exchanges Segment: Data services revenues $ 232 $ 214 Services transferred over time related to risk management of open interest performance obligations 76 76 Services transferred over time related to listings 126 129 Services transferred over time related to regulatory fees, trading permits, and software licenses 28 30 Total $ 462 $ 449 Fixed Income Data Services Segment: Data services revenues $ 430 $ 422 Services transferred over time related to risk management of open interest performance obligations in our CDS business 10 11 Total $ 440 $ 433 Mortgage Technology Segment: Subscription revenues $ 165 $ 156 Professional service revenues and other 4 9 Total $ 169 $ 165 Total consolidated revenues transferred over time $ 1,071 $ 1,047 Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $661 million as of March 31, 2023, including $562 million in current deferred revenue and $99 million in other non-current liabilities. The changes in our deferred revenue during the three months ended March 31, 2023 are as follows (in millions): Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at January 1, 2023 $ 115 $ 88 $ 51 $ 254 Additions 470 159 14 643 Amortization (127) (89) (20) (236) Deferred revenue balance at March 31, 2023 $ 458 $ 158 $ 45 $ 661 The changes in our deferred revenue during the three months ended March 31, 2022 are as follows (in millions): Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at January 1, 2022 $ 112 $ 93 $ 79 $ 284 Additions 472 186 26 684 Amortization (129) (112) (32) (273) Deferred revenue balance at March 31, 2022 $ 455 $ 167 $ 73 $ 695 Included in the amortization recognized during the three months ended March 31, 2023 is $67 million related to the deferred revenue balance as of January 1, 2023. Included in the amortization recognized for the three months ended March 31, 2022 is $73 million related to the deferred revenue balance as of January 1, 2022. As of March 31, 2023, the remaining deferred revenue balance will be recognized over the period of time we satisfy our performance obligations as described in Note 5. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
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 our goodwill balance for the three months ended March 31, 2023 (in millions): Goodwill balance at December 31, 2022 $ 21,111 Foreign currency translation 8 Other activity, net 1 Goodwill balance at March 31, 2023 $ 21,120 The following is a summary of the activity in our other intangible assets balance for the three months ended March 31, 2023 (in millions): Other intangible assets balance at December 31, 2022 $ 13,090 Foreign currency translation 6 Amortization of other intangible assets (150) Other intangible assets balance at March 31, 2023 $ 12,946 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 changes in other activity, net, in the table above primarily relate to adjustments to the fair value of the net tangible and intangible assets made within one year of acquisitions, with a corresponding adjustment to goodwill. During the three months ended March 31, 2023, we considered potential indicators of impairment to goodwill and other intangible assets for each of our reporting units, which included declines in our stock price and recent inflation spikes and rising interest rates, including their effect on our forecasts, among others. As such, we performed this assessment to determine whether it was more-likely-than-not that goodwill and indefinite lived intangibles within each of our reportable business segments were impaired. Additionally, we evaluated whether the carrying value of the finite lived intangible assets within our reportable business segments may not be recoverable. After evaluating events, circumstances and factors which could affect the significant inputs used in our evaluation of cash flows and related fair value, we determined it was not more-likely-than-not that an impairment existed in our goodwill and indefinite lived intangible assets or that the carrying amount of our finite lived intangible assets was not recoverable. We plan to perform our annual impairment testing in the fourth quarter. |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Mar. 31, 2023 | |
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. 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. 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 7 for our discussion of deferred revenue balances, activity, and expected timing of recognition. 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, which are primarily our sales commissions. Refer to Note 5 to the consolidated financial statements included in Part II, Item 8 of our 2022 Form 10-K where our primary revenue contract classifications are described in detail. The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 15: Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three Months Ended March 31, 2023: Total revenues $ 1,673 $ 563 $ 236 $ 2,472 Transaction-based expenses 576 — — 576 Total revenues, less transaction-based expenses $ 1,097 $ 563 $ 236 $ 1,896 Timing of Revenue Recognition Services transferred at a point in time $ 635 $ 123 $ 67 $ 825 Services transferred over time 462 440 169 1,071 Total revenues, less transaction-based expenses $ 1,097 $ 563 $ 236 $ 1,896 Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three Months Ended March 31, 2022: Total revenues $ 1,643 $ 509 $ 307 $ 2,459 Transaction-based expenses 560 — — 560 Total revenues, less transaction-based expenses $ 1,083 $ 509 $ 307 $ 1,899 Timing of Revenue Recognition Services transferred at a point in time $ 634 $ 76 $ 142 $ 852 Services transferred over time 449 433 165 1,047 Total revenues, less transaction-based expenses $ 1,083 $ 509 $ 307 $ 1,899 The Exchanges segment and the Fixed Income and Data Services segment revenues above include data services revenues. Our data services revenues are transferred over time, and 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 transferred over time in the table above also include services related to listings, services related to risk management of open interest performance obligations and services related to regulatory fees, trading permits, and software licenses. The Fixed Income and Data Services segment revenues transferred over time in the table above also include services related to risk management of open interest performance obligations, primarily in our CDS business. 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, and to a lesser extent, professional services revenues and revenues from certain of our data and analytics offerings. The components of services transferred over time for each of our segments are as follows: Three Months Ended March 31, 2023 2022 Exchanges Segment: Data services revenues $ 232 $ 214 Services transferred over time related to risk management of open interest performance obligations 76 76 Services transferred over time related to listings 126 129 Services transferred over time related to regulatory fees, trading permits, and software licenses 28 30 Total $ 462 $ 449 Fixed Income Data Services Segment: Data services revenues $ 430 $ 422 Services transferred over time related to risk management of open interest performance obligations in our CDS business 10 11 Total $ 440 $ 433 Mortgage Technology Segment: Subscription revenues $ 165 $ 156 Professional service revenues and other 4 9 Total $ 169 $ 165 Total consolidated revenues transferred over time $ 1,071 $ 1,047 Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $661 million as of March 31, 2023, including $562 million in current deferred revenue and $99 million in other non-current liabilities. The changes in our deferred revenue during the three months ended March 31, 2023 are as follows (in millions): Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at January 1, 2023 $ 115 $ 88 $ 51 $ 254 Additions 470 159 14 643 Amortization (127) (89) (20) (236) Deferred revenue balance at March 31, 2023 $ 458 $ 158 $ 45 $ 661 The changes in our deferred revenue during the three months ended March 31, 2022 are as follows (in millions): Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at January 1, 2022 $ 112 $ 93 $ 79 $ 284 Additions 472 186 26 684 Amortization (129) (112) (32) (273) Deferred revenue balance at March 31, 2022 $ 455 $ 167 $ 73 $ 695 Included in the amortization recognized during the three months ended March 31, 2023 is $67 million related to the deferred revenue balance as of January 1, 2023. Included in the amortization recognized for the three months ended March 31, 2022 is $73 million related to the deferred revenue balance as of January 1, 2022. As of March 31, 2023, the remaining deferred revenue balance will be recognized over the period of time we satisfy our performance obligations as described in Note 5. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our total debt, including short-term and long-term debt, consisted of the following (in millions): As of March 31, 2023 As of December 31, 2022 Debt: Short-term debt: Other short-term debt $ — $ 4 Total short-term debt — 4 Long-term debt: 2025 Senior Notes (3.65% senior unsecured notes due May 23, 2025) 1,244 1,243 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,247 1,247 2027 Senior Notes (4.00% senior unsecured notes due September 15, 2027) 1,487 1,487 2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) 498 498 2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) 594 594 2029 Senior Notes (4.35% senior unsecured notes due June 15, 2029) 1,240 1,240 2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) 1,236 1,235 2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) 1,485 1,485 2033 Senior Notes (4.60% senior unsecured notes due March 15, 2033) 1,488 1,488 2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) 1,232 1,231 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,231 1,231 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) 1,221 1,221 2052 Senior Notes (4.95% senior unsecured notes due June 15, 2052) 1,465 1,464 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) 1,471 1,471 2062 Senior Notes (5.20% senior unsecured notes due June 15, 2062) 984 983 Total long-term debt 18,123 18,118 Total debt $ 18,123 $ 18,122 Our senior notes of $18.1 billion have a weighted average maturity of 16 years and a weighted average cost of 3.6% per annum. Credit Facilities We have a $3.9 billion senior unsecured revolving credit facility, or the Credit Facility, with a maturity date of May 25, 2027, with future capacity to increase our borrowings under the Credit Facility by an additional $1.0 billion, 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, 2023. As of March 31, 2023, of the $3.9 billion that was available for borrowing under the Credit Facility, $151 million was required to support certain broker-dealer and other subsidiary commitments. We did not have any amounts outstanding under our U.S. dollar commercial paper program, or the Commercial Paper Program, as of March 31, 2023. Therefore, there was not an amount required to backstop the Commercial Paper Program. The amount required to backstop the amounts outstanding under the Commercial Paper Program will fluctuate as we increase or decrease our commercial paper borrowings. The remaining $3.7 billion was available for working capital and general corporate purposes including, but not limited to, acting as a backstop to future amounts outstanding under the Commercial Paper Program. We have a 364-day senior unsecured bridge facility in an aggregate principal amount not to exceed $14.0 billion, or the Bridge Facility, with a maturity date of May 3, 2023. As of March 31, 2023, there were no amounts outstanding under the Bridge Facility. We have a $2.4 billion two-year senior unsecured delayed draw term loan facility, or the Term Loan, with a maturity date of May 25, 2024. Draws under the Term Loan bear interest on the principal amount outstanding at either (a) Term Secured Overnight Financing Rate, or Term SOFR, plus an applicable margin plus a credit spread adjustment of 10 basis points or (b) a "base rate" plus an applicable margin. The applicable margin ranges from 0.625% to 1.125% for Term SOFR loans and from 0.000% to 0.125% for base rate loans, in each case, based on a ratings-based pricing grid. We expect to use the proceeds from borrowings under the Term Loan to fund a portion of the purchase price for the Black Knight acquisition. We have the option to prepay outstanding amounts under the Term Loan in whole or in part at any time. No amounts were outstanding under the Term Loan as of March 31, 2023. Our India subsidiaries maintain $14 million of credit lines for their general corporate purposes. As of March 31, 2023, there were no amounts outstanding under these credit lines. 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. We did not have any notes outstanding under our Commercial Paper Program as of March 31, 2023. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Share-Based Compensation | Share-Based Compensation We currently sponsor stock option plans, restricted stock plans and our Employee Stock Purchase Plan to our employees and directors. 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 $40 million and $38 million for the three months ended March 31, 2023 and 2022, respectively. Stock Option Plans We use the Black-Scholes option pricing model to value our stock option awards. During the three months ended March 31, 2023 and 2022, we used the assumptions in the table below to compute the value: Three Months Ended March 31, Assumptions: 2023 2022 Risk-free interest rate 3.47% 1.72% Expected life in years 6.1 6.0 Expected volatility 24% 23% Expected dividend yield 1.56% 1.17% Estimated weighted-average fair value of options granted per share $27.39 $28.18 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. The grant date fair value of time-based restricted stock is recognized as expense ratably over the vesting period, which is typically three In February 2023, we reserved a maximum of 0.9 million restricted shares for potential issuance as performance-based restricted shares to certain of our employees. The number of shares ultimately granted under this award will be based on our actual financial performance as compared to financial performance targets set by our Board and the Compensation Committee for the year ending December 31, 2023, and will also be subject to a market condition reduction based on how our 2023 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 $92 million if the maximum financial performance target is met and all 0.9 million shares vest. The compensation expense to be recognized under these performance-based restricted shares will be $46 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 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. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity Stock Repurchase Program In December 2021, our Board approved an aggregate of $3.15 billion for future repurchases of our common stock with no fixed expiration date that became effective on January 1, 2022. 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. 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, subject to applicable rules. We did not have any share repurchases during the three months ended March 31, 2023. During the three months ended March 31, 2022, we repurchased a total of 3.7 million shares of our outstanding common stock at a cost of $475 million, consisting of 3.3 million shares at a cost of $425 million under our Rule 10b5-1 trading plan and 0.4 million shares at a cost of $50 million on the open market during an open trading period. As of March 31, 2023, the remaining balance of Board approved funds for future repurchases was $2.5 billion. In connection with our pending acquisition of Black Knight, on May 4, 2022 we terminated our Rule 10b5-1 trading plan and suspended share repurchases. Dividends During the three months ended March 31, 2023 and 2022, we declared and paid cash dividends per share of $0.42 and $0.38, respectively, for an aggregate payout of $236 million and $214 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, 2022 $ (278) $ 2 $ (55) $ (331) Other comprehensive income 16 — — 16 Income tax benefit/(expense) — — — — Net current period other comprehensive income 16 — — 16 Balance, as of March 31, 2023 $ (262) $ 2 $ (55) $ (315) 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, 2021 $ (150) $ 2 $ (48) $ (196) Other comprehensive loss (25) — — (25) Income tax benefit/(expense) — — — — Net current period other comprehensive loss (25) — — (25) Balance, as of March 31, 2022 $ (175) $ 2 $ (48) $ (221) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 21% and 20% during the three months ended March 31, 2023 and 2022, respectively. The effective tax rate for the three months ended March 31, 2023 was higher than the effective tax rate for the comparable period in 2022 primarily due to the impact of the U.K. corporate income tax increase from 19% to 25% effective April 1, 2023, partially offset by favorable audit settlements for certain historical years. In August 2022, the Inflation Reduction Act of 2022, or IRA, was signed into law. The IRA introduced a 15% corporation minimum tax, or CAMT, on adjusted financial statement income for corporations with profits in excess of $1 billion, effective for tax years after December 31, 2022. Based on the current guidance provided by the Internal Revenue Service and Treasury, the implementation of the CAMT does not have a material impact to our financial statements as of March 31, 2023. The IRA also includes a share buyback excise tax of 1% on share repurchases, which will apply to net share repurchases after December 31, 2022. During the three months ended March 31, 2023, we did not repurchase any shares, therefore, we were not subject to any excise tax. The newly imposed excise tax on share repurchases is not considered an income tax. Any excise tax, as a result of future share repurchases, will be considered part of the cost of the shares repurchased and reflected in the equity section of our consolidated financial statements. |
Clearing Operations
Clearing Operations | 3 Months Ended |
Mar. 31, 2023 | |
Broker-Dealer [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, foreign exchange, or FX, interest rate, equity index and digital asset futures and/or options 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 asset futures contracts ICE Futures Singapore Singapore ICE NGX Physical North American natural gas and electricity ICE NGX Canada In 2022, we announced our decision to cease our CDS clearing service at ICE Clear Europe, our clearing house in the U.K., and thereafter our sole CDS clearing offering will be at our ICE Clear Credit clearing house in the U.S. This is expected to be completed in late 2023. Original and 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 and default insurance, 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, 2023 and December 31, 2022, the ICE Clearing Houses had received or had been pledged $209.8 billion and $273.3 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 and 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. Included in the total contribution to ICE Clear U.S., as of March 31, 2023, is $15 million from Bakkt, solely applicable to any losses associated with a default in Bitcoin contracts and other digital assets that ICE Clear U.S. may clear in the future. 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, 2023 As of As of March 31, 2023 As of ICE Clear Europe $247 $247 $100 $100 ICE Clear U.S. 90 90 25 25 ICE Clear Credit 50 50 75 75 ICE Clear Netherlands 2 2 N/A N/A ICE Clear Singapore 1 1 N/A N/A ICE NGX 15 15 200 200 Total $405 $405 $400 $400 We also maintain default insurance as an additional layer of clearing member default protection. The default insurance was renewed in September 2022 and has a three-year term for the following clearing houses in the following amounts: ICE Clear Europe - $100 million; ICE Clear U.S. - $25 million; and ICE Clear Credit - $75 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, 2023, ICE NGX maintained a guaranty fund of $215 million, comprised of $15 million in cash and a $200 million letter of credit backed by a default insurance policy of the same amount, discussed below. Below is a depiction of our Default Waterfall which summarizes the lines of defense and layers of protection we maintain for our mutualized clearing houses. ICE Clearing House Default Waterfall Cash and Invested Margin Deposits We have recorded cash and invested margin and guaranty fund deposits and amounts due in our balance sheets as current assets with corresponding current liabilities to the Members. As of March 31, 2023, our cash and invested margin deposits were as follows (in millions): ICE Clear Europe (1) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 56,321 $ 33,155 $ 4,761 $ — $ 42 $ 94,279 Unsettled variation margin, net — — — 663 — 663 Guaranty fund 4,203 3,443 616 — 5 8,267 Delivery contracts receivable/payable, net — — — 760 — 760 Total $ 60,524 $ 36,598 $ 5,377 $ 1,423 $ 47 $ 103,969 As of December 31, 2022, our cash and invested margin deposits were as follows (in millions): ICE Clear Europe (2) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 101,243 $ 31,277 $ 4,141 $ — $ 5 $ 136,666 Unsettled variation margin, net — — — 749 — 749 Guaranty fund 4,162 3,177 597 — 4 7,940 Delivery contracts receivable/payable, net — — — 2,017 — 2,017 Total $ 105,405 $ 34,454 $ 4,738 $ 2,766 $ 9 $ 147,372 (1) $54.4 billion and $6.1 billion is related to futures/options and CDS, respectively. (2) $97.6 billion and $7.8 billion is related to futures/options and CDS, respectively. Our cash and invested 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 and other highly-rated foreign government securities, or reverse repurchase agreements with primarily overnight maturities. We primarily use Level 1 inputs when evaluating the fair value of the non-cash equivalent direct investments, as highly-rated government securities are quoted in active markets. The carrying value of these deposits is deemed to approximate fair value. 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, 2023, 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 (U.S. dollar based) to finance U.S. dollar denominated sovereign debt and euro deposits, €250 million in Committed Repo (euro based) to finance euro and U.S. dollar denominated sovereign debt 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 denominated sovereign debt deposits. • ICE Clear Netherlands: €10 million in Committed FX Facilities to finance euro payment obligations. Details of our deposits are as follows (in millions): Cash and Cash Equivalent Margin Deposits and Guaranty Funds Clearing House Investment Type As of March 31, 2023 As of ICE Clear Europe National bank account (1) $ 5,884 $ 17,390 ICE Clear Europe Reverse repo 50,388 65,352 ICE Clear Europe Sovereign debt 3,753 19,894 ICE Clear Europe Demand deposits 27 153 ICE Clear Credit National bank account 27,814 27,145 ICE Clear Credit Reverse repo 4,987 3,916 ICE Clear Credit Demand deposits 3,796 3,393 ICE Clear U.S. Reverse repo 5,228 4,266 ICE Clear U.S. Sovereign Debt 149 472 Other ICE Clearing Houses Demand deposits 46 9 Total cash and cash equivalent margin deposits and guaranty funds $ 102,072 $ 141,990 Invested Deposits, Delivery Contracts Receivable and Unsettled Variation Margin Clearing House Investment Type As of March 31, 2023 As of ICE NGX Unsettled variation margin and delivery contracts receivable/payable 1,423 2,766 ICE Clear Europe Invested deposits - sovereign debt 474 2,616 Total invested deposits, delivery contracts receivable and unsettled variation margin $ 1,897 $ 5,382 (1) As of March 31, 2023, ICE Clear Europe held €201 million ($218 million based on the euro/U.S. dollar exchange rate of 1.0842 as of March 31, 2023) at the European Central Bank, or ECB, £4.6 billion ($5.7 billion based on the pound sterling/U.S. dollar exchange rate of 1.2332 as of March 31, 2023) at the Bank of England, or BOE, and €10 million ($11 million based on the above exchange rate) at the BOE. As of December 31, 2022, ICE Clear Europe held €11.7 billion ($12.5 billion based on the euro/U.S. dollar exchange rate of 1.0704 as of December 31, 2022) at ECB, £4.0 billion ($4.9 billion based on the pound sterling/U.S. dollar exchange rate of 1.2093 as of December 31, 2022) at the BOE and €10 million ($11 million based on the above exchange rate) at the BOE. Other Deposits Non-cash original margin and guaranty fund deposits are not reflected in the accompanying consolidated balance sheets as the risks and rewards of these assets remain with the clearing members unless the clearing houses have sold or re-pledged the assets or in the event of a clearing member default, where the clearing member is no longer entitled to redeem the assets. Any income, gain or loss accrues to the clearing members . In addition to the cash and invested deposits above, the ICE Clearing Houses have also received other assets from Members, which include government obligations, emissions allowances, and may include other non-cash collateral such as letters of credit at ICE NGX 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, 2023 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 59,429 $ 24,762 $ 13,667 $ — $ 97,858 Letters of credit and other — — — 4,432 4,432 ICE NGX cash deposits — — — 1,632 1,632 Total $ 59,429 $ 24,762 $ 13,667 $ 6,064 $ 103,922 Guaranty fund: Government securities at face value $ 841 $ 803 $ 295 $ — $ 1,939 As of December 31, 2022 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 74,964 $ 26,601 $ 14,855 $ — $ 116,420 Letters of credit — — — 5,434 5,434 ICE NGX cash deposits — — — 2,357 2,357 Total $ 74,964 $ 26,601 $ 14,855 $ 7,791 $ 124,211 Guaranty fund: Government securities at face value $ 641 $ 805 $ 269 $ — $ 1,715 ICE NGX ICE NGX owns a clearing house which primarily administers the physical delivery of energy trading contracts. 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. There is no impact on our consolidated statements of income as an equal amount is recognized as both an asset and a liability. ICE NGX marks all its outstanding physical natural gas and physical power contracts to market daily, but only collects variation margin when a Member's open position falls outside a specified percentage of its pledged collateral. Due to the highly liquid nature and the short period of time to maturity, the fair values of our delivery contract net payable and net receivable are determined to approximate carrying value. 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 for the benefit of the Member, and remains the property of the Member, therefore, it is not included in our balance sheets. ICE NGX maintains a committed daylight-overnight liquidity facility in the amount of $100 million with an additional $200 million uncommitted with a third-party Canadian chartered bank which provides liquidity in the event of a settlement shortfall, subject to certain conditions. As of March 31, 2023, ICE NGX maintains a guaranty fund of $215 million funded by a $200 million 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, plus $15 million held as restricted cash to fund the first loss amount that ICE NGX is responsible for under the default insurance policy. 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 $200 million beyond the $15 million first-loss amount that ICE NGX is responsible for under the default insurance policy. Clearing House Exposure The net notional value of unsettled contracts was $2.4 trillion as of March 31, 2023. 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 and default insurance, the ICE Clearing Houses’ maximum estimated exposure for this guarantee is $174.6 billion as of March 31, 2023, 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 market price volatility could result in the exposure being significantly different than this amount. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal ProceedingsIn 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, other than the potential $725 million termination fee payable to Black Knight and our accrual related to a potential $10 million regulatory settlement, 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 matter described below and those described in Note 16 to the consolidated financial statements in Part II, Item 8 of our 2022 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. A range of possible losses related to certain cases cannot be reasonably estimated at this time, except as otherwise disclosed below and in Note 16 to the consolidated financial statements in Part II, Item 8 of our 2022 Form 10-K. Individual matter disclosures in this Form 10-Q are limited to new significant matters or significant updates on existing matters since the 2022 Form 10-K. Black Knight Transaction Litigation On March 9, 2023, the Federal Trade Commission, or the FTC, filed an administrative complaint alleging that the proposed transaction between ICE and Black Knight, if consummated, would be an unfair method of competition in violation of Section 5 of the Federal Trade Commission Act, and that it would substantially lessen competition, or tend to create a monopoly, in violation of Section 7 of the Clayton Act. The complaint seeks a variety of injunctive relief, including, among other things, a prohibition on the completion of the transaction without the FTC’s consent and, if the transaction is completed, a divestiture or reconstitution of assets in a manner that restores such separate and independent businesses as the parties had operated prior to the completion of the transaction. On April 10, 2023, the FTC filed a complaint in the United States District Court for the Northern District of California for a temporary restraining order and preliminary injunction enjoining the completion of the transaction. On April 21, 2023, the court entered a temporary restraining order enjoining the completion of the transaction until the court rules on the FTC’s motion for a preliminary injunction. In their answers to the administrative and court complaints, filed on March 20, 2023 and April 25, 2023, respectively, ICE and Black Knight denied the FTC’s substantive allegations; asserted numerous affirmative defenses; described the pro-competitive aspects and significant lender, servicer, investor, vendor and consumer benefits relating to this transaction; and denied that the combination of their respective businesses would violate any laws. Additionally, the answers to the court complaint contained counterclaims by ICE and Black Knight against the FTC seeking declaratory relief that the FTC’s administrative process is unconstitutional and should be enjoined. We plan to vigorously defend against the FTC’s administrative and court complaints. For further information on our legal and regulatory matters, please see Note 16 to the consolidated financial statements in Part II, Item 8 of our 2022 Form 10-K. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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 and equity method 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, 2023 and December 31, 2022 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 our 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, 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, 2023 or December 31, 2022. We measure certain assets, such as intangible assets and equity method investments, at fair value on a non-recurring basis. These assets are recognized at fair value if they are deemed to be impaired. As of December 31, 2022, certain equity method investments were measured at fair value on a non-recurring basis. As of March 31, 2023, none of our intangible assets or equity method investments 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, 2023, we evaluated these investments and determined that no fair value adjustments were required under our accounting policy election related to these investments. See Note 12 for the fair value considerations related to our margin deposits, guaranty funds and delivery contracts receivable. The table below displays the fair value of our debt as of March 31, 2023. The fair values of our fixed rate notes were estimated using quoted market prices for these instruments. The fair value of other short-term debt approximates par value since the interest rates on this short-term debt approximate market rates as of March 31, 2023. As of March 31, 2023 (in millions) Debt: Carrying Amount Fair value 3.65% Senior Notes due May 23, 2025 $ 1,244 $ 1,230 3.75% Senior Notes due December 1, 2025 1,247 1,217 4.00% Senior Notes due September 15, 2027 1,487 1,486 3.10% Senior Notes due September 15, 2027 498 473 3.75% Senior Notes due September 21, 2028 594 578 4.35% Senior Notes due June 15, 2029 1,240 1,236 2.10% Senior Notes due June 15, 2030 1,236 1,061 1.85% Senior Notes due September 15, 2032 1,485 1,187 4.60% Senior Notes due March 15, 2033 1,488 1,489 2.65% Senior Notes due September 15, 2040 1,232 911 4.25% Senior Notes due September 21, 2048 1,231 1,098 3.00% Senior Notes due June 15, 2050 1,221 884 4.95% Senior Notes due June 15, 2052 1,465 1,467 3.00% Senior Notes due September 15, 2060 1,471 988 5.20% Senior Notes due June 15, 2062 984 1,008 Total debt $ 18,123 $ 16,313 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our business is conducted through three reportable business segments: • Exchanges: We operate regulated marketplaces for the listing, trading and clearing of a broad array of derivatives contracts and financial securities; • Fixed Income and Data Services: We provide fixed income pricing, reference data, indices, analytics and execution services as well as global CDS clearing and multi-asset class data delivery solutions; and • Mortgage Technology: We provide a technology platform that offers customers comprehensive, digital workflow tools that aim to address the inefficiencies that exist in 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 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. Beginning in the first quarter of 2023, closing solutions revenues within our Mortgage Technology segment now include membership dues that were previously included in other revenues. We believe this is a more accurate reflection of the nature of these revenues. The impact of this change was not material, and the prior year period has been adjusted for comparability. Financial data for our business segments is as follows for the three months ended March 31, 2023 and 2022 (in millions): Three Months Ended March 31, 2023 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 345 $ — $ — $ 345 Agricultural and metals futures and options 70 — — 70 Financial futures and options 128 — — 128 Cash equities and equity options 671 — — 671 OTC and other 101 — — 101 Data and connectivity services 232 — — 232 Listings 126 — — 126 Fixed income execution — 32 — 32 CDS clearing — 101 — 101 Fixed income data and analytics — 276 — 276 Other data and network services — 154 — 154 Origination technology — — 167 167 Closing solutions — — 40 40 Data and analytics — — 21 21 Other — — 8 8 Revenues 1,673 563 236 2,472 Transaction-based expenses 576 — — 576 Revenues, less transaction-based expenses 1,097 563 236 1,896 Operating expenses 332 343 252 927 Operating income/(loss) $ 765 $ 220 $ (16) $ 969 Three Months Ended March 31, 2022 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 353 $ — $ — $ 353 Agricultural and metals futures and options 61 — — 61 Financial futures and options 130 — — 130 Cash equities and equity options 659 — — 659 OTC and other 97 — — 97 Data and connectivity services 214 — — 214 Listings 129 — — 129 Fixed income execution — 15 — 15 CDS clearing — 72 — 72 Fixed income data and analytics — 277 — 277 Other data and network services — 145 — 145 Origination technology — — 203 203 Closing solutions — — 72 72 Data and analytics — — 20 20 Other — — 12 12 Revenues 1,643 509 307 2,459 Transaction-based expenses 560 — — 560 Revenues, less transaction-based expenses 1,083 509 307 1,899 Operating expenses 299 354 254 907 Operating income $ 784 $ 155 $ 53 $ 992 Revenue from one member of the Exchanges segment comprised $123 million, or 11%, of our Exchange revenues, less transaction-based expenses for the three months ended March 31, 2023. Revenue from one member of the Exchanges |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 (in millions, except per share amounts): Three Months Ended 2023 2022 Basic: Net income attributable to Intercontinental Exchange, Inc. $ 655 $ 657 Weighted average common shares outstanding 559 561 Basic earnings per common share $ 1.17 $ 1.17 Diluted: Weighted average common shares outstanding 559 561 Effect of dilutive securities - stock options and restricted stock 2 3 Diluted weighted average common shares outstanding 561 564 Diluted earnings per common share $ 1.17 $ 1.16 Basic earnings per common share is calculated using the weighted average common shares outstanding during the period. Common equivalent shares from stock options and restricted stock awards, 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 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsWe have evaluated subsequent events, and determined that no 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, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared 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, 2022. 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, 2023 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. We have considered the impacts of macroeconomic conditions, including recent banking sector events and the uncertainty surrounding the U.S. debt ceiling, as well as the ongoing conflict between Russia, Belarus and Ukraine on our financial statements. As of March 31, 2023, our businesses and operations, including our exchanges, clearing houses, listings venues, data services businesses and mortgage platforms, have not suffered a material negative impact as a result of these events. There continues to be uncertainty surrounding the extent and duration of this ongoing conflict and the impact that it may have on the global economy and on our business. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements During the three months ended March 31, 2023, there were no significant changes to the new and recently adopted accounting pronouncements applicable to us from those disclosed in Note 2 to the consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2022, or the 2022 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. 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. 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 7 for our discussion of deferred revenue balances, activity, and expected timing of recognition. 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, which are primarily our sales commissions. Refer to Note 5 to the consolidated financial statements included in Part II, Item 8 of our 2022 Form 10-K where our primary revenue contract classifications are described in detail. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Recognition | The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 15: Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three Months Ended March 31, 2023: Total revenues $ 1,673 $ 563 $ 236 $ 2,472 Transaction-based expenses 576 — — 576 Total revenues, less transaction-based expenses $ 1,097 $ 563 $ 236 $ 1,896 Timing of Revenue Recognition Services transferred at a point in time $ 635 $ 123 $ 67 $ 825 Services transferred over time 462 440 169 1,071 Total revenues, less transaction-based expenses $ 1,097 $ 563 $ 236 $ 1,896 Exchanges Segment Fixed Income and Data Services Segment Mortgage Technology Segment Total Consolidated Three Months Ended March 31, 2022: Total revenues $ 1,643 $ 509 $ 307 $ 2,459 Transaction-based expenses 560 — — 560 Total revenues, less transaction-based expenses $ 1,083 $ 509 $ 307 $ 1,899 Timing of Revenue Recognition Services transferred at a point in time $ 634 $ 76 $ 142 $ 852 Services transferred over time 449 433 165 1,047 Total revenues, less transaction-based expenses $ 1,083 $ 509 $ 307 $ 1,899 The components of services transferred over time for each of our segments are as follows: Three Months Ended March 31, 2023 2022 Exchanges Segment: Data services revenues $ 232 $ 214 Services transferred over time related to risk management of open interest performance obligations 76 76 Services transferred over time related to listings 126 129 Services transferred over time related to regulatory fees, trading permits, and software licenses 28 30 Total $ 462 $ 449 Fixed Income Data Services Segment: Data services revenues $ 430 $ 422 Services transferred over time related to risk management of open interest performance obligations in our CDS business 10 11 Total $ 440 $ 433 Mortgage Technology Segment: Subscription revenues $ 165 $ 156 Professional service revenues and other 4 9 Total $ 169 $ 165 Total consolidated revenues transferred over time $ 1,071 $ 1,047 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedules of Intangible Assets and Goodwill | The following is a summary of the activity in our goodwill balance for the three months ended March 31, 2023 (in millions): Goodwill balance at December 31, 2022 $ 21,111 Foreign currency translation 8 Other activity, net 1 Goodwill balance at March 31, 2023 $ 21,120 The following is a summary of the activity in our other intangible assets balance for the three months ended March 31, 2023 (in millions): Other intangible assets balance at December 31, 2022 $ 13,090 Foreign currency translation 6 Amortization of other intangible assets (150) Other intangible assets balance at March 31, 2023 $ 12,946 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 are as follows (in millions): Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at January 1, 2023 $ 115 $ 88 $ 51 $ 254 Additions 470 159 14 643 Amortization (127) (89) (20) (236) Deferred revenue balance at March 31, 2023 $ 458 $ 158 $ 45 $ 661 The changes in our deferred revenue during the three months ended March 31, 2022 are as follows (in millions): Listings Revenues Data Services and Other Revenues Mortgage Technology Total Deferred revenue balance at January 1, 2022 $ 112 $ 93 $ 79 $ 284 Additions 472 186 26 684 Amortization (129) (112) (32) (273) Deferred revenue balance at March 31, 2022 $ 455 $ 167 $ 73 $ 695 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt | Our total debt, including short-term and long-term debt, consisted of the following (in millions): As of March 31, 2023 As of December 31, 2022 Debt: Short-term debt: Other short-term debt $ — $ 4 Total short-term debt — 4 Long-term debt: 2025 Senior Notes (3.65% senior unsecured notes due May 23, 2025) 1,244 1,243 2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) 1,247 1,247 2027 Senior Notes (4.00% senior unsecured notes due September 15, 2027) 1,487 1,487 2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027) 498 498 2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028) 594 594 2029 Senior Notes (4.35% senior unsecured notes due June 15, 2029) 1,240 1,240 2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030) 1,236 1,235 2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032) 1,485 1,485 2033 Senior Notes (4.60% senior unsecured notes due March 15, 2033) 1,488 1,488 2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040) 1,232 1,231 2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048) 1,231 1,231 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) 1,221 1,221 2052 Senior Notes (4.95% senior unsecured notes due June 15, 2052) 1,465 1,464 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) 1,471 1,471 2062 Senior Notes (5.20% senior unsecured notes due June 15, 2062) 984 983 Total long-term debt 18,123 18,118 Total debt $ 18,123 $ 18,122 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stock Options Valuation Assumptions | During the three months ended March 31, 2023 and 2022, we used the assumptions in the table below to compute the value: Three Months Ended March 31, Assumptions: 2023 2022 Risk-free interest rate 3.47% 1.72% Expected life in years 6.1 6.0 Expected volatility 24% 23% Expected dividend yield 1.56% 1.17% Estimated weighted-average fair value of options granted per share $27.39 $28.18 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 $ (278) $ 2 $ (55) $ (331) Other comprehensive income 16 — — 16 Income tax benefit/(expense) — — — — Net current period other comprehensive income 16 — — 16 Balance, as of March 31, 2023 $ (262) $ 2 $ (55) $ (315) 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, 2021 $ (150) $ 2 $ (48) $ (196) Other comprehensive loss (25) — — (25) Income tax benefit/(expense) — — — — Net current period other comprehensive loss (25) — — (25) Balance, as of March 31, 2022 $ (175) $ 2 $ (48) $ (221) |
Clearing Operations (Tables)
Clearing Operations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Broker-Dealer [Abstract] | |
Schedule of Guaranty Fund Contribution | 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, foreign exchange, or FX, interest rate, equity index and digital asset futures and/or options 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 asset futures contracts ICE Futures Singapore Singapore ICE NGX Physical North American natural gas and electricity 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, 2023 As of As of March 31, 2023 As of ICE Clear Europe $247 $247 $100 $100 ICE Clear U.S. 90 90 25 25 ICE Clear Credit 50 50 75 75 ICE Clear Netherlands 2 2 N/A N/A ICE Clear Singapore 1 1 N/A N/A ICE NGX 15 15 200 200 Total $405 $405 $400 $400 |
Schedule of Margin Deposits and Guaranty Funds Assets | As of March 31, 2023, our cash and invested margin deposits were as follows (in millions): ICE Clear Europe (1) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 56,321 $ 33,155 $ 4,761 $ — $ 42 $ 94,279 Unsettled variation margin, net — — — 663 — 663 Guaranty fund 4,203 3,443 616 — 5 8,267 Delivery contracts receivable/payable, net — — — 760 — 760 Total $ 60,524 $ 36,598 $ 5,377 $ 1,423 $ 47 $ 103,969 As of December 31, 2022, our cash and invested margin deposits were as follows (in millions): ICE Clear Europe (2) ICE Clear ICE Clear U.S. ICE NGX Other ICE Clearing Houses Total Original margin $ 101,243 $ 31,277 $ 4,141 $ — $ 5 $ 136,666 Unsettled variation margin, net — — — 749 — 749 Guaranty fund 4,162 3,177 597 — 4 7,940 Delivery contracts receivable/payable, net — — — 2,017 — 2,017 Total $ 105,405 $ 34,454 $ 4,738 $ 2,766 $ 9 $ 147,372 (1) $54.4 billion and $6.1 billion is related to futures/options and CDS, respectively. |
Schedule of Cash and Cash Equivalents | Details of our deposits are as follows (in millions): Cash and Cash Equivalent Margin Deposits and Guaranty Funds Clearing House Investment Type As of March 31, 2023 As of ICE Clear Europe National bank account (1) $ 5,884 $ 17,390 ICE Clear Europe Reverse repo 50,388 65,352 ICE Clear Europe Sovereign debt 3,753 19,894 ICE Clear Europe Demand deposits 27 153 ICE Clear Credit National bank account 27,814 27,145 ICE Clear Credit Reverse repo 4,987 3,916 ICE Clear Credit Demand deposits 3,796 3,393 ICE Clear U.S. Reverse repo 5,228 4,266 ICE Clear U.S. Sovereign Debt 149 472 Other ICE Clearing Houses Demand deposits 46 9 Total cash and cash equivalent margin deposits and guaranty funds $ 102,072 $ 141,990 Invested Deposits, Delivery Contracts Receivable and Unsettled Variation Margin Clearing House Investment Type As of March 31, 2023 As of ICE NGX Unsettled variation margin and delivery contracts receivable/payable 1,423 2,766 ICE Clear Europe Invested deposits - sovereign debt 474 2,616 Total invested deposits, delivery contracts receivable and unsettled variation margin $ 1,897 $ 5,382 (1) As of March 31, 2023, ICE Clear Europe held €201 million ($218 million based on the euro/U.S. dollar exchange rate of 1.0842 as of March 31, 2023) at the European Central Bank, or ECB, £4.6 billion ($5.7 billion based on the pound sterling/U.S. dollar exchange rate of 1.2332 as of March 31, 2023) at the Bank of England, or BOE, and €10 million ($11 million based on the above exchange rate) at the BOE. As of December 31, 2022, ICE Clear Europe held €11.7 billion ($12.5 billion based on the euro/U.S. dollar exchange rate of 1.0704 as of December 31, 2022) at ECB, £4.0 billion ($4.9 billion based on the pound sterling/U.S. dollar exchange rate of 1.2093 as of December 31, 2022) at the BOE and €10 million ($11 million based on the above exchange rate) at the BOE. |
Schedule of Assets Pledged by Clearing Members as Original Margin and Guaranty Fund Deposits | These pledged assets are not reflected in our balance sheets, and are as follows (in millions): As of March 31, 2023 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 59,429 $ 24,762 $ 13,667 $ — $ 97,858 Letters of credit and other — — — 4,432 4,432 ICE NGX cash deposits — — — 1,632 1,632 Total $ 59,429 $ 24,762 $ 13,667 $ 6,064 $ 103,922 Guaranty fund: Government securities at face value $ 841 $ 803 $ 295 $ — $ 1,939 As of December 31, 2022 ICE Clear Europe ICE Clear ICE Clear U.S. ICE NGX Total Original margin: Government securities at face value $ 74,964 $ 26,601 $ 14,855 $ — $ 116,420 Letters of credit — — — 5,434 5,434 ICE NGX cash deposits — — — 2,357 2,357 Total $ 74,964 $ 26,601 $ 14,855 $ 7,791 $ 124,211 Guaranty fund: Government securities at face value $ 641 $ 805 $ 269 $ — $ 1,715 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 other short-term debt approximates par value since the interest rates on this short-term debt approximate market rates as of March 31, 2023. As of March 31, 2023 (in millions) Debt: Carrying Amount Fair value 3.65% Senior Notes due May 23, 2025 $ 1,244 $ 1,230 3.75% Senior Notes due December 1, 2025 1,247 1,217 4.00% Senior Notes due September 15, 2027 1,487 1,486 3.10% Senior Notes due September 15, 2027 498 473 3.75% Senior Notes due September 21, 2028 594 578 4.35% Senior Notes due June 15, 2029 1,240 1,236 2.10% Senior Notes due June 15, 2030 1,236 1,061 1.85% Senior Notes due September 15, 2032 1,485 1,187 4.60% Senior Notes due March 15, 2033 1,488 1,489 2.65% Senior Notes due September 15, 2040 1,232 911 4.25% Senior Notes due September 21, 2048 1,231 1,098 3.00% Senior Notes due June 15, 2050 1,221 884 4.95% Senior Notes due June 15, 2052 1,465 1,467 3.00% Senior Notes due September 15, 2060 1,471 988 5.20% Senior Notes due June 15, 2062 984 1,008 Total debt $ 18,123 $ 16,313 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 (in millions): Three Months Ended March 31, 2023 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 345 $ — $ — $ 345 Agricultural and metals futures and options 70 — — 70 Financial futures and options 128 — — 128 Cash equities and equity options 671 — — 671 OTC and other 101 — — 101 Data and connectivity services 232 — — 232 Listings 126 — — 126 Fixed income execution — 32 — 32 CDS clearing — 101 — 101 Fixed income data and analytics — 276 — 276 Other data and network services — 154 — 154 Origination technology — — 167 167 Closing solutions — — 40 40 Data and analytics — — 21 21 Other — — 8 8 Revenues 1,673 563 236 2,472 Transaction-based expenses 576 — — 576 Revenues, less transaction-based expenses 1,097 563 236 1,896 Operating expenses 332 343 252 927 Operating income/(loss) $ 765 $ 220 $ (16) $ 969 Three Months Ended March 31, 2022 Exchanges Fixed Income and Data Services Mortgage Technology Consolidated Revenues: Energy futures and options $ 353 $ — $ — $ 353 Agricultural and metals futures and options 61 — — 61 Financial futures and options 130 — — 130 Cash equities and equity options 659 — — 659 OTC and other 97 — — 97 Data and connectivity services 214 — — 214 Listings 129 — — 129 Fixed income execution — 15 — 15 CDS clearing — 72 — 72 Fixed income data and analytics — 277 — 277 Other data and network services — 145 — 145 Origination technology — — 203 203 Closing solutions — — 72 72 Data and analytics — — 20 20 Other — — 12 12 Revenues 1,643 509 307 2,459 Transaction-based expenses 560 — — 560 Revenues, less transaction-based expenses 1,083 509 307 1,899 Operating expenses 299 354 254 907 Operating income $ 784 $ 155 $ 53 $ 992 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerators and Denominators of the Basic and Diluted 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, 2023 and 2022 (in millions, except per share amounts): Three Months Ended 2023 2022 Basic: Net income attributable to Intercontinental Exchange, Inc. $ 655 $ 657 Weighted average common shares outstanding 559 561 Basic earnings per common share $ 1.17 $ 1.17 Diluted: Weighted average common shares outstanding 559 561 Effect of dilutive securities - stock options and restricted stock 2 3 Diluted weighted average common shares outstanding 561 564 Diluted earnings per common share $ 1.17 $ 1.16 |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Pending Acquisition - Narrative
Pending Acquisition - Narrative (Details) - Black Knight, Inc. $ / shares in Units, $ in Billions | Mar. 07, 2023 USD ($) $ / shares |
Business Acquisition [Line Items] | |
Total purchase price | $ 11.7 |
Common stock, share price (in dollars per share) | $ / shares | $ 75 |
Percentage of consideration in cash | 90% |
Percentage of consideration in stock | 10% |
Payments to acquire businesses, gross | $ 10.5 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Options Clearing Corporation | ||
Schedule of Equity Method Investments [Line Items] | ||
Gains(losses) from equity method investments | $ 35 | $ 42 |
Ownership percentage | 40% | |
Bakkt | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 66% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2,472 | $ 2,459 |
Transaction-based expenses | 576 | 560 |
Total revenues, less transaction-based expenses | 1,896 | 1,899 |
Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 232 | 214 |
Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,673 | 1,643 |
Transaction-based expenses | 576 | 560 |
Total revenues, less transaction-based expenses | 1,097 | 1,083 |
Exchanges Segment | Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 232 | 214 |
Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 563 | 509 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 563 | 509 |
Fixed Income and Data Services Segment | Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 236 | 307 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 236 | 307 |
Mortgage Technology Segment | Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 825 | 852 |
Services transferred at a point in time | Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 635 | 634 |
Services transferred at a point in time | Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 123 | 76 |
Services transferred at a point in time | Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 67 | 142 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 1,071 | 1,047 |
Services transferred over time | Exchanges Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 462 | 449 |
Services transferred over time | Exchanges Segment | Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 232 | 214 |
Services transferred over time | Exchanges Segment | Services transferred over time related to risk management of open interest performance obligations | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 76 | 76 |
Services transferred over time | Exchanges Segment | Services transferred over time related to listings | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 126 | 129 |
Services transferred over time | Exchanges Segment | Services transferred over time related to regulatory fees, trading permits, and software licenses | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 28 | 30 |
Services transferred over time | Fixed Income and Data Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 440 | 433 |
Services transferred over time | Fixed Income and Data Services Segment | Data services revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 430 | 422 |
Services transferred over time | Fixed Income and Data Services Segment | Services transferred over time related to risk management of open interest performance obligations | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 10 | 11 |
Services transferred over time | Mortgage Technology Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 169 | 165 |
Services transferred over time | Mortgage Technology Segment | Subscription revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | 165 | 156 |
Services transferred over time | Mortgage Technology Segment | Professional service revenues and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues, less transaction-based expenses | $ 4 | $ 9 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | Mar. 31, 2023 |
Fixed Income and Data Services Segment | Services transferred over time | Services transferred over time related to risk management of open interest performance obligations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 month |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 21,111 |
Foreign currency translation | 8 |
Other activity, net | 1 |
Goodwill, ending balance | $ 21,120 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Other intangible assets, beginning balance | $ 13,090 |
Foreign currency translation | 6 |
Amortization of other intangible assets | (150) |
Other intangible assets, ending balance | $ 12,946 |
Deferred Revenue - Narrative (D
Deferred Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Total deferred revenue | $ 661 | $ 695 | $ 254 | $ 284 |
Deferred revenue, current | 562 | $ 170 | ||
Deferred revenue, noncurrent | 99 | |||
Revenue recognized | $ 67 | $ 73 |
Deferred Revenue - Schedule of
Deferred Revenue - Schedule of Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | $ 254 | $ 284 |
Additions | 643 | 684 |
Amortization | (236) | (273) |
Ending balance | 661 | 695 |
Listings Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 115 | 112 |
Additions | 470 | 472 |
Amortization | (127) | (129) |
Ending balance | 458 | 455 |
Data Services and Other Revenues | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 88 | 93 |
Additions | 159 | 186 |
Amortization | (89) | (112) |
Ending balance | 158 | 167 |
Mortgage technology | ||
Disaggregation Of Revenue [Roll Forward] | ||
Beginning balance | 51 | 79 |
Additions | 14 | 26 |
Amortization | (20) | (32) |
Ending balance | $ 45 | $ 73 |
Debt - Schedule of Total Debt (
Debt - Schedule of Total Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Short-term debt: | ||
Other short-term debt | $ 0 | $ 4 |
Total short-term debt | 0 | 4 |
Long-term debt: | ||
Total long-term debt | 18,123 | 18,118 |
Total debt | $ 18,123 | 18,122 |
Senior Notes | 2025 Senior Notes (3.65% senior unsecured notes due May 23, 2025) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.65% | |
Long-term debt: | ||
Senior notes | $ 1,244 | 1,243 |
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 | $ 1,247 | 1,247 |
Senior Notes | 2027 Senior Notes (4.00% senior unsecured notes due September 15, 2027) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4% | |
Long-term debt: | ||
Senior notes | $ 1,487 | 1,487 |
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 | $ 498 | 498 |
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 | $ 594 | 594 |
Senior Notes | 2029 Senior Notes (4.35% senior unsecured notes due June 15, 2029) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.35% | |
Long-term debt: | ||
Senior notes | $ 1,240 | 1,240 |
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 | $ 1,236 | 1,235 |
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 | $ 1,485 | 1,485 |
Senior Notes | 2033 Senior Notes (4.60% senior unsecured notes due March 15, 2033) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.60% | |
Long-term debt: | ||
Senior notes | $ 1,488 | 1,488 |
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 | $ 1,232 | 1,231 |
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 | $ 1,231 | 1,231 |
Senior Notes | 2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3% | |
Long-term debt: | ||
Senior notes | $ 1,221 | 1,221 |
Senior Notes | 2052 Senior Notes (4.95% senior unsecured notes due June 15, 2052) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.95% | |
Long-term debt: | ||
Senior notes | $ 1,465 | 1,464 |
Senior Notes | 2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3% | |
Long-term debt: | ||
Senior notes | $ 1,471 | 1,471 |
Senior Notes | 2062 Senior Notes (5.20% senior unsecured notes due June 15, 2062) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 5.20% | |
Long-term debt: | ||
Senior notes | $ 984 | $ 983 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | |||
May 25, 2022 | May 04, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||||
Other short-term debt | $ 0 | $ 4,000,000 | ||
India Subsidiaries | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 14,000,000 | |||
Amount of debt outstanding | 0 | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 3,900,000,000 | |||
Additional borrowing capacity | 1,000,000,000 | |||
Amount of debt outstanding | 0 | |||
Currently available for borrowing | 3,900,000,000 | |||
Amount required to stop broker-dealer subsidiary commitments | 151,000,000 | |||
Funds available to use for working capital and general and corporate purposes | 3,700,000,000 | |||
Senior Unsecured Bridge Facility | Bridge Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 364 days | |||
Maximum borrowing capacity | $ 14,000,000,000 | |||
Amount of debt outstanding | 0 | |||
Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 18,100,000,000 | |||
Debt instrument, term | 16 years | |||
Weighted average interest rate | 3.60% | |||
Line of Credit | Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 2 years | |||
Maximum borrowing capacity | $ 2,400,000,000 | |||
Line of Credit | Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.10% | |||
Line of Credit | Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.625% | |||
Line of Credit | Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.125% | |||
Line of Credit | Term Loan | Base Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0% | |||
Line of Credit | Term Loan | Base Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.125% | |||
Commercial Paper | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Amount of debt outstanding | $ 0 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock [Line Items] | |||
Non-cash expense recognized | $ 40 | $ 38 | |
Performance Based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Unrecognized compensation expense | $ 46 | 42 | |
Vested stock options (in shares) | 0.4 | ||
Cost not yet recognized, period for recognition (in years) | 3 years | ||
Stock-based compensation | 4 | ||
Amount of non-cash compensation remaining in fiscal period | $ 21 | ||
Minimum | Employee Stock Option | |||
Class of Stock [Line Items] | |||
Award vesting period | 3 years | ||
Maximum | Employee Stock Option | |||
Class of Stock [Line Items] | |||
Award vesting period | 4 years | ||
Maximum | Performance Based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Shares reserved for future issuance (in shares) | 0.9 | ||
Unrecognized compensation expense | $ 92 |
Share-Based Compensation - Valu
Share-Based Compensation - Valuation Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Risk-free interest rate | 3.47% | 1.72% |
Expected life in years | 6 years 1 month 6 days | 6 years |
Expected volatility | 24% | 23% |
Expected dividend yield | 1.56% | 1.17% |
Estimated weighted-average fair value of options granted per share (in dollars per share) | $ 27.39 | $ 28.18 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock repurchase program, authorized amount | $ 3,150,000,000 | ||
Repurchases of common stock (in shares) | 3.7 | ||
Repurchases of common stock | $ 475,000,000 | $ 475,000,000 | |
Stock repurchase program, remaining authorized amount | $ 2,500,000,000 | ||
Cash dividends per share (in dollars per share) | $ 0.42 | $ 0.38 | |
Aggregate payout | $ 236,000,000 | $ 214,000,000 | |
Open Market, Trading Period | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Repurchases of common stock (in shares) | 0.4 | ||
Repurchases of common stock | $ 50,000,000 | ||
Rule 10b5-1 Trading Plan | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Repurchases of common stock (in shares) | 3.3 | ||
Repurchases of common stock | $ 425,000,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 22,761 | $ 22,748 |
Other comprehensive income/(loss) | 16 | (25) |
Ending balance | 23,211 | 22,703 |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (331) | (196) |
Other comprehensive income (loss) | 16 | (25) |
Income tax benefit/(expense) | 0 | 0 |
Other comprehensive income/(loss) | 16 | (25) |
Ending balance | (315) | (221) |
Foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (278) | (150) |
Other comprehensive income (loss) | 16 | (25) |
Income tax benefit/(expense) | 0 | 0 |
Other comprehensive income/(loss) | 16 | (25) |
Ending balance | (262) | (175) |
Comprehensive income from equity method investment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 2 | 2 |
Other comprehensive income (loss) | 0 | 0 |
Income tax benefit/(expense) | 0 | 0 |
Other comprehensive income/(loss) | 0 | 0 |
Ending balance | 2 | 2 |
Employee benefit plans adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (55) | (48) |
Other comprehensive income (loss) | 0 | 0 |
Income tax benefit/(expense) | 0 | 0 |
Other comprehensive income/(loss) | 0 | 0 |
Ending balance | $ (55) | $ (48) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21% | 20% |
Clearing Operations - Narrative
Clearing Operations - Narrative (Details) € in Millions | 1 Months Ended | 3 Months Ended | ||
Sep. 30, 2022 | Mar. 31, 2023 USD ($) clearing_house | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | |
Principal Transaction Revenue [Line Items] | ||||
Number of clearing houses | clearing_house | 6 | |||
Margin deposits and guaranty funds assets received or pledged | $ 209,800,000,000 | $ 273,300,000,000 | ||
Default insurance term (in years) | 3 years | |||
Default insurance | 400,000,000 | 400,000,000 | ||
Cash deposits | 102,072,000,000 | 141,990,000,000 | ||
Net notional value of unsettled contracts | 2,400,000,000,000 | |||
Maximum exposure, undiscounted | 174,600,000,000 | |||
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 | |||
Default insurance | 25,000,000 | 25,000,000 | ||
ICE Clear U.S. | ||||
Principal Transaction Revenue [Line Items] | ||||
Default insurance | 25,000,000 | |||
Committed repo | 250,000,000 | |||
ICE Clear Europe | ||||
Principal Transaction Revenue [Line Items] | ||||
Default insurance | 100,000,000 | 100,000,000 | ||
Committed repo | 1,000,000,000 | |||
ICE Clear Credit | ||||
Principal Transaction Revenue [Line Items] | ||||
Default insurance | 75,000,000 | 75,000,000 | ||
Committed repo | 300,000,000 | € 250 | ||
Committed FX facilities | € | 1,900 | |||
ICE NGX | ||||
Principal Transaction Revenue [Line Items] | ||||
Default insurance | 200,000,000 | $ 200,000,000 | ||
Debt instrument, face amount | 215,000,000 | |||
Cash deposits | 15,000,000 | |||
Daylight liquidity | 100,000,000 | |||
First-loss amount | 15,000,000 | |||
ICE NGX | Canadian Chartered Bank | ||||
Principal Transaction Revenue [Line Items] | ||||
Daylight liquidity | 200,000,000 | |||
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 | 200,000,000 | |||
Additional losses under insurance policy | 200,000,000 | |||
Letter of Credit | ICE NGX | Canadian Chartered Bank | ||||
Principal Transaction Revenue [Line Items] | ||||
Debt instrument, face amount | $ 200,000,000 |
Clearing Operations - Guaranty
Clearing Operations - Guaranty Fund Contributions and Default Insurance (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Clearing Organizations [Line Items] | ||
ICE Portion of Guaranty Fund Contribution | $ 405 | $ 405 |
Default insurance | 400 | 400 |
ICE Clear Europe | ||
Clearing Organizations [Line Items] | ||
ICE Portion of Guaranty Fund Contribution | 247 | 247 |
Default insurance | 100 | 100 |
ICE Clear U.S. | ||
Clearing Organizations [Line Items] | ||
ICE Portion of Guaranty Fund Contribution | 90 | 90 |
Default insurance | 25 | 25 |
ICE Clear Credit | ||
Clearing Organizations [Line Items] | ||
ICE Portion of Guaranty Fund Contribution | 50 | 50 |
Default insurance | 75 | 75 |
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 | $ 200 | $ 200 |
Clearing Operations - Cash and
Clearing Operations - Cash and Invested Deposits (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Clearing Organizations [Line Items] | ||
Original margin | $ 94,279 | $ 136,666 |
Unsettled variation margin, net | 663 | 749 |
Guaranty fund | 8,267 | 7,940 |
Delivery contracts receivable/payable, net | 760 | 2,017 |
Total | 103,969 | 147,372 |
ICE Clear Europe | ||
Clearing Organizations [Line Items] | ||
Original margin | 56,321 | 101,243 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 4,203 | 4,162 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 60,524 | 105,405 |
ICE Clear Europe | Futures and options | ||
Clearing Organizations [Line Items] | ||
Total | 54,400 | 97,600 |
ICE Clear Europe | CDS | ||
Clearing Organizations [Line Items] | ||
Total | 6,100 | 7,800 |
ICE Clear Credit | ||
Clearing Organizations [Line Items] | ||
Original margin | 33,155 | 31,277 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 3,443 | 3,177 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 36,598 | 34,454 |
ICE Clear U.S. | ||
Clearing Organizations [Line Items] | ||
Original margin | 4,761 | 4,141 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 616 | 597 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | 5,377 | 4,738 |
ICE NGX | ||
Clearing Organizations [Line Items] | ||
Original margin | 0 | 0 |
Unsettled variation margin, net | 663 | 749 |
Guaranty fund | 0 | 0 |
Delivery contracts receivable/payable, net | 760 | 2,017 |
Total | 1,423 | 2,766 |
Other ICE Clearing Houses | ||
Clearing Organizations [Line Items] | ||
Original margin | 42 | 5 |
Unsettled variation margin, net | 0 | 0 |
Guaranty fund | 5 | 4 |
Delivery contracts receivable/payable, net | 0 | 0 |
Total | $ 47 | $ 9 |
Clearing Operations - Separate
Clearing Operations - Separate Cash Accounts (Details) € in Millions, $ in Millions, £ in Billions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 GBP (£) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | |
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 102,072 | $ 141,990 | ||||
Invested deposits, delivery contracts receivable and unsettled variation margin | 1,897 | 5,382 | ||||
ICE NGX | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 15 | |||||
Cash Deposit Based On Euro/US Dollar Exchange Rate | De Nederlandsche Bank | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 218 | $ 12,500 | € 201 | € 11,700 | ||
Exchange rate to USD | 1.0842 | 1.0704 | ||||
Cash Deposit Based On Euro/US Dollar Exchange Rate | Bank of England | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 11 | $ 11 | € 10 | € 10 | ||
Cash Deposit Based On Pound Sterling/US Dollar Exchange Rate | Bank of England | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 5,700 | $ 4,900 | £ 4.6 | £ 4 | ||
Exchange rate to USD | 1.2332 | 1.2093 | ||||
National bank account | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | $ 5,884 | $ 17,390 | ||||
National bank account | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 27,814 | 27,145 | ||||
Reverse repo | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 50,388 | 65,352 | ||||
Reverse repo | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 4,987 | 3,916 | ||||
Reverse repo | ICE Clear U.S. | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 5,228 | 4,266 | ||||
Sovereign debt | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 3,753 | 19,894 | ||||
Sovereign debt | ICE Clear U.S. | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 149 | 472 | ||||
Demand deposits | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 27 | 153 | ||||
Demand deposits | ICE Clear Credit | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 3,796 | 3,393 | ||||
Demand deposits | Other ICE Clearing Houses | ||||||
Clearing Organizations [Line Items] | ||||||
Cash deposits | 46 | 9 | ||||
Unsettled Variation Margin and Delivery Contracts Receivable/Payable | ICE NGX | ||||||
Clearing Organizations [Line Items] | ||||||
Invested deposits, delivery contracts receivable and unsettled variation margin | 1,423 | 2,766 | ||||
Invested deposits - sovereign debt | ICE Clear Europe | ||||||
Clearing Organizations [Line Items] | ||||||
Invested deposits, delivery contracts receivable and unsettled variation margin | $ 474 | $ 2,616 |
Clearing Operations - Assets Pl
Clearing Operations - Assets Pledged by Clearing Members (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Original Margin | ||
Original margin: | ||
Government securities at face value | $ 97,858 | $ 116,420 |
Letters of credit and other | 4,432 | 5,434 |
ICE NGX cash deposits | 1,632 | 2,357 |
Total | 103,922 | 124,211 |
Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 1,939 | 1,715 |
ICE Clear Europe | Original Margin | ||
Original margin: | ||
Government securities at face value | 59,429 | 74,964 |
Letters of credit and other | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 59,429 | 74,964 |
ICE Clear Europe | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 841 | 641 |
ICE Clear Credit | Original Margin | ||
Original margin: | ||
Government securities at face value | 24,762 | 26,601 |
Letters of credit and other | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 24,762 | 26,601 |
ICE Clear Credit | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 803 | 805 |
ICE Clear U.S. | Original Margin | ||
Original margin: | ||
Government securities at face value | 13,667 | 14,855 |
Letters of credit and other | 0 | 0 |
ICE NGX cash deposits | 0 | 0 |
Total | 13,667 | 14,855 |
ICE Clear U.S. | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | 295 | 269 |
ICE NGX | Original Margin | ||
Original margin: | ||
Government securities at face value | 0 | 0 |
Letters of credit and other | 4,432 | 5,434 |
ICE NGX cash deposits | 1,632 | 2,357 |
Total | 6,064 | 7,791 |
ICE NGX | Guaranty Fund | ||
Guaranty fund: | ||
Government securities at face value | $ 0 | $ 0 |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Estimate of possible claims | $ 725 |
Accrual for potential legal settlements | $ 10 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | $ 18,123 | $ 18,122 |
Fair value | $ 16,313 | |
2025 Senior Notes (3.65% senior unsecured notes due May 23, 2025) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 3.65% | |
Fair value | $ 1,230 | |
Senior notes | $ 1,244 | 1,243 |
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% | |
Fair value | $ 1,217 | |
Senior notes | $ 1,247 | 1,247 |
2027 Senior Notes (4.00% 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 | 4% | |
Fair value | $ 1,486 | |
Senior notes | $ 1,487 | 1,487 |
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% | |
Fair value | $ 473 | |
Senior notes | $ 498 | 498 |
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% | |
Fair value | $ 578 | |
Senior notes | $ 594 | 594 |
2029 Senior Notes (4.35% senior unsecured notes due June 15, 2029) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 4.35% | |
Fair value | $ 1,236 | |
Senior notes | $ 1,240 | 1,240 |
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% | |
Fair value | $ 1,061 | |
Senior notes | $ 1,236 | 1,235 |
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% | |
Fair value | $ 1,187 | |
Senior notes | $ 1,485 | 1,485 |
2033 Senior Notes (4.60% senior unsecured notes due March 15, 2033) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 4.60% | |
Fair value | $ 1,489 | |
Senior notes | $ 1,488 | 1,488 |
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% | |
Fair value | $ 911 | |
Senior notes | $ 1,232 | 1,231 |
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% | |
Fair value | $ 1,098 | |
Senior notes | $ 1,231 | 1,231 |
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% | |
Fair value | $ 884 | |
Senior notes | $ 1,221 | 1,221 |
2052 Senior Notes (4.95% senior unsecured notes due June 15, 2052) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 4.95% | |
Fair value | $ 1,467 | |
Senior notes | $ 1,465 | 1,464 |
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% | |
Fair value | $ 988 | |
Senior notes | $ 1,471 | 1,471 |
2062 Senior Notes (5.20% senior unsecured notes due June 15, 2062) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate, stated percentage | 5.20% | |
Fair value | $ 1,008 | |
Senior notes | $ 984 | $ 983 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment member | Mar. 31, 2022 USD ($) member | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Total revenues | $ 2,472 | $ 2,459 |
Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 1,673 | $ 1,643 |
Revenue | Exchanges Segment | Customer Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Number of members | member | 1 | 1 |
Total revenues | $ 123 | $ 124 |
Concentration risk, percentage | 11% | 11% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,472 | $ 2,459 |
Transaction-based expenses | 576 | 560 |
Total revenues, less transaction-based expenses | 1,896 | 1,899 |
Operating expenses | 927 | 907 |
Operating income | 969 | 992 |
Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,673 | 1,643 |
Transaction-based expenses | 576 | 560 |
Total revenues, less transaction-based expenses | 1,097 | 1,083 |
Operating expenses | 332 | 299 |
Operating income | 765 | 784 |
Fixed Income and Data Services Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 563 | 509 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 563 | 509 |
Operating expenses | 343 | 354 |
Operating income | 220 | 155 |
Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 236 | 307 |
Transaction-based expenses | 0 | 0 |
Total revenues, less transaction-based expenses | 236 | 307 |
Operating expenses | 252 | 254 |
Operating income | (16) | 53 |
Energy futures and options | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 345 | 353 |
Energy futures and options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 345 | 353 |
Energy futures and options | Fixed Income and Data Services Segment | ||
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 | 70 | 61 |
Agricultural and metals futures and options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 70 | 61 |
Agricultural and metals futures and options | Fixed Income and Data Services Segment | ||
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 | 128 | 130 |
Financial futures and options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 128 | 130 |
Financial futures and options | Fixed Income and Data Services Segment | ||
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 | 671 | 659 |
Cash equities and equity options | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 671 | 659 |
Cash equities and equity options | Fixed Income and Data Services Segment | ||
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 | 101 | 97 |
OTC and other | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 101 | 97 |
OTC and other | Fixed Income and Data Services Segment | ||
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 | 232 | 214 |
Data and connectivity services | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 232 | 214 |
Data and connectivity services | Fixed Income and Data Services Segment | ||
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 | 126 | 129 |
Listings | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 126 | 129 |
Listings | Fixed Income and Data Services Segment | ||
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 | 32 | 15 |
Fixed income execution | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Fixed income execution | Fixed Income and Data Services Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 32 | 15 |
Fixed income execution | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
CDS clearing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 101 | 72 |
CDS clearing | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
CDS clearing | Fixed Income and Data Services Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 101 | 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 | 276 | 277 |
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 | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 276 | 277 |
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 | 154 | 145 |
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 | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 154 | 145 |
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 | 167 | 203 |
Origination technology | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Origination technology | Fixed Income and Data Services Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Origination technology | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 167 | 203 |
Closing solutions | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 40 | 72 |
Closing solutions | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Closing solutions | Fixed Income and Data Services Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Closing solutions | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 40 | 72 |
Data and analytics | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 21 | 20 |
Data and analytics | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Data and analytics | Fixed Income and Data Services Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Data and analytics | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 21 | 20 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 8 | 12 |
Other | Exchanges Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Other | Fixed Income and Data Services Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 0 |
Other | Mortgage Technology Segment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 8 | $ 12 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic: | ||
Net income attributable to Intercontinental Exchange, Inc. | $ 655 | $ 657 |
Weighted average common shares outstanding (in shares) | 559 | 561 |
Basic earnings per common share (in dollars per share) | $ 1.17 | $ 1.17 |
Diluted: | ||
Weighted average common shares outstanding (in shares) | 559 | 561 |
Effect of dilutive securities - stock options and restricted stock (in shares) | 2 | 3 |
Diluted weighted average common shares outstanding (in shares) | 561 | 564 |
Diluted earnings per common share (in dollars per share) | $ 1.17 | $ 1.16 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 0.7 | 0.3 |