(Mark One) | |
þ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended June 30, 2016 | |
Or | |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to |
Delaware | 46-2286804 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
5660 New Northside Drive, Atlanta, Georgia | 30328 (Zip Code) |
(Address of principal executive offices) |
Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
(Do not check if a smaller company) |
PART I. | Financial Statements | |
Item 1 | ||
Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015 | ||
Consolidated Statements of Income for the six and three months ended June 30, 2016 and 2015 | ||
Consolidated Statements of Comprehensive Income for the six and three months ended June 30, 2016 and 2015 | ||
Consolidated Statements of Changes in Equity, Accumulated Other Comprehensive Loss and Redeemable Non-Controlling Interest for the six months ended June 30, 2016 and for the year ended December 31, 2015 | ||
Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015 | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
PART II. | Other Information | |
Item 1 | ||
Item 1A | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
Item 5 | ||
Item 6 | ||
As of | As of | ||||||
June 30, 2016 | December 31, 2015 | ||||||
Assets: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 390 | $ | 627 | |||
Short-term investments | 24 | 29 | |||||
Short-term restricted cash and investments | 722 | 657 | |||||
Customer accounts receivable, net of allowance for doubtful accounts of $2 at June 30, 2016 and December 31, 2015 | 862 | 700 | |||||
Margin deposits and guaranty funds | 48,501 | 51,169 | |||||
Prepaid expenses and other current assets | 131 | 131 | |||||
Total current assets | 50,630 | 53,313 | |||||
Property and equipment, net | 1,048 | 1,037 | |||||
Other non-current assets: | |||||||
Goodwill | 12,046 | 12,079 | |||||
Other intangible assets, net | 10,493 | 10,758 | |||||
Long-term restricted cash and investments | 262 | 263 | |||||
Long-term investments | 427 | 299 | |||||
Other non-current assets | 318 | 238 | |||||
Total other non-current assets | 23,546 | 23,637 | |||||
Total assets | $ | 75,224 | $ | 77,987 | |||
Liabilities and Equity: | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 350 | $ | 398 | |||
Section 31 fees payable | 195 | 116 | |||||
Accrued salaries and benefits | 149 | 215 | |||||
Deferred revenue | 330 | 98 | |||||
Short-term debt | 1,811 | 2,591 | |||||
Margin deposits and guaranty funds | 48,501 | 51,169 | |||||
Other current liabilities | 102 | 156 | |||||
Total current liabilities | 51,438 | 54,743 | |||||
Non-current liabilities: | |||||||
Non-current deferred tax liability, net | 2,903 | 2,837 | |||||
Long-term debt | 4,719 | 4,717 | |||||
Accrued employee benefits | 470 | 478 | |||||
Other non-current liabilities | 331 | 337 | |||||
Total non-current liabilities | 8,423 | 8,369 | |||||
Total liabilities | 59,861 | 63,112 | |||||
Commitments and contingencies | |||||||
Redeemable non-controlling interest | 33 | 35 |
Equity: | |||||||
Intercontinental Exchange, Inc. shareholders’ equity: | |||||||
Preferred stock, $0.01 par value; 100 shares authorized; no shares issued or outstanding at June 30, 2016 and December 31, 2015 | — | — | |||||
Common stock, $0.01 par value; 500 shares authorized; 126 shares issued at June 30, 2016 and December 31, 2015, and 119 shares outstanding at June 30, 2016 and December 31, 2015 | 1 | 1 | |||||
Treasury stock, at cost; 7 shares at June 30, 2016 and December 31, 2015 | (1,496 | ) | (1,448 | ) | |||
Additional paid-in capital | 12,376 | 12,295 | |||||
Retained earnings | 4,669 | 4,148 | |||||
Accumulated other comprehensive loss | (258 | ) | (188 | ) | |||
Total Intercontinental Exchange, Inc. shareholders’ equity | 15,292 | 14,808 | |||||
Non-controlling interest in consolidated subsidiaries | 38 | 32 | |||||
Total equity | 15,330 | 14,840 | |||||
Total liabilities and equity | $ | 75,224 | $ | 77,987 |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Transaction and clearing, net | $ | 1,789 | $ | 1,583 | $ | 860 | $ | 747 | |||||||
Data services | 974 | 405 | 497 | 205 | |||||||||||
Listings | 208 | 202 | 105 | 101 | |||||||||||
Other revenues | 87 | 86 | 42 | 43 | |||||||||||
Total revenues | 3,058 | 2,276 | 1,504 | 1,096 | |||||||||||
Transaction-based expenses: | |||||||||||||||
Section 31 fees | 196 | 171 | 98 | 78 | |||||||||||
Cash liquidity payments, routing and clearing | 579 | 458 | 277 | 221 | |||||||||||
Total revenues, less transaction-based expenses | 2,283 | 1,647 | 1,129 | 797 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation and benefits | 472 | 295 | 236 | 144 | |||||||||||
Technology and communication | 184 | 98 | 92 | 47 | |||||||||||
Professional services | 69 | 65 | 37 | 32 | |||||||||||
Rent and occupancy | 35 | 31 | 17 | 15 | |||||||||||
Acquisition-related transaction and integration costs | 47 | 26 | 20 | 7 | |||||||||||
Selling, general and administrative | 52 | 58 | 30 | 29 | |||||||||||
Depreciation and amortization | 289 | 182 | 146 | 93 | |||||||||||
Total operating expenses | 1,148 | 755 | 578 | 367 | |||||||||||
Operating income | 1,135 | 892 | 551 | 430 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (90 | ) | (46 | ) | (44 | ) | (23 | ) | |||||||
Other income (expense), net | 11 | (7 | ) | 9 | (9 | ) | |||||||||
Other expense, net | (79 | ) | (53 | ) | (35 | ) | (32 | ) | |||||||
Income before income tax expense | 1,056 | 839 | 516 | 398 | |||||||||||
Income tax expense | 316 | 227 | 153 | 109 | |||||||||||
Net income | $ | 740 | $ | 612 | $ | 363 | $ | 289 | |||||||
Net income attributable to non-controlling interest | (14 | ) | (14 | ) | (6 | ) | (6 | ) | |||||||
Net income attributable to Intercontinental Exchange, Inc. | $ | 726 | $ | 598 | $ | 357 | $ | 283 | |||||||
Earnings per share attributable to Intercontinental Exchange, Inc. common shareholders: | |||||||||||||||
Basic | $ | 6.10 | $ | 5.37 | $ | 3.00 | $ | 2.55 | |||||||
Diluted | $ | 6.07 | $ | 5.34 | $ | 2.98 | $ | 2.54 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 119 | 112 | 119 | 111 | |||||||||||
Diluted | 120 | 112 | 120 | 112 | |||||||||||
Dividend per share | $ | 1.70 | $ | 1.40 | $ | 0.85 | $ | 0.75 |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 740 | $ | 612 | $ | 363 | $ | 289 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments, net of tax (expense) benefit of $1 and $3 for the six months ended June 30, 2016 and 2015, respectively, and ($1) and ($1) for the three months ended June 30, 2016 and 2015, respectively | (199 | ) | 19 | (125 | ) | 56 | |||||||||
Change in fair value of available-for-sale securities | 129 | (39 | ) | 75 | 31 | ||||||||||
Employee benefit plan adjustments | — | (2 | ) | — | (2 | ) | |||||||||
Other comprehensive income (loss) | (70 | ) | (22 | ) | (50 | ) | 85 | ||||||||
Comprehensive income | $ | 670 | $ | 590 | $ | 313 | $ | 374 | |||||||
Comprehensive income attributable to non-controlling interest | (14 | ) | (14 | ) | (6 | ) | (6 | ) | |||||||
Comprehensive income attributable to Intercontinental Exchange, Inc. | $ | 656 | $ | 576 | $ | 307 | $ | 368 |
Intercontinental Exchange, Inc. Shareholders' Equity | Non- Controlling Interest in Consolidated Subsidiaries | Total Equity | Redeemable Non-Controlling Interest | ||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | ||||||||||||||||||||||||||||||||||
Balance, as of December 31, 2014 | 116 | $ | 1 | (3 | ) | $ | (743 | ) | $ | 9,938 | $ | 3,210 | $ | (46 | ) | $ | 32 | $ | 12,392 | $ | 165 | ||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (142 | ) | — | (142 | ) | — | |||||||||||||||||||||||||
Stock consideration issued for acquisitions | 9 | — | — | — | 2,197 | — | — | — | 2,197 | — | |||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | 19 | — | — | — | 19 | — | |||||||||||||||||||||||||||
Repurchases of common stock | — | — | (3 | ) | (660 | ) | — | — | — | — | (660 | ) | — | ||||||||||||||||||||||||
Payments relating to treasury shares | — | — | (1 | ) | (45 | ) | — | — | — | — | (45 | ) | — | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 122 | — | — | — | 122 | — | |||||||||||||||||||||||||||
Issuance of restricted stock | 1 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Tax benefits from stock option plans | — | — | — | — | 19 | — | — | — | 19 | — | |||||||||||||||||||||||||||
Adjustment to redemption value | — | — | — | — | — | (5 | ) | — | — | (5 | ) | 4 | |||||||||||||||||||||||||
Distributions of profits | — | — | — | — | — | — | — | (16 | ) | (16 | ) | (11 | ) | ||||||||||||||||||||||||
Dividends paid to shareholders | — | — | — | — | — | (331 | ) | — | — | (331 | ) | — | |||||||||||||||||||||||||
Purchase of subsidiary shares | — | — | — | — | — | — | — | — | — | (128 | ) | ||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | (21 | ) | — | 16 | (5 | ) | 5 | |||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,295 | — | — | 1,295 | — | |||||||||||||||||||||||||||
Balance, as of December 31, 2015 | 126 | 1 | (7 | ) | (1,448 | ) | 12,295 | 4,148 | (188 | ) | 32 | 14,840 | 35 | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (70 | ) | — | (70 | ) | — | |||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | 13 | — | — | — | 13 | — | |||||||||||||||||||||||||||
Payments relating to treasury shares | — | — | — | (48 | ) | — | — | — | — | (48 | ) | — | |||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 68 | — | — | — | 68 | — | |||||||||||||||||||||||||||
Distributions of profits | — | — | — | — | — | — | — | (7 | ) | (7 | ) | (3 | ) | ||||||||||||||||||||||||
Dividends paid to shareholders | — | — | — | — | — | (205 | ) | — | — | (205 | ) | — | |||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | (14 | ) | — | 13 | (1 | ) | 1 | |||||||||||||||||||||||||
Net income | — | — | — | — | — | 740 | — | — | 740 | — | |||||||||||||||||||||||||||
Balance, as of June 30, 2016 | 126 | $ | 1 | (7 | ) | $ | (1,496 | ) | $ | 12,376 | $ | 4,669 | $ | (258 | ) | $ | 38 | $ | 15,330 | $ | 33 |
As of | As of | ||||||
June 30, 2016 | December 31, 2015 | ||||||
Accumulated other comprehensive loss was as follows: | |||||||
Foreign currency translation adjustments | $ | (244 | ) | $ | (45 | ) | |
Fair value of available-for-sale securities | 103 | (26 | ) | ||||
Comprehensive income from equity method investment | 2 | 2 | |||||
Employee benefit plans adjustments | (119 | ) | (119 | ) | |||
Accumulated other comprehensive loss | $ | (258 | ) | $ | (188 | ) |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Operating activities: | |||||||
Net income | $ | 740 | $ | 612 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 289 | 182 | |||||
Stock-based compensation | 60 | 47 | |||||
Deferred taxes | 49 | (38 | ) | ||||
Amortization of fair market value premium on NYSE Notes | — | (23 | ) | ||||
Other | 4 | (17 | ) | ||||
Changes in assets and liabilities: | |||||||
Customer accounts receivable | (157 | ) | (91 | ) | |||
Other current and non-current assets | (21 | ) | (25 | ) | |||
Section 31 fees payable | 79 | 31 | |||||
Deferred revenue | 257 | 237 | |||||
Other current and non-current liabilities | (197 | ) | (145 | ) | |||
Total adjustments | 363 | 158 | |||||
Net cash provided by operating activities | 1,103 | 770 | |||||
Investing activities: | |||||||
Capital expenditures | (96 | ) | (92 | ) | |||
Capitalized software development costs | (61 | ) | (44 | ) | |||
Proceeds from term deposits and sales of available-for-sale investments | — | 1,084 | |||||
Decrease (increase) in restricted cash and investments | (75 | ) | 11 | ||||
Other | (70 | ) | (60 | ) | |||
Net cash provide by (used in) investing activities | (302 | ) | 899 | ||||
Financing activities: | |||||||
Repayments of debt facilities and commercial paper, net | (781 | ) | (918 | ) | |||
Dividends to shareholders | (205 | ) | (158 | ) | |||
Repurchases of common stock | — | (399 | ) | ||||
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises | (48 | ) | (39 | ) | |||
Distributions of profits to non-controlling interest | (10 | ) | (17 | ) | |||
Purchase of subsidiary shares from non-controlling interest | — | (128 | ) | ||||
Other | 13 | 24 | |||||
Net cash used in financing activities | (1,031 | ) | (1,635 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (7 | ) | (8 | ) | |||
Net increase (decrease) in cash and cash equivalents | (237 | ) | 26 | ||||
Cash and cash equivalents, beginning of period | 627 | 652 | |||||
Cash and cash equivalents, end of period | $ | 390 | $ | 678 | |||
Supplemental cash flow disclosure: | |||||||
Cash paid for income taxes | $ | 275 | $ | 233 | |||
Cash paid for interest | $ | 88 | $ | 91 |
1. | Description of Business |
2. | Summary of Significant Accounting Policies |
3. | Acquisitions |
Cash and cash equivalents | $ | 301 | |
Goodwill | 3,247 | ||
Identifiable intangible assets | 2,883 | ||
Other assets and liabilities, net | 268 | ||
Deferred tax liabilities on identifiable intangible assets | (1,071 | ) | |
Total purchase price | $ | 5,628 |
Preliminary Intangible Assets | Acquisition-Date Preliminary Fair Value | Foreign Currency Translation | Accumulated Amortization | Net Book Value | Useful Life (Years) | |||||||||||||
Customer relationships | $ | 2,452 | $ | (45 | ) | $ | (55 | ) | $ | 2,352 | 20 to 25 | |||||||
Developed technology | 168 | (3 | ) | (13 | ) | 152 | 5 to 8 | |||||||||||
In-process research and development | 129 | (3 | ) | — | 126 | N/A | ||||||||||||
Data/databases | 109 | (1 | ) | (16 | ) | 92 | 4 | |||||||||||
Trade names and trademarks | 12 | — | (6 | ) | 6 | 2 | ||||||||||||
Market data provider relationships | 11 | — | — | 11 | 20 | |||||||||||||
Non-compete agreements | 2 | — | (1 | ) | 1 | 1 | ||||||||||||
Total | $ | 2,883 | $ | (52 | ) | $ | (91 | ) | $ | 2,740 |
Goodwill | $ | 388 | |
Identifiable intangible assets | 274 | ||
Other assets and liabilities, net | 8 | ||
Deferred tax liabilities on identifiable intangible assets | (50 | ) | |
Total purchase price | $ | 620 |
Preliminary Intangible Assets | Acquisition-Date Preliminary Fair Value | Foreign Currency Translation | Accumulated Amortization | Net Book Value | Useful Life (Years) | |||||||||||||
Customer relationships | $ | 242 | $ | (30 | ) | $ | (7 | ) | $ | 205 | 20 | |||||||
Developed technology | 14 | (1 | ) | (2 | ) | 11 | 3 to 5 | |||||||||||
Trade names and trademarks | 18 | (2 | ) | — | 16 | Indefinite | ||||||||||||
Total | $ | 274 | $ | (33 | ) | $ | (9 | ) | $ | 232 |
Six Months Ended June 30, 2015 | Three Months Ended June 30, 2015 | ||||||
Total revenues, less transaction-based expenses | $ | 2,153 | $ | 1,053 | |||
Operating income | 996 | 478 | |||||
Net income attributable to ICE | 632 | 299 | |||||
Earnings per common share: | |||||||
Basic | $ | 5.25 | $ | 2.49 | |||
Diluted | $ | 5.22 | $ | 2.48 |
4. | Goodwill and Other Intangible Assets |
Goodwill balance at December 31, 2015 | $ | 12,079 | |
Foreign currency translation | (79 | ) | |
Other activity, net | 46 | ||
Goodwill balance at June 30, 2016 | $ | 12,046 |
Other intangible assets balance at December 31, 2015 | $ | 10,758 | |
Foreign currency translation | (95 | ) | |
Other activity, net | (6 | ) | |
Amortization of other intangible assets | (164 | ) | |
Other intangible assets balance at June 30, 2016 | $ | 10,493 |
5. | Deferred Revenue |
Annual Listings Revenue | Original Listings Revenues | Other Listings Revenues | Data Services and Other Revenues | Total | |||||||||||||||
Deferred revenue balance at December 31, 2015 | $ | — | $ | 50 | $ | 59 | $ | 81 | $ | 190 | |||||||||
Additions | 363 | 12 | 43 | 263 | 681 | ||||||||||||||
Amortization | (183 | ) | (4 | ) | (21 | ) | (221 | ) | (429 | ) | |||||||||
Deferred revenue balance at June 30, 2016 | $ | 180 | $ | 58 | $ | 81 | $ | 123 | $ | 442 |
6. | Debt |
As of June 30, 2016 | As of December 31, 2015 | ||||||
Debt: | |||||||
Commercial Paper | $ | 1,811 | $ | 2,591 | |||
Short-term debt | 1,811 | 2,591 | |||||
NYSE USD Notes (2.00% senior unsecured notes due October 5, 2017) | 852 | 852 | |||||
2018 Senior Notes (2.50% senior unsecured notes due October 15, 2018) | 597 | 597 | |||||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | 1,240 | 1,239 | |||||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | 789 | 789 | |||||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | 1,241 | 1,240 | |||||
Long-term debt | 4,719 | 4,717 | |||||
Total debt | $ | 6,530 | $ | 7,308 |
7. | Equity |
Number of Options | Weighted Average Exercise Price per Option | |||||
Outstanding at December 31, 2015 | 774,551 | $ | 159.66 | |||
Granted | 150,323 | 250.07 | ||||
Exercised | (92,653 | ) | 143.45 | |||
Outstanding at June 30, 2016 | 832,221 | 177.80 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (In millions) | |||||||||
Vested or expected to vest | 832,221 | $ | 177.80 | 6.9 | $ | 65 | ||||||
Exercisable | 559,552 | $ | 151.84 | 5.9 | $ | 58 |
Six Months Ended June 30, | |||||||
Assumptions: | 2016 | 2015 | |||||
Risk-free interest rate | 1.51 | % | 1.08 | % | |||
Expected life in years | 5.0 | 5.0 | |||||
Expected volatility | 24 | % | 24 | % | |||
Expected dividend yield | 1.36 | % | 1.25 | % | |||
Estimated weighted-average fair value of options granted per share | $ | 49.39 | $ | 40.94 |
Number of Restricted Stock Shares | Weighted Average Grant-Date Fair Value per Share | ||||
Non-vested at December 31, 2015 | 1,254,235 | $ | 199.44 | ||
Granted | 580,901 | 248.45 | |||
Vested | (447,715) | 187.50 | |||
Forfeited | (36,541) | 225.76 | |||
Non-vested at June 30, 2016 | 1,350,880 | 224.22 |
8. | Income Taxes |
9. | Clearing Organizations |
• | ICE Clear Europe performs the clearing and settlement for all futures and options contracts traded through ICE Futures Europe and ICE Endex, for CDS contracts submitted for clearing in Europe, and for energy futures and options contracts trading through ICE Futures U.S. |
• | ICE Clear Credit performs the clearing and settlement for CDS contracts submitted for clearing in North America. |
• | ICE Clear U.S. performs the clearing and settlement of agricultural, metals, currencies and financial futures and options contracts traded through ICE Futures U.S. |
• | ICE Clear Canada performs the clearing and settlement for all futures and options contracts traded through ICE Futures Canada. |
• | ICE Clear Netherlands offers clearing for The Order Machine, a multi-lateral trading facility for equity options. |
• | ICE Clear Singapore performs the clearing and settlement for all futures and options contracts traded through ICE Futures Singapore. |
ICE Clear Europe | ICE Clear Credit | ICE Clear U.S. | Other ICE Clearing Houses | Total | |||||||||||||||
Original margin | $ | 25,177 | $ | 14,176 | $ | 4,445 | $ | 160 | $ | 43,958 | |||||||||
Guaranty fund | 2,797 | 1,431 | 303 | 12 | 4,543 | ||||||||||||||
Total | $ | 27,974 | $ | 15,607 | $ | 4,748 | $ | 172 | $ | 48,501 |
ICE Clear Europe | ICE Clear Credit | ICE Clear U.S. | Other ICE Clearing Houses | Total | |||||||||||||||
Original margin | $ | 28,454 | $ | 13,750 | $ | 3,882 | $ | 159 | $ | 46,245 | |||||||||
Guaranty fund | 2,589 | 2,011 | 311 | 13 | 4,924 | ||||||||||||||
Total | $ | 31,043 | $ | 15,761 | $ | 4,193 | $ | 172 | $ | 51,169 |
As of June 30, 2016 | As of December 31, 2015 | ||||||||||||||||||||||||||||||
ICE Clear Europe | ICE Clear Credit | ICE Clear U.S. | Other ICE Clearing Houses | ICE Clear Europe | ICE Clear Credit | ICE Clear U.S. | Other ICE Clearing Houses | ||||||||||||||||||||||||
Original margin: | |||||||||||||||||||||||||||||||
Government securities at face value | $ | 23,465 | $ | 6,157 | $ | 9,862 | $ | 44 | $ | 21,690 | $ | 4,989 | $ | 8,161 | $ | 97 | |||||||||||||||
Letters of credit | — | — | — | 389 | — | — | — | 381 | |||||||||||||||||||||||
Total | $ | 23,465 | $ | 6,157 | $ | 9,862 | $ | 433 | $ | 21,690 | $ | 4,989 | $ | 8,161 | $ | 478 | |||||||||||||||
Guaranty fund: | |||||||||||||||||||||||||||||||
Government securities at face value | $ | 261 | $ | 179 | $ | 153 | $ | 45 | $ | 267 | $ | 229 | $ | 158 | $ | 61 |
10. | Fair Value Measurements |
• | Level 1 inputs — quoted prices for identical assets or liabilities in active markets. |
• | Level 2 inputs — observable inputs other than Level 1 inputs such as quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are directly observable. |
• | Level 3 inputs — unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
As of June 30, 2016 | As of December 31, 2015 | ||||||||||||||||||||||
Level 1 | Level 2 and 3 | Total | Level 1 | Level 2 and 3 | Total | ||||||||||||||||||
Assets at fair value: | |||||||||||||||||||||||
Long-term investment in equity securities | $ | 427 | $ | — | $ | 427 | $ | 299 | $ | — | $ | 299 | |||||||||||
U.S. Treasury securities | 503 | — | 503 | 449 | — | 449 | |||||||||||||||||
Mutual Funds | 24 | — | 24 | 29 | — | 29 | |||||||||||||||||
Total assets at fair value | $ | 954 | $ | — | $ | 954 | $ | 777 | $ | — | $ | 777 |
11. | Condensed Consolidating Financial Statements (Unaudited) |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 2 | $ | — | $ | 388 | $ | — | $ | 390 | |||||||||
Intercompany receivable | 3,267 | — | 312 | (3,579 | ) | — | |||||||||||||
Margin deposits and guaranty funds | — | — | 48,501 | — | 48,501 | ||||||||||||||
Notes receivable from affiliate, current | — | 343 | — | (343 | ) | — | |||||||||||||
Other current assets | 2 | — | 1,737 | — | 1,739 | ||||||||||||||
Total current assets | 3,271 | 343 | 50,938 | (3,922 | ) | 50,630 | |||||||||||||
Property and equipment, net | — | — | 1,048 | — | 1,048 | ||||||||||||||
Other non-current assets: | |||||||||||||||||||
Goodwill and other intangible assets, net | — | — | 22,539 | — | 22,539 | ||||||||||||||
Investment in subsidiaries | 21,776 | 13,925 | — | (35,701 | ) | — | |||||||||||||
Notes receivable from affiliate, non-current | — | 5,433 | 4,689 | (10,122 | ) | — | |||||||||||||
Other non-current assets | 91 | 10 | 906 | — | 1,007 | ||||||||||||||
Total other non-current assets | 21,867 | 19,368 | 28,134 | (45,823 | ) | 23,546 | |||||||||||||
Total assets | $ | 25,138 | $ | 19,711 | $ | 80,120 | $ | (49,745 | ) | $ | 75,224 | ||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt | $ | 1,811 | $ | — | $ | — | $ | — | $ | 1,811 | |||||||||
Margin deposits and guaranty funds | — | — | 48,501 | — | 48,501 | ||||||||||||||
Intercompany payable | — | 3,579 | — | (3,579 | ) | — | |||||||||||||
Notes payable to affiliates, current | 281 | — | 62 | (343 | ) | — | |||||||||||||
Other current liabilities | 24 | — | 1,102 | — | 1,126 | ||||||||||||||
Total current liabilities | 2,116 | 3,579 | 49,665 | (3,922 | ) | 51,438 | |||||||||||||
Non-current liabilities: | |||||||||||||||||||
Long-term debt | 3,868 | 851 | — | — | 4,719 | ||||||||||||||
Notes payable to affiliates, non-current | 3,858 | 831 | 5,433 | (10,122 | ) | — | |||||||||||||
Other non-current liabilities | 4 | — | 3,700 | — | 3,704 | ||||||||||||||
Total non-current liabilities | 7,730 | 1,682 | 9,133 | (10,122 | ) | 8,423 | |||||||||||||
Total liabilities | 9,846 | 5,261 | 58,798 | (14,044 | ) | 59,861 | |||||||||||||
Redeemable non-controlling interest | — | — | 33 | — | 33 | ||||||||||||||
Equity: | |||||||||||||||||||
Total shareholders' equity | 15,292 | 14,450 | 21,251 | (35,701 | ) | 15,292 | |||||||||||||
Non-controlling interest in consolidated subsidiaries | — | — | 38 | — | 38 | ||||||||||||||
Total equity | 15,292 | 14,450 | 21,289 | (35,701 | ) | 15,330 | |||||||||||||
Total liabilities and equity | $ | 25,138 | $ | 19,711 | $ | 80,120 | $ | (49,745 | ) | $ | 75,224 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | — | $ | 626 | $ | — | $ | 627 | |||||||||
Intercompany receivable | 3,176 | — | — | (3,176 | ) | — | |||||||||||||
Margin deposits and guaranty funds | — | — | 51,169 | — | 51,169 | ||||||||||||||
Note receivable from affiliate, current | — | 705 | 77 | (782 | ) | — | |||||||||||||
Other current assets | 5 | — | 1,512 | — | 1,517 | ||||||||||||||
Total current assets | 3,182 | 705 | 53,384 | (3,958 | ) | 53,313 | |||||||||||||
Property and equipment, net | — | — | 1,037 | — | 1,037 | ||||||||||||||
Other non-current assets: | |||||||||||||||||||
Goodwill and other intangible assets, net | — | — | 22,837 | — | 22,837 | ||||||||||||||
Investment in subsidiaries | 21,120 | 9,840 | — | (30,960 | ) | — | |||||||||||||
Note receivable from affiliate, non-current | — | 3,128 | 3,370 | (6,498 | ) | — | |||||||||||||
Other non-current assets | 20 | 10 | 770 | — | 800 | ||||||||||||||
Total other non-current assets | 21,140 | 12,978 | 26,977 | (37,458 | ) | 23,637 | |||||||||||||
Total assets | $ | 24,322 | $ | 13,683 | $ | 81,398 | $ | (41,416 | ) | $ | 77,987 | ||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt | $ | 2,591 | $ | — | $ | — | $ | — | $ | 2,591 | |||||||||
Margin deposits and guaranty funds | — | — | 51,169 | — | 51,169 | ||||||||||||||
Intercompany payable | — | 1,784 | 1,392 | (3,176 | ) | — | |||||||||||||
Notes payable to affiliates, current | 358 | — | 424 | (782 | ) | — | |||||||||||||
Other current liabilities | 36 | — | 947 | — | 983 | ||||||||||||||
Total current liabilities | 2,985 | 1,784 | 53,932 | (3,958 | ) | 54,743 | |||||||||||||
Non-current liabilities: | |||||||||||||||||||
Long-term debt | 3,865 | 852 | — | — | 4,717 | ||||||||||||||
Notes payable to affiliates, non-current | 2,629 | 741 | 3,128 | (6,498 | ) | — | |||||||||||||
Other non-current liabilities | 35 | — | 3,617 | — | 3,652 | ||||||||||||||
Total non-current liabilities | 6,529 | 1,593 | 6,745 | (6,498 | ) | 8,369 | |||||||||||||
Total liabilities | 9,514 | 3,377 | 60,677 | (10,456 | ) | 63,112 | |||||||||||||
Redeemable non-controlling interest | — | — | 35 | — | 35 | ||||||||||||||
Equity: | |||||||||||||||||||
Total shareholders' equity | 14,808 | 10,306 | 20,654 | (30,960 | ) | 14,808 | |||||||||||||
Non-controlling interest in consolidated subsidiaries | — | — | 32 | — | 32 | ||||||||||||||
Total equity | 14,808 | 10,306 | 20,686 | (30,960 | ) | 14,840 | |||||||||||||
Total liabilities and equity | $ | 24,322 | $ | 13,683 | $ | 81,398 | $ | (41,416 | ) | $ | 77,987 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Transaction and clearing, net | $ | — | $ | — | $ | 1,789 | $ | — | $ | 1,789 | |||||||||
Data services | — | — | 974 | — | 974 | ||||||||||||||
Listings and other revenues | — | — | 295 | — | 295 | ||||||||||||||
Revenues | — | — | 3,058 | — | 3,058 | ||||||||||||||
Transaction-based expenses | — | — | 775 | — | 775 | ||||||||||||||
Revenues, less transaction-based expenses | — | — | 2,283 | — | 2,283 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Compensation and benefits | 1 | — | 471 | — | 472 | ||||||||||||||
Technology and communication | — | — | 184 | — | 184 | ||||||||||||||
Acquisition-related transaction and integration costs | — | — | 47 | — | 47 | ||||||||||||||
Selling, general, administrative and other | — | — | 156 | — | 156 | ||||||||||||||
Depreciation and amortization | — | — | 289 | — | 289 | ||||||||||||||
Operating expenses | 1 | — | 1,147 | — | 1,148 | ||||||||||||||
Operating income (loss) | (1 | ) | — | 1,136 | — | 1,135 | |||||||||||||
Intercompany interest on loans | (10 | ) | 16 | (6 | ) | — | — | ||||||||||||
Other income (expense), net | (79 | ) | (8 | ) | 8 | — | (79 | ) | |||||||||||
Total other income (expense), net | (89 | ) | 8 | 2 | — | (79 | ) | ||||||||||||
Income (loss) before income taxes | (90 | ) | 8 | 1,138 | — | 1,056 | |||||||||||||
Income tax expense | — | — | 316 | — | 316 | ||||||||||||||
Equity earnings from subsidiaries | 816 | 611 | — | (1,427 | ) | — | |||||||||||||
Net income | $ | 726 | $ | 619 | $ | 822 | $ | (1,427 | ) | $ | 740 | ||||||||
Net income attributable to non-controlling interest | — | — | (14 | ) | — | (14 | ) | ||||||||||||
Net income attributable to ICE | $ | 726 | $ | 619 | $ | 808 | $ | (1,427 | ) | $ | 726 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Net income | $ | 726 | $ | 619 | $ | 822 | $ | (1,427 | ) | $ | 740 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | — | — | (199 | ) | — | (199 | ) | ||||||||||||
Change in fair value of available-for-sale-securities | — | — | 129 | — | 129 | ||||||||||||||
Total other comprehensive loss | — | — | (70 | ) | — | (70 | ) | ||||||||||||
Comprehensive loss of subsidiaries | (70 | ) | (18 | ) | — | 88 | — | ||||||||||||
Comprehensive income | 656 | 601 | 752 | (1,339 | ) | 670 | |||||||||||||
Comprehensive income attributable to non-controlling interests | — | — | (14 | ) | — | (14 | ) | ||||||||||||
Comprehensive income attributable to ICE | $ | 656 | $ | 601 | $ | 738 | $ | (1,339 | ) | $ | 656 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Transaction and clearing, net | $ | — | $ | — | $ | 860 | $ | — | $ | 860 | |||||||||
Data services | — | — | 497 | — | 497 | ||||||||||||||
Listings and other revenues | — | — | 147 | — | 147 | ||||||||||||||
Revenues | — | — | 1,504 | — | 1,504 | ||||||||||||||
Transaction-based expenses | — | — | 375 | — | 375 | ||||||||||||||
Revenues, less transaction-based expenses | — | — | 1,129 | — | 1,129 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Compensation and benefits | 1 | — | 235 | — | 236 | ||||||||||||||
Technology and communication | — | — | 92 | — | 92 | ||||||||||||||
Acquisition-related transaction and integration costs | — | — | 20 | — | 20 | ||||||||||||||
Selling, general, administrative and other | — | — | 84 | — | 84 | ||||||||||||||
Depreciation and amortization | — | — | 146 | — | 146 | ||||||||||||||
Operating expenses | 1 | — | 577 | — | 578 | ||||||||||||||
Operating income (loss) | (1 | ) | — | 552 | — | 551 | |||||||||||||
Intercompany interest on loans | (6 | ) | 8 | (2 | ) | — | — | ||||||||||||
Other income (expense), net | (38 | ) | (4 | ) | 7 | — | (35 | ) | |||||||||||
Total other income (expense), net | (44 | ) | 4 | 5 | — | (35 | ) | ||||||||||||
Income (loss) before income taxes | (45 | ) | 4 | 557 | — | 516 | |||||||||||||
Income tax expense | — | — | 153 | — | 153 | ||||||||||||||
Equity earnings from subsidiaries | 402 | 324 | — | (726 | ) | — | |||||||||||||
Net income | $ | 357 | $ | 328 | $ | 404 | $ | (726 | ) | $ | 363 | ||||||||
Net income attributable to non-controlling interest | — | — | (6 | ) | — | (6 | ) | ||||||||||||
Net income attributable to ICE | $ | 357 | $ | 328 | $ | 398 | $ | (726 | ) | $ | 357 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Net income | $ | 357 | $ | 328 | $ | 404 | $ | (726 | ) | $ | 363 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | — | — | (125 | ) | — | (125 | ) | ||||||||||||
Change in fair value of available-for-sale-securities | — | — | 75 | — | 75 | ||||||||||||||
Total other comprehensive loss | — | — | (50 | ) | — | (50 | ) | ||||||||||||
Comprehensive loss of subsidiaries | (50 | ) | (28 | ) | — | 78 | — | ||||||||||||
Comprehensive income | 307 | 300 | 354 | (648 | ) | 313 | |||||||||||||
Comprehensive income attributable to non-controlling interests | — | — | (6 | ) | — | (6 | ) | ||||||||||||
Comprehensive income attributable to ICE | $ | 307 | $ | 300 | $ | 348 | $ | (648 | ) | $ | 307 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Transaction and clearing, net | $ | — | $ | — | $ | 1,583 | $ | — | $ | 1,583 | |||||||||
Data services | — | — | 405 | — | 405 | ||||||||||||||
Listings and other revenues | — | — | 288 | — | 288 | ||||||||||||||
Revenues | — | — | 2,276 | — | 2,276 | ||||||||||||||
Transaction-based expenses | — | — | 629 | — | 629 | ||||||||||||||
Revenues, less transaction-based expenses | — | — | 1,647 | — | 1,647 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Compensation and benefits | 1 | — | 294 | — | 295 | ||||||||||||||
Technology and communication | — | — | 98 | — | 98 | ||||||||||||||
Acquisition-related transaction and integration costs | — | — | 26 | — | 26 | ||||||||||||||
Selling, general, administrative and other | 1 | — | 153 | — | 154 | ||||||||||||||
Depreciation and amortization | — | — | 182 | — | 182 | ||||||||||||||
Operating expenses | 2 | — | 753 | — | 755 | ||||||||||||||
Operating income (loss) | (2 | ) | — | 894 | — | 892 | |||||||||||||
Intercompany interest on loans | (2 | ) | 19 | (17 | ) | — | — | ||||||||||||
Other expense, net | (7 | ) | (33 | ) | (13 | ) | — | (53 | ) | ||||||||||
Total other expense, net | (9 | ) | (14 | ) | (30 | ) | — | (53 | ) | ||||||||||
Income (loss) before income taxes | (11 | ) | (14 | ) | 864 | — | 839 | ||||||||||||
Income tax expense (benefit) | (3 | ) | — | 230 | — | 227 | |||||||||||||
Equity earnings from subsidiaries | 606 | 168 | — | (774 | ) | — | |||||||||||||
Net income | $ | 598 | $ | 154 | $ | 634 | $ | (774 | ) | $ | 612 | ||||||||
Net income attributable to non-controlling interest | — | — | (14 | ) | — | (14 | ) | ||||||||||||
Net income attributable to ICE | $ | 598 | $ | 154 | $ | 620 | $ | (774 | ) | $ | 598 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Net income | $ | 598 | $ | 154 | $ | 634 | $ | (774 | ) | $ | 612 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | — | 1 | 18 | — | 19 | ||||||||||||||
Change in fair value of available-for-sale-securities | — | — | (39 | ) | — | (39 | ) | ||||||||||||
Employment benefit plan adjustments | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Total other comprehensive income (loss) | — | 1 | (23 | ) | — | (22 | ) | ||||||||||||
Comprehensive loss of subsidiaries | (22 | ) | (14 | ) | — | 36 | — | ||||||||||||
Comprehensive income | 576 | 141 | 611 | (738 | ) | 590 | |||||||||||||
Comprehensive income attributable to non-controlling interests | — | — | (14 | ) | — | (14 | ) | ||||||||||||
Comprehensive income attributable to ICE | $ | 576 | $ | 141 | $ | 597 | $ | (738 | ) | $ | 576 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Revenues: | |||||||||||||||||||
Transaction and clearing, net | $ | — | $ | — | $ | 747 | $ | — | $ | 747 | |||||||||
Data services | — | — | 205 | — | 205 | ||||||||||||||
Listings and other revenues | — | — | 144 | — | 144 | ||||||||||||||
Revenues | — | — | 1,096 | — | 1,096 | ||||||||||||||
Transaction-based expenses | — | — | 299 | — | 299 | ||||||||||||||
Revenues, less transaction-based expenses | — | — | 797 | — | 797 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Compensation and benefits | 1 | — | 143 | — | 144 | ||||||||||||||
Technology and communication | — | — | 47 | — | 47 | ||||||||||||||
Acquisition-related transaction and integration costs | — | — | 7 | — | 7 | ||||||||||||||
Selling, general, administrative and other | — | — | 76 | — | 76 | ||||||||||||||
Depreciation and amortization | — | — | 93 | — | 93 | ||||||||||||||
Operating expenses | 1 | — | 366 | — | 367 | ||||||||||||||
Operating income (loss) | (1 | ) | — | 431 | — | 430 | |||||||||||||
Intercompany interest on loans | (1 | ) | 9 | (8 | ) | — | — | ||||||||||||
Other income (expense), net | (26 | ) | 7 | (13 | ) | — | (32 | ) | |||||||||||
Total other income (expense), net | (27 | ) | 16 | (21 | ) | — | (32 | ) | |||||||||||
Income (loss) before income taxes | (28 | ) | 16 | 410 | — | 398 | |||||||||||||
Income tax expense (benefit) | (10 | ) | — | 119 | — | 109 | |||||||||||||
Equity earnings from subsidiaries | 301 | 71 | — | (372 | ) | — | |||||||||||||
Net income | $ | 283 | $ | 87 | $ | 291 | $ | (372 | ) | $ | 289 | ||||||||
Net income attributable to non-controlling interest | — | — | (6 | ) | — | (6 | ) | ||||||||||||
Net income attributable to ICE | $ | 283 | $ | 87 | $ | 285 | $ | (372 | ) | $ | 283 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Net income | $ | 283 | $ | 87 | $ | 291 | $ | (372 | ) | $ | 289 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation adjustments | — | — | 56 | — | 56 | ||||||||||||||
Change in fair value of available-for-sale-securities | — | — | 31 | — | 31 | ||||||||||||||
Employment benefit plan adjustments | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Total other comprehensive income | — | — | 85 | — | 85 | ||||||||||||||
Comprehensive income of subsidiaries | 85 | 13 | — | (98 | ) | — | |||||||||||||
Comprehensive income | 368 | 100 | 376 | (470 | ) | 374 | |||||||||||||
Comprehensive income attributable to non-controlling interests | — | — | (6 | ) | — | (6 | ) | ||||||||||||
Comprehensive income attributable to ICE | $ | 368 | $ | 100 | $ | 370 | $ | (470 | ) | $ | 368 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (40 | ) | $ | 59 | $ | 1,149 | $ | (65 | ) | $ | 1,103 | |||||||
Investing activities: | |||||||||||||||||||
Loans to subsidiaries | (91 | ) | (1,943 | ) | (1,554 | ) | 3,588 | — | |||||||||||
Capital expenditures and capitalized software development costs | — | — | (157 | ) | — | (157 | ) | ||||||||||||
Increase in restricted cash and investments | — | — | (75 | ) | — | (75 | ) | ||||||||||||
Other investing activities | — | — | (70 | ) | — | (70 | ) | ||||||||||||
Net cash used in investing activities | (91 | ) | (1,943 | ) | (1,856 | ) | 3,588 | (302 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Repayments of commercial paper, net | (780 | ) | (1 | ) | — | — | (781 | ) | |||||||||||
Intercompany borrowing | 1,152 | 1,885 | 551 | (3,588 | ) | — | |||||||||||||
Dividends to shareholders | (205 | ) | — | — | — | (205 | ) | ||||||||||||
Intercompany dividends | — | — | (65 | ) | 65 | — | |||||||||||||
Other financing activities | (35 | ) | — | (10 | ) | — | (45 | ) | |||||||||||
Net cash provided by (used in) financing activities | 132 | 1,884 | 476 | (3,523 | ) | (1,031 | ) | ||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | (7 | ) | — | (7 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 1 | — | (238 | ) | — | (237 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 1 | — | 626 | — | 627 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 2 | $ | — | $ | 388 | $ | — | $ | 390 |
ICE (Parent) | Subsidiary Guarantor - NYSE Holdings | Subsidiary Non-Guarantors | Consolidating Adjustments | Consolidated Total | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (25 | ) | $ | (38 | ) | $ | 845 | $ | (12 | ) | $ | 770 | ||||||
Investing activities: | |||||||||||||||||||
Loans to subsidiaries | — | (305 | ) | (801 | ) | 1,106 | — | ||||||||||||
Proceeds from term deposits and sales of available-for-sale investments | — | 1,084 | — | — | 1,084 | ||||||||||||||
Capital expenditures and capitalized software development costs | — | — | (136 | ) | — | (136 | ) | ||||||||||||
Decrease in restricted cash and investments | — | — | 11 | — | 11 | ||||||||||||||
Other investing activities | — | — | (60 | ) | — | (60 | ) | ||||||||||||
Net cash provided by (used in) investing activities | — | 779 | (986 | ) | 1,106 | 899 | |||||||||||||
Financing activities: | |||||||||||||||||||
Repayments of debt facilities and commercial paper, net | 111 | (1,029 | ) | — | — | (918 | ) | ||||||||||||
Intercompany borrowing | 495 | 283 | 328 | (1,106 | ) | — | |||||||||||||
Dividends to shareholders | (158 | ) | — | — | — | (158 | ) | ||||||||||||
Repurchases of common stock | (399 | ) | — | — | — | (399 | ) | ||||||||||||
Purchase of subsidiary shares from non-controlling interest | — | — | (128 | ) | — | (128 | ) | ||||||||||||
Other financing activities | (29 | ) | — | (15 | ) | 12 | (32 | ) | |||||||||||
Net cash provided by (used in) financing activities | 20 | (746 | ) | 185 | (1,094 | ) | (1,635 | ) | |||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | (8 | ) | — | (8 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (5 | ) | (5 | ) | 36 | — | 26 | ||||||||||||
Cash and cash equivalents, beginning of period | 6 | 5 | 641 | — | 652 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 1 | $ | — | $ | 677 | $ | — | $ | 678 |
12. | Segment Reporting |
Trading and Clearing Segment | Data and Listings Segment | Consolidated | |||||||||
Six Months Ended June 30, 2016: | |||||||||||
Revenues, less transaction-based expenses | $ | 1,101 | $ | 1,182 | $ | 2,283 | |||||
Operating expenses | 427 | 721 | 1,148 | ||||||||
Operating income | 674 | 461 | 1,135 | ||||||||
Six Months Ended June 30, 2015: | |||||||||||
Revenues, less transaction-based expenses | $ | 1,040 | $ | 607 | $ | 1,647 | |||||
Operating expenses | 445 | 310 | 755 | ||||||||
Operating income | 595 | 297 | 892 |
Trading and Clearing Segment | Data and Listings Segment | Consolidated | |||||||||
Three Months Ended June 30, 2016 | |||||||||||
Revenues, less transaction-based expenses | $ | 527 | $ | 602 | $ | 1,129 | |||||
Operating expenses | 214 | 364 | 578 | ||||||||
Operating income | 313 | 238 | 551 | ||||||||
Three Months Ended June 30, 2015 | |||||||||||
Revenues, less transaction-based expenses | $ | 491 | $ | 306 | $ | 797 | |||||
Operating expenses | 219 | 148 | 367 | ||||||||
Operating income | 272 | 158 | 430 |
13. | Earnings Per Common Share |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Basic: | |||||||||||||||
Net income attributable to Intercontinental Exchange, Inc. | $ | 726 | $ | 598 | $ | 357 | $ | 283 | |||||||
Weighted average common shares outstanding | 119 | 112 | 119 | 111 | |||||||||||
Basic earnings per common share | $ | 6.10 | $ | 5.37 | $ | 3.00 | $ | 2.55 | |||||||
Diluted: | |||||||||||||||
Weighted average common shares outstanding | 119 | 112 | 119 | 111 | |||||||||||
Effect of dilutive securities - stock options and restricted shares | 1 | — | 1 | 1 | |||||||||||
Diluted weighted average common shares outstanding | 120 | 112 | 120 | 112 | |||||||||||
Diluted earnings per common share | $ | 6.07 | $ | 5.34 | $ | 2.98 | $ | 2.54 |
14. | Subsequent Events |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
Revenues, less transaction-based expenses | $ | 2,283 | $ | 1,647 | 39 | % | $ | 1,129 | $ | 797 | 42 | % | |||||||||
Operating expenses | $ | 1,148 | $ | 755 | 52 | % | $ | 578 | $ | 367 | 58 | % | |||||||||
Adjusted operating expenses(1) | $ | 970 | $ | 664 | 46 | % | $ | 494 | $ | 328 | 51 | % | |||||||||
Operating income | $ | 1,135 | $ | 892 | 27 | % | $ | 551 | $ | 430 | 28 | % | |||||||||
Adjusted operating income(1) | $ | 1,313 | $ | 983 | 34 | % | $ | 635 | $ | 469 | 35 | % | |||||||||
Operating margin | 50 | % | 54 | % | (4 pts) | 49 | % | 54 | % | (5 pts) | |||||||||||
Adjusted operating margin(1) | 58 | % | 60 | % | (2 pts) | 56 | % | 59 | % | (3 pts) | |||||||||||
Other expense, net | $ | 79 | $ | 53 | 47 | % | $ | 35 | $ | 32 | 9 | % | |||||||||
Income tax expense | $ | 316 | $ | 227 | 40 | % | $ | 153 | $ | 109 | 41 | % | |||||||||
Effective tax rate | 30 | % | 27 | % | 3 pts | 30 | % | 27 | % | 3 pts | |||||||||||
Net income attributable to ICE | $ | 726 | $ | 598 | 21 | % | $ | 357 | $ | 283 | 26 | % | |||||||||
Adjusted net income attributable to ICE(1) | $ | 852 | $ | 667 | 28 | % | $ | 411 | $ | 323 | 27 | % | |||||||||
Diluted earnings per share attributable to ICE common shareholders | $ | 6.07 | $ | 5.34 | 14 | % | $ | 2.98 | $ | 2.54 | 17 | % | |||||||||
Adjusted diluted earnings per share attributable to ICE common shareholders(1) | $ | 7.12 | $ | 5.96 | 19 | % | $ | 3.43 | $ | 2.90 | 18 | % | |||||||||
Cash flows from operating activities | $ | 1,103 | $ | 770 | 43 | % |
• | Revenues, less transaction-based expenses, increased $636 million and $332 million for the six months and three months ended June 30, 2016, respectively, from the comparable periods in 2015, primarily due to our acquisitions of Interactive Data and Trayport, and to a lesser extent, revenue increases in our exchange-related data services, cash equities, Brent crude and agricultural transaction and clearing. We recognized $525 million and $265 million in Interactive Data and Trayport data services revenues for the six months and three months ended June 30, 2016, respectively. See “- Trading and Clearing Segment” and “Data and Listings Segment” below. Partially offsetting the revenue increases were unfavorable foreign exchange effects of $15 million and $6 million arising from the strengthening U.S. dollar (primarily impacting revenues billed in pounds sterling) for the six months and three months ended June 30, 2016, respectively, from the comparable periods in 2015. See Item 3 “Quantitative and Qualitative Disclosures About Market Risk - Foreign Currency Exchange Rate Risk” below for additional information on the impact of currency fluctuations. |
• | Operating expenses increased $393 million and $211 million for the six months and three months ended June 30, 2016, respectively, from the comparable periods in 2015, primarily due to $428 million and $210 million in operating expenses relating to Interactive Data and Trayport for the six months and three months ended June 30, 2016, respectively. Offsetting the Interactive Data and Trayport operating expenses were decreases in operating expenses of $35 million for the six months ended June 30, 2016 from the comparable period in 2015. See “- Consolidated Operating Expenses” below. Also partially offsetting the operating expense increases were favorable foreign exchange effects of $10 million and $5 million arising from the strengthening U.S. dollar (primarily impacting operating expenses incurred in pounds sterling) for the six months and three months ended June 30, 2016, respectively, from the comparable periods in 2015. |
• | Other expense, net increased for the six months and three months ended June 30, 2016 from the comparable periods in 2015, primarily due to the additional interest expense we recognized on the new debt we incurred to finance the Interactive Data acquisition in December 2015. See “- Debt” below. |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Brent crude futures and options contracts | $ | 154 | $ | 134 | 14 | % | $ | 72 | $ | 60 | 19 | % | |||||||||
Other oil futures and options contracts | 56 | 59 | (3 | ) | 27 | 26 | 7 | ||||||||||||||
Gasoil futures and options contracts | 48 | 45 | 4 | 24 | 21 | 12 | |||||||||||||||
Natural gas futures and options contracts | 108 | 101 | 6 | 51 | 43 | 18 | |||||||||||||||
Power futures and options contracts | 44 | 42 | 8 | 23 | 21 | 13 | |||||||||||||||
Emissions and other energy futures and options contracts | 32 | 29 | 9 | 15 | 12 | 21 | |||||||||||||||
Sugar futures and options contracts | 66 | 57 | 16 | 34 | 30 | 13 | |||||||||||||||
Other agricultural and metals futures and options contracts | 63 | 53 | 20 | 33 | 27 | 24 | |||||||||||||||
Interest rates futures and options contracts | 100 | 106 | (5 | ) | 44 | 50 | (11 | ) | |||||||||||||
Other financial futures and options contracts | 74 | 65 | 12 | 36 | 32 | 12 | |||||||||||||||
Credit default swaps | 74 | 77 | (3 | ) | 34 | 34 | 2 | ||||||||||||||
Cash equities and equity options | 944 | 791 | 19 | 454 | 379 | 20 | |||||||||||||||
Other transactions | 26 | 24 | 9 | 13 | 12 | 5 | |||||||||||||||
Transaction and clearing, net | 1,789 | 1,583 | 13 | 860 | 747 | 15 | |||||||||||||||
Other revenues | 87 | 86 | — | 42 | 43 | (5 | ) | ||||||||||||||
Revenues | 1,876 | 1,669 | 12 | 902 | 790 | 14 | |||||||||||||||
Transaction-based expenses | 775 | 629 | 23 | 375 | 299 | 25 | |||||||||||||||
Revenues, less transaction-based expenses | 1,101 | 1,040 | 6 | 527 | 491 | 7 | |||||||||||||||
Other operating expenses | 312 | 327 | (4 | ) | 154 | 161 | (4 | ) | |||||||||||||
Acquisition-related transaction and integration costs | 7 | 10 | (32 | ) | 6 | 2 | 168 | ||||||||||||||
Depreciation and amortization | 108 | 108 | — | 54 | 56 | (4 | ) | ||||||||||||||
Operating expenses | 427 | 445 | (4 | ) | 214 | 219 | (2 | ) | |||||||||||||
Operating income | $ | 674 | $ | 595 | 13 | % | $ | 313 | $ | 272 | 15 | % |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
Number of contracts traded: | |||||||||||||||||||||
Brent crude futures and options | 116 | 100 | 15 | % | 55 | 46 | 19 | % | |||||||||||||
Other oil futures and options | 46 | 44 | 5 | 22 | 20 | 8 | |||||||||||||||
Gasoil futures and options | 32 | 31 | 6 | 16 | 14 | 13 | |||||||||||||||
Natural gas futures and options | 111 | 113 | (2 | ) | 52 | 49 | 7 | ||||||||||||||
Power futures and options | 15 | 15 | (1 | ) | 8 | 7 | 5 | ||||||||||||||
Emissions and other energy futures and options | 5 | 4 | 19 | 2 | 2 | 35 | |||||||||||||||
Sugar futures and options | 26 | 23 | 14 | 13 | 12 | 12 | |||||||||||||||
Other agricultural and metals futures and options | 31 | 24 | 26 | 16 | 12 | 29 | |||||||||||||||
Interest rates futures and options | 208 | 184 | 13 | 91 | 88 | 3 | |||||||||||||||
Other financial futures and options | 63 | 55 | 14 | 30 | 27 | 13 | |||||||||||||||
Total | 653 | 593 | 10 | % | 305 | 277 | 10 | % | |||||||||||||
Rate per contract: | |||||||||||||||||||||
Energy futures and options rate per contract | $ | 1.36 | $ | 1.33 | 2 | % | $ | 1.37 | $ | 1.32 | 4 | % | |||||||||
Agricultural and metals futures and options rate per contract | $ | 2.31 | $ | 2.36 | (2 | )% | $ | 2.32 | $ | 2.38 | (3 | )% | |||||||||
Financial futures and options rate per contract | $ | 0.61 | $ | 0.68 | (10 | )% | $ | 0.63 | $ | 0.67 | (6 | )% |
As of June 30, | ||||||||
2016 | 2015 | Change | ||||||
Open interest — in millions of contracts: | ||||||||
Brent crude futures and options | 4 | 4 | 10 | % | ||||
Other oil futures and options | 5 | 5 | (4 | ) | ||||
Gasoil futures and options | 1 | 1 | (16 | ) | ||||
Natural gas futures and options | 18 | 19 | (6 | ) | ||||
Power futures and options | 8 | 8 | (2 | ) | ||||
Emissions and other energy futures and options | 2 | 2 | 2 | |||||
Sugar futures and options | 2 | 1 | 14 | |||||
Other agricultural and metals futures and options | 2 | 2 | 3 | |||||
Interest rates futures and options | 17 | 15 | 13 | |||||
Other financial futures and options | 5 | 5 | 10 | |||||
Total | 64 | 62 | 2 | % |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||
Cash equities (shares in millions): | |||||||||||||||||
NYSE listed (tape A) issues: | |||||||||||||||||
Handled volume | 1,386 | 1,152 | 20 | % | 1,295 | 1,122 | 15 | % | |||||||||
Matched volume | 1,370 | 1,133 | 21 | % | 1,282 | 1,106 | 16 | % | |||||||||
Total NYSE listed consolidated volume | 4,220 | 3,530 | 20 | % | 3,881 | 3,384 | 15 | % | |||||||||
Share of total matched consolidated volume | 32.5 | % | 32.1 | % | 0.4 pts | 33.0 | % | 32.7 | % | 0.4 pts | |||||||
NYSE Arca, NYSE MKT and regional listed (tape B) issues: | |||||||||||||||||
Handled volume | 408 | 293 | 39 | % | 377 | 264 | 43 | % | |||||||||
Matched volume | 394 | 279 | 41 | % | 365 | 251 | 46 | % | |||||||||
Total NYSE Arca, NYSE MKT and regional listed consolidated volume | 1,679 | 1,265 | 33 | % | 1,494 | 1,177 | 27 | % | |||||||||
Share of total matched consolidated volume | 23.4 | % | 22.0 | % | 1.4 pts | 24.5 | % | 21.3 | % | 3.2 pts | |||||||
Nasdaq listed (tape C) issues: | |||||||||||||||||
Handled volume | 213 | 212 | — | % | 195 | 211 | (7 | )% | |||||||||
Matched volume | 202 | 200 | 1 | % | 186 | 199 | (7 | )% | |||||||||
Total Nasdaq listed consolidated volume | 2,001 | 1,865 | 7 | % | 1,894 | 1,829 | 4 | % | |||||||||
Share of total matched consolidated volume | 10.1 | % | 10.7 | % | (0.6 pts) | 9.8 | % | 10.9 | % | (1.1 pts) | |||||||
Total cash handled volume | 2,006 | 1,657 | 21 | % | 1,867 | 1,597 | 17 | % | |||||||||
Total cash market share matched | 24.9 | % | 24.2 | % | 0.7 pts | 25.2 | % | 24.3 | % | 0.9 pts | |||||||
Equity options (contracts in thousands): | |||||||||||||||||
NYSE equity options volume | 2,826 | 2,629 | 8 | % | 2,649 | 2,544 | 4 | % | |||||||||
Total equity options volume | 14,669 | 14,341 | 2 | % | 14,087 | 13,876 | 2 | % | |||||||||
NYSE share of total equity options | 19.3 | % | 18.3 | % | 0.9 pts | 18.8 | % | 18.3 | % | 0.5 pts | |||||||
Revenue capture or rate per contract: | |||||||||||||||||
Cash equities revenue capture (per 100 shares) | $0.047 | $0.050 | (7 | )% | $0.046 | $0.051 | (11 | )% | |||||||||
Equity options rate per contract | $0.148 | $0.180 | (18 | )% | $0.148 | $0.174 | (15 | )% |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Pricing and analytics | $ | 415 | $ | 52 | 695 | % | $ | 211 | $ | 27 | 681 | % | |||||||||
Desktops and connectivity | 292 | 116 | 152 | 147 | 58 | 154 | |||||||||||||||
Exchange data | 267 | 237 | 13 | 139 | 120 | 17 | |||||||||||||||
Data services | 974 | 405 | 141 | 497 | 205 | 143 | |||||||||||||||
Listings | 208 | 202 | 3 | 105 | 101 | 3 | |||||||||||||||
Revenues | 1,182 | 607 | 95 | 602 | 306 | 97 | |||||||||||||||
Other operating expenses | 500 | 220 | 126 | 258 | 106 | 142 | |||||||||||||||
Acquisition-related transaction and integration costs | 40 | 16 | 165 | 14 | 5 | 242 | |||||||||||||||
Depreciation and amortization | 181 | 74 | 146 | 92 | 37 | 152 | |||||||||||||||
Operating expenses | 721 | 310 | 133 | 364 | 148 | 147 | |||||||||||||||
Operating income | $ | 461 | $ | 297 | 55 | % | $ | 238 | $ | 158 | 50 | % |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
Compensation and benefits | $ | 472 | $ | 295 | 60 | % | $ | 236 | $ | 144 | 64 | % | |||||||||
Technology and communication | 184 | 98 | 88 | 92 | 47 | 94 | |||||||||||||||
Professional services | 69 | 65 | 5 | 37 | 32 | 12 | |||||||||||||||
Rent and occupancy | 35 | 31 | 15 | 17 | 15 | 18 | |||||||||||||||
Acquisition-related transaction and integration costs | 47 | 26 | 83 | 20 | 7 | 215 | |||||||||||||||
Selling, general and administrative | 52 | 58 | (11 | ) | 30 | 29 | 3 | ||||||||||||||
Depreciation and amortization | 289 | 182 | 59 | 146 | 93 | 58 | |||||||||||||||
Total operating expenses | $ | 1,148 | $ | 755 | 52 | % | $ | 578 | $ | 367 | 58 | % |
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense | $ | (90 | ) | $ | (46 | ) | 96 | % | $ | (44 | ) | $ | (23 | ) | 91 | % | |||||
Other income (expense), net | 11 | (7 | ) | n/a | 9 | (9 | ) | n/a | |||||||||||||
Total other expense, net | $ | (79 | ) | $ | (53 | ) | 47 | % | $ | (35 | ) | $ | (32 | ) | 9 | % | |||||
Net income from continuing operations attributable to non-controlling interest | $ | (14 | ) | $ | (14 | ) | — | % | $ | (6 | ) | $ | (6 | ) | (7 | )% |
Three Months Ended, | |||||||||||||||||||
June 30, 2016 (1) | March 31, 2016 (1) | December 31, 2015 (1) | September 30, 2015 | June 30, 2015 | |||||||||||||||
Revenues: | |||||||||||||||||||
Brent crude futures and options contracts | $ | 72 | $ | 82 | $ | 64 | $ | 65 | $ | 60 | |||||||||
Other oil futures and options contracts | 27 | 29 | 26 | 27 | 26 | ||||||||||||||
Gasoil futures and options contracts | 24 | 24 | 24 | 24 | 21 | ||||||||||||||
Natural gas futures and options contracts | 51 | 57 | 52 | 46 | 43 | ||||||||||||||
Power futures and options contracts | 23 | 21 | 20 | 17 | 21 | ||||||||||||||
Emissions and other energy futures and options contracts | 15 | 17 | 16 | 13 | 12 | ||||||||||||||
Sugar futures and options contracts | 34 | 32 | 23 | 30 | 30 | ||||||||||||||
Other agricultural and metals futures and options contracts | 33 | 30 | 25 | 23 | 27 | ||||||||||||||
Interest rates futures and options contracts | 44 | 56 | 57 | 43 | 50 | ||||||||||||||
Other financial futures and options contracts | 36 | 38 | 33 | 38 | 32 | ||||||||||||||
Credit default swaps | 34 | 40 | 34 | 38 | 34 | ||||||||||||||
Cash equities and equity options | 454 | 490 | 428 | 457 | 379 | ||||||||||||||
Other transactions | 13 | 13 | 12 | 10 | 12 | ||||||||||||||
Total transaction and clearing, net | 860 | 929 | 814 | 831 | 747 | ||||||||||||||
Pricing and analytics | 211 | 204 | 63 | 36 | 27 | ||||||||||||||
Desktops and connectivity | 147 | 145 | 76 | 58 | 58 | ||||||||||||||
Exchange data | 139 | 128 | 118 | 115 | 120 | ||||||||||||||
Total data services | 497 | 477 | 257 | 209 | 205 | ||||||||||||||
Listings | 105 | 103 | 102 | 101 | 101 | ||||||||||||||
Other revenues | 42 | 45 | 46 | 46 | 43 | ||||||||||||||
Revenues | 1,504 | 1,554 | 1,219 | 1,187 | 1,096 | ||||||||||||||
Transaction-based expenses | 375 | 400 | 344 | 371 | 299 | ||||||||||||||
Revenues, less transaction-based expenses | 1,129 | 1,154 | 875 | 816 | 797 | ||||||||||||||
Compensation and benefits | 236 | 236 | 166 | 150 | 144 | ||||||||||||||
Technology and communication | 92 | 92 | 56 | 49 | 47 | ||||||||||||||
Professional services | 37 | 32 | 37 | 37 | 32 | ||||||||||||||
Rent and occupancy | 17 | 18 | 12 | 14 | 15 | ||||||||||||||
Acquisition-related transaction and integration costs | 20 | 27 | 54 | 8 | 7 | ||||||||||||||
Selling, general and administrative | 30 | 22 | 34 | 24 | 29 | ||||||||||||||
Depreciation and amortization | 146 | 143 | 98 | 94 | 93 | ||||||||||||||
Operating expenses | 578 | 570 | 457 | 376 | 367 | ||||||||||||||
Operating income | 551 | 584 | 418 | 440 | 430 | ||||||||||||||
Other expense, net (2) | (35 | ) | (44 | ) | (27 | ) | (17 | ) | (32 | ) | |||||||||
Income tax expense (3) | 153 | 163 | 18 | 113 | 109 | ||||||||||||||
Net income | $ | 363 | $ | 377 | $ | 373 | $ | 310 | $ | 289 | |||||||||
Net income attributable to non-controlling interest | (6 | ) | (8 | ) | (3 | ) | (4 | ) | (6 | ) | |||||||||
Net income attributable to ICE | $ | 357 | $ | 369 | $ | 370 | $ | 306 | $ | 283 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Net cash provided by (used in): | |||||||
Operating activities | $ | 1,103 | $ | 770 | |||
Investing activities | (302 | ) | 899 | ||||
Financing activities | (1,031 | ) | (1,635 | ) | |||
Effect of exchange rate changes | (7 | ) | (8 | ) | |||
Net increase (decrease) in cash and cash equivalents | $ | (237 | ) | $ | 26 |
As of June 30, 2016 | As of December 31, 2015 | ||||||
Debt: | |||||||
Commercial Paper | $ | 1,811 | $ | 2,591 | |||
Short-term debt | 1,811 | 2,591 | |||||
NYSE USD Notes (2.00% senior unsecured notes due October 5, 2017) | 852 | 852 | |||||
2018 Senior Notes (2.50% senior unsecured notes due October 15, 2018) | 597 | 597 | |||||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020) | 1,240 | 1,239 | |||||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023) | 789 | 789 | |||||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025) | 1,241 | 1,240 | |||||
Long-term debt | 4,719 | 4,717 | |||||
Total debt | $ | 6,530 | $ | 7,308 |
ICE Clear Credit: | $400 million in Committed Repo to finance U.S. dollar and euro sovereign debt deposits, €500 million in Committed Repo to finance euro sovereign debt deposits, and €1.0 billion in Committed F/X Facilities to finance euro payment obligations with U.S. dollar deposits. |
Trading and Clearing Segment | Data and Listings Segment | Consolidated | |||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Revenues, less transaction-based expenses | $ | 1,101 | $ | 1,040 | $ | 1,182 | $ | 607 | $ | 2,283 | $ | 1,647 | |||||||||||
Operating expenses | $ | 427 | $ | 445 | $ | 721 | $ | 310 | $ | 1,148 | $ | 755 | |||||||||||
Less: NYSE and Interactive Data transaction and integration costs | 1 | 10 | 23 | 15 | 24 | 25 | |||||||||||||||||
Less: Amortization of acquisition-related intangibles | 38 | 41 | 116 | 25 | 154 | 66 | |||||||||||||||||
Adjusted operating expenses | $ | 388 | $ | 394 | $ | 582 | $ | 270 | $ | 970 | $ | 664 | |||||||||||
Operating income | $ | 674 | $ | 595 | $ | 461 | $ | 297 | $ | 1,135 | $ | 892 | |||||||||||
Adjusted operating income | $ | 713 | $ | 646 | $ | 600 | $ | 337 | $ | 1,313 | $ | 983 | |||||||||||
Operating margin | 61 | % | 57 | % | 39 | % | 49 | % | 50 | % | 54 | % | |||||||||||
Adjusted operating margin | 65 | % | 62 | % | 51 | % | 56 | % | 58 | % | 60 | % | |||||||||||
Net income attributable to ICE common shareholders | $ | 726 | $ | 598 | |||||||||||||||||||
Add: NYSE and Interactive Data transaction and integration costs | 24 | 25 | |||||||||||||||||||||
Add: Amortization of acquisition-related intangibles | 154 | 66 | |||||||||||||||||||||
Add: Litigation settlements and accruals | — | 19 | |||||||||||||||||||||
Less: Income tax effect for the above items | (65 | ) | (34 | ) | |||||||||||||||||||
Add/(Less): Deferred tax adjustment on acquisition-related intangibles | 13 | (14 | ) | ||||||||||||||||||||
Add: Other tax adjustments | — | 7 | |||||||||||||||||||||
Adjusted net income attributable to ICE common shareholders | $ | 852 | $ | 667 | |||||||||||||||||||
Basic earnings per share attributable to ICE common shareholders | $ | 6.10 | $ | 5.37 | |||||||||||||||||||
Diluted earnings per share attributable to ICE common shareholders | $ | 6.07 | $ | 5.34 | |||||||||||||||||||
Adjusted basic earnings per share attributable to ICE common shareholders | $ | 7.16 | $ | 5.98 | |||||||||||||||||||
Adjusted diluted earnings per share attributable to ICE common shareholders | $ | 7.12 | $ | 5.96 |
Trading and Clearing Segment | Data and Listings Segment | Consolidated | |||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Revenues, less transaction-based expenses | $ | 527 | $ | 491 | $ | 602 | $ | 306 | $ | 1,129 | $ | 797 | |||||||||||
Operating expenses | $ | 214 | $ | 219 | $ | 364 | $ | 148 | $ | 578 | $ | 367 | |||||||||||
Less: NYSE and Interactive Data transaction and integration costs | — | 2 | 7 | 4 | 7 | 6 | |||||||||||||||||
Less: Amortization of acquisition-related intangibles | 18 | 21 | 59 | 12 | 77 | 33 | |||||||||||||||||
Adjusted operating expenses | $ | 196 | $ | 196 | $ | 298 | $ | 132 | $ | 494 | $ | 328 | |||||||||||
Operating income | $ | 313 | $ | 272 | $ | 238 | $ | 158 | $ | 551 | $ | 430 | |||||||||||
Adjusted operating income | $ | 331 | $ | 295 | $ | 304 | $ | 174 | $ | 635 | $ | 469 | |||||||||||
Operating margin | 59 | % | 55 | % | 40 | % | 52 | % | 49 | % | 54 | % | |||||||||||
Adjusted operating margin | 63 | % | 60 | % | 50 | % | 57 | % | 56 | % | 59 | % | |||||||||||
Net income attributable to ICE common shareholders | $ | 357 | $ | 283 | |||||||||||||||||||
Add: NYSE and Interactive Data transaction and integration costs | 7 | 6 | |||||||||||||||||||||
Add: Amortization of acquisition-related intangibles | 77 | 33 | |||||||||||||||||||||
Add: Litigation settlements and accruals | — | 19 | |||||||||||||||||||||
Less: Income tax effect for the above items | (30 | ) | (15 | ) | |||||||||||||||||||
Less: Deferred tax adjustment on acquisition-related intangibles | — | (10 | ) | ||||||||||||||||||||
Add: Other tax adjustments | — | 7 | |||||||||||||||||||||
Adjusted net income attributable to ICE common shareholders | $ | 411 | $ | 323 | |||||||||||||||||||
Basic earnings per share attributable to ICE common shareholders | $ | 3.00 | $ | 2.55 | |||||||||||||||||||
Diluted earnings per share attributable to ICE common shareholders | $ | 2.98 | $ | 2.54 | |||||||||||||||||||
Adjusted basic earnings per share attributable to ICE common shareholders | $ | 3.45 | $ | 2.91 | |||||||||||||||||||
Adjusted diluted earnings per share attributable to ICE common shareholders | $ | 3.43 | $ | 2.90 |
Six Months Ended June 30, 2016 | Three Months Ended June 30, 2016 | ||||||||||||||
Pound sterling | Euro | Pound sterling | Euro | ||||||||||||
Average exchange rate to the U.S. dollar in the current year period | $ | 1.4417 | $ | 1.1170 | $ | 1.4383 | $ | 1.1313 | |||||||
Average exchange rate to the U.S. dollar in the same period in the prior year | $ | 1.5236 | $ | 1.1186 | $ | 1.5301 | $ | 1.1073 | |||||||
Average exchange rate increase (decrease) | (5 | )% | — | % | (6 | )% | 2 | % | |||||||
Foreign denominated percentage of: | |||||||||||||||
Revenues, less transaction-based expenses | 11 | % | 5 | % | 11 | % | 5 | % | |||||||
Operating expenses | 15 | % | 4 | % | 16 | % | 4 | % | |||||||
Operating income | 7 | % | 7 | % | 5 | % | 7 | % | |||||||
Impact of the currency fluctuations (1) on: | |||||||||||||||
Revenues, less transaction-based expenses | $ | (15 | ) | $ | — | $ | (8 | ) | $ | 2 | |||||
Operating expenses | $ | (10 | ) | $ | — | $ | (6 | ) | $ | 1 | |||||
Operating income | $ | (5 | ) | $ | — | $ | (2 | ) | $ | 1 |
As of June 30, 2016 | |||||||
Position in pounds sterling | Position in euros | ||||||
Assets | £ | 1,346 | € | 220 | |||
of which goodwill represents | 522 | 43 | |||||
Liabilities | 146 | 92 | |||||
Net currency position | £ | 1,200 | € | 128 | |||
Impact on consolidated equity of a 10% decrease in foreign currency exchange rates | $ | 160 | $ | 14 |
Exhibit Number | Description of Document | |
3.1 | — | Sixth Amended and Restated Bylaws of Intercontinental Exchange, Inc., effective May 6, 2016 (incorporated by reference to Exhibit 3.1 to Intercontinental Exchange, Inc.’s Current Report on Form 8-K filed with the SEC on May 11, 2016, File No. 001-36198). |
10.1 | — | Form of Agreement Relating to Noncompetition and Other Covenants signed by each of the non-employee directors and by Intercontinental Exchange, Inc. (incorporated by reference to Exhibit 10.01 to Intercontinental Exchange, Inc.’s Current Report on Form 8-K filed with the SEC on May 17, 2016, File No. 001-36198). |
31.1 | — | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. |
31.2 | — | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. |
32.1 | — | Section 1350 Certification of Chief Executive Officer. |
32.2 | — | Section 1350 Certification of Chief Financial Officer. |
101 | — | The following materials from Intercontinental Exchange, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, Accumulated Other Comprehensive Loss and Redeemable Non-Controlling Interest (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text.* |
* | As provided in Rule 406T of Regulation S-T, this information is “furnished” and not “filed” for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. Such exhibit will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934 unless Intercontinental Exchange, Inc. specifically incorporates it by reference. |
Intercontinental Exchange, Inc. (Registrant) | |||
Date: August 3, 2016 | By: | /s/ Scott A. Hill | |
Scott A. Hill | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Intercontinental Exchange, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Jeffrey C. Sprecher |
Jeffrey C. Sprecher |
Chairman of the Board and |
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Intercontinental Exchange, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Scott A. Hill |
Scott A. Hill |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Jeffrey C. Sprecher |
Jeffrey C. Sprecher |
Chairman of the Board and |
Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Scott A. Hill |
Scott A. Hill |
Chief Financial Officer |
Document and Entity Information Document - shares |
6 Months Ended | |
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Jun. 30, 2016 |
Aug. 01, 2016 |
|
Document Information [Abstract] | ||
Entity Registrant name | INTERCONTINENTAL EXCHANGE, INC. | |
Entity Central Index Key | 0001571949 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 119,133,837 |
Consolidated Balance Sheets Consolidated Balance Sheets Parenthetical - USD ($) shares in Thousands, $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 0 | $ 2 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 100,000 | 100,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000 | 500,000 |
Common Stock, Shares, Issued | 126,000 | 126,000 |
Common Stock, Shares, Outstanding | 119,000 | 119,000 |
Treasury Stock, Shares | 7,000 | 7,000 |
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 363 | $ 289 | $ 740 | $ 612 | $ 1,295 |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments, net of tax (expense) benefit of $1 and $3 for the six months ended June 30, 2016 and 2015, respectively, and ($1) and ($1) for the three months ended June 30, 2016 and 2015, respectively | (125) | 56 | (199) | 19 | |
Change in fair value of available-for-sale securities | 75 | 31 | 129 | (39) | |
Comprehensive income | 313 | 374 | 670 | 590 | |
Comprehensive income attributable to non-controlling interest | (6) | (6) | (14) | (14) | |
Comprehensive income attributable to IntercontinentalExchange Group, Inc. | $ 307 | $ 368 | $ 656 | $ 576 |
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
6 Months Ended | |
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Jun. 30, 2016 |
Jun. 30, 2015 |
|
Foreign currency translation adjustments, Tax | $ 0 | $ 3 |
Income tax expense | $ (316) | (227) |
Net Investment Hedging [Member] | ||
Income tax expense | $ 0 |
Description of Business |
6 Months Ended |
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Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business We are a leading global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity and financial markets. We operate regulated marketplaces for trading, listing and clearing a broad array of derivatives and securities contracts across major asset classes, including energy and agricultural commodities, interest rates, equities, equity derivatives, exchange traded funds, credit derivatives, bonds and currencies. We offer end-to-end market data services to support the trading, investment, risk management and connectivity needs of customers across virtually all asset classes. Our exchanges include futures exchanges in the United States, or U.S., United Kingdom, or U.K., Continental Europe, Canada and Singapore and cash equities exchanges and equity options exchanges in the U.S. We also operate over-the-counter, or OTC, markets for physical energy and credit default swaps, or CDS, trade execution. To serve global derivatives markets, we operate central counterparty clearing houses in the U.S., U.K., Continental Europe, Canada and Singapore (Note 9). We offer a range of data and connectivity services to customers in global financial and commodity markets, including fixed income pricing and reference data, analytics, feeds, desktops and connectivity solutions. Through our markets, clearing houses, listings and data services, we provide end-to-end solutions for our customers through liquid markets, benchmark products, access to capital markets, information, and a range of related services to support their ability to manage risk and raise capital. |
Summary of Significant Accounting Policies |
6 Months Ended | ||||
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Jun. 30, 2016 | |||||
Accounting Policies [Abstract] | |||||
Summary of Significant Accounting Policies |
Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with U.S. generally accepted accounting principles, or 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 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, 2015. 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. These adjustments are of a normal recurring nature. Preparing financial statements requires us to make certain estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, actual results may be different from these estimates. The results of operations for the six months and three months ended June 30, 2016 are not necessarily indicative of the results to be expected for any future period or the full fiscal year. The accompanying unaudited consolidated financial statements include the accounts of us and our wholly-owned and controlled subsidiaries. All intercompany balances and transactions between us and our wholly-owned and controlled subsidiaries have been eliminated in the consolidation. For those 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. In instances where outside stockholders’ hold an option to require us to repurchase the outside stockholders' interest, these interests are shown as redeemable non-controlling interests. New and Recently Adopted Accounting Pronouncements In January 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. ASU 2016-01 provides updated guidance for the recognition, measurement, presentation, and disclosure of certain financial assets and liabilities, including the requirement that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. On the adoption of ASU 2016-01, changes in the fair value of our equity investment in Cetip, S.A., or Cetip, will no longer be reflected in accumulated other comprehensive income but will be recognized in net income. As of June 30, 2016, our investment in Cetip included an accumulated unrealized gain of $103 million (Note 10). During the six months and three months ended June 30, 2016, the change in the fair value of the Cetip investment was an increase of $128 million and $75 million, respectively. Once adopted, such fair value changes will be reported as other income (expense) under ASU 2016-01. We are currently evaluating this guidance to determine any additional potential impact on our consolidated financial statements upon adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases, or ASU 2016-02. ASU 2016-02 requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. A lessee should recognize in its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating this guidance to determine the potential impact on our consolidated financial statements and whether we will adopt this guidance early. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, or ASU 2016-09. ASU 2016-09 provides updated guidance for the recognition, measurement, presentation, and disclosure of certain components of stock compensation. The guidance includes the recognition of all excess tax benefits/deficiencies in the statement of income and classification as operating activities within the statement of cash flows, as well as the option to account for forfeitures based on awards expected to vest or as they occur. ASU 2016-09 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We decided to adopt ASU 2016-09 early as of January 1, 2016 on a prospective basis. As a result, for the six months and three months ended June 30, 2016, we recorded $12 million and $1 million, respectively, in excess tax benefits within our consolidated statements of income (Note 8). No other terms of the adopted guidance resulted in any significant impact on our consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s financial statement presentation. For the six months and three months ended June 30, 2015, we reclassified $47 million and $23 million, respectively, of transaction based expenses in transaction and clearing revenues, net to transaction based expenses for consistency of how we report our cash equities markets. The amounts reclassified to transaction based expenses relate to equity options markets. For the six months and three months ended June 30, 2015, we also reclassified $27 million and $14 million, respectively, in connectivity fees from other revenues to data services revenues. |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following is a summary of the activity in the goodwill balance for the six months ended June 30, 2016 (in millions):
The following is a summary of the activity in the other intangible assets balance for the six months ended June 30, 2016 (in millions):
The foreign currency translation adjustments in the tables above resulted from a portion of our goodwill and other intangible assets being held at our U.K., Continental European and Canadian subsidiaries, some of whose functional currencies are not the U.S. dollar. The foreign currency translation decrease for the six months ended June 30, 2016 is primarily due to certain of our goodwill and intangible assets being recorded in pounds sterling, which decreased in value due to the weakening pound sterling exchange rate following the U.K. referendum vote in late June 2016 to leave the European Union. The changes in other activity, net in the tables above primarily relate to adjustments to the fair value of the net tangible and identifiable intangible assets and liabilities relating to the Interactive Data acquisition, with a corresponding adjustment to goodwill (Note 3). We did not recognize any impairment losses on goodwill or other intangible assets during the six months and three months ended June 30, 2016 and 2015. |
Deferred Revenue Deferred Revenue |
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Deferred Revenue Disclosure [Text Block] | Deferred Revenue Deferred revenue represents cash received that is yet to be recognized as revenue. Total deferred revenue was $442 million as of June 30, 2016, including $330 million in current deferred revenue and $112 million in non-current deferred revenue. The changes in our deferred revenue during the six months ended June 30, 2016 are as follows (in millions):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our total debt, including short-term and long-term debt, consisted of the following as of June 30, 2016 and December 31, 2015 (in millions):
Credit Facility We have entered into a $3.0 billion senior unsecured revolving credit facility, or the Credit Facility, with a maturity date of November 13, 2020. The Credit Facility includes an option for us to propose an increase in the aggregate amount available for borrowing by up to $1.0 billion, subject to the consent of the lenders funding the increase and certain other conditions. On November 13, 2015, we utilized this option to increase the amount of the Credit Facility to $3.4 billion. The commitments under the Credit Facility will automatically reduce to $2.95 billion on April 3, 2019. No amounts were outstanding under the Credit Facility as of June 30, 2016. Of the $3.4 billion that is currently available for borrowing under the Credit Facility, $1.8 billion is required to back-stop the amount outstanding under our Commercial Paper Program as of June 30, 2016. The amount required to back-stop the amounts outstanding under the Commercial Paper Program will fluctuate as we increase or decrease our commercial paper borrowings. The remaining $1.6 billion as of June 30, 2016 is available to us to use for working capital and general corporate purposes including, but not limited to, acting as a back-stop to the amounts outstanding under the Commercial Paper Program. 364 Day Facility In November 2015, we entered into a $500 million 364 day senior unsecured revolving credit facility, or the 364 Day Facility. The amounts available under the 364 Day Facility are available for use by us for working capital and general corporate purposes, but specifically excluding any use to back-stop amounts issued under the Commercial Paper Program. The commitments under the 364 Day Credit Facility were reduced to $375 million on May 13, 2016 and will be automatically reduced to $250 million on August 13, 2016. No amounts were outstanding under the 364 Day Facility as of June 30, 2016. Commercial Paper Program We have entered into a U.S. dollar commercial paper program, or the Commercial Paper Program. Our Commercial Paper Program is currently backed by the borrowing capacity available under the Credit Facility, equal to the amount of the commercial paper that is issued and outstanding at any given point in time. The effective interest rate of commercial paper issuances does not materially differ from short term interest rates (such as USD LIBOR). The fluctuation of these rates due to market conditions may impact our interest expense. Commercial paper notes of $1.8 billion with original maturities ranging from 1 to 89 days were outstanding as of June 30, 2016 under our Commercial Paper Program. As of June 30, 2016, the weighted average interest rate on the $1.8 billion outstanding under our Commercial Paper Program was 0.54% per annum, with a weighted average maturity of 18 days. We repaid $781 million of the amounts outstanding under the Commercial Paper Program during the six months ended June 30, 2016 using cash flows from operations and a portion of our unrestricted cash balances. Senior Notes On November 24, 2015, we issued $2.5 billion in aggregate senior notes, including $1.25 billion principal amount of 2.75% senior unsecured fixed rate notes due November 2020, or the 2020 Senior Notes, and $1.25 billion principal amount of 3.75% senior unsecured fixed rate notes due November 2025, or the 2025 Senior Notes. We used the net proceeds from the 2020 Senior Notes and 2025 Senior Notes offering, together with $1.6 billion of borrowings under our Commercial Paper Program, to finance the $4.1 billion cash portion of the purchase price of the acquisition of Interactive Data (Note 3). In October 2013, we issued $600 million principal amount of 2.50% senior unsecured fixed rate notes due October 2018, or the 2018 Senior Notes, and $800 million principal amount of 4.00% senior unsecured fixed rate notes due October 2023, or the 2023 Senior Notes. NYSE Notes In connection with our acquisition on November 13, 2013 of NYSE Euronext, which we refer to as NYSE following the initial public offering and sale of Euronext in 2014, we assumed NYSE's outstanding debt instruments, which included $850 million of 2.00% senior unsecured fixed rate notes due in October 2017, or the NYSE USD Notes, and €920 million ($1.1 billion) of 5.375% senior unsecured fixed rate notes that were due in June 2015, or the NYSE EUR Notes, and together with the NYSE USD Notes, the NYSE Notes. On June 30, 2015, we repaid the NYSE EUR Notes using cash that had been set aside in July 2014 from the proceeds of the sale of Euronext. During the six months and three months ended June 30, 2015, the amortization of the increase in the fair value of the NYSE Notes that was recorded in connection with the NYSE acquisition purchase accounting was $23 million and $11 million, respectively. No significant amortization expenses were recorded after the repayment of the NYSE EUR Notes. |
Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity We currently sponsor employee and director stock option and restricted stock plans. Stock options and restricted stock are granted at the discretion of the compensation committee of the board of directors. All stock options and restricted stock awards are granted at an exercise price equal to the fair value of the common stock on the date of grant. The grant date fair value is based on the closing stock price 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 estimated forfeitures. The non-cash compensation expenses recognized in our consolidated statements of income for stock options and restricted stock were $60 million and $47 million for the six months ended June 30, 2016 and 2015, respectively, and $31 million and $23 million for the three months ended June 30, 2016 and 2015, respectively. Stock Option Plans The following is a summary of stock options for the six months ended June 30, 2016:
Details of stock options outstanding as of June 30, 2016 are as follows:
The total intrinsic value of stock options exercised during the six months ended June 30, 2016 and 2015 were $10 million and $14 million, respectively, and $7 million and $9 million for the three months ended June 30, 2016 and 2015, respectively. As of June 30, 2016, there was $11 million in total unrecognized compensation costs related to stock options. These costs are expected to be recognized over a weighted average period of 2.0 years as the stock options vest. We use the Black-Scholes option pricing model for purposes of valuing stock option awards. During the six months ended June 30, 2016 and 2015, we used the weighted-average assumptions in the table below to compute the value of all options for shares of common stock granted to employees:
The risk-free interest rate is based on the zero-coupon U.S. Treasury yield curve in effect at the time of grant. The expected life computation is derived from historical exercise patterns and anticipated future patterns. Expected volatilities are based on historical volatility of our stock. Restricted Stock Plans In January 2016, we reserved a maximum of 330,924 restricted shares for potential issuance as performance-based restricted shares to certain of our employees. The number of shares that will ultimately be granted under the performance awards will be based on our actual financial performance as compared to financial performance targets set by our board of directors and compensation committee for the year ending December 31, 2016. The maximum compensation expense to be recognized under these performance-based restricted shares is $80 million if the maximum financial performance target is met and all 330,924 shares vest. The compensation expense to be recognized under these performance-based restricted shares will be $39 million if the target financial performance is met, which would result in 165,462 shares vesting. These restricted shares are also subject to a market condition that could reduce the number of shares that are ultimately granted. We will recognize expense on an accelerated basis over the three-year vesting period based on our quarterly assessment of the probable 2016 actual financial performance as compared to the 2016 financial performance targets. As of June 30, 2016, we determined that it is probable that the financial performance level will be at target for 2016. Based on this assessment, we recorded non-cash compensation expense of $11 million and $6 million for the six months and three months ended June 30, 2016, respectively, related to these shares and the remaining $28 million in non-cash compensation expense will be recorded on an accelerated basis over the remaining vesting period, including $13 million of which will be recorded over the remainder of 2016. The following is a summary of the non-vested restricted shares for the six months ended June 30, 2016:
Restricted stock shares granted in the table above include both time-based and performance-based grants. Performance-based shares have been presented to reflect the actual shares to be issued based on the achievement of past performance targets. Non-vested performance-based restricted shares granted are presented in the table above at the maximum number of restricted shares that would vest if the maximum performance targets are met. As of June 30, 2016, there were $174 million in total unrecognized compensation costs related to the time-based restricted stock and the performance-based restricted stock. These costs are expected to be recognized over a weighted-average period of 1.6 years as the restricted stock vests. These unrecognized compensation costs assume that a target performance level will be met on the performance-based restricted shares granted in January 2016. During the six months ended June 30, 2016 and 2015, the total fair value of restricted stock vested under all restricted stock plans was $112 million and $86 million, respectively. Stock Repurchase Program During 2015, our stock repurchases were completed under stock repurchase plans authorized by our board of directors. In connection with our acquisition of Interactive Data during the fourth quarter of 2015, we suspended our stock repurchase plan and that plan has now expired. We did not repurchase any of our outstanding common stock during the six months ended June 30, 2016. The timing and extent of future repurchases, if any, that are not made pursuant to a Rule 10b5-1 trading plan will be at our discretion and will depend upon many conditions. Our management and board of directors periodically review whether or not to be active in repurchasing our stock. In making a determination regarding any stock repurchases, we consider multiple factors. The factors may include: overall stock market conditions, our common stock price movements, the remaining amount authorized for repurchases by our board of directors, the potential impact of a stock repurchase program on our corporate debt ratings, our expected free cash flow and working capital needs, our current and future planned strategic growth initiatives, and other potential uses of our cash and capital resources. In August 2016, our board of directors approved an aggregate of $1.0 billion for future repurchases of our common stock with no fixed expiration date, subject to applicable laws and regulations. Repurchases may be made from time to time on the open market, through established plans, in privately-negotiated transactions or otherwise, in accordance with all applicable securities laws, rules and regulations. We plan to enter into a Rule 10b5-1 trading plan in the future to govern the repurchase of our shares of common stock. Assuming we do begin to repurchase our shares of common stock in the future, we may discontinue the stock repurchases at any time and may terminate the Rule 10b5-1 trading plan. The approval for the share repurchases does not obligate us to acquire any particular amount of our common stock. In addition, our board of directors may increase or decrease the amount of capacity we have for repurchases from time to time. |
Income Taxes |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 30% and 27% for the six months ended June 30, 2016 and 2015, respectively, and 30% and 27% for the three months ended June 30, 2016 and 2015. The effective tax rates for the six months and three months ended June 30, 2016 and 2015 were lower than the federal statutory rate primarily due to favorable foreign income tax rate differentials, partially offset by state income taxes. The favorable foreign income tax rate differential results primarily from lower tax rates in the U.K. The effective tax rates for the six months and three months ended June 30, 2016 are higher than the effective tax rate for the comparable periods in 2015 primarily due to a mix of foreign versus U.S. based income and an increase to deferred income taxes in the current year, partially offset by the tax benefit from the early adoption of ASU 2016-09 (Note 2). Our non-U.S. subsidiaries had $3.3 billion in cumulative undistributed earnings as of June 30, 2016. This amount represents the post-income tax earnings under GAAP adjusted for previously taxed income. The earnings from our non-U.S. subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes has been made in the accompanying consolidated financial statements. Further, a determination of the unrecognized deferred tax liability is not practicable. Any future distribution by way of dividend of these non-U.S. earnings may subject us to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to various non-U.S. countries. |
Clearing Organizations |
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Brokers and Dealers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Clearing Organizations | Clearing Organizations We operate regulated central counterparty clearing houses for the settlement and clearance of derivative contracts. The clearing houses include ICE Clear Europe, ICE Clear Credit, ICE Clear U.S., ICE Clear Canada, ICE Clear Netherlands and ICE Clear Singapore (referred to herein collectively as the “ICE Clearing Houses”).
Each of the ICE Clearing Houses requires all clearing members to maintain cash on deposit or pledge certain assets, which may include government obligations, non-government obligations, letters of credit or gold to guarantee performance of the clearing members’ open positions. Such amounts in total are known as “original margin”. The ICE Clearing Houses may make intraday original margin calls in circumstances where market conditions require additional protection. The daily profits and losses from and to the ICE Clearing Houses due to the marking-to-market of open contracts is known as “variation margin”. The ICE Clearing Houses mark all outstanding contracts to market, and therefore pay and collect variation margin, at least once daily, and in some cases multiple times throughout the day. Marking-to-market allows the ICE Clearing Houses to identify any clearing members that may be unable to satisfy the financial obligations resulting from changes in the prices of their open contracts before those financial obligations become exceptionally large and jeopardize the ability of the ICE Clearing Houses to ensure financial performance of clearing members’ open positions. Each of the ICE Clearing Houses requires that each clearing member make deposits into a fund known as a “guaranty fund”, which is maintained by the relevant ICE Clearing House. These amounts serve to secure the obligations of a clearing member to the ICE Clearing House to which it has made the guaranty fund deposit and may be used to cover losses sustained by the respective ICE Clearing House in the event of a default of a clearing member. The ICE Clearing Houses seek to reduce their exposure through a risk management program that includes initial and ongoing financial standards for clearing member admission and continued membership, original and variation margin requirements, and mandatory deposits to the guaranty fund. The amounts that the clearing members are required to maintain in the original margin and guaranty fund accounts are determined by standardized parameters established by the risk management departments and reviewed by the risk committees and the boards of directors of each of the ICE Clearing Houses and may fluctuate over time. As of June 30, 2016 and December 31, 2015, the ICE Clearing Houses have received or have been pledged $89.1 billion and $87.2 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. The ICE Clearing Houses also have powers of assessment that provide the ability to collect additional funds from their clearing members to cover a defaulting member’s remaining obligations up to the limits established under the respective rules of each ICE Clearing House. Should a particular clearing member fail to deposit original margin, or fail to make a variation margin payment, when and as required, the relevant ICE Clearing House may liquidate or hedge the clearing member’s open positions and use the clearing member’s original margin and guaranty fund deposits to make up any amount owed. In the event that those deposits are not sufficient to pay the amount owed in full, the ICE Clearing Houses may utilize the respective guaranty fund deposits of their respective clearing members on a pro-rata basis for that purpose. We have contributed $150 million, $50 million and $50 million in cash to the ICE Clear Europe, ICE Clear Credit and ICE Clear U.S. guaranty funds, respectively, as of June 30, 2016, and such amounts are at risk and could be used in the event of a clearing member default where the amount of the defaulting clearing member’s original margin and guaranty fund deposits are insufficient. The $250 million combined contributions to the guaranty funds as of June 30, 2016 and December 31, 2015 are included in long-term restricted cash in the accompanying consolidated balance sheets. As of June 30, 2016, our cash margin deposits and guaranty fund are as follows for the ICE Clearing Houses (in millions):
As of December 31, 2015, our cash margin deposits and guaranty fund are as follows for the ICE Clearing Houses (in millions):
We have recorded these cash deposits in the accompanying consolidated balance sheets as current assets with corresponding current liabilities to the clearing members of the relevant ICE Clearing House. All cash, securities and letters of credit are available only to meet the financial obligations of that clearing member to the relevant ICE Clearing House. ICE Clear Europe, ICE Clear Credit, ICE Clear U.S., ICE Clear Canada, ICE Clear Netherlands and ICE Clear Singapore are separate legal entities and are not subject to the liabilities of the other ICE Clearing Houses or the obligations of the members of the other ICE Clearing Houses. The amount of these cash deposits may fluctuate due to the types of margin collateral choices available to clearing members and the change in the amount of deposits required. As a result, these assets and corresponding liabilities may vary significantly over time. Except with respect to ICE Clear Credit, the majority of the cash held by the ICE Clearing Houses is secured in reverse repurchase agreements with primarily overnight maturities or direct investment in U.S. government securities. ICE Clear Credit has been designated as a systemically important financial market utility by the Financial Stability Oversight Council and has been authorized to establish and maintain a cash account at the Federal Reserve Bank of Chicago. ICE Clear Credit held $7.3 billion of its U.S. dollar cash in the guaranty fund and in original margin in the cash account at the Federal Reserve Bank of Chicago as of June 30, 2016. The remaining cash deposits at the ICE Clearing Houses are held in demand deposit accounts at large, highly rated financial institutions and directly in U.S. Treasury securities with original maturities of less than 12 months. In addition to the cash deposits for original margin and the guaranty fund, the ICE Clearing Houses have also received other assets from clearing members, which may include government obligations, certain agency and corporate debt, letters of credit or gold to mitigate credit risk. These assets are not reflected in the accompanying consolidated balance sheets as the risks and rewards of these assets remain with the clearing members unless the ICE 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 member. For certain non-cash deposits, the ICE Clearing Houses may impose discount or “haircut” rates to ensure adequate collateral levels to account for fluctuations in the market value of these deposits. As of June 30, 2016 and December 31, 2015, the assets pledged by the clearing members as original margin and guaranty fund deposits for each of the ICE Clearing Houses are detailed below (in millions):
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements Our financial instruments consist primarily of cash and cash equivalents, short-term and long-term restricted cash and investments, short-term and long-term investments, customer accounts receivable, margin deposits and guaranty funds, cost and equity method investments, short-term and long-term debt and certain other short-term assets and liabilities. The fair value of our financial instruments are measured based on a three-level hierarchy:
In general, we use Level 1 inputs to determine fair value. The Level 1 assets consist of U.S. Treasury securities, equity and other securities listed in active markets, and investments in publicly traded mutual funds held for the purpose of providing future payments of the supplemental executive retirement and the supplemental executive savings plans. Financial assets and liabilities recorded in the accompanying consolidated balance sheets as of June 30, 2016 and December 31, 2015 are classified in their entirety based on the lowest level of input that is significant to the asset or liability’s fair value measurement. Financial instruments measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 are as follows (in millions):
As of June 30, 2016, the fair value of our $1.24 billion 2020 Senior Notes was $1.30 billion, the fair value of our $1.24 billion 2025 Senior Notes was $1.35 billion, the fair value of our $852 million NYSE USD Notes was $860 million, the fair value of our $789 million 2023 Senior Notes was $865 million, and the fair value of our $597 million 2018 Senior Notes was $615 million. The fair values of these fixed rate notes were estimated using quoted market prices for these instruments. The fair value of our commercial paper approximates the carrying value since the rates of interest on this short-term debt approximate market rates as of June 30, 2016. All other financial instruments are determined to approximate carrying value due to the short period of time to their maturities. The long-term investment in equity securities represents our investment in Cetip, which is recorded as an available-for-sale investment, and is recorded and held in Brazilian reais. Cetip was valued at $427 million as of June 30, 2016, using its quoted market price. Changes in the fair value of the Cetip investment are currently reflected in accumulated other comprehensive income (loss) and do not impact earnings, except to the extent that unrealized losses are deemed to be other than temporary (Note 2). As of June 30, 2016, we had an accumulated unrealized gain related to this investment of $103 million. In April 2016, Cetip and BM&FBOVESPA in Brazil entered into a merger agreement. Consummation of the merger remains subject to approval by the regulatory bodies of the Central Bank of Brazil, the Securities and Exchange Commission of Brazil and Brazil’s Council for Economic Defense. The proposed merger values Cetip at R$43.79 per share based upon the June 30, 2016 BM&FBOVESPA closing stock price. Under the terms of the merger agreement, Cetip shareholders will receive a combination of cash (75%) and BM&FBOVESPA stock (25%). Given that a portion of the purchase price consists of BM&FBOVESPA stock, the merger agreement includes an adjustment mechanism that provides for a stock valuation based on the BMF&BOVESPA average trading price during the 30 trading days preceding the last required regulatory approval, with a minimum stock valuation of R$42.00 per share and a maximum stock valuation of R$48.51 per share. As of June 30, 2016, we held $503 million in U.S. Treasury securities, all of which had remaining maturities of less than one year at the date of purchase. Of these securities, $33 million were recorded as cash and cash equivalents, $320 million were recorded as short-term restricted cash and investments and $150 million were recorded as long-term restricted cash and investments in the accompanying consolidated balance sheet as of June 30, 2016. All of the U.S. Treasury securities recorded as cash and cash equivalents have original maturities of less than 90 days. We did not use Level 2 and 3 inputs to determine the fair value of assets or liabilities measured at fair value on a recurring basis as of June 30, 2016 or December 31, 2015. We measure certain assets, such as intangible assets and cost 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 June 30, 2016 and December 31, 2015, none of these assets were required to be recorded at fair value since no impairment indicators were present. |
Condensed Consolidating Financial Statements |
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Condensed Consolidating Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements (Unaudited) In connection with our acquisition of NYSE, Intercontinental Exchange, Inc., or ICE, and NYSE Holdings LLC, or NYSE Holdings, established various guarantees to protect against structural subordination of each entity’s existing indebtedness. NYSE Holdings is our 100% owned subsidiary and fully and unconditionally guarantees, on an unsecured and unsubordinated basis, the payment of principal, premium, if any, and interest of our senior notes. Similarly, ICE fully and unconditionally guarantees, on an unsecured and unsubordinated basis, the payment of principal, premium, if any, and interest of the NYSE USD Notes. The guarantees will remain in place until each applicable debt obligation has been satisfied. The following consolidating financial information sets forth, under the equity method of accounting, the condensed consolidating statements of income and comprehensive income, the condensed consolidating balance sheets, and the condensed consolidating statements of cash flows for (i) ICE (Parent); (ii) NYSE Holdings; (iii) the subsidiary non-guarantors; (iv) elimination entries necessary to consolidate each of ICE (Parent) and NYSE Holdings with the non-guarantor subsidiaries; and (v) on a consolidated basis. The condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements. Intercontinental Exchange, Inc. Condensed Consolidating Balance Sheets As of June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Balance Sheets As of December 31, 2015 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Income Six Months Ended June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Comprehensive Income Six Months Ended June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Income Three Months Ended June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Comprehensive Income Three Months Ended June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Income Six Months Ended June 30, 2015 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Comprehensive Income Six Months Ended June 30, 2015 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Income Three Months Ended June 30, 2015 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Comprehensive Income Three Months Ended June 30, 2015 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2015 (In millions)
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Earnings Per Common Share |
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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 six months and three months ended June 30, 2016 and 2015 (in millions, except per share amounts):
Basic earnings per common share is calculated using the weighted average common shares outstanding during the period. The weighted average common shares outstanding increased for the six months and three months ended June 30, 2016, over the prior year period, primarily due to stock issued for the Interactive Data and Trayport acquisitions in December 2015, partially offset by stock repurchases during 2015. We issued 6.5 million shares of our common stock to Interactive Data stockholders and 2.5 million shares of our common stock to Trayport stockholders, weighted to show these additional shares outstanding for periods after the respective acquisition dates (Note 3). Common equivalent shares from stock options and restricted stock awards, using the treasury stock method, are included in the diluted per share calculations unless the effect of their inclusion would be antidilutive. During the six months ended June 30, 2016 and 2015, 150,323 and 190,000 outstanding stock options, respectively, were not included in the computation of diluted earnings per common share since the inclusion would have had an antidilutive effect because the outstanding stock option exercise prices were greater than the average market price of the common shares during the relevant periods. Certain figures in the table above may not recalculate due to rounding. |
Subsequent Events |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We 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 Accounting Policies (Policies) |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with U.S. generally accepted accounting principles, or 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 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, 2015. 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. These adjustments are of a normal recurring nature. Preparing financial statements requires us to make certain estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, actual results may be different from these estimates. The results of operations for the six months and three months ended June 30, 2016 are not necessarily indicative of the results to be expected for any future period or the full fiscal year. The accompanying unaudited consolidated financial statements include the accounts of us and our wholly-owned and controlled subsidiaries. All intercompany balances and transactions between us and our wholly-owned and controlled subsidiaries have been eliminated in the consolidation. For those 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. In instances where outside stockholders’ hold an option to require us to repurchase the outside stockholders' interest, these interests are shown as redeemable non-controlling interests. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New and Recently Adopted Accounting Pronouncements In January 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. ASU 2016-01 provides updated guidance for the recognition, measurement, presentation, and disclosure of certain financial assets and liabilities, including the requirement that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. On the adoption of ASU 2016-01, changes in the fair value of our equity investment in Cetip, S.A., or Cetip, will no longer be reflected in accumulated other comprehensive income but will be recognized in net income. As of June 30, 2016, our investment in Cetip included an accumulated unrealized gain of $103 million (Note 10). During the six months and three months ended June 30, 2016, the change in the fair value of the Cetip investment was an increase of $128 million and $75 million, respectively. Once adopted, such fair value changes will be reported as other income (expense) under ASU 2016-01. We are currently evaluating this guidance to determine any additional potential impact on our consolidated financial statements upon adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases, or ASU 2016-02. ASU 2016-02 requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. A lessee should recognize in its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating this guidance to determine the potential impact on our consolidated financial statements and whether we will adopt this guidance early. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, or ASU 2016-09. ASU 2016-09 provides updated guidance for the recognition, measurement, presentation, and disclosure of certain components of stock compensation. The guidance includes the recognition of all excess tax benefits/deficiencies in the statement of income and classification as operating activities within the statement of cash flows, as well as the option to account for forfeitures based on awards expected to vest or as they occur. ASU 2016-09 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We decided to adopt ASU 2016-09 early as of January 1, 2016 on a prospective basis. As a result, for the six months and three months ended June 30, 2016, we recorded $12 million and $1 million, respectively, in excess tax benefits within our consolidated statements of income (Note 8). No other terms of the adopted guidance resulted in any significant impact on our consolidated financial statements. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s financial statement presentation. For the six months and three months ended June 30, 2015, we reclassified $47 million and $23 million, respectively, of transaction based expenses in transaction and clearing revenues, net to transaction based expenses for consistency of how we report our cash equities markets. The amounts reclassified to transaction based expenses relate to equity options markets. For the six months and three months ended June 30, 2015, we also reclassified $27 million and $14 million, respectively, in connectivity fees from other revenues to data services revenues. |
Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of intangible assets and goodwill | The following is a summary of the activity in the goodwill balance for the six months ended June 30, 2016 (in millions):
The following is a summary of the activity in the other intangible assets balance for the six months ended June 30, 2016 (in millions):
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Deferred Revenue Deferred Revenue (Tables) |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue Rollforward [Table Text Block] | The changes in our deferred revenue during the six months ended June 30, 2016 are as follows (in millions):
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Debt | total debt, including short-term and long-term debt, consisted of the following as of June 30, 2016 and December 31, 2015 (in millions):
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Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Options | The following is a summary of stock options for the six months ended June 30, 2016:
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Details of Stock Options Outstanding | Details of stock options outstanding as of June 30, 2016 are as follows:
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Stock Options Valuation Assumptions | During the six months ended June 30, 2016 and 2015, we used the weighted-average assumptions in the table below to compute the value of all options for shares of common stock granted to employees:
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Summary of Nonvested Restricted Stock Options | The following is a summary of the non-vested restricted shares for the six months ended June 30, 2016:
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Clearing Organizations (Tables) |
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Brokers and Dealers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Margin Deposits And Guaranty Funds Assets | As of June 30, 2016, our cash margin deposits and guaranty fund are as follows for the ICE Clearing Houses (in millions):
As of December 31, 2015, our cash margin deposits and guaranty fund are as follows for the ICE Clearing Houses (in millions):
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Schedule Of Assets Pledged By Clearing Members As Original Margin And Guaranty Fund Deposits Table | As of June 30, 2016 and December 31, 2015, the assets pledged by the clearing members as original margin and guaranty fund deposits for each of the ICE Clearing Houses are detailed below (in millions):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | Financial instruments measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 are as follows (in millions):
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Condensed Consolidating Financial Statements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet | Condensed Consolidating Balance Sheets As of June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Balance Sheets As of December 31, 2015 (In millions)
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Condensed Income Statement | Intercontinental Exchange, Inc. Condensed Consolidating Statements of Income Six Months Ended June 30, 2015 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Income Six Months Ended June 30, 2016 (In millions)
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Condensed Comprehensive Income Statement | Intercontinental Exchange, Inc. Condensed Consolidating Statements of Comprehensive Income Six Months Ended June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Comprehensive Income Six Months Ended June 30, 2015 (In millions)
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Condensed Cash Flow Statement | Intercontinental Exchange, Inc. Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2016 (In millions)
Intercontinental Exchange, Inc. Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2015 (In millions)
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Earnings Per Common Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 six months and three months ended June 30, 2016 and 2015 (in millions, except per share amounts):
|
Summary of Significant Accounting Policies New and Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unrealized Gain (Loss) on Securities | $ 75 | $ 128 |
Cetip, S.A. [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 103 |
Acquisitions (Proforma Information) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2015 |
Jun. 30, 2015 |
|
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 1,053 | $ 2,153 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 478 | 996 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 299 | $ 632 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.49 | $ 5.25 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.48 | $ 5.22 |
Short-Term and Long-Term Restricted Cash and Investments (Narrative) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Contribution to guarantee fund | $ 262 | $ 263 |
Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 12,079 |
Foreign currency translation | (79) |
Other activity, net | 46 |
Goodwill, Ending Balance | $ 12,046 |
Goodwill and Other Intangible Assets (Other Intangible Rollforward) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Finite-lived Intangible Assets [Roll Forward] | |
Other intangible assets, beginning balance | $ 10,758 |
Foreign currency translation | (95) |
Intangible Assets Excluding Goodwill, Discontinued Operations | (6) |
Other activity, net | (164) |
Other intangible assets, ending balance | $ 10,493 |
Equity (Stock Option Activity) (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Equity [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 224.22 | $ 199.44 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 580,901 | |
Number of Stock Options [Roll Forward] | ||
Outstanding, Number of options, Beginning balance | 774,551 | |
Granted, Number of options | 150,323 | |
Exercised, Number of options | (92,653) | |
Outstanding, Number of options, Ending balance | 832,221 | |
Weighted Average Exercise Price Per Option [Abstract] | ||
Outstanding, Weighted average exercise price per share, Beginning Balance | $ 159.66 | |
Granted, Weighted average exercise price per share | 250.07 | |
Exercised, Weighted average exercise price per share | 143.45 | |
Outstanding, Weighted average exercise price per share, Ending Balance | $ 177.80 |
Equity (Details of Stock Options) (Details) $ / shares in Units, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
$ / shares
shares
| |
Equity [Abstract] | |
Number of Options, Vested or expected to vest | shares | 832,221 |
Weighted Average Exercise Price, Vested or expected to vest | $ / shares | $ 177.80 |
Weighted Average Remaining Contractual Life, Vested or expected to vest | 6 years 10 months 24 days |
Aggregate Intrinsic Value, Vested or expected to vest | $ | $ 65 |
Number of Options, Exercised | shares | 559,552 |
Weighted Average Exercise Price, Exercised | $ / shares | $ 151.84 |
Weighted Average Remaining Contractual Life, Exercised | 5 years 10 months 24 days |
Aggregate Intrinsic Value, Exercised | $ | $ 58 |
Equity (Valuation Assumptions) (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Equity [Abstract] | ||
Risk-free interest rate | 1.51% | 1.08% |
Expected life in years | 5 years | 5 years |
Expected volatility | 24.00% | 24.00% |
Expected dividend yield | 1.36% | 1.25% |
Estimated weighted-average fair value of options granted per share | $ 49.39 | $ 40.94 |
Income Taxes (Narrative) (Details) - USD ($) $ in Billions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 30.00% | 27.00% | 30.00% | 27.00% |
Undistributed earnings of foreign subsidiaries | $ 3.3 | $ 3.3 |
Clearing Organizations (ICE Clearing Houses Schedules) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Clearing Organizations [Line Items] | ||
Original margin | $ 43,958 | $ 46,245 |
Guaranty Fund | 4,543 | 4,924 |
Total | 48,501 | 51,169 |
ICE Clear U.S. | ||
Clearing Organizations [Line Items] | ||
Original margin | 4,445 | 3,882 |
Guaranty Fund | 303 | 311 |
Total | 4,748 | 4,193 |
ICE Clear Europe | ||
Clearing Organizations [Line Items] | ||
Original margin | 25,177 | 28,454 |
Guaranty Fund | 2,797 | 2,589 |
Total | 27,974 | 31,043 |
ICE Clear Canada | ||
Clearing Organizations [Line Items] | ||
Original margin | 160 | 159 |
Guaranty Fund | 12 | 13 |
Total | 172 | 172 |
ICE Clear Credit | ||
Clearing Organizations [Line Items] | ||
Original margin | 14,176 | 13,750 |
Guaranty Fund | 1,431 | 2,011 |
Total | $ 15,607 | $ 15,761 |
Earnings Per Common Share (Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income from continuing operations attributable to non-controlling interest | $ (14) | $ (14) | ||
Net income (loss) attributable to ICE Group, Inc. | $ 357 | $ 283 | $ 726 | $ 598 |
Basic: | ||||
Continuing operations | $ 357,000,000.00 | $ 283,000,000.00 | $ 726,000,000.00 | $ 598,000,000.00 |
Discontinued operations | 119,000,000.00 | 111,000,000.00 | 119,000,000.00 | 112,000,000.00 |
Basic earnings per share | 3.00 | 2.55 | 6.10 | 5.37 |
Diluted: | ||||
Continuing operations | 119,000,000.00 | 111,000,000.00 | 119,000,000.00 | 112,000,000.00 |
Discontinued operations | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | 0.00 |
Diluted earnings per share | $ 120,000,000.00 | $ 112,000,000.00 | $ 120,000,000.00 | $ 112,000,000.00 |
Diluted weighted average common shares outstanding | 0 | 0 | 0 | 0 |
Subsequent Events (Details) - Interactive Data Holdings Corporation Acquisition [Member] $ in Millions |
Dec. 14, 2015
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Business Combination, Consideration Transferred | $ 6,000.0 |
Payments to Acquire Businesses, Gross | 4,100.0 |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 6.5 |
Segment Reporting (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||||
Total revenues, less transaction-based expenses | $ 1,129 | $ 797 | $ 2,283 | $ 1,647 | |
Operating income | 551 | 430 | 1,135 | 892 | |
Total operating expenses | 578 | 367 | 1,148 | 755 | |
Net income | 363 | 289 | 740 | 612 | $ 1,295 |
Trading and Clearing Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues, less transaction-based expenses | 527 | 491 | 1,101 | 1,040 | |
Operating income | 313 | 272 | 674 | 595 | |
Total operating expenses | 214 | 219 | 427 | 445 | |
Data and Listings Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues, less transaction-based expenses | 602 | 306 | 1,182 | 607 | |
Operating income | 238 | 158 | 461 | 297 | |
Total operating expenses | $ 364 | $ 148 | $ 721 | $ 310 |
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