Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Substantially all of our revenues are considered to be revenues from contracts with customers. The related accounts receivable balances are recorded in our balance sheets as customer accounts receivable. We do not have obligations for warranties, returns or refunds to customers, other than rebates, which are settled each period and therefore do not result in variable consideration. We do not have significant revenue recognized from performance obligations that were satisfied in prior periods, and we do not have any transaction price allocated to unsatisfied performance obligations other than in our deferred revenue.

Deferred revenue represents our contract liabilities related to our annual, original and other listings revenues, certain data services, clearing services, mortgage technology services and other revenues. Deferred revenue is our only significant contract liability. See Note 7 for our discussion of deferred revenue balances, activity, and expected timing of recognition.

For all of our contracts with customers, except for listings and certain data, clearing and mortgage services, our performance obligations are short term in nature and there is no significant variable consideration. In addition, we have elected the practical expedient of excluding sales taxes from transaction prices. We have assessed the costs incurred to obtain or fulfill a contract with a customer, which are primarily our sales commissions.

Certain judgments and estimates are used in the identification and timing of satisfaction of performance obligations and the related allocation of transaction price. We believe that these represent a faithful depiction of the transfer of services to our customers. Refer to Note 5 to the consolidated financial statements included in Part II, Item 8 of our 2021 Form 10-K where our primary revenue contract classifications are described in detail.

The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 15:

	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Nine Months Ended September 30, 2022:
Total revenues	$	4,824	$	1,555	$	880	$	7,259
Transaction-based expenses	1,735		—		—		1,735
Total revenues, less transaction-based expenses	$	3,089	$	1,555	$	880	$	5,524
Timing of Revenue Recognition
Services transferred at a point in time	$	1,760	$	263	$	374	$	2,397
Services transferred over time	1,329		1,292		506		3,127
Total revenues, less transaction-based expenses	$	3,089	$	1,555	$	880	$	5,524

	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Nine Months Ended September 30, 2021:
Total revenues	$	4,376	$	1,403	$	1,061	$	6,840
Transaction-based expenses	1,534		—		—		1,534
Total revenues, less transaction-based expenses	$	2,842	$	1,403	$	1,061	$	5,306
Timing of Revenue Recognition
Services transferred at a point in time	$	1,590	$	162	$	631	$	2,383
Services transferred over time	1,252		1,241		430		2,923
Total revenues, less transaction-based expenses	$	2,842	$	1,403	$	1,061	$	5,306

	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Three Months Ended September 30, 2022:
Total revenues	$	1,577	$	534	$	276	$	2,387
Transaction-based expenses	576		—		—		576
Total revenues, less transaction-based expenses	$	1,001	$	534	$	276	$	1,811
Timing of Revenue Recognition
Services transferred at a point in time	$	563	$	104	$	104	$	771
Services transferred over time	438		430		172		1,040
Total revenues, less transaction-based expenses	$	1,001	$	534	$	276	$	1,811

	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Three Months Ended September 30, 2021:
Total revenues	$	1,434	$	477	$	366	$	2,277
Transaction-based expenses	475		—		—		475
Total revenues, less transaction-based expenses	$	959	$	477	$	366	$	1,802
Timing of Revenue Recognition
Services transferred at a point in time	$	534	$	55	$	214	$	803
Services transferred over time	425		422		152		999
Total revenues, less transaction-based expenses	$	959	$	477	$	366	$	1,802

The Exchanges segment and the Fixed Income and Data Services segment revenues above include data services revenues. Our data services revenues are transferred over time, and a majority of those revenues are performed over a short period of time of one month or less and relate to subscription-based data services billed monthly, quarterly or annually in advance. These revenues are recognized ratably over time as our data delivery performance obligations are met consistently throughout the period.

The Exchanges segment revenues transferred over time in the table above also include services related to listings, services related to risk management of open interest performance obligations and services related to regulatory fees, trading permits, and software licenses.

The Fixed Income and Data Services segment revenues transferred over time in the table above also include services related to risk management of open interest performance obligations, primarily in our CDS business.

The Mortgage Technology segment revenues transferred over time in the table above primarily relate to our origination technology revenue where performance obligations consist of a series of distinct services and are recognized over the

contract terms as subscription performance obligations are satisfied, and to a lesser extent, professional services revenues and revenues from certain of our data and analytics offerings.

The components of services transferred over time for each of our segments are as follows:

	Nine Months Ended September 30,				Three Months Ended September 30,
	2022		2021		2022		2021
Exchanges Segment:
Data services revenues	$	651	$	623	$	219	$	208
Services transferred over time related to risk management of open interest performance obligations	$	201	$	190	$	62	$	65
Services transferred over time related to listings	$	388	$	356	$	128	$	123
Services transferred over time related to regulatory fees, trading permits, and software licenses	$	89	$	83	$	29	$	29
Total	$	1,329	$	1,252	$	438	$	425
Fixed Income Data Services Segment:
Data services revenues	$	1,263	$	1,220	$	420	$	414
Services transferred over time related to risk management of open interest performance obligations in our CDS business	$	29	$	21	$	10	$	8
Total	$	1,292	$	1,241	$	430	$	422
Mortgage Technology Segment:
Subscription revenues	$	479	$	404	$	163	$	143
Professional service revenues and other	$	27	$	26	$	9	$	9
Total	$	506	$	430	$	172	$	152
Total consolidated revenues transferred over time	$	3,127	$	2,923	$	1,040	$	999

Deferred Revenue

Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $410 million as of September 30, 2022, including $315 million in current deferred revenue and $95 million in other non-current liabilities. The changes in our deferred revenue during the nine months ended September 30, 2022 are as follows (in millions):

	Annual Listings Revenues		Original Listings Revenues		Other Listings Revenues		Data Services and Other Revenues		Mortgage Technology		Total
Deferred revenue balance at December 31, 2021	$	—	$	19	$	93	$	93	$	79	$	284
Additions	434		32		39		330		62		897
Amortization	(327)		(28)		(33)		(301)		(82)		(771)
Deferred revenue balance at September 30, 2022	$	107	$	23	$	99	$	122	$	59	$	410

The changes in our deferred revenue during the nine months ended September 30, 2021 are as follows (in millions):

	Annual Listings Revenues		Original Listings Revenues		Other Listings Revenues		Data Services and Other Revenues		Mortgage Technology		Total
Deferred revenue balance at December 31, 2020	$	—	$	13	$	92	$	95	$	59	$	259
Additions	397		26		42		352		60		877
Amortization	(301)		(24)		(31)		(319)		(39)		(714)
Deferred revenue balance at September 30, 2021	$	96	$	15	$	103	$	128	$	80	$	422

Included in the amortization recognized during the nine months ended September 30, 2022 is $144 million related to the deferred revenue balance as of December 31, 2021. Included in the amortization recognized for the nine months ended September 30, 2021 is $128 million related to the deferred revenue balance as of December 31, 2020. As of September 30, 2022, the remaining deferred revenue balance will be recognized over the period of time we satisfy our performance obligations as described in Note 5.