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|
|
|
|
|
|
|
|
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(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, 2017
|
Or
|
|
¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
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For the transition period from to
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|
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Delaware
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46-2286804
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(State or other jurisdiction of
incorporation or organization)
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(IRS Employer
Identification Number)
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5660 New Northside Drive,
Atlanta, Georgia
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30328
(Zip Code)
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(Address of principal executive offices)
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
|
|
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(Do not check if a smaller company)
|
|
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As of
|
|
As of
|
||||
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June 30, 2017
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|
December 31, 2016
|
||||
Assets:
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
398
|
|
|
$
|
407
|
|
Short-term investments
|
17
|
|
|
23
|
|
||
Short-term restricted cash and investments
|
769
|
|
|
679
|
|
||
Customer accounts receivable, net of allowance for doubtful accounts of $8 and $7 at June 30, 2017 and December 31, 2016, respectively
|
912
|
|
|
777
|
|
||
Margin deposits and guaranty funds
|
53,585
|
|
|
55,150
|
|
||
Prepaid expenses and other current assets
|
767
|
|
|
97
|
|
||
Total current assets
|
56,448
|
|
|
57,133
|
|
||
Property and equipment, net
|
1,161
|
|
|
1,129
|
|
||
Other non-current assets:
|
|
|
|
||||
Goodwill
|
12,001
|
|
|
12,291
|
|
||
Other intangible assets, net
|
10,103
|
|
|
10,420
|
|
||
Long-term restricted cash and investments
|
264
|
|
|
264
|
|
||
Long-term investments
|
—
|
|
|
432
|
|
||
Other non-current assets
|
347
|
|
|
334
|
|
||
Total other non-current assets
|
22,715
|
|
|
23,741
|
|
||
Total assets
|
$
|
80,324
|
|
|
$
|
82,003
|
|
|
|
|
|
||||
Liabilities and Equity:
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
415
|
|
|
$
|
388
|
|
Section 31 fees payable
|
181
|
|
|
131
|
|
||
Accrued salaries and benefits
|
140
|
|
|
230
|
|
||
Deferred revenue
|
338
|
|
|
114
|
|
||
Short-term debt
|
2,023
|
|
|
2,493
|
|
||
Margin deposits and guaranty funds
|
53,585
|
|
|
55,150
|
|
||
Other current liabilities
|
137
|
|
|
111
|
|
||
Total current liabilities
|
56,819
|
|
|
58,617
|
|
||
Non-current liabilities:
|
|
|
|
||||
Non-current deferred tax liability, net
|
2,915
|
|
|
2,958
|
|
||
Long-term debt
|
3,874
|
|
|
3,871
|
|
||
Accrued employee benefits
|
407
|
|
|
430
|
|
||
Other non-current liabilities
|
376
|
|
|
337
|
|
||
Total non-current liabilities
|
7,572
|
|
|
7,596
|
|
||
Total liabilities
|
64,391
|
|
|
66,213
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Redeemable non-controlling interest
|
—
|
|
|
36
|
|
Equity:
|
|
|
|
||||
Intercontinental Exchange, Inc. shareholders’ equity:
|
|
|
|
||||
Preferred stock, $0.01 par value; 100 shares authorized; no shares issued or outstanding at June 30, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 1,500 shares authorized; 599 and 596 shares issued at June 30, 2017 and December 31, 2016, respectively, and 589 and 595 shares outstanding at June 30, 2017 and December 31, 2016, respectively
|
6
|
|
|
6
|
|
||
Treasury stock, at cost; 10 and 1 shares at June 30, 2017 and December 31, 2016, respectively
|
(590
|
)
|
|
(40
|
)
|
||
Additional paid-in capital
|
11,381
|
|
|
11,306
|
|
||
Retained earnings
|
5,468
|
|
|
4,789
|
|
||
Accumulated other comprehensive loss
|
(367
|
)
|
|
(344
|
)
|
||
Total Intercontinental Exchange, Inc. shareholders’ equity
|
15,898
|
|
|
15,717
|
|
||
Non-controlling interest in consolidated subsidiaries
|
35
|
|
|
37
|
|
||
Total equity
|
15,933
|
|
|
15,754
|
|
||
Total liabilities and equity
|
$
|
80,324
|
|
|
$
|
82,003
|
|
|
Six Months Ended
June 30, |
|
Three Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Transaction and clearing, net
|
$
|
1,615
|
|
|
$
|
1,789
|
|
|
$
|
817
|
|
|
$
|
860
|
|
Data services
|
1,041
|
|
|
974
|
|
|
521
|
|
|
497
|
|
||||
Listings
|
213
|
|
|
208
|
|
|
107
|
|
|
105
|
|
||||
Other revenues
|
94
|
|
|
87
|
|
|
49
|
|
|
42
|
|
||||
Total revenues
|
2,963
|
|
|
3,058
|
|
|
1,494
|
|
|
1,504
|
|
||||
Transaction-based expenses:
|
|
|
|
|
|
|
|
||||||||
Section 31 fees
|
183
|
|
|
196
|
|
|
92
|
|
|
98
|
|
||||
Cash liquidity payments, routing and clearing
|
438
|
|
|
579
|
|
|
224
|
|
|
277
|
|
||||
Total revenues, less transaction-based expenses
|
2,342
|
|
|
2,283
|
|
|
1,178
|
|
|
1,129
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
479
|
|
|
472
|
|
|
234
|
|
|
236
|
|
||||
Professional services
|
64
|
|
|
69
|
|
|
32
|
|
|
37
|
|
||||
Acquisition-related transaction and integration costs
|
23
|
|
|
47
|
|
|
9
|
|
|
20
|
|
||||
Technology and communication
|
195
|
|
|
184
|
|
|
97
|
|
|
92
|
|
||||
Rent and occupancy
|
35
|
|
|
35
|
|
|
17
|
|
|
17
|
|
||||
Selling, general and administrative
|
79
|
|
|
52
|
|
|
38
|
|
|
30
|
|
||||
Depreciation and amortization
|
276
|
|
|
289
|
|
|
142
|
|
|
146
|
|
||||
Total operating expenses
|
1,151
|
|
|
1,148
|
|
|
569
|
|
|
578
|
|
||||
Operating income
|
1,191
|
|
|
1,135
|
|
|
609
|
|
|
551
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(90
|
)
|
|
(90
|
)
|
|
(45
|
)
|
|
(44
|
)
|
||||
Other income, net
|
187
|
|
|
11
|
|
|
1
|
|
|
9
|
|
||||
Other income (expense), net
|
97
|
|
|
(79
|
)
|
|
(44
|
)
|
|
(35
|
)
|
||||
Income before income tax expense
|
1,288
|
|
|
1,056
|
|
|
565
|
|
|
516
|
|
||||
Income tax expense
|
352
|
|
|
316
|
|
|
139
|
|
|
153
|
|
||||
Net income
|
$
|
936
|
|
|
$
|
740
|
|
|
$
|
426
|
|
|
$
|
363
|
|
Net income attributable to non-controlling interest
|
(16
|
)
|
|
(14
|
)
|
|
(8
|
)
|
|
(6
|
)
|
||||
Net income attributable to Intercontinental Exchange, Inc.
|
$
|
920
|
|
|
$
|
726
|
|
|
$
|
418
|
|
|
$
|
357
|
|
Earnings per share attributable to Intercontinental Exchange, Inc. common shareholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.55
|
|
|
$
|
1.22
|
|
|
$
|
0.71
|
|
|
$
|
0.60
|
|
Diluted
|
$
|
1.54
|
|
|
$
|
1.21
|
|
|
$
|
0.70
|
|
|
$
|
0.60
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
593
|
|
|
595
|
|
|
591
|
|
|
595
|
|
||||
Diluted
|
597
|
|
|
598
|
|
|
595
|
|
|
599
|
|
||||
Dividend per share
|
$
|
0.40
|
|
|
$
|
0.34
|
|
|
$
|
0.20
|
|
|
$
|
0.17
|
|
|
Six Months Ended
June 30, |
|
Three Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
936
|
|
|
$
|
740
|
|
|
$
|
426
|
|
|
$
|
363
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of tax (expense) benefit of ($7) and $1 for the six months ended June 30, 2017 and 2016, respectively, and ($7) and ($1) for the three months ended June 30, 2017 and 2016, respectively
|
85
|
|
|
(199
|
)
|
|
60
|
|
|
(125
|
)
|
||||
Change in fair value of available-for-sale securities
|
68
|
|
|
129
|
|
|
—
|
|
|
75
|
|
||||
Reclassification of realized gain on available-for-sale investment to other income
|
(176
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other comprehensive income (loss)
|
(23
|
)
|
|
(70
|
)
|
|
60
|
|
|
(50
|
)
|
||||
Comprehensive income
|
$
|
913
|
|
|
$
|
670
|
|
|
$
|
486
|
|
|
$
|
313
|
|
Comprehensive income attributable to non-controlling interest
|
(16
|
)
|
|
(14
|
)
|
|
(8
|
)
|
|
(6
|
)
|
||||
Comprehensive income attributable to Intercontinental Exchange, Inc.
|
$
|
897
|
|
|
$
|
656
|
|
|
$
|
478
|
|
|
$
|
307
|
|
|
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, 2015
|
628
|
|
|
$
|
6
|
|
|
(34
|
)
|
|
$
|
(1,448
|
)
|
|
$
|
12,290
|
|
|
$
|
4,148
|
|
|
$
|
(188
|
)
|
|
$
|
32
|
|
|
$
|
14,840
|
|
|
$
|
35
|
|
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(156
|
)
|
|
—
|
|
|
(156
|
)
|
|
—
|
|
||||||||
Exercise of common stock options
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||||||
Treasury shares retired in connection with stock split
|
(35
|
)
|
|
—
|
|
|
35
|
|
|
1,512
|
|
|
(1,142
|
)
|
|
(370
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Repurchases of common stock
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
||||||||
Payments relating to treasury shares
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
—
|
|
||||||||
Issuance of restricted stock
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Adjustment to redemption value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
||||||||
Distributions of profits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(19
|
)
|
|
(3
|
)
|
||||||||
Dividends paid to shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(409
|
)
|
|
—
|
|
|
—
|
|
|
(409
|
)
|
|
—
|
|
||||||||
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
24
|
|
|
(3
|
)
|
|
3
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,449
|
|
|
—
|
|
|
—
|
|
|
1,449
|
|
|
—
|
|
||||||||
Balance, as of December 31, 2016
|
596
|
|
|
6
|
|
|
(1
|
)
|
|
(40
|
)
|
|
11,306
|
|
|
4,789
|
|
|
(344
|
)
|
|
37
|
|
|
15,754
|
|
|
36
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
||||||||
Exercise of common stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||||
Repurchases of common stock
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(469
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(469
|
)
|
|
—
|
|
||||||||
Payments relating to treasury shares
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
||||||||
Issuance of restricted stock
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Acquisition of non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(14
|
)
|
|
—
|
|
||||||||
Acquisition of redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(37
|
)
|
||||||||
Distributions of profits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
—
|
|
||||||||
Dividends paid to shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|
—
|
|
||||||||
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
15
|
|
|
(1
|
)
|
|
1
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
936
|
|
|
—
|
|
|
—
|
|
|
936
|
|
|
—
|
|
||||||||
Balance, as of June 30, 2017
|
599
|
|
|
$
|
6
|
|
|
(10
|
)
|
|
$
|
(590
|
)
|
|
$
|
11,381
|
|
|
$
|
5,468
|
|
|
$
|
(367
|
)
|
|
$
|
35
|
|
|
$
|
15,933
|
|
|
$
|
—
|
|
|
As of
|
|
As of
|
||||
|
June 30, 2017
|
|
December 31, 2016
|
||||
Accumulated other comprehensive loss was as follows:
|
|
|
|
||||
Foreign currency translation adjustments
|
$
|
(260
|
)
|
|
$
|
(345
|
)
|
Fair value of available-for-sale securities
|
—
|
|
|
108
|
|
||
Comprehensive income from equity method investment
|
2
|
|
|
2
|
|
||
Employee benefit plans adjustments
|
(109
|
)
|
|
(109
|
)
|
||
Accumulated other comprehensive loss
|
$
|
(367
|
)
|
|
$
|
(344
|
)
|
|
Six Months Ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
936
|
|
|
$
|
740
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
276
|
|
|
289
|
|
||
Stock-based compensation
|
68
|
|
|
60
|
|
||
Deferred taxes
|
(11
|
)
|
|
49
|
|
||
Cetip realized investment gain, net
|
(114
|
)
|
|
—
|
|
||
Other
|
(7
|
)
|
|
4
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Customer accounts receivable
|
(170
|
)
|
|
(157
|
)
|
||
Other current and non-current assets
|
(37
|
)
|
|
(21
|
)
|
||
Section 31 fees payable
|
51
|
|
|
79
|
|
||
Deferred revenue
|
241
|
|
|
257
|
|
||
Other current and non-current liabilities
|
(135
|
)
|
|
(197
|
)
|
||
Total adjustments
|
162
|
|
|
363
|
|
||
Net cash provided by operating activities
|
1,098
|
|
|
1,103
|
|
||
|
|
|
|
||||
Investing activities:
|
|
|
|
||||
Capital expenditures
|
(81
|
)
|
|
(96
|
)
|
||
Capitalized software development costs
|
(69
|
)
|
|
(61
|
)
|
||
Cash received for divestitures (net of cash paid for acquisitions)
|
10
|
|
|
—
|
|
||
Proceeds from sale of Cetip, net
|
438
|
|
|
—
|
|
||
Increase in restricted cash and investments
|
(89
|
)
|
|
(75
|
)
|
||
Other
|
—
|
|
|
(70
|
)
|
||
Net cash provided by (used in) investing activities
|
209
|
|
|
(302
|
)
|
||
|
|
|
|
||||
Financing activities:
|
|
|
|
||||
Repayments of commercial paper, net
|
(469
|
)
|
|
(781
|
)
|
||
Dividends to shareholders
|
(239
|
)
|
|
(205
|
)
|
||
Repurchases of common stock
|
(469
|
)
|
|
—
|
|
||
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises
|
(81
|
)
|
|
(48
|
)
|
||
Acquisition of non-controlling interest and redeemable non-controlling interest
|
(55
|
)
|
|
—
|
|
||
Other
|
(8
|
)
|
|
3
|
|
||
Net cash used in financing activities
|
(1,321
|
)
|
|
(1,031
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
5
|
|
|
(7
|
)
|
||
Net decrease in cash and cash equivalents
|
(9
|
)
|
|
(237
|
)
|
||
Cash and cash equivalents, beginning of period
|
407
|
|
|
627
|
|
||
Cash and cash equivalents, end of period
|
$
|
398
|
|
|
$
|
390
|
|
|
|
|
|
||||
Supplemental cash flow disclosure:
|
|
|
|
||||
Cash paid for income taxes
|
$
|
429
|
|
|
$
|
275
|
|
Cash paid for interest
|
$
|
87
|
|
|
$
|
88
|
|
1.
|
Description of Business
|
2.
|
Summary of Significant Accounting Policies
|
3.
|
Acquisitions and Divestitures
|
4.
|
Goodwill and Other Intangible Assets
|
Goodwill balance at December 31, 2016
|
$
|
12,291
|
|
Acquisitions (divestitures), net
|
1
|
|
|
Foreign currency translation
|
43
|
|
|
Reclassification to held for sale
|
(331
|
)
|
|
Other activity, net
|
(3
|
)
|
|
Goodwill balance at June 30, 2017
|
$
|
12,001
|
|
5.
|
Deferred Revenue
|
|
Annual Listings Revenue
|
|
Original Listings Revenues
|
|
Other Listings Revenues
|
|
Data Services and Other Revenues
|
|
Total
|
||||||||||
Deferred revenue balance at December 31, 2016
|
$
|
—
|
|
|
$
|
66
|
|
|
$
|
83
|
|
|
$
|
88
|
|
|
$
|
237
|
|
Additions
|
366
|
|
|
12
|
|
|
39
|
|
|
256
|
|
|
673
|
|
|||||
Amortization
|
(184
|
)
|
|
(7
|
)
|
|
(21
|
)
|
|
(214
|
)
|
|
(426
|
)
|
|||||
Less NYSE Governance Services, IDMS and Trayport (Notes 3 and 10)
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
|||||
Deferred revenue balance at June 30, 2017
|
$
|
182
|
|
|
$
|
71
|
|
|
$
|
101
|
|
|
$
|
120
|
|
|
$
|
474
|
|
6.
|
Debt
|
|
As of
June 30, 2017 |
|
As of
December 31, 2016 |
||||
Debt:
|
|
|
|
||||
Commercial Paper
|
$
|
1,173
|
|
|
$
|
1,642
|
|
NYSE Notes (2.00% senior unsecured notes due October 5, 2017)
|
850
|
|
|
851
|
|
||
Short-term debt
|
2,023
|
|
|
2,493
|
|
||
2018 Senior Notes (2.50% senior unsecured notes due October 15, 2018)
|
598
|
|
|
598
|
|
||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020)
|
1,243
|
|
|
1,242
|
|
||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023)
|
791
|
|
|
790
|
|
||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025)
|
1,242
|
|
|
1,241
|
|
||
Long-term debt
|
3,874
|
|
|
3,871
|
|
||
Total debt
|
$
|
5,897
|
|
|
$
|
6,364
|
|
7.
|
Equity
|
|
Number of Options
|
|
Weighted Average
Exercise Price per Option |
|||
Outstanding at December 31, 2016
|
3,878,705
|
|
|
$
|
36.05
|
|
Granted
|
730,913
|
|
|
57.34
|
|
|
Exercised
|
(220,020
|
)
|
|
27.56
|
|
|
Outstanding at June 30, 2017
|
4,389,598
|
|
|
40.02
|
|
|
Number of Options
|
|
Weighted Average
Exercise Price |
|
Weighted Average
Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value (In millions) |
|||||
Vested or expected to vest
|
4,389,598
|
|
|
$
|
40.02
|
|
|
6.8
|
|
$
|
114
|
|
Exercisable
|
3,097,035
|
|
|
$
|
34.58
|
|
|
5.9
|
|
$
|
97
|
|
|
Six Months Ended June 30,
|
||||||
Assumptions:
|
2017
|
|
2016
|
||||
Risk-free interest rate
|
1.84
|
%
|
|
1.51
|
%
|
||
Expected life in years
|
5.0
|
|
|
5.0
|
|
||
Expected volatility
|
21
|
%
|
|
24
|
%
|
||
Expected dividend yield
|
1.40
|
%
|
|
1.36
|
%
|
||
Estimated weighted-average fair value of options granted per share
|
$
|
10.50
|
|
|
$
|
9.88
|
|
|
Number of
Restricted Stock Shares |
|
Weighted Average
Grant-Date Fair Value per Share |
||
Non-vested at December 31, 2016
|
6,435,871
|
|
$
|
45.33
|
|
Granted
|
3,148,277
|
|
57.19
|
|
|
Vested
|
(3,265,749)
|
|
44.51
|
|
|
Forfeited
|
(270,695)
|
|
51.06
|
|
|
Non-vested at June 30, 2017
|
6,047,704
|
|
52.25
|
|
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 energy futures and options contracts trading through ICE Futures U.S., and for CDS contracts submitted for clearing in Europe.
|
•
|
ICE Clear Credit performs the clearing and settlement for CDS contracts submitted for clearing in North America.
|
•
|
ICE Clear US 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 is preparing to provide clearing services to Euronext, which are expected to commence during the second half of 2018.
|
•
|
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 US
|
|
Other ICE Clearing Houses
|
|
Total
|
||||||||||
Original margin
|
$
|
20,898
|
|
|
$
|
21,883
|
|
|
$
|
5,410
|
|
|
$
|
90
|
|
|
$
|
48,281
|
|
Guaranty fund
|
2,625
|
|
|
2,332
|
|
|
317
|
|
|
30
|
|
|
5,304
|
|
|||||
Total
|
$
|
23,523
|
|
|
$
|
24,215
|
|
|
$
|
5,727
|
|
|
$
|
120
|
|
|
$
|
53,585
|
|
|
ICE Clear
Europe |
|
ICE Clear
Credit |
|
ICE Clear US
|
|
Other ICE Clearing Houses
|
|
Total
|
||||||||||
Original margin
|
$
|
27,046
|
|
|
$
|
16,833
|
|
|
$
|
6,184
|
|
|
$
|
107
|
|
|
$
|
50,170
|
|
Guaranty fund
|
2,444
|
|
|
2,135
|
|
|
316
|
|
|
85
|
|
|
4,980
|
|
|||||
Total
|
$
|
29,490
|
|
|
$
|
18,968
|
|
|
$
|
6,500
|
|
|
$
|
192
|
|
|
$
|
55,150
|
|
|
As of June 30, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||||||||||||
|
ICE Clear
Europe |
|
ICE Clear Credit
|
|
ICE Clear US
|
|
Other ICE Clearing Houses
|
|
ICE Clear
Europe |
|
ICE Clear Credit
|
|
ICE Clear US
|
|
Other ICE Clearing Houses
|
||||||||||||||||
Original margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government securities at face value
|
$
|
26,131
|
|
|
$
|
4,201
|
|
|
$
|
11,926
|
|
|
$
|
19
|
|
|
$
|
22,961
|
|
|
$
|
6,013
|
|
|
$
|
10,542
|
|
|
$
|
37
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
368
|
|
||||||||
Total
|
$
|
26,131
|
|
|
$
|
4,201
|
|
|
$
|
11,926
|
|
|
$
|
19
|
|
|
$
|
22,961
|
|
|
$
|
6,013
|
|
|
$
|
10,542
|
|
|
$
|
405
|
|
Guaranty fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government securities at face value
|
$
|
311
|
|
|
$
|
44
|
|
|
$
|
163
|
|
|
$
|
3
|
|
|
$
|
217
|
|
|
$
|
178
|
|
|
$
|
147
|
|
|
$
|
40
|
|
10.
|
Held for Sale
|
Assets held for sale:
|
|
||
Cash and cash equivalents
|
$
|
6
|
|
Goodwill
|
331
|
|
|
Other intangibles, net
|
214
|
|
|
Other current and non-current assets
|
27
|
|
|
Total assets held for sale (included in prepaid expenses and other current assets)
|
$
|
578
|
|
|
|
||
Liabilities held for sale:
|
|
||
Deferred tax liabilities, net
|
$
|
38
|
|
Other current and non-current liabilities
|
19
|
|
|
Total liabilities held for sale (included in other current liabilities)
|
$
|
57
|
|
|
|
||
Accumulated other comprehensive loss from foreign currency translation classified as held for sale in equity
|
$
|
89
|
|
11.
|
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, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||||
|
Level 1
|
|
Level 2 and 3
|
|
Total
|
|
Level 1
|
|
Level 2 and 3
|
|
Total
|
||||||||||||
Assets at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term investment in equity securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
432
|
|
|
$
|
—
|
|
|
$
|
432
|
|
U.S. Treasury securities
|
469
|
|
|
—
|
|
|
469
|
|
|
500
|
|
|
—
|
|
|
500
|
|
||||||
Mutual Funds
|
17
|
|
|
—
|
|
|
17
|
|
|
23
|
|
|
—
|
|
|
23
|
|
||||||
Total assets at fair value
|
$
|
486
|
|
|
$
|
—
|
|
|
$
|
486
|
|
|
$
|
955
|
|
|
$
|
—
|
|
|
$
|
955
|
|
12.
|
Condensed Consolidating Financial Statements (Unaudited)
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE Holdings |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
397
|
|
|
$
|
—
|
|
|
$
|
398
|
|
Intercompany receivable
|
2,398
|
|
|
—
|
|
|
—
|
|
|
(2,398
|
)
|
|
—
|
|
|||||
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
53,585
|
|
|
—
|
|
|
53,585
|
|
|||||
Notes receivable from affiliate, current
|
—
|
|
|
281
|
|
|
42
|
|
|
(323
|
)
|
|
—
|
|
|||||
Other current assets
|
2
|
|
|
—
|
|
|
2,463
|
|
|
—
|
|
|
2,465
|
|
|||||
Total current assets
|
2,401
|
|
|
281
|
|
|
56,487
|
|
|
(2,721
|
)
|
|
56,448
|
|
|||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
1,161
|
|
|
—
|
|
|
1,161
|
|
|||||
Other non-current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangible assets, net
|
—
|
|
|
—
|
|
|
22,104
|
|
|
—
|
|
|
22,104
|
|
|||||
Investment in subsidiaries
|
24,302
|
|
|
13,912
|
|
|
—
|
|
|
(38,214
|
)
|
|
—
|
|
|||||
Notes receivable from affiliate, non-current
|
620
|
|
|
6,602
|
|
|
8,405
|
|
|
(15,627
|
)
|
|
—
|
|
|||||
Other non-current assets
|
106
|
|
|
11
|
|
|
494
|
|
|
—
|
|
|
611
|
|
|||||
Total other non-current assets
|
25,028
|
|
|
20,525
|
|
|
31,003
|
|
|
(53,841
|
)
|
|
22,715
|
|
|||||
Total assets
|
$
|
27,429
|
|
|
$
|
20,806
|
|
|
$
|
88,651
|
|
|
$
|
(56,562
|
)
|
|
$
|
80,324
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt
|
$
|
1,173
|
|
|
$
|
850
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,023
|
|
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
53,585
|
|
|
—
|
|
|
53,585
|
|
|||||
Intercompany payable
|
—
|
|
|
1,805
|
|
|
593
|
|
|
(2,398
|
)
|
|
—
|
|
|||||
Notes payable to affiliates, current
|
283
|
|
|
40
|
|
|
—
|
|
|
(323
|
)
|
|
—
|
|
|||||
Other current liabilities
|
20
|
|
|
—
|
|
|
1,191
|
|
|
—
|
|
|
1,211
|
|
|||||
Total current liabilities
|
1,476
|
|
|
2,695
|
|
|
55,369
|
|
|
(2,721
|
)
|
|
56,819
|
|
|||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
3,874
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,874
|
|
|||||
Notes payable to affiliates, non-current
|
6,177
|
|
|
2,228
|
|
|
7,222
|
|
|
(15,627
|
)
|
|
—
|
|
|||||
Other non-current liabilities
|
4
|
|
|
—
|
|
|
3,694
|
|
|
—
|
|
|
3,698
|
|
|||||
Total non-current liabilities
|
10,055
|
|
|
2,228
|
|
|
10,916
|
|
|
(15,627
|
)
|
|
7,572
|
|
|||||
Total liabilities
|
11,531
|
|
|
4,923
|
|
|
66,285
|
|
|
(18,348
|
)
|
|
64,391
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total shareholders’ equity
|
15,898
|
|
|
15,883
|
|
|
22,331
|
|
|
(38,214
|
)
|
|
15,898
|
|
|||||
Non-controlling interest in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|||||
Total equity
|
15,898
|
|
|
15,883
|
|
|
22,366
|
|
|
(38,214
|
)
|
|
15,933
|
|
|||||
Total liabilities and equity
|
$
|
27,429
|
|
|
$
|
20,806
|
|
|
$
|
88,651
|
|
|
$
|
(56,562
|
)
|
|
$
|
80,324
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE Holdings |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
406
|
|
|
$
|
—
|
|
|
$
|
407
|
|
Intercompany receivable
|
2,340
|
|
|
—
|
|
|
—
|
|
|
(2,340
|
)
|
|
—
|
|
|||||
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
55,150
|
|
|
—
|
|
|
55,150
|
|
|||||
Note receivable from affiliate, current
|
—
|
|
|
281
|
|
|
23
|
|
|
(304
|
)
|
|
—
|
|
|||||
Other current assets
|
—
|
|
|
—
|
|
|
1,576
|
|
|
—
|
|
|
1,576
|
|
|||||
Total current assets
|
2,341
|
|
|
281
|
|
|
57,155
|
|
|
(2,644
|
)
|
|
57,133
|
|
|||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
1,129
|
|
|
—
|
|
|
1,129
|
|
|||||
Other non-current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangible assets, net
|
—
|
|
|
—
|
|
|
22,711
|
|
|
—
|
|
|
22,711
|
|
|||||
Investment in subsidiaries
|
23,266
|
|
|
13,238
|
|
|
—
|
|
|
(36,504
|
)
|
|
—
|
|
|||||
Note receivable from affiliate, non-current
|
620
|
|
|
5,958
|
|
|
6,373
|
|
|
(12,951
|
)
|
|
—
|
|
|||||
Other non-current assets
|
100
|
|
|
11
|
|
|
919
|
|
|
—
|
|
|
1,030
|
|
|||||
Total other non-current assets
|
23,986
|
|
|
19,207
|
|
|
30,003
|
|
|
(49,455
|
)
|
|
23,741
|
|
|||||
Total assets
|
$
|
26,327
|
|
|
$
|
19,488
|
|
|
$
|
88,287
|
|
|
$
|
(52,099
|
)
|
|
$
|
82,003
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt
|
$
|
1,642
|
|
|
$
|
851
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,493
|
|
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
55,150
|
|
|
—
|
|
|
55,150
|
|
|||||
Intercompany payable
|
—
|
|
|
1,935
|
|
|
405
|
|
|
(2,340
|
)
|
|
—
|
|
|||||
Notes payable to affiliates, current
|
281
|
|
|
23
|
|
|
—
|
|
|
(304
|
)
|
|
—
|
|
|||||
Other current liabilities
|
31
|
|
|
—
|
|
|
943
|
|
|
—
|
|
|
974
|
|
|||||
Total current liabilities
|
1,954
|
|
|
2,809
|
|
|
56,498
|
|
|
(2,644
|
)
|
|
58,617
|
|
|||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
3,871
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,871
|
|
|||||
Notes payable to affiliates, non-current
|
4,781
|
|
|
1,592
|
|
|
6,578
|
|
|
(12,951
|
)
|
|
—
|
|
|||||
Other non-current liabilities
|
4
|
|
|
—
|
|
|
3,721
|
|
|
—
|
|
|
3,725
|
|
|||||
Total non-current liabilities
|
8,656
|
|
|
1,592
|
|
|
10,299
|
|
|
(12,951
|
)
|
|
7,596
|
|
|||||
Total liabilities
|
10,610
|
|
|
4,401
|
|
|
66,797
|
|
|
(15,595
|
)
|
|
66,213
|
|
|||||
Redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total shareholders’ equity
|
15,717
|
|
|
15,087
|
|
|
21,417
|
|
|
(36,504
|
)
|
|
15,717
|
|
|||||
Non-controlling interest in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
37
|
|
|||||
Total equity
|
15,717
|
|
|
15,087
|
|
|
21,454
|
|
|
(36,504
|
)
|
|
15,754
|
|
|||||
Total liabilities and equity
|
$
|
26,327
|
|
|
$
|
19,488
|
|
|
$
|
88,287
|
|
|
$
|
(52,099
|
)
|
|
$
|
82,003
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE Holdings |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction and clearing, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,615
|
|
|
$
|
—
|
|
|
$
|
1,615
|
|
Data services
|
—
|
|
|
—
|
|
|
1,041
|
|
|
—
|
|
|
1,041
|
|
|||||
Listings and other revenues
|
—
|
|
|
—
|
|
|
307
|
|
|
—
|
|
|
307
|
|
|||||
Revenues
|
—
|
|
|
—
|
|
|
2,963
|
|
|
—
|
|
|
2,963
|
|
|||||
Transaction-based expenses
|
—
|
|
|
—
|
|
|
621
|
|
|
—
|
|
|
621
|
|
|||||
Revenues, less transaction-based expenses
|
—
|
|
|
—
|
|
|
2,342
|
|
|
—
|
|
|
2,342
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
1
|
|
|
—
|
|
|
478
|
|
|
—
|
|
|
479
|
|
|||||
Acquisition-related transaction and integration costs
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|||||
Technology and communication
|
—
|
|
|
—
|
|
|
195
|
|
|
—
|
|
|
195
|
|
|||||
Selling, general, administrative and other
|
—
|
|
|
—
|
|
|
178
|
|
|
—
|
|
|
178
|
|
|||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
276
|
|
|
—
|
|
|
276
|
|
|||||
Operating expenses
|
1
|
|
|
—
|
|
|
1,150
|
|
|
—
|
|
|
1,151
|
|
|||||
Operating income (loss)
|
(1
|
)
|
|
—
|
|
|
1,192
|
|
|
—
|
|
|
1,191
|
|
|||||
Intercompany interest on loans
|
(25
|
)
|
|
35
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|||||
Other income (expense), net
|
(71
|
)
|
|
(8
|
)
|
|
176
|
|
|
—
|
|
|
97
|
|
|||||
Total other income (expense), net
|
(96
|
)
|
|
27
|
|
|
166
|
|
|
—
|
|
|
97
|
|
|||||
Income (loss) before income taxes
|
(97
|
)
|
|
27
|
|
|
1,358
|
|
|
—
|
|
|
1,288
|
|
|||||
Income tax expense
|
—
|
|
|
—
|
|
|
352
|
|
|
—
|
|
|
352
|
|
|||||
Equity earnings from subsidiaries
|
1,017
|
|
|
765
|
|
|
—
|
|
|
(1,782
|
)
|
|
—
|
|
|||||
Net income
|
$
|
920
|
|
|
$
|
792
|
|
|
$
|
1,006
|
|
|
$
|
(1,782
|
)
|
|
$
|
936
|
|
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Net income attributable to ICE
|
$
|
920
|
|
|
$
|
792
|
|
|
$
|
990
|
|
|
$
|
(1,782
|
)
|
|
$
|
920
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE Holdings |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Net income
|
$
|
920
|
|
|
$
|
792
|
|
|
$
|
1,006
|
|
|
$
|
(1,782
|
)
|
|
$
|
936
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
85
|
|
|||||
Change in fair value of available-for-sale-securities
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
68
|
|
|||||
Reclassification of realized gain on available-for-sale investment to other income
|
—
|
|
|
—
|
|
|
(176
|
)
|
|
—
|
|
|
(176
|
)
|
|||||
Total other comprehensive loss
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(23
|
)
|
|||||
Comprehensive loss of subsidiaries
|
(23
|
)
|
|
(38
|
)
|
|
—
|
|
|
61
|
|
|
—
|
|
|||||
Comprehensive income
|
897
|
|
|
754
|
|
|
983
|
|
|
(1,721
|
)
|
|
913
|
|
|||||
Comprehensive income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Comprehensive income attributable to ICE
|
$
|
897
|
|
|
$
|
754
|
|
|
$
|
967
|
|
|
$
|
(1,721
|
)
|
|
$
|
897
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE Holdings |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction and clearing, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
817
|
|
|
$
|
—
|
|
|
$
|
817
|
|
Data services
|
—
|
|
|
—
|
|
|
521
|
|
|
—
|
|
|
521
|
|
|||||
Listings and other revenues
|
—
|
|
|
—
|
|
|
156
|
|
|
—
|
|
|
156
|
|
|||||
Revenues
|
—
|
|
|
—
|
|
|
1,494
|
|
|
—
|
|
|
1,494
|
|
|||||
Transaction-based expenses
|
—
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|
316
|
|
|||||
Revenues, less transaction-based expenses
|
—
|
|
|
—
|
|
|
1,178
|
|
|
—
|
|
|
1,178
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
—
|
|
|
—
|
|
|
234
|
|
|
—
|
|
|
234
|
|
|||||
Acquisition-related transaction and integration costs
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||
Technology and communication
|
—
|
|
|
—
|
|
|
97
|
|
|
—
|
|
|
97
|
|
|||||
Selling, general, administrative and other
|
—
|
|
|
—
|
|
|
87
|
|
|
—
|
|
|
87
|
|
|||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
142
|
|
|||||
Operating expenses
|
—
|
|
|
—
|
|
|
569
|
|
|
—
|
|
|
569
|
|
|||||
Operating income
|
—
|
|
|
—
|
|
|
609
|
|
|
—
|
|
|
609
|
|
|||||
Intercompany interest on loans
|
(15
|
)
|
|
17
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||||
Other expense, net
|
(34
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
—
|
|
|
(44
|
)
|
|||||
Total other income (expense), net
|
(49
|
)
|
|
13
|
|
|
(8
|
)
|
|
—
|
|
|
(44
|
)
|
|||||
Income (loss) before income taxes
|
(49
|
)
|
|
13
|
|
|
601
|
|
|
—
|
|
|
565
|
|
|||||
Income tax expense
|
—
|
|
|
—
|
|
|
139
|
|
|
—
|
|
|
139
|
|
|||||
Equity earnings from subsidiaries
|
467
|
|
|
335
|
|
|
—
|
|
|
(802
|
)
|
|
—
|
|
|||||
Net income
|
$
|
418
|
|
|
$
|
348
|
|
|
$
|
462
|
|
|
$
|
(802
|
)
|
|
$
|
426
|
|
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Net income attributable to ICE
|
$
|
418
|
|
|
$
|
348
|
|
|
$
|
454
|
|
|
$
|
(802
|
)
|
|
$
|
418
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE Holdings |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Net income
|
$
|
418
|
|
|
$
|
348
|
|
|
$
|
462
|
|
|
$
|
(802
|
)
|
|
$
|
426
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|||||
Total other comprehensive income
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|||||
Comprehensive income of subsidiaries
|
60
|
|
|
49
|
|
|
—
|
|
|
(109
|
)
|
|
—
|
|
|||||
Comprehensive income
|
478
|
|
|
397
|
|
|
522
|
|
|
(911
|
)
|
|
486
|
|
|||||
Comprehensive income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Comprehensive income attributable to ICE
|
$
|
478
|
|
|
$
|
397
|
|
|
$
|
514
|
|
|
$
|
(911
|
)
|
|
$
|
478
|
|
|
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
|
|
|||||
Acquisition-related transaction and integration costs
|
—
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
|||||
Technology and communication
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
184
|
|
|||||
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
|
|
|||||
Acquisition-related transaction and integration costs
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|||||
Technology and communication
|
—
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
92
|
|
|||||
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
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
(14
|
)
|
|
$
|
121
|
|
|
$
|
951
|
|
|
$
|
40
|
|
|
$
|
1,098
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash received for divestitures (net of cash paid for acquisitions)
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||
Loans to subsidiaries
|
(63
|
)
|
|
(644
|
)
|
|
(2,051
|
)
|
|
2,758
|
|
|
—
|
|
|||||
Capital expenditures and capitalized software development costs
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
—
|
|
|
(150
|
)
|
|||||
Increase in restricted cash and investments
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|||||
Proceeds from sale of Cetip, net
|
—
|
|
|
—
|
|
|
438
|
|
|
—
|
|
|
438
|
|
|||||
Net cash provided by (used in) investing activities
|
(63
|
)
|
|
(644
|
)
|
|
(1,842
|
)
|
|
2,758
|
|
|
209
|
|
|||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of commercial paper, net
|
(469
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(469
|
)
|
|||||
Intercompany borrowing
|
1,398
|
|
|
523
|
|
|
837
|
|
|
(2,758
|
)
|
|
—
|
|
|||||
Dividends to shareholders
|
(239
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|||||
Intercompany dividends
|
—
|
|
|
—
|
|
|
40
|
|
|
(40
|
)
|
|
—
|
|
|||||
Repurchases of common stock
|
(469
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(469
|
)
|
|||||
Other financing activities
|
(144
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|||||
Net cash provided by (used in) financing activities
|
77
|
|
|
523
|
|
|
877
|
|
|
(2,798
|
)
|
|
(1,321
|
)
|
|||||
Effect of exchange rates on cash and cash equivalents
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Net decrease in cash and cash equivalents
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
1
|
|
|
—
|
|
|
406
|
|
|
—
|
|
|
407
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
397
|
|
|
$
|
—
|
|
|
$
|
398
|
|
|
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
|
|
13.
|
Segment Reporting
|
|
Trading and Clearing Segment
|
|
Data and Listings Segment
|
|
Consolidated
|
||||||
Six Months Ended June 30, 2017:
|
|
|
|
|
|
||||||
Revenues, less transaction-based expenses
|
$
|
1,088
|
|
|
$
|
1,254
|
|
|
$
|
2,342
|
|
Operating expenses
|
430
|
|
|
721
|
|
|
1,151
|
|
|||
Operating income
|
658
|
|
|
533
|
|
|
1,191
|
|
|||
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
|
|
|
Trading and Clearing Segment
|
|
Data and Listings Segment
|
|
Consolidated
|
||||||
Three Months Ended June 30, 2017
|
|
|
|
|
|
||||||
Revenues, less transaction-based expenses
|
$
|
550
|
|
|
$
|
628
|
|
|
$
|
1,178
|
|
Operating expenses
|
214
|
|
|
355
|
|
|
569
|
|
|||
Operating income
|
336
|
|
|
273
|
|
|
609
|
|
|||
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
|
|
14.
|
Earnings Per Common Share
|
|
Six Months Ended
June 30, |
|
Three Months Ended June 30,
|
||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Intercontinental Exchange, Inc.
|
$
|
920
|
|
|
$
|
726
|
|
|
$
|
418
|
|
|
$
|
357
|
|
Weighted average common shares outstanding
|
593
|
|
|
595
|
|
|
591
|
|
|
595
|
|
||||
Basic earnings per common share
|
$
|
1.55
|
|
|
$
|
1.22
|
|
|
$
|
0.71
|
|
|
$
|
0.60
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
593
|
|
|
595
|
|
|
591
|
|
|
595
|
|
||||
Effect of dilutive securities - stock options and restricted shares
|
4
|
|
|
3
|
|
|
4
|
|
|
4
|
|
||||
Diluted weighted average common shares outstanding
|
597
|
|
|
598
|
|
|
595
|
|
|
599
|
|
||||
Diluted earnings per common share
|
$
|
1.54
|
|
|
$
|
1.21
|
|
|
$
|
0.70
|
|
|
$
|
0.60
|
|
15.
|
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, |
|
|
||||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||
Revenues, less transaction-based expenses
|
$
|
2,342
|
|
|
$
|
2,283
|
|
|
3
|
%
|
|
$
|
1,178
|
|
|
$
|
1,129
|
|
|
4
|
%
|
Operating expenses
|
$
|
1,151
|
|
|
$
|
1,148
|
|
|
—
|
%
|
|
$
|
569
|
|
|
$
|
578
|
|
|
(2)
|
%
|
Adjusted operating expenses
(1)
|
$
|
983
|
|
|
$
|
970
|
|
|
1
|
%
|
|
$
|
488
|
|
|
$
|
494
|
|
|
(1)
|
%
|
Operating income
|
$
|
1,191
|
|
|
$
|
1,135
|
|
|
5
|
%
|
|
$
|
609
|
|
|
$
|
551
|
|
|
11
|
%
|
Adjusted operating income
(1)
|
$
|
1,359
|
|
|
$
|
1,313
|
|
|
3
|
%
|
|
$
|
690
|
|
|
$
|
635
|
|
|
8
|
%
|
Operating margin
|
51
|
%
|
|
50
|
%
|
|
1 pt
|
|
|
52
|
%
|
|
49
|
%
|
|
3 pts
|
|
||||
Adjusted operating margin
(1)
|
58
|
%
|
|
58
|
%
|
|
—
|
|
|
59
|
%
|
|
56
|
%
|
|
3 pts
|
|
||||
Other income (expense), net
|
$
|
97
|
|
|
$
|
(79
|
)
|
|
n/a
|
|
|
$
|
(44
|
)
|
|
$
|
(35
|
)
|
|
27
|
%
|
Income tax expense
|
$
|
352
|
|
|
$
|
316
|
|
|
11
|
%
|
|
$
|
139
|
|
|
$
|
153
|
|
|
(10)
|
%
|
Effective tax rate
|
27
|
%
|
|
30
|
%
|
|
( 3 pts)
|
|
|
25
|
%
|
|
30
|
%
|
|
(5 pts)
|
|
||||
Net income attributable to ICE
|
$
|
920
|
|
|
$
|
726
|
|
|
27
|
%
|
|
$
|
418
|
|
|
$
|
357
|
|
|
17
|
%
|
Adjusted net income attributable to ICE
(1)
|
$
|
889
|
|
|
$
|
852
|
|
|
4
|
%
|
|
$
|
448
|
|
|
$
|
411
|
|
|
9
|
%
|
Diluted earnings per share attributable to ICE common shareholders
|
$
|
1.54
|
|
|
$
|
1.21
|
|
|
27
|
%
|
|
$
|
0.70
|
|
|
$
|
0.60
|
|
|
17
|
%
|
Adjusted diluted earnings per share attributable to ICE common shareholders
(1)
|
$
|
1.49
|
|
|
$
|
1.42
|
|
|
5
|
%
|
|
$
|
0.75
|
|
|
$
|
0.69
|
|
|
9
|
%
|
Cash flows from operating activities
|
$
|
1,098
|
|
|
$
|
1,103
|
|
|
—
|
%
|
|
|
|
|
|
|
•
|
Revenues, less transaction-based expenses, increased $59 million and $49 million for the
six months and three months ended
June 30, 2017
, respectively, from the comparable periods in
2016
. See “- Trading and Clearing Segment” and “Data and Listings Segment” below for a discussion of the changes in our revenues. The increase in revenues includes $37 million and $16 million in unfavorable foreign exchange effects arising from the strengthening U.S. dollar for the
six months and three months ended
June 30, 2017
, respectively, from the comparable periods in
2016
. See Item 3 “Quantitative and Qualitative Disclosures About Market Risk - Foreign Currency Exchange Rate Risk” below for additional information on the impact of
|
•
|
Operating expenses increased $3 million and decreased $9 million for the
six months and three months ended
June 30, 2017
, respectively, from the comparable periods in
2016
. See “- Consolidated Operating Expenses” below for a discussion of the significant changes in our consolidated operating expenses. Operating expenses decreased $20 million and $8 million due to favorable foreign exchange effects arising from the strengthening U.S. dollar for the
six months and three months ended
June 30, 2017
, respectively, from the comparable periods in
2016
.
|
•
|
In connection with Cetip’s merger with BM&FBOVESPA S.A., we recognized a
$176 million
realized investment gain in other income (expense), net for the
six months ended
June 30, 2017
, and $9 million in foreign exchange losses and transaction expenses in other income (expense), net for the
six months and three months ended
June 30, 2017
. See “- Recent Developments - Cetip Investment Gain” above.
|
|
Six Months Ended
June 30, |
|
|
|
Three Months Ended June 30,
|
|
|
||||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Brent crude futures and options contracts
|
$
|
169
|
|
|
$
|
154
|
|
|
10
|
%
|
|
$
|
89
|
|
|
$
|
72
|
|
|
24
|
%
|
Other oil futures and options contracts
|
69
|
|
|
56
|
|
|
21
|
|
|
34
|
|
|
27
|
|
|
22
|
|
||||
Gasoil futures and options contracts
|
53
|
|
|
48
|
|
|
13
|
|
|
27
|
|
|
24
|
|
|
18
|
|
||||
Natural gas futures and options contracts
|
105
|
|
|
108
|
|
|
(3
|
)
|
|
50
|
|
|
51
|
|
|
(3
|
)
|
||||
Power futures and options contracts
|
37
|
|
|
44
|
|
|
(17
|
)
|
|
19
|
|
|
23
|
|
|
(20
|
)
|
||||
Emissions and other energy futures and options contracts
|
26
|
|
|
32
|
|
|
(16
|
)
|
|
12
|
|
|
15
|
|
|
(14
|
)
|
||||
Sugar futures and options contracts
|
55
|
|
|
66
|
|
|
(17
|
)
|
|
29
|
|
|
34
|
|
|
(17
|
)
|
||||
Other agricultural and metals futures and options contracts
|
63
|
|
|
63
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|
—
|
|
||||
Interest rates futures and options contracts
|
101
|
|
|
100
|
|
|
—
|
|
|
52
|
|
|
44
|
|
|
16
|
|
||||
Other financial futures and options contracts
|
71
|
|
|
74
|
|
|
(4
|
)
|
|
37
|
|
|
36
|
|
|
2
|
|
||||
Cash equities and equity options
|
771
|
|
|
944
|
|
|
(18
|
)
|
|
390
|
|
|
454
|
|
|
(14
|
)
|
||||
Credit default swaps
|
70
|
|
|
74
|
|
|
(5
|
)
|
|
33
|
|
|
34
|
|
|
(3
|
)
|
||||
Other transactions
|
25
|
|
|
26
|
|
|
(2
|
)
|
|
12
|
|
|
13
|
|
|
(1
|
)
|
||||
Transaction and clearing, net
|
1,615
|
|
|
1,789
|
|
|
(10
|
)
|
|
817
|
|
|
860
|
|
|
(5
|
)
|
||||
Other revenues
|
94
|
|
|
87
|
|
|
8
|
|
|
49
|
|
|
42
|
|
|
16
|
|
||||
Revenues
|
1,709
|
|
|
1,876
|
|
|
(9
|
)
|
|
866
|
|
|
902
|
|
|
(4
|
)
|
||||
Transaction-based expenses
|
621
|
|
|
775
|
|
|
(20
|
)
|
|
316
|
|
|
375
|
|
|
(16
|
)
|
||||
Revenues, less transaction-based expenses
|
1,088
|
|
|
1,101
|
|
|
(1
|
)
|
|
550
|
|
|
527
|
|
|
4
|
|
||||
Other operating expenses
|
330
|
|
|
312
|
|
|
6
|
|
|
162
|
|
|
154
|
|
|
5
|
|
||||
Acquisition-related transaction and integration costs
|
—
|
|
|
7
|
|
|
(97
|
)
|
|
—
|
|
|
6
|
|
|
(98
|
)
|
||||
Depreciation and amortization
|
100
|
|
|
108
|
|
|
(7
|
)
|
|
52
|
|
|
54
|
|
|
(3
|
)
|
||||
Operating expenses
|
430
|
|
|
427
|
|
|
1
|
|
|
214
|
|
|
214
|
|
|
—
|
|
||||
Operating income
|
$
|
658
|
|
|
$
|
674
|
|
|
(2
|
)%
|
|
$
|
336
|
|
|
$
|
313
|
|
|
7
|
%
|
Volume and Rates per Contract
|
|
Six Months Ended
June 30, |
|
|
|
Three Months Ended June 30,
|
|
|
||||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||
Number of contracts traded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Brent crude futures and options
|
135
|
|
|
116
|
|
|
17
|
%
|
|
73
|
|
|
55
|
|
|
34
|
%
|
||||
Other oil futures and options
|
56
|
|
|
46
|
|
|
21
|
|
|
29
|
|
|
22
|
|
|
31
|
|
||||
Gasoil futures and options
|
36
|
|
|
32
|
|
|
10
|
|
|
19
|
|
|
16
|
|
|
15
|
|
||||
Natural gas futures and options
|
117
|
|
|
111
|
|
|
5
|
|
|
56
|
|
|
52
|
|
|
7
|
|
||||
Power futures and options
|
10
|
|
|
8
|
|
|
19
|
|
|
4
|
|
|
5
|
|
|
(18
|
)
|
||||
Emissions and other energy futures and options
|
4
|
|
|
5
|
|
|
(22
|
)
|
|
2
|
|
|
2
|
|
|
(21
|
)
|
||||
Sugar futures and options
|
22
|
|
|
26
|
|
|
(15
|
)
|
|
11
|
|
|
13
|
|
|
(15
|
)
|
||||
Other agricultural and metals futures and options
|
29
|
|
|
31
|
|
|
(4
|
)
|
|
15
|
|
|
16
|
|
|
(3
|
)
|
||||
Interest rates futures and options
|
288
|
|
|
208
|
|
|
39
|
|
|
144
|
|
|
91
|
|
|
58
|
|
||||
Other financial futures and options
|
69
|
|
|
79
|
|
|
(13
|
)
|
|
34
|
|
|
37
|
|
|
(7
|
)
|
||||
Total
|
766
|
|
|
662
|
|
|
16
|
%
|
|
387
|
|
|
309
|
|
|
25
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rate per contract:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy futures and options rate per contract
|
$
|
1.29
|
|
|
$
|
1.38
|
|
|
(6
|
)%
|
|
$
|
1.28
|
|
|
$
|
1.37
|
|
|
(7
|
)%
|
Agricultural and metals futures and options rate per contract
|
$
|
2.31
|
|
|
$
|
2.31
|
|
|
—
|
%
|
|
$
|
2.32
|
|
|
$
|
2.32
|
|
|
—
|
%
|
Financial futures and options rate per contract
|
$
|
0.46
|
|
|
$
|
0.58
|
|
|
(20
|
)%
|
|
$
|
0.47
|
|
|
$
|
0.59
|
|
|
(21
|
)%
|
Open Interest
|
|
As of June 30,
|
|
|
|||||
|
2017
|
|
2016
|
|
Change
|
|||
Open interest — in thousands of contracts:
|
|
|
|
|
|
|||
Brent crude futures and options
|
4,150
|
|
|
4,159
|
|
|
—
|
%
|
Other oil futures and options
|
5,347
|
|
|
4,960
|
|
|
8
|
|
Gasoil futures and options
|
955
|
|
|
751
|
|
|
27
|
|
Natural gas futures and options
|
20,424
|
|
|
18,147
|
|
|
13
|
|
Power futures and options
|
3,101
|
|
|
3,831
|
|
|
(19
|
)
|
Emissions and other energy futures and options
|
1,909
|
|
|
2,183
|
|
|
(13
|
)
|
Sugar futures and options
|
1,411
|
|
|
1,648
|
|
|
(14
|
)
|
Other agricultural and metals futures and options
|
1,948
|
|
|
2,078
|
|
|
(6
|
)
|
Interest rates futures and options
|
22,085
|
|
|
16,773
|
|
|
32
|
|
Other financial futures and options
|
6,059
|
|
|
5,490
|
|
|
10
|
|
Total
|
67,389
|
|
|
60,020
|
|
|
12
|
%
|
|
Six Months Ended
June 30, |
|
|
|
Three Months Ended June 30,
|
|
|
||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||
Cash equities (shares in millions):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NYSE listed (tape A) issues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Handled volume
|
1,144
|
|
|
1,386
|
|
|
(17
|
)%
|
|
1,161
|
|
|
1,295
|
|
|
(10
|
)%
|
Matched volume
|
1,134
|
|
|
1,370
|
|
|
(17
|
)%
|
|
1,151
|
|
|
1,282
|
|
|
(10
|
)%
|
Total NYSE listed consolidated volume
|
3,598
|
|
|
4,220
|
|
|
(15
|
)%
|
|
3,614
|
|
|
3,881
|
|
|
(7
|
)%
|
Share of total matched consolidated volume
|
31.5
|
%
|
|
32.5
|
%
|
|
(0.9 pts)
|
|
|
31.8
|
%
|
|
33.0
|
%
|
|
(1.2 pts)
|
|
NYSE Arca, NYSE American and regional listed (tape B) issues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Handled volume
|
319
|
|
|
408
|
|
|
(22
|
)%
|
|
316
|
|
|
377
|
|
|
(16
|
)%
|
Matched volume
|
310
|
|
|
394
|
|
|
(21
|
)%
|
|
307
|
|
|
365
|
|
|
(16
|
)%
|
Total NYSE Arca, NYSE American and regional listed consolidated volume
|
1,319
|
|
|
1,679
|
|
|
(21
|
)%
|
|
1,255
|
|
|
1,494
|
|
|
(16
|
)%
|
Share of total matched consolidated volume
|
23.5
|
%
|
|
23.4
|
%
|
|
0.1 pts
|
|
|
24.5
|
%
|
|
24.5
|
%
|
|
0.0 pts
|
|
Nasdaq listed (tape C) issues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Handled volume
|
148
|
|
|
213
|
|
|
(31
|
)%
|
|
151
|
|
|
195
|
|
|
(23
|
)%
|
Matched volume
|
138
|
|
|
202
|
|
|
(32
|
)%
|
|
141
|
|
|
186
|
|
|
(24
|
)%
|
Total Nasdaq listed consolidated volume
|
1,949
|
|
|
2,001
|
|
|
(3
|
)%
|
|
2,010
|
|
|
1,894
|
|
|
6
|
%
|
Share of total matched consolidated volume
|
7.1
|
%
|
|
10.1
|
%
|
|
(3.0 pts)
|
|
|
7.0
|
%
|
|
9.8
|
%
|
|
(2.8 pts)
|
|
Total cash handled volume
|
1,611
|
|
|
2,006
|
|
|
(20
|
)%
|
|
1,628
|
|
|
1,867
|
|
|
(13
|
)%
|
Total cash market share matched
|
23.0
|
%
|
|
24.9
|
%
|
|
(1.8 pts)
|
|
|
23.2
|
%
|
|
25.2
|
%
|
|
(2.0 pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity options (contracts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NYSE equity options volume
|
2,229
|
|
|
2,826
|
|
|
(21
|
)%
|
|
2,286
|
|
|
2,649
|
|
|
(14
|
)%
|
Total equity options volume
|
14,710
|
|
|
14,669
|
|
|
—
|
%
|
|
14,812
|
|
|
14,087
|
|
|
5
|
%
|
NYSE share of total equity options
|
15.2
|
%
|
|
19.3
|
%
|
|
(4.1 pts)
|
|
|
15.4
|
%
|
|
18.8
|
%
|
|
(3.4 pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue capture or rate per contract:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash equities revenue capture (per 100 shares)
|
$0.052
|
|
$0.047
|
|
11
|
%
|
|
$0.051
|
|
$0.046
|
|
11
|
%
|
||||
Equity options rate per contract
|
$0.167
|
|
$0.148
|
|
13
|
%
|
|
$0.157
|
|
$0.148
|
|
7
|
%
|
|
Six Months Ended
June 30, |
|
|
|
Three Months Ended June 30,
|
|
|
||||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pricing and analytics
|
$
|
480
|
|
|
$
|
415
|
|
|
16
|
%
|
|
$
|
242
|
|
|
$
|
211
|
|
|
15
|
%
|
Exchange data
|
280
|
|
|
267
|
|
|
4
|
|
|
142
|
|
|
139
|
|
|
2
|
|
||||
Desktops and connectivity
|
281
|
|
|
292
|
|
|
(4
|
)
|
|
137
|
|
|
147
|
|
|
(7
|
)
|
||||
Data services
|
1,041
|
|
|
974
|
|
|
7
|
|
|
521
|
|
|
497
|
|
|
5
|
|
||||
Listings
|
213
|
|
|
208
|
|
|
2
|
|
|
107
|
|
|
105
|
|
|
2
|
|
||||
Revenues
|
1,254
|
|
|
1,182
|
|
|
6
|
|
|
628
|
|
|
602
|
|
|
4
|
|
||||
Other operating expenses
|
522
|
|
|
500
|
|
|
5
|
|
|
256
|
|
|
258
|
|
|
(1
|
)
|
||||
Acquisition-related transaction and integration costs
|
23
|
|
|
40
|
|
|
(43
|
)
|
|
9
|
|
|
14
|
|
|
(34
|
)
|
||||
Depreciation and amortization (including impairment)
|
176
|
|
|
181
|
|
|
(3
|
)
|
|
90
|
|
|
92
|
|
|
(3
|
)
|
||||
Operating expenses
|
721
|
|
|
721
|
|
|
—
|
|
|
355
|
|
|
364
|
|
|
(2
|
)
|
||||
Operating income
|
$
|
533
|
|
|
$
|
461
|
|
|
15
|
%
|
|
$
|
273
|
|
|
$
|
238
|
|
|
15
|
%
|
|
Six Months Ended
June 30, |
|
|
|
Three Months Ended June 30,
|
|
|
||||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||
Compensation and benefits
|
$
|
479
|
|
|
$
|
472
|
|
|
2
|
%
|
|
$
|
234
|
|
|
$
|
236
|
|
|
—
|
%
|
Professional services
|
64
|
|
|
69
|
|
|
(7
|
)
|
|
32
|
|
|
37
|
|
|
(14
|
)
|
||||
Acquisition-related transaction and integration costs
|
23
|
|
|
47
|
|
|
(51
|
)
|
|
9
|
|
|
20
|
|
|
(54
|
)
|
||||
Technology and communication
|
195
|
|
|
184
|
|
|
6
|
|
|
97
|
|
|
92
|
|
|
6
|
|
||||
Rent and occupancy
|
35
|
|
|
35
|
|
|
(1
|
)
|
|
17
|
|
|
17
|
|
|
(4
|
)
|
||||
Selling, general and administrative
|
79
|
|
|
52
|
|
|
53
|
|
|
38
|
|
|
30
|
|
|
25
|
|
||||
Depreciation and amortization
|
276
|
|
|
289
|
|
|
(5
|
)
|
|
142
|
|
|
146
|
|
|
(3
|
)
|
||||
Total operating expenses
|
$
|
1,151
|
|
|
$
|
1,148
|
|
|
—
|
%
|
|
$
|
569
|
|
|
$
|
578
|
|
|
(2
|
)%
|
|
Six Months Ended
June 30, |
|
|
|
Three Months Ended June 30,
|
|
|
||||||||||||||
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
$
|
(90
|
)
|
|
$
|
(90
|
)
|
|
—
|
%
|
|
$
|
(45
|
)
|
|
$
|
(44
|
)
|
|
2
|
%
|
Other income, net
|
187
|
|
|
11
|
|
|
n/a
|
|
|
1
|
|
|
9
|
|
|
(94)
|
|||||
Total other income (expense), net
|
$
|
97
|
|
|
$
|
(79
|
)
|
|
n/a
|
|
|
$
|
(44
|
)
|
|
$
|
(35
|
)
|
|
27
|
%
|
Net income attributable to non-controlling interest
|
$
|
(16
|
)
|
|
$
|
(14
|
)
|
|
14
|
%
|
|
$
|
(8
|
)
|
|
$
|
(6
|
)
|
|
45
|
%
|
|
Three Months Ended,
|
||||||||||||||||||
|
June 30, 2017
|
|
March 31, 2017
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Brent crude futures and options contracts
|
$
|
89
|
|
|
$
|
80
|
|
|
$
|
75
|
|
|
$
|
70
|
|
|
$
|
72
|
|
Other oil futures and options contracts
|
34
|
|
|
35
|
|
|
32
|
|
|
30
|
|
|
27
|
|
|||||
Gasoil futures and options contracts
|
27
|
|
|
26
|
|
|
25
|
|
|
25
|
|
|
24
|
|
|||||
Natural gas futures and options contracts
|
50
|
|
|
55
|
|
|
54
|
|
|
46
|
|
|
51
|
|
|||||
Power futures and options contracts
|
19
|
|
|
18
|
|
|
21
|
|
|
18
|
|
|
23
|
|
|||||
Emissions and other energy futures and options contracts
|
12
|
|
|
14
|
|
|
17
|
|
|
10
|
|
|
15
|
|
|||||
Sugar futures and options contracts
|
29
|
|
|
26
|
|
|
18
|
|
|
25
|
|
|
34
|
|
|||||
Other agricultural and metals futures and options contracts
|
33
|
|
|
30
|
|
|
29
|
|
|
27
|
|
|
33
|
|
|||||
Interest rates futures and options contracts
|
52
|
|
|
49
|
|
|
40
|
|
|
37
|
|
|
44
|
|
|||||
Other financial futures and options contracts
|
37
|
|
|
34
|
|
|
34
|
|
|
33
|
|
|
36
|
|
|||||
Cash equities and equity options
|
390
|
|
|
381
|
|
|
426
|
|
|
410
|
|
|
454
|
|
|||||
Credit default swaps
|
33
|
|
|
37
|
|
|
34
|
|
|
35
|
|
|
34
|
|
|||||
Other transactions
|
12
|
|
|
13
|
|
|
13
|
|
|
11
|
|
|
13
|
|
|||||
Total transaction and clearing, net
|
817
|
|
|
798
|
|
|
818
|
|
|
777
|
|
|
860
|
|
|||||
Pricing and analytics
|
242
|
|
|
238
|
|
|
234
|
|
|
209
|
|
|
211
|
|
|||||
Exchange data
|
142
|
|
|
138
|
|
|
132
|
|
|
136
|
|
|
139
|
|
|||||
Desktops and connectivity
|
137
|
|
|
144
|
|
|
149
|
|
|
144
|
|
|
147
|
|
|||||
Total data services
|
521
|
|
|
520
|
|
|
515
|
|
|
489
|
|
|
497
|
|
|||||
Listings
|
107
|
|
|
106
|
|
|
105
|
|
|
106
|
|
|
105
|
|
|||||
Other revenues
|
49
|
|
|
45
|
|
|
46
|
|
|
44
|
|
|
42
|
|
|||||
Total Revenues
|
1,494
|
|
|
1,469
|
|
|
1,484
|
|
|
1,416
|
|
|
1,504
|
|
|||||
Transaction-based expenses
|
316
|
|
|
305
|
|
|
346
|
|
|
338
|
|
|
375
|
|
|||||
Total revenues, less transaction-based expenses
|
1,178
|
|
|
1,164
|
|
|
1,138
|
|
|
1,078
|
|
|
1,129
|
|
|||||
Compensation and benefits
|
234
|
|
|
245
|
|
|
237
|
|
|
236
|
|
|
236
|
|
|||||
Professional services
|
32
|
|
|
32
|
|
|
36
|
|
|
32
|
|
|
37
|
|
|||||
Acquisition-related transaction and integration costs
|
9
|
|
|
14
|
|
|
19
|
|
|
14
|
|
|
20
|
|
|||||
Technology and communication
|
97
|
|
|
98
|
|
|
97
|
|
|
93
|
|
|
92
|
|
|||||
Rent and occupancy
|
17
|
|
|
18
|
|
|
18
|
|
|
17
|
|
|
17
|
|
|||||
Selling, general and administrative
|
38
|
|
|
41
|
|
|
33
|
|
|
31
|
|
|
30
|
|
|||||
Depreciation and amortization
(1)
|
142
|
|
|
134
|
|
|
140
|
|
|
181
|
|
|
146
|
|
|||||
Total operating expenses
|
569
|
|
|
582
|
|
|
580
|
|
|
604
|
|
|
578
|
|
|||||
Operating income
|
609
|
|
|
582
|
|
|
558
|
|
|
474
|
|
|
551
|
|
|||||
Other income (expense), net
(2)
|
(44
|
)
|
|
141
|
|
|
(28
|
)
|
|
(31
|
)
|
|
(35
|
)
|
|||||
Income tax expense
(3)
|
139
|
|
|
213
|
|
|
171
|
|
|
93
|
|
|
153
|
|
|||||
Net income
|
$
|
426
|
|
|
$
|
510
|
|
|
$
|
359
|
|
|
$
|
350
|
|
|
$
|
363
|
|
Net income attributable to non-controlling interest
|
(8
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|||||
Net income attributable to ICE
|
$
|
418
|
|
|
$
|
502
|
|
|
$
|
352
|
|
|
$
|
344
|
|
|
$
|
357
|
|
|
Six Months Ended June 30,
|
||||||
2017
|
|
2016
|
|||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
1,098
|
|
|
$
|
1,103
|
|
Investing activities
|
209
|
|
|
(302
|
)
|
||
Financing activities
|
(1,321
|
)
|
|
(1,031
|
)
|
||
Effect of exchange rate changes
|
5
|
|
|
(7
|
)
|
||
Net decrease in cash and cash equivalents
|
$
|
(9
|
)
|
|
$
|
(237
|
)
|
|
As of
June 30, 2017 |
|
As of
December 31, 2016 |
||||
Debt:
|
|
|
|
||||
Commercial Paper
|
$
|
1,173
|
|
|
$
|
1,642
|
|
NYSE Notes (2.00% senior unsecured notes due October 5, 2017)
|
850
|
|
|
851
|
|
||
Short-term debt
|
2,023
|
|
|
2,493
|
|
||
2018 Senior Notes (2.50% senior unsecured notes due October 15, 2018)
|
598
|
|
|
598
|
|
||
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020)
|
1,243
|
|
|
1,242
|
|
||
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023)
|
791
|
|
|
790
|
|
||
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025)
|
1,242
|
|
|
1,241
|
|
||
Long-term debt
|
3,874
|
|
|
3,871
|
|
||
Total debt
|
$
|
5,897
|
|
|
$
|
6,364
|
|
ICE Clear Credit:
|
$300 million in Committed Repo to finance U.S. dollar and euro deposits, €500 million in Committed Repo to finance euro deposits, and €1.4 billion in Committed F/X Facilities to finance euro payment obligations.
|
|
Trading and Clearing Segment
|
|
Data and Listings Segment
|
|
Consolidated
|
||||||||||||||||||
|
Six Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Revenues, less transaction-based expenses
|
$
|
1,088
|
|
|
$
|
1,101
|
|
|
$
|
1,254
|
|
|
$
|
1,182
|
|
|
$
|
2,342
|
|
|
$
|
2,283
|
|
Operating expenses
|
$
|
430
|
|
|
$
|
427
|
|
|
$
|
721
|
|
|
$
|
721
|
|
|
$
|
1,151
|
|
|
$
|
1,148
|
|
Less: Interactive Data and NYSE transaction and integration costs
|
—
|
|
|
1
|
|
|
20
|
|
|
23
|
|
|
20
|
|
|
24
|
|
||||||
Less: Amortization of acquisition-related intangibles
|
28
|
|
|
38
|
|
|
104
|
|
|
116
|
|
|
132
|
|
|
154
|
|
||||||
Less: Net loss on divestiture of NYSE Governance Services
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Less: Accruals relating to ongoing investigations and inquiries
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||||
Adjusted operating expenses
|
$
|
392
|
|
|
$
|
388
|
|
|
$
|
591
|
|
|
$
|
582
|
|
|
$
|
983
|
|
|
$
|
970
|
|
Operating income
|
$
|
658
|
|
|
$
|
674
|
|
|
$
|
533
|
|
|
$
|
461
|
|
|
$
|
1,191
|
|
|
$
|
1,135
|
|
Adjusted operating income
|
$
|
696
|
|
|
$
|
713
|
|
|
$
|
663
|
|
|
$
|
600
|
|
|
$
|
1,359
|
|
|
$
|
1,313
|
|
Operating margin
|
60
|
%
|
|
61
|
%
|
|
42
|
%
|
|
39
|
%
|
|
51
|
%
|
|
50
|
%
|
||||||
Adjusted operating margin
|
64
|
%
|
|
65
|
%
|
|
53
|
%
|
|
51
|
%
|
|
58
|
%
|
|
58
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
920
|
|
|
$
|
726
|
|
||||||||
Add: Interactive Data and NYSE transaction and integration costs
|
|
|
|
|
|
|
|
|
20
|
|
|
24
|
|
||||||||||
Add: Amortization of acquisition-related intangibles
|
|
|
|
|
|
|
|
|
132
|
|
|
154
|
|
||||||||||
Add: Net loss on divestiture of NYSE Governance Services
|
|
|
|
|
|
|
|
|
6
|
|
|
—
|
|
||||||||||
Add: Accruals relating to ongoing investigations and inquiries
|
|
|
|
|
|
|
|
|
10
|
|
|
—
|
|
||||||||||
Less: Cetip investment gain
|
|
|
|
|
|
|
|
|
(176
|
)
|
|
—
|
|
||||||||||
Add: Foreign exchange loss and transaction expenses on sale of Cetip
|
|
|
|
|
|
|
|
|
9
|
|
|
—
|
|
||||||||||
Less: Income tax effect for the above items
|
|
|
|
|
|
|
|
|
(32
|
)
|
|
(65
|
)
|
||||||||||
Add: Deferred tax adjustment on acquisition-related intangibles
|
|
|
|
|
|
|
|
|
—
|
|
|
13
|
|
||||||||||
Adjusted net income attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
889
|
|
|
$
|
852
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
1.55
|
|
|
$
|
1.22
|
|
||||||||
Diluted earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
1.54
|
|
|
$
|
1.21
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted basic earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
1.50
|
|
|
$
|
1.43
|
|
||||||||
Adjusted diluted earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
1.49
|
|
|
$
|
1.42
|
|
|
Trading and Clearing Segment
|
|
Data and Listings Segment
|
|
Consolidated
|
||||||||||||||||||
|
Three Months Ended
June 30, |
|
Three Months Ended
June 30, |
|
Three Months Ended
June 30, |
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Revenues, less transaction-based expenses
|
$
|
550
|
|
|
$
|
527
|
|
|
$
|
628
|
|
|
$
|
602
|
|
|
$
|
1,178
|
|
|
$
|
1,129
|
|
Operating expenses
|
$
|
214
|
|
|
$
|
214
|
|
|
$
|
355
|
|
|
$
|
364
|
|
|
$
|
569
|
|
|
$
|
578
|
|
Less: Interactive Data and NYSE transaction and integration costs
|
—
|
|
|
—
|
|
|
8
|
|
|
7
|
|
|
8
|
|
|
7
|
|
||||||
Less: Amortization of acquisition-related intangibles
|
16
|
|
|
18
|
|
|
51
|
|
|
59
|
|
|
67
|
|
|
77
|
|
||||||
Less: Net loss on divestiture of NYSE Governance Services
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Adjusted operating expenses
|
$
|
198
|
|
|
$
|
196
|
|
|
$
|
290
|
|
|
$
|
298
|
|
|
$
|
488
|
|
|
$
|
494
|
|
Operating income
|
$
|
336
|
|
|
$
|
313
|
|
|
$
|
273
|
|
|
$
|
238
|
|
|
$
|
609
|
|
|
$
|
551
|
|
Adjusted operating income
|
$
|
352
|
|
|
$
|
331
|
|
|
$
|
338
|
|
|
$
|
304
|
|
|
$
|
690
|
|
|
$
|
635
|
|
Operating margin
|
61
|
%
|
|
59
|
%
|
|
43
|
%
|
|
40
|
%
|
|
52
|
%
|
|
49
|
%
|
||||||
Adjusted operating margin
|
64
|
%
|
|
63
|
%
|
|
54
|
%
|
|
50
|
%
|
|
59
|
%
|
|
56
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
418
|
|
|
$
|
357
|
|
||||||||
Add: Interactive Data and NYSE transaction and integration costs
|
|
|
|
|
|
|
|
|
8
|
|
|
7
|
|
||||||||||
Add: Amortization of acquisition-related intangibles
|
|
|
|
|
|
|
|
|
67
|
|
|
77
|
|
||||||||||
Add: Net loss on divestiture of NYSE Governance Services
|
|
|
|
|
|
|
|
|
6
|
|
|
—
|
|
||||||||||
Add: Foreign exchange loss and transaction expenses on sale of Cetip
|
|
|
|
|
|
|
|
|
9
|
|
|
—
|
|
||||||||||
Less: Income tax effect for the above items
|
|
|
|
|
|
|
|
|
(60
|
)
|
|
(30
|
)
|
||||||||||
Adjusted net income attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
448
|
|
|
$
|
411
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
0.71
|
|
|
$
|
0.60
|
|
||||||||
Diluted earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
0.70
|
|
|
$
|
0.60
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted basic earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
0.76
|
|
|
$
|
0.69
|
|
||||||||
Adjusted diluted earnings per share attributable to ICE common shareholders
|
|
|
|
|
|
|
|
|
$
|
0.75
|
|
|
$
|
0.69
|
|
|
Six Months Ended
June 30, 2017 |
|
Three Months Ended
June 30, 2017 |
||||||||||||
|
Pound sterling
|
|
Euro
|
|
Pound sterling
|
|
Euro
|
||||||||
Average exchange rate to the U.S. dollar in the current year period
|
1.2595
|
|
|
1.0829
|
|
|
1.2793
|
|
|
1.1004
|
|
||||
Average exchange rate to the U.S. dollar in the same period in the prior year
|
1.4340
|
|
|
1.1166
|
|
|
1.4339
|
|
|
1.1294
|
|
||||
Average exchange rate decreases
|
(12
|
)%
|
|
(3
|
)%
|
|
(11
|
)%
|
|
(3
|
)%
|
||||
Foreign denominated percentage of:
|
|
|
|
|
|
|
|
||||||||
Revenues, less transaction-based expenses
|
10
|
%
|
|
4
|
%
|
|
11
|
%
|
|
4
|
%
|
||||
Operating expenses
|
12
|
%
|
|
3
|
%
|
|
12
|
%
|
|
2
|
%
|
||||
Operating income
|
9
|
%
|
|
5
|
%
|
|
10
|
%
|
|
5
|
%
|
||||
Impact of the currency fluctuations
(1)
on:
|
|
|
|
|
|
|
|
||||||||
Revenues, less transaction-based expenses
|
$
|
(34
|
)
|
|
$
|
(3
|
)
|
|
$
|
(15
|
)
|
|
$
|
(1
|
)
|
Operating expenses
|
$
|
(19
|
)
|
|
$
|
(1
|
)
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
Operating income
|
$
|
(15
|
)
|
|
$
|
(2
|
)
|
|
$
|
(7
|
)
|
|
$
|
(1
|
)
|
|
As of June 30, 2017
|
||||||
|
Position in pounds sterling
|
|
Position in euros
|
||||
Assets
|
£
|
1,267
|
|
|
€
|
153
|
|
of which goodwill represents
|
268
|
|
|
43
|
|
||
Liabilities
|
130
|
|
|
53
|
|
||
Net currency position
|
£
|
1,137
|
|
|
€
|
100
|
|
Impact on consolidated equity of a 10% decrease in foreign currency exchange rates
|
$
|
148
|
|
|
$
|
11
|
|
Period
(2017)
|
Total number of
shares purchased
|
Average price
paid per share
|
Total number of
shares purchased as
part of publicly
announced plans or
programs(1)
|
Approximate dollar
value of shares that
may yet be
purchased under the
plans or programs
(in millions)(1)
|
April 1 - April 30
|
1,192,114
|
$60.30
|
6,006,060
|
$649
|
May 1 - May 31
|
1,408,310
|
$59.68
|
7,414,370
|
$565
|
June 1 - June 30
|
1,316,063
|
$63.88
|
8,730,433
|
$481
|
Total
|
3,916,487
|
$61.28
|
8,730,433
|
$481
|
(1)
|
Refer to Note 7 to our consolidated financial statements and related notes, which are included elsewhere in this Quarterly Report, for details on our stock repurchase plans.
|
Exhibit Number
|
|
Description of Document
|
3.1
|
—
|
Fourth Amended and Restated Certificate of Incorporation of Intercontinental Exchange, Inc. effective May 25, 2017 (incorporated by reference to Exhibit 3.1 to Intercontinental Exchange, Inc.’s Current Report on Form 8-K filed with the SEC on May 26, 2017, File No. 001-36198).
|
|
|
|
3.2
|
—
|
Eighth Amended and Restated Bylaws of Intercontinental Exchange, Inc. effective May 25, 2017 (incorporated by reference to Exhibit 3.2 to Intercontinental Exchange, Inc.’s Current Report on Form 8-K filed with the SEC on May 26, 2017, File No. 001-36198).
|
|
|
|
10.1
|
—
|
Intercontinental Exchange, Inc. 2017 Omnibus Employee Incentive Plan (incorporated by reference to Exhibit 4.1 to Intercontinental Exchange, Inc.’s Form S-8 filed with the SEC on May 22, 2017, File No. 333-218619).
|
|
|
|
10.2
|
—
|
Amendment No. 1 to the Intercontinental Exchange, Inc. 2013 Omnibus Non-Employee Director Incentive Plan.
|
|
|
|
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, 2017, 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, 2017
|
|
By:
|
/s/ Scott A. Hill
|
|
|
|
Scott A. Hill
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
1.
|
A new aggregate annual limit on Non-Employee Director cash and equity compensation shall be added to the Plan. Accordingly, the following new Section 3.23 is hereby added:
|
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
|