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(Mark One)
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þ
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the quarterly period ended September 30, 2014
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Or
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¨
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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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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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(Do not check if a smaller company)
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PART I.
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Financial Statements
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Item 1
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Consolidated Financial Statements (Unaudited):
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Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013
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Consolidated Statements of Income for the nine months and three months ended September 30, 2014 and 2013
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Consolidated Statements of Comprehensive Income (Loss) for the nine months and three months ended September 30, 2014 and 2013
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Consolidated Statements of Changes in Equity, Accumulated Other Comprehensive Income and Redeemable Non-Controlling Interest for the nine months ended September 30, 2014 and for the year ended December 31, 2013
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Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2013
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Notes to Consolidated Financial Statements
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Item 2
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 3
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Quantitative and Qualitative Disclosures About Market Risk
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Item 4
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Controls and Procedures
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PART II.
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Other Information
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Item 1
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Legal Proceedings
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Item 1A
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Risk Factors
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Item 2
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Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3
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Defaults Upon Senior Securities
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Item 4
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Mine Safety Disclosures
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Item 5
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Other Information
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Item 6
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Exhibits
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As of
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As of
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||||
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September 30, 2014
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December 31, 2013
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||||
Assets:
|
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||||
Current assets:
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|
||||
Cash and cash equivalents
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$
|
638
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$
|
961
|
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Short-term investments
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1,241
|
|
|
74
|
|
||
Short-term restricted cash and investments
|
314
|
|
|
277
|
|
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Customer accounts receivable, net of allowance for doubtful accounts of $1 at September 30, 2014 and December 31, 2013
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446
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|
|
482
|
|
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Margin deposits and guaranty funds
|
46,527
|
|
|
42,216
|
|
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Prepaid expenses and other current assets
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212
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|
|
249
|
|
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Total current assets
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49,378
|
|
|
44,259
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|
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Property and equipment, net
|
839
|
|
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891
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|
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Other non-current assets:
|
|
|
|
||||
Goodwill
|
8,471
|
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|
9,501
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|
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Other intangible assets, net
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7,754
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|
|
9,404
|
|
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Long-term restricted cash and investments
|
230
|
|
|
161
|
|
||
Long-term investments
|
496
|
|
|
324
|
|
||
Other non-current assets
|
118
|
|
|
278
|
|
||
Total other non-current assets
|
17,069
|
|
|
19,668
|
|
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Total assets
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$
|
67,286
|
|
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$
|
64,818
|
|
|
|
|
|
||||
Liabilities and Equity:
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
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$
|
282
|
|
|
$
|
343
|
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Accrued salaries and benefits
|
185
|
|
|
301
|
|
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Deferred revenue
|
139
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|
|
48
|
|
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Short-term debt
|
1,889
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|
|
1,135
|
|
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Margin deposits and guaranty funds
|
46,527
|
|
|
42,216
|
|
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Other current liabilities
|
315
|
|
|
299
|
|
||
Total current liabilities
|
49,337
|
|
|
44,342
|
|
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Non-current liabilities:
|
|
|
|
||||
Non-current deferred tax liability, net
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2,137
|
|
|
2,771
|
|
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Long-term debt
|
2,247
|
|
|
3,923
|
|
||
Accrued employee benefits
|
320
|
|
|
412
|
|
||
Other non-current liabilities
|
458
|
|
|
433
|
|
||
Total non-current liabilities
|
5,162
|
|
|
7,539
|
|
||
Total liabilities
|
54,499
|
|
|
51,881
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Redeemable non-controlling interest
|
144
|
|
|
322
|
|
Equity:
|
|
|
|
||||
Intercontinental Exchange, Inc. shareholders’ equity:
|
|
|
|
||||
Preferred stock, $0.01 par value; 100 shares authorized; no shares issued or outstanding at September 30, 2014 and December 31, 2013
|
—
|
|
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—
|
|
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Common stock, $0.01 par value; 500 shares authorized; 116 and 113 shares issued and outstanding at September 30, 2014, respectively, and 115 shares issued and outstanding at December 31, 2013
|
1
|
|
|
1
|
|
||
Treasury stock, at cost; 3 shares at September 30, 2014
|
(540
|
)
|
|
(53
|
)
|
||
Additional paid-in capital
|
9,909
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|
|
9,794
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|
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Retained earnings
|
3,000
|
|
|
2,482
|
|
||
Accumulated other comprehensive income
|
244
|
|
|
359
|
|
||
Total Intercontinental Exchange, Inc. shareholders’ equity
|
12,614
|
|
|
12,583
|
|
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Non-controlling interest in consolidated subsidiaries
|
29
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|
|
32
|
|
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Total equity
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12,643
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|
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12,615
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|
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Total liabilities and equity
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$
|
67,286
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|
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$
|
64,818
|
|
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Nine Months Ended
September 30, |
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Three Months Ended
September 30, |
||||||||||||
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2014
|
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2013
|
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2014
|
|
2013
|
||||||||
Revenues:
|
|
|
|
|
|
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||||||||
Transaction and clearing fees, net
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$
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2,190
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$
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899
|
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$
|
708
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|
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$
|
280
|
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Market data fees
|
304
|
|
|
121
|
|
|
105
|
|
|
40
|
|
||||
Listing fees
|
251
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Other revenues
|
332
|
|
|
42
|
|
|
107
|
|
|
18
|
|
||||
Total revenues
|
3,077
|
|
|
1,062
|
|
|
1,006
|
|
|
338
|
|
||||
Transaction-based expenses:
|
|
|
|
|
|
|
|
||||||||
Section 31 fees
|
240
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Cash liquidity payments, routing and clearing
|
545
|
|
|
—
|
|
|
175
|
|
|
—
|
|
||||
Total revenues, less transaction-based expenses
|
2,292
|
|
|
1,062
|
|
|
745
|
|
|
338
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
448
|
|
|
193
|
|
|
144
|
|
|
60
|
|
||||
Technology and communication
|
136
|
|
|
36
|
|
|
46
|
|
|
13
|
|
||||
Professional services
|
161
|
|
|
23
|
|
|
52
|
|
|
7
|
|
||||
Rent and occupancy
|
61
|
|
|
23
|
|
|
19
|
|
|
5
|
|
||||
Acquisition-related transaction and integration costs
|
102
|
|
|
32
|
|
|
40
|
|
|
6
|
|
||||
Selling, general and administrative
|
92
|
|
|
28
|
|
|
31
|
|
|
10
|
|
||||
Depreciation and amortization
|
244
|
|
|
100
|
|
|
83
|
|
|
35
|
|
||||
Total operating expenses
|
1,244
|
|
|
435
|
|
|
415
|
|
|
136
|
|
||||
Operating income
|
1,048
|
|
|
627
|
|
|
330
|
|
|
202
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(73
|
)
|
|
(29
|
)
|
|
(22
|
)
|
|
(9
|
)
|
||||
Other income, net
|
20
|
|
|
3
|
|
|
5
|
|
|
—
|
|
||||
Other expense, net
|
(53
|
)
|
|
(26
|
)
|
|
(17
|
)
|
|
(9
|
)
|
||||
Income from continuing operations before income tax expense
|
995
|
|
|
601
|
|
|
313
|
|
|
193
|
|
||||
Income tax expense
|
284
|
|
|
161
|
|
|
90
|
|
|
48
|
|
||||
Income from continuing operations
|
711
|
|
|
440
|
|
|
223
|
|
|
145
|
|
||||
Income (loss) from discontinued operations, net of tax
|
11
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
||||
Net income
|
$
|
722
|
|
|
$
|
440
|
|
|
$
|
213
|
|
|
$
|
145
|
|
Net income from continuing operations attributable to non-controlling interest
|
(29
|
)
|
|
(10
|
)
|
|
(7
|
)
|
|
(4
|
)
|
||||
Net income attributable to Intercontinental Exchange, Inc.
|
$
|
693
|
|
|
$
|
430
|
|
|
$
|
206
|
|
|
$
|
141
|
|
Basic earnings (loss) per share attributable to Intercontinental Exchange, Inc. common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
5.96
|
|
|
$
|
5.91
|
|
|
$
|
1.90
|
|
|
$
|
1.94
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Basic earnings per share
|
$
|
6.05
|
|
|
$
|
5.91
|
|
|
$
|
1.81
|
|
|
$
|
1.94
|
|
Basic weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
73
|
|
||||
Diluted earnings (loss) per share attributable to Intercontinental Exchange, Inc. common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
5.93
|
|
|
$
|
5.86
|
|
|
$
|
1.89
|
|
|
$
|
1.92
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Diluted earnings per share
|
$
|
6.02
|
|
|
$
|
5.86
|
|
|
$
|
1.80
|
|
|
$
|
1.92
|
|
Diluted weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
74
|
|
||||
Dividend per share
|
$
|
1.95
|
|
|
$
|
—
|
|
|
$
|
0.65
|
|
|
$
|
—
|
|
|
Nine Months Ended
September 30, |
|
Three Months Ended
September 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income
|
$
|
722
|
|
|
$
|
440
|
|
|
$
|
213
|
|
|
$
|
145
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of tax expense (benefit) of ($3) and $2 for the nine months ended September 30, 2014 and 2013, respectively, and ($3) and ($1) for the three months ended September 30, 2014 and 2013, respectively
|
(194
|
)
|
|
(4
|
)
|
|
(278
|
)
|
|
40
|
|
||||
Change in fair value of available-for-sale securities
|
58
|
|
|
(61
|
)
|
|
(60
|
)
|
|
1
|
|
||||
Discontinuance of net investment hedge, net of tax benefit of $12 for the nine months ended September 30, 2014
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other comprehensive income (loss)
|
(115
|
)
|
|
(65
|
)
|
|
(338
|
)
|
|
41
|
|
||||
Comprehensive income (loss)
|
$
|
607
|
|
|
$
|
375
|
|
|
$
|
(125
|
)
|
|
$
|
186
|
|
Comprehensive income attributable to non-controlling interest
|
(29
|
)
|
|
(10
|
)
|
|
(7
|
)
|
|
(4
|
)
|
||||
Comprehensive income (loss) attributable to Intercontinental Exchange, Inc.
|
$
|
578
|
|
|
$
|
365
|
|
|
$
|
(132
|
)
|
|
$
|
182
|
|
|
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
Income (Loss)
|
|
|||||||||||||||||||||||||||
|
Shares
|
|
Value
|
|
Shares
|
|
Value
|
|
|||||||||||||||||||||||||||||
Balance, as of December 31, 2012
|
80
|
|
|
$
|
1
|
|
|
(7
|
)
|
|
$
|
(717
|
)
|
|
$
|
1,903
|
|
|
$
|
2,509
|
|
|
$
|
(52
|
)
|
|
$
|
33
|
|
|
$
|
3,677
|
|
|
$
|
—
|
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|
—
|
|
|
411
|
|
|
—
|
|
||||||||
Stock consideration issued for NYSE acquisition
|
42
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
8,347
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,294
|
|
|
—
|
|
||||||||
Exercise of common stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||||
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
||||||||
Issuance of restricted stock
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
||||||||
Tax benefits from stock option plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||||||
Adjustment to redemption value of redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
6
|
|
||||||||
Acquisition of non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
|
—
|
|
||||||||
Acquisition of redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
313
|
|
||||||||
Distributions of profits to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
—
|
|
||||||||
Purchase of subsidiary shares from non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
(37
|
)
|
|
—
|
|
||||||||
Treasury shares retired in connection with formation of ICE
|
(8
|
)
|
|
—
|
|
|
8
|
|
|
741
|
|
|
(541
|
)
|
|
(200
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends paid to shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
||||||||
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
13
|
|
|
(3
|
)
|
|
3
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|
—
|
|
||||||||
Balance, as of December 31, 2013
|
115
|
|
|
1
|
|
|
—
|
|
|
(53
|
)
|
|
9,794
|
|
|
2,482
|
|
|
359
|
|
|
32
|
|
|
12,615
|
|
|
322
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
|
—
|
|
|
(115
|
)
|
|
—
|
|
||||||||
Exercise of common stock options
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||||||
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
—
|
|
||||||||
Repurchases of common stock
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(448
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(448
|
)
|
|
—
|
|
||||||||
Tax benefits from stock option plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||||||
Adjustment to redemption value of redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
(50
|
)
|
||||||||
Distributions of profits to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|
(14
|
)
|
||||||||
Purchase of subsidiary shares from non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(129
|
)
|
||||||||
Dividends paid to shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(225
|
)
|
|
—
|
|
|
—
|
|
|
(225
|
)
|
|
—
|
|
||||||||
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
14
|
|
|
(15
|
)
|
|
15
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
722
|
|
|
—
|
|
|
—
|
|
|
722
|
|
|
—
|
|
||||||||
Balance, as of September 30, 2014
|
116
|
|
|
$
|
1
|
|
|
(3
|
)
|
|
$
|
(540
|
)
|
|
$
|
9,909
|
|
|
$
|
3,000
|
|
|
$
|
244
|
|
|
$
|
29
|
|
|
$
|
12,643
|
|
|
$
|
144
|
|
|
As of
|
|
As of
|
||||
|
September 30, 2014
|
|
December 31, 2013
|
||||
Accumulated Other Comprehensive Income was as follows:
|
|
|
|
||||
Foreign currency translation adjustments
|
$
|
183
|
|
|
$
|
377
|
|
Fair value of available-for-sale securities
|
58
|
|
|
—
|
|
||
Fair value of net investment hedge
|
—
|
|
|
(21
|
)
|
||
Employee benefit plans adjustments
|
3
|
|
|
3
|
|
||
Accumulated other comprehensive income
|
$
|
244
|
|
|
$
|
359
|
|
|
Nine Months Ended
September 30, |
||||||
|
2014
|
|
2013
|
||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
722
|
|
|
$
|
440
|
|
Less: income from discontinued operations, net of tax
|
(11
|
)
|
|
—
|
|
||
Income from continuing operations
|
711
|
|
|
440
|
|
||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
244
|
|
|
100
|
|
||
Stock-based compensation
|
73
|
|
|
42
|
|
||
Deferred taxes
|
(57
|
)
|
|
(34
|
)
|
||
Excess tax benefits from stock-based compensation
|
(23
|
)
|
|
(6
|
)
|
||
Other
|
(43
|
)
|
|
4
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Customer accounts receivable
|
(121
|
)
|
|
(48
|
)
|
||
Other current and non-current assets
|
75
|
|
|
(10
|
)
|
||
Income taxes payable
|
128
|
|
|
43
|
|
||
Deferred revenue
|
137
|
|
|
(4
|
)
|
||
Accrued salaries and benefits
|
(106
|
)
|
|
13
|
|
||
Other current and non-current liabilities
|
(96
|
)
|
|
22
|
|
||
Total adjustments
|
211
|
|
|
122
|
|
||
Net cash provided by operating activities from continuing operations
|
922
|
|
|
562
|
|
||
|
|
|
|
||||
Investing activities:
|
|
|
|
||||
Capital expenditures
|
(105
|
)
|
|
(76
|
)
|
||
Capitalized software development costs
|
(56
|
)
|
|
(28
|
)
|
||
Proceeds from sale of Euronext and sales of NYSE Technologies businesses
|
2,155
|
|
|
—
|
|
||
Cash paid for acquisitions, net of cash acquired
|
(150
|
)
|
|
(49
|
)
|
||
Proceeds from sales of available-for-sale investments
|
54
|
|
|
—
|
|
||
Purchases of available-for-sale investments
|
(1,304
|
)
|
|
(37
|
)
|
||
Increase in restricted cash and investments
|
(105
|
)
|
|
(69
|
)
|
||
Net cash provided by (used in) investing activities from continuing operations
|
489
|
|
|
(259
|
)
|
||
|
|
|
|
||||
Financing activities:
|
|
|
|
||||
Repayments of debt facilities and commercial paper, net
|
(768
|
)
|
|
(342
|
)
|
||
Dividends to shareholders
|
(225
|
)
|
|
—
|
|
||
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises
|
(39
|
)
|
|
(24
|
)
|
||
Excess tax benefits from stock-based compensation
|
23
|
|
|
6
|
|
||
Proceeds from exercise of common stock options
|
10
|
|
|
10
|
|
||
Repurchases of common stock
|
(448
|
)
|
|
—
|
|
||
Distributions of profits to non-controlling interest
|
(31
|
)
|
|
(12
|
)
|
||
Purchase of subsidiary shares from non-controlling interest
|
(129
|
)
|
|
(10
|
)
|
||
Other
|
(11
|
)
|
|
(4
|
)
|
||
Net cash used in financing activities from continuing operations
|
(1,618
|
)
|
|
(376
|
)
|
||
Net cash provided by operating activities from discontinued operations
|
51
|
|
|
—
|
|
||
Net cash used in investing activities from discontinued operations
|
(504
|
)
|
|
—
|
|
||
Net cash provided by financing activities from discontinued operations
|
339
|
|
|
—
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(2
|
)
|
|
(2
|
)
|
||
Net decrease in cash and cash equivalents
|
(323
|
)
|
|
(75
|
)
|
||
Cash and cash equivalents, beginning of period
|
961
|
|
|
1,612
|
|
||
Cash and cash equivalents, end of period
|
$
|
638
|
|
|
$
|
1,537
|
|
|
|
|
|
||||
Supplemental cash flow disclosure:
|
|
|
|
||||
Cash paid for income taxes
|
$
|
265
|
|
|
$
|
143
|
|
Cash paid for interest
|
$
|
107
|
|
|
$
|
17
|
|
1.
|
Description of Business
|
2.
|
Summary of Significant Accounting Policies
|
3.
|
Acquisitions
|
Property and equipment
|
$
|
637
|
|
Goodwill
|
7,362
|
|
|
Identifiable intangible assets
|
8,516
|
|
|
Other assets and liabilities, net
|
198
|
|
|
Deferred tax liabilities on identifiable intangible assets
|
(2,768
|
)
|
|
Short-term and long-term debt
|
(2,529
|
)
|
|
Non-controlling interests
|
(327
|
)
|
|
Total preliminary purchase price allocation
|
$
|
11,089
|
|
Preliminary Intangible Assets
|
|
Preliminary
Acquisition-Date Fair Value
|
|
Foreign Currency Translation
|
|
De-Consolidation of Euronext and NYSE Technologies (Note 13)
|
|
Accumulated Amortization
|
|
Net Book
Value
|
|
Useful Life
|
||||||||||
Exchange registrations and licenses
|
|
$
|
6,960
|
|
|
$
|
15
|
|
|
$
|
(1,258
|
)
|
|
$
|
—
|
|
|
$
|
5,717
|
|
|
Indefinite
|
Customer relationships
|
|
1,128
|
|
|
2
|
|
|
(165
|
)
|
|
(48
|
)
|
|
917
|
|
|
17-25 years
|
|||||
Trade names
|
|
315
|
|
|
—
|
|
|
(30
|
)
|
|
(4
|
)
|
|
281
|
|
|
1 year to Indefinite
|
|||||
Developed technology
|
|
113
|
|
|
—
|
|
|
(19
|
)
|
|
(30
|
)
|
|
64
|
|
|
3 years
|
|||||
Total
|
|
$
|
8,516
|
|
|
$
|
17
|
|
|
$
|
(1,472
|
)
|
|
$
|
(82
|
)
|
|
$
|
6,979
|
|
|
|
|
Nine Months Ended
September 30, 2013 |
|
Three Months Ended
September 30, 2013 |
||||
Total revenues, less transaction-based expenses
|
$
|
2,287
|
|
|
$
|
722
|
|
Operating income
|
$
|
1,091
|
|
|
$
|
334
|
|
Income from continuing operations
|
$
|
776
|
|
|
$
|
282
|
|
Income from discontinued operations, net of tax
|
$
|
134
|
|
|
$
|
35
|
|
Net income attributable to the Company
|
$
|
910
|
|
|
$
|
317
|
|
Basic earnings per common share:
|
|
|
|
||||
Continuing operations
|
$
|
6.75
|
|
|
$
|
2.46
|
|
Discontinued operations
|
1.17
|
|
|
0.30
|
|
||
Basic earnings per share
|
$
|
7.92
|
|
|
$
|
2.76
|
|
Diluted earnings per common share:
|
|
|
|
||||
Continuing operations
|
$
|
6.71
|
|
|
$
|
2.44
|
|
Discontinued operations
|
1.16
|
|
|
0.30
|
|
||
Diluted earnings per share
|
$
|
7.87
|
|
|
$
|
2.74
|
|
4.
|
Short-Term and Long-Term Restricted Cash and Investments
|
5.
|
Goodwill and Other Intangible Assets
|
Goodwill balance at December 31, 2013
|
$
|
9,501
|
|
Acquisition
|
105
|
|
|
Foreign currency translation
|
(66
|
)
|
|
De-consolidation of Euronext and NYSE Technologies and reclassification of goodwill relating to discontinued operations (Note 13)
|
(1,008
|
)
|
|
Other activity, net
|
(61
|
)
|
|
Goodwill balance at September 30, 2014
|
$
|
8,471
|
|
Other intangible assets balance at December 31, 2013
|
$
|
9,404
|
|
Acquisition
|
39
|
|
|
Foreign currency translation
|
(152
|
)
|
|
De-consolidation of Euronext and NYSE Technologies and reclassification of other intangible assets relating to discontinued operations (Note 13)
|
(1,472
|
)
|
|
Other activity, net
|
55
|
|
|
Amortization of other intangible assets
|
(120
|
)
|
|
Other intangible assets balance at September 30, 2014
|
$
|
7,754
|
|
6.
|
Debt
|
|
As of
|
|
As of
|
||||
|
September 30, 2014
|
|
December 31, 2013
|
||||
Debt:
|
|
|
|
||||
Commercial Paper
|
$
|
690
|
|
|
$
|
1,080
|
|
NYSE EUR Notes (5.375% senior unsecured notes due June 30, 2015)
|
1,199
|
|
|
—
|
|
||
2011 Credit Facilities - Term Loan Facility
|
—
|
|
|
55
|
|
||
Short-term debt
|
1,889
|
|
|
1,135
|
|
||
2018 Senior Notes (2.5% senior unsecured notes due October 15, 2018)
|
600
|
|
|
599
|
|
||
2023 Senior Notes (4.0% senior unsecured notes due October 15, 2023)
|
794
|
|
|
794
|
|
||
NYSE EUR Notes (5.375% senior unsecured notes due June 30, 2015)
|
—
|
|
|
1,353
|
|
||
NYSE USD Notes (2.0% senior unsecured notes due October 5, 2017)
|
853
|
|
|
854
|
|
||
2011 Credit Facilities - Term Loan Facility
|
—
|
|
|
323
|
|
||
Long term debt
|
2,247
|
|
|
3,923
|
|
||
Total debt
|
$
|
4,136
|
|
|
$
|
5,058
|
|
7.
|
Equity
|
|
Number of Options
|
|
Weighted Average
Exercise Price per Option |
|||
Outstanding at December 31, 2013
|
872,347
|
|
|
$
|
97.92
|
|
Granted
|
154,202
|
|
|
206.87
|
|
|
Exercised
|
(227,703
|
)
|
|
45.38
|
|
|
Outstanding at September 30, 2014
|
798,846
|
|
|
134.54
|
|
|
Number of Options
|
|
Weighted Average
Exercise Price |
|
Weighted Average
Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value (In millions) |
|||||
Vested or expected to vest
|
798,846
|
|
|
$
|
134.54
|
|
|
6.2
|
|
$
|
50
|
|
Exercisable
|
571,248
|
|
|
$
|
115.99
|
|
|
5.2
|
|
$
|
45
|
|
|
Nine Months Ended September 30,
|
||||||
Assumptions
|
2014
|
|
2013
|
||||
Risk-free interest rate
|
1.23
|
%
|
|
0.53
|
%
|
||
Expected life in years
|
5.0
|
|
|
4.0
|
|
||
Expected volatility
|
27
|
%
|
|
37
|
%
|
||
Expected dividend yield
|
1.26
|
%
|
|
0
|
%
|
||
Estimated weighted-average fair value of options granted per share
|
$
|
45.23
|
|
|
$
|
38.41
|
|
|
Number of
Restricted Stock Shares |
|
Weighted Average
Grant-Date Fair Value per Share |
||
Non-vested at December 31, 2013
|
1,234,552
|
|
$
|
147.00
|
|
Granted
|
690,736
|
|
204.51
|
|
|
Vested
|
(544,769)
|
|
136.98
|
|
|
Forfeited
|
(44,631)
|
|
152.39
|
|
|
Non-vested at September 30, 2014
|
1,335,888
|
|
180.64
|
|
8.
|
Income Taxes from Continuing Operations
|
9.
|
Clearing Organizations
|
|
ICE Clear U.S.
|
|
ICE Clear
Europe |
|
ICE Clear
Canada |
|
ICE Clear
Credit |
|
TCC
|
|
Total
|
||||||||||||
Original margin
|
$
|
3,877
|
|
|
$
|
22,067
|
|
|
$
|
59
|
|
|
$
|
14,884
|
|
|
$
|
—
|
|
|
$
|
40,887
|
|
Guaranty Fund
|
289
|
|
|
3,189
|
|
|
11
|
|
|
2,149
|
|
|
2
|
|
|
5,640
|
|
||||||
Total
|
$
|
4,166
|
|
|
$
|
25,256
|
|
|
$
|
70
|
|
|
$
|
17,033
|
|
|
$
|
2
|
|
|
$
|
46,527
|
|
|
ICE Clear U.S.
|
|
ICE Clear
Europe |
|
ICE Clear
Canada |
|
ICE Clear
Credit |
|
TCC
|
|
Total
|
||||||||||||
Original margin
|
$
|
1,642
|
|
|
$
|
22,007
|
|
|
$
|
61
|
|
|
$
|
13,274
|
|
|
$
|
—
|
|
|
$
|
36,984
|
|
Guaranty Fund
|
242
|
|
|
2,542
|
|
|
11
|
|
|
2,434
|
|
|
3
|
|
|
5,232
|
|
||||||
Total
|
$
|
1,884
|
|
|
$
|
24,549
|
|
|
$
|
72
|
|
|
$
|
15,708
|
|
|
$
|
3
|
|
|
$
|
42,216
|
|
|
As of September 30, 2014
|
|
As of December 31, 2013
|
||||||||||||||||||||||||||||||||||||
|
ICE Clear U.S.
|
|
ICE Clear
Europe |
|
ICE Clear
Canada |
|
ICE Clear
Credit |
|
TCC
|
|
ICE Clear U.S.
|
|
ICE Clear
Europe |
|
ICE Clear
Canada |
|
ICE Clear
Credit |
|
TCC
|
||||||||||||||||||||
Original margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Government securities at face value
|
$
|
7,175
|
|
|
$
|
17,047
|
|
|
$
|
124
|
|
|
$
|
2,004
|
|
|
$
|
—
|
|
|
$
|
5,011
|
|
|
$
|
15,670
|
|
|
$
|
93
|
|
|
$
|
2,620
|
|
|
$
|
—
|
|
Letters of credit
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,386
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||||||
Gold
|
—
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
$
|
7,175
|
|
|
$
|
17,139
|
|
|
$
|
128
|
|
|
$
|
2,004
|
|
|
$
|
—
|
|
|
$
|
5,011
|
|
|
$
|
17,148
|
|
|
$
|
97
|
|
|
$
|
2,620
|
|
|
$
|
—
|
|
Guaranty Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Government securities at face value
|
$
|
186
|
|
|
$
|
348
|
|
|
$
|
14
|
|
|
$
|
325
|
|
|
$
|
1
|
|
|
$
|
267
|
|
|
$
|
268
|
|
|
$
|
19
|
|
|
$
|
516
|
|
|
$
|
1
|
|
10.
|
Commitments and Contingencies
|
11.
|
Pension and Other Benefit Programs
|
|
Nine Months Ended September 30, 2014
|
|
Three Months Ended September 30, 2014
|
||||||||||||||||||||
|
Pension Plans
|
|
SERP Plans
|
|
Post-retirement Benefit Plans
|
|
Pension Plans
|
|
SERP Plans
|
|
Post-retirement Benefit Plans
|
||||||||||||
Service costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest costs
|
27
|
|
|
3
|
|
|
6
|
|
|
9
|
|
|
1
|
|
|
2
|
|
||||||
Estimated return on plan assets
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
||||||
Net periodic expense (benefit)
|
$
|
(9
|
)
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
|
$
|
2
|
|
12.
|
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 September 30, 2014
|
|
As of December 31, 2013
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||||||||
Assets at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term investments in equity securities
|
$
|
496
|
|
|
$
|
—
|
|
|
$
|
496
|
|
|
$
|
324
|
|
|
$
|
—
|
|
|
$
|
324
|
|
U.S. Treasury securities
|
374
|
|
|
—
|
|
|
374
|
|
|
100
|
|
|
—
|
|
|
100
|
|
||||||
Mutual Funds
|
24
|
|
|
—
|
|
|
24
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||
Foreign exchange derivative contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Total assets at fair value
|
$
|
894
|
|
|
$
|
—
|
|
|
$
|
894
|
|
|
$
|
457
|
|
|
$
|
4
|
|
|
$
|
461
|
|
13.
|
Discontinued Operations
|
|
Nine Months Ended September 30, 2014
|
|
Three Months Ended September 30, 2014
|
||||
Total revenues, less transaction-based expenses
|
$
|
347
|
|
|
$
|
18
|
|
Operating expenses:
|
|
|
|
||||
Compensation and benefits
|
105
|
|
|
5
|
|
||
Technology and communication
|
31
|
|
|
4
|
|
||
Professional services
|
31
|
|
|
1
|
|
||
Rent and occupancy
|
12
|
|
|
—
|
|
||
Acquisition-related transaction and integration costs
|
103
|
|
|
7
|
|
||
Selling, general, administrative
|
16
|
|
|
1
|
|
||
Depreciation and amortization
|
16
|
|
|
—
|
|
||
Total operating expenses
|
314
|
|
|
18
|
|
||
Operating income
|
33
|
|
|
—
|
|
||
Other income, net
|
5
|
|
|
—
|
|
||
Income tax expense
|
27
|
|
|
10
|
|
||
Income (loss) from discontinued operations, net of tax
|
$
|
11
|
|
|
$
|
(10
|
)
|
14.
|
Condensed Consolidating Financial Statements
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
626
|
|
|
$
|
—
|
|
|
$
|
638
|
|
Intercompany receivable
|
3,732
|
|
|
—
|
|
|
463
|
|
|
(4,195
|
)
|
|
—
|
|
|||||
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
46,527
|
|
|
—
|
|
|
46,527
|
|
|||||
Notes receivable from affiliate, current
|
—
|
|
|
420
|
|
|
26
|
|
|
(446
|
)
|
|
—
|
|
|||||
Other current assets
|
51
|
|
|
—
|
|
|
2,213
|
|
|
(51
|
)
|
|
2,213
|
|
|||||
Total current assets
|
3,795
|
|
|
420
|
|
|
49,855
|
|
|
(4,692
|
)
|
|
49,378
|
|
|||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
839
|
|
|
—
|
|
|
839
|
|
|||||
Other non-current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangible assets, net
|
—
|
|
|
—
|
|
|
16,225
|
|
|
—
|
|
|
16,225
|
|
|||||
Investment in subsidiaries
|
12,753
|
|
|
8,868
|
|
|
—
|
|
|
(21,621
|
)
|
|
—
|
|
|||||
Notes receivable from affiliate, non-current
|
—
|
|
|
2,651
|
|
|
1,493
|
|
|
(4,144
|
)
|
|
—
|
|
|||||
Other non-current assets
|
26
|
|
|
—
|
|
|
818
|
|
|
—
|
|
|
844
|
|
|||||
Total other non-current assets
|
12,779
|
|
|
11,519
|
|
|
18,536
|
|
|
(25,765
|
)
|
|
17,069
|
|
|||||
Total assets
|
$
|
16,574
|
|
|
$
|
11,939
|
|
|
$
|
69,230
|
|
|
$
|
(30,457
|
)
|
|
$
|
67,286
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt
|
$
|
690
|
|
|
$
|
1,199
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,889
|
|
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
46,527
|
|
|
—
|
|
|
46,527
|
|
|||||
Intercompany payable
|
—
|
|
|
1,657
|
|
|
2,538
|
|
|
(4,195
|
)
|
|
—
|
|
|||||
Notes payable to affiliates, current
|
353
|
|
|
—
|
|
|
93
|
|
|
(446
|
)
|
|
—
|
|
|||||
Other current liabilities
|
30
|
|
|
—
|
|
|
942
|
|
|
(51
|
)
|
|
921
|
|
|||||
Total current liabilities
|
1,073
|
|
|
2,856
|
|
|
50,100
|
|
|
(4,692
|
)
|
|
49,337
|
|
|||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
1,394
|
|
|
853
|
|
|
—
|
|
|
—
|
|
|
2,247
|
|
|||||
Notes payable to affiliates, non-current
|
1,493
|
|
|
—
|
|
|
2,651
|
|
|
(4,144
|
)
|
|
—
|
|
|||||
Other non-current liabilities
|
—
|
|
|
—
|
|
|
2,915
|
|
|
—
|
|
|
2,915
|
|
|||||
Total non-current liabilities
|
2,887
|
|
|
853
|
|
|
5,566
|
|
|
(4,144
|
)
|
|
5,162
|
|
|||||
Total liabilities
|
3,960
|
|
|
3,709
|
|
|
55,666
|
|
|
(8,836
|
)
|
|
54,499
|
|
|||||
Redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
144
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Retained earnings
|
3,000
|
|
|
379
|
|
|
781
|
|
|
(1,160
|
)
|
|
3,000
|
|
|||||
Equity from parent
|
—
|
|
|
8,893
|
|
|
12,291
|
|
|
(21,184
|
)
|
|
—
|
|
|||||
Other shareholders' equity
|
9,614
|
|
|
(1,042
|
)
|
|
319
|
|
|
723
|
|
|
9,614
|
|
|||||
Total shareholders' equity
|
12,614
|
|
|
8,230
|
|
|
13,391
|
|
|
(21,621
|
)
|
|
12,614
|
|
|||||
Non-controlling interest in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
29
|
|
|||||
Total equity
|
12,614
|
|
|
8,230
|
|
|
13,420
|
|
|
(21,621
|
)
|
|
12,643
|
|
|||||
Total liabilities and equity
|
$
|
16,574
|
|
|
$
|
11,939
|
|
|
$
|
69,230
|
|
|
$
|
(30,457
|
)
|
|
$
|
67,286
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
959
|
|
|
$
|
—
|
|
|
$
|
961
|
|
Intercompany receivable
|
1,395
|
|
|
2,398
|
|
|
—
|
|
|
(3,793
|
)
|
|
—
|
|
|||||
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
42,216
|
|
|
—
|
|
|
42,216
|
|
|||||
Note receivable from affiliate, current
|
—
|
|
|
—
|
|
|
28
|
|
|
(28
|
)
|
|
—
|
|
|||||
Other current assets
|
4
|
|
|
1
|
|
|
1,077
|
|
|
—
|
|
|
1,082
|
|
|||||
Total current assets
|
1,401
|
|
|
2,399
|
|
|
44,280
|
|
|
(3,821
|
)
|
|
44,259
|
|
|||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
891
|
|
|
—
|
|
|
891
|
|
|||||
Other non-current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangible assets, net
|
—
|
|
|
—
|
|
|
18,905
|
|
|
—
|
|
|
18,905
|
|
|||||
Investment in subsidiaries
|
14,019
|
|
|
11,383
|
|
|
3,637
|
|
|
(29,039
|
)
|
|
—
|
|
|||||
Note receivable from affiliate, non-current
|
—
|
|
|
—
|
|
|
597
|
|
|
(597
|
)
|
|
—
|
|
|||||
Other non-current assets
|
14
|
|
|
11
|
|
|
745
|
|
|
(7
|
)
|
|
763
|
|
|||||
Total other non-current assets
|
14,033
|
|
|
11,394
|
|
|
23,884
|
|
|
(29,643
|
)
|
|
19,668
|
|
|||||
Total assets
|
$
|
15,434
|
|
|
$
|
13,793
|
|
|
$
|
69,055
|
|
|
$
|
(33,464
|
)
|
|
$
|
64,818
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt
|
$
|
1,080
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
1,135
|
|
Margin deposits and guaranty funds
|
—
|
|
|
—
|
|
|
42,216
|
|
|
—
|
|
|
42,216
|
|
|||||
Intercompany payable
|
—
|
|
|
—
|
|
|
3,793
|
|
|
(3,793
|
)
|
|
—
|
|
|||||
Notes payable to affiliates, current
|
—
|
|
|
—
|
|
|
28
|
|
|
(28
|
)
|
|
—
|
|
|||||
Other current liabilities
|
20
|
|
|
—
|
|
|
971
|
|
|
—
|
|
|
991
|
|
|||||
Total current liabilities
|
1,100
|
|
|
—
|
|
|
47,063
|
|
|
(3,821
|
)
|
|
44,342
|
|
|||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
1,393
|
|
|
2,206
|
|
|
324
|
|
|
—
|
|
|
3,923
|
|
|||||
Notes payable to affiliates, non-current
|
358
|
|
|
239
|
|
|
—
|
|
|
(597
|
)
|
|
—
|
|
|||||
Other non-current liabilities
|
—
|
|
|
—
|
|
|
3,623
|
|
|
(7
|
)
|
|
3,616
|
|
|||||
Total non-current liabilities
|
1,751
|
|
|
2,445
|
|
|
3,947
|
|
|
(604
|
)
|
|
7,539
|
|
|||||
Total liabilities
|
2,851
|
|
|
2,445
|
|
|
51,010
|
|
|
(4,425
|
)
|
|
51,881
|
|
|||||
Redeemable non-controlling interest
|
—
|
|
|
—
|
|
|
322
|
|
|
—
|
|
|
322
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Retained earnings
|
2,482
|
|
|
(20
|
)
|
|
654
|
|
|
(634
|
)
|
|
2,482
|
|
|||||
Equity from parent
|
—
|
|
|
11,089
|
|
|
16,582
|
|
|
(27,671
|
)
|
|
—
|
|
|||||
Other shareholders' equity
|
10,101
|
|
|
279
|
|
|
455
|
|
|
(734
|
)
|
|
10,101
|
|
|||||
Total shareholders' equity
|
12,583
|
|
|
11,348
|
|
|
17,691
|
|
|
(29,039
|
)
|
|
12,583
|
|
|||||
Non-controlling interest in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|||||
Total equity
|
12,583
|
|
|
11,348
|
|
|
17,723
|
|
|
(29,039
|
)
|
|
12,615
|
|
|||||
Total liabilities and equity
|
$
|
15,434
|
|
|
$
|
13,793
|
|
|
$
|
69,055
|
|
|
$
|
(33,464
|
)
|
|
$
|
64,818
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction and clearing fees, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,190
|
|
|
$
|
—
|
|
|
$
|
2,190
|
|
Market data fees
|
—
|
|
|
—
|
|
|
304
|
|
|
—
|
|
|
304
|
|
|||||
Listing fees and other revenues
|
—
|
|
|
—
|
|
|
583
|
|
|
—
|
|
|
583
|
|
|||||
Intercompany revenues
|
—
|
|
|
—
|
|
|
5
|
|
|
(5
|
)
|
|
—
|
|
|||||
Total revenues
|
—
|
|
|
—
|
|
|
3,082
|
|
|
(5
|
)
|
|
3,077
|
|
|||||
Transaction-based expenses
|
—
|
|
|
—
|
|
|
785
|
|
|
—
|
|
|
785
|
|
|||||
Total revenues, less transaction-based expenses
|
—
|
|
|
—
|
|
|
2,297
|
|
|
(5
|
)
|
|
2,292
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
1
|
|
|
—
|
|
|
447
|
|
|
—
|
|
|
448
|
|
|||||
Technology and communication
|
—
|
|
|
—
|
|
|
136
|
|
|
—
|
|
|
136
|
|
|||||
Acquisition-related transaction and integration costs
|
—
|
|
|
9
|
|
|
93
|
|
|
—
|
|
|
102
|
|
|||||
Selling, general, administrative and other
|
—
|
|
|
—
|
|
|
314
|
|
|
—
|
|
|
314
|
|
|||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
244
|
|
|
—
|
|
|
244
|
|
|||||
Intercompany expenses
|
—
|
|
|
—
|
|
|
5
|
|
|
(5
|
)
|
|
—
|
|
|||||
Total operating expenses
|
1
|
|
|
9
|
|
|
1,239
|
|
|
(5
|
)
|
|
1,244
|
|
|||||
Operating income (loss)
|
(1
|
)
|
|
(9
|
)
|
|
1,058
|
|
|
—
|
|
|
1,048
|
|
|||||
Total other income (expense), net
|
(16
|
)
|
|
(69
|
)
|
|
32
|
|
|
—
|
|
|
(53
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
(17
|
)
|
|
(78
|
)
|
|
1,090
|
|
|
—
|
|
|
995
|
|
|||||
Income tax expense (benefit)
|
(6
|
)
|
|
—
|
|
|
290
|
|
|
—
|
|
|
284
|
|
|||||
Equity earnings from subsidiaries
|
704
|
|
|
457
|
|
|
—
|
|
|
(1,161
|
)
|
|
—
|
|
|||||
Income from continuing operations
|
693
|
|
|
379
|
|
|
800
|
|
|
(1,161
|
)
|
|
711
|
|
|||||
Income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Net income
|
$
|
693
|
|
|
$
|
379
|
|
|
$
|
811
|
|
|
$
|
(1,161
|
)
|
|
$
|
722
|
|
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
|||||
Net income attributable to ICE
|
$
|
693
|
|
|
$
|
379
|
|
|
$
|
782
|
|
|
$
|
(1,161
|
)
|
|
$
|
693
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Net income
|
$
|
693
|
|
|
$
|
379
|
|
|
$
|
811
|
|
|
$
|
(1,161
|
)
|
|
$
|
722
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
—
|
|
|
1
|
|
|
(195
|
)
|
|
—
|
|
|
(194
|
)
|
|||||
Change in fair value of available-for-sale-securities
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
58
|
|
|||||
Change in fair value of net investment hedge
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|||||
Total other comprehensive income (loss)
|
—
|
|
|
1
|
|
|
(116
|
)
|
|
—
|
|
|
(115
|
)
|
|||||
Comprehensive income of subsidiaries
|
1,046
|
|
|
331
|
|
|
—
|
|
|
(1,377
|
)
|
|
—
|
|
|||||
Comprehensive income
|
1,739
|
|
|
711
|
|
|
695
|
|
|
(2,538
|
)
|
|
607
|
|
|||||
Comprehensive income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
|||||
Comprehensive income attributable to ICE
|
$
|
1,739
|
|
|
$
|
711
|
|
|
$
|
666
|
|
|
$
|
(2,538
|
)
|
|
$
|
578
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction and clearing fees, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
708
|
|
|
$
|
—
|
|
|
$
|
708
|
|
Market data fees
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
105
|
|
|||||
Listing fees and other revenues
|
—
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
|||||
Intercompany revenues
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||||
Total revenues
|
—
|
|
|
—
|
|
|
1,007
|
|
|
(1
|
)
|
|
1,006
|
|
|||||
Transaction-based expenses
|
—
|
|
|
—
|
|
|
261
|
|
|
—
|
|
|
261
|
|
|||||
Total revenues, less transaction-based expenses
|
—
|
|
|
—
|
|
|
746
|
|
|
(1
|
)
|
|
745
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
144
|
|
|||||
Technology and communication
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
46
|
|
|||||
Acquisition-related transaction and integration costs
|
—
|
|
|
5
|
|
|
35
|
|
|
—
|
|
|
40
|
|
|||||
Selling, general, administrative and other
|
—
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
102
|
|
|||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
83
|
|
|||||
Intercompany expenses
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||||
Total operating expenses
|
—
|
|
|
5
|
|
|
411
|
|
|
(1
|
)
|
|
415
|
|
|||||
Operating income (loss)
|
—
|
|
|
(5
|
)
|
|
335
|
|
|
—
|
|
|
330
|
|
|||||
Total other income (expense), net
|
8
|
|
|
(41
|
)
|
|
16
|
|
|
—
|
|
|
(17
|
)
|
|||||
Income (loss) from continuing operations before income taxes
|
8
|
|
|
(46
|
)
|
|
351
|
|
|
—
|
|
|
313
|
|
|||||
Income tax expense (benefit)
|
8
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
90
|
|
|||||
Equity earnings from subsidiaries
|
206
|
|
|
81
|
|
|
—
|
|
|
(287
|
)
|
|
—
|
|
|||||
Income from continuing operations
|
206
|
|
|
35
|
|
|
269
|
|
|
(287
|
)
|
|
223
|
|
|||||
Loss from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||
Net income
|
$
|
206
|
|
|
$
|
35
|
|
|
$
|
259
|
|
|
$
|
(287
|
)
|
|
$
|
213
|
|
Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Net income attributable to ICE
|
$
|
206
|
|
|
$
|
35
|
|
|
$
|
252
|
|
|
$
|
(287
|
)
|
|
$
|
206
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE |
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Net income
|
$
|
206
|
|
|
$
|
35
|
|
|
$
|
259
|
|
|
$
|
(287
|
)
|
|
$
|
213
|
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
(278
|
)
|
|
—
|
|
|
(278
|
)
|
|||||
Change in fair value of available-for-sale-securities
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
(60
|
)
|
|||||
Total other comprehensive loss
|
—
|
|
|
—
|
|
|
(338
|
)
|
|
—
|
|
|
(338
|
)
|
|||||
Comprehensive income of subsidiaries
|
(51
|
)
|
|
(100
|
)
|
|
—
|
|
|
151
|
|
|
—
|
|
|||||
Comprehensive income (loss)
|
155
|
|
|
(65
|
)
|
|
(79
|
)
|
|
(136
|
)
|
|
(125
|
)
|
|||||
Comprehensive income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||||
Comprehensive income (loss) attributable to ICE
|
$
|
155
|
|
|
$
|
(65
|
)
|
|
$
|
(86
|
)
|
|
$
|
(136
|
)
|
|
$
|
(132
|
)
|
|
ICE
(Parent)
|
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Transaction and clearing fees, net
|
$
|
—
|
|
|
$
|
899
|
|
|
$
|
—
|
|
|
$
|
899
|
|
Market data fees
|
—
|
|
|
121
|
|
|
—
|
|
|
121
|
|
||||
Other revenues
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
||||
Intercompany revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total revenues
|
—
|
|
|
1,062
|
|
|
—
|
|
|
1,062
|
|
||||
Transaction-based expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total revenues, less transaction-based expenses
|
—
|
|
|
1,062
|
|
|
—
|
|
|
1,062
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
||||
Technology and communication
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||
Acquisition-related transaction costs
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||
Selling, general, administrative and other
|
—
|
|
|
74
|
|
|
—
|
|
|
74
|
|
||||
Depreciation and amortization
|
—
|
|
|
100
|
|
|
—
|
|
|
100
|
|
||||
Intercompany expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total operating expenses
|
—
|
|
|
435
|
|
|
—
|
|
|
435
|
|
||||
Operating income
|
—
|
|
|
627
|
|
|
—
|
|
|
627
|
|
||||
Total other expense, net
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
||||
Income from continuing operations before income taxes
|
—
|
|
|
601
|
|
|
—
|
|
|
601
|
|
||||
Income tax expense
|
—
|
|
|
161
|
|
|
—
|
|
|
161
|
|
||||
Equity earnings from subsidiaries
|
430
|
|
|
—
|
|
|
(430
|
)
|
|
—
|
|
||||
Income from continuing operations
|
430
|
|
|
440
|
|
|
(430
|
)
|
|
440
|
|
||||
Income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
$
|
430
|
|
|
$
|
440
|
|
|
$
|
(430
|
)
|
|
$
|
440
|
|
Net income attributable to non-controlling interest
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||
Net income attributable to ICE
|
$
|
430
|
|
|
$
|
430
|
|
|
$
|
(430
|
)
|
|
$
|
430
|
|
|
ICE
(Parent)
|
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
|||||||
Net income
|
$
|
430
|
|
|
440
|
|
|
$
|
(430
|
)
|
|
$
|
440
|
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|||||||
Foreign currency translation adjustments
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Change in fair value of available-for-sale-securities
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
(61
|
)
|
|||
Total other comprehensive loss
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|||
Comprehensive income of subsidiaries
|
365
|
|
|
—
|
|
|
(365
|
)
|
|
—
|
|
|||
Comprehensive income
|
795
|
|
|
375
|
|
|
(795
|
)
|
|
375
|
|
|||
Comprehensive income attributable to non-controlling interests
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||
Comprehensive income attributable to ICE
|
$
|
795
|
|
|
365
|
|
|
$
|
(795
|
)
|
|
$
|
365
|
|
|
ICE
(Parent)
|
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Transaction and clearing fees, net
|
$
|
—
|
|
|
$
|
280
|
|
|
$
|
—
|
|
|
$
|
280
|
|
Market data fees
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
||||
Other revenues
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||
Intercompany revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total revenues
|
—
|
|
|
338
|
|
|
—
|
|
|
338
|
|
||||
Transaction-based expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total revenues, less transaction-based expenses
|
—
|
|
|
338
|
|
|
—
|
|
|
338
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|||||
Compensation and benefits
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
||||
Technology and communication
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||
Acquisition-related transaction costs
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||
Selling, general, administrative and other
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||
Depreciation and amortization
|
—
|
|
|
35
|
|
|
—
|
|
|
35
|
|
||||
Intercompany expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total operating expenses
|
—
|
|
|
136
|
|
|
—
|
|
|
136
|
|
||||
Operating income
|
—
|
|
|
202
|
|
|
—
|
|
|
202
|
|
||||
Total other expense, net
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Income from continuing operations before income taxes
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
||||
Income tax expense
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
||||
Equity earnings from subsidiaries
|
141
|
|
|
—
|
|
|
(141
|
)
|
|
—
|
|
||||
Income from continuing operations
|
141
|
|
|
145
|
|
|
(141
|
)
|
|
145
|
|
||||
Income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income
|
$
|
141
|
|
|
$
|
145
|
|
|
$
|
(141
|
)
|
|
$
|
145
|
|
Net income attributable to non-controlling interest
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Net income attributable to ICE
|
$
|
141
|
|
|
$
|
141
|
|
|
$
|
(141
|
)
|
|
$
|
141
|
|
|
ICE
(Parent)
|
|
Subsidiary
Non-Guarantors |
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Net income
|
$
|
141
|
|
|
$
|
145
|
|
|
$
|
(141
|
)
|
|
$
|
145
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
||||
Change in fair value of available-for-sale-securities
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total other comprehensive loss
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||
Comprehensive income of subsidiaries
|
182
|
|
|
—
|
|
|
(182
|
)
|
|
—
|
|
||||
Comprehensive income
|
323
|
|
|
186
|
|
|
(323
|
)
|
|
186
|
|
||||
Comprehensive income attributable to non-controlling interests
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Comprehensive income attributable to ICE
|
$
|
323
|
|
|
$
|
182
|
|
|
$
|
(323
|
)
|
|
$
|
182
|
|
|
ICE
(Parent)
|
|
Subsidiary
Guarantor - NYSE |
|
Subsidiary
Non-Guarantors
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||||
Net cash provided by operating activities from continuing operations
|
$
|
176
|
|
|
$
|
347
|
|
|
$
|
484
|
|
|
$
|
(85
|
)
|
|
$
|
922
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Increase in restricted cash
|
—
|
|
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
(105
|
)
|
|||||
Cash paid for acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
—
|
|
|
(150
|
)
|
|||||
Loans to subsidiaries and parent
|
—
|
|
|
(108
|
)
|
|
(698
|
)
|
|
806
|
|
|
—
|
|
|||||
Proceeds from sale of Euronext and sales of NYSE Technologies businesses
|
—
|
|
|
—
|
|
|
2,155
|
|
|
—
|
|
|
2,155
|
|
|||||
Proceeds of available-for-sale investments, net
|
—
|
|
|
—
|
|
|
(1,250
|
)
|
|
—
|
|
|
(1,250
|
)
|
|||||
Capital expenditures, capitalized software development costs and other
|
—
|
|
|
—
|
|
|
(161
|
)
|
|
—
|
|
|
(161
|
)
|
|||||
Net cash provided by (used in) investing activities from continuing operations
|
—
|
|
|
(108
|
)
|
|
(209
|
)
|
|
806
|
|
|
489
|
|
|||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of debt facilities and issuance costs for debt facilities
|
(400
|
)
|
|
—
|
|
|
(368
|
)
|
|
—
|
|
|
(768
|
)
|
|||||
Intercompany borrowing
|
937
|
|
|
(239
|
)
|
|
108
|
|
|
(806
|
)
|
|
—
|
|
|||||
Dividends to shareholders
|
(225
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(225
|
)
|
|||||
Intercompany dividends
|
—
|
|
|
—
|
|
|
(85
|
)
|
|
85
|
|
|
—
|
|
|||||
Repurchase of common stock
|
(448
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(448
|
)
|
|||||
Other financing activities
|
(30
|
)
|
|
—
|
|
|
(147
|
)
|
|
—
|
|
|
(177
|
)
|
|||||
Net cash used in financing activities from continuing operations
|
(166
|
)
|
|
(239
|
)
|
|
(492
|
)
|
|
(721
|
)
|
|
(1,618
|
)
|
|||||
Cash and cash equivalents from discontinued operations
|
—
|
|
|
—
|
|
|
(114
|
)
|
|
—
|
|
|
(114
|
)
|
|||||
Effect of exchange rates on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
10
|
|
|
—
|
|
|
(333
|
)
|
|
—
|
|
|
(323
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
2
|
|
|
—
|
|
|
959
|
|
|
—
|
|
|
961
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
626
|
|
|
$
|
—
|
|
|
$
|
638
|
|
|
ICE
(Parent)
|
|
Subsidiary
Non-Guarantors
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Net cash provided by operating activities
|
$
|
8
|
|
|
$
|
554
|
|
|
$
|
—
|
|
|
$
|
562
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Increase in restricted cash
|
—
|
|
|
(69
|
)
|
|
—
|
|
|
(69
|
)
|
||||
Cash paid for acquisitions, net of cash acquired
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
(49
|
)
|
||||
Purchase of available-for-sale investments
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(37
|
)
|
||||
Capital expenditures and capitalized software development costs
|
—
|
|
|
(104
|
)
|
|
—
|
|
|
(104
|
)
|
||||
Net cash used in investing activities
|
—
|
|
|
(259
|
)
|
|
—
|
|
|
(259
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Repayments of debt facilities
|
—
|
|
|
(342
|
)
|
|
—
|
|
|
(342
|
)
|
||||
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
||||
Other financing activities
|
16
|
|
|
(26
|
)
|
|
—
|
|
|
(10
|
)
|
||||
Net cash used in financing activities
|
(8
|
)
|
|
(368
|
)
|
|
—
|
|
|
(376
|
)
|
||||
Effect of exchange rates on cash and cash equivalents
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Net decrease in cash and cash equivalents
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
1,612
|
|
|
—
|
|
|
1,612
|
|
||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
1,537
|
|
|
$
|
—
|
|
|
$
|
1,537
|
|
15.
|
Earnings Per Common Share
|
|
Nine Months Ended
September 30, |
|
Three Months Ended September 30,
|
||||||||||||
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||
Income from continuing operations
|
$
|
711
|
|
|
$
|
440
|
|
|
$
|
223
|
|
|
$
|
145
|
|
Net income from continuing operations attributable to non-controlling interest
|
(29
|
)
|
|
(10
|
)
|
|
(7
|
)
|
|
(4
|
)
|
||||
Net income from continuing operations attributable to ICE
|
682
|
|
|
430
|
|
|
216
|
|
|
141
|
|
||||
Net income (loss) from discontinued operations attributable to ICE
|
11
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
||||
Net income attributable to ICE
|
$
|
693
|
|
|
$
|
430
|
|
|
$
|
206
|
|
|
$
|
141
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share attributable to ICE common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
5.96
|
|
|
$
|
5.91
|
|
|
$
|
1.90
|
|
|
$
|
1.94
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Basic earnings per share
|
$
|
6.05
|
|
|
$
|
5.91
|
|
|
$
|
1.81
|
|
|
$
|
1.94
|
|
Basic weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
73
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share attributable to ICE common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
5.93
|
|
|
$
|
5.86
|
|
|
$
|
1.89
|
|
|
$
|
1.92
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Diluted earnings per share
|
$
|
6.02
|
|
|
$
|
5.86
|
|
|
$
|
1.80
|
|
|
$
|
1.92
|
|
Diluted weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
74
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
73
|
|
||||
Effect of dilutive securities - stock options and restricted stock
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Diluted weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
74
|
|
16.
|
Subsequent Events
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Nine Months Ended September 30,
|
|
|
|
Three Months Ended September 30,
|
|
|
||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Total revenues, less transaction-based expenses
|
$
|
2,292
|
|
|
$
|
1,062
|
|
|
116
|
%
|
|
$
|
745
|
|
|
$
|
338
|
|
|
121
|
%
|
Total operating expenses
|
$
|
1,244
|
|
|
$
|
435
|
|
|
186
|
%
|
|
$
|
415
|
|
|
$
|
136
|
|
|
206
|
%
|
Adjusted operating expenses
(1)
|
$
|
1,146
|
|
|
$
|
397
|
|
|
189
|
%
|
|
$
|
377
|
|
|
$
|
131
|
|
|
189
|
%
|
Operating income
|
$
|
1,048
|
|
|
$
|
627
|
|
|
67
|
%
|
|
$
|
330
|
|
|
$
|
202
|
|
|
63
|
%
|
Adjusted operating income
(1)
|
$
|
1,146
|
|
|
$
|
665
|
|
|
72
|
%
|
|
$
|
368
|
|
|
$
|
207
|
|
|
77
|
%
|
Operating margin
|
46
|
%
|
|
59
|
%
|
|
(13 pts)
|
|
|
44
|
%
|
|
60
|
%
|
|
(16 pts)
|
|
||||
Adjusted operating margin
(1)
|
50
|
%
|
|
63
|
%
|
|
(13 pts)
|
|
|
49
|
%
|
|
61
|
%
|
|
(12 pts)
|
|
||||
Other expense, net
|
$
|
53
|
|
|
$
|
26
|
|
|
100
|
%
|
|
$
|
17
|
|
|
$
|
9
|
|
|
72
|
%
|
Income tax expense
|
$
|
284
|
|
|
$
|
161
|
|
|
77
|
%
|
|
$
|
90
|
|
|
$
|
48
|
|
|
89
|
%
|
Effective tax rate
|
29
|
%
|
|
27
|
%
|
|
2 pts
|
|
|
29
|
%
|
|
25
|
%
|
|
4 pts
|
|
||||
Income from continuing operations
|
$
|
711
|
|
|
$
|
440
|
|
|
62
|
%
|
|
$
|
223
|
|
|
$
|
145
|
|
|
54
|
%
|
Income (loss) from discontinued operations, net of tax
|
$
|
11
|
|
|
$
|
—
|
|
|
n/a
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
n/a
|
|
Net income attributable to ICE
|
$
|
693
|
|
|
$
|
430
|
|
|
61
|
%
|
|
$
|
206
|
|
|
$
|
141
|
|
|
46
|
%
|
Adjusted net income attributable to ICE
(1)
|
$
|
763
|
|
|
$
|
454
|
|
|
68
|
%
|
|
$
|
235
|
|
|
$
|
144
|
|
|
63
|
%
|
Diluted earnings per share attributable to ICE common shareholders
|
$
|
6.02
|
|
|
$
|
5.86
|
|
|
3
|
%
|
|
$
|
1.80
|
|
|
$
|
1.92
|
|
|
(6
|
)%
|
Adjusted diluted earnings per share attributable to ICE common shareholders
(1)
|
$
|
6.62
|
|
|
$
|
6.19
|
|
|
7
|
%
|
|
$
|
2.06
|
|
|
$
|
1.97
|
|
|
5
|
%
|
Cash flows from operating activities of continuing operations
|
$
|
922
|
|
|
$
|
562
|
|
|
64
|
%
|
|
|
|
|
|
|
•
|
Total revenues, less transaction-based expenses, increased $1.23 billion and $407 million for the
nine and three months ended
September 30, 2014
, respectively, from the comparable periods in
2013
, primarily due to $1.28 billion and $403 million in revenues, less transaction-based expenses, recognized relating to the inclusion of NYSE for the
nine and three months ended
September 30, 2014
(subsequent to its acquisition on November 13, 2013). The NYSE increases for the nine months ended September 30, 2014 were partially offset by decreases in certain energy futures and options transaction and clearing revenues compared to the prior year period. See “- Consolidated Revenues” below. Total revenues, less transaction-based expenses, exclude Euronext and NYSE Technologies revenues which are included in income from discontinued operations discussed below.
|
•
|
Total operating expenses increased $739 million and $245 million for the
nine and three months ended
September 30, 2014
, respectively, from the comparable periods in
2013
(excluding the acquisition-related transaction and integration costs), primarily due to $696 million and $220 million in expenses recognized relating to the inclusion of NYSE for the
nine and three months ended
September 30, 2014
, respectively. Acquisition-related transaction and integration costs increased $70 million and $34 million for the
nine and three months ended
September 30, 2014
, respectively, from the comparable periods in
2013
, to $102 million and $40 million for the
nine and three months ended
September 30, 2014
, respectively, primarily related to our integration of NYSE. See “- Operating Expenses” below. Total operating expenses exclude Euronext and NYSE Technologies operating expenses which are included in income from discontinued operations discussed below.
|
•
|
Other expense, net, increased for the nine and three months ended September 30, 2014, from the comparable periods in
2013
, primarily due to an increase in our interest expense resulting from an increase in our total debt outstanding, partially offset by an increase in dividend income received relating to our investment in Cetip. See “- Non-Operating Income (Expenses)” below.
|
•
|
Income from discontinued operations, net of tax, for the nine months and three months ended September 30, 2014 includes the results of Euronext and NYSE Technologies. See “- Discontinued Operations” below.
|
|
Nine Months Ended September 30,
|
|
|
|
Three Months Ended September 30,
|
|
|
||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas futures and options contracts
|
$
|
141
|
|
|
$
|
155
|
|
|
(9
|
)%
|
|
$
|
44
|
|
|
$
|
44
|
|
|
(1
|
)%
|
Brent crude futures and options contracts
|
166
|
|
|
178
|
|
|
(7
|
)
|
|
62
|
|
|
58
|
|
|
7
|
|
||||
Gasoil futures and options contracts
|
61
|
|
|
75
|
|
|
(18
|
)
|
|
20
|
|
|
24
|
|
|
(19
|
)
|
||||
Other oil futures and options contracts
|
70
|
|
|
75
|
|
|
(6
|
)
|
|
25
|
|
|
25
|
|
|
1
|
|
||||
Power futures and options contracts
|
57
|
|
|
56
|
|
|
2
|
|
|
18
|
|
|
17
|
|
|
8
|
|
||||
Emissions and other energy futures and options contracts
|
54
|
|
|
53
|
|
|
2
|
|
|
15
|
|
|
15
|
|
|
2
|
|
||||
Sugar futures and options contracts
|
79
|
|
|
72
|
|
|
9
|
|
|
26
|
|
|
23
|
|
|
9
|
|
||||
Other agricultural and metals futures and options contracts
|
73
|
|
|
62
|
|
|
20
|
|
|
22
|
|
|
16
|
|
|
39
|
|
||||
Interest rates futures and options contracts
|
215
|
|
|
—
|
|
|
n/a
|
|
60
|
|
|
—
|
|
|
n/a
|
||||||
Other financial futures and options contracts
|
90
|
|
|
29
|
|
|
205
|
|
|
28
|
|
|
9
|
|
|
212
|
|
||||
Credit default swaps
|
122
|
|
|
111
|
|
|
10
|
|
|
38
|
|
|
38
|
|
|
—
|
|
||||
U.S. cash equities and U.S. equity options
|
1,023
|
|
|
—
|
|
|
n/a
|
|
339
|
|
|
—
|
|
|
n/a
|
||||||
Other
|
39
|
|
|
33
|
|
|
14
|
|
|
11
|
|
|
11
|
|
|
13
|
|
||||
Transaction and clearing fees, net
|
2,190
|
|
|
899
|
|
|
144
|
|
|
708
|
|
|
280
|
|
|
153
|
|
||||
Market data fees
|
304
|
|
|
121
|
|
|
150
|
|
|
105
|
|
|
40
|
|
|
162
|
|
||||
Listing fees
|
251
|
|
|
—
|
|
|
n/a
|
|
86
|
|
|
—
|
|
|
n/a
|
||||||
Other revenues
|
332
|
|
|
42
|
|
|
696
|
|
|
107
|
|
|
18
|
|
|
498
|
|
||||
Total revenues
|
3,077
|
|
|
1,062
|
|
|
190
|
|
|
1,006
|
|
|
338
|
|
|
198
|
|
||||
Transaction-based expenses
|
785
|
|
|
—
|
|
|
n/a
|
|
261
|
|
|
—
|
|
|
n/a
|
||||||
Total revenues, less transaction-based expenses
|
$
|
2,292
|
|
|
$
|
1,062
|
|
|
116
|
%
|
|
$
|
745
|
|
|
$
|
338
|
|
|
121
|
%
|
|
Nine Months Ended September 30,
|
|
|
|
Three Months Ended September 30,
|
|
|
||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Number of contracts traded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas futures and options
|
167
|
|
|
226
|
|
|
(26
|
)%
|
|
50
|
|
|
62
|
|
|
(19
|
)%
|
||||
Brent crude futures and options
|
125
|
|
|
130
|
|
|
(3
|
)
|
|
47
|
|
|
43
|
|
|
8
|
|
||||
Gasoil futures and options
|
40
|
|
|
51
|
|
|
(21
|
)
|
|
13
|
|
|
16
|
|
|
(22
|
)
|
||||
Other oil futures and options
|
50
|
|
|
49
|
|
|
3
|
|
|
18
|
|
|
17
|
|
|
5
|
|
||||
Power futures and options
(1)
|
21
|
|
|
24
|
|
|
(13
|
)
|
|
6
|
|
|
7
|
|
|
(12
|
)
|
||||
Emissions and other energy futures and options
|
8
|
|
|
8
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
7
|
|
||||
Sugar futures and options
|
31
|
|
|
28
|
|
|
9
|
|
|
9
|
|
|
9
|
|
|
—
|
|
||||
Other agricultural and metals futures and options
|
33
|
|
|
24
|
|
|
39
|
|
|
10
|
|
|
7
|
|
|
46
|
|
||||
Interest rates futures and options
|
336
|
|
|
—
|
|
|
n/a
|
|
89
|
|
|
—
|
|
|
n/a
|
||||||
Other financial futures and options
|
188
|
|
|
29
|
|
|
524
|
|
|
56
|
|
|
10
|
|
|
518
|
|
||||
Total
|
999
|
|
|
569
|
|
|
76
|
%
|
|
300
|
|
|
173
|
|
|
74
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rate per contract:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy futures and options rate per contract
|
$
|
1.33
|
|
|
$
|
1.21
|
|
|
10
|
%
|
|
$
|
1.35
|
|
|
$
|
1.24
|
|
|
9
|
%
|
Agricultural and metals futures and options rate per contract
(2)
|
$
|
2.39
|
|
|
$
|
2.56
|
|
|
(7
|
)%
|
|
$
|
2.52
|
|
|
$
|
2.49
|
|
|
1
|
%
|
Interest rates and other financial futures and options rate per contract
(2)
|
$
|
0.59
|
|
|
$
|
0.99
|
|
|
(41
|
)%
|
|
$
|
0.62
|
|
|
$
|
1.01
|
|
|
(38
|
)%
|
|
As of September 30,
|
|
|
|||||
|
2014
|
|
2013
|
|
Change
|
|||
Open interest — in millions of contracts:
|
|
|
|
|
|
|||
Natural gas futures and options
|
20
|
|
|
27
|
|
|
(25
|
)%
|
Brent crude futures and options
|
3
|
|
|
3
|
|
|
10
|
|
Gasoil futures and options
|
1
|
|
|
1
|
|
|
(12
|
)
|
Other oil futures and options
|
5
|
|
|
4
|
|
|
9
|
|
Power futures and options
|
8
|
|
|
8
|
|
|
(8
|
)
|
Emissions and other energy futures and options
|
2
|
|
|
2
|
|
|
10
|
|
Sugar futures and options
|
1
|
|
|
1
|
|
|
8
|
|
Other agricultural and metals futures and options
|
2
|
|
|
1
|
|
|
55
|
|
Interest rates futures and options
|
18
|
|
|
—
|
|
|
n/a
|
|
Other financial futures and options
|
16
|
|
|
1
|
|
|
3,369
|
|
Total
|
76
|
|
|
48
|
|
|
60
|
%
|
|
Nine Months Ended September 30, 2014
|
|
Three Months Ended September 30, 2014
|
||
U.S. cash products (shares in millions):
|
|
|
|
||
NYSE listed (tape A) issues:
|
|
|
|
||
Handled volume
|
1,016
|
|
|
953
|
|
Matched volume
|
993
|
|
|
934
|
|
Total NYSE listed consolidated volume
|
3,268
|
|
|
3,022
|
|
Share of total matched consolidated volume
|
30
|
%
|
|
31
|
%
|
NYSE Arca, NYSE MKT and regional listed (tape B) issues:
|
|
|
|
||
Handled volume
|
235
|
|
|
220
|
|
Matched volume
|
222
|
|
|
208
|
|
Total NYSE Arca, NYSE MKT and regional listed consolidated volume
|
1,015
|
|
|
919
|
|
Share of total matched consolidated volume
|
22
|
%
|
|
23
|
%
|
Nasdaq listed (tape C) issues:
|
|
|
|
||
Handled volume
|
200
|
|
|
186
|
|
Matched volume
|
184
|
|
|
173
|
|
Total Nasdaq listed consolidated volume
|
1,964
|
|
|
1,761
|
|
Share of total matched consolidated volume
|
9
|
%
|
|
10
|
%
|
Total U.S. cash volume handled
|
1,451
|
|
|
1,359
|
|
Total U.S. cash market share matched
|
22
|
%
|
|
23
|
%
|
|
|
|
|
||
U.S. equity options (contracts in thousands):
|
|
|
|
||
NYSE equity options
|
3,585
|
|
|
3,450
|
|
Total U.S. equity options volume
|
15,001
|
|
|
14,738
|
|
NYSE share of total U.S. equity options
|
24
|
%
|
|
23
|
%
|
|
|
|
|
||
Revenue capture or rate per contract:
|
|
|
|
||
U.S. cash products revenue capture (per 100 shares)
|
$0.048
|
|
$0.050
|
||
U.S. equity options rate per contract
|
$0.160
|
|
$0.160
|
|
Nine Months Ended September 30,
|
|
|
|
Three Months Ended September 30,
|
|
|
||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Compensation and benefits
|
$
|
448
|
|
|
$
|
193
|
|
|
133
|
%
|
|
$
|
144
|
|
|
$
|
60
|
|
|
142
|
%
|
Technology and communication
|
136
|
|
|
36
|
|
|
277
|
%
|
|
46
|
|
|
13
|
|
|
255
|
|
||||
Professional services
|
161
|
|
|
23
|
|
|
604
|
%
|
|
52
|
|
|
7
|
|
|
610
|
|
||||
Rent and occupancy
|
61
|
|
|
23
|
|
|
169
|
%
|
|
19
|
|
|
5
|
|
|
277
|
|
||||
Acquisition-related transaction and integration costs
|
102
|
|
|
32
|
|
|
212
|
%
|
|
40
|
|
|
6
|
|
|
555
|
|
||||
Selling, general and administrative
|
92
|
|
|
28
|
|
|
226
|
%
|
|
31
|
|
|
10
|
|
|
198
|
|
||||
Depreciation and amortization
|
244
|
|
|
100
|
|
|
144
|
%
|
|
83
|
|
|
35
|
|
|
140
|
|
||||
Total operating expenses
|
$
|
1,244
|
|
|
$
|
435
|
|
|
186
|
%
|
|
$
|
415
|
|
|
$
|
136
|
|
|
206
|
%
|
|
Nine Months Ended September 30,
|
|
|
|
Three Months Ended September 30,
|
|
|
||||||||||||||
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
$
|
(73
|
)
|
|
$
|
(29
|
)
|
|
148
|
%
|
|
$
|
(22
|
)
|
|
$
|
(9
|
)
|
|
125
|
%
|
Other income, net
|
20
|
|
|
3
|
|
|
520
|
|
|
5
|
|
|
—
|
|
|
1,752
|
|
||||
Total other expense, net
|
$
|
(53
|
)
|
|
$
|
(26
|
)
|
|
100
|
%
|
|
$
|
(17
|
)
|
|
$
|
(9
|
)
|
|
72
|
%
|
Net income attributable to non-controlling interest
|
$
|
(29
|
)
|
|
$
|
(10
|
)
|
|
189
|
%
|
|
$
|
(7
|
)
|
|
$
|
(4
|
)
|
|
98
|
%
|
|
Nine Months Ended September 30, 2014
|
|
Three Months Ended September 30, 2014
|
||||
Revenues:
|
|
|
|
||||
European equity derivatives
futures and options contracts
|
$
|
45
|
|
|
$
|
—
|
|
European cash equities
|
116
|
|
|
—
|
|
||
Total transaction and clearing fees, net
|
161
|
|
|
—
|
|
||
Market data fees
|
60
|
|
|
—
|
|
||
Listing fees
|
19
|
|
|
—
|
|
||
Other revenues
|
112
|
|
|
18
|
|
||
Total revenues
|
352
|
|
|
18
|
|
||
Transaction-based expenses
|
5
|
|
|
—
|
|
||
Total revenues, less transaction-based expenses
|
347
|
|
|
18
|
|
||
Compensation and benefits
|
105
|
|
|
5
|
|
||
Technology and communication
|
31
|
|
|
4
|
|
||
Professional services
|
31
|
|
|
1
|
|
||
Rent and occupancy
|
12
|
|
|
—
|
|
||
Acquisition-related transaction and integration costs
|
103
|
|
|
7
|
|
||
Selling, general and administrative
|
16
|
|
|
1
|
|
||
Depreciation and amortization
|
16
|
|
|
—
|
|
||
Total operating expenses
|
314
|
|
|
18
|
|
||
Operating income
|
33
|
|
|
—
|
|
||
Other income, net
|
5
|
|
|
—
|
|
||
Income tax expense
|
27
|
|
|
10
|
|
||
Income (loss) from discontinued operations, net of tax
|
$
|
11
|
|
|
$
|
(10
|
)
|
|
Three Months Ended,
|
||||||||||||||||||
|
September 30, 2014
(1)(2)
|
|
June 30, 2014
(1)(2)
|
|
March 31, 2014
(1)(2)
|
|
December 31, 2013
(1)(2)
|
|
September 30,
2013 |
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural gas futures and options contracts
|
$
|
44
|
|
|
$
|
40
|
|
|
$
|
57
|
|
|
$
|
51
|
|
|
$
|
44
|
|
Brent crude futures and options contracts
|
62
|
|
|
55
|
|
|
49
|
|
|
50
|
|
|
58
|
|
|||||
Gasoil futures and options contracts
|
20
|
|
|
20
|
|
|
21
|
|
|
21
|
|
|
24
|
|
|||||
Other oil futures and options contracts
|
25
|
|
|
22
|
|
|
23
|
|
|
21
|
|
|
25
|
|
|||||
Power futures and options contracts
|
18
|
|
|
19
|
|
|
20
|
|
|
18
|
|
|
17
|
|
|||||
Emissions and other energy futures and options contracts
|
15
|
|
|
16
|
|
|
23
|
|
|
18
|
|
|
15
|
|
|||||
Sugar futures and options contracts
|
26
|
|
|
25
|
|
|
28
|
|
|
18
|
|
|
23
|
|
|||||
Other agricultural and metals futures and options contracts
|
22
|
|
|
25
|
|
|
26
|
|
|
20
|
|
|
16
|
|
|||||
Interest rates futures and options contracts
|
60
|
|
|
75
|
|
|
80
|
|
|
37
|
|
|
—
|
|
|||||
Other financial futures and options contracts
|
28
|
|
|
32
|
|
|
30
|
|
|
20
|
|
|
9
|
|
|||||
Credit default swaps
|
38
|
|
|
41
|
|
|
43
|
|
|
34
|
|
|
38
|
|
|||||
U.S. cash equities and U.S. equity options
|
339
|
|
|
338
|
|
|
346
|
|
|
159
|
|
|
—
|
|
|||||
Other
|
11
|
|
|
13
|
|
|
15
|
|
|
14
|
|
|
11
|
|
|||||
Total transaction and clearing fees, net
|
708
|
|
|
721
|
|
|
761
|
|
|
481
|
|
|
280
|
|
|||||
Market data fees
|
105
|
|
|
96
|
|
|
103
|
|
|
76
|
|
|
40
|
|
|||||
Listing fees
|
86
|
|
|
83
|
|
|
82
|
|
|
29
|
|
|
—
|
|
|||||
Other revenues
|
107
|
|
|
111
|
|
|
114
|
|
|
69
|
|
|
18
|
|
|||||
Total revenues
|
1,006
|
|
|
1,011
|
|
|
1,060
|
|
|
655
|
|
|
338
|
|
|||||
Transaction-based expenses
|
261
|
|
|
261
|
|
|
263
|
|
|
119
|
|
|
—
|
|
|||||
Total revenues, less transaction-based expenses
|
745
|
|
|
750
|
|
|
797
|
|
|
536
|
|
|
338
|
|
|||||
Compensation and benefits
|
144
|
|
|
150
|
|
|
154
|
|
|
109
|
|
|
60
|
|
|||||
Technology and communication
|
46
|
|
|
44
|
|
|
46
|
|
|
27
|
|
|
13
|
|
|||||
Professional services
|
52
|
|
|
51
|
|
|
58
|
|
|
31
|
|
|
7
|
|
|||||
Rent and occupancy
|
19
|
|
|
22
|
|
|
20
|
|
|
16
|
|
|
5
|
|
|||||
Acquisition-related transaction and integration costs
|
40
|
|
|
37
|
|
|
25
|
|
|
132
|
|
|
6
|
|
|||||
Selling, general and administrative
|
31
|
|
|
38
|
|
|
23
|
|
|
23
|
|
|
10
|
|
|||||
Depreciation and amortization
|
83
|
|
|
81
|
|
|
80
|
|
|
57
|
|
|
35
|
|
|||||
Total operating expenses
|
415
|
|
|
423
|
|
|
406
|
|
|
395
|
|
|
136
|
|
|||||
Operating income
|
330
|
|
|
327
|
|
|
391
|
|
|
141
|
|
|
202
|
|
|||||
Other expense, net
(3)
|
17
|
|
|
7
|
|
|
29
|
|
|
259
|
|
|
9
|
|
|||||
Income tax expense
|
90
|
|
|
93
|
|
|
101
|
|
|
61
|
|
|
48
|
|
|||||
Income (loss) from continuing operations
|
223
|
|
|
227
|
|
|
261
|
|
|
(179
|
)
|
|
145
|
|
|||||
Income (loss) from discontinued operations, net of tax
(2)
|
(10
|
)
|
|
8
|
|
|
13
|
|
|
9
|
|
|
—
|
|
|||||
Net income (loss)
|
$
|
213
|
|
|
$
|
235
|
|
|
$
|
274
|
|
|
$
|
(170
|
)
|
|
$
|
145
|
|
Net income attributable to non-controlling interest
|
(7
|
)
|
|
(9
|
)
|
|
(13
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|||||
Net income (loss) attributable to the Company
|
$
|
206
|
|
|
$
|
226
|
|
|
$
|
261
|
|
|
$
|
(176
|
)
|
|
$
|
141
|
|
|
Nine Months Ended September 30,
|
||||||
2014
|
|
2013
|
|||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities from continuing operations
|
$
|
922
|
|
|
$
|
562
|
|
Investing activities from continuing operations
|
489
|
|
|
(259
|
)
|
||
Financing activities from continuing operations
|
(1,618
|
)
|
|
(376
|
)
|
||
Discontinued operations
|
(114
|
)
|
|
—
|
|
||
Effect of exchange rate changes
|
(2
|
)
|
|
(2
|
)
|
||
Net decrease in cash and cash equivalents
|
$
|
(323
|
)
|
|
$
|
(75
|
)
|
|
As of September 30, 2014
|
|
As of December 31, 2013
|
||||
Debt:
|
|
|
|
||||
Commercial Paper
|
$
|
690
|
|
|
$
|
1,080
|
|
NYSE EUR Notes (5.375% senior unsecured notes due June 30, 2015)
|
1,199
|
|
|
—
|
|
||
2011 Credit Facilities - Term Loan Facility
|
—
|
|
|
55
|
|
||
Short-term debt
|
1,889
|
|
|
1,135
|
|
||
2018 Senior Notes (2.5% senior unsecured notes due October 15, 2018)
|
600
|
|
|
599
|
|
||
2023 Senior Notes (4.0% senior unsecured notes due October 15, 2023)
|
794
|
|
|
794
|
|
||
NYSE EUR Notes (5.375% senior unsecured notes due June 30, 2015)
|
—
|
|
|
1,353
|
|
||
NYSE USD Notes (2.0% senior unsecured notes due October 5, 2017)
|
853
|
|
|
854
|
|
||
2011 Credit Facilities - Term Loan Facility
|
—
|
|
|
323
|
|
||
Long-term debt
|
2,247
|
|
|
3,923
|
|
||
Total debt
|
$
|
4,136
|
|
|
$
|
5,058
|
|
|
Nine Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Total revenues, less transaction-based expenses
|
$
|
2,292
|
|
|
$
|
1,062
|
|
|
$
|
745
|
|
|
$
|
338
|
|
Total operating expenses
|
1,244
|
|
|
435
|
|
|
415
|
|
|
136
|
|
||||
Less: NYSE transaction and integration costs and SMX and ICE Endex banker success fees
|
98
|
|
|
31
|
|
|
38
|
|
|
5
|
|
||||
Less: Duplicate rent expenses and lease termination costs
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||
Adjusted total operating expenses
|
$
|
1,146
|
|
|
$
|
397
|
|
|
$
|
377
|
|
|
$
|
131
|
|
Operating income
|
$
|
1,048
|
|
|
$
|
627
|
|
|
$
|
330
|
|
|
$
|
202
|
|
Adjusted operating income
|
$
|
1,146
|
|
|
$
|
665
|
|
|
$
|
368
|
|
|
$
|
207
|
|
Operating margin
|
46
|
%
|
|
59
|
%
|
|
44
|
%
|
|
60
|
%
|
||||
Adjusted operating margin
|
50
|
%
|
|
63
|
%
|
|
49
|
%
|
|
61
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
711
|
|
|
$
|
440
|
|
|
$
|
223
|
|
|
$
|
145
|
|
Add: NYSE transaction and integration costs and SMX and ICE Endex banker success fees
|
98
|
|
|
31
|
|
|
38
|
|
|
5
|
|
||||
Add: Duplicate rent expenses and lease termination costs
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||
Less: Income tax effect related to the items above and certain tax impacts from the IPO of Euronext
|
(28
|
)
|
|
(14
|
)
|
|
(9
|
)
|
|
(2
|
)
|
||||
Less: Net income from continuing operations attributable to non-controlling interest
|
(29
|
)
|
|
(10
|
)
|
|
(7
|
)
|
|
(4
|
)
|
||||
Adjusted income from continuing operations
|
$
|
752
|
|
|
$
|
454
|
|
|
$
|
245
|
|
|
$
|
144
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to ICE
|
$
|
693
|
|
|
$
|
430
|
|
|
$
|
206
|
|
|
$
|
141
|
|
Add: NYSE transaction and integration costs and SMX and ICE Endex banker success fees
|
98
|
|
|
31
|
|
|
38
|
|
|
5
|
|
||||
Add: Duplicate rent expenses and lease termination costs
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||
Less: Income tax effect related to the items above and certain tax impacts from the IPO of Euronext
|
(28
|
)
|
|
(14
|
)
|
|
(9
|
)
|
|
(2
|
)
|
||||
Adjusted net income attributable to ICE
|
$
|
763
|
|
|
$
|
454
|
|
|
$
|
235
|
|
|
$
|
144
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to ICE common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
5.96
|
|
|
$
|
5.91
|
|
|
$
|
1.90
|
|
|
$
|
1.94
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Basic earnings per share
|
$
|
6.05
|
|
|
$
|
5.91
|
|
|
$
|
1.81
|
|
|
$
|
1.94
|
|
Basic weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
73
|
|
||||
Diluted earnings per share attributable to ICE common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
5.93
|
|
|
$
|
5.86
|
|
|
$
|
1.89
|
|
|
$
|
1.92
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Diluted earnings per share
|
$
|
6.02
|
|
|
$
|
5.86
|
|
|
$
|
1.80
|
|
|
$
|
1.92
|
|
Diluted weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
74
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted basic earnings per share attributable to ICE common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
6.57
|
|
|
$
|
6.24
|
|
|
$
|
2.16
|
|
|
$
|
1.98
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Adjusted basic earnings per share
|
$
|
6.66
|
|
|
$
|
6.24
|
|
|
$
|
2.07
|
|
|
$
|
1.98
|
|
Basic weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
73
|
|
||||
Adjusted diluted earnings per share attributable to ICE common shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
6.53
|
|
|
$
|
6.19
|
|
|
$
|
2.15
|
|
|
$
|
1.97
|
|
Discontinued operations
|
0.09
|
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
||||
Adjusted diluted earnings per share
|
$
|
6.62
|
|
|
$
|
6.19
|
|
|
$
|
2.06
|
|
|
$
|
1.97
|
|
Diluted weighted average common shares outstanding
|
115
|
|
|
73
|
|
|
114
|
|
|
74
|
|
|
Nine Months Ended
September 30, 2014 |
|
Three Months Ended
September 30, 2014 |
||||||||||||
|
Euro
|
|
Pound Sterling
|
|
Euro
|
|
Pound Sterling
|
||||||||
Average exchange rate to the U.S. dollar in the current year periods
|
$
|
1.3567
|
|
|
$
|
1.6694
|
|
|
$
|
1.3276
|
|
|
$
|
1.6712
|
|
Average exchange rate to the U.S. dollar in the same periods one year before
|
$
|
1.3176
|
|
|
$
|
1.5466
|
|
|
$
|
1.3242
|
|
|
$
|
1.5492
|
|
Foreign denominated percentage of:
|
|
|
|
|
|
|
|
||||||||
Revenues, less transaction-based expenses
|
5
|
%
|
|
15
|
%
|
|
4
|
%
|
|
15
|
%
|
||||
Operating expenses
|
1
|
%
|
|
14
|
%
|
|
1
|
%
|
|
12
|
%
|
||||
Operating income
|
9
|
%
|
|
17
|
%
|
|
8
|
%
|
|
19
|
%
|
||||
Impact of the currency fluctuations
(1)
on:
|
|
|
|
|
|
|
|
||||||||
Revenues, less transaction-based expenses
|
$
|
3
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Operating expenses
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Operating income
|
$
|
3
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
As of September 30, 2014
|
||||||
|
Position in euros
|
|
Position in pounds sterling
|
||||
Assets
|
€
|
1,527
|
|
|
£
|
4,323
|
|
of which goodwill represents
|
349
|
|
|
1,404
|
|
||
Liabilities
|
1,015
|
|
|
541
|
|
||
of which borrowings represent
|
962
|
|
|
—
|
|
||
Net currency position before hedging activities
|
€
|
512
|
|
|
£
|
3,782
|
|
Impact of hedging activities
|
24
|
|
|
—
|
|
||
Net currency position
|
€
|
536
|
|
|
£
|
3,782
|
|
Impact on consolidated equity of a 10% decrease in foreign currency exchange rates
|
$
|
68
|
|
|
$
|
614
|
|
Period
(2014)
|
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)
|
July 1 - July 31
|
1,793,484
|
$195.13
|
1,793,484
|
$700
|
August 1 - August 31
|
—
|
—
|
1,793,484
|
700
|
September 1 - September 30
|
523,200
|
188.56
|
2,316,684
|
601
|
Total
|
2,316,684
|
193.64
|
2,613,684
|
601
|
(1)
|
In March 2014, we entered into a Rule 10b5-1 trading plan under the Securities Exchange Act of 1934 permitting open market repurchases of our common stock based on certain triggers described in the trading plan. During the three months ended September 30, 2014, we repurchased
2.3 million
shares of our common stock on the open market or through the Rule 10b5-1 trading plan at an aggregate cost of $
448 million
through cash on hand and the issuance of commercial paper. In July 2014, our board of directors approved an additional $600 million under our share repurchase authorization, which brought the total authorization after the July purchases to $700 million. As of September 30, 2014, the remaining authorization permits repurchases of up to
$601 million
of our common stock with no fixed expiration date. In September 2014, we entered into a new Rule 10b5-1 trading plan and we expect to fund remaining share repurchases with a combination of cash on hand, future cash flows and by borrowing under our existing credit facilities and our commercial paper program. The timing and extent of any future repurchases that are not pursuant to the Rule 10b5-1 trading plan adopted in September 2014 are at the discretion of our management and will depend upon market conditions, amount authorized by our board of directors, our stock price, our target debt ratio and corporate debt rating, and our strategic growth initiatives at that time. The stock repurchases may be discontinued at any time or we may enter into a new Rule 10b5-1 trading plan. Our board of directors may increase or decrease the amount of capacity we have for repurchases from time to time.
|
Exhibit Number
|
|
Description of Document
|
|
|
|
2.1
|
—
|
Agreement and Plan of Merger by and among Intercontinental Exchange, Inc., Sandstone Merger Sub, Inc., Super Derivatives, Inc. and Shareholder Representatives Services LLC, as Stockholders' Agent, dated September 5, 2014 (incorporated by reference to Exhibit 2.01 to Intercontinental Exchange, Inc.'s Current Report on From 8-K filed with the SEC on September 11, 2014).
|
|
|
|
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 September 30, 2014, 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 (Loss), (iv) the Consolidated Statements of Changes in Equity, Accumulated Other Comprehensive Income 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 Holdings, Inc. specifically incorporates it by reference.
|
|
|
Intercontinental Exchange, Inc.
(Registrant)
|
|
|
|
|
|
Date: November 4, 2014
|
|
By:
|
/s/ Scott A. Hill
|
|
|
|
Scott A. Hill
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
No Suppliers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|