Deferred Revenue

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue From Contracts With Customers

Disaggregation of Revenue

The following tables summarize the disaggregation of revenue by major product and service and by segment for the three months ended March 31, 2020 and 2019:


	Three Months Ended March 31, 2020
	Market Services		Corporate Services		Information Services		Market Technology		Consolidated
	(in millions)
Transaction-based trading and clearing, net	$	209	$	—	$	—	$	—	$	209
Trade management services	72		—		—		—		72
Listing services	—		75		—		—		75
Corporate solutions	—		53		—		—		53
Market data	—		—		97		—		97
Index	—		—		73		—		73
Investment data & analytics	—		—		41		—		41
Market technology	—		—		—		81		81
Revenues less transaction-based expenses	$	281	$	128	$	211	$	81	$	701


	Three Months Ended March 31, 2019
	Market Services		Corporate Services		Information Services		Market Technology		Other Revenues		Consolidated
	(in millions)
Transaction-based trading and clearing, net	$	160	$	—	$	—	$	—	$	—	$	160
Trade management services	73		—		—		—		—		73
Listing services	—		71		—		—		—		71
Corporate solutions	—		50		—		—		—		50
Market data	—		—		100		—		—		100
Index	—		—		54		—		—		54
Investment data & analytics	—		—		39		—		—		39
Market technology	—		—		—		77		—		77
Other revenues	—		—		—		—		10		10
Revenues less transaction-based expenses	$	233	$	121	$	193	$	77	$	10	$	634

For the three months ended March 31, 2020, approximately 72.0% of Market Services revenues were recognized at a point in time and 28.0% were recognized over time. For the three months ended March 31, 2019, approximately 65.0% of Market Services revenues were recognized at a point in time and 35.0% were recognized over time. The increase in Market Services revenues recognized at a point in time for the three months ended 2020 compared with the same period in 2019 was primarily due to higher U.S. industry trading volumes in our equity derivative trading and clearing business and higher U.S. and European industry trading volumes in our cash equity trading business. Substantially all revenues from the Corporate Services, Information Services and Market Technology segments were recognized over time for the three months ended March 31, 2020 and 2019.

* * * * * *

Contract Balances

Substantially all of our revenues are considered to be revenues from contracts with customers. The related accounts receivable balances are recorded in our Condensed Consolidated Balance Sheets as receivables which are net of allowance for losses of $21 million as of March 31, 2020 and $9 million as of December 31, 2019. The changes in the balance between periods were immaterial. We do not have obligations for warranties, returns or refunds to customers.

For the majority of our contracts with customers, except for our market technology and listings services contracts, our performance obligations are short-term in nature and there is no significant variable consideration.

We do not have a material amount of revenue recognized from performance obligations that were satisfied in prior periods. We do not provide disclosures about transaction price allocated to unsatisfied performance obligations if contract durations are less than one year. Excluding our

market technology contracts, for contract durations that are one-year or greater, materially all of the transaction price allocated to unsatisfied performance obligations is included in deferred revenue. For our market technology contracts, the portion of transaction price allocated to unsatisfied performance obligations is shown in the table below. Deferred revenue primarily represents our contract liabilities related to our fees for annual and initial listings, market technology, corporate solutions and information services contracts. Deferred revenue is the only significant contract asset or liability as of March 31, 2020. See Note 7, “Deferred

Revenue,” for our discussion on deferred revenue balances, activity, and expected timing of recognition.

Transaction Price Allocated to Remaining Performance Obligations

As stated above, for contract durations that are one-year or greater, we do not have a material portion of transaction price allocated to unsatisfied performance obligations that are not included in deferred revenue other than for our market technology contracts.

* * * * * *

For our market technology contracts, the following table summarizes the amount of the transaction price allocated to performance obligations that are unsatisfied as of March 31, 2020:


	(in millions)
2020⁽¹⁾	$	245
2021	259
2022	114
2023	82
2024	59
2025 and thereafter	95
Total	$	854

____________

⁽¹⁾Represents performance obligations to be recognized over the remaining nine months of 2020.

Market technology deferred revenue, as discussed in Note 7, “Deferred Revenue,” represents consideration received that is yet to be recognized as revenue for unsatisfied performance obligations.

Deferred Revenue

Deferred revenue represents consideration received that is yet to be recognized as revenue. The changes in our deferred revenue during the three months ended March 31, 2020 are reflected in the following table:


	Initial Listing Revenues		Annual Listings Revenues		Corporate Solutions Revenues		Information Services Revenues		Market Technology Revenues		Other⁽¹⁾		Total
	(in millions)
Balance at December 31, 2019	$	69	$	2	$	41	$	82	$	66	$	14	$	274
Deferred revenue billed in the current period, net of recognition	7		181		21		48		16		6		279
Revenue recognized that was included in the beginning of the period	(10)		(1)		(18)		(26)		(18)		(5)		(78)
Translation adjustment	—		—		—		—		(4)		1		(3)
Balance at March 31, 2020	$	66	$	182	$	44	$	104	$	60	$	16	$	472

____________

⁽¹⁾Primarily includes deferred revenue from listing of additional shares fees. In the U.S., these fees will continue to run-off as a result of the implementation of our all-inclusive annual fee. Listing of additional shares fees are included in our Listing Services business.

As of March 31, 2020, we estimate that our deferred revenue will be recognized in the following years:


	Initial Listing Revenues		Annual Listings Revenues		Corporate Solutions Revenues		Information Services Revenues		Market Technology Revenues		Other⁽¹⁾		Total
	(in millions)
Fiscal year ended:
2020⁽²⁾	$	21	$	182	$	40	$	94	$	47	$	10	$	394
2021	19		—		4		10		13		4		50
2022	11		—		—		—		—		1		12
2023	8		—		—		—		—		1		9
2024	5		—		—		—		—		—		5
2025 and thereafter	2		—		—		—		—		—		2
Total	$	66	$	182	$	44	$	104	$	60	$	16	$	472

____________

⁽¹⁾ Other primarily includes revenues from U.S. listing of additional shares fees which are included in our Listing Services business.

⁽²⁾ Represents the estimated amortization to be recognized for the remaining nine months of 2020.

The timing of recognition of our deferred market technology revenues is primarily dependent upon the completion of customization and any significant modifications made pursuant to existing market technology contracts. As such, as it relates to market technology revenues, the timing represents our best estimate.