Condensed Consolidating Financial Statements

9 Months Ended

Sep. 30, 2015

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements (Unaudited)

In connection with our acquisition of NYSE, Intercontinental Exchange, Inc., or ICE, and NYSE Holdings LLC, or NYSE Holdings, established various guarantees to protect against structural subordination of each entities’ existing indebtedness. NYSE Holdings is our wholly-owned subsidiary and fully and unconditionally guarantees, on an unsecured and unsubordinated basis, the payment of principal, premium, if any, and interest of our 2014 Credit Facility, Senior Notes and our Commercial Paper Program. Similarly, ICE fully and unconditionally guarantees, on an unsecured and unsubordinated basis, the payment of principal, premium, if any, and interest of the NYSE Notes. The guarantees will remain in place until each applicable debt obligation has been satisfied.

The following unaudited consolidating financial information sets forth, under the equity method of accounting, the condensed consolidating statements of income and comprehensive income, the condensed consolidating balance sheets, and the condensed consolidating statements of cash flows for (i) ICE (Parent); (ii) NYSE Holdings; (iii) the subsidiary non-guarantors; (iv) elimination entries necessary to consolidate each of ICE (Parent) and NYSE Holdings with the non-guarantor subsidiaries; and (v) on a consolidated basis. The condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements.

Intercontinental Exchange, Inc.

Condensed Consolidating Balance Sheets

As of September 30, 2015

(In millions)

	ICE  (Parent)		Subsidiary Guarantor - NYSE Holdings		Subsidiary Non-Guarantors		Consolidating  Adjustments			Consolidated  Total
Current assets:
Cash and cash equivalents	$	1	$	—	$	686	$	—		$	687
Intercompany receivable	3,094		—		—		(3,094		)	—
Margin deposits and guaranty funds	—		—		46,308		—			46,308
Notes receivable from affiliate, current	—		526		9		(535		)	—
Other current assets	5		4		1,048		—			1,057
Total current assets	3,100		530		48,051		(3,629		)	48,052
Property and equipment, net	—		—		904		—			904
Other non-current assets:
Goodwill and other intangible assets, net	—		—		16,160		—			16,160
Investment in subsidiaries	14,432		9,750		—		(24,182		)	—
Notes receivable from affiliate, non-current	—		2,981		2,909		(5,890		)	—
Other non-current assets	21		10		709		—			740
Total other non-current assets	14,453		12,741		19,778		(30,072		)	16,900
Total assets	$	17,553	$	13,271	$	68,733	$	(33,701	)	$	65,856
Current liabilities:
Short-term debt	$	1,253	$	—	$	—	$	—		$	1,253
Margin deposits and guaranty funds	—		—		46,308		—			46,308
Intercompany payable	—		1,230		1,864		(3,094		)	—
Notes payable to affiliates, current	297		—		238		(535		)	—
Other current liabilities	43		—		854		—			897
Total current liabilities	1,593		1,230		49,264		(3,629		)	48,458
Non-current liabilities:
Long-term debt	1,394		853		—		—			2,247
Notes payable to affiliates, non-current	2,209		701		2,980		(5,890		)	—
Other non-current liabilities	17		—		2,724		—			2,741
Total non-current liabilities	3,620		1,554		5,704		(5,890		)	4,988
Total liabilities	5,213		2,784		54,968		(9,519		)	53,446
Redeemable non-controlling interest	—		—		40		—			40
Equity:
Total shareholders' equity	12,340		10,487		13,695		(24,182		)	12,340
Non-controlling interest in consolidated subsidiaries	—		—		30		—			30
Total equity	12,340		10,487		13,725		(24,182		)	12,370
Total liabilities and equity	$	17,553	$	13,271	$	68,733	$	(33,701	)	$	65,856

Intercontinental Exchange, Inc.

Condensed Consolidating Balance Sheets

As of December 31, 2014

(In millions)

	ICE  (Parent)		Subsidiary Guarantor - NYSE Holdings		Subsidiary Non-Guarantors		Consolidating  Adjustments			Consolidated  Total
Current assets:
Cash and cash equivalents	$	6	$	5	$	641	$	—		$	652
Intercompany receivable	2,793		—		529		(3,322		)	—
Margin deposits and guaranty funds	—		—		47,458		—			47,458
Note receivable from affiliate, current	—		313		31		(344		)	—
Other current assets	60		1,173		936		(60		)	2,109
Total current assets	2,859		1,491		49,595		(3,726		)	50,219
Property and equipment, net	—		—		874		—			874
Other non-current assets:
Goodwill and other intangible assets, net	—		—		16,315		—			16,315
Investment in subsidiaries	13,682		9,572		—		(23,254		)	—
Note receivable from affiliate, non-current	—		2,790		1,516		(4,306		)	—
Other non-current assets	25		11		809		—			845
Total other non-current assets	13,707		12,373		18,640		(27,560		)	17,160
Total assets	$	16,566	$	13,864	$	69,109	$	(31,286	)	$	68,253
Current liabilities:
Short-term debt	$	905	$	1,137	$	—	$	—		$	2,042
Margin deposits and guaranty funds	—		—		47,458		—			47,458
Intercompany payable	—		1,933		1,389		(3,322		)	—
Notes payable to affiliates, current	344		—		—		(344		)	—
Other current liabilities	30		—		1,043		(60		)	1,013
Total current liabilities	1,279		3,070		49,890		(3,726		)	50,513
Non-current liabilities:
Long-term debt	1,394		853		—		—			2,247
Notes payable to affiliates, non-current	1,516		—		2,790		(4,306		)	—
Other non-current liabilities	17		—		2,919		—			2,936
Total non-current liabilities	2,927		853		5,709		(4,306		)	5,183
Total liabilities	4,206		3,923		55,599		(8,032		)	55,696
Redeemable non-controlling interest	—		—		165		—			165
Equity:
Total shareholders' equity	12,360		9,941		13,313		(23,254		)	12,360
Non-controlling interest in consolidated subsidiaries	—		—		32		—			32
Total equity	12,360		9,941		13,345		(23,254		)	12,392
Total liabilities and equity	$	16,566	$	13,864	$	69,109	$	(31,286	)	$	68,253

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Nine Months Ended September 30, 2015

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating  Adjustments			Consolidated  Total
Revenues:
Transaction and clearing fees, net	$	—		$	—		$	2,331		$	—		$	2,331
Data services fees	—			—			614			—			614
Listing fees and other revenues	—			—			435			—			435
Total revenues	—			—			3,380			—			3,380
Transaction-based expenses	—			—			917			—			917
Total revenues, less transaction-based expenses	—			—			2,463			—			2,463
Operating expenses:
Compensation and benefits	1			—			444			—			445
Technology and communication	—			—			147			—			147
Acquisition-related transaction and integration costs	—			—			34			—			34
Selling, general, administrative and other	1			—			228			—			229
Depreciation and amortization	—			—			276			—			276
Total operating expenses	2			—			1,129			—			1,131
Operating income	(2		)	—			1,334			—			1,332
Intercompany interest on loans	(4		)	28			(24		)	—			—
Other expense, net	(20		)	(50		)	—			—			(70		)
Total other expense, net	(24		)	(22		)	(24		)	—			(70		)
Income before income taxes	(26		)	(22		)	1,310			—			1,262
Income tax expense (benefit)	(19		)	—			359			—			340
Equity earnings from subsidiaries	911			288			—			(1,199		)	—
Net income	$	904		$	266		$	951		$	(1,199	)	$	922
Net income attributable to non-controlling interest	—			—			(18		)	—			(18		)
Net income attributable to ICE	$	904		$	266		$	933		$	(1,199	)	$	904

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Nine Months Ended September 30, 2015

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating  Adjustments			Consolidated  Total
Net income	$	904		$	266		$	951		$	(1,199	)	$	922
Other comprehensive loss:
Foreign currency translation adjustments	—			—			(17		)	—			(17		)
Change in fair value of available-for-sale-securities	—			—			(126		)	—			(126		)
Employment benefit plan adjustments	—			—			(2		)	—			(2		)
Total other comprehensive loss	—			—			(145		)	—			(145		)
Comprehensive loss of subsidiaries	(145		)	(5		)	—			150			—
Comprehensive income	759			261			806			(1,049		)	777
Comprehensive income attributable to non-controlling interests	—			—			(18		)	—			(18		)
Comprehensive income attributable to ICE	$	759		$	261		$	788		$	(1,049	)	$	759

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Three Months Ended September 30, 2015

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating  Adjustments			Consolidated  Total
Revenues:
Transaction and clearing fees, net	$	—		$	—		$	795		$	—		$	795
Data services fees	—			—			209			—			209
Listing fees and other revenues	—			—			147			—			147
Total revenues	—			—			1,151			—			1,151
Transaction-based expenses	—			—			335			—			335
Total revenues, less transaction-based expenses	—			—			816			—			816
Operating expenses:
Compensation and benefits	—			—			150			—			150
Technology and communication	—			—			49			—			49
Acquisition-related transaction and integration costs	—			—			8			—			8
Selling, general, administrative and other	—			—			75			—			75
Depreciation and amortization	—			—			94			—			94
Total operating expenses	—			—			376			—			376
Operating income	—			—			440			—			440
Intercompany interest on loans	(2		)	9			(7		)	—			—
Other income (expense), net	(13		)	(17		)	13			—			(17		)
Total other income (expense), net	(15		)	(8		)	6			—			(17		)
Income before income taxes	(15		)	(8		)	446			—			423
Income tax expense (benefit)	(16		)	—			129			—			113
Equity earnings from subsidiaries	305			120			—			(425		)	—
Net income	$	306		$	112		$	317		$	(425	)	$	310
Net income attributable to non-controlling interest	—			—			(4		)	—			(4		)
Net income attributable to ICE	$	306		$	112		$	313		$	(425	)	$	306

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Three Months Ended September 30, 2015

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating  Adjustments			Consolidated  Total
Net income	$	306		$	112		$	317		$	(425	)	$	310
Other comprehensive loss:
Foreign currency translation adjustments	—			(1		)	(35		)	—			(36		)
Change in fair value of available-for-sale-securities	—			—			(87		)	—			(87		)
Total other comprehensive loss	—			(1		)	(122		)	—			(123		)
Comprehensive income (loss) of subsidiaries	(123		)	9			—			114			—
Comprehensive income	183			120			195			(311		)	187
Comprehensive income attributable to non-controlling interests	—			—			(4		)	—			(4		)
Comprehensive income attributable to ICE	$	183		$	120		$	191		$	(311	)	$	183

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Nine Months Ended September 30, 2014

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating  Adjustments			Consolidated  Total
Revenues:
Transaction and clearing fees, net	$	—		$	—		$	2,202		$	—		$	2,202
Data services fees	—			—			502			—			502
Listing fees and other revenues	—			—			385			—			385
Total revenues	—			—			3,089			—			3,089
Transaction-based expenses	—			—			797			—			797
Total revenues, less transaction-based expenses	—			—			2,292			—			2,292
Operating expenses:
Compensation and benefits	1			—			447			—			448
Technology and communication	—			—			135			—			135
Acquisition-related transaction and integration costs	—			9			93			—			102
Selling, general, administrative and other	—			—			315			—			315
Depreciation and amortization	—			—			244			—			244
Total operating expenses	1			9			1,234			—			1,244
Operating income	(1		)	(9		)	1,058			—			1,048
Total other income (expense), net	(16		)	(69		)	32			—			(53		)
Income 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

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Nine Months Ended September 30, 2014

(In millions)

	ICE  (Parent)		Subsidiary Guarantor - NYSE Holdings		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
Discontinuance 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

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Three Months Ended September 30, 2014

(In millions)

	ICE  (Parent)		Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating  Adjustments			Consolidated  Total
Revenues:
Transaction and clearing fees, net	$	—	$	—		$	712		$	—		$	712
Data services fees	—		—			170			—			170
Listing fees and other revenues	—		—			128			—			128
Total revenues	—		—			1,010			—			1,010
Transaction-based expenses	—		—			265			—			265
Total revenues, less transaction-based expenses	—		—			745			—			745
Operating expenses:
Compensation and benefits	—		—			144			—			144
Technology and communication	—		—			45			—			45
Acquisition-related transaction and integration costs	—		5			35			—			40
Selling, general, administrative and other	—		—			103			—			103
Depreciation and amortization	—		—			83			—			83
Total operating expenses	—		5			410			—			415
Operating income	—		(5		)	335			—			330
Total other income (expense), net	8		(41		)	16			—			(17		)
Income from continuing operations before income taxes	8		(46		)	351			—			313
Income tax expense	8		—			82			—			90
Equity earnings from subsidiaries	206		81			—			(287		)	—
Income from continuing operations	206		35			269			(287		)	223
Income 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

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Three Months Ended September 30, 2014

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			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 loss 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	)

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 30, 2015

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating  Adjustments			Consolidated  Total
Net cash provided by (used in) operating activities from continuing operations	$	182		$	346		$	465		$	(103	)	$	890
Investing activities:
Decrease in restricted cash	—			—			14			—			14
Loans to subsidiaries	(301		)	(404		)	(842		)	1,547			—
Additional contribution to equity method investment	—			—			(60		)	—			(60		)
Proceeds from term deposits and sales of available-for-sale investments	—			1,084			—			—			1,084
Capital expenditures, capitalized software development costs and other	—			—			(192		)	—			(192		)
Net cash provided by (used in) investing activities from continuing operations	(301		)	680			(1,080		)	1,547			846
Financing activities:
Repayments of debt facilities and commercial paper, net	348			(1,029		)	—			—			(681		)
Intercompany borrowing	646			(2		)	903			(1,547		)	—
Dividends to shareholders	(242		)	—			—			—			(242		)
Intercompany dividends	—			—			(103		)	103			—
Repurchases of common stock	(605		)	—			—			—			(605		)
Purchase of subsidiary shares from non-controlling interest	—			—			(128		)	—			(128		)
Other financing activities	(33		)	—			(3		)	—			(36		)
Net cash provided by (used in) financing activities from continuing operations	114			(1,031		)	669			(1,444		)	(1,692		)
Effect of exchange rates on cash and cash equivalents	—			—			(9		)	—			(9		)
Net increase (decrease) in cash and cash equivalents	(5		)	(5		)	45			—			35
Cash and cash equivalents, beginning of period	6			5			641			—			652
Cash and cash equivalents, end of period	$	1		$	—		$	686		$	—		$	687

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Cash Flows

Nine Months Ended September 30, 2014

(In millions)

	ICE  (Parent)			Subsidiary Guarantor - NYSE Holdings			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	—			(108		)	(698		)	806			—
Proceeds from IPO of Euronext and sales of NYSE Technologies	—			—			2,155			—			2,155
Purchases of term deposits and available-for-sale investments	—			—			(1,304		)	—			(1,304		)
Capital expenditures, capitalized software development costs and other	—			—			(107		)	—			(107		)
Net cash provided by (used in) investing activities from continuing operations	—			(108		)	(209		)	806			489
Financing activities:
Repayments of debt facilities and commercial paper, net	(400		)	—			(368		)	—			(768		)
Intercompany borrowing	937			(239		)	108			(806		)	—
Dividends to shareholders	(225		)	—			—			—			(225		)
Intercompany dividends	—			—			(85		)	85			—
Repurchases of common stock	(448		)	—			—			—			(448		)
Purchase of subsidiary shares from non-controlling interest	—			—			(129		)	—			(129		)
Other financing activities	(30		)	—			(18		)	—			(48		)
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