Revenue Recognition

Our primary revenue contract classifications are described below. These categories best represent those with similar economic characteristics of the nature, amount, timing and uncertainty of our revenues and cash flows.

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Transaction and clearing, net - Transaction and clearing revenues represent fees charged for the performance obligations of derivatives trading and clearing, and from our cash trading, equity options and fixed income exchanges. The derivatives trading and clearing fees contain two performance obligations: (1) trade execution/clearing novation and (2) risk management of open interest. While we allocate the transaction price between these two performance obligations, since they generally are satisfied almost simultaneously, there is no significant deferral of revenue. Cash trading, equity options and fixed income fees contain one performance obligation related to trade execution which occurs instantaneously, and the revenue is recorded at the point in time of the trade execution. Our transaction and clearing revenues are reported net of rebates, except for the NYSE transaction-based expenses. Rebates were $844 million, $749 million and $674 million in 2018, 2017 and 2016, respectively. Transaction and clearing fees can be variable based on trade volume discounts used in the determination of rebates, however virtually all volume discounts are calculated and recorded on a monthly basis. Transaction and clearing fees, as well as any volume discounts rebated to our customers, are calculated and billed monthly in accordance with our published fee schedules. We make liquidity payments to certain customers in our NYSE businesses and recognize those payments as a cost of revenue. In addition, we pay NYSE regulatory oversight fees to the SEC and collect equal amounts from our customers. These are also considered a cost of revenue, and both of these NYSE-related fees are included in transaction-based expenses. Transaction and clearing revenues and the related transaction-based expenses are all recognized in our Trading and Clearing segment.


•	Data services - Data service revenues represent the following:


◦	Pricing and analytics services provide global securities evaluations, reference data, market indices, risk analytics, derivative pricing and other information designed to meet our customers' portfolio management, trading, risk management, reporting and regulatory compliance needs.


◦	Exchange data and feeds services represent subscription fees for the provision and feeds of our market data that is created from activity in our Trading and Clearing segment.


◦	Desktops and connectivity services provide the connection to our exchanges, clearing houses and data centers and comprise hosting, colocation, infrastructure, technology-based information platforms, workstations and connectivity solutions through the ICE Global Network.

The nature and timing of each contract type for the data services above are similar in nature. Data services revenues are primarily subscription-based, billed monthly, quarterly or annually in advance and recognized ratably over time as our performance obligations of data delivery are met consistently throughout the period. Considering these contracts primarily consist of single performance obligations with fixed prices, there is no variable consideration and no need to allocate the transaction price. In certain of our data contracts, where third parties are involved, we arrange for the third party to transfer the services to our customers; in these arrangements we are acting as an agent and revenue is recorded net. All data services fees are included in our Data and Listings segment.

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Listings - Listings revenues include original and annual listings fees, and other corporate action fees. Each distinct listing fee is allocated to multiple performance obligations including original and incremental listing and investor relations services, as well as a customer’s material right to renew the option to list on our exchanges. In performing this allocation, the standalone selling price of the listing services is based on the original and annual listing fees and the standalone selling price of the investor relations services is based on its market value. All listings fees are billed upfront and the identified performance obligations are satisfied over time. Revenue related to the investor relations performance obligation is recognized ratably over a two-year period, with the remaining revenue recognized ratably over time as customers continue to list on our exchanges, which is generally estimated to be over a period of up to nine years for NYSE and up to five years for NYSE Arca and NYSE American. Listings fees related to other corporate actions are considered contract modifications of our listing contracts and are recognized ratably over time as customers continue to list on our exchanges, which is generally estimated to be a period of six years for NYSE and three years for NYSE Arca and NYSE American. All listings fees are recognized in our Data and Listings segment.

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Other revenues - Other revenues primarily include interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees. Generally, fees for other revenues contain one performance obligation. Because these contracts primarily consist of single performance obligations with fixed prices, there is no variable consideration and no need to allocate the transaction price. Services for other revenues are primarily satisfied at a point in time. Therefore, there is no need to allocate the fee and no deferral results as we have no further obligation to the customer at that time. Other revenues are recognized in our Trading and Clearing segment.

The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Segment totals here are consistent with the segment totals in Note 18:



	Trading & Clearing Segment		Data & Listings Segment		Total Consolidated
Year ended December 31, 2018
Transaction and clearing, net	$	3,483	$	—	$	3,483
Data services	—		2,115		2,115
Listings	—		444		444
Other revenues	234		—		234
Total revenues	3,717		2,559		6,276
Transaction-based expenses	1,297		—		1,297
Total revenues, less transaction-based expenses	$	2,420	$	2,559	$	4,979

Timing of Revenue Recognition
Services transferred at a point in time	$	2,074	$	—	$	2,074
Services transferred over time	346		2,559		2,905
Total revenues, less transaction-based expenses	$	2,420	$	2,559	$	4,979



	Trading & Clearing Segment		Data & Listings Segment		Total Consolidated
Year ended December 31, 2017
Transaction and clearing, net	$	3,131	$	—	$	3,131
Data services	—		2,084		2,084
Listings	—		426		426
Other revenues	202		—		202
Total revenues	3,333		2,510		5,843
Transaction-based expenses	1,205		—		1,205
Total revenues, less transaction-based expenses	$	2,128	$	2,510	$	4,638

Timing of Revenue Recognition
Services transferred at a point in time	$	1,813	$	—	$	1,813
Services transferred over time	315		2,510		2,825
Total revenues, less transaction-based expenses	$	2,128	$	2,510	$	4,638



	Trading & Clearing Segment		Data & Listings Segment		Total Consolidated
Year ended December 31, 2016
Transaction and clearing, net	$	3,384	$	—	$	3,384
Data services	—		1,978		1,978
Listings	—		432		432
Other revenues	177		—		177
Total revenues	3,561		2,410		5,971
Transaction-based expenses	1,459		—		1,459
Total revenues, less transaction-based expenses	$	2,102	$	2,410	$	4,512

Timing of Revenue Recognition
Services transferred at a point in time	$	1,791	$	—	$	1,791
Services transferred over time	311		2,410		2,721
Total revenues, less transaction-based expenses	$	2,102	$	2,410	$	4,512

The Trading and Clearing segment revenues above include $248 million, $226 million, and $219 million in 2018, 2017 and 2016, respectively, for services transferred over time related to risk management of open interest performance obligations. A majority of these performance obligations are performed over a short period of time of one month or less.

Deferred Revenue

Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $217 million as of December 31, 2018, including $135 million in current deferred revenue and $82 million in non-current deferred revenue. Total deferred revenue was $216 million as of December 31, 2017, including $125 million in current deferred revenue and $91 million in non-current deferred revenue. See Note 5 for a description of our annual listing, original listing, other listings and data services revenues and the revenue recognition policy for each of these revenue streams. The changes in our deferred revenue during 2018 and 2017 are as follows (in millions), adjusted to reflect the adoption of ASC 606 as discussed in Note 2:



	Annual Listing Revenue			Original Listing Revenues			Other Listing Revenues			Data Services and Other Revenues			Total
Deferred revenue balance at January 1, 2017	$	—		$	23		$	83		$	92		$	198
Additions	368			22			54			374			818
Amortization	(368		)	(20		)	(39		)	(374		)	(801		)
Acquisitions, net of divestitures (Note 3)	—			—			—			1			1
Deferred revenue balance at December 31, 2017	—			25			98			93			216
Additions	384			24			38			366			812
Amortization	(384		)	(24		)	(36		)	(367		)	(811		)
Deferred revenue balance at December 31, 2018	$	—		$	25		$	100		$	92		$	217

Adjustments for divestitures in the table above resulted from our June 2017 divestiture of NYSE Governance Services and our March 2017 divestiture of IDMS, as well as our classification of Trayport deferred revenue as held for sale during 2017. Included in the amortization recognized in 2018, $114 million related to the deferred revenue balance as of January 1, 2018. Included in the amortization in 2017, $100 million related to the deferred revenue balance as of January 1, 2017. As of December 31, 2018, we estimate that our deferred revenue will be recognized in the following years (in millions):



	Original Listing Revenues		Other Listing Revenues		Data Services and Other Revenues		Total
2019	$	19	$	29	$	87	$	135
2020	6		29		3		38
2021	—		21		2		23
2022	—		15		—		15
2023	—		6		—		6
Thereafter	—		—		—		—
Total	$	25	$	100	$	92	$	217