Item 1. Consolidated Financial Statements (Unaudited)

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Item 1. Consolidated Financial Statements (Unaudited)

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Balance Sheets

(In millions, except per share amounts)


	As of		As of December 31, 2020
	September 30, 2021
	(Unaudited)
Assets:
Current assets:
Cash and cash equivalents	$	618	$	583
Short-term restricted cash and cash equivalents	1,045		1,000
Customer accounts receivable, net of allowance for doubtful accounts of $23 and $27 at September 30, 2021 and December 31, 2020, respectively	1,327		1,230
Margin deposits, guaranty funds and delivery contracts receivable	108,698		84,083
Prepaid expenses and other current assets	1,032		323
Total current assets	112,720		87,219
Property and equipment, net	1,723		1,713
Other non-current assets:
Goodwill	21,309		21,291
Other intangible assets, net	13,928		14,408
Long-term restricted cash and cash equivalents	398		408
Other non-current assets	584		1,161
Total other non-current assets	36,219		37,268
Total assets	$	150,662	$	126,200

Liabilities and Equity:
Current liabilities:
Accounts payable and accrued liabilities	$	696	$	639
Section 31 fees payable	14		207
Accrued salaries and benefits	275		346
Deferred revenue	322		158
Short-term debt	1,831		2,411
Margin deposits, guaranty funds and delivery contracts payable	108,698		84,083
Other current liabilities	196		155
Total current liabilities	112,032		87,999
Non-current liabilities:
Non-current deferred tax liability, net	3,689		3,563
Long-term debt	12,394		14,126
Accrued employee benefits	200		206
Non-current operating lease liability	274		320
Other non-current liabilities	394		359
Total non-current liabilities	16,951		18,574
Total liabilities	128,983		106,573
Commitments and contingencies
Redeemable non-controlling interest in consolidated subsidiaries	87		93


Equity:
Intercontinental Exchange, Inc. stockholders’ equity:
Preferred stock, $0.01 par value; 100 shares authorized; none issued or outstanding at September 30, 2021 and December 31, 2020	—		—
Common stock, $0.01 par value; 1,500 shares authorized; 631 and 629 issued at September 30, 2021 and December 31, 2020, respectively, and 562 and 561 shares outstanding at September 30, 2021 and December 31, 2020, respectively	6		6
Treasury stock, at cost; 69 shares at September 30, 2021 and 68 shares at December 31, 2020	(5,269)		(5,200)
Additional paid-in capital	14,019		13,845
Retained earnings	13,009		11,039
Accumulated other comprehensive loss	(206)		(192)
Total Intercontinental Exchange, Inc. stockholders’ equity	21,559		19,498
Non-controlling interest in consolidated subsidiaries	33		36
Total equity	21,592		19,534
Total liabilities and equity	$	150,662	$	126,200

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)


	Nine Months Ended September 30,				Three Months Ended September 30,
	2021		2020		2021		2020
Revenues:
Exchanges	$	4,376	$	4,406	$	1,434	$	1,337
Fixed income and data services	1,403		1,360		477		450
Mortgage technology	1,061		245		366		143
Total revenues	6,840		6,011		2,277		1,930
Transaction-based expenses:
Section 31 fees	204		465		38		145
Cash liquidity payments, routing and clearing	1,330		1,181		437		374
Total revenues, less transaction-based expenses	5,306		4,365		1,802		1,411
Operating expenses:
Compensation and benefits	1,093		849		374		298
Professional services	124		100		43		37
Acquisition-related transaction and integration costs	42		90		14		76
Technology and communication	495		388		168		131
Rent and occupancy	61		59		20		19
Selling, general and administrative	163		132		52		43
Depreciation and amortization	759		494		253		180
Total operating expenses	2,737		2,112		924		784
Operating income	2,569		2,253		878		627
Other income (expense):
Interest income	—		9		—		1
Interest expense	(321)		(245)		(108)		(89)
Other income, net	1,341		75		54		44
Other income (expense), net	1,020		(161)		(54)		(44)
Income before income tax expense	3,589		2,092		824		583
Income tax expense	1,049		512		187		189
Net income	$	2,540	$	1,580	$	637	$	394
Net income attributable to non-controlling interest	(9)		(17)		(4)		(4)
Net income attributable to Intercontinental Exchange, Inc.	$	2,531	$	1,563	$	633	$	390
Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders:
Basic	$	4.50	$	2.85	$	1.12	$	0.71
Diluted	$	4.48	$	2.83	$	1.12	$	0.71
Weighted average common shares outstanding:
Basic	563		549		563		548
Diluted	565		552		566		551

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(In millions)

(Unaudited)


	Nine Months Ended September 30,				Three Months Ended September 30,
	2021		2020		2021		2020
Net income	$	2,540	$	1,580	$	637	$	394
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax benefit of $1 for both the nine and three months ended September 30, 2021 and tax expense of $1 for both the nine and three months ended September 30, 2020	(15)		(30)		(32)		48
Change in equity method investment	1		—		—		—


Other comprehensive income (loss)	(14)		(30)		(32)		48
Comprehensive income	$	2,526	$	1,550	$	605	$	442
Comprehensive income attributable to non-controlling interest	(9)		(17)		(4)		(4)
Comprehensive income attributable to Intercontinental Exchange, Inc.	$	2,517	$	1,533	$	601	$	438

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Changes in Equity and Redeemable Non-Controlling Interest

(In millions)

(Unaudited)


	Intercontinental Exchange, Inc. Stockholders’ 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, 2020	629	$	6	(68)	$	(5,200)	$	13,845	$	11,039	$	(192)	$	36	$	19,534	$	93
Other comprehensive income	—	—		—	—		—		—		(14)		—		(14)		—

Exercise of common stock options	—	—		—	—		10		—		—		—		10		—

Payments relating to treasury shares	—	—		(1)	(69)		—		—		—		—		(69)		—
Stock-based compensation	—	—		—	—		122		—		—		—		122		3
Issuance under the employee stock purchase plan	—	—		—	—		42		—		—		—		42		—

Issuance of restricted stock	2	—		—	—		—		—		—		—		—		—

Distributions of profits	—	—		—	—		—		—		—		(21)		(21)		—
Dividends paid to stockholders	—	—		—	—		—		(561)		—		—		(561)		—


Net income (loss) attributable to non-controlling interest	—	—		—	—		—		(9)		—		18		9		(9)
Net income	—	—		—	—		—		2,540		—		—		2,540		—
Balance, as of September 30, 2021	631	$	6	(69)	$	(5,269)	$	14,019	$	13,009	$	(206)	$	33	$	21,592	$	87


	Intercontinental Exchange, Inc. Stockholders’ 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 June 30, 2021	631	$	6	(68)	$	(5,267)	$	13,952	$	12,563	$	(174)	$	36	$	21,116	$	89
Other comprehensive income	—	—		—	—		—		—		(32)		—		(32)		—

Exercise of common stock options	—	—		—	—		2		—		—		—		2		—

Payments relating to treasury shares	—	—		(1)	(2)		—		—		—		—		(2)		—
Stock-based compensation	—	—		—	—		41		—		—		—		41		1
Issuance under the employee stock purchase plan	—	—		—	—		24		—		—		—		24		—



Distributions of profits													(10)		(10)
Dividends paid to stockholders	—	—		—	—		—		(187)		—		—		(187)		—


Net income (loss) attributable to non-controlling interest	—	—		—	—		—		(4)		—		7		3		(3)
Net income	—	—		—	—		—		637		—		—		637		—
Balance, as of September 30, 2021	631	$	6	(69)	$	(5,269)	$	14,019	$	13,009	$	(206)	$	33	$	21,592	$	87

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Changes in Equity and Redeemable Non-Controlling Interest — (Continued)

(In millions)

(Unaudited)


	Intercontinental Exchange, Inc. Stockholders’ 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, 2019	607	$	6	(53)	$	(3,879)	$	11,742	$	9,629	$	(243)	$	31	$	17,286	$	78
Impact of adoption of ASU 2016-13, net of tax	—	—		—	—		—		(10)		—		—		(10)		—
Other comprehensive loss	—	—		—	—		—		—		(30)		—		(30)		—
Stock consideration issued for acquisition	18	—		—	—		1,895								1,895
Exercise of common stock options	1	—		—	—		26		—		—		—		26		—
Repurchases of common stock	—	—		(14)	(1,247)		—		—		—		—		(1,247)		—
Payments relating to treasury shares	—	—		—	(72)		—		—		—		—		(72)		—
Stock-based compensation	—	—		—	—		105		—		—		—		105		9
Issuance under the employee stock purchase plan	—	—		—	—		33		—		—		—		33		—
Warrants issued to minority interest holders	—	—		—	—		3		—		—		—		3		2
Issuance of restricted stock	2	—		—	—		—		—		—		—		—		—

Distributions of profits	—	—		—	—		—		—		—		(31)		(31)		—
Dividends paid to stockholders	—	—		—	—		—		(500)		—		—		(500)		—

Redeemable non-controlling interest	—	—		—	—		—		—		—		—		—		10
Issuance of non-controlling interest	—	—		—	—		—		—		—		9		9		—
Net income (loss) attributable to non-controlling interest	—	—		—	—		—		(17)		—		22		5		(5)
Net income	—	—		—	—		—		1,580		—		—		1,580		—
Balance, as of September 30, 2020	628	$	6	(67)	$	(5,198)	$	13,804	$	10,682	$	(273)	$	31	$	19,052	$	94


	Intercontinental Exchange, Inc. Stockholders’ 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 June 30, 2020	609	$	6	(65)	$	(5,050)	$	11,856	$	10,462	$	(321)	$	41	$	16,994	$	95

Other comprehensive income	—	—		—	—		—		—		48		—		48		—
Stock consideration issued for acquisition	18	—		—	—		1,895		—		—		—		1,895		—
Exercise of common stock options	1	—		—	—		4		—		—		—		4		—
Repurchases of common stock	—	—		(2)	(148)		—		—		—		—		(148)		—

Stock-based compensation	—	—		—	—		32		—		—		—		32		1
Issuance under the employee stock purchase plan	—	—		—	—		17		—		—		—		17		—



Distributions of profits	—	—		—	—		—		—		—		(16)		(16)		—
Dividends paid to stockholders	—	—		—	—		—		(170)		—		—		(170)		—



Net income (loss) attributable to non-controlling interest	—	—		—	—		—		(4)		—		6		2		(2)
Net income	—	—		—	—		—		394		—		—		394		—
Balance, as of September 30, 2020	628	$	6	(67)	$	(5,198)	$	13,804	$	10,682	$	(273)	$	31	$	19,052	$	94

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In millions)

(Unaudited)


	Nine Months Ended September 30,
	2021		2020
Operating activities:
Net income	$	2,540	$	1,580
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	759		494
Stock-based compensation	112		105
Deferred taxes	134		67
Gain on sale of Coinbase investment	(1,227)		—
Gain on equity investments	(34)		—
Other	(6)		(48)
Changes in assets and liabilities:
Customer accounts receivable	(109)		(228)
Other current and non-current assets	(63)		(43)
Section 31 fees payable	(193)		(85)
Deferred revenue	163		120
Other current and non-current liabilities	54		(147)
Total adjustments	(410)		235
Net cash provided by operating activities	2,130		1,815

Investing activities:
Capital expenditures	(117)		(114)
Capitalized software development costs	(211)		(154)
Cash paid for acquisitions, net of cash acquired	(10)		(9,439)

Purchase of equity method investment	(23)		—
Proceeds from the sale of Coinbase investment	1,237		—
Other	(4)		5


Net cash provided by/(used in) investing activities	872		(9,702)

Financing activities:
Proceeds from debt facilities, net	—		9,606
Repayments of debt facilities	(1,248)		(1,258)
Proceeds from/(redemption of) commercial paper, net	(1,081)		1,149
Repurchases of common stock	—		(1,247)
Dividends to stockholders	(561)		(500)
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises	(69)		(72)



Other	31		31
Net cash provided by/(used in) financing activities	(2,928)		7,709
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	(4)		1
Net increase/(decrease) in cash, cash equivalents, and restricted cash and cash equivalents	70		(177)
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period	1,991		2,188
Cash, cash equivalents, and restricted cash and cash equivalents, end of period	$	2,061	$	2,011

Supplemental cash flow disclosure:
Common stock issued for acquisition	$	—	$	1,895
Cash paid for income taxes	$	809	$	558
Cash paid for interest	$	329	$	209

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

**1.**Description of Business

Nature of Business and Organization

We are a provider of market infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. These products, which span major asset classes including futures, equities, fixed income and United States, or U.S., residential mortgages, provide our customers with access to mission critical tools that are designed to increase asset class transparency and workflow efficiency.

In our Exchanges segment, we operate regulated marketplaces for the listing, trading and clearing of a broad array of derivatives contracts and financial securities.
In our Fixed Income and Data Services segment, we provide fixed income pricing, reference data, indices and execution services, as well as global credit default swap, or CDS, clearing and multi-asset class data delivery solutions.
In our Mortgage Technology segment, we provide an end-to-end technology platform that offers customers comprehensive, digital workflow tools that aim to address the inefficiencies that exist in the U.S. residential mortgage market.

We operate marketplaces, technology and provide data services in the U.S., United Kingdom, or U.K., European Union, or EU, Canada, Asia Pacific and the Middle East.

2. Summary of Significant Accounting Policies

Basis of Presentation

We prepared the accompanying unaudited consolidated financial statements in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2020. The accompanying unaudited consolidated financial statements reflect all adjustments that are, in our opinion, necessary for a fair presentation of results for the interim periods presented. We believe that these adjustments are of a normal recurring nature.

Preparing financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the amounts that are reported in our consolidated financial statements and accompanying disclosures. Actual amounts could differ from those estimates. The results of operations for the nine and three months ended September 30, 2021 are not necessarily indicative of the results to be expected for any future period or the full fiscal year.

These statements include the accounts of our wholly-owned and controlled subsidiaries. All intercompany balances and transactions between us and our wholly-owned and controlled subsidiaries have been eliminated in consolidation. For consolidated subsidiaries in which our ownership is less than 100% and for which we have control over the assets and liabilities and the management of the entity, the outside stockholders’ interests are shown as non-controlling interests. Where outside owners hold an option to require us to repurchase their interests, these amounts are shown as redeemable non-controlling interests and are subject to remeasurement when repurchase is probable.

We previously operated and presented our results as two reportable business segments. Effective October 1, 2020, we changed our internal financial reporting and the captions in which we present revenue in our financial statements because we determined that a change in reportable segments had occurred (Note 16). As of September 30, 2021, our business is conducted through three reportable business segments: our Exchanges segment, our Fixed Income and Data Services segment, and our Mortgage Technology segment. Prior periods have been restated to reflect this change. The majority of our identifiable assets are located in the U.S and U.K.

Recently Adopted Accounting Pronouncements

During the nine months ended September 30, 2021, there were no significant changes to the new and recently adopted accounting pronouncements applicable to us from those disclosed in Note 2 to the consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020, or the Form 10-K.

3. Acquisitions and Divestitures

Ellie Mae Acquisition

On September 4, 2020, we acquired Ellie Mae, Inc., or Ellie Mae, for aggregate consideration of $11.4 billion from private equity firm Thoma Bravo. The purchase price consisted of $9.5 billion in cash, as adjusted for $335 million of cash and cash equivalents held by Ellie Mae on the date of acquisition, and approximately $1.9 billion, or approximately 18.4 million shares of our common stock, based on our stock price on the acquisition date. ICE funded the cash portion of the purchase price with net proceeds from our offering of senior notes in August 2020, together with the issuance of commercial paper and borrowings under a senior unsecured term loan facility. We have evaluated the impact of this acquisition and related disclosures under Accounting Standards Codification, or ASC, 805- Business Combinations.

The purchase price has been allocated to the net tangible and identifiable intangible assets and liabilities based on the respective estimated fair values on the date of acquisition, as determined with the assistance of a third-party valuation specialist. The excess of purchase price over the net tangible and identifiable intangible assets has been recorded as goodwill. Goodwill represents potential revenue synergies related to new product development, various expense synergies and opportunities to enter new markets. The purchase price allocation is as follows (in millions):


	Purchase Price Allocation
Cash and cash equivalents	$	335
Property and equipment	125
Goodwill	7,731
Identifiable intangibles	4,442
Other assets and liabilities, net	48
Deferred tax liabilities on identifiable intangibles	(1,253)
Total purchase price allocation	$	11,428

In performing the purchase price allocation, we considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of the Ellie Mae business.

The following table sets forth the components of the intangible assets associated with the acquisition as of September 30, 2021 (in millions, except years):


	Acquisition-Date Fair Value		Accumulated Amortization		Net Book Value		Useful Life (Years)
Customer relationships	$	3,136	$	(174)	$	2,962	10 to 20
Backlog	300		(64)		236		5
Trademark/Tradenames	200		(12)		188		5 to 20
Developed Technology	739		(118)		621		7
In-process Research & Development	67		—		67		N/A
Total	$	4,442	$	(368)	$	4,074

The financial information in the table below summarizes the combined results of operations of ICE and Ellie Mae, on a pro forma basis, as though the companies had been combined as of the beginning of the period presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the period presented. Such unaudited pro forma financial information is based on the historical financial statements of ICE and Ellie Mae. This unaudited pro forma financial information is based on estimates and assumptions that have been made solely for purposes of developing such unaudited pro forma information, including, without limitation, purchase accounting adjustments, interest expense on debt issued to finance the purchase price, acquisition-related transaction costs, the removal of historical Ellie Mae intangible asset amortization and the addition of intangible asset amortization related to this acquisition. The unaudited pro forma financial information does not reflect any synergies or operating cost reductions that have been and may be achieved from the combined operations. The unaudited pro forma financial information combines the historical results for us and Ellie Mae for the nine and three months ended September 30, 2020 in the following table (in millions).


	Nine Months Ended September 30, 2020		Three Months Ended September 30, 2020
Total revenues, less transaction-based expenses	$	4,973	$	1,611


Net income attributable to ICE	$	1,638	$	497

Transaction-based expenses included within revenues, less transaction-based expenses in the table above, were not impacted by pro forma adjustments and agree to the amounts presented historically in our consolidated income statements as they relate solely to ICE and not to Ellie Mae.

Bakkt Transaction

On October 15, 2021, Bakkt Holdings, LLC, or Bakkt, completed its merger with VPC Impact Acquisition Holdings, or VIH, a special purpose acquisition company sponsored by Victory Park Capital, or VPC.

The business combination between Bakkt and VIH results in an enterprise value of approximately $2.1 billion, including approximately $479 million of cash on the combined company’s balance sheet, reflecting a contribution of approximately $123 million of cash held in VIH’s trust account, a $325 million concurrent private investment in public equity, or PIPE, of Class A common stock of the combined company, and $31 million of cash held in Bakkt accounts. The PIPE was priced at $10.00 per share and included a $47 million commitment from us. The newly combined company has been renamed Bakkt Holdings, Inc. and is listed on the New York Stock Exchange, or NYSE.

As part of the transaction, Bakkt’s existing equity holders and management rolled 100% of their equity into the combined company, and are subject to a six-month lockup period. Certain shareholders of VIH exercised their redemption rights, and at closing, Bakkt equity holders, including ICE, owned approximately 81% of the combined company, VIH’s public shareholders owned approximately 5%, VPC owned 2%, and PIPE investors (a group that also includes us) owned approximately 12% of the issued and outstanding common stock of the combined company.

Following the transaction, we continue to maintain an approximately 68% economic interest and a minority voting interest in the combined company. Prior to the closing, Bakkt revenues and operating expenses were reported within our consolidated revenues and operating expenses. Following the closing, as a consequence of holding a minority voting interest in the combined company, during the fourth quarter of 2021 we expect to deconsolidate Bakkt and treat it as an equity method investment within our financial statements. As of September 30, 2021, we fully consolidated Bakkt and did not apply accounting treatment under the "held for sale" guidance as conditional shareholder approvals had not been achieved as of that date. We expect to record a pre-tax gain on the transaction of approximately $1.3 billion during the fourth quarter of 2021, which will be included in other non-operating income within our consolidated income statement.

**4.**Allowance for Credit Losses

Accounts Receivable

We measure credit losses in accordance with Accounting Standards Update 2016-13, or ASU 2016-13, Financial Instruments- Measurement of Credit Losses on Financial Instruments. Based on the high turnover and collectability of our accounts receivable, as well as the monthly billing process for the majority of revenue, we have not experienced significant changes in our loss provision under the current expected credit loss model. Accounts receivable in our futures and clearing businesses have minimal credit risk as all clearing members are pre-screened, collection periods occur within one month and the services to customers are completed almost instantaneously. Our accounts receivable related to revenues from market data, cash trading, listings, technology services, mortgage technology, CDS transactions and bilateral OTC energy transactions subject us to credit losses, but we expeditiously limit our risk of credit loss by taking action such as terminating trading or transaction access, terminating public listings or ceasing to distribute data for entities with delinquent accounts. The concentration of risk on our accounts receivable is also mitigated by the high quality and the large number of entities comprising our customer base.

We estimate our allowance for doubtful accounts using an aging method, disaggregated based on major revenue stream categories as well as other unique revenue stream factors. The factors for pooling our accounts receivable balances are specific to each revenue stream based on our risk assessment, past patterns of collectability, our knowledge of the business, and customer-specific situations. We apply estimated reserve percentages to the risk pools identified, which are derived from historical write-off factors that are based on the accounts receivable balance’s delinquency status and adjusted as appropriate for our reasonable and supportable estimates of current and future economic conditions. We believe that historical write-off trends provide a basis for estimating future patterns of losses because there have been no significant changes in the mix or risk characteristics of the accounts receivable revenue stream pool populations from the

risk pools used to calculate our historical write-off rates. At each measurement date we reassess whether our accounts receivable pools continue to exhibit similar risk characteristics. We then determine if assets need to be isolated further as part of their own specific line item reserve due to specific events, such as a customer’s inability to meet its financial obligations (i.e. customer disputes, highly unresponsive customers, delinquency of the receivable, or other indicators of credit deterioration of customers). Lastly, the current expected credit loss impairment model is forward-looking and requires us to factor reasonable and supportable economic expectations into our allowance estimate for the asset's entire expected life, which is generally less than one year.

A reconciliation of the beginning and ending amount of allowance for doubtful accounts is as follows for the nine months ended September 30, 2021 (in millions):


	Allowance for Doubtful Accounts
Beginning balance as of December 31, 2020	$	27

Bad debt expense	10
Charge-offs	(14)
Ending balance as of September 30, 2021	$	23

Charge-offs in the table above represent the write-off of uncollectible receivables, net of recoveries. These amounts also include the impact of foreign currency translation adjustments.

5. Investments

Our equity investments, including our investment in Euroclear plc, or Euroclear, among others, are subject to valuation under ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. See Note 15 for a discussion of our determination of fair value of our financial instruments.

Investment in Coinbase

On December 1, 2014, we acquired preferred stock of Coinbase Global, Inc., or Coinbase, which operates a cryptocurrency exchange platform, for $10 million, representing a 1.4% ownership share on a fully-diluted, as-converted basis. On April 14, 2021, Coinbase completed an initial public offering, or IPO. On April 15, 2021, we completed the sale of our investment in Coinbase for $1.24 billion and recorded a gain of $1.23 billion, or $898 million net of tax, as other income in our consolidated statement of income.

Investment in OCC

We own a 40% interest in the Options Clearing Corporation, or OCC, through a direct investment by the NYSE and which is regulated by the SEC and the Commodity Futures Trading Commission, or CFTC, that we treat as an equity method investment. OCC is included in other non-current assets in the accompanying consolidated balance sheet. We recognized $42 million and $84 million during the nine months ended September 30, 2021 and 2020, respectively, and $8 million and $49 million during the three months ended September 30, 2021 and 2020, respectively, of equity earnings as our share of OCC's estimated profits, which is included in other income. Included within the amount recognized during the nine months ended September 30, 2021 is a $16 million earnings adjustment to reflect higher than reported 2020 net income than originally estimated by OCC. Similarly, included within the amount recognized during the nine months ended September 30, 2020 is a $7 million earnings adjustment to reflect higher than reported 2019 net income than originally estimated. Included within the amount recognized during the three months ended September 30, 2020 is a $36 million earnings adjustment to reflect higher than reported 2020 net income than originally estimated.

Investment in BondLink, Inc.

On May 12, 2021, we made a 35.0% strategic investment in BondLink, Inc., or BondLink, a financial technology company that provides cloud-based debt management software solutions to governments financing infrastructure in the municipal bond market. The Series B investment is designed to accelerate BondLink’s growth and product development, including by providing a variety of our market-leading data sets to municipalities as they prepare to issue bonds. We treat BondLink as an equity method investment which is included in other non-current assets in the accompanying consolidated balance sheet, and we record equity earnings of our share of BondLink's estimated profits, which we include in other income.

Investment in Euroclear

We own a 9.8% stake in Euroclear as of September 30, 2021 that we originally purchased for $631 million, and we participate on the Euroclear Board of Directors. Euroclear is a provider of post-trade services, including settlement, central securities depositories and related services for cross-border transactions across asset classes. We classify our investment in Euroclear as equity investment.

During the three months ended September 30, 2021, we became aware of an observable price change in orderly transactions of similar Euroclear investments by a third party. The transactions resulted in a fair value adjustment of our Euroclear investment, and we recorded a gain of $34 million in other income, including the impact of foreign currency translation.

During the second quarter of 2021, we began to explore a sale of our equity investment in Euroclear, and as a result, we reclassified the carrying value of our Euroclear investment at that time, from other non-current assets to other current assets within our accompanying consolidated balance sheet. As of September 30, 2021, the adjusted fair value of our Euroclear investment in other current assets is $701 million. On October 18, 2021, we announced that we had reached an agreement to sell our entire 9.8% stake in Euroclear for €709 million ($821 million based on the euro/U.S. dollar exchange rate of 1.1578 as of September 30, 2021). The sale is subject to customary closing conditions and regulatory approval.

Additionally, we recognized dividend income of $60 million and $30 million during the nine and three months ended September 30, 2021, respectively, from Euroclear, which is included in other income. As a result of a 2020 European regulation limiting dividend payments, we did not receive a Euroclear dividend in 2020, but have now received two dividend payments during the nine months ended September 30, 2021.

6. Revenue Recognition

Substantially all of our revenues are considered to be revenues from contracts with customers. The related accounts receivable balances are recorded in our balance sheets as customer accounts receivable. We do not have obligations for warranties, returns or refunds to customers, other than rebates, which are settled each period and therefore do not result in variable consideration. We do not have significant revenue recognized from performance obligations that were satisfied in prior periods, and we do not have any transaction price allocated to unsatisfied performance obligations other than in our deferred revenue.

Deferred revenue represents our contract liabilities related to our annual, original and other listings revenues, certain data services, clearing services, mortgage technology services and other revenues. Deferred revenue is our only significant contract liability. See Note 8 for our discussion of deferred revenue balances, activity, and expected timing of recognition.

We have elected not to provide disclosures about the transaction price allocated to unsatisfied performance obligations if contract durations are less than one year, or if we are not required to estimate the transaction price. For all of our contracts with customers, except for listings and certain data, clearing and mortgage services, our performance obligations are short term in nature and there is no significant variable consideration. In addition, we have elected the practical expedient of excluding sales taxes from transaction prices. We have assessed the costs incurred to obtain or fulfill a contract with a customer and determined them to be immaterial.

Certain judgments and estimates are used in the identification and timing of satisfaction of performance obligations and the related allocation of transaction price. We believe that these represent a faithful depiction of the transfer of services to our customers. Refer to Note 5 to the consolidated financial statements included in Part II, Item 8 of our 2020 Form 10-K where our primary revenue contract classifications are described in detail.

The following table depicts the disaggregation of our revenue according to business line and segment (in millions). Amounts here have been aggregated as they follow consistent revenue recognition patterns, and are consistent with the segment information in Note 16:


	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Nine Months Ended September 30, 2021:
Total revenues	$	4,376	$	1,403	$	1,061	$	6,840
Transaction-based expenses	1,534		—		—		1,534
Total revenues, less transaction-based expenses	$	2,842	$	1,403	$	1,061	$	5,306

Timing of Revenue Recognition
Services transferred at a point in time	$	1,590	$	162	$	631	$	2,383
Services transferred over time	1,252		1,241		430		2,923
Total revenues, less transaction-based expenses	$	2,842	$	1,403	$	1,061	$	5,306


	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Nine Months Ended September 30, 2020:
Total revenues	$	4,406	$	1,360	$	245	$	6,011
Transaction-based expenses	1,646		—		—		1,646
Total revenues, less transaction-based expenses	$	2,760	$	1,360	$	245	$	4,365

Timing of Revenue Recognition
Services transferred at a point in time	$	1,571	$	199	$	207	$	1,977
Services transferred over time	1,189		1,161		38		2,388
Total revenues, less transaction-based expenses	$	2,760	$	1,360	$	245	$	4,365


	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Three Months Ended September 30, 2021:
Total revenues	$	1,434	$	477	$	366	$	2,277
Transaction-based expenses	475		—		—		475
Total revenues, less transaction-based expenses	$	959	$	477	$	366	$	1,802

Timing of Revenue Recognition
Services transferred at a point in time	$	534	$	55	$	214	$	803
Services transferred over time	425		422		152		999
Total revenues, less transaction-based expenses	$	959	$	477	$	366	$	1,802


	Exchanges Segment		Fixed Income and Data Services Segment		Mortgage Technology Segment		Total Consolidated
Three Months Ended September 30, 2020:
Total revenues	$	1,337	$	450	$	143	$	1,930
Transaction-based expenses	519		—		—		519
Total revenues, less transaction-based expenses	$	818	$	450	$	143	$	1,411

Timing of Revenue Recognition
Services transferred at a point in time	$	429	$	55	$	109	$	593
Services transferred over time	389		395		34		818
Total revenues, less transaction-based expenses	$	818	$	450	$	143	$	1,411

The Exchanges segment revenues above include $623 million and $589 million of data services revenues for the nine months ended September 30, 2021 and 2020, respectively, and $208 million and $201 million during the three months ended September 30, 2021 and 2020, respectively. Fixed Income and Data Services segment revenues above include $1.2 billion and $1.1 billion of data services revenues for the nine months ended September 30, 2021 and 2020, respectively, and $414 million and $388 million during the three months ended September 30, 2021 and 2020, respectively. Our data services revenues are transferred over time, and a majority of those revenues are performed over a short period of time of one month or less and relate to subscription-based data services billed monthly, quarterly or annually in advance. These revenues are recognized ratably over time as our data delivery performance obligations are met consistently throughout the period.

The Exchanges segment revenues above also include $356 million and $334 million for the nine months ended September 30, 2021 and 2020, respectively, and $123 million and $111 million during the three months ended September 30, 2021 and 2020, respectively, of services transferred over time related to listings, as well as $190 million and $186 million for the nine months ended September 30, 2021 and 2020, respectively, and $65 million and $50 million during the three months ended September 30, 2021 and 2020, respectively, for services transferred over time related to risk management of open interest performance obligations. In addition, the Exchanges segment revenues include $83 million and $80 million for the nine months ended September 30, 2021 and 2020, respectively, and $29 million and $27 million during the three months ended September 30, 2021 and 2020, respectively, of services transferred over time related to regulatory fees, trading permits, and software licenses.

The Fixed Income and Data Services segment revenues above also include $21 million and $23 million for the nine months ended September 30, 2021 and 2020, respectively, and $8 million and $7 million during the three months ended September 30, 2021 and 2020, respectively, for services transferred over time related to risk management of open interest performance obligations, primarily in our CDS business.

The Mortgage Technology segment revenues above include $26 million of professional services revenues for the nine months ended September 30, 2021 and $9 million during the three months ended September 30, 2021, for services transferred over time. The remaining Mortgage Technology segment revenues transferred over time in the table above primarily relate to our origination technology revenue where performance obligations consist of a series of distinct services and are recognized over the contract terms as subscription performance obligations are satisfied. Contracts generally range from one year to five years.

7. Goodwill and Other Intangible Assets

The following is a summary of the activity in the goodwill balance for the nine months ended September 30, 2021 (in millions):


Goodwill balance at December 31, 2020	$	21,291
Acquisitions	3
Foreign currency translation	(7)
Other activity, net	22
Goodwill balance at September 30, 2021	$	21,309

The following is a summary of the activity in the other intangible assets balance for the nine months ended September 30, 2021 (in millions):


Other intangible assets balance at December 31, 2020	$	14,408

Acquisitions	8
Foreign currency translation	(8)

Amortization of other intangible assets	(469)
Other activity, net	(11)
Other intangible assets balance at September 30, 2021	$	13,928

Foreign currency translation adjustments result from a portion of our goodwill and other intangible assets being held at our U.K., EU and Canadian subsidiaries, whose functional currencies are not the U.S. dollar. The change in other activity, net, primarily relates to adjustments to the fair value of the net tangible and intangible assets made within one year of acquisitions, with a corresponding adjustment to goodwill. We have performed an analysis of impairment indicators and did not recognize any impairment losses on goodwill or other intangible assets during the nine and three months ended September 30, 2021.

8. Deferred Revenue

Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $422 million as of September 30, 2021, including $322 million in current deferred revenue and $100 million in other non-current liabilities. The changes in our deferred revenue during the nine months ended September 30, 2021 are as follows (in millions):


	Annual Listings Revenues		Original Listings Revenues		Other Listings Revenues		Data Services and Other Revenues		Mortgage Technology		Total
Deferred revenue balance at December 31, 2020	$	—	$	13	$	92	$	95	$	59	$	259
Additions	397		26		42		352		60		877
Amortization	(301)		(24)		(31)		(319)		(39)		(714)
Deferred revenue balance at September 30, 2021	$	96	$	15	$	103	$	128	$	80	$	422

The changes in our deferred revenue during the nine months ended September 30, 2020 are as follows (in millions):


	Annual Listings Revenues		Original Listings Revenues		Other Listings Revenues		Data Services and Other Revenues		Mortgage Technology		Total
Deferred revenue balance at December 31, 2019	$	—	$	19	$	94	$	88	$	—	$	201
Additions	384		9		34		367		25		819
Amortization	(288)		(15)		(31)		(326)		—		(660)
Deferred revenue balance at September 30, 2020	$	96	$	13	$	97	$	129	$	25	$	360

Included in the amortization recognized during the nine months ended September 30, 2021 is $128 million related to the deferred revenue balance as of December 31, 2020. Included in the amortization recognized for the nine months ended September 30, 2020 is $92 million related to the deferred revenue balance as of December 31, 2019. As of September 30, 2021, the remaining deferred revenue balance will be recognized over the period of time we satisfy our performance obligations as described in Note 6.

9. Debt

Our total debt, including short-term and long-term debt, consisted of the following as of September 30, 2021 and December 31, 2020 (in millions):


	As of September 30, 2021		As of December 31, 2020
Debt:
Short-term debt:
Commercial Paper	$	1,324	$	2,405

2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022)	499		—
Other short-term debt	8		6
Total short-term debt	1,831		2,411
Long-term debt:

2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022)	—		498
2023 Senior Notes (floating rate senior unsecured notes due June 15, 2023)	—		1,244
2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023)	996		995
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023)	399		398
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023)	797		796
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025)	1,246		1,245
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027)	497		496
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028)	593		593
2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030)	1,233		1,232
2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032)	1,483		1,481
2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040)	1,230		1,229
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048)	1,230		1,230
2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050)	1,220		1,219
2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060)	1,470		1,470
Total long-term debt	12,394		14,126
Total debt	$	14,225	$	16,537

Our fixed rate senior notes of $12.9 billion have a weighted average maturity of 15 years and a weighted average cost of 3.0% per annum.

During the three months ended September 30, 2021, we used the proceeds from commercial paper issuances and cash on hand to fund the redemption of $1.25 billion aggregate principal amount of senior floating rate notes due in June 2023, or the Floating Rate Notes. We delivered a notice of redemption of the Floating Rate Notes to Wells Fargo Bank, National Association, as trustee, under the indenture governing the Floating Rate Notes, which was delivered to the holders of the Floating Rate Notes on September 17, 2021, and they were subsequently redeemed on September 27, 2021. In connection with this redemption, we recorded $4 million in accelerated unamortized deferred loan costs, which are included in interest expense in our consolidated statements of income for the three months ended September 30, 2021.

Credit Facilities

We have a $3.8 billion senior unsecured revolving credit facility, or the Credit Facility, with a maturity date of August 21, 2025 and future capacity to increase our borrowings under the Credit Facility by an additional $625 million, subject to the consent of the lenders funding the increase and certain other conditions. No amounts were outstanding under the Credit Facility as of September 30, 2021. On October 15, 2021, we agreed with the lenders to extend the maturity date of the Credit Facility to October 15, 2026, among other items.

As of September 30, 2021, of the $3.8 billion that is currently available for borrowing under the Credit Facility, $1.3 billion is required to back-stop the amount outstanding under our U.S. dollar commercial paper program, or the Commercial Paper Program, and $172 million is required to support certain broker-dealer and other subsidiary commitments. The amount required to back-stop the amounts outstanding under the Commercial Paper Program will fluctuate as we increase or decrease our commercial paper borrowings. The remaining $2.3 billion is available for working capital and general corporate purposes including, but not limited to, acting as a back-stop to future increases in the amounts outstanding under the Commercial Paper Program.

Our India subsidiaries maintain $20 million of credit lines for their general corporate purposes. As of September 30, 2021, they had borrowed $8 million, which is reflected as “other short-term debt” in the table above.

Commercial Paper Program

Our Commercial Paper Program is currently backed by the borrowing capacity available under the Credit Facility, as described above. The effective interest rate of commercial paper issuances does not materially differ from short-term interest rates, which fluctuate due to market conditions and as a result may impact our interest expense. During the nine months ended September 30, 2021, we had net repayments of $1.1 billion under the Commercial Paper Program. We used $1.2 billion of proceeds received from the sale of our Coinbase investment to pay down the commercial paper balance.

Commercial paper notes of $1.3 billion with original maturities ranging from one to 75 days were outstanding as of September 30, 2021, with a weighted average interest rate of 0.24% per annum, and a weighted average remaining maturity of 28 days.

10. Share-Based Compensation

We currently sponsor employee and director stock option, restricted stock and employee stock purchase plans. Stock options and restricted stock are granted at the discretion of the Compensation Committee of our Board of Directors, or Board, based on the estimated fair value on the date of grant. The fair value of the stock options and restricted stock on the date of grant is recognized as expense over the vesting period, net of forfeitures. The non-cash compensation expenses recognized in our consolidated statements of income for stock options, restricted stock and under our employee stock purchase plan, net of amounts classified as capitalized software, were $112 million and $105 million for the nine months ended September 30, 2021 and 2020, respectively, and $39 million and $32 million during the three months ended September 30, 2021 and 2020, respectively. This includes the expense related to the Bakkt Incentive Units, described below.

Stock Option Plans

We use the Black-Scholes option pricing model to value our stock option awards. During the nine months ended September 30, 2021 and 2020, we used the assumptions in the table below to compute the value:


	Nine Months Ended September 30,
Assumptions:	2021	2020
Risk-free interest rate	0.64%	1.46%
Expected life in years	5.7	5.8
Expected volatility	24%	20%
Expected dividend yield	1.16%	1.30%
Estimated weighted-average fair value of options granted per share	$22.70	$16.65

The risk-free interest rate is based on the zero-coupon U.S. Treasury yield curve in effect at the date of grant. The expected life is derived from historical and anticipated future exercise patterns. Expected volatility is based on historical volatility data of our stock.

Restricted Stock Plans

Restricted shares are used as an incentive to attract and retain qualified employees and to align our and our stockholders' interests by linking actual performance to both short and long-term stockholder return. We issue awards that may contain a combination of time, performance and/or market conditions. The grant date fair value of each award is based on the closing stock price of our stock at the date of grant. For time-based restricted stock, we recognize expense ratably over the vesting period, which is typically three years, net of forfeitures.

In February 2021, we reserved a maximum of 0.7 million restricted shares for potential issuance as performance-based restricted shares to certain of our employees. The number of shares ultimately granted under this award will be based on our actual financial performance as compared to financial performance targets set by our Board and the Compensation Committee for the year ending December 31, 2021, and will also be subject to a market condition reduction based on how our 2021 total stockholder return, or TSR, compares to that of the S&P 500 Index. The maximum compensation expense to be recognized under these performance-based restricted shares is $77 million if the maximum financial performance target is met and all 0.7 million shares vest. The compensation expense to be recognized under these performance-based restricted shares will be $38 million if the target financial performance is met, which would result in 0.4 million shares vesting. For these awards with performance conditions, we recognize expense on an accelerated basis over the three-year vesting period based on our quarterly assessment of the probable 2021 actual financial performance as compared to the 2021 financial performance targets. As of September 30, 2021, our best estimate is that the financial performance level will be above target for 2021. Based on this assessment, we recorded non-cash compensation expense of

$18 million and $9 million for the nine and three months ended September 30, 2021, respectively, related to these awards and the remaining $29 million in non-cash compensation expense will be recorded on an accelerated basis over the remaining vesting period, including $8 million which will be recorded over the remainder of 2021.

We also issue awards with a market condition but no performance condition. The fair value of these awards is estimated based on a simulation of various outcomes and includes inputs such as our stock price on the grant date, the valuation of historical awards with market conditions, the relatively low likelihood that the market condition will affect the number of shares granted (as the market condition only affects shares granted in excess of certain financial performance targets), and our expectation of achieving the financial performance targets.

Bakkt Incentive Units

We sponsor the Bakkt Equity Incentive Plan under which Bakkt issues various Bakkt preferred, common and phantom, or participation, equity unit awards. These awards were made to certain employees and board members of Bakkt. The units are unvested at the issuance date, are subject to the vesting terms in the award agreements and upon vesting are converted into Bakkt equity or cash. Upon the closing of the Bakkt transaction on October 15, 2021 (Note 3), one-third of these units vested with the remaining two-thirds vesting on the first and second anniversaries of the closing.

During the nine months ended September 30, 2020, there was a $300 million capital call related to the acquisition of Bridge2 Solutions that triggered a market condition of certain of these Bakkt equity incentive awards. The market condition is based on numerous possible Bakkt transaction or event scenarios established on the original date of grant, each of which have a fixed fair market value. Over the life of these awards, we are required to estimate the most likely outcome and reflect the cumulative financial statement impact of any changes between outcomes. As a result, during the nine months ended September 30, 2020, we incurred a $10 million compensation expense related to these awards that was recorded as an acquisition-related cost.

11. Equity

Stock Repurchase Program

In December 2019, our Board approved an aggregate of $2.4 billion for future repurchases of our common stock with no fixed expiration date that became effective on January 1, 2020. We fund repurchases from our operating cash flow or borrowings under our debt facilities or our Commercial Paper Program. Repurchases may be made from time to time on the open market, through established trading plans, in privately-negotiated transactions or otherwise, in accordance with all applicable securities laws, rules and regulations. We may begin or discontinue stock repurchases at any time and may amend or terminate a Rule 10b5-1 trading plan at any time or enter into additional plans. We discontinued stock repurchases and terminated our Rule 10b5-1 trading plan in August 2020 in connection with the Ellie Mae acquisition and had no stock repurchases during the nine months ended September 30, 2021. During the nine months ended September 30, 2020, we repurchased 10.4 million shares of our outstanding common stock at a cost of $948 million under our Rule 10b5-1 trading plan and 3.2 million shares at a cost of $299 million on the open market during an open trading period. As of September 30, 2021, the remaining balance of Board approved funds for future repurchases is $1.2 billion. The approval of our Board for the share repurchases does not obligate us to acquire any particular amount of our common stock. In addition, our Board may increase or decrease the amount available for repurchases from time to time.

Dividends

During the nine months ended September 30, 2021 and 2020, we declared and paid cash dividends per share of $0.99 and $0.90, respectively, for an aggregate payout of $561 million and $500 million, respectively. During the three months ended September 30, 2021 and 2020, we declared and paid cash dividends per share of $0.33 and $0.30, respectively, for an aggregate payout of $187 million and $170 million, respectively. The declaration of dividends is subject to the discretion of our Board. Our Board has adopted a quarterly dividend declaration policy providing that the declaration of any dividends will be determined quarterly by the Board or the Audit Committee, taking into account such factors as our evolving business model, prevailing business conditions, our financial results and capital requirements and other considerations which our Board deems relevant, without a predetermined annual net income payout ratio.

Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the accumulated balances for each component of other comprehensive income (loss) (in millions):


	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	Foreign currency translation adjustments		Comprehensive income from equity method investment		Employee benefit plans adjustments		Total















Balance, as of December 31, 2020	$	(134)	$	1	$	(59)	$	(192)
Other comprehensive income (loss)	(16)		2		—		(14)
Income tax benefit (expense)	1		(1)		—		—
Net current period other comprehensive income (loss)	(15)		1		—		(14)
Balance, as of September 30, 2021	$	(149)	$	2	$	(59)	$	(206)


	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	Foreign currency translation adjustments		Comprehensive income from equity method investment		Employee benefit plans adjustments		Total















Balance, as of June 30, 2021	$	(117)	$	2	$	(59)	$	(174)
Other comprehensive income (loss)	(33)		—		—		(33)
Income tax benefit (expense)	1		—		—		1
Net current period other comprehensive income (loss)	(32)		—		—		(32)
Balance, as of September 30, 2021	$	(149)	$	2	$	(59)	$	(206)


	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	Foreign currency translation adjustments		Comprehensive income from equity method investment		Employee benefit plans adjustments		Total















Balance, as of December 31, 2019	$	(177)	$	1	$	(67)	$	(243)
Other comprehensive income (loss)	(29)		—		—		(29)
Income tax benefit (expense)	(1)		—		—		(1)
Net current period other comprehensive income (loss)	(30)		—		—		(30)
Balance, as of September 30, 2020	$	(207)	$	1	$	(67)	$	(273)


	Changes in Accumulated Other Comprehensive Income (Loss) by Component
	Foreign currency translation adjustments		Comprehensive income from equity method investment		Employee benefit plans adjustments		Total















Balance, as of June 30, 2020	$	(255)	$	1	$	(67)	$	(321)
Other comprehensive income (loss)	49		—		—		49
Income tax benefit (expense)	(1)		—		—		(1)
Net current period other comprehensive income (loss)	48		—		—		48
Balance, as of September 30, 2020	$	(207)	$	1	$	(67)	$	(273)

12. Income Taxes

Our effective tax rate was 29% and 24% for the nine months ended September 30, 2021 and 2020, respectively, and 23% and 32% during the three months ended September 30, 2021 and 2020, respectively. The effective tax rate for the nine months ended September 30, 2021 was higher than the effective tax rate for the comparable period in 2020 primarily due to the deferred income tax impact resulting from the U.K. tax law changes enacted in June 2021, which increased the U.K. corporate income tax rate from 19% to 25% effective April 1, 2023. The effective tax rate for the three months ended September 30, 2021 was lower than the effective tax rate for the comparable period in 2020 primarily due to the deferred income tax impact resulting from the U.K. tax law changes enacted in July 2020, which increased the U.K. corporate income tax rate from 17% to 19% effective April 1, 2020.

On March 11, 2021, the American Rescue Plan Act, or ARPA, was signed into law. The ARPA enacted certain provisions that are relevant to corporate income tax. These provisions did not have a material impact on our income tax provision for the nine and three months ended September 30, 2021.

13. Clearing Operations

We operate six clearing houses, each of which acts as a central counterparty that becomes the buyer to every seller and the seller to every buyer for its clearing members or participants, or Members. Through this central counterparty function, the clearing houses provide financial security for each transaction for the duration of the position by limiting counterparty credit risk.

Our clearing houses are responsible for providing clearing services to each of our futures exchanges, and in some cases to third-party execution venues, and are as follows, referred to herein collectively as "the ICE Clearing Houses":


Clearing House	Products Cleared	Exchange where Executed	Location
ICE Clear Europe	Energy, agricultural, interest rates and equity index futures and options contracts and OTC European CDS instruments	ICE Futures Europe, ICE Futures U.S., ICE Endex, ICE Futures Abu Dhabi and third-party venues	U.K.
ICE Clear U.S.	Agricultural, metals, and foreign exchange, or FX, index futures and options contracts, equity futures contracts, and digital assets futures contracts	ICE Futures U.S.	U.S.
ICE Clear Credit	OTC North American, European, Asian-Pacific and Emerging Market CDS instruments	Creditex and third-party venues	U.S.
ICE Clear Netherlands	Derivatives on equities and equity indices traded on regulated markets	ICE Endex	The Netherlands
ICE Clear Singapore	Energy, metals and financial futures products and digital assets futures contracts	ICE Futures Singapore	Singapore
ICE NGX	Physical North American natural gas, electricity and oil futures	ICE NGX	Canada

Original & Variation Margin

Each of the ICE Clearing Houses generally requires all Members to deposit collateral in cash or certain pledged assets. The collateral deposits are known as “original margin.” In addition, the ICE Clearing Houses may make intraday original margin calls in circumstances where market conditions require additional protection. The daily profits and losses to and from the ICE Clearing Houses due to the marking-to-market of open contracts is known as “variation margin.” With the exception of ICE NGX’s physical natural gas and physical power products discussed separately below, the ICE Clearing Houses mark all outstanding contracts to market, and therefore pay and collect variation margin, at least once daily.

The amounts that Members are required to maintain are determined by proprietary risk models established by each ICE Clearing House and reviewed by the relevant regulators, independent model validators, risk committees and the boards of directors of the respective ICE Clearing House. The amounts required may fluctuate over time. Each of the ICE Clearing Houses is a separate legal entity and is not subject to the liabilities of the others, or the obligations of Members of the other ICE Clearing Houses.

Should a particular Member fail to deposit its original margin or fail to make a variation margin payment, when and as required, the relevant ICE Clearing House may liquidate or hedge the defaulting Member's open positions and use their original margin and guaranty fund deposits to pay any amount owed. In the event that the defaulting Member's deposits are not sufficient to pay the amount owed in full, the ICE Clearing Houses will first use their respective contributions to the guaranty fund, often referred to as Skin In The Game, or SITG, to pay any remaining amount owed. In the event that the SITG is not sufficient, the ICE Clearing Houses may utilize the respective guaranty fund deposits, or collect limited additional funds from their respective non-defaulting Members on a pro-rata basis, to pay any remaining amount owed.

As of September 30, 2021 and December 31, 2020, the ICE Clearing Houses had received or had been pledged $195.2 billion and $154.1 billion, respectively, in cash and non-cash collateral in original margin and guaranty fund deposits to cover price movements of underlying contracts for both periods.

Guaranty Funds & ICE Contribution

As described above, mechanisms have been created, called guaranty funds, to provide partial protection in the event of a Member default. With the exception of ICE NGX, each of the ICE Clearing Houses requires that each Member make deposits into a guaranty fund.

In addition, we have contributed our own capital that could be used if a defaulting Member’s original margin and guaranty fund deposits are insufficient. Such amounts are recorded as long-term restricted cash and cash equivalents in our balance sheets and are as follows (in millions):


	ICE Portion of Guaranty Fund Contribution		Default insurance
Clearing House	As of September 30, 2021	As of December 31, 2020	As of September 30, 2021	As of December 31, 2020
ICE Clear Europe	$247	$237	$75	$75
ICE Clear U.S.	83	103	25	25
ICE Clear Credit	50	50	50	50
ICE Clear Netherlands	2	2	N/A	N/A
ICE Clear Singapore	1	1	N/A	N/A
ICE NGX	15	15	100	100
Total	$398	$408	$250	$250

Of our total contribution to ICE Clear U.S. above, as of September 30, 2021, $15 million was solely applicable to any losses associated with a default in Bitcoin contracts and other digital asset contracts that ICE Clear U.S. may clear in the future. In February 2021, we decreased our contribution to ICE Clear U.S.’s guaranty fund applicable to any losses associated with a default in Bitcoin contracts and other digital asset contracts by $20 million from $35 million as of December 31, 2020. In March 2021, we increased our contribution to ICE Clear Europe's guaranty fund by $10 million in connection with the launch of ICE Futures Abu Dhabi Limited.

We maintain default insurance as an additional layer of Member default protection. The default insurance was added in September 2019 and has a three-year term for the following clearing houses in the following amounts: ICE Clear Europe - $75 million; ICE Clear U.S. - $25 million and ICE Clear Credit - $50 million. The default insurance layer resides after and in addition to the ICE Clear Europe, ICE Clear U.S. and ICE Clear Credit SITG contributions and before the guaranty fund contributions of the non-defaulting Members.

Similar to SITG, the default insurance layer is not intended to replace or reduce the position risk-based amount of the guaranty fund. As a result, the default insurance layer is not a factor that is included in the calculation of the Members' guaranty fund contribution requirement. Instead, it serves as an additional, distinct, and separate default resource that should serve to further protect the non-defaulting Members’ guaranty fund contributions from being mutualized in the event of a default.

As of September 30, 2021, ICE NGX maintains a guaranty fund utilizing a $115 million letter of credit and a default insurance policy, discussed below.

Cash and Invested Deposits

We have recorded cash and invested margin deposits and amounts due in our balance sheets as current assets with corresponding current liabilities to the Members. As of September 30, 2021, our cash and invested margin deposits were as follows (in millions):


	ICE Clear Europe (1)		ICE Clear Credit		ICE Clear U.S.		ICE NGX		Other ICE Clearing Houses		Total
Original margin	$	52,515	$	39,977	$	6,711	$	—	$	4	$	99,207
Unsettled variation margin, net	—		—		—		357		—		357
Guaranty fund	4,286		3,373		626		—		4		8,289
Delivery contracts receivable/payable, net	—		—		—		845		—		845
Total	$	56,801	$	43,350	$	7,337	$	1,202	$	8	$	108,698

As of December 31, 2020, our cash and invested margin deposits were as follows (in millions):


	ICE Clear Europe (2)		ICE Clear Credit		ICE Clear U.S.		ICE NGX		Other ICE Clearing Houses		Total
Original margin	$	33,726	$	34,922	$	7,288	$	—	$	12	$	75,948
Unsettled variation margin, net	—		—		—		99		—		99
Guaranty fund	4,374		2,574		502		—		5		7,455
Delivery contracts receivable/payable, net	—		—		—		581		—		581
Total	$	38,100	$	37,496	$	7,790	$	680	$	17	$	84,083

(1) $51.6 billion and $5.2 billion is related to futures/options and CDS, respectively.

(2) $31.8 billion and $6.3 billion is related to futures/options and CDS, respectively.

Our cash and invested margin and guaranty fund deposits are maintained in accounts with national banks and highly-rated financial institutions or secured through direct investments, primarily in U.S. Treasury securities or reverse repurchase agreements with primarily overnight maturities. Due to the highly liquid nature and the short period of time to maturity, the fair values of our cash and invested deposits are determined to approximate carrying value.

To provide a tool to address the liquidity needs of our clearing houses and manage the liquidation of margin and guaranty fund deposits held in the form of cash and high quality sovereign debt, ICE Clear Europe, ICE Clear Credit and ICE Clear U.S. have entered into Committed Repurchase Agreement Facilities, or Committed Repo. Additionally, ICE Clear Credit and ICE Clear Netherlands have entered into Committed FX Facilities to support these liquidity needs. As of September 30, 2021, the following facilities were in place:

ICE Clear Europe: $1.0 billion in Committed Repo to finance U.S. dollar, euro and pound sterling deposits.
ICE Clear Credit: $300 million in Committed Repo (U.S. dollar based) to finance U.S. dollar denominated sovereign debt and euro deposits, €250 million in Committed Repo (euro based) to finance euro and U.S. dollar denominated sovereign debt deposits, and €1.9 billion in Committed FX Facilities to finance euro payment obligations.
ICE Clear U.S.: $250 million in Committed Repo to finance U.S. dollar denominated sovereign debt deposits.
ICE Clear Netherlands: €10 million in Committed FX Facilities to finance euro payment obligations.

Details of our cash and invested deposits are as follows (in millions):


Clearing House	Investment Type	As of September 30, 2021		As of December 31, 2020
ICE Clear Europe	National Bank Account (1)	$	16,216	$	10,887
ICE Clear Europe	Reverse repo	28,299		23,696
ICE Clear Europe	Sovereign Debt	11,750		3,501
ICE Clear Europe	Demand deposits	536		16
ICE Clear Credit	National Bank Account	36,702		30,275
ICE Clear Credit	Reverse repo	3,937		4,520
ICE Clear Credit	Demand deposits	2,711		2,701
ICE Clear U.S.	Reverse repo	5,862		5,690
ICE Clear U.S.	Sovereign Debt	1,475		2,100
Other ICE Clearing Houses	Demand deposits	8		17
ICE NGX	Unsettled Variation Margin and Delivery Contracts Receivable/Payable	1,202		680
Total		$	108,698	$	84,083

(1) As of September 30, 2021, ICE Clear Europe held €11.3 billion ($13.1 billion based on the euro/U.S. dollar exchange rate of 1.1578 as of September 30, 2021) at the European Central Bank, or ECB, £2.3 billion ($3.1 billion based on the pound sterling/U.S. dollar exchange rate of 1.3474 as of September 30, 2021) at the Bank of England, or BOE, and €10 million ($12 million based on the above exchange rate) at the BOE. As of December 31, 2020, ICE Clear Europe held €6.3 billion ($7.7 billion based on the euro/U.S. dollar exchange rate of 1.2216 as of December 31, 2020) at De Nederlandsche Bank, or DNB, £2.3 billion ($3.1 billion based on the pound sterling/U.S. dollar exchange rate of 1.3665 as of December 31, 2020) at the BOE and €10 million ($12 million based on the above exchange rate) at the BOE.

Other Deposits

In addition to the cash and invested deposits above, the ICE Clearing Houses have also received other assets from Members, which include government obligations, and may include other non-cash collateral such as letters of credit at ICE NGX, or gold on rare occasions at ICE Clear Europe, to mitigate credit risk. For certain deposits, we may impose discount or “haircut” rates to ensure adequate collateral if market values fluctuate. The value-related risks and rewards of these assets remain with the Members. Any gain or loss accrues to the Member. The ICE Clearing Houses do not, in the ordinary course, rehypothecate or re-pledge these assets. These pledged assets are not reflected in our balance sheets, and are as follows (in millions):


	As of September 30, 2021
	ICE Clear Europe		ICE Clear Credit		ICE Clear U.S.		ICE NGX		Total
Original margin:
Government securities at face value	$	57,072	$	7,543	$	17,599	$	—	$	82,214
Letters of credit	—		—		—		2,696		2,696
ICE NGX cash deposits	—		—		—		611		611
Total	$	57,072	$	7,543	$	17,599	$	3,307	$	85,521
Guaranty fund:
Government securities at face value	$	626	$	163	$	241	$	—	$	1,030


	As of December 31, 2020
	ICE Clear Europe		ICE Clear Credit		ICE Clear U.S.		ICE NGX		Total
Original margin:
Government securities at face value	$	36,295	$	9,523	$	20,216	$	—	$	66,034
Letters of credit	—		—		—		2,329		2,329
ICE NGX cash deposits	—		—		—		405		405
Total	$	36,295	$	9,523	$	20,216	$	2,734	$	68,768
Guaranty fund:
Government securities at face value	$	508	$	515	$	250	$	—	$	1,273

ICE NGX

ICE NGX is the central counterparty to Members on opposite sides of its physically-settled contracts, and the balance related to delivered but unpaid contracts is recorded as a delivery contract net receivable, with an offsetting delivery contract net payable in our balance sheets. Unsettled variation margin equal to the fair value of open contracts is recorded as of each balance sheet date. ICE NGX marks all outstanding contracts to market daily, but only collects variation margin when a Member's open position falls outside a specified percentage of its pledged collateral. Due to the highly liquid nature and the short period of time to maturity, the fair values of our delivery contract net payable and net receivable are determined to approximate carrying value.

ICE NGX requires Members to maintain cash or letters of credit to serve as collateral in the event of default. The cash is maintained in a segregated bank account, held in trust and remains the property of the Member, therefore, it is not included in our balance sheets. ICE NGX maintains the following accounts with a third-party Canadian chartered bank which are available in the event of physical settlement shortfalls, subject to certain conditions:


Account Type	As of September 30, 2021 (In C$ millions)	As of September 30, 2021 (In $USD millions)
Daylight liquidity facility	C$300	$237
Overdraft facility	20	16
Total	C$320	$253

As of September 30, 2021, ICE NGX maintains a guaranty fund of $115 million funded by a $100 million letter of credit issued by a major Canadian chartered bank, and backed by default insurance underwritten by Export Development Canada, or EDC, a Crown corporation operated at arm’s length from the Canadian government, plus $15 million held as restricted cash to fund the first loss amount that ICE NGX is responsible for under the default insurance policy. In the event of a participant default where the Member’s collateral is depleted, the shortfall would be covered by a draw down on the letter of credit following which ICE NGX would file a claim under the default insurance to recover additional losses up to $100 million beyond the $15 million first-loss amount that ICE NGX is responsible for under the default insurance policy.

Clearing House Exposure

Each ICE Clearing House bears financial counterparty credit risk and provides a central counterparty guarantee, or performance guarantee, to its Members. To reduce their exposure, the ICE Clearing Houses have a risk management program with both initial and ongoing membership standards. Excluding the effects of original and variation margin, guaranty fund and collateral requirements and default insurance, the ICE Clearing Houses’ maximum estimated exposure for this guarantee is $172.2 billion as of September 30, 2021, which represents the maximum estimated value by the ICE Clearing Houses of a hypothetical one-day movement in pricing of the underlying unsettled contracts. This value was

determined using proprietary risk management software that simulates gains and losses based on historical market prices, volatility and other factors present at that point in time for those particular unsettled contracts. Future actual market price volatility could result in the exposure being significantly different than this amount.

14. Legal Proceedings

In the ordinary course of our business, from time to time we are subject to legal proceedings, lawsuits, government investigations and other claims with respect to a variety of matters. In addition, we are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties, restrictions on our business or other sanctions. We record estimated expenses and reserves for legal or regulatory matters or other claims when these matters present loss contingencies that are probable and the related amount is reasonably estimable. Any such accruals may be adjusted as circumstances change. Assessments of losses are inherently subjective and involve unpredictable factors. While the outcome of legal and regulatory matters is inherently difficult to predict and/or the range of loss often cannot be reasonably estimable, we do not believe that the liabilities, if any, which may ultimately result from the resolution of the various legal and regulatory matters that arise in the ordinary course of our business, including the matter described below and those described in Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K, are likely to have a material adverse effect on our consolidated financial condition, results of operations, or liquidity. It is possible, however, that future results of operations for any particular quarterly or annual period could be materially and adversely affected by any developments relating to these legal and regulatory matters. Other than a $30 million accrual for potential legal settlements recorded as of December 31, 2020, a range of possible losses related to certain cases cannot be reasonably estimated at this time, except as otherwise disclosed below and in Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K. Individual matter disclosures in this Form 10-Q are limited to new significant matters or significant updates on existing matters since our most recent Form 10-K.

SPAN Trademark Dispute

As described at greater length in Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K, CME Group, Inc., or CME, filed suit against two of ICE’s clearing houses (ICE Clear U.S. and ICE Clear Europe Limited) in 2018 in the U.S. District Court for the Northern District of Illinois, alleging infringement of CME’s trademark for SPAN, which is a name generally used to refer to a type of initial margining approach that assesses risk for a variety of financial instruments on a portfolio-wide basis, as well as breach of contract and counterfeiting. A bench trial was held on the matter in September 2020.

On August 17, 2021, the trial court issued findings of fact and conclusions of law, in which, among other things, the court found in favor of ICE on CME’s counterfeiting and breach of contract claims; held that ICE had a valid implied license defense for significant periods of time of the alleged infringement; and, excluding the periods to which the implied license applied, awarded CME a judgment for infringement of approximately $16 million. In October 2021, this matter was resolved.

ICE Data Pricing & Reference Data Matter

As described at greater length in Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K, our subsidiary ICE Data Pricing & Reference Data, LLC, or PRD, is a registered investment advisor in the business of, among other things, providing clients with evaluated pricing and other information for fixed-income securities.

Until October 1, 2020, PRD had a business practice of passing through third-party price quotes, or broker quotes, in certain fixed income securities as-is to its clients when PRD did not believe it had sufficient information to produce an evaluated price for such securities. PRD’s legacy business practices with respect to broker quotes received from a now-bankrupt entity named Live Well Financial, Inc., or Live Well, had led to assertions of liability against PRD by Live Well’s bankruptcy trustee, or the Trustee, and certain of Live Well’s financial institution creditors. As of September 30, 2021, PRD has resolved the potential claims of the Trustee and all but one of the financial institution creditors. PRD continues to deny any wrongdoing, and to the extent any unresolved assertions relating to broker quotes PRD received from Live Well become litigated matters, we plan to vigorously defend any such litigation.

For further information on our legal and regulatory matters, please see Note 15 to the consolidated financial statements in Part II, Item 8 of our 2020 Form 10-K.

15. Fair Value Measurements

Fair value is the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the

measurement date. Our financial instruments consist primarily of certain short-term and long-term assets and liabilities, customer accounts receivable, margin deposits and guaranty funds, equity investments, and short-term and long-term debt.

The fair value of our financial instruments is measured based on a three-level hierarchy:

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.

Financial assets and liabilities recorded or disclosed at fair value in the accompanying consolidated balance sheets as of September 30, 2021 and December 31, 2020 were classified in their entirety based on the lowest level of input that is significant to the asset or liability’s fair value measurement.

Our mutual funds are equity and fixed income mutual funds held for the purpose of providing future payments for the supplemental executive savings plan and the supplemental executive retirement plan. These mutual funds are classified as equity investments and measured at fair value using Level 1 inputs with adjustments recorded in net income.

Excluding our equity investments without a readily determinable fair value, the fair values of all other financial instruments are determined to approximate carrying value due to the short period of time to their maturities.

We did not use Level 3 inputs to determine the fair value of assets or liabilities measured at fair value on a recurring basis as of September 30, 2021 or December 31, 2020.

We measure certain assets, such as intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value if they are deemed to be impaired. As of September 30, 2021, none of our intangible assets were required to be recorded at fair value since no impairments were recorded.

We measure certain equity investments at fair value on a non-recurring basis using our policy election under ASU 2016-01*.* During the nine months ended September 30, 2021, we evaluated these investments and concluded that certain fair value adjustments were required under this election related to our investment in Euroclear (Note 5).

See Note 13 for the fair value considerations related to our margin deposits, guaranty funds and delivery contracts receivable.

The table below displays the fair value of our debt as of September 30, 2021. The fair values of our fixed rate notes were estimated using quoted market prices for these instruments. The fair value of our commercial paper includes a discount and other short-term debt approximates par value since the interest rates on this short-term debt approximate market rates as of September 30, 2021.


	As of September 30, 2021
	(in millions)
Debt:	Carrying Amount		Fair value
Commercial Paper	$	1,324	$	1,324
2022 Senior Notes (2.35% senior unsecured notes due September 15, 2022)	499		509
Other short-term debt	8		8

2023 Senior Notes (0.70% senior unsecured notes due June 15, 2023)	996		1,005
2023 Senior Notes (3.45% senior unsecured notes due September 21, 2023)	399		422
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023)	797		856
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025)	1,246		1,374
2027 Senior Notes (3.10% senior unsecured notes due September 15, 2027)	497		542
2028 Senior Notes (3.75% senior unsecured notes due September 21, 2028)	593		670
2030 Senior Notes (2.10% senior unsecured notes due June 15, 2030)	1,233		1,238
2032 Senior Notes (1.85% senior unsecured notes due September 15, 2032)	1,483		1,419
2040 Senior Notes (2.65% senior unsecured notes due September 15, 2040)	1,230		1,198
2048 Senior Notes (4.25% senior unsecured notes due September 21, 2048)	1,230		1,493
2050 Senior Notes (3.00% senior unsecured notes due June 15, 2050)	1,220		1,234
2060 Senior Notes (3.00% senior unsecured notes due September 15, 2060)	1,470		1,420
Total debt	$	14,225	$	14,712

16. Segment Reporting

We previously operated as two reportable business segments, but effective October 1, 2020, we realigned our businesses as part of a review of, and changes in, our organizational structure following our acquisition of Ellie Mae. As a result, we changed our internal financial reporting and determined that a change in reportable segments had occurred. This presentation is reflective of how our chief operating decision maker reviews and operates our business.

In addition, beginning in the first quarter of 2021, origination technology revenues include those related to our ICE Mortgage Technology network (previously reported in closing solutions revenues) and closing solutions revenues now include registration revenues related to MERS (previously reported in other revenues). We believe these changes more accurately reflect how we operate the business. The prior year periods have been adjusted to reflect these changes.

As of September 30, 2021, our business is conducted through three reportable business segments, comprised of the following:

Our Exchanges segment includes our global futures platforms for trade execution and clearing, NYSE trading and listings and various data services related to those platforms;
Our Fixed Income and Data Services segment includes our fixed income and data analytics offerings, including pricing and reference data, analytics and indices, fixed income execution, or ICE Bonds, CDS clearing, our consolidated feeds, ICE Global Network businesses, other multi-asset class data and network services; and
Our Mortgage Technology segment provides mortgage technology solutions for the U.S. residential mortgage market from application through closing and the secondary market.

While revenues are recorded specifically in the segment in which they are earned or to which they relate, a significant portion of our operating expenses are not solely related to a specific segment because the expenses serve functions that are necessary for the operation of more than one segment. We directly allocate expenses when reasonably possible to do so. Otherwise, we use a pro-rata revenue approach as the allocation method for the expenses that do not relate solely to one segment and serve functions that are necessary for the operation of all segments. Our October 1, 2020 change in business segment presentation triggered a reallocation of our segment operating expenses. Prior periods have been adjusted to reflect this change.

Our chief operating decision maker does not review total assets or statements of income below operating income by segments; therefore, such information is not presented below. Our three segments do not engage in intersegment transactions.

Financial data for our business segments is as follows for the nine and three months ended September 30, 2021 and 2020 (in millions):


	Nine Months Ended September 30, 2021
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	900	$	—	$	—	$	900
Agricultural and metals futures and options	177		—		—		177
Financial futures and options	281		—		—		281
Cash equities and equity options	1,800		—		—		1,800
OTC and other	239		—		—		239
Data and connectivity services	623		—		—		623
Listings	356		—		—		356
Fixed income execution	—		39		—		39
CDS clearing	—		144		—		144
Fixed income data and analytics	—		804		—		804
Other data and network services	—		416		—		416
Origination technology	—		—		740		740
Closing solutions	—		—		227		227
Data and analytics	—		—		55		55
Other	—		—		39		39
Revenues	4,376		1,403		1,061		6,840
Transaction-based expenses	1,534		—		—		1,534
Revenues, less transaction-based expenses	2,842		1,403		1,061		5,306
Operating expenses	977		1,010		750		2,737
Operating income	$	1,865	$	393	$	311	$	2,569


	Nine Months Ended September 30, 2020
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	858	$	—	$	—	$	858
Agricultural and metals futures and options	197		—		—		197
Financial futures and options	275		—				275
Cash equities and equity options	1,934		—		—		1,934
OTC and other	219		—		—		219
Data and connectivity services	589		—		—		589
Listings	334		—		—		334
Fixed income execution	—		56		—		56
CDS clearing	—		166		—		166
Fixed income data and analytics	—		756		—		756
Other data and network services	—		382		—		382
Origination technology	—		—		67		67
Closing solutions	—		—		165		165
Data and analytics	—		—		5		5
Other	—		—		8		8
Revenues	4,406		1,360		245		6,011
Transaction-based expenses	1,646		—		—		1,646
Revenues, less transaction-based expenses	2,760		1,360		245		4,365
Operating expenses	919		987		206		2,112
Operating income	$	1,841	$	373	$	39	$	2,253


	Three Months Ended September 30, 2021
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	316	$	—	$	—	$	316
Agricultural and metals futures and options	56		—		—		56
Financial futures and options	93		—		—		93
Cash equities and equity options	554		—		—		554
OTC and other	84		—		—		84
Data and connectivity services	208		—		—		208
Listings	123		—		—		123
Fixed income execution	—		12		—		12
CDS clearing	—		51		—		51
Fixed income data and analytics	—		272		—		272
Other data and network services	—		142		—		142
Origination technology	—		—		245		245
Closing solutions	—		—		88		88
Data and analytics	—		—		19		19
Other	—		—		14		14
Revenues	1,434		477		366		2,277
Transaction-based expenses	475		—		—		475
Revenues, less transaction-based expenses	959		477		366		1,802
Operating expenses	330		338		256		924
Operating income	$	629	$	139	$	110	$	878


	Three Months Ended September 30, 2020
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	229	$	—	$	—	$	229
Agricultural and metals futures and options	54		—		—		54
Financial futures and options	76		—		—		76
Cash equities and equity options	593		—		—		593
OTC and other	73		—		—		73
Data and connectivity services	201		—		—		201
Listings	111		—		—		111
Fixed income execution	—		15		—		15
CDS clearing	—		47		—		47
Fixed income data and analytics	—		259		—		259
Other data and network services	—		129		—		129
Origination technology	—		—		67		67
Closing solutions	—		—		67		67
Data and analytics	—		—		5		5
Other	—		—		4		4
Revenues	1,337		450		143		1,930
Transaction-based expenses	519		—		—		519
Revenues, less transaction-based expenses	818		450		143		1,411
Operating expenses	297		331		156		784
Operating income	$	521	$	119	$	(13)	$	627

Revenue from one clearing member of the Exchanges segment comprised $326 million, or 12%, and $118 million, or 12%, of our Exchanges revenue less transaction-based expenses during the nine and three months ended September 30, 2021, respectively. Revenue from one clearing member of the Exchanges segment comprised $276 million, or 10% of our Exchanges revenues less transaction-based expenses during the nine months ended September 30, 2020. Clearing members are primarily intermediaries and represent a broad range of principal trading firms. If a clearing member ceased

its operations, we believe that the trading firms would continue to conduct transactions and would clear those transactions through another clearing member firm. No additional customers or clearing members accounted for more than 10% of our segment revenues or consolidated revenues during the nine and three months ended September 30, 2021 or 2020.

17. Earnings Per Common Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per common share computations for the nine and three months ended September 30, 2021 and 2020 (in millions, except per share amounts):


	Nine Months Ended September 30,						Three Months Ended September 30,
2021			2020			2021			2020
Basic:
Net income attributable to Intercontinental Exchange, Inc.	$	2,531		$	1,563		$	633		$	390
Weighted average common shares outstanding	563			549			563			548
Basic earnings per common share	$	4.50		$	2.85		$	1.12		$	0.71
Diluted:
Weighted average common shares outstanding	563			549			563			548
Effect of dilutive securities - stock options and restricted stock	2			3			3			3
Diluted weighted average common shares outstanding	565			552			566			551
Diluted earnings per common share	$	4.48		$	2.83		$	1.12		$	0.71

Basic earnings per common share is calculated using the weighted average common shares outstanding during the period. The weighted average common shares outstanding increased during the nine and three months ended September 30, 2021 from the comparable periods in 2020 primarily due to the stock issued for the Ellie Mae acquisition, and by 2020 stock repurchases. Common equivalent shares from stock options and restricted stock awards, calculated using the treasury stock method, are included in the diluted per share calculations unless the effect of their inclusion would be antidilutive. During the nine months ended September 30, 2021 and 2020, 271,000 and 358,000 outstanding stock options, respectively, were not included in the computation of diluted earnings per common share, because to do so would have had an antidilutive effect. In addition, we have excluded warrants and preferred and common incentive units under the Bakkt Equity Incentive Plan because they are also antidilutive. Certain figures in the table above may not recalculate due to rounding.

18. Subsequent Events

We have evaluated subsequent events, and determined that aside from the October 2021 Bakkt transaction (Note 3), the agreement to sell our Euroclear stake (Note 5), and the amendment to our Credit Facility (Note 9), no other events or transactions met the definition of a subsequent event for purposes of recognition or disclosure in the accompanying consolidated financial statements.

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