2024 Q1 Form 10-K Financial Statement

#000157194924000007 Filed on February 08, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023 Q3
Revenue $2.801B $2.666B $2.429B
YoY Change 13.31% 12.16% 1.76%
Cost Of Revenue $511.0M $465.0M $426.0M
YoY Change -11.28% -23.65% -26.04%
Gross Profit $2.290B $2.201B $2.003B
YoY Change 20.78% 24.49% 10.6%
Gross Profit Margin 81.76% 82.56% 82.46%
Selling, General & Admin $78.00M $829.0M $59.00M
YoY Change 5.41% 31.8% 9.26%
% of Gross Profit 3.41% 37.66% 2.95%
Research & Development $205.0M $184.0M
YoY Change 19.19% 8.88%
% of Gross Profit 8.95% 9.19%
Depreciation & Amortization $381.0M $379.0M $309.0M
YoY Change 46.54% 44.11% 19.77%
% of Gross Profit 16.64% 17.22% 15.43%
Operating Expenses $1.227B $1.208B $1.158B
YoY Change 32.36% 35.43% 28.95%
Operating Profit $1.063B $993.0M $845.0M
YoY Change 9.7% 13.36% -7.45%
Interest Expense $241.0M -$254.0M $206.0M
YoY Change 36.93% -18.06% 17.05%
% of Operating Profit 22.67% -25.58% 24.38%
Other Income/Expense, Net -$99.00M -$155.0M -$163.0M
YoY Change -17.5% -1650.0% -86.85%
Pretax Income $964.0M $516.0M $682.0M
YoY Change 13.55% -8.51% -308.56%
Income Tax $181.0M $126.0M $123.0M
% Of Pretax Income 18.78% 24.42% 18.04%
Net Earnings $767.0M $373.0M $541.0M
YoY Change 17.1% -12.24% -383.25%
Net Earnings / Revenue 27.38% 13.99% 22.27%
Basic Earnings Per Share $1.34 $0.96
Diluted Earnings Per Share $1.33 $0.65 $0.96
COMMON SHARES
Basic Shares Outstanding 572.6M shares 572.4M shares 560.3M shares
Diluted Shares Outstanding 575.0M shares 565.0M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $863.0M $899.0M $837.0M
YoY Change -58.29% -50.03% -29.25%
Cash & Equivalents $863.0M $899.0M $837.0M
Short-Term Investments
Other Short-Term Assets $78.03B $82.71B $83.14B
YoY Change -29.46% -46.29% -51.46%
Inventory
Prepaid Expenses
Receivables $1.645B $1.366B $1.422B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $80.54B $84.97B $85.40B
YoY Change -29.56% -45.86% -50.84%
LONG-TERM ASSETS
Property, Plant & Equipment $1.960B $1.923B $1.918B
YoY Change 13.49% 8.83% 11.51%
Goodwill $30.55B $30.55B $30.46B
YoY Change 44.64% 44.73% 44.55%
Intangibles $17.06B $17.32B $17.60B
YoY Change 31.75% 32.29% 33.19%
Long-Term Investments $73.00M
YoY Change -64.9%
Other Assets $48.90B $49.19B $49.71B
YoY Change 37.78% 38.08% 38.61%
Total Long-Term Assets $50.86B $51.11B $51.63B
YoY Change 36.66% 36.69% 37.37%
TOTAL ASSETS
Total Short-Term Assets $80.54B $84.97B $85.40B
Total Long-Term Assets $50.86B $51.11B $51.63B
Total Assets $131.4B $136.1B $137.0B
YoY Change -13.3% -29.98% -35.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $967.0M $1.003B $964.0M
YoY Change 1.9% 15.82% 22.34%
Accrued Expenses $180.0M $459.0M $377.0M
YoY Change 23.29% 30.4% 37.59%
Deferred Revenue $590.0M $200.0M $334.0M
YoY Change 4.98% 17.65% 6.03%
Short-Term Debt $1.916B $1.954B $2.257B
YoY Change 48750.0% 32142.86%
Long-Term Debt Due $1.916B $1.954B $2.257B
YoY Change 48750.0% 32142.86%
Total Short-Term Liabilities $80.05B $84.63B $85.28B
YoY Change -24.49% -43.27% -48.72%
LONG-TERM LIABILITIES
Long-Term Debt $20.07B $20.66B $21.04B
YoY Change 10.73% 14.02% 16.17%
Other Long-Term Liabilities $454.0M $441.0M $493.0M
YoY Change 10.46% 15.75% 18.23%
Total Long-Term Liabilities $25.06B $25.67B $26.23B
YoY Change 12.21% 14.58% 16.31%
TOTAL LIABILITIES
Total Short-Term Liabilities $80.05B $84.63B $85.28B
Total Long-Term Liabilities $25.06B $25.67B $26.23B
Total Liabilities $105.1B $110.3B $111.5B
YoY Change -18.1% -35.72% -40.96%
SHAREHOLDERS EQUITY
Retained Earnings $16.87B $16.36B $16.23B
YoY Change 9.78% 9.46% 10.14%
Common Stock $7.000M $6.000M $6.000M
YoY Change 16.67% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $26.24B $25.72B $25.46B
YoY Change
Total Liabilities & Shareholders Equity $131.4B $136.1B $137.0B
YoY Change -13.3% -29.98% -35.15%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023 Q3
OPERATING ACTIVITIES
Net Income $767.0M $373.0M $541.0M
YoY Change 17.1% -12.24% -383.25%
Depreciation, Depletion And Amortization $381.0M $379.0M $309.0M
YoY Change 46.54% 44.11% 19.77%
Cash From Operating Activities $1.009B $969.0M $768.0M
YoY Change 54.52% -11.26% 4.21%
INVESTING ACTIVITIES
Capital Expenditures $58.00M $163.0M $123.0M
YoY Change 176.19% -203.82% -201.65%
Acquisitions
YoY Change
Other Investing Activities $3.000M $769.0M -$10.42B
YoY Change -75.0% -75.93% 105.08%
Cash From Investing Activities $259.0M $606.0M -$10.55B
YoY Change -87.33% -80.05% 102.67%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$5.522B -1.634B -4.825B
YoY Change -86.96% -91.03% 68.41%
NET CHANGE
Cash From Operating Activities $1.009B 969.0M 768.0M
Cash From Investing Activities $259.0M 606.0M -10.55B
Cash From Financing Activities -$5.522B -1.634B -4.825B
Net Change In Cash -$4.259B -59.00M -14.60B
YoY Change -89.26% -99.58% 99.18%
FREE CASH FLOW
Cash From Operating Activities $1.009B $969.0M $768.0M
Capital Expenditures $58.00M $163.0M $123.0M
Free Cash Flow $951.0M $806.0M $645.0M
YoY Change 50.47% -35.47% -24.83%

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<div style="margin-top:14pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Credit Risk and Significant Customers </span></div><div style="margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our clearing houses are exposed to credit risk as a result of maintaining clearing member cash deposits at various financial institutions (see Note 14). Cash deposit accounts are established at large, highly-rated financial institutions and entered into so that they restrict the rights of offset or imposition of liens by the banks. We also limit our risk of loss by holding the majority of the cash deposits in cash accounts at the Federal Reserve Bank of Chicago, high quality short-term sovereign debt reverse repurchase agreements with several different counterparty banks or direct investments in short-term high quality sovereign and supranational debt issues primarily with original maturities of less than three months. While we seek to achieve a reasonable rate of return which may generate interest income for our clearing members, we are primarily concerned with preservation of capital and managing the risks associated with these deposits. As the clearing houses may pass on interest revenues, minus costs, to the members, this could include negative or reduced yield due to market conditions. </span></div><div style="margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">When engaging in reverse repurchase agreements, our clearing houses take delivery of the underlying securities in custody accounts under clearing house control. Additionally, the securities purchased have a market value greater than </span></div><div style="margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">the reverse repurchase amount. The typical haircut received for high quality sovereign debt is 2% of the reverse repurchase amount. Thus, in the event that a reverse repurchase counterparty defaults on its obligation to repurchase the underlying reverse repurchase securities, our clearing house will have possession of securities with a value potentially greater than the reverse repurchase counterparty’s obligation to the clearing house.</span></div><div style="margin-top:8pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">ICE Clear Credit, a systemically important financial market utility as designated by the Financial Stability Oversight Council, maintains a U.S. dollar account at the Federal Reserve Bank of Chicago as of December 31, 2023. ICE Clear Europe maintains a euro-denominated account at the European Central Bank, or ECB, the central bank of the Netherlands, as well as pounds sterling- and euro-denominated accounts at the Bank of England, or BOE, the central bank of the U.K. These accounts provide the flexibility for ICE Clear Europe to place euro- and pounds sterling-denominated cash margin securely at national banks, in particular during periods when liquidity in the euro and pounds sterling repo markets may temporarily become contracted. Such accounts are intended to decrease ICE Clear Credit and ICE Clear Europe’s custodial, liquidity and operational risk as compared to alternative custodial and investment arrangements. </span></div><div style="margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our futures businesses have minimal credit risk as the majority of their transaction revenues are currently cleared through our clearing houses. Our accounts receivable related to fixed income and data services revenues, cash trading, listing revenues, technology revenues, CDS and bilateral over-the-counter, or OTC, energy transaction revenues and mortgage technology services subjects us to credit (collection) risk, as we do not require these customers to post collateral. We limit our risk of loss by terminating a customer's ability to remain listed or receive data or terminating other services for entities with delinquent accounts. The concentration of risk on accounts receivable is also mitigated by the large number of entities comprising our customer base. Excluding clearing members, there were no individual accounts receivable balances greater than 10% of total consolidated accounts receivable as of December 31, 2023 or December 31, 2022. Our accounts receivable are stated at the billed amount.</span></div>
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114.19
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34.80
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129.76
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53.30
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76.38
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CY2023 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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107.66
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58.05
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114.19
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CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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2539000 shares
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108000000 usd
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CY2023 us-gaap Stock Granted During Period Value Sharebased Compensation
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CY2022Q4 us-gaap Common Stock Shares Issued
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CY2022 ice Restricted Stock And Option Withholding Taxes Recorded As Net Settlement Shares
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CY2023 ice Restricted Stock And Option Withholding Taxes Recorded As Net Settlement Shares
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CY2022 us-gaap Treasury Stock Shares Acquired
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CY2021 us-gaap Treasury Stock Shares Acquired
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CY2021 us-gaap Treasury Stock Shares Acquired
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CY2023 us-gaap Defined Benefit Plan Amortization Of Gains Losses
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CY2023Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Three
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CY2023Q4 us-gaap Debt Instrument Fair Value
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CY2022Q4 us-gaap Debt Instrument Fair Value
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CY2023 ice Transaction Based Expenses
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CY2023 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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