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Deferred Revenue | 9 Months Ended
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Sep. 30, 2024
Revenue from Contract with Customer [Abstract] |
Deferred Revenue | 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 consolidated 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. 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. 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. See Note 7 for our discussion of deferred revenue balances, activity, and expected timing of recognition. 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. Refer to Notes 2 and 5 to the consolidated financial statements included in Part II, Item 8 of our 2023 Form 10-K where we describe our revenue recognition accounting policies and our primary revenue contract classifications in detail. Disaggregation of Revenues The following table depicts the disaggregation of our revenues 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 15:
| Exchanges Segment |  | Fixed Income and Data Services Segment |  | Mortgage Technology Segment |  | Total Consolidated
Nine Months Ended September 30, 2024: |  |  |  |  |  |  |
Total revenues (1) | $ | 5,498 |  |  | $ | 1,719 |  |  | $ | 1,514 |  |  | $ | 8,731 |
Transaction-based expenses | 1,775 |  |  | — |  |  | — |  |  | 1,775 |
Total revenues, less transaction-based expenses | $ | 3,723 |  |  | $ | 1,719 |  |  | $ | 1,514 |  |  | $ | 6,956 |
Timing of Revenue Recognition |  |  |  |  |  |  |
Services transferred at a point in time | $ | 2,261 |  |  | $ | 326 |  |  | $ | 338 |  |  | $ | 2,925 |
Services transferred over time | 1,462 |  |  | 1,393 |  |  | 1,176 |  |  | 4,031 |
Total revenues, less transaction-based expenses | $ | 3,723 |  |  | $ | 1,719 |  |  | $ | 1,514 |  |  | $ | 6,956 |
(1) Included in total revenues is revenue related to net interest income earned on cash margin received from clearing members at certain ICE clearing houses. These amounts were $74 million and $105 million recorded in Exchanges and Fixed Income and Data Services segments, respectively.
| Exchanges Segment |  | Fixed Income and Data Services Segment |  | Mortgage Technology Segment |  | Total Consolidated
Three Months Ended September 30, 2024: |  |  |  |  |  |  |
Total revenues (1) | $ | 1,938 |  |  | $ | 586 |  |  | $ | 509 |  |  | $ | 3,033 |
Transaction-based expenses | 684 |  |  | — |  |  | — |  |  | 684 |
Total revenues, less transaction-based expenses | $ | 1,254 |  |  | $ | 586 |  |  | $ | 509 |  |  | $ | 2,349 |
Timing of Revenue Recognition |  |  |  |  |  |  |
Services transferred at a point in time | $ | 762 |  |  | $ | 114 |  |  | $ | 118 |  |  | $ | 994 |
Services transferred over time | 492 |  |  | 472 |  |  | 391 |  |  | 1,355 |
Total revenues, less transaction-based expenses | $ | 1,254 |  |  | $ | 586 |  |  | $ | 509 |  |  | $ | 2,349 |
(1) Included in total revenues is revenue related to net interest income earned on cash margin received from clearing members at certain ICE clearing houses. These amounts were $27 million and $33 million recorded in Exchanges and Fixed Income and Data Services segments, respectively.
| Exchanges Segment |  | Fixed Income and Data Services Segment |  | Mortgage Technology Segment |  | Total Consolidated
Nine Months Ended September 30, 2023: |  |  |  |  |  |  |
Total revenues (1) | $ | 4,754 |  |  | $ | 1,668 |  |  | $ | 815 |  |  | $ | 7,237 |
Transaction-based expenses | 1,450 |  |  | — |  |  | — |  |  | 1,450 |
Total revenues, less transaction-based expenses | $ | 3,304 |  |  | $ | 1,668 |  |  | $ | 815 |  |  | $ | 5,787 |
Timing of Revenue Recognition |  |  |  |  |  |  |
Services transferred at a point in time | $ | 1,902 |  |  | $ | 343 |  |  | $ | 240 |  |  | $ | 2,485 |
Services transferred over time | 1,402 |  |  | 1,325 |  |  | 575 |  |  | 3,302 |
Total revenues, less transaction-based expenses | $ | 3,304 |  |  | $ | 1,668 |  |  | $ | 815 |  |  | $ | 5,787 |
(1) Included in total revenues is revenue related to net interest income earned on cash margin received from clearing members at certain ICE clearing houses. These amounts were $64 million and $118 million recorded in Exchanges and Fixed Income and Data Services segments, respectively.
| Exchanges Segment |  | Fixed Income and Data Services Segment |  | Mortgage Technology Segment |  | Total Consolidated
Three Months Ended September 30, 2023: |  |  |  |  |  |  |
Total revenues (1) | $ | 1,540 |  |  | $ | 559 |  |  | $ | 330 |  |  | $ | 2,429 |
Transaction-based expenses | 426 |  |  | — |  |  | — |  |  | 426 |
Total revenues, less transaction-based expenses | $ | 1,114 |  |  | $ | 559 |  |  | $ | 330 |  |  | $ | 2,003 |
Timing of Revenue Recognition |  |  |  |  |  |  |
Services transferred at a point in time | $ | 639 |  |  | $ | 114 |  |  | $ | 92 |  |  | $ | 845 |
Services transferred over time | 475 |  |  | 445 |  |  | 238 |  |  | 1,158 |
Total revenues, less transaction-based expenses | $ | 1,114 |  |  | $ | 559 |  |  | $ | 330 |  |  | $ | 2,003 |
(1) Included in total revenues is revenue related to net interest income earned on cash margin received from clearing members at certain ICE clearing houses. These amounts were $20 million and $40 million recorded in Exchanges and Fixed Income and Data Services segments, respectively.
The Exchanges segment and the Fixed Income and Data Services segment revenues above include data services revenues. 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 transferred over time in the tables above include services related to listings, risk management of open interest performance obligations and regulatory fees, trading permits, and software licenses. The Fixed Income and Data Services segment revenues transferred over time in the tables above include services related to risk management of open interest performance obligations, primarily in our CDS business. The Mortgage Technology segment revenues transferred over time in the tables above primarily relate to our origination and servicing 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 and, to a lesser extent, professional services revenues and revenues from certain of our data and analytics offerings. The components of services transferred over time for each of our segments are as follows:
| Nine Months Ended September 30, |  | Three Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Exchanges Segment: |  |  |  |  |  |  |
Data services revenues | $ | 717 |  |  | $ | 699 |  |  | $ | 242 |  |  | $ | 236 |
Services transferred over time related to risk management of open interest performance obligations | 281 |  |  | 229 |  |  | 94 |  |  | 78 |
Services transferred over time related to listings | 366 |  |  | 376 |  |  | 122 |  |  | 124 |
Services transferred over time related to regulatory fees, trading permits, and software licenses | 98 |  |  | 98 |  |  | 34 |  |  | 37 |
Total | $ | 1,462 |  |  | $ | 1,402 |  |  | $ | 492 |  |  | $ | 475 |
Fixed Income Data Services Segment: |  |  |  |  |  |  |
Data services revenues | $ | 1,367 |  |  | $ | 1,300 |  |  | $ | 461 |  |  | $ | 436 |
Services transferred over time related to risk management of open interest performance obligations in our CDS business | 26 |  |  | 25 |  |  | 11 |  |  | 9 |
Total | $ | 1,393 |  |  | $ | 1,325 |  |  | $ | 472 |  |  | $ | 445 |
Mortgage Technology Segment: |  |  |  |  |  |  |
Recurring revenues | $ | 1,164 |  |  | $ | 564 |  |  | $ | 387 |  |  | $ | 235 |
Other | 12 |  |  | 11 |  |  | 4 |  |  | 3 |
Total | $ | 1,176 |  |  | $ | 575 |  |  | $ | 391 |  |  | $ | 238 |
Total consolidated revenues transferred over time | $ | 4,031 |  |  | $ | 3,302 |  |  | $ | 1,355 |  |  | $ | 1,158 |
Transaction Price Allocated to Future Performance Obligations Our disclosure of transaction price allocated to future performance obligations excludes the following: •Volume-based fees in excess of contractual minimums and other usage-based fees to the extent they are part of a single performance obligation and meet certain variable consideration allocation criteria; •Performance obligations that are part of a contract with an original expected duration of one year or less; and •Transactional fees based on a fixed fee per transaction when we have the right to invoice once we have completed the performance obligation. As of September 30, 2024, the aggregate amount of the transaction price that is allocated to our future performance obligations was approximately $3.7 billion and was primarily related to contracts with customers in the Mortgage Technology segment. We expect this amount to be recognized as revenue as follows: 10% by December 31, 2024, 69% by December 31, 2026, 93% by December 31, 2028 and the rest thereafter. Contract Assets A contract asset represents our expectation of receiving consideration in exchange for products or services that we have provided to our customers, but invoicing is contingent on our completion of other performance obligations or contractual milestones. Substantially all of our contract assets are related to contracts with customers in our Mortgage Technology segment. As of September 30, 2024 and December 31, 2023, the balance of our contract assets was $86 million and $80 million, respectively. Deferred Revenue Our contract liabilities, or deferred revenue, represent consideration received that is yet to be recognized as revenue. Total deferred revenue was $475 million as of September 30, 2024, including $375 million in current deferred revenue and $100 million in other non-current liabilities in our consolidated balance sheets. The changes in our deferred revenue during the nine months ended September 30, 2024 are as follows (in millions):
| Listings Revenues |  | Data Services and Other Revenues |  | Mortgage Technology |  | Total
Deferred revenue balance at January 1, 2024 | $ | 108 |  |  | $ | 93 |  |  | $ | 106 |  |  | $ | 307 |
Additions | 487 |  |  | 335 |  |  | 106 |  |  | 928 |
Amortization | (366) |  |  | (270) |  |  | (124) |  |  | (760) |
Deferred revenue balance at September 30, 2024 | $ | 229 |  |  | $ | 158 |  |  | $ | 88 |  |  | $ | 475 |
The changes in our deferred revenue during the nine months ended September 30, 2023 are as follows (in millions):
| Listings Revenues |  | Data Services and Other Revenues |  | Mortgage Technology |  | Total
Deferred revenue balance at January 1, 2023 | $ | 115 |  |  | $ | 88 |  |  | $ | 51 |  |  | $ | 254 |
Additions (1) | 485 |  |  | 311 |  |  | 144 |  |  | 940 |
Amortization | (376) |  |  | (281) |  |  | (88) |  |  | (745) |
Deferred revenue balance at September 30, 2023 | $ | 224 |  |  | $ | 118 |  |  | $ | 107 |  |  | $ | 449 |
(1) Additions in our Mortgage Technology segment in the table above include $68 million of deferred revenue acquired on the date of the Black Knight acquisition (Note 3) and $28 million of Black Knight related deferred revenue added in the period after the date of the Black Knight acquisition through September 30, 2023. Included in the amortization recognized during the nine and three months ended September 30, 2024 is $169 million and $39 million, respectively, related to the deferred revenue balance as of January 1, 2024. Included in the amortization recognized for the nine and three months ended September 30, 2023 is $127 million and $24 million, respectively, related to the deferred revenue balance as of January 1, 2023. As of September 30, 2024, the remaining deferred revenue balance will be recognized over the period of time we satisfy our performance obligations as described in Note 5.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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