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Business Segments
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Business Segments
Business Segments
We manage, operate and provide our products and services in four business segments: Market Services, Corporate Services, Information Services and Market Technology. See Note 1, “Organization and Nature of Operations,” for further discussion of our reportable segments.
Our management allocates resources, assesses performance and manages these businesses as four separate segments. We evaluate the performance of our segments based on several factors, of which the primary financial measure is operating income. Results of individual businesses are presented based on our management accounting practices and structure.
The following table presents certain information regarding our operating segments for the three months ended March 31, 2017 and 2016:
 
Market Services
 
Corporate Services
 
Information Services
 
Market Technology
 
Corporate Items
 
Consolidated
 
(in millions)
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
606

 
$
160

 
$
138

 
$
67

 
$
—

 
$
971

Transaction-based expenses
(388
)
 
—

 
—

 
—

 
—

 
(388
)
Revenues less transaction-based expenses
218

 
160

 
138

 
67

 
—

 
583

Operating income (loss)
$
119

 
$
43

 
$
102

 
$
13

 
$
(29
)
 
$
248

Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
572

 
$
143

 
$
133

 
$
57

 
$
—

 
$
905

Transaction-based expenses
(371
)
 
—

 
—

 
—

 
—

 
(371
)
Revenues less transaction-based expenses
201

 
143

 
133

 
57

 
—

 
534

Operating income (loss)
$
113

 
$
34

 
$
97

 
$
10

 
$
(35
)
 
$
219



Certain amounts are allocated to corporate items in our management reports based on the decision that those activities should not be used to evaluate the segment’s ongoing operating performance. The following items are allocated to corporate items for segment reporting purposes:
Amortization expense of acquired intangible assets: We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations. As such, if intangible asset amortization is included in performance measures, it is more difficult to assess the day-to-day operating performance of the segments, and the relative operating performance of the segments between periods. Management does not consider intangible asset amortization expense for the purpose of evaluating the performance of our segments or their managers or when making decisions to allocate resources. Therefore, we believe performance measures excluding intangible asset amortization expense provide management with a more useful representation of our segment’s ongoing activity in each period.
Restructuring charges: Restructuring charges are associated with our 2015 restructuring plan to improve performance, cut costs and reduce spending and as of March 31, 2016 are primarily related to (i) severance and other termination benefits, (ii) asset impairment charges, and (iii) other charges. We do not allocate these restructuring costs because they do not contribute to a meaningful evaluation of a particular segment’s ongoing operating performance.
Merger and strategic initiatives expense: We have pursued various strategic initiatives and completed a number of acquisitions in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and the amount of such expenses vary significantly based on the size, timing and complexity of the transaction. Accordingly, we do not allocate these costs for purposes of disclosing segment results because they do not contribute to a meaningful evaluation of a particular segment’s ongoing operating performance.


* * * * * *
A summary of our corporate items are as follows:
 
Three Months Ended March 31,
 
2017
 
2016
 
(in millions)
Amortization expense of acquired intangible assets
$
23

 
$
17

Restructuring charges
—

 
9

Merger and strategic initiatives expense
6

 
9

Total
$
29

 
$
35


For further discussion of our segments’ results, see “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Segment Operating Results.”