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GOODWILL, INTANGIBLE ASSETS, NET, AND DIGITAL ASSETS HELD | 6 Months Ended
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Jun. 30, 2024
GOODWILL, INTANGIBLE ASSETS, NET, AND DIGITAL ASSETS HELD |
GOODWILL, INTANGIBLE ASSETS, NET, AND DIGITAL ASSETS HELD | 8. GOODWILL, INTANGIBLE ASSETS, NET, AND DIGITAL ASSETS HELD The following table presents the details of goodwill by segment (in millions): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | North American | ​ | Europe and | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Options |  | Equities |  | Asia Pacific |  | Global FX |  | Digital |  | Total
Balance as of December 31, 2023 | ​ | $ | 305.8 | ​ | $ | 2,004.4 | ​ | $ | 563.2 | ​ | $ | 267.2 | ​ | $ | — | ​ | $ | 3,140.6
Changes in foreign currency exchange rates | ​ |  | — | ​ |  | (5.2) | ​ |  | (2.5) | ​ |  | — | ​ |  | — | ​ |  | (7.7)
Balance as of June 30, 2024 | ​ | $ | 305.8 | ​ | $ | 1,999.2 | ​ | $ | 560.7 | ​ | $ | 267.2 | ​ | $ | — | ​ | $ | 3,132.9
​ Goodwill has been allocated to specific reporting units for purposes of impairment testing - Options, North American Equities, Europe and Asia Pacific, and Global FX. No goodwill has been allocated to the Futures and Digital segments. Goodwill impairment testing is performed annually in the fiscal fourth quarter or more frequently if conditions exist that indicate that the asset may be impaired. The following table presents the details of the intangible assets by segment (in millions):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | North American | ​ | Europe and | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Options |  | Equities |  | Asia Pacific |  | Global FX |  | Digital |  | Total
Balance as of December 31, 2023 | ​ | $ | 134.1 | ​ | $ | 935.3 | ​ | $ | 352.5 | ​ | $ | 56.2 | ​ | $ | 83.4 | ​ | $ | 1,561.5
Additions | ​ | ​ | — | ​ |  | 1.0 | ​ |  | — | ​ |  | — | ​ |  | — | ​ | ​ | 1.0
Amortization | ​ |  | (4.2) | ​ |  | (26.2) | ​ |  | (8.4) | ​ | ​ | (6.4) | ​ | ​ | (2.3) | ​ |  | (47.5)
Changes in foreign currency exchange rates | ​ |  | — | ​ |  | (2.4) | ​ | ​ | (6.9) | ​ |  | — | ​ |  | — | ​ |  | (9.3)
Impairment | ​ |  | — | ​ |  | — | ​ | ​ | — | ​ |  | — | ​ |  | (81.0) | ​ |  | (81.0)
Balance as of June 30, 2024 | ​ | $ | 129.9 | ​ | $ | 907.7 | ​ | $ | 337.2 | ​ | $ | 49.8 | ​ | $ | 0.1 | ​ | $ | 1,424.7
​ Following the April 2024 announcement of the Cboe Digital spot market wind down and unwinding of the minority ownership structure in the holding company parent of the Cboe Digital entities, the Company performed an interim impairment test for the intangible assets recognized in the Digital reporting unit as the announcement was considered a potential indication of impairment. The Company concluded that the carrying value of the trading registrations and licenses and technology exceeded their estimated fair value, as their projected future cash flows, subsequent to the decision to wind down the business, did not support their valuation, and recorded an impairment charge of $81.0 million in the condensed consolidated statements of income for the three and six months ended June 30, 2024. For the three months ended June 30, 2024 and 2023, amortization expense was $21.3 million and $29.3 million, respectively. For the six months ended June 30, 2024 and 2023, amortization expense was $47.5 million and $60.2 million, respectively. The estimated future amortization expense is $41.2 million for the remainder of 2024, $69.9 million for 2025, $62.6 million for 2026, $55.9 million for 2027, and $50.3 million for 2028. The following tables present the categories of intangible assets by segment as of June 30, 2024 and December 31, 2023 (in millions, except as stated):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2024 | ​ | Weighted
​ | ​ | ​ | ​ | ​ | North | ​ | Europe | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Average
​ | ​ | ​ | ​ | American | ​ | and Asia | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Amortization
​ |  | Options |  | Equities |  | Pacific |  | Global FX |  | Digital |  | Period (in years)
Trading registrations and licenses | ​ | $ | 95.5 | ​ | $ | 605.0 | ​ | $ | 206.6 | ​ | $ | — | ​ | $ | — | ​ | Indefinite
Customer relationships | ​ |  | 46.6 | ​ |  | 412.3 | ​ |  | 211.4 | ​ |  | 140.0 | ​ |  | — | ​ | 15
Market data customer relationships | ​ |  | 53.6 | ​ |  | 322.0 | ​ |  | 61.0 | ​ |  | 64.4 | ​ |  | — | ​ | 8
Technology | ​ |  | 28.1 | ​ |  | 56.3 | ​ |  | 33.8 | ​ |  | 22.5 | ​ |  | — | ​ | 6
Trademarks and tradenames | ​ |  | 12.9 | ​ |  | 8.2 | ​ |  | 2.4 | ​ |  | 1.2 | ​ |  | — | ​ | 6
Digital assets held | ​ | ​ | — | ​ | ​ | 1.0 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 0.1 | ​ | Indefinite
Accumulated amortization | ​ |  | (106.8) | ​ |  | (497.1) | ​ |  | (178.0) | ​ |  | (178.3) | ​ |  | — | ​ | ​
​ | ​ | $ | 129.9 | ​ | $ | 907.7 | ​ | $ | 337.2 | ​ | $ | 49.8 | ​ | $ | 0.1 | ​ | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2023 | ​ | Weighted
​ | ​ | ​ | ​ | ​ | North | ​ | Europe | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Average
​ | ​ | ​ | ​ | American | ​ | and Asia | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Amortization
​ |  | Options |  | Equities |  | Pacific |  | Global FX |  | Digital |  | Period (in years)
Trading registrations and licenses | ​ | $ | 95.5 | ​ | $ | 606.0 | ​ | $ | 209.6 | ​ | $ | — | ​ | $ | 25.0 | ​ | Indefinite
Customer relationships | ​ |  | 46.6 | ​ | ​ | 413.9 | ​ | ​ | 216.1 | ​ | ​ | 140.0 | ​ | ​ | — | ​ | 15
Market data customer relationships | ​ |  | 53.6 | ​ | ​ | 322.0 | ​ | ​ | 61.6 | ​ | ​ | 64.4 | ​ | ​ | — | ​ | 8
Technology | ​ |  | 28.1 | ​ | ​ | 56.9 | ​ | ​ | 34.2 | ​ | ​ | 22.5 | ​ | ​ | 70.0 | ​ | 7
Trademarks and tradenames | ​ |  | 12.9 | ​ | ​ | 8.2 | ​ | ​ | 2.4 | ​ | ​ | 1.2 | ​ | ​ | — | ​ | 6
Digital assets held | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 0.1 | ​ | Indefinite
Accumulated amortization | ​ |  | (102.6) | ​ | ​ | (471.7) | ​ | ​ | (171.4) | ​ | ​ | (171.9) | ​ | ​ | (11.7) | ​ | ​
​ | ​ | $ | 134.1 | ​ | $ | 935.3 | ​ | $ | 352.5 | ​ | $ | 56.2 | ​ | $ | 83.4 | ​ | ​
​ Cboe Digital holds customer digital assets in customer accounts, referred to as wallets, either through a licensed trust company, third-party custodian or in separate and distinct wallets managed by Cboe Digital. Cboe Digital, together with its third-party custodian, secures customers’ digital assets and protects them from loss or theft. Customer digital assets are held in omnibus wallets for the benefit of customers of Cboe Digital and Cboe Digital maintains the records of the amount and type of digital asset owned by each of its customers in omnibus wallets. The amount of customer digital assets held by Cboe Digital is reflected within digital assets – safeguarded assets and digital assets – safeguarded liabilities in the condensed consolidated balance sheets. In addition, Cboe Digital maintains an immaterial amount of its own digital assets to facilitate customer trading. In October 2022, the Company, through its wholly-owned subsidiary Cboe NL, entered into a Data Provider Agreement with Pyth Data Association (“Pyth”) to create a data feed and begin publishing limited derived equities market data for certain symbols from one of its four U.S. equities exchanges on the Pyth Network, a decentralized financial market data distribution platform for aggregated data. In exchange, Pyth granted Cboe NL 16,666,666 restricted PYTH tokens which unlock annually over a four-year period in equal tranches; the first 25% tranche of PYTH tokens unlocked in May 2024. The PYTH tokens, which are included within intangible assets, net in the condensed consolidated balance sheets, are carried at their historical value of $0.06 per token and are reviewed each reporting period for potential impairment. In May 2024, the Company recorded $1.0 million in market data fees revenue on the condensed consolidated statements of income, which represents the historical value of the grant of 16,666,666 restricted PYTH tokens earned for satisfying the performance obligations outlined in the Data Provider Agreement.

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