Intercontinental Exchange Holdings, Inc.

CIK:0001174746|SEC Filings

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:
Transaction and clearing fees, net	$ 279,882	$ 279,177	$ 898,465	$ 908,057
Market data fees	40,213	35,947	121,246	109,504
Other	17,776	8,063	41,666	22,033
Total revenues	337,871	323,187	1,061,377	1,039,594
Operating expenses:
Compensation and benefits	59,550	61,820	192,396	194,596
Technology and communications	12,927	11,073	36,124	34,535
Professional services	7,392	7,813	22,979	25,741
Rent and occupancy	5,154	5,167	22,721	14,544
Acquisition-related transaction costs	6,073	2,285	32,387	9,994
Selling, general and administrative	10,238	8,114	28,229	28,580
Depreciation and amortization	34,391	32,864	99,625	96,955
Total operating expenses	135,725	129,136	434,461	404,945
Operating income	202,146	194,051	626,916	634,649
Other income (expense):
Interest and investment income	700	332	2,122	1,014
Interest expense	(9,902)	(9,445)	(29,751)	(29,112)
Other income (expense), net	(389)	(279)	1,258	(253)
Total other expense, net	(9,591)	(9,392)	(26,371)	(28,351)
Income before income taxes	192,555	184,659	600,545	606,298
Income tax expense	47,511	50,552	160,459	177,114
Net income	145,044	134,107	440,086	429,184
Net income attributable to non-controlling interest	(3,729)	(3,025)	(10,006)	(7,080)
Net income attributable to IntercontinentalExchange, Inc.	$ 141,315	$ 131,082	$ 430,080	$ 422,104
Earnings per share attributable to IntercontinentalExchange, Inc. common shareholders:
Basic	$ 1.94	$ 1.80	$ 5.91	$ 5.80
Diluted	$ 1.92	$ 1.79	$ 5.86	$ 5.76
Weighted average common shares outstanding:
Basic	72,867	72,789	72,787	72,729
Diluted	73,525	73,411	73,370	73,339

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Operating activities
Net income	$ 440,086	$ 429,184
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	99,625	96,955
Amortization of debt issuance costs	3,830	3,147
Stock-based compensation	41,795	39,981
Deferred taxes	(33,576)	(19,949)
Excess tax benefits from stock-based compensation	(5,997)	(5,885)
Other	427	(310)
Changes in assets and liabilities:
Customer accounts receivable	(47,641)	(10,972)
Prepaid expenses and other current assets	(3,177)	6,527
Noncurrent assets	(7,417)	3,855
Income taxes payable	42,692	20,260
Accounts payable, accrued salaries and benefits, and other accrued liabilities	31,187	9,921
Total adjustments	121,748	143,530
Net cash provided by operating activities	561,834	572,714
Investing activities
Capital expenditures	(76,286)	(23,745)
Capitalized software development costs	(27,623)	(26,205)
Cash paid for acquisitions, net of cash acquired	(49,201)	(18,250)
Proceeds from sale of (purchases of) available-for-sale short-term investments	(36,520)	43
Increase in restricted cash and investments	(69,485)	(27,657)
Net cash used in investing activities	(259,115)	(95,814)
Financing activities
Repayments of debt	(341,911)	(37,500)
Excess tax benefits from stock-based compensation	5,997	5,885
Issuance costs of debt facilities	(4,370)
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises	(23,550)	(16,808)
Repurchases of common stock		(3,290)
Purchase of subsidiary shares from non-controlling interest	(10,380)	(4,005)
Distributions of profits to non-controlling interest	(11,979)	(11,973)
Proceeds from exercise of common stock options	10,444	6,960
Net cash used in financing activities	(375,749)	(60,731)
Effect of exchange rate changes on cash and cash equivalents	(1,899)	2,058
Net (decrease) increase in cash and cash equivalents	(74,929)	418,227
Cash and cash equivalents, beginning of period	1,612,195	822,949
Cash and cash equivalents, end of period	1,537,266	1,241,176
Supplemental cash flow disclosure
Cash paid for income taxes	142,625	170,507
Cash paid for interest	$ 16,700	$ 17,585

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 1,537,266	$ 1,612,195
Short-term investments	36,524
Short-term restricted cash and investments	161,645	86,823
Customer accounts receivable, net of allowance for doubtful accounts of $801 and $1,104 at September 30, 2013 and December 31, 2012, respectively	175,826	127,260
Margin deposits and guaranty funds	43,440,692	31,882,493
Prepaid expenses and other current assets	37,654	41,316
Total current assets	45,389,607	33,750,087
Property and equipment, net	201,673	143,392
Other noncurrent assets:
Goodwill	1,961,606	1,937,977
Other intangible assets, net	803,915	798,960
Long-term restricted cash	160,751	162,867
Long-term investments	329,962	391,345
Other noncurrent assets	37,396	30,214
Total other noncurrent assets	3,293,630	3,321,363
Total assets	48,884,910	37,214,842
Current liabilities:
Accounts payable and accrued liabilities	94,530	70,206
Accrued salaries and benefits	42,638	55,008
Current portion of licensing agreement	19,249	19,249
Current portion of long-term debt	448,824	163,000
Income taxes payable	61,294	29,284
Margin deposits and guaranty funds	43,440,692	31,882,493
Other current liabilities	38,582	26,457
Total current liabilities	44,145,809	32,245,697
Noncurrent liabilities:
Noncurrent deferred tax liability, net	192,398	216,141
Long-term debt	341,765	969,500
Noncurrent portion of licensing agreement	52,189	63,739
Other noncurrent liabilities	66,691	43,207
Total noncurrent liabilities	653,043	1,292,587
Total liabilities	44,798,852	33,538,284
Redeemable non-controlling interest	15,388
Commitments and contingencies
IntercontinentalExchange, Inc. shareholders' equity:
Preferred stock, $0.01 par value; 25,000 shares authorized; no shares issued or outstanding at September 30, 2013 and December 31, 2012
Common stock, $0.01 par value; 194,275 shares authorized; 80,446 and 79,867 shares issued at September 30, 2013 and December 31, 2012, respectively; 72,885 and 72,474 shares outstanding at September 30, 2013 and December 31, 2012, respectively	804	799
Treasury stock, at cost; 7,561 and 7,393 shares at September 30, 2013 and December 31, 2012, respectively	(740,365)	(716,815)
Additional paid-in capital	1,960,130	1,903,312
Retained earnings	2,938,752	2,508,672
Accumulated other comprehensive loss	(117,452)	(52,591)
Total IntercontinentalExchange, Inc. shareholders' equity	4,041,869	3,643,377
Non-controlling interest in consolidated subsidiaries	28,801	33,181
Total equity	4,070,670	3,676,558
Total liabilities and equity	$ 48,884,910	$ 37,214,842