01—Abstract
Summary
Summary of the 8-K filed December 11, 2020. Cited figures are marked; the original filing is the authoritative source.
Intercontinental Exchange, Inc. (ICE) announced a significant realignment of its reporting structure, effective for the quarter ending December 31, 2020.
This change follows the acquisition of Ellie Mae, Inc. and other internal organizational adjustments. The company will now report under three operating segments: Exchanges, Fixed Income & Data Services, and Mortgage Technology, shifting from its previous two-segment structure of Trading & Clearing and Data & Listings. To aid investors in understanding the impact of this realignment and the integration of acquired businesses, ICE has provided pro forma historical financial and operational information.
This supplemental data, available on the Investor Relations section of ICE's website, covers periods from January 1, 2018, through the nine months ended September 30, 2020. This initiative aims to offer a clearer comparative basis for evaluating ICE's performance under the new segment structure.
02—Key points
Key Highlights
- ICE is restructuring its reporting segments from two to three, effective Q4 2020.
- The new segments are Exchanges, Fixed Income & Data Services, and Mortgage Technology.
- This realignment is a direct consequence of the Ellie Mae acquisition and other organizational changes.
- Previously reported consolidated results remain unchanged by this segment reporting adjustment.
- ICE has published pro forma historical financial and operational data on its website to facilitate comparisons.
- The pro forma data covers periods from January 1, 2018, reflecting the new segment structure and hypothetical ownership of acquired entities since that date.
- This disclosure is furnished under Regulation FD and is not deemed 'filed' for certain SEC purposes.
03—Questions
Frequently Asked Questions
What is the primary reason for Intercontinental Exchange's reporting structure change?
The primary reason for the reporting structure change is the acquisition of Ellie Mae, Inc., along with other organizational adjustments within ICE. This allows for a more accurate representation of the company's business operations under the new integrated structure.
How does the new segment structure differ from the previous one?
Previously, ICE reported under two segments: Trading & Clearing and Data & Listings. The new structure consists of three segments: Exchanges, Fixed Income & Data Services, and Mortgage Technology, better reflecting the expanded business lines, particularly in mortgage services.
Will this change affect ICE's previously reported financial results?
No, the realignment impacts only ICE's segment reporting going forward. Previously reported consolidated results are not changed by this announcement.
Where can investors find information to compare historical performance with the new segment structure?
ICE has posted pro forma historical operational and financial information on its website, accessible through the Investor Relations section. This information is presented as if the new segment structure and acquisitions had been in place since January 1, 2018, allowing for easier historical comparisons.
04—Continue