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Intercontinental Exchange, Inc. 8-K Report, Financial Results (Oct 28, 2022)

Reports
Earnings & Results
Filing Date
Filed October 28, 2022
Period End
October 28, 2022
Security
ICE
In the record · 2016–202610-K1510-Q338-K137

ICE filed 15 annual reports (10-K), 33 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · May ’18May ’18
  2. Material agreement8-K · Oct ’21Oct ’21
  3. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed October 28, 2022. Cited figures are marked; the original filing is the authoritative source.

Intercontinental Exchange, Inc. (ICE) has filed an 8-K to report a significant event concerning its equity method investee, Bakkt Holdings, Inc. Bakkt expects to record a substantial non-cash impairment loss on goodwill and intangible assets for the third quarter of 2022, estimated between $1.45 billiona and $1.56 billion.

This event will lead to a significant reduction in the carrying value of ICE's investment in Bakkt, from approximately $1.5 billionb as of June 30, 2022, to an estimated $400 million as of September 30, 2022. While this impairment is a notable event for Bakkt and its investors, ICE has clarified that this non-cash charge will not impact its adjusted earnings for the third and nine-month periods ending September 30, 2022.

Investors should note that ICE's full quarterly results, which will provide further context on the company's overall financial performance, are scheduled to be announced on November 3, 2022. This filing serves as an early disclosure of a material event impacting one of ICE's significant investments.

02—Key points

Key Highlights

  1. Bakkt Holdings, Inc. (ICE's equity method investee) expects a significant non-cash impairment loss in Q3 2022.
  2. The estimated impairment loss on goodwill is between $1.3 billion and $1.4 billion.
  3. An additional estimated impairment loss on indefinite-lived intangible assets is between $150 million and $160 million.
  4. ICE expects its carrying value of its investment in Bakkt to decrease from $1.5 billion (June 30, 2022) to approximately $400 million (September 30, 2022).
  5. The non-cash impairment charge will not affect ICE's adjusted earnings for Q3 and year-to-date 2022.
  6. ICE plans to announce its full Q3 2022 results on November 3, 2022.

03—Questions

Frequently Asked Questions

  1. What is the main reason for this 8-K filing?

    This 8-K filing is to inform investors about a significant impairment charge expected to be recognized by Bakkt Holdings, Inc., an investee of Intercontinental Exchange (ICE). This event will materially reduce the carrying value of ICE's investment in Bakkt.

  2. How does Bakkt's impairment loss affect Intercontinental Exchange's financial results?

    The impairment loss is a non-cash charge and is recognized by Bakkt. For Intercontinental Exchange, it results in a significant reduction in the carrying value of its investment in Bakkt. However, ICE has stated that this specific charge will not impact its adjusted earnings for the third and nine-month periods ending September 30, 2022.

  3. What is the total estimated impairment loss at Bakkt?

    Bakkt estimates a combined non-cash impairment loss of approximately $1.45 billion to $1.56 billion, consisting of $1.3 billion to $1.4 billion on goodwill and $150 million to $160 million on certain indefinite-lived intangible assets.

  4. When will investors get more details on ICE's overall financial performance?

    Intercontinental Exchange (ICE) is scheduled to announce its complete quarterly results for the period ended September 30, 2022, on Thursday, November 3, 2022. This will provide a broader picture of ICE's financial condition beyond the impact of the Bakkt investment.

04—Continue

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