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