Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 13, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | CME GROUP INC. | |
Entity Central Index Key | 1,156,375 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 338,851,977 | |
Class B Common Stock, Class B-1 [Member] | ||
Entity Common Stock, Shares Outstanding | 625 | |
Class B Common Stock, Class B-2 [Member] | ||
Entity Common Stock, Shares Outstanding | 813 | |
Class B Common Stock, Class B-3 [Member] | ||
Entity Common Stock, Shares Outstanding | 1,287 | |
Class B Common Stock, Class B-4 [Member] | ||
Entity Common Stock, Shares Outstanding | 413 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets | |||
Cash and cash equivalents | $ 1,161.1 | $ 1,692.6 | |
Marketable securities | 79.8 | 72.5 | |
Accounts receivable, net of allowance of $3.7 and $1.9 | 427 | 357.8 | |
Other current assets (includes $30.0 and $32.0 in restricted cash) | 220.7 | 228.6 | |
Performance bonds and guaranty fund contributions | 36,138.6 | 35,553 | |
Total current assets | 38,027.2 | 37,904.5 | |
Property, net of accumulated depreciation and amortization of $655.3 and $788.6 | 437.9 | 491.7 | |
Intangible assets—trading products | [1] | 17,175.3 | 17,175.3 |
Intangible assets—other, net | 2,489.9 | 2,537.9 | |
Goodwill | 7,569 | 7,569 | |
Other assets (includes $65.7 and $70.5 in restricted cash) | 1,926.3 | 1,681 | |
Total Assets | 67,625.6 | 67,359.4 | |
Liabilities and Equity | |||
Accounts payable | 35.6 | 28.7 | |
Other current liabilities | 246.8 | 1,242.8 | |
Performance bonds and guaranty fund contributions | 36,137.4 | 35,553 | |
Total current liabilities | 36,419.8 | 36,824.5 | |
Long-term debt | 2,230.2 | 2,229.3 | |
Deferred income tax liabilities, net | 7,352.7 | 7,358.3 | |
Other liabilities | 549 | 395.5 | |
Total Liabilities | 46,551.7 | 46,807.6 | |
Shareholders' Equity: | |||
Preferred stock, $0.01 par value, 10,000 shares authorized at June 30, 2016 and December 31, 2015; none issued | 0 | 0 | |
Additional paid-in capital | 17,767.9 | 17,721.6 | |
Retained earnings | 3,189.3 | 2,907.6 | |
Accumulated other comprehensive income (loss) | 113.3 | (80.8) | |
Total shareholders’ equity | 21,073.9 | 20,551.8 | |
Total Liabilities and Equity | 67,625.6 | 67,359.4 | |
Class A Common Stock [Member] | |||
Shareholders' Equity: | |||
Common stock | 3.4 | 3.4 | |
Class B Common Stock [Member] | |||
Shareholders' Equity: | |||
Common stock | $ 0 | $ 0 | |
[1] | )Trading products represent futures and options products acquired in our business combinations with CBOT Holdings, Inc., NYMEX Holdings, Inc. and The Board of Trade of Kansas City, Missouri, Inc. Clearing and transaction fees are generated through the trading of these products. These trading products, most of which have traded for decades, require authorization from the Commodity Futures Trading Commission (CFTC). Product authorizations from the CFTC have no term limits |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance | $ 3.7 | $ 1.9 |
Restricted cash, current | 30 | 32 |
Accumulated depreciation and amortization, property | 655.3 | 788.6 |
Restricted cash, noncurrent | $ 65.7 | $ 70.5 |
Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series A Junior Participating Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 337,448 | 336,938 |
Common stock, shares outstanding (in shares) | 337,448 | 336,938 |
Class B Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3 | 3 |
Common stock, shares issued (in shares) | 3 | 3 |
Common stock, shares outstanding (in shares) | 3 | 3 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Clearing and transaction fees | $ 767.6 | $ 681.8 | $ 1,563.7 | $ 1,390 |
Market data and information services | 102.9 | 102.8 | 205.3 | 200.8 |
Access and communication fees | 22.3 | 21.5 | 43.9 | 42.8 |
Other | 13.6 | 13.9 | 27.7 | 29.1 |
Expenses | 906.4 | 820 | 1,840.6 | 1,662.7 |
Expenses | ||||
Compensation and benefits | 131.7 | 141.5 | 263.6 | 282.8 |
Communications | 6.3 | 6.6 | 13 | 14.2 |
Technology support services | 17.7 | 16.1 | 35.1 | 31.7 |
Professional fees and outside services | 39 | 27.7 | 70.7 | 56.8 |
Amortization of purchased intangibles | 24 | 25 | 48 | 49.9 |
Depreciation and amortization | 30.4 | 33.3 | 64.3 | 65.1 |
Occupancy and building operations | 24.4 | 23.5 | 45.7 | 46.3 |
Licensing and other fee agreements | 32.8 | 28.8 | 71.8 | 59.4 |
Other | 36.8 | 22.4 | 91.2 | 54.1 |
Total Expenses | 343.1 | 324.9 | 703.4 | 660.3 |
Operating Income | 563.3 | 495.1 | 1,137.2 | 1,002.4 |
Non-Operating Income (Expense) | ||||
Investment income | 17.2 | 18.5 | 34.8 | 24.2 |
Gains (losses) on derivative investments | 0 | 0 | 0 | (1.8) |
Interest and other borrowing costs | (31) | (28.6) | (60.8) | (60.2) |
Equity in net earnings (losses) of unconsolidated subsidiaries | 27 | 26 | 53.8 | 48.5 |
Other non-operating income (expense) | (10.4) | (62.9) | (20.4) | (41.2) |
Total Non-Operating | 2.8 | (47) | 7.4 | (30.5) |
Income before Income Taxes | 566.1 | 448.1 | 1,144.6 | 971.9 |
Income tax provision | 246 | 183.1 | 456.7 | 376.5 |
Net Income | $ 320.1 | $ 265 | $ 687.9 | $ 595.4 |
Earnings per Common Share: | ||||
Basic (in dollars per share) | $ 0.95 | $ 0.79 | $ 2.04 | $ 1.77 |
Diluted (in dollars per share) | $ 0.95 | $ 0.78 | $ 2.03 | $ 1.76 |
Weighted Average Number of Common Shares: | ||||
Basic (in shares) | 337,289 | 336,036 | 337,152 | 335,859 |
Diluted (in shares) | 338,706 | 337,796 | 338,599 | 337,574 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 320.1 | $ 265 | $ 687.9 | $ 595.4 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized holding gains (losses) arising during the period | 85.8 | 36.9 | 195.4 | 9.2 |
Reclassification of net (gains) losses on sales included in investment income | 0 | 6 | 0 | 6 |
Income tax benefit (expense) | 0.2 | 1.2 | (0.6) | 1.2 |
Investment securities, net | 86 | 32.1 | 194.8 | 4.4 |
Net change in defined benefit plans arising during the period | 0 | 0 | 3.1 | (0.3) |
Amortization of net actuarial (gains) losses included in compensation and benefits expense | 0.8 | 0.7 | 1.6 | 1.4 |
Income tax benefit (expense) | (0.3) | (0.2) | (1.8) | (0.4) |
Defined benefit plans, net | 0.5 | 0.5 | 2.9 | 0.7 |
Net unrealized holding gains (losses) arising during the period | 0 | 0 | 0 | (4.7) |
Ineffectiveness on cash flow hedges included in (gains) losses on derivative investments | 0 | 0 | 0 | 1.8 |
Amortization of effective portion of net (gains) losses on cash flow hedges included in interest expense | (0.3) | (0.3) | (0.6) | (0.6) |
Income tax benefit (expense) | 0.1 | 0.2 | 0.2 | 1.4 |
Derivative investments, net | (0.2) | (0.1) | (0.4) | (2.1) |
Foreign currency translation adjustments | (1.7) | (2.6) | (5) | (6.6) |
Income tax benefit (expense) | 0.6 | 1 | 1.8 | 2.5 |
Foreign currency translation, net | (1.1) | (1.6) | (3.2) | (4.1) |
Other comprehensive income (loss), net of tax | 85.2 | 30.9 | 194.1 | (1.1) |
Comprehensive Income | $ 405.3 | $ 295.9 | $ 882 | $ 594.3 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock And Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Class A Common Stock [Member] | Class A Common Stock [Member]Common Stock And Additional Paid-In Capital [Member] | Class B Common Stock [Member] | Class B Common Stock [Member]Common Stock And Additional Paid-In Capital [Member] |
Balance (in shares) at Dec. 31, 2014 | 335,452 | 3 | ||||||
Balance at December 31, 2015 at Dec. 31, 2014 | $ 20,923.5 | $ 17,600 | $ 3,317.3 | $ 6.2 | ||||
Net income | 595.4 | 595.4 | ||||||
Other comprehensive income (loss), net of tax | (1.1) | (1.1) | ||||||
Dividends on common stock of $1.20 per share | (337.2) | (337.2) | ||||||
Exercise of stock options (in shares) | 652 | |||||||
Exercise of stock options | 42.1 | 42.1 | ||||||
Excess tax benefits from option exercises and restricted stock vesting | 1.3 | 1.3 | ||||||
Vesting of issued restricted Class A common stock, in shares | 46 | |||||||
Vesting of issued restricted Class A common stock | (2.3) | (2.3) | ||||||
Shares issued to Board of Directors, in shares | 26 | |||||||
Shares issued to Board of Directors | 2.4 | 2.4 | ||||||
Shares issued under Employee Stock Purchase Plan, in shares | 10 | |||||||
Shares issued under Employee Stock Purchase Plan | 1 | 1 | ||||||
Stock-based compensation | 33.7 | 33.7 | ||||||
Balance (in shares) at Jun. 30, 2015 | 336,186 | 3 | ||||||
Balance at June 30, 2016 at Jun. 30, 2015 | 21,258.8 | 17,678.2 | 3,575.5 | 5.1 | ||||
Balance (in shares) at Dec. 31, 2015 | 336,938 | 336,938 | 3 | 3 | ||||
Balance at December 31, 2015 at Dec. 31, 2015 | 20,551.8 | 17,725 | 2,907.6 | (80.8) | ||||
Net income | 687.9 | 687.9 | ||||||
Other comprehensive income (loss), net of tax | 194.1 | 194.1 | ||||||
Dividends on common stock of $1.20 per share | (406.2) | (406.2) | ||||||
Exercise of stock options (in shares) | 292 | |||||||
Exercise of stock options | 20 | 20 | ||||||
Excess tax benefits from option exercises and restricted stock vesting | 3.4 | 3.4 | ||||||
Vesting of issued restricted Class A common stock, in shares | 181 | |||||||
Vesting of issued restricted Class A common stock | (10.5) | (10.5) | ||||||
Shares issued to Board of Directors, in shares | 27 | |||||||
Shares issued to Board of Directors | 2.5 | 2.5 | ||||||
Shares issued under Employee Stock Purchase Plan, in shares | 10 | |||||||
Shares issued under Employee Stock Purchase Plan | 0.9 | 0.9 | ||||||
Stock-based compensation | 30 | 30 | ||||||
Balance (in shares) at Jun. 30, 2016 | 337,448 | 337,448 | 3 | 3 | ||||
Balance at June 30, 2016 at Jun. 30, 2016 | $ 21,073.9 | $ 17,771.3 | $ 3,189.3 | $ 113.3 |
Consolidated Statements Of Sha7
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock, per share (in dollars per share) | $ 1.20 | $ 1 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 687.9 | $ 595.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 30 | 33.7 |
Amortization of purchased intangibles | 48 | 49.9 |
Depreciation and amortization | 64.3 | 65.1 |
Gain on sale of BM&FBOVESPA shares | 0 | (5.9) |
Debt prepayment costs | 0 | 61.8 |
Loss on datacenter | 27.1 | 0 |
Undistributed earnings, net of losses, of unconsolidated subsidiaries | (3.3) | (5.3) |
Deferred income taxes | 22 | 41.3 |
Change in: | ||
Accounts receivable | (71.1) | (58.4) |
Other current assets | 6 | 8.1 |
Other assets | (20.3) | (15.1) |
Accounts payable | 6.8 | (14.8) |
Income taxes payable | (12.8) | (55.5) |
Other current liabilities | (41.3) | (26.2) |
Other liabilities | (5.3) | (0.1) |
Other | 5.2 | 3.7 |
Net Cash Provided by Operating Activities | 743.2 | 677.7 |
Cash Flows from Investing Activities | ||
Proceeds from maturities of available-for-sale marketable securities | 36.4 | 19.1 |
Purchases of available-for-sale marketable securities | (40.3) | (19.2) |
Purchases of available-for-sale marketable securities | (39.6) | (60.7) |
Investments in business ventures | (3.8) | (5) |
Proceeds from sale of BM&FBOVESPA shares | 0 | 57.7 |
Settlement of derivative related to debt issuance | 0 | 7 |
Net Cash Used in Investing Activities | (47.3) | (1.1) |
Cash Flows from Financing Activities | ||
Proceeds from debt, net of issuance costs | 0 | 743.7 |
Repayment of debt | 0 | (673) |
Cash dividends | (1,381.7) | (1,006.7) |
Proceeds from finance lease obligation | 130 | 0 |
Proceeds from exercise of stock options | 20 | 42.1 |
Excess tax benefits related to employee option exercises and restricted stock vesting | 3.4 | 1.3 |
Other | 0.9 | 0.9 |
Net Cash Used in Financing Activities | (1,227.4) | (891.7) |
Net change in cash and cash equivalents | (531.5) | (215.1) |
Cash and cash equivalents, beginning of period | 1,692.6 | 1,366.1 |
Cash and Cash Equivalents, End of Period | 1,161.1 | 1,151 |
Supplemental Disclosure of Cash Flow Information | ||
Income taxes paid | 410.3 | 393.3 |
Interest paid | $ 42.4 | $ 46.3 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation The consolidated financial statements consist of CME Group Inc. (CME Group) and its subsidiaries (collectively, the company), including Chicago Mercantile Exchange Inc. (CME), Board of Trade of the City of Chicago, Inc. (CBOT), New York Mercantile Exchange, Inc. (NYMEX), Commodity Exchange, Inc. (COMEX), CME Clearing Europe Limited (CMECE) and CME Europe Limited (CME Europe). CME, CBOT, NYMEX, COMEX, CMECE and CME Europe and their subsidiaries are referred to collectively as “the exchange” in the notes to the consolidated financial statements. The clearing houses include CME Clearing, which is the U.S. clearing house and a division of CME, and CMECE. The accompanying interim consolidated financial statements have been prepared by CME Group without audit. Certain notes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. In the opinion of management, the accompanying consolidated financial statements include all normal recurring adjustments considered necessary to present fairly the financial position of the company at June 30, 2016 and December 31, 2015 and the results of operations and cash flows for the periods indicated. Quarterly results are not necessarily indicative of results for any subsequent period. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in CME Group’s Annual Report on Form 10-K for the year ended December 31, 2015 , filed with the Securities and Exchange Commission (SEC) on February 26, 2016. |
Performance Bonds and Guaranty
Performance Bonds and Guaranty Fund Contributions (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Performance Bonds and Guaranty Fund Contributions [Abstract] | |
Performance Bonds and Guaranty Fund Contributions | Performance Bonds and Guaranty Fund Contributions Performance Bonds and Guaranty Fund Contributions. At June 30, 2016 , performance bonds and guaranty fund contribution assets on the consolidated balance sheets include cash as well as U.S. Treasury securities and U.S. government agency securities with maturity dates of 90 days or less. U.S. Treasury securities and U.S. government agency securities are purchased by CME, at its discretion, using cash collateral. The benefits, including interest earned, and risks of ownership accrue to CME. Interest earned is included in investment income on the consolidated statements of income. These securities are classified as available-for-sale. At June 30, 2016 , the amortized cost and fair value of the U.S. Treasury securities were $6,952.0 million and $6,952.3 million , respectively. At June 30, 2016 , the amortized cost and fair value of the U.S. government securities were both $1,708.4 million . The U.S. Treasury securities and U.S. government agency securities will mature in the third quarter of 2016. Performance bonds and guaranty fund contribution assets also include overnight reverse repurchase agreements that were purchased by CME, at its discretion, using cash collateral. The fair value of the overnight securities under the reverse repurchase agreements was $200.9 million at June 30, 2016 . CME has been designated as a systemically important financial market utility by the Financial Stability Oversight Council and is authorized to establish and maintain a cash account at the Federal Reserve Bank of Chicago. CME has received approval to establish this account at the Federal Reserve Bank of Chicago for clearing members proprietary cash balances; however, the account is not live yet and CME continues to work through the operational details to begin utilizing the account. Clearing House Contract Settlement. CME Clearing and CMECE mark-to-market open positions for all futures and options contracts twice a day (once a day for CME's cleared-only credit default swap and interest rate swap contracts). Based on values derived from the mark-to-market process, CME Clearing and CMECE require payments from clearing firms whose positions have lost value and make payments to clearing firms whose positions have gained value. Under the extremely unlikely scenario of simultaneous default by every clearing firm who has open positions with unrealized losses, the maximum exposure related to positions other than cleared-only credit default and interest rate swap contracts would be one half day of changes in fair value of all open positions, before considering the clearing houses' ability to access defaulting clearing firms' collateral deposits. For CME's cleared-only credit default swap and interest rate swap contracts, the maximum exposure related to CME Clearing's guarantee would be one full day of changes in fair value of all open positions, before considering CME Clearing's ability to access defaulting clearing firms' collateral. During the first six months of 2016, CME Clearing and CMECE transferred an average of approximately $3.6 billion a day through their clearing systems for settlement from clearing firms whose positions had lost value to clearing firms whose positions had gained value. CME Clearing and CMECE reduce their guarantee exposure through initial and maintenance performance bond requirements and mandatory guaranty fund contributions. The company believes that its guarantee liability is immaterial and therefore has not recorded any liability at June 30, 2016 . |
Property (Notes)
Property (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property In March 2016, the company sold its datacenter in the Chicago area for $130.0 million . At the time of the sale, the company leased back a portion of the property. The sale-leaseback transaction was recognized under the financing method and not as a sale-leaseback arrangement under generally accepted accounting principles due to the company's participation in future revenues and development work, which constitutes continuing involvement in the datacenter. Under the financing method, the assets remain on the consolidated balance sheet throughout the term of the lease and the proceeds of $130.0 million from the transaction are recognized as a finance lease obligation within other liabilities and other current liabilities in the consolidated balance sheet. A portion of the lease payments will be recognized as a reduction of the finance lease obligation and a portion will be recognized as interest expense based on an imputed interest rate. The net cost basis of the property and equipment legally sold was $153.1 million at the date of the sale. At March 31, 2016, the company wrote down the property and equipment to a fair value of $130.0 million based on qualitative indications of impairment and a quantitative analysis based on undiscounted cash flows. The company recognized a net loss on the transaction of $27.1 million through other expenses, which includes the write down to fair value and certain other transaction-related costs. The company recognized a total net loss and expenses of $28.6 million , which also includes $1.5 million of legal and other fees incurred. The property and equipment legally sold will continue to be recognized on the consolidated balance sheets and will continue to be depreciated on the consolidated statements of income over the term of the lease. The lease has an initial lease term ending in March 2031 and contains two consecutive renewal options for five years. Future minimum lease payments under this non-cancellable lease will be payable as follows as of June 30, 2016 (in millions): Year Remainder of 2016 $ 8.3 2017 16.7 2018 16.8 2019 16.8 2020 16.9 Thereafter 181.6 Total $ 257.1 |
Intangible Assets And Goodwill
Intangible Assets And Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets And Goodwill | Intangible Assets Intangible assets consisted of the following at June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (in millions) Assigned Value Accumulated Amortization Net Book Value Assigned Value Accumulated Amortization Net Book Value Amortizable Intangible Assets: Clearing firm, market data and other customer relationships $ 2,838.8 $ (801.8 ) $ 2,037.0 $ 2,838.8 $ (754.5 ) $ 2,084.3 Technology-related intellectual property 29.4 (27.9 ) 1.5 29.4 (27.2 ) 2.2 Other 2.4 (1.0 ) 1.4 2.4 (1.0 ) 1.4 Total amortizable intangible assets $ 2,870.6 $ (830.7 ) 2,039.9 $ 2,870.6 $ (782.7 ) 2,087.9 Indefinite-Lived Intangible Assets: Trade names 450.0 450.0 Total intangible assets – other, net $ 2,489.9 $ 2,537.9 Trading products (1) $ 17,175.3 $ 17,175.3 (1) Trading products represent futures and options products acquired in our business combinations with CBOT Holdings, Inc., NYMEX Holdings, Inc. and The Board of Trade of Kansas City, Missouri, Inc. Clearing and transaction fees are generated through the trading of these products. These trading products, most of which have traded for decades, require authorization from the Commodity Futures Trading Commission (CFTC). Product authorizations from the CFTC have no term limits. Total amortization expense for intangible assets was $24.0 million and $25.0 million for the quarters ended June 30, 2016 and 2015 , respectively. Total amortization expense for intangible assets was $48.0 million and $49.9 million for the six months ended June 30, 2016 and 2015 , respectively. As of June 30, 2016 , the future estimated amortization expense related to amortizable intangible assets is expected to be as follows: (in millions) Amortization Expense Remainder of 2016 $ 48.1 2017 95.5 2018 94.7 2019 94.7 2020 94.7 2021 94.7 Thereafter 1,517.5 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt In the first quarter of 2016, the company adopted the Financial Accounting Standards Board's (FASB) standards update on changes to the presentation of debt issuance costs. The update requires debt issuance costs related to a recognized debt liability to be presented as a deduction from the carrying value of the debt liability. Previously, debt issuance costs were recognized as deferred charges within other assets in the consolidated balance sheets. The standards update was applied on a retrospective basis, adjusting all prior periods presented, as if the new accounting methodology was in effect during those periods. At December 31, 2015, $12.1 million of debt issuance costs were reclassified in the consolidated balance sheet from other assets to long-term debt compared with what was previously reported. At June 30, 2016, $11.6 million of debt issuance costs were deducted from long-term debt. The change in accounting policy has been reflected in the table below. Long-term debt consisted of the following at June 30, 2016 and December 31, 2015 : (in millions) June 30, 2016 December 31, 2015 $750.0 million fixed rate notes due September 2022, stated rate of 3.00% (1) $ 744.8 $ 744.4 $750.0 million fixed rate notes due March 2025, stated rate of 3.00% (2) 743.8 743.4 $750.0 million fixed rate notes due September 2043, stated rate of 5.30% (3) 741.6 741.5 Total long-term debt $ 2,230.2 $ 2,229.3 (1) In August 2012, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 3.32% . (2) In December 2014, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 3.11% . (3) In August 2012, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 4.73% . Long-term debt maturities, at par value, were as follows at June 30, 2016 : (in millions) Par Value 2017 $ — 2018 — 2019 — 2020 — 2021 — Thereafter 2,250.0 |
Income Tax (Notes)
Income Tax (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes In the first quarter of 2016, the company adopted the FASB's standards update that simplifies the classification of deferred tax assets and liabilities. The update eliminates the current requirement to present deferred tax assets and liabilities as current and non-current in a classified balance sheet. Instead, all deferred tax assets, along with valuation allowances, and deferred tax liabilities are required to be classified as non-current. Companies are still required to offset deferred tax assets and liabilities for each taxpaying component within a tax jurisdiction. Beginning in the first quarter of 2016, the company adopted this standards update on a prospective basis and classified all deferred tax assets and liabilities as non-current. Prior period deferred tax assets and liabilities were not retrospectively adjusted. A net current deferred tax asset of $27.9 million was included in other current assets at December 31, 2015 . During the first quarter of 2016, net current deferred tax assets of $ 27.9 million were reclassified to net long-term liabilities. Total net current deferred tax assets are primarily attributable to stock-based compensation and accrued expenses. Net long-term deferred tax liabilities were $7.4 billion at June 30, 2016 and December 31, 2015 . Net deferred tax liabilities are principally the result of purchase accounting for intangible assets in our various mergers, including CBOT Holdings, Inc. and NYMEX Holdings, Inc. Valuation allowances of $49.4 million and $122.3 million have been provided on deferred tax assets at June 30, 2016 and December 31, 2015 , respectively. At June 30, 2016 and December 31, 2015 , valuation allowances were related to certain domestic net operating losses, foreign net operating losses as well as built in capital losses for which we do not believe that we currently meet the more-likely-than-not-threshold for recognition. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies Legal and Regulatory Matters. In 2013, the CFTC filed suit against NYMEX and two former employees alleging disclosure of confidential customer information in violation of the Commodity Exchange Act. NYMEX’s motion to dismiss was denied in 2014. Based on its investigation to date and advice from legal counsel, the company believes that it has strong factual and legal defenses to the claim. In the normal course of business, the company discusses matters with its regulators raised during regulatory examinations or otherwise subject to their inquiry and oversight. These matters could result in censures, fines, penalties or other sanctions. Management believes the outcome of any resulting actions will not have a material impact on its consolidated financial position or results of operations. However, the company is unable to predict the outcome or the timing of the ultimate resolution of these matters, or the potential fines, penalties or injunctive or other equitable relief, if any, that may result from these matters. In addition, the company is a defendant in, and has potential for, various other legal proceedings arising from its regular business activities. While the ultimate results of such proceedings against the company cannot be predicted with certainty, the company believes that the resolution of any of these matters on an individual or aggregate basis will not have a material impact on its consolidated financial position or results of operations. At December 31, 2015 , the company had accrued $3.5 million for legal and regulatory matters that were probable and estimable. No accrual was required for legal and regulatory matters that were probable and estimable as of June 30, 2016 . Intellectual Property Indemnifications. Certain agreements with customers and other third parties related to accessing the CME platforms, utilizing market data services and licensing CME SPAN software may contain indemnifications from intellectual property claims that may be made against them as a result of their use of the applicable products and/or services. The potential future claims relating to these indemnifications cannot be estimated and therefore no liability has been recorded. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Mutual Offset Agreement. CME and Singapore Exchange Limited (SGX) have a mutual offset agreement with a current term through October 2016. This agreement enables market participants to open a futures position on one exchange and liquidate it on the other. The term of the agreement will automatically renew for a one -year period unless either party provides advance notice of their intent to terminate. CME must maintain U.S. Treasury securities or irrevocable, standby letters of credit as collateral for this agreement. At June 30, 2016 , CME was contingently liable to SGX on letters of credit totaling $760.0 million . Regardless of the collateral, CME guarantees all cleared transactions submitted through SGX and would initiate procedures designed to satisfy these financial obligations in the event of a default, such as the use of performance bonds and guaranty fund contributions of the defaulting clearing firm. The company believes that its guarantee liability is immaterial and therefore has not recorded any liability at June 30, 2016 . Family Farmer and Rancher Protection Fund. In 2012, the company established the Family Farmer and Rancher Protection Fund (the Fund). The Fund is designed to provide payments, up to certain maximum levels, to family farmers, ranchers and other agricultural industry participants who use the company's agricultural commodity products and who suffer losses to their segregated account balances due to their CME clearing member becoming insolvent. Under the terms of the Fund, farmers and ranchers are eligible for up to $25,000 per participant. Farming and ranching cooperatives are eligible for up to $100,000 per cooperative. The Fund was established with a maximum of $100.0 million available for distribution to participants. Since its establishment, the Fund has made payments of approximately $2.0 million , which leaves $98.0 million available for future claims. If, at any time, payments due to participants were to exceed the amount remaining in the fund, payments would be pro-rated. Clearing members and customers must register with the company in advance and provide certain documentation in order to substantiate their eligibility. The company believes that its guarantee liability is immaterial and therefore has not recorded any liability at June 30, 2016 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): (in millions) Investment Securities Defined Benefit Plans Derivative Investments Foreign Currency Translation Total Balance at December 31, 2015 $ (95.0 ) $ (36.6 ) $ 59.6 $ (8.8 ) $ (80.8 ) Other comprehensive income (loss) before reclassifications and income tax benefit (expense) 195.4 3.1 — (5.0 ) 193.5 Amounts reclassified from accumulated other comprehensive income (loss) — 1.6 (0.6 ) — 1.0 Income tax benefit (expense) (0.6 ) (1.8 ) 0.2 1.8 (0.4 ) Net current period other comprehensive income (loss) 194.8 2.9 (0.4 ) (3.2 ) 194.1 Balance at June 30, 2016 $ 99.8 $ (33.7 ) $ 59.2 $ (12.0 ) $ 113.3 (in millions) Investment Securities Defined Benefit Plans Derivative Investments Foreign Currency Translation Total Balance at December 31, 2014 $ (22.9 ) $ (31.3 ) $ 62.6 $ (2.2 ) $ 6.2 Other comprehensive income (loss) before reclassifications and income tax benefit (expense) 9.2 (0.3 ) (4.7 ) (6.6 ) (2.4 ) Amounts reclassified from accumulated other comprehensive income (loss) (6.0 ) 1.4 1.2 — (3.4 ) Income tax benefit (expense) 1.2 (0.4 ) 1.4 2.5 4.7 Net current period other comprehensive income (loss) 4.4 0.7 (2.1 ) (4.1 ) (1.1 ) Balance at June 30, 2015 $ (18.5 ) $ (30.6 ) $ 60.5 $ (6.3 ) $ 5.1 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements The company uses a three-level classification hierarchy of fair value measurements for disclosure purposes. • Level 1 inputs, which are considered the most reliable evidence of fair value, consist of quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 inputs consist of observable market data, such as quoted prices for similar assets and liabilities in active markets, or inputs other than quoted prices that are directly observable. • Level 3 inputs consist of unobservable inputs which are derived and cannot be corroborated by market data or other entity-specific inputs. Level 1 assets generally include U.S. Treasury securities, U.S. government agency securities, investments in publicly traded mutual funds, equity securities and corporate debt securities with quoted market prices. In general, the company uses quoted prices in active markets for identical assets to determine the fair value of marketable securities and equity investments. If quoted prices are not available to determine fair value, the company uses other inputs that are directly observable. Assets included in level 2 generally consist of asset-backed securities. Asset-backed securities were measured at fair value based on matrix pricing using prices of similar securities with similar inputs such as maturity dates, interest rates and credit ratings. Financial assets recorded in the consolidated balance sheet as of June 30, 2016 were classified in their entirety based on the lowest level of input that was significant to each asset's fair value measurement. There were no liabilities that were measured at fair value as of June 30, 2016 . The following tables present financial instruments measured at fair value on a recurring basis: June 30, 2016 (in millions) Level 1 Level 2 Level 3 Total Assets at Fair Value: Marketable securities: Corporate debt securities $ 21.4 $ — $ — $ 21.4 Mutual funds 58.0 — — 58.0 Equity securities 0.1 — — 0.1 Asset-backed securities — 0.3 — 0.3 Total Marketable Securities 79.5 0.3 — 79.8 Performance bonds and guaranty fund contributions (1) : U.S. Treasury securities 6,952.3 — — 6,952.3 U.S. government agencies securities 1,708.4 — — 1,708.4 Equity investments 408.5 — — 408.5 Total Assets at Fair Value $ 9,148.7 $ 0.3 $ — $ 9,149.0 (1) Performance bonds and guaranty fund contributions on the consolidated balance sheet at June 30, 2016 include U.S. Treasury securities and U.S. government agency securities purchased with cash collateral. There were no transfers of assets or liabilities between level 1, level 2 and level 3 during the first six months of 2016 . There were no level 3 assets valued at fair value on a recurring basis during the first six months of 2016. The following is a reconciliation of level 3 liabilities valued at fair value on a recurring basis during the first six months of 2016. (in millions) Contingent Consideration Fair value of liability at December 31, 2015 $ 0.3 Realized and unrealized (gains) losses: Included in other expenses (0.3 ) Fair value of liability at June 30, 2016 $ — In the first quarter of 2016 , we sold a datacenter and leased back a portion of the property. Under generally accepted accounting principles, the transaction has been recognized under the financing method instead of recognized as a sale-leaseback arrangement. As a result, the property and equipment legally sold will continue to be recognized on the consolidated balance sheets and was written down to a fair value of $130.0 million at March 31, 2016. In the second quarter of 2016, we wrote down one of our strategic investments to a fair value of $1.7 million and recognized an impairment loss of $3.8 million . Both assessments were based on qualitative indications of impairment and a quantitative analysis of undiscounted cash flows. The fair values of the datacenter and strategic investment are considered level 3 and nonrecurring. There were no other level 3 assets or liabilities valued at fair value on a nonrecurring basis during the first six months of 2016. The following presents the estimated fair values of long-term debt notes, which are carried at amortized cost on the consolidated balance sheets. The fair values, which are classified as level 2 under the fair value hierarchy, were estimated using quoted market prices. At June 30, 2016 , the fair values were as follows: (in millions) Fair Value $750.0 million fixed rate notes due September 2022, stated rate of 3.00% $ 796.2 $750.0 million fixed rate notes due March 2025, stated rate of 3.00% 789.7 $750.0 million fixed rates notes due September 2043, stated rate of 5.30% 961.5 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income attributable to the company by the weighted average number of shares of all classes of CME Group common stock outstanding for each reporting period. Diluted earnings per share reflects the increase in shares using the treasury stock method to reflect the impact of an equivalent number of shares of common stock if stock options were exercised and restricted stock awards were converted into common stock. Anti-dilutive stock options, restricted stock and performance share awards were as follows for the periods presented: Quarter Ended Six Months Ended (in thousands) 2016 2015 2016 2015 Stock options 320 456 320 456 Restricted stock and performance shares — 8 — 11 Total 320 464 320 467 The following table presents the earnings per share calculation for the periods presented: Quarter Ended Six Months Ended 2016 2015 2016 2015 Net Income (in millions) $ 320.1 $ 265.0 $ 687.9 $ 595.4 Weighted Average Number of Common Shares (in thousands): Basic 337,289 336,036 337,152 335,859 Effect of stock options, restricted stock and performance shares 1,417 1,760 1,447 1,715 Diluted 338,706 337,796 338,599 337,574 Earnings per Common Share: Basic $ 0.95 $ 0.79 $ 2.04 $ 1.77 Diluted 0.95 0.78 2.03 1.76 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The company has evaluated subsequent events through the date the financial statements were issued and has determined that there are no subsequent events that require disclosure. |
Property (Tables)
Property (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Other Commitments | Future minimum lease payments under this non-cancellable lease will be payable as follows as of June 30, 2016 (in millions): Year Remainder of 2016 $ 8.3 2017 16.7 2018 16.8 2019 16.8 2020 16.9 Thereafter 181.6 Total $ 257.1 |
Intangible Assets And Goodwill
Intangible Assets And Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of intangible assets | Intangible assets consisted of the following at June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (in millions) Assigned Value Accumulated Amortization Net Book Value Assigned Value Accumulated Amortization Net Book Value Amortizable Intangible Assets: Clearing firm, market data and other customer relationships $ 2,838.8 $ (801.8 ) $ 2,037.0 $ 2,838.8 $ (754.5 ) $ 2,084.3 Technology-related intellectual property 29.4 (27.9 ) 1.5 29.4 (27.2 ) 2.2 Other 2.4 (1.0 ) 1.4 2.4 (1.0 ) 1.4 Total amortizable intangible assets $ 2,870.6 $ (830.7 ) 2,039.9 $ 2,870.6 $ (782.7 ) 2,087.9 Indefinite-Lived Intangible Assets: Trade names 450.0 450.0 Total intangible assets – other, net $ 2,489.9 $ 2,537.9 Trading products (1) $ 17,175.3 $ 17,175.3 (1) Trading products represent futures and options products acquired in our business combinations with CBOT Holdings, Inc., NYMEX Holdings, Inc. and The Board of Trade of Kansas City, Missouri, Inc. Clearing and transaction fees are generated through the trading of these products. These trading products, most of which have traded for decades, require authorization from the Commodity Futures Trading Commission (CFTC). Product authorizations from the CFTC have no term limits |
Future estimated amortization expense | As of June 30, 2016 , the future estimated amortization expense related to amortizable intangible assets is expected to be as follows: (in millions) Amortization Expense Remainder of 2016 $ 48.1 2017 95.5 2018 94.7 2019 94.7 2020 94.7 2021 94.7 Thereafter 1,517.5 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Short-Term And Long-Term Debt | Long-term debt consisted of the following at June 30, 2016 and December 31, 2015 : (in millions) June 30, 2016 December 31, 2015 $750.0 million fixed rate notes due September 2022, stated rate of 3.00% (1) $ 744.8 $ 744.4 $750.0 million fixed rate notes due March 2025, stated rate of 3.00% (2) 743.8 743.4 $750.0 million fixed rate notes due September 2043, stated rate of 5.30% (3) 741.6 741.5 Total long-term debt $ 2,230.2 $ 2,229.3 (1) In August 2012, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 3.32% . (2) In December 2014, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 3.11% . (3) In August 2012, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 4.73% . |
Long-term debt maturities at par value | Long-term debt maturities, at par value, were as follows at June 30, 2016 : (in millions) Par Value 2017 $ — 2018 — 2019 — 2020 — 2021 — Thereafter 2,250.0 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): (in millions) Investment Securities Defined Benefit Plans Derivative Investments Foreign Currency Translation Total Balance at December 31, 2015 $ (95.0 ) $ (36.6 ) $ 59.6 $ (8.8 ) $ (80.8 ) Other comprehensive income (loss) before reclassifications and income tax benefit (expense) 195.4 3.1 — (5.0 ) 193.5 Amounts reclassified from accumulated other comprehensive income (loss) — 1.6 (0.6 ) — 1.0 Income tax benefit (expense) (0.6 ) (1.8 ) 0.2 1.8 (0.4 ) Net current period other comprehensive income (loss) 194.8 2.9 (0.4 ) (3.2 ) 194.1 Balance at June 30, 2016 $ 99.8 $ (33.7 ) $ 59.2 $ (12.0 ) $ 113.3 (in millions) Investment Securities Defined Benefit Plans Derivative Investments Foreign Currency Translation Total Balance at December 31, 2014 $ (22.9 ) $ (31.3 ) $ 62.6 $ (2.2 ) $ 6.2 Other comprehensive income (loss) before reclassifications and income tax benefit (expense) 9.2 (0.3 ) (4.7 ) (6.6 ) (2.4 ) Amounts reclassified from accumulated other comprehensive income (loss) (6.0 ) 1.4 1.2 — (3.4 ) Income tax benefit (expense) 1.2 (0.4 ) 1.4 2.5 4.7 Net current period other comprehensive income (loss) 4.4 0.7 (2.1 ) (4.1 ) (1.1 ) Balance at June 30, 2015 $ (18.5 ) $ (30.6 ) $ 60.5 $ (6.3 ) $ 5.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Financial instruments measured at fair value on a recurring basis | The following tables present financial instruments measured at fair value on a recurring basis: June 30, 2016 (in millions) Level 1 Level 2 Level 3 Total Assets at Fair Value: Marketable securities: Corporate debt securities $ 21.4 $ — $ — $ 21.4 Mutual funds 58.0 — — 58.0 Equity securities 0.1 — — 0.1 Asset-backed securities — 0.3 — 0.3 Total Marketable Securities 79.5 0.3 — 79.8 Performance bonds and guaranty fund contributions (1) : U.S. Treasury securities 6,952.3 — — 6,952.3 U.S. government agencies securities 1,708.4 — — 1,708.4 Equity investments 408.5 — — 408.5 Total Assets at Fair Value $ 9,148.7 $ 0.3 $ — $ 9,149.0 (1) Performance bonds and guaranty fund contributions on the consolidated balance sheet at June 30, 2016 include U.S. Treasury securities and U.S. government agency securities purchased with cash collateral. |
Reconciliation of assets and liabilities valued at fair value on a recurring basis using significant unobservable inputs (level 3) | The following is a reconciliation of level 3 liabilities valued at fair value on a recurring basis during the first six months of 2016. (in millions) Contingent Consideration Fair value of liability at December 31, 2015 $ 0.3 Realized and unrealized (gains) losses: Included in other expenses (0.3 ) Fair value of liability at June 30, 2016 $ — |
Fair value of Debt Instruments | At June 30, 2016 , the fair values were as follows: (in millions) Fair Value $750.0 million fixed rate notes due September 2022, stated rate of 3.00% $ 796.2 $750.0 million fixed rate notes due March 2025, stated rate of 3.00% 789.7 $750.0 million fixed rates notes due September 2043, stated rate of 5.30% 961.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive stock options, restricted stock and performance share awards were as follows for the periods presented: Quarter Ended Six Months Ended (in thousands) 2016 2015 2016 2015 Stock options 320 456 320 456 Restricted stock and performance shares — 8 — 11 Total 320 464 320 467 |
Basic And Diluted Earnings Per Share | The following table presents the earnings per share calculation for the periods presented: Quarter Ended Six Months Ended 2016 2015 2016 2015 Net Income (in millions) $ 320.1 $ 265.0 $ 687.9 $ 595.4 Weighted Average Number of Common Shares (in thousands): Basic 337,289 336,036 337,152 335,859 Effect of stock options, restricted stock and performance shares 1,417 1,760 1,447 1,715 Diluted 338,706 337,796 338,599 337,574 Earnings per Common Share: Basic $ 0.95 $ 0.79 $ 2.04 $ 1.77 Diluted 0.95 0.78 2.03 1.76 |
Performance Bonds and Guarant27
Performance Bonds and Guaranty Fund Contributions (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Guarantor Obligations [Line Items] | |
Average Daily Clearing Settlement | $ 3,600 |
US Treasury Securities [Member] | |
Guarantor Obligations [Line Items] | |
Available-for-sale Securities, Amortized Cost Basis | 6,952 |
Available-for-sale Securities at Fair Value | 6,952.3 |
US Government Agencies Debt Securities [Member] | |
Guarantor Obligations [Line Items] | |
Available-for-sale Securities, Amortized Cost Basis | 1,708.4 |
Available-for-sale Securities at Fair Value | 1,708.4 |
Repurchase Agreements [Member] | |
Guarantor Obligations [Line Items] | |
Cash and Cash Equivalents, Fair Value Disclosure | $ 200.9 |
Property (Details)
Property (Details) $ in Millions | Jun. 30, 2016USD ($) |
Property, Plant and Equipment [Abstract] | |
Remainder of 2016 | $ 8.3 |
2,017 | 16.7 |
2,018 | 16.8 |
2,019 | 16.8 |
2,020 | 16.9 |
Thereafter | 181.6 |
Other Commitment | $ 257.1 |
Property Details (Details)
Property Details (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Proceeds from Sale of Buildings | $ 130 | |
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset | 153.1 | |
Property, Plant, and Equipment, Fair Value Disclosure | 130 | $ 130 |
Impairment of Real Estate | 27.1 | |
Total Cost of Transaction | 28.6 | |
Legal Fees for Sale-Leaseback | $ 1.5 |
Intangible Assets And Goodwil30
Intangible Assets And Goodwill (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of purchased intangibles | $ 24 | $ 25 | $ 48 | $ 49.9 |
Intangible Assets And Goodwil31
Intangible Assets And Goodwill (Components Of Intangible Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets | $ 2,489.9 | $ 2,537.9 | |
Other Indefinite-lived Intangible Assets | [1] | 17,175.3 | 17,175.3 |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets | 450 | 450 | |
Clearing Firm, Market Data And Other Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 2,838.8 | 2,838.8 | |
Accumulated amortization | (801.8) | (754.5) | |
Net book value | 2,037 | 2,084.3 | |
Technology-Related Intellectual Property [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 29.4 | 29.4 | |
Accumulated amortization | (27.9) | (27.2) | |
Net book value | 1.5 | 2.2 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 2.4 | 2.4 | |
Accumulated amortization | (1) | (1) | |
Net book value | 1.4 | 1.4 | |
Total Amortizable Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 2,870.6 | 2,870.6 | |
Accumulated amortization | (830.7) | (782.7) | |
Net book value | $ 2,039.9 | $ 2,087.9 | |
[1] | )Trading products represent futures and options products acquired in our business combinations with CBOT Holdings, Inc., NYMEX Holdings, Inc. and The Board of Trade of Kansas City, Missouri, Inc. Clearing and transaction fees are generated through the trading of these products. These trading products, most of which have traded for decades, require authorization from the Commodity Futures Trading Commission (CFTC). Product authorizations from the CFTC have no term limits |
Intangible Assets And Goodwil32
Intangible Assets And Goodwill (Future Estimated Amortization Expense) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 48.1 |
2,017 | 95.5 |
2,018 | 94.7 |
2,019 | 94.7 |
2,020 | 94.7 |
2,021 | 94.7 |
Thereafter | $ 1,517.5 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Unamortized Debt Issuance Expense | $ 11.6 | $ 12.1 |
Debt (Schedule Of Short-Term An
Debt (Schedule Of Short-Term And Long-Term Debt) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Mar. 31, 2015 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,230.2 | $ 2,229.3 | |||
Forward starting interest rate swap agreement fixed rate | 3.11% | 4.73% | 3.32% | ||
$750.0 million fixed rate notes due September 2022, stated rate of 3.00% [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 744.8 | 744.4 | |||
Debt Instrument, Face Amount | $ 750 | ||||
Debt Instrument, Maturity Date | Sep. 1, 2022 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||||
$750.0 million fixed rate notes due March 2025, stated rate of 3.00% [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 743.8 | 743.4 | |||
Debt Instrument, Face Amount | $ 750 | ||||
Debt Instrument, Maturity Date | Mar. 1, 2025 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||||
$750.0 million fixed rate notes due September 2043, stated rate of 5.30% [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 741.6 | $ 741.5 | |||
Debt Instrument, Face Amount | $ 750 | ||||
Debt Instrument, Maturity Date | Sep. 1, 2043 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.30% |
Debt (Schedule Of Maturities Of
Debt (Schedule Of Maturities Of Long-Term Debt) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | $ 2,250 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Gross, Current | $ 27.9 | $ 27.9 |
Deferred income tax liabilities, net | 7,352.7 | 7,358.3 |
Deferred Tax Assets, Valuation Allowance, Noncurrent | $ 49.4 | $ 122.3 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Loss Contingency [Abstract] | ||
Accrued liability related to all outstanding legal matters | $ 0 | $ 3.5 |
Guarantees (Details)
Guarantees (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)years | |
Guarantor Obligations [Line Items] | |
Agreement automatic renewal period (in years) | years | 1 |
Contingent liability to SGX, amount of irrevocable letters of credit | $ 760,000,000 |
Family Farmer and Ranchers Protection Fund [Member] | |
Guarantor Obligations [Line Items] | |
Payment per participant | 25,000 |
Payment per cooperative | 100,000 |
FutureLosses | 100,000,000 |
Payments under Guarantee | 2,000,000 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 98,000,000 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Balance at December 31, 2015 | $ 20,551.8 | $ 20,923.5 | ||
Other comprehensive income (loss), net of tax | $ 85.2 | $ 30.9 | 194.1 | (1.1) |
Balance at June 30, 2016 | 21,073.9 | 21,258.8 | 21,073.9 | 21,258.8 |
Investment Securities [Member] | ||||
Balance at December 31, 2015 | (95) | (22.9) | ||
Comprehensive Income Before Reclassification Adjustments | 195.4 | 9.2 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (6) | ||
Other Comprehensive Income (Loss), Net of Tax | (0.6) | 1.2 | ||
Other comprehensive income (loss), net of tax | 194.8 | 4.4 | ||
Balance at June 30, 2016 | 99.8 | (18.5) | 99.8 | (18.5) |
Defined Benefit Plans [Member] | ||||
Balance at December 31, 2015 | (36.6) | (31.3) | ||
Comprehensive Income Before Reclassification Adjustments | 3.1 | (0.3) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1.6 | 1.4 | ||
Other Comprehensive Income (Loss), Net of Tax | (1.8) | (0.4) | ||
Other comprehensive income (loss), net of tax | 2.9 | 0.7 | ||
Balance at June 30, 2016 | (33.7) | (30.6) | (33.7) | (30.6) |
Derivative Investments [Member] | ||||
Balance at December 31, 2015 | 59.6 | 62.6 | ||
Comprehensive Income Before Reclassification Adjustments | 0 | (4.7) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (0.6) | 1.2 | ||
Other Comprehensive Income (Loss), Net of Tax | 0.2 | 1.4 | ||
Other comprehensive income (loss), net of tax | (0.4) | (2.1) | ||
Balance at June 30, 2016 | 59.2 | 60.5 | 59.2 | 60.5 |
Foreign Currency Translation [Member] | ||||
Balance at December 31, 2015 | (8.8) | (2.2) | ||
Comprehensive Income Before Reclassification Adjustments | (5) | (6.6) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 1.8 | 2.5 | ||
Other comprehensive income (loss), net of tax | (3.2) | (4.1) | ||
Balance at June 30, 2016 | (12) | (6.3) | (12) | (6.3) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Balance at December 31, 2015 | (80.8) | 6.2 | ||
Comprehensive Income Before Reclassification Adjustments | 193.5 | (2.4) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1 | (3.4) | ||
Other Comprehensive Income (Loss), Net of Tax | (0.4) | 4.7 | ||
Other comprehensive income (loss), net of tax | 194.1 | (1.1) | ||
Balance at June 30, 2016 | $ 113.3 | $ 5.1 | $ 113.3 | $ 5.1 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Property, Plant, and Equipment, Fair Value Disclosure | $ 130 | $ 130 |
Investment Owned, at Fair Value | 1.7 | |
Other than Temporary Impairment Losses, Investments | $ 3.8 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Measured At Fair Value On A Recurring Basis) (Details) $ in Millions | Jun. 30, 2016USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Investment Owned, at Fair Value | $ 1.7 |
Fair Value, Measurements, Recurring [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Marketable Securities | 79.8 |
Performance bond reinvestment U.S. Treasuries | 6,952.3 |
Performance bond reinvestment U.S. Agency Securities | 1,708.4 |
Investment Owned, at Fair Value | 408.5 |
Total Assets at Fair Value | 9,149 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 21.4 |
Fair Value, Measurements, Recurring [Member] | Exchange Traded Funds [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Trading Securities at Fair Value | 58 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0.1 |
Fair Value, Measurements, Recurring [Member] | Asset Backed Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0.3 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Marketable Securities | 79.5 |
Performance bond reinvestment U.S. Treasuries | 6,952.3 |
Performance bond reinvestment U.S. Agency Securities | 1,708.4 |
Investment Owned, at Fair Value | 408.5 |
Total Assets at Fair Value | 9,148.7 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 21.4 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Exchange Traded Funds [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Trading Securities at Fair Value | 58 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0.1 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Asset Backed Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Marketable Securities | 0.3 |
Performance bond reinvestment U.S. Treasuries | 0 |
Performance bond reinvestment U.S. Agency Securities | 0 |
Investment Owned, at Fair Value | 0 |
Total Assets at Fair Value | 0.3 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Exchange Traded Funds [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Trading Securities at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset Backed Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0.3 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Marketable Securities | 0 |
Performance bond reinvestment U.S. Treasuries | 0 |
Performance bond reinvestment U.S. Agency Securities | 0 |
Investment Owned, at Fair Value | 0 |
Total Assets at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Exchange Traded Funds [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Trading Securities at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset Backed Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Available-for-sale Securities at Fair Value | $ 0 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation Using Significant Unobservable Inputs) (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value of liability, beginning balance | $ 0.3 |
Included in other expenses | (0.3) |
Fair value of liability, ending balance | $ 0 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Long-Term Debt) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
$750.0 million fixed rate notes due September 2022, stated rate of 3.00% [Member] | |
Debt Instrument, Face Amount | $ 750 |
Debt Instrument, Maturity Date | Sep. 1, 2022 |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% |
$750.0 million fixed rate notes due March 2025, stated rate of 3.00% [Member] | |
Debt Instrument, Face Amount | $ 750 |
Debt Instrument, Maturity Date | Mar. 1, 2025 |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% |
$750.0 million fixed rate notes due September 2043, stated rate of 5.30% [Member] | |
Debt Instrument, Face Amount | $ 750 |
Debt Instrument, Maturity Date | Sep. 1, 2043 |
Debt Instrument, Interest Rate, Stated Percentage | 5.30% |
Fair Value, Inputs, Level 2 [Member] | $750.0 million fixed rate notes due September 2022, stated rate of 3.00% [Member] | |
Debt Instrument, Fair Value Disclosure | $ 796.2 |
Fair Value, Inputs, Level 2 [Member] | $750.0 million fixed rate notes due March 2025, stated rate of 3.00% [Member] | |
Debt Instrument, Fair Value Disclosure | 789.7 |
Fair Value, Inputs, Level 2 [Member] | $750.0 million fixed rate notes due September 2043, stated rate of 5.30% [Member] | |
Debt Instrument, Fair Value Disclosure | $ 961.5 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 320 | 464 | 320 | 467 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 320 | 456 | 320 | 456 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 8 | 0 | 11 |
Earnings Per Share (Net Income
Earnings Per Share (Net Income Attributable To CME Group) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 320.1 | $ 265 | $ 687.9 | $ 595.4 |
Basic (in shares) | 337,289 | 336,036 | 337,152 | 335,859 |
Dilutive Securities, Effect on EPS | 1,417 | 1,760 | 1,447 | 1,715 |
Diluted (in shares) | 338,706 | 337,796 | 338,599 | 337,574 |
Earnings per common share, basic (in dollars per share) | $ 0.95 | $ 0.79 | $ 2.04 | $ 1.77 |
Earnings per common share, diluted (in dollars per share) | $ 0.95 | $ 0.78 | $ 2.03 | $ 1.76 |