Company Quick10K Filing
CME Group
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 358 $70,134
10-Q 2019-11-06 Quarter: 2019-09-30
10-Q 2019-08-07 Quarter: 2019-06-30
10-Q 2019-05-08 Quarter: 2019-03-31
10-K 2019-02-28 Annual: 2018-12-31
10-Q 2018-11-02 Quarter: 2018-09-30
10-Q 2018-08-01 Quarter: 2018-06-30
10-Q 2018-05-03 Quarter: 2018-03-31
10-K 2018-03-01 Annual: 2017-12-31
10-Q 2017-11-02 Quarter: 2017-09-30
10-Q 2017-08-02 Quarter: 2017-06-30
10-Q 2017-05-04 Quarter: 2017-03-31
10-K 2017-02-27 Annual: 2016-12-31
10-Q 2016-11-04 Quarter: 2016-09-30
10-Q 2016-08-04 Quarter: 2016-06-30
10-Q 2016-05-04 Quarter: 2016-03-31
10-K 2016-02-26 Annual: 2015-12-31
10-Q 2015-11-06 Quarter: 2015-09-30
10-Q 2015-08-05 Quarter: 2015-06-30
10-Q 2015-05-06 Quarter: 2015-03-31
10-K 2015-02-26 Annual: 2014-12-31
10-Q 2014-11-03 Quarter: 2014-09-30
10-Q 2014-08-04 Quarter: 2014-06-30
10-Q 2014-05-07 Quarter: 2014-03-31
10-K 2014-03-03 Annual: 2013-12-31
10-Q 2013-11-08 Quarter: 2013-09-30
10-Q 2013-08-08 Quarter: 2013-06-30
10-K 2013-03-01 Annual: 2012-12-31
10-Q 2012-11-08 Quarter: 2012-09-30
10-Q 2012-08-08 Quarter: 2012-06-30
10-Q 2012-05-08 Quarter: 2012-03-31
10-K 2012-02-28 Annual: 2011-12-31
10-Q 2011-11-09 Quarter: 2011-09-30
10-Q 2011-08-05 Quarter: 2011-06-30
10-Q 2011-05-10 Quarter: 2011-03-31
10-K 2011-02-28 Annual: 2010-12-31
10-Q 2010-11-05 Quarter: 2010-09-30
10-Q 2010-08-06 Quarter: 2010-06-30
10-Q 2010-05-07 Quarter: 2010-03-31
10-K 2010-02-26 Annual: 2009-12-31
8-K 2019-12-16 Officers, Exhibits
8-K 2019-11-12 Officers, Regulation FD, Exhibits
8-K 2019-10-30 Earnings, Exhibits
8-K 2019-08-07 Officers
8-K 2019-07-31 Earnings, Exhibits
8-K 2019-05-08 Shareholder Vote
8-K 2019-05-01 Earnings, Exhibits
8-K 2019-05-01 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-02-14 Earnings, Exhibits
8-K 2018-11-29 Shareholder Vote
8-K 2018-11-02 Sale of Shares, Officers, Other Events, Exhibits
8-K 2018-11-01 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-10-25 Earnings, Exhibits
8-K 2018-07-26 Earnings, Exhibits
8-K 2018-06-21 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-06-14 Other Events, Exhibits
8-K 2018-05-23 Shareholder Vote
8-K 2018-05-09 Shareholder Vote
8-K 2018-05-08 Officers, Exhibits
8-K 2018-04-26 Earnings, Exhibits
8-K 2018-02-07 Officers, Regulation FD, Exhibits
8-K 2018-02-01 Earnings, Exhibits
CME 2019-09-30
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 cme-201993010qex311.htm
EX-31.2 cme-201993010qex312.htm
EX-32.1 cme-201993010qex321.htm

CME Group Earnings 2019-09-30

CME 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
GS 75,781 944,903 854,011 0 0 9,734 31,010 33,223 1.1 1%
BLK 73,149 163,347 130,687 13,880 0 4,216 5,646 75,366 0% 13.3 3%
MS 70,822 891,959 809,114 0 0 8,426 25,470 187,314 7.4 1%
CME 70,134 70,350 43,865 4,593 0 1,809 2,932 69,191 0% 23.6 3%
SCHW 53,868 276,321 255,001 10,652 0 3,759 6,408 27,167 0% 4.2 1%
ICE 48,570 90,930 73,712 6,357 0 2,046 3,427 54,296 0% 15.8 2%
CS 47,825 772,069 726,075 2,380 0 0 0 102,086 0% 0%
AMTD 27,244 41,119 32,626 0 0 2,265 3,142 21,533 6.9 6%
TROW 25,357 8,912 1,321 5,422 0 2,045 2,712 23,555 0% 8.7 23%
NDAQ 15,804 14,132 8,581 4,200 2,501 540 1,137 18,463 60% 16.2 4%

Document
false--12-31Q3201900011563757611000008373000002700000290000050000000014000000000.702.100.752.250.010.010.010.01100000000030001000000000300035682400030003574470003000356824000300035744700030001500000015000000191000000005000000005000000007000000007000000007500000007500000007500000007500000007500000007500000000.04300.00810.03130.03750.04150.03000.03000.05302023-05-012023-05-312019-03-312019-03-312028-06-152028-06-152048-06-152048-06-152025-03-152025-03-152022-09-152022-09-152043-09-152043-09-1500.010.011000000010000000000015000001200000 0001156375 2019-01-01 2019-09-30 0001156375 cme:ClassBCommonStockClassB3Member 2019-10-16 0001156375 us-gaap:CommonClassAMember 2019-10-16 0001156375 cme:ClassBCommonStockClassB1Member 2019-10-16 0001156375 cme:ClassBCommonStockClassB4Member 2019-10-16 0001156375 cme:ClassBCommonStockClassB2Member 2019-10-16 0001156375 2018-12-31 0001156375 2019-09-30 0001156375 us-gaap:CommonClassBMember 2019-09-30 0001156375 us-gaap:CommonClassAMember 2018-12-31 0001156375 us-gaap:CommonClassBMember 2018-12-31 0001156375 us-gaap:CommonClassAMember 2019-09-30 0001156375 us-gaap:PreferredStockMember 2019-09-30 0001156375 us-gaap:PreferredStockMember 2018-12-31 0001156375 2018-01-01 2018-09-30 0001156375 2019-07-01 2019-09-30 0001156375 2018-07-01 2018-09-30 0001156375 cme:OtherRevenueMember 2019-01-01 2019-09-30 0001156375 cme:OtherRevenueMember 2018-07-01 2018-09-30 0001156375 cme:MarketDataMember 2018-07-01 2018-09-30 0001156375 cme:MarketDataMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember 2018-01-01 2018-09-30 0001156375 cme:MarketDataMember 2018-01-01 2018-09-30 0001156375 cme:OtherRevenueMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember 2018-07-01 2018-09-30 0001156375 cme:OtherRevenueMember 2019-07-01 2019-09-30 0001156375 cme:MarketDataMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember 2019-01-01 2019-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001156375 2018-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001156375 us-gaap:CommonClassBMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-09-30 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2017-12-31 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-09-30 0001156375 us-gaap:CommonClassBMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2017-12-31 0001156375 us-gaap:RetainedEarningsMember 2018-09-30 0001156375 us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2017-12-31 0001156375 us-gaap:RetainedEarningsMember 2017-12-31 0001156375 2017-12-31 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-06-30 0001156375 us-gaap:RetainedEarningsMember 2018-06-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001156375 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001156375 2018-06-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-06-30 0001156375 us-gaap:CommonClassBMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-06-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001156375 us-gaap:ParentMember 2019-01-01 2019-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001156375 us-gaap:RetainedEarningsMember 2018-12-31 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-12-31 0001156375 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-09-30 0001156375 us-gaap:ParentMember 2019-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001156375 us-gaap:CommonClassBMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001156375 us-gaap:CommonClassBMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-12-31 0001156375 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001156375 us-gaap:ParentMember 2018-12-31 0001156375 us-gaap:NoncontrollingInterestMember 2018-12-31 0001156375 us-gaap:NoncontrollingInterestMember 2019-09-30 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2018-12-31 0001156375 us-gaap:RetainedEarningsMember 2019-09-30 0001156375 us-gaap:ParentMember 2019-07-01 2019-09-30 0001156375 us-gaap:CommonClassBMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-06-30 0001156375 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001156375 us-gaap:ParentMember 2019-06-30 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001156375 us-gaap:CommonClassAMember us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-06-30 0001156375 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001156375 us-gaap:NoncontrollingInterestMember 2019-06-30 0001156375 us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2019-06-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001156375 us-gaap:RetainedEarningsMember 2019-06-30 0001156375 2019-06-30 0001156375 2019-01-01 0001156375 cme:ClearingandtransactionfeesMember cme:MetalMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:MetalMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:MetalMember 2018-07-01 2018-09-30 0001156375 us-gaap:TransferredAtPointInTimeMember 2018-07-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:InterestRateMember 2019-01-01 2019-09-30 0001156375 us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:CashMarketsMember 2019-07-01 2019-09-30 0001156375 us-gaap:TransferredOverTimeMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:AgriculturalcommodityMember 2018-07-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EquitiesMember 2018-07-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:MetalMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:CashMarketsMember 2018-01-01 2018-09-30 0001156375 cme:OnetimechargesandmiscellaneousrevenuesMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:ForeignExchangeMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EquitiesMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:OverTheCounterMember 2018-07-01 2018-09-30 0001156375 cme:OnetimechargesandmiscellaneousrevenuesMember 2018-07-01 2018-09-30 0001156375 cme:OnetimechargesandmiscellaneousrevenuesMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:InterestRateMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EnergyMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EnergyMember 2018-07-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:CashMarketsMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:AgriculturalcommodityMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:AgriculturalcommodityMember 2018-01-01 2018-09-30 0001156375 us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EnergyMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:ForeignExchangeMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:OverTheCounterMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:OverTheCounterMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:InterestRateMember 2018-07-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:InterestRateMember 2018-01-01 2018-09-30 0001156375 us-gaap:TransferredAtPointInTimeMember 2019-07-01 2019-09-30 0001156375 cme:OnetimechargesandmiscellaneousrevenuesMember 2019-07-01 2019-09-30 0001156375 us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:CashMarketsMember 2018-07-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:ForeignExchangeMember 2018-07-01 2018-09-30 0001156375 us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EquitiesMember 2019-01-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EnergyMember 2018-01-01 2018-09-30 0001156375 us-gaap:TransferredOverTimeMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:ForeignExchangeMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:EquitiesMember 2018-01-01 2018-09-30 0001156375 cme:ClearingandtransactionfeesMember cme:AgriculturalcommodityMember 2019-07-01 2019-09-30 0001156375 cme:ClearingandtransactionfeesMember us-gaap:OverTheCounterMember 2019-01-01 2019-09-30 0001156375 cme:FederalReserveReinvestmentMember 2019-09-30 0001156375 cme:U.S.TreasuryPerformanceBondMember 2019-09-30 0001156375 cme:U.S.GovernmentAgencySecurityPerformanceBondMember 2019-09-30 0001156375 us-gaap:ConsolidatedEntitiesMember 2017-12-31 0001156375 cme:NymexMember 2018-12-31 0001156375 us-gaap:GoodwillMember 2018-12-31 0001156375 us-gaap:GoodwillMember 2019-09-30 0001156375 us-gaap:ConsolidatedEntitiesMember 2019-01-01 2019-09-30 0001156375 us-gaap:GoodwillMember 2019-01-01 2019-09-30 0001156375 us-gaap:ConsolidatedEntitiesMember 2019-09-30 0001156375 cme:NEXMember 2019-01-01 2019-09-30 0001156375 us-gaap:ConsolidatedEntitiesMember 2018-01-01 2018-12-31 0001156375 cme:NymexMember 2019-01-01 2019-09-30 0001156375 cme:NEXMember 2018-01-01 2018-12-31 0001156375 us-gaap:ConsolidatedEntitiesMember 2018-12-31 0001156375 cme:CBOTMember 2019-01-01 2019-09-30 0001156375 cme:NymexMember 2019-09-30 0001156375 cme:NymexMember 2018-01-01 2018-12-31 0001156375 cme:CBOTMember 2017-12-31 0001156375 cme:NEXMember 2017-12-31 0001156375 cme:CBOTMember 2019-09-30 0001156375 cme:NEXMember 2019-09-30 0001156375 cme:CBOTMember 2018-01-01 2018-12-31 0001156375 cme:NEXMember 2018-12-31 0001156375 cme:CBOTMember 2018-12-31 0001156375 cme:NymexMember 2017-12-31 0001156375 us-gaap:GoodwillMember 2018-01-01 2018-12-31 0001156375 us-gaap:GoodwillMember 2017-12-31 0001156375 us-gaap:CustomerRelationshipsMember 2019-09-30 0001156375 us-gaap:OtherIntangibleAssetsMember 2018-12-31 0001156375 us-gaap:TradeNamesMember 2019-09-30 0001156375 us-gaap:DevelopedTechnologyRightsMember 2018-12-31 0001156375 us-gaap:FiniteLivedIntangibleAssetsMember 2018-12-31 0001156375 us-gaap:FiniteLivedIntangibleAssetsMember 2019-09-30 0001156375 us-gaap:TradeNamesMember 2018-12-31 0001156375 us-gaap:DevelopedTechnologyRightsMember 2019-09-30 0001156375 us-gaap:CustomerRelationshipsMember 2018-12-31 0001156375 us-gaap:OtherIntangibleAssetsMember 2019-09-30 0001156375 cme:A19.1billiontermloandueMarch2019Member 2019-09-30 0001156375 cme:A350.0millionfixedratenotesdueMarch2019Member 2019-09-30 0001156375 cme:A350.0millionfixedratenotesdueMarch2019Member 2018-12-31 0001156375 cme:A19.1billiontermloandueMarch2019Member 2018-12-31 0001156375 2013-09-01 2013-09-30 0001156375 srt:MinimumMember 2019-01-01 2019-09-30 0001156375 us-gaap:CommercialPaperMember 2019-01-01 2019-09-30 0001156375 2015-03-01 2015-03-31 0001156375 2012-09-01 2012-09-30 0001156375 srt:MaximumMember 2019-01-01 2019-09-30 0001156375 us-gaap:CommercialPaperMember 2018-12-31 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2022InterestEqualTo3.00Member 2018-12-31 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2043InterestEqualTo5.3Member 2018-12-31 0001156375 cme:A500.0MillionFixedRateNotesDueJune2028InterestEqualTo3.75MemberDomain 2018-12-31 0001156375 cme:A15.0millionfixedratenotesdueMay2023Member 2019-09-30 0001156375 cme:A500.0MillionFixedRateNotesDueJune2028InterestEqualTo3.75MemberDomain 2019-09-30 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2043InterestEqualTo5.3Member 2019-09-30 0001156375 cme:A750.0MillionFixedRateNotesDueMarch2025InterestEqualTo3.00Member 2019-09-30 0001156375 us-gaap:CommercialPaperMember 2019-09-30 0001156375 cme:A750.0MillionFixedRateNotesDueMarch2025InterestEqualTo3.00Member 2018-12-31 0001156375 cme:A15.0millionfixedratenotesdueMay2023Member 2018-12-31 0001156375 cme:A700.0MillionFixedRateNotesDueJune2048InterestEqualTo4.15MemberDomainDomain 2018-12-31 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2022InterestEqualTo3.00Member 2019-09-30 0001156375 cme:A700.0MillionFixedRateNotesDueJune2048InterestEqualTo4.15MemberDomainDomain 2019-09-30 0001156375 cme:A500.0MillionFixedRateNotesDueJune2028InterestEqualTo3.75MemberDomain 2019-01-01 2019-09-30 0001156375 cme:A700.0MillionFixedRateNotesDueJune2048InterestEqualTo4.15MemberDomainDomain 2019-01-01 2019-09-30 0001156375 cme:A15.0millionfixedratenotesdueMay2023Member 2019-01-01 2019-09-30 0001156375 cme:A750.0MillionFixedRateNotesDueMarch2025InterestEqualTo3.00Member 2019-01-01 2019-09-30 0001156375 cme:A19.1billiontermloandueMarch2019Member 2019-01-01 2019-09-30 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2043InterestEqualTo5.3Member 2019-01-01 2019-09-30 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2022InterestEqualTo3.00Member 2019-01-01 2019-09-30 0001156375 cme:A350.0millionfixedratenotesdueMarch2019Member 2019-01-01 2019-09-30 0001156375 us-gaap:PropertySubjectToOperatingLeaseMember 2019-01-01 2019-09-30 0001156375 cme:PropertySubjecttoFinanceLeaseMember 2019-01-01 2019-09-30 0001156375 cme:FamilyFarmerAndRanchersProtectionFundMember 2019-09-30 0001156375 cme:FamilyFarmerAndRanchersProtectionFundMember 2019-01-01 2019-09-30 0001156375 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-09-30 0001156375 us-gaap:ForeignCurrencyGainLossMember 2018-01-01 2018-09-30 0001156375 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-01-01 2018-09-30 0001156375 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-09-30 0001156375 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-12-31 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001156375 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0001156375 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-09-30 0001156375 us-gaap:ForeignCurrencyGainLossMember 2018-09-30 0001156375 us-gaap:ForeignCurrencyGainLossMember 2017-12-31 0001156375 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001156375 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-30 0001156375 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001156375 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-09-30 0001156375 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-09-30 0001156375 us-gaap:ForeignCurrencyGainLossMember 2018-12-31 0001156375 us-gaap:ForeignCurrencyGainLossMember 2019-01-01 2019-09-30 0001156375 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-01-01 2019-09-30 0001156375 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0001156375 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-09-30 0001156375 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-12-31 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001156375 us-gaap:ForeignCurrencyGainLossMember 2019-09-30 0001156375 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001156375 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-09-30 0001156375 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001156375 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember cme:U.S.GovernmentAgencySecurityPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001156375 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember cme:U.S.TreasuryPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueMeasurementsRecurringMember cme:U.S.GovernmentAgencySecurityPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember cme:U.S.TreasuryPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-09-30 0001156375 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001156375 us-gaap:FairValueMeasurementsRecurringMember cme:U.S.TreasuryPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember cme:U.S.GovernmentAgencySecurityPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember cme:U.S.TreasuryPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember cme:U.S.GovernmentAgencySecurityPerformanceBondMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2019-09-30 0001156375 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001156375 cme:Investment2Member 2019-09-30 0001156375 cme:Investment1Member 2019-09-30 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2043InterestEqualTo5.3Member us-gaap:FairValueInputsLevel2Member 2019-09-30 0001156375 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel3Member 2019-09-30 0001156375 cme:A700.0MillionFixedRateNotesDueJune2048InterestEqualTo4.15MemberDomainDomain us-gaap:FairValueInputsLevel2Member 2019-09-30 0001156375 cme:A15.0millionfixedratenotesdueMay2023Member us-gaap:FairValueInputsLevel2Member 2019-09-30 0001156375 cme:A500.0MillionFixedRateNotesDueJune2028InterestEqualTo3.75MemberDomain us-gaap:FairValueInputsLevel2Member 2019-09-30 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2022InterestEqualTo3.00Member us-gaap:FairValueInputsLevel2Member 2019-09-30 0001156375 cme:A750.0MillionFixedRateNotesDueMarch2025InterestEqualTo3.00Member us-gaap:FairValueInputsLevel2Member 2019-09-30 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2022InterestEqualTo3.00Member us-gaap:FairValueInputsLevel2Member 2019-01-01 2019-09-30 0001156375 cme:A700.0MillionFixedRateNotesDueJune2048InterestEqualTo4.15MemberDomainDomain us-gaap:FairValueInputsLevel2Member 2019-01-01 2019-09-30 0001156375 cme:A750.0millionFixedRateNotesDueSeptember2043InterestEqualTo5.3Member us-gaap:FairValueInputsLevel2Member 2019-01-01 2019-09-30 0001156375 cme:A750.0MillionFixedRateNotesDueMarch2025InterestEqualTo3.00Member us-gaap:FairValueInputsLevel2Member 2019-01-01 2019-09-30 0001156375 cme:A15.0millionfixedratenotesdueMay2023Member us-gaap:FairValueInputsLevel2Member 2019-01-01 2019-09-30 0001156375 cme:A500.0MillionFixedRateNotesDueJune2028InterestEqualTo3.75MemberDomain us-gaap:FairValueInputsLevel2Member 2019-01-01 2019-09-30 0001156375 us-gaap:RestrictedStockMember 2018-01-01 2018-09-30 0001156375 us-gaap:RestrictedStockMember 2018-07-01 2018-09-30 0001156375 us-gaap:RestrictedStockMember 2019-07-01 2019-09-30 0001156375 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 iso4217:USD xbrli:shares xbrli:pure iso4217:EUR cme:days iso4217:JPY iso4217:USD xbrli:shares cme:years
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________________________
FORM 10-Q
_________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
- OR -
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to                
Commission file number 001-31553
CME GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware
 
 
 
36-4459170
(State or other jurisdiction of
incorporation or organization)
 
 
 
(I.R.S. Employer
Identification No.)
 
 
 
 
20 South Wacker Drive
Chicago
Illinois
 
60606
(Address of principal executive offices)
 
(Zip Code)
(312) 930-1000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report) 
Securities registered pursuant to Section 12(b) of the Act:
    
Title of each class
Trading symbol
Name of each exchange on which registered
Class A Common Stock
CME
Nasdaq
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.            Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                   Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer  
 
Smaller reporting company
 
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    
Yes       No  
The number of shares outstanding of each of the registrant’s classes of common stock as of October 16, 2019 was as follows: 358,360,548 shares of Class A common stock, $0.01 par value; 625 shares of Class B-1 common stock, $0.01 par value; 813 shares of Class B-2 common stock, $0.01 par value; 1,287 shares of Class B-3 common stock, $0.01 par value; and 413 shares of Class B-4 common stock, $0.01 par value.

1

Table of Contents



 CME GROUP INC.
FORM 10-Q
INDEX
 
 
 
 
 
Page
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 6.
 
 

2

Table of Contents

PART I. FINANCIAL INFORMATION
Certain Terms
All references to “options” or “options contracts” in the text of this document refer to options on futures contracts.
Further information about CME Group and its products can be found at http://www.cmegroup.com. Information made available on our website does not constitute a part of this Quarterly Report on Form 10-Q.
Information about Contract Volume and Average Rate per Contract
All amounts regarding contract volume and average rate per contract are for CME Group's listed futures and options on futures contracts unless otherwise noted.
Trademark Information
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. NEX, BrokerTec, EBS, TriOptima, and Traiana are trademarks of various entities that are under NEX, all of which are owned by CME Group. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are services and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
Forward-Looking Statements
From time to time, in this Quarterly Report on Form 10-Q as well as in other written reports and verbal statements, we discuss our expectations regarding future performance. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “anticipate,” “could,” “estimate,” “intend,” “may,” “plan,” “expect” and similar expressions, including references to assumptions. These forward-looking statements are based on currently available competitive, financial and economic data, current expectations, estimates, forecasts and projections about the industries in which we operate and management's beliefs and assumptions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. We want to caution you not to place undue reliance on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the factors that might affect our performance are:
increasing competition by foreign and domestic entities, including increased competition from new entrants into our markets and consolidation of existing entities;
our ability to keep pace with rapid technological developments, including our ability to complete the development, implementation and maintenance of the enhanced functionality required by our customers while maintaining reliability and ensuring that such technology is not vulnerable to security risks;
our ability to continue introducing competitive new products and services on a timely, cost-effective basis, including through our electronic trading capabilities, and our ability to maintain the competitiveness of our existing products and services, including our ability to provide effective services to the swaps market;
our ability to adjust our fixed costs and expenses if our revenues decline;
our ability to maintain existing customers, develop strategic relationships and attract new customers;
our ability to expand and globally offer our products and services;
changes in regulations, including the impact of any changes in laws or government policy with respect to our products or services or our industry, such as any changes to regulations and policies that require increased financial and operational resources from us or our customers;
the costs associated with protecting our intellectual property rights and our ability to operate our business without violating the intellectual property rights of others;
decreases in revenue from our market data as a result of decreased demand or changes to regulations in various jurisdictions;
changes in our rate per contract due to shifts in the mix of the products traded, the trading venue and the mix of customers (whether the customer receives member or non-member fees or participates in one of our various incentive programs) and the impact of our tiered pricing structure;

3

Table of Contents

the ability of our credit and liquidity risk management practices to adequately protect us from the credit risks of clearing members and other counterparties, and to satisfy the margin and liquidity requirements associated with the BrokerTec matched principal business;
the ability of our compliance and risk management methods to effectively monitor and manage our risks, including our ability to prevent errors and misconduct and protect our infrastructure against security breaches and misappropriation of our intellectual property assets;
volatility in commodity, equity and fixed income prices, and price volatility of financial benchmarks and instruments such as interest rates, credit spreads, equity indices, fixed income instruments and foreign exchange rates;
economic, political and market conditions, including the volatility of the capital and credit markets and the impact of economic conditions on the trading activity of our current and potential customers;
our ability to accommodate increases in contract volume and order transaction traffic and to implement enhancements without failure or degradation of the performance of our trading and clearing systems;
our ability to execute our growth strategy and maintain our growth effectively;
our ability to manage the risks, control the costs and achieve the synergies associated with our strategy for acquisitions, investments and alliances, including those associated with the acquisition of NEX;
our ability to continue to generate funds and/or manage our indebtedness to allow us to continue to invest in our business;
industry and customer consolidation;
decreases in trading and clearing activity;
the imposition of a transaction tax or user fee on futures and options on futures transactions and/or repeal of the 60/40 tax treatment of such transactions;
our ability to maintain our reputation; and
the unfavorable resolution of material legal proceedings.
For a detailed discussion of these and other factors that might affect our performance, see Item 1A. of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 28, 2019 and Item 1A. of this Quarterly Report on Form 10-Q.

4

Table of Contents

ITEM 1.
FINANCIAL STATEMENTS
CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in millions, except par value data; shares in thousands)
 
 
September 30, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Assets
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
1,210.1

 
$
1,374.5

Marketable securities
 
80.1

 
72.9

Accounts receivable, net of allowance of $2.9 and $2.7
 
545.7

 
553.3

Other current assets (includes $5.1 and $1.5 in restricted cash)
 
695.1

 
430.5

Performance bonds and guaranty fund contributions
 
41,161.3

 
39,455.5

Total current assets
 
43,692.3

 
41,886.7

Property, net of accumulated depreciation and amortization of $837.3 and $761.1
 
517.3

 
448.7

Intangible assets—trading products
 
17,175.3

 
17,175.3

Intangible assets—other, net
 
5,161.2

 
5,500.1

Goodwill
 
10,774.4

 
10,805.3

Other assets (includes $0.9 and $1.2 in restricted cash)
 
2,097.1

 
1,659.6

Total Assets
 
$
79,417.6

 
$
77,475.7

 
 
 
 
 
Liabilities and Equity
 
 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
 
$
61.5

 
$
116.0

Short-term debt
 

 
574.2

Other current liabilities
 
691.6

 
1,126.9

Performance bonds and guaranty fund contributions
 
41,160.4

 
39,455.5

Total current liabilities
 
41,913.5

 
41,272.6

Long-term debt
 
3,873.3

 
3,826.8

Deferred income tax liabilities, net
 
5,614.4

 
5,665.9

Other liabilities
 
1,203.1

 
745.1

Total Liabilities
 
52,604.3

 
51,510.4

 
 
 
 
 
Shareholders’ Equity:
 
 
 
 
Preferred stock, $0.01 par value, 10,000 shares authorized at September 30, 2019 and December 31, 2018; none issued
 

 

Class A common stock, $0.01 par value, 1,000,000 shares authorized at September 30, 2019 and December 31, 2018; 357,447 and 356,824 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
 
3.7

 
3.6

Class B common stock, $0.01 par value, 3 shares authorized, issued and outstanding as of September 30, 2019 and December 31, 2018
 

 

Additional paid-in capital
 
21,107.5

 
21,054.3

Retained earnings
 
5,704.2

 
4,855.3

Accumulated other comprehensive income (loss)
 
(32.2
)
 
5.3

Total CME Group Shareholders’ Equity
 
26,783.2

 
25,918.5

Non-controlling interests
 
30.1

 
46.8

Total Equity
 
26,813.3

 
25,965.3

Total Liabilities and Equity
 
$
79,417.6

 
$
77,475.7


See accompanying notes to unaudited consolidated financial statements.

5

Table of Contents

CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data; shares in thousands)
(unaudited)
 
 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
 
Clearing and transaction fees
 
$
1,040.7

 
$
752.5

 
$
3,045.1

 
$
2,632.2

Market data and information services
 
129.8

 
110.7

 
388.2

 
319.4

Other
 
106.8

 
41.0

 
296.3

 
121.2

Total Revenues
 
1,277.3

 
904.2

 
3,729.6

 
3,072.8

Expenses
 
 
 
 
 
 
 
 
Compensation and benefits
 
223.5

 
144.9

 
681.1

 
448.4

Technology
 
52.7

 
24.7

 
148.4

 
75.4

Professional fees and outside services
 
43.2

 
31.3

 
124.3

 
105.8

Amortization of purchased intangibles
 
79.8

 
23.7

 
236.6

 
71.0

Depreciation and amortization
 
41.4

 
30.2

 
120.6

 
85.8

Licensing and other fee agreements
 
45.6

 
33.4

 
130.9

 
122.8

Other
 
105.9

 
66.1

 
272.9

 
205.9

Total Expenses
 
592.1

 
354.3

 
1,714.8

 
1,115.1

Operating Income
 
685.2

 
549.9

 
2,014.8

 
1,957.7

 
 
 
 
 
 
 
 
 
Non-Operating Income (Expense)
 
 
 
 
 
 
 
 
Investment income
 
172.3

 
161.5

 
490.3

 
559.8

Interest and other borrowing costs
 
(42.8
)
 
(45.0
)
 
(136.0
)
 
(108.2
)
Equity in net earnings of unconsolidated subsidiaries
 
48.0

 
37.1

 
132.3

 
113.6

Other non-operating income (expense)
 
(139.5
)
 
(141.7
)
 
(435.9
)
 
(415.6
)
Total Non-Operating Income (Expense)
 
38.0

 
11.9

 
50.7

 
149.6

Income before Income Taxes
 
723.2

 
561.8

 
2,065.5

 
2,107.3

Income tax provision
 
86.9

 
150.0

 
418.7

 
530.6

Net Income
 
636.3

 
411.8

 
1,646.8

 
1,576.7

Less: net (income) loss attributable to non-controlling interests
 

 

 
0.2

 

Net Income Attributable to CME Group
 
$
636.3

 
$
411.8

 
$
1,647.0

 
$
1,576.7

 
 
 
 
 
 
 
 
 
Earnings per Common Share Attributable to CME Group:
 
 
 
 
 
 
 
 
Basic
 
$
1.78

 
$
1.21

 
$
4.61

 
$
4.64

Diluted
 
1.78

 
1.21

 
4.60

 
4.62

Weighted Average Number of Common Shares:
 
 
 
 
 
 
 
 
Basic
 
357,211

 
339,586

 
357,054

 
339,453

Diluted
 
358,369

 
341,035

 
358,201

 
340,907

See accompanying notes to unaudited consolidated financial statements.

6

Table of Contents

CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(unaudited)
 
 
Quarter Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Net income
 
$
636.3

 
$
411.8

 
$
1,646.8

 
$
1,576.7

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
Net unrealized holding gains (losses) arising during the period
 
(0.2
)
 

 
1.5

 
(0.9
)
Reclassification of net (gains) losses on sales included in investment income
 
(0.1
)
 
(0.1
)
 
(0.2
)
 
(0.1
)
Income tax benefit (expense)
 

 
0.1

 
(0.4
)
 
0.3

Investment securities, net
 
(0.3
)
 

 
0.9

 
(0.7
)
Defined benefit plans:
 
 
 
 
 
 
 
 
Net change in defined benefit plans arising during the period
 

 

 
(2.7
)
 
1.7

Amortization of net actuarial (gains) losses included in compensation and benefits expense
 
1.3

 
0.7

 
3.7

 
2.0

Income tax benefit (expense)
 
(0.4
)
 
(0.1
)
 
(0.3
)
 
(0.9
)
Defined benefit plans, net
 
0.9

 
0.6

 
0.7

 
2.8

Derivative investments:
 
 
 
 
 
 
 
 
Net unrealized holding gains (losses) arising during the period
 
0.5

 

 
0.3

 

Amortization of effective portion of net (gains) losses on cash flow hedges included in interest expense
 
(0.3
)
 
(0.3
)
 
(0.9
)
 
(0.9
)
Income tax benefit (expense)
 
(0.1
)
 

 

 
0.2

Derivative investments, net
 
0.1

 
(0.3
)
 
(0.6
)
 
(0.7
)
Foreign currency translation:
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
(35.5
)
 
(0.2
)
 
(38.5
)
 
(0.8
)
Income tax benefit (expense)
 
(3.0
)
 

 

 

Foreign currency translation, net
 
(38.5
)
 
(0.2
)
 
(38.5
)
 
(0.8
)
Other comprehensive income (loss), net of tax
 
(37.8
)
 
0.1

 
(37.5
)
 
0.6

Comprehensive income
 
598.5

 
411.9

 
1,609.3

 
1,577.3

Less: comprehensive (income) loss attributable to non-controlling interests
 

 

 
0.2

 

Comprehensive income attributable to CME Group
 
$
598.5

 
$
411.9

 
$
1,609.5

 
$
1,577.3

See accompanying notes to unaudited consolidated financial statements.

7

Table of Contents

CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
(dollars in millions, except per share data; shares in thousands)
(unaudited) 

 
Nine Months Ended, September 30, 2019
 
Class A
Common
Stock
(Shares)
 
Class B
Common
Stock
(Shares)
 
Common
Stock and
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total CME Group Shareholders' Equity
 
Non-controlling Interest
 
Total
Shareholders’
Equity
Balance at December 31, 2018
356,824

 
3

 
$
21,057.9

 
$
4,855.3

 
$
5.3

 
$
25,918.5

 
$
46.8

 
$
25,965.3

Net income
 
 
 
 
 
 
1,647.0

 
 
 
1,647.0

 
(0.2
)
 
1,646.8

Other comprehensive income (loss)
 
 
 
 
 
 
 
 
(37.5
)
 
(37.5
)
 

 
(37.5
)
Dividends on common stock of $2.25 per share
 
 
 
 
 
 
(805.0
)
 
 
 
(805.0
)
 
 
 
(805.0
)
Impact of adoption of standards updates on leasing
 
 
 
 
 
 
6.9

 
 
 
6.9

 
 
 
6.9

Changes in non-controlling interest due to measurement period adjustments
 
 
 
 
 
 
 
 
 
 

 
(16.5
)
 
(16.5
)
Exercise of stock options
195

 
 
 
13.7

 
 
 
 
 
13.7

 
 
 
13.7

Vesting of issued restricted Class A common stock
399

 
 
 
(36.8
)
 
 
 
 
 
(36.8
)
 
 
 
(36.8
)
Shares issued to Board of Directors
16

 
 
 
3.1

 
 
 
 
 
3.1

 
 
 
3.1

Shares issued under Employee Stock Purchase Plan
13

 
 
 
2.5

 
 
 
 
 
2.5

 
 
 
2.5

Stock-based compensation
 
 
 
 
70.8

 
 
 
 
 
70.8

 
 
 
70.8

Balance at September 30, 2019
357,447

 
3

 
$
21,111.2

 
$
5,704.2

 
$
(32.2
)
 
$
26,783.2

 
$
30.1

 
$
26,813.3


See accompanying notes to unaudited consolidated financial statements.

















8

Table of Contents

CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY (continued)
(dollars in millions, except per share data; shares in thousands)
(unaudited)

 
Quarter Ended, September 30, 2019
 
Class A
Common
Stock
(Shares)
 
Class B
Common
Stock
(Shares)
 
Common
Stock and
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total CME Group Shareholders' Equity
 
Non-controlling Interest
 
Total
Shareholders’
Equity
Balance at June 30, 2019
357,143

 
3

 
$
21,112.8

 
$
5,336.8

 
$
5.6

 
$
26,455.2

 
$
29.7

 
$
26,484.9

Net income
 
 
 
 
 
 
636.3

 
 
 
636.3

 

 
636.3

Other comprehensive income (loss)
 
 
 
 
 
 
 
 
(37.8
)
 
(37.8
)
 
 
 
(37.8
)
Dividends on common stock of $0.75 per share
 
 
 
 
 
 
(268.9
)
 
 
 
(268.9
)
 
 
 
(268.9
)
Changes in non-controlling interest due to measurement period adjustments
 
 
 
 
 
 
 
 
 
 

 
0.4

 
0.4

Exercise of stock options
33

 
 
 
6.7

 
 
 
 
 
6.7

 
 
 
6.7

Vesting of issued restricted Class A common stock
271

 
 
 
(22.7
)
 
 
 
 
 
(22.7
)
 
 
 
(22.7
)
Stock-based compensation
 
 
 
 
14.4

 
 
 
 
 
14.4

 
 
 
14.4

Balance at September 30, 2019
357,447

 
3

 
$
21,111.2

 
$
5,704.2

 
$
(32.2
)
 
$
26,783.2

 
$
30.1

 
$
26,813.3

See accompanying notes to unaudited consolidated financial statements.

9

Table of Contents


CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY (continued)
(dollars in millions, except per share data; shares in thousands)
(unaudited)
 
 
Nine Months Ended, September 30, 2018
 
Class A
Common
Stock
(Shares)
 
Class B
Common
Stock
(Shares)
 
Common
Stock and
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Shareholders’
Equity
Balance at December 31, 2017
339,235

 
3

 
$
17,900.3

 
$
4,497.2

 
$
14.3

 
$
22,411.8

Net income
 
 
 
 
 
 
1,576.7

 
 
 
1,576.7

Other comprehensive income (loss)
 
 
 
 
 
 
 
 
0.6

 
0.6

Dividends on common stock of $2.10 per share
 
 
 
 
 
 
(715.0
)
 
 
 
(715.0
)
Impact of adoption of standards update on tax effects related to accumulated other comprehensive income and revenue recognition
 
 
 
 
 
 
(12.5
)
 
3.8

 
(8.7
)
Exercise of stock options
151

 
 
 
10.1

 
 
 
 
 
10.1

Vesting of issued restricted Class A common stock
448

 
 
 
(34.9
)
 
 
 
 
 
(34.9
)
Shares issued to Board of Directors
16

 
 
 
2.8

 
 
 
 
 
2.8

Shares issued under Employee Stock Purchase Plan
10

 
 
 
1.8

 
 
 
 
 
1.8

Stock-based compensation
 
 
 
 
50.5

 
 
 
 
 
50.5

Balance at September 30, 2018
339,860

 
3

 
$
17,930.6

 
$
5,346.4

 
$
18.7

 
$
23,295.7

 
Quarter Ended, September 30, 2018
 
Class A
Common
Stock
(Shares)
 
Class B
Common
Stock
(Shares)
 
Common
Stock and
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Shareholders’
Equity
Balance at June 30, 2018
339,520

 
3

 
$
17,931.7

 
$
5,173.3

 
$
18.6

 
$
23,123.6

Net income
 
 
 
 
 
 
411.8

 
 
 
411.8

Other comprehensive income (loss)
 
 
 
 
 
 
 
 
0.1

 
0.1

Dividends on common stock of $0.70 per share
 
 
 
 
 
 
(238.7
)
 
 
 
(238.7
)
Exercise of stock options
35

 
 
 
1.9

 
 
 
 
 
1.9

Vesting of issued restricted Class A common stock
303

 
 
 
(20.0
)
 
 
 
 
 
(20.0
)
Shares issued to Board of Directors
2

 
 
 
0.4

 
 
 
 
 
0.4

Shares issued under Employee Stock Purchase Plan

 
 
 

 
 
 
 
 

Stock-based compensation
 
 
 
 
16.6

 
 
 
 
 
16.6

Balance at September 30, 2018
339,860

 
3

 
$
17,930.6

 
$
5,346.4

 
$
18.7

 
$
23,295.7

See accompanying notes to unaudited consolidated financial statements.


10

Table of Contents

CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited) 
 
 
Nine Months Ended
September 30,
 
 
2019
 
2018
Cash Flows from Operating Activities
 
 
 
 
Net income
 
$
1,646.8

 
$
1,576.7

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Stock-based compensation
 
70.8

 
50.5

Amortization of purchased intangibles
 
236.6

 
71.0

Depreciation and amortization
 
120.6

 
85.8

Net losses on assets held for sale and impaired
 
61.1

 
9.5

Unrealized loss on derivative contracts
 
17.9

 
51.4

Net realized and unrealized losses (gains) on investments
 
20.4

 
(85.9
)
Undistributed net earnings of unconsolidated subsidiaries
 
(41.1
)
 
(5.8
)
Deferred income taxes
 
(23.7
)
 
24.6

Change in:
 
 
 
 
Accounts receivable
 
7.4

 
(27.9
)
Other current assets
 
(106.5
)
 
35.2

Other assets
 
(10.5
)
 
7.8

Accounts payable
 
(54.4
)
 
22.5

Income taxes payable
 
(94.5
)
 
161.0

Other current liabilities
 
91.9

 
(37.8
)
Other liabilities
 
1.0

 
(10.2
)
Other
 
9.3

 
2.0

Net Cash Provided by Operating Activities
 
1,953.1

 
1,930.4

 
 
 
 
 
Cash Flows from Investing Activities
 
 
 
 
Proceeds from maturities of available-for-sale marketable securities
 
13.0

 
6.6

Purchases of available-for-sale marketable securities
 
(9.8
)
 
(5.0
)
Purchases of property, net
 
(179.2
)
 
(60.9
)
Proceeds from sales of investments
 
39.3

 
20.4

Net Cash Used in Investing Activities
 
(136.7
)
 
(38.9
)
 
 
 
 
 
Cash Flows from Financing Activities
 
 
 
 
Issuance of commercial paper, net of maturities
 
38.9

 

Proceeds from debt, net of issuance costs
 

 
1,185.3

Repayment of debt
 
(569.2
)
 

Cash dividends
 
(1,427.8
)
 
(1,900.1
)
Premium payment for derivative contract
 

 
(30.0
)
Settlement of derivative contracts
 
16.0

 

Employee taxes paid on restricted stock vesting
 
(36.8
)
 
(34.9
)
Other
 
1.4

 
11.9

Net Cash Used in Financing Activities
 
(1,977.5
)
 
(767.8
)













11

Table of Contents

CME GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in millions)
(unaudited) 

 
 
Nine Months Ended
September 30,
 
 
2019
 
2018
Net change in cash, cash equivalents and restricted cash
 
$
(161.1
)
 
$
1,123.7

Cash, cash equivalents and restricted cash, beginning of period
 
1,377.2

 
1,906.0

Cash, Cash Equivalents and Restricted Cash, End of Period
 
$
1,216.1

 
$
3,029.7

 
 
 
 
 
Reconciliation of cash, cash equivalents and restricted cash:
 
 
 
 
Cash and cash equivalents
 
$
1,210.1

 
$
1,406.3

Short-term restricted cash
 
5.1

 
1,622.1

Long-term restricted cash
 
0.9

 
1.3

Total
 
$