Released : 10 February 2010

ATLANTA, Feb 10, 2010/PRNewswire via COMTEX News Network/ --

  • 4Q09 Revenues Up 24% to $257 MM; 2009 Revenues Up 22% to $995 MM
  • 4Q09 Operating Income Up 27% to $124 MM; 2009 Operating Income Up 4% to $513 MM
  • 4Q09 Diluted EPS of $1.13; 2009 Diluted EPS of $4.27
  • Over $5.5 Trillion in CDS Cleared since March 2009


IntercontinentalExchange,Inc. (NYSE: ICE), a leading operator of regulated global exchanges, clearinghouses and over-the-counter (OTC) markets, today reported record consolidatedrevenues of $257 million in the fourth quarter of 2009, an increase of 24% fromfourth quarter 2008 revenues of $207 million. Consolidated net incomeattributable to ICE for the fourth quarter grew 72% to $84 million from $49million in the prior fourth quarter. Diluted earnings per share (EPS) in thefourth quarter were $1.13, up 69% from fourth quarter 2008 diluted EPS of$0.67.

(Logo: )

For the year endedDecember 31, 2009, ICE reported its sixth consecutive record year ofconsolidated revenues totaling $995 million, up 22% compared to 2008 revenuesof $813 million. Consolidated 2009 net income attributable to ICE increased 5%to a record $316 million from $301 million in 2008, and diluted EPS increased2% to $4.27 from $4.17. Consolidated cash flow from operations grew 30% to arecord $487 million in 2009.

During the years endedDecember 31, 2009 and 2008, including during the fourth quarters of 2009 and2008, certain items were included in ICE's operating results that managementbelieves are not indicative of its operating performance. For the year endedDecember 31, 2009, consolidated adjusted net income attributable to ICEexcluding these items was $334 million, up 7% from $312 million in 2008. Forthe fourth quarter of 2009, consolidated adjusted net income attributable toICE excluding these items was $84 million, an increase of 39% versus the priorfourth quarter. Please refer to the reconciliation of non-GAAP financialmeasures included in this press release for more information on adjusted netincome attributable to ICE.

"ICE executed onits strategic and financial objectives with focus, speed and discipline in2009," said Scott Hill, ICE CFO. "We delivered record financialperformance and completed the integration of Creditex and The ClearingCorporation to deliver CDS clearing, while maintaining best-in-classtechnology, growing our core business, investing in future growth andstrengthening our growth- and customer-focused company culture."

ICE Chairman and CEOJeffrey C. Sprecher said: "ICE's consistently strong performance,regardless of market conditions, is a result of our unwavering focus on ourcore markets, and on opportunities to expand our business to serve the evolvingneeds of our customers. In 2002, ICE took a leadership role in developing OTCclearing for the energy markets, and in 2009 we again led in developing acomplete CDS clearing business. With a global footprint across trade execution,processing and clearing, ICE will continue to innovate and extend its riskmanagement services, while creating value for our shareholders."

Fourth Quarter 2009Results

Consolidated revenuesgrew 24% to $257 million in the fourth quarter of 2009, compared to $207million in the fourth quarter of 2008. Quarterly consolidated transaction andclearing fee revenues increased 29% to $229 million, from $178 million in thefourth quarter of 2008. The increase in transaction and clearing fee revenueswas driven primarily by strong trading volume in ICE's futures and OTC energysegments, new products, and the addition of credit derivatives execution,processing and clearing.

Transaction andclearing fee revenues in ICE's futures segment totaled $102 million in thefourth quarter, an increase of 19% from $86 million in the same period of 2008.Consolidated average daily volume in ICE's futures segment in the fourthquarter was 1,048,501 contracts, up 13% from the same period of 2008.

Transaction andclearing fee revenues in ICE's global OTC segment increased 37% to $127 millionin the fourth quarter of 2009, compared to $92 million for the comparableperiod in 2008. Average daily commissions (ADC) for ICE's OTC energy businesswere $1.3 million in the fourth quarter, an increase of 53% from $872,440 inthe fourth quarter of 2008. Cleared contracts accounted for 97% of OTC energycontract volume during the fourth quarter of 2009, compared to 95% in thefourth quarter of 2008. In ICE's credit derivatives business, fourth quarterrevenues totaled $39 million, comprised of $29 million from Creditex and $10million from credit default swaps (CDS) clearing.

Fourth quarter 2009consolidated market data revenues were $25 million, compared to $27 million inthe same period of 2008.

Consolidated operatingexpenses increased 21% to $133 million in the fourth quarter, compared to $110million in fourth quarter of 2008. This increase is primarily attributable toan $11 million increase in expenses related to credit derivatives execution,processing and clearing. ICE also incurred additional compensation expense of$5 million in the quarter relating to increased employee bonuses due to verystrong fourth quarter performance that enabled ICE to further exceed itsBoard-established financial targets for 2009. As included in previous guidance,ICE also recorded $10 million in severance and tax-related expenses that arenot indicative of its operating performance.

Also during the fourthquarter of 2009, ICE recorded an additional $11 million in non-operating incomerelated to cost method investments, including the disposition of its stake inLCH.Clearnet.

Consolidated operatingincome grew 27% to $124 million, compared to $97 million in the fourth quarterof 2008. Operating margin was 48%, compared to 47% in the prior fourth quarter.Adjusted for the aforementioned items, adjusted operating income for the fourthquarter of 2009 was $133 million, up 37%, and adjusted operating margin was52%. Please refer to the reconciliation of non-GAAP financial measures includedin this press release for more information on adjusted operating income.

The effective tax ratefor the quarter was 35.9%, compared to 39.8% for the fourth quarter of 2008.The decline in the tax rate was primarily due to the impact of the NCDEXimpairment charge and additional foreign tax credits.

Full-Year 2009 Results

For the year endedDecember 31, 2009, consolidated revenues were $995 million, an increase of 22%from $813 million in 2008. Consolidated transaction and clearing revenues rose28% to $884 million in 2009 from $693 million in 2008. The growth intransaction and clearing revenues was driven primarily by new clearing houses,new products, strong trading volume in ICE's futures and global OTC segments,an increase in the number of participants in ICE's markets, and the acquisitionof Creditex.

Transaction andclearing revenues in ICE's consolidated futures segment totaled $410 million in2009, up 17% from $352 million in 2008. Volume in ICE's consolidated futuressegment, comprising ICE Futures Europe, ICE Futures U.S. and ICE FuturesCanada, rose 11% over 2008, reaching a record 262 million contracts. ADV in2009 was 1,035,887 contracts, crossing one million contracts for the firsttime.

Transaction andclearing revenues in ICE's global OTC segment increased 39% to $475 million in2009 from $342 million in 2008. ADC for ICE's OTC energy business increased 8%to a record $1.20 million in 2009, compared to $1.12 million in 2008, andrepresented the sixth consecutive year of record ADC. Cleared contractsaccounted for 96% of OTC energy contract volume throughout 2009, compared to91% during 2008. Revenues from ICE's CDS businesses, both execution andclearing, totaled $165 million in 2009, comprised of $134 million from Creditexand $31 million from global CDS clearing. To date, ICE's CDS clearing houseshave cleared over $5.5 trillion in gross notional value, including $4.6trillion during 2009.

Consolidated marketdata revenues of $102 million in 2009 were roughly flat compared to $103million in 2008.

Consolidated operatingexpenses during 2009 were $482 million, an increase of 51% compared to $320million in 2008. The increase was attributable to a $126 million increase inspending related to our credit execution, processing and clearing businesses, a$19 million increase related to the amortization of expenses related to ourRussell agreement and $22 million in various other expenses in 2009 related tothe acquisition of The Clearing Corporation (TCC), employee termination costs,certain state tax true-up items and costs incurred to vacate office space asdetailed in the non-GAAP reconciliation.

Consolidated operatingincome for the full year was $513 million, an increase of 4% from $494 millionin 2008. Operating margin was 52% for the year ended December 31, 2009,compared to 61% for the same period in 2008. Adjusted for the aforementioneditems, full year adjusted operating income was $534 million, up 8%, andadjusted operating margin was 54%.

The effective tax ratefor both 2009 and 2008 was 36.4%.

Consolidated cash flowfrom operations was $487 million, up 30% from $375 million in 2008. Capitalexpenditures for 2009 were $25 million, compared to $30 million in 2008.Capitalized software development costs totaled $20 million for the full year,compared to $18 million in 2008. Capital expenditures primarily related to thedevelopment and expansion of ICE's trading, processing and clearing platforms,as well as expansion of ICE's primary data center.

Unrestricted cash andshort-term investments were $554 million as of December 31, 2009. At the end of2009, ICE had $308 million in outstanding debt.

Guidance andAdditional Information


  • ICE currently expects 2010 CDS clearing revenue in the range of $60 million to $80 million based upon assumptions relating to product roll outs, regulatory approvals, additional customers, founding member pricing structures and a gradual improvement in trading activity in the CDS market. After expenses and the 50% profit sharing with the former owners of TCC, ICE expects approximately 16% to 20% of the projected revenues to be recorded as net income. The non-controlling interest line item on ICE's income statement reflects profits distributed to the former TCC owners.
  • ICE had 826 employees as of December 31, 2009. In 2010, headcount is expected to increase between 4% and 5% for the full year, excluding any personnel additions relating to merger and acquisition activity in 2010.
  • ICE reiterates its guidance for non-cash compensation expense in the range of $45 million to $49 million for 2010, assuming the achievement of certain Board-approved financial objectives "at target" levels.
  • ICE expects 2010 capital expenditures in the range of $25 million to $30 million, driven by continued investments in trading and clearing technology and data centers.
  • ICE expects depreciation and amortization for 2010 in the range of $110 million to $114 million, including $26 million related to the amortization of the exclusive Russell Index license and $35 million for the amortization of intangibles associated with prior acquisitions.
  • ICE expects interest expense in the range of $20 million to $25 million in 2010.
  • ICE's consolidated tax rate is expected to be in the range of 34% to 36% for 2010.
  • ICE's diluted share count for the first quarter of 2010 is expected to be in the range of 74.6 million to 75.2 million weighted average shares outstanding, and the diluted share count for fiscal year 2010 is expected to be in the range of 74.7 million to 75.7 million weighted average shares outstanding.
  • ICE's Board has approved a $300 million share repurchase program, which replaces the $200 million remaining under the existing repurchase program.


Earnings ConferenceCall Information

ICE will hold aconference call today, February 10, at 8:30 a.m. ET to review its full year andfourth quarter 2009 financial results. A live audio webcast of the earningscall will be available on the company's website under About ICE/Investors & Media.Participants may also listen via telephone by dialing (888) 378-4353 within theUnited States, or (719) 325-2223 from outside of the United States. Toparticipate by telephone, please call ten minutes prior to the start of thecall.

The call will bearchived on the company's website for replay. A replay of the earnings callwill also be available by telephone at (888) 203-1112 for callers within theUnited States and at (719) 457-0820 for callers outside of the United States.The passcode for the replay is 5506749.

Historical futuresvolume and OTC commission data can be found at:


IntercontinentalExchange(R) (NYSE: ICE) is a leading operator of regulated futuresexchanges and over-the-counter markets for agricultural, credit, currency,emissions, energy and equity index contracts. ICE Futures Europe(R) hosts trade in half of the world's crude and refined oil futures.ICE Futures U.S.(R) and ICE Futures Canada(R) list agricultural, currencies and Russell Index markets.ICE(R) is also a leading operator of centralclearing services for the futures and over-the-counter markets, with fiveregulated clearing houses across North America and Europe. ICE serves customersin more than 55 countries.

The following aretrademarks of IntercontinentalExchange, Inc. and/or its affiliated companies:IntercontinentalExchange, IntercontinentalExchange & Design, ICE, ICE andblock design, ICE Futures Canada, ICE Futures Europe, ICE Futures U.S., ICETrust, ICE Clear Europe, ICE Clear U.S., ICE Clear Canada, The ClearingCorporation, U.S. Dollar Index, ICE Link and Creditex. All other trademarks arethe property of their respective ownersFor more informationregarding registered trademarks owned by IntercontinentalExchange, Inc. and/orits affiliated companies, see


This press release maycontain "forward-looking statements" made pursuant to the safe harborprovisions of the Private Securities Litigation Reform Act of 1995. Statementsregarding IntercontinentalExchange's business that are not historical facts areforward-looking statements that involve risks, uncertainties and assumptionsthat are difficult to predict. These statements are not guarantees of futureperformance and actual outcomes and results may differ materially from what isexpressed or implied in any forward-looking statement. The factors that mightaffect our performance include, but are not limited to: our businessenvironment; conditions in global financial markets; domestic and internationaleconomic conditions; volatility in commodity prices; our ability to identifyand effectively pursue acquisitions and strategic alliances and successfullyintegrate the companies we acquire on a cost-effective basis; changes indomestic and foreign regulations or government policy; increasing competitionand consolidation in our industry; our ability to minimize the risks associatedwith operating multiple clearing houses in multiple jurisdictions; the successof our initiative to clear credit default swaps transactions; the success ofour global clearing strategy; technological developments, including clearingdevelopments; the accuracy of our cost estimates and expectations, including,without limitation, those set forth in this press release under "Guidanceand Additional Information"; our belief that cash flows will be sufficientto service our debt and fund our working capital needs and capital expendituresat least through the end of 2011; our ability to increase the connectivity toour marketplace; maintaining existing market participants and attracting newones; our ability to develop new products and services; protecting ourintellectual property rights; not violating the intellectual property rights ofothers; potential adverse litigation results; our belief in our electronicplatform and disaster recovery system technologies; and our ability to gainaccess to comparable products and services if our key technology contracts wereterminated. For a discussion of such risks and uncertainties, which could causeactual results to differ from those contained in the forward-lookingstatements, see ICE's Securities and Exchange Commission (SEC) filings,including, but not limited to, the risk factors in ICE's most recent AnnualReport on Form 10-K for the year ended December 31, 2009, which is expected tobe filed with the SEC on February 10, 2010. These filings are also available inthe Investors & Media section of our website. You should not place unduereliance on forward-looking statements, which speak only as of the date of thispress release. Except for any obligations to disclose material informationunder the Federal securities laws, ICE undertakes no obligation to publiclyupdate any forward-looking statements to reflect events or circumstances afterthe date of this press release.

                           Consolidated Statements of Income

                       (In thousands, except per share amounts)


                                          YearEnded      Three Months Ended

                                         December31,        December 31,

                                     ------------------ ------------------

                                       2009      2008      2009     2008

                                      -------- --------  --------  --------


       Transaction andclearing fees,

        net                           $884,473  $693,229 $229,172  $178,159

       Market datafees                101,684   102,944   25,194    26,960

       Other                             8,631    16,905    2,188     2,141

                                     --------  --------  -------- --------

    Total revenues                     994,788   813,078  256,554   207,260

                                     --------  -------- --------  --------


    Operating expenses:

       Compensation andbenefits       235,677   159,792   69,446    57,004

       Professionalservices            35,557    29,705    9,649     6,716


        costs                            6,139         -         -        -

       Selling, generaland

       administrative                 93,439    67,800    24,982   20,157

       Depreciation andamortization   111,357    62,247   28,607    26,056

                                     --------  --------  -------- --------

    Total operatingexpenses           482,169   319,544  132,684   109,933

                                     --------  --------  -------- --------

    Operating income                   512,619   493,534  123,870    97,327

                                     --------  --------  -------- --------

    Other income(expense):

       Interest andinvestment income    1,961    11,536      708     2,394

       Interest expense                (22,922)  (19,573)  (6,387)   (5,958)

       Other income(expense), net       2,047   (12,001)  11,210   (12,607)

                                     --------  --------  -------- --------

    Total other income (expense),net  (18,914)  (20,038)   5,531   (16,171)

                                     --------  --------  -------- --------

    Income before incometaxes         493,705   473,496  129,401    81,156

    Income taxexpense                 179,551   172,524   46,409    32,301

                                     --------  --------  -------- --------

    Net income                        $314,154  $300,972  $82,992   $48,855

                                     ========  ========  ======== ========

    Net loss attributableto

     noncontrollinginterest             1,834         -    1,262         -

                                     ========  ========  ======== ========

    Net incomeattributable to

    IntercontinentalExchange, Inc.   $315,988  $300,972  $84,254   $48,855

                                     ========  ========  ======== ========


    Earnings per shareattributable

     toIntercontinentalExchange, Inc.

     common shareholders:

       Basic                             $4.33    $4.23     $1.15     $0.68

                                     ========  ========  ======== ========

       Diluted                           $4.27     $4.17    $1.13     $0.67

                                     ========  ========  ======== ========

    Weighted averagecommon shares


       Basic                            72,985    71,184   73,275    72,280

                                     ========  ========  ======== ========

       Diluted                          74,090   72,164    74,510    73,465

                                     ========  ========  ======== ========



                           Consolidated Balance Sheets



                                                          December 31,


                                                        2009         2008

                                                    ----------   ----------


    Current assets:

       Cash and cashequivalents                      $552,465     $283,522

       Short-termrestricted cash                       81,970       30,724

       Short-terminvestments                             2,005       3,419

       Customer accountsreceivable, net               109,068       81,248

       Margin deposits andguaranty funds            18,690,238   12,117,820

       Prepaid expensesand other current assets        24,105       35,855

                                                     ----------   ----------

    Total currentassets                            19,459,851   12,552,588

                                                    ----------   ----------

    Property andequipment, net                         91,735       88,952

                                                    ----------   ----------

    Other noncurrentassets:

       Goodwill                                      1,465,831    1,434,816

       Other intangibleassets, net                    702,460      728,855

       Long-termrestricted cash                       123,823      105,740

       Long-terminvestments                            23,492        3,065

       Cost methodinvestments                            7,501       32,724

       Other noncurrentassets                          10,182       12,841

                                                    ----------   ----------

    Total other noncurrentassets                     2,333,289    2,318,041

                                                    ----------   ----------

    Total assets                                   $21,884,875  $14,959,581

                                                    ----------   ----------



    Current liabilities:

       Accounts payableand accrued liabilities        $57,288      $49,663

       Accrued salariesand benefits                    52,185       41,096

       Current portion oflicensing agreement            15,223      12,686

       Current portion oflong-term debt                99,000       46,875

       Income taxespayable                             23,327       17,708

       Margin deposits andguaranty funds            18,690,238   12,117,820

       Other current liabilities                         30,571       25,794

                                                    ----------   ----------

    Total currentliabilities                       18,967,832   12,311,642

                                                    ----------   ----------


       Noncurrent deferredtax liability, net           181,102      194,301

       Long-term debt                                   208,500      332,500

       Noncurrent portionof licensing agreement        73,441       82,989

       Other noncurrentliabilities                     20,353       24,901

                                                    ----------   ----------

    Total noncurrentliabilities                        483,396      634,691

                                                    ----------   ----------

    Total liabilities                                19,451,228   12,946,333

                                                    ----------   ----------

    Redeemable stockput                                     -        1,068

                                                    ----------   ----------



   IntercontinentalExchange, Inc. shareholders'


       Common stock                                         776          765

       Treasury stock, atcost                        (349,646)    (355,520)

       Additional paid-incapital                    1,674,919    1,608,344

       Retainedearnings                              1,049,125      732,752

       Accumulated othercomprehensive income           24,558       19,890

                                                    ----------   ----------

    TotalIntercontinentalExchange, Inc.

     shareholders'equity                             2,399,732    2,006,231

       Noncontrollinginterest in consolidated

        subsidiaries                                    33,915        5,949

                                                    ----------   ----------

    Total equity                                     2,433,647    2,012,180

                                                    ----------   ----------

    Total liabilities andequity                   $21,884,875  $14,959,581

                                                     ----------   ----------


Non-GAAP FinancialMeasures and Reconciliation

ICE presents adjustednet income attributable to ICE, adjusted earnings per common share attributableto ICE, adjusted operating income and adjusted operating margin as additionalinformation regarding our operating results. ICE uses these non-GAAP measuresinternally to evaluate the company's performance and in making financial andoperational decisions. ICE believes that its presentation of these measuresprovides investors with greater transparency and supplemental data relating toits financial condition and results of operations. In addition, ICE believesthe presentation of these measures is useful for period-to-period comparison ofresults because the charges identified below are unusual and infrequent and notrepresentative of our historical operating performance. These measures are notin accordance with, or an alternative to, U.S. generally accepted accountingprinciples, or GAAP, and may be different from non-GAAP measures used by othercompanies. Investors should not rely on any single financial measure whenevaluating our business. ICE strongly recommends that investors review the GAAPfinancial measures included in this press release and its Annual Report on Form10-K, including ICE's consolidated financial statements and the notes thereto.

When viewed inconjunction with ICE's GAAP results and the accompanying reconciliation, ICEbelieves these adjusted measures provide a more complete understanding offactors affecting our business than GAAP measures alone. ICE management usesthese measures to evaluate operating performance and management decisions madeduring the reporting period by excluding certain items that the companybelieves have less significance on, or do not impact, the day-to-dayperformance of the business. ICE's internal budgets are based on adjusted netincome attributable to ICE and adjusted earnings per common share attributableto ICE, and the company reports these measures to its Audit Committee and itsBoard of Directors. In addition, adjusted net income attributable to ICE is oneof the criteria considered in determining performance-based compensation. ICEunderstands that analysts and investors regularly rely on non-GAAP financialmeasures to assess operating performance. ICE uses these adjusted measuresbecause they more clearly highlight trends in the business that may nototherwise be apparent when relying solely on GAAP financial measures, sincethey eliminate from the company's results specific financial items that haveless bearing on ICE's operating performance.

The following tablereconciles our net income attributable to ICE to adjusted net incomeattributable to ICE and calculates adjusted earnings per common shareattributable to ICE for the periods presented below.

                                        Consolidated        Consolidated

                                     ------------------ ------------------

                                                Three              Three

                                       Year     Months    Year    Months

                                        Ended    Ended    Ended    Ended

                                       Dec. 31,Dec. 31,  Dec. 31, Dec. 31,

                                       2009      2009      2008     2008

                                      --------  -------- --------  --------


                                     (Inthousands, except per share amounts)


    Net incomeattributable to ICE    $315,988   $84,254 $300,972   $48,855

    Add: NCDEX  impairment costs         9,276         -   15,700    15,700

    Add: Other cost methodinvestment

     impairment costs                    6,083     6,083         -        -

    Add: TCC acquisitioncosts           6,139         -         -        -

    Add: Lease terminationcosts         2,347         -         -         -

    Add: Severancecosts                 6,788     3,886         -        -

    Add: True up ofcertain state tax

     items                               5,623     5,623         -        -

    Add: Fixed assetdisposals             633         -         -         -

    Less: LCH.Clearnetgain on sale

     of stock                          (17,172)  (17,172)        -        -

    Add (Less): Effectivetax rate

     expense (benefit) ofadjustments   (2,056)      945   (4,477)   (4,477)

                                     --------  --------  -------- --------

    Adjusted net incomeattributable

      to ICE                          $333,649   $83,619 $312,195   $60,078

                                     ========  ========  ======== ========

    Earnings per shareattributable

     to ICE commonshareholders:

        Basic                            $4.33     $1.15    $4.23     $0.68

                                     ========  ========  ======== ========

        Diluted                          $4.27     $1.13    $4.17     $0.67

                                     ========  ========  ======== ========

    Adjusted earnings pershare

     attributable to ICEcommon


         Adjustedbasic                  $4.57     $1.14    $4.39     $0.83

                                     ========  ========  ======== ========

         Adjusteddiluted                $4.50     $1.12    $4.33     $0.82

                                     ========  ========  ======== ========

     Weighted averagecommon shares


        Basic                           72,985    73,275   71,184    72,280

                                     ========  ========  ======== ========

        Diluted                         74,090    74,510   72,164    73,465

                                     ========  ========  ======== ========


The following tablereconciles our operating income to adjusted operating income and calculatesadjusted operating margin for the periods presented below.

                                        Consolidated        Consolidated

                                     ------------------ ------------------

                                                Three              Three

                                       Year     Months    Year    Months

                                       Ended    Ended     Ended   Ended

                                       Dec. 31,Dec. 31,  Dec. 31, Dec. 31,

                                       2009      2009     2008      2008

                                     --------  --------  -------- --------

                                                 (In thousands)


    Total revenues                    $994,788  $256,554 $813,078  $207,260

                                     --------  --------  -------- --------


    Operating income                  $512,619  $123,870 $493,534   $97,327

    Add: TCC acquisitioncosts           6,139         -         -        -

    Add: Lease terminationcosts         2,347         -         -         -

    Add: Severancecosts                 6,788     3,886         -        -

    Add: True up ofcertain state

     tax items                           5,623     5,623         -        -

    Add: Fixed assetdisposals             633         -         -        -

                                     --------  --------  -------- --------

       Adjusted operatingincome      $534,149  $133,379 $493,534   $97,327

                                      ========  ======== ========  ========


    Operating margin                        52%       48%      61%       47%

                                     ========  ========  ======== ========



    Adjusted operatingmargin               54%      52%       61%       47%

                                     ========  ========  ======== ========


During the years endedDecember 31, 2009 and 2008, ICE recognized impairment losses related to itsinvestment in the National Commodity and Derivatives Exchange of India (NCDEX)of $9 million and $16 million, respectively. During the year and three monthsended December 31, 2009, ICE recognized a $17 million gain on the sale of ourLCH.Clearnet cost method investment, incurred $6 million in write offs of twoother cost method investments, recognized $6 million in various state tax trueups and also recognized $7 million in severance costs related to our recentacquisitions. During the first three quarters of 2009, ICE also recognized $6million in acquisition costs relating to The Clearing Corporation (TCC)acquisition and $3 million in costs relating to a lease termination and fixedasset disposals. Please refer to ICE's Annual Report on Form 10-K, includingICE's consolidated financial statements and the notes thereto, for moreinformation on these items.

SOURCEIntercontinentalExchange, Inc.