☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the fiscal year ended | December 31, | |||||||
OR | ||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934 | |||||||
For the transition period | from ________ to ________ |
Delaware | 52-1165937 | ||||||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
151 W. 42nd Street, | New York, | New York | 10036 | ||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, | NDAQ | The Nasdaq Stock Market | ||||||||||||
0.900% Senior Notes due 2033 | NDAQ33 | The Nasdaq Stock Market | ||||||||||||
0.875% Senior Notes due 2030 | NDAQ30 | The Nasdaq Stock Market | ||||||||||||
1.75% Senior Notes due 2029 | NDAQ29 | The Nasdaq Stock Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Class | Outstanding at February | ||||||||||
Common Stock, | shares |
by Reference: Certain portions of the Definitive Proxy Statement for the | Shareholders are incorporated by reference into Part III of this Form 10-K. | |||||
Page | |||||||||
Item 1. | |||||||||
Item 1A. | |||||||||
Item 1B. | |||||||||
Item 2. | |||||||||
Item 3. | |||||||||
Item 4. | |||||||||
Item 5. | |||||||||
Item 6. | |||||||||
Item 7. | |||||||||
Item 7A. | |||||||||
Item 8. | |||||||||
Item 9. | |||||||||
Item 9A. | |||||||||
Item 9B. | |||||||||
Item 10. | |||||||||
Item 11. | |||||||||
Item 12. | |||||||||
Item 13. | |||||||||
Item 14. | |||||||||
Item 15. | |||||||||
Item 16. | |||||||||
IPOs | 161 | ||||
Switches from the New York Stock Exchange LLC, or NYSE, and the NYSE American LLC, or NYSE American | 14 | ||||
Upgrades from OTC | 46 | ||||
ETPs and Other Listings | 145 | ||||
Total | 366 | ||||
The Nasdaq Stock Market IPO win rates: | |||||
2022 total | 89 | % | |||
Operating companies | 92 | % | |||
SPACs | 86 | % |
High | Low | ||||||
Fiscal 2017 | |||||||
Fourth quarter | $ | 78.88 | $ | 71.62 | |||
Third quarter | 77.25 | 70.36 | |||||
Second quarter | 70.92 | 65.72 | |||||
First quarter | 70.76 | 65.37 | |||||
Fiscal 2016 | |||||||
Fourth quarter | $ | 68.94 | $ | 63.23 | |||
Third quarter | 71.01 | 63.99 | |||||
Second quarter | 65.16 | 60.84 | |||||
First quarter | 66.09 | 54.73 |
December 31, | |||||||
2017 | 2016 | ||||||
First quarter | $ | 0.32 | $ | 0.25 | |||
Second quarter | 0.38 | 0.32 | |||||
Third quarter | 0.38 | 0.32 | |||||
Fourth quarter | 0.38 | 0.32 | |||||
Total | $ | 1.46 | $ | 1.21 |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | ||||||||||||||||||||||
October 2022 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 293 | ||||||||||||||||||||
Employee transactions | 27,913 | $ | 59.76 | N/A | N/A | |||||||||||||||||||||
November 2022 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 293 | ||||||||||||||||||||
Employee transactions | 231 | $ | 66.52 | N/A | N/A | |||||||||||||||||||||
December 2022 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 650 | ||||||||||||||||||||
Employee transactions | 56,480 | $ | 61.76 | N/A | N/A | |||||||||||||||||||||
Total Quarter Ended December 31, 2022 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 650 | ||||||||||||||||||||
Employee transactions | 84,624 | $ | 61.11 | N/A | N/A |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | |||||||||
October 2017 | |||||||||||||
Share repurchase program | 377,516 | $ | 74.14 | 377,516 | $ | 227 | |||||||
Employee transactions | 1,850 | $ | 74.94 | N/A | N/A | ||||||||
November 2017 | |||||||||||||
Share repurchase program | 9,732 | $ | 74.63 | 9,732 | $ | 226 | |||||||
Employee transactions | 304 | $ | 72.40 | N/A | N/A | ||||||||
December 2017 | |||||||||||||
Share repurchase program | 1,100 | $ | 74.97 | 1,100 | $ | 226 | |||||||
Employee transactions | 70,763 | $ | 78.69 | N/A | N/A | ||||||||
Total Quarter Ended December 31, 2017 | |||||||||||||
Share repurchase program | 388,348 | $ | 74.15 | 388,348 | $ | 226 | |||||||
Employee transactions | 72,917 | $ | 78.57 | N/A | N/A |
Peer Group | |||||||||||||||||
• | ASX Limited | • | Deutsche Börse AG | • | LSE | ||||||||||||
• | B3 S.A. | • | Euronext N.V. | • | Singapore Exchange Limited | ||||||||||||
• | Bolsas Mexicana de Valores, S.A.B. de C.V. | • | Hong Kong Exchanges and Clearing Limited | • | TMX Group Limited | ||||||||||||
• | Cboe | • | ICE | ||||||||||||||
• | CME Group Inc. | • | Japan Exchange Group, Inc. |
Fiscal Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||
Nasdaq, Inc. | $ | 100 | $ | 108 | $ | 145 | $ | 183 | $ | 293 | $ | 260 | |||||||||||||||||||||||
Nasdaq Composite Index | 100 | 97 | 133 | 192 | 235 | 159 | |||||||||||||||||||||||||||||
S&P 500 | 100 | 96 | 126 | 149 | 192 | 157 | |||||||||||||||||||||||||||||
Peer Group | 100 | 112 | 149 | 186 | 208 | 184 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||
Nasdaq, Inc. | $ | 100.00 | $ | 161.79 | $ | 197.73 | $ | 244.01 | $ | 286.68 | $ | 334.72 | |||||||||||
Nasdaq Composite | 100.00 | 141.63 | 162.09 | 173.33 | 187.19 | 242.29 | |||||||||||||||||
S&P 500 | 100.00 | 132.39 | 150.51 | 152.59 | 170.84 | 208.14 | |||||||||||||||||
Peer Group | 100.00 | 153.73 | 164.34 | 185.98 | 212.88 | 287.34 |
Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in millions, except share and per share amounts) | ||||||||||||||||||||
Statements of Income Data: | ||||||||||||||||||||
Total revenues | $ | 3,965 | $ | 3,705 | $ | 3,403 | $ | 3,500 | $ | 3,211 | ||||||||||
Transaction-based expenses | (1,537 | ) | (1,428 | ) | (1,313 | ) | (1,433 | ) | (1,316 | ) | ||||||||||
Revenues less transaction-based expenses | 2,428 | 2,277 | 2,090 | 2,067 | 1,895 | |||||||||||||||
Total operating expenses | 1,429 | 1,438 | 1,370 | 1,313 | 1,207 | |||||||||||||||
Operating income | 999 | 839 | 720 | 754 | 688 | |||||||||||||||
Net income attributable to Nasdaq | 734 | 108 | 428 | 414 | 385 | |||||||||||||||
Per share information: | ||||||||||||||||||||
Basic earnings per share | $ | 4.41 | $ | 0.65 | $ | 2.56 | $ | 2.45 | $ | 2.30 | ||||||||||
Diluted earnings per share | $ | 4.33 | $ | 0.64 | $ | 2.50 | $ | 2.39 | $ | 2.25 | ||||||||||
Cash dividends declared per common share | $ | 1.46 | $ | 1.21 | $ | 0.90 | $ | 0.58 | $ | 0.52 | ||||||||||
Weighted-average common shares outstanding for earnings per share: | ||||||||||||||||||||
Basic | 166,364,299 | 165,182,290 | 167,285,450 | 168,926,733 | 166,932,103 | |||||||||||||||
Diluted | 169,585,031 | 168,800,997 | 171,283,271 | 173,018,849 | 171,266,146 |
December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Balance Sheets Data: | ||||||||||||||||||||
Cash and cash equivalents and financial investments | $ | 612 | $ | 648 | $ | 502 | $ | 601 | $ | 587 | ||||||||||
Total assets | 15,786 | 14,150 | 11,861 | 12,071 | 12,563 | |||||||||||||||
Total long-term liabilities | 4,637 | 4,638 | 3,332 | 3,297 | 3,579 | |||||||||||||||
Total Nasdaq stockholders' equity | 5,887 | 5,430 | 5,609 | 5,794 | 6,184 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Market Services | ||||||||||||
Equity Derivative Trading and Clearing | ||||||||||||
U.S. equity options | ||||||||||||
Total industry average daily volume (in millions) | 14.7 | 14.4 | 14.8 | |||||||||
Nasdaq PHLX matched market share | 17.3 | % | 16.0 | % | 16.7 | % | ||||||
The Nasdaq Options Market matched market share | 9.2 | % | 7.8 | % | 7.7 | % | ||||||
Nasdaq BX Options matched market share | 0.7 | % | 0.8 | % | 0.8 | % | ||||||
Nasdaq ISE Options matched market share(1) | 9.1 | % | 5.8 | % | — | % | ||||||
Nasdaq GEMX Options matched market share(1) | 5.2 | % | 1.1 | % | — | % | ||||||
Nasdaq MRX Options matched market share(1) | 0.1 | % | 0.1 | % | — | % | ||||||
Total matched market share executed on Nasdaq’s exchanges | 41.6 | % | 31.6 | % | 25.2 | % | ||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | ||||||||||||
Total average daily volume of options and futures contracts(2) | 330,218 | 376,730 | 380,725 | |||||||||
Cash Equity Trading | ||||||||||||
Total U.S.-listed securities | ||||||||||||
Total industry average daily share volume (in billions) | 6.53 | 7.35 | 6.91 | |||||||||
Matched share volume (in billions) | 295.9 | 321.6 | 327.7 | |||||||||
The Nasdaq Stock Market matched market share | 14.2 | % | 14.0 | % | 15.8 | % | ||||||
Nasdaq BX matched market share | 3.1 | % | 2.4 | % | 2.0 | % | ||||||
Nasdaq PSX matched market share | 0.8 | % | 1.0 | % | 1.0 | % | ||||||
Total matched market share executed on Nasdaq’s exchanges | 18.1 | % | 17.4 | % | 18.8 | % | ||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 34.5 | % | 33.1 | % | 31.8 | % | ||||||
Total market share(3) | 52.6 | % | 50.5 | % | 50.6 | % | ||||||
Nasdaq Nordic and Nasdaq Baltic securities | ||||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 552,104 | 472,428 | 438,864 | |||||||||
Total average daily value of shares traded (in billions) | $ | 5.3 | $ | 5.1 | $ | 5.1 | ||||||
Total market share executed on Nasdaq’s exchanges | 67.5 | % | 62.5 | % | 68.0 | % | ||||||
FICC | ||||||||||||
Fixed Income | ||||||||||||
U.S. fixed income notional trading volume (in billions) | $ | 17,800 | $ | 21,504 | $ | 29,234 | ||||||
Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts | 115,185 | 89,252 | 108,708 | |||||||||
Commodities | ||||||||||||
Power contracts cleared (TWh)(4) | 1,199 | 1,658 | 1,496 | |||||||||
Corporate Services | ||||||||||||
Initial public offerings | ||||||||||||
The Nasdaq Stock Market | 136 | 91 | 143 | |||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 88 | 62 | 78 | |||||||||
Total new listings | ||||||||||||
The Nasdaq Stock Market(5) | 268 | 283 | 274 | |||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(6) | 108 | 88 | 91 | |||||||||
Number of listed companies | ||||||||||||
The Nasdaq Stock Market(7) | 2,949 | 2,897 | 2,859 | |||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(8) | 984 | 900 | 852 | |||||||||
Information Services | ||||||||||||
Number of licensed ETPs | 324 | 298 | 222 | |||||||||
ETP assets under management tracking Nasdaq indexes (in billions) | $ | 167 | $ | 124 | $ | 114 | ||||||
Market Technology | ||||||||||||
Order intake (in millions)(9) | $ | 292 | $ | 276 | $ | 271 | ||||||
Total order value (in millions)(10) | $ | 847 | $ | 777 | $ | 788 |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||
Revenues less transaction-based expenses | $ | 2,428 | $ | 2,277 | $ | 2,090 | 6.6 | % | 8.9 | % | ||||||||
Operating expenses | 1,429 | 1,438 | 1,370 | (0.6 | )% | 5.0 | % | |||||||||||
Operating income | 999 | 839 | 720 | 19.1 | % | 16.5 | % | |||||||||||
Interest expense | (143 | ) | (135 | ) | (111 | ) | 5.9 | % | 21.6 | % | ||||||||
Asset impairment charge | — | (578 | ) | — | (100.0 | )% | N/M | |||||||||||
Income before income taxes | 880 | 136 | 630 | 547.1 | % | (78.4 | )% | |||||||||||
Income tax provision | 146 | 28 | 203 | 421.4 | % | (86.2 | )% | |||||||||||
Net income attributable to Nasdaq | $ | 734 | $ | 108 | $ | 428 | 579.6 | % | (74.8 | )% | ||||||||
Diluted earnings per share | $ | 4.33 | $ | 0.64 | $ | 2.50 | 576.6 | % | (74.4 | )% | ||||||||
Cash dividends declared per common share | $ | 1.46 | $ | 1.21 | $ | 0.90 | 20.7 | % | 34.4 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
Revenues less transaction-based expenses | $ | 3,582 | $ | 3,420 | $ | 2,903 | 4.7 | % | 17.8 | % | ||||||||||
Operating expenses | 2,018 | 1,979 | 1,669 | 2.0 | % | 18.6 | % | |||||||||||||
Operating income | 1,564 | 1,441 | 1,234 | 8.5 | % | 16.8 | % | |||||||||||||
Net income attributable to Nasdaq | $ | 1,125 | $ | 1,187 | $ | 933 | (5.2) | % | 27.2 | % | ||||||||||
Diluted earnings per share | $ | 2.26 | $ | 2.35 | $ | 1.86 | (3.8) | % | 26.3 | % | ||||||||||
Cash dividends declared per common share | $ | 0.78 | $ | 0.70 | $ | 0.65 | 11.4 | % | 7.7 | % |
▪ | Anti-Financial Crime support and SaaS subscription contracts | |||||||
▪ | Proprietary market data subscriptions and annual listing fees within our Data & Listing Services business, index data subscriptions and guaranteed minimum on futures contracts within our Index business and subscription contracts under our Workflow & Insights business. | |||||||
▪ | Market technology support and SaaS subscription contracts as well as trade management services contracts, excluding one-time service requests. |
Year Ended December 31, | Percentage Change | ||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | |||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Market Platforms | $ | 4,225 | $ | 4,048 | $ | 4,179 | 4.4 | % | (3.1) | % | |||||||||||||
Capital Access Platforms | 1,684 | 1,568 | 1,287 | 7.4 | % | 21.8 | % | ||||||||||||||||
Anti-Financial Crime | 306 | 231 | 116 | 32.5 | % | 99.1 | % | ||||||||||||||||
Other revenues | 11 | 39 | 43 | (71.8) | % | (9.3) | % | ||||||||||||||||
Total revenues | 6,226 | 5,886 | 5,625 | 5.8 | % | 4.6 | % | ||||||||||||||||
Transaction rebates | (2,092) | (2,168) | (2,028) | (3.5) | % | 6.9 | % | ||||||||||||||||
Brokerage, clearance and exchange fees | (552) | (298) | (694) | 85.2 | % | (57.1) | % | ||||||||||||||||
Total revenues less transaction-based expenses | $ | 3,582 | $ | 3,420 | $ | 2,903 | 4.7 | % | 17.8 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Market Services | $ | 2,418 | $ | 2,255 | $ | 2,084 | 7.2 | % | 8.2 | % | ||||||||
Transaction-based expenses | (1,537 | ) | (1,428 | ) | (1,313 | ) | 7.6 | % | 8.8 | % | ||||||||
Market Services revenues less transaction-based expenses | 881 | 827 | 771 | 6.5 | % | 7.3 | % | |||||||||||
Corporate Services | 656 | 635 | 562 | 3.3 | % | 13.0 | % | |||||||||||
Information Services | 588 | 540 | 512 | 8.9 | % | 5.5 | % | |||||||||||
Market Technology | 303 | 275 | 245 | 10.2 | % | 12.2 | % | |||||||||||
Total revenues less transaction-based expenses | $ | 2,428 | $ | 2,277 | $ | 2,090 | 6.6 | % | 8.9 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Trading Services | $ | 3,663 | $ | 3,503 | $ | 3,654 | 4.6 | % | (4.1) | % | ||||||||||
Marketplace Technology | 562 | 545 | 525 | 3.1 | % | 3.8 | % | |||||||||||||
Total Market Platforms | $ | 4,225 | $ | 4,048 | $ | 4,179 | 4.4 | % | (3.1) | % | ||||||||||
Transaction-based expenses: | ||||||||||||||||||||
Transaction rebates | (2,092) | (2,168) | (2,028) | (3.5) | % | 6.9 | % | |||||||||||||
Brokerage, clearance and exchange fees | (552) | (298) | (694) | 85.2 | % | (57.1) | % | |||||||||||||
Total Market Platforms, net | $ | 1,581 | $ | 1,582 | $ | 1,457 | (0.1) | % | 8.6 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
U.S. Equity Derivative Trading | $ | 371 | $ | 343 | $ | 287 | 8.2 | % | 19.5 | % | ||||||||||
Cash Equity Trading | 397 | 429 | 381 | (7.5) | % | 12.6 | % | |||||||||||||
U.S. Tape plans | 149 | 155 | 162 | (3.9) | % | (4.3) | % | |||||||||||||
Other | 102 | 110 | 102 | (7.3) | % | 7.8 | % | |||||||||||||
Trading Services, net | $ | 1,019 | $ | 1,037 | $ | 932 | (1.7) | % | 11.3 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Market Services Revenues: | ||||||||||||||||||
Equity Derivative Trading and Clearing Revenues(1) | $ | 752 | $ | 541 | $ | 432 | 39.0 | % | 25.2 | % | ||||||||
Transaction-based expenses: | ||||||||||||||||||
Transaction rebates | (450 | ) | (288 | ) | (223 | ) | 56.3 | % | 29.1 | % | ||||||||
Brokerage, clearance and exchange fees(1) | (43 | ) | (25 | ) | (21 | ) | 72.0 | % | 19.0 | % | ||||||||
Equity derivative trading and clearing revenues less transaction-based expenses | 259 | 228 | 188 | 13.6 | % | 21.3 | % | |||||||||||
Cash Equity Trading Revenues(2) | 1,279 | 1,349 | 1,315 | (5.2 | )% | 2.6 | % | |||||||||||
Transaction-based expenses: | ||||||||||||||||||
Transaction rebates | (692 | ) | (785 | ) | (756 | ) | (11.8 | )% | 3.8 | % | ||||||||
Brokerage, clearance and exchange fees(2) | (334 | ) | (309 | ) | (306 | ) | 8.1 | % | 1.0 | % | ||||||||
Cash equity trading revenues less transaction-based expenses | 253 | 255 | 253 | (0.8 | )% | 0.8 | % | |||||||||||
FICC Revenues | 96 | 99 | 98 | (3.0 | )% | 1.0 | % | |||||||||||
Transaction-based expenses: | ||||||||||||||||||
Transaction rebates | (16 | ) | (19 | ) | (4 | ) | (15.8 | )% | 375.0 | % | ||||||||
Brokerage, clearance and exchange fees | (2 | ) | (2 | ) | (3 | ) | — | % | (33.3 | )% | ||||||||
FICC revenues less transaction-based expenses | 78 | 78 | 91 | — | % | (14.3 | )% | |||||||||||
Trade Management Services Revenues | 291 | 266 | 239 | 9.4 | % | 11.3 | % | |||||||||||
Total Market Services revenues less transaction-based expenses | $ | 881 | $ | 827 | $ | 771 | 6.5 | % | 7.3 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
U.S. Equity Derivative Trading Revenues | $ | 1,252 | $ | 1,367 | $ | 1,122 | (8.4) | % | 21.8 | % | ||||||||||
Section 31 fees | 89 | 32 | 69 | 178.1 | % | (53.6) | % | |||||||||||||
Transaction-based expenses: | ||||||||||||||||||||
Transaction rebates | (878) | (1,018) | (828) | (13.8) | % | 22.9 | % | |||||||||||||
Section 31 fees | (89) | (32) | (69) | 178.1 | % | (53.6) | % | |||||||||||||
Brokerage and clearance fees | (3) | (6) | (7) | (50.0) | % | (14.3) | % | |||||||||||||
U.S. Equity derivative trading revenues, net | $ | 371 | $ | 343 | $ | 287 | 8.2 | % | 19.5 | % |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
U.S. equity options | |||||||||||||||||
Total industry average daily volume (in millions) | 38.2 | 37.2 | 27.7 | ||||||||||||||
Nasdaq PHLX matched market share | 11.6 | % | 12.4 | % | 12.7 | % | |||||||||||
The Nasdaq Options Market matched market share | 8.0 | % | 8.1 | % | 9.8 | % | |||||||||||
Nasdaq BX Options matched market share | 2.8 | % | 1.4 | % | 0.2 | % | |||||||||||
Nasdaq ISE Options matched market share | 5.7 | % | 6.6 | % | 7.8 | % | |||||||||||
Nasdaq GEMX Options matched market share | 2.3 | % | 4.3 | % | 5.6 | % | |||||||||||
Nasdaq MRX Options matched market share | 1.6 | % | 1.6 | % | 0.7 | % | |||||||||||
Total matched market share executed on Nasdaq’s exchanges | 32.0 | % | 34.4 | % | 36.8 | % | |||||||||||
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Cash Equity Trading Revenues | $ | 1,605 | $ | 1,578 | $ | 1,582 | 1.7 | % | (0.3) | % | ||||||||||
Section 31 fees | 436 | 229 | 586 | 90.4 | % | (60.9) | % | |||||||||||||
Transaction-based expenses: | ||||||||||||||||||||
Transaction rebates | (1,184) | (1,118) | (1,169) | 5.9 | % | (4.4) | % | |||||||||||||
Section 31 fees | (436) | (229) | (586) | 90.4 | % | (60.9) | % | |||||||||||||
Brokerage and clearance fees | (24) | (31) | (32) | (22.6) | % | (3.1) | % | |||||||||||||
Cash equity trading revenues, net | $ | 397 | $ | 429 | $ | 381 | (7.5) | % | 12.6 | % |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Total U.S.-listed securities | |||||||||||||||||
Total industry average daily share volume (in billions) | 11.9 | 11.4 | 10.9 | ||||||||||||||
Matched share volume (in billions) | 522.8 | 491.9 | 508.3 | ||||||||||||||
The Nasdaq Stock Market matched market share | 16.2 | % | 15.8 | % | 16.8 | % | |||||||||||
Nasdaq BX matched market share | 0.5 | % | 0.6 | % | 0.9 | % | |||||||||||
Nasdaq PSX matched market share | 0.8 | % | 0.7 | % | 0.6 | % | |||||||||||
Total matched market share executed on Nasdaq’s exchanges | 17.5 | % | 17.1 | % | 18.3 | % | |||||||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 35.2 | % | 34.9 | % | 31.8 | % | |||||||||||
Total market share | 52.7 | % | 52.0 | % | 50.1 | % | |||||||||||
Nasdaq Nordic and Nasdaq Baltic securities | |||||||||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 908,813 | 1,036,523 | 933,822 | ||||||||||||||
Total average daily value of shares traded (in billions) | $ | 5.4 | $ | 6.4 | $ | 5.6 | |||||||||||
Total market share executed on Nasdaq’s exchanges | 71.5 | % | 76.9 | % | 78.1 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
U.S. Tape plans | $ | 149 | $ | 155 | $ | 162 | (3.9) | % | (4.3) | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Other | $ | 102 | $ | 110 | $ | 102 | (7.3) | % | 7.8 | % |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | |||||||||||||||||
Total average daily volume of options and futures contracts | 296,626 | 287,182 | 320,204 |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Marketplace Technology | $ | 562 | $ | 545 | $ | 525 | 3.1 | % | 3.8 | % |
As of or Three Months Ended December 31, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
ARR | $ | 503 | $ | 479 | $ | 468 | ||||||||||||||
Quarterly annualized SaaS revenues | 39 | 31 | 27 | |||||||||||||||||
Order intake | $ | 264 | $ | 304 | $ | 167 |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Data & Listing Services | $ | 729 | $ | 680 | $ | 574 | 7.2 | % | 18.5 | % | ||||||||||
Index | 486 | 459 | 324 | 5.9 | % | 41.7 | % | |||||||||||||
Workflow & Insights | 469 | 429 | 389 | 9.3 | % | 10.3 | % | |||||||||||||
Total Capital Access Platforms | $ | 1,684 | $ | 1,568 | $ | 1,287 | 7.4 | % | 21.8 | % |
As of or Three Months Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
ARR | $ | 1,192 | $ | 1,113 | $ | 986 | |||||||||||
Quarterly annualized SaaS revenues | $ | 388 | $ | 356 | $ | 323 |
Year Ended December 31, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
IPOs | ||||||||||||||||||||
The Nasdaq Stock Market | 161 | 752 | 316 | |||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 38 | 174 | 45 | |||||||||||||||||
Total new listings | ||||||||||||||||||||
The Nasdaq Stock Market | 366 | 1,000 | 454 | |||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 63 | 207 | 67 | |||||||||||||||||
Number of listed companies | ||||||||||||||||||||
The Nasdaq Stock Market | 4,230 | 4,178 | 3,392 | |||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 1,251 | 1,235 | 1,071 | |||||||||||||||||
As of or Three Months Ended December 31, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Number of licensed ETPs | 379 | 362 | 339 | |||||||||||||||||
TTM change in period end ETP AUM tracking Nasdaq indexes (in billions) | ||||||||||||||||||||
Beginning balance | $ | 424 | $ | 359 | $ | 233 | ||||||||||||||
Net (depreciation) appreciation | (142) | 83 | 80 | |||||||||||||||||
Net impact of ETP sponsor switches | (1) | (92) | — | |||||||||||||||||
Net inflows | 34 | 74 | 46 | |||||||||||||||||
Ending balance | $ | 315 | $ | 424 | $ | 359 | ||||||||||||||
Quarterly average ETP AUM tracking Nasdaq indexes (in billions) | $ | 326 | $ | 400 | $ | 334 | ||||||||||||||
Quarterly annualized SaaS revenues (in millions) | $ | 220 | $ | 208 | $ | 179 |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Anti-Financial Crime | $ | 306 | $ | 231 | $ | 116 | 32.5 | % | 99.1 | % |
As of or Three Months Ended December 31, | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
ARR | $ | 312 | $ | 269 | $ | 111 | ||||||||||||||||||||
Signed ARR | 338 | 288 | — | |||||||||||||||||||||||
Quarterly annualized SaaS revenues | 298 | 253 | 97 |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Corporate Services: | ||||||||||||||||||
Corporate Solutions | $ | 386 | $ | 363 | $ | 298 | 6.3 | % | 21.8 | % | ||||||||
Listing Services | 270 | 272 | 264 | (0.7 | )% | 3.0 | % | |||||||||||
Total Corporate Services | $ | 656 | $ | 635 | $ | 562 | 3.3 | % | 13.0 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Information Services: | ||||||||||||||||||
Data Products | $ | 454 | $ | 427 | $ | 399 | 6.3 | % | 7.0 | % | ||||||||
Index Licensing and Services | 134 | 113 | 113 | 18.6 | % | — | % | |||||||||||
Total Information Services | $ | 588 | $ | 540 | $ | 512 | 8.9 | % | 5.5 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Market Technology | $ | 303 | $ | 275 | $ | 245 | 10.2 | % | 12.2 | % |
Total Order Value | |||
(in millions) | |||
Fiscal year ended: | |||
2018 | $ | 263 | |
2019 | 204 | ||
2020 | 137 | ||
2021 | 102 | ||
2022 | 62 | ||
2023 and thereafter | 79 | ||
Total | $ | 847 |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Compensation and benefits | $ | 1,003 | $ | 938 | $ | 786 | 6.9 | % | 19.3 | % | ||||||||||
Professional and contract services | 140 | 144 | 137 | (2.8) | % | 5.1 | % | |||||||||||||
Computer operations and data communications | 207 | 186 | 151 | 11.3 | % | 23.2 | % | |||||||||||||
Occupancy | 104 | 109 | 107 | (4.6) | % | 1.9 | % | |||||||||||||
General, administrative and other | 125 | 85 | 142 | 47.1 | % | (40.1) | % | |||||||||||||
Marketing and advertising | 51 | 57 | 39 | (10.5) | % | 46.2 | % | |||||||||||||
Depreciation and amortization | 258 | 278 | 202 | (7.2) | % | 37.6 | % | |||||||||||||
Regulatory | 33 | 64 | 24 | (48.4) | % | 166.7 | % | |||||||||||||
Merger and strategic initiatives | 82 | 87 | 33 | (5.7) | % | 163.6 | % | |||||||||||||
Restructuring charges | 15 | 31 | 48 | (51.6) | % | (35.4) | % | |||||||||||||
Total operating expenses | $ | 2,018 | $ | 1,979 | $ | 1,669 | 2.0 | % | 18.6 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Compensation and benefits | $ | 675 | $ | 664 | $ | 590 | 1.7 | % | 12.5 | % | ||||||||
Professional and contract services | 156 | 153 | 148 | 2.0 | % | 3.4 | % | |||||||||||
Computer operations and data communications | 125 | 111 | 107 | 12.6 | % | 3.7 | % | |||||||||||
Occupancy | 95 | 86 | 85 | 10.5 | % | 1.2 | % | |||||||||||
General, administrative and other | 82 | 72 | 65 | 13.9 | % | 10.8 | % | |||||||||||
Marketing and advertising | 31 | 30 | 28 | 3.3 | % | 7.1 | % | |||||||||||
Depreciation and amortization | 188 | 170 | 138 | 10.6 | % | 23.2 | % | |||||||||||
Regulatory | 33 | 35 | 27 | (5.7 | )% | 29.6 | % | |||||||||||
Merger and strategic initiatives | 44 | 76 | 10 | (42.1 | )% | 660.0 | % | |||||||||||
Restructuring charges | — | 41 | 172 | (100.0 | )% | (76.2 | )% | |||||||||||
Total operating expenses | $ | 1,429 | $ | 1,438 | $ | 1,370 | (0.6 | )% | 5.0 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Interest income | $ | 7 | $ | 5 | $ | 4 | 40.0 | % | 25.0 | % | ||||||||
Interest expense | (143 | ) | (135 | ) | (111 | ) | 5.9 | % | 21.6 | % | ||||||||
Net interest expense | (136 | ) | (130 | ) | (107 | ) | 4.6 | % | 21.5 | % | ||||||||
Asset impairment charge | — | (578 | ) | — | (100.0 | )% | N/M | |||||||||||
Other investment income | 2 | 3 | — | (33.3 | )% | N/M | ||||||||||||
Net income from unconsolidated investees | 15 | 2 | 17 | 650.0 | % | (88.2 | )% | |||||||||||
Total non-operating expenses | $ | (119 | ) | $ | (703 | ) | $ | (90 | ) | (83.1 | )% | 681.1 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Interest income | $ | 7 | $ | 1 | $ | 4 | 600.0 | % | (75.0) | % | ||||||||||
Interest expense | (129) | (125) | (101) | 3.2 | % | 23.8 | % | |||||||||||||
Net interest expense | (122) | (124) | (97) | (1.6) | % | 27.8 | % | |||||||||||||
Net gain on divestiture of business | — | 84 | — | (100.0) | % | N/M | ||||||||||||||
Other income | 2 | 81 | 5 | (97.5) | % | 1,520.0 | % | |||||||||||||
Net income from unconsolidated investees | 31 | 52 | 70 | (40.4) | % | (25.7) | % | |||||||||||||
Total non-operating income (expenses) | $ | (89) | $ | 93 | $ | (22) | (195.7) | % | (522.7) | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Interest expense on debt | $ | 120 | $ | 115 | $ | 93 | 4.3 | % | 23.7 | % | ||||||||||||||||
Accretion of debt issuance costs and debt discount | 7 | 7 | 6 | — | % | 16.7 | % | |||||||||||||||||||
Other fees | 2 | 3 | 2 | (33.3) | % | 50.0 | % | |||||||||||||||||||
Interest expense | $ | 129 | $ | 125 | $ | 101 | 3.2 | % | 23.8 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Interest expense on debt | $ | 135 | $ | 129 | $ | 106 | 4.7 | % | 21.7 | % | ||||||||
Accretion of debt issuance costs and debt discount | 6 | 5 | 4 | 20.0 | % | 25.0 | % | |||||||||||
Other bank and investment-related fees | 2 | 1 | 1 | 100.0 | % | — | % | |||||||||||
Interest expense | $ | 143 | $ | 135 | $ | 111 | 5.9 | % | 21.6 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
($ in millions) | ||||||||||||||||||
Income tax provision | $ | 146 | $ | 28 | $ | 203 | 421.4 | % | (86.2 | )% | ||||||||
Effective tax rate | 16.6 | % | 20.6 | % | 32.2 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2022 | 2021 | 2020 | 2022 vs. 2021 | 2021 vs. 2020 | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Income tax provision | $ | 352 | $ | 347 | $ | 279 | 1.4 | % | 24.4 | % | ||||||||||
Effective tax rate | 23.9 | % | 22.6 | % | 23.0 | % |
Year Ended December 31, | |||||||||||
2022 | 2021 | 2020 | |||||||||
(in millions, except per share amounts) | |||||||||||
U.S. GAAP net income attributable to Nasdaq | $ | 1,125 | $ | 1,187 | $ | 933 | |||||
Non-GAAP adjustments: | |||||||||||
Amortization expense of acquired intangible assets | 153 | 170 | 103 | ||||||||
Merger and strategic initiatives expense | 82 | 87 | 33 | ||||||||
Restructuring charges | 15 | 31 | 48 | ||||||||
Net income from unconsolidated investee | (29) | (52) | (70) | ||||||||
Regulatory matters | 1 | 33 | (6) | ||||||||
Provision for notes receivable | — | — | 6 | ||||||||
Extinguishment of debt | 16 | 33 | 36 | ||||||||
Net gain on divestiture of business | — | (84) | — | ||||||||
Charitable donations | — | — | 17 | ||||||||
Other | 27 | (71) | 14 | ||||||||
Total non-GAAP adjustments | 265 | 147 | 181 | ||||||||
Total non-GAAP tax adjustments | (66) | (61) | (83) | ||||||||
Total non-GAAP adjustments, net of tax | 199 | 86 | 98 | ||||||||
Non-GAAP net income attributable to Nasdaq | $ | 1,324 | $ | 1,273 | $ | 1,031 | |||||
U.S. GAAP effective tax rate | 23.9 | % | 22.6 | % | 23.0 | % | |||||
Total adjustments from non-GAAP tax rate | 0.1 | % | 1.7 | % | 3.0 | % | |||||
Non-GAAP effective tax rate | 24.0 | % | 24.3 | % | 26.0 | % | |||||
Weighted-average common shares outstanding for diluted earnings per share | 497.9 | 505.1 | 500.7 | ||||||||
U.S. GAAP diluted earnings per share | $ | 2.26 | $ | 2.35 | $ | 1.86 | |||||
Total adjustments from non-GAAP net income | 0.40 | 0.17 | 0.20 | ||||||||
Non-GAAP diluted earnings per share | $ | 2.66 | $ | 2.52 | $ | 2.06 |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | ||||||||||||||||||||||
Net Income | Diluted Earnings Per Share | Net Income | Diluted Earnings Per Share | Net Income | Diluted Earnings Per Share | |||||||||||||||||||
(in millions, except share and per share amounts) | ||||||||||||||||||||||||
U.S. GAAP net income attributable to Nasdaq and diluted earnings per share | $ | 734 | $ | 4.33 | $ | 108 | $ | 0.64 | $ | 428 | $ | 2.50 | ||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||
Amortization expense of acquired intangible assets | 92 | 0.54 | 82 | 0.49 | 62 | 0.36 | ||||||||||||||||||
Merger and strategic initiatives | 44 | 0.26 | 76 | 0.45 | 10 | 0.06 | ||||||||||||||||||
Extinguishment of debt | 10 | 0.06 | — | — | — | — | ||||||||||||||||||
Restructuring charges | — | — | 41 | 0.24 | 172 | 1.00 | ||||||||||||||||||
Asset impairment charge | — | — | 578 | 3.42 | — | — | ||||||||||||||||||
Executive compensation | — | — | 12 | 0.07 | — | — | ||||||||||||||||||
Regulatory matter | 1 | 0.01 | 6 | 0.04 | — | — | ||||||||||||||||||
Income from OCC equity investment | — | — | — | — | (13 | ) | (0.08 | ) | ||||||||||||||||
Reversal VAT refund | — | — | — | — | 12 | 0.07 | ||||||||||||||||||
Sublease loss reserve | 2 | 0.01 | (1 | ) | (0.01 | ) | — | — | ||||||||||||||||
Other | 2 | 0.01 | 6 | 0.04 | — | — | ||||||||||||||||||
Adjustment to the income tax provision to reflect non-GAAP adjustments and other tax items | (70 | ) | (0.41 | ) | (287 | ) | (1.70 | ) | (90 | ) | (0.52 | ) | ||||||||||||
Impact of newly enacted U.S. tax legislation | (87 | ) | (0.51 | ) | — | — | — | — | ||||||||||||||||
Excess tax benefits related to employee share-based compensation | (40 | ) | (0.24 | ) | — | — | — | — | ||||||||||||||||
Total non-GAAP adjustments, net of tax | (46 | ) | (0.27 | ) | 513 | 3.04 | 153 | 0.89 | ||||||||||||||||
Non-GAAP net income attributable to Nasdaq and diluted earnings per share | $ | 688 | $ | 4.06 | $ | 621 | $ | 3.68 | $ | 581 | $ | 3.39 | ||||||||||||
Weighted-average common shares outstanding for diluted earnings per share | 169,585,031 | 168,800,997 | 171,283,271 |
December 31, 2022 | December 31, 2021 | |||||||||||||
(in millions) | ||||||||||||||
Cash and cash equivalents | $ | 502 | $ | 393 | ||||||||||
Financial investments | 181 | 208 | ||||||||||||
Total financial assets | $ | 683 | $ | 601 |
December 31, 2017 | December 31, 2016 | |||||||
(in millions) | ||||||||
Cash and cash equivalents | $ | 377 | $ | 403 | ||||
Restricted cash | 22 | 15 | ||||||
Financial investments, at fair value | 235 | 245 | ||||||
Total financial assets | $ | 634 | $ | 663 |
Year Ended December 31, | ||||||||||||||
2022 | 2021 | 2020 | ||||||||||||
Net cash provided by (used in): | (in millions) | |||||||||||||
Operating activities | $ | 1,706 | $ | 1,083 | $ | 1,252 | ||||||||
Investing activities | 49 | (2,653) | (122) | |||||||||||
Financing activities | 1,036 | 1,418 | 1,910 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (1,293) | (331) | 353 | |||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 1,498 | (483) | 3,393 | |||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | 5,496 | 5,979 | 2,586 | |||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | 6,994 | $ | 5,496 | $ | 5,979 | ||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | ||||||||||||||
Cash and cash equivalents | $ | 502 | $ | 393 | $ | 2,745 | ||||||||
Restricted cash and cash equivalents | 22 | 29 | 37 | |||||||||||
Restricted cash and cash equivalents (default funds and margin deposits) | 6,470 | 5,074 | 3,197 | |||||||||||
Total | $ | 6,994 | $ | 5,496 | $ | 5,979 |
2017 | 2016 | ||||||
First quarter | $ | 0.32 | $ | 0.25 | |||
Second quarter | 0.38 | 0.32 | |||||
Third quarter | 0.38 | 0.32 | |||||
Fourth quarter | 0.38 | 0.32 | |||||
Total | $ | 1.46 | $ | 1.21 |
Maturity Date | December 31, 2017 | December 31, 2016 | ||||||||
(in millions) | ||||||||||
Short-term debt - commercial paper | Weighted-average maturity of 22 days | $ | 480 | $ | — | |||||
Long-term debt: | ||||||||||
5.25% senior unsecured notes | Repaid May 2017 | — | 369 | |||||||
Senior unsecured floating rate notes | March 2019 | 498 | — | |||||||
$400 million senior unsecured term loan facility | November 2019 | 100 | 399 | |||||||
5.55% senior unsecured notes | January 2020 | 599 | 598 | |||||||
3.875% senior unsecured notes | June 2021 | 716 | 625 | |||||||
$1 billion revolving credit commitment | April 2022 | 110 | — | |||||||
1.75% senior unsecured notes | May 2023 | 712 | 622 | |||||||
4.25% senior unsecured notes | June 2024 | 496 | 495 | |||||||
3.85% senior unsecured notes | June 2026 | 496 | 495 | |||||||
Total long-term debt | 3,727 | 3,603 | ||||||||
Total debt obligations | $ | 4,207 | $ | 3,603 |
Broker-Dealer Subsidiaries | Total Net Capital | Required Minimum Net Capital | Excess Capital | |||||||||
(in millions) | ||||||||||||
Nasdaq Execution Services | $ | 7.3 | $ | 0.3 | $ | 7.0 | ||||||
Execution Access | 47.7 | 0.4 | 47.3 | |||||||||
NPM Securities | 0.2 | — | 0.2 | |||||||||
SMTX | 1.5 | 0.3 | 1.2 | |||||||||
Nasdaq Capital Markets Advisory | 0.5 | 0.3 | 0.2 |
Year Ended December 31, | Percentage Change | |||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||
(in millions) | ||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||
Operating activities | $ | 909 | $ | 776 | $ | 727 | 17.1 | % | 6.7 | % | ||||||||
Investing activities | (890 | ) | (1,657 | ) | (435 | ) | (46.3 | )% | 280.9 | % | ||||||||
Financing activities | (53 | ) | 948 | (400 | ) | (105.6 | )% | (337.0 | )% | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 15 | (6 | ) | (11 | ) | (350.0 | )% | (45.5 | )% | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (19 | ) | 61 | (119 | ) | (131.1 | )% | (151.3 | )% | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | 418 | 357 | 476 | 17.1 | % | (25.0 | )% | |||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 399 | $ | 418 | $ | 357 | (4.5 | )% | 17.1 | % |
2022 | 2021 | ||||||||||
First quarter | $ | 0.18 | $ | 0.16 | |||||||
Second quarter | 0.20 | 0.18 | |||||||||
Third quarter | 0.20 | 0.18 | |||||||||
Fourth quarter | 0.20 | 0.18 | |||||||||
Total | $ | 0.78 | $ | 0.70 |
Maturity Date | December 31, 2022 | December 31, 2021 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Short-term debt: | ||||||||||||||||||||
Commercial paper | $ | 664 | $ | 420 | ||||||||||||||||
2022 Notes | December 2022 | — | 598 | |||||||||||||||||
2024 Notes | June 2024 | — | 499 | |||||||||||||||||
Total short-term debt | $ | 664 | $ | 1,517 | ||||||||||||||||
Long-term debt - senior unsecured notes: | ||||||||||||||||||||
2022 Credit Facility | December 2027 | (5) | (4) | |||||||||||||||||
2026 Notes | June 2026 | 498 | 498 | |||||||||||||||||
2029 Notes | March 2029 | 637 | 676 | |||||||||||||||||
2030 Notes | February 2030 | 637 | 676 | |||||||||||||||||
2031 Notes | January 2031 | 644 | 643 | |||||||||||||||||
2033 Notes | July 2033 | 653 | 694 | |||||||||||||||||
2040 Notes | December 2040 | 644 | 644 | |||||||||||||||||
2050 Notes | April 2050 | 486 | 486 | |||||||||||||||||
2052 Notes | March 2052 | 541 | — | |||||||||||||||||
Total long-term debt | $ | 4,735 | $ | 4,313 | ||||||||||||||||
Total debt obligations | $ | 5,399 | $ | 5,830 |
Payments Due by Period | |||||||||||||||||
(in millions) | Total | <1 year | 1-3 years | 3-5 years | 5+ years | ||||||||||||
Debt obligation by contractual maturity | $ | 7,188 | $ | 765 | $ | 224 | $ | 685 | $ | 5,514 | |||||||
Operating lease obligations | 665 | 77 | 142 | 110 | 336 | ||||||||||||
Purchase obligations | 453 | 86 | 104 | 91 | 172 | ||||||||||||
Total | $ | 8,306 | $ | 928 | $ | 470 | $ | 886 | $ | 6,022 |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
(in millions) | ||||||||||||||||||||
Debt obligations by contract maturity(1) | $ | 4,844 | $ | 612 | $ | 1,324 | $ | 1,076 | $ | 1,832 | ||||||||||
Minimum rental commitments under non-cancelable operating leases, net(2) | 439 | 87 | 140 | 102 | 110 | |||||||||||||||
Other obligations(3) | 18 | 14 | 4 | — | — | |||||||||||||||
Total | $ | 5,301 | $ | 713 | $ | 1,468 | $ | 1,178 | $ | 1,942 |
Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2022 | Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.1273 | 0.1170 | # | N/A | N/A | Average foreign currency rate to the U.S. dollar | 1.054 | 0.099 | # | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 9.7 | % | 8.8 | % | 6.0 | % | 75.5 | % | 100.0 | % | Percentage of revenues less transaction-based expenses | 6.2 | % | 5.1 | % | 4.1 | % | 84.6 | % | 100.0 | % | |||||||||||||||||||||||||||||||
Percentage of operating income | 15.4 | % | 3.2 | % | (4.9 | )% | 86.3 | % | 100.0 | % | Percentage of operating income | 10.1 | % | (2.8) | % | (10.6) | % | 103.3 | % | 100.0 | % | |||||||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (24 | ) | $ | (21 | ) | $ | (14 | ) | $ | — | $ | (59 | ) | Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (22) | $ | (18) | $ | (15) | $ | — | $ | (55) | |||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $ | (15 | ) | $ | (3 | ) | $ | (5 | ) | $ | — | $ | (23 | ) | Impact of a 10% adverse currency fluctuation on operating income | $ | (16) | $ | (4) | $ | (17) | $ | — | $ | (37) | |||||||||||||||||||||||||||
Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | |||||||||||||||||||||||||||||||||||||||||||
(in millions, except currency rate) | (in millions, except currency rate) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2021 | Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.1064 | 0.1168 | # | N/A | N/A | Average foreign currency rate to the U.S. dollar | 1.183 | 0.117 | # | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 10.0 | % | 8.5 | % | 5.9 | % | 75.6 | % | 100.0 | % | Percentage of revenues less transaction-based expenses | 7.1 | % | 6.2 | % | 4.9 | % | 81.8 | % | 100.0 | % | |||||||||||||||||||||||||||||||
Percentage of operating income | 18.3 | % | 1.0 | % | (5.9 | )% | 86.6 | % | 100.0 | % | Percentage of operating income | 10.4 | % | (4.6) | % | (9.1) | % | 103.3 | % | 100.0 | % | |||||||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (23 | ) | $ | (19 | ) | $ | (14 | ) | $ | — | $ | (56 | ) | Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (24) | $ | (21) | $ | (17) | $ | — | $ | (62) | |||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $ | (15 | ) | $ | (1 | ) | $ | (5 | ) | $ | — | $ | (21 | ) | Impact of a 10% adverse currency fluctuation on operating income | $ | (15) | $ | (7) | $ | (13) | $ | — | $ | (35) |
Net Assets | Impact of a 10% Adverse Currency Fluctuation | |||||||||||||
(in millions) | ||||||||||||||
Swedish Krona | $ | 2,941 | $ | 294 | ||||||||||
British Pound | 155 | 15 | ||||||||||||
Norwegian Krone | 150 | 15 | ||||||||||||
Canadian Dollar | 107 | 11 | ||||||||||||
Australian Dollar | 99 | 10 | ||||||||||||
Euro | 53 | 5 |
Net Assets | Impact of a 10% Adverse Currency Fluctuation | |||||||
(in millions) | ||||||||
Swedish Krona(1) | $ | 3,541 | $ | (354 | ) | |||
Norwegian Krone | 200 | (20 | ) | |||||
Canadian Dollar | 193 | (19 | ) | |||||
British Pound | 202 | (20 | ) | |||||
Euro | 144 | (14 | ) | |||||
Australian Dollar | 104 | (10 | ) |
October 1, 2017 | |||
(in millions) | |||
Market Services | $ | 3,560 | |
Corporate Services | 491 | ||
Information Services | 1,915 | ||
Market Technology | 188 | ||
$ | 6,154 |
October 1, 2022 | |||||
(in millions) | |||||
Market Technology | $ | 2,122 | |||
Investment Intelligence | 2,256 | ||||
Corporate Platforms | 471 | ||||
Market Services | 3,097 | ||||
$ | 7,946 |
October 1, 2022 | |||||
(in millions) | |||||
Market Platforms | $ | 2,819 | |||
Capital Access Platforms | 4,122 | ||||
Anti-Financial Crime | 1,005 | ||||
$ | 7,946 |
1st Qtr 2017 | 2nd Qtr 2017 | 3rd Qtr 2017 | 4th Qtr 2017 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Total revenues | $ | 971 | $ | 1,000 | $ | 969 | $ | 1,024 | ||||||||
Transaction-based expenses | (388 | ) | (398 | ) | (362 | ) | (389 | ) | ||||||||
Revenues less transaction-based expenses | 583 | 602 | 607 | 635 | ||||||||||||
Total operating expenses | 335 | 358 | 343 | 392 | ||||||||||||
Operating income | 248 | 244 | 264 | 243 | ||||||||||||
Net income attributable to Nasdaq | $ | 169 | $ | 147 | $ | 171 | $ | 246 | ||||||||
Basic earnings per share | $ | 1.02 | $ | 0.89 | $ | 1.03 | $ | 1.47 | ||||||||
Diluted earnings per share | $ | 0.99 | $ | 0.87 | $ | 1.01 | $ | 1.45 | ||||||||
Cash dividends declared per common share | $ | 0.32 | $ | 0.38 | $ | 0.38 | $ | 0.38 | ||||||||
1st Qtr 2016 | 2nd Qtr 2016 | 3rd Qtr 2016 | 4th Qtr 2016 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Total revenues | $ | 905 | $ | 897 | $ | 929 | $ | 973 | ||||||||
Transaction-based expenses | (371 | ) | (338 | ) | (344 | ) | (374 | ) | ||||||||
Revenues less transaction-based expenses | 534 | 559 | 585 | 599 | ||||||||||||
Total operating expenses | 315 | 385 | 352 | 386 | ||||||||||||
Operating income | 219 | 174 | 233 | 213 | ||||||||||||
Net income (loss) attributable to Nasdaq | $ | 132 | $ | 70 | $ | 131 | $ | (224 | ) | |||||||
Basic earnings (loss) per share | $ | 0.80 | $ | 0.42 | $ | 0.79 | $ | (1.35 | ) | |||||||
Diluted earnings (loss) per share | $ | 0.78 | $ | 0.42 | $ | 0.77 | $ | (1.35 | ) | |||||||
Cash dividends declared per common share | $ | 0.57 | $ | — | $ | 0.32 | $ | 0.32 |
Plan Category | Number of shares to be issued upon exercise of outstanding options, warrants and rights(a) | Weighted-average exercise price of outstanding options, warrants and rights(b) | Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in column(a))(c) | |||||||||||||||||
Equity compensation plans approved by stockholders | 1,420,323 | $ | 41.79 | 38,534,312 | ||||||||||||||||
Equity compensation plans not approved by stockholders | — | — | — | |||||||||||||||||
Total | 1,420,323 | $ | 41.79 | 38,534,312 |
Plan Category | Number of shares to be issued upon exercise of outstanding options, warrants and rights(a)(1) | Weighted-average exercise price of outstanding options, warrants and rights(b) | Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in column(a))(c) | ||||||||
Equity compensation plans approved by stockholders | 571,380 | $ | 43.84 | 7,891,426 | (2) | ||||||
Equity compensation plans not approved by stockholders | — | $ | — | — | |||||||
Total | 571,380 | $ | 43.84 | 7,891,426 | (2) |
Exhibit Number | ||||||||
Share Purchase Agreement, dated as of November 18, 2020, by and among Osprey Acquisition Corporation, a wholly owned subsidiary of Nasdaq, Verafin Holdings Inc., certain shareholders of Verafin (the “Sellers”), and Shareholder Representative Services LLC, solely in its capacity as the representative of the Sellers (incorporated herein by reference to Exhibit 2.2 to the Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 23, 2021).† | ||||||||
Amendment to Share Purchase Agreement, dated as of | ||||||||
Amended and Restated Certificate of Incorporation of Nasdaq (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on January 28, 2014). | ||||||||
Certificate of Elimination of Nasdaq’s Series A Convertible Preferred Stock (incorporated herein by reference to Exhibit 3.1.1 to the Current Report on Form 8-K filed on January 28, 2014). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on November 19, 2014). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on September 8, 2015). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on July 20, 2022). | ||||||||
Nasdaq’s By-Laws (incorporated herein by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on November 21, 2016). | ||||||||
Form of Common Stock certificate (incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 filed on November 4, 2015). | ||||||||
Stockholders’ Agreement, dated as of February 27, 2008, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Borse Dubai Limited (incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on March 3, 2008). | ||||||||
First Amendment to Stockholders’ Agreement, dated as of February 19, 2009, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Borse Dubai Limited (incorporated herein by reference to Exhibit 4.10.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009). | ||||||||
Registration Rights Agreement, dated as of February 27, 2008, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Borse Dubai Limited and Borse Dubai Nasdaq Share Trust (incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on March 3, 2008). | ||||||||
First Amendment to Registration Rights Agreement, dated as of February 19, 2009, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Borse Dubai Limited and Borse Dubai Nasdaq Share Trust (incorporated herein by reference to Exhibit 4.11.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009). | ||||||||
Stockholders’ Agreement, dated as of December 16, 2010, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Investor AB (incorporated herein by reference to Exhibit 4.12 to the Annual Report on Form 10-K for the year ended December 31, 2010 filed on February 24, 2011). | ||||||||
First Amendment to Nasdaq Stockholders’ Agreement, dated as of December 14, 2022, between Nasdaq, Inc. and Investor AB (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on December 16, 2022). | ||||||||
Indenture, dated as of June 7, 2013, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on June 10, 2013). | ||||||||
First Supplemental Indenture, dated as of June 7, 2013, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Wells Fargo Bank, National Association, as Trustee, Deutsche Bank AG, London Branch, as paying agent, and Deutsche Bank Luxembourg S.A., as registrar and transfer agent (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on June 10, 2013). | ||||||||
Second Supplemental Indenture, dated as of May 29, 2014, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on May 30, 2014). | ||||||||
Third Supplemental Indenture, dated as of May 20, 2016, among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee, and HSBC Bank USA, National Association, as paying agent and as registrar and transfer agent (incorporated herein by reference to the Current Report on Form 8-K filed on May 23, 2016). | ||||||||
Fifth Supplemental Indenture, dated as of September 22, 2017, among Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on September 22, 2017). | ||||||||
Seventh Supplemental Indenture, dated February 13, 2020, among Nasdaq, Inc., | ||||||||
Eighth Supplemental Indenture, dated April 28, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on | ||||||||
Ninth Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Tenth Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Eleventh Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.4 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Twelfth Supplemental Indenture, dated July 30, 2021, by and among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee and HSBC Bank USA, National Association, as registrar and transfer agent (incorporated by reference to Exhibit 4.2 to the Company’s 8-A filed on July 30, 2021). | ||||||||
Thirteenth Supplemental Indenture, dated as of March 7, 2022, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on March 7, 2022). | ||||||||
Description of Securities. | ||||||||
Amended and Restated Board Compensation Policy, effective on | ||||||||
Nasdaq Executive Corporate Incentive Plan, effective as of January 1, 2015 (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 11, 2015).* | ||||||||
Nasdaq, Inc. Equity Incentive Plan (as amended and restated as of April 24, 2018) (incorporated herein by reference to Exhibit 10.1 to the Form S-8 filed on May 25, 2018).* | ||||||||
Form of Nasdaq Non-Qualified Stock Option Award Certificate (incorporated herein by reference to Exhibit 10.3 to the Annual Report on Form 10-K for the year ended December 31, 2010 filed on February 24, 2011).* | ||||||||
Form of Nasdaq Restricted Stock Unit Award Certificate (employees) | ||||||||
Form of Nasdaq Restricted Stock Unit Award Certificate (directors) (incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq One-Year Performance Share Unit Agreement (incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 filed on August 5, 2019).* | ||||||||
Form of Nasdaq Three-Year Performance Share Unit Agreement (incorporated herein by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq Continuing Obligations Agreement (incorporated by reference to Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022). | ||||||||
Amended and Restated Supplemental Executive Retirement Plan, dated as of December 17, 2008 (incorporated herein by reference to Exhibit 10.6 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Amendment No. 1 to Amended and Restated Supplemental Executive Retirement Plan, effective as of December 31, 2008 (incorporated herein by reference to Exhibit 10.6.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Nasdaq Supplemental Employer Retirement Contribution Plan, dated as of December 17, 2008 (incorporated herein by reference to Exhibit 10.7 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Nonqualified Stock Option Award Certificate to Adena T. Friedman from Nasdaq, Inc. in connection with grant made on January 3, 2017 (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 filed on November 7, 2017).* | ||||||||
Employment | ||||||||
Nonqualified Stock Option Award Certificate to Adena T. Friedman from Nasdaq, Inc. in connection with grant made on January 3, 2022 (incorporated by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022).* | ||||||||
Employment Agreement by and between Nasdaq, Inc. and | ||||||||
Employment Offer Letter by and between Nasdaq, Inc. and Michelle Daly (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 3, 2021).* | ||||||||
Nasdaq Change in Control Severance Plan for Executive Vice Presidents and Senior Vice Presidents, effective November 26, 2013, as amended December 6, 2022.* | ||||||||
Credit Agreement, dated as of December 21, 2020, among Nasdaq, Inc., the various lenders from time to time party thereto and, Bank of America, N.A., as administrative agent and issuing bank (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on | ||||||||
Amended and Restated Credit Agreement, dated | ||||||||
Form of Commercial Paper Dealer Agreement between Nasdaq, Inc., as Issuer, and the Dealer party thereto (incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on April 26, 2017). | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan* | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan Award Agreement, by and between Verafin Solutions ULC and Brendan Brothers, dated as of January 11, 2023* | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan Award Agreement, by and between Verafin Solutions ULC and Jamie King, dated as of October 18, 2022* | ||||||||
Statement regarding computation of per share earnings (incorporated herein by reference from Note | ||||||||
List of all subsidiaries. | ||||||||
Consent of Ernst & Young LLP. | ||||||||
Powers of Attorney. | ||||||||
Certification of | ||||||||
Certification of Executive Vice President | ||||||||
Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley. | ||||||||
101 | ||||||||
The following materials from the Nasdaq, Inc. Annual Report on Form 10-K for the year ended December 31, |
Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101. |
Plan Category | Number of shares to be issued upon exercise of outstanding options, warrants and rights(a) | Weighted-average exercise price of outstanding options, warrants and rights(b) | Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in column(a))(c) | |||||||||||||||||
Equity compensation plans approved by stockholders | 1,420,323 | $ | 41.79 | 38,534,312 | ||||||||||||||||
Equity compensation plans not approved by stockholders | — | — | — | |||||||||||||||||
Total | 1,420,323 | $ | 41.79 | 38,534,312 |
Exhibit Number | ||||||||
Share Purchase Agreement, dated as of November 18, 2020, by and among Osprey Acquisition Corporation, a wholly owned subsidiary of Nasdaq, Verafin Holdings Inc., certain shareholders of Verafin (the “Sellers”), and Shareholder Representative Services LLC, solely in its capacity as the representative of the Sellers (incorporated herein by reference to Exhibit 2.2 to the Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 23, 2021).† | ||||||||
Amendment to Share Purchase Agreement, dated as of February 11, 2021, by and among Osprey Acquisition Corporation, a wholly owned subsidiary of Nasdaq, Verafin Holdings Inc., certain shareholders of Verafin (the “Sellers”), and Shareholder Representative Services LLC, solely in its capacity as the representative of the Sellers (incorporated herein by reference to Exhibit 2.3 to the Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 23, 2021). | ||||||||
Amended and Restated Certificate of Incorporation of Nasdaq (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on January 28, 2014). | ||||||||
Certificate of Elimination of Nasdaq’s Series A Convertible Preferred Stock (incorporated herein by reference to Exhibit 3.1.1 to the Current Report on Form 8-K filed on January 28, 2014). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on November 19, 2014). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on September 8, 2015). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on July 20, 2022). | ||||||||
Nasdaq’s By-Laws (incorporated herein by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on November 21, 2016). | ||||||||
Form of Common Stock certificate (incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 filed on November 4, 2015). | ||||||||
Stockholders’ Agreement, dated as of February 27, 2008, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Borse Dubai Limited (incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on March 3, 2008). | ||||||||
First Amendment to Stockholders’ Agreement, dated as of February 19, 2009, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Borse Dubai Limited (incorporated herein by reference to Exhibit 4.10.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009). | ||||||||
Registration Rights Agreement, dated as of February 27, 2008, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Borse Dubai Limited and Borse Dubai Nasdaq Share Trust (incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on March 3, 2008). | ||||||||
First Amendment to Registration Rights Agreement, dated as of February 19, 2009, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Borse Dubai Limited and Borse Dubai Nasdaq Share Trust (incorporated herein by reference to Exhibit 4.11.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009). | ||||||||
Stockholders’ Agreement, dated as of December 16, 2010, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Investor AB (incorporated herein by reference to Exhibit 4.12 to the Annual Report on Form 10-K for the year ended December 31, 2010 filed on February 24, 2011). | ||||||||
First Amendment to Nasdaq Stockholders’ Agreement, dated as of December 14, 2022, between Nasdaq, Inc. and Investor AB (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on December 16, 2022). | ||||||||
Indenture, dated as of June 7, 2013, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on June 10, 2013). | ||||||||
First Supplemental Indenture, dated as of June 7, 2013, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Wells Fargo Bank, National Association, as Trustee, Deutsche Bank AG, London Branch, as paying agent, and Deutsche Bank Luxembourg S.A., as registrar and transfer agent (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on June 10, 2013). | ||||||||
Second Supplemental Indenture, dated as of May 29, 2014, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on May 30, 2014). | ||||||||
Third Supplemental Indenture, dated as of May 20, 2016, among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee, and HSBC Bank USA, National Association, as paying agent and as registrar and transfer agent (incorporated herein by reference to the Current Report on Form 8-K filed on May 23, 2016). | ||||||||
Fifth Supplemental Indenture, dated as of September 22, 2017, among Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on September 22, 2017). | ||||||||
Sixth Supplemental Indenture, dated as of April 1, 2019, among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee, and HSBC Bank USA, National Association, as paying agent and as registrar and transfer agent (incorporated by reference to Exhibit 4.2 to the Form 8-A filed on April 1, 2019). | ||||||||
Seventh Supplemental Indenture, dated February 13, 2020, among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee, and HSBC Bank USA, National Association, as paying agent and as registrar and transfer agent (incorporated herein by reference to Exhibit 4.2 to the Company’s Form 8-A filed on February 13, 2020). | ||||||||
Eighth Supplemental Indenture, dated April 28, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on April 28, 2020). | ||||||||
Ninth Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Tenth Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Eleventh Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.4 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Twelfth Supplemental Indenture, dated July 30, 2021, by and among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee and HSBC Bank USA, National Association, as registrar and transfer agent (incorporated by reference to Exhibit 4.2 to the Company’s 8-A filed on July 30, 2021). | ||||||||
Thirteenth Supplemental Indenture, dated as of March 7, 2022, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on March 7, 2022). | ||||||||
Description of Securities. | ||||||||
Amended and Restated Board Compensation Policy, effective on June 16, 2021 (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 filed on August 4, 2021).* | ||||||||
Nasdaq Executive Corporate Incentive Plan, effective as of January 1, 2015 (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 11, 2015).* | ||||||||
Nasdaq, Inc. Equity Incentive Plan (as amended and restated as of April 24, 2018) (incorporated herein by reference to Exhibit 10.1 to the Form S-8 filed on May 25, 2018).* | ||||||||
Form of Nasdaq Non-Qualified Stock Option Award Certificate (incorporated herein by reference to Exhibit 10.3 to the Annual Report on Form 10-K for the year ended December 31, 2010 filed on February 24, 2011).* | ||||||||
Form of Nasdaq Restricted Stock Unit Award Certificate (employees) (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq Restricted Stock Unit Award Certificate (directors) (incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq One-Year Performance Share Unit Agreement (incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 filed on August 5, 2019).* | ||||||||
Form of Nasdaq Three-Year Performance Share Unit Agreement (incorporated herein by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq Continuing Obligations Agreement (incorporated by reference to Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022). | ||||||||
Amended and Restated Supplemental Executive Retirement Plan, dated as of December 17, 2008 (incorporated herein by reference to Exhibit 10.6 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Amendment No. 1 to Amended and Restated Supplemental Executive Retirement Plan, effective as of December 31, 2008 (incorporated herein by reference to Exhibit 10.6.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Nasdaq Supplemental Employer Retirement Contribution Plan, dated as of December 17, 2008 (incorporated herein by reference to Exhibit 10.7 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Nasdaq, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 16, 2022).* | ||||||||
Nonqualified Stock Option Award Certificate to Adena T. Friedman from Nasdaq, Inc. in connection with grant made on January 3, 2017 (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 filed on November 7, 2017).* | ||||||||
Employment Agreement between Nasdaq and Adena Friedman, made and entered into on November 19, 2021 and effective as of January 1, 2022 (incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022).* | ||||||||
Nonqualified Stock Option Award Certificate to Adena T. Friedman from Nasdaq, Inc. in connection with grant made on January 3, 2022 (incorporated by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022).* | ||||||||
Employment Agreement by and between Nasdaq, Inc. and Bradley J. Peterson, dated October 1, 2020 (incorporated herein by reference to Exhibit 10.17 to the Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 23, 2021).* | ||||||||
Employment Agreement by and between Nasdaq, Inc. and Bradley J. Peterson, dated June 22, 2022 (incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022). | ||||||||
Employment Offer Letter by and between Nasdaq, Inc. and Michelle Daly (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 3, 2021).* | ||||||||
Nasdaq Change in Control Severance Plan for Executive Vice Presidents and Senior Vice Presidents, effective November 26, 2013, as amended December 6, 2022.* | ||||||||
Credit Agreement, dated as of December 21, 2020, among Nasdaq, Inc., the various lenders from time to time party thereto and, Bank of America, N.A., as administrative agent and issuing bank (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
LIBOR Transition Amendment, dated as of October 19, 2021 by and among Nasdaq, Inc. and Bank of America, N.A., as administrative agent (incorporated herein by reference to Exhibit 10.23 to the Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022). | ||||||||
Amended and Restated Credit Agreement, dated as of December 16, 2022, among Nasdaq, Inc., the various lenders and issuing bank party thereto and Bank of America, N.A., as administrative agent (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 16, 2022). | ||||||||
Form of Commercial Paper Dealer Agreement between Nasdaq, Inc., as Issuer, and the Dealer party thereto (incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on April 26, 2017). | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan* | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan Award Agreement, by and between Verafin Solutions ULC and Brendan Brothers, dated as of January 11, 2023* | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan Award Agreement, by and between Verafin Solutions ULC and Jamie King, dated as of October 18, 2022* | ||||||||
Statement regarding computation of per share earnings (incorporated herein by reference from Note 13 to the consolidated financial statements under Part II, Item 8 of this Form 10-K). | ||||||||
List of all subsidiaries. | ||||||||
Consent of Ernst & Young LLP. | ||||||||
Powers of Attorney. | ||||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”). | ||||||||
Certification of Executive Vice President and Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley. | ||||||||
Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley. | ||||||||
101 | The following materials from the Nasdaq, Inc. Annual Report on Form 10-K for the year ended December 31, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021; (ii) Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020 (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020; (iv) Consolidated Statements of Changes in Stockholders' Equity for the years ended December 31, 2022, 2021 and 2020; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020; and (vi) notes to consolidated financial statements. | |||||||
104 | Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101. |
Plan Category | Number of shares to be issued upon exercise of outstanding options, warrants and rights(a) | Weighted-average exercise price of outstanding options, warrants and rights(b) | Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in column(a))(c) | |||||||||||||||||
Equity compensation plans approved by stockholders | 1,420,323 | $ | 41.79 | 38,534,312 | ||||||||||||||||
Equity compensation plans not approved by stockholders | — | — | — | |||||||||||||||||
Total | 1,420,323 | $ | 41.79 | 38,534,312 |
Exhibit Number | ||||||||
Share Purchase Agreement, dated as of November 18, 2020, by and among Osprey Acquisition Corporation, a wholly owned subsidiary of Nasdaq, Verafin Holdings Inc., certain shareholders of Verafin (the “Sellers”), and Shareholder Representative Services LLC, solely in its capacity as the representative of the Sellers (incorporated herein by reference to Exhibit 2.2 to the Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 23, 2021).† | ||||||||
Amendment to Share Purchase Agreement, dated as of February 11, 2021, by and among Osprey Acquisition Corporation, a wholly owned subsidiary of Nasdaq, Verafin Holdings Inc., certain shareholders of Verafin (the “Sellers”), and Shareholder Representative Services LLC, solely in its capacity as the representative of the Sellers (incorporated herein by reference to Exhibit 2.3 to the Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 23, 2021). | ||||||||
Amended and Restated Certificate of Incorporation of Nasdaq (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on January 28, 2014). | ||||||||
Certificate of Elimination of Nasdaq’s Series A Convertible Preferred Stock (incorporated herein by reference to Exhibit 3.1.1 to the Current Report on Form 8-K filed on January 28, 2014). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on November 19, 2014). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on September 8, 2015). | ||||||||
Certificate of Amendment of Nasdaq’s Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on July 20, 2022). | ||||||||
Nasdaq’s By-Laws (incorporated herein by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on November 21, 2016). | ||||||||
Form of Common Stock certificate (incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 filed on November 4, 2015). | ||||||||
Stockholders’ Agreement, dated as of February 27, 2008, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Borse Dubai Limited (incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on March 3, 2008). | ||||||||
First Amendment to Stockholders’ Agreement, dated as of February 19, 2009, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Borse Dubai Limited (incorporated herein by reference to Exhibit 4.10.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009). | ||||||||
Registration Rights Agreement, dated as of February 27, 2008, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Borse Dubai Limited and Borse Dubai Nasdaq Share Trust (incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on March 3, 2008). | ||||||||
First Amendment to Registration Rights Agreement, dated as of February 19, 2009, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Borse Dubai Limited and Borse Dubai Nasdaq Share Trust (incorporated herein by reference to Exhibit 4.11.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009). | ||||||||
Stockholders’ Agreement, dated as of December 16, 2010, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Investor AB (incorporated herein by reference to Exhibit 4.12 to the Annual Report on Form 10-K for the year ended December 31, 2010 filed on February 24, 2011). | ||||||||
First Amendment to Nasdaq Stockholders’ Agreement, dated as of December 14, 2022, between Nasdaq, Inc. and Investor AB (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on December 16, 2022). | ||||||||
Indenture, dated as of June 7, 2013, between Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on June 10, 2013). | ||||||||
First Supplemental Indenture, dated as of June 7, 2013, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.), Wells Fargo Bank, National Association, as Trustee, Deutsche Bank AG, London Branch, as paying agent, and Deutsche Bank Luxembourg S.A., as registrar and transfer agent (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on June 10, 2013). | ||||||||
Second Supplemental Indenture, dated as of May 29, 2014, among Nasdaq, Inc. (f/k/a The NASDAQ OMX Group, Inc.) and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on May 30, 2014). | ||||||||
Third Supplemental Indenture, dated as of May 20, 2016, among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee, and HSBC Bank USA, National Association, as paying agent and as registrar and transfer agent (incorporated herein by reference to the Current Report on Form 8-K filed on May 23, 2016). | ||||||||
Fifth Supplemental Indenture, dated as of September 22, 2017, among Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on September 22, 2017). | ||||||||
Sixth Supplemental Indenture, dated as of April 1, 2019, among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee, and HSBC Bank USA, National Association, as paying agent and as registrar and transfer agent (incorporated by reference to Exhibit 4.2 to the Form 8-A filed on April 1, 2019). | ||||||||
Seventh Supplemental Indenture, dated February 13, 2020, among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee, and HSBC Bank USA, National Association, as paying agent and as registrar and transfer agent (incorporated herein by reference to Exhibit 4.2 to the Company’s Form 8-A filed on February 13, 2020). | ||||||||
Eighth Supplemental Indenture, dated April 28, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on April 28, 2020). | ||||||||
Ninth Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Tenth Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.3 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Eleventh Supplemental Indenture, dated December 21, 2020, by and between Nasdaq, Inc. and Wells Fargo Bank, National Association, as Trustee (incorporated herein by reference to Exhibit 4.4 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
Twelfth Supplemental Indenture, dated July 30, 2021, by and among Nasdaq, Inc., Wells Fargo Bank, National Association, as Trustee and HSBC Bank USA, National Association, as registrar and transfer agent (incorporated by reference to Exhibit 4.2 to the Company’s 8-A filed on July 30, 2021). | ||||||||
Thirteenth Supplemental Indenture, dated as of March 7, 2022, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on March 7, 2022). | ||||||||
Description of Securities. | ||||||||
Amended and Restated Board Compensation Policy, effective on June 16, 2021 (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 filed on August 4, 2021).* | ||||||||
Nasdaq Executive Corporate Incentive Plan, effective as of January 1, 2015 (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 11, 2015).* | ||||||||
Nasdaq, Inc. Equity Incentive Plan (as amended and restated as of April 24, 2018) (incorporated herein by reference to Exhibit 10.1 to the Form S-8 filed on May 25, 2018).* | ||||||||
Form of Nasdaq Non-Qualified Stock Option Award Certificate (incorporated herein by reference to Exhibit 10.3 to the Annual Report on Form 10-K for the year ended December 31, 2010 filed on February 24, 2011).* | ||||||||
Form of Nasdaq Restricted Stock Unit Award Certificate (employees) (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq Restricted Stock Unit Award Certificate (directors) (incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq One-Year Performance Share Unit Agreement (incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 filed on August 5, 2019).* | ||||||||
Form of Nasdaq Three-Year Performance Share Unit Agreement (incorporated herein by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022).* | ||||||||
Form of Nasdaq Continuing Obligations Agreement (incorporated by reference to Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022). | ||||||||
Amended and Restated Supplemental Executive Retirement Plan, dated as of December 17, 2008 (incorporated herein by reference to Exhibit 10.6 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Amendment No. 1 to Amended and Restated Supplemental Executive Retirement Plan, effective as of December 31, 2008 (incorporated herein by reference to Exhibit 10.6.1 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Nasdaq Supplemental Employer Retirement Contribution Plan, dated as of December 17, 2008 (incorporated herein by reference to Exhibit 10.7 to the Annual Report on Form 10-K for the year ended December 31, 2008 filed on February 27, 2009).* | ||||||||
Nasdaq, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 16, 2022).* | ||||||||
Nonqualified Stock Option Award Certificate to Adena T. Friedman from Nasdaq, Inc. in connection with grant made on January 3, 2017 (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 filed on November 7, 2017).* | ||||||||
Employment Agreement between Nasdaq and Adena Friedman, made and entered into on November 19, 2021 and effective as of January 1, 2022 (incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022).* | ||||||||
Nonqualified Stock Option Award Certificate to Adena T. Friedman from Nasdaq, Inc. in connection with grant made on January 3, 2022 (incorporated by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022).* | ||||||||
Employment Agreement by and between Nasdaq, Inc. and Bradley J. Peterson, dated October 1, 2020 (incorporated herein by reference to Exhibit 10.17 to the Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 23, 2021).* | ||||||||
Employment Agreement by and between Nasdaq, Inc. and Bradley J. Peterson, dated June 22, 2022 (incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on August 3, 2022). | ||||||||
Employment Offer Letter by and between Nasdaq, Inc. and Michelle Daly (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on May 3, 2021).* | ||||||||
Nasdaq Change in Control Severance Plan for Executive Vice Presidents and Senior Vice Presidents, effective November 26, 2013, as amended December 6, 2022.* | ||||||||
Credit Agreement, dated as of December 21, 2020, among Nasdaq, Inc., the various lenders from time to time party thereto and, Bank of America, N.A., as administrative agent and issuing bank (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 21, 2020). | ||||||||
LIBOR Transition Amendment, dated as of October 19, 2021 by and among Nasdaq, Inc. and Bank of America, N.A., as administrative agent (incorporated herein by reference to Exhibit 10.23 to the Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022). | ||||||||
Amended and Restated Credit Agreement, dated as of December 16, 2022, among Nasdaq, Inc., the various lenders and issuing bank party thereto and Bank of America, N.A., as administrative agent (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 16, 2022). | ||||||||
Form of Commercial Paper Dealer Agreement between Nasdaq, Inc., as Issuer, and the Dealer party thereto (incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on April 26, 2017). | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan* | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan Award Agreement, by and between Verafin Solutions ULC and Brendan Brothers, dated as of January 11, 2023* | ||||||||
Verafin Holdings Inc. Amended and Restated Management Incentive Plan Award Agreement, by and between Verafin Solutions ULC and Jamie King, dated as of October 18, 2022* | ||||||||
Statement regarding computation of per share earnings (incorporated herein by reference from Note 13 to the consolidated financial statements under Part II, Item 8 of this Form 10-K). | ||||||||
List of all subsidiaries. | ||||||||
Consent of Ernst & Young LLP. | ||||||||
Powers of Attorney. | ||||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”). | ||||||||
Certification of Executive Vice President and Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley. | ||||||||
Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley. | ||||||||
101 | The following materials from the Nasdaq, Inc. Annual Report on Form 10-K for the year ended December 31, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021; (ii) Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020 (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020; (iv) Consolidated Statements of Changes in Stockholders' Equity for the years ended December 31, 2022, 2021 and 2020; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020; and (vi) notes to consolidated financial statements. | |||||||
104 | Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101. |
Nasdaq, Inc. | ||||||||
(Registrant) | ||||||||
By: | /s/ Adena T. Friedman | |||||||
Name: | Adena T. Friedman | |||||||
Title: | Chief Executive Officer | |||||||
Date: | February 23, 2023 | |||||||
By: | /s/ Adena T. Friedman | |||||||
Name: | Adena T. Friedman | |||||||
Title: | Chief Executive Officer and Chair of the Board | |||||||
By: | /s/ Ann M. Dennison | |||||||
Name: | Ann M. Dennison | |||||||
Title: | Executive Vice President and Chief Financial Officer | |||||||
By: | /s/ Michelle Daly | |||||||
Name: | Michelle Daly | |||||||
Title: | Senior Vice President, Controller and Principal Accounting Officer | |||||||
By: | * | |||||||
Name: | Michael R. Splinter | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Melissa M. Arnoldi | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Charlene T. Begley | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Steven D. Black | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Essa Kazim | |||||||
Title: | Director |
By: | * | |||||||
Name: | Thomas A. Kloet | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | John D. Rainey | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Johan Torgeby | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Toni Townes-Whitley | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Alfred W. Zollar | |||||||
Title: | Director | |||||||
* Pursuant to Power of Attorney | ||||||||
By: | /s/ John A. Zecca | |||||||
Name: | John A. Zecca | |||||||
Title: | Attorney-in-Fact |
Market Technology Revenue Recognition | ||||||||
Description of the Matter | As described in Notes 2 and 3 to the consolidated financial statements, the Company enters into long-term market technology contracts with customers to develop customized technology solutions, license the right to use software, and provide support and other services which results in these contracts containing multiple performance obligations. The Company recognized $562 million of Marketplace Technology revenue for the year ended December 31, 2022. Of this amount, a portion relates to market technology contracts where the Company allocates the contract transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the respective market technology contract. In instances where standalone selling price is not directly observable, such as when a product or service is not sold separately, the Company determines the standalone selling price predominantly through an expected cost plus a margin approach. The Company recognizes revenue over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the performance obligation. Revenue recognized subject to such estimation was $75 million for the year ended December 31, 2022. Auditing the Company’s calculation of the standalone selling price and timing of revenue recognition was complex and involved a high degree of subjective auditor judgment because of the significant management judgment required to develop the estimates. The standalone selling price is based on an estimate of total project costs, ongoing monitoring of completion of performance obligations and establishing margins for goods or services where a standalone selling price is not directly observable. |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company's processes with respect to estimates that impact the timing and measurement of revenue recognition. For example, we tested controls over the allocation of contract transaction price to performance obligations, including management’s review of the estimated margin used when applying the cost plus an estimated margin to determine the standalone selling price. We also evaluated the design and tested the operating effectiveness of controls over the completeness and accuracy of the data utilized to measure the estimate and recognize the revenue in the appropriate period. We performed substantive audit procedures that included, among other things, evaluating the significant assumptions and the accuracy and completeness of the underlying data used in management’s calculation. Specifically, we inspected certain new customer agreements signed during the year, including change requests, and tested management’s determination of the standalone selling price and its allocation to performance obligations in accordance with the cost plus a margin approach, including comparing the margin assumptions to actual margins earned on completed contracts. We also tested the accuracy of the revenue recognized in the current period by inspecting reports relating to the hours recorded on a project. We evaluated the adequacy of the Company’s disclosures in Notes 2 and 3 to the consolidated financial statements related to market technology revenue recognition. |
December 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 502 | $ | 393 | |||||||
Restricted cash and cash equivalents | 22 | 29 | |||||||||
Default funds and margin deposits (including restricted cash and cash equivalents of $6,470 and $5,074, respectively) | 7,021 | 5,911 | |||||||||
Financial investments | 181 | 208 | |||||||||
Receivables, net | 677 | 588 | |||||||||
Other current assets | 201 | 294 | |||||||||
Total current assets | 8,604 | 7,423 | |||||||||
Property and equipment, net | 532 | 509 | |||||||||
Goodwill | 8,099 | 8,433 | |||||||||
Intangible assets, net | 2,581 | 2,813 | |||||||||
Operating lease assets | 444 | 366 | |||||||||
Other non-current assets | 608 | 571 | |||||||||
Total assets | $ | 20,868 | $ | 20,115 | |||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 185 | $ | 185 | |||||||
Section 31 fees payable to SEC | 243 | 62 | |||||||||
Accrued personnel costs | 243 | 252 | |||||||||
Deferred revenue | 357 | 329 | |||||||||
Other current liabilities | 122 | 115 | |||||||||
Default funds and margin deposits | 7,021 | 5,911 | |||||||||
Short-term debt | 664 | 1,018 | |||||||||
Total current liabilities | 8,835 | 7,872 | |||||||||
Long-term debt | 4,735 | 4,812 | |||||||||
Deferred tax liabilities, net | 456 | 406 | |||||||||
Operating lease liabilities | 452 | 386 | |||||||||
Other non-current liabilities | 226 | 234 | |||||||||
Total liabilities | 14,704 | 13,710 | |||||||||
Commitments and contingencies | |||||||||||
Equity | |||||||||||
Nasdaq stockholders’ equity: | |||||||||||
Common stock, $0.01 par value, 900,000,000 shares authorized, shares issued: 513,157,630 at December 31, 2022 and 520,256,817 at December 31, 2021; shares outstanding: 491,592,491 at December 31, 2022 and 500,038,905 at December 31, 2021 | 5 | 5 | |||||||||
Additional paid-in capital | 1,445 | 1,949 | |||||||||
Common stock in treasury, at cost: 21,565,139 shares at December 31, 2022 and 20,217,912 shares at December 31, 2021 | (515) | (437) | |||||||||
Accumulated other comprehensive loss | (1,991) | (1,587) | |||||||||
Retained earnings | 7,207 | 6,465 | |||||||||
Total Nasdaq stockholders’ equity | 6,151 | 6,395 | |||||||||
Noncontrolling interests | 13 | 10 | |||||||||
Total equity | 6,164 | 6,405 | |||||||||
Total liabilities and equity | $ | 20,868 | $ | 20,115 |
December 31, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 377 | $ | 403 | |||
Restricted cash | 22 | 15 | |||||
Financial investments, at fair value | 235 | 245 | |||||
Receivables, net | 423 | 429 | |||||
Default funds and margin deposits | 3,988 | 3,301 | |||||
Other current assets | 187 | 167 | |||||
Assets held for sale | 297 | — | |||||
Total current assets | 5,529 | 4,560 | |||||
Property and equipment, net | 400 | 362 | |||||
Deferred tax assets | 391 | 717 | |||||
Goodwill | 6,586 | 6,027 | |||||
Intangible assets, net | 2,468 | 2,094 | |||||
Other non-current assets | 412 | 390 | |||||
Total assets | $ | 15,786 | $ | 14,150 | |||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 177 | $ | 175 | |||
Section 31 fees payable to SEC | 128 | 108 | |||||
Accrued personnel costs | 170 | 207 | |||||
Deferred revenue | 189 | 162 | |||||
Other current liabilities | 85 | 129 | |||||
Default funds and margin deposits | 3,988 | 3,301 | |||||
Short-term debt | 480 | — | |||||
Liabilities held for sale | 45 | — | |||||
Total current liabilities | 5,262 | 4,082 | |||||
Long-term debt | 3,727 | 3,603 | |||||
Deferred tax liabilities | 602 | 720 | |||||
Non-current deferred revenue | 146 | 171 | |||||
Other non-current liabilities | 162 | 144 | |||||
Total liabilities | 9,899 | 8,720 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Nasdaq stockholders’ equity: | |||||||
Common stock, $0.01 par value, 300,000,000 shares authorized, shares issued: 172,373,432 at December 31, 2017 and 170,501,186 at December 31, 2016; shares outstanding: 167,441,030 at December 31, 2017 and 166,579,468 at December 31, 2016 | 2 | 2 | |||||
Additional paid-in capital | 3,024 | 3,104 | |||||
Common stock in treasury, at cost: 4,932,402 shares at December 31, 2017 and 3,921,718 shares at December 31, 2016 | (247 | ) | (176 | ) | |||
Accumulated other comprehensive loss | (862 | ) | (979 | ) | |||
Retained earnings | 3,970 | 3,479 | |||||
Total Nasdaq stockholders’ equity | 5,887 | 5,430 | |||||
Total liabilities and equity | $ | 15,786 | $ | 14,150 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Market Platforms | $ | 4,225 | $ | 4,048 | $ | 4,179 | |||||||||||||||||||||||
Capital Access Platforms | 1,684 | 1,568 | 1,287 | ||||||||||||||||||||||||||
Anti-Financial Crime | 306 | 231 | 116 | ||||||||||||||||||||||||||
Other revenues | 11 | 39 | 43 | ||||||||||||||||||||||||||
Total revenues | 6,226 | 5,886 | 5,625 | ||||||||||||||||||||||||||
Transaction-based expenses: | |||||||||||||||||||||||||||||
Transaction rebates | (2,092) | (2,168) | (2,028) | ||||||||||||||||||||||||||
Brokerage, clearance and exchange fees | (552) | (298) | (694) | ||||||||||||||||||||||||||
Revenues less transaction-based expenses | 3,582 | 3,420 | 2,903 | ||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Compensation and benefits | 1,003 | 938 | 786 | ||||||||||||||||||||||||||
Professional and contract services | 140 | 144 | 137 | ||||||||||||||||||||||||||
Computer operations and data communications | 207 | 186 | 151 | ||||||||||||||||||||||||||
Occupancy | 104 | 109 | 107 | ||||||||||||||||||||||||||
General, administrative and other | 125 | 85 | 142 | ||||||||||||||||||||||||||
Marketing and advertising | 51 | 57 | 39 | ||||||||||||||||||||||||||
Depreciation and amortization | 258 | 278 | 202 | ||||||||||||||||||||||||||
Regulatory | 33 | 64 | 24 | ||||||||||||||||||||||||||
Merger and strategic initiatives | 82 | 87 | 33 | ||||||||||||||||||||||||||
Restructuring charges | 15 | 31 | 48 | ||||||||||||||||||||||||||
Total operating expenses | 2,018 | 1,979 | 1,669 | ||||||||||||||||||||||||||
Operating income | 1,564 | 1,441 | 1,234 | ||||||||||||||||||||||||||
Interest income | 7 | 1 | 4 | ||||||||||||||||||||||||||
Interest expense | (129) | (125) | (101) | ||||||||||||||||||||||||||
Net gain on divestiture of business | — | 84 | — | ||||||||||||||||||||||||||
Other income | 2 | 81 | 5 | ||||||||||||||||||||||||||
Net income from unconsolidated investees | 31 | 52 | 70 | ||||||||||||||||||||||||||
Income before income taxes | 1,475 | 1,534 | 1,212 | ||||||||||||||||||||||||||
Income tax provision | 352 | 347 | 279 | ||||||||||||||||||||||||||
Net income | 1,123 | 1,187 | 933 | ||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 2 | — | — | ||||||||||||||||||||||||||
Net income attributable to Nasdaq | $ | 1,125 | $ | 1,187 | $ | 933 | |||||||||||||||||||||||
Per share information: | |||||||||||||||||||||||||||||
Basic earnings per share | $ | 2.28 | $ | 2.38 | $ | 1.89 | |||||||||||||||||||||||
Diluted earnings per share | $ | 2.26 | $ | 2.35 | $ | 1.86 | |||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.78 | $ | 0.70 | $ | 0.65 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Revenues: | ||||||||||||
Market Services | $ | 2,418 | $ | 2,255 | $ | 2,084 | ||||||
Corporate Services | 656 | 635 | 562 | |||||||||
Information Services | 588 | 540 | 512 | |||||||||
Market Technology | 303 | 275 | 245 | |||||||||
Total revenues | 3,965 | 3,705 | 3,403 | |||||||||
Transaction-based expenses: | ||||||||||||
Transaction rebates | (1,158 | ) | (1,092 | ) | (983 | ) | ||||||
Brokerage, clearance and exchange fees | (379 | ) | (336 | ) | (330 | ) | ||||||
Revenues less transaction-based expenses | 2,428 | 2,277 | 2,090 | |||||||||
Operating expenses: | ||||||||||||
Compensation and benefits | 675 | 664 | 590 | |||||||||
Professional and contract services | 156 | 153 | 148 | |||||||||
Computer operations and data communications | 125 | 111 | 107 | |||||||||
Occupancy | 95 | 86 | 85 | |||||||||
General, administrative and other | 82 | 72 | 65 | |||||||||
Marketing and advertising | 31 | 30 | 28 | |||||||||
Depreciation and amortization | 188 | 170 | 138 | |||||||||
Regulatory | 33 | 35 | 27 | |||||||||
Merger and strategic initiatives | 44 | 76 | 10 | |||||||||
Restructuring charges | — | 41 | 172 | |||||||||
Total operating expenses | 1,429 | 1,438 | 1,370 | |||||||||
Operating income | 999 | 839 | 720 | |||||||||
Interest income | 7 | 5 | 4 | |||||||||
Interest expense | (143 | ) | (135 | ) | (111 | ) | ||||||
Asset impairment charge | — | (578 | ) | — | ||||||||
Other investment income | 2 | 3 | — | |||||||||
Net income from unconsolidated investees | 15 | 2 | 17 | |||||||||
Income before income taxes | 880 | 136 | 630 | |||||||||
Income tax provision | 146 | 28 | 203 | |||||||||
Net income | 734 | 108 | 427 | |||||||||
Net loss attributable to noncontrolling interests | — | — | 1 | |||||||||
Net income attributable to Nasdaq | $ | 734 | $ | 108 | $ | 428 | ||||||
Per share information: | ||||||||||||
Basic earnings per share | $ | 4.41 | $ | 0.65 | $ | 2.56 | ||||||
Diluted earnings per share | $ | 4.33 | $ | 0.64 | $ | 2.50 | ||||||
Cash dividends declared per common share | $ | 1.46 | $ | 1.21 | $ | 0.90 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net income | $ | 734 | $ | 108 | $ | 427 | ||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation gains (losses): | ||||||||||||
Net foreign currency translation gains (losses) | 214 | (183 | ) | (283 | ) | |||||||
Income tax benefit (expense) | (96 | ) | 68 | 100 | ||||||||
Total | 118 | (115 | ) | (183 | ) | |||||||
Employee benefit plan gains (losses): | ||||||||||||
Employee benefit plan adjustment gains (losses) | (2 | ) | — | 2 | ||||||||
Income tax benefit (expense) | 1 | — | (1 | ) | ||||||||
Total | (1 | ) | — | 1 | ||||||||
Total other comprehensive income (loss), net of tax | 117 | (115 | ) | (182 | ) | |||||||
Comprehensive income (loss) | 851 | (7 | ) | 245 | ||||||||
Comprehensive loss attributable to noncontrolling interests | — | — | 1 | |||||||||
Comprehensive income (loss) attributable to Nasdaq | $ | 851 | $ | (7 | ) | $ | 246 |
Number of Common Shares Outstanding | Common Stock at Par Value | Additional Paid-in Capital | Common Stock In Treasury, at Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Non- controlling Interests | Total | ||||||||||||||||||||||||
Balance at December 31, 2014 | 168,795,263 | $ | 2 | $ | 3,222 | $ | (41 | ) | $ | (682 | ) | $ | 3,292 | $ | 1 | $ | 5,794 | ||||||||||||||
Net income (loss) | — | — | — | — | — | — | 428 | (1 | ) | 427 | |||||||||||||||||||||
Foreign currency translation, net of tax of $100 | — | — | — | — | (183 | ) | — | — | (183 | ) | |||||||||||||||||||||
Employee benefit plan adjustments, net of tax of $1 | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||||||||
Cash dividends declared per common share | — | — | — | — | — | (149 | ) | — | (149 | ) | |||||||||||||||||||||
Share repurchase program | (7,191,685 | ) | — | (340 | ) | (37 | ) | — | — | — | (377 | ) | |||||||||||||||||||
Share-based compensation | 1,455,380 | — | 68 | — | — | — | — | 68 | |||||||||||||||||||||||
Stock option exercises, net | 682,054 | — | 18 | — | — | — | — | 18 | |||||||||||||||||||||||
Other issuances of common stock, net | (408,989 | ) | — | 55 | (33 | ) | — | — | — | 22 | |||||||||||||||||||||
Purchase of subsidiary shares to noncontrolling interests and other adjustments | — | — | (12 | ) | — | — | — | — | (12 | ) | |||||||||||||||||||||
Issuance of Nasdaq common stock related to a prior acquisition | 992,247 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at December 31, 2015 | 164,324,270 | $ | 2 | $ | 3,011 | $ | (111 | ) | $ | (864 | ) | $ | 3,571 | $ | — | $ | 5,609 | ||||||||||||||
Net income | — | — | — | — | — | 108 | — | 108 | |||||||||||||||||||||||
Foreign currency translation, net of tax of $68 | — | — | — | — | (115 | ) | — | — | (115 | ) | |||||||||||||||||||||
Cash dividends declared per common share | — | — | — | — | — | (200 | ) | — | (200 | ) | |||||||||||||||||||||
Share repurchase program | (1,547,778 | ) | — | (100 | ) | — | — | — | — | (100 | ) | ||||||||||||||||||||
Share-based compensation | 2,361,699 | — | 86 | — | — | — | — | 86 | |||||||||||||||||||||||
Stock option exercises, net | 1,219,820 | — | 41 | — | — | — | — | 41 | |||||||||||||||||||||||
Other issuances of common stock, net | (770,790 | ) | — | 66 | (65 | ) | — | — | — | 1 | |||||||||||||||||||||
Issuance of Nasdaq common stock related to a prior acquisition | 992,247 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at December 31, 2016 | 166,579,468 | $ | 2 | $ | 3,104 | $ | (176 | ) | $ | (979 | ) | $ | 3,479 | $ | — | $ | 5,430 | ||||||||||||||
Net income | — | — | — | — | — | 734 | — | 734 | |||||||||||||||||||||||
Foreign currency translation, net of tax of $96 | — | — | — | — | 118 | — | — | 118 | |||||||||||||||||||||||
Employee benefit plan adjustments, net of tax of $1 | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||
Cash dividends declared per common share | — | — | — | — | — | (243 | ) | — | (243 | ) | |||||||||||||||||||||
Share repurchase program | (2,843,519 | ) | — | (203 | ) | — | — | — | — | (203 | ) | ||||||||||||||||||||
Share-based compensation | 2,384,821 | — | 70 | — | — | — | — | 70 | |||||||||||||||||||||||
Stock option exercises, net | 1,102,830 | — | 24 | — | — | — | — | 24 | |||||||||||||||||||||||
Other issuances of common stock, net | (774,817 | ) | — | 29 | (71 | ) | — | — | — | (42 | ) | ||||||||||||||||||||
Issuance of Nasdaq common stock related to a prior acquisition | 992,247 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at December 31, 2017 | 167,441,030 | $ | 2 | $ | 3,024 | $ | (247 | ) | $ | (862 | ) | $ | 3,970 | $ | — | $ | 5,887 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Net income | $ | 1,123 | $ | 1,187 | $ | 933 | |||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation gains (losses) | (375) | (176) | 269 | ||||||||||||||||||||||||||
Income tax benefit (expense)(1) | (32) | (42) | 49 | ||||||||||||||||||||||||||
Foreign currency translation, net | (407) | (218) | 318 | ||||||||||||||||||||||||||
Employee benefit plan adjustment gains (losses) | 5 | (1) | — | ||||||||||||||||||||||||||
Employee benefit plan income tax provision | (2) | — | — | ||||||||||||||||||||||||||
Employee benefit plan, net | 3 | (1) | — | ||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | (404) | (219) | 318 | ||||||||||||||||||||||||||
Comprehensive income | 719 | 968 | 1,251 | ||||||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | 2 | — | — | ||||||||||||||||||||||||||
Comprehensive income attributable to Nasdaq | $ | 721 | $ | 968 | $ | 1,251 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | $ | Shares | $ | Shares | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | 500 | 5 | 495 | 5 | 495 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 1,949 | 2,544 | 2,629 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchase program | (5) | (308) | (9) | (468) | (6) | (222) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ASR agreement(1) | (6) | (325) | (7) | (475) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 3 | 106 | 3 | 90 | 3 | 87 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | — | 1 | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other issuances of common stock, net(2) | 1 | 23 | 19 | 257 | 3 | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | 1,445 | 1,949 | 2,544 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock in treasury, at cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | (437) | (376) | (336) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other employee stock activity | (1) | (78) | (1) | (61) | — | (40) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | (515) | (437) | (376) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | (1,587) | (1,368) | (1,686) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (404) | (219) | 318 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | (1,991) | (1,587) | (1,368) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 6,465 | 5,628 | 5,027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of adoption of ASU 2016-13 | — | — | (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nasdaq | 1,125 | 1,187 | 933 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared per common share | (383) | (350) | (320) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | 7,207 | 6,465 | 5,628 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Nasdaq stockholders’ equity | 6,151 | 6,395 | 6,433 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | 10 | 3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net activity related to noncontrolling interests | 3 | 7 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | 13 | 10 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Equity | 492 | $ | 6,164 | 500 | $ | 6,405 | 495 | $ | 6,436 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 1,123 | $ | 1,187 | $ | 933 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 258 | 278 | 202 | ||||||||||||||
Share-based compensation | 106 | 90 | 87 | ||||||||||||||
Deferred income taxes | 38 | 94 | 41 | ||||||||||||||
Extinguishment of debt | 16 | 33 | 36 | ||||||||||||||
Net gain on divestiture of business | — | (84) | — | ||||||||||||||
Net income from unconsolidated investees | (31) | (52) | (70) | ||||||||||||||
Other reconciling items included in net income | 28 | 6 | 32 | ||||||||||||||
Net change in operating assets and liabilities, net of effects of acquisitions: | |||||||||||||||||
Receivables, net | (101) | (6) | (167) | ||||||||||||||
Other assets | 98 | (140) | 26 | ||||||||||||||
Accounts payable and accrued expenses | 19 | (17) | 5 | ||||||||||||||
Section 31 fees payable to SEC | 181 | (162) | 92 | ||||||||||||||
Accrued personnel costs | — | 28 | 32 | ||||||||||||||
Deferred revenue | 16 | 106 | 15 | ||||||||||||||
Other liabilities(1) | (45) | (278) | (12) | ||||||||||||||
Net cash provided by operating activities | 1,706 | 1,083 | 1,252 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of securities | (322) | (316) | (283) | ||||||||||||||
Proceeds from sales and redemptions of securities | 320 | 285 | 402 | ||||||||||||||
Proceeds from divestiture of business, net of cash divested | — | 190 | — | ||||||||||||||
Proceeds from sale of investment securities | — | — | 22 | ||||||||||||||
Acquisition of businesses, net of cash and cash equivalents acquired | (41) | (2,430) | (157) | ||||||||||||||
Purchases of property and equipment | (152) | (163) | (188) | ||||||||||||||
Investments related to default funds and margin deposits, net(2) | 211 | (132) | 109 | ||||||||||||||
Other investing activities | 33 | (87) | (27) | ||||||||||||||
Net cash provided by (used in) investing activities | 49 | (2,653) | (122) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from (repayments of) commercial paper, net | 238 | 420 | (391) | ||||||||||||||
Repayments of debt and credit commitment | (1,097) | (804) | (1,468) | ||||||||||||||
Payment of debt extinguishment cost | (16) | (33) | (36) | ||||||||||||||
Proceeds from issuances of debt, net of issuance costs and utilization of credit commitment | 541 | 826 | 3,807 | ||||||||||||||
Repurchases of common stock | (308) | (468) | (222) | ||||||||||||||
ASR agreement | (325) | (475) | — | ||||||||||||||
Dividends paid | (383) | (350) | (320) | ||||||||||||||
Proceeds received from employee stock activity and other issuances | 23 | 26 | 50 | ||||||||||||||
Payments related to employee shares withheld for taxes | (78) | (61) | (40) | ||||||||||||||
Default funds and margin deposits | 2,440 | 2,330 | 527 | ||||||||||||||
Other financing activities | 1 | 7 | 3 | ||||||||||||||
Net cash provided by financing activities | 1,036 | 1,418 | 1,910 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (1,293) | (331) | 353 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 1,498 | (483) | 3,393 | ||||||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | 5,496 | 5,979 | 2,586 | ||||||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | 6,994 | $ | 5,496 | $ | 5,979 | |||||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents | $ | 502 | $ | 393 | $ | 2,745 | |||||||||||
Restricted cash and cash equivalents | 22 | 29 | 37 | ||||||||||||||
Restricted cash and cash equivalents (default funds and margin deposits) | 6,470 | 5,074 | 3,197 | ||||||||||||||
Total | $ | 6,994 | $ | 5,496 | $ | 5,979 | |||||||||||
Supplemental Disclosure Cash Flow Information | |||||||||||||||||
Interest paid | $ | 116 | $ | 118 | $ | 97 | |||||||||||
Income taxes paid, net of refund(1) | $ | 274 | $ | 501 | $ | 290 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 734 | $ | 108 | $ | 427 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 188 | 170 | 138 | ||||||||
Share-based compensation | 70 | 86 | 68 | ||||||||
Deferred income taxes | 10 | (136 | ) | (14 | ) | ||||||
Non-cash restructuring charges | — | 8 | 136 | ||||||||
Asset impairment charge | — | 578 | — | ||||||||
Net income from unconsolidated investees | (15 | ) | (2 | ) | (17 | ) | |||||
Other reconciling items included in net income | 25 | 9 | 7 | ||||||||
Net change in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Receivables, net | 25 | (24 | ) | 55 | |||||||
Other assets | 261 | (18 | ) | (41 | ) | ||||||
Accounts payable and accrued expenses | (12 | ) | 5 | (38 | ) | ||||||
Section 31 fees payable to SEC | 20 | 5 | (26 | ) | |||||||
Accrued personnel costs | (41 | ) | 27 | 33 | |||||||
Deferred revenue | (43 | ) | (15 | ) | (49 | ) | |||||
Other liabilities | (61 | ) | (25 | ) | 48 | ||||||
Net assets held for sale | (252 | ) | — | — | |||||||
Net cash provided by operating activities | 909 | 776 | 727 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of trading securities | (366 | ) | (443 | ) | (346 | ) | |||||
Proceeds from sales and redemptions of trading securities | 394 | 392 | 319 | ||||||||
Purchases of available-for-sale investment securities | (26 | ) | (25 | ) | (38 | ) | |||||
Proceeds from maturities of available-for-sale investment securities | 30 | 19 | 29 | ||||||||
Capital contribution in equity method investment | — | — | (30 | ) | |||||||
Acquisition of businesses, net of cash and cash equivalents acquired | (776 | ) | (1,460 | ) | (226 | ) | |||||
Purchases of property and equipment | (144 | ) | (134 | ) | (133 | ) | |||||
Other investment activities | (2 | ) | (6 | ) | (10 | ) | |||||
Net cash used in investing activities | (890 | ) | (1,657 | ) | (435 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from commercial paper, net | 480 | — | — | ||||||||
Repayments of long-term debt | (708 | ) | (1,156 | ) | (369 | ) | |||||
Payment of debt extinguishment cost | (9 | ) | — | — | |||||||
Proceeds from utilization of credit commitment, net of debt issuance costs | 150 | 898 | 506 | ||||||||
Proceeds from issuances of senior unsecured notes, net of debt issuance costs | 498 | 1,159 | — | ||||||||
Proceeds from issuance of term loan facility | — | 399 | — | ||||||||
Cash paid for repurchase of common stock | (203 | ) | (100 | ) | (377 | ) | |||||
Cash dividends | (243 | ) | (200 | ) | (149 | ) | |||||
Proceeds received from employee stock activity | 53 | 54 | 29 | ||||||||
Payments related to employee shares withheld for taxes | (71 | ) | (65 | ) | (34 | ) | |||||
Proceeds (disbursements) of customer funds | — | (38 | ) | 13 | |||||||
Other financing activities | — | (3 | ) | (19 | ) | ||||||
Net cash (used in) provided by financing activities | (53 | ) | 948 | (400 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 15 | (6 | ) | (11 | ) | ||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (19 | ) | 61 | (119 | ) | ||||||
Cash and cash equivalents and restricted cash at beginning of period | 418 | 357 | 476 | ||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 399 | $ | 418 | $ | 357 | |||||
Supplemental Disclosure Cash Flow Information | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | 129 | $ | 119 | $ | 103 | |||||
Income taxes, net of refund | $ | 154 | $ | 191 | $ | 202 |
Year Ended December 31, 2020 | |||||||||||
As Reported | Adjustment | Adjusted | |||||||||
(in millions) | |||||||||||
Net cash provided by operating activities | $ | 1,252 | $ | — | $ | 1,252 | |||||
Net cash used in investing activities | (231) | 109 | (122) | ||||||||
Net cash provided by financing activities | 1,383 | 527 | 1,910 | ||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | 16 | 337 | 353 | ||||||||
Net increase in cash, cash equivalents, restricted cash and cash equivalents | 2,420 | 973 | 3,393 | ||||||||
Cash, cash equivalents, restricted cash and cash equivalents at beginning of period | 362 | 2,224 | 2,586 | ||||||||
Cash, cash equivalents, restricted cash and cash equivalents at end of period | $ | 2,782 | $ | 3,197 | $ | 5,979 | |||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents | $ | 2,745 | $ | — | $ | 2,745 | |||||
Restricted cash and cash equivalents | 37 | — | 37 | ||||||||
Restricted cash and cash equivalents (Default funds and margin deposits) | — | 3,197 | 3,197 | ||||||||
Total | $ | 2,782 | $ | 3,197 | $ | 5,979 |
Revenue |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Market Platforms | |||||||||||||||||
Trading Services, net | $ | 1,019 | $ | 1,037 | $ | 932 | |||||||||||
Marketplace Technology | 562 | 545 | 525 | ||||||||||||||
Capital Access Platforms | |||||||||||||||||
Data & Listing Services | 729 | 680 | 574 | ||||||||||||||
Index | 486 | 459 | 324 | ||||||||||||||
Workflow & Insights | 469 | 429 | 389 | ||||||||||||||
Anti-Financial Crime | 306 | 231 | 116 | ||||||||||||||
Other revenues | 11 | 39 | 43 | ||||||||||||||
Revenues less transaction-based expenses | $ | 3,582 | $ | 3,420 | $ | 2,903 |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | ||||||||||||||||||||||
As Reported | Adjustment to Reflect Adoption of Topic 606 | As Adjusted | As Reported | Adjustment to Reflect Adoption of Topic 606 | As Adjusted | ||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Revenues less transaction-based expenses: | |||||||||||||||||||||||
Market Services | $ | 881 | $ | — | $ | 881 | $ | 827 | $ | — | $ | 827 | |||||||||||
Corporate Services | 656 | (3 | ) | 653 | 635 | (3 | ) | 632 | |||||||||||||||
Information Services | 588 | — | 588 | 540 | — | 540 | |||||||||||||||||
Market Technology | 303 | (14 | ) | 289 | 275 | 2 | 277 | ||||||||||||||||
Total revenues less transaction-based expenses | 2,428 | (17 | ) | 2,411 | 2,277 | (1 | ) | 2,276 | |||||||||||||||
Total operating expenses (1) | 1,429 | (9 | ) | 1,420 | 1,438 | 2 | 1,440 | ||||||||||||||||
Income before income taxes | 880 | (8 | ) | 872 | 136 | (3 | ) | 133 | |||||||||||||||
Income tax provision (benefit) | 146 | (3 | ) | 143 | 28 | (1 | ) | 27 | |||||||||||||||
Net income attributable to Nasdaq | $ | 734 | $ | (5 | ) | $ | 729 | $ | 108 | $ | (2 | ) | $ | 106 | |||||||||
Diluted earnings per share | $ | 4.33 | $ | (0.03 | ) | $ | 4.30 | $ | 0.64 | $ | (0.01 | ) | $ | 0.63 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
As Reported | Adjustment to Reflect Adoption of Topic 606 | As Adjusted | As Reported | Adjustment to Reflect Adoption of Topic 606 | As Adjusted | ||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other current assets | $ | 187 | $ | (19 | ) | $ | 168 | $ | 167 | $ | (15 | ) | $ | 152 | |||||||||
Other non-current assets | 412 | (38 | ) | 374 | 390 | (46 | ) | 344 | |||||||||||||||
Deferred tax assets | 391 | 2 | 393 | 717 | (1 | ) | 716 | ||||||||||||||||
Total assets | $ | 15,786 | $ | (55 | ) | $ | 15,731 | $ | 14,150 | $ | (62 | ) | $ | 14,088 | |||||||||
Liabilities: | |||||||||||||||||||||||
Deferred revenue | $ | 189 | $ | (28 | ) | $ | 161 | $ | 162 | $ | (24 | ) | $ | 138 | |||||||||
Non-current deferred revenue | 146 | (20 | ) | 126 | 171 | (36 | ) | 135 | |||||||||||||||
Total liabilities | $ | 9,899 | $ | (48 | ) | $ | 9,851 | $ | 8,720 | $ | (60 | ) | $ | 8,660 | |||||||||
Nasdaq stockholders' equity: | |||||||||||||||||||||||
Retained earnings | $ | 3,970 | $ | (7 | ) | $ | 3,963 | $ | 3,479 | $ | (2 | ) | $ | 3,477 | |||||||||
Total Nasdaq stockholders' equity | 5,887 | (7 | ) | 5,880 | 5,430 | (2 | ) | 5,428 | |||||||||||||||
Total liabilities and equity | $ | 15,786 | $ | (55 | ) | $ | 15,731 | $ | 14,150 | $ | (62 | ) | $ | 14,088 | |||||||||
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Rebranding of trade name | $ | — | $ | 119 | |||
Severance | 22 | 25 | |||||
Facilities-related | 1 | — | |||||
Asset impairments | 8 | 18 | |||||
Other | 10 | 10 | |||||
Total restructuring charges | $ | 41 | $ | 172 |
Market Technology | Anti-Financial Crime | Workflow & Insights | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
2023 | $ | 193 | $ | 382 | $ | 137 | $ | 712 | |||||||||||||||
2024 | 155 | 214 | 79 | 448 | |||||||||||||||||||
2025 | 127 | 90 | 30 | 247 | |||||||||||||||||||
2026 | 92 | 27 | 11 | 130 | |||||||||||||||||||
2027 | 54 | 10 | 8 | 72 | |||||||||||||||||||
2028+ | 72 | 6 | — | 78 | |||||||||||||||||||
Total | $ | 693 | $ | 729 | $ | 265 | $ | 1,687 |
Purchase Consideration | Total Net Liabilities Acquired | Total Net Deferred Tax Liability | Acquired Intangible Assets | Goodwill | |||||||||||||||
(in millions) | |||||||||||||||||||
eVestment | $ | 744 | $ | (10 | ) | $ | (104 | ) | $ | 405 | $ | 453 |
Purchase Consideration | Total Net Assets (Liabilities) Acquired | Total Net Deferred Tax Liability | Acquired Intangible Assets | Goodwill | |||||||||||||||
(in millions) | |||||||||||||||||||
ISE | $ | 1,070 | $ | 83 | $ | (185 | ) | $ | 623 | $ | 549 | ||||||||
Boardvantage | 242 | 28 | (38 | ) | 111 | 141 | |||||||||||||
Marketwired | 111 | (1 | ) | (5 | ) | 31 | 86 | ||||||||||||
Nasdaq Canada | 116 | 6 | (20 | ) | 76 | 54 | |||||||||||||
Purchase Consideration | Total Net Assets Acquired | Total Net Deferred Tax Liability | Acquired Intangible Assets | Goodwill | |||||||||||||||
(in millions) | |||||||||||||||||||
DWA | $ | 226 | $ | 8 | $ | (34 | ) | $ | 141 | $ | 111 |
(in millions) | ||||||||
Goodwill | $ | 1,882 | ||||||
Acquired Intangible Assets | 815 | |||||||
Total Net Liabilities Acquired | (46) | |||||||
Purchase Consideration | $ | 2,651 |
Customer Relationships | Technology | Trade Name | Total Acquired Intangible Assets | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||
eVestment | ISE | Boardvantage | Marketwired | Nasdaq Canada | DWA | ||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||||||||||
Exchange registrations | $ | — | $ | 467 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Intangible asset value (in millions) | Intangible asset value (in millions) | $ | 532 | $ | 246 | $ | 37 | $ | 815 | ||||||||||||||||||||||||||||
Discount rate used | — | 8.6 | % | — | — | — | — | Discount rate used | 7.5 | % | 7.5 | % | 7.5 | % | |||||||||||||||||||||||
Estimated average useful life | — | Indefinite | — | — | — | — | Estimated average useful life | 22 years | 7 years | 20 years | |||||||||||||||||||||||||||
Customer relationships | $ | 378 | $ | 148 | $ | 103 | $ | 29 | $ | 76 | $ | 29 | |||||||||||||||||||||||||
Discount rate used | 9.3 | % | 9.1 | % | 15.5 | % | 16.4 | % | 10.3 | % | 17.5 | % | |||||||||||||||||||||||||
Estimated average useful life | 14 years | 13 years | 14 years | 6 years | 17 years | 15 years | |||||||||||||||||||||||||||||||
Trade name | $ | 13 | $ | 8 | $ | 2 | $ | 2 | $ | — | $ | 108 | |||||||||||||||||||||||||
Discount rate used | 9.2 | % | 8.6 | % | 15.0 | % | 15.8 | % | — | 17.0 | % | ||||||||||||||||||||||||||
Estimated average useful life | 8 years | Indefinite | 1 year | 2 years | — | Indefinite | |||||||||||||||||||||||||||||||
Technology | $ | 14 | $ | — | $ | 6 | $ | — | $ | — | $ | 4 | |||||||||||||||||||||||||
Discount rate used | 9.2 | % | — | 15.5 | % | — | — | 17.0 | % | ||||||||||||||||||||||||||||
Estimated average useful life | 8 years | — | 5 years | — | — | 5 years | |||||||||||||||||||||||||||||||
Total intangible assets | $ | 405 | $ | 623 | $ | 111 | $ | 31 | $ | 76 | $ | 141 | |||||||||||||||||||||||||
December 31, 2017 | ||||
(in millions) | ||||
Receivables, net | $ | 27 | ||
Property and equipment, net | 21 | |||
Goodwill (1) | 202 | |||
Intangible assets, net | 38 | |||
Other assets | 9 | |||
Total assets held for sale | $ | 297 | ||
Deferred tax liabilities | $ | 16 | ||
Other current liabilities | 29 | |||
Total liabilities held for sale | $ | 45 |
Market Services | Corporate Services | Information Services | Market Technology | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance at December 31, 2016 | $ | 3,390 | $ | 674 | $ | 1,806 | $ | 157 | $ | 6,027 | |||||||||
Goodwill acquired | — | — | 453 | 13 | 466 | ||||||||||||||
Measurement period adjustment | — | (7 | ) | — | — | (7 | ) | ||||||||||||
Foreign currency translation adjustment | 156 | 25 | 103 | 18 | 302 | ||||||||||||||
Goodwill reclassified as held for sale(1) | — | (202 | ) | — | — | (202 | ) | ||||||||||||
Balance at December 31, 2017 | $ | 3,546 | $ | 490 | $ | 2,362 | $ | 188 | $ | 6,586 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Weighted-Average Useful Life (in Years) | Gross Amount | Accumulated Amortization | Net Amount | Weighted-Average Useful Life (in Years) | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||
Finite-Lived Intangible Assets | |||||||||||||||||||||||||||
Technology | $ | 65 | $ | (22 | ) | $ | 43 | 8 | $ | 38 | $ | (24 | ) | $ | 14 | 5 | |||||||||||
Customer relationships | 1,708 | (526 | ) | 1,182 | 18 | 1,394 | (464 | ) | 930 | 18 | |||||||||||||||||
Other | 17 | (4 | ) | 13 | 8 | 7 | (6 | ) | 1 | 6 | |||||||||||||||||
Foreign currency translation adjustment | (111 | ) | 46 | (65 | ) | (160 | ) | 58 | (102 | ) | |||||||||||||||||
Total finite-lived intangible assets | $ | 1,679 | $ | (506 | ) | $ | 1,173 | $ | 1,279 | $ | (436 | ) | $ | 843 | |||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||||||||||||
Exchange and clearing registrations | $ | 1,257 | $ | — | $ | 1,257 | $ | 1,257 | $ | — | $ | 1,257 | |||||||||||||||
Trade names | 129 | — | 129 | 130 | — | 130 | |||||||||||||||||||||
Licenses | 52 | — | 52 | 52 | — | 52 | |||||||||||||||||||||
Foreign currency translation adjustment | (143 | ) | — | (143 | ) | (188 | ) | — | (188 | ) | |||||||||||||||||
Total indefinite-lived intangible assets | $ | 1,295 | $ | — | $ | 1,295 | $ | 1,251 | $ | — | $ | 1,251 | |||||||||||||||
Total intangible assets | $ | 2,974 | $ | (506 | ) | $ | 2,468 | $ | 2,530 | $ | (436 | ) | $ | 2,094 | |||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | |||||||||
(in millions) | |||||||||||
Finite-lived intangible assets reclassified as held for sale: | |||||||||||
Customer relationships | $ | 54 | $ | (17 | ) | $ | 37 | ||||
Other | 2 | (1 | ) | 1 | |||||||
Total finite-lived intangible assets held for sale | $ | 56 | $ | (18 | ) | $ | 38 |
(in millions) | |||
2018 | $ | 114 | |
2019 | 99 | ||
2020 | 99 | ||
2021 | 97 | ||
2022 | 94 | ||
2023 and thereafter | 735 | ||
Total | $ | 1,238 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Market Platforms | |||||||||||||||||
Trading Services, net | $ | 1,019 | $ | 1,037 | $ | 932 | |||||||||||
Marketplace Technology | 562 | 545 | 525 | ||||||||||||||
Capital Access Platforms | |||||||||||||||||
Data & Listing Services | 729 | 680 | 574 | ||||||||||||||
Index | 486 | 459 | 324 | ||||||||||||||
Workflow & Insights | 469 | 429 | 389 | ||||||||||||||
Anti-Financial Crime | 306 | 231 | 116 | ||||||||||||||
Other revenues | 11 | 39 | 43 | ||||||||||||||
Revenues less transaction-based expenses | $ | 3,582 | $ | 3,420 | $ | 2,903 |
Market Technology | Anti-Financial Crime | Workflow & Insights | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
2023 | $ | 193 | $ | 382 | $ | 137 | $ | 712 | |||||||||||||||
2024 | 155 | 214 | 79 | 448 | |||||||||||||||||||
2025 | 127 | 90 | 30 | 247 | |||||||||||||||||||
2026 | 92 | 27 | 11 | 130 | |||||||||||||||||||
2027 | 54 | 10 | 8 | 72 | |||||||||||||||||||
2028+ | 72 | 6 | — | 78 | |||||||||||||||||||
Total | $ | 693 | $ | 729 | $ | 265 | $ | 1,687 |
(in millions) | ||||||||
Goodwill | $ | 1,882 | ||||||
Acquired Intangible Assets | 815 | |||||||
Total Net Liabilities Acquired | (46) | |||||||
Purchase Consideration | $ | 2,651 |
December 31, 2017 | December 31, 2016 | ||||||
(in millions) | |||||||
Trading securities | $ | 221 | $ | 228 | |||
Available-for-sale investment securities | 14 | 17 | |||||
Equity method investments | 131 | 124 | |||||
Cost method investments | $ | 152 | $ | 144 |
Customer Relationships | Technology | Trade Name | Total Acquired Intangible Assets | |||||||||||
Intangible asset value (in millions) | $ | 532 | $ | 246 | $ | 37 | $ | 815 | ||||||
Discount rate used | 7.5 | % | 7.5 | % | 7.5 | % | ||||||||
Estimated average useful life | 22 years | 7 years | 20 years |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Market Platforms | |||||||||||||||||
Trading Services, net | $ | 1,019 | $ | 1,037 | $ | 932 | |||||||||||
Marketplace Technology | 562 | 545 | 525 | ||||||||||||||
Capital Access Platforms | |||||||||||||||||
Data & Listing Services | 729 | 680 | 574 | ||||||||||||||
Index | 486 | 459 | 324 | ||||||||||||||
Workflow & Insights | 469 | 429 | 389 | ||||||||||||||
Anti-Financial Crime | 306 | 231 | 116 | ||||||||||||||
Other revenues | 11 | 39 | 43 | ||||||||||||||
Revenues less transaction-based expenses | $ | 3,582 | $ | 3,420 | $ | 2,903 |
Market Technology | Anti-Financial Crime | Workflow & Insights | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
2023 | $ | 193 | $ | 382 | $ | 137 | $ | 712 | |||||||||||||||
2024 | 155 | 214 | 79 | 448 | |||||||||||||||||||
2025 | 127 | 90 | 30 | 247 | |||||||||||||||||||
2026 | 92 | 27 | 11 | 130 | |||||||||||||||||||
2027 | 54 | 10 | 8 | 72 | |||||||||||||||||||
2028+ | 72 | 6 | — | 78 | |||||||||||||||||||
Total | $ | 693 | $ | 729 | $ | 265 | $ | 1,687 |
(in millions) | ||||||||
Goodwill | $ | 1,882 | ||||||
Acquired Intangible Assets | 815 | |||||||
Total Net Liabilities Acquired | (46) | |||||||
Purchase Consideration | $ | 2,651 |
Customer Relationships | Technology | Trade Name | Total Acquired Intangible Assets | |||||||||||
Intangible asset value (in millions) | $ | 532 | $ | 246 | $ | 37 | $ | 815 | ||||||
Discount rate used | 7.5 | % | 7.5 | % | 7.5 | % | ||||||||
Estimated average useful life | 22 years | 7 years | 20 years |
(in millions) | |||||
Market Platforms | |||||
Balance at December 31, 2021 | $ | 3,129 | |||
Foreign currency translation adjustments | (217) | ||||
Balance at December 31, 2022 | $ | 2,912 | |||
Capital Access Platforms | |||||
Balance at December 31, 2021 | $ | 4,292 | |||
Goodwill acquired | 40 | ||||
Foreign currency translation and other adjustments | (154) | ||||
Balance at December 31, 2022 | $ | 4,178 | |||
Anti-Financial Crime | |||||
Balance at December 31, 2021 | $ | 1,012 | |||
Foreign currency translation adjustments | (3) | ||||
Balance at December 31, 2022 | $ | 1,009 | |||
Total | |||||
Balance at December 31, 2021 | $ | 8,433 | |||
Balance at Goodwill acquired | 40 | ||||
Foreign currency translation adjustments | (374) | ||||
Balance at December 31, 2022 | $ | 8,099 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets | (in millions) | ||||||||||||||||||||||||||||||||||||||||
Gross Amount | |||||||||||||||||||||||||||||||||||||||||
Technology | $ | 304 | $ | 295 | |||||||||||||||||||||||||||||||||||||
Customer relationships | 2,005 | 2,050 | |||||||||||||||||||||||||||||||||||||||
Trade names and other | 60 | 60 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (209) | (143) | |||||||||||||||||||||||||||||||||||||||
Total gross amount | $ | 2,160 | $ | 2,262 | |||||||||||||||||||||||||||||||||||||
Accumulated Amortization | |||||||||||||||||||||||||||||||||||||||||
Technology | $ | (97) | $ | (54) | |||||||||||||||||||||||||||||||||||||
Customer relationships | (778) | (711) | |||||||||||||||||||||||||||||||||||||||
Trade names and other | (17) | (11) | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 120 | 81 | |||||||||||||||||||||||||||||||||||||||
Total accumulated amortization | $ | (772) | $ | (695) | |||||||||||||||||||||||||||||||||||||
Net Amount | |||||||||||||||||||||||||||||||||||||||||
Technology | $ | 207 | $ | 241 | |||||||||||||||||||||||||||||||||||||
Customer relationships | 1,227 | 1,339 | |||||||||||||||||||||||||||||||||||||||
Trade names and other | 43 | 49 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (89) | (62) | |||||||||||||||||||||||||||||||||||||||
Total finite-lived intangible assets | $ | 1,388 | $ | 1,567 | |||||||||||||||||||||||||||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||||||||||||||||||||||||||
Exchange and clearing registrations | $ | 1,257 | $ | 1,257 | |||||||||||||||||||||||||||||||||||||
Trade names | 121 | 121 | |||||||||||||||||||||||||||||||||||||||
Licenses | 52 | 52 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (237) | (184) | |||||||||||||||||||||||||||||||||||||||
Total indefinite-lived intangible assets | $ | 1,193 | $ | 1,246 | |||||||||||||||||||||||||||||||||||||
Total intangible assets, net | $ | 2,581 | $ | 2,813 | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Amortization expense | $ | 153 | $ | 170 | $ | 103 |
(in millions) | |||||
2023 | $ | 159 | |||
2024 | 153 | ||||
2025 | 151 | ||||
2026 | 148 | ||||
2027 | 147 | ||||
2028+ | 719 | ||||
Total | $ | 1,477 |
December 31, 2022 | December 31, 2021 | ||||||||||
(in millions) | |||||||||||
Financial investments | $ | 181 | $ | 208 | |||||||
Equity method investments | 390 | 363 | |||||||||
Equity securities | 86 | 67 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||
2017 | 2016 | 2022 | 2021 | |||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Data processing equipment and software | $ | 626 | $ | 665 | Data processing equipment and software | $ | 786 | $ | 735 | |||||||||
Furniture, equipment and leasehold improvements | 279 | 254 | Furniture, equipment and leasehold improvements | 305 | 288 | |||||||||||||
Total property and equipment | 905 | 919 | Total property and equipment | 1,091 | 1,023 | |||||||||||||
Less: accumulated depreciation and amortization | (505 | ) | (557 | ) | ||||||||||||||
Less: accumulated depreciation and amortization and impairment charges | Less: accumulated depreciation and amortization and impairment charges | (559) | (514) | |||||||||||||||
Total property and equipment, net | $ | 400 | $ | 362 | Total property and equipment, net | $ | 532 | $ | 509 |
Balance at December 31, 2021 | Additions | Revenue Recognized | Adjustments | Balance at December 31, 2022 | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Market Platforms: | |||||||||||||||||||||||||||||||||||||||||
Market Technology | $ | 36 | $ | 28 | $ | (30) | $ | (5) | $ | 29 | |||||||||||||||||||||||||||||||
Capital Access Platforms: | |||||||||||||||||||||||||||||||||||||||||
Initial Listing | 145 | 25 | (51) | (3) | 116 | ||||||||||||||||||||||||||||||||||||
Annual Listings | 2 | 3 | (2) | (1) | 2 | ||||||||||||||||||||||||||||||||||||
Workflow & Insights | 159 | 166 | (152) | (1) | 172 | ||||||||||||||||||||||||||||||||||||
Anti-Financial Crime | 81 | 106 | (79) | — | 108 | ||||||||||||||||||||||||||||||||||||
Other | 25 | 12 | (13) | (3) | 21 | ||||||||||||||||||||||||||||||||||||
Total | $ | 448 | $ | 340 | $ | (327) | $ | (13) | $ | 448 | |||||||||||||||||||||||||||||||
Initial Listing Revenues | Listing of Additional Shares Revenues | Annual Renewal and Other Revenues | Market Technology Revenues | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance at January 1, 2017 | $ | 54 | $ | 37 | $ | 57 | $ | 185 | $ | 333 | |||||||||
Additions | 18 | 11 | 569 | 208 | 806 | ||||||||||||||
Revenue recognized | (17 | ) | (22 | ) | (544 | ) | (240 | ) | (823 | ) | |||||||||
Translation adjustment | — | — | 1 | 20 | 21 | ||||||||||||||
Deferred revenue reclassified as held for sale(1) | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Balance at December 31, 2017 | $ | 55 | $ | 26 | $ | 81 | $ | 173 | $ | 335 | |||||||||
Balance at January 1, 2016 | $ | 59 | $ | 53 | $ | 28 | $ | 187 | $ | 327 | |||||||||
Additions | 13 | 12 | 606 | 233 | 864 | ||||||||||||||
Revenue recognized | (18 | ) | (28 | ) | (576 | ) | (227 | ) | (849 | ) | |||||||||
Translation adjustment | — | — | (1 | ) | (8 | ) | (9 | ) | |||||||||||
Balance at December 31, 2016 | $ | 54 | $ | 37 | $ | 57 | $ | 185 | $ | 333 | |||||||||
Initial Listing Revenues | Listing of Additional Shares Revenues | Annual Renewal and Other Revenues | Market Technology Revenues | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Fiscal year ended: | |||||||||||||||||||
2018 | $ | 17 | $ | 13 | $ | 79 | $ | 80 | $ | 189 | |||||||||
2019 | 15 | 7 | 2 | 35 | 59 | ||||||||||||||
2020 | 11 | 5 | — | 33 | 49 | ||||||||||||||
2021 | 7 | 1 | — | 15 | 23 | ||||||||||||||
2022 | 4 | — | — | 3 | 7 | ||||||||||||||
2023 and thereafter | 1 | — | — | 7 | 8 | ||||||||||||||
$ | 55 | $ | 26 | $ | 81 | $ | 173 | $ | 335 | ||||||||||
Fiscal year ended: | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ | Total | ||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Market Platforms: | |||||||||||||||||||||||||||||||||||||||||
Market Technology | $ | 28 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 29 | |||||||||||||||||||||||||||
Capital Access Platforms: | |||||||||||||||||||||||||||||||||||||||||
Initial Listings | 40 | 30 | 20 | 17 | 8 | 1 | 116 | ||||||||||||||||||||||||||||||||||
Annual Listings | 2 | — | — | — | — | — | 2 | ||||||||||||||||||||||||||||||||||
Workflow & Insights | 169 | 3 | — | — | — | — | 172 | ||||||||||||||||||||||||||||||||||
Anti-Financial Crime | 106 | 2 | — | — | — | — | 108 | ||||||||||||||||||||||||||||||||||
Other | 12 | 5 | 3 | 1 | — | — | 21 | ||||||||||||||||||||||||||||||||||
Total | $ | 357 | $ | 41 | $ | 23 | $ | 18 | $ | 8 | $ | 1 | $ | 448 | |||||||||||||||||||||||||||
December 31, 2021 | Additions | Payments, Foreign Currency Translation and Accretion | December 31, 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Short-term debt: | |||||||||||||||||||||||
Commercial paper | $ | 420 | $ | 3,685 | $ | (3,441) | $ | 664 | |||||||||||||||
2022 Notes | 598 | — | (598) | — | |||||||||||||||||||
2024 Notes | 499 | — | (499) | — | |||||||||||||||||||
Total short-term debt | $ | 1,517 | $ | 3,685 | $ | (4,538) | $ | 664 | |||||||||||||||
Long-term debt - senior unsecured notes: | |||||||||||||||||||||||
2026 Notes | 498 | — | — | 498 | |||||||||||||||||||
2029 Notes | 676 | — | (39) | 637 | |||||||||||||||||||
2030 Notes | 676 | — | (39) | 637 | |||||||||||||||||||
2050 Notes | 486 | — | — | 486 | |||||||||||||||||||
2031 Notes | 643 | — | 1 | 644 | |||||||||||||||||||
2040 Notes | 644 | — | — | 644 | |||||||||||||||||||
2033 Notes | 694 | — | (41) | 653 | |||||||||||||||||||
2052 Notes | — | 541 | — | 541 | |||||||||||||||||||
2022 Credit Facility | (4) | (2) | 1 | (5) | |||||||||||||||||||
Total long-term debt | $ | 4,313 | $ | 539 | $ | (117) | $ | 4,735 | |||||||||||||||
Total debt obligations | $ | 5,830 | $ | 4,224 | $ | (4,655) | $ | 5,399 |
December 31, 2016 | Additions | Payments, Accretion and Other | December 31, 2017 | ||||||||||||
(in millions) | |||||||||||||||
Short-term debt - commercial paper | $ | — | $ | 2,514 | $ | (2,034 | ) | $ | 480 | ||||||
Long-term debt: | |||||||||||||||
5.55% senior unsecured notes due January 15, 2020 | 598 | — | 1 | 599 | |||||||||||
5.25% senior unsecured notes repaid on May 26, 2017 | 369 | — | (369 | ) | — | ||||||||||
3.875% senior unsecured notes due June 7, 2021 | 625 | — | 91 | 716 | |||||||||||
4.25% senior unsecured notes due June 1, 2024 | 495 | — | 1 | 496 | |||||||||||
1.75% senior unsecured notes due May 19, 2023 | 622 | — | 90 | 712 | |||||||||||
3.85% senior unsecured notes due June 30, 2026 | 495 | — | 1 | 496 | |||||||||||
Senior unsecured floating rate notes due March 22, 2019 | — | 498 | — | 498 | |||||||||||
$400 million senior unsecured term loan facility due November 25, 2019 (average interest rate of 2.47% for the period January 1, 2017 through December 31, 2017) | 399 | — | (299 | ) | 100 | ||||||||||
$1 billion revolving credit commitment due April 25, 2022 (average interest rate of 2.66% for the period April 25, 2017 through December 31, 2017) | — | 155 | (45 | ) | 110 | ||||||||||
Total long-term debt | 3,603 | 653 | (529 | ) | 3,727 | ||||||||||
Total debt obligations | $ | 3,603 | $ | 3,167 | $ | (2,563 | ) | $ | 4,207 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in millions) | |||||||||||
Current income taxes: | |||||||||||
Federal | $ | 51 | $ | 37 | $ | 139 | |||||
State | 17 | 21 | 42 | ||||||||
Foreign | 68 | 106 | 36 | ||||||||
Total current income taxes | 136 | 164 | 217 | ||||||||
Deferred income taxes: | |||||||||||
Federal | (14 | ) | (97 | ) | (18 | ) | |||||
State | 24 | (35 | ) | (1 | ) | ||||||
Foreign | — | (4 | ) | 5 | |||||||
Total deferred income taxes | 10 | (136 | ) | (14 | ) | ||||||
Total income tax provision | $ | 146 | $ | 28 | $ | 203 |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Federal income tax provision at the statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income tax provision, net of federal effect | 2.6 | % | (6.7 | )% | 3.9 | % | ||
Change in deferred taxes due to change in law | (9.9 | )% | (1.2 | )% | 0.2 | % | ||
Excess tax benefits related to employee share-based compensation | (4.0 | )% | — | % | — | % | ||
Non-U.S. subsidiary earnings | (6.0 | )% | (7.3 | )% | (6.4 | )% | ||
Tax credits and deductions | (1.0 | )% | (5.1 | )% | (0.8 | )% | ||
Change in unrecognized tax benefits | (0.8 | )% | 4.2 | % | 0.3 | % | ||
Other, net | 0.7 | % | 1.7 | % | — | % | ||
Actual income tax provision | 16.6 | % | 20.6 | % | 32.2 | % | ||
December 31, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Deferred tax assets: | |||||||
Deferred revenues | $ | 25 | $ | 39 | |||
U.S. federal net operating loss | 1 | 2 | |||||
Foreign net operating loss | 30 | 37 | |||||
State net operating loss | 4 | 1 | |||||
Compensation and benefits | 42 | 99 | |||||
Foreign currency translation | 292 | 528 | |||||
Tax credits | 7 | 7 | |||||
Other | 20 | 34 | |||||
Gross deferred tax assets | $ | 421 | $ | 747 | |||
Deferred tax liabilities: | |||||||
Amortization of software development costs and depreciation | $ | (47 | ) | $ | (63 | ) | |
Amortization of acquired intangible assets | (510 | ) | (596 | ) | |||
Investments | (26 | ) | (37 | ) | |||
Other | (19 | ) | (24 | ) | |||
Gross deferred tax liabilities | (602 | ) | (720 | ) | |||
Net deferred tax assets before valuation allowance | (181 | ) | 27 | ||||
Less: valuation allowance | (30 | ) | (30 | ) | |||
Net deferred tax assets (liabilities) | $ | (211 | ) | $ | (3 | ) |
Jurisdiction | Amount | Expiration Date | ||||
(in millions) | ||||||
U.S. Federal NOL | $ | 1 | 2033-2035 | |||
Foreign NOL | 4 | 2018-2026 | ||||
Foreign NOL | 26 | No expiration date | ||||
State NOL | 4 | 2025-2036 | ||||
U.S. Federal Tax credits | 7 | 2018-2027 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in millions) | |||||||||||
Domestic | $ | 556 | $ | (155 | ) | $ | 393 | ||||
Foreign | 324 | 291 | 237 | ||||||||
Income before income tax provision | $ | 880 | $ | 136 | $ | 630 |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Beginning balance | $ | 48 | $ | 40 | |||
Additions as a result of tax positions taken in prior periods | 2 | 9 | |||||
Additions as a result of tax positions taken in the current period | 5 | 3 | |||||
Reductions related to settlements with taxing authorities | — | (4 | ) | ||||
Reductions as a result of lapses of the applicable statute of limitations | (10 | ) | — | ||||
Ending balance | $ | 45 | $ | 48 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Savings Plan expense | $ | 17 | $ | 14 | $ | 14 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Retirement Plans expense | $ | 24 | $ | 26 | $ | 23 |
Pension | SERP | Post-retirement | Total | ||||||||||||||||||||
Fiscal Year Ended: | (in millions) | ||||||||||||||||||||||
2023 | $ | 8 | $ | 5 | $ | — | $ | 13 | |||||||||||||||
2024 | 7 | 3 | — | 10 | |||||||||||||||||||
2025 | 7 | 3 | — | 10 | |||||||||||||||||||
2026 | 8 | 2 | — | 10 | |||||||||||||||||||
2027 | 8 | 2 | — | 10 | |||||||||||||||||||
2028 through 2032 | 33 | 7 | 2 | 42 | |||||||||||||||||||
$ | 71 | $ | 22 | $ | 2 | $ | 95 |
Pension | SERP | Post-retirement | Total | ||||||||||||
Fiscal Year Ended: | (in millions) | ||||||||||||||
2018 | $ | 5 | $ | 2 | $ | — | $ | 7 | |||||||
2019 | 5 | 7 | — | 12 | |||||||||||
2020 | 5 | 2 | — | 7 | |||||||||||
2021 | 5 | 2 | — | 7 | |||||||||||
2022 | 6 | 2 | — | 8 | |||||||||||
2023 through 2027 | 29 | 10 | 1 | 40 | |||||||||||
$ | 55 | $ | 25 | $ | 1 | $ | 81 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in millions) | |||||||||||
Share-based compensation expense before income taxes | $ | 70 | $ | 86 | $ | 68 | |||||
Income tax benefit | (29 | ) | (35 | ) | (28 | ) | |||||
Share-based compensation expense after income taxes | $ | 41 | $ | 51 | $ | 40 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Share-based compensation expense before income taxes | $ | 106 | $ | 90 | $ | 87 | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||
Restricted Stock | Number of Awards | Weighted-Average Grant Date Fair Value | |||||||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Unvested balances at December 31, 2014 | 3,193,230 | $ | 30.99 | ||||||||||||||
Unvested at December 31, 2019 | Unvested at December 31, 2019 | 4,460,268 | $ | 25.79 | |||||||||||||
Granted | 823,950 | $ | 49.26 | Granted | 2,229,900 | 29.98 | |||||||||||
Vested | (370,998 | ) | $ | 29.90 | Vested | (1,498,071) | 24.32 | ||||||||||
Forfeited | (302,444 | ) | $ | 34.34 | Forfeited | (274,944) | 27.06 | ||||||||||
Unvested balances at December 31, 2015 | 3,343,738 | $ | 35.36 | ||||||||||||||
Unvested at December 31, 2020 | Unvested at December 31, 2020 | 4,917,153 | $ | 28.07 | |||||||||||||
Granted | 724,200 | $ | 62.91 | Granted | 1,523,235 | 50.52 | |||||||||||
Vested | (1,238,980 | ) | $ | 27.91 | Vested | (1,624,809) | 27.78 | ||||||||||
Forfeited | (268,380 | ) | $ | 43.29 | Forfeited | (416,559) | 34.04 | ||||||||||
Unvested balances at December 31, 2016 | 2,560,578 | $ | 45.92 | ||||||||||||||
Unvested at December 31, 2021 | Unvested at December 31, 2021 | 4,399,020 | $ | 35.39 | |||||||||||||
Granted | 737,864 | $ | 67.48 | Granted | 1,785,138 | 57.65 | |||||||||||
Vested | (1,102,823 | ) | $ | 38.56 | Vested | (1,525,442) | 31.22 | ||||||||||
Forfeited | (207,119 | ) | $ | 52.29 | Forfeited | (278,203) | 42.07 | ||||||||||
Unvested balances at December 31, 2017 | 1,988,500 | $ | 57.34 | ||||||||||||||
Unvested at December 31, 2022 | Unvested at December 31, 2022 | 4,380,513 | $ | 45.48 |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Weighted-average risk free interest rate | 2.61 | % | 0.33 | % | |||||||
Expected volatility | 30.04 | % | 30.30 | % | |||||||
Weighted-average grant date share price | $ | 60.55 | $ | 51.88 | |||||||
Weighted-average fair value at grant date | $ | 63.68 | $ | 72.75 |
Year Ended December 31, | |||||
2017 | 2016 | ||||
Weighted-average risk free interest rate(1) | 1.44 | % | 0.84 | % | |
Expected volatility(2) | 19.2 | % | 21.0 | % | |
Weighted-average grant date share price | $69.45 | $66.36 | |||
Weighted-average fair value at grant date | $81.57 | $93.25 |
PSUs | |||||||||||||||||||||||
One-Year Program | Three-Year Program | ||||||||||||||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Unvested at December 31, 2019 | 951,753 | $ | 26.96 | 2,392,353 | $ | 32.77 | |||||||||||||||||
Granted | 80,340 | 28.06 | 960,984 | 35.81 | |||||||||||||||||||
Vested | (415,269) | 26.03 | (902,301) | 27.19 | |||||||||||||||||||
Forfeited | (108,180) | 27.47 | (21,069) | 32.75 | |||||||||||||||||||
Unvested at December 31, 2020 | 508,644 | $ | 27.78 | 2,429,967 | $ | 36.04 | |||||||||||||||||
Granted | — | — | 1,081,707 | 58.66 | |||||||||||||||||||
Vested | (299,292) | 27.66 | (1,178,181) | 38.95 | |||||||||||||||||||
Forfeited | (60,150) | 27.76 | (41,121) | 47.43 | |||||||||||||||||||
Unvested at December 31, 2021 | 149,202 | $ | 28.01 | 2,292,372 | $ | 45.01 | |||||||||||||||||
Granted | — | — | 1,495,092 | 45.66 | |||||||||||||||||||
Vested | (142,459) | 28.02 | (1,735,842) | 32.57 | |||||||||||||||||||
Forfeited | (6,743) | 27.85 | (85,080) | 52.27 | |||||||||||||||||||
Unvested at December 31, 2022 | — | $ | — | 1,966,542 | $ | 56.44 |
PSUs | |||||||||||||
One-Year Program | Three-Year Program | ||||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested balances at December 31, 2014 | 558,040 | $ | 24.17 | 1,654,567 | $ | 35.57 | |||||||
Granted | 206,199 | $ | 48.16 | 649,626 | $ | 49.69 | |||||||
Vested | (247,273 | ) | $ | 30.51 | (837,109 | ) | $ | 22.50 | |||||
Forfeited | (92,999 | ) | $ | 34.74 | (27,366 | ) | $ | 43.49 | |||||
Unvested balances at December 31, 2015 | 423,967 | $ | 41.34 | 1,439,718 | $ | 49.41 | |||||||
Granted | 242,642 | $ | 58.33 | 761,501 | $ | 66.89 | |||||||
Vested | (242,793 | ) | $ | 39.63 | (879,926 | ) | $ | 43.81 | |||||
Forfeited | (45,050 | ) | $ | 47.72 | (6,625 | ) | $ | 69.11 | |||||
Unvested balances at December 31, 2016 | 378,766 | $ | 52.55 | 1,314,668 | $ | 63.18 | |||||||
Granted | 197,075 | $ | 65.51 | 803,712 | $ | 55.57 | |||||||
Vested | (202,073 | ) | $ | 49.93 | (1,079,925 | ) | $ | 42.83 | |||||
Forfeited | (40,764 | ) | $ | 55.92 | (28,497 | ) | $ | 87.86 | |||||
Unvested balances at December 31, 2017 | 333,004 | $ | 61.39 | 1,009,958 | $ | 78.18 |
Number of Stock Options | Weighted-Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | |||||||||||
Outstanding at December 31, 2019 | 1,137,306 | $ | 18.11 | |||||||||||
Exercised | (255,585) | 7.97 | ||||||||||||
Forfeited | (1,662) | 6.98 | ||||||||||||
Outstanding at December 31, 2020 | 880,059 | $ | 21.07 | 5.5 | $ | 20 | ||||||||
Exercised | (73,227) | 8.43 | ||||||||||||
Forfeited | (381) | 8.43 | ||||||||||||
Outstanding at December 31, 2021 | 806,451 | $ | 22.23 | 5.0 | $ | 39 | ||||||||
Granted | 613,872 | 67.49 | ||||||||||||
Outstanding at December 31, 2022 | 1,420,323 | $ | 41.79 | 6.2 | $ | 32 | ||||||||
Exercisable at December 31, 2022 | 806,451 | $ | 22.23 | 4.0 | $ | 32 |
Number of Stock Options | Weighted-Average Exercise Price | |||||
Outstanding at December 31, 2014 | 3,316,782 | $ | 27.56 | |||
Exercised | (682,054 | ) | 26.84 | |||
Forfeited | (8,241 | ) | 28.53 | |||
Outstanding at December 31, 2015 | 2,626,487 | $ | 27.74 | |||
Exercised | (1,219,820 | ) | 34.00 | |||
Forfeited | (296 | ) | 23.31 | |||
Outstanding at December 31, 2016 | 1,406,371 | $ | 22.32 | |||
Granted | 268,817 | 66.68 | ||||
Exercised | (1,102,830 | ) | 21.98 | |||
Forfeited | (978 | ) | 21.33 | |||
Outstanding at December 31, 2017 | 571,380 | $ | 43.84 | |||
Exercisable at December 31, 2017 | 302,563 | $ | 23.55 |
Outstanding | Exercisable | |||||||||||||||||||||||||||
Range of Exercise Prices | Number of Stock Options | Weighted-Average Remaining Contractual Term (in years) | Weighted-Average Exercise Price | Aggregate Intrinsic Value (in millions) | Number Exercisable | Weighted-Average Remaining Contractual Term (in years) | Weighted-Average Exercise Price | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
$17.36 | - | $19.99 | 94,265 | 2.14 | $ | 19.73 | $ | 5 | 94,265 | 2.14 | $ | 19.73 | $ | 5 | ||||||||||||||
$20.00 | - | $25.75 | 206,980 | 2.39 | 25.20 | 11 | 206,980 | 2.39 | 25.20 | 11 | ||||||||||||||||||
$25.76 | - | $66.68 | 270,135 | 8.84 | 66.53 | 3 | 1,318 | 0.48 | 36.40 | — | ||||||||||||||||||
Total | 571,380 | 5.40 | $ | 43.84 | $ | 19 | 302,563 | 2.30 | $ | 23.55 | $ | 16 | ||||||||||||||||
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Number of shares purchased by employees | 235,859 | 233,464 | 247,444 | ||||||||
Weighted-average price of shares purchased | $ | 58.26 | $ | 50.39 | $ | 40.95 | |||||
Compensation expense (in millions) | $ | 3 | $ | 4 | $ | 4 |
Year Ended December 31, | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Number of shares purchased by employees | 591,820 | 605,274 | 663,369 | |||||||||||||||||
Weighted-average price of shares purchased | $ | 43.54 | $ | 41.41 | $ | 31.93 | ||||||||||||||
Compensation expense (in millions) | $ | 8 | $ | 7 | $ | 5 |
Year Ended December 31, | ||||||||
2017 | 2016 | |||||||
Number of shares of common stock repurchased | 2,843,519 | 1,547,778 | ||||||
Average price paid per share | $ | 71.56 | $ | 64.42 | ||||
Total purchase price (in millions) | $ | 203 | $ | 100 |
Year Ended December 31, 2022 | ||||||||||||||
Number of shares of common stock repurchased | 5,465,595 | |||||||||||||
Average price paid per share | $ | 56.26 | ||||||||||||
Total purchase price (in millions) | $ | 308 |
Declaration Date | Dividend Per Common Share | Record Date | Total Amount Paid | Payment Date | ||||||||
(in millions) | ||||||||||||
January 30, 2017 | $ | 0.32 | March 17, 2017 | $ | 53 | March 31, 2017 | ||||||
April 25, 2017 | 0.38 | June 16, 2017 | 63 | June 30, 2017 | ||||||||
July 25, 2017 | 0.38 | September 15, 2017 | 64 | September 29, 2017 | ||||||||
October 24, 2017 | 0.38 | December 15, 2017 | 63 | December 29, 2017 | ||||||||
$ | 243 |
Declaration Date | Dividend Per Common Share | Record Date | Total Amount Paid | Payment Date | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
January 26, 2022 | $ | 0.18 | March 11, 2022 | $ | 88 | March 25, 2022 | ||||||||||||||||||||
April 20, 2022 | 0.20 | June 10, 2022 | 98 | June 24, 2022 | ||||||||||||||||||||||
July 19, 2022 | 0.20 | September 16, 2022 | 99 | September 30, 2022 | ||||||||||||||||||||||
October 19, 2022 | 0.20 | December 2, 2022 | 98 | December 16, 2022 | ||||||||||||||||||||||
$ | 383 |
Foreign Currency Translation Adjustments | Employee Benefit Plan Adjustments | Accumulated Other Comprehensive Loss | ||||||||||
(in millions) | ||||||||||||
Gross balance, December 31, 2016 | $ | (1,481 | ) | $ | (35 | ) | $ | (1,516 | ) | |||
Income taxes | 523 | 14 | 537 | |||||||||
Net balance, December 31, 2016 | $ | (958 | ) | $ | (21 | ) | $ | (979 | ) | |||
Gross balance, December 31, 2017 | $ | (1,268 | ) | $ | (37 | ) | $ | (1,305 | ) | |||
Income taxes | 428 | 15 | 443 | |||||||||
Net balance, December 31, 2017 | $ | (840 | ) | $ | (22 | ) | $ | (862 | ) |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Numerator: | (in millions, except share and per share amounts) | ||||||||||||||||
Net income attributable to common shareholders | $ | 1,125 | $ | 1,187 | $ | 933 | |||||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding for basic earnings per share | 492,420,787 | 497,698,377 | 493,245,573 | ||||||||||||||
Weighted-average effect of dilutive securities: | |||||||||||||||||
Employee equity awards | 5,436,778 | 7,389,189 | 6,406,596 | ||||||||||||||
Contingent issuance of common stock | — | — | 1,059,654 | ||||||||||||||
Weighted-average common shares outstanding for diluted earnings per share | 497,857,565 | 505,087,566 | 500,711,823 | ||||||||||||||
Basic and diluted earnings per share: | |||||||||||||||||
Basic earnings per share | $ | 2.28 | $ | 2.38 | $ | 1.89 | |||||||||||
Diluted earnings per share | $ | 2.26 | $ | 2.35 | $ | 1.86 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in millions, except share and per share amounts) | |||||||||||
Numerator: | |||||||||||
Net income attributable to common shareholders | $ | 734 | $ | 108 | $ | 428 | |||||
Denominator: | |||||||||||
Weighted-average common shares outstanding for basic earnings per share | 166,364,299 | 165,182,290 | 167,285,450 | ||||||||
Weighted-average effect of dilutive securities: | |||||||||||
Employee equity awards | 2,861,892 | 3,258,136 | 3,638,981 | ||||||||
Contingent issuance of common stock | 358,840 | 360,571 | 358,840 | ||||||||
Weighted-average common shares outstanding for diluted earnings per share | 169,585,031 | 168,800,997 | 171,283,271 | ||||||||
Basic and diluted earnings per share: | |||||||||||
Basic earnings per share | $ | 4.41 | $ | 0.65 | $ | 2.56 | |||||
Diluted earnings per share | $ | 4.33 | $ | 0.64 | $ | 2.50 |
December 31, 2017 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Financial investments, at fair value | $ | 235 | $ | 135 | $ | 100 | $ | — | |||||||
Default fund and margin deposit investments | 2,129 | 371 | 1,758 | — | |||||||||||
Total | $ | 2,364 | $ | 506 | $ | 1,858 | $ | — |
December 31, 2016 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Financial investments, at fair value | $ | 245 | $ | 151 | $ | 94 | $ | — | |||||||
Default fund and margin deposit investments | 1,900 | 614 | 1,286 | — | |||||||||||
Total | $ | 2,145 | $ | 765 | $ | 1,380 | $ | — |
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
European government debt securities | $ | 147 | $ | 147 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 7 | — | 7 | — | ||||||||||||||||||||||||||||||||||||||||||||||
State-owned enterprises and municipal securities | 7 | — | 7 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Swedish mortgage bonds | 20 | — | 20 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 181 | $ | 147 | $ | 34 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
European government debt securities | $ | 144 | $ | 144 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 20 | — | 20 | — | ||||||||||||||||||||||||||||||||||||||||||||||
State-owned enterprises and municipal securities | 11 | — | 11 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Swedish mortgage bonds | 21 | — | 21 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 12 | — | 12 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 208 | $ | 144 | $ | 64 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||
Cash Contributions | Non-Cash Contributions | Total Contributions | |||||||||||||||
(in millions) | |||||||||||||||||
Default fund contributions | $ | 1,345 | $ | 115 | $ | 1,460 | |||||||||||
Margin deposits | 5,676 | 7,683 | 13,359 | ||||||||||||||
Total | $ | 7,021 | $ | 7,798 | $ | 14,819 |
December 31, 2017 | |||||||||||
Cash Contributions | Non-Cash Contributions | Total Contributions | |||||||||
(in millions) | |||||||||||
Default fund contributions | $ | 360 | $ | 130 | $ | 490 | |||||
Margin deposits | 3,628 | 4,047 | 7,675 | ||||||||
Total | $ | 3,988 | $ | 4,177 | $ | 8,165 |
December 31, 2022 | December 31, 2021 | ||||||||||
(in millions) | |||||||||||
Demand deposits | $ | 4,775 | $ | 3,061 | |||||||
Central bank certificates | 1,695 | 2,013 | |||||||||
Restricted cash and cash equivalents | $ | 6,470 | $ | 5,074 | |||||||
European government debt securities | 222 | 414 | |||||||||
Reverse repurchase agreements | 192 | 152 | |||||||||
Multilateral development bank debt securities | 137 | 271 | |||||||||
Investments | $ | 551 | $ | 837 | |||||||
Total | $ | 7,021 | $ | 5,911 |
December 31, 2017 | |||
(in millions) | |||
Commodity and seafood options, futures and forwards(1)(2)(3) | $ | 524 | |
Fixed-income options and futures(1)(2) | 729 | ||
Stock options and futures(1)(2) | 132 | ||
Index options and futures(1)(2) | 111 | ||
Total | $ | 1,496 |
December 31, 2017 | December 31, 2016 | ||||
Commodity and seafood options, futures and forwards(1) | 2,824,188 | 3,530,746 | |||
Fixed-income options and futures | 20,376,383 | 14,639,065 | |||
Stock options and futures | 26,023,816 | 28,496,143 | |||
Index options and futures | 44,928,284 | 50,636,527 | |||
Total | 94,152,671 | 97,302,481 |
December 31, 2022 | |||||
(in millions) | |||||
Commodity and seafood options, futures and forwards | $ | 654 | |||
Fixed-income options and futures | 2,282 | ||||
Stock options and futures | 141 | ||||
Index options and futures | 43 | ||||
Total | $ | 3,120 |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Commodity and seafood options, futures and forwards | 288,142 | 536,252 | |||||||||
Fixed-income options and futures | 21,992,124 | 23,140,918 | |||||||||
Stock options and futures | 18,619,950 | 20,308,811 | |||||||||
Index options and futures | 45,616,647 | 37,860,187 | |||||||||
Total | 86,516,863 | 81,846,168 |
Leases | Balance Sheet Classification | December 31, 2022 | December 31, 2021 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | 444 | $ | 366 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Current lease liabilities | Other current liabilities | $ | 54 | $ | 37 | |||||||||||||||
Non-current lease liabilities | Operating lease liabilities | 452 | 386 | |||||||||||||||||
Total lease liabilities | $ | 506 | $ | 423 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Operating lease cost | $ | 75 | $ | 85 | $ | 85 | ||||||||||||||||||||||||||
Variable lease cost | 32 | 28 | 26 | |||||||||||||||||||||||||||||
Sublease income | (3) | (4) | (4) | |||||||||||||||||||||||||||||
Total lease cost | $ | 104 | $ | 109 | $ | 107 |
December 31, 2022 | ||||||||
(in millions) | ||||||||
2023 | $ | 71 | ||||||
2024 | 70 | |||||||
2025 | 60 | |||||||
2026 | 51 | |||||||
2027 | 48 | |||||||
2028+ | 314 | |||||||
Total lease payments | 614 | |||||||
Less: interest | (108) | |||||||
Present value of lease liabilities | $ | 506 |
December 31, 2022 | ||||||||
Weighted-average remaining lease term (in years) | 10.5 | |||||||
Weighted-average discount rate | 3.6 | % |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 66 | $ | 77 | $ | 77 | |||||||||||
Lease assets obtained in exchange for operating lease liabilities | $ | 137 | $ | 45 | $ | 100 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Domestic | $ | 1,216 | $ | 1,299 | $ | 898 | |||||||||||
Foreign | 259 | 235 | 314 | ||||||||||||||
Income before income tax provision | $ | 1,475 | $ | 1,534 | $ | 1,212 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Current income taxes provision: | |||||||||||||||||
Federal | $ | 170 | $ | 144 | $ | 114 | |||||||||||
State | 67 | 45 | 50 | ||||||||||||||
Foreign | 77 | 64 | 74 | ||||||||||||||
Total current income taxes provision | 314 | 253 | 238 | ||||||||||||||
Deferred income taxes provision (benefit): | |||||||||||||||||
Federal | 36 | 82 | 37 | ||||||||||||||
State | 6 | 22 | 6 | ||||||||||||||
Foreign | (4) | (10) | (2) | ||||||||||||||
Total deferred income taxes provision | 38 | 94 | 41 | ||||||||||||||
Total income tax provision | $ | 352 | $ | 347 | $ | 279 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Federal income tax provision at the statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
State income tax provision, net of federal effect | 3.8 | % | 3.9 | % | 4.2 | % | |||||||||||
Excess tax benefits related to employee share-based compensation | (0.9) | % | (1.3) | % | (0.6) | % | |||||||||||
Non-U.S. subsidiary earnings | 0.5 | % | 0.3 | % | 0.5 | % | |||||||||||
Tax credits and deductions | (0.3) | % | (0.3) | % | (0.2) | % | |||||||||||
Change in unrecognized tax benefits | 1.1 | % | 0.6 | % | (0.6) | % | |||||||||||
Other, net | (1.3) | % | (1.6) | % | (1.3) | % | |||||||||||
Actual income tax provision | 23.9 | % | 22.6 | % | 23.0 | % |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Deferred tax assets: | |||||||||||
Deferred revenues | $ | 18 | $ | 12 | |||||||
U.S. federal net operating loss | 5 | — | |||||||||
Foreign net operating loss | 12 | 4 | |||||||||
State net operating loss | 3 | 1 | |||||||||
Compensation and benefits | 42 | 32 | |||||||||
Tax credits | 3 | — | |||||||||
Federal benefit of uncertain tax positions | 9 | 6 | |||||||||
Operating lease liabilities | 118 | 99 | |||||||||
Unrealized losses | — | 2 | |||||||||
Other | 33 | 30 | |||||||||
Gross deferred tax assets | 243 | 186 | |||||||||
Less: valuation allowance | (4) | (4) | |||||||||
Total deferred tax assets, net of valuation allowance | $ | 239 | $ | 182 | |||||||
Deferred tax liabilities: | |||||||||||
Amortization of software development costs and depreciation | $ | (65) | $ | (65) | |||||||
Amortization of acquired intangible assets and goodwill | (375) | (322) | |||||||||
Investments | (105) | (99) | |||||||||
Unrealized gains | (29) | — | |||||||||
Operating lease assets | (103) | (84) | |||||||||
Other | (15) | (16) | |||||||||
Gross deferred tax liabilities | $ | (692) | $ | (586) | |||||||
Net deferred tax liabilities | $ | (453) | $ | (404) | |||||||
Reported as: | |||||||||||
Non-current deferred tax assets | $ | 3 | $ | 2 | |||||||
Deferred tax liabilities, net | (456) | (406) | |||||||||
Net deferred tax liabilities | $ | (453) | $ | (404) |
Gross Lease Commitments | Sublease Income | Net Lease Commitments | |||||||||
(in millions) | |||||||||||
Year ending December 31: | |||||||||||
2018 | $ | 90 | $ | 3 | $ | 87 | |||||
2019 | 76 | 3 | 73 | ||||||||
2020 | 70 | 3 | 67 | ||||||||
2021 | 57 | 3 | 54 | ||||||||
2022 | 51 | 3 | 48 | ||||||||
Thereafter | 113 | 3 | 110 | ||||||||
Total future minimum lease payments | $ | 457 | $ | 18 | $ | 439 |
Jurisdiction | December 31, 2021 | Expiration Date | ||||||
(in millions) | ||||||||
Foreign NOL | $ | 12 | No expiration | |||||
Federal NOL | 5 | No expiration | ||||||
State NOL | 3 | 2025-2040 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Beginning balance | $ | 57 | $ | 42 | $ | 48 | |||||||||||
Additions as a result of tax positions taken in prior periods | 13 | 16 | 9 | ||||||||||||||
Additions as a result of tax positions taken in the current period | 9 | 11 | 2 | ||||||||||||||
Reductions related to settlements with taxing authorities | (7) | (6) | (6) | ||||||||||||||
Reductions as a result of lapses of the applicable statute of limitations | (2) | (6) | (11) | ||||||||||||||
Ending balance | $ | 70 | $ | 57 | $ | 42 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Market Platforms | (in millions) | ||||||||||||||||
Total revenues | $ | 4,225 | $ | 4,048 | $ | 4,179 | |||||||||||
Transaction-based expenses | (2,644) | (2,466) | (2,722) | ||||||||||||||
Revenues less transaction-based expenses | 1,581 | 1,582 | 1,457 | ||||||||||||||
Depreciation and amortization* | 59 | 64 | 55 | ||||||||||||||
Operating income | 859 | 893 | 784 | ||||||||||||||
Purchase of property and equipment | 83 | 96 | 125 | ||||||||||||||
Capital Access Platforms | |||||||||||||||||
Total revenues | 1,684 | 1,568 | 1,287 | ||||||||||||||
Depreciation and amortization* | 36 | 34 | 30 | ||||||||||||||
Operating income | 916 | 844 | 651 | ||||||||||||||
Purchase of property and equipment | 50 | 50 | 54 | ||||||||||||||
Anti-Financial Crime | |||||||||||||||||
Total revenues | 306 | 231 | 116 | ||||||||||||||
Depreciation and amortization* | 10 | 8 | 6 | ||||||||||||||
Operating income | 80 | 44 | 35 | ||||||||||||||
Purchase of property and equipment | 19 | 17 | 9 | ||||||||||||||
Corporate Items | |||||||||||||||||
Total revenues | 11 | 39 | 43 | ||||||||||||||
Depreciation and amortization | 153 | 172 | 111 | ||||||||||||||
Operating loss | (291) | (340) | (236) | ||||||||||||||
Consolidated | |||||||||||||||||
Total revenues | $ | 6,226 | $ | 5,886 | $ | 5,625 | |||||||||||
Transaction-based expenses | (2,644) | (2,466) | (2,722) | ||||||||||||||
Revenues less transaction-based expenses | $ | 3,582 | $ | 3,420 | $ | 2,903 | |||||||||||
Depreciation and amortization | $ | 258 | $ | 278 | $ | 202 | |||||||||||
Operating income | $ | 1,564 | $ | 1,441 | $ | 1,234 | |||||||||||
Purchase of property and equipment | $ | 152 | $ | 163 | $ | 188 |
Market Services | Corporate Services | Information Services | Market Technology | Corporate Items | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
2017 | |||||||||||||||||||||||
Total revenues | $ | 2,418 | $ | 656 | $ | 588 | $ | 303 | $ | — | $ | 3,965 | |||||||||||
Transaction-based expenses | (1,537 | ) | — | — | — | — | (1,537 | ) | |||||||||||||||
Revenues less transaction-based expenses | 881 | 656 | 588 | 303 | — | 2,428 | |||||||||||||||||
Depreciation and amortization | 95 | 49 | 25 | $ | 19 | — | 188 | ||||||||||||||||
Operating income (loss) | 481 | 184 | 418 | $ | 65 | (149 | ) | 999 | |||||||||||||||
Total assets | 9,471 | 866 | 3,420 | 627 | 1,402 | 15,786 | |||||||||||||||||
Purchase of property and equipment | 59 | 41 | 10 | 34 | — | 144 | |||||||||||||||||
2016 | |||||||||||||||||||||||
Total revenues | $ | 2,255 | $ | 635 | $ | 540 | $ | 275 | $ | — | $ | 3,705 | |||||||||||
Transaction-based expenses | (1,428 | ) | — | — | — | — | (1,428 | ) | |||||||||||||||
Revenues less transaction-based expenses | 827 | 635 | 540 | 275 | — | 2,277 | |||||||||||||||||
Depreciation and amortization | 87 | 47 | 18 | 18 | — | 170 | |||||||||||||||||
Operating income (loss) | 450 | 158 | 383 | 69 | (221 | ) | 839 | ||||||||||||||||
Total assets | 8,626 | 1,263 | 2,439 | 559 | 1,263 | 14,150 | |||||||||||||||||
Purchase of property and equipment | 62 | 37 | 8 | 27 | — | 134 | |||||||||||||||||
2015 | |||||||||||||||||||||||
Total revenues | $ | 2,084 | $ | 562 | $ | 512 | $ | 245 | $ | — | $ | 3,403 | |||||||||||
Transaction-based expenses | (1,313 | ) | — | — | — | — | (1,313 | ) | |||||||||||||||
Revenues less transaction-based expenses | 771 | 562 | 512 | 245 | — | 2,090 | |||||||||||||||||
Depreciation and amortization | 64 | 42 | 14 | 18 | — | 138 | |||||||||||||||||
Operating income (loss) | 413 | 140 | 365 | 58 | (256 | ) | 720 | ||||||||||||||||
Total assets | 6,906 | 576 | 2,456 | 752 | 1,171 | 11,861 | |||||||||||||||||
Purchase of property and equipment | 53 | 38 | 11 | 31 | — | 133 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in millions) | |||||||||||
Amortization expense of acquired intangible assets | $ | 92 | $ | 82 | $ | 62 | |||||
Merger and strategic initiatives expense | 44 | 76 | 10 | ||||||||
Restructuring charges | — | 41 | 172 | ||||||||
Loss on extinguishment of debt | 10 | — | — | ||||||||
Regulatory matter | 1 | 6 | — | ||||||||
Sublease loss reserve | 2 | (1 | ) | — | |||||||
Reversal of VAT refund receivables | — | — | 12 | ||||||||
Executive compensation | — | 12 | — | ||||||||
Other | — | 5 | — | ||||||||
Total | $ | 149 | $ | 221 | $ | 256 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Revenues - divested/contributed businesses | $ | 11 | $ | 39 | $ | 43 | |||||||||||
Expenses: | |||||||||||||||||
Amortization expense of acquired intangible assets | 153 | 170 | 103 | ||||||||||||||
Merger and strategic initiatives expense | 82 | 87 | 33 | ||||||||||||||
Restructuring charges | 15 | 31 | 48 | ||||||||||||||
Regulatory matters | 1 | 33 | (6) | ||||||||||||||
Provision for notes receivable | — | — | 6 | ||||||||||||||
Extinguishment of debt | 16 | 33 | 36 | ||||||||||||||
Charitable donations | — | — | 17 | ||||||||||||||
Expenses - divested/contributed businesses | 5 | 16 | 24 | ||||||||||||||
Other | 30 | 9 | 18 | ||||||||||||||
Total expenses | 302 | 379 | 279 | ||||||||||||||
Operating loss | $ | (291) | $ | (340) | $ | (236) |
Total Revenues | Property and Equipment, Net | |||||||||||||||||
Total Revenues | Property and Equipment, Net | |||||||||||||||||
(in millions) | ||||||||||||||||||
2017: | ||||||||||||||||||
2022: | 2022: | (in millions) | ||||||||||||||||
United States | $ | 3,062 | $ | 247 | United States | $ | 5,100 | $ | 344 | |||||||||
All other countries | 903 | 153 | All other countries | 1,126 | 188 | |||||||||||||
Total | $ | 3,965 | $ | 400 | Total | $ | 6,226 | $ | 532 | |||||||||
2016: | ||||||||||||||||||
2021: | 2021: | |||||||||||||||||
United States | $ | 2,659 | $ | 244 | United States | $ | 4,822 | $ | 325 | |||||||||
All other countries | 1,046 | 118 | All other countries | 1,064 | 184 | |||||||||||||
Total | $ | 3,705 | $ | 362 | Total | $ | 5,886 | $ | 509 | |||||||||
2015: | ||||||||||||||||||
2020: | 2020: | |||||||||||||||||
United States | $ | 2,408 | $ | 217 | United States | $ | 4,662 | $ | 311 | |||||||||
All other countries | 995 | 106 | All other countries | 963 | 164 | |||||||||||||
Total | $ | 3,403 | $ | 323 | Total | $ | 5,625 | $ | 475 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(in millions) | |||||||||||||||||
Asset impairment charges | $ | 8 | $ | 4 | $ | 14 | |||||||||||
Consulting services | 3 | 19 | 22 | ||||||||||||||
Contract terminations | — | — | 3 | ||||||||||||||
Employee-related costs | 3 | 1 | 3 | ||||||||||||||
Other | 1 | 7 | 6 | ||||||||||||||
Total restructuring charges | $ | 15 | $ | 31 | $ | 48 | |||||||||||