ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the fiscal year ended | ||||||||
OR | ||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period | from ________ to ________ |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Outstanding at February 13, 2024 | ||||||||||
Common Stock, $0.01 par value per share | shares |
Documents Incorporated by Reference: Certain portions of the Definitive Proxy Statement for the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K. | |||||
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Item 16. |
Operating company IPOs | 103 | ||||
SPAC IPOs | 27 | ||||
Switches from the New York Stock Exchange LLC, or NYSE, and the NYSE American LLC, or NYSE American | 18 | ||||
Upgrades from OTC | 18 | ||||
ETPs and Other Listings | 164 | ||||
Total | 330 | ||||
The Nasdaq Stock Market IPO win rates: | |||||
2023 total | 82 | % | |||
Operating companies | 81 | % |
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 2023 | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 2,000 | ||||||||||||||||||||
Employee transactions | 19,360 | $ | 48.85 | N/A | N/A | |||||||||||||||||||||
November 2023 | ||||||||||||||||||||||||||
Share repurchase program | 1,751,513 | $ | 52.36 | 1,751,513 | $ | 1,908 | ||||||||||||||||||||
Employee transactions | — | $ | — | N/A | N/A | |||||||||||||||||||||
December 2023 | ||||||||||||||||||||||||||
Share repurchase program | 333,261 | $ | 54.44 | 333,261 | $ | 1,890 | ||||||||||||||||||||
Employee transactions | 17,883 | $ | 56.22 | N/A | N/A | |||||||||||||||||||||
Total Quarter Ended December 31, 2023 | ||||||||||||||||||||||||||
Share repurchase program | 2,084,774 | $ | 52.69 | 2,084,774 | $ | 1,890 | ||||||||||||||||||||
Employee transactions | 37,243 | $ | 52.39 | N/A | N/A |
Fiscal Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||
Nasdaq, Inc. | $ | 100 | $ | 134 | $ | 169 | $ | 270 | $ | 240 | $ | 231 | |||||||||||||||||||||||
Nasdaq Composite Index | 100 | 137 | 198 | 242 | 163 | 236 | |||||||||||||||||||||||||||||
S&P 500 | 100 | 131 | 156 | 200 | 164 | 207 | |||||||||||||||||||||||||||||
New Peer Group | 100 | 125 | 139 | 188 | 167 | 193 | |||||||||||||||||||||||||||||
2022 Peer Group | 100 | 128 | 153 | 171 | 142 | 170 |
2022 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. |
Year Ended December 31, | Percentage Change | |||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
Revenues less transaction-based expenses | $ | 3,895 | $ | 3,582 | $ | 3,420 | 8.7 | % | 4.7 | % | ||||||||||
Operating expenses | 2,317 | 2,018 | 1,979 | 14.8 | % | 2.0 | % | |||||||||||||
Operating income | 1,578 | 1,564 | 1,441 | 0.9 | % | 8.5 | % | |||||||||||||
Net income attributable to Nasdaq | $ | 1,059 | $ | 1,125 | $ | 1,187 | (5.9) | % | (5.2) | % | ||||||||||
Diluted earnings per share | $ | 2.08 | $ | 2.26 | $ | 2.35 | (8.0) | % | (3.8) | % | ||||||||||
Cash dividends declared per common share | $ | 0.86 | $ | 0.78 | $ | 0.70 | 10.3 | % | 11.4 | % |
▪ | 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. | |||||||
▪ | SaaS subscription and support contracts related to Verafin, surveillance, market technology, AxiomSL, Calypso and trade management services, excluding one-time service requests. |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Capital Access Platforms | $1,770 | $1,682 | $1,566 | 5.2 | % | 7.4 | % | |||||||||||||||||||
Financial Technology | 1,099 | 864 | 772 | 27.2 | % | 11.9 | % | |||||||||||||||||||
Market Services, net | 987 | 988 | 1,005 | (0.1) | % | (1.7) | % | |||||||||||||||||||
Other revenues | 39 | 48 | 77 | (18.8) | % | (37.7) | % | |||||||||||||||||||
Total revenues less transaction-based expenses | $ | 3,895 | $ | 3,582 | $ | 3,420 | 8.7 | % | 4.7 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Data & Listing Services | $ | 749 | $ | 727 | $ | 678 | 3.0 | % | 7.2 | % | ||||||||||||||||
Index | 528 | 486 | 459 | 8.6 | % | 5.9 | % | |||||||||||||||||||
Workflow & Insights | 493 | 469 | 429 | 5.1 | % | 9.3 | % | |||||||||||||||||||
Total Capital Access Platforms | $ | 1,770 | $ | 1,682 | $ | 1,566 | 5.2 | % | 7.4 | % |
Year Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
IPOs | ||||||||||||||||||||
The Nasdaq Stock Market - operating companies | 103 | 87 | 319 | |||||||||||||||||
The Nasdaq Stock Market - SPACs | 27 | 74 | 433 | |||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 7 | 38 | 174 | |||||||||||||||||
Total new listings | ||||||||||||||||||||
The Nasdaq Stock Market | 330 | 366 | 1,000 | |||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 23 | 63 | 207 | |||||||||||||||||
Number of listed companies | ||||||||||||||||||||
The Nasdaq Stock Market | 4,044 | 4,230 | 4,178 | |||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 1,218 | 1,251 | 1,235 | |||||||||||||||||
As of December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
ARR (in millions) | $ | 682 | $ | 664 | $ | 627 |
As of or Three Months Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Number of licensed ETPs | 388 | 379 | 362 | |||||||||||||||||
TTM change in period end ETP AUM tracking Nasdaq indices (in billions) | ||||||||||||||||||||
Beginning balance | $ | 315 | $ | 424 | $ | 359 | ||||||||||||||
Net appreciation (depreciation) | 128 | (142) | 83 | |||||||||||||||||
Net impact of ETP sponsor switches | (1) | (1) | (92) | |||||||||||||||||
Net inflows | 31 | 34 | 74 | |||||||||||||||||
Ending balance | $ | 473 | $ | 315 | $ | 424 | ||||||||||||||
Quarterly average ETP AUM tracking Nasdaq indices (in billions) | $ | 436 | $ | 326 | $ | 400 | ||||||||||||||
ARR | $ | 72 | $ | 68 | $ | 67 |
As of or Three Months Ended December 31 | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
ARR | $ | 481 | $ | 458 | $ | 417 | |||||||||||
Quarterly annualized SaaS revenues | 411 | 388 | 356 |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Financial Crime Management Technology | $ | 223 | $ | 176 | $ | 104 | 26.7 | % | 69.2 | % | ||||||||||||||||
Regulatory Technology | 212 | 130 | 127 | 63.1 | % | 2.4 | % | |||||||||||||||||||
Capital Markets Technology | 664 | 558 | 541 | 19.0 | % | 3.1 | % | |||||||||||||||||||
Total Financial Technology | $ | 1,099 | $ | 864 | $ | 772 | 27.2 | % | 11.9 | % | ||||||||||||||||
As of or Twelve Months Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
ARR | $ | 226 | $ | 182 | $ | 149 | ||||||||||||||
Quarterly annualized SaaS revenues | 226 | 182 | 149 |
As of or Twelve Months Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
ARR | $ | 325 | $ | 130 | $ | 120 | ||||||||||||||
Quarterly annualized SaaS revenues | 165 | 116 | 104 |
As of or Three Months Ended December 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
ARR | $ | 799 | $ | 499 | $ | 475 | ||||||||||||||
Quarterly annualized SaaS revenues | 108 | 39 | 31 | |||||||||||||||||
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Market Services | $ | 3,156 | $ | 3,632 | $ | 3,471 | (13.1) | % | 4.6 | % | ||||||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||||||
Transaction rebates | (1,838) | (2,092) | (2,168) | (12.1) | % | (3.5) | % | |||||||||||||||||||
Brokerage, clearance and exchange fees | (331) | (552) | (298) | (40.0) | % | 85.2 | % | |||||||||||||||||||
Total Market Services, net | $ | 987 | $ | 988 | $ | 1,005 | (0.1) | % | (1.7) | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
U.S. Equity Derivative Trading | $ | 374 | $ | 371 | $ | 343 | 0.8 | % | 8.2 | % | ||||||||||||||||
Cash Equity Trading | 397 | 397 | 429 | — | % | (7.5) | % | |||||||||||||||||||
U.S. Tape plans | 141 | 149 | 155 | (5.4) | % | (3.9) | % | |||||||||||||||||||
Other | 75 | 71 | 78 | 5.6 | % | (9.0) | % | |||||||||||||||||||
Total Market Services, net | $ | 987 | $ | 988 | $ | 1,005 | (0.1) | % | (1.7) | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
U.S. Equity Derivative Trading Revenues | $ | 1,257 | $ | 1,252 | $ | 1,367 | 0.4 | % | (8.4) | % | ||||||||||||||||
Section 31 fees | 55 | 89 | 32 | (38.2) | % | 178.1 | % | |||||||||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||||||
Transaction rebates | (879) | (878) | (1,018) | 0.1 | % | (13.8) | % | |||||||||||||||||||
Section 31 fees | (55) | (89) | (32) | (38.2) | % | 178.1 | % | |||||||||||||||||||
Brokerage and clearance fees | (4) | (3) | (6) | 33.3 | % | (50.0) | % | |||||||||||||||||||
U.S. Equity derivative trading revenues, net | $ | 374 | $ | 371 | $ | 343 | 0.8 | % | 8.2 | % |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
U.S. equity options | |||||||||||||||||
Total industry average daily volume (in millions) | 40.4 | 38.2 | 37.2 | ||||||||||||||
Nasdaq PHLX matched market share | 11.3 | % | 11.6 | % | 12.4 | % | |||||||||||
The Nasdaq Options Market matched market share | 6.1 | % | 8.0 | % | 8.1 | % | |||||||||||
Nasdaq BX Options matched market share | 3.3 | % | 2.8 | % | 1.4 | % | |||||||||||
Nasdaq ISE Options matched market share | 5.9 | % | 5.7 | % | 6.6 | % | |||||||||||
Nasdaq GEMX Options matched market share | 2.4 | % | 2.3 | % | 4.3 | % | |||||||||||
Nasdaq MRX Options matched market share | 2.0 | % | 1.6 | % | 1.6 | % | |||||||||||
Total matched market share executed on Nasdaq’s exchanges | 31.0 | % | 32.0 | % | 34.4 | % |
Year Ended December 31, | Percentage Change | ||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Cash Equity Trading Revenues | $ | 1,355 | $ | 1,605 | 1,578 | (15.6) | % | 1.7 | % | ||||||||||||||||||||
Section 31 fees | 253 | 436 | 229 | (42.0) | % | 90.4 | % | ||||||||||||||||||||||
Transaction-based expenses: | |||||||||||||||||||||||||||||
Transaction rebates | (939) | (1,184) | (1,118) | (20.7) | % | 5.9 | % | ||||||||||||||||||||||
Section 31 fees | (253) | (436) | (229) | (42.0) | % | 90.4 | % | ||||||||||||||||||||||
Brokerage and clearance fees | (19) | (24) | (31) | (20.8) | % | (22.6) | % | ||||||||||||||||||||||
Cash equity trading revenues, net | $ | 397 | $ | 397 | $ | 429 | — | % | (7.5) | % |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Total U.S.-listed securities | |||||||||||||||||
Total industry average daily share volume (in billions) | 11.0 | 11.9 | 11.4 | ||||||||||||||
Matched share volume (in billions) | 455.6 | 522.8 | 491.9 | ||||||||||||||
The Nasdaq Stock Market matched market share | 15.8 | % | 16.2 | % | 15.8 | % | |||||||||||
Nasdaq BX matched market share | 0.4 | % | 0.5 | % | 0.6 | % | |||||||||||
Nasdaq PSX matched market share | 0.3 | % | 0.8 | % | 0.7 | % | |||||||||||
Total matched market share executed on Nasdaq’s exchanges | 16.5 | % | 17.5 | % | 17.1 | % | |||||||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 36.7 | % | 35.2 | % | 34.9 | % | |||||||||||
Total market share | 53.2 | % | 52.7 | % | 52.0 | % | |||||||||||
Nasdaq Nordic and Nasdaq Baltic securities | |||||||||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 666,411 | 908,813 | 1,036,523 | ||||||||||||||
Total average daily value of shares traded (in billions) | $ | 4.5 | $ | 5.4 | $ | 6.4 | |||||||||||
Total market share executed on Nasdaq’s exchanges | 71.0 | % | 71.5 | % | 76.9 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
U.S. Tape plans | $ | 141 | $ | 149 | $ | 155 | (5.4) | % | (3.9) | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Other | $ | 75 | $ | 71 | $ | 78 | 5.6 | % | (9.0) | % |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | |||||||||||||||||
Total average daily volume of options and futures contracts | 301,320 | 296,626 | 287,182 |
Year Ended December 31, | Percentage Change | ||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Compensation and benefits | $ | 1,082 | $ | 1,003 | $ | 938 | 7.9% | 6.9% | |||||||||||||||||||||
Professional and contract services | 128 | 140 | 144 | (8.6)% | (2.8)% | ||||||||||||||||||||||||
Computer operations and data communications | 233 | 207 | 186 | 12.6% | 11.3% | ||||||||||||||||||||||||
Occupancy | 129 | 104 | 109 | 24.0% | (4.6)% | ||||||||||||||||||||||||
General, administrative and other | 113 | 125 | 85 | (9.6)% | 47.1% | ||||||||||||||||||||||||
Marketing and advertising | 47 | 51 | 57 | (7.8)% | (10.5)% | ||||||||||||||||||||||||
Depreciation and amortization | 323 | 258 | 278 | 25.2% | (7.2)% | ||||||||||||||||||||||||
Regulatory | 34 | 33 | 64 | 3.0% | (48.4)% | ||||||||||||||||||||||||
Merger and strategic initiatives | 148 | 82 | 87 | 80.5% | (5.7)% | ||||||||||||||||||||||||
Restructuring charges | 80 | 15 | 31 | 433.3% | (51.6)% | ||||||||||||||||||||||||
Total operating expenses | $ | 2,317 | $ | 2,018 | $ | 1,979 | 14.8% | 2.0% |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Interest income | $ | 115 | $ | 7 | $ | 1 | 1,542.9 | % | 600.0 | % | ||||||||||||||||
Interest expense | (284) | (129) | (125) | 120.2 | % | 3.2 | % | |||||||||||||||||||
Net interest expense | (169) | (122) | (124) | 38.5 | % | (1.6) | % | |||||||||||||||||||
Net gain on divestiture of business | — | — | 84 | — | % | (100.0) | % | |||||||||||||||||||
Other income (loss) | (1) | 2 | 81 | (150.0) | % | (97.5) | % | |||||||||||||||||||
Net income (loss) from unconsolidated investees | (7) | 31 | 52 | (122.6) | % | (40.4) | % | |||||||||||||||||||
Total non-operating income (expenses) | $ | (177) | $ | (89) | $ | 93 | 98.9 | % | (195.7) | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Interest expense on debt | $ | 272 | $ | 120 | $ | 115 | 126.7 | % | 4.3 | % | ||||||||||||||||
Accretion of debt issuance costs and debt discount | 9 | 7 | 7 | 28.6 | % | — | % | |||||||||||||||||||
Other fees | 3 | 2 | 3 | 50.0 | % | (33.3) | % | |||||||||||||||||||
Interest expense | $ | 284 | $ | 129 | $ | 125 | 120.2 | % | 3.2 | % |
Year Ended December 31, | Percentage Change | |||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 vs. 2022 | 2022 vs. 2021 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Income tax provision | $ | 344 | $ | 352 | $ | 347 | (2.3) | % | 1.4 | % | ||||||||||||||||
Effective tax rate | 24.6 | % | 23.9 | % | 22.6 | % |
Year Ended December 31, | |||||||||||
2023 | 2022 | 2021 | |||||||||
(in millions, except per share amounts) | |||||||||||
U.S. GAAP net income attributable to Nasdaq | $ | 1,059 | $ | 1,125 | $ | 1,187 | |||||
Non-GAAP adjustments: | |||||||||||
Amortization expense of acquired intangible assets | 206 | 153 | 170 | ||||||||
Merger and strategic initiatives expense | 148 | 82 | 87 | ||||||||
Restructuring charges | 80 | 15 | 31 | ||||||||
Lease asset impairments | 25 | — | — | ||||||||
Extinguishment of debt | — | 16 | 33 | ||||||||
Net loss (income) from unconsolidated investees | 7 | (29) | (52) | ||||||||
Legal and regulatory matters | 12 | 26 | 44 | ||||||||
Net gain on divestiture of business | — | — | (84) | ||||||||
Pension settlement charge | 9 | — | — | ||||||||
Other | 21 | 2 | (82) | ||||||||
Total non-GAAP adjustments | 508 | 265 | 147 | ||||||||
Total non-GAAP tax adjustments | (134) | (66) | (61) | ||||||||
Total non-GAAP adjustments, net of tax | 374 | 199 | 86 | ||||||||
Non-GAAP net income attributable to Nasdaq | $ | 1,433 | $ | 1,324 | $ | 1,273 | |||||
U.S. GAAP effective tax rate | 24.6 | % | 23.9 | % | 22.6 | % | |||||
Total adjustments from non-GAAP tax rate | 0.4 | % | 0.1 | % | 1.7 | % | |||||
Non-GAAP effective tax rate | 25.0 | % | 24.0 | % | 24.3 | % | |||||
Weighted-average common shares outstanding for diluted earnings per share | 508.4 | 497.9 | 505.1 | ||||||||
U.S. GAAP diluted earnings per share | $ | 2.08 | $ | 2.26 | $ | 2.35 | |||||
Total adjustments from non-GAAP net income | 0.74 | 0.40 | 0.17 | ||||||||
Non-GAAP diluted earnings per share | $ | 2.82 | $ | 2.66 | $ | 2.52 |
December 31, 2023 | December 31, 2022 | |||||||||||||
(in millions) | ||||||||||||||
Cash and cash equivalents | $ | 453 | $ | 502 | ||||||||||
Financial investments | 188 | 181 | ||||||||||||
Working capital | 71 | (231) |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Net cash provided by (used in): | (in millions) | ||||||||||||||||
Operating activities | $ | 1,696 | $ | 1,706 | $ | 1,083 | |||||||||||
Investing activities | (5,994) | 49 | (2,653) | ||||||||||||||
Financing activities | 4,220 | 1,036 | 1,418 |
2023 | 2022 | ||||||||||
First quarter | $ | 0.20 | $ | 0.18 | |||||||
Second quarter | 0.22 | 0.20 | |||||||||
Third quarter | 0.22 | 0.20 | |||||||||
Fourth quarter | 0.22 | 0.20 | |||||||||
Total | $ | 0.86 | $ | 0.78 |
Maturity Date | December 31, 2023 | December 31, 2022 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Short-term debt: | ||||||||||||||||||||
Commercial paper | $ | 291 | $ | 664 | ||||||||||||||||
Total short-term debt | $ | 291 | $ | 664 | ||||||||||||||||
Long-term debt - senior unsecured notes: | ||||||||||||||||||||
2025 Notes | June 2025 | 497 | — | |||||||||||||||||
2026 Notes | June 2026 | 499 | 498 | |||||||||||||||||
2028 Notes | June 2028 | 991 | — | |||||||||||||||||
2029 Notes | March 2029 | 658 | 637 | |||||||||||||||||
2030 Notes | February 2030 | 658 | 637 | |||||||||||||||||
2031 Notes | January 2031 | 645 | 644 | |||||||||||||||||
2032 Notes | February 2032 | 819 | — | |||||||||||||||||
2033 Notes | July 2033 | 674 | 653 | |||||||||||||||||
2034 Notes | February 2034 | 1,239 | — | |||||||||||||||||
2040 Notes | December 2040 | 644 | 644 | |||||||||||||||||
2050 Notes | April 2050 | 487 | 486 | |||||||||||||||||
2052 Notes | March 2052 | 541 | 541 | |||||||||||||||||
2053 Notes | August 2053 | 738 | — | |||||||||||||||||
2063 Notes | June 2063 | 738 | — | |||||||||||||||||
2023 Term Loan | November 2026 | 339 | — | |||||||||||||||||
2022 Revolving Credit Facility | December 2027 | (4) | (5) | |||||||||||||||||
Total long-term debt | $ | 10,163 | $ | 4,735 | ||||||||||||||||
Total debt obligations | $ | 10,454 | $ | 5,399 |
Payments Due by Period | |||||||||||||||||
(in millions) | Total | <1 year | 1-3 years | 3-5 years | 5+ years | ||||||||||||
Debt obligation by contractual maturity | $ | 16,759 | $ | 714 | $ | 2,103 | $ | 1,651 | $ | 12,291 | |||||||
Operating lease obligations | 616 | 84 | 133 | 113 | 286 | ||||||||||||
Purchase obligations | 442 | 92 | 130 | 92 | 128 | ||||||||||||
Total | $ | 17,817 | $ | 890 | $ | 2,366 | $ | 1,856 | $ | 12,705 |
Euro | Swedish Krona | Canadian Dollar | Other Foreign Currencies | U.S. Dollar | Total | |||||||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.081 | 0.094 | 0.741 | # | N/A | N/A | ||||||||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 6.6% | 4.0% | 0.8% | 3.0% | 85.6% | 100.0% | ||||||||||||||||||||||||||||||||
Percentage of operating income | 10.7% | (3.8)% | (7.0)% | (8.3)% | 108.4% | 100.0% | ||||||||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $(26) | $(15) | $(3) | $(12) | $— | |||||||||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $(17) | $(6) | $(11) | $(13) | $— |
Euro | Swedish Krona | Canadian Dollar | Other Foreign Currencies | U.S. Dollar | Total | |||||||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.054 | 0.099 | 0.768 | # | N/A | N/A | ||||||||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 6.2% | 5.1% | 0.9% | 3.2% | 84.6% | 100.0% | ||||||||||||||||||||||||||||||||
Percentage of operating income | 10.1% | (2.8)% | (5.9)% | (4.7)% | 103.3% | 100.0% | ||||||||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $(22) | $(18) | $(3) | $(12) | $— | |||||||||||||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $(16) | $(4) | $(9) | $(8) | $— | |||||||||||||||||||||||||||||||||
Net Assets | Impact of a 10% Adverse Currency Fluctuation | |||||||||||||
(in millions) | ||||||||||||||
Swedish Krona | $ | 3,012 | $ | 301 | ||||||||||
Norwegian Krone | 144 | 14 | ||||||||||||
British Pound | 140 | 14 | ||||||||||||
Canadian Dollar | 102 | 10 | ||||||||||||
Australian Dollar | 96 | 10 | ||||||||||||
Euro | 60 | 6 |
October 1, 2023 | |||||
(in millions) | |||||
Market Platforms | $ | 2,845 | |||
Capital Access Platforms | 4,138 | ||||
Anti-Financial Crime | 1,005 | ||||
$ | 7,988 |
October 1, 2023 | |||||
(in millions) | |||||
Capital Access Platforms | $ | 4,138 | |||
Financial Technology | 1,922 | ||||
Market Services | 1,928 | ||||
$ | 7,988 |
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 | 36,014,602 | ||||||||||||||||
Equity compensation plans not approved by stockholders | — | — | — | |||||||||||||||||
Total | 1,420,323 | $ | 41.79 | 36,014,602 |
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). | ||||||||
Agreement and Plan of Merger, dated as of June 10, 2023, by and among Nasdaq, Inc., Argus Merger Sub 1, Inc., Argus Merger Sub 2, LLC, Adenza Holdings, Inc. and Adenza Parent, LP. (incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on June 12, 2023).† | ||||||||
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). | ||||||||
Stockholders’ Agreement, dated as of November 1, 2023, by and among Nasdaq, Inc., Adenza Parent, LP and Thoma Bravo, L.P. (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on November 3, 2023). | ||||||||
Registration Rights Agreement, dated as of November 1, 2023, by and among Nasdaq, Inc. and Adenza Parent, LP. (incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on November 3, 2023). | ||||||||
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). | ||||||||
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). | ||||||||
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 herein 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 herein by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on March 7, 2022). | ||||||||
Fourteenth Supplemental Indenture, dated as of June 28, 2023, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to 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 June 28, 2023). | ||||||||
Fifteenth Supplemental Indenture, dated as of June 28, 2023, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to 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 June 28, 2023). | ||||||||
Sixteenth Supplemental Indenture, dated as of June 28, 2023, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to 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 June 28, 2023). | ||||||||
Seventeenth Supplemental Indenture, dated as of June 28, 2023, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee (incorporated herein by reference to Exhibit 4.5 to the Current Report on Form 8-K filed on June 28, 2023). | ||||||||
Eighteenth Supplemental Indenture, dated as of June 28, 2023, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee (incorporated herein by reference to Exhibit 4.6 to the Current Report on Form 8-K filed on June 28, 2023). | ||||||||
Nineteenth Supplemental Indenture, dated as of June 28, 2023, by and between Nasdaq, Inc. and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee and HSBC Bank USA, National Association, as paying agent, registrar and transfer agent (incorporated herein by reference to Exhibit 4.7 to the Current Report on Form 8-K filed on June 28, 2023). | ||||||||
Description of Securities. | ||||||||
Amended and Restated Board Compensation Policy, effective on June 16, 2023 (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 filed on August 2, 2023).* | ||||||||
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 10.2 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 filed on August 2, 2023).* | ||||||||
Form of Nasdaq Restricted Stock Unit Award Certificate (directors) (incorporated herein by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 filed on August 2, 2023).* | ||||||||
Form of Nasdaq Three-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, 2023 filed on August 2, 2023).* | ||||||||
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 herein 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 herein 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 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).* | ||||||||
General Release and Separation Agreement by and between Nasdaq, Inc. and Ann M. Dennison, dated as of August 31, 2023 (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 filed on November 3, 2023).* | ||||||||
Employment Offer Letter by and between Nasdaq, Inc. and Sarah Youngwood, dated as of August 31, 2023 (incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 filed on November 3, 2023).* | ||||||||
Nasdaq Change in Control Severance Plan for Executive Vice Presidents and Senior Vice Presidents, effective November 26, 2013, as amended December 6, 2022 (incorporated by reference herein to Exhibit 10.19 to the Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 22, 2023.* | ||||||||
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). † | ||||||||
Amendment No. 1 to Amended and Restated Credit Agreement, dated as of March 29, 2023, among Nasdaq, Inc., the Lenders party hereto, Bank of America, N.A., as administrative agent and BofA Securities, Inc., as Sustainability Coordinator (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 30, 2023 filed on May 4, 2023).† | ||||||||
Amendment No. 2 to Amended and Restated Credit Agreement, dated as of June 16, 2023, among Nasdaq, Inc., a Delaware corporation, the lenders 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 June 20, 2023). | ||||||||
Term Loan Credit Agreement, dated as of June 28, 2023, among Nasdaq, Inc., the lenders and other parties 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 June 28, 2023).† | ||||||||
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 (incorporated by reference herein to Exhibit 10.24 to the Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 22, 2023.)* | ||||||||
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 (incorporated by reference herein to Exhibit 10.25 to the Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 22, 2023.)* | ||||||||
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. | ||||||||
Supplemental Executive Officer Recoupment Policy.* | ||||||||
101 | The following materials from the Nasdaq, Inc. Annual Report on Form 10-K for the year ended December 31, 2023, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022; (ii) Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2023, 2022 and 2021; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021; 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 21, 2024 | |||||||
By: | /s/ Adena T. Friedman | |||||||
Name: | Adena T. Friedman | |||||||
Title: | Chief Executive Officer and Chair of the Board | |||||||
By: | /s/ Sarah Youngwood | |||||||
Name: | Sarah Youngwood | |||||||
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: | Holden Spaht | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Johan Torgeby | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Toni Townes-Whitley | |||||||
Title: | Director | |||||||
By: | * | |||||||
Name: | Jeffery W. Yabuki | |||||||
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 |
Accounting for the Acquisition of Adenza | |||||
Description of the Matter | As described in Note 4 to the consolidated financial statements, during 2023 the Company completed its acquisition of Adenza, which was accounted for as a business combination for total purchase consideration of $5,750 million in cash consideration (subject to customary post-closing adjustments) and the issuance of 85,608,414 shares of Nasdaq common stock at a price of $48.71 per share. The transaction resulted in the recognition of $5,933 million of goodwill and $5,050 million of intangible assets. Intangible assets consisted of customer relationships of $3,740 million, technology of $950 million and trade names of $360 million. Auditing the Company’s accounting for its acquisition of Adenza was complex due to the significant estimation uncertainty in the Company’s determination of the fair value of identified intangible assets. The significant estimation uncertainty was primarily due to the sensitivity of the fair value of the customer relationships intangible asset to certain underlying assumptions. The Company used the income approach, specifically the excess earnings method, to measure the fair value of the customer relationships intangible asset, and the significant assumptions used in estimating its fair value included customer attrition rate, revenue growth, EBITDA margin, and the discount rate. These significant assumptions are forward looking and could be affected by future economic and market conditions. |
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 accounting for the Adenza acquisition. For example, we tested controls over the estimation process supporting the recognition and measurement of the identified intangible assets, including the customer relationships intangible asset, which encompassed testing controls over management’s review of assumptions used in the valuation model. To test the estimated fair value of the customer relationship intangible asset, we performed audit procedures that included, among others, evaluating the Company’s use of valuation methodologies, evaluating significant assumptions utilized by the Company, and evaluating the completeness and accuracy of the underlying data supporting those significant assumptions. We involved our valuation specialists to assist with our evaluation of the methodology used by the Company and significant assumptions included in the fair value estimate, including testing the customer attrition rate, revenue growth, EBITDA margin that form the basis of the forecasted results, and the discount rate. Additionally, we compared the significant assumptions to current industry, market and economic trends, to the historical results of the acquired business, and to the Company’s budgets and forecasts, in addition to performing sensitivity analyses over these assumptions. We also evaluated the adequacy of the Company’s disclosures included in Note 4 in relation to these acquisition matters. |
December 31, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Default funds and margin deposits (including restricted cash and cash equivalents of $ | |||||||||||
Financial investments | |||||||||||
Receivables, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease assets | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Section 31 fees payable to SEC | |||||||||||
Accrued personnel costs | |||||||||||
Deferred revenue | |||||||||||
Other current liabilities | |||||||||||
Default funds and margin deposits | |||||||||||
Short-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred tax liabilities, net | |||||||||||
Operating lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity | |||||||||||
Nasdaq stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Common stock in treasury, at cost: | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total Nasdaq stockholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Revenues: | |||||||||||||||||
Capital Access Platforms | $ | $ | $ | ||||||||||||||
Financial Technology | |||||||||||||||||
Market Services | |||||||||||||||||
Other revenues | |||||||||||||||||
Total revenues | |||||||||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction rebates | ( | ( | ( | ||||||||||||||
Brokerage, clearance and exchange fees | ( | ( | ( | ||||||||||||||
Revenues less transaction-based expenses | |||||||||||||||||
Operating expenses: | |||||||||||||||||
Compensation and benefits | |||||||||||||||||
Professional and contract services | |||||||||||||||||
Computer operations and data communications | |||||||||||||||||
Occupancy | |||||||||||||||||
General, administrative and other | |||||||||||||||||
Marketing and advertising | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Regulatory | |||||||||||||||||
Merger and strategic initiatives | |||||||||||||||||
Restructuring charges | |||||||||||||||||
Total operating expenses | |||||||||||||||||
Operating income | |||||||||||||||||
Interest income | |||||||||||||||||
Interest expense | ( | ( | ( | ||||||||||||||
Net gain on divestiture of business | |||||||||||||||||
Other income (loss) | ( | ||||||||||||||||
Net income (loss) from unconsolidated investees | ( | ||||||||||||||||
Income before income taxes | |||||||||||||||||
Income tax provision | |||||||||||||||||
Net income | |||||||||||||||||
Net loss attributable to noncontrolling interests | |||||||||||||||||
Net income attributable to Nasdaq | $ | $ | $ | ||||||||||||||
Per share information: | |||||||||||||||||
Basic earnings per share | $ | $ | $ | ||||||||||||||
Diluted earnings per share | $ | $ | $ | ||||||||||||||
Cash dividends declared per common share | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation gains (losses) | ( | ( | |||||||||||||||
Income tax benefit (expense)(1) | ( | ( | |||||||||||||||
Foreign currency translation, net | ( | ( | |||||||||||||||
Net unrealized gain from cash flow hedges | |||||||||||||||||
Employee benefit plan adjustment gains (losses) | ( | ||||||||||||||||
Employee benefit plan income tax provision | ( | ( | |||||||||||||||
Employee benefit plan, net | ( | ||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||
Comprehensive income | |||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | |||||||||||||||||
Comprehensive income attributable to Nasdaq | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Shares | $ | Shares | $ | Shares | $ | ||||||||||||||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||||||||
Acquisition-related stock issuance | — | — | — | — | |||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||||||||
Share repurchase program | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
ASR agreement | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisition-related stock issuance | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other issuances of common stock, net | |||||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
Common stock in treasury, at cost | |||||||||||||||||||||||||||||||||||
Beginning balance | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other employee stock activity | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Ending balance | ( | ( | ( | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||
Beginning balance | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||||||||
Ending balance | ( | ( | ( | ||||||||||||||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||||||||
Net income attributable to Nasdaq | |||||||||||||||||||||||||||||||||||
Cash dividends declared and paid | ( | ( | ( | ||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
Total Nasdaq stockholders’ equity | |||||||||||||||||||||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||||||||
Net activity related to noncontrolling interests | ( | ||||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
Total Equity | $ | $ | $ | ||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Share-based compensation | |||||||||||||||||
Deferred income taxes | |||||||||||||||||
Extinguishment of debt and bridge fees | |||||||||||||||||
Net gain on divestiture of business | ( | ||||||||||||||||
Non-cash restructuring charges | |||||||||||||||||
Net (income) loss from unconsolidated investees | ( | ( | |||||||||||||||
Operating lease asset impairments | |||||||||||||||||
Other reconciling items included in net income | |||||||||||||||||
Net change in operating assets and liabilities, net of effects of acquisitions: | |||||||||||||||||
Receivables, net | ( | ( | |||||||||||||||
Other assets | ( | ||||||||||||||||
Accounts payable and accrued expenses | ( | ||||||||||||||||
Section 31 fees payable to SEC | ( | ( | |||||||||||||||
Accrued personnel costs | |||||||||||||||||
Deferred revenue | |||||||||||||||||
Other liabilities | ( | ( | ( | ||||||||||||||
Net cash provided by operating activities | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of securities | ( | ( | ( | ||||||||||||||
Proceeds from sales and redemptions of securities | |||||||||||||||||
Proceeds from divestiture of business, net of cash divested | |||||||||||||||||
Acquisition of businesses, net of cash and cash equivalents acquired | ( | ( | ( | ||||||||||||||
Purchases of property and equipment | ( | ( | ( | ||||||||||||||
Investments related to default funds and margin deposits, net(1) | ( | ( | |||||||||||||||
Other investing activities | ( | ( | |||||||||||||||
Net cash provided by (used in) investing activities | ( | ( | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from (repayments of) commercial paper, net | ( | ||||||||||||||||
Repayments of debt and credit commitment | ( | ( | ( | ||||||||||||||
Payment of debt extinguishment cost and bridge fees | ( | ( | ( | ||||||||||||||
Proceeds from issuances of debt, net of issuance costs | |||||||||||||||||
Repurchases of common stock | ( | ( | ( | ||||||||||||||
ASR agreement | ( | ( | |||||||||||||||
Dividends paid | ( | ( | ( | ||||||||||||||
Proceeds received from employee stock activity and other issuances | |||||||||||||||||
Payments related to employee shares withheld for taxes | ( | ( | ( | ||||||||||||||
Default funds and margin deposits | |||||||||||||||||
Other financing activities | ( | ||||||||||||||||
Net cash provided by financing activities | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | ( | ( | |||||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | ( | ||||||||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at beginning of period | |||||||||||||||||
Cash and cash equivalents, restricted cash and cash equivalents at end of period | $ | $ | $ | ||||||||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash and cash equivalents | |||||||||||||||||
Restricted cash and cash equivalents (default funds and margin deposits) | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Supplemental Disclosure Cash Flow Information | |||||||||||||||||
Interest paid | $ | $ | $ | ||||||||||||||
Income taxes paid, net of refund | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Capital Access Platforms | |||||||||||||||||
Data & Listing Services | $ | $ | $ | ||||||||||||||
Index | |||||||||||||||||
Workflow & Insights | |||||||||||||||||
Financial Technology | |||||||||||||||||
Financial Crime Management Technology | |||||||||||||||||
Regulatory Technology | |||||||||||||||||
Capital Markets Technology | |||||||||||||||||
Market Services, net | |||||||||||||||||
Other revenues | |||||||||||||||||
Revenues less transaction-based expenses | $ | $ | $ |
Financial Crime Management Technology | Regulatory Technology | Capital Markets Technology | Workflow & Insights | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||
2026 | |||||||||||||||||||||||||||||
2027 | |||||||||||||||||||||||||||||
2028 | |||||||||||||||||||||||||||||
2029+ | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(in millions, except price per share) | |||||
Shares of Nasdaq common stock issued | |||||
Closing price per share of Nasdaq common stock on November 1, 2023 | $ | ||||
Fair value of equity portion of the purchase consideration | $ | ||||
Cash consideration | $ | ||||
Total purchase consideration | $ |
(in millions) | |||||
Goodwill | $ | ||||
Acquired intangible assets | |||||
Receivables, net | |||||
Other net assets acquired | |||||
Cash and cash equivalents | |||||
Accrued personnel costs | ( | ||||
Deferred revenue | ( | ||||
Deferred tax liability on acquired intangible assets | ( | ||||
Total purchase consideration | $ |
Customer Relationships | Technology | Trade Names | Total Acquired Intangible Assets | |||||||||||
Intangible asset value (in millions) | $ | $ | $ | $ | ||||||||||
Discount rate used | % | % | % | |||||||||||
Estimated average useful life |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Pro forma revenues less transaction-based expenses | $ | $ | |||||||||
Pro forma operating income | |||||||||||
Pro forma net income attributable to Nasdaq |
(in millions) | |||||
Capital Access Platforms | |||||
Balance at December 31, 2022 | $ | ||||
Foreign currency translation adjustments | |||||
Balance at December 31, 2023 | $ | ||||
Financial Technology | |||||
Balance at December 31, 2022 | $ | ||||
Goodwill acquired | |||||
Foreign currency translation adjustments | |||||
Balance at December 31, 2023 | $ | ||||
Market Services | |||||
Balance at December 31, 2022 | $ | ||||
Foreign currency translation adjustments | |||||
Balance at December 31, 2023 | $ | ||||
Total | |||||
Balance at December 31, 2022 | $ | ||||
Goodwill acquired | |||||
Foreign currency translation adjustments | |||||
Balance at December 31, 2023 | $ |
December 31, 2023 | December 31, 2022 | ||||||||||
Finite-Lived Intangible Assets | (in millions) | ||||||||||
Gross Amount | |||||||||||
Technology | $ | $ | |||||||||
Customer relationships | |||||||||||
Trade names and other | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total gross amount | $ | $ | |||||||||
Accumulated Amortization | |||||||||||
Technology | $ | ( | $ | ( | |||||||
Customer relationships | ( | ( | |||||||||
Trade names and other | ( | ( | |||||||||
Foreign currency translation adjustment | |||||||||||
Total accumulated amortization | $ | ( | $ | ( | |||||||
Net Amount | |||||||||||
Technology | $ | $ | |||||||||
Customer relationships | |||||||||||
Trade names and other | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total finite-lived intangible assets | $ | $ | |||||||||
Indefinite-Lived Intangible Assets | |||||||||||
Exchange and clearing registrations | $ | $ | |||||||||
Trade names | |||||||||||
Licenses | |||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Total indefinite-lived intangible assets | $ | $ | |||||||||
Total intangible assets, net | $ | $ | |||||||||
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Amortization expense | $ | $ | $ |
(in millions) | |||||
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029+ | |||||
Total | $ |
December 31, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Financial investments | $ | $ | |||||||||
Equity method investments | |||||||||||
Equity securities |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Data processing equipment and software | $ | $ | |||||||||
Furniture, equipment and leasehold improvements | |||||||||||
Total property and equipment | |||||||||||
Less: accumulated depreciation and amortization and impairment charges | ( | ( | |||||||||
Total property and equipment, net | $ | $ |
Balance at December 31, 2022 | Additions | Revenue Recognized | Adjustments | Balance at December 31, 2023 | |||||||||||||
(in millions) | |||||||||||||||||
Capital Access Platforms: | |||||||||||||||||
Initial Listings | $ | $ | $ | ( | $ | $ | |||||||||||
Annual Listings | ( | ||||||||||||||||
Workflow & Insights | ( | ||||||||||||||||
Financial Technology: | |||||||||||||||||
Financial Crime Management Technology | ( | ||||||||||||||||
Regulatory Technology | ( | ||||||||||||||||
Capital Markets Technology | ( | ||||||||||||||||
Other | ( | ||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | |||||||||||
Fiscal year ended: | 2024 | 2025 | 2026 | 2027 | 2028 | 2029+ | Total | ||||||||||||||||
(in millions) | |||||||||||||||||||||||
Capital Access Platforms: | |||||||||||||||||||||||
Initial Listings | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Annual Listings | |||||||||||||||||||||||
Workflow & Insights | |||||||||||||||||||||||
Financial Technology: | |||||||||||||||||||||||
Financial Crime Management Technology | |||||||||||||||||||||||
Regulatory Technology | |||||||||||||||||||||||
Capital Markets Technology | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
December 31, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Short-term debt: | |||||||||||
Commercial paper | $ | $ | |||||||||
Long-term debt - senior unsecured notes: | |||||||||||
2025 Notes, $ | |||||||||||
2026 Notes, $ | |||||||||||
2028 Notes, $ due June 28, 2028 | |||||||||||
2029 Notes, € | |||||||||||
2030 Notes, € | |||||||||||
2031 Notes, $ | |||||||||||
2032 Notes, € | |||||||||||
2033 Notes, € | |||||||||||
2034 Notes $ | |||||||||||
2040 Notes, $ | |||||||||||
2050 Notes, $ | |||||||||||
2052 Notes, $ | |||||||||||
2053 Notes, $ | |||||||||||
2063 Notes, $ | |||||||||||
2023 Term Loan | |||||||||||
2022 Revolving Credit Facility | ( | ( | |||||||||
Total long-term debt | $ | $ | |||||||||
Total debt obligations | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Savings Plan expense | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Retirement Plans expense | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Share-based compensation expense before income taxes | $ | $ | $ |
Restricted Stock | |||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2020 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at December 31, 2021 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at December 31, 2023 | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Weighted-average risk-free interest rate | % | % | |||||||||
Expected volatility | % | % | |||||||||
Weighted-average grant date share price | $ | $ | |||||||||
Weighted-average fair value at grant date | $ | $ |
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, 2020 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Unvested at December 31, 2021 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Unvested at December 31, 2022 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Unvested at December 31, 2023 | $ | $ |
Number of Stock Options | Weighted-Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | |||||||||||
Outstanding at December 31, 2020 | $ | |||||||||||||
Exercised | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Outstanding at December 31, 2021 | $ | $ | ||||||||||||
Granted | ||||||||||||||
Outstanding at December 31, 2022 | $ | $ | ||||||||||||
Outstanding at December 31, 2023 | $ | $ | ||||||||||||
Exercisable at December 31, 2023 | $ | $ |
Year Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Number of shares purchased by employees | ||||||||||||||||||||
Weighted-average price of shares purchased | $ | $ | $ | |||||||||||||||||
Compensation expense (in millions) | $ | $ | $ |
Year Ended December 31, 2023 | ||||||||
Number of shares of common stock repurchased | ||||||||
Average price paid per share | $ | |||||||
Total purchase price (in millions) | $ |
Declaration Date | Dividend Per Common Share | Record Date | Total Amount Paid | Payment Date | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
January 24, 2023 | $ | March 17, 2023 | $ | March 31, 2023 | ||||||||||||||||||||||
April 18, 2023 | June 16, 2023 | June 30, 2023 | ||||||||||||||||||||||||
July 18, 2023 | September 15, 2023 | September 29, 2023 | ||||||||||||||||||||||||
October 17, 2023 | December 8, 2023 | December 22, 2023 | ||||||||||||||||||||||||
$ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Numerator: | (in millions, except share and per share amounts) | ||||||||||||||||
Net income attributable to common shareholders | $ | $ | $ | ||||||||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding for basic earnings per share | |||||||||||||||||
Weighted-average effect of dilutive securities - Employee equity awards | |||||||||||||||||
Weighted-average common shares outstanding for diluted earnings per share | |||||||||||||||||
Basic and diluted earnings per share: | |||||||||||||||||
Basic earnings per share | $ | $ | $ | ||||||||||||||
Diluted earnings per share | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
State-owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | |||||||||||||||||||
State-owned enterprises and municipal securities | |||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||
Cash Contributions | Non-Cash Contributions | Total Contributions | |||||||||||||||
(in millions) | |||||||||||||||||
Default fund contributions | $ | $ | $ | ||||||||||||||
Margin deposits | |||||||||||||||||
Total | $ | $ | $ |
December 31, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Demand deposits | $ | $ | |||||||||
Central bank certificates | |||||||||||
Restricted cash and cash equivalents | $ | $ | |||||||||
European government debt securities | |||||||||||
Reverse repurchase agreements | |||||||||||
Multilateral development bank debt securities | |||||||||||
Investments | $ | $ | |||||||||
Total | $ | $ |
December 31, 2023 | |||||
(in millions) | |||||
Commodity and seafood options, futures and forwards | $ | ||||
Fixed-income options and futures | |||||
Stock options and futures | |||||
Index options and futures | |||||
Total | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Commodity and seafood options, futures and forwards | |||||||||||
Fixed-income options and futures | |||||||||||
Stock options and futures | |||||||||||
Index options and futures | |||||||||||
Total |
Leases | Balance Sheet Classification | December 31, 2023 | December 31, 2022 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Current lease liabilities | $ | $ | ||||||||||||||||||
Non-current lease liabilities | Operating lease liabilities | |||||||||||||||||||
Total lease liabilities | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Operating lease cost | $ | $ | $ | ||||||||||||||
Variable lease cost | |||||||||||||||||
Sublease income | ( | ( | ( | ||||||||||||||
Total lease cost | $ | $ | $ |
December 31, 2023 | ||||||||
(in millions) | ||||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029+ | ||||||||
Total lease payments | ||||||||
Less: interest | ( | |||||||
Present value of lease liabilities | $ |
December 31, 2023 | ||||||||
Weighted-average remaining lease term (in years) | ||||||||
Weighted-average discount rate | % |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | $ | ||||||||||||||
Lease assets obtained in exchange for operating lease liabilities | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Domestic | $ | $ | $ | ||||||||||||||
Foreign | |||||||||||||||||
Income before income tax provision | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Current income taxes provision: | |||||||||||||||||
Federal | $ | $ | $ | ||||||||||||||
State | |||||||||||||||||
Foreign | |||||||||||||||||
Total current income taxes provision | |||||||||||||||||
Deferred income taxes provision (benefit): | |||||||||||||||||
Federal | |||||||||||||||||
State | |||||||||||||||||
Foreign | ( | ( | |||||||||||||||
Total deferred income taxes provision | |||||||||||||||||
Total income tax provision | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Federal income tax provision at the statutory rate | % | % | % | ||||||||||||||
State income tax provision, net of federal effect | % | % | % | ||||||||||||||
Deduction for foreign derived intangible income | ( | % | ( | % | ( | % | |||||||||||
Excess tax benefits related to employee share-based compensation | ( | % | ( | % | ( | % | |||||||||||
Non-U.S. subsidiary earnings | % | % | % | ||||||||||||||
Tax credits and deductions | ( | % | ( | % | ( | % | |||||||||||
Change in unrecognized tax benefits | % | % | % | ||||||||||||||
Other, net | ( | % | ( | % | ( | % | |||||||||||
Actual income tax provision | % | % | % |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Deferred tax assets: | |||||||||||
Deferred revenues | $ | $ | |||||||||
U.S. federal net operating loss | |||||||||||
Foreign net operating loss | |||||||||||
State net operating loss | |||||||||||
Compensation and benefits | |||||||||||
Deferred interest expense | |||||||||||
Tax credits | |||||||||||
Federal benefit of uncertain tax positions | |||||||||||
Operating lease liabilities | |||||||||||
Other | |||||||||||
Gross deferred tax assets | |||||||||||
Less: valuation allowance | ( | ( | |||||||||
Total deferred tax assets, net of valuation allowance | $ | $ | |||||||||
Deferred tax liabilities: | |||||||||||
Amortization of software development costs and depreciation | $ | ( | $ | ( | |||||||
Amortization of acquired intangible assets and goodwill | ( | ( | |||||||||
Investments | ( | ( | |||||||||
Unrealized gains | ( | ( | |||||||||
Operating lease assets | ( | ( | |||||||||
Other | ( | ( | |||||||||
Gross deferred tax liabilities | $ | ( | $ | ( | |||||||
Net deferred tax liabilities | $ | ( | $ | ( | |||||||
Reported as: | |||||||||||
Non-current deferred tax assets | $ | $ | |||||||||
Deferred tax liabilities, net | ( | ( | |||||||||
Net deferred tax liabilities | $ | ( | $ | ( |
Jurisdiction | December 31, 2023 | Expiration Date | ||||||
(in millions) | ||||||||
Foreign NOL | $ | 2039-2043 | ||||||
U.S. state and local NOL | 2025-2042 |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Beginning balance | $ | $ | $ | ||||||||||||||
Additions as a result of tax positions taken in prior periods | |||||||||||||||||
Additions as a result of tax positions taken in the current period | |||||||||||||||||
Reductions related to settlements with taxing authorities | ( | ( | ( | ||||||||||||||
Reductions as a result of lapses of the applicable statute of limitations | ( | ( | ( | ||||||||||||||
Ending balance | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Capital Access Platforms | |||||||||||||||||
Total revenues | $ | $ | $ | ||||||||||||||
Depreciation and amortization* | |||||||||||||||||
Operating income | |||||||||||||||||
Purchase of property and equipment | |||||||||||||||||
Financial Technology | |||||||||||||||||
Total revenues | |||||||||||||||||
Depreciation and amortization* | |||||||||||||||||
Operating income | |||||||||||||||||
Purchase of property and equipment | |||||||||||||||||
Market Services | |||||||||||||||||
Total revenues | |||||||||||||||||
Transaction-based expenses | ( | ( | ( | ||||||||||||||
Revenues less transaction-based expenses | |||||||||||||||||
Depreciation and amortization* | |||||||||||||||||
Operating income | |||||||||||||||||
Purchase of property and equipment | |||||||||||||||||
Corporate Items | |||||||||||||||||
Total revenues | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Operating loss | ( | ( | ( | ||||||||||||||
Consolidated | |||||||||||||||||
Total revenues | $ | $ | $ | ||||||||||||||
Transaction-based expenses | ( | ( | ( | ||||||||||||||
Revenues less transaction-based expenses | $ | $ | $ | ||||||||||||||
Depreciation and amortization | $ | $ | $ | ||||||||||||||
Operating income | $ | $ | $ | ||||||||||||||
Purchase of property and equipment | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Revenues - divested businesses | $ | $ | $ | ||||||||||||||
Expenses: | |||||||||||||||||
Amortization expense of acquired intangible assets | |||||||||||||||||
Merger and strategic initiatives expense | |||||||||||||||||
Restructuring charges | |||||||||||||||||
Lease asset impairments | |||||||||||||||||
Legal and regulatory matters | |||||||||||||||||
Extinguishment of debt | |||||||||||||||||
Pension Settlement | |||||||||||||||||
Expenses - divested businesses | |||||||||||||||||
Other | ( | ||||||||||||||||
Total expenses | |||||||||||||||||
Operating loss | $ | ( | $ | ( | $ | ( |
Total Revenues | Property and Equipment, Net | ||||||||||
2023: | (in millions) | ||||||||||
United States | $ | $ | |||||||||
All other countries | |||||||||||
Total | $ | $ | |||||||||
2022: | |||||||||||
United States | $ | $ | |||||||||
All other countries | |||||||||||
Total | $ | $ | |||||||||
2021: | |||||||||||
United States | $ | $ | |||||||||
All other countries | |||||||||||
Total | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(in millions) | |||||||||||||||||
Asset impairment charges | |||||||||||||||||
Divisional realignment | $ | $ | $ | ||||||||||||||
2019 program | |||||||||||||||||
Consulting services | |||||||||||||||||
Adenza restructuring | |||||||||||||||||
Divisional realignment | |||||||||||||||||
2019 program | |||||||||||||||||
Employee-related costs | — | ||||||||||||||||
Adenza restructuring | |||||||||||||||||
Divisional realignment | |||||||||||||||||
2019 program | |||||||||||||||||
Other | — | — | — | ||||||||||||||
Adenza restructuring | |||||||||||||||||
Divisional realignment | |||||||||||||||||
2019 program | |||||||||||||||||
Total restructuring charges | $ | $ | $ | ||||||||||||||
Total Program Costs Incurred | |||||||||||||||||
Adenza restructuring | $ | ||||||||||||||||
Divisional realignment | $ | ||||||||||||||||
2019 program | $ |
(1) | we do not pay interest on any of the 2032 Notes within 30 days of its due date; |
(2) | we fail to pay the principal (or premium, if any) of any 2033 Note, when such principal becomes due and payable, at maturity, upon acceleration, upon redemption or otherwise; |
(3) | we fail to comply with certain covenants under the indenture; |
(4) | we remain in breach of a covenant or warranty in respect of the indenture or 2032 Notes (other than a covenant included in the indenture solely for the benefit of debt securities of another series) for 90 days after we receive a written notice of default, which notice must be sent by either the trustee or holders of at least 25% in principal amount of the outstanding 2032 Notes; |
(5) | we file for bankruptcy, or other events of bankruptcy, insolvency or reorganization specified in the indenture; |
(6) | we default on any indebtedness of ours or of a significant subsidiary having an aggregate amount of at least $200,000,000, constituting a default either of payment of principal when due and payable or which results in acceleration of the indebtedness unless the default has been cured or waived or the indebtedness discharged in full within 60 days after we have been notified of the default by the trustee or holders of at least 25% of the outstanding 2032 Notes; or |
(7) | one or more final judgments for the payment of money in an aggregate amount in excess of $200,000,000 above available insurance or indemnity coverage shall be rendered against us or any significant subsidiary and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed. |
(1) | we do not pay interest on any of the 2033 Notes within 30 days of its due date; |
(2) | we fail to pay the principal (or premium, if any) of any 2033 Note, when such principal becomes due and payable, at maturity, upon acceleration, upon redemption or otherwise; |
(3) | we fail to comply with certain covenants under the indenture; |
(4) | we remain in breach of a covenant or warranty in respect of the indenture or 2033 Notes (other than a covenant included in the indenture solely for the benefit of debt securities of another series) for 90 days after we receive a written notice of default, which notice must be sent by either the trustee or holders of at least 25% in principal amount of the outstanding 2033 Notes; |
(5) | we file for bankruptcy, or other events of bankruptcy, insolvency or reorganization specified in the indenture; |
(6) | we default on any indebtedness of ours or of a significant subsidiary having an aggregate amount of at least $200,000,000, constituting a default either of payment of principal when due and payable or which results in acceleration of the indebtedness unless the default has been cured or waived or the indebtedness discharged in full within 60 days after we have been notified of the default by the trustee or holders of at least 25% of the outstanding 2033 Notes; or |
(7) | one or more final judgments for the payment of money in an aggregate amount in excess of $200,000,000 above available insurance or indemnity coverage shall be rendered against us or any significant subsidiary and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed. |
(1) | we do not pay interest on any of the 2030 Notes within 30 days of its due date; |
(2) | we fail to pay the principal (or premium, if any) of any 2030 Note, when such principal becomes due and payable, at maturity, upon acceleration, upon redemption or otherwise; |
(3) | we fail to comply with certain covenants under the indenture; |
(4) | we remain in breach of a covenant or warranty in respect of the indenture or 2030 Notes (other than a covenant included in the indenture solely for the benefit of debt securities of another series) for 90 days after we receive a written notice of default, which notice must be sent by either the trustee or holders of at least 25% in principal amount of the outstanding 2030 Notes; |
(5) | we file for bankruptcy, or other events of bankruptcy, insolvency or reorganization specified in the indenture; |
(6) | we default on any indebtedness of ours or of a significant subsidiary having an aggregate amount of at least $150,000,000, constituting a default either of payment of principal when due and payable or which results in acceleration of the indebtedness unless the default has been cured or waived or the indebtedness discharged in full within 60 days after we have been notified of the default by the trustee or holders of at least 25% of the outstanding 2030 Notes; or |
(7) | one or more final judgments for the payment of money in an aggregate amount in excess of $150,000,000 above available insurance or indemnity coverage shall be rendered against us or any significant subsidiary and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed. |
/s/ Adena T. Friedman | |||||||||||
Name: | Adena T. Friedman | ||||||||||
Title: | Chief Executive Officer |
/s/ Sarah Youngwood | |||||||||||
Name: | Sarah Youngwood | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
/s/ Adena T. Friedman | |||||||||||
Name: | Adena T. Friedman | ||||||||||
Title: | Chief Executive Officer | ||||||||||
Date: | February 21, 2024 | ||||||||||
/s/ Sarah Youngwood | |||||||||||
Name: | Sarah Youngwood | ||||||||||
Title: | Executive Vice President and Chief Financial Officer | ||||||||||
Date: | February 21, 2024 |
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