QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period 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) |
No Changes | ||
(Former name, former address and former fiscal year, if changed since last report) |
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 July 27, 2021 | ||||||||||
Common Stock, $0.01 par value per share | shares |
Page | ||||||||
Part I. FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
June 30, 2021 | December 31, 2020 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Financial investments | |||||||||||
Receivables, net | |||||||||||
Default funds and margin deposits | |||||||||||
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 | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Market Services | $ | $ | $ | $ | |||||||||||||||||||
Corporate Platforms | |||||||||||||||||||||||
Investment Intelligence | |||||||||||||||||||||||
Market Technology | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Net income from unconsolidated investees | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax provision | |||||||||||||||||||||||
Net income attributable to Nasdaq | $ | $ | $ | $ | |||||||||||||||||||
Per share information: | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Cash dividends declared per common share | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation gains (losses) | ( | ( | |||||||||||||||||||||
Income tax benefit (expense)(1) | ( | ||||||||||||||||||||||
Foreign currency translation, net | ( | ( | |||||||||||||||||||||
Comprehensive income attributable to Nasdaq | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Shares | $ | Shares | $ | Shares | $ | Shares | $ | ||||||||||||||||||||||||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||||||||||||||||||||
Share repurchase program | ( | ( | — | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other issuances of common stock, net(1) | — | — | |||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||
Impact of adoption of | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared per common share | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||||||||||||||
Total Nasdaq stockholders’ equity | |||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||||||||||||||||||||
Net activity related to noncontrolling interests | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||||||||||||||
Total Equity | $ | $ | $ | $ |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
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 | |||||||||||
Net gain on divestiture of business | ( | ||||||||||
Net income from unconsolidated investees | ( | ( | |||||||||
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(1) | ( | ||||||||||
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 | ( | ( | |||||||||
Other investing activities | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from (repayments of) commercial paper, net | ( | ||||||||||
Repayments of borrowings under our credit commitment and debt obligations | ( | ( | |||||||||
Payment of debt extinguishment cost | ( | ||||||||||
Proceeds from issuances of long-term debt, net of issuance costs and utilization of credit commitment | |||||||||||
Repurchases of common stock | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Proceeds received from employee stock activity and other issuances | |||||||||||
Payments related to employee shares withheld for taxes | ( | ( | |||||||||
Other financing activities | |||||||||||
Net cash used in 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 and restricted cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental Disclosure Cash Flow Information | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refund(1) | $ | $ |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Market Services | Corporate Platforms | Investment Intelligence | Market Technology | Consolidated | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Transaction-based trading and clearing, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Trade management services | |||||||||||||||||||||||||||||
Listing services | |||||||||||||||||||||||||||||
IR & ESG Services | |||||||||||||||||||||||||||||
Market data | |||||||||||||||||||||||||||||
Index | |||||||||||||||||||||||||||||
Analytics | |||||||||||||||||||||||||||||
Anti Financial Crime Technology | |||||||||||||||||||||||||||||
Marketplace Infrastructure Technology | |||||||||||||||||||||||||||||
Revenues less transaction-based expenses | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Market Services | Corporate Platforms | Investment Intelligence | Market Technology | Consolidated | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Transaction-based trading and clearing, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Trade management services | |||||||||||||||||||||||||||||
Listing services | |||||||||||||||||||||||||||||
IR & ESG Services | |||||||||||||||||||||||||||||
Market data | |||||||||||||||||||||||||||||
Index | |||||||||||||||||||||||||||||
Analytics | |||||||||||||||||||||||||||||
Anti Financial Crime Technology | |||||||||||||||||||||||||||||
Marketplace Infrastructure Technology | |||||||||||||||||||||||||||||
Revenues less transaction-based expenses | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Market Services | Corporate Platforms | Investment Intelligence | Market Technology | Consolidated | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Transaction-based trading and clearing, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Trade management services | |||||||||||||||||||||||||||||
Listing services | |||||||||||||||||||||||||||||
IR & ESG Services | |||||||||||||||||||||||||||||
Market data | |||||||||||||||||||||||||||||
Index | |||||||||||||||||||||||||||||
Analytics | |||||||||||||||||||||||||||||
Anti Financial Crime Technology | |||||||||||||||||||||||||||||
Marketplace Infrastructure Technology | |||||||||||||||||||||||||||||
Revenues less transaction-based expenses | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Market Services | Corporate Platforms | Investment Intelligence | Market Technology | Consolidated | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Transaction-based trading and clearing, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Trade management services | |||||||||||||||||||||||||||||
Listing services | |||||||||||||||||||||||||||||
IR & ESG Services | |||||||||||||||||||||||||||||
Market data | |||||||||||||||||||||||||||||
Index | |||||||||||||||||||||||||||||
Analytics | |||||||||||||||||||||||||||||
Anti Financial Crime Technology | |||||||||||||||||||||||||||||
Marketplace Infrastructure Technology | |||||||||||||||||||||||||||||
Revenues less transaction-based expenses | $ | $ | $ | $ | $ |
(in millions) | |||||
Remainder of 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 and thereafter | |||||
Total | $ |
Purchase Consideration | Total Net Liabilities Acquired | Acquired Intangible Assets | Goodwill | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Verafin | $ | $ | ( | $ | $ |
Customer Relationships | Technology | Trade Name | Total Acquired Intangible Assets | |||||||||||
Intangible asset value (in millions) | $ | $ | $ | $ | ||||||||||
Discount rate used | % | % | % | |||||||||||
Estimated average useful life |
Market Services | Corporate Platforms | Investment Intelligence | Market Technology | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Goodwill acquired | |||||||||||||||||||||||||||||
Divestiture of business(1) | ( | ( | ( | ||||||||||||||||||||||||||
Other adjustments(2) | ( | ( | ( | ( | |||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets | |||||||||||||||||||||||||||||||||||
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 | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
(in millions) | |||||
Remainder of 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 and thereafter | |||||
Total | $ |
June 30, 2021 | December 31, 2020 | ||||||||||
(in millions) | |||||||||||
Financial investments | $ | $ | |||||||||
Equity method investments | $ | $ | |||||||||
Equity securities | $ | $ |
Initial Listing Revenues | Annual Listings Revenues | IR & ESG Services Revenues | Investment Intelligence Revenues | Market Technology Revenues | Other(1) | Total | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Deferred revenue billed in the current period, net of recognition(2) | |||||||||||||||||||||||||||||||||||||||||
Revenue recognized that was included in the beginning of the period | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | $ |
Initial Listing Revenues | Annual Listings Revenues | IR & ESG Services Revenues | Investment Intelligence Revenues | Market Technology Revenues | Other(1) | Total | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Fiscal year ended: | |||||||||||||||||||||||||||||||||||||||||
Remainder of 2021 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||||||||||||||||
2024 | |||||||||||||||||||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||||||||||||||
2026 and thereafter | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
December 31, 2020 | Additions | Payments, Foreign Currency Translation and Accretion | June 30, 2021 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Short-term debt - commercial paper | $ | $ | $ | ( | $ | ||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
$ | ( | ( | ( | ||||||||||||||||||||
Total long-term debt | ( | ||||||||||||||||||||||
Total debt obligations | $ | $ | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Share-based compensation expense before income taxes | $ | $ | $ | $ | |||||||||||||||||||
Income tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Share-based compensation expense after income taxes | $ | $ | $ | $ |
Restricted Stock | |||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at January 1, 2021 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at June 30, 2021 | $ |
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 January 1, 2021 | $ | $ | |||||||||||||||||||||
Granted(1) | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Unvested at June 30, 2021 | $ | $ |
Number of Stock Options | Weighted-Average Exercise Price | ||||||||||
Outstanding at January 1, 2021 | $ | ||||||||||
Exercised(1) | ( | ||||||||||
Forfeited(1) | ( | ||||||||||
Outstanding and exercisable at June 30, 2021 | $ | ||||||||||
Six Months Ended June 30, 2021 | ||||||||
Number of shares of common stock repurchased(1) | ||||||||
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 27, 2021 | $ | March 12, 2021 | $ | March 26, 2021 | ||||||||||||||||||||||
April 21, 2021 | June 11, 2021 | June 25, 2021 | ||||||||||||||||||||||||
$ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
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(1) | |||||||||||||||||||||||
Weighted-average common shares outstanding for diluted earnings per share | |||||||||||||||||||||||
Basic and diluted earnings per share: | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||
Assets at Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
European government debt securities | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||||||||||||||||||||
State owned enterprises and municipal securities | |||||||||||||||||||||||||||||||||||||||||||||||
Swedish mortgage bonds | |||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||
Cash Contributions | Non-Cash Contributions | Total Contributions | |||||||||||||||
(in millions) | |||||||||||||||||
Default fund contributions | $ | $ | $ | ||||||||||||||
Margin deposits | |||||||||||||||||
Total | $ | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||
(in millions) | |||||||||||
Demand deposits | $ | $ | |||||||||
Central bank certificates | |||||||||||
European government debt securities | |||||||||||
Reverse repurchase agreements | |||||||||||
Multilateral development bank debt securities | |||||||||||
Total | $ | $ |
June 30, 2021 | |||||
(in millions) | |||||
Commodity and seafood options, futures and forwards(1)(2)(3) | $ | ||||
Fixed-income options and futures(1)(2) | |||||
Stock options and futures(1)(2) | |||||
Index options and futures(1)(2) | |||||
Total | $ |
June 30, 2021 | June 30, 2020 | ||||||||||
Commodity and seafood options, futures and forwards(1) | |||||||||||
Fixed-income options and futures | |||||||||||
Stock options and futures | |||||||||||
Index options and futures | |||||||||||
Total |
Leases | Balance Sheet Classification | June 30, 2021 | December 31, 2020 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Current lease liabilities | $ | $ | ||||||||||||||||||
Non-current lease liabilities | Operating lease liabilities | |||||||||||||||||||
Total lease liabilities | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Operating lease cost(1) | $ | $ | $ | $ | ||||||||||||||||||||||
Variable lease cost | ||||||||||||||||||||||||||
Sublease income | ( | ( | ( | ( | ||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
June 30, 2021 | ||||||||
(in millions) | ||||||||
Remainder of 2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 and thereafter | ||||||||
Total lease payments | ||||||||
Less: interest(1) | ( | |||||||
Present value of lease liabilities(2) | $ |
June 30, 2021 | ||||||||
Weighted-average remaining lease term (in years) | ||||||||
Weighted-average discount rate | % |
Six Months End June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
(in millions) | ||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | ||||||||||||
Lease assets obtained in exchange for new operating lease liabilities | $ | $ |
Three Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
(in millions) | |||||||||||
Income tax provision | $ | $ | |||||||||
Effective tax rate | % | % | |||||||||
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
(in millions) | |||||||||||
Income tax provision | $ | $ | |||||||||
Effective tax rate | % | % |
Market Services | Corporate Platforms | Investment Intelligence | Market Technology | Corporate Items | Consolidated | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Transaction-based expenses | ( | ( | |||||||||||||||||||||||||||||||||
Revenues less transaction-based expenses | |||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Transaction-based expenses | ( | ( | |||||||||||||||||||||||||||||||||
Revenues less transaction-based expenses | |||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Transaction-based expenses | ( | ( | |||||||||||||||||||||||||||||||||
Revenues less transaction-based expenses | |||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Transaction-based expenses | ( | ( | |||||||||||||||||||||||||||||||||
Revenues less transaction-based expenses | |||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Amortization expense of acquired intangible assets | $ | $ | $ | $ | |||||||||||||||||||
Merger and strategic initiatives expense | |||||||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||
Extinguishment of debt | |||||||||||||||||||||||
Charitable donations | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Operating loss | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Asset impairment charges and accelerated depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
Consulting services | |||||||||||||||||||||||
Contract terminations | |||||||||||||||||||||||
Severance and employee-related costs | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total restructuring charges | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Market Services | ||||||||||||||||||||||||||
Equity Derivative Trading and Clearing | ||||||||||||||||||||||||||
U.S. equity options | ||||||||||||||||||||||||||
Total industry average daily volume (in millions) | 34.6 | 26.6 | 37.3 | 26.0 | ||||||||||||||||||||||
Nasdaq PHLX matched market share | 12.7 | % | 11.4 | % | 12.8 | % | 12.1 | % | ||||||||||||||||||
The Nasdaq Options Market matched market share | 8.4 | % | 10.4 | % | 8.1 | % | 10.5 | % | ||||||||||||||||||
Nasdaq BX Options matched market share | 1.1 | % | 0.2 | % | 0.9 | % | 0.2 | % | ||||||||||||||||||
Nasdaq ISE Options matched market share | 6.1 | % | 8.3 | % | 7.0 | % | 8.3 | % | ||||||||||||||||||
Nasdaq GEMX Options matched market share | 6.1 | % | 5.6 | % | 6.0 | % | 4.7 | % | ||||||||||||||||||
Nasdaq MRX Options matched market share | 1.5 | % | 0.5 | % | 1.4 | % | 0.5 | % | ||||||||||||||||||
Total matched market share executed on Nasdaq’s exchanges | 35.9 | % | 36.4 | % | 36.2 | % | 36.3 | % | ||||||||||||||||||
Nasdaq Nordic and Nasdaq Baltic options and futures | ||||||||||||||||||||||||||
Total average daily volume of options and futures contracts(1) | 262,890 | 292,551 | 311,016 | 377,201 | ||||||||||||||||||||||
Cash Equity Trading | ||||||||||||||||||||||||||
Total U.S.-listed securities | ||||||||||||||||||||||||||
Total industry average daily share volume (in billions) | 10.6 | 12.4 | 12.6 | 11.7 | ||||||||||||||||||||||
Matched share volume (in billions) | 114.2 | 142.7 | 266.8 | 269.9 | ||||||||||||||||||||||
The Nasdaq Stock Market matched market share | 15.8 | % | 16.8 | % | 15.8 | % | 16.8 | % | ||||||||||||||||||
Nasdaq BX matched market share | 0.7 | % | 0.9 | % | 0.6 | % | 1.1 | % | ||||||||||||||||||
Nasdaq PSX matched market share | 0.7 | % | 0.6 | % | 0.7 | % | 0.6 | % | ||||||||||||||||||
Total matched market share executed on Nasdaq’s exchanges | 17.2 | % | 18.3 | % | 17.1 | % | 18.5 | % | ||||||||||||||||||
Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 35.3 | % | 31.5 | % | 35.3 | % | 30.9 | % | ||||||||||||||||||
Total market share(2) | 52.5 | % | 49.8 | % | 52.4 | % | 49.4 | % | ||||||||||||||||||
Nasdaq Nordic and Nasdaq Baltic securities | ||||||||||||||||||||||||||
Average daily number of equity trades executed on Nasdaq’s exchanges | 1,019,162 | 937,245 | 1,056,726 | 980,637 | ||||||||||||||||||||||
Total average daily value of shares traded (in billions) | $ | 6.6 | $ | 5.6 | $ | 6.8 | $ | 6.0 | ||||||||||||||||||
Total market share executed on Nasdaq’s exchanges | 77.3 | % | 78.3 | % | 77.9 | % | 77.7 | % | ||||||||||||||||||
FICC | ||||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||
U.S. fixed income volume ($ billions traded) | $ | 1,799 | $ | 1,246 | $ | 4,292 | $ | 3,313 | ||||||||||||||||||
Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts | 119,198 | 116,057 | 122,606 | 115,586 | ||||||||||||||||||||||
Commodities | ||||||||||||||||||||||||||
Power contracts cleared (TWh)(3) | 206 | 184 | 456 | 475 | ||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Corporate Platforms | ||||||||||||||||||||||||||
IPOs | ||||||||||||||||||||||||||
The Nasdaq Stock Market(4) | 135 | 42 | 410 | 69 | ||||||||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 62 | 9 | 86 | 16 | ||||||||||||||||||||||
Total new listings | ||||||||||||||||||||||||||
The Nasdaq Stock Market(4) | 192 | 55 | 511 | 111 | ||||||||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(5) | 72 | 13 | 104 | 22 | ||||||||||||||||||||||
Number of listed companies | ||||||||||||||||||||||||||
The Nasdaq Stock Market(6) | 3,817 | 3,156 | 3,817 | 3,156 | ||||||||||||||||||||||
Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic(7) | 1,152 | 1,042 | 1,152 | 1,042 | ||||||||||||||||||||||
Investment Intelligence | ||||||||||||||||||||||||||
Number of licensed ETPs | 359 | 323 | 359 | 323 | ||||||||||||||||||||||
ETP AUM tracking Nasdaq indexes (in billions) | $ | 415 | $ | 272 | $ | 415 | $ | 272 | ||||||||||||||||||
TTM(8) net appreciation/ (depreciation) (in billions) | $ | 113 | $ | 34 | $ | 113 | $ | 34 | ||||||||||||||||||
TTM(8) net inflows in ETP AUM tracking Nasdaq indexes (in billions) | $ | 47 | $ | 35 | $ | 47 | $ | 35 | ||||||||||||||||||
Market Technology | ||||||||||||||||||||||||||
Order intake (in millions)(9) | $ | 119 | $ | 38 | $ | 25 | $ | 116 |
• | Trade Management Services business, excluding one-time service requests. | |||||||
• | U.S. and Nordic annual listing fees, IR and ESG products, including subscription contracts for IR Insight, Boardvantage and OneReport, and IR advisory services. | |||||||
• | Proprietary market data and index data subscriptions as well as subscription contracts for eVestment, Solovis, DWA tools and services, Nasdaq Fund Network and Quandl. Also includes guaranteed minimum on futures contracts within the Index business. | |||||||
• | Active Market Technology support and SaaS subscription contracts. |
Three Months Ended June 30, | Percentage Change | Six Months End June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | (in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||
Revenues less transaction-based expenses | $ | 846 | $ | 699 | 21.0 | % | $ | 1,697 | $ | 1,400 | 21.2 | % | ||||||||||||||||||||||||||
Operating expenses | 470 | 384 | 22.4 | % | 956 | 810 | 18.0 | % | ||||||||||||||||||||||||||||||
Operating income | 376 | 315 | 19.4 | % | 741 | 590 | 25.6 | % | ||||||||||||||||||||||||||||||
Net income attributable to Nasdaq | $ | 341 | $ | 241 | 41.5 | % | $ | 639 | $ | 444 | 43.9 | % | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 2.05 | $ | 1.45 | 41.4 | % | $ | 3.83 | $ | 2.67 | 43.4 | % | ||||||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.54 | $ | 0.49 | 10.2 | % | $ | 1.03 | $ | 0.96 | 7.3 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Market Services | $ | 878 | $ | 975 | (9.9) | % | $ | 2,017 | $ | 1,908 | 5.7 | % | ||||||||||||||||||||||||||
Transaction-based expenses | (566) | (699) | (19.0) | % | (1,367) | (1,351) | 1.2 | % | ||||||||||||||||||||||||||||||
Market Services revenues less transaction-based expenses | 312 | 276 | 13.0 | % | 650 | 557 | 16.7 | % | ||||||||||||||||||||||||||||||
Corporate Platforms | 154 | 126 | 22.2 | % | 309 | 254 | 21.7 | % | ||||||||||||||||||||||||||||||
Investment Intelligence | 263 | 213 | 23.5 | % | 521 | 424 | 22.9 | % | ||||||||||||||||||||||||||||||
Market Technology | 117 | 84 | 39.3 | % | 217 | 165 | 31.5 | % | ||||||||||||||||||||||||||||||
Total revenues less transaction-based expenses | $ | 846 | $ | 699 | 21.0 | % | $ | 1,697 | $ | 1,400 | 21.2 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Market Services Revenues: | ||||||||||||||||||||||||||||||||||||||
Equity Derivative Trading and Clearing Revenues(1) | $ | 364 | $ | 297 | 22.6 | % | $ | 785 | $ | 583 | 34.6 | % | ||||||||||||||||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||||||||||||||||||
Transaction rebates | (255) | (199) | 28.1 | % | (550) | (371) | 48.2 | % | ||||||||||||||||||||||||||||||
Brokerage, clearance and exchange fees(1) | (6) | (15) | (60.0) | % | (26) | (35) | (25.7) | % | ||||||||||||||||||||||||||||||
Equity derivative trading and clearing revenues less transaction-based expenses | 103 | 83 | 24.1 | % | 209 | 177 | 18.1 | % | ||||||||||||||||||||||||||||||
Cash Equity Trading Revenues(2) | 415 | 590 | (29.7) | % | 1,033 | 1,147 | (9.9) | % | ||||||||||||||||||||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||||||||||||||||||
Transaction rebates | (262) | (331) | (20.8) | % | (620) | (638) | (2.8) | % | ||||||||||||||||||||||||||||||
Brokerage, clearance and exchange fees(2) | (43) | (153) | (71.9) | % | (170) | (306) | (44.4) | % | ||||||||||||||||||||||||||||||
Cash equity trading revenues less transaction-based expenses | 110 | 106 | 3.8 | % | 243 | 203 | 19.7 | % | ||||||||||||||||||||||||||||||
FICC Revenues | 17 | 15 | 13.3 | % | 37 | 33 | 12.1 | % | ||||||||||||||||||||||||||||||
Transaction-based expenses: | ||||||||||||||||||||||||||||||||||||||
Brokerage, clearance and exchange fees | — | (1) | (100.0) | % | (1) | (1) | — | % | ||||||||||||||||||||||||||||||
FICC revenues less transaction-based expenses | 17 | 14 | 21.4 | % | 36 | 32 | 12.5 | % | ||||||||||||||||||||||||||||||
Trade Management Services Revenues | 82 | 73 | 12.3 | % | 162 | 145 | 11.7 | % | ||||||||||||||||||||||||||||||
Total Market Services revenues less transaction-based expenses | $ | 312 | $ | 276 | 13.0 | % | $ | 650 | $ | 557 | 16.7 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | ||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||||||||
Corporate Platforms: | |||||||||||||||||||||||||||||||||||
Listing Services | $ | 98 | $ | 74 | 32.4 | % | $ | 197 | $ | 149 | 32.2 | % | |||||||||||||||||||||||
IR & ESG Services | 56 | 52 | 7.7 | % | 112 | 105 | 6.7 | % | |||||||||||||||||||||||||||
Total Corporate Platforms | $ | 154 | $ | 126 | 22.2 | % | $ | 309 | $ | 254 | 21.7 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Investment Intelligence: | ||||||||||||||||||||||||||||||||||||||
Market Data | $ | 106 | $ | 101 | 5.0 | % | $ | 214 | $ | 198 | 8.1 | % | ||||||||||||||||||||||||||
Index | 107 | 68 | 57.4 | % | 209 | 141 | 48.2 | % | ||||||||||||||||||||||||||||||
Analytics | 50 | 44 | 13.6 | % | 98 | 85 | 15.3 | % | ||||||||||||||||||||||||||||||
Total Investment Intelligence | $ | 263 | $ | 213 | 23.5 | % | $ | 521 | $ | 424 | 22.9 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Market Technology: | (in millions) | (in millions) | ||||||||||||||||||||||||||||||||||||
Anti Financial Crime Technology | $ | 62 | $ | 33 | 87.9 | % | $ | 109 | $ | 63 | 73.0 | % | ||||||||||||||||||||||||||
Marketplace Infrastructure Technology | 55 | 51 | 7.8 | % | 108 | 102 | 5.9 | % | ||||||||||||||||||||||||||||||
Market Technology | $ | 117 | $ | 84 | 39.3 | % | $ | 217 | $ | 165 | 31.5 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 231 | $ | 189 | 22.2 | % | $ | 470 | $ | 384 | 22.4 | % | ||||||||||||||||||||||||||
Professional and contract services | 38 | 31 | 22.6 | % | 65 | 58 | 12.1 | % | ||||||||||||||||||||||||||||||
Computer operations and data communications | 46 | 35 | 31.4 | % | 90 | 70 | 28.6 | % | ||||||||||||||||||||||||||||||
Occupancy | 26 | 26 | — | % | 55 | 51 | 7.8 | % | ||||||||||||||||||||||||||||||
General, administrative and other | 12 | 25 | (52.0) | % | 24 | 86 | (72.1) | % | ||||||||||||||||||||||||||||||
Marketing and advertising | 9 | 4 | 125.0 | % | 19 | 14 | 35.7 | % | ||||||||||||||||||||||||||||||
Depreciation and amortization | 68 | 50 | 36.0 | % | 131 | 98 | 33.7 | % | ||||||||||||||||||||||||||||||
Regulatory | 7 | 7 | — | % | 14 | 14 | — | % | ||||||||||||||||||||||||||||||
Merger and strategic initiatives | 12 | 4 | 200.0 | % | 57 | 10 | 470.0 | % | ||||||||||||||||||||||||||||||
Restructuring charges | 21 | 13 | 61.5 | % | 31 | 25 | 24.0 | % | ||||||||||||||||||||||||||||||
Total operating expenses | $ | 470 | $ | 384 | 22.4 | % | $ | 956 | $ | 810 | 18.0 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Interest income | $ | — | $ | 1 | (100.0) | % | $ | 1 | $ | 3 | (66.7) | % | ||||||||||||||||||||||||||
Interest expense | (33) | (26) | 26.9 | % | (62) | (52) | 19.2 | % | ||||||||||||||||||||||||||||||
Net interest expense | (33) | (25) | 32.0 | % | (61) | (49) | 24.5 | % | ||||||||||||||||||||||||||||||
Net gain on divestiture of business | 84 | — | N/M | 84 | — | N/M | ||||||||||||||||||||||||||||||||
Other income | — | — | — | 1 | 5 | (80.0) | % | |||||||||||||||||||||||||||||||
Net income from unconsolidated investees | 27 | 26 | 3.8 | % | 84 | 43 | 95.3 | % | ||||||||||||||||||||||||||||||
Total non-operating income (expenses) | $ | 78 | $ | 1 | 7,700.0 | % | $ | 108 | $ | (1) | (10,900.0) | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Interest expense on debt | $ | 30 | $ | 24 | 25.0 | % | $ | 57 | $ | 48 | 18.8 | % | ||||||||||||||||||||||||||
Accretion of debt issuance costs and debt discount | 2 | 1 | 100.0 | % | 4 | 3 | 33.3 | % | ||||||||||||||||||||||||||||||
Other fees | 1 | 1 | — | % | 1 | 1 | — | % | ||||||||||||||||||||||||||||||
Interest expense | $ | 33 | $ | 26 | 26.9 | % | $ | 62 | $ | 52 | 19.2 | % |
Three Months Ended June 30, | Percentage Change | Six Months Ended June 30, | Percentage Change | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||||||||||||||||||
Income tax provision | $ | 113 | $ | 75 | 50.7 | % | $ | 210 | $ | 145 | 44.8 | % | ||||||||||||||||||||||||||
Effective tax rate | 24.9 | % | 23.7 | % | 24.7 | % | 24.6 | % | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months End June 30, | ||||||||||||||||||||||
2021 | 0 | 2020 | 2021 | 2020 | |||||||||||||||||||
($ in millions, except share and per share amounts) | |||||||||||||||||||||||
U.S. GAAP net income attributable to Nasdaq | $ | 341 | $ | 241 | $ | 639 | $ | 444 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Amortization expense of acquired intangible assets | 40 | 26 | 76 | 50 | |||||||||||||||||||
Merger and strategic initiatives expense | 12 | 4 | 57 | 10 | |||||||||||||||||||
Restructuring charges | 21 | 13 | 31 | 25 | |||||||||||||||||||
Net income from unconsolidated investee | (26) | (25) | (83) | (41) | |||||||||||||||||||
Net gain on divestiture of business | (84) | — | (84) | — | |||||||||||||||||||
Extinguishment of debt | — | — | — | 36 | |||||||||||||||||||
Charitable donations | — | 12 | — | 17 | |||||||||||||||||||
Other | 5 | 2 | 7 | 4 | |||||||||||||||||||
Total non-GAAP adjustments | (32) | 32 | 4 | 101 | |||||||||||||||||||
Adjustment to the income tax provision to reflect non-GAAP adjustments and other tax items | 7 | (17) | — | (36) | |||||||||||||||||||
Excess tax benefits related to employee share-based compensation | — | — | — | (3) | |||||||||||||||||||
Total non-GAAP tax adjustments | 7 | (17) | — | (39) | |||||||||||||||||||
Total non-GAAP adjustments, net of tax | (25) | 15 | 4 | 62 | |||||||||||||||||||
Non-GAAP net income attributable to Nasdaq | $ | 316 | $ | 256 | $ | 643 | $ | 506 | |||||||||||||||
Weighted-average common shares outstanding for diluted earnings per share | 166,438,157 | 166,073,354 | 166,763,396 | 166,424,676 | |||||||||||||||||||
U.S. GAAP diluted earnings per share | $ | 2.05 | $ | 1.45 | $ | 3.83 | $ | 2.67 | |||||||||||||||
Total adjustments from non-GAAP net income | (0.15) | 0.09 | 0.02 | 0.37 | |||||||||||||||||||
Non-GAAP diluted earnings per share | $ | 1.90 | $ | 1.54 | $ | 3.85 | $ | 3.04 |
June 30, 2021 | December 31, 2020 | |||||||||||||
(in millions) | ||||||||||||||
Cash and cash equivalents | $ | 390 | $ | 2,745 | ||||||||||
Restricted cash and cash equivalents | 40 | 37 | ||||||||||||
Financial investments | 235 | 195 | ||||||||||||
Total financial assets | $ | 665 | $ | 2,977 |
2021 | 2020 | ||||||||||
First quarter | $ | 0.49 | $ | 0.47 | |||||||
Second quarter | 0.54 | 0.49 | |||||||||
Total | $ | 1.03 | $ | 0.96 |
Maturity Date | June 30, 2021 | December 31, 2020 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Short-term debt - commercial paper | Weighted-average maturity of 20 days | $ | 221 | $ | — | |||||||||||||||
Long-term debt: | ||||||||||||||||||||
0.445% senior unsecured notes | December 2022 | 598 | 597 | |||||||||||||||||
1.75% senior unsecured notes | May 2023 | 709 | 730 | |||||||||||||||||
4.25% senior unsecured notes | June 2024 | 498 | 498 | |||||||||||||||||
$1.25 billion senior unsecured revolving credit facility | December 2025 | (4) | (4) | |||||||||||||||||
3.85% senior unsecured notes | June 2026 | 497 | 497 | |||||||||||||||||
1.75% senior unsecured notes | March 2029 | 705 | 726 | |||||||||||||||||
0.875% senior unsecured notes | February 2030 | 705 | 726 | |||||||||||||||||
1.650% senior unsecured notes | January 2031 | 643 | 643 | |||||||||||||||||
2.500% senior unsecured notes | December 2040 | 643 | 643 | |||||||||||||||||
3.25% senior unsecured notes | April 2050 | 486 | 485 | |||||||||||||||||
Total long-term debt | $ | 5,480 | $ | 5,541 | ||||||||||||||||
Total debt obligations | $ | 5,701 | $ | 5,541 |
Six Months Ended June 30, | Percentage Change | |||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Net cash provided by (used in): | (in millions) | |||||||||||||||||||
Operating activities | $ | 467 | $ | 821 | (43.1) | % | ||||||||||||||
Investing activities | (2,435) | (145) | 1,579.3 | % | ||||||||||||||||
Financing activities | (380) | (294) | 29.3 | % | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (4) | (3) | 33.3 | % | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (2,352) | 379 | (720.6) | % | ||||||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | 2,782 | 362 | 668.5 | % | ||||||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ | 430 | $ | 741 | (42.0) | % |
Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | ||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||
Three Months End June 30, 2021 | ||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.2052 | 0.1188 | # | N/A | N/A | |||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 6.9 | % | 6.2 | % | 4.6 | % | 82.3 | % | 100.0 | % | ||||||||||||||||||||||
Percentage of operating income | 11.0 | % | (2.1) | % | (9.0) | % | 100.1 | % | 100.0 | % | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (6) | $ | (5) | $ | (4) | $ | — | $ | (15) | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $ | (4) | $ | (1) | $ | (3) | $ | — | $ | (8) | ||||||||||||||||||||||
Euro | Swedish Krona | Other Foreign Currencies | U.S. Dollar | Total | ||||||||||||||||||||||||||||
(in millions, except currency rate) | ||||||||||||||||||||||||||||||||
Six Months End June 30, 2021 | ||||||||||||||||||||||||||||||||
Average foreign currency rate to the U.S. dollar | 1.2053 | 0.1190 | # | N/A | N/A | |||||||||||||||||||||||||||
Percentage of revenues less transaction-based expenses | 7.1 | % | 6.4 | % | 5.0 | % | 81.5 | % | 100.0 | % | ||||||||||||||||||||||
Percentage of operating income | 11.8 | % | (2.6) | % | (7.4) | % | 98.2 | % | 100.0 | % | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on revenues less transaction-based expenses | $ | (12) | $ | (11) | $ | (9) | $ | — | $ | (32) | ||||||||||||||||||||||
Impact of a 10% adverse currency fluctuation on operating income | $ | (9) | $ | (2) | $ | (5) | $ | — | $ | (16) | ||||||||||||||||||||||
Net Assets | Impact of a 10% Adverse Currency Fluctuation | |||||||||||||
(in millions) | ||||||||||||||
Swedish Krona(1) | $ | 3,451 | $ | 346 | ||||||||||
British Pound | 205 | 20 | ||||||||||||
Norwegian Krone | 173 | 17 | ||||||||||||
Canadian Dollar | 158 | 16 | ||||||||||||
Australian Dollar | 123 | 12 | ||||||||||||
Euro | 91 | 9 |
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) | ||||||||||||||||||||||
April 2021 | ||||||||||||||||||||||||||
Share repurchase program(1) | 318,459 | $ | 153.73 | 318,459 | $ | 199 | ||||||||||||||||||||
Employee transactions(2) | 46,606 | $ | 159.33 | N/A | N/A | |||||||||||||||||||||
May 2021 | ||||||||||||||||||||||||||
Share repurchase program(1) | 567,828 | $ | 162.27 | 567,828 | $ | 107 | ||||||||||||||||||||
Employee transactions(2) | 917 | $ | 164.92 | N/A | N/A | |||||||||||||||||||||
June 2021 | ||||||||||||||||||||||||||
Share repurchase program(1) | 615,644 | $ | 173.34 | 615,644 | $ | 1,459 | ||||||||||||||||||||
Employee transactions(2) | 3,353 | $ | 179.61 | N/A | N/A | |||||||||||||||||||||
Total Quarter Ended June 30, 2021 | ||||||||||||||||||||||||||
Share repurchase program | 1,501,931 | $ | 165.00 | 1,501,931 | $ | 1,459 | ||||||||||||||||||||
Employee transactions | 50,876 | $ | 160.77 | N/A | N/A |
Exhibit Number | ||||||||
101 | The following materials from the Nasdaq, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020; (ii) Condensed Consolidated Statements of Income for the three and six months end June 30, 2021 and 2020; (iii) Condensed Consolidated Statements of Comprehensive Income for the three and six months end June 30, 2021 and 2020; (iv) Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and six months end June 30, 2021 and 2020; (v) Condensed Consolidated Statements of Cash Flows for the six months end June 30, 2021 and 2020; and (vi) notes to condensed consolidated financial statements. | |||||||
104 | Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101. |
Nasdaq, Inc. | ||||||||||||||||||||
(Registrant) | ||||||||||||||||||||
Date: | August 4, 2021 | By: | /s/ Adena T. Friedman | |||||||||||||||||
Name: | Adena T. Friedman | |||||||||||||||||||
Title: | President and Chief Executive Officer | |||||||||||||||||||
Date: | August 4, 2021 | By: | /s/ Ann M. Dennison | |||||||||||||||||
Name: | Ann M. Dennison | |||||||||||||||||||
Title: | Executive Vice President and Chief Financial Officer | |||||||||||||||||||
Amended and Restated as of June 16, 2021 | |||||
/ Chief Financial Officer / Version 2.1 | |||||
Purpose & Statement Of Policy | QUESTIONS? Please contact the Office of the Corporate Secretary with questions about the policy. | ||||
Annual Non-Employee Director (“Director”) compensation consists of the following elements, each of which is discussed further below: (i) annual retainer, (ii) annual equity award, (iii) annual committee chair fees and (v) annual committee member fees. | |||||
Director compensation will be based on a compensation year in connection with the annual meeting of stockholders (the “Annual Meeting”). This enables Directors to receive equity immediately following election and appointment to the Board at the Annual Meeting. | |||||
Applicability & Scope | |||||
This Policy is applicable to all non-employee Directors of Nasdaq, Inc. | |||||
Annual Retainer |
Value of Shares Owned | |||||
Chairman of the Board | 6x Annual Board Chairman Equity Grant | ||||
All Other Directors | 2x Annual Director Equity Grant |
Award Date: April 1, 2021 | Number of Restricted Stock Units: [TOTAL_SHARES_GRANTED] | Final Vesting Date: (See below) |
Award Date: June 15, 2021 | Number of Restricted Stock Units: # OF SHARES |
Percentile Rank of the Company’s Three-Year TSR Versus the S&P 500 | Resulting Shares Earned (% of Half of Target) | ||||
≥85th Percentile | 200% | ||||
67.5th Percentile | 150% | ||||
50th Percentile | 100% | ||||
25th Percentile | 50% | ||||
15th Percentile | 30% | ||||
0 Percentile | 0% |
Percentile Rank of the Company’s Three-Year TSR Versus the Peer Group | Resulting Shares Earned (% of Half of Target) | ||||
≥85th Percentile | 200% | ||||
67.5th Percentile | 150% | ||||
50th Percentile | 100% | ||||
25th Percentile | 50% | ||||
15th Percentile | 30% | ||||
0 Percentile | 0% |
/s/ Adena T. Friedman | |||||||||||
Name: | Adena T. Friedman | ||||||||||
Title: | President and Chief Executive Officer |
/s/ Ann M. Dennison | |||||||||||
Name: | Ann M. Dennison | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
/s/ Adena T. Friedman | |||||||||||
Name: | Adena T. Friedman | ||||||||||
Title: | President and Chief Executive Officer | ||||||||||
Date: | August 4, 2021 | ||||||||||
/s/ Ann M. Dennison | |||||||||||
Name: | Ann M. Dennison | ||||||||||
Title: | Executive Vice President and Chief Financial Officer | ||||||||||
Date: | August 4, 2021 |
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