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NASDAQ, Inc. – ‘10-Q’ for 9/30/19 – ‘R8’

On:  Wednesday, 11/6/19, at 12:54pm ET   ·   For:  9/30/19   ·   Accession #:  1120193-19-15   ·   File #:  1-38855

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  As Of               Filer                 Filing    For·On·As Docs:Size

11/06/19  NASDAQ, Inc.                      10-Q        9/30/19  119:15M

Quarterly Report   —   Form 10-Q   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML   1.95M 
 2: EX-10.1     Material Contract                                   HTML     78K 
 3: EX-31.1     Certification -- §302 - SOA'02                      HTML     37K 
 4: EX-31.2     Certification -- §302 - SOA'02                      HTML     37K 
 5: EX-32.1     Certification -- §906 - SOA'02                      HTML     36K 
68: R1          Cover Page                                          HTML     96K 
31: R2          Condensed Consolidated Balance Sheets               HTML    132K 
46: R3          Condensed Consolidated Balance Sheets               HTML     44K 
108: R4          Condensed Consolidated Statements of Income         HTML    131K  
66: R5          Condensed Consolidated Statements of Comprehensive  HTML     61K 
                Income (Loss)                                                    
29: R6          Condensed Consolidated Statements of Changes in     HTML    100K 
                Stockholders' Equity                                             
44: R7          Condensed Consolidated Statements of Cash Flows     HTML    147K 
110: R8          Organization and Nature of Operations               HTML     49K  
64: R9          Basis of Presentation and Principles of             HTML     47K 
95: R10         Significant Accounting Policies Update              HTML     86K 
81: R11         Revenue From Contracts With Customers               HTML    300K 
16: R12         Acquisitions and Divestiture                        HTML     59K 
56: R13         Assets and Liabilities Held For Sale                HTML     48K 
93: R14         Goodwill and Acquired Intangible Assets             HTML    147K 
79: R15         Investments                                         HTML     58K 
15: R16         Deferred Revenue                                    HTML    299K 
55: R17         Debt Obligations                                    HTML    104K 
96: R18         Retirement Plans                                    HTML     38K 
78: R19         Share-Based Compensation                            HTML    133K 
37: R20         Nasdaq Stockholders? Equity                         HTML     69K 
49: R21         Earnings Per Share                                  HTML     67K 
119: R22         Fair Value of Financial Instruments                 HTML     81K  
76: R23         Clearing Operations                                 HTML     93K 
36: R24         Income Taxes                                        HTML     56K 
48: R25         Commitments, Contingencies and Guarantees           HTML     53K 
118: R26         Business Segments                                   HTML    166K  
75: R27         Restructuring Charges                               HTML     41K 
34: R28         Significant Accounting Policies Update (Policies)   HTML     67K 
50: R29         Basis of Presentation and Principles of             HTML     43K 
                Consolidation (Tables)                                           
52: R30         Significant Accounting Policies Update (Tables)     HTML     83K 
11: R31         Revenue From Contracts With Customers (Tables)      HTML    215K 
83: R32         Acquisitions and Divestiture (Tables)               HTML     49K 
97: R33         Assets and Liabilities Held For Sale (Tables)       HTML     52K 
53: R34         Goodwill and Acquired Intangible Assets (Tables)    HTML    228K 
12: R35         Investments (Tables)                                HTML     44K 
84: R36         Deferred Revenue (Tables)                           HTML    111K 
98: R37         Debt Obligations (Tables)                           HTML     77K 
51: R38         Share-Based Compensation (Tables)                   HTML    124K 
13: R39         Nasdaq Stockholders? Equity (Tables)                HTML     61K 
45: R40         Earnings Per Share (Tables)                         HTML     67K 
30: R41         Fair Value of Financial Instruments (Tables)        HTML     71K 
65: R42         Clearing Operations (Tables)                        HTML     72K 
107: R43         Income Taxes (Tables)                               HTML     50K  
47: R44         Business Segments (Tables)                          HTML    161K 
32: R45         Restructuring Charges (Tables)                      HTML     41K 
67: R46         Organization and Nature of Operations (Details)     HTML     64K 
109: R47         Significant Accounting Policies Update (Narrative)  HTML     41K  
43: R48         Significant Accounting Policies Update (Summary of  HTML     41K 
                Supplemental Balance Sheet Information Related to                
                Operating Leases) (Details)                                      
33: R49         Significant Accounting Policies Update (Lease       HTML     41K 
                Cost) (Details)                                                  
23: R50         Significant Accounting Policies Update (Operating   HTML     53K 
                Lease Maturity) (Details)                                        
62: R51         Significant Accounting Policies Update (Lease       HTML     36K 
                Terms and Discount Rate) (Details)                               
100: R52         Significant Accounting Policies Update              HTML     36K  
                (Supplemental Cash Flow Information) (Details)                   
86: R53         Revenue From Contracts With Customers (Revenue by   HTML    125K 
                Product, Service and Segment) (Details)                          
22: R54         Revenue From Contracts With Customers Revenue From  HTML     44K 
                Contracts With Customers (Narrative) (Details)                   
61: R55         Revenue From Contracts With Customers (Remaining    HTML     52K 
                Performance Obligation) (Details)                                
99: R56         Acquisitions and Divestiture (2019 Divestiture and  HTML     66K 
                Acquisition) (Details)                                           
85: R57         Acquisitions and Divestiture (2018 Divestiture)     HTML     45K 
21: R58         Acquisitions and Divestiture (Intangible Assets)    HTML     46K 
63: R59         Assets and Liabilities Held For Sale (Details)      HTML     93K 
114: R60         Goodwill and Acquired Intangible Assets (Schedule   HTML     55K  
                of Changes in Goodwill) (Details)                                
74: R61         Goodwill and Acquired Intangible Assets             HTML     51K 
                (Narrative) (Details)                                            
27: R62         Goodwill and Acquired Intangible Assets             HTML     72K 
                (Finite-Lived and Indefinite-Lived Intangible                    
                Assets) (Details)                                                
42: R63         Goodwill and Acquired Intangible Assets (Estimated  HTML     48K 
                Future Amortization Expense) (Details)                           
111: R64         Investments (Schedule of Investments) (Details)     HTML     45K  
71: R65         Investments (Narrative) (Details)                   HTML     67K 
24: R66         Deferred Revenue (Changes in Deferred Revenue)      HTML     61K 
39: R67         Deferred Revenue (Estimated Deferred Revenue)       HTML     71K 
116: R68         Debt Obligations (Changes in Debt Obligations)      HTML    129K  
70: R69         Debt Obligations (Commercial Paper) (Details)       HTML     41K 
87: R70         Debt Obligations (Senior Unsecured Notes)           HTML     36K 
103: R71         Debt Obligations (Senior Unsecured Floating Rate    HTML     37K  
                Notes) (Details)                                                 
57: R72         Debt Obligations (Early Extinguishment of 5.55%     HTML     42K 
                Senior Unsecured Notes) (Details)                                
17: R73         Debt Obligations (3.875% Senior Unsecured Notes)    HTML     44K 
90: R74         Debt Obligations (4.25% Senior Unsecured Notes)     HTML     41K 
106: R75         Debt Obligations (1.75% Senior Unsecured Notes Due  HTML     44K  
                2023) (Details)                                                  
60: R76         Debt Obligations (3.85% Senior Unsecured Notes)     HTML     41K 
20: R77         Debt Obligations Debt Obligations (1.75% Senior     HTML     51K 
                Unsecured Notes Due 2029) (Details)                              
91: R78         Debt Obligations (2017 Credit Facility) (Details)   HTML     56K 
101: R79         Debt Obligations (Other Credit Facilities)          HTML     37K  
88: R80         Retirement Plans (Details)                          HTML     40K 
104: R81         Share-Based Compensation (Narrative) (Details)      HTML    131K  
58: R82         Share-Based Compensation (Summary of Share-Based    HTML     40K 
                Compensation Expense) (Details)                                  
18: R83         Share-Based Compensation (Summary of Restricted     HTML     57K 
                Stock Activity) (Details)                                        
89: R84         Share-Based Compensation (Schedule of Weighted-     HTML     45K 
                Average Assumptions Used to Determine                            
                Weighted-Average Fair Values) (Details)                          
105: R85         Share-Based Compensation (Summary of PSU Activity)  HTML     65K  
59: R86         Share-Based Compensation (Summary of Stock Options  HTML     44K 
                Valuation Assumptions) (Details)                                 
19: R87         Share-Based Compensation (Summary of Stock Option   HTML     71K 
                Activity) (Details)                                              
92: R88         Nasdaq Stockholders' Equity (Narrative) (Details)   HTML     87K 
102: R89         Nasdaq Stockholders' Equity (Common Stock in        HTML     40K  
                Treasury) (Details)                                              
113: R90         Nasdaq Stockholders' Equity (Schedule of Dividends  HTML     37K  
                Declared) (Details)                                              
73: R91         Earnings Per Share (Details)                        HTML     66K 
26: R92         Fair Value of Financial Instruments (Schedule of    HTML     58K 
                Financial Assets and Liabilities Measured at Fair                
                Value on Recurring Basis) (Details)                              
41: R93         Fair Value of Financial Instruments (Narrative)     HTML     53K 
112: R94         Clearing Operations (Narrative) (Details)           HTML     87K  
72: R95         Clearing Operations (Schedule of Clearing Member    HTML     42K 
                Default Fund Contributions And Margin Deposits)                  
25: R96         Clearing Operations (Schedule of Derivative         HTML     48K 
                Contracts) (Details)                                             
40: R97         Income Taxes (Components of Income Tax Provision)   HTML     40K 
115: R98         Income Taxes (Narrative) (Details)                  HTML     41K  
69: R99         Commitments, Contingencies and Guarantees           HTML     60K 
80: R100        Business Segments (Narrative) (Details)             HTML     36K 
94: R101        Business Segments (Schedule of Operating Segments)  HTML     60K 
54: R102        Business Segments (Corporate Items) (Details)       HTML     70K 
14: R103        Restructuring Charges (Narrative) (Details)         HTML     39K 
82: R104        Restructuring Charges (Summary of Restructuring     HTML     46K 
                Plan) (Details)                                                  
35: XML         IDEA XML File -- Filing Summary                      XML    233K 
77: XML         XBRL Instance -- ndaq930201910-q_htm                 XML   4.18M 
28: EXCEL       IDEA Workbook of Financial Reports                  XLSX    136K 
 7: EX-101.CAL  XBRL Calculations -- ndaq-20190930_cal               XML    316K 
 8: EX-101.DEF  XBRL Definitions -- ndaq-20190930_def                XML   1.17M 
 9: EX-101.LAB  XBRL Labels -- ndaq-20190930_lab                     XML   2.31M 
10: EX-101.PRE  XBRL Presentations -- ndaq-20190930_pre              XML   1.56M 
 6: EX-101.SCH  XBRL Schema -- ndaq-20190930                         XSD    274K 
117: JSON        XBRL Instance as JSON Data -- MetaLinks              483±   724K  
38: ZIP         XBRL Zipped Folder -- 0001120193-19-000015-xbrl      Zip    633K 

‘R8’   —   Organization and Nature of Operations

This is an IDEA Financial Report.  [ Alternative Formats ]

Organization and Nature of Operations
9 Months Ended
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Nature of Operations Organization and Nature of Operations
Nasdaq is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence.
We manage, operate and provide our products and services in four business segments: Market Services, Corporate Services, Information Services and Market Technology.
Market Services
Our Market Services segment includes our Equity Derivative Trading and Clearing, Cash Equity Trading, FICC and Trade Management Services businesses. We operate multiple exchanges and other marketplace facilities across several asset classes, including derivatives, commodities, cash equity, debt, structured products and ETPs. In addition, in some countries where we operate exchanges, we also provide broker services, clearing, settlement and central depository services. Our transaction-based platforms provide market participants with the ability to access, process, display and integrate orders and quotes. The platforms allow the routing and execution of buy and sell orders as well as the reporting of transactions, providing fee-based revenues.
In the U.S., we operate six electronic options exchanges and three cash equity exchanges. The Nasdaq Stock Market, the largest of our cash equities exchanges, is the largest single venue of liquidity for trading U.S.-listed cash equities. We also operate an electronic platform for trading of U.S. Treasuries and NFX, a U.S. based designated contract market which lists cash-settled energy derivatives based on key energy benchmarks including oil, natural gas and U.S. power. In addition, we also operate a Canadian exchange for the trading of certain Canadian-listed securities.
In Europe, we operate exchanges in Stockholm (Sweden), Copenhagen (Denmark), Helsinki (Finland), and Reykjavik (Iceland), as well as the clearing operations of Nasdaq Clearing, as Nasdaq Nordic. We also operate exchanges in Tallinn (Estonia), Riga (Latvia) and Vilnius (Lithuania) as Nasdaq Baltic. Collectively, Nasdaq Nordic and Nasdaq Baltic offer trading in cash equities, depository receipts, warrants, convertibles, rights, fund units and ETFs, as well as trading and clearing of derivatives and clearing of resale and repurchase agreements.
Nasdaq Commodities is the brand name for Nasdaq’s European commodity-related products and services. Nasdaq Commodities’ offerings include derivatives in oil, power, natural gas and carbon emission markets, seafood, electricity certificates and clearing services. These products are listed on two of Nasdaq’s derivatives exchanges, Nasdaq Oslo ASA and NFX.
Through our Trade Management Services business, we provide market participants with a wide variety of alternatives for connecting to and accessing our markets via a number of different protocols used for quoting, order entry, trade reporting, and connectivity to various data feeds. We also provide data center services, including co-location to market participants, whereby we offer firms cabinet space and power to house their own servers and other equipment within our data centers. Our broker services operations offer technology and customized securities administration solutions to financial participants in the Nordic market.
In March 2019, we entered into an agreement to sell Nordic Fund Market, an electronic mutual fund service which is a small part of our Broker Services business. The closing of this transaction occurred on October 31, 2019.
Corporate Services
Our Corporate Services segment includes our Listing Services and Corporate Solutions businesses.
Our Listing Services business includes our U.S. and European Listing Services businesses. We operate a variety of listing platforms around the world to provide multiple global capital raising solutions for private and public companies. Our main listing markets are The Nasdaq Stock Market and the Nasdaq Nordic and Nasdaq Baltic exchanges. Through Nasdaq First North, our Nordic and Baltic operations also offer alternative marketplaces for smaller companies and growth companies. Our Listing Services business also includes NPM, which provides liquidity solutions for private companies and private funds.
In December 2018, we launched our Corporate Bond exchange for the listing and trading of corporate bonds. The new exchange operates pursuant to The Nasdaq Stock Market exchange license and is powered by NFF.
As of September 30, 2019, there were 3,091 total listings on The Nasdaq Stock Market, including 382 ETPs. The combined market capitalization was approximately $13.4 trillion. In Europe, the Nasdaq Nordic and Nasdaq Baltic exchanges, together with Nasdaq First North, were home to 1,028 listed companies with a combined market capitalization of approximately $1.4 trillion.
Our Corporate Solutions business includes our Investor Relations Intelligence and Governance Solutions businesses which serve both public and private companies and organizations. Our public clients can be companies listed on our exchanges or other U.S. and global exchanges. We help organizations enhance their ability to understand and expand their global shareholder base, and improve corporate governance through our suite of advanced technology, analytics, and consultative services. In October 2019, Nasdaq acquired the Center for Board Excellence, or CBE, a privately-held provider of corporate governance and compliance solutions for boards of directors, CEOs, corporate secretaries and general counsels. Nasdaq will combine CBE with its
Nasdaq Governance Solutions business, which includes board portal and collaboration technology solutions. We expect the combination will enhance Nasdaq's position as a leading provider of technology, research, insights and consultative services designed to advance governance excellence and collaboration at organizations worldwide.
In March 2019, we sold our BWise enterprise governance, risk and compliance software platform and in April 2018, we sold our Public Relations Solutions and Digital Media Services businesses. See Note 5, “Acquisitions and Divestitures,” for further discussion.
As of December 31, 2018, BWise was classified as held for sale. See Note 6, “Assets and Liabilities Held for Sale,” for further discussion.
For segment reporting purposes, we have included the revenues and expenses of BWise and the Public Relations Solutions and Digital Media Services businesses in corporate items. These businesses were part of the Corporate Solutions business, within our Corporate Services segment, prior to the date of sale. For discussion of business segments, see Note 19, “Business Segments.”
Information Services
Our Information Services segment includes our Market Data, Index and Investment Data & Analytics businesses.
Our Market Data business sells and distributes historical and real-time quote and trade information to the sell-side, the buy-side, retail online brokers, proprietary trading shops, other venues, internet portals and data distributors. Our market data products enhance transparency of market activity within our exchanges and provide critical information to professional and non-professional investors globally.
Our Index business develops and licenses Nasdaq-branded indexes, associated derivatives, and financial products and also provides custom calculation services for third-party clients. As of September 30, 2019, we had 325 ETPs licensed to Nasdaq’s indexes which had $207 billion in assets under management.
Our Investment Data & Analytics business is a leading content and analytics cloud-based solutions provider used by asset managers, investment consultants and asset owners to help facilitate better investment decisions.
Market Technology
Our Market Technology segment is a leading global technology solutions provider and partner to exchanges, clearing organizations, central securities depositories, regulators, banks, brokers, buy-side firms and corporate businesses. Our Market Technology business is the sales channel for our complete global offering to other marketplaces.
Market Technology provides technology solutions for trading, clearing, settlement, surveillance and information dissemination to markets with wide-ranging requirements,
from the leading markets in the U.S., Europe and Asia to emerging markets in the Middle East, Latin America, and Africa. Our marketplace solutions can handle a wide array of assets, including cash equities, equity derivatives, currencies, various interest-bearing securities, commodities and energy products, and are currently powering more than 100 marketplaces in 50 countries. Market Technology also provides market surveillance services to broker-dealer firms worldwide, as well as risk management solutions.

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
Filed on:11/6/19
For Period end:9/30/19
12/31/1810-K,  4
 List all Filings 
Filing Submission 0001120193-19-000015   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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