v2.4.0.6
Business Segments
 3 Months Ended
Mar. 31, 2013
Text Block [Abstract]  
Business Segments

16. Business Segments

Prior to January 1, 2013, we managed, operated and provided our products and services in three business segments: Market Services, Issuer Services and Market Technology. As announced in January 2013, we realigned our reportable segments as a result of changes to the organizational structure of our businesses.

Beginning on January 1, 2013, we manage, operate and provide our products and services in four business segments: Market Services, Listing Services, Information Services and Technology Solutions. All prior period segment disclosures have been recast to reflect our change in reportable segments. Certain other prior year amounts have been reclassified to conform to the current year presentation.

Our Market Services segment consists of our U.S. and European cash equity and derivative trading and clearing businesses and our Access and Broker Services business.  

Our Listing Services segment consists of our U.S. and European listing businesses, which provide services for companies listed on The NASDAQ Stock Market and our Nordic and Baltic exchanges.

Our Information Services segment includes our Market Data Products and Index Licensing and Services businesses. Our Market Data Products business sells and distributes quote and trade information to market participants and data distributers. Our Index Licensing and Services business develops and licenses NASDAQ OMX branded indexes, associated derivatives, and financial products and also provides custom calculation services for third-party clients.

Our Technology Solutions segment includes our Market Technology and Corporate Solutions businesses. Our Market Technology business is the world’s leading technology solutions provider and partner to exchanges, clearing organizations and central securities depositories. Our technology business is also the sales channel for our complete global offering to other marketplaces. Market Technology provides technology solutions for trading, clearing, settlement and information dissemination, and also offers facility management integration, surveillance solutions, and advisory services. Our Corporate Solutions business generates revenues through the sale of our shareholder, directors, newswire, and other services.

Our management allocates resources, assesses performance and manages these businesses as four separate segments. We evaluate the performance of our segments based on several factors, of which the primary financial measure is operating income. Results of individual businesses are presented based on our management accounting practices and our management structure. Certain amounts are allocated to corporate items in our management reports based on the decision that those activities should not be used to evaluate the segment’s operating performance. These amounts include, but are not limited to, amounts related to our voluntary accommodation program, expense related to an SEC matter, restructuring actions, mergers and strategic initiatives, long-term asset impairment, and financing activities. See below for further discussion.

The following table presents certain information regarding these operating segments for the three months ended March 31, 2013 and 2012.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Services

 

Listing Services

 

Information Services

 

Technology Solutions

 

Corporate Items and Eliminations(1)

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

Three Months Ended March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$
508 

 

$
55 

 

$
108 

 

$
73 

 

$

 -

 

$
744 

Cost of revenues

 

 
(326)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
(326)

Revenues less transaction rebates, brokerage, clearance and exchange fees

 

 
182 

 

 
55 

 

 
108 

 

 
73 

 

 

 -

 

 
418 

Operating income (loss)

 

$
74 

 

$
24 

 

$
81 

 

$
2 

 

$
(91)

 

$
90 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$
580 

 

$
56 

 

$
102 

 

$
66 

 

$

 -

 

$
804 

Cost of revenues

 

 
(390)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
(390)

Revenues less transaction rebates, brokerage, clearance and exchange fees

 

 
190 

 

 
56 

 

 
102 

 

 
66 

 

 

 -

 

 
414 

Operating income (loss)

 

$
79 

 

$
22 

 

$
75 

 

$
5 

 

$
(10)

 

$
171 

 

(1)       Corporate items and eliminations for the three months ended March 31, 2013 primarily include expenses related to our voluntary accommodation program, expense related to an SEC matter, restructuring charges, merger and strategic initiatives expense and special legal expenses. Corporate items and eliminations for the three months ended March 31, 2012 primarily include restructuring charges and merger and strategic initiatives expense.

In connection with our change in reportable segments, total assets as of December 31, 2012 have been recast as presented in the following table.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Services

 

Listing Services

 

Information Services

 

Technology Solutions

 

Corporate Items and Eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

Total assets at March 31, 2013

 

$
4,970 

 

$
256 

 

$
2,441 

 

$
623 

 

$
898 

 

$
9,188 

Total assets at December 31, 2012

 

 
4,981 

 

 
254 

 

 
2,456 

 

 
625 

 

 
816 

 

 
9,132 

 

For further discussion of our segments’ results, see “Part I. Item  2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Segment Operating Results.”