Retirement Plans

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Defined Contribution Savings Plan

We sponsor a 401(k) Plan for U.S. employees. Employees are immediately eligible to make contributions to the plan and are also eligible for an employer contribution match at an amount equal to 100.0% of the first 6.0% of eligible employee contributions in 2016, 2015 and 2014. Savings plan expense included in compensation and benefits expense in the Consolidated Statements of Income was $11 million in 2016, $10 million in 2015 and $9 million in 2014.

Prior to 2015, we had a profit-sharing contribution feature to our 401(k) Plan which allowed eligible U.S. employees to receive employer retirement contributions when we met our annual corporate goals. Employer retirement contribution expense recorded in compensation and benefits expense in the Consolidated Statements of Income was $3 million in 2014.

Pension and Supplemental Executive Retirement Plans

We maintain non-contributory, defined-benefit pension plans, non-qualified SERPs for certain senior executives and other post-retirement benefit plans for eligible employees in the U.S., collectively referred to as the Nasdaq Benefit Plans. Our pension plans and SERPs are frozen. Future service and salary for all participants do not count toward an accrual of benefits under the pension plans and SERPs. Most employees outside the U.S. are covered by local retirement plans or by applicable social laws. Benefits under social laws are generally expensed in the periods in which the costs are incurred. The total expense for these plans is included in compensation and benefits expense in the Consolidated Statements of Income and was $23 million in 2016, $22 million in 2015 and $21 million in 2014.

Nasdaq recognizes the funded status of the Nasdaq Benefit Plans, measured as the difference between the fair value of the plan assets and the benefit obligation, in the Consolidated Balance Sheets. The funded status related to the Nasdaq Benefit Plans was underfunded by $59 million at December 31, 2016 and $64 million at December 31, 2015 and is included in accrued personnel costs and other non-current liabilities in the Consolidated Balance Sheets. The fair value of the plan assets was $74 million as of December 31, 2016 and $70 million as of December 31, 2015 and the benefit obligation was $133 million at December 31, 2016 and $134 million at December 31, 2015. The plan assets of the Nasdaq Benefit Plans are invested in securities per target allocations adopted by Nasdaq’s Pension and 401(k) Committee and are primarily invested in equity and fixed income securities, which are primarily categorized as Level 2 in the fair value hierarchy.

Accumulated Other Comprehensive Loss

As of December 31, 2016, accumulated other comprehensive loss for the Nasdaq Benefit Plans was $21 million reflecting an unrecognized net loss of $35 million, partially offset by an income tax benefit of $14 million, primarily due to our pension plans.

Estimated Future Benefit Payments

We expect to make the following benefit payments to participants in the next ten fiscal years under the Nasdaq Benefit Plans:



	Pension		SERP		Post-retirement		Total
Fiscal Year Ended:	(in millions)
2017	$	4	$	7	$	1	$	12
2018	4		3		—		7
2019	5		4		—		9
2020	5		5		—		10
2021	5		1		—		6
2022 through 2026	26		8		1		35
	$	49	$	28	$	2	$	79