Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Remaining Performance Obligation, Expected Timing of Satisfaction

For our market technology contracts, the following table summarizes the amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2018:



	(in millions)
2019	$	255
2020	183
2021	94
2022	58
2023	30
2024 and thereafter	75
Total	$	695

Disaggregation of Revenue

The following tables summarize the disaggregation of revenue by major product and service and by segment for the years ended December 31, 2018, 2017 and 2016:



	Year Ended December 31, 2018
	Market Services		Corporate Services		Information Services		Market Technology		Other Revenues		Consolidated
	(in millions)
Transaction-based trading and clearing, net	$	666	$	—	$	—	$	—	$	—	$	666
Trade management services	292		—		—		—		—		292
Corporate solutions	—		238		—		—		—		238
Listing services	—		290		—		—		—		290
Market data products	—		—		390		—		—		390
Index	—		—		206		—		—		206
Investment data & analytics	—		—		118		—		—		118
Market technology	—		—		—		270		—		270
Other revenues	—		—		—		—		56		56
Revenues less transaction-based expenses	$	958	$	528	$	714	$	270	$	56	$	2,526



	Year Ended December 31, 2017
	Market Services		Corporate Services		Information Services		Market Technology		Other Revenues		Consolidated
	(in millions)
Transaction-based trading and clearing, net	$	590	$	—	$	—	$	—	$	—	$	590
Trade management services	291		—		—		—		—		291
Corporate solutions	—		234		—		—		—		234
Listing services	—		267		—		—		—		267
Market data products	—		—		369		—		—		369
Index	—		—		171		—		—		171
Investment data & analytics	—		—		48		—		—		48
Market technology	—		—		—		247		—		247
Other revenues	—		—		—		—		194		194
Revenues less transaction-based expenses	$	881	$	501	$	588	$	247	$	194	$	2,411



	Year Ended December 31, 2016
	Market Services		Corporate Services		Information Services		Market Technology		Other Revenues		Consolidated
	(in millions)
Transaction-based trading and clearing, net	$	561	$	—	$	—	$	—	$	—	$	561
Trade management services	266		—		—		—		—		266
Corporate solutions	—		208		—		—		—		208
Listing services	—		269		—		—		—		269
Market data products	—		—		354		—		—		354
Index	—		—		149		—		—		149
Investment data & analytics	—		—		37		—		—		37
Market technology	—		—		—		241		—		241
Other revenues	—		—		—		—		191		191
Revenues less transaction-based expenses	$	827	$	477	$	540	$	241	$	191	$	2,276

Schedule of the Recent Accounting Pronouncements



Accounting Standard	Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
Intangibles - Goodwill and Other - Internal-Use Software In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.”	This ASU clarifies the accounting for implementation costs of a hosting arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Capitalized implementation costs should be expensed over the term of the hosting arrangement and recognized in the same line item in the statement of income as the hosted service costs. Payments for capitalized implementation costs should be classified in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. Capitalized implementation costs should be presented in the balance sheet in the same line item as a prepayment for the fees of the associated hosting arrangement.	January 1, 2020, with early adoption permitted. We early adopted this standard as of July 1, 2018.	There was no impact to the financial statements as a result of the adoption of this standard, as we are currently accounting for costs incurred in a cloud computing arrangement in accordance with the standard.
Fair Value Measurements In August 2018, the FASB issued ASU 2018-13 “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.”	This ASU modifies the disclosure requirements on fair value measurements by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty, and adding new requirements, mainly for Level 3 fair value measurements.	January 1, 2020, with early adoption permitted. We early adopted this standard as of July 1, 2018 on a prospective basis.	There was no impact to the financial statements or our disclosures as a result of the adoption of this standard.



Accounting Standard	Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
Income Statement - Reporting Comprehensive Income In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220).”	This ASU was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act that changed our income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings.	January 1, 2019, with early adoption permitted. We early adopted this standard as of January 1, 2018.	As a result of the adoption of this standard, we recorded a reclassification of $417 million related to the Tax Cuts and Jobs Act from accumulated other comprehensive loss to retained earnings within stockholders’ equity in the Consolidated Balance Sheets. See “Tax Cuts and Jobs Act,” of Note 17, “Income Taxes,” for further discussion.
Goodwill In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.”	This ASU simplifies how an entity is required to test goodwill for impairment and removes the second step of the goodwill impairment test, which required a hypothetical purchase price allocation if the fair value of a reporting unit is less than its carrying amount. Goodwill impairment will now be measured using the difference between the carrying amount and the fair value of the reporting unit and the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments in this ASU should be applied on a prospective basis.	January 1, 2020, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.	We do not anticipate a material impact on our consolidated financial statements at the time of adoption of this new standard as the carrying amounts of our reporting units have been less than their corresponding fair values in recent years. However, changes in future projections, market conditions and other factors may cause a change in the excess of fair value of our reporting units over their corresponding carrying amounts. We do not anticipate early adoption of this standard.



Accounting Standard	Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.”	This ASU changes the impairment model for certain financial instruments. The new model is a forward looking expected loss model and will apply to financial assets subject to credit losses and measured at amortized cost and certain off-balance sheet credit exposures. This includes loans, held-to-maturity debt securities, loan commitments, financial guarantees and net investments in leases, as well as trade receivables. For available-for-sale debt securities with unrealized losses, credit losses will be measured in a manner similar to today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities.	January 1, 2020, with early adoption permitted as of January 1, 2019.	We will adopt this standard on January 1, 2020. We are currently assessing the impact that this standard will have on our consolidated financial statements.
Leases In February 2016, the FASB issued ASU 2016-02, “Leases.”	Under this ASU, at the commencement date, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is not applicable for leases with a term of 12 months or less. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The guidance also requires certain quantitative and qualitative disclosures about leasing arrangements. Lessor accounting is largely unchanged. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.	January 1, 2019.	See discussion below.

As of January 1, 2016, as a result of the adoption of Topic 606, the impact to retained earnings was immaterial. The following tables present the adjustments to reflect the adoption of Topic 606 on our Consolidated Statements of Income for the years ended December 31, 2017 and 2016 and our Consolidated Balance Sheets as of December 31, 2017 and 2016:



Adjustments to Reflect Adoption of Topic 606
	Year Ended December 31,
	2017			2016
	(in millions)
Revenues less transaction-based expenses:
Market Services	$	—		$	—
Corporate Services	(3		)	(3		)
Information Services	—			—
Market Technology	(14		)	2
Total revenues less transaction-based expenses	$	(17	)	$	(1	)

Total operating expenses⁽¹⁾	$	(9	)	$	2

Income before income taxes	$	(8	)	$	(3	)
Income tax provision	(3		)	(1		)
Net income attributable to Nasdaq	$	(5	)	$	(2	)
Diluted earnings per share	$	(0.03	)	$	(0.01	)

____________

⁽¹⁾ Adjustment to reflect the adoption of Topic 606 for the year ended December 31, 2017 and 2016 primarily pertain to our Market Technology business.



Adjustments to Reflect Adoption of Topic 606
	December 31, 2017			December 31, 2016
	(in millions)
Assets:
Other current assets	$	(19	)	$	(15	)
Other non-current assets	(38		)	(46		)
Deferred tax assets	2			(1		)
Total assets	$	(55	)	$	(62	)

Liabilities:
Deferred revenue	$	(28	)	$	(24	)
Non-current deferred revenue	(20		)	(36		)
Total liabilities	(48		)	(60		)

Nasdaq stockholders' equity:
Retained earnings	$	(7	)	$	(2	)
Total Nasdaq stockholders' equity	(7		)	(2		)

Total liabilities and equity	$	(55	)	$	(62	)