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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The following table presents the domestic and foreign components of income before income tax provision:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Domestic | $ | 1,216 |  |  | $ | 1,299 |  |  | $ | 898 |
Foreign | 259 |  |  | 235 |  |  | 314 |
Income before income tax provision | $ | 1,475 |  |  | $ | 1,534 |  |  | $ | 1,212 |
Schedule of Income Tax Provision and Effective Tax Rate | The income tax provision consists of the following amounts:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Current income taxes provision: |  |  |  |  |
Federal | $ | 170 |  |  | $ | 144 |  |  | $ | 114 |
State | 67 |  |  | 45 |  |  | 50 |
Foreign | 77 |  |  | 64 |  |  | 74 |
Total current income taxes provision | 314 |  |  | 253 |  |  | 238 |
Deferred income taxes provision (benefit): |  |  |  |  |
Federal | 36 |  |  | 82 |  |  | 37 |
State | 6 |  |  | 22 |  |  | 6 |
Foreign | (4) |  |  | (10) |  |  | (2) |
Total deferred income taxes provision | 38 |  |  | 94 |  |  | 41 |
Total income tax provision | $ | 352 |  |  | $ | 347 |  |  | $ | 279 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax provision, based on the U.S. federal statutory rate, to our actual income tax provision for the years ended December 31, 2022, 2021 and 2020 is as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Federal income tax provision at the statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income tax provision, net of federal effect | 3.8 | % |  | 3.9 | % |  | 4.2 | %
Excess tax benefits related to employee share-based compensation | (0.9) | % |  | (1.3) | % |  | (0.6) | %
Non-U.S. subsidiary earnings | 0.5 | % |  | 0.3 | % |  | 0.5 | %
Tax credits and deductions | (0.3) | % |  | (0.3) | % |  | (0.2) | %
Change in unrecognized tax benefits | 1.1 | % |  | 0.6 | % |  | (0.6) | %
Other, net | (1.3) | % |  | (1.6) | % |  | (1.3) | %
Actual income tax provision | 23.9 | % |  | 22.6 | % |  | 23.0 | %
Schedule of Deferred Tax Assets and Liabilities | The temporary differences, which give rise to our deferred tax assets and (liabilities), consisted of the following:
| December 31,
| 2022 |  | 2021
| (in millions)
Deferred tax assets: |  |  |
Deferred revenues | $ | 18 |  |  | $ | 12 |
U.S. federal net operating loss | 5 |  |  | — |
Foreign net operating loss | 12 |  |  | 4 |
State net operating loss | 3 |  |  | 1 |
Compensation and benefits | 42 |  |  | 32 |
Tax credits | 3 |  |  | — |
Federal benefit of uncertain tax positions | 9 |  |  | 6 |
Operating lease liabilities | 118 |  |  | 99 |
Unrealized losses | — |  |  | 2 |
Other | 33 |  |  | 30 |
Gross deferred tax assets | 243 |  |  | 186 |
Less: valuation allowance | (4) |  |  | (4) |
Total deferred tax assets, net of valuation allowance | $ | 239 |  |  | $ | 182 |
Deferred tax liabilities: |  |  |
Amortization of software development costs and depreciation | $ | (65) |  |  | $ | (65) |
Amortization of acquired intangible assets and goodwill | (375) |  |  | (322) |
Investments | (105) |  |  | (99) |
Unrealized gains | (29) |  |  | — |
Operating lease assets | (103) |  |  | (84) |
Other | (15) |  |  | (16) |
Gross deferred tax liabilities | $ | (692) |  |  | $ | (586) |
Net deferred tax liabilities | $ | (453) |  |  | $ | (404) |
Reported as: |  |  |
Non-current deferred tax assets | $ | 3 |  |  | $ | 2 |
Deferred tax liabilities, net | (456) |  |  | (406) |
Net deferred tax liabilities | $ | (453) |  |  | $ | (404) |
In the table above, non-current deferred tax assets are included in other non-current assets in the Consolidated Balance Sheets.
Summary of Operating Loss Carryforwards | Nasdaq has deferred tax assets associated with NOLs in U.S. state and local and non-U.S. jurisdictions with the following expiration dates:
Jurisdiction | December 31, 2021 | Expiration Date
| (in millions) |
Foreign NOL | $ | 12 |  | No expiration
Federal NOL | 5 |  | No expiration
State NOL | 3 |  | 2025-2040
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in millions)
Beginning balance | $ | 57 |  |  | $ | 42 |  |  | $ | 48 |
Additions as a result of tax positions taken in prior periods | 13 |  |  | 16 |  |  | 9 |
Additions as a result of tax positions taken in the current period | 9 |  |  | 11 |  |  | 2 |
Reductions related to settlements with taxing authorities | (7) |  |  | (6) |  |  | (6) |
Reductions as a result of lapses of the applicable statute of limitations | (2) |  |  | (6) |  |  | (11) |
Ending balance | $ | 70 |  |  | $ | 57 |  |  | $ | 42 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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