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Income Taxes (Tables)

12 Months Ended

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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