v3.26.3
Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments FAIR VALUE OF FINANCIAL INSTRUMENTS
The following tables present substantially all of our financial
assets that were measured at fair value on a recurring basis as
of September 30, 2026 and December 31, 2025.
 
September 30, 2026
 
Total
Level 1
Level 2
Level 3
(in millions)
European
government debt
securities
$151
$151
$—
$—
Total short-term
investments
$151
$151
$—
$—
Corporate debt
securities
100
—
—
100
Equity securities
10
10
—
—
Total assets at fair
value
$261
$161
$—
$100
December 31, 2025
Total
Level 1
Level 2
Level 3
(in millions)
European
government debt
securities
$28
$28
$—
$—
Total short-term
investments
$28
$28
$—
$—
Equity securities
25
25
—
—
Total assets at fair
value
$53
$53
$—
$—
Corporate Debt Securities
In September 2026, we purchased preferred stock of
Payward, Inc. for an aggregate purchase price of 
$100 million. See “Corporate Debt Securities,” of Note 6,
“Investments,” for further discussion. We have elected the
fair value option for this investment, and it is included in
other non-current assets in the Condensed Consolidated
Balance Sheets. Accordingly, any changes in the fair value
will be recognized in other income (loss) in the Condensed
Consolidated Statements of Income. There was no change in
the fair value for this investment as it was purchased in
September 2026. This investment is classified within Level 3
of the fair value hierarchy.
Derivative Instruments
We utilize foreign exchange forward contracts primarily to
reduce the volatility of earnings and cash flows associated
with changes in foreign exchange rates. We use these foreign
exchange forward contracts as net investment hedges of
certain foreign subsidiaries, with changes in fair value
recorded in accumulated other comprehensive income in the
Condensed Consolidated Balance Sheets, and as cash flow
hedges of certain foreign currency-denominated revenues and
expenses, with fair value changes initially recorded in
accumulated other comprehensive income. For our cash flow
hedges, when the forecasted transaction affects earnings, or
in the event the underlying forecasted transaction does not
occur, or it becomes probable that it will not occur, we
reclassify the related gain or loss to revenue or operating
expenses, as applicable.
We also use foreign exchange forward contracts as economic
hedges of foreign currency-denominated assets and liabilities
that are not designated as hedging instruments. The fair value
changes of these contracts are recorded in general,
administrative and other expenses in the Condensed
Consolidated Statements of Income, together with the re-
measurement gain or loss from the hedged balance sheet
position.
All derivative contracts are measured at fair value using
Level 2 inputs based on observable foreign currency
exchange rates and interest rates, and recorded under other
current and other non-current assets and other current and
other non-current liabilities in the Condensed Consolidated
Balance Sheets. As of September 30, 2026 and December 31,
2025, the fair value of these contracts was not material and
therefore not included in the tables above. We do not use
derivative instruments for trading or speculative purposes.
Financial Instruments Not Measured at Fair Value on a
Recurring Basis
Some of our financial instruments are not measured at fair
value on a recurring basis but are recorded at amounts that
approximate fair value due to their liquid or short-term
nature. Such financial assets and financial liabilities include:
cash and cash equivalents, restricted cash and cash
equivalents, receivables, net, certain other current assets,
accounts payable and accrued expenses, Section 31 fees
payable to SEC, accrued personnel costs and certain other
current liabilities.
We also consider our debt obligations to be financial
instruments. As of September 30, 2026, the majority of our
outstanding debt obligations were fixed-rate obligations. We
are exposed to changes in interest rates on amounts
outstanding from the sale of commercial paper under our
commercial paper program. We may also be exposed to
changes in interest rates as a result of borrowings under our
2026 Revolving Credit Facility, as the interest rates on this
facility have a variable rate depending on the maturity of the
borrowing and the implied underlying reference rate. The fair
value of our remaining debt obligations utilizing prevailing
market rates for our fixed rate debt was $7.8 billion as of
September 30, 2026 and $8.6 billion as of December 31,
2025. The discounted cash flow analyses are based on
borrowing rates currently available to us for debt with similar
terms and maturities. Our commercial paper and our fixed
rate and floating rate debt are categorized as Level 2 in the
fair value hierarchy.
For further discussion of our debt obligations, see Note 8,
“Debt Obligations.”
Assets Measured at Fair Value on a Non-Recurring Basis
We have certain investments, primarily our investment in
OCC, which are accounted for under the equity method of
accounting. We have elected the measurement alternative for
all of our equity securities that do not have a readily
determinable fair value, which primarily represent various
strategic investments made through our corporate venture
program. These investments are measured at fair value on a
non-recurring basis, if they are deemed to be impaired. Our
investments in equity securities without readily determinable
fair values are also adjusted, on a non-recurring basis, upon
observable price changes in orderly transactions for identical
or similar investments of the same issuer.
See “Equity Investments,” of Note 6, “Investments,” for
further discussion.
Our non-financial assets, which include goodwill, intangible
assets, and other long-lived assets, are not required to be
carried at fair value on a recurring basis. Fair value measures
of non-financial assets are primarily used in the impairment
analysis of these assets. Any resulting asset impairment
would require that the non-financial asset be recorded at its
fair value. Nasdaq uses Level 3 inputs to measure the fair
value of the above assets on a non-recurring basis. As of
September 30, 2026 and December 31, 2025, there were no
non-financial assets measured at fair value on a non-recurring
basis.