Income Taxes |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | INCOME TAXES Income Tax Provision The following tables present our income tax provision and effective tax rate:
The higher effective tax rate for the three months ended September 30, 2026, as compared to the prior year period, was primarily due to higher energy-related tax credits recognized in the prior-year period. The higher effective tax rate for the nine months ended September 30, 2026, as compared to the prior year period, was primarily due to the impact of a favorable audit settlement and a tax benefit related to payments made to former Adenza employees, both recognized in the prior-year period. The effective tax rate may vary from period to period depending on, among other factors, the geographic and business mix of earnings and losses. These and other factors, including history of pre-tax earnings and losses, are taken into account in assessing the ability to realize deferred tax assets. Tax Audits Nasdaq and its eligible subsidiaries file a consolidated U.S. federal income tax return, applicable state and local income tax returns and non-U.S. income tax returns. We are subject to examination by federal, state and local, and foreign tax authorities. Our federal income tax return is under examination by the Internal Revenue Service for the years 2021 through 2025. Several state tax returns are currently under examination by the respective tax authorities for the years 2014 through 2024. Non-U.S. tax returns are subject to examination by the respective tax authorities for the years 2020 through 2025. We regularly assess the likelihood of additional assessments by each jurisdiction and have established tax reserves that we believe are adequate in relation to the potential for additional assessments. Examination outcomes and the timing of examination settlements are subject to uncertainty. Although the results of such examinations may have an impact on our unrecognized tax benefits, we do not anticipate that such impact will be material to our condensed consolidated financial position or results of operations, but may be material to our operating results for a particular period and the effective tax rate for that period.
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