NASDAQ OMX Group (NDAQ)

Acquisitions

With the exception of Bridge, all business acquisitions have been accounted for under the purchase method and, accordingly, the excess of the purchase price over the fair value of the net assets acquired has been recorded as goodwill on the Consolidated Statements of Financial Condition. The carrying value of goodwill is reviewed on a periodic basis for impairment based upon estimated fair value of the Company’s reporting units. The Company estimates fair value by using a discounted cash flow model or by using the services of an external valuation specialist. Should the review indicate that goodwill is impaired, the Company’s carrying value of goodwill would be reduced by the estimated shortfall of the discounted cash flows.

As disclosed in Note 3, the Company acquired Bridge from Reuters on March 31, 2005. The acquisition of Bridge was not treated as a business combination since Statement of Financial Accounting Standards (SFAS) No. 141, Business Combinations specifically excludes transfers of net assets or exchanges of shares between entities under common control. As such, in accordance with SFAS No. 141, the transferred assets and liabilities of Bridge have been recognized at historical cost, and the character of the transaction is reported as a change in reporting entity similar to a pooling-of-interests.