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These excerpts taken from the NDAQ 10-K filed Feb 27, 2009. Calculation of Deferred Revenue
As part of the perpetual technology license agreement, we are obligated to provide NASDAQ Dubai with additional unspecified software developed or marketed by NASDAQ OMX in the future. As such, we have deemed our contribution of technology to be an “insubstance subscription” in accordance with SOP 97-2. As such, revenue that is earned as a result of the license agreement will be recognized ratably over its estimated economic useful life. We have recorded deferred revenue equal to the fair value of the technology licenses. The deferred revenue will be reduced by the portion of the economic interest retained since we will have a 33 1/3% equity investment in NASDAQ Dubai and the deferred revenue will be recognized ratably over the estimated economic useful life of the technology licenses, which is seven years.
Calculation is as follows:
For the year ended December 31, 2008, we recorded $5.8 million of income related to this deferred revenue in Market Technology revenues in the Consolidated Statements of Income.
Calculation of Deferred Revenue As part of the Calculation is as follows:
Consolidated Statements of Income.
This excerpt taken from the NDAQ 10-Q filed Nov 7, 2008. Calculation of Deferred Revenue As part of the perpetual technology license agreement, we are obligated to provide DIFX with additional unspecified software developed or marketed by NASDAQ OMX in the future. As such, we have deemed our contribution of technology to be an “insubstance subscription” in accordance with SOP 97-2. As such, revenue that is earned as a result of the license agreement will be recognized ratably over its estimated economic useful life. We have recorded deferred revenue equal to the fair value of the technology licenses. The deferred revenue will be reduced by the portion of the economic interest retained since we will have a 33 1/3% equity investment in DIFX and the deferred revenue will be recognized ratably over the estimated economic useful life of the technology licenses, which is seven years. Calculation is as follows:
For the three months ended September 30, 2008, we recorded $1.9 million of income and for the nine months ended September 30, 2008 we recorded $4.3 million of income related to this deferred revenue in Market Technology revenues in the Condensed Consolidated Statements of Income. This excerpt taken from the NDAQ 10-Q filed Aug 8, 2008. Calculation of Deferred Revenue As part of the perpetual technology license agreement, we are obligated to provide DIFX with additional unspecified software developed or marketed by NASDAQ OMX in the future. As such, we have deemed our contribution of technology to be an “insubstance subscription” in accordance with SOP 97-2. As such, revenue that is earned as a result of the license agreement will be recognized ratably over its estimated economic useful life. We have recorded deferred revenue equal to the fair value of the technology licenses. The deferred revenue will be reduced by the portion of the economic interest retained since we will have a 33 1/3% equity investment in DIFX and the deferred revenue will be recognized ratably over the estimated economic useful life of the technology licenses, which is seven years. Calculation is as follows:
For the three months ended June 30, 2008, we recorded $1.9 million of income and for the six months ended June 30, 2008 we recorded $2.5 million of income related to this deferred revenue in Market Technology revenues in the Condensed Consolidated Statements of Income. This excerpt taken from the NDAQ 8-K filed Aug 1, 2008. Calculation of Deferred Revenue As part of the perpetual technology license agreement, we are obligated to provide DIFX with additional unspecified software developed or marketed by NASDAQ OMX in the future. As such, we have deemed our contribution of technology to be an “in-substance subscription” in accordance with SOP 97-2, “Software Revenue Recognition.” As such, revenue that is earned as a result of the license agreement will be recognized ratably over its estimated economic useful life. We have recorded deferred revenue equal to the fair value of the technology licenses. The deferred revenue will be reduced by the portion of the economic interest retained since we will have a 33 1/3% equity investment in DIFX and the deferred revenue will be recognized ratably over the estimated economic useful life of the technology licenses, which is seven years. Calculation is as follows:
As noted above, the $52 million will be recognized ratably over the estimated economic useful life of the technology licenses which is estimated to be seven years. As the recognition of this revenue is considered a recurring item, we have included a pro forma adjustment to revenue of $7.4 million ($4.5 million after-tax) for the year ended December 31, 2007 and $1.2 million ($0.7 million after-tax) for the period ended February 26, 2008 in the unaudited pro forma condensed combined statements of income. This excerpt taken from the NDAQ 10-Q filed May 9, 2008. Calculation of Deferred Revenue As part of the perpetual technology license agreement, we are obligated to provide DIFX with additional unspecified software developed or marketed by NASDAQ OMX in the future. As such, we have deemed our contribution of technology to be an “insubstance subscription” in accordance with SOP 97-2. As such, revenue that is earned as a result of the license agreement will be recognized ratably over its estimated economic useful life. We have recorded deferred revenue equal to the fair value of the technology licenses. The deferred revenue will be reduced by the portion of the economic interest retained since we will have a 33 1/3% equity investment in DIFX and the deferred revenue will be recognized ratably over the estimated economic useful life of the technology licenses, which is seven years. Calculation is as follows:
For the quarter ended March 31, 2008, we recorded $0.6 million of income related to this deferred revenue in Market Technology revenues in the Condensed Consolidated Statements of Income. This excerpt taken from the NDAQ 8-K filed May 2, 2008. Calculation of Deferred Revenue As part of the perpetual technology license agreement, we are obligated to provide DIFX with additional unspecified software developed or marketed by NASDAQ OMX in the future. As such, we have deemed our contribution of technology to be an “in-substance subscription” in accordance with SOP 97-2, “Software Revenue Recognition.” As such, revenue that is earned as a result of the license agreement will be recognized ratably over its estimated economic useful life. We have recorded deferred revenue equal to the fair value of the technology licenses. The deferred revenue will be reduced by the portion of the economic interest retained since we will have a 33 1/3% equity investment in DIFX and the deferred revenue will be recognized ratably over the estimated economic useful life of the technology licenses, which is seven years. Calculation is as follows:
As noted above, the $52 million will be recognized ratably over the estimated economic useful life of the technology licenses which is estimated to be seven years. As the recognition of this revenue is considered a recurring item, we have included the $7.4 million (4.5 million after-tax) of revenue that would have been recognized during 2007 had the Transactions taken place on January 1, 2007 in the unaudited pro forma condensed combined statement of income for the year ended December 31, 2007. | EXCERPTS ON THIS PAGE:
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