Changes in Cash Flows for NASDAQ_OMX

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NDAQ » Topics » Changes in Cash Flows

This excerpt taken from the NDAQ 10-Q filed May 8, 2009.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the quarter ended March 31, 2009:

•

Net income of $94 million, plus:

•

Non-cash items of $16 million comprised primarily of depreciation and amortization expense of $24 million and share-based compensation of $8 million, partially offset by deferred taxes, net of $19 million.

•

Increase in deferred revenue of $98 million mainly due to Global Listing Services’ annual billings.

•

Partially offset by a:

•

Decrease in accrued personnel costs of $75 million primarily due to payment of 2008 incentive compensation in the first quarter of 2009, partially offset by the 2009 accrual.

•

Decrease in Section 31 fees payable to SEC of $25 million mainly due to lower Section 31 fees resulting from lower dollar volume traded and lower rates during 2009.

•

Increase in receivables, net of $24 million primarily due to an increase in Market Services receivables as a result of a decrease in tape fee revenue rebates, which are netted against tape fee revenue billings.

During the quarter ended March 31, 2008, the following items impacted our cash provided by operating activities:

•

Net income of $121 million, plus:

•

Increase in deferred revenue of $97 million mainly due to Global Listing Services’ annual billings.

•

Increase in other accrued liabilities of $114 million primarily due to an increase in income tax payable of $73 million due to current taxable income partially offset by taxes paid in the first quarter of 2008.

•

Partially offset by:

•

Non-cash items of $73 million comprised primarily of the gain on foreign currency contracts of $35 million, deferred taxes, net of $30 million and income (loss) from unconsolidated investees, net of $27 million, partially offset by depreciation and amortization of $16 million and share-based compensation of $5 million.

•

Increase in receivables, net and other assets of $67 million primarily due to an increase in trading volume and overall increase in revenues.

We expect that cash provided by operating activities may fluctuate in future periods as a result of a number of factors, including fluctuations in our operating results, accounts receivable collections, share-based compensation and the timing and amount of other payments that we make.

Cash used in investing activities. Cash used in investing activities for the three months ended March 31, 2009 is primarily due to cash used in connection with the purchase of trading and available-for-sale securities, partially offset by cash received from sales and redemptions of trading securities. In the first quarter of 2008, cash used in investing activity related to our business combination with OMX AB, net of cash acquired, as well as the acquisition of 33¹/3% of the equity of NASDAQ Dubai and the equity interest in Agora-X, for total cash paid of $1,964 million.

Cash provided by (used in) financing activities. Cash used in financing activities in the first quarter of 2009 consisted of a $56 million principal payment made on our Term Loan Facility. In addition, we repurchased $24 million principal amount of our 2.50% convertible senior notes for a cash payment of $20 million and recognized a pre-tax gain of $4 million, net of debt issuance and other costs. We also made a $4 million payment on our other credit facilities in the first quarter of 2009. In the first quarter of 2008, cash provided by financing activities consisted of the proceeds from the issuance of $475 million aggregate principal amount of 2.50% convertible senior notes and $1,050 million in senior secured indebtedness under our Credit Facilities.

These excerpts taken from the NDAQ 10-K filed Feb 27, 2009.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the year ended December 31, 2008:

•

Net income of $319.9 million, plus:

•

Non-cash items of approximately $91.6 million comprised primarily of depreciation and amortization expense of $92.6 million, loss on foreign currency contracts of $57.9 million, asset impairment charges of $42.2 million and share-based compensation of $25.7 million, partially offset by deferred taxes, net of $103.1 million and income from unconsolidated investees, net of $27.3 million.

•

Decrease in receivables, net of $31.6 million primarily due to lower Section 31 fees as a result of rate decreases.

•

Increase in accrued personnel costs of $20.9 million primarily due to additional incentive compensation reflecting stronger financial performance.

•

Increase in accounts payable and accrued expenses of $19.8 million primarily due to additional liquidity rebates from increased trade volume.

•

Increase in other liabilities of $17.6 million primarily due to additional SERP liabilities for the NASDAQ OMX PHLX benefit plans.

•

Partially offset by a:

•

Decrease in Section 31 fees payable to SEC of $54.2 million mainly due to lower Section 31 fees as a result of rate decreases.

•

Decrease in deferred revenue of $40.5 million primarily due to a decrease in the initial listing fees deferred revenue balance as a result of a decrease in new listings from 290 new listings during 2007 to 177 new listings during 2008, as well as the amortization of OMX’s annual listing fees.

•

Decrease in other accrued liabilities of $9.0 million primarily due to a decrease in income tax payable as a result of paying the 2007 tax liability related to the sale of our share capital in the LSE.

During the year ended December 31, 2007, the following items impacted our cash provided by operating activities:

•

Net income of $518.4 million, partially offset by:

•

Non-cash items of approximately $407.7 million comprised primarily of the gain on the sale of a strategic initiative of $431.4 million, gain on foreign currency option contracts of $44.0 million and deferred taxes, net of $15.6 million, partially offset by strategic initiative costs of $26.5 million, clearing contract charge of $10.6 million, loss on early extinguishment of debt of $7.0 million and depreciation and amortization expense of $38.9 million.

•

Increase in other accrued liabilities of $63.6 million primarily due to an increase in income tax payable due to the sale of our share capital in the LSE and an increase in pre-tax income. Deferred revenue also increased $7.2 million due to additional Global Listing Services billings. Partially offsetting these items, was a net increase of $18.8 million in assets, primarily due to an increase in receivables due to the recording of additional Section 31 fees and a net decrease of $7.7 million in other operating liabilities.

Cash provided by (used in) investing activities. Cash used in investing activities for the year ended December 31, 2008 is primarily due to cash used in connection with the business combination with OMX AB, as

well as the acquisitions of PHLX and BSX, the Nord Pool transaction, our purchase of a majority stake in IDCG and other acquisitions, net of cash acquired, as well as the acquisition of 33¹/3% of the equity of NASDAQ Dubai, for total cash paid of $2,998.8 million. In 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million which increased our cash provided by investing activities in 2007.

Cash provided by (used in) financing activities. Cash provided by financing activities for 2008 consisted of the proceeds from the issuance of $475.0 million aggregate principal amount of the 2.50% convertible senior notes and $2,000.0 million in senior secured indebtedness under our Credit Facilities, net of debt issuance costs paid of $53.3 million. See “Credit Facilities” below for further discussion. The proceeds from the 2.50% convertible senior notes and new Credit Facilities were partially offset by the refinancing of $352.9 million of OMX AB outstanding debt obligations at the time of the business combination. In addition, we made a $75.0 million principal payment in 2008 on our $2,000.0 million senior secured term loan facility. Cash used in financing activities for 2007 was primarily due to the repayment in full of our former credit facilities from the proceeds of the sale of the share capital of the LSE.

Changes in Cash Flows

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">Cash provided by operating activities. The following items impacted our cash provided by operating activities for the year ended December 31,
2008:

•

Net income of $319.9 million, plus:

•

Non-cash items of approximately $91.6 million comprised primarily of depreciation and amortization expense of $92.6 million, loss on foreign currency contracts of
$57.9 million, asset impairment charges of $42.2 million and share-based compensation of $25.7 million, partially offset by deferred taxes, net of $103.1 million and income from unconsolidated investees, net of $27.3 million.

•

Decrease in receivables, net of $31.6 million primarily due to lower Section 31 fees as a result of rate decreases.

STYLE="margin-top:0px;margin-bottom:-6px">

•

Increase in accrued personnel costs of $20.9 million primarily due to additional incentive compensation reflecting stronger financial performance.

•

Increase in accounts payable and accrued expenses of $19.8 million primarily due to additional liquidity rebates from increased trade volume.

•

Increase in other liabilities of $17.6 million primarily due to additional SERP liabilities for the NASDAQ OMX PHLX benefit plans.

STYLE="margin-top:0px;margin-bottom:-6px">

•

Partially offset by a:

•

Decrease in Section 31 fees payable to SEC of $54.2 million mainly due to lower Section 31 fees as a result of rate decreases.

STYLE="margin-top:0px;margin-bottom:-6px">

•

Decrease in deferred revenue of $40.5 million primarily due to a decrease in the initial listing fees deferred revenue balance as a result of a decrease in new
listings from 290 new listings during 2007 to 177 new listings during 2008, as well as the amortization of OMX’s annual listing fees.

•

During
the year ended December 31, 2007, the following items impacted our cash provided by operating activities:

•

Net income of $518.4 million, partially offset by:

•

Non-cash items of approximately $407.7 million comprised primarily of the gain on the sale of a strategic initiative of $431.4 million, gain on foreign currency
option contracts of $44.0 million and deferred taxes, net of $15.6 million, partially offset by strategic initiative costs of $26.5 million, clearing contract charge of $10.6 million, loss on early extinguishment of debt of $7.0 million and
depreciation and amortization expense of $38.9 million.

•

Increase in other accrued liabilities of $63.6 million primarily due to an increase in income tax payable due to the sale of our share capital in the LSE and an
increase in pre-tax income. Deferred revenue also increased $7.2 million due to additional Global Listing Services billings. Partially offsetting these items, was a net increase of $18.8 million in assets, primarily due to an increase in receivables
due to the recording of additional Section 31 fees and a net decrease of $7.7 million in other operating liabilities.

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">We expect that cash provided by operating activities may fluctuate in future periods as a result of a number of factors, including fluctuations in our
operating results, accounts receivable collections, share-based compensation and the timing and amount of other payments that we make.

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">Cash provided by (used in) investing activities. Cash used in investing activities for the year ended December 31, 2008 is primarily due to
cash used in connection with the business combination with OMX AB, as

well as the acquisitions of PHLX and BSX, the Nord Pool transaction, our purchase of a majority stake in IDCG and other acquisitions, net of cash acquired,
as well as the acquisition of 33¹/3% of the equity of NASDAQ Dubai, for total cash paid of $2,998.8 million. In 2007, in
conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million
which increased our cash provided by investing activities in 2007.

FACE="Times New Roman" SIZE="2">Cash provided by (used in) financing activities. Cash provided by financing activities for 2008 consisted of the proceeds from the issuance of $475.0 million aggregate principal amount of the 2.50% convertible
senior notes and $2,000.0 million in senior secured indebtedness under our Credit Facilities, net of debt issuance costs paid of $53.3 million. See “Credit Facilities” below for further discussion. The proceeds from the 2.50% convertible
senior notes and new Credit Facilities were partially offset by the refinancing of $352.9 million of OMX AB outstanding debt obligations at the time of the business combination. In addition, we made a $75.0 million principal payment in 2008 on our
$2,000.0 million senior secured term loan facility. Cash used in financing activities for 2007 was primarily due to the repayment in full of our former credit facilities from the proceeds of the sale of the share capital of the LSE.

STYLE="margin-top:0px;margin-bottom:0px">

This excerpt taken from the NDAQ 10-Q filed Nov 7, 2008.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the nine months ended September 30, 2008:

•

Net income of $283.1 million, partially offset by:

•

Non-cash items of approximately $14.6 million comprised primarily of deferred taxes, net of $61.8 million, income from unconsolidated investees, net of $27.5 million, foreign currency translation adjustment of $22.2 million, partially offset by depreciation and amortization of $65.7 million, share-based compensation of $18.5 million and loss on foreign currency contracts of $10.5 million.

•

Decrease in Section 31 fees payable to SEC of $89.2 million mainly due to payments made in March and September 2008 representing fees collected from September 2007 to August 2008.

•

Decrease in accrued personnel costs and other liabilities of $56.7 million primarily due to the payment of 2007 employee incentive compensation, partially offset by the increase in accounts payable and accrued expenses of $47.9 million primarily due to additional rebates payable as a result of increases in market share, as well as an increase in interest payable on our Credit Facilities.

During the nine months ended September 30, 2007, the following items impacted our cash provided by operating activities:

•

Net income of $439.4 million, partially offset by:

•

Non-cash items of approximately $402.4 million comprised primarily of the gain on the sale of a strategic initiative of $431.4 million, gain on foreign currency option contracts of $25.7 million and deferred taxes, net of $20.1 million, partially offset by strategic initiative costs of $26.5 million, clearing contract charge of $10.6 million, loss on early extinguishment of debt of $5.8 million and depreciation and amortization of $29.3 million.

•

Increase in deferred revenue of $40.1 million mainly due to Issuer Services’ annual billings.

•

Increase in other accrued liabilities of $178.9 million primarily due to increased income tax payable due to the sale of our share capital in the LSE, increased pre-tax income, additional rebates payable as a result of increases in market share, as well as an increase in interest payable on our Credit Facilities.

•

An increase in receivables, net of $58.4 million, partially offset by a decrease in Section 31 fees payable to SEC of $40.4 million. Receivables, net increased due to the recording of additional Section 31 fees and Issuer Services’ annual billings. Section 31 payable to SEC decreased due to the payment in September of Section 31 fees to the SEC representing the fees collected from January to August 2007.

Cash provided by (used in) investing activities. The decrease in cash provided by (used in) investing activities in the first nine months of 2008 compared with the first nine months of 2007 is primarily due to the cash used in connection with the business combination with OMX and acquisitions of PHLX and BSX, net of cash acquired, as well as the acquisition of 33¹/3% of the equity of DIFX, for total cash paid of $2,727.1 million. In the first nine months of 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million which increased our cash provided by investing activities in the first nine months of 2007.

Cash provided by (used in) financing activities. Cash provided by financing activities for the first nine months of 2008 consisted of the proceeds from the issuance of $475.0 million aggregate principal amount of the 2.50% convertible senior notes and $2,000.0 million in senior secured indebtedness under our Credit Facilities, net of debt issuance costs paid of $49.2 million. See “Credit Facilities” below for further discussion. The proceeds from the 2.50% convertible senior notes and new Credit Facilities were partially offset by the refinancing of $352.9 million of OMX outstanding debt obligations at the time of the business combination. In addition, we made a $37.5 million principal payment in the third quarter of 2008 on our $2,000.0 million senior secured term loan facility. Cash used in financing activities for the first nine months of 2007 was primarily due to the repayment in full of our former credit facilities from the proceeds of the sale of the share capital of the LSE.

This excerpt taken from the NDAQ 10-Q filed Aug 8, 2008.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the six months ended June 30, 2008:

•

Net income of $223.0 million, partially offset by:

•

Non-cash items of approximately $49.7 million comprised primarily of the gain on foreign currency contracts of $40.1 million, deferred taxes, net of $38.7 million and income from unconsolidated investees, net of $27.6 million, partially offset by depreciation and amortization of $38.1 million, share-based compensation of $11.5 million and foreign currency translation adjustment of $9.5 million.

•

Increase in deferred revenue of $48.7 million mainly due to Issuer Services’ annual billings.

•

Increase in accounts payable and accrued expenses and other accrued liabilities of $50.0 million primarily due to additional rebates payable as a result of increases in market share, as well as an increase in interest payable on our credit facilities.

During the six months ended June 30, 2007, the following items impacted our cash provided by operating activities:

•

Net income of $74.4 million.

•

Non-cash charges of approximately $41.4 million, comprised primarily of strategic initiative costs of $26.5 million, a clearing contract charge of $10.6 million, a loss on foreign currency option contracts of $9.5 million, and depreciation and amortization of $19.6 million, partially offset by deferred taxes, net of $32.7 million.

•

Increase in deferred revenue of $77.7 million mainly due to Corporate Client Group’s annual billings.

•

An increase an increase in Section 31 fees payable to SEC of $72.2 million, partially offset by an increase in receivables, net of $48.8 million. Section 31 fees payable to SEC increased due to the recording of additional Section 31 fees in connection with The Nasdaq Stock Market’s operation as an exchange as well as the recording of additional rebates payable as a result of increases in market share. Receivables, net increased also due to the recording of additional Section 31 fees and Issuer Services’ annual billings.

•

Decrease in accrued personnel costs of $21.5 million primarily due to payment of the 2006 employee incentive compensation in February 2007, partially offset by the 2007 accrual for employee incentive compensation.

Cash provided by (used in) investing activities. The decrease in cash provided by (used in) investing activities in the first six months of 2008 compared with the first six months of 2007 is primarily due to the cash used in connection with the business combination with OMX, net of cash acquired, as well as the acquisition of 33¹/3% of the equity of DIFX and, for total cash paid of $1,976.0 million. In the first six months of 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million which increased our cash provided by investing activities in the first six months of 2007.

Cash provided by financing activities. Cash provided by financing activities for the first six months of 2008 consisted of the proceeds from the issuance of $475.0 million aggregate principal amount of the 2.50% convertible senior notes and $1,050.0 million in senior secured indebtedness under our credit facilities, net of debt issuance costs paid of $48.0 million. See “Credit Facilities” below for further discussion. The proceeds from the 2.50% convertible senior notes and new credit facilities were partially offset by the refinancing of $352.9 million of OMX outstanding debt obligations at the time of the business combination.

This excerpt taken from the NDAQ 10-Q filed May 9, 2008.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the quarter ended March 31, 2008:

•

Net income of $121.4 million, partially offset by:

•

Non-cash items of approximately $62.5 million, comprised primarily of the gain on foreign currency contracts of $35.3 million, deferred taxes, net of $29.9 million and gain from unconsolidated investees, net of $26.3 million, partially offset by depreciation and amortization of $15.9 million and share-based compensation of $5.4 million.

•

Increase in deferred revenue of $93.3 million mainly due to Corporate Client Group’s annual billings.

•

Increase in income tax payable of $73.4 million primarily due to current taxable income partially offset by taxes paid in the first quarter of 2008.

During quarter ended March 31, 2007, the following items impacted our cash provided by operating activities:

•

Net income of $18.3 million.

•

Non-cash charges of approximately $28.8 million, comprised primarily of strategic initiative costs of $24.9 million, a clearing contract charge of $10.6 million, a loss on foreign currency option contracts of $7.8 million, and depreciation and amortization of $9.8 million, partially offset by deferred taxes, net of $31.0 million.

•

Increase in deferred revenue of $111.1 million mainly due to Corporate Client Group’s annual billings.

•

An increase in accounts payable and accrued expenses of $19.4 million and an increase in Section 31 fees payable to SEC of $12.9 million, offset by an increase in receivables, net of $67.4 million. Accounts payable and accrued expenses increased mainly due to the recording of additional rebates payable as a result of increases in share volume. Section 31 fees payable to SEC increased due to the recording of additional Section 31 fees in connection with NASDAQ’s operations as an exchange. Receivables, net increased also due to the recording of additional Section 31 fees and Corporate Client Group’s annual billings.

•

Decrease in accrued personnel costs of $30.3 million primarily due to payment of the 2006 employee incentive compensation in February 2007, partially offset by the 2007 accrual for employee incentive compensation.

Cash provided by (used in) investing activities. The decrease in cash provided by (used in) investing activities in the first quarter of 2008 compared with the first quarter of 2007 is primarily due the cash used in connection with the business combination with OMX, net of cash acquired, as well as the acquisition of 33¹/3% of the equity of DIFX and the acquisition of Agora-X, for total cash paid of $1,963.6 million. In the first quarter of 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million which increased our cash provided by investing activities in the first quarter of 2007.

Cash provided by financing activities. Cash provided by financing activities for the first quarter of 2008 consisted of the proceeds from the issuance of $475.0 million aggregate principal amount of convertible senior notes and $1,050.0 million in senior secured indebtedness under our credit facilities. See “Credit Facilities” below for further discussion. The proceeds from the convertible notes and new credit facilities were partially offset by the refinancing of $352.9 million of OMX outstanding debt obligations at the time of the business combination.

This excerpt taken from the NDAQ 10-K filed Feb 25, 2008.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the year ended December 31, 2007:

•

Net income of $518.4 million, partially offset by:

•

Non-cash items of approximately $407.7 million, comprised primarily of the gain on the sale of strategic initiative of $431.4 million, gain on foreign currency option contracts of $44.0 million and deferred taxes, net of $15.6 million, partially offset by strategic initiative costs of $26.5 million, clearing contract charge of $10.6 million, loss on the early extinguishment of debt of $7.0 million and depreciation and amortization of $38.9 million.

•

Increase in income tax payable of $81.9 million primarily due to the sale of our share capital in the LSE and an increase in pre-tax income. Deferred revenue also increased $7.2 million due to additional Corporate Client Group’s billings. Partially offsetting these items, was a net increase of $18.8 million in assets, primarily due to an increase in receivables due to the recording of additional Section 31 fees and a net decrease of $7.7 million in other operating liabilities.

During 2006, the following items impacted our cash provided by operating activities:

•

Net income of $127.9 million.

•

Non-cash charges of approximately $49.4 million, comprised primarily of depreciation and amortization of $70.9 million and loss on the early extinguishment and refinancing of debt obligations of $22.0 million, partially offset by a gain on foreign currency option contracts of $48.4 million.

•

Increase in other operating liabilities of $36.7 million, mainly due to an increase in Section 31 fees payable to SEC and income tax payable of $83.3 million due to the recording of additional Section 31 fees in connection with Nasdaq’s operation as a national securities exchange. Partially offsetting the increase in operating liabilities was a decrease in accounts payable and accrued expenses, other accrued liabilities, accrued personnel costs, payables to related parties and other liabilities totaling $46.6 million due to timing of payments.

Cash provided by (used in) investing activities. The increase in cash provided by (used in) investing activities in 2007 compared with 2006 is primarily due to the proceeds from sales and redemptions and maturities of available-for-sale investments of $1.9 billion, which includes the proceeds from the sale of our share capital in the LSE of $1.8 billion. Also contributing to the increase was $67.9 million from settlement of foreign currency option contracts primarily related to our acquisition bid for the LSE. In 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million. Partially offsetting these increases were the purchase of foreign currency option contracts of $13.0 million for our proposed combination with OMX, purchases of available-for-sale investments of $80.4 million, the acquisition of Directors Desk for $8.0 million, other purchase acquisition related adjustments of $7.1 million and purchases of property and equipment of $18.5 million. For 2006, the increase in cash used in investing activities compared with 2005 is primarily attributable to purchases of available-for-sale investments, including our purchase of LSE shares, purchase of foreign currency option contracts to hedge our acquisition bid for the LSE, and our acquisitions of Shareholder.com and PrimeNewswire, partially offset by proceeds from redemptions and maturities of available-for-sale investments and from the sale of our building in Connecticut.

Cash provided by (used in) financing activities. Cash used in financing activities for 2007 was primarily due to the repayment in full of the credit facilities from the proceeds of the sale of the share capital of the LSE. Cash provided by financing activities increased in 2006 compared with 2005 primarily due to the proceeds we received from our credit facilities and the net proceeds from our equity offerings in the first six months of 2006, partially offset by funds used for payments of our debt obligations and redemption of our Series C Cumulative preferred stock.

This excerpt taken from the NDAQ 10-Q filed Nov 9, 2007.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the nine months ended September 30, 2007:

•

Net income of $439.4 million, partially offset by:

•

Non-cash items of approximately $402.4 million, comprised primarily of the gain on the sale of strategic initiative of $431.4 million, gain on foreign currency option contracts of $25.7 million and deferred taxes, net of $20.1 million, partially offset by strategic initiative costs of $26.5 million, clearing contract charge of $10.6 million, loss on the early extinguishment of debt of $5.8 million and depreciation and amortization of $29.3 million.

•

Increase in deferred revenue of $40.1 million mainly due to Corporate Client Group’s annual billings.

•

Increase in income tax payable of $145.9 million primarily due to the sale of our share capital in the LSE and an increase in pre-tax income. We expect to pay a significant portion of this payable in the fourth quarter of 2007.

•

An increase in receivables, net of $58.4 million, partially offset by a decrease in Section 31 fees payable to SEC of $40.4 million. Receivables, net increased due to the recording of additional Section 31 fees and Corporate Client Group’s annual billings. Section 31 fees payable to SEC decreased due to the payment in September of Section 31 fees to the SEC in connection with The Nasdaq Stock Market’s operation as an exchange representing the fees collected from January to August 2007.

During the nine months ended September 30, 2006, the following items impacted our cash provided by operating activities:

•

Net income of $64.9 million.

•

Non-cash charges of approximately $72.1 million comprised primarily of depreciation and amortization of $60.3 million and loss on the early extinguishment and refinancing of debt obligations of $20.9 million.

•

Decrease in other operating liabilities of $20.2 million, mainly due to a decrease in accrued personnel costs of $13.5 million, reflecting payments associated with severance liabilities and a decrease in payables to related parties and other liabilities of $11.1 million due to timing of payments.

Cash provided by (used in) investing activities. The increase in cash provided by (used in) investing activities in the first nine months of 2007 compared with the first nine months of 2006 is primarily due to the proceeds from sales and redemptions and maturities of available-for-sale investments of $1,907.3 million, which includes the proceeds from the sale of our share capital in the LSE of $1,784.2 million. Also contributing to the increase was $67.9 million from settlement of foreign currency option contracts primarily related to our acquisition bid for the LSE. In the first nine months of 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million. Partially offsetting these increases were the purchase of foreign currency option contracts of $13.0 million for our proposed combination with OMX, purchases of available-for-sale investments of $80.4 million, the acquisition of Directors Desk for $8.0 million and purchases of property and equipment of $13.7 million. For the first nine months of 2006, cash used in investing activities was primarily attributable to purchases of available-for-sale investments, including our LSE shares, of $1,651.0 million, the acquisitions of Shareholder.com and PrimeNewswire totaling $54.0 million (net of cash and cash equivalents acquired) and purchases of property and equipment of $12.3 million, partially offset by proceeds from redemptions and maturities of available-for-sale investments of $491.9 million and from the sale of our building of $30.3 million.

Cash (used in) provided by financing activities. Cash used in financing activities for the first nine months of 2007 was primarily due to the repayment in full of the Credit Facilities from the proceeds of the sale of the share capital of the LSE. Cash provided by financing activities in the first nine months of 2006 was primarily due to the proceeds we received from our Credit Facilities and the net proceeds from our equity offerings in the first six months of 2006, partially offset by funds used for payments of our debt obligations and redemption of our Series C Cumulative preferred stock.

This excerpt taken from the NDAQ 10-Q filed Aug 1, 2007.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the six months ended June 30, 2007:

•

Net income of $74.4 million.

•

Increase in deferred revenue of $77.7 million mainly due to Corporate Client Group’s annual billings.

•

An increase in Section 31 fees payable to SEC of $72.2 million, partially offset by an increase in receivables, net of $48.8 million. Section 31 fees payable to SEC increased due to the recording of additional Section 31 fees in connection with The Nasdaq Stock Market’s operation as an exchange as well as the recording of additional rebates payable as a result of increases in market share. Receivables, net increased also due to the recording of additional Section 31 fees and Corporate Client Group’s annual billings.

•

During the six months ended June 30, 2006, the following items impacted our cash provided by operating activities:

•

Net income of $34.6 million.

•

Non-cash charges of approximately $60.2 million comprised primarily of depreciation and amortization of $46.0 million and loss on the early extinguishment and refinancing of debt obligations of $20.9 million.

•

Decrease in other operating liabilities of $48.8 million, mainly due to a decrease in accrued personnel costs of $19.5 million, reflecting payments associated with severance liabilities and a decrease in other accrued liabilities, payables to related parties and accounts payable and accrued expenses of $27.4 million due to timing of payments.

Cash provided by (used in) investing activities. The increase in cash provided by (used in) investing activities in the first six months of 2007 compared with the first six months of 2006 is primarily attributable to purchases of available-for-sale investments, including our LSE shares of $1.5 billion and the acquisition of Shareholder.com of $38.1 million both in the first six months of 2006, partially offset by proceeds from redemptions and maturities of available-for-sale investments of $421.1 million also in the first six months of 2006. In addition, in the first six months of 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million which increased our cash provided by investing activities in the first six months of 2007. Partially offsetting this increase was the $13.0 million purchase of foreign currency option contracts for the proposed combination with OMX.

Cash provided by financing activities. Cash provided by financing activities decreased in the first six months of 2007 compared with the first six months of 2006 primarily because of proceeds we received from debt obligations and the net proceeds from our equity offerings in the first six months of 2006, partially offset by funds used for payments of our debt obligations and redemption of our Series C Cumulative preferred stock.

This excerpt taken from the NDAQ 10-Q filed May 9, 2007.

Changes in Cash Flows

Cash provided by operating activities. The following items impacted our cash provided by operating activities for the quarter ended March 31, 2007:

•

Net income of $18.3 million.

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Increase in deferred revenue of $111.1 million mainly due to Corporate Client Group’s annual billings.

•

An increase in accounts payable and accrued expenses of $32.4 million, offset by an increase in receivables, net of $67.4 million. Accounts payable and accrued expenses increased mainly due to the recording of additional Section 31 fees in connection with NASDAQ’s operations as an exchange as well as the recording of additional rebates payable as a result of increases in share volume. Receivables, net increased also due to the recording of additional Section 31 fees and Corporate Client Group’s annual billings.

•

During quarter ended March 31, 2006, the following items impacted our cash provided by operating activities:

•

Net income of $18.0 million.

•

Non-cash charges of approximately $9.5 million, comprised primarily of depreciation and amortization of $24.5 million partially offset by income tax benefit related to share-based compensation of $15.3 million.

•

Decrease in other operating liabilities of $48.7 million, mainly due to decreases in accrued personnel costs, other accrued liabilities and payables to related parties, due to timing of payments. Partially offsetting the decrease in operating liabilities was an increase in receivables, net of $12.1 million primarily due to acquisitions, partially offset by collections.

Cash provided by (used in) investing activities. The increase in cash provided by (used in) investing activities in the first quarter of 2007 compared with the first quarter of 2006 is primarily attributable to purchases of available-for-sale investments of $262.4 million and the acquisition of Shareholder.com of $38.1 million both in the first quarter of 2006, partially offset by proceeds from redemptions of available-for-sale investments of $195.7 million also in the first quarter of 2006. In addition, in the first quarter of 2007, in conjunction with the lapse of our final offers for the LSE in February 2007, we traded out of foreign currency option contracts which were purchased at the time of the commencement of our bid. These contracts were cash settled for $63.9 million which increased our cash provided by investing activities in the first quarter of 2007.

Cash provided by financing activities. Cash provided by financing activities decreased in the first quarter of 2007 compared with the first quarter of 2006 primarily because of net proceeds from our equity offerings in the first quarter of 2006, partially offset by funds used for payment of our Series C Cumulative preferred stock.

EXCERPTS ON THIS PAGE:

10-Q	May 8, 2009

10-K (2 sections)	Feb 27, 2009

10-Q	Nov 7, 2008

10-Q	Aug 8, 2008

10-Q	May 9, 2008

10-K	Feb 25, 2008

10-Q	Nov 9, 2007

10-Q	Aug 1, 2007

10-Q	May 9, 2007

NASDAQ OMX Group (NDAQ)

NDAQ » Topics » Changes in Cash Flows

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