Term |
Definition | |
AI |
Artificial intelligence | |
“Big 3” segments |
Our combined Legal Professionals, Corporates and Tax & Accounting Professionals segments | |
Blackstone’s consortium |
The Blackstone Group and its subsidiaries, and private equity funds affiliated with Blackstone | |
bp |
Basis points – one basis point is equal to 1/100th of 1%,“100bp” is equivalent to 1% | |
Change Program |
A two-year initiative, completed in December 2022, that focused on transforming our company from a holding company to an operating company and from a content provider into a content-driven technology company | |
constant currency |
A non-IFRS measure derived by applying the same foreign currency exchange rates to the financial results of the current and equivalent prior-year period | |
COVID-19 |
A novel strain of coronavirus that was characterized a pandemic by the World Health Organization in March 2020 | |
EPS |
Earnings per share | |
IFRS |
International Financial Reporting Standards | |
LSEG |
London Stock Exchange Group plc | |
ML |
Machine learning | |
n/a | Not applicable | |
n/m |
Not meaningful | |
organic or organically |
A non-IFRS measure that represents changes in revenues of our existing businesses at constant currency. The metric excludes the distortive impacts of acquisitions and dispositions from not owning the business in both comparable periods | |
Refinitiv |
Our former Financial & Risk business, which is now the Data & Analytics business of LSEG. We owned 45% of Refinitiv from October 1, 2018 through January 29, 2021. | |
Woodbridge |
The Woodbridge Company Limited, our principal and controlling shareholder | |
YPL |
York Parent Limited, the entity that owns LSEG shares, which is jointly owned by our company and the Blackstone consortium. References to YPL also include its subsidiaries. YPL was previously known as Refinitiv Holdings Limited prior to the sale of Refinitiv to LSEG on January 29, 2021. | |
$ and US$ |
U.S. dollars |
2 | ||||
2 | ||||
5 | ||||
5 | ||||
6 | ||||
6 | ||||
6 | ||||
7 | ||||
7 | ||||
9 | ||||
9 | ||||
9 | ||||
10 | ||||
10 | ||||
10 | ||||
11 | ||||
11 | ||||
12 | ||||
13 | ||||
18 | ||||
19 | ||||
36 | ||||
100 | ||||
173 | ||||
173 | ||||
176 | ||||
180 | ||||
181 | ||||
182 | ||||
182 | ||||
183 | ||||
184 | ||||
185 | ||||
185 | ||||
186 | ||||
186 | ||||
187 | ||||
188 | ||||
189 | ||||
190 | ||||
191 | ||||
191 | ||||
195 | ||||
196 | ||||
196 | ||||
198 | ||||
198 | ||||
199 |
Legal Professionals Serves law firms and governments with research and workflow products, focusing on intuitive legal research powered by emerging technologies, including generative AI, and integrated legal workflow solutions that combine content, tools and analytics. | ||
Corporates Serves corporate customers from small businesses to multinational organizations, including the seven largest global accounting firms, with our full suite of content-driven technologies, including generative AI, providing integrated workflow solutions designed to help our customers digitally transform and achieve their business outcomes. | ||
Tax & Accounting Professionals Serves tax, accounting and audit professionals in accounting firms (other than the seven largest, which are served by our Corporates segment) with research and workflow products, focusing on intuitive tax offerings and automating tax workflows. | ||
Reuters News Supplies business, financial and global news to the world’s media organizations, professionals and news consumers through Reuters News Agency, Reuters.com, Reuters Events, Thomson Reuters products and to financial market professionals exclusively via LSEG products. | ||
|
Global Print Provides legal and tax information primarily in print format to customers around the world. |
Attractive Industry · billion market expected to grow between 7% and 10% over the next 5 years · |
Balanced and Diversified Leadership · · · |
Attractive Business Model · · · |
Strong Competitive Positioning · · · |
Disciplined Financial Policies · · · · |
* | The news agreement with the Data & Analytics business of LSEG. |
· |
2021 two-year Change Program with a goal to drive growth and efficiency by transitioning our company from a holding company into an operating company, and from a content provider into a content-driven technology company. In 2021, we and private equity funds affiliated with Blackstone closed the sale of Refinitiv to LSEG. For additional information about the transaction, please see the “Additional Information – Investment in LSEG” section of this annual report. |
· |
2022 two-year Change Program was completed by the end of 2022. We achieved $540 million of annualized run-rate operating expense savings and made significant progress transforming Thomson Reuters into a more streamlined and scalable business that we believe has a strong foundation for sustainable future growth. In 2022, LSEG repurchased approximately 1.2 million ordinary shares from YPL under a buyback program announced by LSEG in August 2022. We received proceeds of $43 million, for approximately 0.5 million shares, related to our portion of the buyback. For additional information about the transaction, please see the “Additional Information – Investment in LSEG” section of this annual report. In 2022, we also launched Westlaw Precision, a new version of Westlaw designed to dramatically improve research speed and quality by enabling lawyers to target precisely what they are looking for. |
· |
2023 AI-based initiatives, including generative AI. In November 2023, we announced a series of generative AI initiatives designed to assist in the transformation of the legal profession. Most notably, the commercial releases of AI-Assisted Research on Westlaw Precision and CoCounsel Core AI Assistant for lawyers. In 2023, we further deepened our focus on content-enabled technology with the acquisitions of SurePrep, LLC, Imagen Ltd., Casetext, Inc., and the remaining interest in Westlaw Japan. |
Brand |
Type of Product/Service |
Legal Professionals |
Corporates |
Tax & Accounting Professionals | ||||
Westlaw Westlaw Edge (U.S., U.K. & Canada) Westlaw Precision (U.S) Sweet & Maxwell (U.K.) La Ley (Argentina) |
Legal, regulatory and compliance information-based products and services. Westlaw is our primary online legal research delivery platform. Westlaw offers authoritative content, powerful search functionality and research organization, team collaboration features and navigation tools to find and share specific points of law and search for analytical commentary. Westlaw employs proprietary, innovative technology including generative AI. Localized versions of online legal research services are provided in Argentina, Australia, Brazil, Canada, Chile, Ireland, Japan, New Zealand, the United Kingdom, United States, Uruguay and other countries. Through Westlaw International, Westlaw Asia and Westlaw Middle East, we offer our online products and services to customers in markets where we do not offer a fully localized Westlaw service. |
|||||||
Practical Law Practical Law Connect Practical Law Dynamic Tool Set |
Legal know-how, current awareness and workflow tools with embedded guidance from expert practitioners. Practice notes, standard documents, checklists and What’s Market tools cover a wide variety of practice areas such as commercial, corporate, labor and employment, intellectual property, finance and litigation. Practical Law currently has localized product offerings in the United Kingdom, United States, Canada, and Australia. Through Practical Law Global and our local Practical Law offerings, we offer our online products and services to customers in markets where we do not have a fully localized service. |
|||||||
CoCounsel CoCounsel Core |
Solutions delivering integrated content and generative AI into workflows for legal professionals. |
Brand |
Type of Product/Service |
Legal Professionals |
Corporates |
Tax & Accounting Professionals | ||||
CLEAR CLEAR Risk Inform CLEAR ID Confirm CLEAR Adverse Media Sanctions PeopleMap |
Public and proprietary records about individuals and companies with tools for immediately usable results. |
|||||||
HighQ |
Cloud-based collaboration and workflow platform for the legal and regulatory market segment. |
|||||||
Document Intelligence |
Contract and document analysis tool powered by artificial intelligence. |
|||||||
Drafting Assistant |
Integrated solution to streamline the drafting process for legal documents. |
|||||||
Case Center |
Cloud-based evidence-sharing platform for sharing documents and multimedia between justice agencies for trial preparation and courtroom presentation. |
|||||||
Fraud Analytics Fraud Detect ID Risk Analytics Case Tracking |
A suite of data and analytics solutions to help auditors, investigators and managers detect fraud, waste and abuse in healthcare and large government subsidy programs. |
|||||||
Checkpoint Checkpoint Edge (U.S. & Canada) |
Integrated tax, audit and accounting research solution that delivers news, editorial insights, authoritative content and linked primary sources integrated throughout Thomson Reuters workflow productivity tools, applications and software. |
|||||||
FindLaw |
Online legal directory, website creation and hosting services, law firm marketing solutions and peer rating services. |
|||||||
Legal Tracker |
Online spend and matter management, e-billing, legal analytics services, and document storage, search and retrieval. |
|||||||
Regulatory Intelligence |
Information and software products that provide a single source for regulatory news, analysis, rules and developments, with global coverage of more than 400 regulators and exchanges. |
|||||||
ONESOURCE ONESOURCE Global Trade |
Global cloud-based tax and trade solutions that reduce risk and regulatory complexity, improving the accuracy of a company’s entire tax or trade lifecycle. Integrating openly with existing technology and ecosystem solutions to manage direct and indirect tax compliance, indirect tax determination, statutory reporting, trust taxation, tax information reporting, tax planning, trade compliance, trade operations, trade special programs, trade regulatory content and overall data and process management. |
|||||||
Confirmation |
Cloud-based platform to automate the workflow of the confirmations process of an audit. Used by a global network of audit firms, banks and law firms to increase efficiency and reduce risk. |
Brand |
Type of Product/Service |
Legal Professionals |
Corporates |
Tax & Accounting Professionals | ||||
Dominio |
Accounting management and tax management software solutions for accounting firms, and micro and small companies in Brazil. | |||||||
Cloud Audit Suite |
End-to-end |
|||||||
UltraTax & CS Professional Suite |
Scalable, integrated suite of desktop and online software applications that encompass key aspects of a professional accounting firm’s operations, from collecting customer data and posting finished tax returns to the overall management of the accounting practice. | |||||||
SurePrep |
Software and services that automate tax preparation supporting a digital tax workflow for accounting firms and their clients. Solutions TaxCaddy, 1040SCAN and SPbinder streamline the entire 1040 tax process for tax professionals and taxpayers. |
By Region |
||||
Americas |
14,500 |
|||
Asia Pacific |
7,800 |
|||
Europe, Middle East and Africa (EMEA) |
3,300 |
|||
By Unit |
||||
Legal Professionals |
1,000 |
|||
Corporates |
1,100 |
|||
Tax & Accounting Professionals |
1,400 |
|||
Global Print |
800 |
|||
Reuters News |
3,500 |
|||
Product & Editorial |
3,400 |
|||
Operations & Technology |
8,700 |
|||
Corporate Center (Enabling Functions) |
1,400 |
|||
Commercial Functions (1) |
1,200 |
|||
Other (2) |
3,100 |
|||
Thomson Reuters |
25,600 |
We post a Social Impact & ESG Report annually on our website, www.tr.com/social-impact-report, which summarizes our strategy, includes stories of progress and tracks performance, tying our efforts to our business strategy and commercial expertise. The report highlights how we run our business with purpose, manage our sustainability goals, foster an inclusive workplace, and make a difference in communities through wider-ranging social impact programs pursuing access to justice, truth and transparency. We encourage you to review the Social Impact & ESG Report to gain a better understanding of our accomplishments and practices in these areas. |
· |
We continue to source renewable energy for 100% of our operations. We have achieved this largely through the purchase of renewable power by matching our electricity usage with renewable energy credits acquired around the world. We are also working closely with our suppliers to drive lower emissions within our supply chain. |
· |
We joined the Science Based Targets Initiative (SBTi) in 2020, aligning to the most ambitious 1.5-degree Celsius pathway. Thomson Reuters is among a leading group of approximately 2,700+ companies globally to have done so. |
· |
In 2020, we announced our commitment to targeting net-zero emissions by 2050. As of the end of 2022, we had reduced our Scope 1 and Scope 2 GHG emissions by 93% from our 2018 baseline and we are significantly ahead of our SBTI commitment. We will continue to measure and manage our own emissions and environmental impacts and continue to identify ways to further assess, monitor and improve our carbon footprint. |
· |
We continue to optimize our real estate portfolio utilization to adjust to market trends, business needs, and evolving ways of working. This is contributing to a decreased carbon footprint by reducing the number of office locations. |
· |
Our strategy is to migrate more of our revenue to the cloud with the aim of reducing our environmental footprint as we rely less on energy consumption associated with company-managed data centers. We continue to take advantage of cloud hosting environments that are transparent with their operations, resources and utilization with a focus on optimized waste reduction. |
· |
Some of our content and other information products help our customers address climate change matters. For example, Practical Law includes a tracker covering key Biden Administration actions and initiatives on climate, energy and environmental issues and other resources related to climate change disclosures for U.S. public companies. The Thomson Reuters Institute also launched an ESG Resource Center which offers insights for corporations and governments around the world on the most pressing current and future issues concerning ESG topics. |
· |
Equality 100 and 100% score on Corporate Equality Index, Human Rights Campaign |
· |
Best Places to Work for LGBTQIAP Mexico, Best Place to Work for LGBTQIAP+ Brazil, Best Place to Work for LGBTQIAP+ Argentina, Human Rights Campaign |
· |
Best Places to Work for Disability Inclusion and 100% score on Disability Inclusion Index, Disability:IN |
· |
Great Place to Work Certified in six countries: Philippines, Canada, Brazil, India, Costa Rica and Japan |
· |
Best Workplace for Technology, Large Companies in Canada and Brazil, Great Place to Work |
· |
Best Workplace for Women in India, Great Place to Work |
· |
Greater Toronto’s Top Employers, Canada’s Top 100 |
· |
Best Places to Work in Canada, Glassdoor Canada |
· |
Top Company Leader for Women Technologists, AnitaB.org |
Goal |
2021 |
2022 |
2023 |
2024 Goal | ||||
Women in senior leadership |
41% | 41% | 42% | 45% | ||||
Racially/ethnically diverse talent in senior leadership |
16% | 18% | 18% | 20% | ||||
Number of Black employees in senior leadership |
38 | 38 | 41 | 60 |
· |
Sponsorship of ten business resource groups (BRGs), which play a critical role in driving awareness and understanding of diverse backgrounds, cultivating a culture of belonging and execution against our D&I strategy. This includes the launch of our new Interfaith Employee Network – focused on fostering inclusion, belonging and allyship for the range of global faiths and spiritual diversity that exists in our workforce. Our other BRGs include the Asian Affinity Network, Black Employee Network, Disability Employee Network, Early Careers Network, Indigenous Peoples Network, Latino Employee Network, Pride at Work, Veterans Network and Women at Thomson Reuters. Collectively, our BRGs span more than 80 chapters across the world with the support over 140 volunteer co-chairs. |
· |
Focused on accelerating the careers of talent through three employee-led leadership development conferences. Aspire to Lead, led by Women at Thomson Reuters, brings together powerful speakers, skill-building workshops and networking opportunities to inspire women and allies to lead with confidence in their professional and personal lives. Celebrating its 11th year, the virtual conference brought together over 2,300 employees to “Unleash your Superpower.” BENergy, hosted by our Black Employee Network, focused on career mobility, goal setting, personal branding and networking. Sessions focused on removing the ambiguity of what it takes to achieve career and development goals. And, ECN Worldwide, hosted by our Early Careers Network (ECN), helped attendees explore the range of career opportunities at Thomson Reuters and reframe career paths as a lattice with multiple options. |
· |
Expansion of our Connected Leaders Academy (in partnership with McKinsey) to include a new Leadership Essential Program to complement the existing Executive Leadership and Management Accelerator learning paths. Since the launch in 2021, the Connected Leaders Academy at Thomson Reuters has reached over 820 racial and ethnically diverse talent that self-identify as Black, Hispanic/Latino and Asian from 15 countries. The robust alumni network of talent from this program continues to come together for our newly launched Peer Learning sessions and bimonthly networking meetings. |
· |
Continued to invest in and make progress on our core D&I initiatives. We grew the completeness of our voluntary self-identification data by 7% through our Count Me In internal initiative, further deepening our talent insights. We continued to highlight our Breaking Bias program and enroll new and existing employees in this enterprise training, resulting in 67% global employee completion. Through Ten Thousand Coffees, our digital platform that democratizes access to social learning, networking and mentorship, over 15,000 employee connections were made by colleagues across the world and over 100 office hours were hosted by Thomson Reuters leaders. |
Facility |
Approx. Sq. Ft. |
Owned/Leased |
Principal Use | |||
610 Opperman Drive, Eagan, Minnesota, United States |
2,711,860 | Owned | Legal Professionals headquarters and Global Print operating facilities | |||
2900 Ames Crossing Rd. Eagan, Minnesota, United States |
308,070 | Subleased | Legal Professionals headquarters beginning in the second quarter of 2024. | |||
6300 Interfirst Drive, Ann Arbor, Michigan, United States |
247,210 | Owned | Tax & Accounting Professionals operating facility | |||
Knowledge Court, Bangalore, India |
150,760 | Leased | Thomson Reuters shared services center | |||
5 Canada Square, London, United Kingdom |
133,400 | Subleased | Legal Professionals, Tax & Accounting Professionals and Reuters News operating facility | |||
Hyderabad, Bldg. 11 Madhapur, Hyderabad, India |
130,319 | Leased | Global shared service center. | |||
19 Duncan Street Toronto, Ontario, Canada |
129,950 | Leased | Thomson Reuters headquarters | |||
2395 Midway Road, Carrollton, Texas, United States |
78,720 | Leased (1) |
Tax & Accounting Professionals and Corporates operating facility. | |||
Reforma Cuarzo 26 Paseo de la Reforma, Mexico City, Mexico |
60,650 | Leased | Global shared service center | |||
3 Times Square, New York, New York, United States |
46,100 | Owned/leased (2) |
Reuters News, Legal Professionals and Corporates operating facility | |||
Landis & Gyr 3, Zug, Switzerland |
31,870 | Leased | Enterprise Centre |
(1) | In December 2023, we sold our Carrollton facility, which was formerly our Tax & Accounting operating facility. In an effort to assist with the transition into our new office space, we have leased back a portion of the office space within the Carrollton facility. |
(2) | The landlord (3XSQ Associates) is an entity owned by one of our subsidiaries and Rudin Times Square Associates LLC. 3XSQ Associates was formed to build and operate the 3 Times Square property. |
Risk Category |
Page |
|||
Strategic Risks | 19 | |||
Technology and Data Risks | 24 | |||
Operational Risks | 27 | |||
Legal, Regulatory and Intellectual Property Risks | 29 | |||
Financial Risks | 33 | |||
Corporate Structure Risks | 34 |
· |
The profitability of our products and services relies on our customers’ demand for and usage of our products and services. While we endeavour to accurately predict these trends, with the recent impact technology has had on our customers’ business models, it has become difficult to accurately predict our customers’ demand for our products and services. Cost-cutting, |
reduced spending or reduced activity by customers may decrease demand for, and usage of, some of our products and services. This could adversely affect our financial results by reducing our revenues, which could in turn reduce the profitability of some of our products and services. Some of our customers may also slow down decision-making or delay planned renewals or implementations because of economic conditions, which may disrupt historical spending patterns. |
· |
Law firms continue to be challenged by corporate counsels, which are seeking to keep more work in-house to deliver greater business value and insights internally, limit increases in billing rates and hours, and insist on increased transparency and efficiency from law firms. The demand for legal services has also experienced low growth in 2023, negatively affected by shrinking activity in transactional practices, including real estate and mergers and acquisitions practice areas. The emergence of generative AI as a tool in the legal space could also have significant impact on law firms, such as their headcount, service delivery, and pricing. While generative AI introduces productivity and efficiency improvement opportunities for law firms, it also adds uncertainties to how law firms and legal professionals need to evolve with technology in the future. These trends could impact the future ability to spend by a select set of our law firm customers on our products which in turn could adversely affect our revenues as well as our cash flows. |
· |
Accounting firms are also adapting their business models related to service offerings, technology and pricing to address their clients’ evolving needs, priorities and expectations. In particular, accounting firms continue to experience commoditization in audit and tax compliance in an increasingly complex regulatory environment and are looking to expand into more profitable advisory services and identify more areas to use automation. |
· |
Corporations continue to be under pressure to become more efficient and drive margins which may put pressure on their ability to spend on our products. Their behavior is also closely linked to economic cycles with spending pressures tied to periods of economic downturn. Their focus on cybersecurity is increasing, putting additional demands on our products and lengthening sales cycles. Corporations are also focusing on consolidating vendors which adds an additional dimension of competition. |
· |
Global Print (8% of our 2023 revenues) experienced a 5% revenue decline in 2023, as customers continued to migrate from traditional print formats to digital solutions. Declines in Global Print revenues can adversely affect our profitability as well as our cash flows. |
· |
Relative to our Reuters News business, the media sector continues to transform, with the traditional news agency market under pressure due to audiences’ shift to digital and streaming services. In the Professional sector, we expect a soft discretionary spend market to continue to impact digital advertising and sponsorships revenues. While demand in the financial professional segment is growing, Reuters News is limited in its ability to participate in a number of sectors due to its exclusive agreement with the Data & Analytics business of LSEG. |
· |
Many of our principal competitors are established companies and firms that have substantial financial resources, recognized brands, technological expertise and market experience and these competitors sometimes have more established positions in certain product segments and geographic regions than we do. Some larger companies that compete with us, such as enterprise resource planning (ERPs) companies, have large installed customer bases and may change or expand the focus of their business strategies to target our customers. |
· |
We increasingly compete with smaller and sometimes newer companies, some of which seek to differentiate themselves from the breadth of our offerings by being specialized, with a narrower focus than our company. As a result, they may be able to adopt new or emerging technologies, including AI and analytic capabilities, or address customer requirements at lower prices or more quickly than we can. New and emerging technologies can also have the impact of reducing potential barriers to entry, allowing start-up companies to enter the market at a quicker pace than they would have been able to in the past. |
· |
Public sources of free or relatively inexpensive information are available online and more of this information is expected to be available in the future. Some governmental and regulatory agencies have increased the amount of information they make publicly available at no cost. Several companies and organizations have made certain legal and tax information publicly available at no cost. “Open source” software that is available for free may also provide some functionality similar to that in some of our products. Public sources of free or relatively inexpensive information may reduce demand for our products and services if certain customers choose to use these public sources as a substitute for our products or services. |
· |
Some of our customers independently develop products and services that compete with ours, including through the formation of partnerships or consortia. If more of our customers become self-sufficient, demand for our products and services may be reduced. |
· |
We may also face increased competition from search providers that could pose a threat to some of our businesses by providing more in-depth offerings, adapting their products and services to meet the demands of their customers or combining with one of their traditional competitors to enhance their products and services. |
· |
Cyber-attacks on our networks, websites, hosting environments or infrastructure on which many of our service offerings operate using computer viruses or other malware, distributed denial of service attacks, ransomware, phishing, social engineering, or destructive attacks against information systems. The occurrence of these and other more sophisticated attack campaigns may increase with the growing number of workforces that remotely access our systems and as heightened geopolitical tensions contribute to elevated global exposures to cybersecurity risks; |
· |
The introduction or exploitation of vulnerabilities existing in our products or internally-built applications, including our generative AI products, some of which may be undetected and only discovered after an extended period of time and after installation or integration by our company or our customers; |
· |
The introduction or exploitation of vulnerabilities in purchased or licensed third-party software, adopted open source software, or in newly integrated technologies resulting from an acquisition or partnership, some of which may be undetected and only discovered after an extended period of time and after installation or integration by our company or our customers; |
· |
Actions taken by individuals or groups of hackers and sophisticated organizations, including nation-states, state-sponsored or aligned, or criminal organizations; |
· |
Attacks on, or vulnerabilities in, underlying networks and services that power the Internet and supporting power and water supply, most of which are not under our direct control or the control of our suppliers, partners or customers; |
· |
Human errors by employees, contractors or customers or intentional acts by employees, contractors or customers with access to our systems that compromise our security measures; and |
· |
Attacks against employee or contractor work from home or hybrid working environments (e.g., home networks, residential internet service providers) that allow an unauthorized party to gain or attempt to gain remote or physical access to the employee’s or contractor’s devices or information used to access corporate resources. |
· |
Difficulties in penetrating new markets due to established and entrenched competitors or unavailability of local companies for acquisition or joint venture partners or restrictions on foreign ownership; |
· |
Difficulties in developing products and services that are tailored to the needs of local customers; |
· |
Local lack of recognition of our brands or acceptance or knowledge of our products and services; |
· |
The impact of geopolitical tensions in local markets, including the impact of the Russian invasion of Ukraine and related government sanctions and the ongoing Israel-Hamas conflict, ongoing protectionism measures due to a decline in global alignment, aggressive monetary tightening, weaker global demand, rising interest rates, supply chain disruptions, labour shortages and other events; |
· |
Economic, political or social instability in local markets; |
· |
Exposure to possibly adverse governmental or regulatory actions in countries where we operate or conduct business; |
· |
Higher inflation rates and increased credit risk; |
· |
The impact of foreign currency fluctuations on prices charged to local customers, notably when there is strengthening of the U.S. dollar, and other controls, regulations and orders that might restrict our ability to repatriate cash or limit our ability to move or invest cash freely; |
· |
Difficulties hiring and retaining staff for foreign operations, differing employee/employer relationships, and other challenges caused by distance, language and cultural differences; |
· |
Reduced protection for intellectual property rights; |
· |
Changes in laws and policies affecting trade and investment in other jurisdictions; and |
· |
Managing compliance with local laws and regulations (notably related to data privacy, data use and data protection) and varying and sometimes conflicting laws and regulations across the countries in which we do business. |
· |
GDPR provides data protection requirements and related compliance obligations in the E.U. Serious breaches of the GDPR can result in administrative fines of up to 4% of annual worldwide revenues and fines up to 2% of annual worldwide revenues can be imposed for other types of violations. We are also subject to U.K. data protection law, which imposes obligations and penalties similar to GDPR. |
· |
Various U.S. state privacy laws reflect requirements for the handling of personal data and provide data privacy rights to their residents. Violations can result in civil penalties and in some instances, provide consumers with a private right of action for data breaches, which may increase data breach litigation. Other U.S. state and federal legislative and regulatory bodies have implemented or are considering similar legislation, which, if passed, could create more risks, compliance complexity and potential costs for us. |
· |
In the E.U., proposed legislation known as the Regulation on Privacy and Electronic Communications, or ePrivacy Regulation, would replace an E.U. regulation known as the ePrivacy Directive, which we are currently subject to. The ePrivacy Regulation is focused on privacy regarding electronic communications services and data processed by electronic communications services. |
The ePrivacy Regulation is still under development and in draft form and the timeline for adoption and effectiveness is unclear. The ePrivacy Regulation may require us to further modify some of our data practices and compliance could result in additional costs for our company. In addition, the EU Digital Services Act (DSA) and Digital Markets Act (DMA) adds further complexity and increased consumer protection and technology regulation. |
· |
Proposed and existing legislation in other countries and regions around the world related to privacy, data security, data protection and other related areas may also impact how we provide products and services and how we collect and use information. |
· |
Current or future laws, regulations and ethical considerations related to the use of AI technology and ML may impact our ability to provide insights from data and use certain data to develop our products. These factors may also impose burdensome and costly requirements on our ability to utilize data in innovative ways. |
· |
Impose limits on our collection, retention and use of certain kinds of information or data and our ability to communicate such information effectively to our customers; |
· |
Impose limits on our ability to develop and offer our products, services, and content in certain countries; |
· |
Frustrate or disrupt our ability to do business with certain customers and other third parties or collect or pay third parties, including without limitation as a result of newly issued sanctions and export/import restrictions; |
· |
Increase our cost of doing business or require us to change some of our existing business practices; and |
· |
Conflict or increase complexity on a global basis (such as the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and similar laws). |
Legal Professionals Serves law firms and governments with research and workflow products, focusing on intuitive legal research powered by emerging technologies, including generative AI, and integrated legal workflow solutions that combine content, tools and analytics. |
2023 Revenues | |||
Corporates Serves corporate customers from small businesses to multinational organizations, including the seven largest global accounting firms, with our full suite of content-driven technologies, including generative AI, providing integrated workflow solutions designed to help our customers digitally transform and achieve their business outcomes. | ||||
Tax & Accounting Professionals Serves tax, accounting and audit professionals in accounting firms (other than the seven largest, which are served by our Corporates segment) with research and workflow products, focusing on intuitive tax offerings and automating tax workflows. | ||||
Reuters News Supplies business, financial and global news to the world’s media organizations, professionals and news consumers through Reuters News Agency, Reuters.com, Reuters Events, Thomson Reuters products and to financial market professionals exclusively via LSEG products. |
||||
|
Global Print Provides legal and tax information primarily in print format to customers around the world. |
Attractive Industry · · |
Balanced and Diversified Leadership · · · |
Attractive Business Model · · long-term operating leverage· |
Strong Competitive Positioning · · · |
Disciplined Financial Policies · · · · |
* |
The news agreement with the Data & Analytics business of LSEG. |
Revenues by type Recurring revenues one-off arrangements. However, as we generally recognize recurring revenues ratably over the contract term, there is a lag in realizing the impact of current sales or cancellations in our reported revenues. As a result, our revenues are typically slower to decline when economic conditions worsen, but slower to return to growth when economic activity improves, compared to other businesses that are not subscription-based. Transactions revenues Global Print revenues | ||
Revenues by geography In 2023, we earned 74% of our revenues in the U.S. We also operate regional teams outside of the U.S., including in emerging markets, where we serve regional customers by either modifying existing products and services for their needs or developing specific products for the local market. Changes in foreign currency exchange rates relative to our business outside the U.S. may cause variation in our revenue performance from period to period. In 2023, however, changes in foreign exchange rates had no net impact on our revenue growth over the prior year. | ||
Expenses Most of our operating expenses are fixed. As a result, when our revenues increase, we become more profitable and our adjusted EBITDA margin increases. Likewise, when our revenues decline, we become less profitable and our adjusted EBITDA margin decreases. However, the full impact of incremental revenues is not always reflected in our profitability as we reinvest in our business. In 2023, staff costs, which are largely comprised of salaries, performance bonuses, commissions, benefits and share-based compensation, comprised 60% of our total expenses. Approximately 66% of our 2023 operating expenses were denominated in U.S. dollars with the balance denominated in currencies other than the U.S. dollar. In 2023, changes in foreign exchange rates decreased our expenses by 1% compared to the prior year. In 2022, we incurred $171 million of expenses associated with our Change Program to transition our company from a holding company to an operating company and from a content provider to a content-driven technology company. |
Total Thomson Reuters |
2023 Updated Outlook |
2023 Actual Performance (Before currency) (1) |
||||
Revenue growth |
3.0% - 3.5% |
3.0% |
||||
Organic revenue growth (2) |
5.5% - 6.0% |
5.9% |
||||
Adjusted EBITDA margin (2) |
Approximately 39% |
39.1% |
||||
Corporate costs |
$110 - $120 million |
$114 million |
||||
Free cash flow (2) |
Approximately $1.8 billion |
$1.9 billion |
||||
Accrued capital expenditures as a percentage of revenues (2) |
Approximately 8.0% |
7.8% |
||||
Depreciation and amortization of computer software |
$625 - $635 million |
$629 million |
||||
Depreciation and amortization of internally developed software |
$555 - $560 million |
$557 million |
||||
Amortization of acquired software (3) |
$70 - $75 million |
$72 million |
||||
Interest expense (4) |
$170 - $180 million |
$164 million |
||||
Effective tax rate on adjusted earnings (2)(5) |
Approximately 17% |
16.5% |
“Big 3” Segments (2) |
2023 Updated Outlook |
2023 Actual Performance (Before currency) (1) |
||||||
Revenue growth |
3.5% - 4.0% |
3.5% |
||||||
Organic revenue growth |
6.5% - 7.0% |
7.2% |
||||||
Adjusted EBITDA margin |
Approximately 44% |
43.6% |
· |
Casetext, Inc., a business that uses AI and ML to enable legal professionals to work more efficiently, |
· |
SurePrep LLC, a provider of tax automation software and services, |
· |
Imagen Ltd, a media asset management company now part of our Reuters News segment, and |
· |
ThoughtTrace, a business that uses AI and ML to read, organize and manage document workflows. |
Year ended December 31, |
||||||||||||||||
Change |
||||||||||||||||
(millions of U.S. dollars, except per share amounts and margins) |
2023 |
2022 |
Total |
Constant Currency |
||||||||||||
IFRS Financial Measures |
||||||||||||||||
Revenues |
6,794 |
6,627 |
3% |
|||||||||||||
Operating profit |
2,332 |
1,834 |
27% |
|||||||||||||
Diluted EPS |
$5.80 |
$2.75 |
111% |
|||||||||||||
Non-IFRS Financial Measures |
||||||||||||||||
Revenues |
6,794 |
6,627 |
3% |
3% |
||||||||||||
Organic revenue growth |
6% |
|||||||||||||||
Adjusted EBITDA |
2,678 |
2,329 |
15% |
14% |
||||||||||||
Adjusted EBITDA margin |
39.3% |
35.1% |
420bp |
380bp |
||||||||||||
Adjusted EBITDA less accrued capital expenditures |
2,146 |
1,784 |
20% |
|||||||||||||
Adjusted EBITDA less accrued capital expenditures margin |
31.5% |
26.9% |
460bp |
|||||||||||||
Adjusted EPS |
$3.51 |
$2.62 |
(1) |
34% |
32% |
|||||||||||
“Big 3” Segments |
||||||||||||||||
Revenues |
5,485 |
5,325 |
3% |
4% |
||||||||||||
Organic revenue growth |
7% |
|||||||||||||||
Adjusted EBITDA |
2,408 |
2,256 |
7% |
6% |
||||||||||||
Adjusted EBITDA margin |
43.8% |
42.4% |
140bp |
110bp |
Year ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
Total |
Constant Currency |
Organic |
|||||||||||||||
Recurring revenues |
5,458 |
5,324 | 3% | 3% | 6% | |||||||||||||||
Transactions revenues |
774 |
711 | 9% | 9% | 10% | |||||||||||||||
Global Print revenues |
562 |
592 | (5%) | (4%) | (3%) | |||||||||||||||
Revenues |
6,794 |
6,627 | 3% | 3% | 6% |
Year ended December 31, |
||||||||||||||||
Change |
||||||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
Total |
Constant Currency |
||||||||||||
Operating expenses |
4,134 |
4,280 |
(3%) |
(3%) |
||||||||||||
Remove fair value adjustments (1) |
(2) |
19 |
||||||||||||||
Operating expenses excluding fair value adjustments |
4,132 |
4,299 |
(4%) |
(3%) |
Year ended December 31, |
||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
Change |
|||||||||
Depreciation |
116 |
140 |
(17%) |
|||||||||
Amortization of computer software |
||||||||||||
Internally developed |
440 |
446 | (1%) | |||||||||
Acquisition related |
72 |
39 | 84% | |||||||||
Total amortization of computer software |
512 |
485 |
6% |
|||||||||
Amortization of other identifiable intangible assets |
97 |
99 |
(2%) |
· |
Depreciation decreased due to the completion of depreciation of assets acquired in previous years. |
· |
Total amortization of computer software increased due to acquisitions. |
· |
Amortization of other identifiable intangible assets decreased as the completion of amortization of assets acquired in previous years more than offset expenses associated with recent acquisitions. |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Other operating gains, net |
397 |
211 |
Year ended December 31, |
||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
Change |
|||||||||
Net interest expense |
152 |
196 |
(22%) |
Year ended December 31, | ||||||
(millions of U.S. dollars) |
2023 |
2022 | ||||
Other finance (costs) income |
(192) |
444 |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
YPL |
1,099 |
(416) | ||||||
Other equity method investments |
(24) |
(16) | ||||||
Share of post-tax earnings (losses) in equity method investments |
1,075 |
(432) |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Increase in LSEG share price |
785 |
207 | ||||||
Foreign exchange gains (losses) on LSEG shares |
251 |
(787) | ||||||
Dividend income |
58 |
87 | ||||||
(Loss) gain from forward contract |
(77) |
77 | ||||||
Loss from call options |
(15) |
- | ||||||
Historical excluded equity adjustment (1) |
97 |
- | ||||||
YPL - Share of post-tax earnings (losses) in equity method investments |
1,099 |
(416) |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Tax expense |
417 |
259 |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 (1) |
||||||
Tax expense (benefit) |
||||||||
Tax items impacting comparability: |
||||||||
Discrete changes to uncertain tax positions (2) |
(61) |
- |
||||||
Corporate tax laws and rates (3) |
(100) |
(13) |
||||||
Deferred tax adjustments (4) |
(11) |
28 |
||||||
Subtotal |
(172) |
15 | ||||||
Tax related to: |
||||||||
Amortization of acquired computer software (1) |
(17) |
(8) |
||||||
Amortization of other identifiable intangible assets |
(22) |
(22) |
||||||
Other operating gains, net |
81 |
42 |
||||||
Other finance income |
(31) |
80 |
||||||
Share of post-tax earnings (losses) in equity method investments |
253 |
(124) |
||||||
Other items |
1 |
2 |
||||||
Subtotal |
265 |
(30) | ||||||
Total |
93 |
(15) |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Tax expense |
417 |
259 |
||||||
Remove: Items from above impacting comparability |
(93) |
15 |
||||||
Total tax expense on adjusted earnings |
324 |
274 |
Year ended December 31, |
||||||||
Income taxes paid (millions of U.S. dollars) |
2023 |
2022 |
||||||
Operating activities – continuing operations |
163 |
193 |
||||||
Investing activities – continuing operations |
705 |
7 |
||||||
Investing activities – discontinued operations |
1 |
16 |
||||||
Total income taxes paid |
869 |
216 |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Earnings (loss) from discontinued operations, net of tax |
49 |
(53) |
Year ended December 31, |
||||||||||||||||
Change |
||||||||||||||||
(millions of U.S. dollars, except per share amounts) |
2023 |
2022 |
Total |
Constant Currency |
||||||||||||
IFRS Financial Measures |
||||||||||||||||
Net earnings |
2,695 |
1,338 |
101% |
|||||||||||||
Diluted EPS |
$5.80 |
$2.75 | 111% | |||||||||||||
Non- IFRS Financial Measures(1) |
||||||||||||||||
Adjusted earnings |
1,629 |
1,270 |
28% |
|||||||||||||
Adjusted EPS |
$3.51 |
$2.62 |
34% |
32% |
Year ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
2023 |
2022 |
Total |
Constant Currency |
Organic |
|||||||||||||||
Recurring revenues |
2,674 |
2,631 | 2% | 2% | 6% | |||||||||||||||
Transactions revenues |
133 |
172 | (23%) | (23%) | 7% | |||||||||||||||
Revenues |
2,807 |
2,803 | - | - | 6% | |||||||||||||||
Segment adjusted EBITDA |
1,299 |
1,227 | 6% | 5% | ||||||||||||||||
Segment adjusted EBITDA margin |
46.2% |
43.8% | 240bp | 190bp |
Year ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
2023 |
2022 |
Total |
Constant Currency |
Organic |
|||||||||||||||
Recurring revenues |
1,373 |
1,305 | 5% | 5% | 8% | |||||||||||||||
Transactions revenues |
247 |
231 | 7% | 7% | 5% | |||||||||||||||
Revenues |
1,620 |
1,536 | 5% | 5% | 7% | |||||||||||||||
Segment adjusted EBITDA |
619 |
578 | 7% | 7% | ||||||||||||||||
Segment adjusted EBITDA margin |
38.1% |
37.6% | 50bp | 50bp |
Year ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
2023 |
2022 |
Total |
Constant Currency |
Organic |
|||||||||||||||
Recurring revenues |
808 |
799 | 1% | 3% | 9% | |||||||||||||||
Transactions revenues |
250 |
187 | 34% | 37% | 17% | |||||||||||||||
Revenues |
1,058 |
986 | 7% | 9% | 10% | |||||||||||||||
Segment adjusted EBITDA |
490 |
451 | 8% | 10% | ||||||||||||||||
Segment adjusted EBITDA margin |
45.8% |
45.8% | - | (30)bp |
Year ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
2023 |
2022 |
Total |
Constant Currency |
Organic |
|||||||||||||||
Recurring revenues |
625 |
612 | 2% | 3% | 2% | |||||||||||||||
Transactions revenues |
144 |
121 | 19% | 14% | 13% | |||||||||||||||
Revenues |
769 |
733 | 5% | 5% | 4% | |||||||||||||||
Segment adjusted EBITDA |
172 |
154 | 12% | 5% | ||||||||||||||||
Segment adjusted EBITDA margin |
22.4% |
21.0% | 140bp | - |
Year ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
2023 |
2022 |
Total |
Constant Currency |
Organic |
|||||||||||||||
Revenues |
562 |
592 | (5%) | (4%) | (3%) | |||||||||||||||
Segment adjusted EBITDA |
213 |
212 | 1% | - | ||||||||||||||||
Segment adjusted EBITDA margin |
38.0% |
35.7% | 230bp | 170bp |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Corporate costs |
115 |
293 |
Three months ended December 31, |
||||||||||||||||
Change |
||||||||||||||||
(millions of U.S. dollars, except per share amounts and margins) |
2023 |
2022 |
Total |
Constant Currency |
||||||||||||
IFRS Financial Measures |
||||||||||||||||
Revenues |
1,815 |
1,765 | 3% | |||||||||||||
Operating profit |
558 |
631 | (11%) | |||||||||||||
Net earnings |
678 |
218 | 211% | |||||||||||||
Diluted EPS |
$1.49 |
$0.45 | 231% | |||||||||||||
Net cash provided by operating activities |
705 |
676 | 4% | |||||||||||||
Net cash (used in) provided by investing activities |
(223) |
64 | n/m | |||||||||||||
Net cash used in financing activities |
(1,702) |
(132) | n/m | |||||||||||||
Non-IFRS Financial Measures(1) |
||||||||||||||||
Revenues |
1,815 |
1,765 | 3% | 3% | ||||||||||||
Organic revenue growth |
7% |
|||||||||||||||
Adjusted EBITDA |
707 |
633 | 12% | 9% | ||||||||||||
Adjusted EBITDA margin |
38.9% |
35.9% | 300bp | 210bp | ||||||||||||
Adjusted EBITDA less accrued capital expenditures |
554 |
495 | 12% | |||||||||||||
Adjusted EBITDA less accrued capital expenditures margin |
30.5% |
28.1% | 240bp | |||||||||||||
Adjusted earnings |
446 |
362 (2) |
23% | |||||||||||||
Adjusted EPS |
$0.98 |
$0.75 (2) |
31% | 28% | ||||||||||||
Free cash flow |
613 |
526 | 16% | |||||||||||||
“Big 3” Segments |
||||||||||||||||
Revenues |
1,446 |
1,409 | 3% | 3% | ||||||||||||
Organic revenue growth |
8% |
|||||||||||||||
Adjusted EBITDA |
624 |
618 | 1% | - | ||||||||||||
Adjusted EBITDA margin |
43.1% |
43.9% | (80)bp | (150)bp |
Three months ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
2023 |
2022 |
Total |
Constant Currency (1) |
Organic (1) |
|||||||||||||||
Revenues |
||||||||||||||||||||
Legal Professionals |
700 |
704 | (1%) | (1%) | 7% | |||||||||||||||
Corporates |
402 |
379 | 6% | 5% | 7% | |||||||||||||||
Tax & Accounting Professionals |
344 |
326 | 6% | 9% | 10% | |||||||||||||||
“Big 3” Segments Combined (1) |
1,446 |
1,409 | 3% | 3% | 8% | |||||||||||||||
Reuters News |
220 |
198 | 11% | 10% | 9% | |||||||||||||||
Global Print |
154 |
162 | (6%) | (5%) | (4%) | |||||||||||||||
Eliminations/ Rounding |
(5) |
(4) | ||||||||||||||||||
Revenues |
1,815 |
1,765 | 3% | 3% | 7% | |||||||||||||||
Adjusted EBITDA (1) |
||||||||||||||||||||
Legal Professionals |
298 |
294 | 1% | (2%) | ||||||||||||||||
Corporates |
138 |
135 | 3% | 1% | ||||||||||||||||
Tax & Accounting Professionals |
188 |
189 | (1%) | 1% | ||||||||||||||||
“Big 3” Segments Combined |
624 |
618 | 1% | - | ||||||||||||||||
Reuters News |
61 |
40 | 56% | 52% | ||||||||||||||||
Global Print |
55 |
59 | (5%) | (8%) | ||||||||||||||||
Corporate costs |
(33) |
(84) | ||||||||||||||||||
Adjusted EBITDA |
707 |
633 | 12% | 9% | ||||||||||||||||
Adjusted EBITDA margin (1) |
||||||||||||||||||||
Legal Professionals |
42.5% |
41.7% | 80bp | (50)bp | ||||||||||||||||
Corporates |
34.5% |
35.7% | (120)bp | (140)bp | ||||||||||||||||
Tax & Accounting Professionals |
54.6% |
58.1% | (350)bp | (430)bp | ||||||||||||||||
“Big 3” Segments Combined |
43.1% |
43.9% | (80)bp | (150)bp | ||||||||||||||||
Reuters News |
27.9% |
19.8% | 810bp | 720bp | ||||||||||||||||
Global Print |
36.4% |
36.1% | 30bp | (100)bp | ||||||||||||||||
Adjusted EBITDA margin |
38.9% |
35.9% | 300bp | 210bp |
· |
We received $5.3 billion of gross proceeds from the sale of the 54.3 million shares our company indirectly owned, which included $151 million from the settlement of foreign exchange contracts. |
· |
We received $8 million in dividends from YPL related to the sale of call options that YPL entered into in September of 2023, to sell approximately 8.2 million LSEG shares with maturity dates in 2023 and 2024 in the event the LSEG share price exceeds specified levels. Our share of these call options covers approximately 3.5 million shares. |
· |
We sold approximately 0.9 million shares under the call options described above and received proceeds of $31 million in 2023 ($58 million of the proceeds settled in 2024). |
· |
LSEG repurchased 1.7 million of ordinary shares from YPL under an open market buyback program announced by LSEG in August 2022. We received proceeds of approximately $70 million related to the approximately 0.8 million shares our company indirectly owned and sold as part of this buyback. |
Year ended December 31, | ||||||||
(millions of U.S. dollars) |
2023 |
2022 |
$ Change | |||||
Net cash provided by operating activities |
2,341 |
1,915 | 426 | |||||
Net cash provided by (used in) investing activities |
3,513 |
(462) | 3,975 | |||||
Net cash used in financing activities |
(5,626) |
(1,156) | (4,470) | |||||
Translation adjustments |
1 |
(6) | 7 | |||||
Increase in cash and cash equivalents |
229 |
291 | (62) | |||||
Cash and cash equivalents at beginning of period |
1,069 |
778 | 291 | |||||
Cash and cash equivalents at end of period |
1,298 |
1,069 |
229 | |||||
Non-IFRS Financial Measure(1): |
||||||||
Free cash flow |
1,871 |
1,340 | 531 |
· |
Commercial paper program. |
· |
Credit facility. |
· |
Long-term debt. |
· |
Credit ratings. |
Moody’s |
S&P Global Ratings |
DBRS Limited |
Fitch | |||||
Long-term debt |
Baa1 |
BBB |
BBB (high) |
BBB+ | ||||
Commercial paper |
P-2 |
A-2 |
R-2 (high) |
F1 | ||||
Trend/Outlook |
Stable |
Stable |
Stable |
Stable |
· |
Dividends. |
Year ended December 31, |
||||||||
(millions of U.S. dollars, except per share amounts) |
2023 |
2022 |
||||||
Dividends declared per common share |
$1.96 |
$1.78 |
||||||
Dividends declared |
908 |
861 |
||||||
Dividends reinvested |
(21) |
(27) |
||||||
Dividends paid |
887 |
834 |
· |
Share repurchases – Normal Course Issuer Bid (NCIB). |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Share repurchases (millions of U.S. dollars) |
1,079 |
1,282 | ||||||
Shares repurchased (number in millions) |
8.6 |
11.9 | ||||||
Share repurchases – average price per share in U.S. dollars |
$125.07 |
$107.99 |
· |
Return of capital and share consolidation. pre-consolidated share for 0.963957 post-consolidated shares. Shareholders who were subject to income tax in a jurisdiction other than Canada were given the opportunity to opt-out of the transaction. The share consolidation was proportional to the cash distribution and the share consolidation ratio was based on the volume weighted-average trading price of the shares on the NYSE for the five-trading day period immediately preceding June 23, 2023, the effective date for the return of capital transaction. Woodbridge, our principal shareholder, participated in this transaction. As a result of the share consolidation, our company’s outstanding common shares were reduced by 15.8 million common shares. |
December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Net debt (1) |
2,207 |
3,925 |
||||||
Leverage ratio of net debt to adjusted EBITDA: |
||||||||
Adjusted EBITDA (1) |
2,678 |
2,329 |
||||||
Net debt/adjusted EBITDA (1) |
0.8:1 |
1.7:1 |
(millions of U.S. dollars) |
2024 |
2025 |
2026 |
2027 |
2028 |
Thereafter |
Total |
|||||||||||||||||||||
Commercial paper |
130 | - | - | - | - | - | 130 | |||||||||||||||||||||
Notes/debentures (1) |
242 | 1,062 | 500 | - | - | 1,369 | 3,173 | |||||||||||||||||||||
Interest payable (1) |
126 | 105 | 84 | 76 | 76 | 867 | 1,334 | |||||||||||||||||||||
Debt-related hedges outflows (2) |
22 | 1,011 | - | - | - | - | 1,033 | |||||||||||||||||||||
Debt-related hedges inflows (1) |
(24) | (1,074) | - | - | - | - | (1,098) | |||||||||||||||||||||
Lease obligations (3) |
70 | 60 | 49 | 39 | 33 | 158 | 409 | |||||||||||||||||||||
Foreign exchange contracts outflows (4) |
1,575 | - | - | - | - | - | 1,575 | |||||||||||||||||||||
Foreign exchange contracts inflows (5) |
(1,601) | - | - | - | - | - | (1,601) | |||||||||||||||||||||
Unconditional purchase obligations |
374 | 258 | 123 | 42 | 11 | - | 808 | |||||||||||||||||||||
Defined benefit obligations |
33 | - | - | - | - | - | 33 | |||||||||||||||||||||
Total |
947 | 1,422 | 756 | 157 | 120 | 2,394 | 5,796 |
· |
Subsidiary guarantees |
· |
Guarantees |
· |
Unconditional purchase obligations |
· |
Defined benefit obligations |
· |
Disposition contingencies |
· |
Legal Professionals: |
· |
Corporates: |
· |
Tax & Accounting Professionals: on-premises systems are gradually being replaced by cloud-based, Software-as-a-Service |
· |
Assumes constant currency rates relative to 2023; and |
· |
Does not factor in the impact of any other acquisitions or divestitures that may occur in future periods. |
Total Thomson Reuters |
2023 Actual |
2024 Outlook | ||||
Revenue growth Organic revenue growth (1) |
3% 6% |
Approximately 6.5% Approximately 6% | ||||
Adjusted EBITDA margin (1) |
39.3% | Approximately 38% | ||||
Corporate costs |
$115 million | $120 – $130 million | ||||
Free cash flow (1) |
$1.9 billion | Approximately $1.8 billion | ||||
Accrued capital expenditures as a percentage of revenues (1) |
7.8% | Approximately 8.5% | ||||
Depreciation and amortization of computer software Depreciation and amortization of internally developed software Amortization of acquired software |
$628 million $556 million $72 million |
$730 – $750 million $595 – $615 million Approximately $135 million | ||||
Interest expense (2) |
$164 million | $150 – $170 million | ||||
Effective tax rate on adjusted earnings (1) |
16.5% | Approximately 18% | ||||
“Big 3” Segments (1) |
2023 Actual |
2024 Outlook | ||||
Revenue growth Organic revenue growth |
3% 7% |
Approximately 8% Approximately 7.5% | ||||
Adjusted EBITDA margin |
43.8% | Approximately 43% |
· |
Organic revenue growth to be approximately 8%, boosted by the expectation for additional AI licensing revenues from Reuters News; and |
· |
Adjusted EBITDA margin to be approximately 40%, benefiting from normal seasonal strength and the Reuters News licensing revenues, partially offset by acquisition dilution and select growth investments. |
Revenues | ||
Material assumptions |
Material risks | |
· · · · · |
· · · · · |
Adjusted EBITDA margin | ||
Material assumptions |
Material risks | |
· · · |
· · · |
Free Cash Flow | ||
Material assumptions |
Material risks | |
· · |
· · · · |
Effective tax rate on adjusted earnings | ||
Material assumptions |
Material risks | |
· · pre-tax profit or losses in 2023 does not significantly change in 2024· · · · · |
· · pre-tax profits and losses· · |
Year ended December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Salaries and other benefits |
23 |
24 | ||||||
Share-based payments |
17 |
17 |
||||||
Total compensation |
40 |
41 |
How We Define It |
Why We Use It and Why It Is Useful to Investors |
Most Directly Comparable IFRS Measure | ||
Adjusted EBITDA and the related margin | ||||
Represents earnings or losses from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of software and other identifiable intangible assets, our share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges and fair value adjustments, including those related to acquired deferred revenue.The related margin is adjusted EBITDA expressed as a percentage of revenues. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. |
Provides a consistent basis to evaluate operating profitability and performance trends by excluding items that we do not consider to be controllable activities for this purpose. Also represents a measure commonly reported and widely used by investors as a valuation metric, as well as to assess our ability to incur and service debt. |
Earnings from continuing operations | ||
Adjusted EBITDA less accrued capital expenditures and the related margin | ||||
Represents adjusted EBITDA less accrued capital expenditures, where accrued capital expenditures include amounts that remain unpaid at the reporting date. The related margin is adjusted EBITDA less accrued capital expenditures expressed as a percentage of revenues. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. |
Provides a basis for evaluating the operating profitability and capital intensity of a business in a single measure. This measure captures investments regardless of whether they are expensed or capitalized, and reflects the basis on which management measures capital spending. |
Earnings from continuing operations | ||
Accrued capital expenditures as a percentage of revenues | ||||
Accrued capital expenditures expressed as a percentage of revenues. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. |
Reflects the basis on how we manage capital expenditures for internal budgeting purposes. |
Capital expenditures |
How We Define It |
Why We Use It and Why It Is Useful to Investors |
Most Directly Comparable IFRS Measure | ||
Adjusted earnings and adjusted EPS | ||||
Net earnings or loss including dividends declared on preference shares but excluding the post-tax impacts of fair value adjustments, including those related to acquired deferred revenue, amortization of acquired intangible assets (attributable to other identifiable intangible assets and acquired computer software), other operating gains and losses, certain asset impairment charges, other finance costs or income, our share of post-tax earnings or losses in equity method investments, discontinued operations and other items affecting comparability. Acquired intangible assets contribute to the generation of revenues from acquired companies, which are included in our computation of adjusted earnings.The post-tax amount of each item is excluded from adjusted earnings based on the specific tax rules and tax rates associated with the nature and jurisdiction of each item.Adjusted EPS is calculated from adjusted earnings using diluted weighted-average shares and does not represent actual earnings or loss per share attributable to shareholders. |
Provides a more comparable basis to analyze earnings. These measures are commonly used by shareholders to measure performance. |
Net earnings and diluted earnings per share | ||
Effective tax rate on adjusted earnings | ||||
Adjusted tax expense divided by pre-tax adjusted earnings. Adjusted tax expense is computed as income tax (benefit) expense plus or minus the income tax impacts of all items impacting adjusted earnings (as described above), and other tax items impacting comparability. |
Provides a basis to analyze the effective tax rate associated with adjusted earnings. |
Tax expense | ||
In interim periods, we also make an adjustment to reflect income taxes based on the estimated full-year effective tax rate. Earnings or losses for interim periods under IFRS reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which we operate. The non-IFRS adjustment reallocates estimated full-year income taxes between interim periods but has no effect on full-year income taxes. |
Because the geographical mix of pre-tax profits and losses in interim periods may be different from that for the full year, our effective tax rate computed in accordance with IFRS may be more volatile by quarter. Therefore, we believe that using the expected full-year effective tax rate provides more comparability among interim periods. |
How We Define It |
Why We Use It and Why It Is Useful to Investors |
Most Directly Comparable IFRS Measure | ||
Net debt and leverage ratio of net debt to adjusted EBITDA | ||||
Net debt: Total indebtedness (excluding the associated unamortized transaction costs and premiums or discount) plus the currency related fair value of associated hedging instruments, and lease liabilities less cash and cash equivalents. |
Provides a commonly used measure of a company’s leverage. Given that we hedge some of our debt to reduce risk, we include hedging instruments as we believe it provides a better measure of the total obligation associated with our outstanding debt. However, because we intend to hold our debt and related hedges to maturity, we do not consider the interest components of the associated fair value of hedges in our measurements. We reduce gross indebtedness by cash and cash equivalents. |
Total debt (current indebtedness plus long-term indebtedness) | ||
Net debt to adjusted EBITDA: Net debt is divided by adjusted EBITDA for the previous twelve-month period ending with the current fiscal quarter. |
Provides a commonly used measure of a company’s ability to pay its debt. Our non-IFRS measure is aligned with the calculation of our internal target and is more conservative than the maximum ratio allowed under the contractual covenants in our credit facility. |
For adjusted EBITDA, refer to the definition above for the most directly comparable IFRS measure | ||
Free cash flow | ||||
Net cash provided by operating activities and other investing activities, less capital expenditures, payments of lease principal and dividends paid on our preference shares. |
Helps assess our ability, over the long term, to create value for our shareholders as it represents cash available to repay debt, pay common dividends and fund share repurchases and acquisitions. |
Net cash provided by operating activities | ||
Return on invested capital (ROIC) | ||||
Adjusted operating profit (operating profit excluding amortization of other identifiable intangible assets, other operating gains and losses, and fair value adjustments) less net taxes paid expressed as a percentage of the average adjusted invested capital during the period. |
Provides a measure of how efficiently we allocate resources to profitable activities and is indicative of our ability to create value for our shareholders. | IFRS does not require a measure comparable to ROIC. Refer to our calculation of ROIC in Appendix C for a reconciliation of the components in the calculation to the most directly comparable IFRS measure. |
How We Define It |
Why We Use It and Why It Is Useful to Investors |
Most Directly Comparable IFRS Measure | ||
Changes before the impact of foreign currency or at “constant currency” | ||||
Applicable measures where changes are reported before the impact of foreign currency or at “constant currency” IFRS Measures: · · Non-IFRS Measures and ratios:· · Our reporting currency is the U.S. dollar. However, we conduct activities in currencies other than the U.S. dollar. We measure our performance before the impact of foreign currency (or at “constant currency” or excluding the effects of currency), which is determined by converting the current and equivalent prior period’s local currency results using the same foreign currency exchange rate. |
Provides better comparability of business trends from period to period. | For each non-IFRS measure and ratio, refer to the definitions above for the most directly comparable IFRS measure. | ||
Changes in revenues computed on an “organic” basis | ||||
Represent changes in revenues of our existing businesses at constant currency. The metric excludes the distortive impacts of acquisitions and dispositions from not owning the business in both comparable periods. · · |
Provides further insight into the performance of our existing businesses by excluding distortive impacts and serves as a better measure of our ability to grow our business over the long term. | Revenues | ||
“Big 3” segments | ||||
Our combined Legal Professionals, Corporates and Tax & Accounting Professionals segments. All measures reported for the “Big 3” segments are non-IFRS financial measures. |
The “Big 3” segments comprise approximately 80% of revenues and represent the core of our business information service product offerings. | Revenues Earnings from continuing operations |
Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
(millions of U.S. dollars, except margins) |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Earnings from continuing operations |
650 |
179 |
2,646 |
1,391 |
||||||||||||
Adjustments to remove: |
||||||||||||||||
Tax expense |
20 |
103 |
417 |
259 |
||||||||||||
Other finance costs (income) |
117 |
418 |
192 |
(444) |
||||||||||||
Net interest expense |
31 |
51 |
152 |
196 |
||||||||||||
Amortization of other identifiable intangible assets |
25 |
23 |
97 |
99 |
||||||||||||
Amortization of computer software |
135 |
131 |
512 |
485 |
||||||||||||
Depreciation |
29 |
30 |
116 |
140 |
||||||||||||
EBITDA |
1,007 |
935 |
4,132 |
2,126 |
||||||||||||
Adjustments to remove: |
||||||||||||||||
Share of post-tax (earnings) losses in equity method investments |
(260) |
(120) |
(1,075) |
432 |
||||||||||||
Other operating gains, net |
(44) |
(185) |
(397) |
(211) |
||||||||||||
Fair value adjustments (1) |
4 |
3 |
18 |
(18) |
||||||||||||
Adjusted EBITDA |
707 |
633 |
2,678 |
2,329 |
||||||||||||
Deduct: Accrued capital expenditures |
(153) |
(138) |
(532) |
(545) |
||||||||||||
Adjusted EBITDA less accrued capital expenditures |
554 |
495 |
2,146 |
1,784 |
||||||||||||
Adjusted EBITDA margin |
38.9% |
35.9% |
39.3% |
35.1% |
||||||||||||
Adjusted EBITDA less accrued capital expenditures margin |
30.5% |
28.1% |
31.5% |
26.9% |
Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Capital expenditures |
132 |
135 |
544 |
595 |
||||||||||||
Remove: IFRS adjustment to cash basis |
21 |
3 |
(12) |
(50) |
||||||||||||
Accrued capital expenditures |
153 |
138 |
532 |
545 |
||||||||||||
Accrued capital expenditures as a percentage of revenues |
n/a |
n/a |
7.8% |
8.2% |
Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
(millions of U.S. dollars, except per share amounts and share data) |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Net earnings |
678 |
218 |
2,695 |
1,338 |
||||||||||||
Adjustments to remove: |
||||||||||||||||
Fair value adjustments (1) |
4 |
3 |
18 |
(18) |
||||||||||||
Amortization of acquired computer software |
24 |
12 |
72 |
39 |
||||||||||||
Amortization of other identifiable intangible assets |
25 |
23 |
97 |
99 |
||||||||||||
Other operating gains, net |
(44) |
(185) |
(397) |
(211) |
||||||||||||
Interest benefit impacting comparability (2)(3) |
- |
- |
(12) |
- |
||||||||||||
Other finance costs (income) |
117 |
418 |
192 |
(444) |
||||||||||||
Share of post-tax (earnings) losses in equity method investments |
(260) |
(120) |
(1,075) |
432 |
||||||||||||
Tax on above items (3) |
38 |
(24) |
265 |
(30) |
||||||||||||
Tax items impacting comparability (2)(3) |
(108) |
60 |
(172) |
15 |
||||||||||||
(Earnings) loss from discontinued operations, net of tax |
(28) |
(39) |
(49) |
53 |
||||||||||||
Interim period effective tax rate normalization (3) |
1 |
(3) |
- |
- |
||||||||||||
Dividends declare on preference shares |
(1) |
(1) |
(5) |
(3) |
||||||||||||
Adjusted earnings |
446 |
362 |
1,629 |
1,270 |
||||||||||||
Adjusted EPS |
$0.98 |
$0.75 |
$3.51 |
$2.62 |
||||||||||||
Diluted weighted-average common shares (millions) |
455.2 |
479.5 |
464.0 |
484.9 |
Year ended December 31, |
||||||||
(millions of U.S. dollars, except percentages) |
2023 |
2022 |
||||||
Adjusted earnings |
1,629 |
1,270 |
||||||
Plus: Dividends declared on preference shares |
5 |
3 |
||||||
Plus: Tax expense on adjusted earnings |
324 |
274 |
||||||
Pre-tax adjusted earnings |
1,958 |
1,547 |
||||||
IFRS tax expense |
417 |
259 |
||||||
Remove tax related to: |
||||||||
Amortization of acquired computer software |
17 |
8 |
||||||
Amortization of other identifiable intangible assets |
22 |
22 |
||||||
Share of post-tax (earnings) losses in equity method investments |
(253) |
124 |
||||||
Other finance costs (income) |
31 |
(80) |
||||||
Other operating gains, net |
(81) |
(42) |
||||||
Other items |
(1) |
(2) |
||||||
Subtotal - Remove tax (expense) benefit on pre-tax items removed from adjusted earnings |
(265) |
30 |
||||||
Remove: Tax items impacting comparability |
172 |
(15) |
||||||
Total - Remove all items impacting comparability |
(93) |
15 |
||||||
Tax expense on adjusted earnings |
324 |
274 |
||||||
Effective tax rate on adjusted earnings |
16.5% |
17.7% |
Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Net cash provided by operating activities |
705 |
676 |
2,341 |
1,915 |
||||||||||||
Capital expenditures |
(132) |
(135) |
(544) |
(595) |
||||||||||||
Other investing activities |
55 |
1 |
137 |
88 |
||||||||||||
Payments of lease principal |
(14) |
(15) |
(58) |
(65) |
||||||||||||
Dividends paid on preference shares |
(1) |
(1) |
(5) |
(3) |
||||||||||||
Free cash flow |
613 |
526 |
1,871 |
1,340 |
December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Current indebtedness |
372 |
1,647 |
||||||
Long-term indebtedness |
2,905 |
3,114 | ||||||
Total debt |
3,277 |
4,761 |
||||||
Swaps |
(65) |
(42) | ||||||
Total debt after swaps |
3,212 |
4,719 |
||||||
Remove fair value adjustments for hedges (1) |
2 |
7 | ||||||
Total debt after currency hedging arrangements |
3,214 |
4,726 |
||||||
Remove transaction costs, premiums or discounts included in the carrying value of debt |
26 |
33 |
||||||
Add: Lease liabilities (current and non-current) |
265 |
235 |
||||||
Less: Cash and cash equivalents (2) |
(1,298) |
(1,069) | ||||||
Net debt |
2,207 |
3,925 | ||||||
Leverage ratio of net debt to adjusted EBITDA |
||||||||
Adjusted EBITDA |
2,678 |
2,329 |
||||||
Net debt/adjusted EBITDA |
0.8:1 |
1.7:1 |
Three months ended December 31, |
||||||||||||||||||||||||||||
Change |
||||||||||||||||||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
Total |
Foreign Currency |
Subtotal Constant Currency |
Acquisitions/ Divestitures |
Organic |
|||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||
Legal Professionals |
700 |
704 | (1%) | - | (1%) | (7%) | 7% | |||||||||||||||||||||
Corporates |
402 |
379 | 6% | 1% | 5% | (1%) | 7% | |||||||||||||||||||||
Tax & Accounting Professionals |
344 |
326 | 6% | (3%) | 9% | (1%) | 10% | |||||||||||||||||||||
“Big 3” Segments Combined |
1,446 |
1,409 | 3% | (1%) | 3% | (4%) | 8% | |||||||||||||||||||||
Reuters News |
220 |
198 | 11% | 1% | 10% | 2% | 9% | |||||||||||||||||||||
Global Print |
154 |
162 | (6%) | (1%) | (5%) | (1%) | (4%) | |||||||||||||||||||||
Eliminations/Rounding |
(5) |
(4) | ||||||||||||||||||||||||||
Total revenues |
1,815 |
1,765 | 3% | - | 3% | (3%) | 7% | |||||||||||||||||||||
Recurring Revenues |
||||||||||||||||||||||||||||
Legal Professionals |
674 |
664 | 2% | - | 2% | (5%) | 7% | |||||||||||||||||||||
Corporates |
358 |
337 | 6% | 1% | 6% | (1%) | 7% | |||||||||||||||||||||
Tax & Accounting Professionals |
305 |
292 | 5% | (3%) | 8% | (2%) | 10% | |||||||||||||||||||||
“Big 3” Segments Combined |
1,337 |
1,293 | 3% | (1%) | 4% | (3%) | 8% | |||||||||||||||||||||
Reuters News |
157 |
153 | 3% | (1%) | 3% | 1% | 2% | |||||||||||||||||||||
Eliminations/Rounding |
(5) |
(4) | ||||||||||||||||||||||||||
Total recurring revenues |
1,489 |
1,442 | 3% | (1%) | 4% | (3%) | 7% | |||||||||||||||||||||
Transactions Revenues |
||||||||||||||||||||||||||||
Legal Professionals |
26 |
40 | (36%) | 3% | (39%) | (41%) | 2% | |||||||||||||||||||||
Corporates |
44 |
42 | 6% | 2% | 4% | (3%) | 7% | |||||||||||||||||||||
Tax & Accounting Professionals |
39 |
34 | 15% | (7%) | 22% | 8% | 14% | |||||||||||||||||||||
“Big 3” Segments Combined |
109 |
116 | (6%) | - | (6%) | (14%) | 8% | |||||||||||||||||||||
Reuters News |
63 |
45 | 39% | 5% | 34% | 3% | 31% | |||||||||||||||||||||
Total transactions revenues |
172 |
161 | 7% | 1% | 6% | (10%) | 16% |
Year ended December 31, |
||||||||||||||||||||||||||||
Change |
||||||||||||||||||||||||||||
(millions of U.S. dollars) |
2023 |
2022 |
Total |
Foreign Currency |
Subtotal Constant Currency |
Acquisitions/ Divestitures |
Organic |
|||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||
Legal Professionals |
2,807 |
2,803 | - | - | - | (6%) | 6% | |||||||||||||||||||||
Corporates |
1,620 |
1,536 | 5% | - | 5% | (2%) | 7% | |||||||||||||||||||||
Tax & Accounting Professionals |
1,058 |
986 | 7% | (2%) | 9% | (1%) | 10% | |||||||||||||||||||||
“Big 3” Segments Combined |
5,485 |
5,325 | 3% | - | 4% | (4%) | 7% | |||||||||||||||||||||
Reuters News |
769 |
733 | 5% | - | 5% | 1% | 4% | |||||||||||||||||||||
Global Print |
562 |
592 | (5%) | (1%) | (4%) | (1%) | (3%) | |||||||||||||||||||||
Eliminations/Rounding |
(22) |
(23) | ||||||||||||||||||||||||||
Total revenues |
6,794 |
6,627 | 3% | - | 3% | (3%) | 6% | |||||||||||||||||||||
Recurring Revenues |
||||||||||||||||||||||||||||
Legal Professionals |
2,674 |
2,631 | 2% | - | 2% | (4%) | 6% | |||||||||||||||||||||
Corporates |
1,373 |
1,305 | 5% | - | 5% | (2%) | 8% | |||||||||||||||||||||
Tax & Accounting Professionals |
808 |
799 | 1% | (2%) | 3% | (6%) | 9% | |||||||||||||||||||||
“Big 3” Segments Combined |
4,855 |
4,735 | 3% | - | 3% | (4%) | 7% | |||||||||||||||||||||
Reuters News |
625 |
612 | 2% | - | 3% | 1% | 2% | |||||||||||||||||||||
Eliminations/Rounding |
(22) |
(23) | ||||||||||||||||||||||||||
Total recurring revenues |
5,458 |
5,324 | 3% | - | 3% | (3%) | 6% | |||||||||||||||||||||
Transactions Revenues |
||||||||||||||||||||||||||||
Legal Professionals |
133 |
172 | (23%) | - | (23%) | (30%) | 7% | |||||||||||||||||||||
Corporates |
247 |
231 | 7% | - | 7% | 1% | 5% | |||||||||||||||||||||
Tax & Accounting Professionals |
250 |
187 | 34% | (3%) | 37% | 20% | 17% | |||||||||||||||||||||
“Big 3” Segments Combined |
630 |
590 | 7% | (1%) | 8% | (2%) | 10% | |||||||||||||||||||||
Reuters News |
144 |
121 | 19% | 4% | 14% | 1% | 13% | |||||||||||||||||||||
Total transactions revenues |
774 |
711 | 9% | - | 9% | (2%) | 10% |
Three months ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins and per share amounts) |
2023 |
2022 |
Total |
Foreign Currency |
Constant Currency |
|||||||||||||||
Adjusted EBITDA |
||||||||||||||||||||
Legal Professionals |
298 |
294 | 1% | 3% | (2%) | |||||||||||||||
Corporates |
138 |
135 | 3% | 1% | 1% | |||||||||||||||
Tax & Accounting Professionals |
188 |
189 | (1%) | (2%) | 1% | |||||||||||||||
“Big 3” Segments Combined |
624 |
618 | 1% | 1% | - | |||||||||||||||
Reuters News |
61 |
40 | 56% | 4% | 52% | |||||||||||||||
Global Print |
55 |
59 | (5%) | 3% | (8%) | |||||||||||||||
Corporate costs |
(33) |
(84) | n/a | n/a | n/a | |||||||||||||||
Adjusted EBITDA |
707 |
633 | 12% | 2% | 9% | |||||||||||||||
Adjusted EBITDA margin |
||||||||||||||||||||
Legal Professionals |
42.5% |
41.7% | 80bp | 130bp | (50)bp | |||||||||||||||
Corporates |
34.5% |
35.7% | (120)bp | 20bp | (140)bp | |||||||||||||||
Tax & Accounting Professionals |
54.6% |
58.1% | (350)bp | 80bp | (430)bp | |||||||||||||||
“Big 3” Segments Combined |
43.1% |
43.9% | (80)bp | 70bp | (150)bp | |||||||||||||||
Reuters News |
27.9% |
19.8% | 810bp | 90bp | 720bp | |||||||||||||||
Global Print |
36.4% |
36.1’% | 30bp | 130bp | (100)bp | |||||||||||||||
Adjusted EBITDA margin |
38.9% |
35.9% | 300bp | 90bp | 210bp | |||||||||||||||
Operating expenses |
1,112 |
1,135 | (2%) | (2%) | - | |||||||||||||||
Adjusted EPS |
$0.98 |
$0.75 | 31% | 3% | 28% |
Year ended December 31, |
||||||||||||||||||||
Change |
||||||||||||||||||||
(millions of U.S. dollars, except margins and per share amounts) |
2023 |
2022 |
Total |
Foreign Currency |
Constant Currency |
|||||||||||||||
Adjusted EBITDA |
||||||||||||||||||||
Legal Professionals |
1,299 |
1,227 | 6% | 1% | 5% | |||||||||||||||
Corporates |
619 |
578 | 7% | - | 7% | |||||||||||||||
Tax & Accounting Professionals |
490 |
451 | 8% | (1%) | 10% | |||||||||||||||
“Big 3” Segments Combined |
2,408 |
2,256 | 7% | - | 6% | |||||||||||||||
Reuters News |
172 |
154 | 12% | 7% | 5% | |||||||||||||||
Global Print |
213 |
212 | 1% | 1% | - | |||||||||||||||
Corporate costs |
(115) |
(293) | n/a | n/a | n/a | |||||||||||||||
Adjusted EBITDA |
2,678 |
2,329 | 15% | 1% | 14% | |||||||||||||||
Adjusted EBITDA margin |
||||||||||||||||||||
Legal Professionals |
46.2% |
43.8% | 240bp | 50bp | 190bp | |||||||||||||||
Corporates |
38.1% |
37.6% | 50bp | - | 50bp | |||||||||||||||
Tax & Accounting Professionals |
45.8% |
45.8% | - | 30bp | (30)bp | |||||||||||||||
“Big 3” Segments Combined |
43.8% |
42.4% | 140bp | 30bp | 110bp | |||||||||||||||
Reuters News |
22.4% |
21.0% | 140bp | 140bp | - | |||||||||||||||
Global Print |
38.0% |
35.7% | 230bp | 60bp | 170bp | |||||||||||||||
Adjusted EBITDA margin |
39.3% |
35.1% | 420bp | 40bp | 380bp | |||||||||||||||
Operating Expenses |
4,134 |
4,280 | (3%) | - | (3%) | |||||||||||||||
Adjusted EPS |
$3.51 |
$2.62 | 34% | 2% | 32% |
Three months ended December 31, 2023 |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
IFRS revenues |
Remove fair value adjustments to acquired deferred revenue |
Revenues excluding fair value adjustments to acquired deferred revenue |
Adjusted EBITDA |
Adjusted EBITDA margin |
|||||||||||||||
Revenues |
||||||||||||||||||||
Legal Professionals |
700 |
1 |
701 |
298 |
42.5% |
|||||||||||||||
Corporates |
402 |
- |
402 |
138 |
34.5% |
|||||||||||||||
Tax & Accounting Professionals |
344 |
- |
344 |
188 |
54.6% |
|||||||||||||||
“Big 3” Segments Combined |
1,446 |
1 |
1,447 |
624 |
43.1% |
|||||||||||||||
Reuters News |
220 |
- |
220 |
61 |
27.9% |
|||||||||||||||
Global Print |
154 |
- |
154 |
55 |
36.4% |
|||||||||||||||
Eliminations/Rounding |
(5) |
- |
(5) |
- |
n/a |
|||||||||||||||
Corporate Costs |
- |
- |
- |
(33) |
n/a |
|||||||||||||||
Consolidated totals |
1,815 |
1 |
1,816 |
707 |
38.9% |
Year ended December 31, 2023 |
||||||||||||||||||||
(millions of U.S. dollars, except margins) |
IFRS revenues |
Remove fair value adjustments to acquired deferred revenue |
Revenues excluding fair value adjustments to acquired deferred revenue |
Adjusted EBITDA |
Adjusted EBITDA margin |
|||||||||||||||
Revenues |
||||||||||||||||||||
Legal Professionals |
2,807 |
1 |
2,808 |
1,299 |
46.2% |
|||||||||||||||
Corporates |
1,620 |
3 |
1,623 |
619 |
38.1% |
|||||||||||||||
Tax & Accounting Professionals |
1,058 |
11 |
1,069 |
490 |
45.8% |
|||||||||||||||
“Big 3” Segments Combined |
5,485 |
15 |
5,500 |
2,408 |
43.8% |
|||||||||||||||
Reuters News |
769 |
1 |
770 |
172 |
22.4% |
|||||||||||||||
Global Print |
562 |
- |
562 |
213 |
38.0% |
|||||||||||||||
Eliminations/Rounding |
(22) |
- |
(22) |
- |
n/a |
|||||||||||||||
Corporate Costs |
- |
- |
- |
(115) |
n/a |
|||||||||||||||
Consolidated totals |
6,794 |
16 |
6,810 |
2,678 |
39.3% |
For the years ended and as of December 31, |
||||||||
(millions of U.S. dollars) |
2023 |
2022 |
||||||
Calculation of adjusted operating profit after taxes |
||||||||
Operating profit |
2,332 |
1,834 | ||||||
Adjustments to remove: |
||||||||
Amortization of other identifiable intangible assets |
97 |
99 | ||||||
Fair value adjustments |
18 |
(18) | ||||||
Other operating gains, net |
(397) |
(211) | ||||||
Adjusted operating profit – continuing operations |
2,050 |
1,704 | ||||||
Net cash taxes paid on continuing operations |
(163) |
(193) | ||||||
Post-tax adjusted operating profit- continuing operations |
1,887 |
1,511 | ||||||
Post–tax adjusted operating loss- discontinued operations (3) |
(5) |
(4) | ||||||
Consolidated post-tax adjusted operating profit |
1,882 |
1,507 | ||||||
Calculation of invested capital |
||||||||
Trade and other receivables |
1,122 |
1,069 | ||||||
Prepaid expenses and other current assets |
435 |
469 | ||||||
Property and equipment, net |
447 |
414 | ||||||
Computer software, net |
1,236 |
935 | ||||||
Other identifiable intangible assets (excludes accumulated amortization) |
5,942 |
5,912 | ||||||
Goodwill (1) |
5,685 |
4,894 | ||||||
Payables, accruals and provisions |
(1,114) |
(1,222) | ||||||
Current tax liabilities |
(248) |
(324) | ||||||
Deferred revenue |
(992) |
(886) | ||||||
Total invested capital (2) |
12,513 |
11,261 | ||||||
Average invested capital |
11,887 |
11,348 | ||||||
Return on invested capital |
15.8% |
13.3% |
· |
Most critical estimates and assumptions in determining the value of assets and liabilities; and |
· |
Most critical judgments in applying accounting policies. |
Cash-Generating Unit |
Perpetual growth rate (1) |
Discount rate |
Tax rate |
|||||||||
Legal Professionals |
2.5% | 11.0% | 26.6% | |||||||||
Corporates |
2.5% | 11.0% | 26.8% | |||||||||
Tax & Accounting Professionals |
3.0% | 11.5% | 27.6% | |||||||||
Reuters News |
2.5% | 13.0% | 25.0% | |||||||||
Global Print |
(5.5%) | 11.5% | 26.8% |
· |
TRGP: Pri-2012/MP-2021 |
· |
TTC plan: SAPS S3 Light Tables with allowances for plan demographic specifics and longevity improvements. |
For the years ended and as of December 31, |
||||||||||||
(millions of U.S. dollars, except per share amounts) |
2023 |
2022 |
2021 |
|||||||||
IFRS Consolidated Income Statement Data |
||||||||||||
Revenues |
6,794 |
6,627 | 6,348 | |||||||||
Operating profit |
2,332 |
1,834 | 1,242 | |||||||||
Earnings from continuing operations |
2,646 |
1,391 | 5,687 | |||||||||
Earnings (loss) from discontinued operations, net of tax |
49 |
(53) | 2 | |||||||||
Net earnings |
2,695 |
1,338 | 5,689 | |||||||||
Earnings attributable to common shareholders |
2,695 |
1,338 | 5,689 | |||||||||
Basic earnings per share from continuing operations |
$5.70 |
$2.87 | $11.52 | |||||||||
Basic earnings (loss) per share from discontinued operations |
$0.11 |
$(0.11) | $0.01 | |||||||||
Basic earnings per share |
$5.81 |
$2.76 | $11.53 | |||||||||
Diluted earnings per share from continuing operations |
$5.69 |
$2.86 | $11.50 | |||||||||
Diluted earnings (loss) per share from discontinued operations |
$0.11 |
$(0.11) | - | |||||||||
Diluted earnings per share |
$5.80 |
$2.75 | $11.50 | |||||||||
IFRS Consolidated Statement of Financial Position Data: |
||||||||||||
Total assets |
$18,684 |
21,711 | 22,149 | |||||||||
Total long-term financial liabilities (1) |
3,142 |
3,347 | 4,020 | |||||||||
Dividend Data: |
||||||||||||
Dividends per Thomson Reuters Corporation common share (US$) |
$1.96 |
$1.78 | $1.62 | |||||||||
Dividends per Thomson Reuters Corporation Series II preference share (C$) |
C$1.21 |
C$0.71 | C$0.43 |
Quarters ended |
||||||||||||||||||||||||||||||||
(millions of U.S. dollars, except per share amounts) |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
September 30, 2022 |
June 30, 2022 |
March 31, 2022 |
||||||||||||||||||||||||
Revenues |
1,815 |
1,594 |
1,647 |
1,738 |
1,765 | 1,574 | 1,614 | 1,674 | ||||||||||||||||||||||||
Operating profit |
558 |
441 |
825 |
508 |
631 | 398 | 391 | 414 | ||||||||||||||||||||||||
Earnings (loss) from continuing operations |
650 |
370 |
889 |
737 |
179 | 265 | (71) | 1,018 | ||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of tax |
28 |
(3) |
5 |
19 |
39 |
(37) |
(44) |
(11) |
||||||||||||||||||||||||
Net earnings (loss) |
678 |
367 |
894 |
756 |
218 |
228 |
(115) |
1,007 |
||||||||||||||||||||||||
Earnings (loss) attributable to common shareholders |
678 |
367 |
894 |
756 |
218 |
228 |
(115) |
1,007 |
||||||||||||||||||||||||
Basic earnings (loss) per share |
||||||||||||||||||||||||||||||||
From continuing operations |
$1.43 |
$0.81 |
$1.89 |
$1.56 |
$0.37 | $0.55 | $(0.15) | $2.09 | ||||||||||||||||||||||||
From discontinued operations |
0.06 |
(0.01) |
0.01 |
0.04 |
0.08 |
(0.08) |
(0.09) |
(0.02) |
||||||||||||||||||||||||
$1.49 |
$0.80 |
$1.90 |
$1.60 |
$0.45 |
$0.47 |
$(0.24) |
$2.07 |
|||||||||||||||||||||||||
Diluted earnings (loss) per share |
||||||||||||||||||||||||||||||||
From continuing operations |
$1.43 |
$0.81 |
$1.89 |
$1.55 |
$0.37 | $0.55 | $(0.15) | $2.09 | ||||||||||||||||||||||||
From discontinued operations |
0.06 |
(0.01) |
0.01 |
0.04 |
0.08 |
(0.08) |
(0.09) |
(0.03) |
||||||||||||||||||||||||
$1.49 |
$0.80 |
$1.90 |
$1.59 |
$0.45 |
$0.47 |
$(0.24) |
$2.06 |
· |
Parent – Thomson Reuters Corporation, the direct or indirect owner of all of its subsidiaries |
· |
Subsidiary Issuer – TR Finance LLC |
· |
Guarantor Subsidiaries on a combined basis |
· |
Non-Guarantor Subsidiaries – Other subsidiaries of Thomson Reuters Corporation on a combined basis that will not guarantee TR Finance LLC debt securities |
· |
Eliminations – Consolidating adjustments |
· |
Thomson Reuters on a consolidated basis |
· |
Thomson Reuters Applications Inc., which operates part of the Company’s Legal Professionals, Tax & Accounting Professionals and Corporates businesses; |
· |
Thomson Reuters (Tax & Accounting) Inc., which operates part of the Company’s Tax & Accounting Professionals and Corporates businesses; and |
· |
West Publishing Corporation, which operates part of the Company’s Legal Professionals, Corporates and Global Print businesses. |
Year ended December 31, 2023 | ||||||||||||||||||||||
(millions of U.S. dollars) |
Parent |
Subsidiary Issuer |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Consolidated | ||||||||||||||||
CONTINUING OPERATIONS |
||||||||||||||||||||||
Revenues |
- |
- |
2,165 |
5,411 |
(782) |
6,794 | ||||||||||||||||
Operating expenses |
(13) |
- |
(1,607) |
(3,296) |
782 |
(4,134) | ||||||||||||||||
Depreciation |
- |
- |
(39) |
(77) |
- |
(116) | ||||||||||||||||
Amortization of computer software |
- |
- |
(17) |
(495) |
- |
(512) | ||||||||||||||||
Amortization of other identifiable intangible assets |
- |
- |
(45) |
(52) |
- |
(97) | ||||||||||||||||
Other operating gains, net |
42 |
- |
20 |
335 |
- |
397 | ||||||||||||||||
Operating profit |
29 |
- |
477 |
1,826 |
- |
2,332 | ||||||||||||||||
Finance (costs) income, net: |
||||||||||||||||||||||
Net interest (expense) income |
(190) |
- |
14 |
24 |
- |
(152) | ||||||||||||||||
Other finance (costs) income |
(18) |
- |
2 |
(176) |
- |
(192) | ||||||||||||||||
Intercompany net interest income (expense) |
203 |
- |
(54) |
(149) |
- |
- | ||||||||||||||||
Income before tax and equity method investments |
24 |
- |
439 |
1,525 |
- |
1,988 | ||||||||||||||||
Share of post-tax earnings in equity method investments |
- |
- |
- |
1,075 |
- |
1,075 | ||||||||||||||||
Share of post-tax earnings in subsidiaries |
2,673 |
- |
57 |
337 |
(3,067) |
- | ||||||||||||||||
Tax expense |
- |
- |
(102) |
(315) |
- |
(417) | ||||||||||||||||
Earnings from continuing operations |
2,697 |
- |
394 |
2,622 |
(3,067) |
2,646 | ||||||||||||||||
(Loss) earnings from discontinued operations, net of tax |
(2) |
- |
- |
51 |
- |
49 | ||||||||||||||||
Net earnings |
2,695 |
- |
394 |
2,673 |
(3,067) |
2,695 | ||||||||||||||||
Earnings attributable to common shareholders |
2,695 |
- |
394 |
2,673 |
(3,067) |
2,695 |
Year ended December 31, 2022 | ||||||||||||||||||||||
(millions of U.S. dollars) |
Parent |
Subsidiary Issuer |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Consolidated | ||||||||||||||||
CONTINUING OPERATIONS |
||||||||||||||||||||||
Revenues |
- |
- |
2,261 |
5,129 |
(763) |
6,627 | ||||||||||||||||
Operating expenses |
(7) |
- |
(1,724) |
(3,312) |
763 |
(4,280) | ||||||||||||||||
Depreciation |
- |
- |
(48) |
(92) |
- |
(140) | ||||||||||||||||
Amortization of computer software |
- |
- |
(10) |
(475) |
- |
(485) | ||||||||||||||||
Amortization of other identifiable intangible assets |
- |
- |
(49) |
(50) |
- |
(99) | ||||||||||||||||
Other operating gains (losses), net |
- |
- |
36 |
(262) |
437 |
211 | ||||||||||||||||
Operating (loss) profit |
(7) |
- |
466 |
938 |
437 |
1,834 | ||||||||||||||||
Finance (costs) income, net: |
||||||||||||||||||||||
Net interest expense |
(162) |
- |
(1) |
(33) |
- |
(196) | ||||||||||||||||
Other finance (costs) income |
(122) |
- |
- |
566 |
- |
444 | ||||||||||||||||
Intercompany net interest income (expense) |
155 |
- |
(49) |
(106) |
- |
- | ||||||||||||||||
(Loss) income before tax and equity method investments |
(136) |
- |
416 |
1,365 |
437 |
2,082 | ||||||||||||||||
Share of post-tax losses in equity method investments |
- |
- |
- |
(432) |
- |
(432) | ||||||||||||||||
Share of post-tax earnings in subsidiaries |
1,474 |
- |
6 |
304 |
(1,784) |
- | ||||||||||||||||
Tax expense |
- |
- |
(112) |
(147) |
- |
(259) | ||||||||||||||||
Earnings from continuing operations |
1,338 |
- |
310 |
1,090 |
(1,347) |
1,391 | ||||||||||||||||
Loss from discontinued operations, net of tax |
- |
- |
- |
(53) |
- |
(53) | ||||||||||||||||
Net earnings |
1,338 |
- |
310 |
1,037 |
(1,347) |
1,338 | ||||||||||||||||
Earnings attributable to common shareholders |
1,338 |
- |
310 |
1,037 |
(1,347) |
1,338 |
December 31, 2023 |
||||||||||||||||||||||||
(millions of U.S. dollars) |
Parent |
Subsidiary Issuer |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Consolidated |
||||||||||||||||||
Cash and cash equivalents |
24 |
- |
182 |
1,092 |
- |
1,298 |
||||||||||||||||||
Trade and other receivables |
- |
- |
276 |
846 |
- |
1,122 |
||||||||||||||||||
Intercompany receivables |
2,666 |
- |
465 |
3,402 |
(6,533) |
- |
||||||||||||||||||
Other financial assets |
- |
- |
6 |
60 |
- |
66 |
||||||||||||||||||
Prepaid expenses and other current assets |
- |
- |
212 |
223 |
- |
435 |
||||||||||||||||||
Current assets |
2,690 |
- |
1,141 |
5,623 |
(6,533) |
2,921 |
||||||||||||||||||
Property and equipment, net |
- |
- |
200 |
247 |
- |
447 |
||||||||||||||||||
Computer software, net |
- |
- |
49 |
1,187 |
- |
1,236 |
||||||||||||||||||
Other identifiable intangible assets, net |
- |
- |
1,021 |
2,144 |
- |
3,165 |
||||||||||||||||||
Goodwill |
- |
- |
3,803 |
2,916 |
- |
6,719 |
||||||||||||||||||
Equity method investments |
- |
- |
- |
2,030 |
- |
2,030 |
||||||||||||||||||
Other financial assets |
116 |
- |
6 |
322 |
- |
444 |
||||||||||||||||||
Other non-current assets |
- |
- |
116 |
502 |
- |
618 |
||||||||||||||||||
Intercompany receivables |
188 |
- |
2 |
778 |
(968) |
- |
||||||||||||||||||
Investments in subsidiaries |
14,572 |
- |
489 |
3,943 |
(19,004) |
- |
||||||||||||||||||
Deferred tax |
- |
- |
- |
1,104 |
- |
1,104 |
||||||||||||||||||
Total assets |
17,566 |
- |
6,827 |
20,796 |
(26,505) |
18,684 |
||||||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||
Current indebtedness |
372 |
- |
- |
- |
- |
372 |
||||||||||||||||||
Payables, accruals and provisions |
55 |
- |
317 |
742 |
- |
1,114 |
||||||||||||||||||
Current tax liabilities |
- |
- |
- |
248 |
- |
248 |
||||||||||||||||||
Deferred revenue |
- |
- |
337 |
655 |
- |
992 |
||||||||||||||||||
Intercompany payables |
2,768 |
- |
634 |
3,131 |
(6,533) |
- |
||||||||||||||||||
Other financial liabilities |
400 |
- |
15 |
92 |
- |
507 |
||||||||||||||||||
Current liabilities |
3,595 |
- |
1,303 |
4,868 |
(6,533) |
3,233 |
||||||||||||||||||
Long-term indebtedness |
2,905 |
- |
- |
- |
- |
2,905 |
||||||||||||||||||
Provisions and other non-current liabilities |
2 |
- |
6 |
684 |
- |
692 |
||||||||||||||||||
Other financial liabilities |
- |
- |
76 |
161 |
- |
237 |
||||||||||||||||||
Intercompany payables |
- |
- |
778 |
190 |
(968) |
- |
||||||||||||||||||
Deferred tax |
- |
- |
232 |
321 |
- |
553 |
||||||||||||||||||
Total liabilities |
6,502 |
- |
2,395 |
6,224 |
(7,501) |
7,620 |
||||||||||||||||||
Equity |
||||||||||||||||||||||||
Total equity |
11,064 |
- |
4,432 |
14,572 |
(19,004) |
11,064 |
||||||||||||||||||
Total liabilities and equity |
17,566 |
- |
6,827 |
20,796 |
(26,505) |
18,684 |
December 31, 2022 |
||||||||||||||||||||||||
(millions of U.S. dollars) |
Parent |
Subsidiary Issuer |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Consolidated |
||||||||||||||||||
Cash and cash equivalents |
5 |
- |
125 |
939 |
- |
1,069 |
||||||||||||||||||
Trade and other receivables |
- |
- |
458 |
611 |
- |
1,069 |
||||||||||||||||||
Intercompany receivables |
3,566 |
- |
354 |
2,791 |
(6,711) |
- |
||||||||||||||||||
Other financial assets |
- |
- |
5 |
199 |
- |
204 |
||||||||||||||||||
Prepaid expenses and other current assets |
- |
- |
245 |
224 |
- |
469 |
||||||||||||||||||
Current assets |
3,571 |
- |
1,187 |
4,764 |
(6,711) |
2,811 |
||||||||||||||||||
Property and equipment, net |
- |
- |
159 |
255 |
- |
414 |
||||||||||||||||||
Computer software, net |
- |
- |
4 |
931 |
- |
935 |
||||||||||||||||||
Other identifiable intangible assets, net |
- |
- |
1,066 |
2,153 |
- |
3,219 |
||||||||||||||||||
Goodwill |
- |
- |
3,788 |
2,081 |
- |
5,869 |
||||||||||||||||||
Equity method investments |
- |
- |
- |
6,199 |
- |
6,199 |
||||||||||||||||||
Other financial assets |
60 |
- |
11 |
456 |
- |
527 |
||||||||||||||||||
Other non-current assets |
- |
- |
126 |
493 |
- |
619 |
||||||||||||||||||
Intercompany receivables |
190 |
- |
- |
778 |
(968) |
- |
||||||||||||||||||
Investments in subsidiaries |
15,979 |
- |
64 |
4,145 |
(20,188) |
- |
||||||||||||||||||
Deferred tax |
- |
- |
- |
1,118 |
- |
1,118 |
||||||||||||||||||
Total assets |
19,800 |
- |
6,405 |
23,373 |
(27,867) |
21,711 |
||||||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||
Current indebtedness |
1,647 |
- |
- |
- |
- |
1,647 |
||||||||||||||||||
Payables, accruals and provisions |
48 |
- |
395 |
779 |
- |
1,222 |
||||||||||||||||||
Current tax liabilities |
- |
- |
2 |
322 |
- |
324 |
||||||||||||||||||
Deferred revenue |
- |
- |
341 |
545 |
- |
886 |
||||||||||||||||||
Intercompany payables |
2,385 |
- |
406 |
3,920 |
(6,711) |
- |
||||||||||||||||||
Other financial liabilities |
718 |
- |
18 |
76 |
- |
812 |
||||||||||||||||||
Current liabilities |
4,798 |
- |
1,162 |
5,642 |
(6,711) |
4,891 |
||||||||||||||||||
Long-term indebtedness |
3,114 |
- |
- |
- |
- |
3,114 |
||||||||||||||||||
Provisions and other non-current liabilities |
2 |
- |
4 |
685 |
- |
691 |
||||||||||||||||||
Other financial liabilities |
- |
- |
33 |
200 |
- |
233 |
||||||||||||||||||
Intercompany payables |
1 |
- |
778 |
189 |
(968) |
- |
||||||||||||||||||
Deferred tax |
- |
- |
219 |
678 |
- |
897 |
||||||||||||||||||
Total liabilities |
7,915 |
- |
2,196 |
7,394 |
(7,679) |
9,826 |
||||||||||||||||||
Equity |
||||||||||||||||||||||||
Total equity |
11,885 |
- |
4,209 |
15,979 |
(20,188) |
11,885 |
||||||||||||||||||
Total liabilities and equity |
19,800 |
- |
6,405 |
23,373 |
(27,867) |
21,711 |
(millions of U.S. dollars) |
Parent |
Subsidiary Issuer |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Consolidated |
||||||||||||||||||
Year ended December 31, 2023 |
||||||||||||||||||||||||
Net cash (used in) provided by operating activities |
(251) |
- |
504 |
2,088 |
- |
2,341 |
||||||||||||||||||
Net cash provided by (used in) investing activities |
4,159 |
- |
(249) |
3,848 |
(4,245) |
3,513 |
||||||||||||||||||
Net cash used in financing activities |
(3,889) |
- |
(198) |
(5,784) |
4,245 |
(5,626) |
||||||||||||||||||
Translation adjustments |
- |
- |
- |
1 |
- |
1 |
||||||||||||||||||
Increase in cash and cash equivalents |
19 |
- |
57 |
153 |
- |
229 |
||||||||||||||||||
Year ended December 31, 2022 |
||||||||||||||||||||||||
Net cash provided by operating activities |
26 | - | 751 | 1,138 | - | 1,915 | ||||||||||||||||||
Net cash provided by (used in) investing activities |
765 | - | 66 | 193 | (1,486) | (462) | ||||||||||||||||||
Net cash used in financing activities |
(801) | - | (929) | (912) | 1,486 | (1,156) | ||||||||||||||||||
Translation adjustments |
- | - | - | (6) | - | (6) | ||||||||||||||||||
(Decrease) increase in cash and cash equivalents |
(10) | - | (112) | 413 | - | 291 |
Steve Hasker President and Chief Executive Officer March 7, 2024 |
Michael Eastwood Chief Financial Officer |
Steve Hasker President and Chief Executive Officer |
Michael Eastwood Chief Financial Officer | |
March 7, 2024 |
Year ended December 31, |
||||||||||
(millions of U.S. dollars, except per share amounts) |
Notes |
2023 |
2022 |
|||||||
CONTINUING OPERATIONS |
|
|
|
|
|
|
| |||
Revenues |
3 |
|
|
|
|
|
| |||
Operating expenses |
5 |
|
( |
|
|
( |
| |||
Depreciation |
|
|
( |
|
|
( |
| |||
Amortization of computer software |
|
|
( |
|
|
( |
| |||
Amortization of other identifiable intangible assets |
|
|
( |
|
|
( |
| |||
Other operating gains, net |
6 |
|
|
|
|
|
| |||
Operating profit |
|
|
|
|
|
|
| |||
Finance costs, net: |
|
|
|
|
|
|
| |||
Net interest expense |
8 |
|
( |
|
|
( |
| |||
Other finance (costs) income |
8 |
|
( |
|
|
|
| |||
Income before tax and equity method investments |
|
|
|
|
|
|
| |||
Share of post-tax earnings (losses) in equity method investments |
9 |
|
|
|
|
( |
| |||
Tax expense |
10 |
|
( |
|
|
( |
| |||
Earnings from continuing operations |
|
|
|
|
|
|
| |||
Earnings (loss) from discontinued operations, net of tax |
11 |
|
|
|
|
( |
| |||
Net earnings |
|
|
|
|
|
| ||||
Earnings attributable to common shareholders |
|
|
|
|
|
| ||||
Earnings (loss) per share: |
12 |
|
|
|
|
|
| |||
Basic earnings per share |
|
|
|
|
|
|
| |||
From continuing operations |
|
|
$ |
|
|
$ |
| |||
From discontinued operations |
|
|
|
|
( |
| ||||
Basic earnings per share |
|
$ |
|
|
$ |
| ||||
Diluted earnings per share |
|
|
|
|
|
|
| |||
From continuing operations |
|
|
$ |
|
|
$ |
| |||
From discontinued operations |
|
|
|
|
( |
| ||||
Diluted earnings per share |
|
$ |
|
|
$ |
|
Year ended December 31, |
||||||||||||
(millions of U.S. dollars) |
Notes |
2023 |
2022 |
|||||||||
Net earnings |
||||||||||||
Other comprehensive income (loss) |
||||||||||||
Items that have been or may be subsequently reclassified to net earnings: |
||||||||||||
Cash flow hedges adjustments to net earnings |
20 | ( |
||||||||||
Cash flow hedges adjustments to equity |
20 | ( |
||||||||||
Foreign currency translation adjustments to equity |
20 | ( |
||||||||||
Reclassification of foreign currency translation adjustments on disposal of business |
( |
|||||||||||
( |
||||||||||||
Items that will not be reclassified to net earnings: |
||||||||||||
Fair value adjustments on financial assets |
20 | ( |
||||||||||
Remeasurement on defined benefit pension plans |
27 | ( |
||||||||||
Related tax benefit on remeasurement on defined benefit pension plans |
10 | |||||||||||
( |
||||||||||||
Other comprehensive income (loss) |
( |
|||||||||||
Total comprehensive income |
||||||||||||
Comprehensive income (loss) for the period attributable to: |
||||||||||||
Common shareholders: |
||||||||||||
Continuing operations |
||||||||||||
Discontinued operations |
( |
|||||||||||
Total comprehensive income |
December 31, |
||||||||||||
(millions of U.S. dollars) |
Notes |
2023 |
2022 |
|||||||||
ASSETS |
|
|
|
|
|
|
|
|
| |||
Cash and cash equivalents |
13 | |||||||||||
Trade and other receivables |
14 | |||||||||||
Other financial assets |
20 | |||||||||||
Prepaid expenses and other current assets |
15 | |||||||||||
Current assets |
|
|
|
|||||||||
Property and equipment, net |
16 | |||||||||||
Computer software, net |
17 | |||||||||||
Other identifiable intangible assets, net |
18 | |||||||||||
Goodwill |
19 | |||||||||||
Equity method investments |
9 | |||||||||||
Other financial assets |
20 | |||||||||||
Other non-current assets |
21 | |||||||||||
Deferred tax |
24 | |||||||||||
Total assets |
||||||||||||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| |||
Liabilities |
|
|
|
|
|
|
|
|
| |||
Current indebtedness |
20 | |||||||||||
Payables, accruals and provisions |
22 | |||||||||||
Current tax liabilities |
|
|
|
|||||||||
Deferred revenue |
3 | |||||||||||
Other financial liabilities |
20 | |||||||||||
Current liabilities |
|
|
|
|||||||||
Long-term indebtedness |
20 | |||||||||||
Provisions and other non-current liabilities |
23 | |||||||||||
Other financial liabilities |
20 | |||||||||||
Deferred tax |
24 | |||||||||||
Total liabilities |
|
|
|
|||||||||
Equity |
|
|
|
|
|
|
|
|
| |||
Capital |
25 | |||||||||||
Retained earnings |
|
|
|
|||||||||
Accumulated other comprehensive loss |
( |
( |
||||||||||
Total equity |
||||||||||||
Total liabilities and equity |
||||||||||||
Contingencies (note 31) |
|
|
|
|
|
|
|
|
|
|
| |
David Thomson Director |
Steve Hasker Director |
Year ended December 31, |
||||||||||||
(millions of U.S. dollars) |
Notes |
2023 |
2022 |
|||||||||
Cash provided by (used in): |
|
|
|
|
|
|
|
|
| |||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| |||
Earnings from continuing operations |
|
|
|
|||||||||
Adjustments for: |
|
|
|
|
|
|
|
|
| |||
Depreciation |
|
|
|
|||||||||
Amortization of computer software |
|
|
|
|||||||||
Amortization of other identifiable intangible assets |
|
|
|
|||||||||
Share of post-tax (earnings) losses in equity method investments |
9 | ( |
||||||||||
Net gains on disposals of businesses and investments |
|
|
|
( |
( |
|||||||
Deferred tax |
24 | ( |
( |
|||||||||
Other |
29 | ( |
||||||||||
Changes in working capital and other items |
29 | |||||||||||
Operating cash flows from continuing operations |
|
|
|
|||||||||
Operating cash flows from discontinued operations |
( |
|||||||||||
Net cash provided by operating activities |
||||||||||||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| |||
Acquisitions, net of cash acquired |
30 | ( |
( |
|||||||||
Proceeds from disposals of businesses and investments |
|
|
|
|||||||||
Proceeds from sales of LSEG shares |
9 | |||||||||||
Capital expenditures |
|
|
|
( |
( |
|||||||
Other investing activities |
9 | |||||||||||
Taxes paid on sales of LSEG shares and disposals of businesses |
( |
( |
||||||||||
Investing cash flows from continuing operations |
( |
|||||||||||
Investing cash flows from discontinued operations |
( |
( |
||||||||||
Net cash provided by (used in) investing activities |
( |
|||||||||||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| |||
Repayments of debt |
20 | ( |
||||||||||
Net (repayments) borrowings under short-term loan facilities |
20 | ( |
||||||||||
Payments of lease principal |
28 | ( |
( |
|||||||||
Payments for return of capital on common shares |
25 | ( |
||||||||||
Repurchases of common shares |
25 | ( |
( |
|||||||||
Dividends paid on preference shares |
|
|
|
( |
( |
|||||||
Dividends paid on common shares |
25 | ( |
( |
|||||||||
Other financing activities |
( |
|||||||||||
Net cash used in financing activities |
( |
( |
||||||||||
Translation adjustments |
( |
|||||||||||
Increase in cash and cash equivalents |
|
|
|
|||||||||
Cash and cash equivalents at beginning of period |
||||||||||||
Cash and cash equivalents at end of period |
13 | |||||||||||
Supplemental cash flow information is provided in note 29. |
|
|
|
|
|
|
|
|
| |||
Interest paid, net of debt-related hedges |
|
|
|
( |
( |
|||||||
Interest received |
|
|
|
|||||||||
Income taxes paid |
29 | ( |
( |
(millions of U.S. dollars) |
Stated share capital |
Contributed surplus |
Total capital |
|
Retained earnings |
Unrecognized gain on financial instruments |
Foreign currency translation adjustments |
Total accumulated other comprehensive loss (“AOCL”) |
Total equity |
|||||||||||||||||||||||||
Balance, December 31, 2022 |
|
( |
( |
|||||||||||||||||||||||||||||||
Net earnings |
- |
- |
- |
|
- |
- |
- |
|||||||||||||||||||||||||||
Other comprehensive income |
- |
- |
- |
|
- |
|||||||||||||||||||||||||||||
Total comprehensive income |
- |
- |
- |
|
||||||||||||||||||||||||||||||
Return of capital on common shares (see note 25) |
( |
( |
|
- |
- |
- |
- |
( |
||||||||||||||||||||||||||
Dividends declared on preference shares |
- |
- |
- |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Dividends declared on common shares |
- |
- |
- |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Shares issued under Dividend Reinvestment Plan (“DRIP”) |
- |
|
- |
- |
- |
- |
||||||||||||||||||||||||||||
Repurchases of common shares (see note 25) |
( |
- |
( |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Pre-defined share repurchase plan (see note 25) |
( |
- |
( |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Stock compensation plans |
( |
|
( |
- |
- |
- |
||||||||||||||||||||||||||||
Balance, December 31, 2023 |
|
( |
( |
(millions of U.S. dollars) |
Stated share capital |
Contributed surplus |
Total capital |
|
Retained earnings |
Unrecognized (loss) gain on financial instruments |
Foreign currency translation adjustments |
AOCL |
Total equity |
|||||||||||||||||||||||||
Balance, December 31, 2021 |
|
( |
( |
|||||||||||||||||||||||||||||||
Net earnings |
- |
- |
- |
|
- |
- |
- |
|||||||||||||||||||||||||||
Other comprehensive loss |
- |
- |
- |
|
( |
( |
( |
( |
( |
|||||||||||||||||||||||||
Total comprehensive income (loss) |
- |
- |
- |
|
( |
( |
( |
|||||||||||||||||||||||||||
Dividends declared on preference shares |
- |
- |
- |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Dividends declared on common shares |
- |
- |
- |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Shares issued under DRIP |
- |
|
- |
- |
- |
- |
||||||||||||||||||||||||||||
Repurchases of common shares (see note 25) |
( |
- |
( |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Pre-defined share repurchase plan (see note 25) |
( |
- |
( |
|
( |
- |
- |
- |
( |
|||||||||||||||||||||||||
Stock compensation plans |
( |
|
( |
- |
- |
- |
||||||||||||||||||||||||||||
Balance, December 31, 2022 |
|
( |
( |
· |
Acquisition cost is measured as the fair value of the assets given and liabilities incurred or assumed at the date of exchange, excluding transaction costs which are expensed as incurred; |
· |
Identifiable assets acquired and liabilities assumed are measured at their fair values at the acquisition date; |
· |
The excess of acquisition cost over the fair value of the identifiable net assets acquired is recorded as goodwill; and |
· |
Contingent cash consideration, a financial liability, is measured at fair value on the acquisition date, with subsequent changes in fair value recorded through the consolidated income statement. |
· |
Investments are initially recognized at cost and are reported in the consolidated statement of financial position; |
· |
The Company’s share of post-acquisition profits or losses is recognized in the consolidated income statement and the Company’s share of other comprehensive income or losses is recognized in the consolidated statement of comprehensive income, and both are adjusted against the carrying amount of the investments; |
· |
When the Company’s share of losses equals or exceeds its interest in the investee, the Company does not recognize further losses, unless it has incurred obligations or made payments on behalf of the investee; |
· |
Gains and losses on transactions between the Company and its equity method investees are eliminated to the extent of the Company’s interest in these entities; |
· |
Dividends received or receivable from equity method investees are recognized as a reduction in the carrying amount of the investment. Dividends received are included within the investing activities section of the consolidated statement of cash flow; and |
· |
Equity method investees are assessed for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable and at the end of each reporting period for indicators of impairment. |
· |
Assets and liabilities of entities with functional currencies other than U.S. dollars are translated to U.S. dollars at the period end rates of exchange, and the results of their operations are translated at average rates of exchange for the period. The resulting translation adjustments are included in accumulated other comprehensive loss in shareholders’ equity. For entities operating in countries where the currency has been designated as hyperinflationary, the assets, liabilities and results of their operations are translated at the period end rates of exchange, after re-indexing the local currency balances for the most recent inflation rates. |
· |
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions as well as from the translation of monetary assets and liabilities not denominated in the functional currency of the subsidiary, are recognized in the consolidated income statement, except for qualifying cash flow hedges which are deferred in accumulated other comprehensive loss in shareholders’ equity. |
· |
Foreign exchange gains and losses arising from borrowings and related hedging instruments, cash and cash equivalents, intercompany loans that are not permanent in nature and foreign exchange contracts are presented in the consolidated income statement within “Finance costs, net”. |
· |
Foreign exchange gains and losses related to certain intercompany loans that are permanent in nature are included in accumulated other comprehensive loss. |
· |
All other foreign exchange gains and losses are presented in the consolidated income statement within “Operating expenses”. |
· |
Volume-based revenues are recognized based on usage, such as certain fees related to online searches and tax filings, and transactions in the Company’s Confirmation, Reuters Events and SurePrep businesses; |
· |
Fees for software licenses with no future obligations are recognized at the point of delivery; and |
· |
Professional fees for service and consulting arrangements are recognized as services are performed, generally based on hours incurred, reflecting the continuous transfer of control to the customer. |
· |
Assets related to new customer contracts are amortized over |
· |
Assets related to renewal of customer contracts are amortized over the term of the contract if they are commensurate with previous renewals commissions. |
Buildings and building improvements |
||||
Computer equipment |
||||
Furniture, fixtures and other equipment |
7 |
· |
It is technically feasible to complete the software product so that it will be available for use; |
· |
Management intends to complete the software product and use or sell it; |
· |
There is an ability to use or sell the software product; |
· |
It can be demonstrated how the software product will generate probable future economic benefits; |
· |
Adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and |
· |
The expenditure attributable to the software product during its development can be reliably measured. |
· |
It has the contractual right to take possession of the software from the cloud provider without significant penalty; and |
· |
It can demonstrate that it is feasible for the Company to run the software on its own hardware or that of another provider. |
Trade names |
||||
Customer relationships |
||||
Databases and content |
||||
Other |
· |
Goodwill is allocated to cash-generating units (“CGUs”) based on the level at which management monitors it. The Company’s CGUs are the same as its operating segments. Goodwill is allocated to its CGUs based on the expected benefits of each business combination in which the goodwill arose; and |
· |
Identifiable intangible assets with indefinite lives are comprised of the Reuters and West tradenames, reflecting their widespread brand recognition, long history, and expected future use. For purposes of impairment testing, the West tradename is allocated to the Legal Professionals, Corporates and Global Print CGUs as it primarily benefits those CGUs. As the Reuters tradename is considered a corporate asset because it is used in the Company’s name, its carrying value is compared to the excess fair value of all the Company’s CGUs for purposes of impairment testing. |
· |
Represent a separate major line of business or geographical area of operations; |
· |
Are part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or |
· |
Are a subsidiary acquired exclusively with a view to resale. |
· |
The initial amount of the lease liability; |
· |
Lease payments made at or before the commencement date; and |
· |
Initial direct costs and expected restoration costs. |
· |
Fixed payments (including in-substance fixed payments), less any lease incentives receivable; |
· |
Variable lease payments that are based on an index or a rate (including inflation-linked payments); |
· |
Amounts expected to be payable under residual value guarantees; |
· |
Exercise price of a purchase option if the Company is reasonably certain to exercise that option; and |
· |
Penalty payments for terminating the lease, if the lease term reflects the Company exercising that option. |
· |
Classification |
· |
Recognition and measurement |
· |
Classification |
· |
Recognition and measurement |
· |
Classification |
· |
Recognition and measurement |
· |
Fair value hedges |
· |
Cash flow hedges |
— |
amounts accumulated in other comprehensive income or loss are recycled to the consolidated income statement in the period when the hedged item will affect earnings; |
— |
when a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss in other comprehensive income or loss remains in other comprehensive income or loss and is recognized when the forecast transaction is ultimately recognized in the consolidated income statement; and |
— |
when a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in other comprehensive income or loss is immediately recognized in the consolidated income statement. |
· |
Are generally recognized for all taxable temporary differences; |
· |
Are recognized for taxable temporary differences arising on investments in subsidiaries and associates, except where the reversal of the temporary difference can be controlled, and it is probable that the difference will not reverse in the foreseeable future or create a tax liability; and |
· |
Are not recognized on temporary differences that arise from goodwill that is not deductible for tax purposes. |
· |
Are recognized to the extent it is probable that taxable profits will be available against which the deductible temporary differences can be utilized; and |
· |
Are reviewed at the end of the reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. |
· |
Most critical estimates and assumptions in determining the value of assets and liabilities; and |
· |
Most critical judgments in applying accounting policies. |
Revenues by type |
Legal Professionals |
Corporates |
Tax & Accounting Professionals |
Reuters News |
Global Print |
Eliminations/ Rounding |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, |
2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | ||||||||||||||||||||||||||||||||||||||||||
Recurring |
- |
- | ( |
( |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions |
- |
- | - |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Print |
- |
- | - |
- | - |
- | - |
- | - |
- | ||||||||||||||||||||||||||||||||||||||||||||||
Total |
( |
( |
Revenues by geography (1) |
Legal Professionals |
Corporates |
Tax & Accounting Professionals |
Reuters News |
Global Print |
Eliminations/ Rounding |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||||||||||||||||||||||||||||
U.S. |
( |
( |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canada (country of domicile) |
- |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other |
- |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Americas (North America, Latin America, South America) |
( |
( |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.K. |
- |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other |
- |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMEA (Europe, Middle East and Africa) |
- |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific |
- |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
( |
( |
December 31, |
||||||||||||
2023 |
2022 |
2021 |
||||||||||
Deferred revenue |
December 31, |
||||||||
2023 |
2022 |
|||||||
1 year |
||||||||
Between 1 and 2 years |
||||||||
Between 2 and 3 years |
||||||||
Later than 3 years |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Revenues |
||||||||
Legal Professionals |
||||||||
Corporates |
||||||||
Tax & Accounting Professionals |
||||||||
Reuters News |
||||||||
Global Print |
||||||||
Eliminations/Rounding |
( |
( |
||||||
Revenues |
||||||||
Adjusted EBITDA |
||||||||
Legal Professionals |
||||||||
Corporates |
||||||||
Tax & Accounting Professionals |
||||||||
Reuters News |
||||||||
Global Print |
||||||||
Total reportable segments adjusted EBITDA |
||||||||
Corporate costs |
( |
( |
||||||
Fair value adjustments (1) |
( |
|||||||
Depreciation |
( |
( |
||||||
Amortization of computer software |
( |
( |
||||||
Amortization of other identifiable intangible assets |
( |
( |
||||||
Other operating gains, net |
||||||||
Operating profit |
||||||||
Net interest expense |
( |
( |
||||||
Other finance (costs) income |
( |
|||||||
Share of post-tax earnings (losses) in equity method investments |
( |
|||||||
Tax expense |
( |
( |
||||||
Earnings from continuing operations |
· |
Segment adjusted EBITDA represents earnings or loss from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of software and other identifiable intangible assets, the Company’s share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges, corporate related items and fair value adjustments, including those related to acquired deferred revenue. |
· |
The Company does not consider these excluded items to be controllable operating activities for purposes of assessing the current performance of the reportable segments. |
· |
Each segment includes an allocation of costs, based on usage or other applicable measures, for centralized support services such as technology, customer service, commercial policy, facilities management, and product and content development. Additionally, product costs are allocated when one segment sells products managed by another segment. |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Electronic, software & services |
||||||||
Global Print |
||||||||
Total |
Geographic Information |
Non-Current Assets (1) |
|||||||
December 31, |
||||||||
2023 |
2022 |
|||||||
U.S. |
||||||||
Canada (country of domicile) |
||||||||
Other |
||||||||
Americas (North America, Latin America, South America) |
||||||||
Switzerland |
||||||||
U.K. |
||||||||
Other |
||||||||
EMEA (Europe, Middle East and Africa) |
||||||||
Asia Pacific |
||||||||
Total |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Salaries, commissions and allowances |
||||||||
Share-based payments |
||||||||
Post-employment benefits |
||||||||
Total staff costs |
||||||||
Goods and services (1) |
||||||||
Content |
||||||||
Telecommunications |
||||||||
Facilities |
||||||||
Fair value adjustments (2) |
( |
|||||||
Total operating expenses |
Year ended December 31, |
||||||||
2023 |
||||||||
Consideration received - cash and cash equivalents |
||||||||
Trade and other receivables |
( |
|||||||
Prepaid expenses and other current assets |
( |
|||||||
Computer software |
( |
|||||||
Goodwill |
( |
|||||||
Other non-current assets |
( |
|||||||
Total assets |
( |
|||||||
Payables, accruals and provisions |
||||||||
Deferred revenue |
||||||||
Total liabilities |
||||||||
Net assets disposed |
( |
|||||||
Opening balance |
||||||||
Other |
( |
|||||||
Gain on sale before income tax |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Interest expense: |
||||||||
Debt |
||||||||
Derivative financial instruments - hedging activities |
( |
( |
||||||
Other, net (1) |
||||||||
Fair value (gains) losses on cash flow hedges, transfer from equity (see note 20) |
( |
|||||||
Net foreign exchange losses (gains) on debt |
( |
|||||||
Net interest expense - debt and other |
||||||||
Net interest expense - leases |
||||||||
Net interest expense - pension and other post-employment benefit plans |
||||||||
Interest income |
( |
( |
||||||
Net interest expense |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Net losses (gains) due to changes in foreign currency exchange rates |
( |
|||||||
Net losses (gains) on derivative instruments |
( |
|||||||
Other |
( |
( |
||||||
Other finance costs (income) |
( |
December 31, |
||||||||
2023 |
2022 |
|||||||
YPL |
||||||||
Other equity method investments |
||||||||
Total equity method investments |
· |
The Company received $ |
· |
The Company received $ |
· |
The Company sold approximately million shares under the call options described above and received proceeds of $ million in 2023 ($ |
· |
LSEG repurchased |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
YPL |
( |
|||||||
Other equity method investments |
( |
|
( |
| ||||
Total share of post-tax earnings (losses) in equity method investments |
( |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Increase in LSEG share price |
||||||||
Foreign exchange gains (losses) on LSEG shares |
( |
|||||||
Dividend income |
||||||||
(Loss) gain from forward contract |
( |
|||||||
Loss from call options |
( |
|||||||
Historical excluded equity adjustment (1) |
||||||||
YPL - Share of post-tax earnings (losses) in equity method investments |
( |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Mark-to-market |
( |
|||||||
Dividend income |
||||||||
(Loss) gain from forward contract |
( |
|||||||
Loss from call options |
( |
|||||||
Net earnings (loss) |
( |
|||||||
Total comprehensive income (loss) |
( |
December 31, |
||||||||
2023 |
2022 |
|||||||
Assets |
|
|
|
|
|
| ||
Current assets |
||||||||
Non-current assets |
||||||||
Total assets |
||||||||
Liabilities |
|
|
|
|
|
| ||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Total liabilities |
||||||||
Net assets attributable to YPL |
||||||||
Net assets attributable to YPL - beginning period |
||||||||
Net earnings (loss) attributable to YPL |
( |
|||||||
Distribution to owners |
( |
( |
||||||
Net assets attributable to YPL - ending period |
||||||||
Thomson Reuters % share |
||||||||
Thomson Reuters $ share |
||||||||
Historical excluded equity adjustment (1) |
( |
( |
||||||
Thomson Reuters carrying amount |
Year |
||||||||
2023 |
2022 |
|||||||
Current tax expense |
|
|||||||
Deferred tax benefit |
( |
( |
||||||
Total tax expense |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Included in Other comprehensive income (loss) |
|
|
|
|
|
| ||
Deferred tax benefit on remeasurement on defined benefit pension plans |
( |
|||||||
Included in Equity |
|
|
|
|
|
| ||
Deferred tax expense on share-based payments |
||||||||
Current tax benefit on share-based payments |
( |
( |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Income before tax |
||||||||
Income before tax multiplied by the standard rate of Canadian corporate tax of 26.5% |
||||||||
Effects of: |
|
|
|
|
|
| ||
Income taxes recorded at rates different from the Canadian tax rate |
( |
( |
||||||
Tax losses for which no benefit is recognized |
||||||||
Net non-taxable foreign exchange and other gains and losses |
( |
|||||||
Tax expense (benefit) on changes in statutory intercompany investment values |
( |
|||||||
(Recognition) derecognition of tax losses that arose in prior years due to changes in statutory intercompany investment values |
( |
|||||||
Provision for uncertain tax positions |
( |
|||||||
(Recognition) derecognition of tax assets that arose in prior years |
( |
|||||||
Recognition of tax attributes of foreign subsidiaries |
( |
( |
||||||
Impact of changes in tax laws and rates |
( |
( |
||||||
Research and development credits |
( |
( |
||||||
Other adjustments related to prior years |
||||||||
Withholding taxes |
||||||||
Other differences |
||||||||
Total tax expense |
Year ended December 31, | ||||||||
2023 |
2022 | |||||||
Earnings attributable to common shareholders |
||||||||
Less: Dividends declared on preference shares |
( |
( |
||||||
Earnings used in consolidated earnings per share |
||||||||
Less: (Earnings) loss from discontinued operations, net of tax |
( |
|||||||
Earnings used in earnings per share from continuing operations |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Weighted-average number of common shares outstanding |
||||||||
Weighted-average number of vested DSUs |
||||||||
Basic |
||||||||
Effect of stock options and TRSUs |
||||||||
Diluted |
December 31, |
||||||||
2023 |
2022 |
|||||||
Cash |
||||||||
Cash at bank and on hand |
|
|||||||
Cash equivalents |
||||||||
Money market accounts |
||||||||
Cash and cash equivalents |
December 31, |
||||||||
2023 |
2022 |
|||||||
Trade receivables |
|
|||||||
Less: allowance for doubtful accounts |
( |
( |
||||||
Less: allowance for sales adjustments |
( |
( |
||||||
Net trade receivables |
||||||||
Other receivables |
||||||||
Trade and other receivables |
December 31, |
||||||||
2023 |
2022 |
|||||||
Current - 30 days |
|
|||||||
Past due 31-60 days |
||||||||
Past due 61-90 days |
||||||||
Past due 91-180 days |
||||||||
Past due >180 days |
||||||||
Balance as of December 31 |
December 31, |
||||||||
2023 |
2022 |
|||||||
Balance at beginning of year |
|
|||||||
Charges |
||||||||
Write-offs |
( |
( |
||||||
Disposals of businesses |
( |
|||||||
Translation and other, net |
( |
|||||||
Balance at end of year |
December 31, |
||||||||
2023 |
2022 |
|||||||
Inventory |
|
|||||||
Prepaid expenses |
||||||||
Current tax receivables |
||||||||
Deferred commissions |
||||||||
Other current assets |
||||||||
Prepaid expenses and other current assets |
Land, Buildings and Building Improvements |
Computer Equipment |
Furniture, Fixtures and Other Equipment |
Total |
|||||||
Cost: |
|
|
|
|
|
| ||||
December 31, 2021 |
||||||||||
Additions: |
|
|
|
|
|
| ||||
Capital expenditures |
||||||||||
Leases |
||||||||||
Removed from service |
( |
( |
( |
( |
||||||
Translation and other, net |
( |
( |
( |
( |
||||||
December 31, 2022 |
||||||||||
Additions: |
|
|
|
|
|
| ||||
Capital expenditures |
||||||||||
Leases |
||||||||||
Acquisitions |
||||||||||
Removed from service |
( |
( |
( |
( |
||||||
Disposals of businesses and property |
( |
( |
( |
( |
||||||
Translation and other, net |
||||||||||
December 31, 2023 |
||||||||||
Accumulated depreciation: |
|
|
|
|
|
| ||||
December 31, 2021 |
( |
( |
( |
( |
||||||
Depreciation |
( |
( |
( |
( |
||||||
Removed from service |
||||||||||
Translation and other, net |
||||||||||
December 31, 2022 |
( |
( |
( |
( |
||||||
Depreciation |
( |
( |
( |
( |
||||||
Removed from service |
||||||||||
Disposals of businesses and property |
||||||||||
Translation and other, net |
( |
( |
( |
|||||||
December 31, 2023 |
( |
( |
( |
( |
||||||
Carrying amount: |
|
|
|
|
|
| ||||
December 31, 2022 |
||||||||||
December 31, 2023 |
Internally Developed |
Acquisitions - Business Combinations (1) |
Purchased |
Total |
|||||||
Cost: |
|
|
|
|
|
| ||||
December 31, 2021 |
||||||||||
Additions |
||||||||||
Removed from service |
( |
- | ( |
( |
||||||
Disposals of businesses |
( |
- | - | ( |
||||||
Translation and other, net |
( |
( |
- | ( |
||||||
December 31, 2022 |
||||||||||
Additions |
||||||||||
Removed from service |
( |
( |
( |
|||||||
Disposals of businesses |
( |
( |
||||||||
Translation and other, net |
||||||||||
December 31, 2023 |
||||||||||
Accumulated amortization: |
|
|
|
|
|
| ||||
December 31, 2021 |
( |
( |
( |
( |
||||||
Amortization |
( |
( |
( |
( |
||||||
Removed from service |
- | |||||||||
Disposals of businesses |
- | - | ||||||||
Translation and other, net |
- | |||||||||
December 31, 2022 |
( |
( |
( |
( |
||||||
Amortization |
( |
( |
( |
( |
||||||
Removed from service |
||||||||||
Disposals of businesses |
||||||||||
Translation and other, net |
( |
( |
||||||||
December 31, 2023 |
( |
( |
( |
( |
||||||
Carrying amount: |
|
|
|
|
|
| ||||
December 31, 2022 |
||||||||||
December 31, 2023 |
Indefinite Useful Life |
Finite Useful Life |
|||||||||||||||||||||||||||||||
Trade Names |
Trade Names |
Customer Relationships |
Databases and Content |
Other |
Total |
|||||||||||||||||||||||||||
Cost: |
||||||||||||||||||||||||||||||||
December 31, 2021 |
||||||||||||||||||||||||||||||||
Acquisitions |
||||||||||||||||||||||||||||||||
Removed from service |
( |
( |
||||||||||||||||||||||||||||||
Disposals of businesses |
( |
( |
||||||||||||||||||||||||||||||
Translation and other, net |
( |
( |
( |
( |
||||||||||||||||||||||||||||
December 31, 2022 |
||||||||||||||||||||||||||||||||
Acquisitions |
||||||||||||||||||||||||||||||||
Disposals of businesses |
( |
( |
( |
|||||||||||||||||||||||||||||
Translation and other, net |
||||||||||||||||||||||||||||||||
December 31, 2023 |
||||||||||||||||||||||||||||||||
Accumulated amortization: |
||||||||||||||||||||||||||||||||
December 31, 2021 |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||
Amortization |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||
Removed from service |
||||||||||||||||||||||||||||||||
Disposals of businesses |
||||||||||||||||||||||||||||||||
Translation and other, net |
||||||||||||||||||||||||||||||||
December 31, 2022 |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||
Amortization |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||
Disposals of businesses |
||||||||||||||||||||||||||||||||
Translation and other, net |
( |
( |
( |
( |
||||||||||||||||||||||||||||
December 31, 2023 |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||
Carrying amount: |
||||||||||||||||||||||||||||||||
December 31, 2022 |
||||||||||||||||||||||||||||||||
December 31, 2023 |
December 31, |
||||||||
2023 |
2022 |
|||||||
Cost: |
||||||||
Balance as of January 1, |
||||||||
Acquisitions |
||||||||
Disposals of businesses |
( |
( |
||||||
Translation and other, net |
( |
|||||||
Carrying amount as of December 31: |
Cash-Generating Unit |
2023 |
|||
Legal Professionals |
||||
Corporates |
||||
Tax & Accounting Professionals |
||||
Reuters News |
||||
Global Print |
Cash-Generating Unit |
Perpetual Growth Rate (1) |
Discount Rate |
Tax Rate |
|||||||||
Legal Professionals |
||||||||||||
Corporates |
| |||||||||||
Tax & Accounting Professionals |
||||||||||||
Reuters News |
||||||||||||
Global Print |
( |
December 31, 2023 |
Assets/(Liabilities) at Amortized Cost |
Assets/(Liabilities) at Fair Value through Earnings |
Assets at Fair Value through Other Comprehensive Income or Loss |
Derivatives Used for Hedging (1) |
Total |
|||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||
Trade and other receivables |
||||||||||||||||||||
Other financial assets – current |
||||||||||||||||||||
Other financial assets – non-current |
||||||||||||||||||||
Current indebtedness |
( |
( |
||||||||||||||||||
Trade payables (see note 22) |
( |
( |
||||||||||||||||||
Accruals (see note 22) |
( |
( |
||||||||||||||||||
Other financial liabilities – current (2)(3) |
( |
( |
( |
|||||||||||||||||
Long-term indebtedness |
( |
( |
||||||||||||||||||
Other financial liabilities – non-current (4) |
( |
( |
( |
|||||||||||||||||
Total |
( |
( |
December 31, 2022 |
Assets/(Liabilities) at Amortized Cost |
Assets/(Liabilities) at Fair Value through Earnings |
Assets at Fair Value through Other Comprehensive Income or Loss |
Derivatives Used for Hedging (1) |
Total |
|||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||
Trade and other receivables |
||||||||||||||||||||
Other financial assets – current |
||||||||||||||||||||
Other financial assets – non-current |
||||||||||||||||||||
Current indebtedness |
( |
( |
||||||||||||||||||
Trade payables (see note 22) |
( |
( |
||||||||||||||||||
Accruals (see note 22) |
( |
( |
||||||||||||||||||
Other financial liabilities – current (2)(3) |
( |
( |
( |
|||||||||||||||||
Long-term indebtedness |
( |
( |
||||||||||||||||||
Other financial liabilities – non-current (4) |
( |
( |
( |
|||||||||||||||||
Total |
( |
( |
Carrying Amount |
Fair Value |
|||||||||||||||||||||||
December 31, 2023 |
Primary Debt Instruments |
Derivative Instruments (Asset) |
Primary Debt Instruments |
Derivative Instruments (Asset) |
||||||||||||||||||||
Commercial paper |
- |
- |
||||||||||||||||||||||
|
( |
( |
||||||||||||||||||||||
(1) |
- |
- |
||||||||||||||||||||||
|
- |
- |
||||||||||||||||||||||
(1) |
- |
- |
||||||||||||||||||||||
|
- |
- |
||||||||||||||||||||||
|
- |
- |
||||||||||||||||||||||
|
- |
- |
||||||||||||||||||||||
Total |
( |
( |
||||||||||||||||||||||
Current portion |
||||||||||||||||||||||||
Long-term portion |
( |
Carrying Amount |
Fair Value |
|||||||||||||||||||||||
December 31, 2022 |
Primary Debt Instruments |
Derivative Instruments (Asset) |
Primary Debt Instruments |
Derivative Instruments (Asset) |
||||||||||||||||||||
Commercial paper |
- |
- |
||||||||||||||||||||||
|
( |
( |
||||||||||||||||||||||
|
- |
- |
||||||||||||||||||||||
(1) |
- |
- |
||||||||||||||||||||||
|
- | - | ||||||||||||||||||||||
(1) |
- | - | ||||||||||||||||||||||
|
- | - | ||||||||||||||||||||||
|
- | - | ||||||||||||||||||||||
|
- |
- |
||||||||||||||||||||||
Total |
( |
( |
||||||||||||||||||||||
Current portion |
||||||||||||||||||||||||
Long-term portion |
( |
Received |
Paid |
Hedged Risk |
Year of Maturity |
Principal Amount | ||||
Cash flow hedges |
||||||||
US$ |
Before Currency Hedging Arrangements |
After Currency Hedging Arrangements |
|||||||||||||||||||
December 31, |
December 31, |
|||||||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||||||
Canadian dollar |
||||||||||||||||||||
U.S. dollar |
||||||||||||||||||||
Year ended December 31, |
||||||||||||||||||||
2023 |
2022 |
|||||||||||||||||||
|
|
Fair Value (Loss) Gain Through Earnings |
Fair Value Loss Through Equity |
Fair Value Gain (Loss) Through Earnings |
Fair Value Gain Through Equity |
|||||||||||||||
Foreign exchange contracts |
( |
- | ||||||||||||||||||
Hedging instruments: |
||||||||||||||||||||
Cross currency interest rate swaps – cash flow hedges |
( |
( |
||||||||||||||||||
Forward interest rate swaps – cash flow hedges |
- | |||||||||||||||||||
( |
( |
Increase (decrease) impact on earnings from: |
£ |
€ |
C$ |
Other Currencies |
Total |
|||||||||||||||
Financial assets and liabilities (1) |
||||||||||||||||||||
Receivables under indemnification arrangement |
( |
( |
( |
( |
||||||||||||||||
Non-permanent intercompany loans |
||||||||||||||||||||
Indirect investment in LSEG shares |
( |
( |
||||||||||||||||||
Foreign exchange contracts (2) |
||||||||||||||||||||
Total impact on earnings |
· |
Cash investments are placed with high-quality financial institutions with limited exposure to any one institution. As of December 31, 2023, approximately “A-“ or higher by at least one of the major credit rating agencies; |
· |
Counterparties to derivative contracts are major investment-grade international financial institutions and exposure to any single counterparty is monitored and limited; and |
· |
The Company assesses the creditworthiness of its customers. |
December 31, 2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
Thereafter |
Total |
|||||||||||||||||||||
Commercial paper |
||||||||||||||||||||||||||||
Notes/debentures (1) |
||||||||||||||||||||||||||||
Interest payable (1) |
||||||||||||||||||||||||||||
Debt-related hedges outflows (2) |
||||||||||||||||||||||||||||
Debt-related hedges inflows (1) |
( |
( |
( |
|||||||||||||||||||||||||
Trade payables |
||||||||||||||||||||||||||||
Accruals |
||||||||||||||||||||||||||||
Lease liabilities |
||||||||||||||||||||||||||||
Foreign exchange contracts outflows (3) |
||||||||||||||||||||||||||||
Foreign exchange contracts inflows (4) |
( |
( |
||||||||||||||||||||||||||
Other financial liabilities |
||||||||||||||||||||||||||||
Total |
December 31, 2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
Thereafter |
Total |
|||||||||||||||||||||
Commercial paper |
||||||||||||||||||||||||||||
Notes/debentures (1) |
||||||||||||||||||||||||||||
Interest payable (1) |
||||||||||||||||||||||||||||
Debt-related hedges outflows (2) |
||||||||||||||||||||||||||||
Debt-related hedges inflows (1) |
( |
( |
( |
( |
||||||||||||||||||||||||
Trade payables |
||||||||||||||||||||||||||||
Accruals |
||||||||||||||||||||||||||||
Lease liabilities |
| |||||||||||||||||||||||||||
Foreign exchange contracts outflows (3) |
||||||||||||||||||||||||||||
Foreign exchange contracts inflows (4) |
( |
( |
( |
|||||||||||||||||||||||||
Other financial liabilities |
||||||||||||||||||||||||||||
Total |
Moody’s |
S&P Global Ratings |
DBRS Limited |
Fitch | |||||
Long-term debt |
||||||||
Commercial paper |
||||||||
Trend/Outlook |
December 31, |
||||||||||||
2023 |
2022 |
|||||||||||
Current indebtedness |
||||||||||||
Long-term indebtedness |
||||||||||||
Total debt |
||||||||||||
Swaps |
( |
( |
||||||||||
Total debt after swaps |
||||||||||||
Remove fair value adjustments for hedges (1) |
||||||||||||
Total debt after currency hedging arrangements |
||||||||||||
Remove transaction costs, premiums or discounts included in the carrying value of debt |
||||||||||||
Add: Lease liabilities (current and non-current) |
||||||||||||
Less: cash and cash equivalents |
( |
( |
||||||||||
Net debt |
Notes and Debentures |
Commercial Paper |
Derivative Instruments Liabilities (Assets) |
Lease Liabilities |
Total Liabilities From Financing Activities |
||||||||||||||||
December 31, 2021 |
( |
|||||||||||||||||||
Proceeds from commercial paper |
- |
- |
- |
|||||||||||||||||
Repayments of commercial paper |
- |
( |
- |
- |
( |
|||||||||||||||
Payments of lease principal |
- |
- |
- |
( |
( |
|||||||||||||||
Additional leases |
- |
- |
- |
|||||||||||||||||
Foreign exchange movements |
( |
- |
( |
( |
||||||||||||||||
Other, net (1) |
( |
( |
( |
|||||||||||||||||
December 31, 2022 |
( |
|||||||||||||||||||
Repayments of debt |
( |
( |
||||||||||||||||||
Proceeds from commercial paper |
||||||||||||||||||||
Repayments of commercial paper |
( |
( |
||||||||||||||||||
Payments of lease principal |
( |
( |
||||||||||||||||||
Additional leases |
||||||||||||||||||||
Foreign exchange movements |
( |
|||||||||||||||||||
Other, net (1) |
||||||||||||||||||||
December 31, 2023 |
( |
· Level 1 |
quoted prices (unadjusted) in active markets for identical assets or liabilities; | |
· Level 2 |
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and | |
· Level 3 |
inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). |
December 31, 2023 |
Total |
|||||||||||||||||
Assets | Level 1 |
Level 2 |
Level 3 |
Balance |
||||||||||||||
Money market accounts |
||||||||||||||||||
Other receivables (1) |
||||||||||||||||||
Foreign exchange contracts (2) |
||||||||||||||||||
Financial assets at fair value through earnings |
||||||||||||||||||
Financial assets at fair value through other comprehensive income (3) |
||||||||||||||||||
Derivatives used for hedging (4) |
||||||||||||||||||
Total assets |
||||||||||||||||||
Liabilities |
||||||||||||||||||
Foreign exchange contracts (2) |
( |
( |
||||||||||||||||
Contingent consideration (5) |
( |
( |
||||||||||||||||
Financial liabilities at fair value through earnings |
( |
( |
( |
|||||||||||||||
Total liabilities |
( |
( |
( |
|||||||||||||||
December 31, 2022 |
Total |
|||||||||||||||||
Assets | Level 1 |
Level 2 |
Level 3 |
Balance |
||||||||||||||
Money market accounts |
||||||||||||||||||
Other receivables (1) |
||||||||||||||||||
Foreign exchange contracts (2) |
||||||||||||||||||
Financial assets at fair value through earnings |
||||||||||||||||||
Financial assets at fair value through other comprehensive income (3) |
||||||||||||||||||
Derivatives used for hedging (4) |
||||||||||||||||||
Total assets |
||||||||||||||||||
Liabilities |
||||||||||||||||||
Foreign exchange contracts (2) |
( |
( |
||||||||||||||||
Contingent consideration (5) |
( |
( |
||||||||||||||||
Financial liabilities at fair value through earnings |
( |
( |
( |
|||||||||||||||
Total liabilities |
( |
( |
( |
· |
Quoted market prices or dealer quotes for similar instruments; |
· |
The fair value of cross-currency interest rate swaps and foreign exchange contracts are calculated as the present value of the estimated future cash flows based on observable yield curves; |
· |
The fair value of other receivables considers estimated future cash flows, current market interest rates and non-performance risk; and |
· |
The fair value of contingent consideration is calculated based on estimates of future revenue performance. |
Financial assets |
Gross Financial Assets |
Gross Financial Liabilities Netted Against Assets |
Net Financial Assets in the Consolidated Statement of Financial Position |
Related Financial Liabilities Not Netted |
Net Amount | |||||
Derivative financial assets |
(1) |
|||||||||
Cash and cash equivalents |
(2) |
|||||||||
December 31, 2023 |
||||||||||
Derivative financial assets |
- | (1) |
- | |||||||
Cash and cash equivalents |
- | (2) |
- | |||||||
December 31, 2022 |
- | - | ||||||||
Financial liabilities |
Gross Financial Liabilities |
Gross Financial Assets Netted Against Liabilities |
Net Financial Liabilities in the Consolidated Statement of Financial Position |
Related Financial Assets Not Netted |
Net Amount | |||||
Derivative financial liabilities |
(3) |
|||||||||
December 31, 2023 |
||||||||||
Derivative financial liabilities |
- |
(3) |
- |
|||||||
December 31, 2022 |
- |
- |
December 31, | |||||||
2023 |
2022 |
||||||
Net defined benefit plan surpluses (see note 27) |
|||||||
Cash surrender value of life insurance policies |
|||||||
Deferred commissions |
|||||||
Other non-current assets(1) |
|||||||
Total other non-current assets |
December 31, | ||||
2023 |
2022 | |||
Trade payables |
||||
Accruals |
||||
Provisions (see note 23) |
||||
Other current liabilities |
||||
Total payables, accruals and provisions |
December 31, | ||||
2023 |
2022 | |||
Net defined benefit plan obligations (see note 27) |
||||
Deferred compensation and employee incentives |
||||
Provisions |
||||
Other non-current liabilities |
||||
Total provisions and other non-current liabilities |
Employee- Related |
Facilities- Related |
Other |
Total |
|||||||||||||
Balance as of December 31, 2021 |
||||||||||||||||
Charges |
||||||||||||||||
Utilization |
( |
( |
( |
( |
||||||||||||
Translation and other, net |
( |
( |
||||||||||||||
Balance as of December 31, 2022 |
||||||||||||||||
Less: short-term provisions |
||||||||||||||||
Long-term provisions |
||||||||||||||||
Balance as of December 31, 2022 |
||||||||||||||||
Charges (releases) |
( |
|||||||||||||||
Utilization |
( |
( |
( |
( |
||||||||||||
Translation and other, net |
( |
( |
||||||||||||||
Balance as of December 31, 2023 |
||||||||||||||||
Less: short-term provisions |
||||||||||||||||
Long-term provisions |
Deferred tax liabilities |
Goodwill and Other Identifiable Intangible Assets |
Equity Method Investments |
Other |
Total |
||||||||||||
December 31, 2021 |
||||||||||||||||
Acquisitions |
- | - | ||||||||||||||
Benefit to income statement - continuing operations |
( |
( |
( |
( |
||||||||||||
Translation and other, net |
- | |||||||||||||||
December 31, 2022 |
||||||||||||||||
Acquisitions |
- |
|||||||||||||||
(Benefit) expense to income statement - continuing operations |
( |
( |
( |
|||||||||||||
Translation and other, net |
( |
( |
||||||||||||||
December 31, 2023 |
Deferred tax assets |
Tax Losses and Other Attributes |
Goodwill and Other Identifiable Intangible Assets |
Employee Benefits and Compensation |
Other |
Total |
|||||||||||||
December 31, 2021 |
||||||||||||||||||
Acquisitions |
- | - | - | |||||||||||||||
Expense to income statement - continuing operations |
( |
( |
( |
( |
( |
|||||||||||||
Benefit to other comprehensive income |
- | - | - | |||||||||||||||
Expense to equity |
- | - | ( |
- | ( |
|||||||||||||
Translation and other, net |
( |
( |
||||||||||||||||
December 31, 2022 |
||||||||||||||||||
Acquisitions |
- |
- |
||||||||||||||||
Benefit (expense) to income statement - continuing operations |
- |
( |
||||||||||||||||
Expense to equity |
- |
- |
( |
- |
( |
|||||||||||||
Translation and other, net |
( |
- |
||||||||||||||||
December 31, 2023 |
||||||||||||||||||
Net deferred tax asset as of December 31, 2022 |
||||||||||||||||||
Net deferred tax asset as of December 31, 2023 |
December 31, |
||||||||
2023 |
2022 |
|||||||
Deferred tax liabilities |
||||||||
Deferred tax liabilities to be recovered after more than 12 months |
||||||||
Deferred tax liabilities to be recovered within 12 months |
||||||||
Total deferred tax liabilities |
||||||||
Deferred tax assets |
||||||||
Deferred tax assets to be recovered after more than 12 months |
||||||||
Deferred tax assets to be recovered within 12 months |
||||||||
Total deferred tax assets |
||||||||
Net deferred tax asset |
Carry Forward Loss/ Tax Attributes |
Tax Value |
Unrecognized Deferred Tax Assets |
Net Deferred Tax Assets |
|||||||||||||
Canadian net operating losses |
( |
|||||||||||||||
Net operating losses - other jurisdictions |
( |
|||||||||||||||
Capital losses |
( |
|||||||||||||||
Investment in subsidiaries |
( |
|||||||||||||||
Other deductible temporary differences |
( |
|||||||||||||||
U.S. state net operating losses (1) |
n/m |
( |
||||||||||||||
Other attributes and credits (2) |
n/a |
( |
||||||||||||||
Total |
( |
Number of Common Shares |
Stated Capital |
Series II, Cumulative Redeemable Preference Share Capital |
Contributed Surplus |
Total Capital |
||||||||||||||||
Balance, December 31, 2021 |
||||||||||||||||||||
Shares issued under DRIP |
- | - | ||||||||||||||||||
Stock compensation plans (1) |
- | ( |
||||||||||||||||||
Repurchases of common shares (2) |
( |
( |
- | - | ( |
|||||||||||||||
Balance, December 31, 2022 |
||||||||||||||||||||
Return of capital |
( |
( |
- |
( |
||||||||||||||||
Shares issued under DRIP |
- |
- |
||||||||||||||||||
Stock compensation plans (1) |
- |
( |
||||||||||||||||||
Repurchases of common shares (2) |
( |
( |
- |
- |
( |
|||||||||||||||
Balance, December 31, 2023 |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Dividends declared per common share |
$ |
$ | ||||||
Dividends declared |
||||||||
Dividends reinvested |
( |
( |
||||||
Dividends paid |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Share repurchases (millions of U.S. dollars) |
||||||||
Shares repurchased (number in millions) |
||||||||
Share repurchases - average price per share in U.S. dollars |
$ |
$ |
Equity-settled | ||||||
Type of award |
Vesting period |
Fair Value Measure |
Compensation expense based on: | |||
Stock options |
Black-Scholes option pricing model |
Fair value on business day prior to grant date | ||||
TRSUs |
Closing common share price |
Fair value on business day prior to grant date | ||||
PRSUs |
Closing common share price |
Fair value on business day prior to grant date |
Year ended December 31, |
||||||||
2023 |
2022 |
|||||||
Weighted-average fair value ($) |
||||||||
Weighted-average of key assumptions: |
||||||||
Share price ($) |
||||||||
Exercise price ($) |
||||||||
Risk-free interest rate |
||||||||
Dividend yield |
||||||||
Volatility factor |
||||||||
Expected life (in years) |
Stock Options |
TRSUs |
PRSUs |
Total |
Weighted- Average Exercise Price($) (1) |
||||||||||||||||
Awards outstanding (in thousands): |
||||||||||||||||||||
Outstanding as of December 31, 2021 |
||||||||||||||||||||
Granted |
||||||||||||||||||||
Exercised |
( |
( |
( |
( |
||||||||||||||||
Forfeited |
( |
( |
( |
( |
||||||||||||||||
Outstanding as of December 31, 2022 |
||||||||||||||||||||
Exercisable as of December 31, 2022 |
- | - | ||||||||||||||||||
Granted |
||||||||||||||||||||
Exercised |
( |
( |
( |
( |
||||||||||||||||
Forfeited |
( |
( |
( |
( |
||||||||||||||||
Outstanding as of December 31, 2023 |
||||||||||||||||||||
Exercisable as of December 31, 2023 |
- |
- |
Stock Options |
TRSUs |
PRSUs |
ESPP |
Total | ||||||
December 31, 2023 |
||||||||||
December 31, 2022 |
Range of exercise prices (1) |
Number Outstanding (in thousands) |
Weighted-Average Remaining Contractual Life (years) |
Weighted-Average Exercise Price for Awards Outstanding |
Number Exercisable (in thousands) |
Weighted-Average Exercise Price for Awards Exercisable | |||||
35.01 - 40.00 |
$ |
$ | ||||||||
50.01 - 55.00 |
$ |
$ | ||||||||
75.01 - 80.00 |
$ |
$ | ||||||||
85.01 - 90.00 |
$ |
$ | ||||||||
100.01 - 105.00 |
$ |
$ | ||||||||
120.01 - 125.00 |
$ |
$ | ||||||||
Total |
Pension Plans (1) |
OPEB (1) |
Total (1) |
||||||||||||||||||||||
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||||||
As of January 1 |
( |
( |
( |
( |
( |
( |
||||||||||||||||||
Plan expense recognized in income statement: |
( |
( |
( |
( |
( |
( |
||||||||||||||||||
Actuarial (losses) gains |
( |
( |
( |
|||||||||||||||||||||
Exchange differences |
( |
( |
||||||||||||||||||||||
Contributions paid |
||||||||||||||||||||||||
Net plan obligations as of December 31 |
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
| ||||||
Net plan surpluses recognized in non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net plan obligations recognized in non-current liabilities |
|
( |
|
|
( |
|
Funded |
Unfunded (1) |
OPEB |
Total |
|||||||||||||||||||||||||||||
As of December 31, |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||||||||||
Present value of plan obligations |
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
| ||||||||
Fair value of plan assets |
|
|
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
| ||||||||
Net plan obligations |
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
| ||||||||
Net plan surpluses |
|
|
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
| ||||||||
Net plan obligations |
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
|
( |
|
Present Value of Defined Benefit Obligations |
Funded |
Unfunded |
OPEB |
Total |
||||||||||||||||||||||||||||
As of December 31, |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||||||||||
Opening defined benefit obligation |
( |
( |
( |
( |
( |
( |
( |
( |
||||||||||||||||||||||||
Current service cost |
( |
( |
( |
( |
( |
( |
( |
( |
||||||||||||||||||||||||
Administration fees |
( |
( |
- |
( |
- |
- | ( |
( |
||||||||||||||||||||||||
Interest cost |
( |
( |
( |
( |
( |
( |
( |
( |
||||||||||||||||||||||||
Actuarial (losses) gains from changes in financial assumptions (1) |
( |
( |
( |
|||||||||||||||||||||||||||||
Actuarial gains (losses) from changes in demographic assumptions |
( |
- |
- | - | ( |
|||||||||||||||||||||||||||
Experience losses |
( |
( |
( |
( |
( |
- | ( |
( |
||||||||||||||||||||||||
Contributions by employees |
( |
( |
- |
- | ( |
( |
( |
( |
||||||||||||||||||||||||
Benefits paid |
||||||||||||||||||||||||||||||||
Administration fees disbursements |
- |
- | - |
- | ||||||||||||||||||||||||||||
Exchange differences |
- |
- |
- | - | - |
|||||||||||||||||||||||||||
Other |
( |
( |
( |
- | - |
- | ( |
( |
||||||||||||||||||||||||
Closing defined benefit obligation |
( |
( |
( |
( |
( |
( |
( |
( |
As of December 31, |
2023 |
2022 | As of December 31, |
2023 |
2022 | |||||||||||||||
Active employees |
U.S. |
|||||||||||||||||||
Deferred |
U.K. |
|||||||||||||||||||
Retirees |
Rest of world |
|||||||||||||||||||
Closing defined benefit obligation |
Fair Value of Plan Assets |
Funded |
Unfunded |
OPEB |
Total |
||||||||||||||||||||||||||||
As of December 31, |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||||||||||
Opening fair value of plan assets |
- |
- | - |
- | ||||||||||||||||||||||||||||
Interest income (1) |
- |
- | - |
- | ||||||||||||||||||||||||||||
Return on plan assets excluding amounts included in interest income (2) |
( |
- |
- | - |
- | ( |
||||||||||||||||||||||||||
Contributions by employer |
||||||||||||||||||||||||||||||||
Contributions by employees |
- |
- | ||||||||||||||||||||||||||||||
Benefits paid |
( |
( |
( |
( |
( |
( |
( |
( |
||||||||||||||||||||||||
Administration fees disbursements |
( |
( |
- |
- | - |
- | ( |
( |
||||||||||||||||||||||||
Exchange differences |
( |
- |
- | - |
- | ( |
||||||||||||||||||||||||||
Other |
- |
- | - |
- | ||||||||||||||||||||||||||||
Closing fair value of plan assets |
- |
- |
- |
- |
Quoted (1) |
Unquoted |
Total |
||||||||||||||||||||||
As of December 31, |
2023 |
2022 ) |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||||
Equities (2) |
- |
|||||||||||||||||||||||
Bonds (3) |
||||||||||||||||||||||||
Corporate |
- |
- | ||||||||||||||||||||||
Government |
- |
- | ||||||||||||||||||||||
Other fixed income |
- |
- | ||||||||||||||||||||||
Total Bonds |
- |
- | ||||||||||||||||||||||
Multi-asset (4) |
- |
- | ||||||||||||||||||||||
Derivatives |
- |
- | ||||||||||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||||||
Other |
||||||||||||||||||||||||
Total |
Funded |
Unfunded |
OPEB | ||||||||||
As of December 31, |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 | ||||||
Discount rate |
||||||||||||
Inflation assumption |
||||||||||||
Rate of increase in pension payments |
||||||||||||
Medical cost trend |
- |
· |
TRGP: Pri-2012/MP-2021 |
· |
TTC plan: SAPS S3 Light Tables with allowances for plan demographic specifics and longevity improvements. |
December 31, 2023 |
Life Expectation in Years | |||||
Male |
Female | |||||
Employee retiring as of December 31, 2023 at age 65 |
||||||
Employee age 40 as of December 31, 2023 retiring at age 65 |
December 31, 2022 |
Life Expectation in Years | |||||
Male |
Female | |||||
Employee retiring as of December 31, 2022 at age 65 |
||||||
Employee age 40 as of December 31, 2022 retiring at age 65 |
· |
Investment risk: |
· |
Interest rate risk: |
· |
Inflation risk: |
· |
Currency risk: |
· |
Liquidity risk: |
· |
Mortality risk: |
Income Statement (1) |
Funded |
Unfunded |
OPEB |
Total | ||||||||||||
Year ended December 31, |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 | ||||||||
Current service cost |
||||||||||||||||
Net interest cost |
- | |||||||||||||||
Administration fees |
- |
- |
- | |||||||||||||
Defined benefit plan expense |
Other Comprehensive Loss (Income) |
Funded |
Unfunded |
OPEB |
Total | ||||||||||||
Year ended December 31, |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 | ||||||||
Remeasurement losses (gains) on defined benefit obligation: |
||||||||||||||||
Due to financial assumption changes |
( |
( |
( |
( |
( | |||||||||||
Due to demographic assumption changes |
( |
- |
- | ( |
- | ( |
||||||||||
Due to experience |
- | |||||||||||||||
Return on plan assets greater than discount rate |
( |
- |
- | - |
- | ( |
||||||||||
Total recognized in other comprehensive loss (income) before taxation |
- |
( |
( |
( |
Accumulated Comprehensive Loss (Income) |
Funded |
Unfunded |
OPEB |
Total | ||||||||||||
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 | |||||||||
Balance of accumulated comprehensive loss (income) as of January 1 |
( |
( |
||||||||||||||
Net actuarial losses (gains) recognized in the year |
- |
( |
( |
( |
||||||||||||
Total accumulated comprehensive loss (income) as of December 31, |
( |
( |
Land, Buildings and Building Improvements |
Computer Equipment |
Furniture, Fixtures and Other Equipment |
Total |
|||||||||||||
Year ended December 31, 2023 |
||||||||||||||||
Carrying amount |
||||||||||||||||
Depreciation |
||||||||||||||||
Year ended December 31, 2022 |
||||||||||||||||
Carrying amount |
||||||||||||||||
Depreciation |
December 31, |
||||||||
2023 |
2022 |
|||||||
Within 1 year |
||||||||
Between 1 and 2 years |
||||||||
Between 2 and 3 years |
||||||||
Between 3 and 4 years |
||||||||
Between 4 and 5 years |
||||||||
Later than 5 years |
||||||||
Total undiscounted cash flows |
||||||||
Lease liabilities included in the consolidated statement of financial position |
||||||||
Current |
||||||||
Non-current |
Year ended December 31, | ||||
2023 |
2022 | |||
Non-cash employee benefit charges |
||||
Net losses (gains) on foreign exchange and derivative financial instruments |
( | |||
Fair value adjustments (see note 5) |
( | |||
Other |
( |
|||
( |
Year ended December 31, | ||||
2023 |
2022 | |||
Trade and other receivables |
( |
( | ||
Prepaid expenses and other current assets |
( | |||
Other financial assets |
- |
|||
Payables, accruals and provisions |
( |
( | ||
Deferred revenue |
||||
Other financial liabilities |
- |
( | ||
Income taxes (1) |
||||
Other |
( |
( | ||
Year ended December 31, | ||||
2023 |
2022 | |||
Operating activities - continuing operations |
( |
( | ||
Investing activities - continuing operations |
( |
( | ||
Investing activities - discontinued operations (1) |
( |
( | ||
Total income taxes paid |
( |
( |
Year ended December 31, | ||||||||
2023 |
2022 | |||||||
Number of Transactions |
Cash Consideration |
Number of Transactions |
Cash Consideration | |||||
Businesses acquired |
||||||||
Less: Cash acquired |
( |
( | ||||||
Businesses acquired, net of cash |
||||||||
Investments in businesses |
||||||||
Asset acquisitions (1) |
- |
- |
||||||
Deferred and contingent consideration payments |
- |
- | ||||||
Date |
Company |
Acquiring Segments |
Description | |||
December 31, | ||||||||||
2023 |
2022 (1) | |||||||||
Sureprep LLC |
Casetext, Inc. |
Other |
Total |
Total | ||||||
Cash and cash equivalents |
||||||||||
Trade receivables |
||||||||||
Prepaid expenses and other current assets |
||||||||||
Current assets |
||||||||||
Property and equipment |
- |
- |
- | |||||||
Computer software |
||||||||||
Other identifiable intangible assets |
||||||||||
Other non-current assets |
- |
- |
- | |||||||
Total assets |
||||||||||
Payables and accruals |
( |
( |
( |
( |
( | |||||
Deferred revenue |
( |
( |
( |
( |
( | |||||
Current liabilities |
( |
( |
( |
( |
( | |||||
Provisions and other non-current liabilities |
( |
- |
( |
( |
- | |||||
Other financial liabilities |
- |
- |
- |
- |
( | |||||
Deferred tax |
( |
( |
( |
( |
( | |||||
Total liabilities |
( |
( |
( |
( |
( | |||||
Net assets acquired |
||||||||||
Goodwill |
||||||||||
Total |
||||||||||
Businesses acquired, net of cash |
December 31, |
||||||
2023 |
2022 |
|||||
Within 1 year |
||||||
Between 1 and 2 years |
||||||
Between 2 and 3 years |
||||||
Between 3 and 4 years |
||||||
Between 4 and 5 years |
||||||
Later than 5 years |
- |
|||||
Year ended December 31, | ||||
2023 |
2022 | |||
Salaries and other benefits |
||||
Share-based payments |
||||
Total compensation |
Name |
Age |
Title | ||
Steve Hasker |
54 |
President & Chief Executive Officer | ||
Michael Eastwood |
57 |
Chief Financial Officer | ||
Kirsty Roth |
48 |
Chief Operations & Technology Officer | ||
David Wong |
39 |
Chief Product Officer | ||
Ragunath Ramanathan |
52 |
President, Legal Professionals | ||
Elizabeth Beastrom |
56 |
President, Tax & Accounting Professionals | ||
Laura A. Clayton |
63 |
President, Corporates | ||
Paul Bascobert |
59 |
President, Reuters News | ||
Mary Alice Vuicic |
56 |
Chief People Officer | ||
Norie Campbell |
52 |
Chief Legal Officer & Company Secretary |
Steve Hasker non-executive director of Appen Limited. He is a member of the Australia and New Zealand Institute of Chartered Accountants. Steve is based in Toronto, Ontario, Canada. | ||
Michael Eastwood | ||
Kirsty Roth |
David Wong | ||
Ragunath (Raghu) Ramanathan | ||
Elizabeth Beastrom | ||
Laura A. Clayton (professionally known as Laura Clayton McDonnell) | ||
Paul Bascobert |
Mary Alice Vuicic | ||
Norie Campbell |
Committee Memberships |
||||||||||||
Name |
Age |
Audit |
Corporate Governance |
Human Resources |
Risk |
Director Since | ||||||
David Thomson, Chairman |
66 | 1988 | ||||||||||
Steve Hasker |
54 | 2020 | ||||||||||
Kirk E. Arnold |
64 | • | • | Chair | 2020 | |||||||
W. Edmund Clark, C.M. |
76 | • | Chair | 2015 | ||||||||
LaVerne Council |
62 | • | • | 2022 | ||||||||
Michael E. Daniels |
69 | • | Chair | • | • | 2014 | ||||||
Kirk Koenigsbauer |
56 | • | • | 2020 | ||||||||
Deanna Oppenheimer |
66 | • | • | 2020 | ||||||||
Simon Paris |
54 | • | • | • | 2020 | |||||||
Kim M. Rivera |
55 | • | • | 2019 | ||||||||
Barry Salzberg |
70 | Chair | • | • | 2015 | |||||||
Peter J. Thomson |
58 | • | 1995 | |||||||||
Beth Wilson |
55 | • | • | 2022 |
David Thomson | ||
Steve Hasker non-executive director of Appen Limited. He is a member of the Australia and New Zealand Institute of Chartered Accountants. Steve is based in Toronto, Ontario, Canada. |
Kirk E. Arnold non-executive director of IngersollRand plc and Trane Technologies. Kirk also serves on the boards of several private companies. In addition, she is a Senior Lecturer at MIT Sloan School of Management and an advisor to the Center for MIT Entrepreneurship. Kirk received a bachelor’s degree from Dartmouth College. Kirk resides in Kennebunk, Maine, United States. | ||
W. Edmund Clark, C.M. non-executive director of Spin Master Corp. Ed has a BA from the University of Toronto, and an MA and Doctorate in Economics from Harvard University. Ed has also received honorary degrees from Mount Allison University, Queen’s University, Western University and the University of Toronto. In 2010, he was made an Officer of the Order of Canada, one of the country’s highest distinctions. Ed resides in Toronto, Ontario, Canada. | ||
LaVerne Council non-executive director of CONMED Corporation and Concentrix Corporation. She received her Master of Business Administration from Illinois State University and her Bachelor of Business Administration in Computer Science from Western Illinois University. LaVerne also holds an honorary Doctorate of Business Administration from Drexel University. LaVerne resides in Great Falls, Virginia, United States. | ||
Michael E. Daniels non-executive director of SS&C Technologies Holdings, Inc. and Johnson Controls International plc. Corporation. Mike has a bachelor’s degree in political science from Holy Cross College. Mike resides in Hilton Head, South Carolina, United States. | ||
Kirk Koenigsbauer |
Deanna Oppenheimer non-executive chair of the board of directors of InterContinental Hotels Group PLC and a non-executive director of Slalom and is the founder of BoardReady, a not-for-profit, | ||
Simon Paris | ||
Kim M. Rivera | ||
Barry Salzberg |
Peter J. Thomson | ||
Beth Wilson non-executive director at IGM Financial Inc. and Power Corporation of Canada. Beth has a BComm from the University of Toronto and is a CPA. Beth resides in Toronto, Ontario, Canada. |
Audit Committee Member |
Education/Experience | |
Barry Salzberg (Chair) |
• Former Global Chief Executive Officer of Deloitte Touche Tohmatsu Limited• Former Professor at Columbia Business School• Degree in accounting from Brooklyn College, a JD from Brooklyn Law School and an LLM in tax from the New York University | |
LaVerne Council |
• MBA and bachelor’s degree in business administration• Member of CONMED Corporation and Concentrix Corporation boards of directors and audit committees | |
Michael E. Daniels |
• Over 25 years of executive experience at IBM• Former member of the Tyco International Ltd. audit committee• Member of SS&C Technologies Holdings, Inc. and Johnson Controls International plc boards of directors | |
Deanna Oppenheimer |
• Former Vice Chair of Global Retail Banking of Barclays PLC• Former President of Consumer Banking of Washington Mutual, Inc.• Former member of AXA Global Insurance audit committee• Former member of NCR Corporation audit committee | |
Simon Paris |
• Chief Executive Officer of Finastra• Chair of the World Trade Board• Member of Everbridge, Inc. board of directors | |
Kim M. Rivera |
• Chief Legal and Business Affairs Officer of One Trust, LLC• Former President, Strategy and Business Management and Chief Legal Officer of HP Inc.• Supported audit committees of two publicly-traded Fortune 500 companies | |
Beth Wilson |
• Chair of the Chartered Professional Accountants of Canada• Audit Committee Chair at The Hospital for Sick Children and Woodgreen Foundation• Member of Power Corporation of Canada and IGM Financial Inc. audit committees• Bachelor of Commerce degree from University of Toronto and a Certified Professional Accountant in good standing with the Chartered Professional Accountants of Ontario• Former Chief Executive Officer of Dentons Canada LLP• Former audit partner and Managing Partner at KPMG |
(in millions of U.S. dollars) |
2023 |
2022 |
||||||
Audit fees |
$ | 12.8 | $ | 11.9 | ||||
Audit-related fees |
1.0 | 2.0 | ||||||
Tax fees |
1.4 | 1.3 | ||||||
All other fees |
– | – | ||||||
Total |
$ |
15.2 |
$ |
15.2 |
· |
The policy gives detailed guidance to management as to the specific types of services that have been pre-approved by the Audit Committee. |
· |
The policy requires the Audit Committee’s specific pre-approval of all other permitted types of services that have not already been pre-approved. |
· |
The Audit Committee’s charter allows the Audit Committee to delegate to one or more members the authority to evaluate and approve engagements in the event that the need arises for approval between Audit Committee meetings. Pursuant to this charter provision, the Audit Committee has delegated this authority to its Chair. If the Chair approves any such engagements, he must report his approval decisions to the full Audit Committee at its next meeting. |
· |
For the year ended December 31, 2023, none of the fees of Thomson Reuters described above made use of the de minimis exception to pre-approval provisions as provided for by Rule 2-01(c)(7)(i)(C) of SEC Regulation S-X and Section 2.4 of the Canadian Securities Administrators’ Multilateral Instrument 52-110 (Audit Committees). |
· |
Corporate governance, including the effectiveness of our Board; |
· |
Appointment of the Chief Executive Officer and other members of senior management and related succession planning; |
· |
Development of the long-term business strategy of Thomson Reuters and assessment of its implementation; and |
· |
Capital strategy. |
Thomson Reuters’ corporate governance practices include the following, which we believe are best practices for a Canadian public company with a controlling shareholder: · day-to-day · · · · · · |
· |
The roles and responsibilities of the Chairman (David Thomson) and the CEO (Steve Hasker) are separate; |
· |
We have a Lead Independent Director (Michael E. Daniels); and |
· |
The Audit Committee is comprised entirely of independent directors (as required by applicable law) and the Corporate Governance Committee, Human Resources Committee and Risk Committee each have a majority of independent directors. |
Director Independence | ||||||||
Name of Director Nominee |
Management |
Independent |
Not Independent |
Reason for Non-Independence | ||||
David Thomson |
✓ |
A Chairman of Woodbridge | ||||||
Steve Hasker |
✓ |
✓ |
President & Chief Executive Officer of Thomson Reuters | |||||
Kirk E. Arnold |
✓ |
|||||||
W. Edmund Clark, C.M. |
✓ |
Advisor to the trustee of the 2003 TIL Settlement and Woodbridge | ||||||
LaVerne Council |
✓ |
|||||||
Michael E. Daniels |
✓ |
|||||||
Kirk Koenigsbauer |
✓ |
|||||||
Deanna Oppenheimer |
✓ |
|||||||
Simon Paris |
✓ |
|||||||
Kim M. Rivera |
✓ |
|||||||
Barry Salzberg |
✓ |
|||||||
Peter J. Thomson |
✓ |
A Chairman of Woodbridge | ||||||
Beth Wilson |
✓ |
|||||||
Total |
1 |
9 |
4 |
· |
Our authorized share capital consisted of an unlimited number of common shares, an unlimited number of preference shares, issuable in series, and a Thomson Reuters Founders Share; and |
· |
We had outstanding 451,363,370 common shares, 6,000,000 Series II preference shares and one Thomson Reuters Founders Share. |
Common Shares (C$) |
Common Shares (US$) |
Preference Shares (C$) |
||||||||||||||||||||||||||||||||||||||||||||||
High |
Low |
Closing |
Trading Volume |
High |
Low |
Closing |
Trading Volume |
High |
Low |
Closing |
Trading Volume |
|||||||||||||||||||||||||||||||||||||
2023 |
||||||||||||||||||||||||||||||||||||||||||||||||
January |
158.99 | 154.46 | 158.28 | 7,531,810 | 118.97 | 114.07 | 118.97 | 9,287,637 | 13.85 | 13.15 | 13.74 | 179,303 | ||||||||||||||||||||||||||||||||||||
February |
167.74 | 154.81 | 165.26 | 7,417,587 | 125.26 | 114.96 | 121.03 | 11,138,231 | 14.00 | 13.50 | 14.00 | 102,383 | ||||||||||||||||||||||||||||||||||||
March |
175.84 | 164.43 | 175.84 | 7,907,228 | 130.12 | 119.74 | 130.12 | 9,770,188 | 14.14 | 13.40 | 13.67 | 53,124 | ||||||||||||||||||||||||||||||||||||
April |
179.73 | 173.60 | 178.16 | 4,469,481 | 132.75 | 129.01 | 131.51 | 5,291,336 | 13.67 | 13.25 | 13.50 | 17,428 | ||||||||||||||||||||||||||||||||||||
May |
179.07 | 160.37 | 172.62 | 8,573,280 | 132.17 | 119.11 | 127.18 | 11,134,585 | 13.50 | 12.92 | 13.00 | 32,810 | ||||||||||||||||||||||||||||||||||||
June |
182.49 | 164.11 | 178.86 | 9,375,175 | 138.13 | 122.77 | 134.94 | 9,775,368 | 13.50 | 12.87 | 13.10 | 85,295 | ||||||||||||||||||||||||||||||||||||
July |
179.24 | 171.64 | 178.00 | 7,046,557 | 135.23 | 129.81 | 135.23 | 8,665,347 | 14.03 | 13.10 | 13.76 | 98,181 | ||||||||||||||||||||||||||||||||||||
August |
182.56 | 171.07 | 173.99 | 6,581,779 | 136.92 | 126.14 | 128.79 | 7,467,248 | 13.85 | 13.25 | 13.30 | 48,988 | ||||||||||||||||||||||||||||||||||||
September |
176.04 | 166.16 | 166.16 | 5,467,432 | 130.23 | 122.32 | 122.32 | 5,047,081 | 13.30 | 12.43 | 12.50 | 34,087 | ||||||||||||||||||||||||||||||||||||
October |
173.57 | 163.51 | 166.11 | 4,939,138 | 127.72 | 117.88 | 119.88 | 6,759,068 | 13.21 | 12.48 | 12.90 | 73,091 | ||||||||||||||||||||||||||||||||||||
November |
192.31 | 169.46 | 189.58 | 7,792,387 | 141.25 | 122.24 | 139.91 | 10,753,789 | 13.21 | 12.82 | 13.06 | 92,423 | ||||||||||||||||||||||||||||||||||||
December |
195.04 | 185.90 | 193.73 | 5,297,108 | 146.22 | 138.85 | 146.22 | 5,283,961 | 13.36 | 13.00 | 13.20 | 49,600 | ||||||||||||||||||||||||||||||||||||
2024 |
||||||||||||||||||||||||||||||||||||||||||||||||
January |
203.14 | 191.42 | 199.61 | 4,755,621 | 151.17 | 143.31 | 148.62 | 5,742,000 | 13.70 | 13.20 | 13.55 | 32,876 | ||||||||||||||||||||||||||||||||||||
February |
216.26 | 200.99 | 214.24 | 5,879,633 | 160.29 | 149.09 | 157.79 | 7,200,462 | 14.15 | 13.38 | 13.95 | 73,791 |
Dividend Currency (Default) |
Dividend Currency (For Electing Holders) | |||
Common shares |
U.S. dollars | Canadian dollars British pounds sterling | ||
DIs (representing common shares) |
British pounds sterling | U.S. dollars Canadian dollars | ||
Series II preference shares |
Canadian dollars | N/A |
Common Shares (US$) |
Series II Preference Shares (C$) | |||||||
2021 |
||||||||
Q1 |
$ | 0.405000 | C$ | 0.105719 | ||||
Q2 |
$ | 0.405000 | C$ | 0.106894 | ||||
Q3 |
$ | 0.405000 | C$ | 0.108068 | ||||
Q4 |
$ | 0.405000 | C$ | 0.108068 | ||||
2022 |
||||||||
Q1 |
$ | 0.445000 | C$ | 0.107445 | ||||
Q2 |
$ | 0.445000 | C$ | 0.140053 | ||||
Q3 |
$ | 0.445000 | C$ | 0.203345 | ||||
Q4 |
$ | 0.445000 | C$ | 0.257159 | ||||
2023 |
||||||||
Q1 |
$ | 0.490000 | C$ | 0.285658 | ||||
Q2 |
$ | 0.490000 | C$ | 0.293631 | ||||
Q3 |
$ | 0.490000 | C$ | 0.315825 | ||||
Q4 |
$ | 0.490000 | C$ | 0.317589 | ||||
2024 |
||||||||
Q1 |
$ | 0.540000 | C$ | * | ||||
*As of the date of this annual report, our company had not yet finalized the final dividend amount for the first quarter 2024 dividend on our Series II preference shares. |
Type of Shares |
Country |
Transfer Agent/Registrar |
Location of Transfer Facilities | |||
Common shares |
Canada | Computershare Trust Company of Canada | Toronto; Montreal; Calgary; and Vancouver | |||
United States | Computershare Trust Company N.A. | Canton, Massachusetts; and Jersey City, New Jersey | ||||
United Kingdom | Computershare Investor Services PLC | Bristol, England | ||||
Depositary interests |
United Kingdom | Computershare Investor Services PLC | Bristol, England | |||
Series II preference shares |
Canada | Computershare Trust Company of Canada | Toronto |
· |
Thomson Reuters and Blackstone’s consortium are entitled to nominate three non-executive LSEG directors for as long as they hold at least 25% of the LSEG shares, two LSEG directors for as long as they hold at least 17.5% but less than 25% of the LSEG shares and one LSEG director for as long as they hold at least 10% but less than 17.5% of the LSEG shares. For so long as Thomson Reuters and Blackstone’s consortium are entitled to nominate three directors, one nominee will be a Thomson Reuters representative. |
· |
The transaction was predominantly tax deferred for our company except for $627 million that was paid in 2021. As permitted under a lock-up exception within a transaction agreement, in March 2021, Thomson Reuters sold approximately 10.1 million of its LSEG shares to generate approximately $994 million of pre-tax total net proceeds. In 2021, we paid $223 million on the sale of these shares and used the remaining after-tax proceeds to pay the $627 million of tax on the LSEG transaction. In 2023, we paid $657 million of income tax on share sales completed in 2023 as described below and the related settlement of foreign exchange contracts. |
· |
A standstill restriction applies to the entity that we jointly own with Blackstone’s consortium under which we (and the underlying investors) have agreed not to, among other matters, acquire further LSEG shares, or make a takeover offer for LSEG for designated time periods. |
· |
During a specified voting commitment period, the entity that we jointly own with Blackstone’s consortium has committed to vote its LSEG shares in line with the LSEG Board’s recommendation, subject to certain exceptions. |
· |
The entity that we jointly own with Blackstone’s consortium has agreed to a customary non-compete for three years after the closing. As of the date hereof, the non-compete has expired. |
· |
Each of LSEG and the entity that we jointly own with Blackstone’s consortium has agreed to a customary non-solicit with respect to certain officers and senior executives of the other party for a period of two years after closing. A separate agreement contains the same customary non-solicit provisions with respect to certain officers and senior executives of LSEG, on the one hand, and each of Thomson Reuters, Blackstone, GIC and CPPIB, on the other hand, for two years after closing. As of the date hereof, the non-solicit agreements have expired. |
· |
That Reuters shall at no time pass into the hands of any one interest, group or faction; |
· |
That the integrity, independence and freedom from bias of Thomson Reuters shall at all times be fully preserved; |
· |
That Reuters shall supply unbiased and reliable news services to newspapers, news agencies, broadcasters and other media subscribers and to businesses, governments, institutions, individuals and others with whom Reuters has or may have contracts; |
· |
That Thomson Reuters shall pay due regard to the many interests which it serves in addition to those of the media; and |
· |
That no effort shall be spared to expand, develop and adapt the news and other services and products of Thomson Reuters so as to maintain its leading position in the international news and information business. |
Name |
Country |
Director Since | ||
Kim Williams (Chairman) |
Australia | 2016 | ||
Ory Okolloh |
Kenya | 2015 | ||
Ronald G. Close |
Canada | 2016 | ||
Linda Robinson |
U.K. | 2019 | ||
Pawel Dangel |
Poland | 2020 | ||
Anne Bouverot |
France | 2021 | ||
Aiko Doden |
Japan | 2021 | ||
Murilo Portugal |
Brazil | 2022 | ||
Nikiwe Bikitsha |
South Africa | 2023 | ||
Yuen Yuen Ang |
U.S. | 2023 | ||
Stephen Toope |
Canada | 2024 | ||
Naushad Forbes |
India | 2024 | ||
Michael Froman |
U.S. | 2024 | ||
Ann Marie Lipinski |
U.S. | 2024 | ||
Sharmila Nebhrajani |
U.K. | 2024 | ||
Tim Gardam |
U.K. | 2024 |
· |
Consent for Sale of Reuters News |
· |
Business of Reuters News |
· |
News Agreement with the Data & Analytics business of LSEG |
· |
Brand License Agreements |
Subsidiary |
Jurisdiction of Incorporation/Formation | |
3276838 Nova Scotia Company |
Nova Scotia, Canada | |
Bedrijfsbeheer TRA B.V. |
The Netherlands | |
Capital Confirmation Inc. |
Delaware, United States | |
Casetext, Inc. |
Delaware, United States | |
HighQ Solutions Limited |
England | |
LiveNote Technologies Limited |
England | |
LN Holdings Limited |
Bermuda | |
Netmaster Solutions Limited |
England | |
Reuters News & Media Inc. |
Delaware, United States | |
Reuters News & Media Limited |
England | |
SurePrep, LLC |
Delaware, United States | |
Thomson Reuters (Australia) Pty Limited |
Australia | |
Thomson Reuters (Legal) Inc. |
Minnesota, United States | |
Thomson Reuters (Professional) Australia Limited |
Australia | |
Thomson Reuters (Professional) UK Limited |
England | |
Thomson Reuters (Tax & Accounting) Inc. |
Texas, United States | |
Thomson Reuters (TRI) Inc. |
Delaware, United States | |
Thomson Reuters America Corporation |
Delaware, United States | |
Thomson Reuters Brasil Conteúdo e Tecnologia Ltda |
Brazil | |
Thomson Reuters Canada Limited |
Ontario, Canada | |
Thomson Reuters Enterprise Centre GmbH |
Switzerland | |
Thomson Reuters Finance S.A. |
Luxembourg | |
Thomson Reuters Group Limited |
England | |
Thomson Reuters Holdco LLC |
Delaware, United States | |
Thomson Reuters Holdings B.V. |
The Netherlands | |
Thomson Reuters Holdings Inc. |
Delaware, United States | |
Thomson Reuters Holdings S.A. |
Luxembourg | |
Thomson Reuters Investment Holdings Limited |
England | |
Thomson Reuters MX Servicios, S.A. de D.V. |
Mexico | |
Thomson Reuters No. 4 Inc. |
Delaware, United States | |
Thomson Reuters No. 5 LLC |
Delaware, United States | |
Thomson Reuters No. 8 LLC |
Delaware, United States | |
Thomson Reuters U.S. LLC |
Delaware, United States | |
TR (2008) Limited |
England | |
TR 2023 LLC |
Delaware, United States | |
TR Finance LLC |
Delaware, United States | |
TR Holdings Limited |
Bermuda | |
TR U.S. Inc. |
Delaware, United States | |
TTC (1994) Limited |
England | |
TTC Holdings Limited |
Bermuda | |
West Publishing Corporation |
Minnesota, United States |
Page/Document | ||||
Item 1. |
Cover Page |
Cover | ||
Item 2. |
Table of Contents |
1 | ||
Item 3. |
Corporate Structure |
|||
3.1 Name, Address And Incorporation |
186 | |||
3.2 Intercorporate Relationships |
195 | |||
Item 4. |
General Development of the Business |
|||
4.1 Three Year History |
3 | |||
4.2 Significant Acquisitions |
11, 41 | |||
Item 5. |
Describe the Business |
|||
5.1 General |
2-18 | |||
5.2 Risk Factors |
19-35 | |||
5.3 Companies With Asset-Backed Securities Outstanding |
N/A | |||
5.4 Companies With Mineral Projects |
N/A | |||
5.5 Companies With Oil And Gas Activities |
N/A | |||
Item 6. |
Dividends |
188-189 | ||
Item 7. |
Description of Capital Structure |
|||
7.1 General Description Of Capital Structure |
186-187 | |||
7.2 Constraints |
N/A | |||
7.3 Ratings |
190 | |||
Item 8. |
Market for Securities |
|||
8.1 Trading Price And Volume |
187 | |||
8.2 Prior Sales |
N/A | |||
Item 9. |
Escrowed Securities and Securities Subject to Contractual Restriction on Transfer |
N/A | ||
Item 10. |
Directors and Officers |
|||
10.1 Name, Occupation And Security Holding |
173-185 | |||
10.2 Cease Trade Orders, Bankruptcies, Penalties Or Sanctions |
197 | |||
10.3 Conflicts Of Interest |
N/A | |||
Item 11. |
Promoters |
N/A | ||
Item 12. |
Legal Proceedings and Regulatory Actions |
|||
12.1 Legal Proceedings |
63 | |||
12.2 Regulatory Actions |
63 |
Page/Document | ||||
Item 13. |
Interest of Management and Others in Material Transactions |
68-69 | ||
Item 14. |
Transfer Agents and Registrars |
189 | ||
Item 15. |
Material Contracts |
191-194 | ||
Item 16. |
Interest of Experts |
|||
16.1 Names Of Experts |
196 | |||
16.2 Interests Of Experts |
196 | |||
Item 17. |
Additional Information |
197 | ||
Item 18. |
Additional Disclosure for Companies Not Sending Information Circulars |
N/A |
Page/Document | ||
Annual Information Form |
See AIF Table | |
Audited Annual Financial Statements |
100-172 | |
Management’s Discussion And Analysis |
36-99 | |
Disclosure Controls And Procedures |
71 | |
Internal Control Over Financial Reporting |
||
a. Changes In Internal Controls Over Financial Reporting |
71 | |
b. Management’s Report On Internal Control Over Financial Reporting |
100 | |
c. Independent Auditor’s Report On Internal Control Over Financial Reporting |
101-102 | |
Notice Pursuant To Regulation BTR |
N/A | |
Audit Committee Financial Expert |
180 | |
Code Of Ethics |
185 | |
Principal Accountant Fees And Services |
181 | |
Off-Balance Sheet Arrangements |
62 | |
Material Cash Requirements |
55,56,62 | |
Identification Of The Audit Committee |
180 | |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
N/A |
THOMSON REUTERS 19 Duncan Street Toronto, Ontario M5H 3H1 Canada tel: +1 647 480 7000 tr.com |