Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2013

Condensed Consolidating Statement of Comprehensive Income

The Nielsen Company B.V.

Condensed Consolidating Statement of Comprehensive Income (Unaudited)

For the three months ended September30, 2013

(IN MILLIONS)	Parent		Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—	$	—		$	675		$	712		$	—		$	1,387
Cost of revenues, exclusive of depreciation and amortization shown separately below		—		—			251			322			—			573
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—		—			212			221			—			433
Depreciation and amortization		—		—			89			28			—			117
Restructuring charges		—		—			12			8			—			20
Operating income		—		—			111			133			—			244
Interest income		—		170			24			4			(197	)		1
Interest expense		—		(74	)		(189	)		(12	)		197			(78	)
Foreign currency exchange transaction income/(expense), net		—		—			2			(9	)		—			(7	)
Other income/(expense), net		—		—			34			(22	)		—			12
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		—		96			(18	)		94			—			172
Provision for income taxes		—		(15	)		30			(55	)		—			(40	)
Equity in net income of subsidiaries		135		56			123			—			(314	)		—
Equity in net income of affiliates		—		—			(1	)		1			—			—
Income from continuing operations		135		137			134			40			(314	)		132
Income/(loss) from discontinued operations, net of tax		—		—			1			(1	)		—			—
Net income		135		137			135			39			(314	)		132
Less net loss attributable to noncontrolling interests		—		—			—			(3	)		—			(3	)
Net income attributable to controlling interest		135		137			135			42			(314	)		135
Total other comprehensive income		53		61			53			110			(222	)		55
Total other comprehensive income attributable to noncontrolling interest		—		—			—			2			—			2
Total other comprehensive income attributable to controlling interest		53		61			53			108			(222	)		53
Total comprehensive loss		188		198			188			149			(536	)		187
Comprehensive loss attributable to noncontrolling interests		—		—			—			(1	)		—			(1	)
Total comprehensive income attributable to controlling interest	$	188	$	198		$	188		$	150		$	(536	)	$	188

The Nielsen Company B.V.

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the three months ended September30, 2012

(IN MILLIONS)	Parent		Issuer			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—	$	—		$	661		$	690		$	—		$	1,351
Cost of revenues, exclusive of depreciation and amortization shown separately below		—		—			243			307			—			550
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—		—			207			221			—			428
Depreciation and amortization		—		—			95			29			—			124
Restructuring charges		—		—			2			2			—			4
Operating income		—		—			114			131			—			245
Interest income		—		174			15			7			(195	)		1
Interest expense		—		(95	)		(180	)		(15	)		195			(95	)
Foreign currency exchange transaction losses, net		—		—			—			1			—			1
Other income/(expense), net		—		—			30			(31	)		—			(1	)
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries and affiliates		—		79			(21	)		93			—			151
Provision for income taxes		—		(15	)		(10	)		(33	)		—			(58	)
Equity in net income of subsidiaries		111		54			123			—			(288	)		—
Equity in net (loss)/income of affiliates		—		—			(2	)		1			—			(1	)
Income from continuing operations		111		118			90			61			(288	)		92
Income/(loss) from discontinued operations, net of tax		—		—			21			(1	)		—			20
Net income		111		118			111			60			(288	)		112
Less net income attributable to noncontrolling interests		—		—			—			1			—			1
Net income attributable to controlling interest		111		118			111			59			(288	)		111
Total other comprehensive income/(loss)		65		67			57			72			(196	)		65
Total comprehensive income/(loss)		176		185			168			132			(484	)		177
Comprehensive income attributable to noncontrolling interests		—		—			—			1			—			1
Total comprehensive income attributable to controlling interests	$	176	$	185		$	168		$	131		$	(484	)	$	176

The Nielsen Company B.V.

Condensed Consolidating Statement of Comprehensive Income (Unaudited)

For the nine months ended September30, 2013

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	2,013		$	2,079		$	—		$	4,092
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			759			973			—			1,732
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			628			679			—			1,307
Depreciation and amortization		—			—			274			90			—			364
Restructuring charges		—			—			31			32			—			63
Operating income		—			—			321			305			—			626
Interest income		—			530			48			13			(589	)		2
Interest expense		—			(224	)		(555	)		(37	)		589			(227	)
Foreign currency exchange transaction gains/(losses), net		—			—			2			(25	)		—			(23	)
Other (expense)/income, net		—			(12	)		98			(86	)		—			—
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		—			294			(86	)		170			—			378
(Provision)/benefit for income taxes		—			(63	)		30			(71	)		—			(104	)
Equity in net income of subsidiaries		600			372			332			—			(1,304	)		—
Equity in net income of affiliates		—			—			—			3			—			3
Income from continuing operations		600			603			276			102			(1,304	)		277
Income/(loss) from discontinued operations, net of tax		—			—			324			(5	)		—			319
Net income		600			603			600			97			(1,304	)		596
Net loss attributable to  noncontrolling interest		—			—			—			(4	)		—			(4	)
Net income attributable to controlling interest		600			603			600			101			(1,304	)		600
Total other comprehensive loss		(46	)		(43	)		(45	)		(25	)		114			(45	)
Total other comprehensive income attributable to noncontrolling interest		—			—			—			1			—			1
Total other comprehensive loss attributable to controlling interest		(46	)		(43	)		(45	)		(26	)		114			(46	)
Total comprehensive income		554			560			555			72			(1,190	)		551
Total comprehensive loss attributable to noncontrolling interest		—			—			—			(3	)		—			(3	)
Total comprehensive income attributable to controlling interest	$	554			560			555		$	75		$	(1,190	)	$	554

The Nielsen Company B.V.

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the nine months ended September30, 2012

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	1,941		$	2,025		$	—		$	3,966
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			722			927			—			1,649
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			621			672			—			1,293
Depreciation and amortization		—			—			282			85			—			367
Restructuring charges		—			—			16			41			—			57
Operating income		—			—			300			300			—			600
Interest income		2			513			47			22			(581	)		3
Interest expense		(1	)		(284	)		(532	)		(48	)		581			(284	)
Foreign currency exchange transaction losses, net		—			—			(1	)		(11	)		—			(12	)
Other (expense)/income, net		—			(6	)		143			(134	)		—			3
Income from continuing operations before income taxes and equity in net (loss)/income of subsidiaries and affiliates		1			223			(43	)		129			—			310
Provision for income taxes		—			(38	)		(15	)		(43	)		—			(96	)
Equity in net income of subsidiaries		249			80			268			—			(597	)		—
Equity in net (loss)/income of affiliates		—			—			(1	)		2			—			1
Income from continuing operations		0			265			209			88			(597	)		215
Income/(loss) from discontinued operations, net of tax		—			—			40			(3	)		—			37
Net income		250			265			249			85			(597	)		252
Less net income attributable to noncontrolling interest		—			—			—			2			—			2
Net income attributable to controlling interest		250			265			249			83			(597	)		250
Total other comprehensive income		64			68			62			40			(170	)		64
Total comprehensive income		314			333			311			125			(767	)		316
Comprehensive income attributable to noncontrolling interest		—			—			—			2			—			2
Total comprehensive income/(loss) attributable to controlling interests	$	314		$	333		$	311		$	123		$	(767	)	$	314

Condensed Consolidating Balance Sheet

The Nielsen Company B.V.

Condensed Consolidating Balance Sheet (Unaudited)

September30, 2013

(IN MILLIONS)	Parent		Issuers		Guarantor		Non- Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	—		—		368		357		—			725
Trade and other receivables, net		—		—		440		698		—			1,138
Prepaid expenses and other current assets		—		12		193		131		—			336
Intercompany receivables		—		203		235		150		(588	)		—
Total current assets		—		215		1,236		1,336		(588	)		2,199
Non-current assets
Property, plant and equipment, net		—		—		322		233		—			555
Goodwill		—		—		5,487		2,199		—			7,686
Other intangible assets, net		—		—		4,426		429		—			4,855
Deferred tax assets		10		—		80		76		—			166
Other non-current assets		—		41		116		85		—			242
Equity investment in subsidiaries		5,618		2,091		7,434		—		(15,143	)		—
Intercompany loans		—		10,434		569		1,265		(12,268	)		—
Total assets	$	5,628	$	12,781	$	19,670	$	5,623	$	(27,999	)	$	15,703
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	71	$	395	$	530	$	—		$	996
Deferred revenues		—		—		184		140		—			324
Income tax liabilities		—		—		42		57		—			99
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		334		36		18		—			388
Intercompany payables		—		—		366		222		(588	)		—
Total current liabilities		—		405		1,023		967		(588	)		1,807
Non-current liabilities
Long-term debt and capital lease obligations		—		6,420		84		17		—			6,521
Deferred tax liabilities		—		71		973		92		—			1,136
Intercompany loans		—		—		11,726		542		(12,268	)		—
Other non-current liabilities		2		11		246		308		—			567
Total liabilities		2		6,907		14,052		1,926		(12,856	)		10,031
Total stockholders’ equity		5,626		5,874		5,618		3,651		(15,143	)		5,626
Noncontrolling interests		—		—		—		46		—			46
Total equity		5,626		5,874		5,618		3,697		(15,143	)		5,672
Total liabilities and equity	$	5,628	$	12,781	$	19,670	$	5,623	$	(27,999	)	$	15,703

The Nielsen Company B.V.

Condensed Consolidating Balance Sheet

December31, 2012

(IN MILLIONS)	Parent		Issuers		Guarantor		Non- Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	—	$	—	$	24	$	263	$	—		$	287
Trade and other receivables, net		—		—		404		706		—			1,110
Prepaid expenses and other current assets		—		14		132		132		—			278
Intercompany receivables		—		270		177		134		(581	)		—
Total current assets		—		284		737		1,235		(581	)		1,675
Non-current assets
Property, plant and equipment, net		—		—		303		257		—			560
Goodwill		—		—		5,046		2,306		—			7,352
Other intangible assets, net		—		—		4,088		467		—			4,555
Deferred tax assets		10		3		77		79		—			169
Other non-current assets		—		46		165		61		—			272
Equity investment in subsidiaries		5,157		1,965		7,163		—		(14,285	)		—
Intercompany loans		45		9,444		555		1,300		(11,344	)		—
Total assets	$	5,212	$	11,742	$	18,134	$	5,705	$	(26,210	)	$	14,583
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	52	$	347	$	572	$	—		$	971
Deferred revenues		—		—		217		156		—			373
Income tax liabilities		—		—		12		44		—			56
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		340		15		7		—			362
Intercompany payables		—		14		414		153		(581	)		—
Total current liabilities		—		406		1,005		932		(581	)		1,762
Non-current liabilities
Long-term debt and capital lease obligations		—		5,843		81		17		—			5,941
Deferred tax liabilities		—		71		838		97		—			1006
Intercompany loans		—		—		10,795		549		(11,344	)		—
Other non-current liabilities		2		16		258		340		—			616
Total liabilities		2		6,336		12,977		1,935		(11,925	)		9,325
Total stockholders’ equity		5,210		5,406		5,157		3,722		(14,285	)		5,210
Noncontrolling interests		—		—		—		48		—			48
Total equity		5,210		5,406		5,157		3,770		(14,285	)		5,258
Total liabilities and equity	$	5,212	$	11,742	$	18,134	$	5,705	$	(26,210	)	$	14,583

Condensed Consolidating Statement of Cash Flows

The Nielsen Company B.V.

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the nine months ended September30, 2013

(IN MILLIONS)	Parent				Issuers				Guarantor				Non- Guarantor				Consolidated
Net cash provided by operating activities	$	—		$		409		$		13		$		168		$		590
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—				—				(1,195	)			(7	)			(1,202	)
Proceeds from sale of subsidiaries and affiliates, net		—				—				934				—				934
Additions to property, plant and equipment and other assets		—				—				(34	)			(45	)			(79	)
Additions to intangible assets		—				—				(161	)			(15	)			(176	)
Net cash used in investing activities		—				—				(456	)			(67	)			(523	)
Financing activities:
Proceeds from the issuance of debt, net of issuance costs						2,481				20				4				2,505
Repayments of debt						(1,933	)			—				—				(1,933	)
Increase in other short-term borrowings		—				—				—				12				12
Capital contributions to parent		(163	)			—				—				—				(163	)
Activity under stock plans		—				—				(4	)			(3	)			(7	)
Settlement of intercompany and other financing activities		163				(957	)			773				(3	)			(24	)
Net cash (used in)/provided by financing activities		—				(409	)			789				10				390
Effect of exchange-rate changes on cash and cash equivalents		—				—				(2	)			(17	)			(19	)
Net increase in cash and cash equivalents		—				—				344				94				438
Cash and cash equivalents at beginning of period		—				—				24				263				287
Cash and cash equivalents at end of period	$	—		$		—		$		368		$		357		$		725

The Nielsen Company B.V.

Condensed Consolidated Statement of Cash Flows (Unaudited)

For the nine months ended September30, 2012

(IN MILLIONS)	Parent				Issuers				Guarantor				Non- Guarantor				Consolidated
Net cash provided by operating activities	$	1		$		229		$		81		$		148		$		459
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—				—				(131	)			(5	)			(136	)
Proceeds from sale of subsidiaries and affiliates, net		—				—				(1	)			—				(1	)
Additions to property, plant and equipment and other assets		—				—				(31	)			(41	)			(72	)
Additions to intangible assets		—				—				(137	)			(16	)			(153	)
Net cash used in investing activities		—				—				(300	)			(62	)			(362	)
Financing activities:
Net borrowings under revolving credit facility		—				—				65				—				65
Proceeds from the issuance of debt, net of issuance costs		—				1,209				—				—				1,209
Repayments of debt		(106	)			(1,273	)			(2	)			—				(1,381	)
Increase in other short-term borrowings		—				—				—				10				10
Capital contributions from parent		11				—				—				—				11
Activity under stock plans		0				0				0				0				0
Settlement of intercompany and other financing activities		94				(165	)			156				(96	)			(11	)
Net cash provided by/(used in) financing activities		(1	)			(229	)			219				(86	)			(97	)
Effect of exchange-rate changes on cash and cash equivalents		—				—				—				4				4
Net increase/(decrease) in cash and cash equivalents		—				—				—				4				4
Cash and cash equivalents at beginning of period		—				—				33				285				318
Cash and cash equivalents at end of period	$	—		$		—		$		33		$		289		$		322