Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2014

Condensed Consolidated Statement of Comprehensive Income

The Nielsen Company B.V.

Condensed Consolidating Statement of Comprehensive Income (Unaudited)

For the three months ended June 30, 2014

(IN MILLIONS)	Parent		Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—	$	—		$	851		$	743		$	—		$	1,594
Cost of revenues, exclusive of depreciation and amortization shown separately below		—		—			329			348			—			677
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—		—			239			242			—			481
Depreciation and amortization		—		—			115			30			—			145
Restructuring charges		—		—			12			1			—			13
Operating income		—		—			156			122			—			278
Interest income		—		213			11			3			(226	)		1
Interest expense		—		(74	)		(217	)		(13	)		226			(78	)
Foreign currency exchange transaction losses, net		—		—			(1	)		(5	)		—			(6	)
Other expense/(income), net		—		(45	)		158			(158	)		—			(45	)
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries and affiliates		—		94			107			(51	)		—			150
Benefit/(provision) for income taxes		2		(10	)		(70	)		3			—			(75	)
Equity in net income/(loss) of subsidiaries		71		(6	)		34			—			(99	)		—
Equity in net income of affiliates		—		—			—			1			—			1
Net income/(loss)		73		78			71			(47	)		(99	)		76
Less net income attributable to noncontrolling interests		—		—			—			2			—			2
Net income/(loss) attributable to controlling interest		73		78			71			(49	)		(99	)		74
Total other comprehensive income		40		37			40			21			(98	)		40
Total comprehensive income/(loss)		113		115			111			(26	)		(197	)		116
Comprehensive income attributable to noncontrolling interests		—		—			—			2			—			2
Total comprehensive income/(loss) attributable to controlling interest	$	113		115			111			(28	)		(197	)		114

The Nielsen Company B.V.

Condensed Consolidating Statement of Comprehensive Income (Unaudited)

For the three months ended June 30, 2013

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	681		$	705		$	—		$	1,386
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			250			330			—			580
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			206			226			—			432
Depreciation and amortization		—			—			93			33			—			126
Restructuring charges		—			—			—			8			—			8
Operating income		—			—			132			108			—			240
Interest income		—			182			11			5			(198	)		—
Interest expense		—			(73	)		(185	)		(13	)		198			(73	)
Foreign currency exchange transaction losses, net		—			—			—			(4	)		—			(4	)
Other income/(expense), net		—			—			45			(45	)		—			—
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		—			109			3			51			—			163
Provision for income taxes		—			(28	)		(13	)		(5	)		—			(46	)
Equity in net income of subsidiaries		428			348			127			—			(903	)		—
Equity in net income of affiliates		—			—			3			1			—			4
Net income from continuing operations		428			429			120			47			(903	)		121
Discontinued operations, net of tax		—			—			308			(1	)		—			307
Net income attributable to controlling interest		428			429			428			46			(903	)		428
Total other comprehensive loss		(79	)		(86	)		(82	)		(74	)		239			(82	)
Total other comprehensive loss attributable to noncontrolling interest		—			—			—			(3	)		—			(3	)
Total other comprehensive loss		(79	)		(86	)		(82	)		(71	)		239			(79	)
Total comprehensive income/(loss)		349			343			346			(28	)		(664	)		346
Comprehensive loss attributable to noncontrolling interests		—			—			—			(3	)		—			(3	)
Total comprehensive income/(loss) attributable to controlling interest	$	349		$	343		$	346		$	(25	)	$	(664	)	$	349

The Nielsen Company B.V.

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the six months ended June 30, 2014

(IN MILLIONS)	Parent		Issuer			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—	$	—		$	1,654		$	1,429		$	—		$	3,083
Cost of revenues, exclusive of depreciation and amortization shown separately below		—		—			636			683			—			1,319
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—		—			487			483			—			970
Depreciation and amortization		—		—			225			61			—			286
Restructuring charges		—		—			24			13			—			37
Operating income		—		—			282			189			—			471
Interest income		—		421			23			5			(447	)		2
Interest expense		—		(147	)		(430	)		(25	)		447			(155	)
Foreign currency exchange transaction losses, net		—		—			—			(33	)		—			(33	)
Other (expense)/income, net		—		(45	)		148			(151	)		—			(48	)
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries and affiliates		—		229			23			(15	)		—			237
Provision for income taxes		—		(57	)		(47	)		(8	)		—			(112	)
Equity in net income/(loss) of subsidiaries		127		(40	)		152			—			(239	)		—
Equity in net (loss)/income of affiliates		—		—			(1	)		3			—			2
Net income/(loss)		127		132			127			(20	)		(239	)		127
Less net loss attributable to noncontrolling interests		—		—			—			(1	)		—			(1	)
Net income/(loss) attributable to controlling interest		127		132			127			(19	)		(239	)		128
Total other comprehensive income		38		22			37			26			(85	)		38
Total comprehensive income		165		154			164			6			(324	)		165
Comprehensive loss attributable to noncontrolling interests		—		—			—			(1	)		—			(1	)
Total comprehensive income attributable to controlling interests	$	165		154			164			7			(324	)		166

The Nielsen Company B.V.

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the six months ended June 30, 2013

(IN MILLIONS)	Parent			Issuer			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	1,338		$	1,367		$	—		$	2,705
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			508			651			—			1,159
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			416			458			—			874
Depreciation and amortization		—			—			185			62			—			247
Restructuring charges		—			—			19			24			—			43
Operating income		—			—			210			172			—			382
Interest income		—			360			24			9			(392	)		1
Interest expense		—			(150	)		(366	)		(25	)		392			(149	)
Foreign currency exchange transaction losses, net		—			—			—			(16	)		—			(16	)
Other (expense)/income, net		—			(12	)		64			(64	)		—			(12	)
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		—			198			(68	)		76			—			206
Provision for income taxes		—			(48	)		—			(16	)		—			(64	)
Equity in net income of subsidiaries		465			316			209			—			(990	)		—
Equity in net income of affiliates		—			—			1			2			—			3
Income from continuing operations		465			466			142			62			(990	)		145
Income/(loss) from discontinued operations, net of tax		—			—			323			(4	)		—			319
Net income		465			466			465			58			(990	)		464
Less net loss attributable to noncontrolling interests		—			—			—			(1	)		—			(1	)
Net income attributable to controlling interest		465			466			465			59			(990	)		465
Total other comprehensive loss		(99	)		(104	)		(99	)		(136	)		338			(100	)
Total other comprehensive loss attributable to noncontrolling interests		—			—			—			(1	)		—			(1	)
Total other comprehensive loss attributable to controlling interests		(99	)		(104	)		(99	)		(135	)		338			(99	)
Total comprehensive income/(loss)		366			362			366			(78	)		(652	)		364
Comprehensive loss attributable to noncontrolling interests		—			—			—			(2	)		—			(2	)
Total comprehensive income/(loss) attributable to controlling interests	$	366		$	362		$	366		$	(76	)	$	(652	)	$	366

Condensed Consolidating Balance Sheet

The Nielsen Company B.V.

Condensed Consolidating Balance Sheet (Unaudited)

June 30, 2014

(IN MILLIONS)	Parent		Issuers		Guarantor		Non- Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	—		—		21		268		—			289
Trade and other receivables, net		—		—		500		774		—			1,274
Prepaid expenses and other current assets		—		9		241		161		—			411
Intercompany receivables		10		198		317		153		(678	)		—
Total current assets		10		207		1,079		1,356		(678	)		1,974
Non-current assets
Property, plant and equipment, net		—		—		315		215		—			530
Goodwill		—		—		5,574		2,267		—			7,841
Other intangible assets, net		—		—		4,328		437		—			4,765
Deferred tax assets		—		7		74		38		—			119
Other non-current assets		—		47		141		126		—			314
Equity investment in subsidiaries		5,764		2,023		7,577		—		(15,364	)		—
Intercompany loans		—		10,360		626		1,325		(12,311	)		—
Total assets	$	5,774	$	12,644	$	19,714	$	5,764	$	(28,353	)	$	15,543
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	47	$	252	$	573	$	—		$	872
Deferred revenues		—		—		194		145		—			339
Income tax liabilities		2		—		108		35		—			145
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		99		36		1		—			136
Intercompany payables		10		41		362		265		(678	)		—
Total current liabilities		12		187		952		1,019		(678	)		1,492
Non-current liabilities
Long-term debt and capital lease obligations		—		6,450		89		17		—			6,556
Deferred tax liabilities		—		74		711		74		—			859
Intercompany loans		—		—		11,685		626		(12,311	)		—
Other non-current liabilities		2		9		513		270		—			794
Total liabilities		14		6,720		13,950		2,006		(12,989	)		9,701
Total stockholders’ equity		5,760		5,924		5,764		3,676		(15,364	)		5,760
Noncontrolling interests		—		—		—		82		—			82
Total equity		5,760		5,924		5,764		3,758		(15,364	)		5,842
Total liabilities and equity	$	5,774	$	12,644	$	19,714	$	5,764	$	(28,353	)	$	15,543

The Nielsen Company B.V.

Condensed Consolidating Balance Sheet

December 31, 2013

(IN MILLIONS)	Parent		Issuers		Guarantor		Non- Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	—	$	—	$	205	$	347	$	—		$	552
Trade and other receivables, net		—		—		447		747		—			1,194
Prepaid expenses and other current assets		—		11		225		138		—			374
Intercompany receivables		—		190		169		176		(535	)		—
Total current assets		—		201		1,046		1,408		(535	)		2,120
Non-current assets
Property, plant and equipment, net		—		—		327		233		—			560
Goodwill		—		—		5,493		2,191		—			7,684
Other intangible assets, net		—		—		4,360		421		—			4,781
Deferred tax assets		1		7		57		50		—			115
Other non-current assets		—		39		99		118		—			256
Equity investment in subsidiaries		5,730		2,093		7,632		—		(15,455	)		—
Intercompany loans		—		10,224		495		1,289		(12,008	)		—
Total assets	$	5,731	$	12,564	$	19,509	$	5,710	$	(27,998	)	$	15,516
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	47	$	367	$	606	$	—		$	1,020
Deferred revenues		—		—		154		152		—			306
Income tax liabilities		—		—		13		42		—			55
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		136		11		1		—			148
Intercompany payables		—		5		377		153		(535	)		—
Total current liabilities		—		188		922		954		(535	)		1,529
Non-current liabilities
Long-term debt and capital lease obligations		—		6,388		86		18		—			6,492
Deferred tax liabilities		—		74		720		70		—			864
Intercompany loans		—		—		11,513		495		(12,008	)		—
Other non-current liabilities		2		8		538		277		—			825
Total liabilities		2		6,658		13,779		1,814		(12,543	)		9,710
Total stockholders’ equity		5,729		5,906		5,730		3,818		(15,455	)		5,728
Noncontrolling interests		—		—		—		78		—			78
Total equity		5,729		5,906		5,730		3,896		(15,455	)		5,806
Total liabilities and equity	$	5,731	$	12,564	$	19,509	$	5,710	$	(27,998	)	$	15,516

Condensed Consolidating Statement of Cash Flows

The Nielsen Company B.V.

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2014

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Consolidated
Net cash provided by/(used in) operating activities	$	—		$	298		$	(17	)	$	18		$	299
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(118	)		(74	)		(192	)
Additions to property, plant and equipment and other assets		—			—			(38	)		(16	)		(54	)
Additions to intangible assets		—			—			(106	)		(11	)		(117	)
Other investing activities		—			—			(9	)		—			(9	)
Net cash used in investing activities		—			—			(271	)		(101	)		(372	)
Financing activities:
Net borrowings under revolving credit facility		—			—			25			—			25
Repayments of debt		—			(3,747	)		—			(1	)		(3,748	)
Proceeds from the issuance of debt, net of issuance costs					3,748									3,748
Capital contributions to parent		(154	)		—			—			—			(154	)
Activity under stock plans		—			—			—			(3	)		(3	)
Settlement of intercompany and other financing activities		154			(299	)		79			25			(41	)
Net cash (used in)/provided by financing activities		—			(298	)		104			21			(173	)
Effect of exchange-rate changes on cash and cash equivalents		—			—			—			(17	)		(17	)
Net decrease in cash and cash equivalents		—			—			(184	)		(79	)		(263	)
Cash and cash equivalents at beginning of period		—			—			205			347			552
Cash and cash equivalents at end of period	$	—		$	—		$	21		$	268		$	289

The Nielsen Company B.V.

Condensed Consolidated Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2013

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Consolidated
Net cash provided by/(used in) operating activities	$	—		$	278		$	(55	)	$	47		$	270
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(12	)		(7	)		(19	)
Proceeds from sale of subsidiaries and affiliates, net		—			—			934			—			934
Additions to property, plant and equipment and other assets		—			—			(30	)		(25	)		(55	)
Additions to intangible assets		—			—			(105	)		(10	)		(115	)
Net cash provided by/(used in) investing activities		—			—			787			(42	)		745
Financing activities:
Proceeds from the issuance of debt, net of issuance costs		—			1,866			21			3			1,890
Repayments of debt		—			(1,911	)		—			—			(1,911	)
Increase in other short-term borrowings		—			—			—			2			2
Capital contributions to parent		(90	)		—			—			—			(90	)
Activity under stock plans		—			—			(3	)		(4	)		(7	)
Settlement of intercompany and other financing activities		90			(233	)		102			31			(10	)
Net cash (used in)/provided by financing activities		—			(278	)		120			32			(126	)
Effect of exchange-rate changes on cash and cash equivalents		—			—			—			(22	)		(22	)
Net increase in cash and cash equivalents		—			—			852			15			867
Cash and cash equivalents at beginning of period		—			—			24			263			287
Cash and cash equivalents at end of period	$	—		$	—		$	876		$	278		$	1,154