Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Consolidating Statement of Comprehensive Income

Nielsen Holdings plc

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the three months ended March 31, 2017

(IN MILLIONS)	Parent			Issuers			Guarantor			Non Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	861		$	665		$	—		$	1,526
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			339			322			—			661
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		1			—			254			216			—			471
Depreciation and amortization		—			—			125			30			—			155
Restructuring charges		—			—			15			17			—			32
Operating (loss)/income		(1	)		—			128			80			—			207
Interest income		—			217			9			1			(226	)		1
Interest expense		—			(85	)		(222	)		(9	)		226			(90	)
Foreign currency exchange transaction losses, net		—			—			(1	)		(1	)		—			(2	)
Other (expense)/income, net		—			—			(18	)		18			—			—
(Loss)/income from continuing operations before income taxes and equity in net income of subsidiaries		(1	)		132			(104	)		89			—			116
(Provision)/benefit for income taxes		—			(46	)		44			(41	)		—			(43	)
Equity in net income of subsidiaries		72			243			132			—			(447	)		—
Net income		71			329			72			48			(447	)		73
Less net income attributable to noncontrolling interests		—			—			—			2			—			2
Net income attributable to controlling interest		71			329			72			46			(447	)		71
Total other comprehensive income		77			83			77			78			(235	)		80
Total other comprehensive income attributable to noncontrolling interests		—			—			—			3			—			3
Total other comprehensive income attributable to controlling interests		77			83			77			75			(235	)		77
Total comprehensive income		148			412			149			126			(682	)		153
Comprehensive income attributable to noncontrolling interests		—			—			—			5			—			5
Total comprehensive income attributable to controlling interest	$	148		$	412		$	149		$	121		$	(682	)	$	148

Nielsen Holdings plc

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the three months ended March 31, 2016

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	871		$	616		$	—		$	1,487
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			331			310			—			641
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			259			206			—			465
Depreciation and amortization		—			—			119			28			—			147
Restructuring charges		—			—			5			5			—			10
Operating income		—			—			157			67			—			224
Interest income		—			210			9			1			(219	)		1
Interest expense		(1	)		(74	)		(214	)		(9	)		219			(79	)
Foreign currency exchange transaction losses, net		—			—			(1	)		—			—			(1	)
Other (expense)/income, net		—			(1	)		8			(7	)		—			—
(Loss)/income from continuing operations before income taxes and equity in net income/(loss) of subsidiaries		(1	)		135			(41	)		52			—			145
(Provision)/benefit for income taxes		—			(47	)		28			(25	)		—			(44	)
Equity in net income/(loss) of subsidiaries		101			(10	)		114			—			(205	)		—
Net income		100			78			101			27			(205	)		101
Less: Net income attributable to noncontrolling interests		—			—			—			1			—			1
Net income attributable to controlling interests		100			78			101			26			(205	)		100
Total other comprehensive income		90			114			90			92			(295	)		91
Total other comprehensive income attributable to noncontrolling interests		—			—			—			1			—			1
Total other comprehensive income attributable to controlling interests		90			114			90			91			(295	)		90
Total comprehensive income		190			192			191			119			(500	)		192
Comprehensive income attributable to noncontrolling interests		—			—			—			2			—			2
Total comprehensive income attributable to controlling interest	$	190		$	192		$	191		$	117		$	(500	)	$	190

Consolidating Balance Sheet

Nielsen Holdings plc

Condensed Consolidated Balance Sheet (Unaudited)

March 31, 2017

								Non-
(IN MILLIONS)	Parent		Issuers		Guarantor			Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	9	$	18	$	(41	)	$	465	$	—		$	451
Trade and other receivables, net		—		—		567			720		—			1,287
Prepaid expenses and other current assets		—		—		238			125		—			363
Intercompany receivables		1		1,001		297			102		(1,401	)		—
Total current assets		10		1,019		1,061			1,412		(1,401	)		2,101
Non-current assets
Property, plant and equipment, net		—		—		302			162		—			464
Goodwill		—		—		6,027			2,185		—			8,212
Other intangible assets, net		—		—		4,572			514		—			5,086
Deferred tax assets		2		3		—			128		—			133
Other non-current assets		—		4		250			82		—			336
Equity investment in subsidiaries		4,088		—		3,901			—		(7,989	)		—
Intercompany loans		25		11,533		3,339			153		(15,050	)		—
Total assets	$	4,125	$	12,559	$	19,452		$	4,636	$	(24,440	)	$	16,332
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	102	$	395		$	436	$	—		$	933
Deferred revenues		—		—		221			143		—			364
Income tax liabilities		—		2		20			80		—			102
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		198		34			4		—			236
Intercompany payables		—		2		1,159			240		(1,401	)		—
Total current liabilities		—		304		1,829			903		(1,401	)		1,635
Non-current liabilities														—
Long-term debt and capital lease obligations		—		8,055		105			20		—			8,180
Deferred tax liabilities		—		71		1,109			92		—			1,272
Intercompany loans		—		2,985		11,712			353		(15,050	)		—
Other non-current liabilities		2		2		609			315		—			928
Total liabilities		2		11,417		15,364			1,683		(16,451	)		12,015
Total stockholders’ equity		4,123		1,142		4,088			2,759		(7,989	)		4,123
Noncontrolling interests		—		—		—			194		—			194
Total equity		4,123		1,142		4,088			2,953		(7,989	)		4,317
Total liabilities and equity	$	4,125	$	12,559	$	19,452		$	4,636	$	(24,440	)	$	16,332

Nielsen Holdings plc

Condensed Consolidated Balance Sheet

December 31, 2016

								Non-
(IN MILLIONS)	Parent		Issuers		Guarantor			Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	5	$	1	$	219		$	529	$	—		$	754
Trade and other receivables, net		2		—		478			691		—			1,171
Prepaid expenses and other current assets		—		—		185			112		—			297
Intercompany receivables		—		862		312			167		(1,341	)		—
Total current assets		7		863		1,194			1,499		(1,341	)		2,222
Non-current assets
Property, plant and equipment, net		—		—		307			164		—			471
Goodwill		—		—		5,728			2,117		—			7,845
Other intangible assets, net		—		—		4,248			488		—			4,736
Deferred tax assets		2		—		(1	)		126		—			127
Other non-current assets		—		3		245			81		—			329
Equity investment in subsidiaries		4,117		—		4,222			—		(8,339	)		—
Intercompany loans		25		11,533		3,332			150		(15,040	)		—
Total assets	$	4,151	$	12,399	$	19,275		$	4,625	$	(24,720	)	$	15,730
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	52	$	479		$	481	$	—		$	1,012
Deferred revenues		—		—		172			125		—			297
Income tax liabilities		—		2		36			59		—			97
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		145		35			8		—			188
Intercompany payables		47		2		988			304		(1,341	)		—
Total current liabilities		47		201		1,710			977		(1,341	)		1,594
Non-current liabilities
Long-term debt and capital lease obligations		—		7,611		106			21		—			7,738
Deferred tax liabilities		—		71		1,027			77		—			1,175
Intercompany loans		—		2,985		11,708			347		(15,040	)		—
Other non-current liabilities		2		4		609			315		—			930
Total liabilities		49		10,872		15,160			1,737		(16,381	)		11,437
Total stockholders’ equity		4,102		1,527		4,117			2,695		(8,339	)		4,102
Noncontrolling interests		—		—		(2	)		193		—			191
Total equity		4,102		1,527		4,115			2,888		(8,339	)		4,293
Total liabilities and equity	$	4,151	$	12,399	$	19,275		$	4,625	$	(24,720	)	$	15,730

Consolidating Statement of Cash Flows

Nielsen Holdings plc

Condensed Consolidated Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2017

										Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Consolidated
Net cash (used in)/provided by operating activities	$	(46	)	$	39		$	52		$	(5	)	$	40
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(559	)		(13	)		(572	)
Additions to property, plant and equipment and other assets		—			—			(13	)		(4	)		(17	)
Additions to intangible assets		—			—			(83	)		(14	)		(97	)
Net cash used in investing activities		—			—			(655	)		(31	)		(686	)
Financing activities:
Repayments of debt		—			(6	)		—			—			(6	)
Proceeds from the issuance of debt, net of issuance costs		—			495			—			—			495
Decrease in other short-term borrowings		—			—			—			(5	)		(5	)
Cash dividends paid to stockholders		(111	)		—			—			—			(111	)
Repurchase of common stock		(42	)		—			—			—			(42	)
Activity under stock plans		15			—			(4	)		—			11
Proceeds from employee stock purchase plan		2			—			—			—			2
Capital leases		—			—			(12	)		—			(12	)
Settlement of intercompany and other financing activities		186			(511	)		359			(37	)		(3	)
Net cash provided by/(used in) financing activities		50			(22	)		343			(42	)		329
Effect of exchange-rate changes on cash and cash equivalents		—			—			—			14			14
Net increase/(decrease) in cash and cash equivalents		4			17			(260	)		(64	)		(303	)
Cash and cash equivalents at beginning of period		5			1			219			529			754
Cash and cash equivalents at end of period	$	9		$	18		$	(41	)	$	465		$	451

Nielsen Holdings plc

Condensed Consolidated Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2016

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Consolidated
Net cash (used in)/provided by operating activities	$	(2	)	$	60		$	36		$	(7	)	$	87
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(37	)		(10	)		(47	)
Additions to property, plant and equipment and other assets		—			—			(20	)		(8	)		(28	)
Additions to intangible assets		—			—			(72	)		(9	)		(81	)
Net cash used in investing activities		—			—			(129	)		(27	)		(156	)
Financing activities:
Net repayments under revolving credit facility		—			—			(164	)		—			(164	)
Repayments of debt		—			(25	)		—			—			(25	)
Proceeds from the issuance of debt, net of issuance costs		—			496			—			—			496
Cash dividends paid to stockholders		(101	)		—			—			—			(101	)
Repurchase of common stock		(83	)		—			—			—			(83	)
Activity under stock plans		32			—			(14	)		—			18
Capital leases		—			—			—			(8	)		(8	)
Other financing activities		159			(513	)		352			(1	)		(3	)
Net cash provided by/(used in) financing activities		7			(42	)		174			(9	)		130
Effect of exchange-rate changes on cash and cash equivalents		—			—			—			14			14
Net increase/(decrease) in cash and cash equivalents		5			18			81			(29	)		75
Cash and cash equivalents at beginning of period		1			—			7			349			357
Cash and cash equivalents at end of period	$	6		$	18		$	88		$	320		$	432