Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2019

Consolidating Statement of Comprehensive Income

Nielsen Holdings plc

Condensed Consolidated Statement of Comprehensive Income/(Loss) (Unaudited)

For the three months ended March 31, 2019

										Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated
Revenues	$	-		$	-		$	867		$	696		$	-		$	1,563
Cost of revenues, exclusive of depreciation and amortization shown separately below		-			-			376			319			-			695
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		1			-			234			245			-			480
Depreciation and amortization		-			-			145			34			-			179
Restructuring charges		-			-			12			23			-			35
Operating income/(loss)		(1	)		-			100			75			-			174
Interest income		-			184			10			2			(194	)		2
Interest expense		-			(93	)		(190	)		(10	)		194			(99	)
Foreign currency exchange transaction gains/(losses), net		-			-			1			(4	)		-			(3	)
Other income/(expense), net		-			-			(7	)		12			-			5
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries		(1	)		91			(86	)		75			-			79
Benefit/(provision) for income taxes		-			(25	)		63			(70	)		-			(32	)
Equity in net income/(loss) of subsidiaries		44			56			67			-			(167	)		-
Net income/(loss)		43			122			44			5			(167	)		47
Less net income/(loss) attributable to noncontrolling interests		-			-			-			4			-			4
Net income/(loss) attributable to controlling interest		43			122			44			1			(167	)		43
Total other comprehensive income/(loss) attributable to controlling interests		6			1			6			32			(39	)		6
Total comprehensive income/(loss)		49			123			50			37			(206	)		53
Comprehensive income/(loss) attributable to noncontrolling interests		-			-			-			4			-			4
Total comprehensive income/(loss) attributable to controlling interest	$	49		$	123		$	50		$	33		$	(206	)	$	49

Nielsen Holdings plc

Condensed Consolidated Statement of Comprehensive Income/(Loss) (Unaudited)

For the three months ended March 31, 2018

(IN MILLIONS)	Parent			Issuers			Guarantor			Non Guarantor			Elimination			Consolidated
Revenues	—			—			$	870		$	740		$	—		$	1,610
Cost of revenues, exclusive of depreciation and amortization shown separately below	—			—				375			344			—			719
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		1			—			234			258			—			493
Depreciation and amortization	—			—				132			35			—			167
Restructuring charges	—			—				11			13			—			24
Operating income/(loss)		(1	)	—				118			90			—			207
Interest income		—			151			10			1			(160	)		2
Interest expense		—			(91	)		(154	)		(11	)		160			(96	)
Foreign currency exchange transaction gain/(losses), net		—		—				—			—			—			—
Other income/(expense), net	—				(1	)		—			2			—			1
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries		(1	)		59			(26	)		82			—			114
Benefit/(provision) for income taxes	—				(12	)		2			(29	)		—			(39	)
Equity in net income/(loss) of subsidiaries		73			58			97		—				(228	)		—
Net income/(loss)		72			105			73			53			(228	)		75
Less net income/(loss) attributable to noncontrolling interests	—			—			—				3			-			3
Net income/(loss) attributable to controlling interest		72			105			73			50			(228	)		72
Total other comprehensive income/(loss)		54			2			54			59			(113	)		56
Total other comprehensive income/(loss) attributable to noncontrolling interests	—			—			—				2		—				2
Total other comprehensive income/(loss) attributable to controlling interests		54			2			54			57			(113	)		54
Total comprehensive income/(loss)		126			107			127			112			(341	)		131
Comprehensive income/(loss) attributable to noncontrolling interests	—			—			—				5		—				5
Total comprehensive income/(loss) attributable to controlling interest	$	126		$	107		$	127		$	107		$	(341	)	$	126

Consolidating Balance Sheet

Nielsen Holdings plc

Condensed Consolidated Balance Sheet (Unaudited)

March 31, 2019

							Non-
(IN MILLIONS)	Parent		Issuers		Guarantor		Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	3	$	2	$	60	$	337	$	-		$	402
Trade and other receivables, net		-		1		460		760		-			1,221
Prepaid expenses and other current assets		1		1		290		132		-			424
Intercompany receivables		3		1,442		353		68		(1,866	)		-
Total current assets		7		1,446		1,163		1,297		(1,866	)		2,047
Non-current assets													-
Property, plant and equipment, net		-		-		292		181		-			473
Operating lease right-of-use asset		-		-		221		285		-			506
Goodwill		-		-		5,543		1,466		-			7,009
Other intangible assets, net		-		-		4,504		516		-			5,020
Deferred tax assets		1		-		-		333		-			334
Other non-current assets		-		12		270		71		-			353
Equity investment in subsidiaries		2,757		1,225		3,399		-		(7,381	)		-
Intercompany loans		25		8,822		897		104		(9,848	)		-
Total assets	$	2,790	$	11,505	$	16,289	$	4,253	$	(19,095	)	$	15,742
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	-	$	103	$	440	$	528	$	-		$	1,071
Deferred revenues		-		-		230		146		-			376
Income tax liabilities		-		-		16		69		-			85
Current portion of long-term debt, finance lease obligations and short-term borrowings		-		55		316		14		-			385
Intercompany payables		-		-		1,513		353		(1,866	)		-
Total current liabilities		-		158		2,515		1,110		(1,866	)		1,917
Non-current liabilities													-
Long-term debt and finance lease obligations		-		8,144		82		16		-			8,242
Deferred tax liabilities		-		71		953		76		-			1,100
Operating lease liabilities		-		-		245		223		-			468
Intercompany loans		-		-		8,951		897		(9,848	)		-
Other non-current liabilities		-		6		786		234		-			1,026
Total liabilities		-		8,379		13,532		2,556		(11,714	)		12,753
Total shareholders’ equity		2,790		3,126		2,757		1,498		(7,381	)		2,790
Noncontrolling interests		-		-		-		199		-			199
Total equity		2,790		3,126		2,757		1,697		(7,381	)		2,989
Total liabilities and equity	$	2,790	$	11,505	$	16,289	$	4,253	$	(19,095	)	$	15,742

Nielsen Holdings plc

Condensed Consolidated Balance Sheet

December 31, 2018

							Non-
(IN MILLIONS)	Parent		Issuers		Guarantor		Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	3	$	—	$	79	$	442	$	—		$	524
Trade and other receivables, net		—		1		377		740		—			1,118
Prepaid expenses and other current assets		—		3		234		124		—			361
Intercompany receivables		3		1,310		399		94		(1,806	)		—
Total current assets		6		1,314		1,089		1,400		(1,806	)		2,003
Non-current assets													-
Property, plant and equipment, net		—		—		303		165		—			468
Goodwill		—		—		5,531		1,456		—			6,987
Other intangible assets, net		—		—		4,545		479		—			5,024
Deferred tax assets		1		—		—		332		—			333
Other non-current assets		—		19		273		72		—			364
Equity investment in subsidiaries		2,815		1,232		1,936		—		(5,983	)		—
Intercompany loans		25		8,822		2,220		105		(11,172	)		—
Total assets	$	2,847	$	11,387	$	15,897	$	4,009	$	(18,961	)	$	15,179
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	62	$	541	$	516	$	—		$	1,119
Deferred revenues		—		—		225		130		—			355
Income tax liabilities		—		—		20		56		—			76
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		54		46		7		—			107
Intercompany payables		—		—		1,408		398		(1,806	)		—
Total current liabilities		—		116		2,240		1,107		(1,806	)		1,657
Non-current liabilities													—
Long-term debt and capital lease obligations		—		8,170		95		15		—			8,280
Deferred tax liabilities		—		71		956		81		—			1,108
Intercompany loans		—		—		8,952		2,220		(11,172	)		—
Other non-current liabilities		—		3		839		249		—			1,091
Total liabilities		—		8,360		13,082		3,672		(12,978	)		12,136
Total shareholders’ equity		2,847		3,027		2,815		141		(5,983	)		2,847
Noncontrolling interests		—		—		—		196		—			196
Total equity		2,847		3,027		2,815		337		(5,983	)		3,043
Total liabilities and equity	$	2,847	$	11,387	$	15,897	$	4,009	$	(18,961	)	$	15,179

Consolidating Statement of Cash Flows

Nielsen Holdings plc

Condensed Consolidated Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2019

										Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Consolidated
Net cash provided by/(used in) operating activities	$	(4	)	$	15		$	40		$	(94	)	$	(43	)
Investing activities:														-
Acquisition of subsidiaries and affiliates, net of cash acquired		-			-			(11	)		(48	)		(59	)
Proceeds from the sale of subsidiaries and affiliates, net		-			-			-			-			-
Additions to property, plant and equipment and other assets		-			-			(14	)		(16	)		(30	)
Additions to intangible assets		-			-			(76	)		(16	)		(92	)
Proceeds from the sale of property, plant and equipment and other assets		-			-			-			-			-
Other investing activities		-			-			1			-			1
Net cash used in investing activities		-			-			(100	)		(80	)		(180	)
Financing activities:														-
Net borrowings under revolving credit facility		-			-			263			-			263
Repayments of debt		-			(14	)		-			-			(14	)
Proceeds from the issuance of debt, net of issuance costs		-			-			-			-			-
Increase/(decrease) in other short-term borrowings		-			-			-			-			-
Cash dividends paid to shareholders		(124	)		-			-			-			(124	)
Repurchase of common stock		-			-			-			-			-
Activity under stock plans		-			-			(3	)		-			(3	)
Proceeds from employee stock purchase plan		1			-			-			-			1
Finance leases		-			-			(13	)		(3	)		(16	)
Settlement of intercompany and other financing activities		127			1			(203	)		72			(3	)
Net cash provided by/(used in) financing activities		4			(13	)		44			69			104
Effect of exchange-rate changes on cash and cash equivalents		-			-			(3	)		-			(3	)
Net increase/(decrease) in cash and cash equivalents		-			2			(19	)		(105	)		(122	)
Cash and cash equivalents at beginning of period		3			-			79			442			524
Cash and cash equivalents at end of period	$	3		$	2		$	60		$	337		$	402

Nielsen Holdings plc

Condensed Consolidated Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2018

										Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Consolidated
Net cash provided by/(used in) operating activities	$	(2	)	$	(20	)	$	(113	)	$	18		$	(117	)
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(1	)		(1	)		(2	)
Additions to property, plant and equipment and other assets		—			—			(20	)		(6	)		(26	)
Additions to intangible assets		—			—			(86	)		(16	)		(102	)
Other investing activities		—			—			1			(3	)		(2	)
Net cash used in investing activities		—			—			(106	)		(26	)		(132	)
Financing activities:
Net borrowings under revolving credit facility		—			—			195			—			195
Repayments of debt		—			(7	)		—			(1	)		(8	)
Proceeds from the issuance of debt, net of issuance costs		—			(1	)		—			1			—
Cash dividends paid to shareholders		(121	)		—			—			—			(121	)
Repurchase of common stock		(20	)		—			—			—			(20	)
Activity under stock plans		18			—			(4	)		—			14
Proceeds from employee stock purchase plan		1			—			—			—			1
Capital leases		—			—			(17	)		(2	)		(19	)
Settlement of intercompany and other financing activities		123			28			(8	)		(145	)		(2	)
Net cash provided by/(used in) financing activities		1			20			166			(147	)		40
Effect of exchange-rate changes on cash and cash equivalents		—			—			—			15			15
Net increase/(decrease) in cash and cash equivalents		(1	)		—			(53	)		(140	)		(194	)
Cash and cash equivalents at beginning of period		2			1			69			584			656
Cash and cash equivalents at end of period	$	1		$	1		$	16		$	444		$	462