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Segments
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segments

14. Segments

The Company aligns its operating segments in order to conform to management’s internal reporting structure, which is reflective of service offerings by industry. Prior to February 2019, Management aggregated such operating segments into two reporting segments: what consumers buy (“Buy”), consisting principally of market research information and analytical services; and what consumers read, watch and listen to (“Watch”), consisting principally of television, radio, online and mobile audience and advertising measurement and corresponding analytics.

In February 2019, Nielsen realigned its business segments from Buy and Watch to Nielsen Global Connect (“Connect”) and Nielsen Global Media (“Media”). Each segment operates as a complete unit—from the conception of a product, through the collection of the data, into the technology and operations, all the way to the data being sold and delivered to the client. These changes better align Nielsen’s external view to its go-forward internal view. The Company’s reportable segments are stated on the new basis and such changes were retrospectively applied. The impact of these changes did not have a material impact on Nielsen’s condensed consolidated financial statements or segment results.

 

Corporate consists principally of unallocated items such as certain facilities and infrastructure costs as well as intersegment eliminations. Certain corporate costs, other than those described above, including those related to selling, finance, legal, human resources, and information technology systems, are considered operating costs and are allocated to the Company’s segments based on either the actual amount of costs incurred or on a basis consistent with the operations of the underlying segment. Information with respect to the operations of each of Nielsen’s business segments is set forth below based on the nature of the services offered and geographic areas of operations.

Business Segment Information

 

(IN MILLIONS)

 

Connect

 

 

Media

 

 

Corporate

 

 

Total

 

Three Months Ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

746

 

 

$

870

 

 

$

—

 

 

$

1,616

 

Depreciation and amortization

 

$

57

 

 

$

127

 

 

$

2

 

 

$

186

 

Restructuring charges

 

$

8

 

 

$

1

 

 

$

(4

)

 

$

5

 

Impairment of goodwill and other long-lived assets

 

$

1,004

 

 

$

—

 

 

$

—

 

 

$

1,004

 

Share-based compensation expense

 

$

4

 

 

$

3

 

 

$

6

 

 

$

13

 

Other items(1)

 

$

—

 

 

$

—

 

 

$

8

 

 

$

8

 

Operating income/(loss)

 

$

(964

)

 

$

250

 

 

$

(26

)

 

$

(740

)

Business segment income/(loss)(2)

 

$

109

 

 

$

381

 

 

$

(14

)

 

$

476

 

Total assets as of September 30, 2019

 

$

4,422

 

 

$

9,735

 

 

$

186

 

 

$

14,343

 

 

(IN MILLIONS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

763

 

 

$

837

 

 

$

—

 

 

$

1,600

 

Depreciation and amortization

 

$

57

 

 

$

115

 

 

$

3

 

 

$

175

 

Restructuring charges

 

$

15

 

 

$

5

 

 

$

(1

)

 

$

19

 

Share-based compensation expense

 

$

3

 

 

$

2

 

 

$

(4

)

 

$

1

 

Other items(1)

 

$

—

 

 

$

—

 

 

$

15

 

 

$

15

 

Operating income/(loss)

 

$

36

 

 

$

253

 

 

$

(28

)

 

$

261

 

Business segment income/(loss)(2)

 

$

111

 

 

$

375

 

 

$

(15

)

 

$

471

 

Total assets as of December 31, 2018

 

$

5,416

 

 

$

9,647

 

 

$

116

 

 

$

15,179

 

 

(IN MILLIONS)

 

Connect

 

 

Media

 

 

Corporate

 

 

Total

 

Nine Months Ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,255

 

 

$

2,552

 

 

$

—

 

 

$

4,807

 

Depreciation and amortization

 

$

167

 

 

$

378

 

 

$

5

 

 

$

550

 

Restructuring charges

 

$

34

 

 

$

11

 

 

$

7

 

 

$

52

 

Impairment of goodwill and other long-lived assets

 

$

1,004

 

 

$

—

 

 

$

—

 

 

$

1,004

 

Share-based compensation expense

 

$

12

 

 

$

9

 

 

$

18

 

 

$

39

 

Other items (1)

 

$

—

 

 

$

—

 

 

$

33

 

 

$

33

 

Operating income/(loss)

 

$

(920

)

 

$

701

 

 

$

(98

)

 

$

(317

)

Business segment income/(loss) (2)

 

$

297

 

 

$

1,099

 

 

$

(35

)

 

$

1,361

 

 

(IN MILLIONS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,349

 

 

$

2,508

 

 

$

—

 

 

$

4,857

 

Depreciation and amortization

 

$

165

 

 

$

333

 

 

$

6

 

 

$

504

 

Restructuring charges

 

$

85

 

 

$

19

 

 

$

4

 

 

$

108

 

Share-based compensation expense

 

$

10

 

 

$

7

 

 

$

4

 

 

$

21

 

Other items (1)

 

$

—

 

 

$

—

 

 

$

33

 

 

$

33

 

Operating income/(loss)

 

$

51

 

 

$

728

 

 

$

(83

)

 

$

696

 

Business segment income/(loss) (2)

 

$

311

 

 

$

1,087

 

 

$

(36

)

 

$

1,362

 

 

(1)

Other items primarily consists of business optimization costs, including strategic review costs, for the three months ended September 30, 2019, and business optimization costs, including strategic review costs, and transaction related costs for the nine months ended September 30, 2019.  Other items primarily consists of business optimization costs and transaction related costs for the three and nine months ended September 30, 2018.

(2)

The Company’s chief operating decision maker uses business segment income/(loss) to measure performance from period to period both at the consolidated level as well as within its operating segments.