Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2021

Discontinued Operations And Disposal Groups [Abstract]

Schedule of Discontinued Operations

The following table summarizes the major classes of line items constituting net income from discontinued operations, net of tax:

	Three Months Ended			Three Months Ended
	March 31,			March 31,
(IN MILLIONS)	2021					2020
Operations
Revenues	$	452				$	717
Cost of revenues, exclusive of depreciation and amortization shown separately below		264					397
Selling, general and administrative expenses, exclusive of depreciation and amortization    shown separately below		229					313
Depreciation and amortization		36					78
Restructuring charges		6					8
Operating income/(loss)		(83	)				(79		)
Other income and expenses(1)		(13	)				(8		)
Income/(loss) from discontinued operations before income taxes		(96	)				(87		)
Benefit/(provision) for income taxes		21					14
Net income/(loss) from discontinued operations	$	(75	)			$	(73		)
Disposal
Gain on disposal before income taxes	$	379				$	-
Benefit/(provision) for income taxes		163					-
Gain on disposal, net of taxes		542					-
Net income/(loss) from discontinued operations		467						(73		)
Net income/(loss) from discontinued operations attributable to noncontrolling interests		-						1
Net income/(loss) from discontinued operations attributable to Nielsen shareholders	$	467			$			(74		)

(1)The Company’s Sixth Amended and Restated Credit Agreement entered into in July 2020 and the Credit Agreement entered into in June 2020, as amended by Amendment No. 1 thereto in July 2020, required $1.3 billion of senior secured term loans to be repaid pursuant to the debt covenants which were triggered as a result of the Connect Transaction.  As such, the Company elected to allocate interest expense to discontinued operations of $8 million and $10 for the three months ended March 31, 2021 and 2020, respectively.

The following table summarizes the major classes of assets and liabilities of discontinued operations at December 31, 2020:

	December 31,
(IN MILLIONS)	2020
Assets:
Current assets
Cash and cash equivalents	$	110
Trade and other receivables, net of allowances for doubtful accounts and sales returns		689
Prepaid expenses and other current assets		265
Total current assets of discontinued operations		1,064
Non-current assets
Property, plant and equipment, net		177
Operating lease right-of-use asset		217
Goodwill		360
Other intangible assets, net		807
Deferred tax assets		228
Other non-current assets		136
Total assets of discontinued operations	$	2,989
Liabilities:
Current liabilities
Accounts payable and other current liabilities	$	710
Deferred revenues		235
Income tax liabilities		27
Current portion of long-term debt, finance lease obligations and short-term borrowings		17
Total current liabilities of discontinued operations		989
Non-current liabilities
Long-term debt and finance lease obligations		1,330
Deferred tax liabilities		65
Operating lease liabilities		218
Other non-current liabilities		224
Total liabilities of discontinued operations	$	2,826

The following table provides operating and investing cash flows for Nielsen’s discontinued operations (in millions):

		March 31,			March 31,
(IN MILLIONS)		2021			2020
		(Unaudited)			(Unaudited)
Net cash flows provided by/(used in) operating activities	$	(213	)	$	(126	)
Net cash flows provided by/(used in) investing activities		(26	)		(68	)