Segments Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

(20)Segment Information

ASC Topic 280, Segment Reporting ("ASC 280"), establishes standards for reporting information about segments and requires that a public business enterprise reports financial and descriptive information about its segments. Segments are components of an enterprise for which separate financial information is available and are evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. Our chief executive officer is identified as the CODM as defined by ASC 280. To align with the internal management of our business operations based on service offerings, our business is organized into two segments. Refer to Note 15 — Revenues for a description of our Software Solutions and Data and Analytics segments.

Separate discrete financial information is available for these two segments and the operating results of each segment are regularly evaluated by the CODM in order to assess performance and allocate resources. We use EBITDA as the primary profitability measure for making decisions regarding ongoing operations. EBITDA is earnings before Interest expense, net, Income tax expense and Depreciation and amortization. It also excludes Equity in earnings (losses) of unconsolidated affiliates. We do not allocate Interest expense, Other income, net, Income tax expense, equity-based compensation and certain other items, such as purchase accounting adjustments and acquisition-related costs to the segments, since these items are not considered in evaluating the segments’ overall operating performance.

Segment asset information is not included below because we do not use it to evaluate performance or allocate resources. Summarized financial information concerning our segments is shown in the tables below (in millions):

	Year ended December 31, 2021
	Software		Data and		Corporate and
	Solutions		Analytics		Other			Total
Revenues	$	1,250.0	$	225.2	$	—	(1)	$	1,475.2
Expenses:
Operating expenses		536.3		145.0		112.6	(2)		793.9
Transition and integration costs		—		—		13.3	(3)		13.3
EBITDA		713.7		80.2		(125.9)			668.0
Depreciation and amortization		131.1		15.5		218.4	(4)		365.0
Operating income (loss)		582.6		64.7		(344.3)			303.0
Interest expense, net									(83.6)
Other expense, net									(6.4)
Earnings before income taxes and equity in earnings of unconsolidated affiliates									213.0
Income tax expense									35.7
Earnings before equity in earnings of unconsolidated affiliates									177.3
Equity in earnings of unconsolidated affiliates, net of tax									2.6
Net earnings									179.9
Net losses attributable to redeemable noncontrolling interests									28.0
Net earnings attributable to Black Knight								$	207.9

	Year ended December 31, 2020
	Software		Data and		Corporate and
	Solutions		Analytics		Other			Total
Revenues	$	1,040.2	$	198.7	$	(0.4)	(1)	$	1,238.5
Expenses:
Operating expenses		435.6		133.9		100.1	(2)		669.6
Transition and integration costs		—		—		31.4	(3)		31.4
EBITDA		604.6		64.8		(131.9)			537.5
Depreciation and amortization		120.9		15.1		134.7	(4)		270.7
Operating income (loss)		483.7		49.7		(266.6)			266.8
Interest expense, net									(62.9)
Other income, net									16.4
Earnings before income taxes and equity in earnings of unconsolidated affiliates									220.3
Income tax expense									41.6
Earnings before equity in earnings of unconsolidated affiliates									178.7
Equity in earnings of unconsolidated affiliates, net of tax									67.1
Net earnings									245.8
Net losses attributable to redeemable noncontrolling interests									18.3
Net earnings attributable to Black Knight								$	264.1

	Year ended December 31, 2019
	Software		Data and		Corporate and
	Solutions		Analytics		Other			Total
Revenues	$	1,012.3	$	165.4	$	(0.5)	(1)	$	1,177.2
Expenses:
Operating expenses		412.7		123.4		109.9	(2)		646.0
Transition and integration costs		—		—		5.4	(3)		5.4
EBITDA		599.6		42.0		(115.8)			525.8
Depreciation and amortization		123.9		15.9		96.4	(4)		236.2
Operating income (loss)		475.7		26.1		(212.2)			289.6
Interest expense, net									(63.5)
Other expense, net									(1.4)
Earnings before income taxes and equity in losses of unconsolidated affiliates									224.7
Income tax expense									41.9
Earnings before equity in losses of unconsolidated affiliates									182.8
Equity in losses of unconsolidated affiliates, net of tax									(74.0)
Net earnings								$	108.8

(1) Revenues for Corporate and Other represent deferred revenue purchase accounting adjustments recorded in accordance with GAAP.

(2) Operating expenses for Corporate and Other includes equity-based compensation, including certain related payroll taxes, of $42.9 million, $40.6 million and $51.7 million for the years ended December 31, 2021, 2020 and 2019, respectively.

(3) Transition and integration costs primarily consists of costs associated with acquisitions and expense reduction initiatives.

(4) Depreciation and amortization for Corporate and Other primarily represents net incremental depreciation and amortization adjustments associated with the application of purchase accounting recorded in accordance with GAAP.