Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

(13)Segment Information

Accounting Standards Codification (“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 11 — 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 (losses) earnings of unconsolidated affiliates. We do not allocate Interest expense, net, Other expense,

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):

	Three months ended June 30, 2022
	Software		Data and		Corporate and
	Solutions		Analytics		Other			Total
Revenues	$	339.4	$	55.1	$	—		$	394.5
Expenses:
Operating expenses		148.7		37.4		30.7	(1)		216.8
Transition and integration costs		—		—		8.2	(2)		8.2
EBITDA		190.7		17.7		(38.9)			169.5
Depreciation and amortization		35.9		4.0		52.6	(3)		92.5
Operating income (loss)		154.8		13.7		(91.5)			77.0
Interest expense, net									(22.6)
Other expense, net									(2.4)
Earnings before income taxes and equity in losses of unconsolidated affiliates									52.0
Income tax expense									11.6
Earnings before equity in losses of unconsolidated affiliates									40.4
Equity in losses of unconsolidated affiliates, net of tax									(0.1)
Net earnings								$	40.3

	Three months ended June 30, 2021
	Software		Data and		Corporate and
	Solutions		Analytics		Other			Total
Revenues	$	305.4	$	55.9	$	—		$	361.3
Expenses:
Operating expenses		130.6		35.1		31.3	(1)		197.0
Transition and integration costs		—		—		4.3	(2)		4.3
EBITDA		174.8		20.8		(35.6)			160.0
Depreciation and amortization		33.2		3.7		53.5	(3)		90.4
Operating income (loss)		141.6		17.1		(89.1)			69.6
Interest expense, net									(20.9)
Other expense, net									(1.0)
Earnings before income taxes and equity in losses of unconsolidated affiliates									47.7
Income tax expense									10.5
Earnings before equity in losses of unconsolidated affiliates									37.2
Equity in losses of unconsolidated affiliates, net of tax									(5.0)
Net earnings									32.2
Net losses attributable to redeemable noncontrolling interests									7.5
Net earnings attributable to Black Knight								$	39.7

	Six months ended June 30, 2022
	Software		Data and		Corporate and
	Solutions		Analytics		Other			Total
Revenues	$	670.1	$	111.6	$	—		$	781.7
Expenses:
Operating expenses		291.2		74.9		58.6	(1)		424.7
Transition and integration costs		—		—		15.8	(2)		15.8
EBITDA		378.9		36.7		(74.4)			341.2
Depreciation and amortization		71.0		7.8		105.2	(3)		184.0
Operating income (loss)		307.9		28.9		(179.6)			157.2
Interest expense, net									(43.7)
Other expense, net									(3.6)
Earnings before income taxes and equity in earnings of unconsolidated affiliates									109.9
Income tax expense									10.5
Earnings before equity in earnings of unconsolidated affiliates									99.4
Equity in earnings of unconsolidated affiliates, net of tax									303.0
Net earnings									402.4
Net losses attributable to redeemable noncontrolling interests									2.5
Net earnings attributable to Black Knight								$	404.9

	Six months ended June 30, 2021
	Software		Data and		Corporate and
	Solutions		Analytics		Other			Total
Revenues	$	601.2	$	109.8	$	—		$	711.0
Expenses:
Operating expenses		255.5		69.3		58.4	(1)		383.2
Transition and integration costs		—		—		12.2	(2)		12.2
EBITDA		345.7		40.5		(70.6)			315.6
Depreciation and amortization		64.4		7.5		106.3	(3)		178.2
Operating income (loss)		281.3		33.0		(176.9)			137.4
Interest expense, net									(41.2)
Other expense, net									(4.2)
Earnings before income taxes and equity in earnings of unconsolidated affiliates									92.0
Income tax expense									15.7
Earnings before equity in earnings of unconsolidated affiliates									76.3
Equity in earnings of unconsolidated affiliates, net of tax									1.4
Net earnings									77.7
Net losses attributable to redeemable noncontrolling interests									16.1
Net earnings attributable to Black Knight								$	93.8

(1) Operating expenses for Corporate and Other includes equity-based compensation, including certain related payroll taxes, of $13.0 million and $13.2 million for the three months ended June 30, 2022 and 2021, respectively, and $24.2 million and $23.7 million for the six months ended June 30, 2022 and 2021, respectively.

(2) Transition and integration costs primarily consists of costs associated with acquisitions and costs related to the ICE Transaction.

(3) 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.