10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-38300

CANNAE HOLDINGS, INC.

______________________________________________________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Delaware					82-1273460
(State or other jurisdiction of incorporation or organization)					(I.R.S. Employer Identification Number)
1701 Village Center Circle	,	Las Vegas	,	Nevada	89134
(Address of principal executive offices)					(Zip Code)

(702) 323-7330

___________________________________________________________________

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Cannae Common Stock, $0.0001 par value	CNNE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit). Yes ☑ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☑

As of July 31, 2019 there were 72,223,692 shares of the Registrant's common stock outstanding.

FORM 10-Q

QUARTERLY REPORT

Quarter Ended June 30, 2019

TABLE OF CONTENTS

	Page
Part I: FINANCIAL INFORMATION
Item 1. Unaudited Condensed Consolidated Financial Statements
A. Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018	1
B. Condensed Consolidated Statements of Operations for the three and six-month periods ended June 30, 2019 and 2018	2
C. Condensed Consolidated Statements of Comprehensive Earnings (Loss) for the three and six-month periods ended June 30, 2019 and 2018	3
D. Condensed Consolidated Statements of Equity for the three and six-month periods ended June 30, 2019 and 2018	4
E. Condensed Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2019 and 2018	5
F. Notes to Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosure About Market Risk	32
Item 4. Controls and Procedures	32
Part II: OTHER INFORMATION
Item 1. Legal Proceedings	34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6. Exhibits	34

i

Part I: FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

CANNAE HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	June 30, 2019			December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	73.7		$	323.0
Short-term investments	1.8			31.4
Trade receivables	33.1			49.8
Inventory	32.5			22.3
Prepaid expenses and other current assets	24.2			25.2
Total current assets	165.3			451.7
Investments in unconsolidated affiliates	913.3			397.2
Lease assets - see Note B	228.4			—
Property and equipment, net	160.4			176.4
Other intangible assets, net	158.0			175.8
Goodwill	164.8			164.8
Fixed maturity securities available for sale, at fair value	17.7			17.8
Deferred tax asset	9.4			16.9
Other long term investments and non-current assets	55.1			58.9
Total assets	$	1,872.4		$	1,459.5
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and other accrued liabilities, current	$	98.2		$	98.4
Lease liabilities, current - see Note B	43.0			—
Income taxes payable	4.1			24.2
Deferred revenue	25.3			31.5
Notes payable, current	5.9			5.9
Total current liabilities	176.5			160.0
Lease liabilities, long term - see Note B	218.0			—
Deferred revenue, long term	0.2			0.2
Notes payable, long term	195.2			42.2
Accounts payable and other accrued liabilities, long term	30.1			57.4
Total liabilities	620.0			259.8
Commitments and contingencies - see Note G
Equity:
Cannae common stock, $0.0001 par value; authorized 115,000,000 shares as of June 30, 2019 and December 31, 2018; issued and outstanding of 72,234,330 and 72,223,692, respectively, as of June 30, 2019 and December 31, 2018	—			—
Preferred stock, $0.0001 par value; authorized 10,000,000 shares; issued and outstanding, none as of June 30, 2019 and December 31, 2018	—			—
Retained earnings	90.9			45.8
Additional paid-in capital	1,150.9			1,146.2
Less: Treasury stock, 10,638 shares as of June 30, 2019 and December 31, 2018, at cost	(0.2		)	(0.2		)
Accumulated other comprehensive loss	(56.1		)	(67.2		)
Total Cannae shareholders' equity	1,185.5			1,124.6
Noncontrolling interests	66.9			75.1
Total equity	1,252.4			1,199.7
Total liabilities and equity	$	1,872.4		$	1,459.5

See Notes to Condensed Consolidated Financial Statements

1

CANNAE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions)

(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Revenues:
Restaurant revenue	$	266.5		$	276.2		$	524.3		$	550.0
Other operating revenue	18.6			26.1			35.3			44.7
Total operating revenues	285.1			302.3			559.6			594.7
Operating expenses:
Cost of restaurant revenue	231.6			240.1			458.6			480.9
Personnel costs	30.9			90.3			55.3			114.4
Depreciation and amortization	13.3			14.9			27.2			29.2
Other operating expenses	33.8			25.1			57.6			46.3
Total operating expenses	309.6			370.4			598.7			670.8
Operating loss	(24.5		)	(68.1		)	(39.1		)	(76.1		)
Other income (expense):
Interest, investment and other income	1.4			1.6			12.4			2.9
Interest expense	(5.5		)	(0.2		)	(9.2		)	(3.2		)
Realized gains, net	74.5			66.5			76.1			66.5
Total other income (expense)	70.4			67.9			79.3			66.2
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	45.9			(0.2		)	40.2			(9.9		)
Income tax expense (benefit)	8.5			2.6			3.7			(2.9		)
Earnings (loss) before equity in losses of unconsolidated affiliates	37.4			(2.8		)	36.5			(7.0		)
Equity in losses of unconsolidated affiliates	(22.4		)	(19.6		)	(19.5		)	(20.7		)
Net earnings (loss)	15.0			(22.4		)	17.0			(27.7		)
Less: Net loss attributable to non-controlling interests	(4.5		)	(2.6		)	(7.6		)	(6.8		)
Net earnings (loss) attributable to Cannae Holdings, Inc. common shareholders	$	19.5		$	(19.8	)	$	24.6		$	(20.9	)
Earnings per share
Basic
Net earnings (loss) per share	$	0.27		$	(0.28	)	$	0.34		$	(0.30	)
Diluted
Net earnings (loss) per share	$	0.27		$	(0.28	)	$	0.34		$	(0.30	)
Weighted Average Shares Outstanding
Weighted average shares outstanding Cannae Holdings common stock, basic basis	71.6			71.1			71.6			70.8
Weighted average shares outstanding Cannae Holdings common stock, diluted basis	71.9			71.1			71.8			70.9

See Notes to Condensed Consolidated Financial Statements

2

CANNAE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)

(In millions)

(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Net earnings (loss)	$	15.0		$	(22.4	)	$	17.0		$	(27.7	)
Other comprehensive earnings (loss), net of tax:
Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) (1)	0.1			(0.4		)	(0.1		)	1.8
Unrealized gain (loss) relating to investments in unconsolidated affiliates (2)	5.3			(0.1		)	11.5			(6.9		)
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings (3)	4.1			16.7			4.7			16.7
Other comprehensive earnings (loss)	9.5			16.2			16.1			11.6
Comprehensive earnings (loss)	24.5			(6.2		)	33.1			(16.1		)
Less: Comprehensive loss attributable to noncontrolling interests	(4.5		)	(2.6		)	(7.6		)	(6.8		)
Comprehensive earnings (loss) attributable to Cannae Holdings, Inc.	$	29.0		$	(3.6	)	$	40.7		$	(9.3	)

_________________________________

(1) Net of income tax expense (benefit) of less than $0.1 million and $(0.1) million for the three months ended June 30, 2019 and 2018, respectively, and less than $(0.1) million and $0.6 million for the six months ended June 30, 2019 and 2018, respectively.

(2) Net of income tax expense (benefit) of $1.4 million and less than $(0.1) million for the three months ended June 30, 2019 and 2018, respectively and $3.0 million and $(1.8) million for the six months ended June 30, 2019 and 2018, respectively.

(3) Net of income tax benefit of $1.0 million and $1.2 million for the three and six months ended June 30, 2019, respectively, and of $4.4 million for the three and six months ended June 30, 2018.

See Notes to Condensed Consolidated Financial Statements

3

CANNAE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In millions)

(Unaudited)

	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comp (Loss) Earnings			Treasury Stock				Non-controlling Interests			Total Equity
	Shares	$											Shares	$
Balance, March 31, 2018	70.9	$	—	$	1,131.9		$	1.0		$	(75.6	)	—	$	—		$	89.5		$	1,146.8
Adjustment for adoption of ASU 2018-02	—	—		—			16.1			(16.1		)	—	—			—			—
Other comprehensive earnings — unrealized loss on investments and other financial instruments, net of tax	—	—		—			—			(0.4		)	—	—			—			(0.4		)
Other comprehensive earnings — unrealized loss on investments in unconsolidated affiliates, net of tax	—	—		—			—			(0.1		)	—	—			—			(0.1		)
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	—	—		—			—			16.7			—	—			—			16.7
Shares issued for investment success bonuses, net of issuance costs	1.0	—		19.8			—			—			—	—			—			19.8
Stock-based compensation	—	—		0.4			—			—			—	—			—			0.4
Contribution of CSA services from FNF	—	—		0.3			—			—			—	—			—			0.3
Ceridian stock-based compensation	—	—		3.0			—			—			—	—			—			3.0
Sale of noncontrolling interest in consolidated subsidiary	—	—		—			—			—			—	—			4.1			4.1
Net loss	—	—		—			(19.8		)	—			—	—			(2.6		)	(22.4		)
Balance, June 30, 2018	71.9	$	—	$	1,155.4		$	(2.7	)	$	(75.5	)	—	$	—		$	91.0		$	1,168.2
Balance, March 31, 2019	72.2	$	—	$	1,148.8		$	71.4		$	(65.6	)	—	$	(0.2	)	$	71.6		$	1,226.0
Other comprehensive earnings — unrealized loss on investments and other financial instruments, net of tax	—	—		—			—			0.1			—	—			—			0.1
Other comprehensive earnings — unrealized earnings on investments in unconsolidated affiliates, net of tax	—	—		—			—			5.3			—	—			—			5.3
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	—	—		—			—			4.1			—	—			—			4.1
Dun & Bradstreet equity issuance costs	—	—		(1.4		)	—			—			—	—			—			(1.4		)
Stock-based compensation	—	—		1.0			—			—			—	—			—			1.0
Contribution of CSA services from FNF	—	—		0.3			—			—			—	—			—			0.3
Ceridian stock-based compensation	—	—		2.2			—			—			—	—			—			2.2
Subsidiary dividends paid to noncontrolling interests	—	—		—			—			—			—	—			(0.2		)	(0.2		)
Net earnings (loss)	—	—		—			19.5			—			—	—			(4.5		)	15.0
Balance, June 30, 2019	72.2	$	—	$	1,150.9		$	90.9		$	(56.1	)	—	$	(0.2	)	$	66.9		$	1,252.4

See Notes to Condensed Consolidated Financial Statements

4

CANNAE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In millions)

(Unaudited)

	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comp (Loss) Earnings			Treasury Stock				Non-controlling Interests			Total Equity
	Shares	$											Shares	$
Balance, December 31, 2017	70.9	$	—	$	1,130.2		$	0.2		$	(71.0	)	—	$	—		$	93.7		$	1,153.1
Adjustment for cumulative effect of adoption of ASC Topic 606	—	—		—			1.9			—			—	—			—			1.9
Adjustment for adoption of ASU 2018-02	—	—		—			16.1			(16.1		)	—	—			—			—
Other comprehensive earnings — unrealized gain on investments and other financial instruments, net of tax	—	—		—			—			1.8			—	—			—			1.8
Other comprehensive earnings — unrealized loss on investments in unconsolidated affiliates, net of tax	—	—		—			—			(6.9		)	—	—			—			(6.9		)
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	—	—		—			—			16.7			—	—			—			16.7
Shares issued for investment success bonuses, net of issuance costs	1.0	—		19.8			—			—			—	—			—			19.8
Stock-based compensation	—	—		0.9			—			—			—	—			—			0.9
Contribution of CSA services from FNF	—	—		0.6			—			—			—	—			—			0.6
Ceridian stock-based compensation	—	—		3.9			—			—			—	—			—			3.9
Sale of noncontrolling interest in consolidated subsidiary	—	—		—			—			—			—	—			4.1			4.1
Net loss	—	—		—			(20.9		)	—			—	—			(6.8		)	(27.7		)
Balance, June 30, 2018	71.9	$	—	$	1,155.4		$	(2.7	)	$	(75.5	)	—	$	—		$	91.0		$	1,168.2
Balance, December 31, 2018	72.2	$	—	$	1,146.2		$	45.8		$	(67.2	)	—	$	(0.2	)	$	75.1		$	1,199.7
Adjustment for cumulative effect of adoption of accounting standards by unconsolidated affiliates	—	—		—			20.5			(5.0		)	—	—			—			15.5
Other comprehensive earnings — unrealized loss on investments and other financial instruments, net of tax	—	—		—			—			(0.1		)	—	—			—			(0.1		)
Other comprehensive earnings — unrealized earnings on investments in unconsolidated affiliates, net of tax	—	—		—			—			11.5			—	—			—			11.5
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	—	—		—			—			4.7			—	—			—			4.7
Dun & Bradstreet equity issuance costs	—	—		(1.4		)	—			—			—	—			—			(1.4		)
Stock-based compensation	—	—		1.9			—			—			—	—			—			1.9
Contribution of CSA services from FNF	—	—		0.7			—			—			—	—			—			0.7
Ceridian stock-based compensation	—	—		3.5			—			—			—	—			—			3.5
Subsidiary dividends paid to noncontrolling interests	—	—		—			—			—			—	—			(0.6		)	(0.6		)
Net earnings (loss)	—	—		—			24.6			—			—	—			(7.6		)	17.0
Balance, June 30, 2019	72.2	$	—	$	1,150.9		$	90.9		$	(56.1	)	—	$	(0.2	)	$	66.9		$	1,252.4

See Notes to Condensed Consolidated Financial Statements

5

CANNAE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Six months ended June 30,
	2019			2018
Cash flows from operating activities:
Net earnings (loss)	$	17.0		$	(27.7	)
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	27.3			29.2
Equity in losses of unconsolidated affiliates	19.5			20.7
Distributions from investments in unconsolidated affiliates	2.0			0.9
Realized gains and asset impairments, net	(64.4		)	(61.4		)
Lease asset amortization	18.0			—
Stock-based compensation cost	1.9			20.6
Changes in assets and liabilities, net of effects from acquisitions:
Net decrease (increase) in trade receivables	16.5			(1.0		)
Net increase in inventory, prepaid expenses and other assets	(15.6		)	(8.4		)
Net decrease in lease liabilities	(22.0		)	—
Net decrease in accounts payable, accrued liabilities, deferred revenue and other	(4.0		)	(15.9		)
Net change in income taxes	(20.7		)	(4.5		)
Net cash used in operating activities	(24.5		)	(47.5		)
Cash flows from investing activities:
Proceeds from sale of investment securities and investments in unconsolidated affiliates	—			17.7
Proceeds from Ceridian Share Sale - See Note A	100.5			—
Additions to property and equipment and other intangible assets	(10.3		)	(6.2		)
Proceeds from sales of property and equipment	11.4			3.2
Proceeds from sale of investments in unconsolidated affiliates	4.3			4.6
Investments in Dun & Bradstreet, net of capitalized syndication fees - see Note D	(526.2		)	—
Purchases of other long-term investments	—			(3.6		)
Distributions from investments in unconsolidated affiliates	0.3			0.3
Net proceeds from sales and maturities of (cash paid for purchases of) short-term investment securities	29.6			(17.3		)
Net other investing activities	2.6			0.6
Net cash used in investing activities	(387.8		)	(0.7		)
Cash flows from financing activities:
Borrowings	262.1			0.1
Debt service payments	(111.7		)	(123.9		)
Subsidiary distributions paid to noncontrolling interest shareholders	(0.6		)	—
Sale of noncontrolling interest in consolidated subsidiary	—			4.1
Proceeds from ABRH sale and leaseback of corporate office, net of issuance costs- see Note A	13.2			—
Net cash provided by (used in) financing activities	163.0			(119.7		)
Net decrease in cash and cash equivalents	(249.3		)	(167.9		)
Cash and cash equivalents at beginning of period	323.0			245.6
Cash and cash equivalents at end of period	$	73.7		$	77.7

See Notes to Condensed Consolidated Financial Statements

5

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note A — Basis of Financial Statements

Description of the Business

We are a holding company engaged in actively managing and operating a group of companies and investments with a net asset value of approximately $1.3 billion as of June 30, 2019. Our business consists of managing and operating certain majority-owned subsidiaries, as well as making additional majority and minority equity portfolio investments in businesses, in order to achieve superior financial performance and maximize the value of these assets. As of June 30, 2019, our primary investments include our minority ownership interests in Ceridian HCM Holding, Inc. ("Ceridian") and The Dun & Bradstreet Corporation ("DNB"); majority equity ownership stakes in American Blue Ribbon Holdings, LLC ("ABRH"), 99 Restaurants Holdings, LLC ("99 Restaurants") and T-System Holdings, LLC ("T-System"); and various other controlled portfolio companies and minority equity and debt investments. Except where otherwise noted, all references to we, us, our, Cannae, Cannae Holdings, the Company, or CNNE are to Cannae Holdings, Inc. and its subsidiaries, taken together.

See Note H for further discussion of the businesses comprising our reportable segments.

Principles of Consolidation and Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X and include the historical accounts as well as wholly-owned and majority-owned subsidiaries of the Company. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2018.

Following the split-off of the former portfolio company investments by Fidelity National Financial, Inc. ("FNF"), and subsequent contribution to us (the "FNF Split-Off"), the Company is allocated certain corporate overhead and management services expenses from FNF based on the terms of the Corporate Services Agreement ("CSA"), dated as of November 17, 2017, by and between the Company and FNF and our proportionate share of the expense determined on actual usage and our best estimate of management's allocation of time. Both FNF and Cannae believe such allocations are reasonable; however, they may not be indicative of the actual results of operations or cash flows of the Company had the Company been operating as an independent, publicly traded company for the periods presented or the amounts that will be incurred by the Company in the future. FNF is considered a related party to the Company.

All intercompany profits, transactions and balances have been eliminated. Our investments in non-majority-owned partnerships and affiliates are accounted for using the equity method until such time that they may become wholly or majority-owned. Earnings attributable to noncontrolling interests are recorded on the Condensed Consolidated Statements of Operations relating to majority-owned subsidiaries with the appropriate noncontrolling interest that represents the portion of equity not related to our ownership interest recorded on the Condensed Consolidated Balance Sheets in each period.

Management Estimates

The preparation of these Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include the valuation of goodwill and acquired intangible assets and fair value measurements (Note C). Actual results may differ from estimates.

Recent Developments

Dun & Bradstreet

In February 2019, we completed our previously announced investment in DNB for a net investment $505.6 million in DNB's ultimate parent. DNB is a global leader in commercial data and analytics and provides various services to help companies improve their operational performance.

On July 1, 2019, DNB completed an acquisition of Lattice Engines, Inc. ("Lattice"), a provider of integrated data and analytics solutions used by business-to-business marketing and sales professionals. In June 2019, we made an additional pro-rata investment of $23.5 million in DNB's ultimate parent. DNB used the proceeds to partially fund its acquisition of Lattice.

See Note D for further discussion.

6

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Ceridian

On May 22, 2019, we completed the sale of 2.0 million shares of common stock of Ceridian as part of an underwritten secondary public offering by certain stockholders of Ceridian at a public offering price of $50.50 per share (the "Ceridian Share Sale"). In connection with the Ceridian Share Sale, we received $50.25 per share (after the applicable underwriter discount) for aggregate proceeds of $100.5 million. We recorded a gain of $71.1 million on the Ceridian Share Sale which is included in Realized gains (losses), net on the Consolidated and Combined Statements of Operations for the three and six months ended June 30, 2019. The recorded gain is net of $4.2 million of losses (exclusive of $1.1 million of income tax benefit) related to reclassification adjustments from Other comprehensive income. As of June 30, 2019, we own 21.7% of the outstanding common stock of Ceridian.

Restaurant Group

ABRH has entered into plans to sell certain company-owned stores. In conjunction with the plans of sale, $7.0 million of assets are recorded as held for sale and included in Prepaid expenses and other current assets, net as of June 30, 2019.

On March 21, 2019, ABRH sold its corporate office located in Nashville, Tennessee for net cash proceeds of $13.2 million and entered into a lease agreement with the buyer to lease the office for an initial term of 15 years. The transaction was evaluated and determined not to qualify for sale-leaseback accounting. Accordingly, the transaction is accounted for as a failed sale and leaseback and a financing obligation. During the six months ended June 30, 2019, we reclassified $2.4 million from assets held for sale formerly included in Prepaid expenses and other current assets to reflect the real estate assets in Property and equipment, net on our Condensed Consolidated Balance Sheet as if we were the legal owner. We continue to recognize depreciation expense over the building's estimated useful life. On the date of the sale, we recorded a liability for the financing obligation in the amount of the net cash proceeds of $13.2 million which is included in Accounts payable and other accrued liabilities, long term on our Condensed Consolidated Balance Sheet.

During the three months ended June 30, 2019, ABRH sold its corporate office located in Denver, Colorado and two company-owned O'Charley's stores for total gross proceeds of $8.5 million.

Other

On July 23, 2019, Cannae Holdings, in partnership with Motive Partners, closed on an investment in preferred equity of QOMPLX, Inc. ("QOMPLX"), formerly Fractal Industries, Inc., an intelligent decision and analytics platform used by businesses for modeling and planning. We funded $15.0 million at close and will fund another $15.0 million by December 2019 as part of a total $79.0 million financing of QOMPLX. Cannae's total investment will represent 19.9% of the outstanding voting equity of QOMPLX. Our Chairman William Foley II has joined QOMPLX’s Board of Directors.

Earnings Per Share

Basic earnings per share, as presented on the Condensed Consolidated Statement of Operations, is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period.

In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain shares of restricted stock which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported.

Instruments which provide the ability to purchase shares of our common stock that are antidilutive are excluded from the computation of diluted earnings per share. For the three and six months ended June 30, 2019 there were no antidilutive shares of restricted stock outstanding which were excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2018 there were less than 0.1 million and 0.1 million antidilutive shares of restricted stock outstanding, respectfully, which were excluded from the calculation of diluted earnings per share.

Income Tax

Our effective tax rate was 18.5% and (1,300.0)% in the three months ended June 30, 2019 and 2018, respectively, and 9.2% and 29.3% in the six months ended June 30, 2019 and 2018, respectively. The change in the effective tax rate in both the three and six-month periods ended June 30, 2019 was attributable to the decreased impact of the tax benefit on losses from investments in unconsolidated affiliates on the pretax earnings in the 2019 period compared to the lower earnings in the same period in 2018. The change in the three-month period was also driven by the decreased impact of permanent items on the pretax earnings.

7

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Recent Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842). The amendments in this ASU introduce broad changes to the accounting and reporting for leases by lessees. The main provisions of the new standard include: clarifications to the definitions of a lease, components of leases, and criteria for determining lease classification; requiring virtually all leased assets, including operating leases and related liabilities, to be reflected on the lessee's balance sheet; and expanding and adding to the required disclosures for lessees. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842): Targeted Improvements which allows entities the option to adopt this standard by recording a cumulative-effect adjustment to opening equity, if necessary, and only include required disclosures for prior periods.

We adopted Topic 842 on January 1, 2019 using a modified retrospective approach prescribed by ASU 2018-11 and recorded an operating lease right-of-use asset (Lease assets) of $246.0 million and an operating lease liability for future discounted lease payment obligations (Lease liabilities) of $279.4 million at the date of adoption. The other material impacts of the adoption of Topic 842 also resulted in a decrease of $9.1 million and $42.3 million to our Other intangible assets, net and Accounts payable and accrued liabilities, respectively. We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance.

See Note B. Leases for further discussion of our leasing arrangements and related accounting.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of debt securities available for sale. This update is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the effect this new guidance will have on our financial statements and related disclosures and have not yet concluded on its effects. We do not expect to early adopt the standard.

Revision of Prior Period Financial Statements

Subsequent to the issuance of the Company’s Condensed Consolidated Financial Statements for the three and six months ended June 30, 2018, we identified and corrected errors in connection with the preparation of the financial statements for the year ended December 31, 2018 pertaining to: (1) our adjustment for the cumulative effect of the adoption of Accounting Standards Codification ("ASC") Topic 606 as of the date of adoption (January 1, 2018), (2) adjustments to the opening balance sheet of T-System in order to add a contract asset for its unbilled accounts receivable and to remove a portion of deferred revenue for which T-System had no further performance obligations and (3) our accounting for certain revenue transactions in our T-System segment for the three and six months ended June 30, 2018.

These corrections resulted in a decrease in the Adjustment for cumulative effect of adoption of ASC Topic 606 to Retained earnings in the Condensed Consolidated Statement of Equity for the six months ended June 30, 2018 of $2.4 million from the $4.3 million (net of tax), as reported, to $1.9 million (net of tax), as corrected.

These corrections also resulted in the following changes in our Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018:

i.decrease of $1.6 million and $3.1 million, respectively, to Other operating revenue,

ii.decrease of $0.4 million and $1.0 million, respectively, to Depreciation and amortization,

iii.decrease of $0.2 million and $1.7 million, respectively, to Income tax expense (benefit) and

iv.increase of $1.0 million and $0.4 million, respectively, to Net loss and Net loss attributable to Cannae (increased loss)

v.increase of $0.02 and $0.01, respectively, to Net loss per share (increased loss per share)

8

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

In connection with the preparation of our Condensed Consolidated Financial Statements for the quarter ended September 30, 2018, we identified and corrected an error pertaining to our presentation of comprehensive (loss) earnings for the three and six months ended June 30, 2018. The misstatement related to the reclassification of $16.7 million of unrealized losses of unconsolidated affiliates from accumulated other comprehensive loss to earnings in conjunction with Ceridian's IPO. The reclassification was properly reflected in the Condensed Consolidated Statement of Equity for the six months ended June 30, 2018; however, it was omitted from the Condensed Consolidated Statements of Comprehensive (Loss) Earnings. This omission resulted in a $16.7 million overstatement of the comprehensive loss and the comprehensive loss attributable to Cannae Holdings, Inc. for the three and six months ended June 30, 2018.We have corrected the presentation of our comprehensive (loss) earnings in the accompanying Condensed Consolidated Statements of Comprehensive (Loss) Earnings. The correction resulted in (i) an increase in the reclassification adjustments for unrealized gains and losses on unconsolidated affiliates, net of tax, included in net earnings, (ii) a decrease in comprehensive loss and (iii) an increase in comprehensive earnings attributable to Cannae Holdings, Inc. of $16.7 million. Earnings from continuing operations, net earnings and earnings per share for the three and six months ended June 30, 2018 were not affected by the error.

In accordance with accounting guidance found in ASC Topic 250-10 Accounting Changes and Error Corrections (SEC Staff Accounting Bulletin Topic 1M), we assessed the materiality of the errors from quantitative and qualitative perspectives and concluded that the errors were not material, individually or in the aggregate, to any of our previously issued financial statements on Form 10-Q. Consequently, we are correcting these errors in this report and will also correct these errors prospectively in our subsequent quarterly filings on Form 10-Q.

Note B — Leases

We adopted Topic 842 on January 1, 2019 using a modified retrospective approach. Prior year periods continue to be reported under Accounting Standards Codification ("ASC") Topic 840. See Note A for further discussion of the current period effects of adoption of ASU No. 2016-02 Leases (Topic 842).

We are party to operating lease arrangements primarily for leased real estate for restaurants and office space. Right-of-use assets and lease liabilities related to operating leases under ASC 842 are recorded at commencement when we are party to a contract which conveys the right for the Company to control an asset for a specified period of time. We are not a party to any material contracts considered finance leases. Right-of-use assets and lease liabilities related to operating leases are recorded as Lease assets and Lease liabilities, respectively, on the Condensed Consolidated Balance Sheets as of June 30, 2019.

Our material operating leases range in term from one year to nineteen years. As of June 30, 2019, the weighted-average remaining lease term of our operating leases was eight years. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term.

Our lease agreements do not contain any material buyout options, residual value guarantees or restrictive covenants.

Most of our leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of lease renewal options is at our sole discretion. We include options to renew, not to exceed a total lease term of twenty years, in our measurement of right-of-use assets and lease liabilities when they are considered reasonably certain of exercise. We consider a lease probable for renewal when the duration of the lease extensions are in the foreseeable future and related to assets for which will be reasonably assured of continued use.

Excluding certain immaterial classes of leases in our Restaurant Group, we do not separate lease components from nonlease components for any of our right of use assets.

Our operating lease liabilities are determined by discounting future lease payments using a discount rate which represents our best estimate of the incremental borrowing rate our subsidiaries would have to pay to borrow money to finance the asset over the underlying lease term and for an amount equal to the lease payments. Our discount rate is based on interest rates associated with comparable public company secured debt for companies similar to our operating subsidiaries and of similar duration to the underlying lease. As of June 30, 2019, the weighted-average discount rate used to determine our operating lease liabilities was 7.76%.

In our Restaurant Group, lease costs directly attributable to restaurant operations, primarily for real estate and to a lesser extent certain restaurant equipment, are included in Cost of restaurant revenue on the Condensed Consolidated Statements of Operations. Lease costs not directly attributable to cost of goods or services is included in Other operating expense on the Condensed Consolidated Statements of Operations.

9

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Our operating lease costs for the three and six months ended June 30, 2019 consist of:

		Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Lease Cost	Classification	(in millions)
Operating lease cost	Cost of restaurant revenue	$	13.7	$	28.3
	Other operating expense	$	0.2	$	0.3
Total operating lease cost		$	13.9	$	28.6

We do not have any material short term lease costs, variable lease costs, or sublease income.

Future payments under operating lease arrangements accounted for under ASC Topic 842 are as follows (in millions):

2019 (remaining)	$	30.7
2020	59.3
2021	53.0
2022	41.9
2023	35.1
Thereafter	137.4
Total lease payments, undiscounted	$	357.4
Less: discount	96.4
Total operating lease liability as of June 30, 2019, at present value	$	261.0
Less: operating lease liability as of June 30, 2019, current	43.0
Operating lease liability as of June 30, 2019, long term	$	218.0

Future payments under operating lease arrangements accounted for under ASC Topic 840 as of December 31, 2018 are as follows (in millions):

2019	$	62.0
2020	57.7
2021	51.3
2022	40.7
2023	34.1
Thereafter	133.2
Total future minimum operating lease payments	$	379.0

10

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Note C — Fair Value Measurements

The fair value hierarchy established by the accounting standards on fair value measurements includes three levels which are based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities that are recorded in the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1.  Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access.

Level 2.  Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability.

Level 3.  Financial assets and liabilities whose values are based on model inputs that are unobservable.

Recurring Fair Value Measurements

The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, respectively:

	June 30, 2019
	Level 1		Level 2		Level 3		Total
	(In millions)
Fixed-maturity securities available for sale:
Corporate debt securities	$	—	$	—	$	17.7	$	17.7
Total	$	—	$	—	$	17.7	$	17.7

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(In millions)
Fixed-maturity securities available for sale:
Corporate debt securities	$	—	$	—	$	17.8	$	17.8
Total	$	—	$	—	$	17.8	$	17.8

Our Level 3 fair value measurement for our fixed maturity securities available for sale are provided by a single third-party pricing service. Depending on security specific characteristics, either a combination of an income and net recovery approach or a contingent claims approach was utilized in determining fair value of our Level 3 fixed-maturity securities available for sale. Discount rates are the primary unobservable inputs utilized for the securities valued using a combination of an income and net recovery approach. The discount rates used are based on company-specific risk premiums, public company comparable securities, and leveraged loan indices. The discount rates used in our determination of the fair value of our Level 3 fixed-maturity securities available for sale varies by security type and ranged from 15.8% to 17.0% as of June 30, 2019 and a weighted average based on relative fair value of the underlying securities of 17.0%. Based on the total fair value of our Level 3 fixed-maturity securities available for sale as of June 30, 2019, changes in the discount rate utilized will not result in a fair value significantly different or material to the Company's financial position or results of operation than the amount recorded.

11

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three and six months ended June 30, 2019 and 2018 (in millions).

	Three months ended June 30, 2019		Three months ended June 30, 2018
	Corporate debt		Corporate debt
	securities		securities
Fair value, beginning of period	$	17.5	$	21.4
Paid-in-kind dividends (1)	0.1		0.1
Accretion of original purchase discount (1)	—		0.2
Net valuation gain (loss) included in other comprehensive earnings (2)	0.1		(0.1		)
Fair value, end of period	$	17.7	$	21.6

	Six months ended June 30, 2019			Six months ended June 30, 2018
	Corporate debt			Corporate debt
	securities			securities
Fair value, beginning of period	$	17.8		$	—
Transfers from Level 2	—			21.4
Paid-in-kind dividends (1)	0.1			0.1
Accretion of original purchase discount (1)	—			0.2
Impairment (1)	(0.4		)	—
Net valuation gain (loss) included in other comprehensive earnings (2)	0.2			(0.1		)
Fair value, end of period	$	17.7		$	21.6

_____________________________________

(1) Included in Interest, investment and other income on the Condensed Consolidated Statements of Operations

(2) Included in Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on the Condensed Consolidated Statements of Comprehensive Earnings

Transfers into or out of the Level 3 fair value category occur when unobservable inputs become more or less significant to the fair value measurement or upon a change in valuation technique. For the six months ended June 30, 2018, transfers between Level 2 and Level 3 were based on changes in significance of unobservable inputs used associated with a change in the service provider and in the valuation technique used to value our corporate debt securities. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period in which they occur. There were no transfers between Level 2 and Level 3 in the three and six months ended June 30, 2019 and three months ended June 30, 2018, respectively.

All of the unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on our Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 relate to fixed maturity securities considered Level 3 fair value measures.

Additional information regarding the fair value of our investment portfolio is included in Note D.

The carrying amounts of trade receivables and notes receivable approximate fair value due to their short-term nature. The fair value of our notes payable is included in Note F.

12

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Note D — Investments

Available for Sale Securities

 The carrying amounts and fair values of our available for sale securities at June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019
	Carrying Value		Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
	(In millions)
Fixed maturity securities available for sale:
Corporate debt securities	$	17.7	$	19.0	$	0.6	$	(1.9	)	$	17.7
Total	$	17.7	$	19.0	$	0.6	$	(1.9	)	$	17.7

	December 31, 2018
	Carrying Value		Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
	(In millions)
Fixed maturity securities available for sale:
Corporate debt securities	$	17.8	$	18.8	$	0.9	$	(1.9	)	$	17.8
Total	$	17.8	$	18.8	$	0.9	$	(1.9	)	$	17.8

 

The cost basis of fixed maturity securities available for sale includes an adjustment for amortized premium or discount and other-than-temporary-impairment recognized in earnings since the date of purchase.

As of June 30, 2019 the fixed maturity securities in our investment portfolio had a maturity of greater than one year but less than five years. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Net unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 were as follows (in millions):

June 30, 2019	12 Months or Longer
	Fair		Unrealized
	Value		Losses
Corporate debt securities	$	10.1	$	(1.9	)
Total temporarily impaired securities	$	10.1	$	(1.9	)

December 31, 2018	Less than 12 Months
	Fair		Unrealized
	Value		Losses
Corporate debt securities	$	10.4	$	(1.9	)
Total temporarily impaired securities	$	10.4	$	(1.9	)

During the six months ended June 30, 2019, we incurred $0.4 million of other-than-temporary impairment charges relating to corporate debt securities which is included in Realized gains, net on the Condensed Consolidated Statements of Operations. The impairment recorded relates to a corporate debt holding which has experienced a prolonged period of declining earnings and which we are uncertain of our ability to recover our initial investment. All of the loss represents credit loss recognized in earnings and no portion of the loss was included in other comprehensive earnings. During the three months ended June 30, 2019 and three and six months ended June 30, 2018, we incurred no other-than-temporary impairment charges relating to investment securities.

During the six months ended June 30, 2018, we sold equity securities for gross proceeds of $17.7 million, resulting in realized gains of less than $0.1 million.

13

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

As of June 30, 2019, we held $2.0 million of corporate debt securities for which an other-than-temporary impairment had been previously recognized. It is possible that future events may lead us to recognize potential future impairment losses related to our investment portfolio and that unanticipated future events may lead us to dispose of certain investment holdings and recognize the effects of any market movements in our results of operations.

Investments in Unconsolidated Affiliates

Investments in unconsolidated affiliates recorded using the equity method of accounting as of June 30, 2019 and December 31, 2018 consisted of the following (in millions):

	Ownership at June 30, 2019		June 30, 2019		December 31, 2018
Ceridian	21.7	%	$	380.5	$	359.7
Dun & Bradstreet (defined below)	24.3	%	497.5		—
Other	various		35.3		37.5
Total			$	913.3	$	397.2

Equity in earnings (losses) of unconsolidated affiliates for the three and six months ended June 30, 2019 and June 30, 2018 consisted of the following (in millions):

	Three months ended June 30, 2019			Three months ended June 30, 2018			Six months ended June 30, 2019			Six months ended June 30, 2018
Ceridian	$	1.4		$	(19.7	)	$	4.0		$	(21.6	)
Dun & Bradstreet (defined below)	(24.2		)	—			(24.2		)	—
Other	0.4			0.1			0.7			0.9
Total	$	(22.4	)	$	(19.6	)	$	(19.5	)	$	(20.7	)

14

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Ceridian

Based on quoted market prices, the aggregate value of our ownership of Ceridian common stock is $1.5 billion as of June 30, 2019.

Summarized financial information for Ceridian for the relevant dates and time periods included in Investments in unconsolidated affiliates and Equity in earnings (losses) of unconsolidated affiliates in our Condensed Consolidated Balance Sheets and Statements of Operations, respectively, is presented below. LifeWorks Corporation Ltd. ("LifeWorks"), a former subsidiary of Ceridian, was distributed pro-rata to Ceridian shareholders contemporaneously with Ceridian's initial public offering in April 2018. On July 27, 2018, LifeWorks was sold. The results of Ceridian for the three and six months ended June 30, 2018 have been adjusted to remove the effects of the discontinued operations of LifeWorks as well as to reflect Ceridian's retrospective adoption of ASC Topic 606 and certain other accounting standards.

	June 30, 2019		December 31, 2018
	(In millions)
Total current assets before customer funds	$	365.1	$	330.6
Customer funds	3,986.7		2,603.5
Goodwill and other intangible assets, net	2,132.7		2,114.9
Other assets	244.8		198.8
Total assets	$	6,729.3	$	5,247.8
Current liabilities before customer obligations	$	129.8	$	149.9
Customer obligations	3,963.5		2,619.7
Long-term obligations, less current portion	660.7		663.5
Other long-term liabilities	218.2		199.2
Total liabilities	4,972.2		3,632.3
Equity	1,757.1		1,615.5
Total liabilities and equity	$	6,729.3	$	5,247.8

	Three months ended June 30, 2019		Three months ended June 30, 2018			Six months ended June 30, 2019		Six months ended June 30, 2018
	(In millions)					(In millions)
Total revenues	$	196.3	$	179.0		$	400.0	$	367.8
Earnings (loss) before income taxes	8.7		(52.4		)	25.6		(44.4		)
Earnings (loss) before discontinued operations	6.3		(53.6		)	17.5		(51.4		)
Net earnings (loss) attributable to Ceridian	6.3		(63.3		)	17.5		(62.7		)

Dun & Bradstreet

On February 8, 2019, we closed on our previously announced acquisition of DNB (the "DNB Acquisition"). The DNB Acquisition was financed through a combination of $2.1 billion of common equity financing provided to DNB's ultimate parent and acquirer Star Parent, L.P. ("Star") by a consortium of investors including Cannae and various other investors, $1.1 billion of preferred equity in a wholly-owned subsidiary of Star from various sources and $4.0 billion of debt financing from various lenders. The proceeds were used by Star and its subsidiaries to purchase DNB (collectively with Star and its subsidiaries, "Dun & Bradstreet") .

Of our previously disclosed $900.0 million commitment to purchase common equity of Star, we retained and funded a $505.6 million investment (the "Dun & Bradstreet Investment"), representing 24.5% of the outstanding common equity of Dun & Bradstreet, and syndicated the remainder to other investors. We funded the Dun & Bradstreet Investment through a combination of cash on hand and borrowings on the Margin Loan and FNF Revolver. On the closing date, we recorded income of $9.1 million for syndication fees from DNB which is recorded in Other income in our Condensed Consolidated Statement of Operations for the six months ended June 30, 2019. We also recorded a reduction in our investment of $2.9 million for our ratable portion of the syndication fees capitalized as equity issuance costs by Dun & Bradstreet.

15

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

In April 2019, we syndicated an additional $2.6 million of our Dun & Bradstreet Investment to other investors resulting in a reduction in the Company's ownership to 24.3% of the outstanding common equity of Dun & Bradstreet.

On June 27, 2019, we made an additional pro-rata investment of $23.5 million in Dun & Bradstreet. Dun & Bradstreet used the proceeds to partially fund its acquisition of Lattice (see Note A).

Summarized financial information for Dun & Bradstreet for the relevant dates and time periods included in Investments in unconsolidated affiliates and Equity in earnings (losses) of unconsolidated affiliates in our Condensed Consolidated Balance Sheets and Statements of Operations, respectively, is presented below. We report our equity in earnings or loss of Dun & Bradstreet on a one quarter lag. Accordingly, our net earnings for the three and six month periods ended June 30, 2019, include the Company’s equity in Dun & Bradstreet’s losses for the period from February 8, 2019 through March 31, 2019.

	March 31, 2019
	(In millions)
Total current assets	$	420.7
Goodwill and other intangible assets, net	8,285.7
Other assets	454.6
Total assets	$	9,161.0
Current liabilities	$	778.0
Long-term debt	3,821.0
Other non-current liabilities	1,636.5
Total liabilities	6,235.5
Preferred equity	1,028.4
Partner's capital	1,897.1
Total liabilities and equity	$	9,161.0

	Period from February 8, 2019 to March 31, 2019
	(In millions)
Total revenues	$	174.1
Loss before income taxes	(111.6		)
Net loss	(81.1		)
Dividends attributable to preferred stock and noncontrolling interest expense	(18.3		)
Net loss attributable to Dun & Bradstreet	(99.4		)

16

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Note E — Inventory

Inventory consists of the following:

	June 30, 2019			December 31, 2018
	(In millions)
Bakery inventory:
Raw materials	$	6.3		$	6.8
Semi-finished and finished goods	16.2			5.6
Packaging	1.7			2.4
Obsolescence reserve	(1.0		)	(3.0		)
Total bakery inventory	23.2			11.8
Other restaurant-related inventory	9.0			10.3
Other	0.3			0.2
Total inventory	$	32.5		$	22.3

Note F — Notes Payable

Notes payable consists of the following:

	June 30, 2019		December 31, 2018
	(In millions)
99 Term Loan	$	33.7	$	36.1
99 Revolver	3.0		—
99 DLOC Loan	—		—
Margin Facility	150.0		—
Brasada Interstate Loans	11.7		11.7
Other	2.7		0.3
Notes payable, total	$	201.1	$	48.1
Less: Notes payable, current	5.9		5.9
Notes payable, long term	$	195.2	$	42.2

At June 30, 2019 the carrying value of our outstanding notes payable approximates fair value. The respective carrying values of our variable rate notes payable approximate fair value as they are variable rate instruments with short reset periods which reflect current market rates. The revolving credit facilities are considered Level 2 financial liabilities. The fixed-rate A Note, as defined below, pursuant to the Interstate Credit Agreement approximates fair value as of June 30, 2019.

On December 21, 2018, 99 Restaurants LLC, a direct, wholly-owned subsidiary of 99 Restaurants entered into the 99 Restaurants Credit Facility with Fifth Third Bank and other lenders thereto. The 99 Restaurants Credit Facility provides for (i) a maximum revolving loan of $15.0 million (the “99 Revolver”) with a maturity date of December 21, 2023; (ii) a maximum term loan of $37.0 million (the "99 Term Loan") with monthly installment repayments through November 30, 2023 and a maturity date of December 21, 2023 for the outstanding unpaid principal balance; and (iii) a maximum Development Line of Credit loan (the “99 DLOC Loan”) of up to $10.0 million to be advanced from time to time through December 21, 2020, with quarterly installment payments through (a) September 30, 2024 with respect to 99 DLOC Loans borrowed prior to December 21, 2019, and (b) September 30, 2025 with respect to 99 DLOC Loans borrowed on or after December 21, 2019. Interest on the 99 Credit Facility is based on, at our option, an applicable margin of (x) two and one half percent (2.50%) per annum with respect to Base Rate Loans, as provided therein, and (y) three and one half percent (3.50%) per annum with respect to LIBOR Loans, as provided therein. As of June 30, 2019, interest on the 99 Term Loan and 99 Revolver is payable monthly at a rate of 6.00% and 5.88%, respectively, and there is $22.0 million of borrowing capacity combined under the 99 Revolver and DLOC Loans.

On November 7, 2018, Cannae Funding, LLC (the "Borrower"), a wholly-owned special purpose subsidiary of the Company, entered into a Margin Loan Agreement (the "Loan Agreement"), and certain other related agreements, with Credit Suisse AG (in

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such capacity, "Administrative Agent") and other lenders thereto. Pursuant to the Loan Agreement, the Borrower may borrow up to $300.0 million (the "Margin Facility") in term loans at an interest rate of the three-month LIBOR plus an applicable margin with an initial maturity date of November 7, 2021. Interest on term loans under the Margin Facility is payable in-kind or cash at the Borrower's election. The Margin Facility is collateralized by 25.0 million shares of Ceridian held by the Borrower prior to any draws under the Margin Facility. On February 7, 2019, we borrowed $150 million under the Margin Facility and used the proceeds to fund, in part, the Dun & Bradstreet Investment. As of June 30, 2019, we pay interest on borrowings outstanding quarterly at a rate of 5.35% and there is $150 million available to be drawn pursuant to the Margin Facility.

Concurrently with the Loan Agreement, the Company entered into a Guaranty (the "Guaranty Agreement") in favor of the Administrative Agent and other lenders thereto pursuant to which the Company absolutely, unconditionally and irrevocably guaranteed all of the Borrower's obligations under the Loan Agreement for a period of up to one year after the conditions to the effectiveness of the Loan Agreement have been met. During the period in which the Guaranty Agreement is enforceable, the Company will be liable for all obligations payable by the Borrower under the Loan Agreement and other agreements entered into in connection therewith.

On January 29, 2016, FNF NV Brasada, LLC, an Oregon limited liability company and majority-owned subsidiary of the Company, entered into a credit agreement with an aggregate borrowing capacity of $17.0 million (the “Interstate Credit Agreement”) originally with Bank of the Cascades, as lender. The Interstate Credit Agreement provides for (i) a $12.5 million acquisition loan (the "Acquisition Loan"), (ii) a $3.0 million development loan (the "Development Loan"), and (iii) a $1.5 million line of credit loan (the "Line of Credit Loan", and collectively with the Acquisition Loan and the Development Loan, the "Brasada Interstate Loans"). On June 13, 2018, the Interstate Credit Agreement was modified to add an additional line of credit of $3.6 million and to assign the loan from the Bank of the Cascades to First Interstate Bank. Pursuant to the Acquisition Loan, NV Brasada executed a $6.25 million "A Note", which accrues interest at a rate of 4.51% per annum and matures on the tenth anniversary of the issuance thereof, and a $6.25 million "B Note", which accrues interest at the rate of LIBOR plus 225 basis points, adjusted monthly, and matures on the tenth anniversary of the issuance thereof. As of June 30, 2019, the variable rate notes incurred interest at 4.69% and there was $4.4 million available to be drawn pursuant to the Brasada Interstate Loans.

Note payable to FNF

On November 17, 2017, in conjunction with the FNF Split-Off, FNF issued to the Company a revolver note in aggregate principal amount of up to $100.0 million (the "FNF Revolver"). Pursuant to the FNF Revolver, FNF may make one or more loans to us in increments of $1.0 million, with up to $100.0 million outstanding at any time. The FNF Revolver accrues interest at LIBOR plus 450 basis points and matures on the five year anniversary of the date we were issued the FNF Revolver. The maturity date is automatically extended for additional five year terms unless notice of non-renewal is otherwise provided by either FNF or the Company, in their sole discretion. On February 7, 2019, we drew the entire $100.0 million available and used the proceeds to fund, in part, the Dun & Bradstreet Investment. On June 12, 2019, we repaid to FNF the entire $100.0 million outstanding amount under the FNF Revolver. As of June 30, 2019, there was no outstanding balance under the FNF Revolver and there was $100.0 million remaining borrowing capacity.

On July 5, 2019, we borrowed $100.0 million from FNF under the FNF Revolver. The proceeds were used for investment and general corporate purposes.

Gross principal maturities of notes payable at June 30, 2019 are as follows (in millions):

2019 (remaining)	$	3.4
2020	6.9
2021	156.1
2022	6.1
2023	19.4
Thereafter	10.2
	$	202.1

Note G — Commitments and Contingencies

Legal Contingencies

In the ordinary course of business, we are involved in various pending and threatened litigation and regulatory matters related to our operations, some of which include claims for punitive or exemplary damages. Our ordinary course litigation includes

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purported class action lawsuits, which make allegations related to various aspects of our business. From time to time, we also receive requests for information from various state and federal regulatory authorities, some of which take the form of civil investigative demands or subpoenas. Some of these regulatory inquiries may result in the assessment of fines for violations of regulations or settlements with such authorities requiring a variety of remedies. We believe that no actions, other than those discussed below, if any, depart from customary litigation or regulatory inquiries incidental to our business.

Our Restaurant Group companies are a defendant from time to time in various legal proceedings arising in the ordinary course of business, including claims relating to injury or wrongful death under “dram shop” laws that allow a person to sue us based on any injury caused by an intoxicated person who was wrongfully served alcoholic beverages at one of the restaurants; individual and purported class or collective action claims alleging violation of federal and state discrimination, wage and hour and other employment, franchise and other laws; and claims from guests or employees alleging illness, injury or other food quality, health or operational concerns. Our Restaurant Group companies are also subject to compliance with extensive government laws and regulations related to employment practices and policies and the manufacture, preparation, and sale of food and alcohol. We may also become subject to lawsuits and other proceedings, as well as card network fines and penalties, arising out of the actual or alleged theft of our customers' credit or debit card information.

We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate is recorded. As of June 30, 2019 and December 31, 2018, we had $0.4 million and $0.5 million, respectively, accrued for legal proceedings. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period in the event of an unfavorable outcome, at present, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations or cash flows.

Unconditional Purchase Obligations

The Restaurant Group has unconditional purchase obligations with various vendors.  These purchase obligations are primarily food and beverage obligations with fixed commitments in regards to the time period of the contract and the quantities purchased with annual price adjustments that can fluctuate. We used both historical and projected volume and pricing as of June 30, 2019 to determine the amount of the obligations.

Purchase obligations as of June 30, 2019 are as follows (in millions):

2019 (remaining)	$	87.2
2020	67.4
2021	43.7
2022	4.4
2023	3.0
Thereafter	6.9
Total purchase commitments	$	212.6

Note H — Segment Information

Summarized financial information concerning our reportable segments is shown in the following tables.

Due to the July 2018 sale of LifeWorks discussed Note D, the results of Ceridian for the three and six months ended June 30, 2018 have been adjusted to remove the effects of the discontinued operations of LifeWorks as well as to reflect Ceridian's retrospective adoption of ASC Topic 606 and certain other accounting standards.

On February 8, 2019, the DNB Acquisition closed. Our chief operating decision maker reviews the full financial results of Dun & Bradstreet for purposes of assessing performance and allocating resources. Accordingly, we consider Dun & Bradstreet a reportable segment and have included the full results of Dun & Bradstreet subsequent to the DNB Acquisition, on a one quarter lag, in the tables below. See below for further discussion of Dun & Bradstreet and our accounting for our related investment.

As of and for the three months ended June 30, 2019:

	Restaurant Group			T-System			Ceridian			Dun & Bradstreet			Corporate and Other			Ceridian and Dun & Bradstreet Elimination			Total
	(in millions)
Restaurant revenues	$	266.5		$	—		$	—		$	—		$	—		$	—		$	266.5
Other operating revenues	—			12.9			196.3			174.1			5.7			(370.4		)	18.6
Revenues from external customers	266.5			12.9			196.3			174.1			5.7			(370.4		)	285.1
Interest, investment and other income, including realized gains and losses	2.8			(0.5		)	—			—			73.6			—			75.9
Total revenues and other income	269.3			12.4			196.3			174.1			79.3			(370.4		)	361.0
Depreciation and amortization	9.4			3.4			14.6			80.5			0.5			(95.1		)	13.3
Interest expense	(1.5		)	(1.4		)	(8.5		)	(49.1		)	(2.6		)	57.6			(5.5		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(11.6		)	(5.0		)	8.7			(111.6		)	62.5			102.9			45.9
Income tax (benefit) expense	—			(1.2		)	2.4			(30.5		)	9.7			28.1			8.5
(Loss) earnings, before equity in earnings (losses) of unconsolidated affiliates	(11.6		)	(3.8		)	6.3			(81.1		)	52.8			74.8			37.4
Equity in earnings (losses) of unconsolidated affiliates	—			—			—			—			0.4			(22.8		)	(22.4		)
Net (loss) earnings	$	(11.6	)	$	(3.8	)	$	6.3		$	(81.1	)	$	53.2		$	52.0		$	15.0
Assets	$	636.2		$	202.9		$	6,729.3		$	9,161.0		$	1,033.3		$	(15,890.3	)	$	1,872.4
Goodwill	76.5			88.3			1,952.8			2,797.6			—			(4,750.4		)	164.8

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As of and for the three months ended June 30, 2018:

	Restaurant Group			T-System			Ceridian			Corporate and Other		Ceridian Elimination			Total
	(in millions)
Restaurant revenues	$	276.2		$	—		$	—		$	—	$	—		$	276.2
Other operating revenues	—			14.8			179.0			11.3		(179.0		)	26.1
Revenues from external customers	276.2			14.8			179.0			11.3		(179.0		)	302.3
Interest investment and other income, including realized gains and losses	1.4			—			—			66.7		—			68.1
Total revenues and other income	277.6			14.8			179.0			78.0		(179.0		)	370.4
Depreciation and amortization	10.7			3.7			14.2			0.5		(14.2		)	14.9
Interest expense	(3.8		)	(1.5		)	(43.4		)	5.1		43.4			(0.2		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(5.9		)	(2.6		)	(52.4		)	8.3		52.4			(0.2		)
Income tax (benefit) expense	—			(0.5		)	1.2			3.1		(1.2		)	2.6
(Loss) earnings before equity in earnings (losses) of unconsolidated affiliates	(5.9		)	(2.1		)	(53.6		)	5.2		53.6			(2.8		)
Equity in earnings (losses) of unconsolidated affiliates	—			—			—			0.1		(19.7		)	(19.6		)
Net (loss) earnings	$	(5.9	)	$	(2.1	)	$	(53.6	)	$	5.3	$	33.9		$	(22.4	)
Assets	$	477.5		$	221.9		$	6,319.7		$	660.5	$	(6,319.7	)	$	1,359.9
Goodwill	103.1			98.9			1,942.6			—		(1,942.6		)	$	202.0

As of and for the six months ended June 30, 2019:

	Restaurant Group			T-System			Ceridian			Dun & Bradstreet			Corporate and Other			Ceridian and Dun & Bradstreet Elimination			Total
	(in millions)
Restaurant revenues	$	524.3		$	—		$	—		$	—		$	—		$	—		$	524.3
Other operating revenues	—			25.1			400.0			174.1			10.2			(574.1		)	35.3
Revenues from external customers	524.3			25.1			400.0			174.1			10.2			(574.1		)	559.6
Interest, investment and other income, including realized gains and losses	3.5			(0.5		)	—			—			85.5			—			88.5
Total revenues and other income	527.8			24.6			400.0			174.1			95.7			(574.1		)	648.1
Depreciation and amortization	19.1			6.9			29.0			80.5			1.2			(109.5		)	27.2
Interest expense	(2.5		)	(2.8		)	(17.4		)	(49.1		)	(3.9		)	66.5			(9.2		)
(Loss) earnings before income taxes and equity in earnings of unconsolidated affiliates	(19.7		)	(9.9		)	25.6			(111.6		)	69.8			86.0			40.2
Income tax (benefit) expense	(0.1		)	(2.4		)	8.1			(30.5		)	6.2			22.4			3.7
(Loss) earnings, before equity in earnings (losses) of unconsolidated affiliates	(19.6		)	(7.5		)	17.5			(81.1		)	63.6			63.6			36.5
Equity in (losses) earnings of unconsolidated affiliates	—			—			—			—			0.7			(20.2		)	(19.5		)
Net (loss) earnings	$	(19.6	)	$	(7.5	)	$	17.5		$	(81.1	)	$	64.3		$	43.4		$	17.0
Assets	$	636.2		$	202.9		$	6,729.3		$	9,161.0		$	1,033.3		$	(15,890.3	)	$	1,872.4
Goodwill	76.5			88.3			1,952.8			2,797.6			—			(4,750.4		)	164.8

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As of and for the six months ended June 30, 2018:

	Restaurant Group			T-System			Ceridian			Corporate and Other			Ceridian Elimination			Total
	(in millions)
Restaurant revenues	$	550.0		$	—		$	—		$	—		$	—		$	550.0
Other operating revenues	—			30.2			367.8			14.5			(367.8		)	44.7
Revenues from external customers	550.0			30.2			367.8			14.5			(367.8		)	594.7
Interest investment and other income, including realized gains and losses	1.4			—			—			68.0			—			69.4
Total revenues and other income	551.4			30.2			367.8			82.5			(367.8		)	664.1
Depreciation and amortization	21.4			7.3			28.1			0.5			(28.1		)	29.2
Interest expense	(7.5		)	(1.5		)	(65.6		)	5.8			65.6			(3.2		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(15.2		)	(3.4		)	(44.4		)	8.7			44.4			(9.9		)
Income tax (benefit) expense	—			(2.3		)	7.0			(0.6		)	(7.0		)	(2.9		)
(Loss) earnings before equity in earnings (losses) of unconsolidated affiliates	(15.2		)	(1.1		)	(51.4		)	9.3			51.4			(7.0		)
Equity in earnings (losses) of unconsolidated affiliates	0.1			—			—			0.8			(21.6		)	(20.7		)
Net (loss) earnings	$	(15.1	)	$	(1.1	)	$	(51.4	)	$	10.1		$	29.8		$	(27.7	)
Assets	$	477.5		$	221.9		$	6,319.7		$	660.5		$	(6,319.7	)	$	1,359.9
Goodwill	103.1			98.9			1,942.6			—			(1,942.6		)	$	202.0

The activities in our segments include the following:

• Restaurant Group. This segment consists of the operations of ABRH and 99 Restaurants, in which we have 65.4% and 88.5% ownership interests, respectively. ABRH and its affiliates are the owners and operators of the O'Charley's, Village Inn and Bakers Square food service and restaurant concepts, as well as the Legendary Baking bakery operation. 99 Restaurants and its affiliates are the owners and operators of Ninety Nine Restaurants restaurant concept.

• Ceridian. This segment consists of our 21.7% ownership interest in Ceridian. Ceridian, through its operating subsidiary, is a global company that offers a broad range of services and software designed to help employers more effectively manage employment processes, such as payroll, payroll related tax filing, human resource information systems, employee self-service, time and labor management, employee assistance and work-life programs, and recruitment and applicant screening. Ceridian's cloud offering, Dayforce, is a cloud solution that meets HCM needs with one employee record and one user experience throughout the application. Dayforce enables organizations to process payroll, maintain human resources records, manage benefits enrollment, schedule staff, and find and hire personnel, while monitoring compliance throughout the employee life cycle. Our chief operating decision maker reviews the full financial results of Ceridian for purposes of assessing performance and allocating resources. Thus, we consider Ceridian a reportable segment and have included the full financial results of Ceridian in the table above. We account for our investment in Ceridian under the equity method of accounting and therefore its results of operations do not consolidate into ours. Accordingly, we have presented the elimination of Ceridian's results in the Ceridian and Dun & Bradstreet Elimination section of the segment presentation above.

• Dun & Bradstreet. This segment consists of our 24.3% ownership interest in Dun & Bradstreet. Dun & Bradstreet helps companies around the world improve their business performance and it gleans insight from data to enable its customers to connect with the prospects, suppliers, clients and partners that matter most to them. Companies of every size rely on Dun & Bradstreet to help them manage risk and reveal opportunity. Dun & Bradstreet's global commercial database as of December 31, 2018 contained more than 300 million business records. Dun & Bradstreet transforms commercial data into valuable insight which is the foundation of its global solutions that customers rely on to make critical business decisions. Dun & Bradstreet provides solution sets that meet a diverse set of customer needs globally. Customers use Risk Management Solutions™ to mitigate credit, compliance and supplier risk, increase cash flow and drive increased profitability. Dun & Bradstreet's Sales & Marketing Solutions™ help customers better use data to grow sales, digitally engage with customers and prospects, improve marketing effectiveness and also for data management capabilities that provide effective and cost efficient marketing solutions to increase revenue from new and existing customers. Our chief operating decision maker reviews the full financial results of Dun & Bradstreet for purposes of assessing performance and allocating resources. Thus, we consider Dun & Bradstreet a reportable segment and have included the full results of

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Dun & Bradstreet subsequent to the DNB Acquisition in the tables above. We account for Dun & Bradstreet using the equity method of accounting, and therefore its results do not consolidate into ours. Accordingly, we have presented the elimination of Dun & Bradstreet's results in the Ceridian and Dun & Bradstreet Elimination section of the segment presentation above. We account for our proportionate share of equity in Dun & Bradstreet's losses on a one quarter lag. The Company's net earnings and the segment tables above, respectively, for the three and six month periods ended June 30, 2019, include the Company’s equity in Dun & Bradstreet’s losses and complete results of Dun & Bradstreet, respectively, for the period from February 8, 2019 through March 31, 2019.

• T-System. This segment consists of the operations of our 97%-owned subsidiary, T-System, acquired on October 16, 2017. T-System is a provider of clinical documentation and coding solutions to hospital-based and free-standing emergency departments and urgent care facilities. T-System organizes itself into two businesses. The Clinical Documentation business offers software solutions providing clinical staff with full workflow operations that drive documentation completeness and revenue optimization to more than 240 customers at more than 450 customer sites. Additionally, the patented T-Sheet is the industry standard for emergency department documentation, with more than 200 customers at more than 475 customer sites. The Coding Software & Outsourced Solutions business provides a full-service outsourced coding solution as well as a cloud-based software-as-a-service solution for self-service coding. These offerings help more than 75 customers at over 400 sites optimize their revenue cycle workflow and customer revenue reimbursement through improved coding accuracy and compliance and coder productivity compared to in-house coding.

• Corporate and Other. This nonreportable segment consists of our share in the operations of certain controlled portfolio companies and other equity investments, activity of the corporate holding company and certain intercompany eliminations and taxes.

Note I — Supplemental Cash Flow Information

The following supplemental cash flow information is provided with respect to certain cash payments, as well as certain non-cash investing and financing activities.

	Six months ended June 30,
	2019		2018
	(In millions)
Cash paid during the period:
Interest	$	7.5	$	1.3
Income taxes	23.5		—
Operating leases	31.4		—
Non-cash investing and financing activities:
Unsettled purchases of investment securities accrued at period end	$	—	$	3.5

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Note J — Revenue Recognition

Disaggregation of Revenue

Our revenue consists of:

		Three months ended June 30,				Six months ended June 30,
		2019		2018		2019		2018
Revenue Stream	Segment	Total Revenue
Restaurant revenue:		(in millions)
Restaurant sales	Restaurant Group	$	247.7	$	258.3	$	493.0	$	517.5
Bakery sales	Restaurant Group	17.4		16.3		28.4		29.5
Franchise and other	Restaurant Group	1.4		1.6		2.9		3.0
Total restaurant revenue		266.5		276.2		524.3		550.0
Other operating revenue:
T-System, point-in-time	T-System	4.9		5.9		9.7		12.6
T-System, over time	T-System	8.0		8.9		15.4		17.6
Real estate and resort	Corporate and other	5.7		5.4		10.1		8.3
Other	Corporate and other	—		5.9		0.1		6.2
Total other operating revenue		18.6		26.1		35.3		44.7
Total operating revenues		$	285.1	$	302.3	$	559.6	$	594.7

Restaurant revenue consists of restaurant sales, bakery operations, and, to a lesser extent, franchise revenue and other revenue. Restaurant sales include food and beverage sales and gift card breakage, are net of applicable state and local sales taxes and discounts, and are recognized at a point in time as services are performed and goods are provided. Revenue from bakery operations is recognized at a point in time in the period during which the products are shipped and control transfers to the customer. Franchise revenue and other revenue consist of development fees and royalties on sales by franchised units. Initial franchise fees are recognized as income upon commencement of the franchise operation and completion of all material services and conditions by the Company. Royalties are calculated as a percentage of the franchisee sales and recognized in the period in which the sales are generated. Revenue resulting from the sale of gift cards is recognized in the period in which the gift card is redeemed and is recorded as deferred revenue until recognized.

T-System recognizes revenue when a customer obtains control of the promised goods or services. The amount of revenue recognized is determined by the consideration that T-System expects to be entitled to in exchange for the goods and services. T-System's contracts with customers typically do not include variable consideration such as right of return or refund or other form of incentives or considerations payable to customers.

T-System offers a software as a service solution with full-service coding ("RevCycle+") available, through contracts with customers to either provide access to its proprietary coding software platform or provide medical chart coding services. Billing for both services occurs monthly as services are provided. Billing for medical chart coding services is based on a monthly fee which may vary based on the volume of services provided. Revenue for RevCycle+, including implementation and upfront training of customer personnel, is recognized ratably over the term of the contract as services are consumed by the customer.

T-System sells an electronic version of the medical documentation system (“EV”), provided in the form of a non-exclusive license to use the software at the sites under the agreement when the software is made available to the customer. EV contracts with customers can include various combinations of products and services which are generally capable of being distinct and accounted for as separate performance obligations such as software licenses, implementation services, third party interface licenses or subscriptions, hardware, and maintenance (software updates and technical support services). T-System sells software licenses through recurring fixed-term or subscription fee arrangements and one-time perpetual license arrangements (perpetual licenses), and as software as a service solution (cloud solutions). EV term license and perpetual license contracts include performance obligations that are both satisfied at a point in time and over a period of time as goods and services are transferred. T-System also sells legacy medical documentation templates ("T-Sheets") to emergency care providers to be used for documentation of patient care. T-Sheets includes various optional recurring fixed-term or subscription licenses which are recognized over time after access to the template has been delivered to the customer. EV software as a service contracts typically include one stand ready performance obligation to provide subscription services which are satisfied over time. Judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and

23

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

recognized over time. Judgment is required to determine the standalone selling price ("SSP") for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include our pricing strategy and other observable inputs.

T-System typically bills its customers on a monthly or other frequent periodic basis in accordance with the underlying contracts with its customers. We have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers. Revenue is recognized net of any taxes collected from customers.

Other operating revenue consists of income generated by our resort operations which includes sales of real estate, lodging rentals, food and beverage sales, and other income from various resort services offered. Revenue is recognized upon closing of the sale of real estate or once goods and services have been provided and billed to the customer.

Contract Balances

The following table provides information about receivables and deferred revenue:

	June 30,		December 31,
	2019		2018
	(In millions)
Trade receivables, billed (1)	$	25.7	$	40.3
Unbilled accounts receivable, current (1)	7.4		9.5
Unbilled accounts receivable, long term (2)	10.6		10.6
Deferred revenue (contract liabilities)	25.5		31.7

(1) Included in Trade receivables on the Condensed Consolidated Balance Sheets

(2) Included in Other noncurrent assets on the Condensed Consolidated Balance Sheets

Unbilled accounts receivable is recorded primarily for our T-System EV and RevCycle+ revenue related to software, licenses, license implementation (including upfront training) and other performance obligations which are recognized in revenue at a point-in-time upon satisfaction of performance obligations, but collected in cash ratably over the term of the underlying contract.

Deferred revenue is recorded primarily for restaurant gift card sales and certain T-System revenue. The unrecognized portion of such revenue is recorded as Deferred revenue in the Condensed Consolidated Balance Sheets. Revenue of $8.9 million and $22.3 million was recognized in the three and six months ended June 30, 2019, respectively, that was included in Deferred revenue at the beginning of the period.

There was no impairment related to contract balances.

As of June 30, 2019, revenue estimated to be recognized in the future from the Company’s remaining unfulfilled performance obligations is not material.

Note K.  Variable Interest Entities

The Company, in the normal course of business, engages in certain activities that involve variable interest entities ("VIEs"), which are legal entities in which the equity investors as a group lack any of the characteristics of a controlling interest. The primary beneficiary of a VIE is generally the enterprise that has both the power to direct the activities most significant to the economic performance of the VIE and the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. The Company evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. If the Company is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Company is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under accounting standards as deemed appropriate. As of and for the periods ended June 30, 2019 and December 31, 2018 we are not the primary beneficiary of any VIEs.

24

CANNAE HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) — continued

Unconsolidated VIEs

The table below summarizes select information related to variable interests held by the Company as of June 30, 2019 and December 31, 2018, of which we are not the primary beneficiary:

		June 30, 2019				December 31, 2018
		Total Assets		Maximum Exposure		Total Assets		Maximum Exposure
	(in millions)
Investments in unconsolidated affiliates		$	504.9	$	504.9	$	9.2	$	9.2

Investments in Unconsolidated Affiliates

The Company holds variable interests in certain unconsolidated affiliates, outlined in the table above, which are primarily comprised of Dun & Bradstreet (see Note D) and, to a lesser extent, funds that hold minority ownership interests primarily in healthcare-related entities. The principal risk to which these investments and funds are exposed is the credit risk of the underlying investees. We do not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. The assets are included in investments in unconsolidated affiliates on the Condensed Consolidated Balance Sheets and accounted for under the equity method of accounting.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding our expectations, hopes, intentions or strategies regarding the future. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. It is important to note that our actual results could vary materially from those forward-looking statements contained herein due to many factors, including, but not limited to: changes in general economic, business and political conditions, including changes in the financial markets; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; significant competition that our operating subsidiaries face; risks associated with our Split-Off from FNF, including limitations on our strategic and operating flexibility related to the tax-free nature of the Split-Off and the Investment Company Act of 1940 and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of our Annual Report and other filings with the SEC.

The following discussion should be read in conjunction with our Annual Report for the year ended December 31, 2018 and reflects the effects of the immaterial correction of errors discussed in the Revision of Prior Period Financial Statements in Note A to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Report, which is incorporated by reference into this Part I, Item 2.

Overview

For a description of our business, including descriptions of segments and recent business developments, see the discussion under Basis of Financial Statements in Note A to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Report, which is incorporated by reference into this Part I, Item 2.

Business Trends and Conditions

Restaurant Group

The restaurant industry is highly competitive and is often affected by changes in consumer tastes and discretionary spending patterns; changes in general economic conditions; public safety conditions or concerns; demographic trends; weather conditions; the cost of food products, labor, energy and other operating costs; and governmental regulations. Higher labor costs due to state and local minimum wage increases and shopping pattern shifts to e-commerce and “ready to eat” grocery and convenience stores have had a negative impact on restaurant performance, particularly in the casual and family dining restaurants in which the company operates.  

The restaurant industry is also characterized by high capital investments for new restaurants and relatively high fixed or semi-variable restaurant operating expenses.  Because of the high fixed and semi-variable expenses, changes in sales in existing

25

restaurants are generally expected to significantly affect restaurant profitability because many restaurant costs and expenses are not expected to change at the same rate as sales.  Restaurant profitability can also be negatively affected by inflationary and regulatory increases in operating costs and other factors.  The most significant commodities that may affect our cost of food and beverage are beef, seafood, poultry, and dairy, which accounted for approximately half of our overall cost of food and beverage in the past. Generally, temporary increases in these costs are not passed on to guests; however, in the past, we have adjusted menu prices to compensate for increased costs of a more permanent nature.

Average weekly sales per restaurant are typically higher in the first and fourth quarters than in other quarters, and we typically generate a disproportionate share of our earnings from operations in the first and fourth quarters. Holidays, severe weather and other disruptive conditions may impact sales volumes seasonally in some operating regions.

Our revenues in future periods will continue to be subject to these and other factors that are beyond our control and, as a result, are likely to fluctuate.

Ceridian

Ceridian is a global human capital management (“HCM”) software company. Ceridian categorizes its solutions into two categories: Cloud and Bureau solutions. Cloud revenue is generated from HCM solutions that are delivered via two cloud offerings: Dayforce, Ceridian's flagship cloud HCM platform, and Powerpay, a cloud HR and payroll solution for the Canadian small business market.

Dayforce provides HR, payroll, benefits, workforce management, and talent management functionality. Dayforce is used by organizations, regardless of industry or size, to optimize management of the entire employee lifecycle, including attracting, engaging, paying, deploying, and developing their people. Dayforce was built as a single application from the ground up that combines a modern, consumer-grade user experience with proprietary application architecture, including a single employee record and a rules engine spanning all areas of HCM. Dayforce provides continuous real-time calculations across all modules to enable, for example, payroll administrators access to data through the entire pay period, and managers access to real-time data to optimize work schedules. Ceridian's platform is designed to make work life better for our customers and their employees by improving HCM decision-making processes, streamlining workflows, exposing strategic organizational insights, and simplifying legislative compliance. The platform is designed to ease administrative work for both employees and managers.

Ceridian sells Dayforce through its direct sales force on a subscription per-employee, per-month (“PEPM”) basis. Ceridian's subscriptions are typically structured with an initial fixed term of between three and five years, with evergreen renewal thereafter. Dayforce can serve customers of all sizes, ranging from 100 to over 100,000 employees. Ceridian has rapidly grown the Dayforce platform to more than 4,000 live Dayforce customers as of June 30, 2019. For the three and six months ended June 30, 2019, Ceridian added over 155 and 288 net new live Dayforce customers, respectively.

T-System

T-System is a provider of clinical documentation and coding solutions to hospital-based and free-standing emergency departments and urgent care facilities. The healthcare industry is impacted by several factors that can impact the business landscape in which T-System operates. In the past several years health care providers have shown a preference for single IT platforms across all venues. During this same time, there has been a push for interoperability across different healthcare IT systems due to the likelihood that a single patient will have medical information from multiple health care facilities or providers. Healthcare IT systems continue to face rising costs from factors such as legislative and regulatory reform, complex reimbursement models, and difficulties in electronic data exchange. These factors may continue to impact the results of T-System’s operations.

Dun & Bradstreet

In February 2019, we completed our previously announced investment in Dun & Bradstreet. Dun & Bradstreet is a global leader in commercial data and analytics and provides various services to help companies improve their operational performance. See Note D to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report for further discussion.

Dun & Bradstreet helps companies around the world improve their business performance and it gleans insight from data to enable its customers to connect with the prospects, suppliers, clients and partners that matter most to them. Companies of every size rely on Dun & Bradstreet to help them manage risk and reveal opportunity. Dun & Bradstreet's global commercial database as of December 31, 2018 contained more than 300 million business records. Dun & Bradstreet transforms commercial data into valuable insight which is the foundation of its global solutions that customers rely on to make critical business decisions.

Dun & Bradstreet provides solution sets that meet a diverse set of customer needs globally. Customers use Risk Management Solutions™ to mitigate credit, compliance and supplier risk, increase cash flow and drive increased profitability. Dun & Bradstreet's Sales & Marketing Solutions™ help customers better use data to grow sales, digitally engage with customers and prospects,

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improve marketing effectiveness and also for data management capabilities that provide effective and cost efficient marketing solutions to increase revenue from new and existing customers.

Results of Operations

Consolidated Results of Operations
Net Earnings. The following table presents certain financial data for the periods indicated:
	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
	(Dollars in millions)
Revenues:
Restaurant revenue	$	266.5		$	276.2		$	524.3		$	550.0
Other operating revenue	18.6			26.1			35.3			44.7
Total operating revenues	285.1			302.3			559.6			594.7
Operating expenses:
Cost of restaurant revenue	231.6			240.1			458.6			480.9
Personnel costs	30.9			90.3			55.3			114.4
Depreciation and amortization	13.3			14.9			27.2			29.2
Other operating expenses	33.8			25.1			57.6			46.3
Total operating expenses	309.6			370.4			598.7			670.8
Operating loss	(24.5		)	(68.1		)	(39.1		)	(76.1		)
Other income (expense):
Interest, investment and other income	1.4			1.6			12.4			2.9
Interest expense	(5.5		)	(0.2		)	(9.2		)	(3.2		)
Realized gains, net	74.5			66.5			76.1			66.5
Total other income (expense)	70.4			67.9			79.3			66.2
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	45.9			(0.2		)	40.2			(9.9		)
Income tax expense (benefit)	8.5			2.6			3.7			(2.9		)
Earnings (loss) before equity in losses of unconsolidated affiliates	37.4			(2.8		)	36.5			(7.0		)
Equity in losses of unconsolidated affiliates	(22.4		)	(19.6		)	(19.5		)	(20.7		)
Net earnings (loss)	15.0			(22.4		)	17.0			(27.7		)
Less: Net loss attributable to non-controlling interests	(4.5		)	(2.6		)	(7.6		)	(6.8		)
Net earnings (loss) attributable to Cannae Holdings, Inc. common shareholders	$	19.5		$	(19.8	)	$	24.6		$	(20.9	)

 Revenues.

Total revenues decreased $17.2 million, or 5.7% in the three months ended June 30, 2019, and decreased $35.1 million, or 5.9%, in the six months ended June 30, 2019 compared to the corresponding periods in 2018.

Net earnings (loss) attributable to Cannae Holdings, Inc. common shareholders increased $39.3 million, or 198.5%. in the three months ended June 30, 2019, and increased $45.5 million, or 217.7%, in the six months ended June 30, 2019 compared to the corresponding periods in 2018.

The change in revenue and net earnings (loss) is discussed in further detail at the segment level below.    

Expenses.

Our operating expenses consist primarily of cost of restaurant revenue, personnel costs, other operating expenses, and depreciation and amortization.

Cost of restaurant revenue includes cost of food and beverage, primarily the costs of beef, produce, seafood, poultry and alcoholic and non-alcoholic beverages, net of vendor discounts and rebates, payroll and related costs and expenses directly relating to restaurant level activities, and restaurant operating costs including occupancy and other operating expenses at the restaurant level.

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Personnel costs include base salaries, commissions, benefits, stock-based compensation and bonuses paid to employees. Personnel costs that are directly attributable to the operations of the Restaurant Group are included in Cost of restaurant revenue.

Other operating expenses include professional fees, advertising costs and travel expenses.

Depreciation and amortization expense consists of our depreciation related to investments in property and equipment as well as amortization of intangible assets.

The change in expenses from our operating segments is discussed in further detail at the segment level below.

Income tax expense (benefit) was $8.5 million and $2.6 million in the three-month periods ended June 30, 2019 and 2018, respectively, and $3.7 million and $(2.9) million in the six-month periods ended June 30, 2019 and 2018, respectively. Income tax expense (benefit) as a percentage of earnings (loss) from continuing operations before income taxes and equity in unconsolidated affiliates was 18.5% and (1,300.0)% for the three-month periods ended June 30, 2019 and 2018, respectively, and 9.2% and 29.3% for the six-month periods ended June 30, 2019 and 2018, respectively. Income tax expense as a percentage of earnings before income taxes and equity in unconsolidated affiliates fluctuates depending on our estimate of ultimate income tax liability and changes in the characteristics of net earnings, such as the weighting of operating income versus investment income. The change in the effective tax rate in both the three and six-month periods ended June 30, 2019 was attributable to the decreased impact of the tax benefit on losses from investments in unconsolidated affiliates on the pretax earnings in the 2019 period compared to the lower earnings in the same period in 2018. The change in the three-month period was also driven by the decreased impact of permanent items on the pretax earnings.

Equity in earnings (losses) of unconsolidated affiliates for the three and six months ended June 30, 2019 and June 30, 2018 consisted of the following (in millions):

	Three months ended June 30, 2019			Three months ended June 30, 2018			Six months ended June 30, 2019			Six months ended June 30, 2018
Ceridian	$	1.4		$	(19.7	)	$	4.0		$	(21.6	)
Dun & Bradstreet (defined below)	(24.2		)	—			(24.2		)	—
Other	0.4			0.1			0.7			0.9
Total	$	(22.4	)	$	(19.6	)	$	(19.5	)	$	(20.7	)

Restaurant Group

The following table presents the results from operations of our Restaurant Group segment:

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
	(In millions)
Revenues:
Restaurant revenue	$	266.5		$	276.2		$	524.3		$	550.0
Total operating revenues	266.5			276.2			524.3			550.0
Operating expenses:
Cost of restaurant revenue	231.6			240.1			458.6			480.9
Personnel costs	14.5			11.0			27.3			23.0
Depreciation and amortization	9.4			10.7			19.1			21.4
Other operating expenses	23.9			17.9			40.0			33.8
Total operating expenses	279.4			279.7			545.0			559.1
Operating loss	(12.9		)	(3.5		)	(20.7		)	(9.1		)
Other income (expense):
Interest expense	(1.5		)	(3.8		)	(2.5		)	(7.5		)
Realized gains, net	2.8			1.4			3.5			1.4
Total other expense	1.3			(2.4		)	1.0			(6.1		)
Loss before income taxes, equity in earnings (losses) of unconsolidated affiliates and noncontrolling interest	$	(11.6	)	$	(5.9	)	$	(19.7	)	$	(15.2	)

Total revenues for the Restaurant group segment decreased $9.7 million, or 3.5%, in the three months ended June 30, 2019, and decreased $25.7 million, or 4.7%, in the six months ended June 30, 2019 compared to the corresponding periods in 2018.

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The decrease was primarily driven by decreased revenue related to the closing or sale of 47 company-owned restaurants primarily associated with our O'Charley's, Village Inn and Baker's Square concepts subsequent to the prior year periods and to a lesser extent a decrease in comparable store sales. The decrease was partially offset by increases in the average guest check.

Comparable Store Sales. One method we use in evaluating the performance of our restaurants is to compare sales results for restaurants period over period. A new restaurant is included in our comparable store sales figures starting in the first period following the restaurant's first seventy-eight weeks of operations. Changes in comparable store sales reflect changes in sales for the comparable store group of restaurants over a specified period of time. This measure highlights the performance of existing restaurants, as the impact of new restaurant openings is excluded. Comparable store sales for our ABRH and 99 Restaurants companies decreased 1.4% and increased 1.5%, respectively, in the three months ended June 30, 2019 compared to the comparable period in 2018. The decrease at ABRH is primarily attributable to decreased comparable store sales at O'Charley's of 2.4% and Village Inn of 1.0%, partially offset by an increase of 5.2% at our Baker's Square concept.

Cost of restaurant revenue decreased consistently with Restaurant revenues. Cost of restaurant revenue as a percentage of restaurant revenue was 86.9% in the three months ended June 30, 2019 and 2018, respectively, and 87.5% and 87.4% in the six months ended June 30, 2019 and 2018, respectively.

Interest expense decreased $2.3 million, or 60.5%, in the three months ended June 30, 2019, and decreased $5.0 million, or 66.7%, in the six months ended June 30, 2019 from the corresponding periods in 2018. The decrease is attributable to a reorganization of our Restaurant Group in the fourth quarter of 2018 which resulted in the exchange of $100.0 million of debt formerly outstanding at ABRH for additional direct and indirect equity interests in ABRH and 99 Restaurants, partially offset by interest on new credit facilities at 99 Restaurants.

Loss before income taxes increased by $5.7 million, or 96.6%, in the three months ended June 30, 2019, and increased $4.5 million, or 29.6% in the six months ended June 30, 2019, from the corresponding periods in 2018. The increase in loss was primarily attributable to the factors discussed above, as well as to additional personnel expense in the 2019 periods related to termination and severance expenses.

Ceridian

As of June 30, 2019, we own a 21.7% interest in Ceridian. We account for our investment in Ceridian under the equity method of accounting; therefore, its results of operations do not consolidate into ours.

Summarized financial information for Ceridian for the relevant dates and time periods included in Equity in earnings (losses) of unconsolidated affiliates in our Statements of Operations is presented below.

	Three months ended June 30, 2019		Three months ended June 30, 2018			Six months ended June 30, 2019		Six months ended June 30, 2018
	(In millions)
Total revenues	$	196.3	$	179.0		$	400.0	$	367.8
Earnings (loss) before income taxes	8.7		(52.4		)	25.6		(44.4		)
Earnings (loss) before discontinued operations	6.3		(53.6		)	17.5		(51.4		)
Net earnings (loss) attributable to Ceridian	6.3		(63.3		)	17.5		(62.7		)

Details relating to the results of operations of Ceridian (NYSE: "CDAY") can be found in its periodic filings with the SEC.

Dun & Bradstreet

As of June 30, 2019, we own a 24.3% interest in Dun & Bradstreet. We account for the Dun & Bradstreet Investment under the equity method of accounting; therefore, its results of operations do not consolidate into ours.

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Summarized financial information for Dun & Bradstreet for the relevant dates and time periods included in Equity in losses of unconsolidated affiliates in our Statements of Operations is presented below. We report our equity in earnings or loss of Dun & Bradstreet on a one quarter lag. Accordingly, our net earnings for the three and six month periods ended June 30, 2019, include our equity in Dun & Bradstreet’s losses for the period from February 8, 2019, the date we made our initial investment in Dun & Bradstreet, through March 31, 2019.

	Period from February 8, 2019 to March 31, 2019
	(In millions)
Total revenues	$	174.1
Loss before income taxes	(111.6		)
Net loss	(81.1		)
Dividends attributable to preferred stock and noncontrolling interest expense	(18.3		)
Net loss attributable to Dun & Bradstreet	(99.4		)

T-System

The following table presents the results from operations of our T-System segment:

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
	(In millions)						(In millions)
Revenues:
Other operating revenue	$	12.9		$	14.8		$	25.1		$	30.2
Operating expenses:
Personnel costs	7.8			8.5			16.1			17.4
Depreciation and amortization	3.4			3.7			6.9			7.3
Other operating expenses	4.8			3.7			8.7			7.4
Total operating expenses	16.0			15.9			31.7			32.1
Operating loss	(3.1		)	(1.1		)	(6.6		)	(1.9		)
Other expense:
Interest expense	(1.4		)	(1.5		)	(2.8		)	(1.5		)
Realized gains and (losses), net	(0.5		)	—			(0.5		)	—
Total other expense	(1.9		)	(1.5		)	(3.3		)	(1.5		)
Loss before income taxes, equity in losses of unconsolidated affiliates and noncontrolling interest	$	(5.0	)	$	(2.6	)	$	(9.9	)	$	(3.4	)

Total revenues for the T-System segment decreased $1.9 million, or 12.8%, in the three months ended June 30, 2019, and decreased $5.1 million, or 16.9%, in the six months ended June 30, 2019, compared to the corresponding periods in 2018. The decrease was primarily driven by a decline in bookings in its clinical documentation business.

Interest expense for the T-System segment increased $1.3 million in the six months ended June 30, 2019, compared to the corresponding period in 2018. The increase is attributable to interest on an intercompany note with us entered into at the end of the first quarter of 2018.

Loss before income taxes increased $2.4 million in the three months ended June 30, 2019, and increased $6.5 million in the six months ended June 30, 2019, compared to the corresponding periods in 2018. The increased loss was primarily attributable to the factors noted above.

Corporate and Other

The Corporate and Other segment consists of our share in the operations of certain controlled portfolio companies and other equity investments, activity of the corporate holding company and certain intercompany eliminations and taxes.

This nonreportable segment generated pretax earnings of $62.5 million and $8.3 million for the three months ended June 30, 2019 and 2018, respectively, and $69.8 million and $8.7 million for the six months ended June 30, 2019 and 2018, respectively. The increase in earnings in the three and six-month periods is primarily attributable to the gain of $71.1 million on the Ceridian Share Sale and the inclusion of investment success bonuses of $67.1 million in the three-month period ended June 30, 2018, partially offset by a gain on the initial public offering of Ceridian and fees related to the termination of our management agreement

30

with Ceridian of $63.2 million and $5.6 million, respectively, in the three-month period ended June 30, 2018 and investment success bonuses of $4.1 million in the three-month period ended June 30, 2019.

Liquidity and Capital Resources

Cash Requirements. Our current cash requirements include personnel costs, operating expenses, taxes, payments of interest and principal on our debt, capital expenditures, and business acquisitions. There are no restrictions on our retained earnings regarding our ability to pay dividends to stockholders, although there are limits on the ability of certain subsidiaries to pay dividends to us, as a result of provisions in certain debt agreements. The declaration of any future dividends is at the discretion of our Board of Directors. Additional uses of cash flow are expected to include stock repurchases, acquisitions, and debt repayments.

As of June 30, 2019, we had cash and cash equivalents of $73.7 million, $1.8 million of short-term investments and $250.0 million of capacity under our existing holding company credit facilities. On July 5, 2019, we borrowed $100.0 million from FNF under the FNF Revolver, reducing our corporate borrowing capacity to $150.0 million. We continually assess our capital allocation strategy, including decisions relating to reducing debt, repurchasing our stock, and/or conserving cash. We believe that all anticipated cash requirements for current operations will be met from internally generated funds, cash dividends from subsidiaries, cash generated by investment securities, potential sales of non-strategic assets, and borrowings on existing credit facilities. Our short-term and long-term liquidity requirements are monitored regularly to ensure that we can meet our cash requirements. We forecast the needs of all of our subsidiaries and periodically review their short-term and long-term projected sources and uses of funds, as well as the asset, liability, investment and cash flow assumptions underlying such forecasts.

We are focused on evaluating our assets and investments as potential vehicles for creating liquidity. Our intent is to use that liquidity for general corporate purposes, including, potentially reducing debt, repurchasing shares of our stock, other strategic initiatives and/or conserving cash.

Operating Cash Flow. Our cash flows used in operations for the six months ended June 30, 2019 and 2018 totaled $24.5 million and $47.5 million, respectively. The decrease in cash used in operations of $23.0 million is primarily attributable to timing of payment and receipt of cash associated with operating assets.

Investing Cash Flows. Our cash flows used in investing activities for the six months ended June 30, 2019 and 2018 were $387.8 million and $0.7 million, respectively. The increase in cash used in investing activities of $387.1 million from the 2019 period to the 2018 period is primarily attributable to the Dun & Bradstreet Investment, partially offset by the proceeds from the Ceridian Share Sale.

Capital Expenditures. Total capital expenditures for property and equipment and other intangible assets were $10.3 million and $6.2 million for the six-month periods ended June 30, 2019 and 2018, respectively. Capital expenditures in the both periods primarily consist of purchases of property and equipment in our Restaurant Group segment.

Financing Cash Flows. Our cash flows provided by (used in) financing activities for the six months ended June 30, 2019 and 2018 were $163.0 million and $(119.7) million, respectively. The decrease in cash used in (increase in cash provided by) financing activities of $282.7 million is primarily attributable to proceeds from draws on credit facilities, net of repayments, of $150.5 million in the 2019 period and the payoff of the external debt of our Restaurant Group in the 2018 period.

Financing Arrangements. For a description of our financing arrangements see Note F included in Item 1 of Part 1 of this Quarterly Report, which is incorporated by reference into this Item 2 of Part I.

Seasonality. There have been no material changes to the seasonality experienced in our businesses from those described for the period as of and for the year ended December 31, 2018 included in our Annual Report on Form 10-K.

Contractual Obligations. Our long term contractual obligations generally include our credit agreements and other debt facilities, lease payments on certain of our premises and equipment and purchase obligations of the Restaurant Group.

See Note B to our Condensed Consolidated Financial Statements included in Item 1 of Part 1 of this Quarterly Report which is incorporated by reference into this Item 2 of Part I, for further discussion of our leasing arrangements.

See Note A to our Condensed Consolidated Financial Statements included in Item 1 of Part 1 of this Quarterly Report which is incorporated by reference into this Item 2 of Part I, for further discussion of ABRH's financing obligation associated with its corporate headquarters.

Purchase obligations include agreements to purchase goods or services that are enforceable, are legally binding and specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. The Restaurant Group has unconditional purchase obligations with various vendors, primarily related to food and beverage obligations with fixed commitments in regards to the time period of the contract and the quantities purchased with annual price adjustments that can fluctuate. Future purchase obligations are estimated by assuming historical purchase activity over the remaining, non-cancellable terms of the various agreements. For agreements with minimum purchase obligations, at least the minimum amounts we are legally required to purchase are included. These agreements do not

31

include fixed delivery terms. We used both historical and projected volume and pricing as of June 30, 2019 to determine the amount of the obligations.

As of June 30, 2019, our required annual payments relating to these contractual obligations were as follows:

	2019		2020		2021		2022		2023		Thereafter		Total
	(In millions)
Notes payable	$	3.4	$	6.9	$	156.1	$	6.1	$	19.4	$	10.2	$	202.1
Operating lease payments	30.7		59.3		53.0		41.9		35.1		137.4		357.4
ABRH financing obligation	0.5		1.1		1.1		1.1		1.2		13.4		18.4
Unconditional purchase obligations	87.2		67.4		43.7		4.4		3.0		6.9		212.6
Total	$	121.8	$	134.7	$	253.9	$	53.5	$	58.7	$	167.9	$	790.5

Capital Stock Transactions. None.

Off-Balance Sheet Arrangements. Other than inclusion of operating lease arrangements on the balance sheet, further discussed below, there have been no significant changes to our off-balance sheet arrangements since our Annual Report for the year ended December 31, 2018.

Critical Accounting Policies

Other than our adoption of Topic 842 as described in Notes A and B to our Condensed Consolidated Financial Statements included in Item 1 of Part 1 of this Quarterly Report which is incorporated by reference into this Item 2 of Part I, there have been no material changes to our critical accounting policies described in our Annual Report for the year ended December 31, 2018.

Item 3. Quantitative and Qualitative Disclosure about Market Risk

There have been no material changes in the market risks described in our Annual Report on Form 10-K for the year ended December 31, 2018.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures, as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e), that are designed to ensure that information required to be disclosed in the Company's reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures.

For our fiscal year ended December 31, 2018, we carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2018. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on such evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of December 31, 2018 solely because of the material weaknesses in our internal control over financial reporting identified in relation to our accounting for revenue at T-System. These material weaknesses were disclosed in Item 9A of our Annual Report for the year ended December 31, 2018 (the Annual Report).

Management concluded that material weaknesses exist related to the control activities, information and communication, and monitoring activities around the Company’s adoption and application of Accounting Standard Codification ("ASC") Topic 606 at T-System and are attributable to the failure of management to (1) design and implement control activities over the accuracy and completeness of the underlying information used to derive the revenue related accounting entries for the adoption and application of ASC 606 at T-System; (2) design and implement control activities, including the related supporting documentation, around the determination of the ongoing revenue accounting at T-System; and (3) monitor related revenue control activities at T-System in order to prevent or detect material misstatements.

Our management, under the supervision and with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2019. Based on that evaluation, our management, including our principal executive officer and principal financial officer, concluded that our disclosure controls and procedures were not effective as of June 30, 2019 due to the material weaknesses described in the Annual Report which have not yet been remediated. Based on its evaluation of the effectiveness of the design and operation of our internal control over financial

32

reporting as of June 30, 2019, our management, under the supervision and with the participation of our principal executive officer and principal financial officer, has identified no new material weaknesses other than those described in the Annual Report.

Changes in Internal Control over Financial Reporting

We expect to remediate during the year ended December 31, 2019 the material weaknesses identified in the Annual Report. Remediation efforts have commenced and include improving the design and implementation of our controls around the application of ASC 606 at T-System to include more detailed reviews of underlying data used to derive the revenue related accounting entries, enhancing communication between the Company and T-System management to emphasize the importance of validation of underlying data used, improving supporting documentation around the determination of the ongoing revenue accounting, including utilizing external resources to assist with accounting and reporting for ASC 606 at T-System, and improving our monitoring of these activities related to the accounting and reporting for revenue at T-System.

Other than the actions taken above in response to material weaknesses previously identified, there were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

33

Part II: OTHER INFORMATION

Item 1. Legal Proceedings

See discussion of legal proceedings in Note G. Commitments and Contingencies to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report, which is incorporated by reference into this Item 1 of Part II.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 6. Exhibits

     (a) Exhibits:

EXHIBIT INDEX

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification by Chief Executive Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
32.2	Certification by Chief Financial Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document

* The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	August 8, 2019	CANNAE HOLDINGS, INC. (registrant)
		By:	/s/ Richard L. Cox
			Richard L. Cox
			Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

35

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Brent B. Bickett, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cannae Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 8, 2019

By:	/s/ Brent B. Bickett
	Brent B. Bickett President (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Richard L. Cox, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cannae Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 8, 2019

By:	/s/ Richard L. Cox
	Richard L. Cox Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PERIODIC FINANCIAL REPORTS PURSUANT TO 18 U.S.C. §1350

     The undersigned hereby certifies that he is the duly appointed and acting Chief Executive Officer of Cannae Holdings, Inc., a Delaware corporation (the “Company”), and hereby further certifies as follows.

1. The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company.

     In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite his signature below.

Date: August 8, 2019

By:	/s/ Brent B. Bickett
	Brent B. Bickett
	President (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF PERIODIC FINANCIAL REPORTS PURSUANT TO 18 U.S.C. §1350

     The undersigned hereby certifies that he is the duly appointed and acting Chief Financial Officer of Cannae Holdings, Inc., a Delaware corporation (the “Company”), and hereby further certifies as follows.

1. The periodic report containing financial statements to which this certificate is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the periodic report to which this certificate is an exhibit fairly presents, in all material respects, the financial condition and results of operations of the Company.

     In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite his signature below.

Date: August 8, 2019

By:	/s/ Richard L. Cox
	Richard L. Cox
	Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	1-38300
Entity Registrant Name	CANNAE HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-1273460
Entity Address, Address Line One	1701 Village Center Circle
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89134
City Area Code	702
Local Phone Number	323-7330
Title of 12(b) Security	Cannae Common Stock, $0.0001 par value
Trading Symbol	CNNE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		72,223,692
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001704720
Current Fiscal Year End Date	--12-31

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 73.7	$ 323.0
Short-term investments	1.8	31.4
Trade receivables	33.1	49.8
Inventory	32.5	22.3
Prepaid expenses and other current assets	24.2	25.2
Total current assets	165.3	451.7
Investments in unconsolidated affiliates	913.3	397.2
Lease assets - see Note B	228.4	0.0
Property and equipment, net	160.4	176.4
Other intangible assets, net	158.0	175.8
Goodwill	164.8	164.8
Fixed maturity securities available for sale, at fair value	17.7	17.8
Deferred tax asset	9.4	16.9
Other long term investments and non-current assets	55.1	58.9
Total assets	1,872.4	1,459.5
Current liabilities:
Accounts payable and other accrued liabilities, current	98.2	98.4
Lease liabilities, current - see Note B	43.0	0.0
Income taxes payable	4.1	24.2
Deferred revenue	25.3	31.5
Notes payable, current	5.9	5.9
Total current liabilities	176.5	160.0
Lease liabilities, long term - see Note B	218.0	0.0
Deferred revenue, long term	0.2	0.2
Notes payable, long term	195.2	42.2
Accounts payable and other accrued liabilities, long term	30.1	57.4
Total liabilities	620.0	259.8
Commitments and contingencies - see Note G
Equity:
Cannae common stock, $0.0001 par value; authorized 115,000,000 shares as of June 30, 2019 and December 31, 2018; issued and outstanding of 72,234,330 and 72,223,692, respectively, as of June 30, 2019 and December 31, 2018	0.0	0.0
Preferred stock, $0.0001 par value; authorized 10,000,000 shares; issued and outstanding, none as of June 30, 2019 and December 31, 2018	0.0	0.0
Retained earnings	90.9	45.8
Additional paid-in capital	1,150.9	1,146.2
Less: Treasury stock, 10,638 shares as of June 30, 2019 and December 31, 2018, at cost	(0.2)	(0.2)
Accumulated other comprehensive loss	(56.1)	(67.2)
Total Cannae shareholders' equity	1,185.5	1,124.6
Noncontrolling interests	66.9	75.1
Total equity	1,252.4	1,199.7
Total liabilities and equity	$ 1,872.4	$ 1,459.5

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock authorized (in shares)	115,000,000	115,000,000
Common stock issued (in shares)	72,234,330	72,223,692
Common stock outstanding (in shares)	72,234,330	72,223,692
Preferred stock par value (in usd per share)	$ 0.0001	$ 0.0001
Preferred stock authorized (in shares)	10,000,000	10,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Treasury shares (in shares)	10,638	10,638

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Total operating revenues	$ 285.1	$ 302.3	$ 559.6	$ 594.7
Operating expenses:
Cost of restaurant revenue	231.6	240.1	458.6	480.9
Personnel costs	30.9	90.3	55.3	114.4
Depreciation and amortization	13.3	14.9	27.2	29.2
Other operating expenses	33.8	25.1	57.6	46.3
Total operating expenses	309.6	370.4	598.7	670.8
Operating loss	(24.5)	(68.1)	(39.1)	(76.1)
Other income (expense):
Interest, investment and other income	1.4	1.6	12.4	2.9
Interest expense	(5.5)	(0.2)	(9.2)	(3.2)
Realized gains, net	74.5	66.5	76.1	66.5
Total other income (expense)	70.4	67.9	79.3	66.2
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	45.9	(0.2)	40.2	(9.9)
Income tax expense (benefit)	(8.5)	(2.6)	(3.7)	2.9
Earnings (loss) before equity in losses of unconsolidated affiliates	37.4	(2.8)	36.5	(7.0)
Equity in losses of unconsolidated affiliates	(22.4)	(19.6)	(19.5)	(20.7)
Net earnings (loss)	15.0	(22.4)	17.0	(27.7)
Less: Net loss attributable to non-controlling interests	(4.5)	(2.6)	(7.6)	(6.8)
Net earnings (loss) attributable to Cannae Holdings, Inc. common shareholders	$ 19.5	$ (19.8)	$ 24.6	$ (20.9)
Basic
Net earnings (loss) per share (in usd per share)	$ 0.27	$ (0.28)	$ 0.34	$ (0.30)
Diluted
Net earnings (loss) per share (in usd per share)	$ 0.27	$ (0.28)	$ 0.34	$ (0.30)
Weighted Average Shares Outstanding
Weighted average shares outstanding Cannae Holdings common stock, basic basis (in shares)	71.6	71.1	71.6	70.8
Weighted average shares outstanding Cannae Holdings common stock, diluted basis (in shares)	71.9	71.1	71.8	70.9
Restaurant revenue
Revenues:
Total operating revenues	$ 266.5	$ 276.2	$ 524.3	$ 550.0
Other operating revenue
Revenues:
Total operating revenues	$ 18.6	$ 26.1	$ 35.3	$ 44.7

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net earnings (loss)		$ 15.0	$ (22.4)	$ 17.0	$ (27.7)
Other comprehensive earnings (loss), net of tax:
Unrealized (loss) gain on investments and other financial instruments, net (excluding investments in unconsolidated affiliates)	[1]	0.1	(0.4)	(0.1)	1.8
Unrealized gain (loss) relating to investments in unconsolidated affiliates	[2]	5.3	(0.1)	11.5	(6.9)
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings		4.1	16.7	4.7	16.7
Other comprehensive earnings (loss)		9.5	16.2	16.1	11.6
Comprehensive earnings (loss)		24.5	(6.2)	33.1	(16.1)
Less: Comprehensive loss attributable to noncontrolling interests		(4.5)	(2.6)	(7.6)	(6.8)
Comprehensive earnings (loss) attributable to Cannae Holdings, Inc.		29.0	(3.6)	40.7	(9.3)
Net of income tax expense (benefit) (less than for Q2)		0.1	(0.1)	(0.1)	0.6
Net of income tax expense (benefit)		1.4	(0.1)	3.0	(1.8)
Net of income tax benefit		$ (1.0)	$ 4.4	$ (1.2)	$ 4.4

[1] Net of income tax expense (benefit) of less than $0.1 million and $(0.1) million for the three months ended June 30, 2019 and 2018, respectively, and less than $(0.1) million and $0.6 million for the six months ended June 30, 2019 and 2018, respectively.

[2] Net of income tax expense (benefit) of $1.4 million and less than $(0.1) million for the three months ended June 30, 2019 and 2018, respectively and $3.0 million and $(1.8) million for the six months ended June 30, 2019 and 2018, respectively.

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions	Total		Ceridian	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Ceridian	Retained Earnings	Accumulated Other Comp (Loss) Earnings	Treasury Stock	Non-controlling Interests
Beginning balance (in shares) at Dec. 31, 2017				70.9
Beginning balance at Dec. 31, 2017	$ 1,153.1			$ 0.0	$ 1,130.2		$ 0.2	$ (71.0)	$ 0.0	$ 93.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment for adoption of ASU 2018-02							16.1	(16.1)
Other comprehensive earnings — unrealized loss on investments and other financial instruments, net of tax	1.8	[1]						1.8
Other comprehensive earnings — unrealized loss on investments in unconsolidated affiliates, net of tax	(6.9)	[2]						(6.9)
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	16.7							16.7
Shares issued for investment success bonuses, net of issuance costs (in shares)				1.0
Shares issued for investment success bonuses, net of issuance costs	19.8				19.8
Stock-based compensation	0.9		$ 3.9		0.9	$ 3.9
Contribution of CSA services from FNF	0.6				0.6
Sale of noncontrolling interest in consolidated subsidiary	4.1									4.1
Net earnings (loss)	(27.7)						(20.9)			(6.8)
Ending balance (in shares) at Jun. 30, 2018				71.9
Ending balance at Jun. 30, 2018	1,168.2			$ 0.0	1,155.4		(2.7)	(75.5)	0.0	91.0
Beginning balance (in shares) at Mar. 31, 2018				70.9
Beginning balance at Mar. 31, 2018	1,146.8			$ 0.0	1,131.9		1.0	(75.6)	0.0	89.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment for adoption of ASU 2018-02							16.1	(16.1)
Other comprehensive earnings — unrealized loss on investments and other financial instruments, net of tax	(0.4)	[1]						(0.4)
Other comprehensive earnings — unrealized loss on investments in unconsolidated affiliates, net of tax	(0.1)	[2]						(0.1)
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	16.7							16.7
Shares issued for investment success bonuses, net of issuance costs (in shares)				1.0
Shares issued for investment success bonuses, net of issuance costs	19.8				19.8
Stock-based compensation	0.4		3.0		0.4	3.0
Contribution of CSA services from FNF	0.3				0.3
Sale of noncontrolling interest in consolidated subsidiary	4.1									4.1
Net earnings (loss)	(22.4)						(19.8)			(2.6)
Ending balance (in shares) at Jun. 30, 2018				71.9
Ending balance at Jun. 30, 2018	1,168.2			$ 0.0	1,155.4		(2.7)	(75.5)	0.0	91.0
Beginning balance (in shares) at Dec. 31, 2018				72.2
Beginning balance at Dec. 31, 2018	1,199.7			$ 0.0	1,146.2		45.8	(67.2)	(0.2)	75.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive earnings — unrealized loss on investments and other financial instruments, net of tax	(0.1)	[1]						(0.1)
Other comprehensive earnings — unrealized loss on investments in unconsolidated affiliates, net of tax	11.5	[2]						11.5
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	4.7							4.7
Dun & Bradstreet equity issuance costs	(1.4)				(1.4)
Stock-based compensation	1.9		3.5		1.9	3.5
Contribution of CSA services from FNF	0.7				0.7
Subsidiary dividends paid to noncontrolling interests	(0.6)									(0.6)
Net earnings (loss)	17.0						24.6			(7.6)
Ending balance (in shares) at Jun. 30, 2019				72.2
Ending balance at Jun. 30, 2019	1,252.4			$ 0.0	1,150.9		90.9	(56.1)	(0.2)	66.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment for cumulative effect of adoption of accounting standard	15.5						20.5	(5.0)
Beginning balance (in shares) at Mar. 31, 2019				72.2
Beginning balance at Mar. 31, 2019	1,226.0			$ 0.0	1,148.8		71.4	(65.6)	(0.2)	71.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive earnings — unrealized loss on investments and other financial instruments, net of tax	0.1	[1]						0.1
Other comprehensive earnings — unrealized loss on investments in unconsolidated affiliates, net of tax	5.3	[2]						5.3
Reclassification adjustments for unrealized gains and losses, net of tax, included in net earnings	4.1							4.1
Dun & Bradstreet equity issuance costs	(1.4)				(1.4)
Stock-based compensation	1.0		$ 2.2		1.0	$ 2.2
Contribution of CSA services from FNF	0.3				0.3
Subsidiary dividends paid to noncontrolling interests	(0.2)									(0.2)
Net earnings (loss)	15.0						19.5			(4.5)
Ending balance (in shares) at Jun. 30, 2019				72.2
Ending balance at Jun. 30, 2019	$ 1,252.4			$ 0.0	$ 1,150.9		$ 90.9	$ (56.1)	$ (0.2)	$ 66.9

[1] Net of income tax expense (benefit) of less than $0.1 million and $(0.1) million for the three months ended June 30, 2019 and 2018, respectively, and less than $(0.1) million and $0.6 million for the six months ended June 30, 2019 and 2018, respectively.

[2] Net of income tax expense (benefit) of $1.4 million and less than $(0.1) million for the three months ended June 30, 2019 and 2018, respectively and $3.0 million and $(1.8) million for the six months ended June 30, 2019 and 2018, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net earnings (loss)	$ 17.0	$ (27.7)
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	27.3	29.2
Equity in losses of unconsolidated affiliates	19.5	20.7
Distributions from investments in unconsolidated affiliates	2.0	0.9
Realized gains and asset impairments, net	(64.4)	(61.4)
Lease asset amortization	18.0	0.0
Stock-based compensation cost	1.9	20.6
Changes in assets and liabilities, net of effects from acquisitions:
Net decrease (increase) in trade receivables	16.5	(1.0)
Net increase in inventory, prepaid expenses and other assets	(15.6)	(8.4)
Net decrease in lease liabilities	(22.0)	0.0
Net decrease in accounts payable, accrued liabilities, deferred revenue and other	(4.0)	(15.9)
Net change in income taxes	(20.7)	(4.5)
Net cash used in operating activities	(24.5)	(47.5)
Cash flows from investing activities:
Proceeds from sale of investment securities and investments in unconsolidated affiliates	0.0	17.7
Additions to property and equipment and other intangible assets	(10.3)	(6.2)
Proceeds from sales of property and equipment	11.4	3.2
Investments in Dun & Bradstreet, net of capitalized syndication fees - see Note D	(526.2)	0.0
Purchases of other long-term investments	0.0	(3.6)
Distributions from investments in unconsolidated affiliates	0.3	0.3
Net proceeds from sales and maturities of (cash paid for purchases of) short-term investment securities	29.6	(17.3)
Net other investing activities	2.6	0.6
Net cash used in investing activities	(387.8)	(0.7)
Cash flows from financing activities:
Borrowings	262.1	0.1
Debt service payments	(111.7)	(123.9)
Subsidiary distributions paid to noncontrolling interest shareholders	(0.6)	0.0
Sale of noncontrolling interest in consolidated subsidiary	0.0	4.1
Proceeds from ABRH sale and leaseback of corporate office, net of issuance costs- see Note A	13.2	0.0
Net cash provided by (used in) financing activities	163.0	(119.7)
Net decrease in cash and cash equivalents	(249.3)	(167.9)
Cash and cash equivalents at beginning of period	323.0	245.6
Cash and cash equivalents at end of period	73.7	77.7
Ceridian
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Equity in losses of unconsolidated affiliates	(4.0)	21.6
Cash flows from investing activities:
Proceeds from sale of investments in unconsolidated affiliates	100.5	0.0
Other Equity Method Investments
Cash flows from investing activities:
Proceeds from sale of investments in unconsolidated affiliates	$ 4.3	$ 4.6

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Basis of Financial Statements

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Financial Statements

Basis of Financial Statements

Description of the Business

We are a holding company engaged in actively managing and operating a group of companies and investments with a net asset value of approximately $1.3 billion as of June 30, 2019. Our business consists of managing and operating certain majority-owned subsidiaries, as well as making additional majority and minority equity portfolio investments in businesses, in order to achieve superior financial performance and maximize the value of these assets. As of June 30, 2019, our primary investments include our minority ownership interests in Ceridian HCM Holding, Inc. ("Ceridian") and The Dun & Bradstreet Corporation ("DNB"); majority equity ownership stakes in American Blue Ribbon Holdings, LLC ("ABRH"), 99 Restaurants Holdings, LLC ("99 Restaurants") and T-System Holdings, LLC ("T-System"); and various other controlled portfolio companies and minority equity and debt investments. Except where otherwise noted, all references to we, us, our, Cannae, Cannae Holdings, the Company, or CNNE are to Cannae Holdings, Inc. and its subsidiaries, taken together.

See Note H for further discussion of the businesses comprising our reportable segments.

Principles of Consolidation and Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X and include the historical accounts as well as wholly-owned and majority-owned subsidiaries of the Company. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2018.

Following the split-off of the former portfolio company investments by Fidelity National Financial, Inc. ("FNF"), and subsequent contribution to us (the "FNF Split-Off"), the Company is allocated certain corporate overhead and management services expenses from FNF based on the terms of the Corporate Services Agreement ("CSA"), dated as of November 17, 2017, by and between the Company and FNF and our proportionate share of the expense determined on actual usage and our best estimate of management's allocation of time. Both FNF and Cannae believe such allocations are reasonable; however, they may not be indicative of the actual results of operations or cash flows of the Company had the Company been operating as an independent, publicly traded company for the periods presented or the amounts that will be incurred by the Company in the future. FNF is considered a related party to the Company.

All intercompany profits, transactions and balances have been eliminated. Our investments in non-majority-owned partnerships and affiliates are accounted for using the equity method until such time that they may become wholly or majority-owned. Earnings attributable to noncontrolling interests are recorded on the Condensed Consolidated Statements of Operations relating to majority-owned subsidiaries with the appropriate noncontrolling interest that represents the portion of equity not related to our ownership interest recorded on the Condensed Consolidated Balance Sheets in each period.

Management Estimates

The preparation of these Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include the valuation of goodwill and acquired intangible assets and fair value measurements (Note C). Actual results may differ from estimates.

Recent Developments

Dun & Bradstreet

In February 2019, we completed our previously announced investment in DNB for a net investment $505.6 million in DNB's ultimate parent. DNB is a global leader in commercial data and analytics and provides various services to help companies improve their operational performance.

On July 1, 2019, DNB completed an acquisition of Lattice Engines, Inc. ("Lattice"), a provider of integrated data and analytics solutions used by business-to-business marketing and sales professionals. In June 2019, we made an additional pro-rata investment of $23.5 million in DNB's ultimate parent. DNB used the proceeds to partially fund its acquisition of Lattice.

See Note D for further discussion.

Ceridian

On May 22, 2019, we completed the sale of 2.0 million shares of common stock of Ceridian as part of an underwritten secondary public offering by certain stockholders of Ceridian at a public offering price of $50.50 per share (the "Ceridian Share Sale"). In connection with the Ceridian Share Sale, we received $50.25 per share (after the applicable underwriter discount) for aggregate proceeds of $100.5 million. We recorded a gain of $71.1 million on the Ceridian Share Sale which is included in Realized gains (losses), net on the Consolidated and Combined Statements of Operations for the three and six months ended June 30, 2019. The recorded gain is net of $4.2 million of losses (exclusive of $1.1 million of income tax benefit) related to reclassification adjustments from Other comprehensive income. As of June 30, 2019, we own 21.7% of the outstanding common stock of Ceridian.

Restaurant Group

ABRH has entered into plans to sell certain company-owned stores. In conjunction with the plans of sale, $7.0 million of assets are recorded as held for sale and included in Prepaid expenses and other current assets, net as of June 30, 2019.

On March 21, 2019, ABRH sold its corporate office located in Nashville, Tennessee for net cash proceeds of $13.2 million and entered into a lease agreement with the buyer to lease the office for an initial term of 15 years. The transaction was evaluated and determined not to qualify for sale-leaseback accounting. Accordingly, the transaction is accounted for as a failed sale and leaseback and a financing obligation. During the six months ended June 30, 2019, we reclassified $2.4 million from assets held for sale formerly included in Prepaid expenses and other current assets to reflect the real estate assets in Property and equipment, net on our Condensed Consolidated Balance Sheet as if we were the legal owner. We continue to recognize depreciation expense over the building's estimated useful life. On the date of the sale, we recorded a liability for the financing obligation in the amount of the net cash proceeds of $13.2 million which is included in Accounts payable and other accrued liabilities, long term on our Condensed Consolidated Balance Sheet.

During the three months ended June 30, 2019, ABRH sold its corporate office located in Denver, Colorado and two company-owned O'Charley's stores for total gross proceeds of $8.5 million.

Other

On July 23, 2019, Cannae Holdings, in partnership with Motive Partners, closed on an investment in preferred equity of QOMPLX, Inc. ("QOMPLX"), formerly Fractal Industries, Inc., an intelligent decision and analytics platform used by businesses for modeling and planning. We funded $15.0 million at close and will fund another $15.0 million by December 2019 as part of a total $79.0 million financing of QOMPLX. Cannae's total investment will represent 19.9% of the outstanding voting equity of QOMPLX. Our Chairman William Foley II has joined QOMPLX’s Board of Directors.

Earnings Per Share

Basic earnings per share, as presented on the Condensed Consolidated Statement of Operations, is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period.

In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain shares of restricted stock which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported.

Instruments which provide the ability to purchase shares of our common stock that are antidilutive are excluded from the computation of diluted earnings per share. For the three and six months ended June 30, 2019 there were no antidilutive shares of restricted stock outstanding which were excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2018 there were less than 0.1 million and 0.1 million antidilutive shares of restricted stock outstanding, respectfully, which were excluded from the calculation of diluted earnings per share.

Income Tax

Our effective tax rate was 18.5% and (1,300.0)% in the three months ended June 30, 2019 and 2018, respectively, and 9.2% and 29.3% in the six months ended June 30, 2019 and 2018, respectively. The change in the effective tax rate in both the three and six-month periods ended June 30, 2019 was attributable to the decreased impact of the tax benefit on losses from investments in unconsolidated affiliates on the pretax earnings in the 2019 period compared to the lower earnings in the same period in 2018. The change in the three-month period was also driven by the decreased impact of permanent items on the pretax earnings.

Recent Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842). The amendments in this ASU introduce broad changes to the accounting and reporting for leases by lessees. The main provisions of the new standard include: clarifications to the definitions of a lease, components of leases, and criteria for determining lease classification; requiring virtually all leased assets, including operating leases and related liabilities, to be reflected on the lessee's balance sheet; and expanding and adding to the required disclosures for lessees. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842): Targeted Improvements which allows entities the option to adopt this standard by recording a cumulative-effect adjustment to opening equity, if necessary, and only include required disclosures for prior periods.

We adopted Topic 842 on January 1, 2019 using a modified retrospective approach prescribed by ASU 2018-11 and recorded an operating lease right-of-use asset (Lease assets) of $246.0 million and an operating lease liability for future discounted lease payment obligations (Lease liabilities) of $279.4 million at the date of adoption. The other material impacts of the adoption of Topic 842 also resulted in a decrease of $9.1 million and $42.3 million to our Other intangible assets, net and Accounts payable and accrued liabilities, respectively. We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance.

See Note B. Leases for further discussion of our leasing arrangements and related accounting.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of debt securities available for sale. This update is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the effect this new guidance will have on our financial statements and related disclosures and have not yet concluded on its effects. We do not expect to early adopt the standard.

Revision of Prior Period Financial Statements

Subsequent to the issuance of the Company’s Condensed Consolidated Financial Statements for the three and six months ended June 30, 2018, we identified and corrected errors in connection with the preparation of the financial statements for the year ended December 31, 2018 pertaining to: (1) our adjustment for the cumulative effect of the adoption of Accounting Standards Codification ("ASC") Topic 606 as of the date of adoption (January 1, 2018), (2) adjustments to the opening balance sheet of T-System in order to add a contract asset for its unbilled accounts receivable and to remove a portion of deferred revenue for which T-System had no further performance obligations and (3) our accounting for certain revenue transactions in our T-System segment for the three and six months ended June 30, 2018.

These corrections resulted in a decrease in the Adjustment for cumulative effect of adoption of ASC Topic 606 to Retained earnings in the Condensed Consolidated Statement of Equity for the six months ended June 30, 2018 of $2.4 million from the $4.3 million (net of tax), as reported, to $1.9 million (net of tax), as corrected.

These corrections also resulted in the following changes in our Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018:

i.decrease of $1.6 million and $3.1 million, respectively, to Other operating revenue,

ii.decrease of $0.4 million and $1.0 million, respectively, to Depreciation and amortization,

iii.decrease of $0.2 million and $1.7 million, respectively, to Income tax expense (benefit) and

iv.increase of $1.0 million and $0.4 million, respectively, to Net loss and Net loss attributable to Cannae (increased loss)

v.increase of $0.02 and $0.01, respectively, to Net loss per share (increased loss per share)

In connection with the preparation of our Condensed Consolidated Financial Statements for the quarter ended September 30, 2018, we identified and corrected an error pertaining to our presentation of comprehensive (loss) earnings for the three and six months ended June 30, 2018. The misstatement related to the reclassification of $16.7 million of unrealized losses of unconsolidated affiliates from accumulated other comprehensive loss to earnings in conjunction with Ceridian's IPO. The reclassification was properly reflected in the Condensed Consolidated Statement of Equity for the six months ended June 30, 2018; however, it was omitted from the Condensed Consolidated Statements of Comprehensive (Loss) Earnings. This omission resulted in a $16.7 million overstatement of the comprehensive loss and the comprehensive loss attributable to Cannae Holdings, Inc. for the three and six months ended June 30, 2018.We have corrected the presentation of our comprehensive (loss) earnings in the accompanying Condensed Consolidated Statements of Comprehensive (Loss) Earnings. The correction resulted in (i) an increase in the reclassification adjustments for unrealized gains and losses on unconsolidated affiliates, net of tax, included in net earnings, (ii) a decrease in comprehensive loss and (iii) an increase in comprehensive earnings attributable to Cannae Holdings, Inc. of $16.7 million. Earnings from continuing operations, net earnings and earnings per share for the three and six months ended June 30, 2018 were not affected by the error.

In accordance with accounting guidance found in ASC Topic 250-10 Accounting Changes and Error Corrections (SEC Staff Accounting Bulletin Topic 1M), we assessed the materiality of the errors from quantitative and qualitative perspectives and concluded that the errors were not material, individually or in the aggregate, to any of our previously issued financial statements on Form 10-Q. Consequently, we are correcting these errors in this report and will also correct these errors prospectively in our subsequent quarterly filings on Form 10-Q.

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Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Leases

We adopted Topic 842 on January 1, 2019 using a modified retrospective approach. Prior year periods continue to be reported under Accounting Standards Codification ("ASC") Topic 840. See Note A for further discussion of the current period effects of adoption of ASU No. 2016-02 Leases (Topic 842).

We are party to operating lease arrangements primarily for leased real estate for restaurants and office space. Right-of-use assets and lease liabilities related to operating leases under ASC 842 are recorded at commencement when we are party to a contract which conveys the right for the Company to control an asset for a specified period of time. We are not a party to any material contracts considered finance leases. Right-of-use assets and lease liabilities related to operating leases are recorded as Lease assets and Lease liabilities, respectively, on the Condensed Consolidated Balance Sheets as of June 30, 2019.

Our material operating leases range in term from one year to nineteen years. As of June 30, 2019, the weighted-average remaining lease term of our operating leases was eight years. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term.

Our lease agreements do not contain any material buyout options, residual value guarantees or restrictive covenants.

Most of our leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of lease renewal options is at our sole discretion. We include options to renew, not to exceed a total lease term of twenty years, in our measurement of right-of-use assets and lease liabilities when they are considered reasonably certain of exercise. We consider a lease probable for renewal when the duration of the lease extensions are in the foreseeable future and related to assets for which will be reasonably assured of continued use.

Excluding certain immaterial classes of leases in our Restaurant Group, we do not separate lease components from nonlease components for any of our right of use assets.

Our operating lease liabilities are determined by discounting future lease payments using a discount rate which represents our best estimate of the incremental borrowing rate our subsidiaries would have to pay to borrow money to finance the asset over the underlying lease term and for an amount equal to the lease payments. Our discount rate is based on interest rates associated with comparable public company secured debt for companies similar to our operating subsidiaries and of similar duration to the underlying lease. As of June 30, 2019, the weighted-average discount rate used to determine our operating lease liabilities was 7.76%.

In our Restaurant Group, lease costs directly attributable to restaurant operations, primarily for real estate and to a lesser extent certain restaurant equipment, are included in Cost of restaurant revenue on the Condensed Consolidated Statements of Operations. Lease costs not directly attributable to cost of goods or services is included in Other operating expense on the Condensed Consolidated Statements of Operations.

Our operating lease costs for the three and six months ended June 30, 2019 consist of:

		Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Lease Cost	Classification	(in millions)
Operating lease cost	Cost of restaurant revenue	$	13.7	$	28.3
	Other operating expense	$	0.2	$	0.3
Total operating lease cost		$	13.9	$	28.6

We do not have any material short term lease costs, variable lease costs, or sublease income.

Future payments under operating lease arrangements accounted for under ASC Topic 842 are as follows (in millions):

2019 (remaining)	$	30.7
2020	59.3
2021	53.0
2022	41.9
2023	35.1
Thereafter	137.4
Total lease payments, undiscounted	$	357.4
Less: discount	96.4
Total operating lease liability as of June 30, 2019, at present value	$	261.0
Less: operating lease liability as of June 30, 2019, current	43.0
Operating lease liability as of June 30, 2019, long term	$	218.0

Future payments under operating lease arrangements accounted for under ASC Topic 840 as of December 31, 2018 are as follows (in millions):

2019	$	62.0
2020	57.7
2021	51.3
2022	40.7
2023	34.1
Thereafter	133.2
Total future minimum operating lease payments	$	379.0

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Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair value hierarchy established by the accounting standards on fair value measurements includes three levels which are based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities that are recorded in the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1.  Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access.

Level 2.  Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability.

Level 3.  Financial assets and liabilities whose values are based on model inputs that are unobservable.

Recurring Fair Value Measurements

The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, respectively:

	June 30, 2019
	Level 1		Level 2		Level 3		Total
	(In millions)
Fixed-maturity securities available for sale:
Corporate debt securities	$	—	$	—	$	17.7	$	17.7
Total	$	—	$	—	$	17.7	$	17.7

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(In millions)
Fixed-maturity securities available for sale:
Corporate debt securities	$	—	$	—	$	17.8	$	17.8
Total	$	—	$	—	$	17.8	$	17.8

Our Level 3 fair value measurement for our fixed maturity securities available for sale are provided by a single third-party pricing service. Depending on security specific characteristics, either a combination of an income and net recovery approach or a contingent claims approach was utilized in determining fair value of our Level 3 fixed-maturity securities available for sale. Discount rates are the primary unobservable inputs utilized for the securities valued using a combination of an income and net recovery approach. The discount rates used are based on company-specific risk premiums, public company comparable securities, and leveraged loan indices. The discount rates used in our determination of the fair value of our Level 3 fixed-maturity securities available for sale varies by security type and ranged from 15.8% to 17.0% as of June 30, 2019 and a weighted average based on relative fair value of the underlying securities of 17.0%. Based on the total fair value of our Level 3 fixed-maturity securities available for sale as of June 30, 2019, changes in the discount rate utilized will not result in a fair value significantly different or material to the Company's financial position or results of operation than the amount recorded.

The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three and six months ended June 30, 2019 and 2018 (in millions).

	Three months ended June 30, 2019		Three months ended June 30, 2018
	Corporate debt		Corporate debt
	securities		securities
Fair value, beginning of period	$	17.5	$	21.4
Paid-in-kind dividends (1)	0.1		0.1
Accretion of original purchase discount (1)	—		0.2
Net valuation gain (loss) included in other comprehensive earnings (2)	0.1		(0.1		)
Fair value, end of period	$	17.7	$	21.6

	Six months ended June 30, 2019			Six months ended June 30, 2018
	Corporate debt			Corporate debt
	securities			securities
Fair value, beginning of period	$	17.8		$	—
Transfers from Level 2	—			21.4
Paid-in-kind dividends (1)	0.1			0.1
Accretion of original purchase discount (1)	—			0.2
Impairment (1)	(0.4		)	—
Net valuation gain (loss) included in other comprehensive earnings (2)	0.2			(0.1		)
Fair value, end of period	$	17.7		$	21.6

_____________________________________

(1) Included in Interest, investment and other income on the Condensed Consolidated Statements of Operations

(2) Included in Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on the Condensed Consolidated Statements of Comprehensive Earnings

Transfers into or out of the Level 3 fair value category occur when unobservable inputs become more or less significant to the fair value measurement or upon a change in valuation technique. For the six months ended June 30, 2018, transfers between Level 2 and Level 3 were based on changes in significance of unobservable inputs used associated with a change in the service provider and in the valuation technique used to value our corporate debt securities. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period in which they occur. There were no transfers between Level 2 and Level 3 in the three and six months ended June 30, 2019 and three months ended June 30, 2018, respectively.

All of the unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on our Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 relate to fixed maturity securities considered Level 3 fair value measures.

Additional information regarding the fair value of our investment portfolio is included in Note D.

The carrying amounts of trade receivables and notes receivable approximate fair value due to their short-term nature. The fair value of our notes payable is included in Note F.

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Investments

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Available for Sale Securities

 The carrying amounts and fair values of our available for sale securities at June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019
	Carrying Value		Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
	(In millions)
Fixed maturity securities available for sale:
Corporate debt securities	$	17.7	$	19.0	$	0.6	$	(1.9	)	$	17.7
Total	$	17.7	$	19.0	$	0.6	$	(1.9	)	$	17.7

	December 31, 2018
	Carrying Value		Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
	(In millions)
Fixed maturity securities available for sale:
Corporate debt securities	$	17.8	$	18.8	$	0.9	$	(1.9	)	$	17.8
Total	$	17.8	$	18.8	$	0.9	$	(1.9	)	$	17.8

 

The cost basis of fixed maturity securities available for sale includes an adjustment for amortized premium or discount and other-than-temporary-impairment recognized in earnings since the date of purchase.

As of June 30, 2019 the fixed maturity securities in our investment portfolio had a maturity of greater than one year but less than five years. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Net unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 were as follows (in millions):

June 30, 2019	12 Months or Longer
	Fair		Unrealized
	Value		Losses
Corporate debt securities	$	10.1	$	(1.9	)
Total temporarily impaired securities	$	10.1	$	(1.9	)

December 31, 2018	Less than 12 Months
	Fair		Unrealized
	Value		Losses
Corporate debt securities	$	10.4	$	(1.9	)
Total temporarily impaired securities	$	10.4	$	(1.9	)

During the six months ended June 30, 2019, we incurred $0.4 million of other-than-temporary impairment charges relating to corporate debt securities which is included in Realized gains, net on the Condensed Consolidated Statements of Operations. The impairment recorded relates to a corporate debt holding which has experienced a prolonged period of declining earnings and which we are uncertain of our ability to recover our initial investment. All of the loss represents credit loss recognized in earnings and no portion of the loss was included in other comprehensive earnings. During the three months ended June 30, 2019 and three and six months ended June 30, 2018, we incurred no other-than-temporary impairment charges relating to investment securities.

During the six months ended June 30, 2018, we sold equity securities for gross proceeds of $17.7 million, resulting in realized gains of less than $0.1 million.

As of June 30, 2019, we held $2.0 million of corporate debt securities for which an other-than-temporary impairment had been previously recognized. It is possible that future events may lead us to recognize potential future impairment losses related to our investment portfolio and that unanticipated future events may lead us to dispose of certain investment holdings and recognize the effects of any market movements in our results of operations.

Investments in Unconsolidated Affiliates

Investments in unconsolidated affiliates recorded using the equity method of accounting as of June 30, 2019 and December 31, 2018 consisted of the following (in millions):

	Ownership at June 30, 2019		June 30, 2019		December 31, 2018
Ceridian	21.7	%	$	380.5	$	359.7
Dun & Bradstreet (defined below)	24.3	%	497.5		—
Other	various		35.3		37.5
Total			$	913.3	$	397.2

Equity in earnings (losses) of unconsolidated affiliates for the three and six months ended June 30, 2019 and June 30, 2018 consisted of the following (in millions):

	Three months ended June 30, 2019			Three months ended June 30, 2018			Six months ended June 30, 2019			Six months ended June 30, 2018
Ceridian	$	1.4		$	(19.7	)	$	4.0		$	(21.6	)
Dun & Bradstreet (defined below)	(24.2		)	—			(24.2		)	—
Other	0.4			0.1			0.7			0.9
Total	$	(22.4	)	$	(19.6	)	$	(19.5	)	$	(20.7	)

Ceridian

Based on quoted market prices, the aggregate value of our ownership of Ceridian common stock is $1.5 billion as of June 30, 2019.

Summarized financial information for Ceridian for the relevant dates and time periods included in Investments in unconsolidated affiliates and Equity in earnings (losses) of unconsolidated affiliates in our Condensed Consolidated Balance Sheets and Statements of Operations, respectively, is presented below. LifeWorks Corporation Ltd. ("LifeWorks"), a former subsidiary of Ceridian, was distributed pro-rata to Ceridian shareholders contemporaneously with Ceridian's initial public offering in April 2018. On July 27, 2018, LifeWorks was sold. The results of Ceridian for the three and six months ended June 30, 2018 have been adjusted to remove the effects of the discontinued operations of LifeWorks as well as to reflect Ceridian's retrospective adoption of ASC Topic 606 and certain other accounting standards.

	June 30, 2019		December 31, 2018
	(In millions)
Total current assets before customer funds	$	365.1	$	330.6
Customer funds	3,986.7		2,603.5
Goodwill and other intangible assets, net	2,132.7		2,114.9
Other assets	244.8		198.8
Total assets	$	6,729.3	$	5,247.8
Current liabilities before customer obligations	$	129.8	$	149.9
Customer obligations	3,963.5		2,619.7
Long-term obligations, less current portion	660.7		663.5
Other long-term liabilities	218.2		199.2
Total liabilities	4,972.2		3,632.3
Equity	1,757.1		1,615.5
Total liabilities and equity	$	6,729.3	$	5,247.8

	Three months ended June 30, 2019		Three months ended June 30, 2018			Six months ended June 30, 2019		Six months ended June 30, 2018
	(In millions)					(In millions)
Total revenues	$	196.3	$	179.0		$	400.0	$	367.8
Earnings (loss) before income taxes	8.7		(52.4		)	25.6		(44.4		)
Earnings (loss) before discontinued operations	6.3		(53.6		)	17.5		(51.4		)
Net earnings (loss) attributable to Ceridian	6.3		(63.3		)	17.5		(62.7		)

Dun & Bradstreet

On February 8, 2019, we closed on our previously announced acquisition of DNB (the "DNB Acquisition"). The DNB Acquisition was financed through a combination of $2.1 billion of common equity financing provided to DNB's ultimate parent and acquirer Star Parent, L.P. ("Star") by a consortium of investors including Cannae and various other investors, $1.1 billion of preferred equity in a wholly-owned subsidiary of Star from various sources and $4.0 billion of debt financing from various lenders. The proceeds were used by Star and its subsidiaries to purchase DNB (collectively with Star and its subsidiaries, "Dun & Bradstreet") .

Of our previously disclosed $900.0 million commitment to purchase common equity of Star, we retained and funded a $505.6 million investment (the "Dun & Bradstreet Investment"), representing 24.5% of the outstanding common equity of Dun & Bradstreet, and syndicated the remainder to other investors. We funded the Dun & Bradstreet Investment through a combination of cash on hand and borrowings on the Margin Loan and FNF Revolver. On the closing date, we recorded income of $9.1 million for syndication fees from DNB which is recorded in Other income in our Condensed Consolidated Statement of Operations for the six months ended June 30, 2019. We also recorded a reduction in our investment of $2.9 million for our ratable portion of the syndication fees capitalized as equity issuance costs by Dun & Bradstreet.

In April 2019, we syndicated an additional $2.6 million of our Dun & Bradstreet Investment to other investors resulting in a reduction in the Company's ownership to 24.3% of the outstanding common equity of Dun & Bradstreet.

On June 27, 2019, we made an additional pro-rata investment of $23.5 million in Dun & Bradstreet. Dun & Bradstreet used the proceeds to partially fund its acquisition of Lattice (see Note A).

Summarized financial information for Dun & Bradstreet for the relevant dates and time periods included in Investments in unconsolidated affiliates and Equity in earnings (losses) of unconsolidated affiliates in our Condensed Consolidated Balance Sheets and Statements of Operations, respectively, is presented below. We report our equity in earnings or loss of Dun & Bradstreet on a one quarter lag. Accordingly, our net earnings for the three and six month periods ended June 30, 2019, include the Company’s equity in Dun & Bradstreet’s losses for the period from February 8, 2019 through March 31, 2019.

	March 31, 2019
	(In millions)
Total current assets	$	420.7
Goodwill and other intangible assets, net	8,285.7
Other assets	454.6
Total assets	$	9,161.0
Current liabilities	$	778.0
Long-term debt	3,821.0
Other non-current liabilities	1,636.5
Total liabilities	6,235.5
Preferred equity	1,028.4
Partner's capital	1,897.1
Total liabilities and equity	$	9,161.0

	Period from February 8, 2019 to March 31, 2019
	(In millions)
Total revenues	$	174.1
Loss before income taxes	(111.6		)
Net loss	(81.1		)
Dividends attributable to preferred stock and noncontrolling interest expense	(18.3		)
Net loss attributable to Dun & Bradstreet	(99.4		)

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Inventory

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventory

Inventory

Inventory consists of the following:

	June 30, 2019			December 31, 2018
	(In millions)
Bakery inventory:
Raw materials	$	6.3		$	6.8
Semi-finished and finished goods	16.2			5.6
Packaging	1.7			2.4
Obsolescence reserve	(1.0		)	(3.0		)
Total bakery inventory	23.2			11.8
Other restaurant-related inventory	9.0			10.3
Other	0.3			0.2
Total inventory	$	32.5		$	22.3

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Notes Payable

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Notes Payable

Notes Payable

Notes payable consists of the following:

	June 30, 2019		December 31, 2018
	(In millions)
99 Term Loan	$	33.7	$	36.1
99 Revolver	3.0		—
99 DLOC Loan	—		—
Margin Facility	150.0		—
Brasada Interstate Loans	11.7		11.7
Other	2.7		0.3
Notes payable, total	$	201.1	$	48.1
Less: Notes payable, current	5.9		5.9
Notes payable, long term	$	195.2	$	42.2

At June 30, 2019 the carrying value of our outstanding notes payable approximates fair value. The respective carrying values of our variable rate notes payable approximate fair value as they are variable rate instruments with short reset periods which reflect current market rates. The revolving credit facilities are considered Level 2 financial liabilities. The fixed-rate A Note, as defined below, pursuant to the Interstate Credit Agreement approximates fair value as of June 30, 2019.

On December 21, 2018, 99 Restaurants LLC, a direct, wholly-owned subsidiary of 99 Restaurants entered into the 99 Restaurants Credit Facility with Fifth Third Bank and other lenders thereto. The 99 Restaurants Credit Facility provides for (i) a maximum revolving loan of $15.0 million (the “99 Revolver”) with a maturity date of December 21, 2023; (ii) a maximum term loan of $37.0 million (the "99 Term Loan") with monthly installment repayments through November 30, 2023 and a maturity date of December 21, 2023 for the outstanding unpaid principal balance; and (iii) a maximum Development Line of Credit loan (the “99 DLOC Loan”) of up to $10.0 million to be advanced from time to time through December 21, 2020, with quarterly installment payments through (a) September 30, 2024 with respect to 99 DLOC Loans borrowed prior to December 21, 2019, and (b) September 30, 2025 with respect to 99 DLOC Loans borrowed on or after December 21, 2019. Interest on the 99 Credit Facility is based on, at our option, an applicable margin of (x) two and one half percent (2.50%) per annum with respect to Base Rate Loans, as provided therein, and (y) three and one half percent (3.50%) per annum with respect to LIBOR Loans, as provided therein. As of June 30, 2019, interest on the 99 Term Loan and 99 Revolver is payable monthly at a rate of 6.00% and 5.88%, respectively, and there is $22.0 million of borrowing capacity combined under the 99 Revolver and DLOC Loans.

On November 7, 2018, Cannae Funding, LLC (the "Borrower"), a wholly-owned special purpose subsidiary of the Company, entered into a Margin Loan Agreement (the "Loan Agreement"), and certain other related agreements, with Credit Suisse AG (in

such capacity, "Administrative Agent") and other lenders thereto. Pursuant to the Loan Agreement, the Borrower may borrow up to $300.0 million (the "Margin Facility") in term loans at an interest rate of the three-month LIBOR plus an applicable margin with an initial maturity date of November 7, 2021. Interest on term loans under the Margin Facility is payable in-kind or cash at the Borrower's election. The Margin Facility is collateralized by 25.0 million shares of Ceridian held by the Borrower prior to any draws under the Margin Facility. On February 7, 2019, we borrowed $150 million under the Margin Facility and used the proceeds to fund, in part, the Dun & Bradstreet Investment. As of June 30, 2019, we pay interest on borrowings outstanding quarterly at a rate of 5.35% and there is $150 million available to be drawn pursuant to the Margin Facility.

Concurrently with the Loan Agreement, the Company entered into a Guaranty (the "Guaranty Agreement") in favor of the Administrative Agent and other lenders thereto pursuant to which the Company absolutely, unconditionally and irrevocably guaranteed all of the Borrower's obligations under the Loan Agreement for a period of up to one year after the conditions to the effectiveness of the Loan Agreement have been met. During the period in which the Guaranty Agreement is enforceable, the Company will be liable for all obligations payable by the Borrower under the Loan Agreement and other agreements entered into in connection therewith.

On January 29, 2016, FNF NV Brasada, LLC, an Oregon limited liability company and majority-owned subsidiary of the Company, entered into a credit agreement with an aggregate borrowing capacity of $17.0 million (the “Interstate Credit Agreement”) originally with Bank of the Cascades, as lender. The Interstate Credit Agreement provides for (i) a $12.5 million acquisition loan (the "Acquisition Loan"), (ii) a $3.0 million development loan (the "Development Loan"), and (iii) a $1.5 million line of credit loan (the "Line of Credit Loan", and collectively with the Acquisition Loan and the Development Loan, the "Brasada Interstate Loans"). On June 13, 2018, the Interstate Credit Agreement was modified to add an additional line of credit of $3.6 million and to assign the loan from the Bank of the Cascades to First Interstate Bank. Pursuant to the Acquisition Loan, NV Brasada executed a $6.25 million "A Note", which accrues interest at a rate of 4.51% per annum and matures on the tenth anniversary of the issuance thereof, and a $6.25 million "B Note", which accrues interest at the rate of LIBOR plus 225 basis points, adjusted monthly, and matures on the tenth anniversary of the issuance thereof. As of June 30, 2019, the variable rate notes incurred interest at 4.69% and there was $4.4 million available to be drawn pursuant to the Brasada Interstate Loans.

Note payable to FNF

On November 17, 2017, in conjunction with the FNF Split-Off, FNF issued to the Company a revolver note in aggregate principal amount of up to $100.0 million (the "FNF Revolver"). Pursuant to the FNF Revolver, FNF may make one or more loans to us in increments of $1.0 million, with up to $100.0 million outstanding at any time. The FNF Revolver accrues interest at LIBOR plus 450 basis points and matures on the five year anniversary of the date we were issued the FNF Revolver. The maturity date is automatically extended for additional five year terms unless notice of non-renewal is otherwise provided by either FNF or the Company, in their sole discretion. On February 7, 2019, we drew the entire $100.0 million available and used the proceeds to fund, in part, the Dun & Bradstreet Investment. On June 12, 2019, we repaid to FNF the entire $100.0 million outstanding amount under the FNF Revolver. As of June 30, 2019, there was no outstanding balance under the FNF Revolver and there was $100.0 million remaining borrowing capacity.

On July 5, 2019, we borrowed $100.0 million from FNF under the FNF Revolver. The proceeds were used for investment and general corporate purposes.

Gross principal maturities of notes payable at June 30, 2019 are as follows (in millions):

2019 (remaining)	$	3.4
2020	6.9
2021	156.1
2022	6.1
2023	19.4
Thereafter	10.2
	$	202.1

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Contingencies

In the ordinary course of business, we are involved in various pending and threatened litigation and regulatory matters related to our operations, some of which include claims for punitive or exemplary damages. Our ordinary course litigation includes

purported class action lawsuits, which make allegations related to various aspects of our business. From time to time, we also receive requests for information from various state and federal regulatory authorities, some of which take the form of civil investigative demands or subpoenas. Some of these regulatory inquiries may result in the assessment of fines for violations of regulations or settlements with such authorities requiring a variety of remedies. We believe that no actions, other than those discussed below, if any, depart from customary litigation or regulatory inquiries incidental to our business.

Our Restaurant Group companies are a defendant from time to time in various legal proceedings arising in the ordinary course of business, including claims relating to injury or wrongful death under “dram shop” laws that allow a person to sue us based on any injury caused by an intoxicated person who was wrongfully served alcoholic beverages at one of the restaurants; individual and purported class or collective action claims alleging violation of federal and state discrimination, wage and hour and other employment, franchise and other laws; and claims from guests or employees alleging illness, injury or other food quality, health or operational concerns. Our Restaurant Group companies are also subject to compliance with extensive government laws and regulations related to employment practices and policies and the manufacture, preparation, and sale of food and alcohol. We may also become subject to lawsuits and other proceedings, as well as card network fines and penalties, arising out of the actual or alleged theft of our customers' credit or debit card information.

We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate is recorded. As of June 30, 2019 and December 31, 2018, we had $0.4 million and $0.5 million, respectively, accrued for legal proceedings. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period in the event of an unfavorable outcome, at present, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations or cash flows.

Unconditional Purchase Obligations

The Restaurant Group has unconditional purchase obligations with various vendors.  These purchase obligations are primarily food and beverage obligations with fixed commitments in regards to the time period of the contract and the quantities purchased with annual price adjustments that can fluctuate. We used both historical and projected volume and pricing as of June 30, 2019 to determine the amount of the obligations.

Purchase obligations as of June 30, 2019 are as follows (in millions):

2019 (remaining)	$	87.2
2020	67.4
2021	43.7
2022	4.4
2023	3.0
Thereafter	6.9
Total purchase commitments	$	212.6

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Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Information

Segment Information

Summarized financial information concerning our reportable segments is shown in the following tables.

Due to the July 2018 sale of LifeWorks discussed Note D, the results of Ceridian for the three and six months ended June 30, 2018 have been adjusted to remove the effects of the discontinued operations of LifeWorks as well as to reflect Ceridian's retrospective adoption of ASC Topic 606 and certain other accounting standards.

On February 8, 2019, the DNB Acquisition closed. Our chief operating decision maker reviews the full financial results of Dun & Bradstreet for purposes of assessing performance and allocating resources. Accordingly, we consider Dun & Bradstreet a reportable segment and have included the full results of Dun & Bradstreet subsequent to the DNB Acquisition, on a one quarter lag, in the tables below. See below for further discussion of Dun & Bradstreet and our accounting for our related investment.

As of and for the three months ended June 30, 2019:

	Restaurant Group			T-System			Ceridian			Dun & Bradstreet			Corporate and Other			Ceridian and Dun & Bradstreet Elimination			Total
	(in millions)
Restaurant revenues	$	266.5		$	—		$	—		$	—		$	—		$	—		$	266.5
Other operating revenues	—			12.9			196.3			174.1			5.7			(370.4		)	18.6
Revenues from external customers	266.5			12.9			196.3			174.1			5.7			(370.4		)	285.1
Interest, investment and other income, including realized gains and losses	2.8			(0.5		)	—			—			73.6			—			75.9
Total revenues and other income	269.3			12.4			196.3			174.1			79.3			(370.4		)	361.0
Depreciation and amortization	9.4			3.4			14.6			80.5			0.5			(95.1		)	13.3
Interest expense	(1.5		)	(1.4		)	(8.5		)	(49.1		)	(2.6		)	57.6			(5.5		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(11.6		)	(5.0		)	8.7			(111.6		)	62.5			102.9			45.9
Income tax (benefit) expense	—			(1.2		)	2.4			(30.5		)	9.7			28.1			8.5
(Loss) earnings, before equity in earnings (losses) of unconsolidated affiliates	(11.6		)	(3.8		)	6.3			(81.1		)	52.8			74.8			37.4
Equity in earnings (losses) of unconsolidated affiliates	—			—			—			—			0.4			(22.8		)	(22.4		)
Net (loss) earnings	$	(11.6	)	$	(3.8	)	$	6.3		$	(81.1	)	$	53.2		$	52.0		$	15.0
Assets	$	636.2		$	202.9		$	6,729.3		$	9,161.0		$	1,033.3		$	(15,890.3	)	$	1,872.4
Goodwill	76.5			88.3			1,952.8			2,797.6			—			(4,750.4		)	164.8

As of and for the three months ended June 30, 2018:

	Restaurant Group			T-System			Ceridian			Corporate and Other		Ceridian Elimination			Total
	(in millions)
Restaurant revenues	$	276.2		$	—		$	—		$	—	$	—		$	276.2
Other operating revenues	—			14.8			179.0			11.3		(179.0		)	26.1
Revenues from external customers	276.2			14.8			179.0			11.3		(179.0		)	302.3
Interest investment and other income, including realized gains and losses	1.4			—			—			66.7		—			68.1
Total revenues and other income	277.6			14.8			179.0			78.0		(179.0		)	370.4
Depreciation and amortization	10.7			3.7			14.2			0.5		(14.2		)	14.9
Interest expense	(3.8		)	(1.5		)	(43.4		)	5.1		43.4			(0.2		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(5.9		)	(2.6		)	(52.4		)	8.3		52.4			(0.2		)
Income tax (benefit) expense	—			(0.5		)	1.2			3.1		(1.2		)	2.6
(Loss) earnings before equity in earnings (losses) of unconsolidated affiliates	(5.9		)	(2.1		)	(53.6		)	5.2		53.6			(2.8		)
Equity in earnings (losses) of unconsolidated affiliates	—			—			—			0.1		(19.7		)	(19.6		)
Net (loss) earnings	$	(5.9	)	$	(2.1	)	$	(53.6	)	$	5.3	$	33.9		$	(22.4	)
Assets	$	477.5		$	221.9		$	6,319.7		$	660.5	$	(6,319.7	)	$	1,359.9
Goodwill	103.1			98.9			1,942.6			—		(1,942.6		)	$	202.0

As of and for the six months ended June 30, 2019:

	Restaurant Group			T-System			Ceridian			Dun & Bradstreet			Corporate and Other			Ceridian and Dun & Bradstreet Elimination			Total
	(in millions)
Restaurant revenues	$	524.3		$	—		$	—		$	—		$	—		$	—		$	524.3
Other operating revenues	—			25.1			400.0			174.1			10.2			(574.1		)	35.3
Revenues from external customers	524.3			25.1			400.0			174.1			10.2			(574.1		)	559.6
Interest, investment and other income, including realized gains and losses	3.5			(0.5		)	—			—			85.5			—			88.5
Total revenues and other income	527.8			24.6			400.0			174.1			95.7			(574.1		)	648.1
Depreciation and amortization	19.1			6.9			29.0			80.5			1.2			(109.5		)	27.2
Interest expense	(2.5		)	(2.8		)	(17.4		)	(49.1		)	(3.9		)	66.5			(9.2		)
(Loss) earnings before income taxes and equity in earnings of unconsolidated affiliates	(19.7		)	(9.9		)	25.6			(111.6		)	69.8			86.0			40.2
Income tax (benefit) expense	(0.1		)	(2.4		)	8.1			(30.5		)	6.2			22.4			3.7
(Loss) earnings, before equity in earnings (losses) of unconsolidated affiliates	(19.6		)	(7.5		)	17.5			(81.1		)	63.6			63.6			36.5
Equity in (losses) earnings of unconsolidated affiliates	—			—			—			—			0.7			(20.2		)	(19.5		)
Net (loss) earnings	$	(19.6	)	$	(7.5	)	$	17.5		$	(81.1	)	$	64.3		$	43.4		$	17.0
Assets	$	636.2		$	202.9		$	6,729.3		$	9,161.0		$	1,033.3		$	(15,890.3	)	$	1,872.4
Goodwill	76.5			88.3			1,952.8			2,797.6			—			(4,750.4		)	164.8

As of and for the six months ended June 30, 2018:

	Restaurant Group			T-System			Ceridian			Corporate and Other			Ceridian Elimination			Total
	(in millions)
Restaurant revenues	$	550.0		$	—		$	—		$	—		$	—		$	550.0
Other operating revenues	—			30.2			367.8			14.5			(367.8		)	44.7
Revenues from external customers	550.0			30.2			367.8			14.5			(367.8		)	594.7
Interest investment and other income, including realized gains and losses	1.4			—			—			68.0			—			69.4
Total revenues and other income	551.4			30.2			367.8			82.5			(367.8		)	664.1
Depreciation and amortization	21.4			7.3			28.1			0.5			(28.1		)	29.2
Interest expense	(7.5		)	(1.5		)	(65.6		)	5.8			65.6			(3.2		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(15.2		)	(3.4		)	(44.4		)	8.7			44.4			(9.9		)
Income tax (benefit) expense	—			(2.3		)	7.0			(0.6		)	(7.0		)	(2.9		)
(Loss) earnings before equity in earnings (losses) of unconsolidated affiliates	(15.2		)	(1.1		)	(51.4		)	9.3			51.4			(7.0		)
Equity in earnings (losses) of unconsolidated affiliates	0.1			—			—			0.8			(21.6		)	(20.7		)
Net (loss) earnings	$	(15.1	)	$	(1.1	)	$	(51.4	)	$	10.1		$	29.8		$	(27.7	)
Assets	$	477.5		$	221.9		$	6,319.7		$	660.5		$	(6,319.7	)	$	1,359.9
Goodwill	103.1			98.9			1,942.6			—			(1,942.6		)	$	202.0

The activities in our segments include the following:

• Restaurant Group. This segment consists of the operations of ABRH and 99 Restaurants, in which we have 65.4% and 88.5% ownership interests, respectively. ABRH and its affiliates are the owners and operators of the O'Charley's, Village Inn and Bakers Square food service and restaurant concepts, as well as the Legendary Baking bakery operation. 99 Restaurants and its affiliates are the owners and operators of Ninety Nine Restaurants restaurant concept.

• Ceridian. This segment consists of our 21.7% ownership interest in Ceridian. Ceridian, through its operating subsidiary, is a global company that offers a broad range of services and software designed to help employers more effectively manage employment processes, such as payroll, payroll related tax filing, human resource information systems, employee self-service, time and labor management, employee assistance and work-life programs, and recruitment and applicant screening. Ceridian's cloud offering, Dayforce, is a cloud solution that meets HCM needs with one employee record and one user experience throughout the application. Dayforce enables organizations to process payroll, maintain human resources records, manage benefits enrollment, schedule staff, and find and hire personnel, while monitoring compliance throughout the employee life cycle. Our chief operating decision maker reviews the full financial results of Ceridian for purposes of assessing performance and allocating resources. Thus, we consider Ceridian a reportable segment and have included the full financial results of Ceridian in the table above. We account for our investment in Ceridian under the equity method of accounting and therefore its results of operations do not consolidate into ours. Accordingly, we have presented the elimination of Ceridian's results in the Ceridian and Dun & Bradstreet Elimination section of the segment presentation above.

• Dun & Bradstreet. This segment consists of our 24.3% ownership interest in Dun & Bradstreet. Dun & Bradstreet helps companies around the world improve their business performance and it gleans insight from data to enable its customers to connect with the prospects, suppliers, clients and partners that matter most to them. Companies of every size rely on Dun & Bradstreet to help them manage risk and reveal opportunity. Dun & Bradstreet's global commercial database as of December 31, 2018 contained more than 300 million business records. Dun & Bradstreet transforms commercial data into valuable insight which is the foundation of its global solutions that customers rely on to make critical business decisions. Dun & Bradstreet provides solution sets that meet a diverse set of customer needs globally. Customers use Risk Management Solutions™ to mitigate credit, compliance and supplier risk, increase cash flow and drive increased profitability. Dun & Bradstreet's Sales & Marketing Solutions™ help customers better use data to grow sales, digitally engage with customers and prospects, improve marketing effectiveness and also for data management capabilities that provide effective and cost efficient marketing solutions to increase revenue from new and existing customers. Our chief operating decision maker reviews the full financial results of Dun & Bradstreet for purposes of assessing performance and allocating resources. Thus, we consider Dun & Bradstreet a reportable segment and have included the full results of

Dun & Bradstreet subsequent to the DNB Acquisition in the tables above. We account for Dun & Bradstreet using the equity method of accounting, and therefore its results do not consolidate into ours. Accordingly, we have presented the elimination of Dun & Bradstreet's results in the Ceridian and Dun & Bradstreet Elimination section of the segment presentation above. We account for our proportionate share of equity in Dun & Bradstreet's losses on a one quarter lag. The Company's net earnings and the segment tables above, respectively, for the three and six month periods ended June 30, 2019, include the Company’s equity in Dun & Bradstreet’s losses and complete results of Dun & Bradstreet, respectively, for the period from February 8, 2019 through March 31, 2019.

• T-System. This segment consists of the operations of our 97%-owned subsidiary, T-System, acquired on October 16, 2017. T-System is a provider of clinical documentation and coding solutions to hospital-based and free-standing emergency departments and urgent care facilities. T-System organizes itself into two businesses. The Clinical Documentation business offers software solutions providing clinical staff with full workflow operations that drive documentation completeness and revenue optimization to more than 240 customers at more than 450 customer sites. Additionally, the patented T-Sheet is the industry standard for emergency department documentation, with more than 200 customers at more than 475 customer sites. The Coding Software & Outsourced Solutions business provides a full-service outsourced coding solution as well as a cloud-based software-as-a-service solution for self-service coding. These offerings help more than 75 customers at over 400 sites optimize their revenue cycle workflow and customer revenue reimbursement through improved coding accuracy and compliance and coder productivity compared to in-house coding.

•

Corporate and Other. This nonreportable segment consists of our share in the operations of certain controlled portfolio companies and other equity investments, activity of the corporate holding company and certain intercompany eliminations and taxes.

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Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

The following supplemental cash flow information is provided with respect to certain cash payments, as well as certain non-cash investing and financing activities.

	Six months ended June 30,
	2019		2018
	(In millions)
Cash paid during the period:
Interest	$	7.5	$	1.3
Income taxes	23.5		—
Operating leases	31.4		—
Non-cash investing and financing activities:
Unsettled purchases of investment securities accrued at period end	$	—	$	3.5

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Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Revenue

Our revenue consists of:

		Three months ended June 30,				Six months ended June 30,
		2019		2018		2019		2018
Revenue Stream	Segment	Total Revenue
Restaurant revenue:		(in millions)
Restaurant sales	Restaurant Group	$	247.7	$	258.3	$	493.0	$	517.5
Bakery sales	Restaurant Group	17.4		16.3		28.4		29.5
Franchise and other	Restaurant Group	1.4		1.6		2.9		3.0
Total restaurant revenue		266.5		276.2		524.3		550.0
Other operating revenue:
T-System, point-in-time	T-System	4.9		5.9		9.7		12.6
T-System, over time	T-System	8.0		8.9		15.4		17.6
Real estate and resort	Corporate and other	5.7		5.4		10.1		8.3
Other	Corporate and other	—		5.9		0.1		6.2
Total other operating revenue		18.6		26.1		35.3		44.7
Total operating revenues		$	285.1	$	302.3	$	559.6	$	594.7

Restaurant revenue consists of restaurant sales, bakery operations, and, to a lesser extent, franchise revenue and other revenue. Restaurant sales include food and beverage sales and gift card breakage, are net of applicable state and local sales taxes and discounts, and are recognized at a point in time as services are performed and goods are provided. Revenue from bakery operations is recognized at a point in time in the period during which the products are shipped and control transfers to the customer. Franchise revenue and other revenue consist of development fees and royalties on sales by franchised units. Initial franchise fees are recognized as income upon commencement of the franchise operation and completion of all material services and conditions by the Company. Royalties are calculated as a percentage of the franchisee sales and recognized in the period in which the sales are generated. Revenue resulting from the sale of gift cards is recognized in the period in which the gift card is redeemed and is recorded as deferred revenue until recognized.

T-System recognizes revenue when a customer obtains control of the promised goods or services. The amount of revenue recognized is determined by the consideration that T-System expects to be entitled to in exchange for the goods and services. T-System's contracts with customers typically do not include variable consideration such as right of return or refund or other form of incentives or considerations payable to customers.

T-System offers a software as a service solution with full-service coding ("RevCycle+") available, through contracts with customers to either provide access to its proprietary coding software platform or provide medical chart coding services. Billing for both services occurs monthly as services are provided. Billing for medical chart coding services is based on a monthly fee which may vary based on the volume of services provided. Revenue for RevCycle+, including implementation and upfront training of customer personnel, is recognized ratably over the term of the contract as services are consumed by the customer.

T-System sells an electronic version of the medical documentation system (“EV”), provided in the form of a non-exclusive license to use the software at the sites under the agreement when the software is made available to the customer. EV contracts with customers can include various combinations of products and services which are generally capable of being distinct and accounted for as separate performance obligations such as software licenses, implementation services, third party interface licenses or subscriptions, hardware, and maintenance (software updates and technical support services). T-System sells software licenses through recurring fixed-term or subscription fee arrangements and one-time perpetual license arrangements (perpetual licenses), and as software as a service solution (cloud solutions). EV term license and perpetual license contracts include performance obligations that are both satisfied at a point in time and over a period of time as goods and services are transferred. T-System also sells legacy medical documentation templates ("T-Sheets") to emergency care providers to be used for documentation of patient care. T-Sheets includes various optional recurring fixed-term or subscription licenses which are recognized over time after access to the template has been delivered to the customer. EV software as a service contracts typically include one stand ready performance obligation to provide subscription services which are satisfied over time. Judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and

recognized over time. Judgment is required to determine the standalone selling price ("SSP") for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include our pricing strategy and other observable inputs.

T-System typically bills its customers on a monthly or other frequent periodic basis in accordance with the underlying contracts with its customers. We have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers. Revenue is recognized net of any taxes collected from customers.

Other operating revenue consists of income generated by our resort operations which includes sales of real estate, lodging rentals, food and beverage sales, and other income from various resort services offered. Revenue is recognized upon closing of the sale of real estate or once goods and services have been provided and billed to the customer.

Contract Balances

The following table provides information about receivables and deferred revenue:

	June 30,		December 31,
	2019		2018
	(In millions)
Trade receivables, billed (1)	$	25.7	$	40.3
Unbilled accounts receivable, current (1)	7.4		9.5
Unbilled accounts receivable, long term (2)	10.6		10.6
Deferred revenue (contract liabilities)	25.5		31.7

(1) Included in Trade receivables on the Condensed Consolidated Balance Sheets

(2) Included in Other noncurrent assets on the Condensed Consolidated Balance Sheets

Unbilled accounts receivable is recorded primarily for our T-System EV and RevCycle+ revenue related to software, licenses, license implementation (including upfront training) and other performance obligations which are recognized in revenue at a point-in-time upon satisfaction of performance obligations, but collected in cash ratably over the term of the underlying contract.

Deferred revenue is recorded primarily for restaurant gift card sales and certain T-System revenue. The unrecognized portion of such revenue is recorded as Deferred revenue in the Condensed Consolidated Balance Sheets. Revenue of $8.9 million and $22.3 million was recognized in the three and six months ended June 30, 2019, respectively, that was included in Deferred revenue at the beginning of the period.

There was no impairment related to contract balances.

As of June 30, 2019, revenue estimated to be recognized in the future from the Company’s remaining unfulfilled performance obligations is not material.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

The Company, in the normal course of business, engages in certain activities that involve variable interest entities ("VIEs"), which are legal entities in which the equity investors as a group lack any of the characteristics of a controlling interest. The primary beneficiary of a VIE is generally the enterprise that has both the power to direct the activities most significant to the economic performance of the VIE and the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. The Company evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. If the Company is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Company is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under accounting standards as deemed appropriate. As of and for the periods ended June 30, 2019 and December 31, 2018 we are not the primary beneficiary of any VIEs.

Unconsolidated VIEs

The table below summarizes select information related to variable interests held by the Company as of June 30, 2019 and December 31, 2018, of which we are not the primary beneficiary:

		June 30, 2019				December 31, 2018
		Total Assets		Maximum Exposure		Total Assets		Maximum Exposure
	(in millions)
Investments in unconsolidated affiliates		$	504.9	$	504.9	$	9.2	$	9.2

Investments in Unconsolidated Affiliates

The Company holds variable interests in certain unconsolidated affiliates, outlined in the table above, which are primarily comprised of Dun & Bradstreet (see Note D) and, to a lesser extent, funds that hold minority ownership interests primarily in healthcare-related entities. The principal risk to which these investments and funds are exposed is the credit risk of the underlying investees. We do not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. The assets are included in investments in unconsolidated affiliates on the Condensed Consolidated Balance Sheets and accounted for under the equity method of accounting.

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Basis of Financial Statements (Policies)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and the instructions to Form 10-Q and Article 10 of Regulation S-X and include the historical accounts as well as wholly-owned and majority-owned subsidiaries of the Company. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K (our "Annual Report") for the year ended December 31, 2018.

Following the split-off of the former portfolio company investments by Fidelity National Financial, Inc. ("FNF"), and subsequent contribution to us (the "FNF Split-Off"), the Company is allocated certain corporate overhead and management services expenses from FNF based on the terms of the Corporate Services Agreement ("CSA"), dated as of November 17, 2017, by and between the Company and FNF and our proportionate share of the expense determined on actual usage and our best estimate of management's allocation of time. Both FNF and Cannae believe such allocations are reasonable; however, they may not be indicative of the actual results of operations or cash flows of the Company had the Company been operating as an independent, publicly traded company for the periods presented or the amounts that will be incurred by the Company in the future. FNF is considered a related party to the Company.

All intercompany profits, transactions and balances have been eliminated. Our investments in non-majority-owned partnerships and affiliates are accounted for using the equity method until such time that they may become wholly or majority-owned. Earnings attributable to noncontrolling interests are recorded on the Condensed Consolidated Statements of Operations relating to majority-owned subsidiaries with the appropriate noncontrolling interest that represents the portion of equity not related to our ownership interest recorded on the Condensed Consolidated Balance Sheets in each period.

Earnings Per Share

Earnings Per Share

Basic earnings per share, as presented on the Condensed Consolidated Statement of Operations, is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period.

In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. We have granted certain shares of restricted stock which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported.

Instruments which provide the ability to purchase shares of our common stock that are antidilutive are excluded from the computation of diluted earnings per share.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02 Leases (Topic 842). The amendments in this ASU introduce broad changes to the accounting and reporting for leases by lessees. The main provisions of the new standard include: clarifications to the definitions of a lease, components of leases, and criteria for determining lease classification; requiring virtually all leased assets, including operating leases and related liabilities, to be reflected on the lessee's balance sheet; and expanding and adding to the required disclosures for lessees. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842): Targeted Improvements which allows entities the option to adopt this standard by recording a cumulative-effect adjustment to opening equity, if necessary, and only include required disclosures for prior periods.

We adopted Topic 842 on January 1, 2019 using a modified retrospective approach prescribed by ASU 2018-11 and recorded an operating lease right-of-use asset (Lease assets) of $246.0 million and an operating lease liability for future discounted lease payment obligations (Lease liabilities) of $279.4 million at the date of adoption. The other material impacts of the adoption of Topic 842 also resulted in a decrease of $9.1 million and $42.3 million to our Other intangible assets, net and Accounts payable and accrued liabilities, respectively. We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance.

See Note B. Leases for further discussion of our leasing arrangements and related accounting.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of debt securities available for sale. This update is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the effect this new guidance will have on our financial statements and related disclosures and have not yet concluded on its effects. We do not expect to early adopt the standard.

Revenue Recognition

Unbilled accounts receivable is recorded primarily for our T-System EV and RevCycle+ revenue related to software, licenses, license implementation (including upfront training) and other performance obligations which are recognized in revenue at a point-in-time upon satisfaction of performance obligations, but collected in cash ratably over the term of the underlying contract.

Deferred revenue is recorded primarily for restaurant gift card sales and certain T-System revenue. The unrecognized portion of such revenue is recorded as Deferred revenue in the Condensed Consolidated Balance Sheets.

Restaurant revenue consists of restaurant sales, bakery operations, and, to a lesser extent, franchise revenue and other revenue. Restaurant sales include food and beverage sales and gift card breakage, are net of applicable state and local sales taxes and discounts, and are recognized at a point in time as services are performed and goods are provided. Revenue from bakery operations is recognized at a point in time in the period during which the products are shipped and control transfers to the customer. Franchise revenue and other revenue consist of development fees and royalties on sales by franchised units. Initial franchise fees are recognized as income upon commencement of the franchise operation and completion of all material services and conditions by the Company. Royalties are calculated as a percentage of the franchisee sales and recognized in the period in which the sales are generated. Revenue resulting from the sale of gift cards is recognized in the period in which the gift card is redeemed and is recorded as deferred revenue until recognized.

T-System recognizes revenue when a customer obtains control of the promised goods or services. The amount of revenue recognized is determined by the consideration that T-System expects to be entitled to in exchange for the goods and services. T-System's contracts with customers typically do not include variable consideration such as right of return or refund or other form of incentives or considerations payable to customers.

T-System offers a software as a service solution with full-service coding ("RevCycle+") available, through contracts with customers to either provide access to its proprietary coding software platform or provide medical chart coding services. Billing for both services occurs monthly as services are provided. Billing for medical chart coding services is based on a monthly fee which may vary based on the volume of services provided. Revenue for RevCycle+, including implementation and upfront training of customer personnel, is recognized ratably over the term of the contract as services are consumed by the customer.

T-System sells an electronic version of the medical documentation system (“EV”), provided in the form of a non-exclusive license to use the software at the sites under the agreement when the software is made available to the customer. EV contracts with customers can include various combinations of products and services which are generally capable of being distinct and accounted for as separate performance obligations such as software licenses, implementation services, third party interface licenses or subscriptions, hardware, and maintenance (software updates and technical support services). T-System sells software licenses through recurring fixed-term or subscription fee arrangements and one-time perpetual license arrangements (perpetual licenses), and as software as a service solution (cloud solutions). EV term license and perpetual license contracts include performance obligations that are both satisfied at a point in time and over a period of time as goods and services are transferred. T-System also sells legacy medical documentation templates ("T-Sheets") to emergency care providers to be used for documentation of patient care. T-Sheets includes various optional recurring fixed-term or subscription licenses which are recognized over time after access to the template has been delivered to the customer. EV software as a service contracts typically include one stand ready performance obligation to provide subscription services which are satisfied over time. Judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and

recognized over time. Judgment is required to determine the standalone selling price ("SSP") for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include our pricing strategy and other observable inputs.

T-System typically bills its customers on a monthly or other frequent periodic basis in accordance with the underlying contracts with its customers. We have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers. Revenue is recognized net of any taxes collected from customers.

Other operating revenue consists of income generated by our resort operations which includes sales of real estate, lodging rentals, food and beverage sales, and other income from various resort services offered. Revenue is recognized upon closing of the sale of real estate or once goods and services have been provided and billed to the customer.

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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Operating Lease Cost

Our operating lease costs for the three and six months ended June 30, 2019 consist of:

		Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Lease Cost	Classification	(in millions)
Operating lease cost	Cost of restaurant revenue	$	13.7	$	28.3
	Other operating expense	$	0.2	$	0.3
Total operating lease cost		$	13.9	$	28.6

Future Undiscounted Payments Under Operating Lease Arrangements Under ASC Topic 842

Future payments under operating lease arrangements accounted for under ASC Topic 842 are as follows (in millions):

2019 (remaining)	$	30.7
2020	59.3
2021	53.0
2022	41.9
2023	35.1
Thereafter	137.4
Total lease payments, undiscounted	$	357.4
Less: discount	96.4
Total operating lease liability as of June 30, 2019, at present value	$	261.0
Less: operating lease liability as of June 30, 2019, current	43.0
Operating lease liability as of June 30, 2019, long term	$	218.0

Future Payments Under Operating Lease Arrangements Under ASC Topic 840

Future payments under operating lease arrangements accounted for under ASC Topic 840 as of December 31, 2018 are as follows (in millions):

2019	$	62.0
2020	57.7
2021	51.3
2022	40.7
2023	34.1
Thereafter	133.2
Total future minimum operating lease payments	$	379.0

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, respectively:

	June 30, 2019
	Level 1		Level 2		Level 3		Total
	(In millions)
Fixed-maturity securities available for sale:
Corporate debt securities	$	—	$	—	$	17.7	$	17.7
Total	$	—	$	—	$	17.7	$	17.7

	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(In millions)
Fixed-maturity securities available for sale:
Corporate debt securities	$	—	$	—	$	17.8	$	17.8
Total	$	—	$	—	$	17.8	$	17.8

Summary of Changes in the Fair Values of Level 3 Assets Measured on a Recurring Basis

The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three and six months ended June 30, 2019 and 2018 (in millions).

	Three months ended June 30, 2019		Three months ended June 30, 2018
	Corporate debt		Corporate debt
	securities		securities
Fair value, beginning of period	$	17.5	$	21.4
Paid-in-kind dividends (1)	0.1		0.1
Accretion of original purchase discount (1)	—		0.2
Net valuation gain (loss) included in other comprehensive earnings (2)	0.1		(0.1		)
Fair value, end of period	$	17.7	$	21.6

	Six months ended June 30, 2019			Six months ended June 30, 2018
	Corporate debt			Corporate debt
	securities			securities
Fair value, beginning of period	$	17.8		$	—
Transfers from Level 2	—			21.4
Paid-in-kind dividends (1)	0.1			0.1
Accretion of original purchase discount (1)	—			0.2
Impairment (1)	(0.4		)	—
Net valuation gain (loss) included in other comprehensive earnings (2)	0.2			(0.1		)
Fair value, end of period	$	17.7		$	21.6

_____________________________________

(1) Included in Interest, investment and other income on the Condensed Consolidated Statements of Operations

(2) Included in Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on the Condensed Consolidated Statements of Comprehensive Earnings

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Investments (Tables)

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Carrying Amounts and Fair Values of Available for Sale Securities

 The carrying amounts and fair values of our available for sale securities at June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019
	Carrying Value		Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
	(In millions)
Fixed maturity securities available for sale:
Corporate debt securities	$	17.7	$	19.0	$	0.6	$	(1.9	)	$	17.7
Total	$	17.7	$	19.0	$	0.6	$	(1.9	)	$	17.7

	December 31, 2018
	Carrying Value		Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
	(In millions)
Fixed maturity securities available for sale:
Corporate debt securities	$	17.8	$	18.8	$	0.9	$	(1.9	)	$	17.8
Total	$	17.8	$	18.8	$	0.9	$	(1.9	)	$	17.8

Schedule of Investment Securities in a Continuous Unrealized Loss Position

Net unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 were as follows (in millions):

June 30, 2019	12 Months or Longer
	Fair		Unrealized
	Value		Losses
Corporate debt securities	$	10.1	$	(1.9	)
Total temporarily impaired securities	$	10.1	$	(1.9	)

December 31, 2018	Less than 12 Months
	Fair		Unrealized
	Value		Losses
Corporate debt securities	$	10.4	$	(1.9	)
Total temporarily impaired securities	$	10.4	$	(1.9	)

Schedule of Investments and Equity in Earnings of Unconsolidated Affiliates

Equity in earnings (losses) of unconsolidated affiliates for the three and six months ended June 30, 2019 and June 30, 2018 consisted of the following (in millions):

	Three months ended June 30, 2019			Three months ended June 30, 2018			Six months ended June 30, 2019			Six months ended June 30, 2018
Ceridian	$	1.4		$	(19.7	)	$	4.0		$	(21.6	)
Dun & Bradstreet (defined below)	(24.2		)	—			(24.2		)	—
Other	0.4			0.1			0.7			0.9
Total	$	(22.4	)	$	(19.6	)	$	(19.5	)	$	(20.7	)

Investments in unconsolidated affiliates recorded using the equity method of accounting as of June 30, 2019 and December 31, 2018 consisted of the following (in millions):

	Ownership at June 30, 2019		June 30, 2019		December 31, 2018
Ceridian	21.7	%	$	380.5	$	359.7
Dun & Bradstreet (defined below)	24.3	%	497.5		—
Other	various		35.3		37.5
Total			$	913.3	$	397.2

Summarized Financial Information For Equity Method Investment

Summarized financial information for Dun & Bradstreet for the relevant dates and time periods included in Investments in unconsolidated affiliates and Equity in earnings (losses) of unconsolidated affiliates in our Condensed Consolidated Balance Sheets and Statements of Operations, respectively, is presented below. We report our equity in earnings or loss of Dun & Bradstreet on a one quarter lag. Accordingly, our net earnings for the three and six month periods ended June 30, 2019, include the Company’s equity in Dun & Bradstreet’s losses for the period from February 8, 2019 through March 31, 2019.

	March 31, 2019
	(In millions)
Total current assets	$	420.7
Goodwill and other intangible assets, net	8,285.7
Other assets	454.6
Total assets	$	9,161.0
Current liabilities	$	778.0
Long-term debt	3,821.0
Other non-current liabilities	1,636.5
Total liabilities	6,235.5
Preferred equity	1,028.4
Partner's capital	1,897.1
Total liabilities and equity	$	9,161.0

	Period from February 8, 2019 to March 31, 2019
	(In millions)
Total revenues	$	174.1
Loss before income taxes	(111.6		)
Net loss	(81.1		)
Dividends attributable to preferred stock and noncontrolling interest expense	(18.3		)
Net loss attributable to Dun & Bradstreet	(99.4		)

Summarized financial information for Ceridian for the relevant dates and time periods included in Investments in unconsolidated affiliates and Equity in earnings (losses) of unconsolidated affiliates in our Condensed Consolidated Balance Sheets and Statements of Operations, respectively, is presented below. LifeWorks Corporation Ltd. ("LifeWorks"), a former subsidiary of Ceridian, was distributed pro-rata to Ceridian shareholders contemporaneously with Ceridian's initial public offering in April 2018. On July 27, 2018, LifeWorks was sold. The results of Ceridian for the three and six months ended June 30, 2018 have been adjusted to remove the effects of the discontinued operations of LifeWorks as well as to reflect Ceridian's retrospective adoption of ASC Topic 606 and certain other accounting standards.

	June 30, 2019		December 31, 2018
	(In millions)
Total current assets before customer funds	$	365.1	$	330.6
Customer funds	3,986.7		2,603.5
Goodwill and other intangible assets, net	2,132.7		2,114.9
Other assets	244.8		198.8
Total assets	$	6,729.3	$	5,247.8
Current liabilities before customer obligations	$	129.8	$	149.9
Customer obligations	3,963.5		2,619.7
Long-term obligations, less current portion	660.7		663.5
Other long-term liabilities	218.2		199.2
Total liabilities	4,972.2		3,632.3
Equity	1,757.1		1,615.5
Total liabilities and equity	$	6,729.3	$	5,247.8

	Three months ended June 30, 2019		Three months ended June 30, 2018			Six months ended June 30, 2019		Six months ended June 30, 2018
	(In millions)					(In millions)
Total revenues	$	196.3	$	179.0		$	400.0	$	367.8
Earnings (loss) before income taxes	8.7		(52.4		)	25.6		(44.4		)
Earnings (loss) before discontinued operations	6.3		(53.6		)	17.5		(51.4		)
Net earnings (loss) attributable to Ceridian	6.3		(63.3		)	17.5		(62.7		)

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Inventory (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consists of the following:

	June 30, 2019			December 31, 2018
	(In millions)
Bakery inventory:
Raw materials	$	6.3		$	6.8
Semi-finished and finished goods	16.2			5.6
Packaging	1.7			2.4
Obsolescence reserve	(1.0		)	(3.0		)
Total bakery inventory	23.2			11.8
Other restaurant-related inventory	9.0			10.3
Other	0.3			0.2
Total inventory	$	32.5		$	22.3

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Notes Payable (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable consists of the following:

	June 30, 2019		December 31, 2018
	(In millions)
99 Term Loan	$	33.7	$	36.1
99 Revolver	3.0		—
99 DLOC Loan	—		—
Margin Facility	150.0		—
Brasada Interstate Loans	11.7		11.7
Other	2.7		0.3
Notes payable, total	$	201.1	$	48.1
Less: Notes payable, current	5.9		5.9
Notes payable, long term	$	195.2	$	42.2

Gross Principal Maturities of Notes Payable

Gross principal maturities of notes payable at June 30, 2019 are as follows (in millions):

2019 (remaining)	$	3.4
2020	6.9
2021	156.1
2022	6.1
2023	19.4
Thereafter	10.2
	$	202.1

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Purchase Obligations

Purchase obligations as of June 30, 2019 are as follows (in millions):

2019 (remaining)	$	87.2
2020	67.4
2021	43.7
2022	4.4
2023	3.0
Thereafter	6.9
Total purchase commitments	$	212.6

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Summary of Financial Information Concerning Reportable Segments

Summarized financial information concerning our reportable segments is shown in the following tables.

Due to the July 2018 sale of LifeWorks discussed Note D, the results of Ceridian for the three and six months ended June 30, 2018 have been adjusted to remove the effects of the discontinued operations of LifeWorks as well as to reflect Ceridian's retrospective adoption of ASC Topic 606 and certain other accounting standards.

On February 8, 2019, the DNB Acquisition closed. Our chief operating decision maker reviews the full financial results of Dun & Bradstreet for purposes of assessing performance and allocating resources. Accordingly, we consider Dun & Bradstreet a reportable segment and have included the full results of Dun & Bradstreet subsequent to the DNB Acquisition, on a one quarter lag, in the tables below. See below for further discussion of Dun & Bradstreet and our accounting for our related investment.

As of and for the three months ended June 30, 2019:

	Restaurant Group			T-System			Ceridian			Dun & Bradstreet			Corporate and Other			Ceridian and Dun & Bradstreet Elimination			Total
	(in millions)
Restaurant revenues	$	266.5		$	—		$	—		$	—		$	—		$	—		$	266.5
Other operating revenues	—			12.9			196.3			174.1			5.7			(370.4		)	18.6
Revenues from external customers	266.5			12.9			196.3			174.1			5.7			(370.4		)	285.1
Interest, investment and other income, including realized gains and losses	2.8			(0.5		)	—			—			73.6			—			75.9
Total revenues and other income	269.3			12.4			196.3			174.1			79.3			(370.4		)	361.0
Depreciation and amortization	9.4			3.4			14.6			80.5			0.5			(95.1		)	13.3
Interest expense	(1.5		)	(1.4		)	(8.5		)	(49.1		)	(2.6		)	57.6			(5.5		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(11.6		)	(5.0		)	8.7			(111.6		)	62.5			102.9			45.9
Income tax (benefit) expense	—			(1.2		)	2.4			(30.5		)	9.7			28.1			8.5
(Loss) earnings, before equity in earnings (losses) of unconsolidated affiliates	(11.6		)	(3.8		)	6.3			(81.1		)	52.8			74.8			37.4
Equity in earnings (losses) of unconsolidated affiliates	—			—			—			—			0.4			(22.8		)	(22.4		)
Net (loss) earnings	$	(11.6	)	$	(3.8	)	$	6.3		$	(81.1	)	$	53.2		$	52.0		$	15.0
Assets	$	636.2		$	202.9		$	6,729.3		$	9,161.0		$	1,033.3		$	(15,890.3	)	$	1,872.4
Goodwill	76.5			88.3			1,952.8			2,797.6			—			(4,750.4		)	164.8

As of and for the three months ended June 30, 2018:

	Restaurant Group			T-System			Ceridian			Corporate and Other		Ceridian Elimination			Total
	(in millions)
Restaurant revenues	$	276.2		$	—		$	—		$	—	$	—		$	276.2
Other operating revenues	—			14.8			179.0			11.3		(179.0		)	26.1
Revenues from external customers	276.2			14.8			179.0			11.3		(179.0		)	302.3
Interest investment and other income, including realized gains and losses	1.4			—			—			66.7		—			68.1
Total revenues and other income	277.6			14.8			179.0			78.0		(179.0		)	370.4
Depreciation and amortization	10.7			3.7			14.2			0.5		(14.2		)	14.9
Interest expense	(3.8		)	(1.5		)	(43.4		)	5.1		43.4			(0.2		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(5.9		)	(2.6		)	(52.4		)	8.3		52.4			(0.2		)
Income tax (benefit) expense	—			(0.5		)	1.2			3.1		(1.2		)	2.6
(Loss) earnings before equity in earnings (losses) of unconsolidated affiliates	(5.9		)	(2.1		)	(53.6		)	5.2		53.6			(2.8		)
Equity in earnings (losses) of unconsolidated affiliates	—			—			—			0.1		(19.7		)	(19.6		)
Net (loss) earnings	$	(5.9	)	$	(2.1	)	$	(53.6	)	$	5.3	$	33.9		$	(22.4	)
Assets	$	477.5		$	221.9		$	6,319.7		$	660.5	$	(6,319.7	)	$	1,359.9
Goodwill	103.1			98.9			1,942.6			—		(1,942.6		)	$	202.0

As of and for the six months ended June 30, 2019:

	Restaurant Group			T-System			Ceridian			Dun & Bradstreet			Corporate and Other			Ceridian and Dun & Bradstreet Elimination			Total
	(in millions)
Restaurant revenues	$	524.3		$	—		$	—		$	—		$	—		$	—		$	524.3
Other operating revenues	—			25.1			400.0			174.1			10.2			(574.1		)	35.3
Revenues from external customers	524.3			25.1			400.0			174.1			10.2			(574.1		)	559.6
Interest, investment and other income, including realized gains and losses	3.5			(0.5		)	—			—			85.5			—			88.5
Total revenues and other income	527.8			24.6			400.0			174.1			95.7			(574.1		)	648.1
Depreciation and amortization	19.1			6.9			29.0			80.5			1.2			(109.5		)	27.2
Interest expense	(2.5		)	(2.8		)	(17.4		)	(49.1		)	(3.9		)	66.5			(9.2		)
(Loss) earnings before income taxes and equity in earnings of unconsolidated affiliates	(19.7		)	(9.9		)	25.6			(111.6		)	69.8			86.0			40.2
Income tax (benefit) expense	(0.1		)	(2.4		)	8.1			(30.5		)	6.2			22.4			3.7
(Loss) earnings, before equity in earnings (losses) of unconsolidated affiliates	(19.6		)	(7.5		)	17.5			(81.1		)	63.6			63.6			36.5
Equity in (losses) earnings of unconsolidated affiliates	—			—			—			—			0.7			(20.2		)	(19.5		)
Net (loss) earnings	$	(19.6	)	$	(7.5	)	$	17.5		$	(81.1	)	$	64.3		$	43.4		$	17.0
Assets	$	636.2		$	202.9		$	6,729.3		$	9,161.0		$	1,033.3		$	(15,890.3	)	$	1,872.4
Goodwill	76.5			88.3			1,952.8			2,797.6			—			(4,750.4		)	164.8

As of and for the six months ended June 30, 2018:

	Restaurant Group			T-System			Ceridian			Corporate and Other			Ceridian Elimination			Total
	(in millions)
Restaurant revenues	$	550.0		$	—		$	—		$	—		$	—		$	550.0
Other operating revenues	—			30.2			367.8			14.5			(367.8		)	44.7
Revenues from external customers	550.0			30.2			367.8			14.5			(367.8		)	594.7
Interest investment and other income, including realized gains and losses	1.4			—			—			68.0			—			69.4
Total revenues and other income	551.4			30.2			367.8			82.5			(367.8		)	664.1
Depreciation and amortization	21.4			7.3			28.1			0.5			(28.1		)	29.2
Interest expense	(7.5		)	(1.5		)	(65.6		)	5.8			65.6			(3.2		)
(Loss) earnings before income taxes and equity in earnings (losses) of unconsolidated affiliates	(15.2		)	(3.4		)	(44.4		)	8.7			44.4			(9.9		)
Income tax (benefit) expense	—			(2.3		)	7.0			(0.6		)	(7.0		)	(2.9		)
(Loss) earnings before equity in earnings (losses) of unconsolidated affiliates	(15.2		)	(1.1		)	(51.4		)	9.3			51.4			(7.0		)
Equity in earnings (losses) of unconsolidated affiliates	0.1			—			—			0.8			(21.6		)	(20.7		)
Net (loss) earnings	$	(15.1	)	$	(1.1	)	$	(51.4	)	$	10.1		$	29.8		$	(27.7	)
Assets	$	477.5		$	221.9		$	6,319.7		$	660.5		$	(6,319.7	)	$	1,359.9
Goodwill	103.1			98.9			1,942.6			—			(1,942.6		)	$	202.0

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Cash Flow information

The following supplemental cash flow information is provided with respect to certain cash payments, as well as certain non-cash investing and financing activities.

	Six months ended June 30,
	2019		2018
	(In millions)
Cash paid during the period:
Interest	$	7.5	$	1.3
Income taxes	23.5		—
Operating leases	31.4		—
Non-cash investing and financing activities:
Unsettled purchases of investment securities accrued at period end	$	—	$	3.5

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Our revenue consists of:

		Three months ended June 30,				Six months ended June 30,
		2019		2018		2019		2018
Revenue Stream	Segment	Total Revenue
Restaurant revenue:		(in millions)
Restaurant sales	Restaurant Group	$	247.7	$	258.3	$	493.0	$	517.5
Bakery sales	Restaurant Group	17.4		16.3		28.4		29.5
Franchise and other	Restaurant Group	1.4		1.6		2.9		3.0
Total restaurant revenue		266.5		276.2		524.3		550.0
Other operating revenue:
T-System, point-in-time	T-System	4.9		5.9		9.7		12.6
T-System, over time	T-System	8.0		8.9		15.4		17.6
Real estate and resort	Corporate and other	5.7		5.4		10.1		8.3
Other	Corporate and other	—		5.9		0.1		6.2
Total other operating revenue		18.6		26.1		35.3		44.7
Total operating revenues		$	285.1	$	302.3	$	559.6	$	594.7

Contract Balances, Information About Receivables and Deferred Revenue

The following table provides information about receivables and deferred revenue:

	June 30,		December 31,
	2019		2018
	(In millions)
Trade receivables, billed (1)	$	25.7	$	40.3
Unbilled accounts receivable, current (1)	7.4		9.5
Unbilled accounts receivable, long term (2)	10.6		10.6
Deferred revenue (contract liabilities)	25.5		31.7

(1) Included in Trade receivables on the Condensed Consolidated Balance Sheets

(2) Included in Other noncurrent assets on the Condensed Consolidated Balance Sheets

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

The table below summarizes select information related to variable interests held by the Company as of June 30, 2019 and December 31, 2018, of which we are not the primary beneficiary:

		June 30, 2019				December 31, 2018
		Total Assets		Maximum Exposure		Total Assets		Maximum Exposure
	(in millions)
Investments in unconsolidated affiliates		$	504.9	$	504.9	$	9.2	$	9.2

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Basis of Financial Statements - Description of the Business (Details) - USD ($) $ in Millions	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net asset value	$ 1,252.4	$ 1,226.0	$ 1,199.7	$ 1,168.2	$ 1,146.8	$ 1,153.1

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Basis of Financial Statements - Recent Developments (Details) $ / shares in Units, shares in Millions, $ in Millions				1 Months Ended	3 Months Ended	6 Months Ended		12 Months Ended
	Jul. 23, 2019 USD ($)	May 22, 2019 USD ($) $ / shares shares	Mar. 21, 2019 USD ($)	Jun. 30, 2019 USD ($) stores	Jun. 30, 2019 USD ($) stores	Jun. 30, 2019 USD ($) stores	Jun. 30, 2018 USD ($)	Dec. 31, 2019 USD ($)	Apr. 30, 2019	Mar. 31, 2019 USD ($)	Feb. 08, 2019 USD ($)	Dec. 31, 2018 USD ($)
Subsidiary, Sale of Stock [Line Items]
Additional investment						$ 526.2	$ 0.0
Reclass from property and equipment, net				$ (160.4)	$ (160.4)	(160.4)						$ (176.4)
Proceeds from sale of corporate office						13.2	0.0
Proceeds from sale of corporate offices and stores						11.4	$ 3.2
Investment in partnership				913.3	913.3	913.3						397.2
ABRH | Restatement Adjustment
Subsidiary, Sale of Stock [Line Items]
Reclass from property and equipment, net				$ (2.4)	$ (2.4)	$ (2.4)
ABRH | Disposal Group, Held-for-sale, Not Discontinued Operations
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of corporate office			$ 13.2
Lease term			15 years
Liability for finance obligation										$ 13.2
Number of stores sold | stores				2	2	2
Proceeds from sale of corporate offices and stores					$ 8.5
ABRH | Disposal Group, Held-for-sale, Not Discontinued Operations | Restatement Adjustment
Subsidiary, Sale of Stock [Line Items]
Real estate assets held for sale				$ 2.4	2.4	$ 2.4
Reclass from property and equipment, net										$ 4.3
ABRH | Disposal Group, Held-for-sale, Not Discontinued Operations | Prepaid Expenses and Other Current Assets
Subsidiary, Sale of Stock [Line Items]
Real estate assets held for sale				(7.0)	$ (7.0)	$ (7.0)
Dun And Bradstreet Corporation
Subsidiary, Sale of Stock [Line Items]
Additional investment				$ 23.5
Ownership (as a percent)				24.30%	24.30%	24.30%			24.30%
Investment in partnership				$ 497.5	$ 497.5	$ 497.5						0.0
Dun And Bradstreet Corporation | Dun And Bradstreet Corporation | Equity Commitment to Purchase, Retained And Funded | Cannae
Subsidiary, Sale of Stock [Line Items]
Investment commitment											$ 505.6
Ceridian
Subsidiary, Sale of Stock [Line Items]
Ownership (as a percent)				21.70%	21.70%	21.70%
Investment in partnership				$ 380.5	$ 380.5	$ 380.5						$ 359.7
Ceridian | Underwritten Secondary Public Offering
Subsidiary, Sale of Stock [Line Items]
Sale of stock (in shares) | shares		2.0
Sale of stock, price per share received (usd per share) | $ / shares		$ 50.50
Sale of stock, discounted price per share (usd per share) | $ / shares		$ 50.25
Proceeds from sale of stock		$ 100.5
Gain on sale of stock		71.1
Losses on sale of stock		4.2
Sale of stock, tax benefit		$ 1.1
QOMPLX, Inc. | Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Additional investment	$ 15.0
Ownership (as a percent)	19.90%
Investment in partnership	$ 79.0
Forecast | QOMPLX, Inc. | Equity Investment, Funding | Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Additional investment								$ 15.0

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Basis of Financial Statements - Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Antidilutive shares excluded from calculation of diluted earnings per share (in shares)	0	100,000	0	100,000

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Basis of Financial Statements - Income Tax (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Effective tax rate	18.50%	(1300.00%)	9.20%	29.30%

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Basis of Financial Statements - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease, right-of-use asset	$ 228.4		$ 0.0
Operating lease liability	$ 261.0
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease, right-of-use asset		$ 246.0
Operating lease liability		279.4
Prepaid expense and other assets		9.1
Accounts payable and accrued liabilities		$ 42.3

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Basis of Financial Statements - Revision of Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Jan. 01, 2018	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Adjustment for cumulative effect of adoption of accounting standard					$ 15.5
Depreciation and amortization			$ (27.3)	$ (29.2)
Income tax expense (benefit)	$ (8.5)	$ (2.6)	(3.7)	2.9
Net earnings (loss)	15.0	(22.4)	17.0	(27.7)
Reclassification adjustments for unrealized gains and losses on unconsolidated affiliates, net of tax, included in net earnings	4.1	16.7	4.7	16.7
Comprehensive loss	24.5	(6.2)	33.1	(16.1)
Comprehensive earnings (loss) attributable to Cannae Holdings, Inc.	29.0	(3.6)	40.7	(9.3)
Previously Reported
Schedule of Equity Method Investments [Line Items]
Reclassification adjustments for unrealized gains and losses on unconsolidated affiliates, net of tax, included in net earnings		(16.7)		(16.7)
Comprehensive loss		16.7		16.7
Comprehensive earnings (loss) attributable to Cannae Holdings, Inc.		16.7		16.7
Retained Earnings
Schedule of Equity Method Investments [Line Items]
Adjustment for cumulative effect of adoption of accounting standard					$ 20.5
Net earnings (loss)	$ 19.5	(19.8)	$ 24.6	(20.9)
Decrease To other operating revenue | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Other operating revenue		1.6		3.1
Decrease to depreciation and amortization | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Depreciation and amortization		0.4		1.0
Increase to income tax benefit | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Income tax expense (benefit)		0.2		1.7
Increase To Net Loss And Net Loss Attributable to Cannae | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Net earnings (loss)		$ 1.0		$ 0.4
Increase To Net Loss Per Share | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Net loss per share (in usd per share)		$ 0.02	$ 0.01	$ 0.01
Increase To Reclassification Adjustment, Unrealized Gains And Losses On Unconsolidated Affiliates, Net of Tax | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Reclassification adjustments for unrealized gains and losses on unconsolidated affiliates, net of tax, included in net earnings		$ 16.7		$ (16.7)
Comprehensive earnings (loss) attributable to Cannae Holdings, Inc.		16.7
Decrease In Comprehensive Loss | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Comprehensive loss		16.7		16.7
Increase In Comprehensive Earnings Attributable To Cannae Holdings, Inc. | Restatement Adjustment
Schedule of Equity Method Investments [Line Items]
Comprehensive earnings (loss) attributable to Cannae Holdings, Inc.		16.7		16.7
ASU 2014-09
Schedule of Equity Method Investments [Line Items]
Adjustment for cumulative effect of adoption of accounting standard						$ 1.9
ASU 2014-09 | Retained Earnings
Schedule of Equity Method Investments [Line Items]
Adjustment for cumulative effect of adoption of accounting standard						$ 1.9
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Retained Earnings
Schedule of Equity Method Investments [Line Items]
Adjustment for cumulative effect of adoption of accounting standard		1.9		1.9			$ 4.3
T-System | ASU 2014-09 | Adjustments for error corrections to prior interim periods of current year | Retained Earnings
Schedule of Equity Method Investments [Line Items]
Decrease in cumulative effect of adoption of ASC Topic 606		$ 2.4		$ 2.4

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Leases - Narrative (Details) - renew	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Operating lease term		12 years
Weighted average remaining lease term for operating leases		8 years
Number of options to renew (or more)	1
Weighted average discount rate		7.76%
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term		1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term		19 years
Lease renewal term (not to exceed)		20 years

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Leases - Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Operating lease cost
Total operating lease cost	$ 13.9	$ 28.6
Cost of restaurant revenue
Operating lease cost
Operating lease cost	13.7	28.3
Other operating expense
Operating lease cost
Operating lease cost	$ 0.2	$ 0.3

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Leases - Future Undiscounted Payments Under Operating Lease Arrangements Under ASC Topic 842 (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
2019 (remaining)	$ 30.7
2020	59.3
2021	53.0
2022	41.9
2023	35.1
Thereafter	137.4
Total lease payments, undiscounted	357.4
Less: discount	96.4
Total operating lease liability as of June 30, 2019, at present value	261.0
Less: operating lease liability as of June 30, 2019, current	43.0	$ 0.0
Operating lease liability as of June 30, 2019, long term	$ 218.0	$ 0.0

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Leases - Future Payments Under Operating Lease Arrangements Under ASC Topic 840 (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 62.0
2020	57.7
2021	51.3
2022	40.7
2023	34.1
Thereafter	133.2
Total future minimum operating lease payments	$ 379.0

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Fair Value Measurements - Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) $ in Millions	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fixed-maturity securities available for sale:
Corporate debt securities	$ 17.7	$ 17.8
Total	17.7	17.8
Corporate debt securities
Fixed-maturity securities available for sale:
Corporate debt securities	17.7	17.8
Level 1
Fixed-maturity securities available for sale:
Total	0.0	0.0
Level 1 | Corporate debt securities
Fixed-maturity securities available for sale:
Corporate debt securities	0.0	0.0
Level 2
Fixed-maturity securities available for sale:
Total	0.0	0.0
Level 2 | Corporate debt securities
Fixed-maturity securities available for sale:
Corporate debt securities	0.0	0.0
Level 3
Fixed-maturity securities available for sale:
Total	$ 17.7	17.8
Level 3 | Discount Rate | Minimum
Fixed-maturity securities available for sale:
Discount rate	0.158
Level 3 | Discount Rate | Maximum
Fixed-maturity securities available for sale:
Discount rate	0.170
Level 3 | Discount Rate | Weighted Average
Fixed-maturity securities available for sale:
Discount rate	0.170
Level 3 | Corporate debt securities
Fixed-maturity securities available for sale:
Corporate debt securities	$ 17.7	$ 17.8

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Fair Value Measurements - Summary of Changes in the Fair Values of level 3 Assets Measured on a Recurring Basis (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Impairment			$ (0.4)
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Paid-in-kind dividends	$ 0.1	$ 0.1	0.1	$ 0.1
Accretion of original purchase discount	0.0	0.2	0.0	0.2
Net valuation gain (loss) included in other comprehensive earnings (2)	0.1	(0.1)	0.2	(0.1)
Level 3 | Corporate debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	17.5	21.4	17.8	0.0
Transfers from Level 2			0.0	21.4
Impairment			(0.4)	0.0
Fair Value, end of period	$ 17.7	$ 21.6	$ 17.7	$ 21.6

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Investments - Schedule of Carrying Amounts and Fair Values of Available for Sale Securities (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Fixed maturity securities available for sale:
Cost Basis	$ 19.0	$ 18.8
Unrealized Gains	0.6	0.9
Unrealized Losses	(1.9)	(1.9)
Fair Value	17.7	17.8
Corporate debt securities
Fixed maturity securities available for sale:
Cost Basis	19.0	18.8
Unrealized Gains	0.6	0.9
Unrealized Losses	(1.9)	(1.9)
Fair Value	17.7	17.8
Carrying Value
Fixed maturity securities available for sale:
Fair Value	17.7	17.8
Carrying Value | Corporate debt securities
Fixed maturity securities available for sale:
Fair Value	$ 17.7	$ 17.8

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Investments - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt Securities, Available-for-sale [Line Items]
Other-than-temporary impairment impairment charges related to corporate debt securities		$ 400,000
Other-than-temporary impairment charges relating to securities available for sale	$ 0		$ 0
Proceeds from sale of equity securities			17,700,000
Realized gains related to the sales of equity securities available for sale (less than for 2018)			$ 100,000
Ceridian
Debt Securities, Available-for-sale [Line Items]
Aggregate value of ownership of common stock		1,500,000,000
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Debt securities held with previously recognized other than temporary impairment		$ 2,000,000.0
Minimum
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, term		1 year
Maximum
Debt Securities, Available-for-sale [Line Items]
Fixed maturity securities, term		5 years

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Investments - Schedule of Investment Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Fair Value
12 Months or Longer	$ 10.1	$ 10.4
Total unrealized loss position	10.1	10.4
Unrealized Losses
12 Months or Longer	(1.9)	(1.9)
Total accumulated unrealized loss position	$ 1.9	$ 1.9

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Investments - Schedule of Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Apr. 30, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated affiliates	$ 913.3		$ 913.3			$ 397.2
Equity in earnings (losses) of unconsolidated affiliates	$ (22.4)	$ (19.6)	$ (19.5)	$ (20.7)
Ceridian
Schedule of Equity Method Investments [Line Items]
Ownership (as a percent)	21.70%		21.70%
Investments in unconsolidated affiliates	$ 380.5		$ 380.5			359.7
Equity in earnings (losses) of unconsolidated affiliates	$ 1.4	(19.7)	$ 4.0	(21.6)
Dun And Bradstreet Corporation
Schedule of Equity Method Investments [Line Items]
Ownership (as a percent)	24.30%		24.30%		24.30%
Investments in unconsolidated affiliates	$ 497.5		$ 497.5			0.0
Equity in earnings (losses) of unconsolidated affiliates	(24.2)	0.0	(24.2)	0.0
Other
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated affiliates	35.3		35.3			$ 37.5
Equity in earnings (losses) of unconsolidated affiliates	$ 0.4	$ 0.1	$ 0.7	$ 0.9

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Investments - Schedule of Summarized Financial Information for Ceridian (Details) - Ceridian - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Condensed Combined Balance Sheets
Total current assets before customer funds	$ 365.1		$ 365.1		$ 330.6
Customer funds	3,986.7		3,986.7		2,603.5
Goodwill and other intangible assets, net	2,132.7		2,132.7		2,114.9
Other assets	244.8		244.8		198.8
Total assets	6,729.3		6,729.3		5,247.8
Current liabilities before customer obligations	129.8		129.8		149.9
Customer obligations	3,963.5		3,963.5		2,619.7
Long-term obligations, less current portion	660.7		660.7		663.5
Other long-term liabilities	218.2		218.2		199.2
Total liabilities	4,972.2		4,972.2		3,632.3
Equity	1,757.1		1,757.1		1,615.5
Total liabilities and equity	6,729.3		6,729.3		$ 5,247.8
Condensed Combined Statements of Earnings
Total revenues	196.3	$ 179.0	400.0	$ 367.8
Earnings (loss) before income taxes	8.7	(52.4)	25.6	(44.4)
Earnings (loss) before discontinued operations	6.3	(53.6)	17.5	(51.4)
Earnings (loss) before discontinued operations	$ 6.3	$ (63.3)	$ 17.5	$ (62.7)

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Investments - Dun And Bradstreet Narrative (Details) - USD ($)		1 Months Ended		6 Months Ended
	Feb. 08, 2019	Jun. 30, 2019	Apr. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Business Acquisition [Line Items]
Reduction in investment				$ 2,900,000
Additional investment				$ 526,200,000	$ 0
Dun And Bradstreet Corporation
Business Acquisition [Line Items]
Additional amount syndicated of Dun & Bradstreet Investment			$ 2,600,000
Ownership (as a percent)		24.30%	24.30%	24.30%
Additional investment		$ 23,500,000
Dun And Bradstreet Corporation
Business Acquisition [Line Items]
Common equity financed from Consortium and Black Knight, Inc.	$ 2,100,000,000
Financed by preferred equity from preferred equity sources	1,100,000,000
Debt financing from various lenders	4,000,000,000.0
Dun And Bradstreet Corporation | Cannae | Commitment To Purchase Common Equity of Dun And Bradstreet
Business Acquisition [Line Items]
Commitment to purchase	$ 900,000,000.0
Percentage of outstanding common equity	24.50%
Syndication fee income	$ 9,100,000
Dun And Bradstreet Corporation | Cannae | Equity Commitment to Purchase, Retained And Funded | Dun And Bradstreet Corporation
Business Acquisition [Line Items]
Commitment to purchase	$ 505,600,000

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Investments - Schedule of Summarized Financial Information D&B (Details) $ in Millions	2 Months Ended
	Mar. 31, 2019 USD ($)
Condensed Combined Statements of Earnings
Net loss	$ (81.1)
Dividends attributable to preferred stock and noncontrolling interest expense	(18.3)
Dun And Bradstreet Corporation
Condensed Combined Balance Sheets
Total current assets	420.7
Goodwill and other intangible assets, net	8,285.7
Other assets	454.6
Total assets	9,161.0
Current liabilities before customer obligations	778.0
Long-term obligations, less current portion	3,821.0
Other long-term liabilities	1,636.5
Total liabilities	6,235.5
Preferred equity	1,028.4
Partner's capital	1,897.1
Total liabilities and equity	9,161.0
Condensed Combined Statements of Earnings
Total revenues	174.1
Loss before income taxes	(111.6)
Net loss attributable to Dun & Bradstreet	$ (99.4)

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Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 6.3	$ 6.8
Semi-finished and finished goods	16.2	5.6
Packaging	1.7	2.4
Obsolescence reserve	(1.0)	(3.0)
Total bakery inventory	23.2	11.8
Other restaurant-related inventory	9.0	10.3
Other	0.3	0.2
Total inventory	$ 32.5	$ 22.3

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Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Jun. 30, 2019	Feb. 07, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Notes payable, total	$ 201,100,000		$ 48,100,000
Less: Notes payable, current	5,900,000		5,900,000
Notes payable, long term	195,200,000		42,200,000
99 Term Loan | Notes payable to banks
Debt Instrument [Line Items]
Notes payable, total	33,700,000		36,100,000
99 Revolver | Revolving credit facility
Debt Instrument [Line Items]
Notes payable, total	3,000,000.0		0
99 DLOC Loan
Debt Instrument [Line Items]
Notes payable, total	0		0
Margin Facility | Revolving credit facility
Debt Instrument [Line Items]
Notes payable, total	150,000,000.0	$ 150,000,000	0
Brasada Interstate Loans | Notes payable to banks
Debt Instrument [Line Items]
Notes payable, total	11,700,000		11,700,000
Other | Notes payable
Debt Instrument [Line Items]
Notes payable, total	$ 2,700,000		$ 300,000

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Notes Payable - Narrative (Details) - USD ($)	Jul. 05, 2019	Jun. 12, 2019	Feb. 07, 2019	Dec. 21, 2018	Nov. 07, 2018	Nov. 17, 2017	Jan. 29, 2016	Jun. 30, 2019	Dec. 31, 2018	Jun. 13, 2018
Line of Credit Facility [Line Items]
Additional line of credit								$ 201,100,000	$ 48,100,000
Repayment of FNF Revolver		$ 100,000,000.0
99 Restaurants Credit Facility | Revolver Note
Line of Credit Facility [Line Items]
Additional line of credit								$ 3,000,000.0	0
99 Restaurants Credit Facility | 99 Restaurants | Revolver Note
Line of Credit Facility [Line Items]
Aggregate borrowing capacity				$ 15,000,000.0
Interest rate								5.88%
Amount available to be drawn								$ 22,000,000.0
99 Restaurants Credit Facility | 99 Restaurants | Base Rate | Revolver Note
Line of Credit Facility [Line Items]
Interest rate basis				2.50%
99 Restaurants Credit Facility | 99 Restaurants | LIBOR | Revolver Note
Line of Credit Facility [Line Items]
Interest rate basis				3.50%
99 Term Loan | Notes payable to banks
Line of Credit Facility [Line Items]
Interest rate								6.00%
Additional line of credit								$ 33,700,000	36,100,000
99 Term Loan | 99 Restaurants
Line of Credit Facility [Line Items]
Notes, face amounts				$ 37,000,000.0
99 DLOC Loan
Line of Credit Facility [Line Items]
Additional line of credit								$ 0	0
99 DLOC Loan | 99 Restaurants | Line of Credit Loan
Line of Credit Facility [Line Items]
Notes, face amounts				$ 10,000,000.0
Margin Loan Agreement | Revolver Note
Line of Credit Facility [Line Items]
Aggregate borrowing capacity					$ 300,000,000.0
Interest rate								5.35%
Amount available to be drawn								$ 150,000,000
Shares pledged as collateral (in shares)					25,000,000.0
Additional line of credit			$ 150,000,000					150,000,000.0	0
Brasada Interstate Credit Agreement | Notes payable to banks
Line of Credit Facility [Line Items]
Additional line of credit								11,700,000	$ 11,700,000
Brasada Interstate Credit Agreement | NV Brasada
Line of Credit Facility [Line Items]
Aggregate borrowing capacity							$ 17,000,000.0
Brasada Interstate Credit Agreement | NV Brasada | Line of Credit Loan
Line of Credit Facility [Line Items]
Aggregate borrowing capacity							1,500,000
Amount available to be drawn								$ 4,400,000
Additional line of credit										$ 3,600,000
Brasada Interstate Credit Agreement | NV Brasada | Acquisition Loan
Line of Credit Facility [Line Items]
Notes, face amounts							12,500,000
Brasada Interstate Credit Agreement | NV Brasada | Development Loan
Line of Credit Facility [Line Items]
Notes, face amounts							3,000,000.0
Brasada Interstate Credit Agreement | NV Brasada | Acquisition Loan, A Note
Line of Credit Facility [Line Items]
Notes, face amounts							$ 6,250,000
Interest rate							4.51%
Brasada Interstate Credit Agreement | NV Brasada | Acquisition Loan, B Note
Line of Credit Facility [Line Items]
Notes, face amounts							$ 6,250,000
Brasada Interstate Credit Agreement | NV Brasada | Notes payable to banks
Line of Credit Facility [Line Items]
Variable rate interest								4.69%
Brasada Interstate Credit Agreement | NV Brasada | LIBOR | Acquisition Loan, B Note
Line of Credit Facility [Line Items]
Interest rate basis							225.00%
Corporate Revolver Note | Revolver Note
Line of Credit Facility [Line Items]
Aggregate borrowing capacity						$ 100,000,000.0
Amount available to be drawn								$ 100,000,000.0
Maximum borrowing increment						$ 1,000,000.0
Anniversary term						5 years
Term of automatic extension						5 years
Proceeds from lines of credit			$ 100,000,000.0
Corporate Revolver Note | Revolver Note | Subsequent Event
Line of Credit Facility [Line Items]
Proceeds from lines of credit	$ 100,000,000.0
Corporate Revolver Note | LIBOR | Revolver Note
Line of Credit Facility [Line Items]
Interest rate basis						450.00%

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Notes Payable - Gross Principal Maturities of Notes Payable (Details) $ in Millions	Jun. 30, 2019 USD ($)
Debt Disclosure [Abstract]
2019 (remaining)	$ 3.4
2019	6.9
2020	156.1
2021	6.1
2022	19.4
Thereafter	10.2
Total Long Term Debt	$ 202.1

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Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Accrual for legal proceedings	$ 0.4	$ 0.5

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Commitments and Contingencies - Purchase Obligations (Details) $ in Millions	Jun. 30, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019 (remaining)	$ 87.2
2020	67.4
2021	43.7
2022	4.4
2023	3.0
Thereafter	6.9
Total purchase commitments	$ 212.6

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Segment Information - Summary of Financial Information Concerning Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues from external customers	$ 285.1	$ 302.3	$ 559.6	$ 594.7
Interest, investment and other income, including realized gains and losses	75.9	68.1	88.5	69.4
Total revenues and other income	361.0	370.4	648.1	664.1
Depreciation and amortization	13.3	14.9	27.2	29.2
Interest expense	(5.5)	(0.2)	(9.2)	(3.2)
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	45.9	(0.2)	40.2	(9.9)
Income tax (benefit) expense	8.5	2.6	3.7	(2.9)
Earnings (loss) before equity in losses of unconsolidated affiliates	37.4	(2.8)	36.5	(7.0)
Equity in earnings (losses) of unconsolidated affiliates	(22.4)	(19.6)	(19.5)	(20.7)
Net earnings (loss)	15.0	(22.4)	17.0	(27.7)
Assets	1,872.4	1,359.9	1,872.4	1,359.9	$ 1,459.5
Goodwill	164.8	202.0	164.8	202.0	$ 164.8
Operating Segments
Segment Reporting Information [Line Items]
Goodwill
Ceridian and Dun & Bradstreet Elimination
Segment Reporting Information [Line Items]
Revenues from external customers	(370.4)	(179.0)	(574.1)	(367.8)
Interest, investment and other income, including realized gains and losses	0.0	0.0	0.0	0.0
Total revenues and other income	(370.4)	(179.0)	(574.1)	(367.8)
Depreciation and amortization	(95.1)	(14.2)	(109.5)	(28.1)
Interest expense	57.6	43.4	66.5	65.6
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	102.9	52.4	86.0	44.4
Income tax (benefit) expense	28.1	(1.2)	22.4	(7.0)
Earnings (loss) before equity in losses of unconsolidated affiliates	74.8	53.6	63.6	51.4
Equity in earnings (losses) of unconsolidated affiliates	(22.8)	(19.7)	(20.2)	(21.6)
Net earnings (loss)	52.0	33.9	43.4	29.8
Assets	(15,890.3)	(6,319.7)	(15,890.3)	(6,319.7)
Goodwill	(4,750.4)	(1,942.6)	(4,750.4)	(1,942.6)
Restaurant revenue
Segment Reporting Information [Line Items]
Revenues from external customers	266.5	276.2	524.3	550.0
Restaurant revenue | Ceridian and Dun & Bradstreet Elimination
Segment Reporting Information [Line Items]
Revenues from external customers	0.0	0.0	0.0	0.0
Other operating revenue
Segment Reporting Information [Line Items]
Revenues from external customers	18.6	26.1	35.3	44.7
Other operating revenue | Ceridian and Dun & Bradstreet Elimination
Segment Reporting Information [Line Items]
Revenues from external customers	(370.4)	(179.0)	(574.1)	(367.8)
Restaurant Group
Segment Reporting Information [Line Items]
Revenues from external customers	266.5	276.2	524.3	550.0
Restaurant Group | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	266.5	276.2	524.3	550.0
Interest, investment and other income, including realized gains and losses	2.8	1.4	3.5	1.4
Total revenues and other income	269.3	277.6	527.8	551.4
Depreciation and amortization	9.4	10.7	19.1	21.4
Interest expense	(1.5)	(3.8)	(2.5)	(7.5)
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	(11.6)	(5.9)	(19.7)	(15.2)
Income tax (benefit) expense	0.0	0.0	(0.1)	0.0
Earnings (loss) before equity in losses of unconsolidated affiliates	(11.6)	(5.9)	(19.6)	(15.2)
Equity in earnings (losses) of unconsolidated affiliates	0.0	0.0	0.0	0.1
Net earnings (loss)	(11.6)	(5.9)	(19.6)	(15.1)
Assets	636.2	477.5	636.2	477.5
Goodwill	76.5	103.1	76.5	103.1
Restaurant Group | Restaurant revenue
Segment Reporting Information [Line Items]
Revenues from external customers	247.7	258.3	493.0	517.5
Restaurant Group | Restaurant revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	266.5	276.2	524.3	550.0
Restaurant Group | Other operating revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	0.0	0.0	0.0	0.0
T-System | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	12.9	14.8	25.1	30.2
Interest, investment and other income, including realized gains and losses	(0.5)	0.0	(0.5)	0.0
Total revenues and other income	12.4	14.8	24.6	30.2
Depreciation and amortization	3.4	3.7	6.9	7.3
Interest expense	(1.4)	(1.5)	(2.8)	(1.5)
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	(5.0)	(2.6)	(9.9)	(3.4)
Income tax (benefit) expense	(1.2)	(0.5)	(2.4)	(2.3)
Earnings (loss) before equity in losses of unconsolidated affiliates	(3.8)	(2.1)	(7.5)	(1.1)
Equity in earnings (losses) of unconsolidated affiliates	0.0	0.0	0.0	0.0
Net earnings (loss)	(3.8)	(2.1)	(7.5)	(1.1)
Assets	202.9	221.9	202.9	221.9
Goodwill	88.3	98.9	88.3	98.9
T-System | Restaurant revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	0.0	0.0	0.0	0.0
T-System | Other operating revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	12.9	14.8	25.1	30.2
Ceridian | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	196.3	179.0	400.0	367.8
Interest, investment and other income, including realized gains and losses	0.0	0.0	0.0	0.0
Total revenues and other income	196.3	179.0	400.0	367.8
Depreciation and amortization	14.6	14.2	29.0	28.1
Interest expense	(8.5)	(43.4)	(17.4)	(65.6)
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	8.7	(52.4)	25.6	(44.4)
Income tax (benefit) expense	2.4	1.2	8.1	7.0
Earnings (loss) before equity in losses of unconsolidated affiliates	6.3	(53.6)	17.5	(51.4)
Equity in earnings (losses) of unconsolidated affiliates	0.0	0.0	0.0	0.0
Net earnings (loss)	6.3	(53.6)	17.5	(51.4)
Assets	6,729.3	6,319.7	6,729.3	6,319.7
Goodwill	1,952.8	1,942.6	1,952.8	1,942.6
Ceridian | Restaurant revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	0.0	0.0	0.0	0.0
Ceridian | Other operating revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	196.3	179.0	400.0	367.8
Dun And Bradstreet | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	174.1		174.1
Interest, investment and other income, including realized gains and losses	0.0		0.0
Total revenues and other income	174.1		174.1
Depreciation and amortization	80.5		80.5
Interest expense	(49.1)		(49.1)
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	(111.6)		(111.6)
Income tax (benefit) expense	(30.5)		(30.5)
Earnings (loss) before equity in losses of unconsolidated affiliates	(81.1)		(81.1)
Equity in earnings (losses) of unconsolidated affiliates	0.0		0.0
Net earnings (loss)	(81.1)		(81.1)
Assets	9,161.0		9,161.0
Goodwill	2,797.6		2,797.6
Dun And Bradstreet | Restaurant revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	0.0		0.0
Dun And Bradstreet | Other operating revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	174.1		174.1
Corporate and Other | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	5.7	11.3	10.2	14.5
Interest, investment and other income, including realized gains and losses	73.6	66.7	85.5	68.0
Total revenues and other income	79.3	78.0	95.7	82.5
Depreciation and amortization	0.5	0.5	1.2	0.5
Interest expense	(2.6)	5.1	(3.9)	5.8
Earnings (loss) before income taxes and equity in losses of unconsolidated affiliates	62.5	8.3	69.8	8.7
Income tax (benefit) expense	9.7	3.1	6.2	(0.6)
Earnings (loss) before equity in losses of unconsolidated affiliates	52.8	5.2	63.6	9.3
Equity in earnings (losses) of unconsolidated affiliates	0.4	0.1	0.7	0.8
Net earnings (loss)	53.2	5.3	64.3	10.1
Assets	1,033.3	660.5	1,033.3	660.5
Goodwill	0.0	0.0	0.0	0.0
Corporate and Other | Restaurant revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	0.0	0.0	0.0	0.0
Corporate and Other | Other operating revenue | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers	$ 5.7	$ 11.3	$ 10.2	$ 14.5

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Segment Information - Narrative (Details) record in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019 segment customer sites	Dec. 31, 2018 record	Apr. 30, 2019	Oct. 16, 2017
Segment Reporting Information [Line Items]
Number of business records | record		300
Ceridian
Segment Reporting Information [Line Items]
Ownership interest, equity method investment (as a percent)	21.70%
Dun And Bradstreet
Segment Reporting Information [Line Items]
Ownership interest, equity method investment (as a percent)	24.30%		24.30%
ABRH
Segment Reporting Information [Line Items]
Ownership interest, controlling interest (as percent)	65.40%
99 Restaurants
Segment Reporting Information [Line Items]
Ownership interest, controlling interest (as percent)	88.50%
T-System
Segment Reporting Information [Line Items]
Ownership interest, controlling interest (as percent)				97.00%
Number of businesses | segment	2
T-System | T-System Coding Software & Outsourced Solutions
Segment Reporting Information [Line Items]
Number of customers (more than) | customer	75
Number of sites | sites	400
T-System | Software Solutions | T-System Clinical Documentation
Segment Reporting Information [Line Items]
Number of customers (more than) | customer	240
Number of sites | sites	450
T-System | T-Sheet | T-System Clinical Documentation
Segment Reporting Information [Line Items]
Number of customers (more than) | customer	200
Number of sites | sites	475

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Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash paid during the period:
Interest	$ 7.5	$ 1.3
Income taxes	23.5	0.0
Operating leases	31.4
Non-cash investing and financing activities:
Unsettled purchases of investment securities accrued at period end	$ 0.0	$ 3.5

XML

Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Total operating revenues	$ 285.1	$ 302.3	$ 559.6	$ 594.7
Restaurant sales
Disaggregation of Revenue [Line Items]
Total operating revenues	266.5	276.2	524.3	550.0
Restaurant Group
Disaggregation of Revenue [Line Items]
Total operating revenues	266.5	276.2	524.3	550.0
Restaurant Group | Restaurant sales
Disaggregation of Revenue [Line Items]
Total operating revenues	247.7	258.3	493.0	517.5
Restaurant Group | Bakery sales
Disaggregation of Revenue [Line Items]
Total operating revenues	17.4	16.3	28.4	29.5
Restaurant Group | Franchise and other
Disaggregation of Revenue [Line Items]
Total operating revenues	1.4	1.6	2.9	3.0
T-System | T-System, point-in-time
Disaggregation of Revenue [Line Items]
Total operating revenues	4.9	5.9	9.7	12.6
T-System | T-System, over time
Disaggregation of Revenue [Line Items]
Total operating revenues	8.0	8.9	15.4	17.6
Corporate and Other | Real estate and resort
Disaggregation of Revenue [Line Items]
Total operating revenues	5.7	5.4	10.1	8.3
Corporate and Other | Other
Disaggregation of Revenue [Line Items]
Total operating revenues	0.0	5.9	0.1	6.2
Total Other Operating Revenue
Disaggregation of Revenue [Line Items]
Total operating revenues	$ 18.6	$ 26.1	$ 35.3	$ 44.7

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Revenue Recognition - Contract Balances, Information About Receivables and Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Trade receivables, billed	$ 25.7	$ 25.7	$ 40.3
Unbilled accounts receivable, current	7.4	7.4	9.5
Unbilled accounts receivable, long term	10.6	10.6	10.6
Deferred revenue (contract liabilities)	25.5	25.5	$ 31.7
Revenue recognized that was included in deferred revenue	$ 8.9	$ 22.3

XML

Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Total Assets	$ 504.9	$ 9.2
Maximum Exposure	$ 504.9	$ 9.2