XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
Since the Take-Private Transaction, management has made changes to transform our business. As a result, during the fourth quarter of 2019, we changed the composition of our reportable segments, the classification of revenue by solution set and our measure of segment profit (from operating income to adjusted EBITDA) in the information that we provide to our CODMs to better align with how they assess performance and allocate resources. Latin America Worldwide Network, which was previously included in the Americas reportable segment, is currently included in the International segment. Accordingly, prior period results have been recast to conform to the current presentation of segments, revenue by solution set, and the measure of segment profit. These changes do not impact our consolidated results.
Our segment disclosure is intended to provide the users of our consolidated financial statements with a view of the business that is consistent with management of the Company.
We manage our business and report our financial results through the following two segments:
•North America offers Finance & Risk and Sales & Marketing data, analytics and business insights in the United States and Canada; and
•International offers Finance & Risk and Sales & Marketing data, analytics and business insights directly in the U.K., Greater China, India and indirectly through our WWN alliances.
We define adjusted EBITDA as net income (loss) attributable to Dun & Bradstreet Holdings, Inc. (Successor)/The Dun & Bradstreet Corporation (Predecessor) excluding the following items: (i) depreciation and amortization; (ii) interest expense and income; (iii) income tax benefit or provision; (iv) other expenses or income; (v) equity in net income of affiliates; (vi) net income attributable to non-controlling interests; (vii) dividends allocated to preferred stockholders; (viii) revenue and expense adjustments to include results for the period from January 8 to February 7, 2019, for the Predecessor related to the International lag adjustment; (ix) other incremental or reduced expenses from the application of purchase accounting (e.g. commission asset amortization); (x) equity-based compensation; (xi) restructuring charges; (xii) merger and acquisition-related operating costs; (xiii) transition costs primarily consisting of non-recurring incentive expenses associated with our synergy program; (xiv) legal reserve and costs associated with significant legal and regulatory matters; and (xv) asset impairment. Our client solution sets are Finance & Risk and Sales & Marketing. Inter-segment sales are immaterial, and no single client accounted for 10% or more of our total revenue.
Three-Month PeriodNine-Month Period
 SuccessorPredecessor
 Three Months Ended September 30, 2020Three Months Ended September 30, 2019Nine Months Ended September 30, 2020Period from January 1 to September 30, 2019Period from January 1 to February 7, 2019
Revenue:
North America$363.3 $374.7 $1,059.1 $916.8 $148.2 
International79.8 72.7 219.4 163.7 56.4 
       Corporate and other (1)(1.0)(39.2)(20.5)(99.3)(25.9)
Consolidated total$442.1 $408.2 $1,258.0 $981.2 $178.7 
(1)Revenue for Corporate and other represents deferred revenue purchase accounting adjustments recorded in accordance with GAAP related to the Take-Private Transaction included in each of the Successor periods and recent acquisitions for the three and nine months ended September 30, 2020 (Successor), and the International lag adjustment (see Note 1) included in the period from January 1 to February 7, 2019 (Predecessor).
Three-Month PeriodNine-Month Period
 SuccessorPredecessor
 Three Months Ended September 30, 2020Three Months Ended September 30, 2019Nine Months Ended September 30, 2020Period from January 1 to September 30, 2019Period from January 1 to February 7, 2019
Adjusted EBITDA
North America$184.2 $189.6 $498.1 $435.8 $55.3 
International28.2 25.5 71.6 56.1 20.3 
       Corporate and other (1)(15.4)(60.1)(63.2)(147.8)(9.3)
Consolidated total$197.0 $155.0 $506.5 $344.1 $66.3 
Depreciation and amortization(134.1)(123.3)(401.0)(340.6)(11.1)
Interest expense - net(60.6)(85.1)(221.1)(218.5)(5.2)
Dividends allocated to preferred stockholders— (32.1)(64.1)(82.0)— 
Benefit for income taxes - net9.3 24.0 111.1 84.1 27.5 
Other income (expense) - net(9.5)6.3 (42.2)18.6 (86.0)
Equity in net income of affiliates0.7 0.5 1.9 3.4 0.5 
Net income (loss) attributable to non-controlling interest(2.1)(1.4)(3.7)(3.3)(0.8)
Lag adjustment— — — — (2.7)
Other incremental or reduced expenses from the application of purchase accounting4.5 5.3 14.4 15.9 — 
Equity-based compensation(9.7)(3.6)(38.6)(7.9)(11.7)
Restructuring charges(4.9)(8.2)(16.2)(44.1)(0.1)
Merger and acquisition-related operating costs(2.2)(5.9)(6.7)(154.5)(52.0)
Transition costs (5.1)(20.3)(22.3)(23.8)(0.3)
Legal reserve associated with significant legal and regulatory matters— — — 0.2 — 
Asset impairment(0.3)— (0.6)(2.3)— 
Net income (loss) attributable to Dun & Bradstreet Holdings, Inc. (Successor) / The Dun & Bradstreet Corporation (Predecessor)$(17.0)$(88.8)$(182.6)$(410.7)$(75.6)

(1)Corporate and other includes deferred revenue purchase accounting adjustments recorded in accordance with GAAP related to the Take-Private Transaction and recent acquisitions of ($1.0) million and ($20.5) million for the Successor three and nine months ended September 30, 2020, respectively, $(39.2) million and $(99.3) million for the three months ended September 30, 2019 (Successor) and the period from January 1, 2019 to September 30, 2019 (Successor), respectively, and the International lag adjustment of $(2.7) million for the period from January 1 to February 7, 2019 (Predecessor).
Three-Month PeriodNine-Month Period
 SuccessorPredecessor
 Three Months Ended September 30, 2020Three Months Ended September 30, 2019Nine Months Ended September 30, 2020Period from January 1 to September 30, 2019Period from January 1 to February 7, 2019
Depreciation and amortization:
North America$11.8 $10.2 $33.6 $25.3 $5.8 
International2.1 1.8 5.7 4.2 1.5 
            Total segments13.9 12.0 39.3 29.5 7.3 
       Corporate and other (1)120.2 111.3 361.7 311.1 3.8 
Consolidated total$134.1 $123.3 $401.0 $340.6 $11.1 
Capital expenditures:
North America$1.8 $1.2 $3.1 $7.3 $0.2 
International2.6 0.6 4.4 1.0 0.1 
           Total segments4.4 1.8 7.5 8.3 0.3 
        Corporate and other0.1 0.3 0.3 0.7 (0.1)
Consolidated total$4.5 $2.1 $7.8 $9.0 $0.2 
Additions to computer software and other intangibles:
North America$31.7 $15.9 $71.5 $33.7 $4.3 
International1.7 2.4 4.0 4.7 0.8 
           Total segments33.4 18.3 75.5 38.4 5.1 
        Corporate and other2.2 0.9 6.1 1.7 — 
Consolidated total$35.6 $19.2 $81.6 $40.1 $5.1 


(1) Depreciation and amortization for Corporate and other includes incremental amortization resulting from the Take-Private Transaction and recent acquisitions.
Supplemental Geographic and Customer Solution Set Information:
September 30,
2020		December 31, 2019
Assets:
    North America$8,519.3 $8,480.1 
    International666.1 632.7 
Consolidated total$9,185.4 $9,112.8 
Goodwill:
    North America$2,745.5 $2,734.6 
    International108.4 105.5 
Consolidated total$2,853.9 $2,840.1 
Other intangibles:
    North America$4,640.8 $4,953.0 
    International284.5 298.4 
Consolidated total$4,925.3 $5,251.4 
Other long-lived assets:
    North America$563.4 $500.9 
    International105.3 89.9 
Consolidated total$668.7 $590.8 
Total long-lived assets$8,447.9 $8,682.3 
Three-Month PeriodNine-Month Period
SuccessorPredecessor
Customer Solution Set RevenueThree Months Ended September 30, 2020Three Months Ended September 30, 2019Nine Months Ended September 30, 2020Period from January 1 to September 30, 2019Period from January 1 to February 7, 2019
 
North America (1):
    Finance & Risk$206.6 $208.4 $593.2 $511.1 $80.4 
    Sales & Marketing 156.7 166.3 465.9 405.7 67.8 
Total North America$363.3 $374.7 $1,059.1 $916.8 $148.2 
International:
    Finance & Risk$66.3 $58.1 $179.7 $133.8 $43.4 
    Sales & Marketing 13.5 14.6 39.7 29.9 13.0 
Total International$79.8 $72.7 $219.4 $163.7 $56.4 
Corporate and other:
    Finance & Risk$(0.4)$(23.1)$(10.6)$(59.6)$(19.2)
    Sales & Marketing(0.6)(16.1)(9.9)(39.7)(6.7)
Total Corporate and other$(1.0)$(39.2)$(20.5)$(99.3)$(25.9)
Total Revenue:
    Finance & Risk$272.5 $243.4 $762.3 $585.3 $104.6 
    Sales & Marketing169.6 164.8 495.7 395.9 74.1 
Total Revenue$442.1 $408.2 $1,258.0 $981.2 $178.7 
(1) Substantially all of the North America revenue is attributable to the United States