Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

Condensed Consolidating Statement of Comprehensive Income

The Nielsen Company B.V.

Condensed Consolidating Statement of Comprehensive Income (Unaudited)

For the three months ended June 30, 2013

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	681		$	705		$	—		$	1,386
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			250			330			—			580
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			207			225			—			432
Depreciation and amortization		—			—			93			33			—			126
Restructuring charges		—			—			—			8			—			8
Operating income		—			—			131			109			—			240
Interest income		—			151			11			5			(167	)		—
Interest expense		—			(73	)		(154	)		(13	)		167			(73	)
Foreign currency exchange transaction income/(expense), net		—			—			—			(4	)		—			(4	)
Other income/(expense), net		—			—			45			(45	)		—			—
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		—			78			33			52			—			163
Provision for income taxes		—			(28	)		(13	)		(5	)		—			(46	)
Equity in net income of subsidiaries		428			—			97			—			(525	)		—
Equity in net income of affiliates		—			—			3			1			—			4
Income from continuing operations		428			50			120			48			(525	)		121
Income/(loss) from discontinued operations, net of tax		—			—			308			(1	)		—			307
Net income		428			50			428			47			(525	)		428
Total other comprehensive (loss)/income		(82	)		3			(82	)		(73	)		152			(82	)
Total comprehensive income/(loss)		346			53			346			(26	)		(373	)		346
Comprehensive loss attributable to noncontrolling interests		—			—			—			(3	)		—			(3	)
Total comprehensive income/(loss) attributable to controlling interest	$	346		$	53		$	346		$	(23	)	$	(373	)	$	349

The Nielsen Company B.V.

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the three months ended June 30, 2012

(IN MILLIONS)	Parent			Issuer			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	659		$	683		$	—		$	1,342
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			240			309			—			549
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			204			224			—			428
Depreciation and amortization		—			—			91			29			—			120
Restructuring charges		—			—			5			11			—			16
Operating income		—			—			119			110			—			229
Interest income		1			138			15			7			(160	)		1
Interest expense		—			(94	)		(144	)		(17	)		160			(95	)
Foreign currency exchange transaction losses, net		—			—			—			(3	)		—			(3
Other income/(expense), net		—			—			94			(84	)		—			10
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		1			44			84			13			—			142
Provision for income taxes		—			(9	)		(22	)		(6	)		—			(37	)
Equity in net income of subsidiaries		110			—			42			—			(152	)		—
Equity in net income of affiliates		—			—			3			1			—			4
Income from continuing operations		111			35			107			8			(152	)		109
Income from discontinued operations, net of tax		—			—			3			—			—			3
Net income		111			35			110			8			(152	)		112
Less net income attributable to noncontrolling interests		—			—			—			1			—			1
Net income attributable to controlling interest		111			35			110			7			(152	)		111
Total other comprehensive (loss)/income		(89	)		12			(72	)		(148	)		208			(89	)
Total comprehensive income/(loss)		22			47			38			(140	)		56			23
Comprehensive income attributable to noncontrolling interests		—			—			—			1			—			1
Total comprehensive income/(loss) attributable to controlling interests	$	22		$	47		$	38		$	(141	)	$	56		$	22

The Nielsen Company B.V.

Condensed Consolidating Statement of Comprehensive Income (Unaudited)

For the six months ended June 30, 2013

(IN MILLIONS)	Parent			Issuers			Guarantor			Non- Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	1,338		$	1,367		$	—		$	2,705
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			508			651			—			1,159
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			417			457			—			874
Depreciation and amortization		—			—			185			62			—			247
Restructuring charges		—			—			19			24			—			43
Operating income		—			—			209			173			—			382
Interest income		—			298			24			9			(330	)		1
Interest expense		—			(150	)		(304	)		(25	)		330			(149	)
Foreign currency exchange transaction losses, net		—			—			—			(16	)		—			(16	)
Other (expense)/income, net		—			(12	)		64			(64	)		—			(12	)
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		—			136			(7	)		77			—			206
Provision for income taxes		—			(48	)		—			(16	)		—			(64	)
Equity in net income of subsidiaries		465			—			148			—			(613	)		—
Equity in net income of affiliates		—			—			1			2			—			3
Income from continuing operations		465			88			142			63			(613	)		145
Income from discontinued operations, net of tax		—			—			323			(4	)		—			319
Net income		465			88			465			59			(613	)		464
Net loss attributable to noncontrolling interest		—			—			—			(1	)		—			(1	)
Net income attributable to controlling interest		465			88			465			60			(613	)		465
Total other comprehensive (loss)/income		(99	)		11			(99	)		(136	)		223			(100	)
Total other comprehensive loss attributable to noncontrolling interest		—			—			—			(1	)		—			(1	)
Total other comprehensive (loss)/income attributable to controlling interest		(99	)		11			(99	)		(135			223			(99	)
Total comprehensive income/(loss)		366			99			366			(77	)		(390	)		364
Total comprehensive loss attributable to noncontrolling interest		—			—			—			(2	)		—			(2	)
Total comprehensive income/(loss) attributable to controlling interest	$	366		$	99		$	366		$	(75	)	$	(390	)	$	366

The Nielsen Company B.V.

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the six months ended June 30, 2012

(IN MILLIONS)	Parent
Revenues	$	—		$	—		$	1,280		$	1,335		$	—		$	2,615
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			479			620			—			1,099
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		—			—			414			451			—			865
Depreciation and amortization		—			—			187			56			—			243
Restructuring charges		—			—			14			39			—			53
Operating income		—			—			186			169			—			355
Interest income		2			277			32			15			(324	)		2
Interest expense		(1	)		(189	)		(290	)		(33	)		324			(189	)
Foreign currency exchange transaction losses, net		—			—			(1	)		(12	)		—			(13	)
Other (expense)/income, net		—			(6	)		113			(103	)		—			4
Income from continuing operations before income taxes and equity in net income of subsidiaries and affiliates		1			82			40			36			—			159
Provision for income taxes		—			(23	)		(5	)		(10	)		—			(38	)
Equity in net income of subsidiaries		138			—			83			—			(221	)		—
Equity in net income of affiliates		—			—			1			1			—			2
Income from continuing operations		139			59			119			27			(221	)		123
Income from discontinued operations, net of tax		—			—			19			(2	)		—			17
Net income		139			59			138			25			(221	)		140
Less net income attributable to noncontrolling interest		—			—			—			1			—			1
Net income attributable to controlling interest		139			59			138			24			(221	)		139
Total other comprehensive (loss)/income		(1	)		4			5			(32	)		23			(1	)
Total comprehensive income/(loss)		138			63			143			(7	)		(198	)		139
Comprehensive income attributable to noncontrolling interest		—			—			—			1			—			1
Total comprehensive income/(loss) attributable to controlling interests	$	138		$	63		$	143		$	(8	)	$	(198	)	$	138

Condensed Consolidating Balance Sheet

The Nielsen Company B.V.

Condensed Consolidating Balance Sheet (Unaudited)

June 30, 2013

(IN MILLIONS)	Parent		Issuers		Guarantor		Non- Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	—	$	—	$	876	$	278	$	—		$	1,154
Trade and other receivables, net		—		—		383		721		—			1,104
Prepaid expenses and other current assets		—		11		142		127		—			280
Intercompany receivables		—		187		199		117		(503	)		—
Total current assets		—		198		1,600		1,243		(503	)		2,538
Non-current assets
Property, plant and equipment, net		—		—		308		227		—			535
Goodwill		—		—		4,549		2,142		—			6,691
Other intangible assets, net		—		—		3,904		426		—			4,330
Deferred tax assets		10		—		81		76		—			167
Other non-current assets		—		35		173		68		—			276
Equity investment in subsidiaries		5,492		—		4,958		—		(10,450	)		—
Intercompany loans		—		7,409		542		1,234		(9,185	)		—
Total assets	$	5,502	$	7,642	$	16,115	$	5,416	$	(20,138	)	$	14,537
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	47	$	263	$	526	$	—		$	836
Deferred revenues		—		—		139		142		—			281
Income tax liabilities		—		—		65		24		—			89
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		317		38		8		—			363
Intercompany payables		—		—		317		186		(503	)		—
Total current liabilities		—		364		822		886		(503	)		1,569
Non-current liabilities
Long-term debt and capital lease obligations		—		5,819		84		17		—			5,920
Deferred tax liabilities		—		71		799		81		—			951
Intercompany loans		—		—		8,672		513		(9,185	)		—
Other non-current liabilities		2		6		246		296		—			550
Total liabilities		2		6,260		10,623		1,793		(9,688	)		8.990
Total stockholders’ equity		5,500		1,382		5,492		3,576		(10,450	)		5,500
Noncontrolling interests		—		—		—		47		—			47
Total equity		5,500		1,382		5,492		3,623		(10,450	)		5,547
Total liabilities and equity	$	5,502	$	7,642	$	16,115	$	5,416	$	(20,138	)	$	14,537

The Nielsen Company B.V.

Condensed Consolidating Balance Sheet

December 31, 2012

(IN MILLIONS)	Parent		Issuers		Guarantor		Non- Guarantor		Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	—	$	—	$	24	$	263	$	—		$	287
Trade and other receivables, net		—		—		404		706		—			1,110
Prepaid expenses and other current assets		—		14		132		132		—			278
Intercompany receivables		—		270		177		134		(581	)		—
Total current assets		—		284		737		1,235		(581	)		1,675
Non-current assets
Property, plant and equipment, net		—		—		303		257		—			560
Goodwill		—		—		5,046		2,306		—			7,352
Other intangible assets, net		—		—		4,088		467		—			4,555
Deferred tax assets		10		3		77		79		—			169
Other non-current assets		—		46		165		61		—			272
Equity investment in subsidiaries		5,157		—		5,663		—		(10,820	)		—
Intercompany loans		45		7,944		555		1,300		(9,844	)		—
Total assets	$	5,212	$	8,277	$	16,634	$	5,705	$	(21,245	)	$	14,583
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	52	$	347	$	572	$	—		$	971
Deferred revenues		—		—		217		156		—			373
Income tax liabilities		—		—		12		44		—			56
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		340		15		7		—			362
Intercompany payables		—		14		414		153		(581	)		—
Total current liabilities		—		406		1,005		932		(581	)		1,762
Non-current liabilities
Long-term debt and capital lease obligations		—		5,843		81		17		—			5,941
Deferred tax liabilities		—		71		838		97		—			1006
Intercompany loans		—		—		9,295		549		(9,844	)		—
Other non-current liabilities		2		16		258		340		—			616
Total liabilities		2		6,336		11,477		1,935		(10,425	)		9,325
Total stockholders’ equity		5,210		1,941		5,157		3,722		(10,820	)		5,210
Noncontrolling interests		—		—		—		48		—			48
Total equity		5,210		1,941		5,157		3,770		(10,820	)		5,258
Total liabilities and equity	$	5,212	$	8,277	$	16,634	$	5,705	$	(21,245	)	$	14,583

Condensed Consolidating Statement of Cash Flows

The Nielsen Company B.V.

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2013

(IN MILLIONS)	Parent
Net cash provided by operating activities	$	—		$	219		$	4		$	47		$	270
Investing activities:
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(12	)		(7	)		(19	)
Proceeds from sale of subsidiaries and affiliates, net		—			—			934			—			934
Additions to property, plant and equipment and other assets		—			—			(30	)		(25	)		(55	)
Additions to intangible assets		—			—			(105	)		(10	)		(115	)
Net cash provided by/(used in) investing activities		—			—			787			(42	)		745
Financing activities:
Proceeds from the issuance of debt, net of issuance costs		—			1,866			21			3			1,890
Repayments of debt		—			(1,911	)		—			—			(1,911	)
Increase in other short-term borrowings		—			—			—			2			2
Capital contributions to parent		(90	)		—			—			—			(90	)
Activity under stock plans

Nielsen CO B.V. 10-Q