Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION

v3.6.0.2
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
 
Organizational Realignment. In the first quarter of 2016, we acquired Veda, which operates primarily in Australia and New Zealand. We have included Veda's operations within a newly-created Asia Pacific reporting unit within the International operating segment. Additionally, we moved the TDX Australia and India operations that were included in our Europe reporting unit, along with corporate assets including equity method investments in Russia and India, to the Asia Pacific reporting unit to align with how we manage our business. Our financial results for the years ended December 31, 2015 and 2014 reflect our new organizational structure. Additionally in 2016, we have renamed our Personal Solutions operating segment Global Consumer Solutions.
    
In 2015, the personal solutions business in the United Kingdom was consolidated into the North America Personal Solutions segment, which was reorganized into the Global Consumer Solutions segment. Additionally in 2015, the direct to consumer reseller businesses in the U.S., Canada, and the United Kingdom were also consolidated into the Global Consumer Solutions segment. These changes were driven by an enterprise wide strategy to maximize the penetration of our products and services in our targeted markets. We determined that market focus and operating efficiency could be further improved by reorganizing and consolidating the United States, Canada and the United Kingdom Global Consumer Solutions and Direct to Consumer Reseller operating activities into one segment, Global Consumer Solutions. As a result, we modified our segment reporting effective 2015. Our financial results for the year ended December 31, 2014 has been recast below to reflect our new organizational structure.
    
On July 1, 2014 the North America Commercial Solutions operating segment was consolidated into the U.S. Consumer Information Solutions and International operating segments. The change was driven by an enterprise wide distribution marketing strategy to maximize the penetration of our products and services in our targeted markets. In an effort to accelerate our penetration and simplify how our commercial information customers interact with us, we have reorganized our operating segments. The U.S. portion of the North America Commercial Solutions (“NACS”) operating segment was consolidated into the U.S. Consumer Information Solutions operating segment. The combined operating segment was renamed U.S. Information Solutions. The Canadian portion of the NACS operating segment was consolidated into the Canada operations of the International operating segment. As a result, we modified our segment reporting effective in the third quarter of 2014.

Reportable Segments.   We manage our business and report our financial results through the following four reportable segments, which are the same as our operating segments:
 
•
U.S. Information Solutions

•
International

•
Workforce Solutions

•
Global Consumer Solutions

The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies (see Note 1). We evaluate the performance of these reportable segments based on their operating revenue, operating income and operating margins, excluding any unusual or infrequent items, if any. The measurement criteria for segment profit or loss and segment assets are substantially the same for each reportable segment. Inter-segment sales are not material for all periods presented. All transactions between segments are accounted for at fair market value or cost depending on the nature of the transaction, and no timing differences occur between segments.
 
A summary of segment products and services is as follows:
 
U.S. Information Solutions.   This segment includes consumer and commercial information services (such as credit information and credit scoring, credit modeling services and portfolio analytics (decisioning tools), which are derived from our databases of business credit and financial information, locate services, fraud detection and prevention services, identity verification services and other consulting services); mortgage loan origination information; financial marketing services; and identity management.
 
International.   This segment includes information services products, which includes consumer and commercial services (such as credit and financial information, credit scoring and credit modeling services), credit and other marketing products and services. In Europe, Asia Pacific, Latin America and Canada, we also provide information, technology and services to support debt collections and recovery management.
 
Workforce Solutions.   This segment includes employment, income and social security number verification services as well as complementary payroll-based transaction services and employment tax management services.
 
Global Consumer Solutions.   This segment includes credit information, credit monitoring and identity theft protection products sold directly to consumers via the internet and in various hard-copy formats in the U.S., Canada, and the U.K. We also sell consumer and credit information to resellers who combine our information with other information to provide direct to consumer monitoring, reports and scores.

Segment information for the twelve months ended December 31, 2016, 2015 and 2014 and as of December 31, 2016 and 2015 is as follows:
 
 
Twelve Months Ended
December 31,
Operating revenue:
 
2016
 
2015
 
2014
 
 
(In millions)
U.S. Information Solutions
 
$
1,236.5

 
$
1,171.3

 
$
1,079.9

International
 
803.6

 
568.5

 
572.2

Workforce Solutions
 
702.2

 
577.7

 
490.1

Global Consumer Solutions
 
402.6

 
346.1

 
294.2

Total operating revenue
 
$
3,144.9

 
$
2,663.6

 
$
2,436.4

 
 
 
Twelve Months Ended
December 31,
Operating income:
 
2016
 
2015
 
2014
 
 
(In millions)
U.S. Information Solutions
 
$
537.0

 
$
491.2

 
$
421.0

International
 
111.4

 
113.5

 
121.0

Workforce Solutions
 
295.5

 
218.8

 
160.7

Global Consumer Solutions
 
112.4

 
95.2

 
93.4

General Corporate Expense
 
(238.4
)
 
(224.8
)
 
(157.9
)
Total operating income
 
$
817.9

 
$
693.9

 
$
638.2

 
 
 
December 31,
Total assets:
 
2016
 
2015
 
 
(In millions)
U.S. Information Solutions
 
$
1,824.0

 
$
1,869.6

International
 
2,932.5

 
844.5

Workforce Solutions
 
1,337.0

 
1,268.5

Global Consumer Solutions
 
193.7

 
197.9

General Corporate
 
376.8

 
321.0

Total assets
 
$
6,664.0

 
$
4,501.5

 
 
 
Twelve Months Ended
December 31,
Depreciation and amortization expense:
 
2016
 
2015
 
2014
 
 
(In millions)
U.S. Information Solutions
 
$
82.1

 
$
83.3

 
$
86.7

International
 
101.6

 
40.1

 
44.2

Workforce Solutions
 
42.7

 
42.0

 
42.6

Global Consumer Solutions
 
9.6

 
9.4

 
8.2

General Corporate
 
29.4

 
23.2

 
20.1

Total depreciation and amortization expense
 
$
265.4

 
$
198.0

 
$
201.8

 
 
 
Twelve Months Ended
December 31,
Capital expenditures:
 
2016
 
2015
 
2014
 
 
(In millions)
U.S. Information Solutions
 
$
19.1

 
$
21.9

 
$
16.6

International
 
50.3

 
25.7

 
15.2

Workforce Solutions
 
22.2

 
22.1

 
13.1

Global Consumer Solutions
 
12.3

 
11.2

 
9.2

General Corporate
 
87.6

 
69.8

 
32.3

Total capital expenditures*
 
$
191.5

 
$
150.7

 
$
86.4


*Amounts above also include capital expenditures in accounts payable.
 
Financial information by geographic area is as follows:
 
 
Twelve Months Ended
December 31,
 
 
2016
 
2015
 
2014
 
 
 
 
 
 
(In millions)
 
 
 
 
Operating revenue (based on location of customer):
 
Amount
 
%
 
Amount
 
%
 
Amount
 
%
U.S.
 
$
2,290.9

 
73
%
 
$
2,041.7

 
77
%
 
$
1,810.2

 
74
%
U.K.
 
232.1

 
7
%
 
224.1

 
8
%
 
217.0

 
9
%
Australia
 
214.3

 
7
%
 
5.0

 
nm

 
2.9

 
nm

Canada
 
134.3

 
4
%
 
135.5

 
5
%
 
154.2

 
6
%
Other
 
273.3

 
9
%
 
257.3

 
10
%
 
252.1

 
11
%
Total operating revenue
 
$
3,144.9

 
100
%
 
$
2,663.6

 
100
%
 
$
2,436.4

 
100
%

 
 
December 31,
 
 
2016
 
2015
 
 
 
 
(In millions)
 
 
Long-lived assets:
 
Amount
 
%
 
Amount
 
%
U.S.

$
3,282.5


55
%

$
3,248.3


82
%
U.K.

278.1


5
%

350.2


9
%
Australia

2,061.7


34
%

2.9


nm

Canada

52.4


1
%

45.5


1
%
Other

316.4


5
%

300.5


8
%
Total long-lived assets

$
5,991.1


100
%

$
3,947.4


100
%