Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION

v3.8.0.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2017
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 year ended December 31, 2015 reflect our new organizational structure. Additionally in 2016, we 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.
    
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 Asia Pacific, Europe, 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, 2017, 2016 and 2015 and as of December 31, 2017 and 2016 is as follows:
 
 
Twelve Months Ended
December 31,
Operating revenue:
 
2017
 
2016
 
2015
 
 
(In millions)
U.S. Information Solutions
 
$
1,262.7

 
$
1,236.5

 
$
1,171.3

International
 
932.3

 
803.6

 
568.5

Workforce Solutions
 
764.2

 
702.2

 
577.7

Global Consumer Solutions
 
403.0

 
402.6

 
346.1

Total operating revenue
 
$
3,362.2

 
$
3,144.9

 
$
2,663.6

 
 
 
Twelve Months Ended
December 31,
Operating income:
 
2017
 
2016
 
2015
 
 
(In millions)
U.S. Information Solutions
 
$
539.1

 
$
537.0

 
$
491.2

International
 
169.4

 
111.4

 
113.5

Workforce Solutions
 
331.9

 
295.5

 
218.8

Global Consumer Solutions
 
106.2

 
112.4

 
95.2

General Corporate Expense
 
(322.0
)
 
(238.4
)
 
(224.8
)
Total operating income
 
$
824.6

 
$
817.9

 
$
693.9

 
 
 
December 31,
Total assets:
 
2017
 
2016
 
 
(In millions)
U.S. Information Solutions
 
$
1,587.3

 
$
1,824.0

International
 
3,145.7

 
2,932.5

Workforce Solutions
 
1,227.4

 
1,337.0

Global Consumer Solutions
 
254.0

 
193.7

General Corporate
 
1,019.0

 
376.8

Total assets
 
$
7,233.4

 
$
6,664.0

 
 
 
Twelve Months Ended
December 31,
Depreciation and amortization expense:
 
2017
 
2016
 
2015
 
 
(In millions)
U.S. Information Solutions
 
$
83.7

 
$
82.1

 
$
83.3

International
 
109.9

 
101.6

 
40.1

Workforce Solutions
 
42.1

 
42.7

 
42.0

Global Consumer Solutions
 
13.2

 
9.6

 
9.4

General Corporate
 
38.9

 
29.4

 
23.2

Total depreciation and amortization expense
 
$
287.8

 
$
265.4

 
$
198.0

 
 
 
Twelve Months Ended
December 31,
Capital expenditures:
 
2017
 
2016
 
2015
 
 
(In millions)
U.S. Information Solutions
 
$
18.6

 
$
19.1

 
$
21.9

International
 
59.7

 
50.3

 
25.7

Workforce Solutions
 
28.9

 
22.2

 
22.1

Global Consumer Solutions
 
15.0

 
12.3

 
11.2

General Corporate
 
91.8

 
87.6

 
69.8

Total capital expenditures*
 
$
214.0

 
$
191.5

 
$
150.7


*Amounts above exclude changes in accruals for capital expenditures.
 
Financial information by geographic area is as follows:
 
 
Twelve Months Ended
December 31,
 
 
2017
 
2016
 
2015
 
 
 
 
 
 
(In millions)
 
 
 
 
Operating revenue (based on location of customer):
 
Amount
 
%
 
Amount
 
%
 
Amount
 
%
U.S.
 
$
2,379.7

 
71
%
 
$
2,290.9

 
73
%
 
$
2,041.7

 
77
%
U.K.
 
311.2

 
9
%
 
232.1

 
7
%
 
224.1

 
8
%
Australia
 
304.0

 
9
%
 
214.3

 
7
%
 
5.0

 
nm

Canada
 
148.9

 
4
%
 
134.3

 
4
%
 
135.5

 
5
%
Other
 
218.4

 
7
%
 
273.3

 
9
%
 
257.3

 
10
%
Total operating revenue
 
$
3,362.2

 
100
%
 
$
3,144.9

 
100
%
 
$
2,663.6

 
100
%

 
 
December 31,
 
 
2017
 
2016
 
 
 
 
(In millions)
 
 
Long-lived assets:
 
Amount
 
%
 
Amount
 
%
U.S.

$
3,274.5


53
%

$
3,282.5


55
%
U.K.

303.2


5
%

278.1


5
%
Australia

2,207.1


35
%

2,061.7


34
%
Canada

67.4


1
%

52.4


1
%
Other

382.8


6
%

316.4


5
%
Total long-lived assets

$
6,235.0


100
%

$
5,991.1


100
%