v2.4.0.6
Operating Segments
 12 Months Ended
Dec. 31, 2012
Operating Segments [Abstract]  
Operating Segments

19. Operating Segments

Operating segments are businesses for which separate financial information is available and evaluated regularly by the chief operating decision-maker in deciding how to allocate resources. This segment financial information is reported on the basis that is used for the internal evaluation of operating performance. The accounting policies of the segments are the same as described in Note 1, “Significant Accounting and Reporting Policies.”

We evaluate the performance of segments based on revenue and operating income. Intersegment sales and transfers have been eliminated and were not material.

The following is a more detailed description of the three operating segments and the Corporate unit, which provides support services to each operating segment:

U.S. Information Services

U.S. Information Services (“USIS”) provides consumer reports, credit scores, verification services, analytical services and decisioning technology to businesses in the United States through both direct and indirect channels. These services are offered to customers in the financial services, insurance, healthcare and other markets. These business customers use our products and services to acquire new customers, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, and manage fraud. This segment also provides mandated consumer services, including dispute investigations, free annual credit reports and other requirements of the United States Fair Credit Reporting Act (“FCRA”), the Fair and Accurate Credit Transactions Act of 2003 (“FACTA”), and other credit-related legislation.

International

The International segment provides services similar to our USIS segment to business customers outside the United States and automotive information and commercial data to customers in select geographies. Depending on the maturity of the credit economy in each location, services may include credit reports, analytical and decision services, and risk management services. These services are offered to customers in a number of industries, including financial services, insurance, automotive, collections and communications, and are delivered through both direct and indirect channels. The International segment also provides consumer services similar to those offered in our Interactive segment, such as credit reports, credit scores and credit monitoring services. The two market groups in the International segment are developed markets, which includes Canada, Hong Kong and Puerto Rico, and emerging markets, which includes South Africa, Mexico, Brazil, the Dominican Republic, India and other emerging markets.

Interactive

Interactive provides services to consumers, including credit reports, scores and credit and identity monitoring services, primarily through the internet. The majority of revenue is derived from subscribers who pay a monthly fee for access to their credit report and score, and for alerts related to changes in their credit reports.

Corporate

Corporate provides shared services for the Company and conducts enterprise functions. Certain costs incurred in Corporate that are not directly attributable to one or more of the operating segments remain in Corporate. These costs are typically for enterprise-level functions and are primarily administrative in nature.

 

Selected financial information consisted of the following:

 

                                     
    TransUnion Corp.
Successor		          TransUnion Corp. Predecessor  

(in millions)

   Eight Months
Ended December 31,
2012		          Four Months
Ended April, 30
2012		     Year Ended
December 31,
2011		     Year Ended
December 31,
2010		  

Revenue

                                    

U.S. Information Services

   $ 487.4         $ 238.1     $ 660.1     $ 636.0  

International

     157.8           76.6       216.1       195.8  

Interactive

     121.8           58.3       147.8       124.7  
   

 

 

        

 

 

    

 

 

    

 

 

  

Total

   $ 767.0         $ 373.0     $ 1,024.0     $ 956.5  
   

 

 

        

 

 

    

 

 

    

 

 

  

Operating income (loss)

                                    

U.S. Information Services

   $ 121.9         $ 33.2     $ 185.8     $ 177.1  

International

     19.1           5.3       66.7       62.7  

Interactive

     48.7           13.0       56.5       37.7  

Corporate

     (47.6 )          (51.7 )      (56.3 )      (61.4 ) 
   

 

 

        

 

 

    

 

 

    

 

 

  

Total

   $ 142.1         $ (0.2 )    $ 252.7     $ 216.1  
   

 

 

        

 

 

    

 

 

    

 

 

  

Reconciliation of operating income (loss) to income from continuing operations before income tax:

                                    

Operating income from segments

   $ 142.1         $ (0.2 )    $ 252.7     $ 216.1  

Non-operating income and expense

     (69.9 )          (63.7 )      (185.6 )      (133.1 ) 
   

 

 

        

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before income tax

   $ 72.2         $ (63.9 )    $ 67.1     $ 83.0  
   

 

 

        

 

 

    

 

 

    

 

 

  

In addition, TransUnion Holding had no revenue, a $0.9 million operating loss, and $68.6 million of non-operating expenses from the date of inception through December 31, 2012.

Other income and expense, net, included earnings (losses) from equity method investments as follows:

 

                                     
    TransUnion Corp.
Successor		         TransUnion Corp. Predecessor  

(in millions)

   Eight Months
Ended December 31,
2012		         Four Months
Ended April 30,
2012		     Year Ended
December 31,
2011		     Year Ended
December 31,
2010		  

U.S. Information Services

   $ 0.9         $ 0.5     $ 1.1     $ (0.1 ) 

International

     7.1           3.6       10.3       8.5  

Interactive

     —             —         —         —    
   

 

 

        

 

 

    

 

 

    

 

 

  

Total

   $ 8.0         $ 4.1     $ 11.4     $ 8.4  
   

 

 

        

 

 

    

 

 

    

 

 

  

TransUnion Holding has no equity method investments other than the equity method investments owned by TransUnion Corp.

 

Property, plant and equipment, net of accumulated depreciation and amortization, by segment, consisted of the following:

 

                     

(in millions)

   TransUnion
Corp.
Successor
December  31,
2012		         TransUnion
Corp.
Predecessor
December 31,
2011		  

U.S. Information Services

   $ 55.7         $ 58.0  

International

     18.4           26.7  

Interactive

     3.3           3.3  

Corporate

     43.8           21.0  
   

 

 

        

 

 

  

Total

   $ 121.2         $ 109.0  
   

 

 

        

 

 

  

TransUnion Holding owns no property, plant or equipment other than the property, plant and equipment owned by TransUnion Corp.

Cash paid for capital expenditures, by segment, was as follows:

 

                             
    TransUnion Corp.
Successor		          TransUnion Corp. Predecessor  

(in millions)

   Eight Months Ended
December 31, 2012		          Four Months Ended
April 30, 2012		     Year Ended
December 31, 2011		  

U.S. Information Services

   $ 30.8         $ 14.3     $ 54.3  

International

     8.6           2.4       12.3  

Interactive

     2.8           1.3       2.1  

Corporate

     6.6           2.4       5.3  
   

 

 

        

 

 

    

 

 

  

Total

   $ 48.8         $ 20.4     $ 74.0  
   

 

 

        

 

 

    

 

 

  

TransUnion Holding had no capital expenditures other than the capital expenditures incurred by TransUnion Corp.

Depreciation and amortization expense of continuing operations, by segment, was as follows:

 

                                     
    TransUnion Corp.
Successor		         TransUnion Corp. Predecessor  

(in millions)

   Eight Months
Ended December  31,
2012		         Four Months
Ended April 30,
2012		     Year Ended
December 31,
2011		     Year Ended
December 31,
2010		  

U.S. Information Services

   $ 78.9         $ 22.3     $ 66.9     $ 63.7  

International

     25.8           3.7       7.8       6.8  

Interactive

     5.2           1.3       4.3       4.8  

Corporate

     5.1           1.9       6.3       6.3  
   

 

 

        

 

 

    

 

 

    

 

 

  

Total

   $ 115.0         $ 29.2     $ 85.3     $ 81.6  
   

 

 

        

 

 

    

 

 

    

 

 

  

TransUnion Holding had no depreciation and amortization expense other than the depreciation and amortization expense incurred by TransUnion Corp.

 

Revenue based on the country where it was earned, was a follows:

 

                                     
    TransUnion
Corp. Successor		         TransUnion Corp. Predecessor  

(in millions)

   Eight Months
Ended December 31,
2012		         Four Months
Ended April 30,
2012		     Year Ended
December 31,
2011		     Year Ended
December 31,
2010		  

United States

     79 %         79 %     79 %     80 %

South Africa

     7 %         8 %     9 %     9 %

Canada

     5 %         6 %     6 %     6 %

Other

     9 %         7 %     6 %     5 %

TransUnion Holding had no revenue other than the revenue earned by TransUnion Corp.

Long-lived assets, other than financial instruments and deferred tax assets, based on the location of the legal entity that owns the asset, was as follows:

 

                         
    Approximate Percent of Long-Lived
Assets		  
Country       2012             2011             2010      

United States

     81 %     80 %     88 %

South Africa

     5 %     5 %     7 %

Canada

     4 %     2 %     2 %

Other

     10 %     13 %     3 %

TransUnion Holding owns no long-lived assets other than the long-lived assets owned by TransUnion Corp.