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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
ASC Topic 280, Segment Reporting (“ASC 280”) establishes the standards for reporting information about segments in financial statements. The Company has determined that it is organized, managed and internally grouped into three segments: Industrial, Consumer and Software and Advisory. UL Solutions segments provide common goods and services to their customers, which provides for efficient sharing of the segments’ resources as needed. Segment information is reported on the basis used for reporting to the Chief Executive Officer, who serves as the Company’s chief operating decision maker (“CODM”) and evaluates each segment’s performance using a variety of metrics, including operating income, which is the measure most consistent with amounts included in the Company’s consolidated financial statements. The CODM uses operating income to evaluate each segment’s performance and allocate resources, including employees and capital, considering budget-to-actual variances to review operating trends in the annual budgeting and quarterly forecasting processes.
The following is a brief description of the Company’s segments:
Industrial: The Industrial segment provides testing, inspection and certification (“TIC”) services to help ensure customers’ industrial products meet or exceed international standards for product safety, performance and sustainability. The Industrial segment provides services that address needs across a number of end markets, including energy, industrial automation, engineered materials (plastics and wire and cable) and built environment, and across a variety of stakeholders, including manufacturers, building and asset owners, end users and regulators. The Company believes the products it tests, certifies and inspects in this segment generally represent very high cost of failure components, which in turn drives customers in this segment to choose UL Solutions based on its deep technical expertise, consistency and quality of service.
Consumer: The Consumer segment provides a variety of global product market acceptance and risk mitigation services for customers in the consumer products end market, including consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, retail (softlines and hardlines) and emerging consumer applications, including new mobility, smart products and 5G. The primary services offered by this segment include safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality and critical systems advisory and training.
Software and Advisory: The Software and Advisory segment provides complementary software and advisory solutions that extend the value proposition of TIC services the Company offers. The software and technical advisory offerings enable the Company’s customers to manage complex regulatory requirements, deliver supply chain transparency and operationalize sustainability.
The accounting policies applied to the segments are the same as those applied by the Company to the consolidated financial statements. The Company prepared the financial results of the segments on a basis that is consistent with the manner in which management internally disaggregates financial information to assist in making internal operating decisions. The Company manages income taxes and certain treasury related items, such as interest income and expense, on a global basis within corporate.
The Company allocates among segments certain common costs and expenses not specifically identifiable to the segments differently than the Company would for stand-alone financial information prepared in accordance with US GAAP. These include certain costs and expenses of the Company’s corporate functions, such as executive, finance, legal, human resources and information technology. Allocations are calculated primarily based on segment expenses proportionate to consolidated expenses.
The following table provides revenue, significant segment expenses and operating income, by segment for the years ended December 31, 2024, 2023 and 2022:
IndustrialConsumerSoftware and AdvisoryTotal
(in millions)202420232022202420232022202420232022202420232022
Revenue$1,254 $1,146 $1,044 $1,238 $1,172 $1,128 $378 $360 $348 $2,870 $2,678 $2,520 
Employee compensation595 556 503 714 693 647 255 241 224 1,564 1,490 1,374 
Services and materials274 244 223 331 322 314 67 63 62 672 629 599 
Depreciation and amortization47 38 32 79 75 66 46 41 37 172 154 135 
Goodwill impairment— — — — 37 — — — — — 37 — 
Operating income$338 $308 $286 $114 $45 $101 $10 $15 $25 $462 $368 $412 
Capital expenditures of the Company’s segments were as follows for the years ended December 31:
(in millions)202420232022
Industrial$96 $56 $19 
Consumer34 52 55 
Software and Advisory31 39 19 
Total segments161 147 93 
Corporate76 68 71 
Total$237 $215 $164 
Assets by segment are not disclosed as the Company does not allocate assets to segments for internal reporting presentations provided to the CODM.
Geographic Information
Revenue by major geographic region based on the location of the Company’s customers was as follows for the years ended December 31:
(in millions)202420232022
United States$1,178 $1,117 $1,051 
China(a)
710 632 608 
Asia Pacific375 346 335 
Europe, Middle East and Africa496 474 429 
Other Americas111 109 97 
Total$2,870 $2,678 $2,520 
__________
(a)Represents revenue from Greater China - mainland China, Hong Kong and Taiwan.
The following table provides a summary of long-lived assets, excluding financial instruments and tax assets, classified by major geographic region as of December 31:
(in millions)202420232022
United States$437 $327 $260 
China(a)
136 127 139 
Asia Pacific109 119 106 
Europe, Middle East and Africa109 101 107 
Other Americas26 32 25 
Total$817 $706 $637 
__________
(a)Represents long-lived assets from Greater China - mainland China, Hong Kong and Taiwan.