2024 Q3 Form 10-Q Financial Statement

#000155203324000075 Filed on October 23, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2 2024 Q1
Revenue $1.085B $1.041B $1.021B
YoY Change 12.01% 7.52% 8.6%
Cost Of Revenue $448.7M $406.7M $406.3M
YoY Change 30.13% 11.27% 25.05%
Gross Profit $636.3M $634.1M $614.9M
YoY Change 1.99% 5.24% -0.08%
Gross Profit Margin 58.65% 60.92% 60.21%
Selling, General & Admin $305.7M $310.8M $305.6M
YoY Change -2.89% -1.02% -10.25%
% of Gross Profit 48.04% 49.01% 49.7%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $133.6M $132.9M $134.0M
YoY Change 1.75% 2.15% 3.32%
% of Gross Profit 21.0% 20.96% 21.79%
Operating Expenses $928.6M $858.4M $439.5M
YoY Change -27.79% 93.29% -44.72%
Operating Profit $156.4M $182.4M $175.4M
YoY Change -149.29% 15.15% 20.8%
Interest Expense -$54.10M $67.90M -$58.60M
YoY Change -174.42% -246.97% -181.62%
% of Operating Profit -34.59% 37.23% -33.41%
Other Income/Expense, Net -$59.60M -$61.70M -$13.40M
YoY Change 7.58% 85.84% -80.75%
Pretax Income $96.80M $120.7M $83.00M
YoY Change -125.97% 57.57% 9.79%
Income Tax $24.90M $31.00M $13.00M
% Of Pretax Income 25.72% 25.68% 15.66%
Net Earnings $68.00M $85.00M $65.10M
YoY Change -117.01% 57.7% 23.76%
Net Earnings / Revenue 6.27% 8.17% 6.37%
Basic Earnings Per Share $0.35 $0.44 $0.34
Diluted Earnings Per Share $0.35 $0.44 $0.33
COMMON SHARES
Basic Shares Outstanding 194.6M shares 194.2M shares 194.0M shares
Diluted Shares Outstanding 197.0M shares 195.2M shares 195.3M shares

Balance Sheet

Concept 2024 Q3 2024 Q2 2024 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $646.0M $543.2M $436.2M
YoY Change 52.36% 22.18% -1.25%
Cash & Equivalents $643.2M $543.2M $433.6M
Short-Term Investments $2.800M $2.600M $2.600M
Other Short-Term Assets $228.2M $222.1M $212.1M
YoY Change -20.35% -25.94% -26.74%
Inventory
Prepaid Expenses $134.9M $150.1M $146.9M
Receivables $798.4M $778.6M $774.6M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.670B $1.544B $1.423B
YoY Change 19.11% 8.93% 3.03%
LONG-TERM ASSETS
Property, Plant & Equipment $181.5M $183.6M $293.8M
YoY Change -0.77% -41.29% 40.24%
Goodwill $5.185B $5.162B $5.170B
YoY Change 1.95% -7.78% -7.17%
Intangibles $3.357B $3.391B $3.450B
YoY Change -5.34% -6.06% -5.13%
Long-Term Investments $46.80M $44.70M $302.8M
YoY Change -5.26% -84.33% 438.79%
Other Assets $661.1M $744.7M $301.5M
YoY Change -18.35% 127.6% -60.64%
Total Long-Term Assets $9.384B $9.481B $9.602B
YoY Change -2.5% -7.13% -5.7%
TOTAL ASSETS
Total Short-Term Assets $1.670B $1.544B $1.423B
Total Long-Term Assets $9.384B $9.481B $9.602B
Total Assets $11.05B $11.03B $11.02B
YoY Change 0.25% -5.17% -4.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $319.4M $312.6M $281.3M
YoY Change 17.86% -2.5% -5.73%
Accrued Expenses $86.60M $77.50M $277.8M
YoY Change 39.0% -74.62% 368.47%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $66.50M $66.50M $77.50M
YoY Change -42.17% -41.97% -32.37%
Total Short-Term Liabilities $995.7M $930.7M $861.0M
YoY Change 9.29% -0.56% -1.98%
LONG-TERM LIABILITIES
Long-Term Debt $5.135B $5.175B $5.253B
YoY Change -2.26% -3.36% -3.7%
Other Long-Term Liabilities $120.2M $159.7M $166.7M
YoY Change -22.25% -8.43% -2.74%
Total Long-Term Liabilities $5.255B $5.334B $5.420B
YoY Change -2.84% -3.52% -3.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $995.7M $930.7M $861.0M
Total Long-Term Liabilities $5.255B $5.334B $5.420B
Total Liabilities $6.733B $6.788B $6.949B
YoY Change -3.62% -6.56% -3.9%
SHAREHOLDERS EQUITY
Retained Earnings $2.313B $2.266B $2.199B
YoY Change 10.58% -9.78% -11.27%
Common Stock $2.526B $2.479B $2.453B
YoY Change 5.76% 5.61% 5.52%
Preferred Stock
YoY Change
Treasury Stock (at cost) $333.0M $314.3M $313.5M
YoY Change 10.19% 6.76% 7.33%
Treasury Stock Shares
Shareholders Equity $4.216B $4.135B $4.075B
YoY Change
Total Liabilities & Shareholders Equity $11.05B $11.03B $11.02B
YoY Change 0.25% -5.17% -4.66%

Cashflow Statement

Concept 2024 Q3 2024 Q2 2024 Q1
OPERATING ACTIVITIES
Net Income $68.00M $85.00M $65.10M
YoY Change -117.01% 57.7% 23.76%
Depreciation, Depletion And Amortization $133.6M $132.9M $134.0M
YoY Change 1.75% 2.15% 3.32%
Cash From Operating Activities $229.3M $295.2M $54.00M
YoY Change 51.95% 37.11% -30.23%
INVESTING ACTIVITIES
Capital Expenditures $68.00M $68.30M $62.40M
YoY Change -2.3% -11.41% -6.17%
Acquisitions
YoY Change
Other Investing Activities -$600.0K $4.200M $0.00
YoY Change -102.38% -177.78% -100.0%
Cash From Investing Activities -$68.60M -$64.10M -$62.40M
YoY Change 54.5% -22.3% -39.77%
FINANCING ACTIVITIES
Cash Dividend Paid $20.90M $20.40M $20.80M
YoY Change 1.95% -1.92% 0.0%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -69.40M -118.8M -31.30M
YoY Change -42.69% -10.14% -74.34%
NET CHANGE
Cash From Operating Activities 229.3M 295.2M 54.00M
Cash From Investing Activities -68.60M -64.10M -62.40M
Cash From Financing Activities -69.40M -118.8M -31.30M
Net Change In Cash 91.30M 112.3M -39.70M
YoY Change -725.34% 18616.67% -72.86%
FREE CASH FLOW
Cash From Operating Activities $229.3M $295.2M $54.00M
Capital Expenditures $68.00M $68.30M $62.40M
Free Cash Flow $161.3M $226.9M -$8.400M
YoY Change 98.4% 64.18% -177.06%

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us-gaap Net Cash Provided By Used In Financing Activities
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<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements and related disclosures in accordance with GAAP requires management to make estimates and judgments that affect the amounts reported. We believe that the estimates used in preparation of the accompanying consolidated financial statements are reasonable, based upon information available to management at this time. </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These estimates and judgments affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the balance sheet date, as well as the amounts of revenue and expense during the reporting period. Estimates are inherently uncertain and actual results could differ materially from the estimated amounts.</span></div>
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CY2024Q3 us-gaap Goodwill
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CY2024Q3 us-gaap Goodwill
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CY2023Q4 us-gaap Other Receivables
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CY2024Q3 us-gaap Other Assets Noncurrent
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CY2023Q4 us-gaap Equity Method Investments
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CY2023Q4 tru Limited Partnership Investment
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CY2024Q3 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
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CY2024Q3 us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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CY2023Q3 us-gaap Equity Method Investment Dividends Or Distributions
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us-gaap Equity Method Investment Dividends Or Distributions
EquityMethodInvestmentDividendsOrDistributions
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us-gaap Equity Method Investment Dividends Or Distributions
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CY2024Q3 us-gaap Restructuring And Related Cost Expected Cost1
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us-gaap Restructuring Charges
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CY2024Q3 tru Payment For Early Termination Penalty
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CY2024Q3 us-gaap Impairment Of Long Lived Assets To Be Disposed Of
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CY2024Q3 us-gaap Severance Costs1
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us-gaap Severance Costs1
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us-gaap Operating Lease Impairment Loss
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CY2024Q3 us-gaap Restructuring Charges
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us-gaap Restructuring Charges
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us-gaap Severance Costs1
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CY2024Q3 us-gaap Restructuring Reserve
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CY2023Q4 us-gaap Operating Lease Liability Noncurrent
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CY2024Q3 us-gaap Liability For Uncertain Tax Positions Noncurrent
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CY2023Q4 tru Other Noncurrent Other Liabilities
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CY2024Q3 us-gaap Other Liabilities Noncurrent
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CY2023Q4 us-gaap Other Liabilities Noncurrent
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CY2024Q3 us-gaap Debt And Capital Lease Obligations
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CY2024Q3 us-gaap Debt Current
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CY2023Q4 us-gaap Debt Current
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CY2024Q3 us-gaap Long Term Debt Noncurrent
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CY2023Q4 us-gaap Long Term Debt Noncurrent
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CY2024Q3 us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
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us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
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CY2024Q3 us-gaap Letters Of Credit Outstanding Amount
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CY2024Q3 tru Incremental Borrowings Amount
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CY2024Q3 tru Incremental Borrowings Criteria Percentageof Consolidated Ebitda
IncrementalBorrowingsCriteriaPercentageofConsolidatedEBITDA
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CY2024Q3 tru Incremental Borrowings Criteria Senior Secured Leverageratio
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CY2024Q3 tru Net Leverage Ratio Requirement
NetLeverageRatioRequirement
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CY2024Q3 tru Covenant Dividend Restriction Amount
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CY2024Q3 tru Covenant Dividend Restriction Percentageof Consolidated Ebitda
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CY2024Q3 tru Net Leverage Ratio Requirement Dividends
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us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification Before Tax
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CY2024Q3 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
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us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
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us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
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CY2023Q3 tru Interest Expense Income Hedge Gross Of Tax
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CY2024Q3 tru Interest Expense Income Hedge Net Of Tax
InterestExpenseIncomeHedgeNetOfTax
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CY2023Q3 tru Interest Expense Income Hedge Net Of Tax
InterestExpenseIncomeHedgeNetOfTax
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InterestExpenseIncomeHedgeNetOfTax
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InterestExpenseIncomeHedgeNetOfTax
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CY2024Q3 us-gaap Debt Instrument Fair Value
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CY2023Q4 us-gaap Debt Instrument Fair Value
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CY2024Q1 us-gaap Payments Of Dividends
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CY2024Q2 us-gaap Payments Of Dividends
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CY2024Q3 us-gaap Payments Of Dividends
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CY2023Q2 us-gaap Payments Of Dividends
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us-gaap Stock Repurchase Program Period In Force1
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CY2024Q3 tru Stock Repurchase Program Repurchase Amount
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CY2023Q3 us-gaap Stock Issued During Period Shares Restricted Stock Award Net Of Forfeitures
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2024Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2023Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2023Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2024Q3 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2024Q3 us-gaap Unrecognized Tax Benefits
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CY2024Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
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17900000 usd
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CY2023Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2024Q3 tru Adjusted Ebitda Adjustment Corporate Expense
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36700000 usd
CY2023Q3 tru Adjusted Ebitda Adjustment Corporate Expense
AdjustedEBITDAAdjustmentCorporateExpense
34500000 usd
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AdjustedEBITDAAdjustmentCorporateExpense
110600000 usd
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AdjustedEBITDAAdjustmentCorporateExpense
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CY2023Q3 tru Adjusted Ebitda Adjustment Net Interest Expense
AdjustedEBITDAAdjustmentNetInterestExpense
67800000 usd
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AdjustedEBITDAAdjustmentNetInterestExpense
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AdjustedEBITDAAdjustmentNetInterestExpense
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CY2023Q3 tru Adjusted Ebitda Adjustment Depreciationand Amortization
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CY2024Q3 tru Adjusted Ebitda Adjustment Stockbased Compensation
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33800000 usd
CY2023Q3 tru Adjusted Ebitda Adjustment Stockbased Compensation
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AdjustedEBITDAAdjustmentStockbasedCompensation
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CY2024Q3 us-gaap Goodwill Impairment Loss
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CY2023Q3 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
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us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
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us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
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CY2024Q3 tru Adjusted Ebitda Adjustment Mergersand Acquisition
AdjustedEBITDAAdjustmentMergersandAcquisition
7300000 usd
CY2023Q3 tru Adjusted Ebitda Adjustment Mergersand Acquisition
AdjustedEBITDAAdjustmentMergersandAcquisition
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AdjustedEBITDAAdjustmentMergersandAcquisition
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AdjustedEBITDAAdjustmentMergersandAcquisition
24500000 usd
CY2024Q3 tru Adjusted Ebitda Adjustment Accelerated Technology
AdjustedEBITDAAdjustmentAcceleratedTechnology
21800000 usd
CY2023Q3 tru Adjusted Ebitda Adjustment Accelerated Technology
AdjustedEBITDAAdjustmentAcceleratedTechnology
16300000 usd
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AdjustedEBITDAAdjustmentAcceleratedTechnology
58600000 usd
tru Adjusted Ebitda Adjustment Accelerated Technology
AdjustedEBITDAAdjustmentAcceleratedTechnology
53500000 usd
CY2024Q3 tru Adjusted Ebitda Adjustment Operating Model Optimization Program
AdjustedEBITDAAdjustmentOperatingModelOptimizationProgram
47300000 usd
CY2023Q3 tru Adjusted Ebitda Adjustment Operating Model Optimization Program
AdjustedEBITDAAdjustmentOperatingModelOptimizationProgram
0 usd
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AdjustedEBITDAAdjustmentOperatingModelOptimizationProgram
86400000 usd
tru Adjusted Ebitda Adjustment Operating Model Optimization Program
AdjustedEBITDAAdjustmentOperatingModelOptimizationProgram
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CY2024Q3 tru Adjusted Ebitda Adjustment Other
AdjustedEBITDAAdjustmentOther
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CY2023Q3 tru Adjusted Ebitda Adjustment Other
AdjustedEBITDAAdjustmentOther
1800000 usd
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AdjustedEBITDAAdjustmentOther
9700000 usd
tru Adjusted Ebitda Adjustment Other
AdjustedEBITDAAdjustmentOther
10600000 usd
CY2024Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
3900000 usd
CY2023Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
4300000 usd
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
13400000 usd
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
11900000 usd
CY2024Q3 tru Adjusted Ebitda Adjustment Total
AdjustedEBITDAAdjustmentTotal
333600000 usd
CY2023Q3 tru Adjusted Ebitda Adjustment Total
AdjustedEBITDAAdjustmentTotal
682300000 usd
tru Adjusted Ebitda Adjustment Total
AdjustedEBITDAAdjustmentTotal
938400000 usd
tru Adjusted Ebitda Adjustment Total
AdjustedEBITDAAdjustmentTotal
1261400000 usd
CY2024Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
96800000 usd
CY2023Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-291700000 usd
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
300500000 usd
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-139500000 usd
CY2023Q3 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
414000000 usd
CY2024Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
4700000 usd
CY2023Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
3700000 usd
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
14000000.0 usd
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
11700000 usd
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
Contingencies<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Legal and Regulatory Matters</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are routinely named as defendants in, or parties to, various legal actions and proceedings relating to our current or past business operations. These actions generally assert claims for violations of federal or state credit reporting, consumer protection </span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">or privacy laws, or common law claims related to the unfair treatment of consumers, and may include claims for substantial or indeterminate compensatory or punitive damages, or injunctive relief, and may seek business practice changes. We believe that most of these claims are either without merit or we have valid defenses to the claims, and we vigorously defend these matters or seek non-monetary or small monetary settlements, if possible. However, due to the uncertainties inherent in litigation, we cannot predict the outcome of each claim in each instance.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the ordinary course of business, we also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. In connection with formal and informal investigations and inquiries by regulators, we sometimes receive civil investigative demands, requests, subpoenas and orders seeking documents, testimony, and other information in connection with various aspects of our activities.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In view of the inherent unpredictability of legal and regulatory matters, particularly where the damages sought are substantial or indeterminate or when the proceedings or investigations are in the early stages, we cannot determine with any degree of certainty the timing or ultimate resolution of legal and regulatory matters or the eventual loss, fines or penalties, if any, that may result from such matters. We establish reserves for legal and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. However, for certain of the matters, we are not able to reasonably estimate our exposure because damages or penalties have not been specified and (i) the proceedings are in early stages, (ii) there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (iii) there is uncertainty as to the outcome of similar matters pending against our competitors, (iv) there are significant factual issues to be resolved, and/or (v) there are legal issues of a first impression being presented. The actual costs of resolving legal and regulatory matters, however, may be substantially higher than the amounts reserved for those matters, and an adverse outcome in certain of these matters could have a material adverse effect on our consolidated financial statements in particular quarterly or annual periods. We accrue amounts for certain legal and regulatory matters for which losses were considered to be probable of occurring based on our best estimate of the most likely outcome. It is reasonably possible actual losses could be significantly different from our current estimates. In addition, there are some matters for which it is reasonably possible that a loss will occur, however we cannot estimate a range of the potential losses for these matters. </span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">To reduce our exposure to an unexpected significant monetary award resulting from an adverse judicial decision, we maintain insurance that we believe is appropriate and adequate based on our historical experience. We regularly advise our insurance carriers of the claims, threatened or pending, against us in legal and regulatory matters and generally receive a reservation of rights letter from the carriers when such claims exceed applicable deductibles. We are not aware of any significant monetary claim that has been asserted against us, other than the matters with the Consumer Financial Protection Bureau (the “CFPB”) referenced below, that would not have some level of coverage by insurance after the relevant deductible, if any, is met.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of September 30, 2024 and December 31, 2023, we have accrued $110.5 million and $147.8 million, respectively, for legal and regulatory matters. These amounts were recorded in other accrued liabilities in the Consolidated Balance Sheets and the associated expenses were recorded in selling, general and administrative expenses in the Consolidated Statements of Operations. Legal fees incurred in connection with ongoing litigation are considered period costs and are expensed as incurred.</span></div><div style="margin-top:6pt;text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">CFPB Matters</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In June 2021, we received a Notice and Opportunity to Respond and Advise (“NORA”) letter from the CFPB, informing us that the CFPB’s Enforcement Division was considering whether to recommend that the CFPB take legal action against us and certain of our executive officers. The NORA letter alleged that we failed to comply with and timely implement a consent order issued by the CFPB in January 2017 (the “2017 Consent Order”), and further alleged additional violations related to Consumer Interactive’s marketing practices. On September 27, 2021, the Enforcement Division advised us that it had obtained authority to pursue an enforcement action. On April 12, 2022, after failed settlement negotiations with the CFPB related to the matter, the CFPB filed a lawsuit against us, Trans Union LLC, TransUnion Interactive, Inc. (collectively, the “TU Entities”) and the former President of Consumer Interactive, John Danaher, in the United States District Court for the Northern District of Illinois seeking restitution, civil money penalties, and injunctive relief, among other remedies, and alleging that the TU Entities violated the 2017 Consent Order, engaged in deceptive acts and practices in marketing the TransUnion Credit Monitoring product, failed to obtain signed written authorizations from consumers before debiting their bank accounts for the TransUnion Credit Monitoring product and diverted consumers from their free annual file disclosure into paid subscription products. The CFPB further alleges that Mr. Danaher violated the 2017 Consent Order and that we and Trans Union LLC provided substantial assistance to TransUnion Interactive, Inc. in violating the 2017 Consent Order and the law. We continue to believe that our marketing practices are lawful and appropriate and that we have been, and remain, in compliance with the 2017 Consent Order, and we will vigorously defend against allegations to the contrary in such proceedings. We continue to be in active litigation on this matter.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of September 30, 2024 and December 31, 2023, we have accrued $56.0 million in connection with this matter and there is a reasonable possibility that a loss in excess of the amount accrued may be incurred, and such an outcome could have a material </span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">adverse effect on our results of operations and financial condition. However, any possible loss or range of loss in excess of the amount accrued is not reasonably estimable at this time. In addition, we have and will continue to incur increased costs litigating this matter. </span></div><div style="margin-top:6pt;text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In March 2024, we received a NORA letter from the CFPB, informing us that the CFPB’s Enforcement Division is considering whether to recommend that the CFPB take legal action against us related to our dispute handling practices and procedures. The NORA letter alleges that Trans Union LLC violated the Fair Credit Reporting Act’s requirements to conduct a reasonable reinvestigation of disputed information and follow reasonable procedures to assure maximum possible accuracy of the information in consumer reports, and the Consumer Financial Protection Act’s prohibition of unfair, deceptive, and abusive acts or practices. On July 12, 2024, the CFPB Enforcement Division advised us that it had obtained authority to pursue an enforcement action against us seeking specific injunctive relief provisions and civil money penalties. We are currently in discussions with the CFPB regarding this matter, including that our ability to make proposed changes to certain dispute handling processes is dependent on the participation of other consumer reporting agencies, data furnishers and industry participants. We cannot provide assurance that the CFPB will not ultimately commence a lawsuit against us in this matter, nor are we able to predict the likely outcome of this matter, which could have a material adverse effect on our results of operations and financial condition. We are not able to reasonably estimate our potential loss or range of loss related to this matter.</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Argus Department of Justice Matter</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We settled a matter with the civil division of the United States Attorney’s Office for the Eastern District of Virginia. This matter pertained to alleged conduct, related to Argus’s use of certain data it collected under certain government contracts, that commenced before our acquisition of VF, including Argus, in April 2022. Together with Verisk Analytics, Inc. (the “Seller”), we finalized a $37.0 million settlement (the “Settlement”) with the Department of Justice (“DOJ”). Under the stock purchase agreement Trans Union LLC entered into with the Seller pursuant to which we acquired VF, including Argus, the Seller agreed to indemnify us for certain losses with respect to this matter, including all losses directly resulting from any settlement agreement with the DOJ in connection with this matter, including civil money penalties, remediation costs and fees and expenses. During the three months ended March 31, 2024, the Settlement was paid in full to the DOJ and the indemnification receivable was collected.</span></div>
CY2024Q3 us-gaap Litigation Reserve Current
LitigationReserveCurrent
110500000 usd
CY2023Q4 us-gaap Litigation Reserve Current
LitigationReserveCurrent
147800000 usd
CY2023Q3 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
368800000 usd
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
1136800000 usd
CY2023Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
290800000 usd
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
867700000 usd
CY2023Q3 us-gaap Operating Expenses
OperatingExpenses
1205000000 usd
us-gaap Operating Expenses
OperatingExpenses
2809600000 usd

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