TransUnion [TRU] Filings

10-Q 1 tru-20240630.htm 10-Q tru-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

- OR -


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number:

001-37470

TransUnion

(Exact name of registrant as specified in its charter)


Delaware						61-1678417
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

555 West Adams,

Chicago,

Illinois

60661

(Address of principal executive offices)

(Zip Code)

312-985-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

TRU

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒

Yes

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒

Yes

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Table of Contents

☒

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

Yes

☒

As of June 30, 2024, there were 194.3 million shares of TransUnion common stock outstanding.

Table of Contents

TRANSUNION

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED JUNE 30, 2024

TABLE OF CONTENTS


			Page
PART I. FINANCIAL INFORMATION			4
ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS			4
Consolidated Balance Sheets			4
Consolidated Statements of Operations			5
Consolidated Statements of Comprehensive Income			6
Consolidated Statements of Cash Flows			7
Consolidated Statements of Stockholders’ Equity			8
Notes to Unaudited Consolidated Financial Statements			9
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			28
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			53
ITEM 4. CONTROLS AND PROCEDURES			54
PART II. OTHER INFORMATION			55
ITEM 1. LEGAL PROCEEDINGS			55
ITEM 1A. RISK FACTORS			55
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			55
ITEM 5. OTHER INFORMATION			55
ITEM 6. EXHIBITS			56
SIGNATURES			57

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

TRANSUNION AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

(in millions, except per share data)


	June 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	543.2	$	476.2
Trade accounts receivable, net of allowance of $19.1 and $16.4	778.6		723.0
Other current assets	222.1		275.9
Total current assets	1,543.9		1,475.1
Property, plant and equipment, net of accumulated depreciation and amortization of $841.8 and $804.4	183.6		199.3
Goodwill	5,161.8		5,176.0
Other intangibles, net of accumulated amortization of $2,920.5 and $2,719.8	3,391.2		3,515.3
Other assets	744.7		739.4
Total assets	$	11,025.2	$	11,105.1
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable	$	312.6	$	251.3
Short-term debt and current portion of long-term debt	66.5		89.6
Other current liabilities	551.6		661.8
Total current liabilities	930.7		1,002.7
Long-term debt	5,174.6		5,250.8
Deferred taxes	523.0		592.9
Other liabilities	159.7		153.2
Total liabilities	6,788.0		6,999.6
Stockholders’ equity:
Common stock, $0.01 par value; 1.0 billion shares authorized at June 30, 2024 and December 31, 2023, 200.6 million and 200.0 million shares issued at June 30, 2024 and December 31, 2023, respectively, and 194.3 million and 193.8 million shares outstanding as of June 30, 2024 and December 31, 2023, respectively	2.0		2.0
Additional paid-in capital	2,476.9		2,412.9
Treasury stock at cost, 6.4 million and 6.2 million shares at June 30, 2024 and December 31, 2023, respectively	(314.3)		(302.9)
Retained earnings	2,266.0		2,157.1
Accumulated other comprehensive loss	(295.8)		(260.9)
Total TransUnion stockholders’ equity	4,134.8		4,008.2
Noncontrolling interests	102.4		97.3
Total stockholders’ equity	4,237.2		4,105.5
Total liabilities and stockholders’ equity	$	11,025.2	$	11,105.1

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

TRANSUNION AND SUBSIDIARIES

Consolidated Statements of Operations (Unaudited)

(in millions, except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue	$	1,040.8	$	968.0	$	2,062.0	$	1,908.2
Operating expenses
Cost of services (exclusive of depreciation and amortization below)	406.7		387.0		813.0		767.8
Selling, general and administrative	310.8		292.5		616.4		577.1
Depreciation and amortization	132.9		130.1		266.9		259.8
Restructuring	8.1		—		26.3		—
Total operating expenses	858.4		809.6		1,722.4		1,604.7
Operating income	182.4		158.4		339.6		303.6
Non-operating income and (expense)
Interest expense	(67.9)		(72.6)		(136.5)		(144.4)
Interest income	6.7		4.3		12.1		10.1
Earnings from equity method investments	4.6		4.9		9.3		8.0
Other income and (expense), net	(5.1)		(18.3)		(20.8)		(25.0)
Total non-operating income and (expense)	(61.7)		(81.7)		(135.9)		(151.4)
Income from continuing operations before income taxes	120.7		76.6		203.7		152.2
Provision for income taxes	(31.0)		(19.3)		(44.1)		(37.9)
Income from continuing operations	89.7		57.3		159.7		114.3
Discontinued operations, net of tax	—		(0.2)		—		(0.2)
Net income	89.7		57.2		159.7		114.1
Less: net income attributable to the noncontrolling interests	(4.7)		(3.3)		(9.5)		(7.6)
Net income attributable to TransUnion	$	85.0	$	53.9	$	150.1	$	106.5







Basic earnings per common share from:
Income from continuing operations attributable to TransUnion	$	0.44	$	0.28	$	0.77	$	0.55
Discontinued operations, net of tax	—		—		—		—
Net income attributable to TransUnion	$	0.44	$	0.28	$	0.77	$	0.55
Diluted earnings per common share from:
Income from continuing operations attributable to TransUnion	$	0.44	$	0.28	$	0.77	$	0.55
Discontinued operations, net of tax	—		—		—		—
Net income attributable to TransUnion	$	0.44	$	0.28	$	0.77	$	0.55
Weighted-average shares outstanding:
Basic	194.2		193.2		194.2		192.8
Diluted	195.2		194.0		195.3		194.0

As a result of displaying amounts in millions, and for the calculation of earnings per share, rounding differences may exist in the table above. See accompanying notes to unaudited consolidated financial statements.

Table of Contents

TRANSUNION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Unaudited)

(in millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	89.7	$	57.2	$	159.7	$	114.1
Other comprehensive income:
Foreign currency translation:
Foreign currency translation adjustment	(20.9)		47.9		(31.5)		85.9
Provision for income taxes	(0.1)		(0.7)		—		(1.4)
Foreign currency translation, net	(21.0)		47.2		(31.5)		84.5
Hedge instruments:
Net change on interest rate swap	(16.4)		42.8		(5.3)		(4.6)
Benefit (provision) for income taxes	4.1		(10.7)		1.3		1.1
Hedge instruments, net	(12.3)		32.1		(4.0)		(3.5)
Available-for-sale securities:
Net unrealized gain	—		(0.1)		—		(0.1)
Benefit (provision) for income taxes	—		—		—		—
Available-for-sale securities, net	—		(0.1)		—		(0.1)
Total other comprehensive (loss) income, net of tax	(33.3)		79.2		(35.5)		80.9
Comprehensive income	56.4		136.4		124.2		195.0
Less: comprehensive income attributable to noncontrolling interests	(4.3)		(2.9)		(8.9)		(6.6)
Comprehensive income attributable to TransUnion	$	52.1	$	133.5	$	115.3	$	188.4

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

TRANSUNION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Unaudited)

(in millions)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	159.7	$	114.1
Less: Discontinued operations, net of tax	—		(0.2)
Income from continuing operations	159.7		114.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	266.9		259.8
Loss on repayment of loans	2.6		2.1
Deferred taxes	(63.6)		(71.3)
Stock-based compensation	51.8		45.9
Gain on investments	(6.4)		—
Other	25.9		22.8
Changes in assets and liabilities:
Trade accounts receivable	(71.3)		(77.0)
Other current and long-term assets	45.1		(28.8)
Trade accounts payable	53.7		67.3
Other current and long-term liabilities	(115.2)		(42.2)
Cash provided by operating activities of continuing operations	349.2		292.9
Cash used in operating activities of discontinued operations	—		(0.2)
Cash provided by operating activities	349.2		292.7
Cash flows from investing activities:
Capital expenditures	(130.7)		(143.6)
Proceeds from sale/maturities of other investments	—		22.1
Purchases of other investments	—		(32.8)
Investments in nonconsolidated affiliates	(4.4)		(31.9)
Proceeds from the sale of investments in nonconsolidated affiliates	3.8		—
Other	4.8		0.1
Cash used in investing activities	(126.5)		(186.1)
Cash flows from financing activities:
Proceeds from Term Loans	934.9		—
Repayments of Term Loans	(927.9)		—
Repayments of debt	(99.4)		(207.3)
Debt financing fees	(13.5)		—
Proceeds from issuance of common stock and exercise of stock options	12.4		9.8
Dividends to shareholders	(41.4)		(40.9)
Employee taxes paid on restricted stock units recorded as treasury stock	(11.4)		(9.9)
Distributions to noncontrolling interests	(3.8)		(5.9)
Cash used in financing activities	(150.1)		(254.2)
Effect of exchange rate changes on cash and cash equivalents	(5.6)		4.3
Net change in cash and cash equivalents	67.0		(143.3)
Cash and cash equivalents, beginning of period	476.2		585.3
Cash and cash equivalents, end of period	$	543.2	$	442.0

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

TRANSUNION AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity (Unaudited)

(in millions)


	Common Stock			Paid-In Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total
	Shares	Amount
Balance, December 31, 2022	192.7	$	2.0	$	2,290.3	$	(284.5)	$	2,446.6	$	(284.5)	$	99.5	$	4,269.4
Net income	—	—		—		—		52.6		—		4.3		56.9
Other comprehensive income (loss)	—	—		—		—		—		2.3		(0.6)		1.7
Stock-based compensation	—	—		20.7		—		—		—		—		20.7
Employee share purchase plan	0.2	—		10.7		—		—		—		—		10.7
Exercise of stock options	0.1	—		0.5		—		—		—		—		0.5
Vesting of restricted stock units and performance stock units	0.3	—		—		—		—		—		—		—
Treasury stock purchased	(0.1)	—		—		(7.6)		—		—		—		(7.6)
Dividends to shareholders	—	—		—		—		(20.8)		—		—		(20.8)
Balance, March 31, 2023	193.2	$	2.0	$	2,322.3	$	(292.1)	$	2,478.4	$	(282.2)	$	103.2	$	4,331.5
Net income	—	—		—		—		53.9		—		3.3		57.2
Other comprehensive income (loss)	—	—		—		—		—		79.6		(0.4)		79.2
Distributions to noncontrolling interests	—	—		—		—		—		—		(5.9)		(5.9)
Stock-based compensation	—	—		23.0		—		—		—		—		23.0
Exercise of stock options	—	—		0.1		—		—		—		—		0.1
Vesting of restricted stock units and performance stock units	0.1	—		—		—		—		—		—		—
Treasury stock purchased	—	—		—		(2.3)		—		—		—		(2.3)
Dividends to shareholders	—	—		—		—		(20.8)		—		—		(20.8)
Balance, June 30, 2023	193.3	$	2.0	$	2,345.3	$	(294.4)	$	2,511.5	$	(202.6)	$	100.2	$	4,462.0


	Common Stock			Paid-In Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total
	Shares	Amount
Balance, December 31, 2023	193.8	$	2.0	$	2,412.9	$	(302.9)	$	2,157.1	$	(260.9)	$	97.3	$	4,105.5
Net income	—	—		—		—		65.1		—		4.9		70.0
Other comprehensive income (loss)	—	—		—		—		—		(1.9)		(0.3)		(2.2)
Stock-based compensation	—	—		22.9		—		—		—		—		22.9
Employee share purchase plan	0.2	—		14.7		—		—		—		—		14.7
Vesting of restricted stock units and performance stock units	0.4	—		—		—		—		—		—		—
Treasury stock purchased	(0.1)	—		—		(10.6)		—		—		—		(10.6)
Dividends to shareholders	—	—		—		—		(23.1)		—		—		(23.1)
Balance, March 31, 2024	194.3	$	2.0	$	2,450.5	$	(313.5)	$	2,199.1	$	(262.8)	$	101.9	$	4,177.2
Net income	—	—		—		—		85.0		—		4.7		89.7
Other comprehensive income (loss)	—	—		—		—		—		(33.0)		(0.3)		(33.3)
Distributions to noncontrolling interests	—	—		—		—		—		—		(3.8)		(3.8)
Stock-based compensation	—	—		26.4		—		—		—		—		26.4
Treasury stock purchased	—	—		—		(0.8)		—		—		—		(0.8)
Dividends to shareholders	—	—		—		—		(18.1)		—		—		(18.1)
Balance, June 30, 2024	194.3	$	2.0	$	2,476.9	$	(314.3)	$	2,266.0	$	(295.8)	$	102.4	$	4,237.2

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

TRANSUNION AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

(Tabular amounts in millions, except per share amounts)

1. Significant Accounting and Reporting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of TransUnion and subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and, in our opinion, include all adjustments of a normal recurring nature necessary for a fair statement of the interim periods presented. All significant intercompany transactions and balances have been eliminated. As a result of displaying amounts in millions, rounding differences may exist in the financial statements and footnote tables. The interim results presented are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024. The Company’s Consolidated Balance Sheet data for the year ended December 31, 2023 was derived from audited financial statements. Therefore, these unaudited consolidated financial statements should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2024.

During the first quarter of 2024, we reorganized our operations to merge our Consumer Interactive operating segment with our U.S. Markets operating segment. This change aligns with our transformation plan for an integrated U.S. business with increased cross-selling activities and common enabling functions to achieve greater cost efficiencies. In addition, we changed the responsibility for certain international operations previously managed within the U.S. Markets segment to certain regions within the International segment.

As a result, we have two operating segments, U.S. Markets and International, which are consistent with our reportable segments, and reflect the structure of the Company’s internal organization, the method by which the Company’s resources are allocated and the manner in which the chief operating decision maker assesses the Company’s performance.

The reporting of certain revenue from the acquisition of Argus Information and Advisory Services, Inc. and Commerce Signals, Inc. (collectively, “Argus”), which was previously reported within our Financial Services vertical, is now reported in Emerging Verticals in the U.S. Markets operating segment. While this change does not impact our operating segments, it does impact our disaggregated revenue disclosures.

We have recast our historical financial information present in this Quarterly Report on Form 10-Q to reflect these changes and conform to our current operating structure.

Unless the context indicates otherwise, any reference in this report to the “Company,” “we,” “our,” “us,” and “its” refers to TransUnion and its consolidated subsidiaries, collectively.

For the periods presented, TransUnion does not have any material assets, liabilities, revenues, expenses or operations of any kind other than its ownership investment in TransUnion Intermediate Holdings, Inc.

Revision of Previously Issued Financial Statements

During 2023, the Company identified errors in the classification of certain costs between cost of services and selling, general and administrative in the Consolidated Statements of Operations. The errors resulted in an understatement of cost of services and an overstatement of selling, general and administrative in equal and offsetting amounts to previously issued quarterly and year-to-date financial statements in 2023, with no impact to total operating expenses, operating income or net income, and no impact on the Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows or the Consolidated Statements of Stockholder’s Equity for any of those periods. The Company concluded that, while the expense classification errors were not material to any of its financial statements taken as a whole, it should revise the Consolidated Statements of Operations for the periods impacted. Accordingly, the Company has revised the previously issued Consolidated Statements of Operations for the three and six months ended June 30, 2023 to correct for the errors as reflected in this Form 10-Q. The Company will also correct previously reported financial information for this error in its future filings, as applicable. A summary of the corrections to the impacted financial statement line items to the Company’s previously issued Consolidated Statements of Operations for each affected period is presented in Note 19, “Revision of Previously Issued Financial Statements.”

Table of Contents

Principles of Consolidation

The consolidated financial statements of TransUnion include the accounts of TransUnion and all of its controlled subsidiaries. Investments in nonmarketable unconsolidated entities in which the Company is able to exercise significant influence are accounted for using the equity method. Investments in nonmarketable unconsolidated entities in which the Company is not able to exercise significant influence, our “Cost Method Investments,” are accounted for at our initial cost, minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Use of Estimates

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. 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.

Trade Accounts Receivable

We base our allowance for doubtful accounts estimate on our historical loss experience, our current expectations of future losses, current economic conditions, an analysis of the aging of outstanding receivables and customer payment patterns, and specific reserves for customers in adverse financial condition or for existing contractual disputes.

The following is a roll-forward of the allowance for doubtful accounts for the periods presented:


	Six Months Ended June 30,
	2024		2023
Beginning balance	$	16.4	$	11.0
Provision for losses on trade accounts receivable	9.3		3.0
Write-offs, net of recovered accounts	(6.6)		(2.0)
Ending balance	$	19.1	$	12.0

Recently Adopted Accounting Pronouncements

There are no recent accounting pronouncements that have been adopted by TransUnion in the second quarter of 2024.

Recent Accounting Pronouncements Not Yet Adopted

On November 27, 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. This ASU updates the requirements for segment reporting to include, among other things, disaggregating and quantifying significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included in the measure of segment profit, describing the nature of amounts not separately disaggregated, allowing for additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources, and extending nearly all annual segment reporting requirements to quarterly reporting requirements. The update is effective for annual periods for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application. While we are assessing the impact this guidance will have on our disclosures, we do not expect to early adopt this guidance.

On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. This ASU requires income tax disclosures to include consistent categories and greater disaggregation of information in the rate reconciliations and the disaggregation of income taxes paid by federal, state and foreign, and also for individual jurisdictions that are greater than 5% of total income taxes paid. The update is effective for annual periods for fiscal years beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. We are currently assessing the impact of adopting the updated provisions.

Table of Contents

2. Other Current Assets

Other current assets consisted of the following:


	June 30, 2024		December 31, 2023
Prepaid expenses	$	150.1	$	145.4
Marketable securities (Note 15)	2.6		2.7
Other (Note 17)	69.4		127.8
Total other current assets	$	222.1	$	275.9

The decrease in other is primarily due to cash received for indemnification and insurance receivables for certain legal matters.

3. Goodwill

Goodwill is allocated to our reporting units, which are an operating segment or one level below an operating segment. We test goodwill for impairment on an annual basis in the fourth quarter and monitor throughout the year for impairment triggering events that indicate that the carrying value of one or more of our reporting units exceeds its fair value.

As discussed above in Note 1, “Significant Accounting and Reporting Policies,” we reorganized certain operations of our business during the first quarter of 2024, which resulted in changes to the expected cash flows for certain reporting units. As a result, we reallocated all of the goodwill from the Consumer Interactive segment to the U.S. Markets segment and also reallocated a portion of the goodwill from the U.S. Markets segment to certain reporting units in the International segment, including the United Kingdom reporting unit, using the relative fair value allocation approach as reflected in the tables below. We assessed the recoverability of the goodwill of the impacted reporting units before and after the reallocation and concluded there was no impairment to goodwill for any of the reporting units impacted by the reorganization. As of March 31, 2024, the fair value of our United Kingdom reporting unit was marginally greater than its carrying value as a result of the impairment recorded in the three months ended September 30, 2023, and the re-allocation of goodwill from the segment reorganization discussed above.

We believe the assumptions that we used in our impairment assessment for our United Kingdom reporting unit in the first quarter of 2024 are reasonable and consistent with assumptions that would be used by other marketplace participants. However, such assumptions are inherently uncertain, and a change in assumptions could change the estimated fair value of our United Kingdom reporting unit. Therefore, future impairments of our United Kingdom reporting unit could be required, which could be material to the consolidated financial statements.

Aside from the segment reorganization in the first quarter of 2024 discussed above, there have been no triggering events during the six months ended June 30, 2024 that have required us to re-evaluate whether any of our reporting units were impaired.

Goodwill allocated to our reportable segments and changes in the carrying amount of goodwill during the six months ended June 30, 2024, consisted of the following:


	U.S. Markets		International		Consumer Interactive		Total
Balance, December 31, 2023	$	3,602.8	$	894.1	$	679.1	$	5,176.0
Reallocation of goodwill from segment reorganization	655.6		23.5		(679.1)		—
Foreign exchange rate adjustment	(0.3)		(13.9)		—		(14.2)
Balance, June 30, 2024	$	4,258.1	$	903.7	$	—	$	5,161.8

The gross and net goodwill balances at each period were as follows:


	June 30, 2024						December 31, 2023
	Gross Goodwill		Accumulated Impairment		Net Goodwill		Gross Goodwill		Accumulated Impairment		Net Goodwill
U.S Markets	$	4,258.1	$	—	$	4,258.1	$	3,602.8	$	—	$	3,602.8
International	1,317.7		(414.0)		903.7		1,308.1		(414.0)		894.1
Consumer Interactive	—		—		—		679.1		—		679.1
Total	$	5,575.8	$	(414.0)	$	5,161.8	$	5,590.0	$	(414.0)	$	5,176.0

Table of Contents

4. Intangible Assets

Intangible assets are initially recorded at their acquisition cost, at relative fair value if acquired as part of an asset acquisition, or at fair value if acquired as part of a business combination, and amortized over their estimated useful lives. Intangible assets consisted of the following:


	June 30, 2024						December 31, 2023
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Customer relationships	$	2,059.1	$	(506.9)	$	1,552.2	$	2,060.2	$	(451.6)	$	1,608.6
Internal use software	2,288.7		(1,336.1)		952.6		2,204.5		(1,239.7)		964.8
Database and credit files	1,364.7		(870.9)		493.8		1,372.2		(829.2)		543.0
Trademarks, copyrights and patents	587.6		(196.2)		391.4		587.7		(188.8)		398.9
Noncompete and other agreements	11.7		(10.5)		1.2		10.5		(10.5)		—
Total intangible assets	$	6,311.7	$	(2,920.5)	$	3,391.2	$	6,235.1	$	(2,719.8)	$	3,515.3

Changes in the carrying amount of intangible assets between periods consisted of the following:


	Gross		Accumulated Amortization		Net
Balance, December 31, 2023	$	6,235.1	$	(2,719.8)	$	3,515.3
Developed internal use software	100.8		—		100.8
Acquired intangible assets	5.5		—		5.5
Amortization	—		(222.0)		(222.0)
Disposals and retirements	(11.0)		10.8		(0.1)
Foreign exchange rate adjustment	(18.8)		10.5		(8.2)
Balance, June 30, 2024	$	6,311.7	$	(2,920.5)	$	3,391.2

All amortizable intangible assets are amortized on a straight-line basis, which approximates the pattern of benefit, over their estimated useful lives.

5. Other Assets

Other assets consisted of the following:


	June 30, 2024		December 31, 2023
Investments in affiliated companies (Note 6)	$	287.0	$	291.4
Right-of-use lease assets	97.1		98.9
Interest rate swaps (Notes 10 and 15)	157.0		162.3
Note receivable (Note 15)	84.8		82.0
Other	118.8		104.8
Total other assets	$	744.7	$	739.4

6. Investments in Affiliated Companies

Investments in affiliated companies represent our investment in non-consolidated domestic and foreign entities. These entities are in businesses similar to ours.

For equity method investments, we adjust the carrying value for our proportionate share of the affiliates’ earnings, losses and distributions, as well as for purchases and sales of our ownership interest.

For our Cost Method Investments, we adjust the carrying value for any purchases or sales of our ownership interests, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We record any dividends received from these investments as other income in non-operating income and expense.

Table of Contents

We have elected to account for our investment in a limited partnership using the net asset value fair value practical expedient. Gains and losses on this investment are included in other income and expense in the Consolidated Statements of Operations.

Investments in affiliated companies consisted of the following:


	June 30, 2024		December 31, 2023
Cost Method Investments	$	238.5	$	233.8
Equity method investments	44.7		53.9
Limited partnership investment	3.8		3.7
Total investments in affiliated companies (Note 5)	$	287.0	$	291.4

These balances are included in other assets in the Consolidated Balance Sheets. The increase in Cost Method Investments includes a $6.4 million gain on a Cost Method Investment in our International segment resulting from an observable price change for a similar investment of the same issuer.

Earnings from equity method investments, which are included in other non-operating income and expense, and dividends received from equity method investments consisted of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Earnings from equity method investments (Note 16)	$	4.6	$	4.9	$	9.3	$	8.0
Dividends received from equity method investments	15.6		17.2		15.6		17.2

7. Other Current Liabilities

Other current liabilities consisted of the following:


	June 30, 2024		December 31, 2023
Accrued payroll and employee benefits	$	162.4	$	216.2
Accrued legal and regulatory matters (Note 17)	110.3		147.8
Deferred revenue (Note 12)	129.3		125.1
Accrued restructuring (Note 8)	35.1		64.9
Operating lease liabilities	23.4		26.2
Income taxes payable	13.5		10.2
Other	77.5		71.5
Total other current liabilities	$	551.6	$	661.8

The decrease in accrued payroll and employee benefits is primarily due to bonus, commissions and salaries paid during the first quarter of 2024 that were earned in 2023. The decrease in accrued legal and regulatory was primarily due to payments made for certain legal and regulatory expenses.

8. Restructuring

On November 12, 2023, our Board of Directors (“Board”) approved a transformation plan to optimize our operating model and continue to advance our technology. The transformation plan includes an operating model optimization program that will eliminate certain roles, transition certain job responsibilities to global capability centers, and reduce our facility footprint. The Company expects to record pre-tax expenses associated with the operating model optimization program of approximately $155.0 million from the fourth quarter of 2023 through the end of 2025, consisting of approximately $110.0 million of employee separation expenses and $45.0 million of facility exit expenses, with a majority of the expenses to be incurred by the end of 2024. To date, we have incurred a total of $101.6 million, including $26.3 million recorded in the first six months of 2024.

Table of Contents

The following table summarizes the expenses recorded in the three and six months ended June 30, 2024.


	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Employee separation	$	7.9	$	24.6
Facility exit1	0.2		1.7

Total restructuring expenses	$	8.1	$	26.3

1 Consists of an impairment of leasehold improvements related to a facility exit.

The following table summarizes the changes in the accrued restructuring reserve during the six months ended June 30, 2024, which are included in other current liabilities on the Consolidated Balance Sheets.


	Employee Separation Costs
Balance, December 31, 2023	$	64.9
Restructuring expense	24.6
Cash payments	(54.3)
Foreign exchange rate adjustment	(0.1)
Balance, June 30, 2024 (Note 7)	$	35.1

All restructuring expenses have been recorded in the Corporate unit, as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance.

9. Other Liabilities

Other liabilities consisted of the following:


	June 30, 2024		December 31, 2023
Operating lease liabilities	$	85.0	$	81.8
Unrecognized tax benefits, net of indirect tax effects (Note 14)	41.4		40.2
Deferred revenue (Note 12)	16.4		15.1
Other	17.0		16.1
Total other liabilities	$	159.7	$	153.2

Table of Contents

10. Debt

Debt outstanding consisted of the following:


	June 30, 2024		December 31, 2023
Senior Secured Term Loan B-5, due in full at maturity (November 15, 2026), with periodic variable interest at Term SOFR plus a credit spread adjustment, or alternate base rate, plus applicable margin (7.19% at June 30, 2024 and 7.21% at December 31, 2023), net of original issue discount and deferred financing fees of $0.4 million and $1.1 million, respectively, at June 30, 2024, and of $1.9 million and $4.6 million, respectively, at December 31, 2023	$	598.0	$	2,179.4
Senior Secured Term Loan A-4, payable in quarterly installments through June 24, 2029, with periodic variable interest at Term SOFR plus a credit spread adjustment (until the refinancing on June 24, 2024), or alternate base rate, plus applicable margin (6.84% at June 30, 2024 and 6.96% at December 31, 2023), net of original issue discount and deferred financing fees of $0.4 million and $3.7 million, respectively, at June 30, 2024, and of $0.4 million and $3.4 million, respectively, at December 31, 2023	1,287.8		1,296.1
Senior Secured Term Loan B-8, payable in quarterly installments through June 24, 2031, with periodic variable interest at Term SOFR, or alternate base rate, plus applicable margin (7.09% at June 30, 2024), net of original issue discount and deferred financing fees of $4.4 million and $5.5 million, respectively, at June 30, 2024)	1,490.1		—
Senior Secured Term Loan B-7, payable in quarterly installments through December 1, 2028, with periodic variable interest at Term SOFR, or alternate base rate, plus applicable margin (7.34% at June 30, 2024), net of original issue discount and deferred financing fees of $7.5 million and $17.6 million, respectively, at June 30, 2024	1,865.1		—
Senior Secured Term Loan B-6, refinanced in the three months ended March 31, 2024 with B-7 loans, with periodic variable interest at Term SOFR plus a credit spread adjustment, or alternate base rate, plus applicable margin (7.72% at December 31, 2023) and original issue discount and deferred financing fees of $3.5 million and $20.0 million, respectively, at December 31, 2023	—		1,864.8
Finance leases	—		0.1
Senior Secured Revolving Credit Facility	—		—
Total debt	5,241.0		5,340.4
Less short-term debt and current portion of long-term debt	(66.5)		(89.6)
Total long-term debt	$	5,174.6	$	5,250.8

Senior Secured Credit Facility

On June 15, 2010, we entered into a Senior Secured Credit Facility with various lenders. This facility has been amended several times and currently consists of the Senior Secured Term Loan B-8, Senior Secured Term Loan B-7, Senior Secured Term Loan B-5, Senior Secured Term Loan A-4 (collectively, the “Senior Secured Term Loans”), and the Senior Secured Revolving Credit Facility.

On October 27, 2023, we executed Amendment No. 21 to the Senior Secured Credit Facility, pursuant to which we entered into Senior Secured Term Loan A-4 with an aggregate principal amount of $1.3 billion, the proceeds of which were used to repay Senior Secured Term Loan A-3 in full, repay $300.0 million of Senior Secured Term Loan B-6, and pay the related financing fees and expenses. In addition, we increased the borrowing capacity on the Senior Secured Revolving Credit Facility from $300.0 million to $600.0 million and extended the maturity date from December 10, 2024 to October 27, 2028.

On February 8, 2024, we executed Amendment No. 22 to the Senior Secured Credit Facility, pursuant to which we entered into Senior Secured Term Loan B-7 with an aggregate principal amount of $1.9 billion, the proceeds of which were used to repay Senior Secured Term Loan B-6 in full and pay the related financing fees and expenses. In connection with the refinancing, we incurred incremental deferred financing fees of $4.7 million that will be amortized over the new loan term. Senior Secured Term Loan B-7 is a syndicated debt instrument. As a result of the refinancing, we repaid $257.1 million of principal to exiting lenders and to lenders where the refinancing resulted in a reduction in principal and received $264.1 million of proceeds from new lenders and additional principal from existing lenders.

On June 24, 2024, we executed Amendment No. 23 to the Senior Secured Credit Facility, pursuant to which we entered into Senior Secured Term Loan B-8 with an aggregate principal amount of $1.5 billion, the proceeds of which were used to repay a portion of Senior Secured Term Loan B-5. The maturity date of the Senior Secured Credit Facility and Senior Secured Term Loan A-4 were also extended from October 27, 2028 to June 24, 2029, subject to a springing maturity of 91 days prior to the

Table of Contents

maturity date of certain long-term indebtedness, if, on such date, the principal amount of such indebtedness exceeds $250 million, and the credit spread adjustment was removed from the periodic interest rate for both instruments. In connection with the refinancing, we incurred incremental deferred financing fees of $8.7 million that will be amortized over the new loan terms. Senior Secured Term Loan B-8 is a syndicated debt instrument. As a result of the refinancing, we repaid $670.8 million of principal to exiting lenders and to lenders where the refinancing resulted in a reduction in principal and received $670.8 million of proceeds from new lenders and additional principal from existing lenders.

In connection with these refinancings, during the three and six months ended June 30, 2024, we expensed $5.8 million and $8.9 million, respectively, of the unamortized original issue discount, deferred financing fees, and other related fees to other income and expense in the Consolidated Statements of Operations.

During the three months ended June 30, 2024, we prepaid $80.0 million of our Senior Secured Term Loan B-5, funded from cash-on-hand, and expensed $0.2 million of the unamortized original issue discount and deferred financing fees, to other income and expense in the Consolidated Statements of Operations.

During the three and six months ended June 30, 2023, we prepaid $75.0 million and $150.0 million, respectively, of our Senior Secured Term Loan B-6, funded from cash-on-hand. As a result, we expensed $1.0 million and $2.1 million, respectively, of the unamortized original issue discount and deferred financing fees to other income and expense in our Consolidated Statements of Operations.

As of June 30, 2024, we had no outstanding balance under the Senior Secured Revolving Credit Facility and $1.2 million of outstanding letters of credit, and could have borrowed up to the remaining $598.8 million available.

TransUnion also has the ability to request incremental loans on the same terms under the Senior Secured Credit Facility up to the sum of the greater of $1,000.0 million and 100% of Consolidated EBITDA, minus the amount of secured indebtedness and the amount incurred prior to the incremental loan, and may incur additional incremental loans so long as the senior secured net leverage ratio does not exceed 4.25-to-1, subject to certain additional conditions and commitments by existing or new lenders to fund any additional borrowings.

With certain exceptions, the Senior Secured Credit Facility obligations are secured by a first-priority security interest in substantially all of the assets of Trans Union LLC, including its investment in subsidiaries. The Senior Secured Credit Facility contains various restrictions and nonfinancial covenants, along with a senior secured net leverage ratio test. The nonfinancial covenants include restrictions on dividends, investments, dispositions, future borrowings and other specified payments, as well as additional reporting and disclosure requirements. The senior secured net leverage test must be met as a condition to incur additional indebtedness, make certain investments, and may be required to make certain restricted payments. The senior secured net leverage ratio must not exceed 5.5-to-1 at any such measurement date. Under the terms of the Senior Secured Credit Facility, TransUnion may make dividend payments up to the greater of $100 million or 10.0% of Consolidated EBITDA per year, or an unlimited amount provided that no default or event of default exists and so long as the total net leverage ratio does not exceed 4.75-to-1. As of June 30, 2024, we were in compliance with all debt covenants.

Interest Rate Hedging

On November 16, 2022, we entered into interest rate swap agreements with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loan or similar replacement debt. The swaps commenced on December 30, 2022, and expire on December 31, 2024, with a current aggregate notional amount of $1,290.0 million that amortizes each quarter. The swaps require us to pay fixed rates varying between 4.3380% and 4.3870% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.

On December 23, 2021, we entered into interest rate swap agreements with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loan or similar replacement debt. The swaps commenced on December 31, 2021, and expire on December 31, 2026, with a current aggregate notional amount of $1,560.0 million that amortizes each quarter. The swaps require us to pay fixed rates varying between 1.3800% and 1.3915% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.

On March 10, 2020, we entered into two interest rate swap agreements with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loans or similar replacement debt. The first swap commenced on June 30, 2020, and expired on June 30, 2022. The second swap commenced on June 30, 2022, and expires on June 30, 2025, with a current aggregate notional amount of $1,070.0 million that amortizes each quarter after it commences. The second swap requires us to pay fixed rates varying between 0.8680% and 0.8800% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.

Table of Contents

The net change in the fair value of our hedging instruments included in our assessment of hedge effectiveness is recorded in other comprehensive income, and is reclassified to interest expense when the corresponding hedged interest affects earnings. The table below summarizes the changes in our hedging instruments and the impact on other comprehensive income.


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net gain / (loss) on fair value of swaps recorded to other comprehensive income, gross	$	(16.4)	$	42.8	$	(5.3)	$	(4.6)
Net gain / (loss) on fair value of swaps recorded to other comprehensive income, net of tax	(12.3)		32.1		(4.0)		(3.5)
Gain on swaps reclassified to interest expense, gross	30.8		27.8		61.9		50.4
Gain on swaps reclassified to interest expense, net of tax recorded to income tax expense	23.1		20.8		46.4		37.8

We expect to recognize a gain of approximately $114.6 million as a reduction to interest expense due to our expectation that the variable rate that we receive will exceed the fixed rates of interest over the next twelve months.

Fair Value of Debt

The fair values of our variable-rate term loans are determined using Level 2 inputs, based on quoted market prices for the publicly traded instruments. All fair value amounts in the table below, as of the indicated dates, exclude original issue discounts and deferred fees.


	June 30, 2024		December 31, 2023
Fair value of Senior Secured Term Loan B-5	$	599.5	$	2,191.5
Fair value of Senior Secured Term Loan A-4	1,283.8		1,291.9
Fair value of Senior Secured Term Loan B-8	1,499.1		—
Fair value of Senior Secured Term Loan B-7	1,892.6		—
Fair value of Senior Secured Term Loan B-6	—		1,895.1
Fair value of Senior Secured Term Loans	$	5,275.0	$	5,378.5

Table of Contents

11. Stockholders’ Equity

Common Stock Dividends

In the first and second quarter of 2024, we paid dividends of $0.105 per share totaling $20.8 million and $20.4 million, respectively. In the first and second quarters of 2023, we paid dividends of $0.105 per share totaling $20.8 million in each quarter. Dividends declared accrue to outstanding restricted stock units and are paid to employees as dividend equivalents when the restricted stock units vest.

Any determination to pay dividends in the future will be at the discretion of our Board and will depend on a number of factors, including our liquidity, results of operations, financial condition, contractual restrictions, restrictions imposed by applicable law and other factors our Board deems appropriate. We currently have capacity and intend to continue to pay a quarterly dividend, subject to approval by our Board.

Treasury Stock

On February 13, 2017, our Board authorized the repurchase of up to $300.0 million of our common stock over the next 3 years. Our Board removed the three-year time limitation on February 8, 2018. To date, we have repurchased $133.5 million of our common stock and have the ability to repurchase the remaining $166.5 million.

We have no obligation to repurchase additional shares. Any determination to repurchase additional shares will be at the discretion of management and will depend on a number of factors, including our liquidity, results of operations, financial condition, contractual restrictions, restrictions imposed by applicable law, market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, and other factors management deems appropriate. Any repurchased shares will have the status of treasury shares and may be used, if and when needed, for general corporate purposes.

For each of the three months ended June 30, 2024 and 2023, less than 0.1 million outstanding employee restricted stock units vested and became taxable to the employees. For each of the six months ended June 30, 2024 and 2023, 0.4 million outstanding employee restricted stock units vested and became taxable to the employees. Employees satisfy their payroll tax withholding obligations in a net share settlement arrangement with the Company that is recorded as treasury stock.

Preferred Stock

As of June 30, 2024 and December 31, 2023, we had 100.0 million shares of preferred stock authorized, and no preferred stock issued or outstanding.

12. Revenue

We have contracts with two general groups of performance obligations: Stand Ready Performance Obligations and Other Performance Obligations. Our Stand Ready Performance Obligations include obligations to stand ready to provide data, process transactions, access our databases, software-as-a-service and direct-to-consumer products, provide rights to use our intellectual property and other services. Our Other Performance Obligations include the sale of certain batch data sets and various professional and other services.

Most of our Stand Ready Performance Obligations consist of a series of distinct goods and services that are substantially the same and have the same monthly pattern of transfer to our customers. We consider each month of service in this time series to be a distinct performance obligation and, accordingly, recognize revenue over time. For a majority of these Stand Ready Performance Obligations, the total contractual price is variable because our obligation is to process an unknown quantity of transactions, as and when requested by our customers, over the contract period. We allocate the variable price to each month of service using the time-series concept and recognize revenue based on the most likely amount of consideration to which we will be entitled, which is generally the amount we have the right to invoice. This monthly amount can be based on the actual volume of units delivered or a guaranteed minimum, if higher. Occasionally we have contracts where the amount we will be entitled to for the transactions processed is uncertain, in which case we estimate the revenue based on what we consider to be the most likely amount of consideration we will be entitled to and adjust any estimates as facts and circumstances evolve.

For all contracts that include a Stand Ready Performance Obligation with variable pricing, we are unable to estimate the variable price attributable to future performance obligations because the number of units to be purchased is not known. As a result, we use the exception available to forgo disclosures about revenue attributable to the future performance obligations where we recognize revenue using the time-series concept as discussed above, including those qualifying for the right to invoice practical expedient. We also use the exception available to forgo disclosures about revenue attributable to contracts with expected durations of one year or less.

Certain of our Other Performance Obligations, including certain batch data sets and certain professional and other services, are delivered at a point in time. Accordingly, we recognize revenue upon delivery once we have satisfied that obligation. For

Table of Contents

certain Other Performance Obligations, including certain professional and other services, we recognize revenue over time, based on an estimate of progress towards completion of that obligation. These contracts are not material.

In certain circumstances we apply the revenue recognition guidance to a portfolio of contracts with similar characteristics. We use estimates and assumptions when accounting for a portfolio that reflect the size and composition of the portfolio of contracts.

Our contracts include standard commercial payment terms generally acceptable in each region, and do not include financing with extended payment terms. We have no significant obligations for refunds, warranties, or similar obligations. Our revenue does not include taxes collected from our customers.

Accounts receivable are shown separately on our balance sheet. Contract assets and liabilities result due to the timing of revenue recognition, billings and cash collections. Contract assets include our right to payment for goods and services already transferred to a customer when the right to payment is conditional on something other than the passage of time, for example, contracts pursuant to which we recognize revenue over time but do not have a contractual right to payment until we complete the contract. Contract assets are included in our other current assets and are not material as of June 30, 2024 and December 31, 2023.

As most of our contracts with customers have a duration of one year or less, our contract liabilities consist of deferred revenue that is primarily short-term in nature. Contract liabilities include current and long-term deferred revenue that is included in other current liabilities and other liabilities. We expect to recognize the December 31, 2023 current deferred revenue balance as revenue during 2024. The majority of our long-term deferred revenue, which is not material, is expected to be recognized in less than two years.

We have certain contracts that have a duration of more than one year. For these contracts, the transaction price allocable to the future performance obligations is primarily fixed but contains a variable component. As of June 30, 2024, the aggregate amount of transaction price attributable to future performance obligations for long-term, non-cancelable contracts, excluding variable components, totals approximately $660 million. We expect to recognize approximately 55% of this amount in the twelve months ending June 30, 2025, 30% in the twelve months ending June 30, 2026 and 15% thereafter.

For additional disclosures about the disaggregation of our revenue see Note 16, “Reportable Segments.”

13. Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the reported period. Diluted earnings per share reflects the effect of the increase in shares outstanding determined by using the treasury stock method for awards issued under our incentive stock plans.

As of June 30, 2024 and 2023, there were 0.6 million and 0.3 million anti-dilutive weighted stock-based awards outstanding, respectively. As of June 30, 2024 and 2023, there were approximately 0.2 million and 0.5 million, respectively, contingently-issuable performance-based stock awards outstanding that were excluded from the diluted earnings per share calculation, because the contingencies had not been met.

Income from continuing operations attributable to TransUnion and basic and diluted weighted average shares outstanding were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Income from continuing operations	$	89.7	$	57.3	$	159.7	$	114.3
Less: income from continuing operations attributable to noncontrolling interests	(4.7)		(3.3)		(9.5)		(7.6)
Income from continuing operations attributable to TransUnion	$	85.0	$	54.1	$	150.1	$	106.8













Weighted-average shares outstanding:
Basic	194.2		193.2		194.2		192.8
Dilutive impact of stock based awards	1.0		0.8		1.2		1.2
Diluted	195.2		194.0		195.3		194.0

Table of Contents

14. Income Taxes

For the three months ended June 30, 2024, we reported an effective tax rate of 25.7%, which was higher than the 21.0% U.S. federal corporate statutory rate primarily due to foreign withholding taxes, nondeductible expenses primarily in connection with executive compensation limitations and uncertain tax positions, partially offset by benefits from the foreign rate differential and the research and development credit.

For the six months ended June 30, 2024, we reported an effective tax rate of 21.6%, which was higher than the 21.0% U.S. federal corporate statutory rate primarily due to foreign withholding taxes, nondeductible expenses primarily in connection with executive compensation limitations and uncertain tax positions, partially offset by benefits from the foreign rate differential, the remeasurement of deferred taxes due to changes in state apportionment rates, and the research and development credit.

For the three months ended June 30, 2023, we reported an effective tax rate of 25.2%, which was higher than the 21.0% U.S. federal corporate statutory rate primarily due to the impact of increases for foreign withholding taxes, uncertain tax positions, and nondeductible expenses primarily in connection with executive compensation limitations, partially offset by benefits from the foreign rate differential and the research and development credit.

For the six months ended June 30, 2023, we reported an effective tax rate of 24.9%, which was higher than the 21.0% U.S. federal corporate statutory rate primarily due to the impact of increases for foreign withholding taxes, uncertain tax positions, and nondeductible expenses primarily in connection with executive compensation limitations, partially offset by benefits from the foreign rate differential and the research and development credit.

The gross amount of unrecognized tax benefits, which excludes indirect tax effects, was $46.4 million as of June 30, 2024, and $45.0 million as of December 31, 2023. The amounts that would affect the effective tax rate if recognized were $35.7 million as of June 30, 2024 and $34.5 million as of December 31, 2023. We classify interest and penalties as income tax expense in the Consolidated Statements of Operations and their associated liabilities as other liabilities in the Consolidated Balance Sheets. Interest and penalties on unrecognized tax benefits were $16.5 million as of June 30, 2024 and $14.0 million as of December 31, 2023. We are regularly audited by federal, state and foreign taxing authorities. Given the uncertainties inherent in the audit process, it is reasonably possible that certain audits could result in a significant increase or decrease in the total amounts of unrecognized tax benefits. An estimate of the range of the increase or decrease in unrecognized tax benefits due to audit results cannot be made at this time. Tax years 2009 and forward remain open for examination in some foreign jurisdictions, 2012 and forward for U.S. federal income tax purposes and 2015 and forward in some state jurisdictions.

15. Fair Value

The following table summarizes financial instruments measured at fair value, on a recurring basis, as of June 30, 2024:


	Total		Level 1		Level 2		Level 3
Assets
Interest rate swaps (Notes 5 and 10)	$	157.0	$	—	$	157.0	$	—
Note receivable (Note 5)	84.8		—		84.8		—
Available-for-sale marketable securities (Note 2)	2.6		—		2.6		—
Total	$	244.4	$	—	$	244.4	$	—

The following table summarizes financial instruments measured at fair value, on a recurring basis, as of December 31, 2023:


	Total		Level 1		Level 2		Level 3
Assets
Interest rate swaps (Notes 5 and 10)	$	162.3	$	—	$	162.3	$	—
Note receivable (Note 5)	82.0		—		82.0		—
Available-for-sale marketable securities (Note 2)	2.7		—		2.7		—
Total	$	247.0	$	—	$	247.0	$	—

Level 2 instruments consist of foreign exchange-traded corporate bonds, interest rate swaps and notes receivable. Foreign exchange-traded corporate bonds are available-for-sale debt securities valued at their current quoted prices. These securities mature between 2027 and 2033. Unrealized gains and losses on available-for-sale debt securities, which are not material, are included in other comprehensive income. The interest rate swaps fair values are determined using the market standard methodology of discounting the future expected net cash receipts or payments that would occur if variable interest rates rise above or fall below the fixed rates of the swaps. The variable interest rates used in the calculations of projected receipts on the

Table of Contents

swaps are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. As discussed in Note 10, “Debt,” there are three tranches of interest rate swaps. In December 2022, we sold the non-core businesses acquired in our acquisition of Verisk Financial Services (“VF”). A portion of the consideration was in the form of a $72.0 million note receivable. The note receivable accrues interest semiannually at a per annum rate of 10.6%; both the principal and accrued interest are payable at maturity. The note matures on June 30, 2025, subject to an option of the note issuer to extend the maturity date for two successive terms of three months each, at an increased rate of interest at each extension, and is classified as long-term until there is certainty regarding the timing of repayment. The note was initially recorded at fair value of $70.3 million using an income approach for fixed income securities, where contractual cash flows were discounted to present value at a risk-adjusted rate of return in a lattice model framework. The fair value of the note is determined each period by applying the same approach, considering changes to the risk-adjusted rate of return given observed changes to the interest rate environment, market pricing of credit risk, and issuer-specific credit risk.

Table of Contents

16. Reportable Segments

As discussed in Note 1, “Significant Accounting and Reporting Policies,” during the first quarter of 2024, we reorganized our operations into two operating segments, U.S. Markets and International, and the Corporate unit, which provides support services to each of the segments. The Company’s operating segments, which are consistent with its reportable segments, reflect the structure of the Company’s internal organization, the method by which the Company’s resources are allocated and the manner by which the CODM assesses the Company’s performance. Our CODM uses the profit measure of Adjusted EBITDA, on both a consolidated and a segment basis, to allocate resources and assess performance of our segments. We use Adjusted EBITDA as our profit measure because it eliminates the impact of certain items that we do not consider indicative of operating performance, which is useful to compare operating results between periods. Our Board and executive management team also use Adjusted EBITDA as a compensation measure for both segment and corporate management under our incentive compensation plans. Adjusted EBITDA is also a measure frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours.

The segment financial information below has been recast to conform to our current operating structure as discussed in Note 1, “Significant Accounting and Reporting Policies” and Note 3, “Goodwill.” The accounting policies of the segments are the same as described in Note 1, “Significant Accounting and Reporting Policies” and Note 12, “Revenue.”

The following is a more detailed description of our reportable segments and the Corporate unit:

U.S. Markets

The U.S. Markets segment provides consumer reports, actionable insights and analytics to businesses and consumers. Businesses use our services to acquire customers, assess consumers’ ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities, mitigate fraud risk and respond to data breach events. Consumers use our services to manage their personal finances and take precautions against identity theft. We report disaggregated revenue of our U.S. Markets segment for Financial Services, Emerging Verticals and Consumer Interactive.

•Financial Services: The Financial Services vertical consists of our Consumer Lending, Mortgage, Auto and Card and Banking lines of business. Our Financial Services clients consist of most banks, credit unions, finance companies, auto lenders, mortgage lenders, FinTechs, and other consumer lenders in the United States. We also distribute our solutions through most major resellers, secondary market players and sales agents. Beyond traditional lenders, we work with a variety of credit arrangers, such as auto dealers and peer-to-peer lenders. We provide solutions across every aspect of the lending lifecycle; customer acquisition and engagement, fraud and ID management, retention and recovery. Our products are focused on mitigating risk and include credit reporting, credit marketing, analytics and consulting, identity verification and authentication and debt recovery solutions.

•Emerging Verticals: Emerging Verticals include Insurance, Tech, Retail and E-Commerce, Telecommunications, Media, Tenant & Employment Screening, Collections, and Public Sector. Our solutions in these verticals are also data-driven and address the entire customer lifecycle. We offer onboarding and transaction processing products, scoring and analytic products, marketing solutions, fraud and identity management solutions and customer retention solutions.

•Consumer Interactive: Consumer Interactive provides solutions that help consumers manage their personal finances and take precautions against identity theft. Services include paid and free credit reports, scores and freezes, credit monitoring, identity protection and resolution, and financial management for consumers. This vertical also provides solutions that help businesses respond to data breach events. Our products are provided through user-friendly online and mobile interfaces and are supported by educational content and customer support. Our Consumer Interactive vertical serves consumers through both direct and indirect channels.

International

The International segment provides services similar to our U.S. Markets segment to businesses in select regions outside the United States. Depending on the maturity of the credit economy in each country, services may include credit reports, analytics and solutions services, and other value-added risk management services. In addition, we have insurance, business and automotive databases in select geographies. 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 by our Consumer Interactive vertical in our U.S. Markets segment that help consumers proactively manage their personal finances and take precautions against identity theft.

We report disaggregated revenue of our International segment for the following regions: Canada, Latin America, the United Kingdom, Africa, India, and Asia Pacific.

Table of Contents

Corporate

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

Selected segment financial information and disaggregated revenue consisted of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Gross Revenue:
U.S. Markets:
Financial Services	$	358.7	$	323.6	710.4		635.9
Emerging Verticals	308.5		295.6		606.0		580.7
Consumer Interactive	142.1		144.0		281.5		286.3
Total U.S. Markets	$	809.3	$	763.1	$	1,597.8	$	1,502.9

International:
Canada	$	38.8	$	35.3	76.5		67.0
Latin America	34.5		30.2		67.4		59.0
United Kingdom	56.6		54.0		110.8		106.2
Africa	15.8		14.5		30.9		29.1
India	63.5		51.0		134.6		105.6
Asia Pacific	26.2		23.2		51.5		44.8
Total International	$	235.4	$	208.1	$	471.7	$	411.8

Total revenue, gross	$	1,044.7	$	971.3	$	2,069.6	$	1,914.7

Intersegment revenue eliminations:
U.S. Markets	$	(2.4)	$	(1.9)

TransUnion [TRU] Filings
10-Q	[2024-07-25]
10-Q	[2024-04-25]
10-K	[2024-02-28]
10-Q	[2023-10-24]
10-Q	[2023-07-25]
10-Q	[2023-04-25]
10-K	[2023-02-14]
10-Q	[2022-10-25]
10-Q	[2022-07-26]
10-Q	[2022-04-26]
10-K	[2022-02-22]
10-Q	[2021-10-26]
10-Q	[2021-07-27]
10-Q	[2021-04-27]
10-K	[2021-02-16]
10-Q	[2020-10-27]
10-Q	[2020-07-28]
10-Q	[2020-04-28]
10-K	[2020-02-18]
10-Q	[2019-10-22]
10-Q	[2019-07-23]
10-Q	[2019-04-23]
10-K	[2019-02-14]
10-Q	[2018-10-23]
10-Q	[2018-07-25]
10-Q	[2018-04-20]
10-K	[2018-02-13]
10-Q	[2017-10-27]
10-Q	[2017-07-25]
10-Q	[2017-04-26]
10-K	[2017-02-15]
10-Q	[2016-10-25]
10-Q	[2016-07-27]
10-Q	[2016-04-27]
10-K	[2016-02-19]
10-Q	[2015-10-29]
10-Q	[2015-07-31]
10-Q	[2015-05-07]
S-1	[2015-03-31]
10-K	[2015-03-30]
10-Q	[2014-11-06]
10-Q	[2014-08-07]
S-1	[2014-07-24]
10-Q	[2014-05-08]
10-K	[2014-02-27]
10-Q	[2013-11-13]
S-1	[2013-08-26]
10-Q	[2013-08-07]
10-Q	[2013-05-07]
10-K	[2013-02-25]
10-Q	[2012-11-07]