nielsen investor overview -...
TRANSCRIPT
1Q 2016
NIELSEN INVESTOR OVERVIEW
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FORWARD LOOKING STATEMENTS
The following discussion contains forward-looking statements, including those about Nielsen’s outlook and prospects, in the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those which are not historical facts. These and other statements that relate to future results and events are based on Nielsen’s current expectations as of February 11, 2016.
Our actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. The risks and uncertainties that we believe are material are outlined in our disclosure filings and materials, which you can find on http://nielsen.com/investors. Please consult these documents for a more complete understanding of these risks and uncertainties. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Our outlook is provided for the purpose of providing information about current expectations for 2016. This information may not be appropriate for other purposes.
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NIELSEN AT A GLANCE
Measurement and analytics for content, advertising and activity for television, digital, social and audio
Measurement and analytics for sales, market share and consumer goods
Adjusted EBITDA Margin
45% Adjusted EBITDA Margin
19% 2015 Revenue
$2.8B
2015 Revenue
$6.2B 2015 Free Cash Flow
$804M
2015 Adjusted EBITDA Margin
30.1%
Dividend Yield
2.45% Market Cap
$16.54B
Market Cap and Dividend Yield are reported as of 02/10/16
Cash returned to shareholders over 2014-2015
$1.1B
Revenues recurring in nature
~70%
Our focus is to drive shareholder value through consistent growth, profitability and free cash flow generation
2015 Revenue
$3.3B
Watch 46%
Buy 54%
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NIELSEN’S BUSINESS STRATEGY & OBJECTIVES
BUY
WATCH
Expand coverage of consumer purchase behavior globally
Capture Total Audience across all screens and platforms
MARKETING EFFECTIVENESS
Help clients understand how individuals’ viewing behavior impacts purchase behavior
OUR VALUES
OPEN
SIMPLE
INTEGRATED
OUR BRAND
QUALITY
INTEGRITY
NEUTRALITY
Execution of our strategy drives shareholder value through the cycles
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OUR STRATEGIC FRAMEWORK
CONSUMER FOCUS
PERFORMANCE MANAGEMENT
GLOBAL PRESENCE
BROADCAST TV
CABLE SATELLITE TV
TIME SHIFTING
DIGITAL
WATCH MOBILE
BUY
GROCERY MASS RETAIL
DRUG STORE
CLUB OUTLETS
SPECIALTY STORE
E-COMMERCE
TOTAL AUDIENCE
TOTAL CONSUMER
Powerful business model drives consistent performance
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COMPELLING FINANCIAL PERFORMANCE
*2010 to 2015 CAGR ~4.5% ex Harris and Audio
• 7% CAGR from 2010 to 2015* • 38 quarters of consecutive growth
• Investing in key growth opportunities
• Powerful syndicated business model
• Disciplined pricing and cost-out initiatives • ~3.4 pts of margin expansion 2010 to 2015
• Generated $3B+ of Free Cash Flow • 31% CAGR from 2010 to 2015
• Tremendous flexibility to invest in growth • ~$2B back to shareholders from 2013-2015
STRONG FREE CASH FLOW
BALANCED CAPITAL ALLOCATION
CONSISTENT REVENUE GROWTH
MARGIN EXPANSION
RESULTS
Well-positioned to deliver strong shareholder value
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WHY INVEST IN NIELSEN?
Unmatched global footprint of 100+ countries
“Mission critical” measurement and analytics embedded in client workflows
Syndicated, scalable products and services
Strategic investments to drive continued and future growth opportunities
Proven track record of growth and economic resilience
Strong free cash flow generation and compelling capital allocation strategy
We are a global, independent measurement and data company for fast moving consumer goods and media
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OUR GROWING GLOBAL FOOTPRINT
2014 REVENUE DISTRIBUTION
…underscored by a global employee base of 42,000 talented associates we work hard to attract, develop and retain
Our focus is relentless on our pursuit to provide clients with the most complete understanding of what consumers buy and watch in 100+ countries…
2015 REVENUE DISTRIBUTION
Buy coverage only Watch & Buy coverage
~20% of revenues in emerging markets
North America 62%
Europe 17%
Asia 11%
LATAM + Middle East + Africa + India
10%
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LONG-TERM, BEST-IN-CLASS CLIENT BASE BUY WATCH
• 20,000+ clients • Relationships with top 10 clients
for over 30 years • Long-term contracts provide
stable, recurring revenues – average length of 3-10 years
• No client represents more than 4% of 2015 revenues
HIGHLIGHTS
PARTNERSHIPS
For more than 90 years, we have been at the forefront of measuring consumers around the world, helping clients drive better business decisions and profitable growth over time
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WHAT CONSUMERS BUY
2B electronic
records collected weekly
1.7M+ store
visits monthly
25M+ characteristics
collected for 30M products
3M store level data files annually
16M consumer surveys
per year
Broad, unparalleled reach of consumers worldwide
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$2.3B (DEVELOPED MARKETS) + $1.0B (EMERGING MARKETS)
BUY: MEASURING THE TOTAL CONSUMER Total 2015 Revenue: $3.3B…Approximately 60% recurring in nature
Retail sales measurement, market share information and advanced analytical capabilities
• Presence in 100+ countries
• Measure billions of monthly point-of-sale transactions
• Store level data from nearly 2 million stores, supplemented from proprietary household level data from 240K households
• Demand strategy, pricing and new innovation testing
Growth through differentiation, stickiness & scale
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BUY GROWTH INITIATIVE #1: E-COMMERCE
INSIGHT TO UNDERSTAND THE 21ST
CENTURY SHOPPER BEHAVIOR AND SEGMENTATION
COMPETITIVE BENCHMARKS
AND ANALYTICS TO WIN
@THE DIGITAL SHELF
DELIVER SHARE MEASUREMENT FOR E-
COMMERCE COMPARABLE TO BRICK & MORTAR
DELIVER SHARE MEASUREMENT FOR E-COMMERCE COMPARABLE TO BRICK &
MORTAR
Presence in 5 markets (UK, France, Spain, China, and Korea); plans to expand across
NA, Europe and SE Asia
Nielsen Omni channel for an Alibaba key account in China to compliment the channel
measurement
New Offer Advisor (NOA), innovative analytical tool in partnership with Alibaba
INSIGHT TO UNDERSTAND THE 21ST CENTURY SHOPPER BEHAVIOR AND
SEGMENTATION
Insights on how shoppers browse and buy across devices
Shopper segmentations to guide communication and engagement plans
Measure shoppers and content similar to media
COMPETITIVE BENCHMARKS AND ANALYTICS TO WIN
@THE DIGITAL SHELF
Insights to understand and improve the digital shelf conditions
Analytics to optimize assortment choice for multi-channel retail
SALES SHOPPER SHELF
Powerful long-term opportunity for Nielsen
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BUY GROWTH INITIATIVE #2: EMERGING MARKETS
6% CAGR
$0.6B
$1.0B
$0.35B LOCALS
$0.65B GLOBAL MNCs
Biggest increase ever Acceleration with locals
Source: OECD; CAGR represented in constant currency
3.7B
7.0B
8.3B
GROWTH OF MIDDLE CLASS EMERGING MARKETS REVENUE
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BUY GROWTH INITIATIVE #3: RETAILERS
Retailer fragmentation, digital, E-Commerce
Nielsen’s retail-centric solutions
Global and local giants (on & offline)
5X
TODAY 2020
Immense Opportunity for Growth
Evolving Retail Ecosystem Nielsen’s Large Network
of Retailers
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BUY GROWTH INITIATIVE #4: CONNECTED BUY SYSTEM
AUTOMATED BUSINESS DRIVERS
MEASURE
ACTION & ACTIVATION
CONNECTED BUY SYSTEM
IMPROVE
TOTAL CONSUMER
Helping clients align business decisions using one Nielsen system
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WHAT CONSUMERS WATCH
282M Watching
Time-Shifted TV
259M Listening to
AM/FM Radio
182M Watching Video
on Internet
176M Using App/Web on
a Smartphone
169M Using Social Media
on an App on a Smartphone
Measuring Total Audience across screens
* Number of users engaging with these forms of media
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WATCH: MEASURING THE TOTAL AUDIENCE Total 2015 Revenue: $2.8B…Approximately 85% recurring in nature
• Watch measurement capabilities in 45 countries
• Digital measurement, audience analytics and consumer research
• Grossed and de-duplicated total reporting across all devices, access points and business models
• Separate measurement for content and ads.
• Strategic relationships (Adobe, Experian, Facebook, Twitter, Roku)
• Gold standard, MRC accredited panel
Cross Platform Measurement
Video Ratings Audio Ratings Text Ratings
printed press
websites
Watch Breakdown
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STRATEGIC IMPERATIVE: MEASURE THE TOTAL AUDIENCE
Ads includes ratings regardless of where + how ad is consumed,
including both linear and dynamic ad models
Content combined ratings for a program
or content regardless of where + how content is consumed, including both
linear TV viewing and dynamic TV/ video viewing
TOTAL AUDIENCE
unduplicated across all devices
and business models
Framework that integrates our capabilities to offer comparable measurement
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MEASURING CONSUMER MEDIA EXPOSURE ACROSS PLATFORM Grossed and de-duplicated total reporting across all devices, access points and business models
Programs & Ads
Content
Ads
TV CONNECTED DEVICE PC TABLET SMARTPHONE
Dyn
amic
Lin
ear
C3
/C7
/AQ
H
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DIFFERENTIATED CROSS PLATFORM ARCHITECTURE
TWO TYPES OF CONTENT
Native Digital Content
HARDWARE METER
Linear Ratings
GOLD STANDARD
PROCESS
ONE ENCODING PROCESS
COMPARABLE OVERNIGHT RATING
Digital Ratings
Total Audience
Traditional Linear Content
MRC ACCREDITED UNIVERSAL
BIG DATA ENABLED
MEASUREMENT
HARDWARE & SOFTWARE
METER
ONE CLIENT-SIDE IMPLEMENTATION
SDKs
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Execute
• Build of scalable architecture and software complete
MOVING THE MARKET TO TOTAL AUDIENCE CURRENCY
• Leading the 2017 currency evolution
Transact Evaluate
• Live + Time shifted to 35 days – all networks complete
• VOD/DCR enabling/in beta (30+ networks and publishers)
Adopt
• 2016 parallel industry reporting, framework in place
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EXELATE + NIELSEN CONNECT THE DOTS Integrating Nielsen solutions into a cohesive backbone
MEASUREMENT
ROI
ATTRIBUTION
DATA
ANALYTICS
DATA MANAGEMENT
PLATFORM (DMP)
DIGITAL DATA
Enterprise Marketing Platform
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WHAT IS THE NIELSEN EMP?
Evolving from many to one
A suite of integrated reach, resonance and reaction solutions
Plugged into a unified big data infrastructure
Connected to the ecosystem of 1st, 2nd and 3rd party data and apps
Enabling seamless insight, optimization and programmatic activation
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EMP IN ACTION: CPG HAIRCARE CLIENT Evaluating media spend success and expanding prospects
Bought: Shampoo Shopped: Kohl’s Watched: American Idol Searched: Discount salon hair products; flights to Paris Profiled: Female 24-35
Analytics: MTA/ROI of ad spend Audience Segmentation: Modeled high value shampoo buyers Audience Insight: Highly indexed Euro travel with coupon downloads
DISPLAY
VIDEO
MOBILE
ACTIVATION
1. More effectively allocated marketing spend
2. Gained new insights into shopper behavior that led to revised promotional strategy
3. Built new prospect targets and acquired samplers at scale across multiple platforms
DATA MANAGEMENT
MULTI TOUCH ATTRIBUTION/ROI
DATA MARKETPLACE
APPLICATIONS
eXelate Digital
Nielsen TV
Nielsen Catalina
DATA
1st Party CRM
RESULTS
Programmatic Activation: Pre-roll video on TubeMogul; display ads on Google; mobile ads on MediaMath
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WHY THE NIELSEN EMP MATTERS TO MARKETERS AND MEDIA
analyze them more accurately
touch & target across platforms
MARKET MORE EFFECTIVELY
understand consumers more deeply
+
=
+
+
EMP
Our proprietary data, broad connectivity and unparalleled legacy in measurement is why only Nielsen can...
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MARKETING EFFECTIVENESS
Identify most profitable shoppers
Reach them through personalized marketing
Understand true ROI
Activate shopper information
Enabled By Nielsen Through Technology, IP, Information and Insights
Optimizing advertising effectiveness with Watch media intelligence and Buy purchasing behavior
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MARKETING EFFECTIVENESS: GROWTH OPPORTUNITIES
P Marketing will continue to grow more complex
P The volume and granularity of Watch and Buy data will continue to expand
P No data set on its own will tell the complete story… Our panel is crucial
P Nielsen is the only company positioned to assemble the total view
P We are uniquely trusted to protect consumer privacy and the data owner’s security
P We can extend beyond CPG to virtually any consumer category
FINANCIALS
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STRONG CONSISTENT FINANCIAL PERFORMANCE
Note: Figures are as reported, CAGR and revenue growth represented in constant currency. 2010 to 2015 Revenue CAGR ~4.5% ex Harris and Audio
27.2% 27.8% 28.4% 29.2% 30.1% CC % Margins
26.8%
REVENUE ($B) ADJUSTED EBITDA ($B)
7% CAGR 9% CAGR
5.6% 4.1% 6.4% 12.4% 5.0% 6.3%
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FREE CASH FLOW AND ANI PER SHARE GROWTH
Figures are as reported, CAGR represented in constant currency for ANI per share
$376 $426
$573 $681
$804
$0.82
$1.44 $1.69
$2.52 $2.63
$2.02
26% CAGR
FREE CASH FLOW ($M) ANI PER SHARE
31% CAGR
91% 71% 67% 74% 70% 82%
$209
4X+ FCF & 3X+ ANI Share Growth
FCF Conversion
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FREE CASH FLOW PRODUCTIVITY
Strong free cash flow growth drives shareholder value
~
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CONSISTENT REVENUE GROWTH ($ billions)
Note: Figures are as reported, CAGR and revenue growth in constant currency. 2010 to 2015 CAGR ~4.5% ex Harris and Audio
BUY
WATCH
$4.9 $5.3 $5.4 $5.7 $6.3
7% CAGR
CC % 6.3% 5.6% 4.1% 6.4%
• New client wins
• Accelerating growth in emerging markets
• Expanding analytical capabilities
• New products & Total Audience Measurement
• Marketing Effectiveness growing double-digits
• Portfolio transformation
$6.2
12.4% 5.0%
Consistent and resilient business model
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SELECTED FINANCIAL METRICS & BALANCE SHEET ITEMS
($ in millions)
CURRENT DEBT MATURITY PROFILE – 12/31/2015(b) FINANCIAL METRICS
4Q 15
Free Cash Flow $306
Capital Expenditures, net $95
D&A $142
Net Book Interest $79
Cash Taxes $54
Cash Restructuring $14
Wtd. avg. diluted shares 366.5
BALANCE SHEET – 12/31/15
Gross Debt $7,338
Cash $357
Net Debt $6,981
Net Debt Ratio (a) 3.8x
(a) Reflects net debt (gross debt minus deferred financing fees and cash), divided by Adjusted EBITDA calculated on last twelve months basis (b) Excludes Revolver ($164M) and Capital Leases ($142M)
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BALANCED CAPITAL ALLOCATION
Dividend ~45%
Mandatory Debt ~15%
Buyback / Tuck-in BD
~40%
LONG TERM FCF DEPLOYMENT 2013 – 2015 ACTIVITY
Generated $2B+ of Free Cash Flow
Returned $2B+ back to shareholders
Increased dividend +75% since inception
New $500M buyback authorization… ~$850M remaining to be executed over 2016-2017
Delivering shareholder value
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NIELSEN ACQUISITIONS & JOINT VENTURES Company Capabilities
Social Guide Twitter TV ratings
Vizu Marketing effectiveness
Ibope (JV) Television audience measurement for Mexico, Dominican Republic and Venezuela
Ipsa Retail Measurement Services (RMS) /Consumer Panel Services (CPS) in Ecuador
Perishables Group Product expansion for retail services
Arbitron Radio audience measurement
Bowker E-books
MediaXIM Belgium and Netherlands advertising info services
G4 Trade promotion optimization; Leader in SaaS analytics solutions for CPG companies
Nielsen Innovate Israel based incubator investing in startups that help Nielsen clients (10 countries)
Harris U.S. custom surveys
Nexium Retail shelf image identification technologies that replace manual inventory management systems
MMRD (JV) RMS in Myanmar
Czech TAM (JV) Television audience measurement
Affinova Intuitive user interface platform and automated analytics capabilities; Nielsen’s Innovation Practice
eXelate Digital audience intelligence in the Programmatic Media ecosystem
20
14
2
01
2
20
13
Approximately $2B in acquisitions and JVs since 2012, driving growth, value & returns
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FOREIGN CURRENCY IMPACT
2013PF REVENUE DISTRIBUTION 2015 CURRENCY PROFILE - REVENUE
PROJECTED FX IMPACT(a): REPORTED VS CONSTANT CURRENCY
.
We report on a constant currency basis to reflect operating performance a)Projected impact assumes rates in effect at 2/9/16 remain in effect for the balance of 2016. Also based on company estimates for future quarters on
distribution of revenue and EBITDA by currency. We report on a constant currency basis to reflect operating performance.
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2016 GUIDANCE
Continued execution in line with long term financial framework
Total Revenue 4.0% - 6.0%
Adj. EBITDA margin growth 50 - 70 bps
Adj. Net Income Per Share $2.83 - $2.93
Free Cash Flow ~$950M
OTHER FINANCIAL METRICS
Net book interest $325M- $335M
Cash Taxes 14.0% - 14.5%
Cash restructuring $50M - $75M
Est. wtd. avg. diluted shares outstanding for FY 2015
~361M
(Revenue and adj. EBITDA margin growth in constant currency)
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2016 REVENUE GUIDANCE RANGE (Percentages reflected as constant currency)
New client wins
Stable discretionary spend
Continued strength in emerging markets
Total Audience Measurement
Continued momentum in Marketing Effectiveness
Non core portfolio pruning – reflects NRG divestiture
Audience Measurement (Video / Text)
Marketing Effectiveness
Other Watch
Watch
Buy
~$2.8B
~$3.3B Developed Emerging Buy
1.5 – 3.5% 8.0 – 10.0%
3.5 – 5.5%
Audio
6.0 – 7.0%
15.0 – 20.0%
(15.0) – (10.0)% 4.5 – 6.5%
1.0 – 3.0% 6.0 – 7.5%
RANGE DRIVERS 2016 RANGE 2016E
Total Nielsen 4-6%
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THE NEXT FIVE YEARS…
Note: All measures represented on constant currency basis.
…The Nielsen Financial Framework
CASH TAX RATE
DIVIDEND GROWTH
ANI PER SHARE GROWTH
FREE CASH FLOW CONVERSION
MARGIN EXPANSION
REVENUE GROWTH
MID-TEENS TO LOW 20’S
IN LINE WITH EARNINGS GROWTH
DOUBLE DIGIT TO LOW TEENS
~90%+ ANI
50 – 70 BPS
MID-SINGLE DIGIT
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CERTAIN NON-GAAP MEASURES Overview of Non-GAAP Presentations We use the non-GAAP financial measures discussed below to evaluate the results of our operations. We believe that the presentation of these non-GAAP measures provides useful information to investors regarding financial and business trends related to our results of operations, cash flows and indebtedness and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance. None of the non-GAAP measures presented should be considered as an alternative to net income or loss, operating income or loss, cash flows from operating activities, total indebtedness or any other measures of operating performance and financial condition, liquidity or indebtedness derived in accordance with GAAP. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Our use of these terms may vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation.
Constant Currency Presentation We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period exchange rates and comparing these adjusted amounts to our current period reported results. Net Debt and Net Debt Leverage Ratio The net debt leverage ratio is defined as net debt (gross debt less cash and cash equivalents) as of the balance sheet date divided by Adjusted EBITDA for the twelve months then ended. Net debt and the net debt leverage ratio are commonly used metrics to evaluate and compare leverage between companies and are not presentations made in accordance with GAAP.
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CERTAIN NON-GAAP MEASURES (continued)
Adjusted EBITDA
We define Adjusted EBITDA as net income or loss from our consolidated statements of operations before interest income and expense, income taxes, depreciation and amortization, restructuring charges, goodwill and intangible asset impairment charges, stock-based compensation expense and other non-operating items from our consolidated statements of operations as well as certain other items considered unusual or non-recurring in nature. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors.
Adjusted Net Income
We define Adjusted Net Income as net income or loss from our consolidated statements of operations before income taxes, depreciation and amortization associated with acquired tangible and intangible assets, restructuring charges, goodwill and intangible asset impairment charges, other non-operating items from our consolidated statements of operations and certain other items considered unusual or non-recurring in nature, reduced by cash paid for income taxes. Also excluded from Adjusted Net Income is interest expense attributable to the mandatorily convertible subordinated bonds converted on February 1, 2013. Adjusted Net Income per share of common stock presented on a diluted basis includes the weighted-average amount of shares of common stock convertible associated with the mandatorily convertible bonds based upon the average price of our common stock during the periods beginning on or before February 1, 2013. Such shares are considered anti-dilutive in accordance with GAAP for the periods presented. Free Cash Flow We define free cash flow as net cash provided by operating activities, normalized for non-recurring Arbitron transaction costs, less capital expenditures. We believe providing free cash flow information provides valuable supplemental information regarding the cash flow that may be available for discretionary use by us. Free cash flow is not a presentation made in accordance with GAAP.
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ADJUSTED NET INCOME RECONCILIATION ($ in millions except per share amounts)
Net income $575 $381 $736 $272 $87 $133 $(489) $(589) (Income)/ loss from discontinued
operations, net of tax – – (305) (30) (26) 13 132 257
Interest expense, net 307 297 307 386 443 614 598 633 Provision / (benefit) for income taxes 383 236 91 122 6 (54) (152) 26
Depreciation and amortization 574 573 510 493 502 530 519 462 EBITDA 1,839 1,487 1,339 1,243 1,012 1,236 608 789
Impairment of goodwill and intangible – – – – – – 402 95 Equity in net (income)/ loss of affiliates 3 4 (2) (5) (3) (5) 22 7 Other non-operating loss/(income), net (175) 171 34 135 219 (28) 84 6
Restructuring charges 51 89 119 85 83 59 60 118 Stock-based compensation expense 48 47 47 34 27 18 14 18
Other items (a) 92 39 80 12 112 44 36 54
Adjusted EBITDA 1,858 1,837 1,617 1,504 1,450 1,324 1,226 1,087 Interest expense, net (307) (297) (307) (386) (443) (614) (598) (633)
Depreciation and amortization (574) (573) (510) (493) (502) (530) (519) (462) Depreciation and amortization of
acquisition-related tangible and intangible assets
205 204 162 145 161 196 211 208
Cash paid for income taxes (159) (154) (147) (124) (132) (129) (139) (91) Stock-based compensation expense (48) (47) (47) (34) (27) (18) (14) (18)
Interest expense attributable to mandatory convertible bonds – – 2 23 21 – – –
Adjusted net income 975 970 770 635 528 229 167 91 Adjusted net income per share of
common stock, diluted $2.63 $2.52 $2.02 $1.69 $1.44 $0.82 $0.61 $0.40
2013 2012 2011 2010 2009 2008 2014
(a) Other items primarily consist of non-recurring items, sponsor termination fees (2011), and acquisition adjustments
2015
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WEIGHTED AVERAGE SHARES OUTSTANDING ($ in millions except per share amounts; Year ended December 31 for all years)
Weighted-average shares of common stock outstanding as of
December 31, basic
366,996,788 379,333,037 375,797,629 361,787,868 352,469,181 276,499,073
Dilutive shares of common stock from stock
compensation plans 3,961,016 5,038,415 5,130,337 4,523,116 5,032,773 3,153,513
Shares of common stock convertible associated
with the mandatory convertible bonds
-- -- 896,994 10,416,700 9,531,994 –
Weighted-average shares of common
stock outstanding as of December 31,
diluted
370,957,804 384,371,452 381,824,960 376,727,684 367,033,948 279,652,586
2015 2013 2011 2010 2012 2014
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FREE CASH FLOW RECONCILIATION ($ in millions; Year ended December 31 for all years)
Net cash provided by operating activities $1,179 $1,093 $901 $784 $641 $543 $517
Sponsor termination fee -- -- – – 102 – –
Capital expenditures (408) (412) (374) (358) (367) (334) (282)
One-time Arbitron costs -- -- $46 --
-- -- --
Tax benefits from stock – based compensation $26 -- --
--
--
-- --
Proceeds from the sale of PP&E $7 -- -- --
-- -- --
Free Cash Flow $804 $681 $573 $426 $376 $209 $235
2009 2013 2011 2010 2012 2014 2015
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