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 ☒ No ☐

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 ☒ No ☐

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.

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 ☐ No ☒

There were ~~355,673,567~~356,753,964 shares of the registrant’s Common Stock outstanding as of June 30, ~~2019.~~2020.

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)	2019			2018			2019			2018			2020			2019			2020			2019
Revenues	$	1,628		$	1,647		$	3,191		$	3,257		$	1,496		$	1,628		$	3,055		$	3,191
Cost of revenues, exclusive of depreciation and amortization shown separately below		699			698			1,394			1,417			664			699			1,385			1,394
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		483			494			963			987			451			483			966			963
Depreciation and amortization		185			162			364			329			224			185			438			364
Impairment of goodwill and other long-lived assets														45			—			45			—
Restructuring charges		12			65			47			89			84			12			95			47
Operating income/(loss)		249			228			423			435			28			249			126			423
Interest income		1			2			3			4			—			1			1			3
Interest expense		(100	)		(100	)		(199	)		(196	)		(91	)		(100	)		(185	)		(199	)
Foreign currency exchange transaction gains/(losses), net		(1	)		(4	)		(4	)		(4	)		3			(1	)		(3	)		(4	)
Other income/(expense), net		—			(5	)		5			(4	)		(4	)		—			(5	)		5
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of affiliates		149			121			228		235				(64	)		149			(66	)	228
Benefit/(provision) for income taxes		(23	)		(44	)		(55	)		(83	)		38			(23	)		27			(55	)
Equity in net income/(loss) of affiliates		—			(1	)		—			(1	)
Net income/(loss)		126			76			173			151			(26	)		126			(39	)		173
Net income/(loss) attributable to noncontrolling interests		3			4			7			7			4			3			9			7
Net income/(loss) attributable to Nielsen shareholders	$	123		$	72		$	166		$	144		$	(30	)	$	123		$	(48	)	$	166
Net income/(loss) per share of common stock, basic
Net income/(loss) attributable to Nielsen shareholders	$	0.35		$	0.20		$	0.47		$	0.40		$	(0.08	)	$	0.35		$	(0.13	)	$	0.47
Net income/(loss) per share of common stock, diluted
Net income/(loss) attributable to Nielsen shareholders	$	0.34		$	0.20		$	0.47		$	0.40		$	(0.08	)	$	0.34		$	(0.13	)	$	0.47
Weighted-average shares of common stock outstanding, basic		355,630,327			355,773,490			355,539,038			356,115,127			356,672,845			355,630,327			356,532,069			355,539,038
Dilutive shares of common stock		997,381			602,670			954,854			707,962			—			997,381			—			954,854
Weighted-average shares of common stock outstanding, diluted		356,627,708			356,376,160			356,493,892			356,823,089			356,672,845			356,627,708			356,532,069			356,493,892
Dividends declared per common share	$	0.35		$	0.35		$	0.70		$	0.69		$	0.06		$	0.35		$	0.12		$	0.70

The accompanying notes are an integral part of these condensed consolidated financial statements.

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(IN MILLIONS)	2019			2018			2019			2018			2020			2019			2020			2019
Net income/(loss)	$	126		$	76		$	173		$	151		$	(26	)	$	126		$	(39	)	$	173
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustments ⁽¹⁾		9			(141	)		20			(100	)		14			9			(90	)		20
Changes in the fair value of cash flow hedges ⁽²⁾		(20	)		3			(29	)		14			2			(20	)		(31	)		(29	)
Defined benefit pension plan adjustments ⁽³⁾		2			5			6			9			3			2			7			6
Total other comprehensive income/(loss)		(9	)		(133	)		(3	)		(77	)		19			(9	)		(114	)		(3	)
Total comprehensive income/(loss)		117			(57	)		170			74			(7	)		117			(153	)		170
Less: comprehensive income/(loss) attributable to noncontrolling interests		5			—			9			5			5			5			2			9
Total comprehensive income/(loss) attributable to Nielsen shareholders	$	112		$	(57	)	$	161		$	69		$	(12	)	$	112		$	(155	)	$	161

The accompanying notes are an integral part of these condensed consolidated financial statements.

	June 30,			December 31,			June 30,			December 31,
(IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)	2019			2018			2020			2019
	(Unaudited)						(Unaudited)
Assets:
Current assets
Cash and cash equivalents	$	393		$	524		$	438		$	454
Trade and other receivables, net of allowances for doubtful accounts and sales returns of $26 and $31 as of June 30, 2019 and December 31, 2018, respectively		1,227			1,118
Trade and other receivables, net of allowances for doubtful accounts and sales returns of $42 and $28 as of June 30, 2020 and December 31, 2019, respectively								1,131			1,103
Prepaid expenses and other current assets		406			361			504			420
Total current assets		2,026			2,003			2,073			1,977
Non-current assets
Property, plant and equipment, net		450			468			402			466
Operating lease right-of-use asset		453			—			377			393
Goodwill		7,017			6,987			5,984			5,993
Other intangible assets, net		4,981			5,024			4,698			4,881
Deferred tax assets		329			333			276			276
Other non-current assets		332			364			312			333
Total assets	$	15,588		$	15,179		$	14,122		$	14,319
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	1,024		$	1,119		$	1,100		$	1,182
Deferred revenues		363			355			361			345
Income tax liabilities		90			76			-			60
Current portion of long-term debt, finance lease obligations and short-term borrowings		412			107			291			914
Total current liabilities		1,889			1,657			1,752			2,501
Non-current liabilities
Long-term debt and finance lease obligations		8,233			8,280			8,130			7,395
Deferred tax liabilities		1,078			1,108			1,016			1,052
Operating lease liabilities		418			—			372			370
Other non-current liabilities		982			1,091			645			613
Total liabilities		12,600			12,136			11,915			11,931
Commitments and contingencies (Note 13)
Equity:
Nielsen shareholders’ equity
Common stock, €0.07 par value, 1,185,800,000 and 1,185,800,000 shares authorized, 355,687,078 and 355,323,822 shares issued and 355,673,567 and 355,271,737 shares outstanding at June 30, 2019 and December 31, 2018, respectively		32			32
Common stock, €0.07 par value, 1,185,800,000 and 1,185,800,000 shares authorized, 356,767,164 and 356,158,879 shares issued and 356,753,964 and 356,149,883 shares outstanding at June 30, 2020 and December 31, 2019, respectively								32			32
Additional paid-in capital		4,501			4,720			4,359			4,378
Retained earnings/(accumulated deficit)		(629	)		(795	)		(1,258	)		(1,210	)
Accumulated other comprehensive loss, net of income taxes		(1,115	)		(1,110	)		(1,112	)		(1,005	)
Total Nielsen shareholders’ equity		2,789			2,847			2,021			2,195
Noncontrolling interests		199			196			186			193
Total equity		2,988			3,043			2,207			2,388
Total liabilities and equity	$	15,588		$	15,179		$	14,122		$	14,319

The accompanying notes are an integral part of these condensed consolidated financial statements.

	Six Months Ended						Six Months Ended
	June 30,						June 30,
(IN MILLIONS)	2019			2018			2020			2019
Operating Activities
Net income/(loss)	$	173		$	151		$	(39	)	$	173
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Share-based compensation expense		26			20			27			26
Currency exchange rate differences on financial transactions and other (gains)/losses		(1	)		7			8			(1	)
Equity in net loss of affiliates, net of dividends received		1			1			1			1
Depreciation and amortization		364			329			438			364
Impairment of goodwill and other long-lived assets								45			—
Changes in operating assets and liabilities, net of effect of businesses acquired and divested:
Trade and other receivables, net		(118	)		(109	)		(42	)		(118	)
Prepaid expenses and other assets		(4	)		(108	)		42			(4	)
Accounts payable and other current liabilities and deferred revenues		(153	)		(129	)		(94	)		(153	)
Other non-current liabilities		(48	)		1			(16	)		(48	)
Interest payable		6			—			(5	)		6
Income taxes		(63	)		(38	)		(120	)		(63	)
Net cash provided by/(used in) operating activities		183			125			245			183
Investing Activities
Acquisition of subsidiaries and affiliates, net of cash acquired		(60	)		(30	)		(28	)		(60	)
Additions to property, plant and equipment and other assets		(44	)		(44	)		(14	)		(44	)
Additions to intangible assets		(186	)		(202	)		(218	)		(186	)
Other investing activities								(2	)		—
Net cash provided by/(used in) investing activities		(290	)		(276	)		(262	)		(290	)
Financing Activities
Net borrowings under revolving credit facility		296			246			165			296
Proceeds from issuances of debt, net of issuance costs		—			781			978			—
Repayment of debt		(29	)		(799	)		(1,029	)		(29	)
Increase/(decrease) in other short-term borrowings		(1	)		—			—			(1	)
Cash dividends paid to shareholders		(249	)		(246	)		(43	)		(249	)
Repurchase of common stock		—			(60	)
Activity from share-based compensation plans		(4	)		18			(5	)		(4	)
Proceeds from employee stock purchase plan		2			3			2			2
Finance leases		(29	)		(40	)		(36	)		(29	)
Other financing activities		(8	)		(11	)		(11	)		(8	)
Net cash provided by/(used in) financing activities		(22	)		(108	)		21			(22	)
Effect of exchange-rate changes on cash and cash equivalents		(2	)		(3	)		(20	)		(2	)
Net increase/(decrease) in cash and cash equivalents		(131	)		(262	)		(16	)		(131	)
Cash and cash equivalents at beginning of period		524			656			454			524
Cash and cash equivalents at end of period	$	393		$	394		$	438		$	393
Supplemental Cash Flow Information
Cash paid for income taxes	$	(118	)	$	(121	)	$	(93	)	$	(118	)
Cash paid for interest, net of amounts capitalized	$	(193	)	$	(196	)	$	(190	)	$	(193	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Condensed Consolidated Statements of Changes in Equity for the Three Months Ended June 30, ~~2019~~2020

									Accumulated Other Comprehensive Income (Loss), Net																										Accumulated Other Comprehensive Income (Loss), Net
						Retained																										Retained
			Additional			Earnings			Currency			Cash			Post			Total Nielsen											Additional			Earnings			Currency			Cash			Post			Total Nielsen
	Common		Paid-in			(Accumulated)			Translation			Flow			Employment			Shareholders’			Noncontrolling			Total			Common		Paid-in			(Accumulated)			Translation			Flow			Employment			Shareholders’			Noncontrolling			Total
(IN MILLIONS)	Stock		Capital			(Deficit)			Adjustments			Hedges			Benefits			Equity			Interests			Equity			Stock		Capital			(Deficit)			Adjustments			Hedges			Benefits			Equity			Interests			Equity
Balance, March 31, 2019	$	32	$	4,614		$	(752	)	$	(768	)	$	2		$	(338	)	$	2,790		$	199		$	2,989
Balance, March 31, 2020																											$	32	$	4,370		$	(1,228	)	$	(872	)	$	(52	)	$	(206	)	$	2,044		$	187		$	2,231
Net income/(loss)		—		—			123			—			—			—			123			3			126			—		—			(30	)		—			—			—			(30	)		4			(26	)
Currency translation adjustments, net of tax of $3		—		—			—			7			—			—			7			2			9			—		—			—			13			—			—			13			1			14
Cash flow hedges, net of tax of $8		—		—			—			—			(20	)		—			(20	)		—			(20	)
Unrealized gain on pension liability, net of tax of zero		—		—			—			—			—			2			2			—			2
Cash flow hedges, net of tax of 0																												—		—			—			—			2			—			2			—			2
Unrealized gain on pension liability, net of tax of $(1)																												—		—			—			—			—			3			3			—			3
Employee stock purchase plan		—		1			—			—			—			—			1			—			1			—		1			—			—			—			—			1			—			1
Divestiture of a non-controlling interest in a consolidated subsidiary, net		—		—			—			—			—			—			—			(2	)		(2	)
Dividends to shareholders		—		(125	)		—			—			—			—			(125	)		(3	)		(128	)		—		(22	)		—			—			—			—			(22	)		(6	)		(28	)
Common stock activity from share-based compensation plans		—		(1	)		—			—			—			—			(1	)		—			(1	)		—		(1	)		—			—			—			—			(1	)		—			(1	)
Share-based compensation expense		—		12			—			—			—			—			12			—			12			—		11			—			—			—			—			11			—			11
Balance, June 30, 2019	$	32	$	4,501		$	(629	)	$	(761	)	$	(18	)	$	(336	)	$	2,789		$	199		$	2,988
Balance, June 30, 2020																											$	32	$	4,359		$	(1,258	)	$	(859	)	$	(50	)	$	(203	)	$	2,021		$	186		$	2,207

Condensed Consolidated Statements of Changes in Equity for the Six Months Ended June 30, 2020

									Accumulated Other Comprehensive Income (Loss), Net
						Retained
			Additional			Earnings			Currency			Cash			Post			Total Nielsen
	Common		Paid-in			(Accumulated)			Translation			Flow			Employment			Shareholders’			Noncontrolling			Total
(IN MILLIONS)	Stock		Capital			(Deficit)			Adjustments			Hedges			Benefits			Equity			Interests			Equity
Balance, December 31, 2019	$	32	$	4,378		$	(1,210	)	$	(776	)	$	(19	)	$	(210	)	$	2,195		$	193		$	2,388
Net income/(loss)		—		—			(48	)		—			—			—			(48	)		9			(39	)
Currency translation adjustments, net of tax of 0		—		—			—			(83	)		—			—			(83	)		(7	)		(90	)
Cash flow hedges, net of tax of $12		—		—			—			—			(31	)		—			(31	)		—			(31	)
Unrealized gain on pension liability, net of tax of $(2)		—		—			—			—			—			7			7			—			7
Employee stock purchase plan		—		2			—			—			—			—			2			—			2
Dividends to shareholders		—		(43	)		—			—			—			—			(43	)		(9	)		(52	)
Common stock activity from share-based compensation plans		—		(5	)		—			—			—			—			(5	)		—			(5	)
Share-based compensation expense		—		27			—			—			—			—			27			—			27
Balance, June 30, 2020	$	32	$	4,359		$	(1,258	)	$	(859	)	$	(50	)	$	(203	)	$	2,021		$	186		$	2,207

Condensed Consolidated Statements of Changes in Equity for the Three Months Ended June 30, 2019

									Accumulated Other Comprehensive Income (Loss), Net
						Retained
			Additional			Earnings			Currency			Cash			Post			Total Nielsen
	Common		Paid-in			(Accumulated)			Translation			Flow			Employment			Shareholders’			Noncontrolling			Total
(IN MILLIONS)	Stock		Capital			(Deficit)			Adjustments			Hedges			Benefits			Equity			Interests			Equity
Balance, March 31, 2019	$	32	$	4,614		$	(752	)	$	(768	)	$	2		$	(338	)	$	2,790		$	199		$	2,989
Net income/(loss)		—		—			123			—			—			—			123			3			126
Currency translation adjustments, net of tax of $3		—		—			—			7			—			—			7			2			9
Cash flow hedges, net of tax of $8		—		—			—			—			(20	)		—			(20	)		—			(20	)
Unrealized gain on pension liability, net of tax of 0		—		—			—			—			—			2			2			—			2
Employee stock purchase plan		—		1			—			—			—			—			1			—			1
Divestiture of a non-controlling interest in a consolidated subsidiary, net		—		—			—			—			—			—			—			(2	)		(2	)
Dividends to shareholders		—		(125	)		—			—			—			—			(125	)		(3	)		(128	)
Common stock activity from share-based compensation plans		—		(1	)		—			—			—			—			(1	)		—			(1	)
Share-based compensation expense		—		12			—			—			—			—			12			—			12
Balance, June 30, 2019	$	32	$	4,501		$	(629	)	$	(761	)	$	(18	)	$	(336	)	$	2,789		$	199		$	2,988

Condensed Consolidated Statements of Changes in Equity for the Six Months Ended June 30, 2019

									Accumulated Other Comprehensive Income (Loss), Net
						Retained
			Additional			Earnings			Currency			Cash			Post			Total Nielsen
	Common		Paid-in			(Accumulated)			Translation			Flow			Employment			Shareholders’			Noncontrolling			Total
(IN MILLIONS)	Stock		Capital			(Deficit)			Adjustments			Hedges			Benefits			Equity			Interests			Equity
Balance, December 31, 2018	$	32	$	4,720		$	(795	)	$	(779	)	$	11		$	(342	)	$	2,847		$	196		$	3,043
Net income/(loss)		—		—			166			—			��			—			166			7			173
Currency translation adjustments, net of tax of $(1)		—		—			—			18			—			—			18			2			20
Cash flow hedges, net of tax of $11		—		—			—			—			(29	)		—			(29	)		—			(29	)
Unrealized gain on pension liability, net of tax of $(1)		—		—			—			—			—			6			6			—			6
Employee stock purchase plan		—		2			—			—			—			—			2			—			2
Capital contribution by non-controlling partner		—		—			—			—			—			—			—			2			2
Divestiture of a non-controlling interest in a consolidated subsidiary, net		—		—			—			—			—			—			—			(2	)		(2	)
Dividends to shareholders		—		(249	)		—			—			—			—			(249	)		(6	)		(255	)
Common stock activity from share-based compensation plans		—		(4	)		—			—			—			—			(4	)		—			(4	)
Share-based compensation expense		—		32			—			—			—			—			32			—			32
Balance, June 30, 2019	$	32	$	4,501		$	(629	)	$	(761	)	$	(18	)	$	(336	)	$	2,789		$	199		$	2,988

~~Condensed Consolidated Statements of Changes in Equity for the Three Months Ended June 30, 2018~~

Accumulated Other Comprehensive Income

(Loss), Net

Total

Additional

Currency

Cash

Post

Nielsen

Common

Paid-in

Retained

Translation

Flow

Employment

Shareholders’

Noncontrolling

Total

(IN MILLIONS)

Stock

Capital

Earnings

Adjustments

Hedges

Benefits

Equity

Interests

Equity

Balance, March 31, 2018

$
32

$
4,750

$
362

$
(571
)

$
21

$
(336
)

$
4,258

$
200

$
4,458

Net income/(loss)

—

—

72

—

—

—

72

4

76

Currency translation adjustments, net of tax of $(6)

—

—

—

(137
)

—

—

(137
)

(4
)

(141
)
Cash flow hedges, net of tax of $(1)

—

—

—

—

3

—

3

—

3

Unrealized gain on pension liability, net of
tax of $(1)

—

—

—

—

—

5

5

—

5

Employee stock purchase plan

—

2

—

—

—

—

2

—

2

Dividends to shareholders

—

—

(125
)

—

—

—

(125
)

(4
)

(129
)
Common stock activity from share-based
compensation plans

—

4

—

—

—

—

4

—

4

Repurchase of common stock

—

(40
)

—

—

—

—

(40
)

—

(40
)
Share-based compensation expense

—

7

—

—

—

—

7

—

7

Balance, June 30, 2018

$
32

$
4,723

$
309

$
(708
)

$
24

$
(331
)

$
4,049

$
196

$
4,245

~~Condensed Consolidated Statements of Changes in Equity for the Six Months Ended June 30, 2018~~

Accumulated Other Comprehensive Income

(Loss), Net

Total

Additional

Currency

Cash

Post

Nielsen

Common

Paid-in

Retained

Translation

Flow

Employment

Shareholders’

Noncontrolling

Total

(IN MILLIONS)

Stock

Capital

Earnings

Adjustments

Hedges

Benefits

Equity

Interests

Equity

Balance, December 31, 2017

$
32

$
4,742

$
411

$
(610
)

$
10

$
(340
)

$
4,245

$
198

$
4,443

Net income/(loss)

—

—

144

—

—

—

144

7

151

Currency translation adjustments, net of tax of $(3)

—

—

—

(98
)

—

—

(98
)

(2
)

(100
)
Cash flow hedges, net of tax of $(5)

—

—

—

—

14

—

14

—

14

Unrealized gain on pension liability, net of
tax of $(2)

—

—

—

—

—

9

9

—

9

Employee stock purchase plan

—

3

—

—

—

—

3

—

3

Dividends to shareholders

—

—

(246
)

—

—

—

(246
)

(7
)

(253
)
Common stock activity from share-based
compensation plans

—

18

—

—

—

—

18

—

18

Repurchase of common stock

—

(60
)

—

—

—

—

(60
)

—

(60
)
Share-based compensation expense

—

20

—

—

—

—

20

—

20

Balance, June 30, 2018

$
32

$
4,723

$
309

$
(708
)

$
24

$
(331
)

$
4,049

$
196

$
4,245

The accompanying notes are an integral part of these condensed consolidated financial statements

Nielsen Holdings plc (“Nielsen” or the “Company”), together with its subsidiaries, is a leading global ~~information~~measurement and ~~measurement~~data analytics company that provides ~~clients with a comprehensive understanding~~the most complete and trusted view available of consumers and ~~consumer behavior. Nielsen’s~~markets worldwide. The company’s approach marries ~~the Company’s~~ proprietary Nielsen data with other data sources to help clients around the world understand ~~what's~~what’s happening now, ~~what's~~what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries.

~~Prior to February 2019,~~ Nielsen ~~was aligned~~is divided into ~~two reporting segments: what consumers buy~~2 business units: Nielsen Global Media (“~~Buy”~~Media”) and ~~what consumers read, watch and listen to (“Watch”). In February 2019, Nielsen realigned its business segments from Buy and Watch to~~ Nielsen Global Connect (“Connect”). Media, the arbiter of truth for media markets, provides media and advertising clients with unbiased and reliable metrics that create the shared understanding of the industry required for markets to function. Media helps clients to define exactly who they want to reach, as well as optimize the outcomes they can achieve. The company's cross-platform measurement strategy brings together the best of TV and digital measurement to ensure a more functional marketplace for the industry.

Connect provides consumer packaged goods manufacturers and retailers with accurate, actionable information and a complete picture of the complex and changing marketplace that brands need to innovate and grow their businesses. Connect provides data and builds tools that use predictive models to turn observations in the marketplace into business decisions and winning solutions. The business's data and insights, combined with the only open, cloud native measurement and analytics platform that democratizes the power of data, continue to provide an essential foundation that makes markets possible in the rapidly evolving world of commerce.

On November 7, 2019, Nielsen announced its plan to spin-off the company's Global Connect business, creating two independent, publicly traded companies -- the Global Media ~~(“Media”). Each segment operates as a complete unit—from~~business and the ~~conception of a product, through~~Global Connect business. On May 7, 2020, the ~~collection of~~Company filed an initial Form 10 Registration Statement with the ~~data, into the technology~~U.S. Securities and ~~operations, all the way to the data being sold and delivered to the client. These changes better align Nielsen’s external view to~~Exchange Commission in connection with the Company’s ~~go-forward internal view.~~proposed separation.

On June 30, 2020, Nielsen announced a broad-based optimization plan (the “Restructuring Plan”) to drive permanent cost savings and operational efficiencies, as well as to position the Company for greater profitability and growth. The ~~Company’s reportable segments are stated on~~Company expects the ~~new basis~~Restructuring Plan to be substantially completed in 2020 and ~~such changes were retrospectively applied.~~for restructuring actions and other permanent cost-savings initiatives to drive approximately $250 million in pre-tax annual run-rate savings. The ~~impact~~Company expects 2020 pre-tax restructuring charges of ~~these changes had an insignificant impact on Nielsen’s condensed consolidated financial statements or segment results.~~$150 to $170 million.

Nielsen has ~~a presence~~operations in ~~more than~~approximately 100 countries, with its registered office located in Oxford, the United Kingdom and its headquarters is located in New York, New York, United States.

The accompanying condensed consolidated financial statements are unaudited but, in the opinion of management, contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to present fairly the Company’s financial position and the results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) applicable to interim periods. For a more complete discussion of significant accounting policies, commitments and contingencies and certain other information, refer to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019. All amounts are presented in U.S. Dollars (“$”), except for share data or where expressly stated as being in other currencies, e.g., Euros (“€”). The condensed consolidated financial statements include the accounts of Nielsen and all subsidiaries and other controlled entities. The Company has evaluated events occurring subsequent to June 30, ~~2019~~2020 for potential recognition or disclosure in the condensed consolidated financial statements and concluded there were no subsequent events that required recognition or disclosure other than those provided.

Basic net income per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. Dilutive potential shares of common stock primarily consist of employee stock options and restricted stock units.

The effect of ~~4,252,823~~8,996,021 and ~~3,987,794~~4,252,823 shares of common stock underlying outstanding equity awards under Nielsen’s stock compensation plans were excluded from the calculation of diluted earnings per share for the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively, as such shares would have been anti-dilutive.

The effect of ~~4,349,778~~8,996,021 and ~~4,102,565~~4,349,778 shares of common stock underlying outstanding equity awards under Nielsen’s stock compensation plans were excluded from the calculation of diluted earnings per share for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively, as such shares would have been anti-dilutive.

The Company extends non-interest bearing trade credit to its customers in the ordinary course of business. To minimize credit risk, ongoing credit evaluations of client’s financial condition are performed. AnEffective January 1, 2020, the Company adopted ASU, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. Prior to the adoption, an estimate of the allowance for doubtful accounts was made when collection of the full amount was no longer probable (incurred loss) or returns were expected. Subsequent to the adoption, as noted in Note 2, the allowance for doubtful accounts is made when collection of the full ~~amount~~amounts is no longer probable ~~or returns are expected.~~by also incorporating reasonable and supportable forecasts (expected loss).

During the six months ended June 30, ~~2019,~~2020, Nielsen sold ~~$131~~$125 million of accounts receivable to third parties and recorded an immaterial loss on the sale to interest expense, net in the condensed consolidated statement of operations. As of June 30, ~~2019~~2020 and December 31, ~~2018, $50~~2019, $30 million and ~~$105~~ $85 million of previously sold receivables, respectively, remained outstanding. The sales were accounted for as true sales, without recourse. Nielsen maintains servicing responsibilities offor the majority of the receivables sold during the ~~year,~~period, for which the related costs are not ~~significant~~.significant. The proceeds of ~~$131~~$125 million from the sales were reported as a component of the changes in trade and other receivables, net within operating activities in the condensed consolidated statement of cash flows.

Effective January 1, 2019, the Company adopted the new lease accounting standard using the transition method approved by the FASB on July 30, 2018, which allows companies to apply the provisions of the new leasing standard as of January 1, 2019, without adjusting the comparative periods presented. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard. This allowed us to carry forward the historical lease classification. Adoption of this standard resulted in the recording of net operating lease right-of-use (ROU) assets of $0.5 billion (amount is net of lease incentives and ASC 420 cease-use liabilities) and corresponding operating lease liabilities of $0.5 billion. Financial position for reporting periods beginning on or after January 1, 2019 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. See Note 5 (“Leases”) for further discussion.

In February 2018, the FASB issued an ASU, “Reclassification of Certain Tax Effects From Accumulated Comprehensive Income”. The new standard gives companies the option to reclassify stranded tax effects caused by the newly-enacted US Tax Cuts and Jobs Act (“TCJA”) from accumulated other comprehensive income (“AOCI”) to retained earnings. The new standard became effective for Nielsen on January 1, 2019. Nielsen is electing to not reclassify stranded income tax effects of the TCJA from AOCI to retained earnings.

~~In June 2016,~~Effective January 1, 2020, the ~~FASB issued an~~Company adopted ASU, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The standard significantly changes how entities ~~will~~ measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard ~~will replace today’s~~replaced the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities ~~will be~~are required to record allowances rather than reduce the carrying amount ~~as they do today~~ under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. ~~The~~Upon adoption, this new standard did not have a significant impact on Nielsen’s consolidated balance sheets and statements of operations.

In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), which amends the current disclosure requirements regarding defined benefit pensions and other post retirement plans, and allows for the removal of certain disclosures, while adding certain new disclosure requirements. This standard is effective for fiscal years beginning after December 15, 2020 and allows for early adoption. Nielsen does not expect this new standard to have a significant impact on its disclosures.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which amends and aims to simplify accounting disclosure requirements regarding a number of topics including: intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, ~~within those~~amongst other improvements. This standard is effective for fiscal years beginning after December 15, ~~2019.~~2020 and allows for early adoption. Nielsen is ~~currently~~ assessing the impact ~~the adoption~~ of this ~~ASU~~new standard on its consolidated balance sheets, statements of operations and its future disclosures.

Reference Rate Reform-Facilitation of the Effects of Reference Rate Reform on Financial Reporting

On March 12, 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASC 848 contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The provisions of ASC 848 must be applied at a Topic, Subtopic or Industry Subtopic for all transactions other than derivatives, which may be applied at a hedging relationship level. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will ~~have~~be based matches the index on the ~~Company’s condensed consolidated financial statements~~corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product or service to a customer, which generally occurs over time. Substantially all of the Company’s customer contracts are non-cancelable and non-refundable.

The following is a description of principal activities, by reportable segment, from which the Company generates its revenues.

Revenue from the Connect segment consists primarily of measurement services, which include ~~our~~the Company’s core tracking and scan data (primarily transactional measurement data and consumer behavior information) to businesses in the consumer packaged goods industry. Nielsen’s data is used by its clients to measure their market share, tracking billions of sales transactions per month in retail outlets around the world. Revenues for these services are recognized over the period during which the performance obligations are satisfied as the customer receives and consumes the benefits provided by the Company and control of the services are transferred to the customer.

The Company also provides consumer intelligence and analytical services that help clients make smarter business decisions throughout their product development and marketing cycles. The Company’s performance under these arrangements do not create an asset with an alternative use to the company and generally include an enforceable right to payment for performance completed to date, as such, revenue for these services is typically recognized over time. Revenue for contracts that do not include an enforceable right to payment for performance completed to date is recognized at a point in time when the performance obligation is satisfied, generally upon delivery of the services, and when control of the service is transferred to the customer.

Revenue from ~~our~~Nielsen’s Media segment is primarily generated from television, radio, digital and mobile audience measurement services and analytics which are used by the Company’s media clients to establish the value of airtime and more effectively schedule and promote their programming and the Company’s advertising clients to plan and optimize their spending. As the customer simultaneously receives and consumes the benefits provided by the Company’s performance, revenues for these services are recognized over the period during which the performance obligations are satisfied and control of the service is transferred to the customer.

The Company enters into cooperation arrangements with certain customers, under which the customer provides Nielsen with its data in exchange for Nielsen’s services. Nielsen records these transactions at fair value, which is determined based on the fair value of goods or services received, if reasonably estimable. If not reasonably estimable, the Company considers the fair value of the goods or services surrendered.

The table below sets forth the Company’s revenue disaggregated within each segment by major product offerings and timing of revenue recognition.

(IN MILLIONS) (UNAUDITED)		Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
		2019		2018		2019		2018		2020		2019		2020		2019
Connect Segment
Measure	$	546	$	560	$	1,085	$	1,123	$	495	$	546	$	1,005	$	1,085
Predict/Activate		226		240		424		463		190		226		397		424
Connect	$	772	$	800	$	1,509	$	1,586	$	685	$	772	$	1,402	$	1,509

Media Segment
Audience Measurement	$	622	$	601	$	1,227	$	1,197	$	603	$	622	$	1,218	$	1,227
Plan/Optimize		234		246		455		474		208		234		435		455
Media	$	856	$	847	$	1,682	$	1,671	$	811	$	856	$	1,653	$	1,682
Total	$	1,628	$	1,647	$	3,191	$	3,257	$	1,496	$	1,628	$	3,055	$	3,191

Timing of revenue recognition
Products transferred at a point in time	$	145	$	157	$	276	$	275	$	147	$	145	$	284	$	276
Products and services transferred over time		1,483		1,490		2,915		2,982		1,349		1,483		2,771		2,915
Total	$	1,628	$	1,647	$	3,191	$	3,257	$	1,496	$	1,628	$	3,055	$	3,191

Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. While the Company’s rights to consideration are generally unconditional at the time its performance obligations are satisfied, under certain circumstances the related billing occurs in arrears, generally within one month of the services being rendered.

At the inception of a contract, the Company generally expects the period between when it transfers its services to its customers and when the customer pays for such services will be one year or less.

Contract liabilities relate to advance consideration received or the right to consideration that is unconditional from customers for which revenue is recognized when the performance obligation is satisfied and control transferred to the ~~customer~~.customer.

The table below sets forth the Company’s contract assets and contract liabilities from contracts with customers.

(IN MILLIONS)

June 30,

2019

December 31,

2018

June 30,

2020

December 31,

2019

Contract assets

280

210

224

218

Contract liabilities

369

359

361

346

The increase in the contract assets balance during the period was primarily due to ~~$249~~$187 million of revenue recognized that was not billed, in accordance with the terms of the contracts, as of June 30, ~~2019,~~2020, offset by ~~$179~~$176 million of contract assets included in the December 31, ~~2018~~2019 balance that were invoiced to our clients and therefore transferred to trade receivables.

The increase in the contract liability balance during the period is primarily due to ~~$287~~$293 million of advance consideration received or the right to consideration that is unconditional from customers for which revenue was not recognized during the period, offset by ~~$277~~$276 million of revenue recognized that was included in the December 31, ~~2018~~2019 contract liability balance.

As of June 30, ~~2019,~~2020, approximately ~~$6.9~~$6.5 billion of revenue is expected to be recognized from remaining performance obligations that are unsatisfied (or partially unsatisfied) for our services. This amount excludes variable consideration allocated to performance obligations related to sales and usage based royalties on licenses of intellectual property.

The Company expects to recognize revenue on approximately ~~70%~~71% of these remaining performance obligations through December 31, ~~2020,~~2021, with the balance recognized thereafter.

Incremental direct costs incurred to build the infrastructure to service new contracts are capitalized as a contract cost. As of June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the balances of such capitalized costs were ~~$14~~$10 million and ~~$18~~$11 million, respectively. These costs are typically amortized through cost of revenues over the original contract period beginning when the infrastructure to service new clients is ready for its intended use. The amortization of these costs for the three and six months ended June 30, ~~2019~~2020 was $2$1 million and $4$2 million, respectively. The amortization of these costs for the three and six months ended June 30, ~~2018~~2019 was $3$2 million and $7$4 million, respectively. There was no0 impairment loss recorded in any of the periods presented.

Nielsen is required to measure expected credit losses on trade accounts receivable. Nielsen considered the asset’s contractual life, the risk of loss and reasonable and supportable forecasts of future economicconditions. The estimate of expected credit losses reflects the risk of loss, even if management believes no loss was incurred as of the measurement date.

The following schedule represents the allowance for doubtful accounts rollforward incorporating expected credit losses as of June 30, 2020.

For the six months ended June 30, 2020, Nielsen paid cash consideration of $28 million associated with current period acquisitions, net of cash acquired. Had these 2020 acquisitions occurred as of January 1, 2020, the impact on Nielsen’s consolidated results of operations would not have been material.

For the six months ended June 30, 2019, Nielsen paid cash consideration of $60 million associated with current period acquisitions, net of cash acquired. Had these 2019 acquisitions occurred as of January 1, 2019, ~~the impact on Nielsen’s consolidated results of operations would not have been material.~~

For the six months ended June 30, 2018, Nielsen paid cash consideration of $30 million associated with both current period and previously executed acquisitions, net of cash acquired. Had these 2018 acquisitions occurred as of January 1, 2018, the impact on Nielsen’s consolidated results of operations would not have been material.

All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and Nielsen recognizes lease expense for these leases as incurred over the lease term. ROU assets represent the Company’s right to use an underlying asset during the reasonably certain lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Nielsen’s lease terms may include options to extend or terminate the lease when it is reasonably certain that Nielsen will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Nielsen uses the

rate implicit in the lease for the discount rate when determining the present value of lease payments whenever that rate is readily determinable. If the rate is not readily determinable, Nielsen uses its incremental borrowing rate, which is updated periodically, based on the information available at commencement date. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. Nielsen has lease agreements with lease and non-lease components, which are generally accounted for together.

Nielsen has operating and finance leases for real estate facilities, servers, computer hardware, and other equipment. Nielsen’s leases have remaining lease terms of 1 year to 30 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

(in millions)										Three Months Ended June 30,
(in millions)			Three Months Ended June 30, 2019			Six Months Ended June 30, 2019				2020	2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	25			$		37		$	15		$	25
Interest on lease liabilities		3					5			2			3
Total finance lease cost		28					42			17			28
Operating lease cost		36					58			32			36
Sublease income		(1		)			(2	)		(1	)		(1	)
Total lease cost	$	63			$		98		$	48		$	63

(in millions, except lease term and discount rate)	June 30, 2019				June 30, 2020			December 31, 2019
Operating leases
Operating lease right-of-use assets	$	453		$	377		$		393

Other current liabilities		111			104				110
Operating lease liabilities		418			372				370
Total operating lease liabilities	$	529		$	476		$		480

Finance leases
Property, plant and equipment, gross	$	367		$	401		$		393
Accumulated depreciation		(189	)		(238	)			(213	)
Property, plant and equipment, net		178			163				180

Other intangible assets, gross		23			23				24
Accumulated amortization		(11	)		(17	)			(13	)
Other intangible assets, net		12			6				11

Accounts payable and other current liabilities		61			43				53
Long-term debt and capital lease obligations		90			79				92
Total finance lease liabilities	$	151		$	122		$		145

					Six Months Ended June 30,
Other information					2020				2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases		(5	)		(4	)			(5	)
Operating cash flows from operating leases		(65	)		(64	)			(65	)
Financing cash flows from finance leases		(29	)		(36	)			(29	)
Right-of-use assets obtained in exchange for new finance lease liabilities		13			12				13
Right-of-use assets obtained in exchange for new operating lease liabilities		32			27				32
Weighted-average remaining lease term--finance leases	3 years				4 years		3 years
Weighted-average remaining lease term--operating leases	9 years				7 years		9 years
Weighted-average discount rate--finance leases		6.50	%		5.96	%			6.50	%
Weighted-average discount rate--operating leases		4.50	%		4.29	%			4.50	%

(in millions)	Operating Leases			Finance Leases			Operating Leases			Finance Leases
For July 1, 2019 to December 31, 2019	$	93		$	46
2020		111			48
For July 1, 2020 to December 31, 2020							$	67		$	28
2021		84			33			107			43
2022		70			18			88			28
2023		52			11			63			19
2024		35			4			46			12
2025								29			4
Thereafter		195			9			160			5
Total lease payments		640			169			560			139
Less imputed interest		(111	)		(18	)		(84	)		(17	)
Total	$	529		$	151		$	476		$	122

During the first quarter of 2020, despite the excess fair value identified in our 2019 ~~Nielsen updated its reporting structure~~impairment assessment, we determined that the significant decline in ~~a manner that changed the composition~~Nielsen’s market capitalization and impacts of the ~~Company’s reporting units. The result of this change~~COVID-19 pandemic indicated that there was combining two of our reporting units into one. Both of these reporting units were in the former Watch reportable segment. The current reporting units are Media and Connect (formerly Watch and Buy), which is the same as our reportable segments.a triggering

event for an interim assessment. As a result, we reviewed our previous forecasts and assumptions based on our projections that are subject to various risks and uncertainties, including: forecasted revenues, expenses and cash flows, including the duration and extent of ~~this change~~impact to our business from the COVID-19 pandemic, current discount rates, the reduction in ~~reporting units, Nielsen performed an~~Nielsen's market capitalization, and observable market transactions.

Based on our interim ~~goodwill~~ impairment ~~analysis during the quarter immediately prior to the change and after the change, and~~assessment as of March 31, 2020, we determined that the estimated fair values of the reporting units exceeded their carrying values (including goodwill)~~. As such,~~, thus 0 impairment was recorded. Based on our second quarter results and projections, there ~~was~~were no indicators of impairment ~~as a result~~during the second quarter of ~~this change. The Connect reporting unit's estimated fair value exceeded its carrying value by less than 10%.~~2020. Nielsen will continue to closely evaluate ~~and report on~~ any indicators of future impairments.

The table below summarizes the changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, ~~2019.~~2020.

(IN MILLIONS)	Connect		Media		Total		Connect			Media			Total
Balance, December 31, 2018	$	1,337	$	5,650	$	6,987
Balance, December 31, 2019							$	331		$	5,662		$	5,993
Acquisitions, divestitures and other adjustments		5		17		22		20			(7	)		13
Effect of foreign currency translation		8		—		8		(8	)		(14	)		(22	)
Balance, June 30, 2019	$	1,350	$	5,667	$	7,017
Balance, June 30, 2020							$	343		$	5,641		$	5,984

At June 30, ~~2019, $49~~2020, $40 million of the goodwill is expected to be deductible for income tax purposes.

	Gross Amounts				Accumulated Amortization						Gross Amounts				Accumulated Amortization
	June 30,		December 31,		June 30,			December 31,			June 30,		December 31,		June 30,			December 31,
(IN MILLIONS)	2019		2018		2019			2018			2020		2019		2020			2019
Indefinite-lived intangibles:
Trade names and trademarks	$	1,921	$	1,921	$	—		$	—		$	1,921	$	1,921	$	—		$	—
Amortized intangibles:
Trade names and trademarks		143		140		(106	)		(102	)		145		144		(113	)		(109	)
Customer-related intangibles		3,153		3,145		(1,685	)		(1,604	)		3,117		3,153		(1,844	)		(1,764	)
Covenants-not-to-compete		39		39		(38	)		(38	)		37		37		(36	)		(36	)
Content databases		168		167		(33	)		(26	)		168		168		(47	)		(40	)
Computer software		3,009		3,029		(1,635	)		(1,694	)		2,830		2,626		(1,515	)		(1,260	)
Patents and other		179		173		(134	)		(126	)		183		182		(148	)		(141	)
Total	$	6,691	$	6,693	$	(3,631	)	$	(3,590	)	$	6,480	$	6,310	$	(3,703	)	$	(3,350	)

During the second quarter of 2020, Nielsen decided to exit smaller, underperforming markets and non-core businesses, and concluded that this decision represented an impairment indicator for the long-lived assets within those markets and businesses. To the extent that the carrying value of the assets exceeded the sum of the future undiscounted cash flows, we measured an impairment charge using a discounted cash flow method for estimation of the assets’ fair value. During the second quarter of 2020 we recognized a non-cash impairment charge associated with amortizable intangibles of $37 million. This charge was primarily recorded within our Media segment.

Amortization expense associated with the above intangible assets was ~~$136~~$182 million and ~~$117~~$136 million for the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. These amounts included amortization expense associated with computer software of ~~$86~~$134 million and ~~$65~~$86 million for the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively.

Amortization expense associated with the above intangible assets was ~~$274~~$350 million and ~~$237~~$274 million for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. These amounts included amortization expense associated with computer software of ~~$173~~$255 million and ~~$133~~$173 million for the six months ended June 30, 2020 and 2019, respectively.

At June 30, 2020, the net book value of purchased software and ~~2018,~~internally developed software was $25 million and $1,290 million, respectively.

7. Changes in and Reclassification out of Accumulated Other Comprehensive Income/(Loss) by Component

The table below summarizes the changes in accumulated other comprehensive income/(loss), net of tax, by component for the six months ended June 30, ~~2019~~2020 and ~~2018.~~2019.

The table below summarizes the reclassification of accumulated other comprehensive loss by component for the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively.

~~The table below summarizes the reclassification of accumulated other comprehensive loss by component for the six months ended June 30, 2019 and 2018, respectively.~~

	Amount Reclassified from							Amount Reclassified from
	Accumulated Other							Accumulated Other
(IN MILLIONS)	Comprehensive (Income)/Loss							Comprehensive (Income)/Loss
Details about Accumulated							Affected Line Item in the							Affected Line Item in the
Other Comprehensive	Six Months Ended			Six Months Ended			Condensed Consolidated	Three Months Ended			Three Months Ended			Condensed Consolidated
Income components	June 30, 2019			June 30, 2018			Statement of Operations	June 30, 2020			June 30, 2019			Statement of Operations
Cash flow hedges
Interest rate contracts	$	(7	)	$	(1	)	Interest (income)/expense	$	8		$	(3	)	Interest (income)/expense
		2			—		(Benefit)/provision for income taxes		(2	)		1		(Benefit)/provision for income taxes
	$	(5	)	$	(1	)	Total, net of tax	$	6		$	(2	)	Total, net of tax
Amortization of Post-Employment Benefits
Actuarial loss	$	7		$	9		(a)	$	4		$	4		(a)
		(1	)		(2	)	(Benefit)/provision for income taxes		(1	)		(1	)	(Benefit)/provision for income taxes
	$	6		$	7		Total, net of tax	$	3		$	3		Total, net of tax
Total reclassification for the period	$	1		$	6		Net of tax	$	9		$	1		Net of tax

The table below summarizes the reclassification of accumulated other comprehensive loss by component for the six months ended June 30, 2020 and 2019, respectively.

~~Restructuring charges are primarily related~~In June, 2020, Nielsen announced a broad-based optimization plan to ~~programs associated with Nielsen’s plans to reduce selling, general~~drive permanent cost savings and ~~administrative expenses~~operational efficiencies, as well as ~~automation initiatives.~~to position the Company for greater profitability and growth. The Company expects the plan to be substantially completed in 2020.

Nielsen incurred $84 million of restructuring charges in the second quarter of 2020. These charges ~~primarily relate~~mostly represent severance costs related to employee separation packages. The amounts are calculated based on salary levels and past service periods. Severance costs are generally charged to earnings when planned employee terminations are approved.

A summary of the changes in the liabilities for restructuring activities is provided below:

Nielsen recorded $7$84 million and ~~$65~~$95 million in restructuring charges primarily relating to the ~~productivity~~optimization initiatives referenced above for the three and six months ended June 30, ~~2019 and 2018,~~2020, respectively.

Nielsen recorded ~~$42~~$7 million and ~~$89~~$42 million in restructuring charges ~~primarily relating to~~for the ~~productivity initiatives referenced above for the~~three and six months ended June 30, 2019, respectively, primarily related to programs associated with Nielsen’s plans to reduce selling, general and ~~2018, respectively.~~administrative expenses as well as automation initiatives. These charges primarily related to severance costs associated with employee separation packages.

Of the ~~$41~~$92 million in remaining liabilities for restructuring actions, ~~$37~~$85 million is expected to be paid within one year and is classified as a current liability within the condensed consolidated balance sheet as of June 30, ~~2019.~~2020.

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which the Company would transact, and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of ~~non-performance.~~non-performance.

The Company’s financial assets and liabilities are measured and recorded at fair value, except for equity method investments and long-term debt. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. In addition, the Company records changes in the fair value of equity investments with readily determinable fair values in net income rather than in accumulated other comprehensive income/(loss). Investments that do not have readily determinable fair values are recognized at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The adjustments related to the observable price changes will also be recognized in net ~~income.~~income.

The following table summarizes the valuation of the Company’s material financial assets and liabilities measured at fair value on a recurring basis as of June 30, ~~2019~~2020 and December 31, ~~2018:~~2019:

	June 30,							June 30,
(IN MILLIONS)	2019		Level 1		Level 2		Level 3	2020		Level 1		Level 2		Level 3
Assets:
Plan assets for deferred compensation ⁽¹⁾		26		26	—		—	$	25	$	25	—		—
Investment in mutual funds ⁽²⁾		2		2	—		—		2		2	—		—
Interest rate swap arrangements ⁽³⁾		2		—	2		—		—		—	—		—
Total	$	30	$	28	$	2	—	$	27	$	27	$	—	—
Liabilities:
Interest rate swap arrangements ⁽³⁾	$	22	—		$	22	—	$	67	—		$	67	—
Deferred compensation liabilities ⁽⁴⁾		26		26	—		—		25		25	—		—
Total	$	48	$	26	$	22	—	$	92	$	25	$	67	—

	December 31,							December 31,
	2018		Level 1		Level 2		Level 3	2019		Level 1		Level 2		Level 3
Assets:
Plan assets for deferred compensation ⁽¹⁾		25		25	—		—	$	26	$	26	—		—
Investment in mutual funds ⁽²⁾		2		2	—		—		2		2	—		—
Interest rate swap arrangements ⁽³⁾		23		—	23		—		—		—	—		—
Total	$	50	$	27	23		—	$	28	$	28	—		—
Liabilities:
Interest rate swap arrangements ⁽³⁾	$	3	—		$	3	—	$	22	—		$	22	—
Deferred compensation liabilities ⁽⁴⁾		27		27	—		—		26		26	—		—
Total	$	30	$	27	$	3	—	$	48	$	26	$	22	—

Nielsen primarily uses interest rate swap derivative instruments to manage the risk that changes in interest rates will affect the cash flows of its underlying debt obligations.

To qualify for hedge accounting, the hedging relationship must meet several conditions with respect to documentation, probability of occurrence, hedge effectiveness and reliability of measurement. Nielsen documents the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions as well as the hedge effectiveness assessment, both at the hedge inception and on an ongoing basis. Nielsen recognizes all derivatives at fair value either as assets or liabilities in the consolidated balance sheets and changes in the fair values of such instruments are recognized currently in earnings unless specific hedge accounting criteria are met. If specific cash flow hedge accounting criteria are met, Nielsen recognizes the changes in fair value of these instruments in accumulated other comprehensive income/(loss).

Nielsen manages exposure to possible defaults on derivative financial instruments by monitoring the concentration of risk that Nielsen has with any individual bank and through the use of minimum credit quality standards for all counterparties. Nielsen does not require collateral or other security in relation to derivative financial instruments. A derivative contract entered into between Nielsen or certain of its subsidiaries and a counterparty that was also a lender under Nielsen’s senior secured credit facilities at the time the derivative contract was entered into is guaranteed under the senior secured credit facilities by Nielsen and certain of its subsidiaries (see Note 10 - – (“Long-term Debt and Other Financing ~~Arrangements~~Arrangements”) for more information). Since it is Nielsen’s policy to only enter into derivative contracts with banks of internationally acknowledged standing, Nielsen considers the counterparty risk to be remote.

It is Nielsen’s policy to have an International Swaps and Derivatives Association (“ISDA”) Master Agreement established with every bank with which it has entered into any derivative contract. Under each of these ISDA Master Agreements, Nielsen agrees to settle only the net amount of the combined market values of all derivative contracts outstanding with any one counterparty should that counterparty default. Certain of the ISDA Master Agreements contain cross-default provisions where if the Company either defaults in payment obligations under its credit facility or if such obligations are accelerated by the lenders, then the Company could also be declared in default on its derivative obligations. At June 30, ~~2019,~~2020, Nielsen had no material exposure to potential economic losses due to counterparty credit default risk or cross-default risk on its derivative financial instruments.

During the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, Nielsen recorded a net loss of ~~zero~~$3 million and ~~$1 million,~~0, respectively, associated with foreign currency derivative financial instruments within foreign currency exchange transactions losses, net in its condensed consolidated statements of operations. As of June 30, ~~2019~~2020 and December 31, ~~2018~~2019 the notional amount of the outstanding foreign currency derivative financial instruments were ~~$135~~$111 million and ~~$76~~$125 million, respectively.

Nielsen is exposed to cash flow interest rate risk on the floating-rate U.S. Dollar and Euro Term Loans, and uses floating-to-fixed interest rate swaps to hedge this exposure. For these derivatives, Nielsen reports the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income/(loss) and reclassifies it into earnings in the same period or periods in which the hedged transaction affects earnings, and within the same income statement line item as the impact of the hedged transaction.

In May 2019, the Company entered into a $150 million aggregate notional amount four-year forward interest rate swap agreement with a starting date of July 9, 2019. This agreement fixes the LIBOR-related portion of interest rates of a corresponding amount of the Company’s variable-rate-debt at an average rate of 1.82%. This derivative has been designated as an interest rate cash flow hedge.

In March 2019, the Company entered into a $150 million aggregate notional amount four-year forward interest rate swap agreement with a starting date of April 9, 2019. This agreement fixes the LIBOR-related portion of interest rates of a corresponding amount of the Company’s variable-rate-debt at an average rate of 2.26%. This derivative has been designated as an interest rate cash flow hedge.

In March 2019, the Company entered into a $250 million aggregate notional amount four-year forward interest rate swap agreement with a starting date of June 9, 2019. This agreement fixes the LIBOR-related portion of interest rates of a corresponding amount of the Company’s variable-rate-debt at an average rate of 2.07%. This derivative has been designated as an interest rate cash flow hedge.

As of June 30, ~~2019,~~2020, the Company had the following outstanding interest rate swaps utilized in the management of its interest rate risk:

	Notional Amount		Maturity Date	Currency		Notional Amount	Maturity Date	Currency
Interest rate swaps designated as hedging instruments
US Dollar term loan floating-to-fixed rate swaps	$	150,000,000	July 2019	US Dollar	$	250,000,000	July 2020	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	250,000,000	July 2020	US Dollar	$	250,000,000	July 2020	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	250,000,000	July 2020	US Dollar	$	250,000,000	October 2020	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	250,000,000	October 2020	US Dollar	$	250,000,000	October 2021	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	250,000,000	October 2021	US Dollar	$	250,000,000	July 2022	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	250,000,000	July 2022	US Dollar	$	150,000,000	April 2023	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	150,000,000	April 2023	US Dollar	$	250,000,000	May 2023	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	250,000,000	May 2023	US Dollar	$	250,000,000	June 2023	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	250,000,000	June 2023	US Dollar	$	150,000,000	July 2023	U.S. Dollar
US Dollar term loan floating-to-fixed rate swaps	$	150,000,000	July 2023	US Dollar

The effect of cash flow hedge accounting on the condensed consolidated statement of operations for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019 respectively:

	Interest Expense				Interest Expense				Interest Expense					Interest Expense
	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,					Six Months Ended June 30,
(IN MILLIONS)	2019		2018		2019		2018		2020			2019		2020			2019
Interest expense (Location in the consolidated statement of operations in which the effects of cash flow hedges are recorded)	$	100	$	100	$	199	$	196	$	91		$	100	$	185		$	199
Amount of gain/(loss) reclassified from accumulated other comprehensive income into income, net of tax	$	2	$	1	$	5	$	1	$	(6	)	$	2	$	(7	)	$	5
Amount of loss reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring, net of tax	$	—	$	—	$	—	$	��	$	—		$	—	$	—		$	—

Nielsen expects to recognize approximately $2$27 million of net pre-tax losses from accumulated other comprehensive loss to interest expense in the next 12 months associated with its interest-related derivative financial instruments.

The fair values of the Company’s derivative instruments as of June 30, ~~2019~~2020 and December 31, ~~2018~~2019 were as follows:

June 30, 2019

December 31, 2018

June 30, 2020

December 31, 2019

Derivatives Designated as

Hedging Instruments

Prepaid Expense

Other

Prepaid Expense

Other

and Other Current

Other Non-Current

Other Current

Other Non-Current

Non-Current

and Other Current

Other Current

Other Non-Current

Other Current

Non-Current

(IN MILLIONS)

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

Interest rate swaps

—

The pre-tax effect of derivative instruments in cash flow hedging relationships for the three months ended June 30, ~~2019~~2020 and ~~2018~~2019 was as follows:

							Amount of (Gain)/Loss											Amount of (Gain)/Loss
	Amount of (Gain)/Loss						Reclassified from AOCI						Amount of (Gain)/Loss					Reclassified from AOCI
	Recognized in OCI					Location of Loss	into Income						Recognized in OCI				Location of Loss	into Income
	(Effective Portion)					Reclassified from AOCI	(Effective Portion)						(Effective Portion)				Reclassified from AOCI	(Effective Portion)
Derivatives in Cash Flow	Three Months Ended					into Income (Effective	Three Months Ended						Three Months Ended				into Income (Effective	Three Months Ended
Hedging Relationships	June 30,					Portion)	June 30,						June 30,				Portion)	June 30,
(IN MILLIONS)	2019		2018				2019			2018			2020		2019			2020		2019
Interest rate swaps	$	25	$	(6	)	Interest expense	$	(3	)	$	(1	)	$	6	$	25	Interest expense	$	8	$	(3	)

The pre-tax effect of derivative instruments in cash flow hedging relationships for the six months ended June 30, ~~2019~~2020 and ~~2018~~2019 was as follows:

							Amount of (Gain)/Loss											Amount of (Gain)/Loss
	Amount of (Gain)/Loss						Reclassified from AOCI						Amount of (Gain)/Loss					Reclassified from AOCI
	Recognized in OCI					Location of Loss	into Income						Recognized in OCI				Location of Loss	into Income
	(Effective Portion)					Reclassified from AOCI	(Effective Portion)						(Effective Portion)				Reclassified from AOCI	(Effective Portion)
Derivatives in Cash Flow	Six Months Ended					into Income	Six Months Ended						Six Months Ended				into Income	Six Months Ended
Hedging Relationships	June 30,					(Effective Portion)	June 30,						June 30,				(Effective Portion)	June 30,
(IN MILLIONS)	2019		2018				2019			2018			2020		2019			2020		2019
Interest rate swaps	$	33	$	(21	)	Interest expense	$	(7	)	$	(1	)	$	53	$	33	Interest expense	$	10	$	(7	)

~~The Company is required, on a nonrecurring basis,~~During the second quarter of 2020, Nielsen concluded that the decision to ~~adjust~~exit smaller, underperforming markets and non-core businesses was an impairment indicator for the long-lived assets within those exits. Where the carrying value of the assets exceeded the sum of the future undiscounted cash flows, we measured an impairment charge using a discounted cash flow method for ~~certain~~estimation of the assets’ fair value. During the second quarter of 2020 we recognized a pre-tax non-cash impairment charge associated with long- lived assets ~~using fair value measurements. The Company’s equity method investments, and non-financial assets, such as goodwill,~~of $45 million, including $37 million of definite-lived intangible assets and $8 million of property, plant and ~~equipment, are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment charge is recognized.~~equipment.

The Company did not measure any material non-financial assets or liabilities at fair value during the six months ended June 30, ~~2019.~~2020.

	June 30, 2019							December 31, 2018							June 30, 2020							December 31, 2019
	Weighted							Weighted							Weighted							Weighted
	Interest			Carrying		Fair		Interest			Carrying		Fair		Interest			Carrying		Fair		Interest			Carrying		Fair
(IN MILLIONS)	Rate			Amount		Value		Rate			Amount		Value		Rate			Amount		Value		Rate			Amount		Value
$1,125 million Senior secured term loan (LIBOR based variable rate of 4.16%) due 2023				$	1,099		1,090				$	1,112		1,100
$2,303 million Senior secured term loan (LIBOR based variable rate of 4.41%) due 2023					2,274		2,256					2,285		2,215
$1,125 million Senior secured term loan (LIBOR based variable rate of 1.93%) due 2023																		$	1,072		1,056				$	1,086		1,079
$2,303 million Senior secured term loan (LIBOR based variable rate of 2.18%) due 2023																			2,252		2,174					2,263		2,273
€545 million Senior secured term loan (Euro LIBOR based variable rate of 2.50%) due 2023					615		615					623		619					601		594					603		606
€420 million Senior secured term loan (Euro LIBOR based variable rate of 3.75%) due 2025																			459		468				—		—
$550 million Senior secured term loan (LIBOR based variable rate of 4.75%) due 2025																			534		544				—		—
$850 million senior secured revolving credit facility (Euro LIBOR or LIBOR based variable rate) due 2023					296		292				—		—						165		162				—		—
Total senior secured credit facilities (with weighted-average interest rate)		4.12	%		4,284		4,253		4.09	%		4,020		3,934		2.81	%		5,083		4,998		3.52	%		3,952		3,958
$800 million 4.50% senior debenture loan due 2020					798		801					797		792
$625 million 5.50% senior debenture loan due 2021					622		628					621		621
$800 million 4.500% senior debenture loan due 2020																			—		—					799		802
$425 million 5.500% senior debenture loan due 2021																			424		425					622		629
$2,300 million 5.00% senior debenture loan due 2022					2,292		2,294					2,290		2,179					2,295		2,290					2,293		2,312
$500 million 5.00% senior debenture loan due 2025					497		492					496		472					497		492					497		516
Total debenture loans (with weighted-average interest rate)		5.22	%		4,209		4,215		5.22	%		4,204		4,064		5.29	%		3,216		3,207		5.22	%		4,211		4,259
Other loans					1		1					1		1					—		—					1		1
Total long-term debt		4.67	%		8,494		8,469		4.67	%		8,225		7,999		3.77	%		8,299		8,205		4.40	%		8,164		8,218
Finance lease and other financing obligations					151							161							122							145
Bank overdrafts					—							1
Total debt and other financing arrangements					8,645							8,387							8,421							8,309
Less: Current portion of long-term debt, finance lease and other financing obligations and other short-term borrowings					412							107							291							914
Non-current portion of long-term debt and finance lease and other financing obligations				$	8,233						$	8,280						$	8,130						$	7,395

The fair value of the Company’s long-term debt instruments was based on the yield on public debt where available or current borrowing rates available for financings with similar terms and maturities and such fair value measurements are considered Level 1 or Level 2 in nature, respectively.

In June 2020, Nielsen entered into a Credit Agreement that provides for: (i) a new dollar term loan facility, the “Dollar Term B-5 Loans” having commitments in an aggregate principal amount of $550 million and (ii) a new euro term loan facility, the “Euro Term B-3 Loans” in an aggregate principal amount of €420 million. On June 4, 2020, Nielsen borrowed the full amount of the Dollar Term B-5 Loans and the Euro Term B-3 Loans.

The proceeds of the Dollar Term B-5 Loans and Euro Term B-3 Loans were used to redeem all of the $800 million outstanding aggregate principal amount of their 4.500% Notes due 2020 and redeem $200 million of the $625 million outstanding aggregate principal amount of its 5.500% Senior Notes due 2021. The partial redemption of the 5.500% Notes resulted in $425 million aggregate principal amount of 2021 Notes remaining outstanding.

(subject to additional limitations in the Credit Agreement) on or prior to the date that is 91 days prior to October 4, 2023, on October 4, 2023.

The Dollar Term B-5 Loans bear interest at a rate per annum equal to, at the election of Nielsen, (i) a base rate or eurocurrency rate, plus (ii) an applicable margin of 2.75%, in the case of base rate loans, and 3.75%, in the case of eurocurrency rate loans. The Euro Term B-3 Loans bear interest at a rate per annum equal to (i) a eurocurrency rate plus (ii) an applicable margin of 3.75%.

The Credit Agreement contains substantially the same affirmative and negative covenants as those of the Fifth Amended and Restated Credit Agreement, dated as of June 29, 2018 (as amended, restated, supplemented, replaced or otherwise modified from time to time), however, the Credit Agreement expressly permits actions in connection with and resulting in the disposition of Nielsen Global Connect, including by way of a spin-off of the Connect Business, as previously announced by Nielsen. The obligations under the Credit Agreement are secured on a pari passu basis with the obligations under the Existing Credit Agreement.

Nielsen wrote-off certain previously capitalized deferred financing fees of $1 million associated with the June 2020 debt refinancing and capitalized certain costs in connection with the refinancing of $9 million.

(IN MILLIONS)
For July 1, 2019 to December 31, 2019	$	320
2020		854
For July 1, 2020 to December 31, 2020			$	197
2021		702		504
2022		2,400		2,399
2023		3,719		3,713
2024		—		10
2025(1)				1,476
Thereafter		499		—
	$	8,494	$	8,299

In July, 2020, Nielsen entered into Amendment No. 1 (“Amendment No. 1”), relating to its Credit Agreement, dated as of June 4, 2020. Pursuant to Amendment No. 1, the Company incurred new Euro Term B-3 Loans in an aggregate principal amount of €240 million (the “Incremental Euro Term B-3 Loans”), thereby increasing the outstanding amount of existing Euro Term B-3 Loans under the 2020 Credit Agreement to approximately €660 million. The proceeds of the Incremental Euro Term B-3 Loans were used by Nielsen to prepay the €545 million Senior secured term loan due 2023 under the Existing Credit Agreement in an aggregate principal amount of €240 million and all accrued interest and expenses.

The Incremental Euro Term B-3 Loans are subject to the same terms, maturity date and interest rate as the existing Euro Term B-3 Loans. The Incremental Euro Term B-3 Loans are subject to customary affirmative and negative covenants and events of default.

In July, 2020, Nielsen entered into an Amendment Agreement (the “Amendment Agreement”) amending and restating the Fifth Amended and Restated Credit Agreement, dated as of June 29, 2018 (as amended before July 21, 2020, the “Existing Credit Agreement”). The modifications in the agreement primarily conform the covenants and certain other terms to the terms of the 2020 Credit Agreement. The amended agreement expressly permits actions in connection with and resulting in the disposition of Nielsen Global Connect, including by way of a spin-off of the Connect Business, as previously announced by Nielsen.

On January 31, 2013, the Company’s Board of Directors (the “Board”) adopted a cash dividend policy to pay quarterly cash dividends on its outstanding common stock. The following table represents the cash dividends declared by the Board and paid to shareholders for the years ended December 31, ~~2018~~2019 and the six months ended June 30, ~~2019,~~2020, respectively.

On November 3, 2019 the Board approved a plan to reduce the quarterly cash dividend, with the goal of strengthening Nielsen’s balance sheet and providing added flexibility to invest for growth. On July ~~18, 2019,~~16, 2020, the Board declared a cash dividend of ~~$0.35~~$0.06 per share on Nielsen’s common stock. The dividend is payable on September ~~5, 2019~~3, 2020 to shareholders of record at the close of business on August ~~22, 2019.~~20, 2020.

The dividend policy and the payment of future cash dividends are subject to the discretion of the Board.

Nielsen’s Board approved a share repurchase program, as included in the below table, for up to $2 billion in the aggregate of our outstanding common stock. The primary purpose of the program is to return value to shareholders and to mitigate dilution associated with Nielsen’s equity compensation plans.

Board Approval	Share Repurchase Authorization ($ in millions)		Share Repurchase Authorization ($ in millions)
July 25, 2013	$	500	$	500
October 23, 2014	$	1,000		1,000
December 11, 2015	$	500		500
Total Share Repurchase Authorization	$	2,000	$	2,000

Repurchases under this program will be made in accordance with applicable securities laws from time to time ~~in the open market or otherwise~~and depending on Nielsen’s evaluation of market conditions and other factors. This program has been executed within the limitations of the authority granted Nielsen on August 6, 2015 (which will expire on August 6, 2020) and which has been extended by ~~Nielsen’s shareholders.~~the authority approved by Nielsen's shareholders at its annual general meeting of shareholders held on May 12, 2020, which authority will expire on May 12, 2025.

As of June 30, ~~2019,~~2020, there were 39,426,521 shares of the Company’s common stock purchased at an average price of $44.95 per share (total consideration of approximately $1,772 million) under this program. There were no0 share repurchases for the six months ended June 30, ~~2019.~~2020.

The effective tax rates before discrete tax items for the three months ended June 30, 2020 and 2019 were 62% ($40 million tax benefit) and ~~2018 were 15% and 36%~~31% ($46 million tax expense), respectively. The tax rate for the three months ended June 30, ~~2019~~2020 was ~~lower~~higher than the statutory rate as a result of ~~the favorable impact of certain financing activities and the release of certain tax contingencies, offset by~~ the impact of tax rate differences in other jurisdictions where the Company files tax returns, BEAT tax, and ~~audit settlements.~~withholding taxes. The tax rate for the three months ended June 30, ~~2018~~2019 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where the Company files tax returns offset by the favorable impact of certain financing activities. ~~The principal reason for~~For the ~~decrease~~three months ended June 30, 2020, the total tax benefit was $38 million. For the three months ended June 30, 2019, the total tax expense was $23 million which includes the favorable impact of releasing certain tax contingencies and other discrete items recognized in the second ~~quarter effective tax rate in 2019 when compared to 2018 was due to tax reform enacted in the United States as well as the release of certain tax contingencies.~~quarter.

The effective tax rates before discrete tax items for the six months ended June 30, 2020 and 2019 were 62% ($41 million tax benefit) and ~~2018 were 24% and 35%~~31% ($71 million tax expense), respectively. The tax rate for the six months ended June 30, 2020 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where the Company files tax returns, Base Erosion and Anti-Abuse Tax (“BEAT tax”), and withholding taxes offset by reversal of valuation allowance related to certain loss carryforwards. The tax rate for the six months ended June 30, 2019 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where ~~Nielsen files tax returns, and audit settlements, offset by~~ the favorable impact of certain financing activities and the release of certain tax contingencies. The tax rate for the six months ended June 30, 2018 was higher than the statutory rate primarily as a result of the impact of tax rate differences in other jurisdictions where NielsenCompany files tax returns offset by the favorable impact of certain financing activities. ~~The principal reason for~~For the ~~decrease~~six months ended June 30, 2020, the total tax benefit was $27 million which includes the impact of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and other discrete items recognized in the ~~first half effective~~period. For the six months ended June 30, 2019, the total tax ~~rate in 2019 when compared to 2018~~expense was ~~due to tax reform enacted within~~$55 million which includes the ~~United States as well as the release~~favorable impact of releasing certain tax ~~contingencies.~~contingencies and other discrete items recognized in the period.

The estimated liability for unrecognized tax benefits as of December 31, ~~2018~~2019 was ~~$572~~$164 million. ~~The Company expects to conclude a number of audits in multiple jurisdictions throughout~~If the ~~remainder~~Company’s tax positions are favorably sustained by the taxing authorities, the reversal of the ~~year. Various statutes of limitation are also due to expire. This is likely to result in a decrease in these~~underlying liabilities ~~as well as a reduction in~~would reduce the Company’s effective tax rate in ~~the~~ future ~~periods when such matters are concluded.~~periods.

The Company files numerous consolidated and separate income tax returns in the U.S. and in many state and foreign jurisdictions. ~~With few exceptions the~~The Company is no longer subject to U.S. Federal income tax examination for ~~2005~~2015 and prior periods. In addition, the Company has subsidiaries in various states, provinces and countries that are currently under audit for years ranging from ~~2004~~2007 through ~~2017. During the second quarter of 2019, ongoing audits were effectively settled in certain tax jurisdictions and the impact was recorded accordingly in the second quarter financial statements.~~2019.

To date, the Company is not aware of any material adjustments not already accrued related to any of the current Federal, state or foreign audits under examination.

In August 2018, a putative shareholder class action lawsuit was filed in the Southern District of New York, naming as defendants Nielsen, former Chief Executive Officer Dwight Mitchell Barns, and former Chief Financial Officer Jamere Jackson. Another lawsuit, which ~~alleges~~alleged similar facts but also ~~names~~named other ~~defendants, including former Chief Operating Officer Stephen Hasker,~~Nielsen officers, was filed in the Northern District of Illinois in September 2018 and transferred to the Southern District of New York in December 2018. ~~These lawsuits assert~~The actions were consolidated on April 22, 2019, and the Public Employees’ Retirement System of Mississippi was appointed lead plaintiff for the putative class. The operative complaint was filed on September 27, 2019, and asserts violations of certain provisions of the Securities Exchange Act of 1934, as amended, based on allegedly false and materially misleading statements relating to the outlook of Nielsen’s Buy (now “Connect”) segment, ~~the Company’s~~Nielsen’s preparedness for changes in global data privacy laws and Nielsen’s reliance on third-party data. ~~The actions were consolidated on April 22, 2019, and the Public Employees’ Retirement System of Mississippi was appointed lead plaintiff for the putative class.An amended complaint was filed on June 21, 2019, and the Company anticipates filing a motion~~Nielsen moved to dismiss the ~~suit in the forthcoming months.~~operative complaint on November 26, 2019. Briefing of Nielsen’s motion concluded on February 26, 2020. In addition, in January 2019, a shareholder derivative lawsuit was filed in New York Supreme Court against a number of Nielsen’s current and former officers and directors. The derivative lawsuit alleges that the named officers and directors breached their fiduciary duties to ~~Nielsen~~the Company in connection with factual assertions substantially similar to those in the putative class action ~~complaints.~~complaint. The derivative lawsuit further alleges that certain officers and directors engaged in trading Nielsen stock based on material, nonpublic information. By agreement dated June 26, 2019, the derivative lawsuit has been stayed pending resolution of ~~the Company’s~~Nielsen’s motion to dismiss the aforementioned securities litigation. Nielsen intends to defend these lawsuits vigorously. Based on currently available information, Nielsen believes that the Company has meritorious defenses to these actions and that their resolution is not likely to have a material adverse effect on Nielsen’s business, financial position, or results of operations.

Nielsen is subject to litigation and other claims in the ordinary course of business, some of which include claims for substantial sums. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be determined, the Company does expect that the ultimate disposition of these matters will not have a material adverse effect on its operations or financial condition. However, depending on the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect the Company’s future results of operations or cash flows in a particular period.

In July 2019, the Company amended its Second Amended and Restated Master Services Agreement (the “MSA”), dated as of October 1, 2017 and effective as of January 1, 2017 (the “Effective Date”), with Tata America International Corporation and Tata Consultancy Services Limited (jointly, “TCS”) by executing Amendment Number One (the “Amendment”) with TCS, dated as of July 1, 2019 and effective as of January 1, 2019 (the “Amendment Effective Date”). The Amendment reduces the amount of services Nielsen has committed to purchase from TCS from the Amendment Effective Date through the remaining term of the MSA (the “Minimum Commitment”) to $1.413 billion, including a commitment to purchase at least $275 million in services during 2019, at

least $250 million in services during 2020, $184.3 million in services per year from 2021 through 2024, and $137.8 million in services in 2025 (in each of the foregoing cases, the “Annual Commitment”). TCS’s charges under existing and future statements of work (“SOW”) pursuant to the MSA will continue to be credited against the Minimum Commitment and the Annual Commitment and the occurrence of certain events, some of which also provide Nielsen with the right to terminate the Agreement or SOWs, as applicable, will continue to be available to reduce the Minimum and Annual Commitment Amounts as they occur. The parties also agreed to certain other commercial terms. However, the other material terms of the MSA as reflected in the MSA and as previously disclosed remain unchanged.

The Company aligns its operating segments in order to conform to management’s internal reporting structure, which is reflective of service offerings by industry. ~~Prior to February 2019, Management~~Operating segments are aggregated ~~such operating segments~~ into ~~two~~2 reporting segments: ~~what consumers buy~~Nielsen Global Connect (“~~Buy”~~Connect”), consisting principally of market research information and analytical services; and ~~what consumers read, watch and listen to~~Nielsen Global Media (“~~Watch”~~Media”), consisting principally of television, radio, online and mobile audience and advertising measurement and corresponding analytics.

In February 2019, Nielsen realigned its business segments from Buy and Watch to Nielsen Global Connect (“Connect”) and Nielsen Global Media (“Media”). Each segment operates as a complete unit—from the conception of a product, through the collection of the data, into the technology and operations, all the way to the data being sold and delivered to the client. These changes better align Nielsen’s external view to its go-forward internal view. The Company’s reportable segments are stated on the new basis and such changes were retrospectively applied. The impact of these changes did not have a material impact on Nielsen’s condensed consolidated financial statements or segment results.

Corporate consists principally of unallocated items such as certain facilities and infrastructure costs as well as intersegment eliminations. Certain corporate costs, other than those described above, including those related to selling, finance, legal, human resources, and information technology systems, are considered operating costs and are allocated to the Company’s segments based on either the actual amount of costs incurred or on a basis consistent with the operations of the underlying segment. Information with respect to the operations of each of Nielsen’s business segments is set forth below based on the nature of the services offered and geographic areas of operations.

(IN MILLIONS)	Connect		Media		Corporate				Total		Connect			Media		Corporate				Total
Three Months Ended June 30, 2019
Three Months Ended June 30, 2020
Revenues	$	772	$	856	$		—		$	1,628	$	685		$	811	$		—		$	1,496
Operating income/(loss)												(36	)		120		(56		)		28
Depreciation and amortization	$	55	$	128	$	2			$	185		66			156		2				224
Impairment of other long-lived assets												4			41		—				45
Restructuring charges	$	4	$	3	$	5			$	12		55			25		4				84
Share-based compensation expense	$	4	$	3	$	4			$	11		1			4		6				11
Other items⁽¹⁾	$	—	$	—	$	13			$	13		1			—		7				8
Operating income/(loss)	$	46	$	237	$	(34		)	$	249
Business segment income/(loss)⁽²⁾	$	109	$	371	$	(10		)	$	470
Total assets as of June 30, 2019	$	5,560	$	9,822	$	206			$	15,588
Separation-related costs⁽²⁾												—			—		26				26
Business segment income/(loss)⁽³⁾											$	91		$	346	$	(11		)	$	426
Total assets as of June 30, 2020											$	4,481		$	9,457	$	184			$	14,122

(IN MILLIONS)
Three Months Ended June 30, 2018
Three Months Ended June 30, 2019
Revenues	$	800	$	847	$		—		$	1,647	$	772	$	856	$		—		$	1,628
Operating income/(loss)												46		237		(34		)		249
Depreciation and amortization	$	54	$	106	$	2			$	162		55		128		2				185
Restructuring charges	$	55	$	5	$	5			$	65		4		3		5				12
Share-based compensation expense	$	3	$	2	$	2			$	7		4		3		4				11
Other items⁽¹⁾	$	—	$	—	$	6			$	6		—		—		13				13
Operating income/(loss)	$	1	$	252	$	(25		)	$	228
Business segment income/(loss)⁽²⁾⁽³⁾	$	113	$	365	$	(10		)	$	468	$	109	$	371	$	(10		)	$	470
Total assets as of December 31, 2018	$	5,416	$	9,647	$	116			$	15,179
Total assets as of December 31, 2019											$	4,376	$	9,675	$	268			$	14,319

(IN MILLIONS)	Connect		Media		Corporate			Total		Connect			Media		Corporate			Total
Six Months Ended June 30, 2019
Six Months Ended June 30, 2020
Revenues	$	1,509	$	1,682	$	—		$	3,191	$	1,402		$	1,653	$	—		$	3,055
Operating income/(loss)											(51	)		311		(134	)		126
Depreciation and amortization	$	110	$	251	$	3		$	364		131			303		4			438
Impairment of other long-lived assets											4			41		—			45
Restructuring charges	$	26	$	10	$	11		$	47		63			26		6			95
Share-based compensation expense	$	8	$	6	$	12		$	26		6			8		13			27
Other items ⁽¹⁾	$	—	$	—	$	25		$	25		1			—		28			29
Operating income/(loss)	$	44	$	451	$	(72	)	$	423
Business segment income/(loss) ⁽²⁾	$	188	$	718	$	(21	)	$	885
Separation-related costs⁽²⁾											—			—		61			61
Business segment income/(loss) ⁽³⁾										$	154		$	689	$	(22	)	$	821

(IN MILLIONS)
Six Months Ended June 30, 2018
Six Months Ended June 30, 2019
Revenues	$	1,586	$	1,671	$	—		$	3,257	$	1,509	$	1,682	$	—		$	3,191
Operating income/(loss)											44		451		(72	)		423
Depreciation and amortization	$	108	$	218	$	3		$	329		110		251		3			364
Restructuring charges	$	70	$	14	$	5		$	89		26		10		11			47
Share-based compensation expense	$	7	$	5	$	8		$	20		8		6		12			26
Other items ⁽¹⁾	$	—	$	—	$	18		$	18		—		—		25			25
Operating income/(loss)	$	15	$	475	$	(55	)	$	435
Business segment income/(loss) ⁽²⁾	$	200	$	712	$	(21	)	$	891
Business segment income/(loss) ⁽³⁾										$	188	$	718	$	(21	)	$	885

The following supplemental financial information is being provided for purposes of compliance with reporting covenants contained in certain debt obligations of Nielsen and its subsidiaries. The financial information sets forth for Nielsen, its subsidiaries that have issued certain debt securities (the “Issuers”) and its guarantor and non-guarantor subsidiaries, the consolidating balance sheet as of June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, and consolidating statements of operations and cash flows for the periods ended June 30, ~~2019~~2020 and ~~2018.~~2019. During the six months ended June 30, 2020, the Company re-designated certain subsidiaries between guarantor and non-guarantor. As a result, the Company adjusted the prior period condensed consolidated statement of comprehensive income and the condensed consolidated balance sheet to reflect the current year structure.

The issued debt securities are jointly and severally guaranteed on a full and unconditional basis by Nielsen, Valcon Acquisition B.V. and, subject to certain exceptions, each of the other direct and indirect 100% owned subsidiaries of Nielsen, in each case to the extent that such entities provide a guarantee under the senior secured credit facilities. The issuers are also 100% owned indirect subsidiaries of Nielsen: Nielsen Finance LLC and Nielsen Finance Co. for certain series of debt obligations, and The Nielsen Company (Luxembourg) ~~S.ar.l.~~S.à r.l., for the other series of debt obligations. Each issuer is a guarantor of the debt obligations not issued by it.

Nielsen is a holding company and does not have any material assets or operations other than ownership of the capital stock of its direct and indirect subsidiaries. All of Nielsen’s operations are conducted through its subsidiaries, and, therefore, Nielsen is expected to continue to be dependent upon the cash flows of its subsidiaries to meet its obligations. The senior secured credit facilities contain certain limitations on the ability of Nielsen to receive the cash flows of its subsidiaries.

While all subsidiary guarantees of the issued debt securities are full and unconditional, these guarantees contain customary release provisions including when (i) the subsidiary is sold or sells all of its assets, (ii) the subsidiary is declared “unrestricted” for covenant purposes, (iii) the subsidiary’s guarantee under the senior secured credit facilities is released and (iv) the requirements for discharge of the indenture have been satisfied.

										Non-																		Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated			Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	890		$	738		$	—		$	1,628		$	—		$	—		$	1,019		$	477		$	—		$	1,496
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			369			330			—			699			—			—			394			270			—			664
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		1			—			240			242			—			483			10			—			220			221			—			451
Depreciation and amortization		—			—			149			36			—			185			—			—			184			40			—			224
Impairment of goodwill and other long-lived assets																				—			—			45			—			—			45
Restructuring charges		—			—			11			1			—			12			—			—			28			56			—			84
Operating income/(loss)		(1	)		—			121			129			—			249			(10	)		—			148			(110	)		—			28
Interest income		1			201			(8	)		1			(194	)		1			1			161			—			—			(162	)		—
Interest expense		—			(93	)		(208	)		7			194			(100	)		—			(85	)		(167	)		(1	)		162			(91	)
Foreign currency exchange transaction gains/(losses), net		—			—			(1	)		—			—			(1	)		—			—			1			2			—			3
Other income/(expense), net		—			—			47			(47	)		—			—			—			(1	)		(66	)		63			—			(4	)
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries		—			108			(49	)		90			—			149			(9	)		75			(84	)		(46	)		—			(64	)
Beneft/(provision) for income taxes		—			(29	)		47			(41	)		—			(23	)
Benefit/(provision) for income taxes																				—			85			(19	)		(28	)		—			38
Equity in net income/(loss) of subsidiaries		123			33			125			—			(281	)		—			(21	)		29			83			—			(91	)		—
Equity on net income/(loss) of affiliates																				—			—			(1	)		1			—			—
Net income/(loss)		123			112			123			49			(281	)		126			(30	)		189			(21	)		(73	)		(91	)		(26	)
Less net income/(loss) attributable to noncontrolling interests		—			—			—			3			—			3			—			—			—			4			—			4
Net income/(loss) attributable to controlling interest		123			112			123			46			(281	)		123			(30	)		189			(21	)		(77	)		(91	)		(30	)
Total other comprehensive income/(loss)		(11	)		(26	)		(11	)		(2	)		41			(9	)		18			(6	)		18			39			(50	)		19
Total other comprehensive income/(loss) attributable to noncontrolling interests		—			—			—			2			—			2			—			—			—			1			—			1
Total other comprehensive income/(loss) attributable to controlling interests		(11	)		(26	)		(11	)		(4	)		41			(11	)		18			(6	)		18			38			(50	)		18
Total comprehensive income/(loss)		112			86			112			47			(240	)		117			(12	)		183			(3	)		(34	)		(141	)		(7	)
Comprehensive income/(loss) attributable to noncontrolling interest		—			—			—			5			—			5			—			—			—			5			—			5
Total comprehensive income/(loss) attributable to controlling interest	$	112		$	86		$	112		$	42		$	(240	)	$	112		$	(12	)	$	183		$	(3	)	$	(39	)	$	(141	)	$	(12	)

										Non-																		Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated			Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	899		$	748		$	—		$	1,647		$	—		$	—		$	1,057		$	571		$	—		$	1,628
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			359			339			—			698			—			—			383			316			—			699
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		1			—			235			258			—			494			1			—			250			232			—			483
Depreciation and amortization		—			—			129			33			—			162			—			—			154			31			—			185
Restructuring charges		—			—			21			44			—			65			—			—			12			—			—			12
Operating income/(loss)		(1	)		—			155			74			—			228			(1	)		—			258			(8	)		—			249
Interest income		1			165			8			3			(175	)		2			1			201			1			1			(203	)		1
Interest expense		—			(92	)		(174	)		(9	)		175			(100	)		—			(93	)		(209	)		(1	)		203			(100	)
Foreign currency exchange transaction gains/(losses), net		—			—			(1	)		(3	)		—			(4	)		—			—			(14	)		13			—			(1	)
Other income/(expense), net		—			(6	)		120			(119	)		—			(5	)		—			—			(13	)		13			—			—
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries and affiliates		—			67			108			(54	)		—			121
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries																				—			108			23			18			—			149
Benefit/(provision) for income taxes		—			(14	)		(22	)		(8	)		—			(44	)		—			(29	)		37			(31	)		—			(23	)
Equity in net income/(loss) of subsidiaries		72			27			(14	)		—			(85	)		—			123			33			63			—			(219	)		—
Equity in net income/(loss) of affiliates		—			—			—			(1	)		—			(1	)
Net income/(loss)		72			80			72			(63	)		(85	)		76			123			112			123			(13	)		(219	)		126
Less net income/(loss) attributable to noncontrolling interests		—			—			—			4			—			4			—			—			—			3			—			3
Net income/(loss) attributable to controlling interest		72			80			72			(67	)		(85	)		72			123			112			123			(16	)		(219	)		123
Total other comprehensive income/(loss)		(129	)		19			(129	)		(151	)		257			(133	)		(11	)		(26	)		(11	)		(16	)		55			(9	)
Total other comprehensive income/(loss) attributable to noncontrolling interests		—			—			—			(4	)		—			(4	)		—			—			—			2			—			2
Total other comprehensive income/(loss) attributable to controlling interests		(129	)		19			(129	)		(147	)		257			(129	)		(11	)		(26	)		(11	)		(18	)		55			(11	)
Total comprehensive income/(loss)	$	(57	)	$	99		$	(57	)	$	(214	)	$	172		$	(57	)		112			86			112			(29	)		(164	)		117
Comprehensive income/(loss) attributable to noncontrolling interest																				—			—			—			5			—			5
Total comprehensive income/(loss) attributable to controlling interest																			$	112		$	86		$	112		$	(34	)	$	(164	)	$	112

										Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	2,051		$	1,004		$	—		$	3,055
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			817			568			—			1,385
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		11			—			512			443			—			966
Depreciation and amortization		—			—			366			72			—			438
Impairment of goodwill and other long-lived assets		—			—			45			—			—			45
Restructuring charges		—			—			33			62			—			95
Operating income/(loss)		(11	)		—			278			(141	)		—			126
Interest income		1			372			16			11			(399	)		1
Interest expense		—			(176	)		(391	)		(17	)		399			(185	)
Foreign currency exchange transaction gains/(losses), net		—			—			18			(21	)		—			(3	)
Other income/(expense), net		—			(1	)		(55	)		51			—			(5	)
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries and affiliates		(10	)		195			(134	)		(117	)		—			(66	)
Benefit/(provision) for income taxes		—			53			(24	)		(2	)		—			27
Equity in net income/(loss) of subsidiaries		(38	)		82			121			—			(165	)		—
Equity in net income/(loss) of affiliates		—			—			(1	)		1			—			—
Net income/(loss)		(48	)		330			(38	)		(118	)		(165	)		(39	)
Less net income/(loss) attributable to noncontrolling interests		—			—			—			9			—			9
Net income/(loss) attributable to controlling interest		(48	)		330			(38	)		(127	)		(165	)		(48	)
Total other comprehensive income/(loss)		(107	)		(32	)		(107	)		(97	)		229			(114	)
Total other comprehensive income/(loss) attributable to noncontrolling interests		—			—			—			(7	)		—			(7	)
Total other comprehensive income/(loss) attributable to controlling interests		(107	)		(32	)		(107	)		(90	)		229			(107	)
Total comprehensive income/(loss)		(155	)		298			(145	)		(215	)		64			(153	)
Comprehensive income/(loss) attributable to noncontrolling interests		—			—			—			2			—			2
Total comprehensive income/(loss) attributable to controlling interest	$	(155	)	$	298		$	(145	)	$	(217	)	$	64		$	(155	)

										Non-																		Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated			Parent			Issuers			Guarantor			Guarantor			Elimination			Consolidated
Revenues	$	—		$	—		$	1,757		$	1,434		$	—		$	3,191		$	—		$	—		$	2,070		$	1,121		$	—		$	3,191
Cost of revenues, exclusive of depreciation and amortization shown separately below		—			—			745			649			—			1,394			—			—			776			618			—			1,394
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		2			—			474			487			—			963			2			—			494			467			—			963
Depreciation and amortization		—			—			294			70			—			364			—			—			302			62			—			364
Restructuring charges		—			—			23			24			—			47			—			—			25			22			—			47
Operating income/(loss)		(2	)		—			221			204			—			423			(2	)		—			473			(48	)		—			423
Interest income		1			385			2			3			(388	)		3			1			385			2			3			(388	)		3
Interest expense		—			(186	)		(398	)		(3	)		388			(199	)		—			(186	)		(398	)		(3	)		388			(199	)
Foreign currency exchange transaction gains/(losses), net		—			—			—			(4	)		—			(4	)		—			—			6			(10	)		—			(4	)
Other income/(expense), net		—			—			40			(35	)		—			5			—			—			(97	)		102			—			5
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries		(1	)		199			(135	)		165			—			228
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of subsidiaries and affiliates																				(1	)		199			(14	)		44			—			228
Benefit/(provision) for income taxes		—			(54	)		110			(111	)		—			(55	)		—			(54	)		59			(60	)		—			(55	)
Equity in net income/(loss) of subsidiaries		167			89			192			—			(448	)		—			167			89			122			—			(378	)		—
Net income/(loss)		166			234			167			54			(448	)		173			166			234			167			(16	)		(378	)		173
Less net income/(loss) attributable to noncontrolling interests		—			—			—			7			—			7			—			—			—			7			—			7
Net income/(loss) attributable to controlling interest		166			234			167			47			(448	)		166			166			234			167			(23	)		(378	)		166
Total other comprehensive income/(loss)		(5	)		(25	)		(5	)		30			2			(3	)		(5	)		(25	)		(5	)		37			(5	)		(3	)
Total other comprehensive income/(loss) attributable to noncontrolling interests		—			—			—			2			—			2			—			—			—			2			—			2
Total other comprehensive income/(loss) attributable to controlling interests		(5	)		(25	)		(5	)		28			2			(5	)		(5	)		(25	)		(5	)		35			(5	)		(5	)
Total comprehensive income/(loss)		161			209			162			84			(446	)		170			161			209			162			21			(383	)		170
Comprehensive income/(loss) attributable to noncontrolling interests		—			—			—			9			—			9			—			—			—			9			—			9
Total comprehensive income/(loss) attributable to controlling interest	$	161		$	209		$	162		$	75		$	(446	)	$	161		$	161		$	209		$	162		$	12		$	(383	)	$	161

Non-

(IN MILLIONS)

Parent

Issuers

Guarantor

Guarantor

Elimination

Consolidated

Revenues

$
—

$
—

$
1,769

$
1,488

$
—

$
3,257

Cost of revenues, exclusive of depreciation and
   amortization shown separately below

—

—

734

683

—

1,417

Selling, general and administrative expenses, exclusive
   of depreciation and amortization shown
   separately below

2

—

469

516

—

987

Depreciation and amortization

—

—

261

68

—

329

Restructuring charges

—

—

32

57

—

89

Operating income/(loss)

(2
)

—

273

164

—

435

Interest income

1

316

18

4

(335
)

4

Interest expense

—

(183
)

(328
)

(20
)

335

(196
)
Foreign currency exchange transaction gains/(losses), net

—

—

(1
)

(3
)

—

(4
)
Other income/(expense), net

—

(7
)

120

(117
)

—

(4
)
Income/(loss) from continuing operations before
   income taxes and equity in net income/(loss) of
   subsidiaries and affiliates

(1
)

126

82

28

—

235

Benefit/(provision) for income taxes

—

(26
)

(20
)

(37
)

—

(83
)
Equity in net income/(loss) of subsidiaries

145

85

83

—

(313
)

—

Equity in net income/(loss) of affiliates

—

—

—

(1
)

—

(1
)
Net income/(loss)

144

185

145

(10
)

(313
)

151

Less net income/(loss) attributable to noncontrolling interests

—

—

—

7

—

7

Net income/(loss) attributable to controlling interest

144

185

145

(17
)

(313
)

144

Total other comprehensive income/(loss)

(75
)

21

(75
)

(92
)

144

(77
)
Total other comprehensive income/(loss) attributable to noncontrolling interests

—

—

—

(2
)

—

(2
)
Total other comprehensive income/(loss) attributable
   to controlling interests

(75
)

21

(75
)

(90
)

144

(75
)
Total comprehensive income/(loss)

69

206

70

(102
)

(169
)

74

Comprehensive income/(loss) attributable to noncontrolling
   interests

—

—

—

5

—

5

Total comprehensive income/(loss) attributable to
   controlling interest

$
69

$
206

$
70

$
(107
)

$
(169
)

$
69

							Non-													Non-
(IN MILLIONS)	Parent		Issuers		Guarantor		Guarantor		Elimination			Consolidated		Parent		Issuers		Guarantor		Guarantor			Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	2	$	—	$	43	$	348	$	—		$	393	$	3	$	1	$	107	$	327		$	—		$	438
Trade and other receivables, net		—		1		447		779		—			1,227		—		—		635		496			—			1,131
Prepaid expenses and other current assets		3		—		271		132		—			406		—		—		366		138			—			504
Intercompany receivables		3		1,515		309		214		(2,041	)		—		—		1,791		227		281			(2,299	)		—
Total current assets		8		1,516		1,070		1,473		(2,041	)		2,026		3		1,792		1,335		1,242			(2,299	)		2,073
Non-current assets
Property, plant and equipment, net		—		—		290		160		—			450		—		—		265		137			—			402
Operating lease right-of-use asset		—		—		196		257					453		—		—		181		196						377
Goodwill		—		—		5,531		1,486		—			7,017		—		—		5,106		878			—			5,984
Other intangible assets, net		—		—		4,467		514		—			4,981		—		—		5,450		(752	)		—			4,698
Deferred tax assets		1		—		—		328		—			329		1		—		—		275			—			276
Other non-current assets		—		1		259		72		—			332		—		—		241		71			—			312
Equity investment in subsidiaries		2,756		1,242		4,527		—		(8,525	)		—		1,993		1,294		3,167		—			(6,454	)		—
Intercompany loans		25		8,822		100		105		(9,052	)		—		25		8,633		95		143			(8,896	)		—
Total assets	$	2,790	$	11,581	$	16,440	$	4,395	$	(19,618	)	$	15,588	$	2,022	$	11,719	$	15,840	$	2,190		$	(17,649	)	$	14,122
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	62	$	436	$	526	$	—		$	1,024	$	1	$	50	$	541	$	508		$	—		$	1,100
Deferred revenues		—		—		224		139		—			363		—		—		257		104			—			361
Income tax liabilities		—		—		27		63		—			90
Current portion of long-term debt, finance lease obligations and short-term borrowings		—		55		348		9		—			412		—		80		205		6			—			291
Intercompany payables		1		—		1,732		308		(2,041	)		—		—		1		2,073		225			(2,299	)		—
Total current liabilities		1		117		2,767		1,045		(2,041	)		1,889		1		131		3,076		843			(2,299	)		1,752
Non-current liabilities
Long-term debt and finance lease obligations		—		8,142		80		11		—			8,233		—		7,595		525		10			—			8,130
Operating lease liabilities		—		—		219		199		—			418		—		—		213		159			—			372
Deferred tax liabilities		—		71		935		72		—			1,078		—		71		863		82			—			1,016
Intercompany loans		—		—		8,952		100		(9,052	)		—		—		—		8,801		95			(8,896	)		—
Other non-current liabilities		—		22		731		229		—			982		—		64		369		212			—			645
Total liabilities		1		8,352		13,684		1,656		(11,093	)		12,600		1		7,861		13,847		1,401			(11,195	)		11,915
Total shareholders’ equity		2,789		3,229		2,756		2,540		(8,525	)		2,789		2,021		3,858		1,993		603			(6,454	)		2,021
Noncontrolling interests		—		—		—		199		—			199		—		—		—		186			—			186
Total equity		2,789		3,229		2,756		2,739		(8,525	)		2,988		2,021		3,858		1,993		789			(6,454	)		2,207
Total liabilities and equity	$	2,790	$	11,581	$	16,440	$	4,395	$	(19,618	)	$	15,588	$	2,022	$	11,719	$	15,840	$	2,190		$	(17,649	)	$	14,122

							Non-													Non-
(IN MILLIONS)	Parent		Issuers		Guarantor		Guarantor		Elimination			Consolidated		Parent		Issuers		Guarantor		Guarantor			Elimination			Consolidated
Assets:
Current assets
Cash and cash equivalents	$	3	$	—	$	79	$	442	$	—		$	524	$	2	$	—	$	78	$	374		$	—		$	454
Trade and other receivables, net		—		1		377		740		—			1,118		—		—		539		564			—			1,103
Prepaid expenses and other current assets		—		3		234		124		—			361		—		—		296		124			—			420
Intercompany receivables		3		1,310		399		94		(1,806	)		—		7		1,615		309		328			(2,259	)		-
Total current assets		6		1,314		1,089		1,400		(1,806	)		2,003		9		1,615		1,222		1,390			(2,259	)		1,977
Non-current assets													-														-
Property, plant and equipment, net		—		—		303		165		—			468		—		—		303		163			—			466
Operating lease right-of-use asset															—		—		190		203			—			393
Goodwill		—		—		5,531		1,456		—			6,987		—		—		5,103		890			—			5,993
Other intangible assets, net		—		—		4,545		479		—			5,024		—		—		5,597		(716	)		—			4,881
Deferred tax assets		1		—		—		332		—			333		1		—		—		275			—			276
Other non-current assets		—		19		273		72		—			364		—		—		260		73			—			333
Equity investment in subsidiaries		2,815		1,232		1,936		—		(5,983	)		—		2,170		1,298		4,285		—			(7,753	)		—
Intercompany loans		25		8,822		2,220		105		(11,172	)		—		25		8,887		98		1,605			(10,615	)		—
Total assets	$	2,847	$	11,387	$	15,897	$	4,009	$	(18,961	)	$	15,179	$	2,205	$	11,800	$	17,058	$	3,883		$	(20,627	)	$	14,319
Liabilities and equity:
Current liabilities
Accounts payable and other current liabilities	$	—	$	62	$	541	$	516	$	—		$	1,119	$	10	$	62	$	564	$	546		$	—		$	1,182
Deferred revenues		—		—		225		130		—			355		—		—		257		88			—			345
Income tax liabilities		—		—		20		56		—			76		—		—		4		56			—			60
Current portion of long-term debt, capital lease obligations and short-term borrowings		—		54		46		7		—			107
Current portion of long-term debt, finance lease obligations and short-term borrowings															—		861		46		7			—			914
Intercompany payables		—		—		1,408		398		(1,806	)		—		—		3		1,948		308			(2,259	)		—
Total current liabilities		—		116		2,240		1,107		(1,806	)		1,657		10		926		2,819		1,005			(2,259	)		2,501
Non-current liabilities
Long-term debt and capital lease obligations		—		8,170		95		15		—			8,280
Long-term debt and finance lease obligations															—		7,302		80		13			—			7,395
Operating lease liabilities															—		—		213		157			—			370
Deferred tax liabilities		—		71		956		81		—			1,108		—		71		887		94			—			1,052
Intercompany loans		—		—		8,952		2,220		(11,172	)		—		—		—		10,516		99			(10,615	)		—
Other non-current liabilities		—		3		839		249		—			1,091		—		22		373		218			—			613
Total liabilities		—		8,360		13,082		3,672		(12,978	)		12,136		10		8,321		14,888		1,586			(12,874	)		11,931
Total shareholders’ equity		2,847		3,027		2,815		141		(5,983	)		2,847		2,195		3,479		2,170		2,104			(7,753	)		2,195
Noncontrolling interests		—		—		—		196		—			196		—		—		—		193			—			193
Total equity		2,847		3,027		2,815		337		(5,983	)		3,043		2,195		3,479		2,170		2,297			(7,753	)		2,388
Total liabilities and equity	$	2,847	$	11,387	$	15,897	$	4,009	$	(18,961	)	$	15,179	$	2,205	$	11,800	$	17,058	$	3,883		$	(20,627	)	$	14,319

										Non-															Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Consolidated			Parent			Issuers			Guarantor			Guarantor			Consolidated
Net cash (used in)/provided by operating activities	$	(7	)	$	39		$	7		$	144		$	183		$	(13	)	$	51		$	312		$	(105	)	$	245
Investing activities:														-
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(11	)		(49	)		(60	)		—			—			(14	)		(14	)		(28	)
Additions to property, plant and equipment and other assets		—			—			(24	)		(20	)		(44	)		—			—			(6	)		(8	)		(14	)
Additions to intangible assets		—			—			(151	)		(35	)		(186	)		—			—			(176	)		(42	)		(218	)
Other investing activities																	—			—			1			(3	)		(2	)
Net cash used in investing activities		—			—			(186	)		(104	)		(290	)		—			—			(195	)		(67	)		(262	)
Financing activities:
Net borrowings under revolving credit facility		—			—			296			—			296			—			—			165			—			165
Proceeds from the issuance of debt, net of issuance costs																	—			535			443			—			978
Repayments of debt		—			(29	)		—			—			(29	)		—			(1,029	)		—			—			(1,029	)
Increase/(decrease) in other short-term borrowings		—			—			—			(1	)		(1	)
Cash dividends paid to shareholders		(249	)		—			—			—			(249	)		(43	)		—			—			—			(43	)
Activity from share-based compensation plans		—			—			(4	)		—			(4	)		(1	)		—			(4	)		—			(5	)
Proceeds from employee stock purchase plan		2			—			—			—			2			2			—			—			—			2
Finance leases		—			—			(26	)		(3	)		(29	)		—			—			(33	)		(3	)		(36	)
Settlement of intercompany and other financing activities		253			(10	)		(121	)		(130	)		(8	)		56			444			(655	)		144			(11	)
Net cash provided by/(used in) financing activities		6			(39	)		145			(134	)		(22	)		14			(50	)		(84	)		141			21
Effect of exchange-rate changes on cash and cash equivalents		—			—			(2	)		—			(2	)		—			—			(4	)		(16	)		(20	)
Net increase/(decrease) in cash and cash equivalents		(1	)		—			(36	)		(94	)		(131	)		1			1			29			(47	)		(16	)
Cash and cash equivalents at beginning of period		3			—			79			442			524			2			—			78			374			454
Cash and cash equivalents at end of period	$	2		$	—		$	43		$	348		$	393		$	3		$	1		$	107		$	327		$	438

										Non-															Non-
(IN MILLIONS)	Parent			Issuers			Guarantor			Guarantor			Consolidated			Parent			Issuers			Guarantor			Guarantor			Consolidated
Net cash (used in)/provided by operating activities	$	(1	)	$	26		$	(16	)	$	116		$	125		$	(7	)	$	39		$	245		$	(94	)	$	183
Investing activities:														—															-
Acquisition of subsidiaries and affiliates, net of cash acquired		—			—			(3	)		(27	)		(30	)		—			—			(11	)		(49	)		(60	)
Additions to property, plant and equipment and other assets		—			—			(27	)		(17	)		(44	)		—			—			(24	)		(20	)		(44	)
Additions to intangible assets		—			—			(171	)		(31	)		(202	)		—			—			(158	)		(28	)		(186	)
Other investing activities		—			—			5			(5	)		—
Net cash used in investing activities		—			—			(196	)		(80	)		(276	)		—			—			(193	)		(97	)		(290	)
Financing activities:
Net borrowings under revolving credit facility		—			—			246			—			246			—			—			296			—			296
Repayments of debt		—			(798	)		—			(1	)		(799	)		—			(29	)		—			—			(29	)
Proceeds from the issuance of debt, net of issuance costs		—			781			—			—			781
Increase/(decrease) in other short-term borrowings																	—			—			—			(1	)		(1	)
Cash dividends paid to shareholders		(246	)		—			—			—			(246	)		(249	)		—			—			—			(249	)
Repurchase of common stock		(60	)		—			—			—			(60	)
Activity from share-based compensation plans		23			—			(5	)		—			18			—			—			(4	)		—			(4	)
Proceeds from employee stock purchase plan		3			—			—			—			3			2			—			—			—			2
Capital leases		—			—			(37	)		(3	)		(40	)
Finance leases																	—			—			(26	)		(3	)		(29	)
Settlement of intercompany and other financing activities		281			(9	)		(48	)		(235	)		(11	)		253			(10	)		(397	)		146			(8	)
Net cash provided by/(used in) financing activities		1			(26	)		156			(239	)		(108	)		6			(39	)		(131	)		142			(22	)
Effect of exchange-rate changes on cash and cash equivalents		—			—			—			(3	)		(3	)		—			—			(2	)		—			(2	)
Net increase/(decrease) in cash and cash equivalents		—			—			(56	)		(206	)		(262	)		(1	)		—			(81	)		(49	)		(131	)
Cash and cash equivalents at beginning of period		2			1			69			584			656			3			—			132			389			524
Cash and cash equivalents at end of period	$	2		$	1		$	13		$	378		$	394		$	2		$	—		$	51		$	340		$	393

The following discussion and analysis supplements management’s discussion and analysis of Nielsen Holdings plc (“the Company” or “Nielsen”) for the year ended December 31, ~~2018~~2019 as contained in the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (“SEC”) on February ~~28, 2019,~~27, 2020, and presumes that readers have read or have access to such discussion and analysis. The following discussion and analysis should also be read together with the accompanying Condensed Consolidated Financial Statements and related notes thereto. Further, this report may contain material that includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, Nielsen’s current views with respect to current events and financial performance. Statements, other than those based on historical facts, which address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements. Such forward-looking statements are subject to many risks, uncertainties and factors relating to Nielsen’s operations and business environment that may cause actual results to be materially different from any future results, express or implied, by such forward-looking statements, including but not limited to, those set forth in this Item 2 and Part II, Item 1A, if any, those noted in Part II, Item 1A in our Form 10-Q for the quarter ended March 31, 2020 and those noted in our ~~2018~~2019 Annual Report on Form 10-K under “Risk Factors.” Forward-looking statements speak only as of the date of this report or as of the date they were made. We disclaim any intention to update the current expectations or forward-looking statements contained in this report. Unless required by context, references to “we,” “us,” and “our” refer to Nielsen Holdings plc and each of its consolidated subsidiaries unless otherwise stated or indicated by context.

From time to time, Nielsen may use its website and social media outlets as channels of distribution of material company information. Financial and other material information regarding the company is routinely posted and accessible on our website at http://www.nielsen.com/investors and our Twitter account at http://twitter.com/nielsen.

We are a leading global measurement and data analytics company that provides ~~clients with a comprehensive understanding~~the most complete and trusted view available of consumers and ~~consumer behavior.~~markets worldwide. Our approach marries our proprietary data with other data sources to help clients around the world understand ~~what's~~what’s happening now, ~~what's~~what’s happening next, and how to best act on this knowledge. ~~For more than 90 years~~An S&P 500 company, we have provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. We have a presenceoperations in ~~more than~~approximately 100 countries, including many emerging markets, covering more than 90% of the world’s population, and hold leading market positions in many of our services and geographies.

We believe that important measures of our results of operations include revenue, operating income/(loss) and Adjusted EBITDA (defined below). Our long-term financial objectives include consistent revenue growth and expanding operating margins. Accordingly, we are focused on geographic market and service offering expansion to drive revenue growth and improve operating efficiencies, including effective resource utilization, information technology leverage and overhead cost management.

Our business strategy is built upon a model that has traditionally yielded consistent revenue performance. Typically, before the start of each year, more than 70% of our annual revenue has been committed under contracts in our combined Nielsen Global Connect ~~(“Connect”)~~ and Nielsen Global Media ~~(“Media”)~~ segments, which provides us with a greater degree of stability for our revenue and allows us to more effectively manage our profitability and cash flows. See “Business Segment Overview” below for further discussion. We continue to look for growth opportunities through global expansion, specifically within emerging markets, as well as through the cross-platform expansion of our analytical services and measurement services.

~~In September 2018, we~~On November 7, 2019, Nielsen announced its plan to spin-off the company's Global Connect business, creating two independent, publicly traded companies -- the Global Media business and the Global Connect business. We continue to believe that a ~~broad review~~separation of ~~strategic alternatives for~~Nielsen Global Media and Nielsen Global Connect is the ~~entire company~~best path forward. We continue to make operational progress towards separation, and ~~its businesses. This review process, which is being conducted~~expect the closing to take place in the first quarter of 2021. On May 7, 2020, the Company filed an initial Form 10 Registration Statement with the ~~assistance of financial~~U.S. Securities and ~~legal advisors, is continuing and we are focused on completing~~Exchange Commission in connection with the ~~review by our third quarter earnings release. There can be no assurance that this review will result in a specific transaction or other strategic~~ ~~alternative~~.Company’s proposed separation.

Our restructuring and other productivity initiatives have been focused on a combination of improving operating leverage through targeted cost-reduction programs, business process improvements and portfolio restructuring actions, while at the same time investing in key programs to enhance future growth opportunities.

On June 30, 2020, we announced a broad-based optimization plan (the “Restructuring Plan”) to drive permanent cost savings and operational efficiencies, as well as to position us for greater profitability and growth. We expect the Restructuring Plan to be substantially completed in 2020 and for restructuring actions and other permanent cost-savings initiatives to drive approximately $250 million in pre-tax annual run-rate savings. We expect 2020 pre-tax restructuring charges of $150 to $170 million.

Achieving our business objectives requires us to manage a number of key risk areas. Our growth objective of geographic market and service expansion requires us to maintain the consistency and integrity of our information and underlying processes on a global scale, and to invest effectively our capital in technology and infrastructure to keep pace with our clients’ demands and our competitors. Core to managing these key risk areas is our commitment to data privacy and security as it drives our ability to deliver quality insights for our clients in line with evolving regulatory requirements and governing standards across all the geographies and industries in which we operate. Our operating footprint across ~~more than~~approximately 100 countries requires disciplined global and local resource management of internal and third party providers to ensure success. In addition, our high level of indebtedness requires active management of our debt profile, with a focus on underlying maturities, interest rate risk, liquidity and operating cash flows.

~~Prior to February 2019, we were aligned into two reporting segments: what consumers buy~~

In March 2020, the global outbreak of the novel coronavirus (“~~Buy”~~COVID-19”) ~~and what consumers read, watch and listen to (“Watch”). In February 2019, we realigned our business segments from Buy and Watch to Connect and Media. Each segment operates~~was categorized as a ~~complete unit—from~~pandemic by the ~~conception of a product, through~~World Health Organization and has negatively affected the ~~collection~~global economy, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place,” and created significant disruption of the financial markets.

We have established a global task force to ensure execution of our key priorities during the COVID-19 pandemic-- the health and safety of our global workforce, maintaining our financial position with ample liquidity, and continuity of critical business processes.

We have taken measures to protect the health and safety of our employees, their families and our clients, with a large majority of our worldwide workforce working from home. We have halted in-store field research and in-person client engagements in many markets and are adapting processes and developing innovative solutions to ensure continuity of critical business processes. In addition, we are sharing retail measurement data ~~into~~with several government entities to support our communities.

We faced increased pressure in both Nielsen Global Media and Nielsen Global Connect in the ~~technology and operations, all the way~~second quarter. For Nielsen Global Media, this pressure was primarily due to the ~~data being sold~~impact of COVID-19 on sports and ~~delivered~~non-contracted revenue. For Nielsen Global Connect, this was primarily due to the ~~client.~~ ~~Our Connect and Media segments are built~~impact of COVID-19 on ~~a foundation of proprietary data assets~~retail measurement services in markets that are ~~designed~~heavy in traditional trade as well as pressures on custom insights and innovation. These pressures are continuing, though to ~~yield essential insights for our clients~~a lesser extent, primarily due to ~~successfully measure, analyze and grow their businesses~~. Our segments each consist of two categories: Measure and Predict / Activate in Connect and Audience Measurement and Plan / Optimize in Media. These categories are based on our core measurement platformsnon-contracted revenues in both ~~Connect~~Nielsen Global Media and ~~Media, while Predict / Activate~~Nielsen Global Connect.

On March 27, 2020, the Coronavirus Aid, Relief, and ~~Plan / Optimize are designed~~Economic Security (“CARES”) Act was signed into law. The CARES Act provides a substantial stimulus and assistance package intended to ~~build on our measurement capabilities to enhance client decision-making. These changes better align our external view to our go-forward internal view. Our reportable segments are stated on~~address the ~~new basis and such changes were retrospectively applied. The~~ impact of ~~these changes did not~~the COVID-19 pandemic, including tax relief and government loans, grants and investments. The CARES Act is expected to have a material impact on our ~~condensed consolidated~~effective tax rate, partly as a result of the reversal of certain tax benefits from 2019. However, we also expect lower U.S. federal tax payments for the full year. We continue to monitor any future effects that may result from the CARES Act.

We believe we have a sound plan in place to mitigate the financial ~~statements or segment results.~~

Our Connect segment provides measurement services, which include our core tracking and scan data (primarily transactional measurement data and consumer behavior information), and analytical services to businessesimpacts of the COVID-19 pandemic in the face of ongoing economic uncertainty. We have taken aggressive cost actions to date and continue to closely monitor the situation. We remain well- capitalized, have sufficient liquidity to satisfy our cash needs and will take additional actions as required.We continue to believe that a separation of Nielsen Global Media and Nielsen Global Connect is the best path forward and continue to make operational progress towards separation. As previously announced, the closing is expected to take place in the first quarter of 2021.

For further discussion regarding the potential impacts of COVID-19 and related economic conditions on the Company, see "Part II—Item 1A—Risk Factors.".

We are divided into business units: Nielsen Global Media (“Media”) and Nielsen Global Connect (“Connect”). Media, the arbiter of truth for media markets, provides media and advertising clients with unbiased and reliable metrics that create the shared understanding of the industry required for markets to function, enabling its clients to grow and succeed across the $600 billion global advertising market. Media helps clients to define exactly who they want to reach, as well as optimize the outcomes they can achieve. Our cross-platform measurement strategy brings together the best of TV and digital measurement to ensure a more functional marketplace for the industry.

Connect provides consumer packaged goods ~~industry. Our services also enable our clients~~manufacturers and retailers with accurate, actionable information and a complete picture of the complex and changing marketplace that brands need to ~~better manage their brands, uncover new sources of demand, launch~~innovate and grow ~~new products, analyze~~ their ~~sales~~businesses. Connect provides data and ~~establish more effective consumer relationships. Our~~builds tools that use predictive models to turn observations in the marketplace into business decisions and winning solutions. The business's data ~~is used by our clients to measure their market share, tracking billions of sales transactions per month in retail outlets around the world. Our extensive database of retail~~ and ~~consumer information,~~insights, combined with ~~our advanced analytical capabilities, helps generate strategic insights that influence our clients’ key business decisions.~~

~~Our Media segment provides viewership and listening data~~the only open, cloud native measurement and analytics ~~primarily~~platform that democratizes the power of data, continue to provide an essential foundation that makes markets possible in the media and advertising industries for television, radio, digital and mobile viewing and listening platforms. Our Media data is used by our media clients to understand their audiences, establish the valuerapidly evolving world of ~~their advertising inventory and maximize the value of their content, and by our advertising clients to plan and optimize their spending.~~commerce.

Certain corporate costs, other than those described above, including those related to selling, finance, legal, human resources, and information technology systems, are considered operating costs and are allocated to our segments based on either the actual amount of costs incurred or on a basis consistent with the operations of the underlying segment.

Our accounting policies are set forth in Note 1 to Consolidated Financial Statements contained in the Company’s ~~2018~~2019 Annual Report on Form 10-K. We include herein certain updates to those policies.

~~Effective January 1, 2019,~~Goodwill and other indefinite-lived intangible assets are stated at historical cost less accumulated impairment losses, if any.

Goodwill and other indefinite-lived intangible assets, consisting of certain trade names and trademarks, are each tested for impairment on an annual basis and whenever events or circumstances indicate that the carrying amount of such asset may not be recoverable. We review the recoverability of our goodwill by comparing the estimated fair values of reporting units with their respective carrying amounts. During the first quarter of 2020, we ~~adopted~~concluded that there was a triggering event for an interim assessment.

The estimates of fair value of a reporting unit are determined using a combination of valuation techniques, primarily by an income approach using a discounted cash flow analysis and supplemented by a market-based approach.

A discounted cash flow analysis requires the ~~new lease accounting standard using the transition method approved by the FASB on July 30, 2018, which allows companies to apply the provisions~~use of ~~the new leasing standard as~~various assumptions, including expectations of January 1, 2019, without adjusting the comparative periods presented. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard. This allowed us to carry forward the historical lease classification. Adoption of this standard resultedfuture cash flows, growth rates, discount rates and tax rates in the recording of net operating lease right-of-use (ROU) assets of $0.4 billion (amount is net of lease incentives and ASC 420 cease-use liabilities) and corresponding operating lease liabilities of $0.6 billion. Financial position for reporting periods beginning on or after January 1, 2019 are presented under the new guidance, while prior periods amounts are not adjusted and continue to be reported in accordance with previous guidance.

All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based ondeveloping the present value of ~~lease payments over~~future cash flow projections. Many of the ~~lease term.~~factors used in assessing fair value are outside of the control of management, and these assumptions and estimates can change in future periods. Changes in assumptions or estimates could materially affect the determination of the fair value of a reporting unit, and therefore could affect the amount of potential impairment. The ~~operating lease ROU asset~~following assumptions are significant to our discounted cash flow analysis:

These estimates and assumptions vary between each reporting unit depending on the facts and circumstances specific to that unit. We believe that the estimates and assumptions we made are reasonable, but they are susceptible to change from period to period.

We also use a market-based approach in estimating the fair value of our reporting units. The market-based approach utilizes available market comparisons such as indicative industry multiples that are applied to current year revenue and earnings, next year’s revenue and earnings as well as recent comparable transactions.

To validate the reasonableness of the reporting unit fair values, we reconcile the aggregate fair values of our reporting units to our enterprise market capitalization. Enterprise market capitalization includes, ~~any lease payments related to initial direct cost~~among other factors, the market value of our common stock and ~~prepayments and excludes lease incentives. Lease expense is recognized~~the appropriate redemption values of our debt. We perform sensitivity analyses on ~~a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for together.~~our assumptions, primarily around both

long-term growth rate and discount rate assumptions. Our sensitivity analyses include several combinations of reasonably possible scenarios with regard to these assumptions, including a one percent movement in both our long-term growth rate and discount rate assumptions. When applying these sensitivity analyses, we noted that the fair value was greater than the carrying value for both of our reporting units. While management believes that these sensitivity analyses provide a reasonable basis on which to evaluate the recovery of our goodwill, other facts or circumstances may arise that could impact the impairment assessment and therefore these analyses should not be used as a sole predictor of impairment. Based on our second quarter results and projections, there were no indicators of impairment during the second quarter of 2020. Nielsen will continue to closely evaluate any indicators of future impairments.

The impairment test for other indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair value of trade names and trademarks are determined using a “relief from royalty” discounted cash flow valuation methodology, which includes revenue projections. Significant assumptions inherent in this methodology include estimates of royalty rates and discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. Assumptions about royalty rates are based on the rates at which comparable trade names and trademarks are being licensed in the marketplace. There was no impairment noted in any period presented with respect to the Company’s indefinite-lived intangible assets. As of the March 31, 2020 assessment, one of our indefinite-lived intangible assets had a fair value that exceeded its carrying value by less than 5%. The valuation is sensitive to the assumptions listed above. A downward trend in revenue projections or an increase in discount rate could lead to a future impairment. We concluded that there was no triggering event for an interim impairment assessment for the three-month period ending June 30, 2020. We will continue to closely evaluate any indicators of future impairments.

For the six months ended June 30, 2020, we paid cash consideration of $28 million associated with current period acquisitions, net of cash acquired. Had these 2020 acquisitions occurred as of January 1, 2020, the impact on our consolidated results of operations would not have been material.

For the six months ended June 30, 2019, we paid cash consideration of $60 million associated with current period acquisitions, net of cash acquired. Had these 2019 acquisitions occurred as of January 1, 2019, ~~the impact on our consolidated results of operations would not have been material.~~

For the six months ended June 30, 2018, we paid cash consideration of $30 million associated with both current period and previously executed acquisitions, net of cash acquired. Had these 2018 acquisitions occurred as of January 1, 2018, the impact on our consolidated results of operations would not have been material.

Our financial results are reported in U.S. dollars and are therefore subject to the impact of movements in exchange rates on the translation of the financial information of individual businesses whose functional currencies are other than U.S. dollars. Our principal foreign exchange revenue exposure is spread across several currencies, primarily the Euro. The table below sets forth the profile of our revenue by principal currency.

	Six Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2020			2019
U.S. Dollar		58	%		57	%		60	%		58	%
Euro		10	%		11	%		10	%		10	%
Other Currencies		32	%		32	%		30	%		32	%
Total		100	%		100	%		100	%		100	%

Fluctuations in the value of foreign currencies relative to the U.S. dollar impact our operating results. Impacts associated with fluctuations in foreign currency are discussed in more detail under “Item 3.—Quantitative and Qualitative Disclosures about Market Risk.” In countries with currencies other than the U.S. dollar, assets and liabilities are translated into U.S. dollars using end-of-period exchange rates while; revenues, expenses and cash flows are translated using average rates of exchange. The average U.S. dollar to Euro exchange rate was ~~$1.13~~$1.10 to €1.00 and ~~$1.21~~$1.13 to €1.00 for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. Constant currency growth rates used in the following discussion of results of operations eliminate the impact of year-over-year foreign currency fluctuations.

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We

believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates our performance. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period foreign currency exchange rates and comparing these adjusted amounts to our current period reported results. This calculation may differ from similarly-titled measures used by others. In addition, the constant currency presentation is not meant to be a substitution for recorded amounts presented in conformity with GAAP nor should such amounts be considered in isolation.

We ~~have operations~~extend non-interest bearing trade credit to our customers in ~~both~~ the ~~Connect and Media segments~~ordinary course of business. To minimize credit risk, ongoing credit evaluations of client’s financial condition are performed. Effective January 1, 2020, we adopted ASU, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. Prior to the adoption, an estimate of the allowance for doubtful accounts was made when collection of the full amount was no longer probable (incurred loss) or returns were expected. Subsequent to the adoption, as noted in ~~Argentina and~~“Summary of Recent Accounting Pronouncements” below, the ~~functional currency~~allowance for ~~those operations~~doubtful accounts is made when collection of the Argentine Peso. In accordance with U.S. GAAP, Argentina’s currency has been considered hyperinflationary since July 1, 2018, and, accordingly, local currency transactions have been denominated in U.S. dollars since July 1, 2018, and will continue to be denominated in U.S. dollars until Argentina’s currencyfull amounts is no longer ~~deemed~~probable by also incorporating reasonable and supportable forecasts (expected loss).

The uncertainty regarding the length of lock-downs related to ~~be hyperinflationary.~~the COVID-19 pandemic and speed of recovery may impact our level of reserves in future periods. We ~~will~~ continue to monitor and assess the ~~appropriate conversion rate based~~impacts related to our different clients and will base our reasonable forecasts on ~~events in Argentina~~the latest information available.

During the six months ended June 30, 2020, we sold $125 million of accounts receivable to third parties and ~~our Argentina operations. This event has had~~recorded an immaterial ~~impact~~loss on ~~our~~the sale to interest expense, net in the condensed consolidated ~~financial statements.~~statement of operations. As of June 30, 2020 and December 31, 2019, $30 million and $85 million of previously sold receivables, respectively, remained outstanding. The sales were accounted for as true sales, without recourse. We maintain servicing responsibilities for the majority of the receivables sold during the period, for which the related costs are not significant. The proceeds of $125 million from the sales were reported as a component of the changes in trade and other receivables, net within operating activities in the condensed consolidated statement of cash flows.

Results of Operations – Three Months Ended June 30, ~~2019~~2020 Compared to the Three Months Ended June 30, ~~2018~~2019

The following table sets forth, for the periods indicated, the amounts included in our Condensed Consolidated Statements of Operations:

	Three Months Ended June 30,						Three Months Ended June 30,
(IN MILLIONS)	2019			2018			2020			2019
Revenues	$	1,628		$	1,647		$	1,496		$	1,628
Cost of revenues, exclusive of depreciation and amortization shown separately below		699			698			664			699
Selling, general and administrative expenses, exclusive of depreciation and amortization shown separately below		483			494			451			483
Depreciation and amortization		185			162			224			185
Impairment of other long-lived assets								45			—
Restructuring charges		12			65			84			12
Operating income/(loss)		249			228			28			249
Interest income		1			2			—			1
Interest expense		(100	)		(100	)		(91	)		(100	)
Foreign currency exchange transaction gains/(losses), net		(1	)		(4	)		3			(1	)
Other income/(expense), net		—			(5	)		(4	)		—
Income/(loss) from continuing operations before income taxes and equity in net income/(loss) of affiliates		149			121			(64	)		149
Benefit/(provision) for income taxes		(23	)		(44	)		38			(23	)
Equity in net income/(loss) of affiliates		—			(1	)
Net income/(loss)		126			76			(26	)		126
Net income/(loss) attributable to noncontrolling interests		3			4			4			3
Net income/(loss) attributable to Nielsen shareholders	$	123		$	72		$	(30	)	$	123

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, impairment of goodwill and other long-lived assets, share-based compensation expense and other non-operating items from our consolidated statements of operations as well as certain other items considered outside the normal course of our operations specifically described below.

Restructuring charges: We exclude restructuring expenses, which primarily include employee severance, office consolidation and contract termination charges, from our Adjusted EBITDA to allow more accurate comparisons of the financial results to historical operations and forward-looking guidance. By excluding these expenses from our non-GAAP measures, we are better able to evaluate our ability to utilize our existing assets and estimate the long-term value these assets will generate for us. Furthermore, we believe that the adjustments of these items more closely correlate with the sustainability of our operating performance.

Impairment of goodwill and other long-lived assets: We exclude the impact of charges related to the impairment of goodwill and other long-lived assets. Given the significance of the impairment of goodwill and other long-lived assets, we reported it separately in the consolidated statements of operations. We believe that the exclusion of these impairments, which are non-cash, allows for meaningful comparisons of operating results to peer companies. We believe that this increases period-to-period comparability and is useful to evaluate the performance of the total company.

Share-based compensation expense: We exclude the impact of costs relating to share-based compensation. Due to the subjective assumptions and a variety of award types, we believe that the exclusion of share-based compensation expense, which is typically non-cash, allows for more meaningful comparisons of our operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted.

Other non-operating income/(expense), net: We exclude foreign currency exchange transaction gains and losses, primarily related to intercompany financing arrangements, as well as other non-operating income and expense items, such as gains and losses recorded on business combinations or dispositions, sales of investments, pension settlements, net income/(loss) attributable to noncontrolling interests and early redemption payments made in connection with debt refinancing. We believe that the adjustments of these items more closely correlate with the sustainability of our operating performance.

Other items: To measure operating performance, we exclude certain expenses and gains that arise outside the ordinary course of our operations. Such costs primarily include legal settlements, acquisition related expenses, business optimization costs and other transactional costs. We believe ~~that~~ the exclusion of such amounts allows management and the users of the financial statements to better understand our financial results.

Separation-related costs: To measure operating performance, we exclude certain separation-related costs that would not be incurred if we were not undertaking a separation of our Global Connect business from our Global Media business and positioning Global Connect and Global Media to operate as two independent companies. These costs include: third-party advisor costs, tax friction, technology related spend, and incremental costs of beginning to operate as two independent companies. We believe that exclusion of these costs will allow users of our financial statements to better understand our financial performance in 2020.

Adjusted EBITDA is not a presentation made in accordance with GAAP, and our use of the term Adjusted EBITDA 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. Adjusted EBITDA margin is Adjusted EBITDA for a particular period expressed as a percentage of revenues for that period.

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. In addition to Adjusted EBITDA being a significant measure of performance for management purposes, we also believe that this presentation provides useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance.

Adjusted EBITDA should not be considered as an alternative to net income or loss, operating income, cash flows from operating activities or any other performance measures derived in accordance with GAAP as measures of operating performance or cash flows as measures of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, our definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies and may, therefore, have limitations as a comparative analytical tool.

The below table presents a reconciliation from net income to Adjusted EBITDA for the three months ended June 30, ~~2019~~2020 and ~~2018:~~2019:

	Three Months Ended June 30,				Three Months Ended June 30,
(IN MILLIONS)	2019		2018		2020			2019
Net income/(loss) attributable to Nielsen shareholders	$	123	$	72	$	(30	)	$	123
Interest expense, net		99		98		91			99
(Benefit)/provision for income taxes		23		44		(38	)		23
Depreciation and amortization		185		162		224			185
EBITDA		430		376		247			430
Equity in net (income)/loss of affiliates		—		1
Other non-operating (income)/expense, net		4		13		5			4
Restructuring charges		12		65		84			12
Impairment of other long-lived assets						45			—
Share-based compensation expense		11		7		11			11
Separation-related costs^(b⁾						26			—
Other items^(a)		13		6		8			13
Adjusted EBITDA	$	470	$	468	$	426		$	470

Consolidated Results for the Three Months Ended June 30, ~~2019~~2020 Compared to the Three Months Ended June 30, ~~2018~~2019

Revenues decreased ~~1.2%~~8.1% to $1,496 million for the three months ended June 30, 2020 from $1,628 million for the three months ended June 30, 2019, ~~from $1,647 million for the three months ended June 30, 2018,~~ or ~~an increase~~a decrease of ~~1.2%~~5.9% on a constant currency basis. Revenues within our Connect segment decreased ~~3.5%~~11.3%, or ~~an increase~~a decrease of ~~0.4%~~7.4% on a constant currency basis. Revenues within our Media segment ~~increased 1.1%~~decreased 5.3%, or ~~an increase~~a decrease of ~~2.0%~~4.6% on a constant currency basis. Refer to the “Business Segment Results for the Three Months Ended June 30, ~~2019~~2020 Compared to the Three Months Ended June 30, ~~2018”~~2019” section for further discussion of our revenue performance.

Cost of revenues ~~increased 0.1%~~decreased 5.0% to $664 million for the three months ended June 30, 2020 from $699 million for the three months ended June 30, 2019, ~~from $698 million for the three months ended June 30, 2018,~~ or ~~an increase~~a decrease of ~~2.8%~~2.6% on a constant currency basis.

Costs within our Connect segment decreased ~~3.7%~~8.4%, or a decrease of ~~0.3%~~5.0% on a constant currency basis. The decrease in cost of revenues for the three months ended June 30, ~~2019~~2020 as compared to the three months ended June 30, ~~2018~~2019 was primarily due to our productivity initiatives and temporary costs savings due to actions taken in response to the COVID-19 pandemic, partially offset by ~~increases~~global investments in ~~retail costs.~~our services, including retailer investments.

Costs within our Media segment ~~increased 6.0%,~~were flat, or an increase of ~~6.8%~~0.7% on a constant currency basis. Cost of revenues increased primarily due to the impact of our investments and higher spending on product portfolio management initiatives, partially offset by productivity ~~initiatives.~~initiatives and temporary actions taken in response to the COVID-19 pandemic, partially offset by global investments in our services, including retailer investments.

Selling, General and Administrative Expenses, Exclusive of Depreciation and Amortization

Selling, general and administrative expenses decreased ~~2.2%~~6.6% to $451 million for the three months ended June 30, 2020 from $483 million for the three months ended June 30, 2019, ~~from $494 million for the three months ended June 30, 2018,~~ or ~~an increase~~a decrease of ~~0.6%~~4.2% on a constant currency basis.

Costs within our Connect segment decreased 2.8%, or an increase of 1.1% on a constant currency basis. Selling, general and administrative expenses increased on a constant currency basis primarily due to our continued global investments in our services.

~~Costs within our Media segment decreased 6.4%~~13.5%, or a decrease of ~~5.0%~~9.9% on a constant currency basis. Selling, general and administrative expenses decreased primarily due to our productivity initiatives.

Costs within our Media segment decreased 10.6%, or a decrease of 9.6% on a constant currency basis. Selling, general and administrative expenses decreased primarily due to our productivity initiatives.

Costs within our Corporate segment increased 114% on a reported and constant currency basis, primarily due to separation-related costs relating to the separation of our Global Connect business from our Global Media business. These costs include third-party advisor costs, technology and other similar costs associated with separating the businesses and operations.

Depreciation and amortization expense was $224 million for the three months ended June 30, 2020, as compared to $185 million for the three months ended June 30, ~~2019, as compared to $162 million for the three months ended June 30, 2018.~~2019. This increase was primarily due to higher depreciation and amortization expense associated with higher capital ~~expenditures.~~expenditures, partially offset by lower depreciation and amortization expense associated with tangible and intangible assets acquired in business combinations.

Depreciation and amortization expense associated with tangible and intangible assets acquired in business combinations was $50 million for the three months ended June 30, 2020, as compared to $53 million for the three months ended June 30, ~~2019, as compared to $56~~2019.

We recorded a non-cash charge of $45 million for the impairment of other long-lived assets for the three months ended June 30, ~~2018.~~2020, related to management’s decision to exit certain smaller, underperforming markets and non-core businesses. This charge was primarily recorded within our Media segment.

In June, 2020, we announced a broad-based optimization plan to drive permanent cost savings and operational efficiencies, as well as to position us for greater profitability and growth. We expect the plan to be substantially completed in 2020. Cash payments for the severance costs will continue into late 2021.

We recorded $84 million in restructuring charges for the three months ended June 30, 2020. These charges primarily related to severance costs associated with employee severance packages.

We recorded $12 ~~million and $65~~ million in restructuring charges for the three months ended June 30, 2019, ~~and 2018, respectively,~~ primarily ~~relating~~ related to employee severance costs associated with our plans to reduce selling, general and administrative expenses and consolidate operations centers, as well as automation ~~initiatives.~~initiatives.

Operating income for the three months ended June 30, ~~2019~~2020 was ~~$249~~$28 million as compared to ~~$228~~$249 million for the three months ended June 30, ~~2018.~~2019. Operating ~~income~~loss within our Connect segment was $36 million for the three months ended June 30, 2020 as compared to operating income of $46 million for the three months ended June 30, ~~2019 as compared to $1~~2019. Operating income within our Media segment was $120 million for the three months ended June 30, ~~2018. Operating income within our Media segment was~~2020 as compared to $237 million for the three months ended June 30, ~~2019 as compared to $252~~2019.

Corporate operating expenses were $56 million for the three months ended June 30, ~~2018. Corporate operating expenses were~~2020 as compared to $34 million for the three months ended June 30, ~~2019 as compared to $25 million for the three months ended June 30, 2018.~~2019. Refer to the “Business Segment Results for the Three Months Ended June 30, ~~2019~~2020 Compared to the Three Months Ended June 30, ~~2018”~~2019” section for further discussion of our operating income.

Interest expense was ~~$100~~$91 million for ~~each of~~ the three months ended June 30, ~~2019 and 2018.~~2020, as compared to $100 million for the three months ended June 30, 2019. This decrease was primarily due to lower USD LIBOR senior secured term loan interest rates without hedged positions.

Foreign currency exchange transaction losses, net, primarily represent the net loss on revaluation of intercompany loans and other receivables and payables denominated in currencies other than the respective entity’s functional currency. Fluctuations in the value of foreign currencies relative to the U.S. Dollar, primarily the Euro, have a significant effect on our operating results. The average U.S. Dollar to Euro exchange rate was $1.10 to €1.00 for the three months ended June 30, 2020 as compared to $1.12 to €1.00 for the three months ended June 30, ~~2019 as compared to $1.19 to €1.00 for the three months ended June 30, 2018.~~2019.

We realized net gains of $3 million and net losses of $1 ~~million and $4~~ million for the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively, resulting primarily from fluctuations in certain foreign currencies associated with intercompany transactions.

Other expense, net of $5$4 million for the three months ended June 30, ~~2018,~~2020, was primarily related to ~~certain costs incurred in connection with~~a loss from businesses classified as held for sale within our ~~June 2018 debt refinancing, as well as~~Media segment, and the write-off of certain previously capitalized deferred financing fees in conjunction with the ~~refinancing, partially offset by certain non-service related pension transactions.~~June 2020 debt refinancing.

The effective tax rates before discrete tax items for the three months ended June 30, 2020 and 2019 were 62% ($40 million tax benefit) and ~~2018 were 15% and 36%~~31% ($46 million tax expense), respectively. The tax rate for the three months ended June 30, ~~2019~~2020 was ~~lower~~higher than the statutory rate as a result of ~~the favorable impact of certain financing activities and the release of certain tax contingencies, offset by~~ the impact of tax rate differences in other jurisdictions where we file tax returns, BEAT tax, and ~~audit settlements.~~withholding taxes. The tax rate for the three months ended June 30, ~~2018~~2019 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns offset by the favorable impact of certain financing activities. ~~The principal reason for~~For the ~~decrease~~three months ended June 30, 2020, the total tax benefit was $38 million. For the three months ended June 30, 2019, the total tax expense was $23 million which includes the favorable impact of releasing certain tax contingencies and other discrete items recognized in the second ~~quarter effective tax rate in 2019 when compared to 2018 was due to tax reform enacted in the United States as well as the release of certain tax contingencies.~~quarter.

The estimated liability for unrecognized tax benefits as of December 31, ~~2018~~2019 was ~~$572~~$164 million. ~~We expect to conclude a number of audits in multiple jurisdictions throughout~~If our tax positions are favorably sustained by the ~~remainder~~taxing authorities, the reversal of the ~~year. Various statutes of limitation are also due to expire. This is likely to result in a decrease in these~~underlying liabilities ~~as well as a reduction in~~would reduce our effective tax rate in ~~the~~ future ~~periods when such matters are concluded.~~periods.

Adjusted EBITDA ~~increased 0.4%~~decreased 9.4% to $426 million for the three months ended June 30, 2020 from $470 million for the three months ended June 30, 2019, ~~from $468 million for the three months ended June 30, 2018, an increase~~a decrease of ~~2.0%~~7.6% on a constant currency basis. See “Results of Operations – Three Months Ended June 30, ~~2019~~2020 Compared to the Three Months Ended June 30, ~~2018”~~2019” for the reconciliation of net income/(loss) to Adjusted EBITDA.

Business Segment Results for the Three Months Ended June 30, ~~2019~~2020 Compared to the Three Months Ended June 30, ~~2018~~2019

The table below sets forth our segment revenue performance data for the three months ended June 30, ~~2019~~2020 compared to the three months ended June 30, ~~2018,~~2019, both on an as-reported and constant currency basis.

(IN MILLIONS)	Three Months Ended June 30, 2019		Three Months Ended June 30, 2018		% Variance 2019 vs. 2018 Reported			Three Months Ended June 30, 2018 Constant Currency		% Variance 2019 vs. 2018 Constant Currency			Three Months Ended June 30, 2020		Three Months Ended June 30, 2019		% Variance 2020 vs. 2019 Reported			Three Months Ended June 30, 2019 Constant Currency		% Variance 2020 vs. 2019 Constant Currency
Measure	$	546	$	560		(2.5	)%	$	537		1.7	%	$	495	$	546		(9.3	)%	$	521		(5.0	)%
Predict/Activate		226		240		(5.8	)%		232		(2.6	)%		190		226		(15.9	)%		219		(13.2	)%
Connect Segment	$	772	$	800		(3.5	)%	$	769		0.4	%	$	685	$	772		(11.3	)%	$	740		(7.4	)%

Audience Measurement	$	622		601		3.5	%	$	597		4.2	%	$	603		622		(3.1	)%	$	618		(2.4	)%
Plan/Optimize		234		246		(4.9	)%		242		(3.3	)%		208		234		(11.1	)%		232		(10.3	)%
Media Segment	$	856	$	847		1.1	%	$	839		2.0	%	$	811	$	856		(5.3	)%	$	850		(4.6	)%
Total	$	1,628	$	1,647		(1.2	)%	$	1,608		1.2	%	$	1,496	$	1,628		(8.1	)%	$	1,590		(5.9	)%

Revenues decreased ~~3.5%~~11.3% to $685 million for the three months ended June 30, 2020 from $772 million for the three months ended June 30, 2019, ~~from $800 million for the three months ended June 30, 2018,~~ or ~~an increase~~a decrease of ~~0.4%~~7.4% on a constant currency basis. Revenues from Measure decreased ~~2.5%~~9.3% to ~~$546~~$495 million, or ~~an increase~~a decrease of ~~1.7% on a constant currency basis. Revenue growth~~5.0% on a constant currency basis, ~~was driven by~~ ~~strong performance in our~~reflecting the impact of the COVID-19 pandemic on retail measurement services ~~and improved trends~~ in ~~the~~ markets that are heavy in traditional trade~~Emerging Markets.~~. Revenues from Predict/Activate decreased ~~5.8%~~15.9% to ~~$226~~$190 million, or a decrease of ~~2.6%~~13.2% on a constant currency ~~basis. Revenues decreased as a result~~basis, reflecting the impact of ~~continued softness~~the COVID-19 pandemic, particularly in ~~areas such as~~custom insights and innovation, ~~and custom analytics.~~partially offset by the January 2020 acquisition of Precima.

Revenues ~~increased 1.1%~~decreased 5.3% to $811 million for the three months ended June 30, 2020 from $856 million for the three months ended June 30, 2019, or a decrease of 4.6% on a constant currency basis.Revenues from ~~$847~~Audience Measurement decreased 3.1% to $603 million, or a decrease of 2.4% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on sports and non-contracted revenue and ongoing pressure in local television. Plan/Optimize revenues decreased 11.1%, or a decrease of 10.3% on a constant currency basis, primarily reflecting the impact of the COVID-19 pandemic on sports, Gracenote auto and short-cycle revenue and ongoing pressure in Telecom.

We do not allocate items below operating income/(loss) to our business segments and therefore the tables below set forth a reconciliation of operating income/(loss) at the business segment level for the three months ended June 30, 2020 and 2019, adjusting for certain items affecting operating income/(loss), such as restructuring charges, depreciation and amortization, share-based compensation expense and certain other items described below resulting in a presentation of our non-GAAP business segment profitability. Non-GAAP business segment profitability provides useful supplemental information to management and investors regarding financial and business trends related to our results of operations. When this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with a meaningful understanding of our ongoing operating performance. It is important to note that the non-GAAP business segment profitability corresponds in total to our consolidated Adjusted EBITDA described within our consolidated results of operations above, which our chief operating decision maker and other members of management use 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. These non-GAAP measures should not be considered as an alternative to net income/(loss), operating income/(loss), cash flows from operating activities or any other performance measures derived in accordance with GAAP as measures of operating performance or cash flows as measures of liquidity. These non-GAAP measures may differ from similarly titled measures used by others and have important limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.

Operating loss was $36 million for the three months ended June 30, ~~2018,~~2020, as compared to operating income of $46 million for the three months ended June 30, 2019. The decrease was primarily driven by the revenue decrease due to the COVID-19 pandemic discussed above, an increase in restructuring charges and depreciation and amortization expense, as well as our continued global investments in our services, including retailer investments for the three months ended June 30, 2020. Non-GAAP business segment income decreased 9.9% on a constant currency basis.

Operating income was $120 million for the three months ended June 30, 2020 as compared to $237 million for the three months ended June 30, 2019. The decrease was driven primarily by the revenue decrease due to the COVID-19 pandemic discussed above, an increase in depreciation and amortization expense and restructuring charges, as well as the long-lived assets impairment for the three months ended June 30, 2020. Non-GAAP business segment income decreased 6.5% on a constant currency basis.

Operating expenses were $56 million for the three months ended June 30, 2020 as compared to $34 million for the three months ended June 30, 2019. The increase was primarily driven by separation-related costs, partially offset by lower business optimization costs and transaction related costs for the three months ended June 30, 2020.

Results of Operations – Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

The following table sets forth, for the periods indicated, the amounts included in our Condensed Consolidated Statements of Operations:

The below table presents a reconciliation from net income/(loss) to Adjusted EBITDA for the six months ended June 30, 2020 and 2019:

Consolidated Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

Revenues decreased 4.3% to $3,055 million for the six months ended June 30, 2020 from $3,191 million for the six months ended June 30, 2019, or a decrease of 2.3% on a constant currency basis. Revenues within our Connect segment decreased 7.1%, or a decrease of 3.6% on a constant currency basis. Revenues within our Media segment decreased 1.7%, or a decrease of 1.1% on a constant currency basis. Refer to the “Business Segment Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019” section for further discussion of our revenue performance.

Cost of revenues decreased 0.6% to $1,385 million for the six months ended June 30, 2020 from $1,394 million for the six months ended June 30, 2019, or an increase of ~~2.0%~~1.3% on a constant currency basis.~~Revenue growth was primarily driven by growth in Audience Measurement, which increased 3.5%~~

Costs within our Connect segment decreased 3.6%, or ~~an increase~~a decrease of ~~4.2%~~0.8% on a constant currency basis, primarily due to ~~continued client adoption of~~ our ~~Total Audience Measurement system, partly offset by pressure in local television measurement. Plan/Optimize revenues decreased 4.9%~~productivity initiatives and lower variable costs associated with lower revenues.

Costs within our Media segment increased 3.9%, or ~~a decrease~~an increase of ~~3.3%~~4.7% on a constant currency basis, primarily ~~driven~~due to the impact of our investments and higher spending on product portfolio management initiatives, partially offset by ~~historical data sales~~productivity initiatives.

Selling, General and Administrative Expenses, Exclusive of Depreciation and Amortization

Selling, general and administrative expenses increased 0.3% to $966 million for the six months ended June 30, 2020 from $963 million for the six months ended June 30, 2019, or an increase of 2.5% on a constant currency basis.

Costs within our Connect segment decreased 8.4%, or a decrease of 5.3% on a constant currency basis. Selling, general and administrative expenses decreased primarily due to the impact of our productivity initiatives.

Costs within our Media segment decreased 5.6%, or a decrease of 4.8% on a constant currency basis. Selling, general and administrative expenses decreased primarily due to the impact of our productivity initiatives.

Costs within our Corporate segment increased 171% on a reported and constant currency basis, primarily due to separation-related costs relating to the separation of our Global Connect business from our Global Media business. These costs include third-party advisor costs, technology and other similar costs associated with separating the businesses and operations.

Depreciation and amortization expense was $438 million for the six months ended June 30, 2020 as compared to $364 million for the six months ended June 30, 2019. This increase was primarily due to higher depreciation and amortization expense associated with higher capital expenditures, partially offset by lower depreciation and amortization expense associated with tangible and intangible assets acquired in business combinations.

Depreciation and amortization expense associated with tangible and intangible assets acquired in business combinations was $101 million for the six months ended June 30, 2020 as compared to $107 million for the six months ended June 30, 2019.

We recorded a non-cash charge of $45 million for the impairment of other long-lived assets for the six months ended June 30, 2020, related to management’s decision to exit certain smaller, underperforming markets and non-core businesses. This charge was primarily recorded within our Media segment.

We recorded $95 million in restructuring charges for the six months ended June 30, 2020. These charges primarily related to severance costs associated with employee separation packages.

We recorded $47 million in restructuring charges primarily relating to employee severance costs associated with our plans to reduce selling, general and administrative expenses as well as automation initiatives for the six months ended June 30, 2019.

Operating income for the six months ended June 30, 2020 was $126 million as compared to $423 million for the six months ended June 30, 2019. Operating loss within our Connect segment was $51 million for the six months ended June 30, 2020 as compared to $44 million for the six months ended June 30, 2019. Operating income within our Media segment was $311 million for the six months ended June 30, 2020 as compared to $451 million for the six months ended June 30, 2019. Corporate operating expenses were $134 million for the six months ended June 30, 2020 as compared to $72 million for the six months ended June 30, 2019. Refer to the “Business Segment Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019” section for further discussion of our operating income.

Interest expense was $185 million for the six months ended June 30, 2020 as compared to $199 million for the six months ended June 30, 2019. This decrease was primarily due to lower USD LIBOR senior secured term loan interest rates without hedged positions.

Foreign currency exchange transaction losses, net, primarily represent the net loss on revaluation of intercompany loans and other receivables and payables denominated in currencies other than the respective entity’s functional currency. Fluctuations in the value of foreign currencies relative to the U.S. Dollar, primarily the Euro, have a significant effect on our operating results. The average U.S. Dollar to Euro exchange rate was $1.10 to €1.00 for the six months ended June 30, 2020 as compared to $1.13 to €1.00 for the six months ended June 30, 2019.

We realized net losses of $3 million and $4 million for the six months ended June 30, 2020 and 2019, respectively, resulting primarily from fluctuations in certain foreign currencies associated with intercompany transactions.

Other expense, net of $5 million for the six months ended June 30, 2020, was primarily related to a ~~product category exit~~ loss from businesses classified as held for sale within our Media segment, and ~~pressure~~the write-off of certain previously capitalized deferred financing fees in ~~Telecom,~~ conjunction with the June 2020 debt refinancing.

Other income, net of $5 million for the six months ended June 30, 2019, was primarily related to certain non-service related pension transactions and a gain from the sale of a cost method investment.

The effective tax rates before discrete tax items for the six months ended June 30, 2020 and 2019 were 62% ($41 million tax benefit) and 31% ($71 million tax expense), respectively. The tax rate for the six months ended June 30, 2020 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns, BEAT tax, and withholding taxes offset by reversal of valuation allowance related to certain loss carryforwards. The tax rate for the six months ended June 30, 2019 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns offset by the favorable impact of certain financing activities. For the six months ended June 30, 2020, the total tax benefit was $27 million which includes the impact of the CARES Act and other discrete items recognized in the period. For the six months ended June 30, 2019, the total tax expense was $55 million which includes the favorable impact of releasing certain tax contingencies and other discrete items recognized in the period.

Adjusted EBITDA decreased 7.2% to $821 million for the six months ended June 30, 2020 from $885 million for the six months ended June 30, 2019, a decrease of 5.4% on a constant currency basis. See “Results of Operations – Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019” for the reconciliation of net income to Adjusted EBITDA.

Business Segment Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

The table below sets forth our segment revenue performance data for the six months ended June 30, 2020 compared to the six months ended June 30, 2019, both on an as-reported and constant currency basis.

Revenues decreased 7.1% to $1,402 million for the six months ended June 30, 2020 from $1,509 million for the six months ended June 30, 2019, or a decrease of 3.6% on a constant currency basis. Revenues from Measure decreased 7.4% to $1,005 million, or a decrease of 3.6% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on retail measurement services in markets that are heavy in traditional trade. Revenues from Predict/Activate decreased 6.4% to $397 million, or a decrease of 3.6% on a constant currency basis, reflecting the impact of the COVID-19 pandemic, particularly in custom insights and innovation, partially offset by the January 2020 acquisition of Precima.

Revenues decreased 1.7% to $1,653 million for the six months ended June 30, 2020 from $1,682 million for the six months ended June 30, 2019, or a ~~recent acquisition.~~decrease of 1.1% on a constant currency basis. Revenues from Audience Measurement decreased 0.7%, or a decrease of 0.2% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on sports and non-contracted revenue and ongoing pressure in local television. Plan/Optimize revenues decreased 4.4%, or a decrease of 3.5% on a constant currency basis, primarily reflecting the impact of the COVID-19 pandemic on sports, Gracenote auto and short-cycle revenue and ongoing pressure in Telecom.

~~We do not allocate items below operating income/(loss) to our business segments~~Corporate Expenses and therefore the tables below set forth a reconciliation of operating income/(loss) at the business segment level for the three months ended June 30, 2019 and 2018, adjusting for certain items affecting operating income/(loss), such as restructuring charges, depreciation and amortization, share-based compensation expense and certain other items described below resulting in a presentation of our non-GAAP business segment profitability. Non-GAAP business segment profitability provides useful supplemental information to management and investors regarding financial and business trends related to our results of operations. When this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with a meaningful understanding of our ongoing operating performance. It is important to note that the non-GAAP business segment profitability corresponds in total to our consolidated Adjusted EBITDA described within our consolidated results of operations above, which our chief operating decision maker and other members of management use 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. These non-GAAP measures should not be considered as an alternative to net income/(loss), operating income/(loss), cash flows from operating activities or any other performance measures derived in accordance with GAAP as measures of operating performance or cash flows as measures of liquidity. These non-GAAP measures may differ from similarly titled measures used by others and have important limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.

Operating ~~income was $46~~expenses were $56 million for the three months ended June 30, ~~2019~~2020 as compared to ~~operating income of $1~~$34 million for the three months ended June 30, ~~2018.~~2019. The increase was primarily driven by ~~a decrease in restructuring charges,~~separation-related costs, partially offset by ~~the revenue performance mentioned above~~lower business optimization costs and transaction related costs for the three months ended June 30, ~~2019. Non-GAAP~~2020.

Results of Operations – Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

The following table sets forth, for the periods indicated, the amounts included in our Condensed Consolidated Statements of Operations:

The below table presents a reconciliation from net income/(loss) to Adjusted EBITDA for the six months ended June 30, 2020 and 2019:

Consolidated Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

Revenues decreased 4.3% to $3,055 million for the six months ended June 30, 2020 from $3,191 million for the six months ended June 30, 2019, or a decrease of 2.3% on a constant currency basis. Revenues within our Connect segment ~~income increased 0.9%~~decreased 7.1%, or a decrease of 3.6% on a constant currency basis. Revenues within our Media segment decreased 1.7%, or a decrease of 1.1% on a constant currency basis. Refer to the “Business Segment Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019” section for further discussion of our revenue performance.

Cost of revenues decreased 0.6% to $1,385 million for the six months ended June 30, 2020 from $1,394 million for the six months ended June 30, 2019, or an increase of 1.3% on a constant currency basis.

Costs within our Connect segment decreased 3.6%, or a decrease of 0.8% on a constant currency basis, primarily due to our productivity initiatives and lower variable costs associated with lower revenues.

Costs within our Media ~~Segment Profitability~~ segment increased 3.9%, or an increase of 4.7% on a constant currency basis, primarily due to the impact of our investments and higher spending on product portfolio management initiatives, partially offset by productivity initiatives.

~~Operating income was $237~~Selling, General and Administrative Expenses, Exclusive of Depreciation and Amortization

Selling, general and administrative expenses increased 0.3% to $966 million for the ~~three~~six months ended June 30, 2020 from $963 million for the six months ended June 30, 2019, ~~as compared~~or an increase of 2.5% on a constant currency basis.

Costs within our Connect segment decreased 8.4%, or a decrease of 5.3% on a constant currency basis. Selling, general and administrative expenses decreased primarily due to ~~$252~~the impact of our productivity initiatives.

Depreciation and amortization expense was $438 million for the ~~three~~six months ended June 30, ~~2018. The decrease was driven primarily by an increase in depreciation and amortization expense, partially offset by the revenue performance discussed above~~2020 as compared to $364 million for the ~~three~~six months ended June 30, 2019. ~~Non-GAAP~~This increase was primarily due to higher depreciation and amortization expense associated with higher capital expenditures, partially offset by lower depreciation and amortization expense associated with tangible and intangible assets acquired in business combinations.

We recorded $95 million in restructuring charges for the six months ended June 30, 2020. These charges primarily related to severance costs associated with employee separation packages.

Operating income for the six months ended June 30, 2020 was $126 million as compared to $423 million for the six months ended June 30, 2019. Operating loss within our Connect segment was $51 million for the six months ended June 30, 2020 as compared to $44 million for the six months ended June 30, 2019. Operating income ~~increased 2.2%~~within our Media segment was $311 million for the six months ended June 30, 2020 as compared to $451 million for the six months ended June 30, 2019. Corporate operating expenses were $134 million for the six months ended June 30, 2020 as compared to $72 million for the six months ended June 30, 2019. Refer to the “Business Segment Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019” section for further discussion of our operating income.

Foreign currency exchange transaction losses, net, primarily represent the net loss on revaluation of intercompany loans and other receivables and payables denominated in currencies other than the respective entity’s functional currency. Fluctuations in the value of foreign currencies relative to the U.S. Dollar, primarily the Euro, have a significant effect on our operating results. The average U.S. Dollar to Euro exchange rate was $1.10 to €1.00 for the six months ended June 30, 2020 as compared to $1.13 to €1.00 for the six months ended June 30, 2019.

Other expense, net of $5 million for the six months ended June 30, 2020, was primarily related to a loss from businesses classified as held for sale within our Media segment, and the write-off of certain previously capitalized deferred financing fees in conjunction with the June 2020 debt refinancing.

Other income, net of $5 million for the six months ended June 30, 2019, was primarily related to certain non-service related pension transactions and a gain from the sale of a cost method investment.

Business Segment Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

Revenues decreased 1.7% to $1,653 million for the six months ended June 30, 2020 from $1,682 million for the six months ended June 30, 2019, or a decrease of 1.1% on a constant currency basis. Revenues from Audience Measurement decreased 0.7%, or a decrease of 0.2% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on sports and non-contracted revenue and ongoing pressure in local television. Plan/Optimize revenues decreased 4.4%, or a decrease of 3.5% on a constant currency basis, primarily reflecting the impact of the COVID-19 pandemic on sports, Gracenote auto and short-cycle revenue and ongoing pressure in Telecom.

Operating income for the three months ended June 30, 2020 was $28 million as compared to $249 million for the three months ended June 30, 2019. Operating loss within our Connect segment was $36 million for the three months ended June 30, 2020 as compared to operating income of $46 million for the three months ended June 30, 2019. Operating income within our Media segment was $120 million for the three months ended June 30, 2020 as compared to $237 million for the three months ended June 30, 2019.

Corporate operating expenses were $56 million for the three months ended June 30, 2020 as compared to $34 million for the three months ended June 30, ~~2019 as compared~~2019. Refer to ~~$25~~the “Business Segment Results for the Three Months Ended June 30, 2020 Compared to the Three Months Ended June 30, 2019” section for further discussion of our operating income.

Interest expense was $91 million for the three months ended June 30, ~~2018. The increase~~2020, as compared to $100 million for the three months ended June 30, 2019. This decrease was primarily ~~driven by an increase~~due to lower USD LIBOR senior secured term loan interest rates without hedged positions.

Foreign currency exchange transaction losses, net, primarily represent the net loss on revaluation of intercompany loans and other receivables and payables denominated in ~~business optimization costs, transaction related costs and share-based compensation expense~~currencies other than the respective entity’s functional currency. Fluctuations in the value of foreign currencies relative to the U.S. Dollar, primarily the Euro, have a significant effect on our operating results. The average U.S. Dollar to Euro exchange rate was $1.10 to €1.00 for the three months ended June 30, 2020 as compared to $1.12 to €1.00 for the three months ended June 30, 2019.

~~Results~~We realized net gains of ~~Operations – Six Months Ended~~$3 million and net losses of $1 million for the three months ended June 30, 2020 and 2019, ~~Compared to~~respectively, resulting primarily from fluctuations in certain foreign currencies associated with intercompany transactions.

Other expense, net of $4 million for the ~~Six Months Ended~~three months ended June 30, ~~2018~~2020, was primarily related to a loss from businesses classified as held for sale within our Media segment, and the write-off of certain previously capitalized deferred financing fees in conjunction with the June 2020 debt refinancing.

The ~~following table sets forth,~~effective tax rates before discrete tax items for the ~~periods indicated, the amounts included in our Condensed Consolidated Statements of Operations:~~

three months ended June 30, 2020 and 2019 were 62% ($40 million tax benefit) and 31% ($46 million tax expense), respectively. The ~~below table presents a reconciliation from net income/(loss) to Adjusted EBITDA~~tax rate for the ~~six~~three months ended June 30, 2020 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns, BEAT tax, and withholding taxes. The tax rate for the three months ended June 30, 2019 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns offset by the favorable impact of certain financing activities. For the three months ended June 30, 2020, the total tax benefit was $38 million. For the three months ended June 30, 2019, the total tax expense was $23 million which includes the favorable impact of releasing certain tax contingencies and ~~2018:~~other discrete items recognized in the second quarter.

The estimated liability for unrecognized tax benefits as of December 31, 2019 was $164 million. If our tax positions are favorably sustained by the taxing authorities, the reversal of the underlying liabilities would reduce our effective tax rate in future periods.

Adjusted EBITDA decreased 9.4% to $426 million for the three months ended June 30, 2020 from $470 million for the three months ended June 30, 2019, a decrease of 7.6% on a constant currency basis. See “Results of Operations – Three Months Ended June 30, 2020 Compared to the Three Months Ended June 30, 2019” for the reconciliation of net income/(loss) to Adjusted EBITDA.

Business Segment Results for the Three Months Ended June 30, 2020 Compared to the Three Months Ended June 30, 2019

The table below sets forth our segment revenue performance data for the three months ended June 30, 2020 compared to the three months ended June 30, 2019, both on an as-reported and constant currency basis.

Revenues decreased 11.3% to $685 million for the three months ended June 30, 2020 from $772 million for the three months ended June 30, 2019, or a decrease of 7.4% on a constant currency basis. Revenues from Measure decreased 9.3% to $495 million, or a decrease of 5.0% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on retail measurement services in markets that are heavy in traditional trade. Revenues from Predict/Activate decreased 15.9% to $190 million, or a decrease of 13.2% on a constant currency basis, reflecting the impact of the COVID-19 pandemic, particularly in custom insights and innovation, partially offset by the January 2020 acquisition of Precima.

Revenues decreased 5.3% to $811 million for the three months ended June 30, 2020 from $856 million for the three months ended June 30, 2019, or a decrease of 4.6% on a constant currency basis.Revenues from Audience Measurement decreased 3.1% to $603 million, or a decrease of 2.4% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on sports and non-contracted revenue and ongoing pressure in local television. Plan/Optimize revenues decreased 11.1%, or a decrease of 10.3% on a constant currency basis, primarily reflecting the impact of the COVID-19 pandemic on sports, Gracenote auto and short-cycle revenue and ongoing pressure in Telecom.

~~Consolidated Results for the Six Months Ended June 30, 2019 Compared to the Six Months Ended June 30, 2018~~

Operating loss was $36 million for the ~~six~~three months ended June 30, ~~2019 from $3,257~~2020, as compared to operating income of $46 million for the ~~six~~three months ended June 30, ~~2018, or~~2019. The decrease was primarily driven by the revenue decrease due to the COVID-19 pandemic discussed above, an increase ~~of 0.8% on a constant currency basis. Revenues within~~in restructuring charges and depreciation and amortization expense, as well as our ~~Connect segment decreased 4.9%, or a decrease of 0.1% on a constant currency basis. Revenues within~~continued global investments in our ~~Media segment increased 0.7%, or an increase of 1.7% on a constant currency basis. Refer to the “Business Segment Results~~services, including retailer investments for the ~~Six Months Ended June 30, 2019 Compared to the Six Months Ended June 30, 2018” section for further discussion of our revenue performance.~~

~~Cost of revenues decreased 1.6% to $1,394 million for the six~~three months ended June 30, ~~2019 from $1,417 million for the six months ended June 30, 2018, or an increase of 1.3%~~2020. Non-GAAP business segment income decreased 9.9% on a constant currency basis.

~~Costs within our Connect segment decreased 4.8%, or a decrease of 0.5% on a constant currency basis, primarily due to our productivity initiatives.~~Media Segment Profitability

Costs within our Media segment increased 2.9%, or an increase of 4.0% on a constant currency basis, primarily due to the impact of our investments and higher spending on product portfolio management initiatives, partially offset by productivity initiatives.

~~Selling, General and Administrative Expenses, Exclusive of Depreciation and Amortization~~

~~Selling, general and administrative expenses decreased 2.4% to $963~~Operating income was $120 million for the ~~six~~three months ended June 30, ~~2019 from $987~~2020 as compared to $237 million for the ~~six~~three months ended June 30, ~~2018, or~~2019. The decrease was driven primarily by the revenue decrease due to the COVID-19 pandemic discussed above, an increase ~~of 1.0%~~in depreciation and amortization expense and restructuring charges, as well as the long-lived assets impairment for the three months ended June 30, 2020. Non-GAAP business segment income decreased 6.5% on a constant currency basis.

Costs within our Connect segment decreased 4.5%, or an increase of 0.4% on a constant currency basis. Selling, general and administrative expenses increased on a constant currency basis due to our continued global investments in our services.

Costs within our Media segment decreased 2.6%, or a decrease of 1.1% on a constant currency basis. Selling, general and administrative expenses decreased primarily due to the impact of our productivity initiatives.

Depreciation and amortization expense was $364 million for the six months ended June 30, 2019 as compared to $329 million for the six months ended June 30, 2018. This increase was primarily due to higher depreciation and amortization expense associated with higher capital expenditures.

Depreciation and amortization expense associated with tangible and intangible assets acquired in business combinations was $107 million for the six months ended June 30, 2019 as compared to $112 million for the six months ended June 30, 2018.

We recorded $47 million and $89 million in restructuring charges primarily relating to employee severance costs associated with our plans to reduce selling, general and administrative expenses as well as automation initiatives for the six months ended June 30, 2019 and 2018, respectively.

Operating income for the ~~six~~three months ended June 30, ~~2019~~2020 was ~~$423~~$28 million as compared to ~~$435~~$249 million for the ~~six~~three months ended June 30, ~~2018.~~2019. Operating ~~income~~loss within our Connect segment was ~~$44~~$36 million for the ~~six~~three months ended June 30, ~~2019~~2020 as compared to ~~$15~~operating income of $46 million for the ~~six~~three months ended June 30, ~~2018.~~2019. Operating income within our Media segment was ~~$451~~$120 million for the ~~six~~three months ended June 30, ~~2019~~2020 as compared to ~~$475~~$237 million for the ~~six~~three months ended June 30, ~~2018.~~ 2019.

Corporate operating expenses were ~~$72~~$56 million for the ~~six~~three months ended June 30, ~~2019~~2020 as compared to ~~$55~~$34 million for the ~~six~~three months ended June 30, ~~2018.~~2019. Refer to the “Business Segment Results for the ~~Six~~Three Months Ended June 30, ~~2019~~2020 Compared to the ~~Six~~Three Months Ended June 30, ~~2018”~~2019” section for further discussion of our operating income.

Interest expense was ~~$199~~$91 million for the ~~six~~three months ended June 30, ~~2019~~2020, as compared to ~~$196~~$100 million for the ~~six~~three months ended June 30, ~~2018.~~2019. This ~~increase~~decrease was primarily due to ~~higher~~lower USD LIBOR senior secured term loan interest rates without hedged positions.

Foreign currency exchange transaction losses, net, primarily represent the net loss on revaluation of intercompany loans and other receivables and payables denominated in currencies other than the respective entity’s functional currency. Fluctuations in the value of foreign currencies relative to the U.S. Dollar, primarily the Euro, have a significant effect on our operating results. The average U.S. Dollar to Euro exchange rate was ~~$1.13~~$1.10 to €1.00 for the ~~six~~three months ended June 30, ~~2019~~2020 as compared to ~~$1.21~~$1.12 to €1.00 for the ~~six~~three months ended June 30, ~~2018.~~2019.

We realized net gains of $3 million and net losses of $4$1 million for ~~each of~~ the ~~six~~three months ended June 30, 2020 and 2019, ~~and 2018,~~respectively, resulting primarily from fluctuations in certain foreign currencies associated with intercompany transactions.

Other expense, net of $4 million for the three months ended June 30, 2020, was primarily related to a loss from businesses classified as held for sale within our Media segment, and the write-off of certain previously capitalized deferred financing fees in conjunction with the June 2020 debt refinancing.

The effective tax rates before discrete tax items for the three months ended June 30, 2020 and 2019 were 62% ($40 million tax benefit) and 31% ($46 million tax expense), respectively. The tax rate for the three months ended June 30, 2020 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns, BEAT tax, and withholding taxes. The tax rate for the three months ended June 30, 2019 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns offset by the favorable impact of certain financing activities. For the three months ended June 30, 2020, the total tax benefit was $38 million. For the three months ended June 30, 2019, the total tax expense was $23 million which includes the favorable impact of releasing certain tax contingencies and other discrete items recognized in the second quarter.

Business Segment Results for the Three Months Ended June 30, 2020 Compared to the Three Months Ended June 30, 2019

Operating loss was $36 million for the three months ended June 30, 2020, as compared to operating income of $46 million for the three months ended June 30, 2019. The decrease was primarily driven by the revenue decrease due to the COVID-19 pandemic discussed above, an increase in restructuring charges and depreciation and amortization expense, as well as our continued global investments in our services, including retailer investments for the three months ended June 30, 2020. Non-GAAP business segment income decreased 9.9% on a constant currency basis.

Results of Operations – Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

The following table sets forth, for the periods indicated, the amounts included in our Condensed Consolidated Statements of Operations:

The below table presents a reconciliation from net income/(loss) to Adjusted EBITDA for the six months ended June 30, 2020 and 2019:

Consolidated Results for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019

Costs within our Media segment increased 3.9%, or an increase of 4.7% on a constant currency basis, primarily due to the impact of our investments and higher spending on product portfolio management initiatives, partially offset by productivity initiatives.

Selling, General and Administrative Expenses, Exclusive of Depreciation and Amortization

We recorded $95 million in restructuring charges for the six months ended June 30, 2020. These charges primarily related to severance costs associated with employee separation packages.

Foreign currency exchange transaction losses, net, primarily represent the net loss on revaluation of intercompany loans and other receivables and payables denominated in currencies other than the respective entity’s functional currency. Fluctuations in the value of foreign currencies relative to the U.S. Dollar, primarily the Euro, have a significant effect on our operating results. The average U.S. Dollar to Euro exchange rate was $1.10 to €1.00 for the six months ended June 30, 2020 as compared to $1.13 to €1.00 for the six months ended June 30, 2019.

Other income, net of $5 million for the six months ended June 30, 2019, was primarily related to certain non-service related pension transactions and a gain from the sale of a cost method investment.

The effective tax rates before discrete tax items for the six months ended June 30, 2018, was primarily related to certain costs incurred in connection with the June 2018 debt refinancing as well as the write-off of certain previously capitalized deferred financing fees in conjunction with the refinancing, partially offset by certain non-service related pension transactions.

2020 and 2019 were 62% ($41 million tax benefit) and 31% ($71 million tax expense), respectively. The ~~effective~~ tax ~~rates~~rate for the six months ended June 30, ~~2019~~2020 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns, BEAT tax, and ~~2018 were 24% and 35%, respectively.~~withholding taxes offset by reversal of valuation allowance related to certain loss carryforwards. The tax rate for the six months ended June 30, 2019 was higher than the statutory rate as a result of the impact of tax rate differences in other jurisdictions where we file tax returns and audit settlements, offset by the favorable impact of certain financing activities and the release of certain tax contingencies. The tax rate for the six months ended June 30, 2018 was higher than the statutory rate primarily as a result of the impact of tax rate differences in other jurisdictions where we file tax returns, offset by the favorable impact of certain financing activities. ~~The principal reason for~~For the ~~decrease~~six months ended June 30, 2020, the total tax benefit was $27 million which includes the impact of the CARES Act and other discrete items recognized in the ~~first half effective~~period. For the six months ended June 30, 2019, the total tax ~~rate in 2019 when compared to 2018~~expense was ~~due to tax reform enacted within~~$55 million which includes the ~~United States as well as the release~~favorable impact of releasing certain tax ~~contingencies.~~contingencies and other discrete items recognized in the period.

Adjusted EBITDA decreased ~~0.7%~~7.2% to $821 million for the six months ended June 30, 2020 from $885 million for the six months ended June 30, 2019, ~~from $891 million for the six months ended June 30, 2018, an increase~~a decrease of ~~1.3%~~5.4% on a constant currency basis. See “Results of Operations – Six Months Ended June 30, ~~2019~~2020 Compared to the Six Months Ended June 30, ~~2018”~~2019” for the reconciliation of net income to Adjusted EBITDA.

Business Segment Results for the Six Months Ended June 30, ~~2019~~2020 Compared to the Six Months Ended June 30, ~~2018~~2019

The table below sets forth our segment revenue performance data for the six months ended June 30, ~~2019~~2020 compared to the six months ended June 30, ~~2018,~~2019, both on an as-reported and constant currency basis.

(IN MILLIONS)	Six Months Ended June 30, 2019		Six Months Ended June 30, 2018		% Variance 2019 vs. 2018 Reported			Six Months Ended June 30, 2018 Constant Currency		% Variance 2019 vs. 2018 Constant Currency			Six Months Ended June 30, 2020		Six Months Ended June 30, 2019		% Variance 2020 vs. 2019 Reported			Six Months Ended June 30, 2019 Constant Currency		% Variance 2020 vs. 2019 Constant Currency
Measure	$	1,085	$	1,123		(3.4	)%	$	1,067		1.7	%	$	1,005	$	1,085		(7.4	)%	$	1,043		(3.6	)%
Predict/Activate		424		463		(8.4	)%		444		(4.5	)%		397		424		(6.4	)%		412		(3.6	)%
Connect Segment	$	1,509	$	1,586		(4.9	)%	$	1,511		(0.1	)%	$	1,402	$	1,509		(7.1	)%	$	1,455		(3.6	)%

Audience Measurement	$	1,227	$	1,197		2.5	%	$	1,189		3.2	%	$	1,218	$	1,227		(0.7	)%	$	1,220		(0.2	)%
Plan/Optimize		455		474		(4.0	)%		465		(2.2	)%		435		455		(4.4	)%		451		(3.5	)%
Media Segment	$	1,682	$	1,671		0.7	%	$	1,654		1.7	%	$	1,653	$	1,682		(1.7	)%	$	1,671		(1.1	)%
Total	$	3,191	$	3,257		(2.0	)%	$	3,165		0.8	%	$	3,055	$	3,191		(4.3	)%	$	3,126		(2.3	)%

Revenues decreased ~~4.9%~~7.1% to $1,402 million for the six months ended June 30, 2020 from $1,509 million for the six months ended June 30, 2019, ~~from $1,586 million for the six months ended June 30, 2018,~~ or a decrease of ~~0.1%~~3.6% on a constant currency basis. Revenues from Measure decreased ~~3.4%~~7.4% to ~~$1,085~~$1,005 million, or ~~an increase~~a decrease of ~~1.7% on a constant currency basis. Revenue growth~~3.6% on a constant currency basis, ~~was driven by strong~~ ~~performance in our~~reflecting the impact of the COVID-19 pandemic on retail measurement services ~~and improved trends~~ in ~~the Emerging Markets.~~markets that are heavy in traditional trade. Revenues from Predict/Activate decreased ~~8.4%~~6.4% to ~~$424~~$397 million, or a decrease of ~~4.5%~~3.6% on a constant currency ~~basis. Revenues decreased as a result~~basis, reflecting the impact of ~~continued softness~~the COVID-19 pandemic, particularly in ~~areas such as~~custom insights and innovation, ~~and custom analytics.~~partially offset by the January 2020 acquisition of Precima.

Revenues ~~increased 0.7%~~decreased 1.7% to $1,653 million for the six months ended June 30, 2020 from $1,682 million for the six months ended June 30, 2019, ~~from $1,671 million for the six months ended June 30, 2018,~~ or ~~an increase~~a decrease of ~~1.7%~~1.1% on a constant currency basis. ~~Revenue growth was primarily driven by growth in~~Revenues from Audience Measurement ~~which increased 2.5%~~decreased 0.7%, or ~~an increase~~a decrease of ~~3.2%~~0.2% on a constant currency basis, ~~primarily due to continued client adoption~~reflecting the impact of ~~our Total Audience Measurement system, partly offset by~~the COVID-19 pandemic on sports and non-contracted revenue and ongoing pressure in local television ~~measurement.~~. Plan/Optimize revenues decreased ~~4.0%~~4.4%, or a decrease of ~~2.2%~~3.5% on a constant currency basis, primarily ~~driven by historical data sales related to a product category exit~~reflecting the impact of the COVID-19 pandemic on sports, Gracenote auto and short-cycle revenue and ongoing pressure in Telecom ~~partially offset by a recent acquisition.~~.

(IN MILLIONS)	Six Months Ended June 30, 2019 Reported			Six Months Ended June 30, 2018 Reported			% Variance 2019 vs. 2018 Reported			Six Months Ended June 30, 2018 Constant Currency			% Variance 2019 vs. 2018 Constant Currency			Six Months Ended June 30, 2020 Reported			Six Months Ended June 30, 2019 Reported			% Variance 2020 vs. 2019 Reported			Six Months Ended June 30, 2019 Constant Currency			% Variance 2020 vs. 2019 Constant Currency
Non-GAAP Business Segment Income/(Loss)
Connect	$	188		$	200			(6.0	)%	$	187			0.5	%	$	154		$	188			(18.1	)%	$	173			(11.0	)%
Media		718			712			0.8	%		708			1.4	%		689			718			(4.0	)%		716			(3.8	)%
Corporate and Eliminations		(21	)		(21	)		NM			(21	)		NM			(22	)		(21	)		NM			(21	)		NM
Total Nielsen	$	885		$	891			(0.7	)%	$	874			1.3	%	$	821		$	885			(7.2	)%	$	868			(5.4	)%

Operating ~~income~~loss was ~~$44~~$51 million for the six months ended June 30, ~~2019~~2020 as compared to ~~$15~~$44 of operating income million for the six months ended June 30, ~~2018.~~2019. The ~~increase~~decrease was driven primarily by ~~lower~~the revenue decrease due to the COVID-19 pandemic discussed above, higher restructuring costs ~~partially offset by the revenue performance mentioned above~~and higher depreciation and amortization expense for the six months ended June 30, ~~2019.~~2020. Non-GAAP business segment income decreased ~~0.5%~~11.0% on a constant currency basis.

Operating income was $311 million for the six months ended June 30, 2020 as compared to $451 million for the six months ended June 30, ~~2019 as compared to $475 million for the six months ended June 30, 2018.~~2019. The decrease was driven primarily by the revenue decrease due to the COVID-19 pandemic discussed above, higher depreciation and amortization expense, ~~partially offset by~~ the ~~revenue performance discussed above~~impairment of other long-lived assets, and ~~lower~~higher restructuring charges for the six months ended June 30, ~~2019.~~2020. Non-GAAP business segment income ~~increased 1.4%~~decreased 3.8% on a constant currency basis.

Operating expenses were $134 million for the six months ended June 30, 2020 as compared to $72 million for the six months ended June 30, ~~2019 as compared to $55 million~~2019. The increase was driven primarily by separation-related costs for the six months ended June 30, 2018. The increase was driven primarily by higher business optimization costs and transaction related costs, higher restructuring charges and higher share-based compensation expense for the six months ended June 30, 2019.2020.

Cash flows from operations were $245 million for the six months ended June 30, 2020 as compared to $183 million for the six months ended June 30, 2019, ~~as compared to $125 million for the six months ended June 30, 2018,~~ an increase of ~~$58~~$62 million primarily due to working capital timing and lower income tax payments and interest payments, partially offset by the Adjusted EBITDA performance discussed above and higher employee annual incentive ~~payments and lower retailer investments, partially offset by working capital timing.~~payments.

We provide additional liquidity through several sources including maintaining an adequate cash balance, access to global funding sources and a committed revolving credit facility. The following table provides a summary of the major sources of liquidity as of and for the six months ended June 30, ~~2019~~2020 and ~~2018:~~2019:

(IN MILLIONS)	Six Months Ended June 30, 2019		Six Months Ended June 30, 2018		Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
Net cash from operating activities	$	183	$	125	$	245	$	183
Cash and cash equivalents	$	393	$	394	$	438	$	393
Availability under revolving credit facility	$	539	$	591	$	668	$	539

Of the ~~$393~~$438 million in cash and cash equivalents, approximately ~~$349~~$378 million was held in jurisdictions outside the U.S. and as a result there may be tax consequences if such amounts were moved out of these jurisdictions or repatriated to the U.S. We regularly review the amount of cash and cash equivalents held outside of the U.S. to determine the amounts necessary to fund the current operations of our foreign operations and their growth initiatives and amounts needed to service our U.S. indebtedness and related obligations.

The below table illustrates our weighted average interest rate and cash paid for interest over the six months ended June 30, ~~2019~~2020 and ~~2018.~~2019.

	Six Months Ended June 30, 2019			Six Months Ended June 30, 2018			Six Months Ended June 30, 2020			Six Months Ended June 30, 2019
Weighted average interest rate		4.67	%		4.50	%		3.77	%		4.67	%
Cash paid for interest, net of amounts capitalized (in millions)	$	193		$	196		$	190		$	193

Our contractual obligations, commitments and debt service requirements over the next several years are significant. We believe we will have available resources to meet both our short-term and long-term liquidity requirements, including our senior secured debt service. We expect the cash flow from our operations, combined with existing cash and amounts available under the revolving credit facility, will provide sufficient liquidity to fund our current obligations, projected working capital requirements, restructuring obligations, dividend payments and capital spending over the next year. In addition, we may, from time to time, purchase, repay, redeem or retire any of our outstanding debt securities (including any publicly issued debt securities) in privately negotiated or open market transactions, by tender offer or otherwise.

In June 2020, we entered into a Credit Agreement that provides for: (i) a new dollar term loan facility, the “Dollar Term B-5 Loans”) having commitments in an aggregate principal amount of $550 million and (ii) a new euro term loan facility, the “Euro Term B-3 Loans” in an aggregate principal amount of €420 million. On June 4, 2020, Nielsen borrowed the full amount of the Dollar Term B-5 Loans and the Euro Term B-3 Loans.

The proceeds of the Dollar Term B-5 Loans and Euro Term B-3 Loans were used to redeem all of the $800 million outstanding aggregate principal amount of their 4.500% Notes due 2020 and redeem $200 million of the $625 million outstanding aggregate principal amount of its 5.500% Senior Notes due 2021. The partial redemption of the Notes resulted in $425 million aggregate principal amount of 2021 Notes remaining outstanding.

The Dollar Term B-5 Loans and the Euro Term B-3 Loans will mature in full on the earlier of (i) June 4, 2025 and (ii) if the existing Class B Term Loans incurred pursuant to and as defined in the Existing Credit Agreement have not been repaid or refinanced (subject to additional limitations in the Credit Agreement) on or prior to the date that is 91 days prior to October 4, 2023, on October 4, 2023.

The Dollar Term B-5 Loans bear interest at a rate per annum equal to, at the election of us, (i) a base rate or eurocurrency rate, plus (ii) an applicable margin of 2.75%, in the case of base rate loans, and 3.75%, in the case of eurocurrency rate loans. The Euro Term B-3 Loans bear interest at a rate per annum equal to (i) a eurocurrency rate plus (ii) an applicable margin of 3.75%.

The Credit Agreement contains substantially the same affirmative and negative covenants as those of the Fifth Amended and Restated Credit Agreement, dated as of June 29, 2018 (as amended, restated, supplemented, replaced or otherwise modified from time to time), however, the Credit Agreement expressly permits actions in connection with and resulting in the disposition of Nielsen Global Connect, including by way of a spin-off of the Connect Business, as previously announced by us. The obligations under the Credit Agreement are secured on a pari passu basis with the obligations under the Existing Credit Agreement.

We wrote-off certain previously capitalized deferred financing fees of $1 million associated with the June 2020 debt refinancing and capitalized certain costs in connection with the refinancing of $9 million.

In July, 2020, we entered into Amendment No. 1 (“Amendment No. 1”), relating to its Credit Agreement, dated as of June 4, 2020. Pursuant to Amendment No. 1, we incurred new Euro Term B-3 Loans in an aggregate principal amount of €240 million (the “Incremental Euro Term B-3 Loans”), thereby increasing the outstanding amount of existing Euro Term B-3 Loans under the 2020 Credit Agreement to approximately €660 million. The proceeds of the Incremental Euro Term B-3 Loans were used us to prepay the €545 million Senior secured term loan due 2023. Class B-2 Euro Term Loans under the Existing Credit Agreement in an aggregate principal amount of €240 million and all accrued interest and expenses.

In July, 2020, we entered into an Amendment Agreement (the “Amendment Agreement”) amending and restating the Fifth Amended and Restated Credit Agreement, dated as of June 29,2018, by and among Nielsen Finance, TNC (US) Holdings Inc. and the Dutch Borrower, as borrowers, the guarantors party thereto, the lenders and agents party thereto from time to time, and Citibank, N.A., as administrative agent (as amended before July 21, 2020, the “Existing Credit Agreement”)." The modifications in the agreement primarily conform the covenants and certain other terms to the terms of the 2020 Credit Agreement. The amended agreement expressly permits actions in connection with and resulting in the disposition of Nielsen Global Connect, including by way of a spin-off of the Connect Business, as previously announced by us.

The Fifth Amended and Restated Credit Agreement, (the “Amended Credit Agreement”) contains a financial covenant consisting of a maximum leverage ratio applicable to our indirect wholly-owned subsidiary, Nielsen Holding and Finance B.V. and its restricted subsidiaries. The leverage ratio requires that we not permit the ratio of total net debt (as defined in the Amended Credit Agreement) at the end of any calendar quarter to Consolidated EBITDA (as defined in the Amended Credit Agreement) for the four quarters then ended to exceed a specified threshold. The maximum permitted ratio is 5.50 to 1.00.

Failure to comply with this financial covenant would result in an event of default under our Amended Credit Agreement unless waived by our senior credit lenders. An event of default under our Amended Credit Agreement can result in the acceleration of our indebtedness under the facilities, which in turn would result in an event of default and possible acceleration of indebtedness under the agreements governing our debt securities as well. As our failure to comply with the financial covenant described above can cause us to go into default under the agreements governing our indebtedness, management believes that our Amended Credit Agreement and this covenant are material to us. As of June 30, ~~2019,~~2020, we were in full compliance with the financial covenant described above.

The Amended Credit Agreement contains a senior secured revolving credit facility with aggregate revolving credit commitments of $850 million and a final maturity of April 2023 under which Nielsen Finance LLC, TNC (US) Holdings, Inc., and Nielsen Holding and Finance B.V. can borrow revolving loans. The revolving credit facility can also be used for letters of credit, guarantees and swingline loans.

The senior secured revolving credit facility is provided under the Amended Credit Agreement and so contains covenants and restrictions as noted above with respect to the Amended Credit Agreement. Obligations under the revolving credit facility are guaranteed by the same entities that guarantee obligations under the Amended Credit Agreement.

As of June 30, ~~2019~~2020 and ~~2018,~~2019, we had ~~$296~~$165 million and ~~$246~~$296 million borrowings outstanding and had outstanding letters of credit of ~~$15~~$17 million and ~~$13~~$15 million, respectively. As of June 30, ~~2019,~~2020, we had ~~$539~~$668 million available for borrowing under the revolving credit facility.

We ~~remain committed~~continue to ~~driving~~drive shareholder value ~~as evidenced in 2013 with the adoption of a~~through our quarterly cash ~~dividends~~dividend policy which was adopted by our Board of Directors ~~under which~~("Board") in 2013. Under this plan we have paid ~~$249~~$43 million and ~~$246~~$249 million in cash dividends during the ~~six months~~years ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. Any decision to declare and pay dividends in the future will be made at the discretion of our Board ~~of Directors~~ and will be subject to the Board’s continuing determination that the dividend policy and the declaration of dividends thereunder are in the best interests of our shareholders, and are in compliance with all laws and agreements to which we are subject. The below table summarizes the dividends declared on our common stock during ~~2018~~2019 and the six months ended June 30, ~~2019.~~2020.

On July ~~18, 2019,~~16, 2020, our Board of Directors declared a cash dividend of ~~$0.35~~$0.06 per share on our common stock. The dividend is payable on September ~~5, 2019~~3, 2020 to shareholders of record at the close of business on August ~~22, 2019.~~20, 2020.

Our Board ~~of Directors~~ approved a share repurchase program, as included in the below table, for up to $2 billion of our outstanding common stock. The primary purpose of the program is to return value to shareholders and to mitigate dilution associated with our equity compensation plans.

Repurchases under ~~these plans~~this program will be made in accordance with applicable securities laws from time to time ~~in the open market or otherwise~~and depending on our evaluation of market conditions and other factors. This program has been executed within the limitations of the authority granted us on August 6, 2015, (which will expire on August 6, 2020) and which has been extended by ~~our shareholders.~~the authority approved by Nielsen's shareholders at its annual general meeting held on May 12, 2020 (which authority will expire on May 12, 2025).

As of June 30, ~~2019,~~2020, there have been 39,426,521 shares of our common stock purchased at an average price of $44.95 per share (total consideration of approximately $1,772 million) under this program. There were no share repurchases for the six months ended June 30, ~~2019.~~2020.

Operating activities. Net cash provided by operating activities was $245 million for the six months ended June 30, 2020, as compared to $183 million for the six months ended June 30, ~~2019, as compared to $125 million for the six months ended June 30, 2018.~~ 2019. This increase in net cash provided in operating activities was primarily due to working capital timing and lower income tax payments and interest payments, partially offset by the Adjusted EBITDA performance discussed above and higher employee annual incentive ~~payments and lower retailer investments, partially offset by working capital timing.~~payments. Our key collections performance measure, days billing outstanding (DBO), ~~decreased~~increased by 43 days as compared to the same period last year.

Investing activities. Net cash used in investing activities was $262 million for the six months ended June 30, 2020, as compared to $290 million for the six months ended June 30, ~~2019, as compared to $276 million for the six months ended June 30, 2018.~~2019. The primary driver for the ~~increase~~decrease was ~~higher~~lower acquisition payments during the six months ended June 30, ~~2019~~2020 as compared to the same period for ~~2018.~~2019.

Financing activities. Net cash ~~used in~~provided by financing activities was ~~$22~~$21 million for the six months ended June 30, ~~2019~~2020 as compared to net cash used in financing activities of ~~$108~~$22 million for the six months ended June 30, ~~2018.~~2019. The ~~decrease~~increase in net cash ~~used in~~provided by financing activities was primarily due to the decrease in ~~share repurchasing,~~cash dividends, as described in ~~the~~ “Dividends and Share Repurchase Program” ~~and higher~~, partially offset by lower net borrowings from the revolving credit facility and lower net proceeds from debt issuances and repaymentsas compared to the same period for ~~2018.~~2019.

Investments in property, plant, equipment, software and other assets totaled $232 million for the six months ended June 30, 2020 as compared to $230 million for the six months ended June 30, ~~2019 as compared to $246 million for the six months ended June 30, 2018.~~2019.

We have no off-balance sheet arrangements that currently have or are reasonably likely to have a material effect on our consolidated financial condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

Effective January 1, 2019, we adopted the new lease accounting standard using the transition method approved by the FASB on July 30, 2018, which allows companies to apply the provisions of the new leasing standard as of January 1, 2019, without adjusting the comparative periods presented. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard. This allowed us to carry forward the historical lease classification. Adoption of this standard resulted in the recording of net operating lease right-of-use (ROU) assets of $0.5 billion (amount is net of lease incentives and ASC 420 cease-use liabilities) and corresponding operating lease liabilities of $0.5 billion. Financial position for reporting periods beginning on or after January 1, 2019 are presented under the new guidance, while prior periods amounts are not adjusted and continue to be reported in accordance with previous guidance. See Note 5 (“Leases”) for further discussion.

In February 2018, the FASB issued an ASU, “Reclassification of Certain Tax Effects From Accumulated Comprehensive Income”. The new standard gives companies the option to reclassify stranded tax effects caused by the newly-enacted US Tax Cuts and Jobs Act (“TCJA”) from accumulated other comprehensive income (“AOCI”) to retained earnings. The new standard became effective for us on January 1, 2019. We are electing to not reclassify stranded income tax effects of the TCJA from AOCI to retained earnings.

~~In June 2016, the FASB issued an~~Effective January 1, 2020, we adopted ASU, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The standard significantly changes how entities ~~will~~ measure credit losses for most financial assets and certain

other instruments that are not measured at fair value through net income. The standard ~~will replace today’s~~replaced the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities ~~will be~~are required to record allowances rather than reduce the carrying amount ~~as they do today~~ under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. ~~The~~Upon adoption, this new standard did not have a significant impact on our consolidated balance sheets and statements of operations.

In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20), which amends the current disclosure requirements regarding defined benefit pensions and other post retirement plans, and allows for the removal of certain disclosures, while adding certain new disclosure requirements. This standard is effective for fiscal years beginning after December 15, 2020 and allows for early adoption. We do not expect this new standard to have a significant impact on our disclosures.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which amends and aims to simplify accounting disclosure requirements regarding a number of topics including: intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, ~~within those~~amongst other improvements. This standard is effective for fiscal years beginning after December 15, ~~2019.~~2020 and allows for early adoption. We are ~~currently~~ assessing the impact ~~the adoption~~ of this ~~ASU will have~~new standard on our ~~condensed~~ consolidated ~~financial statements.~~balance sheets, statements of operations and our future disclosures.

Reference Rate Reform-Facilitation of the Effects of Reference Rate Reform on Financial Reporting

On March 12, 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASC 848 contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The provisions of ASC 848 must be applied at a Topic, Subtopic or Industry Subtopic for all transactions other than derivatives, which may be applied at a hedging relationship level. We have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In August 2018, a putative shareholder class action lawsuit was filed in the Southern District of New York, naming as defendants Nielsen, former Chief Executive Officer Dwight Mitchell Barns, and former Chief Financial Officer Jamere Jackson. Another lawsuit, which ~~alleges~~alleged similar facts but also ~~names~~named other ~~defendants, including former Chief Operating Officer Stephen Hasker,~~Nielsen officers, was filed in the Northern District of Illinois in September 2018 and transferred to the Southern District of New York in December 2018. ~~These lawsuits assert~~The actions were consolidated on April 22, 2019, and the Public Employees’ Retirement System of Mississippi was appointed lead plaintiff for the putative class. The operative complaint was filed on September 27, 2019, and asserts violations of certain provisions of the Securities Exchange Act of 1934, as amended, based on allegedly false and materially misleading statements relating to the outlook of ~~our~~Nielsen’s Buy (now “Connect”) segment, ~~our~~Nielsen’s preparedness for changes in global data privacy laws and ~~our~~Nielsen’s reliance on third-party data. The actions were consolidated on April 22, 2019, and the Public Employees’ Retirement System of Mississippi was appointed lead plaintiff for the putative class. An amended complaint was filed on June 21, 2019, and we anticipate filing a motionNielsen moved to dismiss the ~~suit in the forthcoming months.~~operative complaint on November 26, 2019. Briefing of Nielsen’s motion concluded on February 26, 2020. In addition, in January 2019, a shareholder derivative lawsuit was filed in New York Supreme Court against a number of ~~our~~Nielsen’s current and former officers and directors. The derivative lawsuit alleges that the named officers and directors breached their fiduciary duties to usthe Company in connection with factual assertions substantially similar to those in the putative class action ~~complaints.~~complaint. The derivative lawsuit further alleges that certain officers and directors engaged in trading ~~our~~Nielsen stock based on material, nonpublic information. By agreement dated June 26, 2019, the derivative lawsuit has been stayed pending resolution of ~~our~~Nielsen’s motion to dismiss the aforementioned securities litigation. ~~We intend~~Nielsen intends to defend these lawsuits vigorously. Based on currently available information, ~~we believe~~Nielsen believes that ~~we have~~the Company has meritorious defenses to these actions and that their resolution is not likely to have a material adverse effect on ~~our~~Nielsen’s business, financial position, or results of ~~operations.~~operations.

We are subject to litigation and other claims in the ordinary course of business, some of which include claims for substantial sums. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be determined, we expect that the ultimate disposition of these matters will not have a material adverse effect on our operations or financial condition. However, depending on the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect our future results of operations or cash flows in a particular period.

Our other contractual obligations include capital lease obligations (including interest portion), facility leases, leases of certain computer and other equipment, agreements to purchase data and telecommunication services and the payment of principal and interest on debt and pension fund obligations.

In July 2019, we amended our Second Amended and Restated Master Services Agreement (the “MSA”), dated as of October 1, 2017 and effective as of January 1, 2017 (the “Effective Date”), with Tata America International Corporation and Tata Consultancy Services Limited (jointly, “TCS”) by executing Amendment Number One (the “Amendment”) with TCS, dated as of July 1, 2019 and effective as of January 1, 2019 (the “Amendment Effective Date”). The Amendment reduces the amount of services we have committed to purchase from TCS from the Amendment Effective Date through the remaining term of the MSA (the “Minimum Commitment”) to $1.413 billion, including a commitment to purchase at least $275 million in services during 2019, at least $250 million in services during 2020, $184.3 million in services per year from 2021 through 2024, and $137.8 million in services in 2025 (in each of the foregoing cases, the “Annual Commitment”). TCS’s charges under existing and future statements of work (“SOW”) pursuant to the MSA will continue to be credited against the Minimum Commitment and the Annual Commitment and the occurrence of certain events, some of which also provide us with the right to terminate the Agreement or SOWs, as applicable, will continue to be available to reduce the Minimum and Annual Commitment Amounts as they occur. The parties also agreed to certain other commercial terms. However, the other material terms of the MSA as reflected in the MSA and as previously disclosed remain unchanged.

Market risk is the potential loss arising from adverse changes in market rates and market prices such as interest rates, foreign currency exchange rates, and changes in the market value of equity instruments. We are exposed to market risk, primarily related to foreign exchange and interest rates. We actively monitor these exposures. Historically, in order to manage the volatility relating to these exposures, we entered into a variety of derivative financial instruments, mainly interest rate swaps, cross-currency swaps and forward rate agreements. Currently we only employ basic contracts, that is, without options, embedded or otherwise. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings, cash flows and the value of our net investments in subsidiaries resulting from changes in interest rates and foreign currency rates. It is our policy not to trade in financial instruments for speculative purposes.

We operate globally and predominantly generate revenues and expenses in local currencies. Approximately ~~42%~~40% of our revenues and 38% of our operating costs were generated in currencies other than the U.S. Dollar for the six months ended June 30, 2019. Because of fluctuations (including possible devaluations) in currency exchange rates or the imposition of limitations on conversion of foreign currencies into our reporting currency, we are subject to currency translation exposure on the profits of our operations, in addition to transaction exposure. Typically, a one cent change in the U.S. Dollar/Euro exchange rate, holding all other currencies constant, will impact revenues by approximately $6 million annually, with an immaterial impact on our profitability.

We recorded a net loss of $3 million and zero ~~and $1 million~~income/loss for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively, associated with foreign currency derivative financial instruments within foreign currency exchange transactions gains/(losses), net in our condensed consolidated statements of operations. As of June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the notional amounts of outstanding foreign currency derivative financial instruments were ~~$135~~$111 million and ~~$76~~$125 million, respectively.

The table below details the percentage of revenues and expenses by currency for the six months ended June 30, ~~2019:~~2020:

	U.S. Dollar		Euro		Other Currencies		U.S. Dollar		Euro		Other Currencies
Revenues	58	%	10	%	32	%	60	%	10	%	30	%
Operating costs	58	%	10	%	32	%	62	%	10	%	28	%

We have operations in both the Connect and Media segments in Argentina and the functional currency for those operations is the Argentine Peso. In accordance with U.S. GAAP, Argentina’s currency has been considered hyperinflationary since July 1, 2018, and, accordingly, local currency transactions have been denominated in U.S. dollars since July 1, 2018, and will continue to be denominated in U.S. dollars until Argentina’s currency is no longer deemed to be hyperinflationary. We will continue to access the appropriate conversion rate based on events in Argentina and our Argentina operations. This event has had an immaterial impact on our condensed consolidated financial statements.

We continually review our fixed and variable rate debt along with related hedging opportunities in order to ensure our portfolio is appropriately balanced as part of our overall interest rate risk management strategy. At June 30, ~~2019,~~2020, we had ~~$4,284~~$5,083 million in carrying value of floating-rate debt under our senior secured credit facilities of which $2,050 million was subject to effective floating-fixed interest rate swaps. A one percent increase in interest rates applied to our floating rate indebtedness would therefore increase annual interest expense by approximately ~~$22~~$30 million ($4351 million without giving effect to any of our interest rate swaps).

Derivative instruments involve, to varying degrees, elements of non-performance, or credit risk. We do not believe that we currently face a significant risk of loss in the event of non-performance by the counterparties associated with these instruments, as these transactions were executed with a diversified group of major financial institutions with a minimum investment-grade or better credit rating. Our credit risk exposure is managed through the continuous monitoring of our exposures to such counterparties.

The Company maintains disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in the reports that the Company files or submits to the SEC under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures as of June 30, ~~2019~~2020 (the “Evaluation Date”). Based on such evaluation and subject to the foregoing, such officers have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective at the reasonable assurance level.

There have been no changes in the Company’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In August 2018, a putative shareholder class action lawsuit was filed in the Southern District of New York, naming as defendants Nielsen, former Chief Executive Officer Dwight Mitchell Barns, and former Chief Financial Officer Jamere Jackson. Another lawsuit, which ~~alleges~~alleged similar facts but also ~~names~~named other ~~defendants, including former Chief Operating Officer Stephen Hasker,~~Nielsen officers, was filed in the Northern District of Illinois in September 2018 and transferred to the Southern District of New York in December 2018. ~~These lawsuits assert~~The actions were consolidated on April 22, 2019, and the Public Employees’ Retirement System of Mississippi was appointed lead plaintiff for the putative class. The operative complaint was filed on September 27, 2019, and asserts violations of certain provisions of the Securities Exchange Act of 1934, as amended, based on allegedly false and materially misleading statements relating to the outlook of ~~our~~Nielsen’s Buy (now “Connect”) segment, ~~our~~Nielsen’s preparedness for changes in global data privacy laws and ~~our~~Nielsen’s reliance on third-party data. The actions were consolidated on April 22, 2019, and the Public Employees’ Retirement System of Mississippi was appointed lead plaintiff for the putative class. An amended complaint was filed on June 21, 2019, and we anticipate filing a motionNielsen moved to dismiss the ~~suit in the forthcoming months.~~operative complaint on November 26, 2019. Briefing of Nielsen’s motion concluded on February 26, 2020. In addition, in January 2019, a shareholder derivative lawsuit was filed in New York Supreme Court against a number of ~~our~~Nielsen’s current and former officers and directors. The derivative lawsuit alleges that the named officers and directors breached their fiduciary duties to usthe Company in connection with factual assertions substantially similar to those in the putative class action ~~complaints.~~complaint. The derivative lawsuit further alleges that certain officers and directors engaged in trading ~~our~~Nielsen stock based on material, nonpublic information. By agreement dated June 26, 2019, the derivative lawsuit has been stayed pending resolution of ~~our~~Nielsen’s motion to dismiss the aforementioned securities litigation. ~~We intend~~Nielsen intends to defend these lawsuits vigorously. Based on currently available information, ~~we believe~~Nielsen believes that ~~we have~~the Company has meritorious defenses to these actions and that their resolution is not likely to have a material adverse effect on ~~our~~Nielsen’s business, financial position, or results of operations.

We are subject to litigation and other claims in the ordinary course of business, some of which include claims for substantial sums. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be determined, we do expect that the ultimate disposition of these matters will not have a material adverse effect on our operations or financial condition. However, depending on the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect our future results of operations or cash flows in a particular period.

There have been no material changes to our Risk Factors as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019, as updated by our Form 10-Q for the quarter ended March 31, 2020, other than as set forth below, which, along with the Risk Factors previously disclosed, could materially adversely affect our business, financial condition and results of operations. Additional risks and uncertainties that are not presently known to us or that we deem immaterial may also impair our business operations and financial condition.

Our operations are vulnerable to the effects of epidemics, such as COVID-19, which has and is expected to continue to adversely affect our business.

We are vulnerable to the general economic effects of epidemics and other public health crises, including the ongoing novel coronavirus (“COVID-19”) outbreak that has spread throughout the world and has been declared a pandemic by the World Health Organization. Due to the recent outbreak of COVID-19, there has been a substantial curtailment of business activities in many countries around the world, which is affecting and may continue to affect our ability to conduct fieldwork, operate call centers, and provide other services that require manual data collection. In addition, we have closed numerous offices and personnel are working from home where possible, which is and may continue to affect overall business performance. The risk is particularly pronounced in the Connect business where our teams need to visit traditional stores to collect information where electronic data transmission is not possible, where the services rely on call centers, and where we need to conduct face to face consumer research interviews. With respect to the Media business, because our measurement services require Nielsen to recruit new panelist households and interact with existing panelists to install metering equipment, over time the pandemic and related social distancing requirements and “stay at home” orders may adversely affect Nielsen’s audio and television ratings and measurement services. Further, the COVID-19 pandemic has had and could continue to have a negative impact on our business as clients cut back on services that are not already contracted, delay their spending, or declare bankruptcy in light of poor business performance due to the pandemic. If the pandemic is not contained or otherwise continues, it will continue to have an adverse effect on our business, results of operations and financial position.

There were no unregistered sales of our common stock ~~for~~during the ~~six~~three months ended June 30, ~~2019.~~2020.

There were no share repurchases for the three months ended June 30, ~~2019.~~2020.

Our Board approved a share repurchase program for up to $2 billion of our outstanding common stock on the dates indicated under Part 1- Item 2- Management’s Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources- Dividends and Share Repurchase Program.

The agreements and other documents filed as exhibits to this quarterly report on Form 10-Q are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by the registrant in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

England and Wales		98-1225347
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

85 Broad Street New York, New York 10004 (646) 654-5000		Nielsen House John Smith Drive Oxford Oxfordshire, OX4 2WB United Kingdom +1 (646) 654-5000
(Address of principal executive offices) (Zip Code) (Registrant’s telephone numbers including area code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Ordinary shares, par value €0.07 per share	NLSN	New York Stock Exchange

			PAGE
PART I.	FINANCIAL INFORMATION	- 3 -
Item 1.	Condensed Consolidated Financial Statements	- 3 -
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	- 3740 -
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	- 5361 -
Item 4.	Controls and Procedures	- 5462 -
PART II.	OTHER INFORMATION	- 5563 -
Item 1.	Legal Proceedings	- 5563 -
Item 1A.	Risk Factors	- 5563 -
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	- 5563 -
Item 3.	Defaults Upon Senior Securities	- 5564 -
Item 4.	Mine Safety Disclosures	- 5564 -
Item 5.	Other Information	- 5564 -
Item 6.	Exhibits	- 5564 -
	Signatures	- 5766 -

(IN MILLIONS)	Balance Beginning of Period		Charges to Expense			Deductions				Effect of Foreign Currency Translation	Balance at End of Period
Allowance for accounts receivable
For the six months ended June 30, 2020	$	12		$	5	$	(5	)	$	-	$	12

	Total
(IN MILLIONS)	Initiatives
Balance at December 31, 2018	$	68
Reclassification of ASC 420 real estate restructuring to right-of -use asset (1)		(22	)
Charges (2)		42
Payments		(45	)
Effect of foreign currency translation and other adjustments		(2	)
Balance at June 30, 2019	$	41

									Accumulated Other Comprehensive Income
									(Loss), Net								Total
			Additional						Currency			Cash		Post			Nielsen
	Common		Paid-in			Retained			Translation			Flow		Employment			Shareholders’			Noncontrolling			Total
(IN MILLIONS)	Stock		Capital			Earnings			Adjustments			Hedges		Benefits			Equity			Interests			Equity
Balance, March 31, 2018	$	32	$	4,750		$	362		$	(571	)	$	21	$	(336	)	$	4,258		$	200		$	4,458
Net income/(loss)		—		—			72			—			—		—			72			4			76
Currency translation adjustments, net of tax of $(6)		—		—			—			(137	)		—		—			(137	)		(4	)		(141	)
Cash flow hedges, net of tax of $(1)		—		—			—			—			3		—			3			—			3
Unrealized gain on pension liability, net of tax of $(1)		—		—			—			—			—		5			5			—			5
Employee stock purchase plan		—		2			—			—			—		—			2			—			2
Dividends to shareholders		—		—			(125	)		—			—		—			(125	)		(4	)		(129	)
Common stock activity from share-based compensation plans		—		4			—			—			—		—			4			—			4
Repurchase of common stock		—		(40	)		—			—			—		—			(40	)		—			(40	)
Share-based compensation expense		—		7			—			—			—		—			7			—			7
Balance, June 30, 2018	$	32	$	4,723		$	309		$	(708	)	$	24	$	(331	)	$	4,049		$	196		$	4,245

	Foreign Currency
	Translation								Post Employment
	Adjustments				Cash Flow Hedges				Benefits				Total
(IN MILLIONS)
Balance December 31, 2019	$	(776		)	$	(19		)	$	(210		)	$	(1,005		)
Other comprehensive income/(loss) before reclassifications		(90		)		(38		)		1				(127		)
Amounts reclassified from accumulated other comprehensive (income)/loss			—				7				6				13
Net current period other comprehensive income/(loss)		(90		)		(31		)		7				(114		)
Net current period other comprehensive income/(loss) attributable to noncontrolling interest		(7		)		—				—				(7		)
Net current period other comprehensive income/(loss) attributable to Nielsen shareholders		(83		)		(31		)		7				(107		)
Balance June 30, 2020	$	(859		)	$	(50		)	$	(203		)	$	(1,112		)

Level 1:		Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2:		Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3:		Pricing inputs that are generally unobservable and may not be corroborated by market data.

	Six Months Ended
	June 30, ~~2019~~2020
Actual number of shares of common stock outstanding
Beginning of period		~~355,271,737~~356,149,883
Shares of common stock issued through compensation plans		~~363,256~~608,285
Employee benefit trust activity		~~38,574~~(4,204	)
End of period		~~355,673,567~~356,753,964

Declaration Date	Record Date	Payment Date	Dividend Per Share
February 21, 2018	March 7, 2018	March 21, 2018	$	0.34
April 19, 2018	June 6, 2018	June 20, 2018	$	0.35
July 19, 2018	August 22, 2018	September 5, 2018	$	0.35
October 18, 2018	November 21, 2018	December 5, 2018	$	0.35
February 21, 2019	March 7, 2019	March 21, 2019	$	0.35
April 18, 2019	June 5, 2019	June 19, 2019	$	0.35

(IN MILLIONS)	Three Months Ended June 30, 2020 Reported			Three Months Ended June 30, 2019 Reported			% Variance 2020 vs. 2019 Reported			Three Months Ended June 30, 2019 Constant Currency			% Variance 2020 vs. 2019 Constant Currency
Non-GAAP Business Segment Income/(Loss)
Connect	$	91		$	109			(16.5	)%	$	101			(9.9	)%
Media		346			371			(6.7	)%		370			(6.5	)%
Corporate and Eliminations		(11	)		(10	)		NM			(10	)		NM
Total Nielsen	$	426		$	470			(9.4	)%	$	461			(7.6	)%

THREE MONTHS ENDED JUNE 30, 2019 (IN MILLIONS)	Operating Income/(Loss)			Restructuring Charges		Depreciation and Amortization		Share-Based Compensation Expense		Other Items ⁽¹⁾		Non-GAAP Business Segment Income/(Loss)
Connect	$	46		$	4	$	55	$	4	$	—	$	109
Media		237			3		128		3		—		371
Corporate and Eliminations		(34	)		5		2		4		13		(10	)
Total Nielsen	$	249		$	12	$	185	$	11	$	13	$	470

THREE MONTHS ENDED JUNE 30, 2018 (IN MILLIONS)	Operating Income/(Loss)			Restructuring Charges		Depreciation and Amortization		Share-Based Compensation Expense		Other Items ⁽¹⁾		Non-GAAP Business Segment Income/(Loss)
Connect	$	1		$	55	$	54	$	3	$	—	$	113
Media		252			5		106		2		—		365
Corporate and Eliminations		(25	)		5		2		2		6		(10	)
Total Nielsen	$	228		$	65	$	162	$	7	$	6	$	468

(IN MILLIONS)	Three Months Ended June 30, 2019 Reported			Three Months Ended June 30, 2018 Reported			% Variance 2019 vs. 2018 Reported			Three Months Ended June 30, 2018 Constant Currency			% Variance 2019 vs. 2018 Constant Currency
Non-GAAP Business Segment Income/(Loss)
Connect	$	109		$	113			(3.5	)%	$	108			0.9	%
Media		371			365			1.6	%		363			2.2	%
Corporate and Eliminations		(10	)		(10	)		NM			(10	)		NM
Total Nielsen	$	470		$	468			0.4	%	$	461			2.0	%

SIX MONTHS ENDED JUNE 30, 2019 (IN MILLIONS)	Operating Income/(Loss)			Restructuring Charges		Depreciation and Amortization		Share-Based Compensation Expense		Other Items⁽¹⁾		Non-GAAP Business Segment Income/(Loss)
Connect	$	44		$	26	$	110	$	8	$	—	$	188
Media		451			10		251		6		—		718
Corporate and Eliminations		(72	)		11		3		12		25		(21	)
Total Nielsen	$	423		$	47	$	364	$	26	$	25	$	885

SIX MONTHS ENDED JUNE 30, 2018 (IN MILLIONS)	Operating Income/(Loss)			Restructuring Charges		Depreciation and Amortization		Share-Based Compensation Expense		Other Items⁽¹⁾		Non-GAAP Business Segment Income/(Loss)
Connect	$	15		$	70	$	108	$	7	$	—	$	200
Media		475			14		218		5		—		712
Corporate and Eliminations		(55	)		5		3		8		18		(21	)
Total Nielsen	$	435		$	89	$	329	$	20	$	18	$	891

Exhibit Number		Description of Exhibits

~~10.1*√~~4.1		Credit Agreement, dated as of June 4, 2020, by and among Nielsen Finance LLC, the other borrowers party thereto, the guarantors party thereto, Citibank, N.A., as administrative agent, and certain of the lenders (incorporated herein by reference to the Current Report on Form 8-K filed on June 4, 2020).
4.2		Amendment ~~Number One,~~ No. 1, dated as of July ~~1, 2019~~21, 2020, among Nielsen Finance LLC, Nielsen Holding and ~~effective~~Finance B.V., the guarantors party thereto, Citibank, N.A., as ~~of January 1, 2019~~administrative agent, and the lenders party thereto from time to time, (incorporated herein by ~~and between TATA America International Corporation and TATA Consultancy Services Limited (jointly, “TCS”) and The Nielsen Company (US), LLC (“Nielsen”),~~reference to the ~~Second Amended and Restated Master Services~~Current Report on Form 8-K of Nielsen Holdings plc filed on July 21, 2020 (File No. 001-35042)).

4.3		Amendment Agreement, dated as of ~~January 1, 2017,~~July 21, 2020, among ~~TCS~~Nielsen Finance LLC, TNC (US) Holdings Inc., Nielsen Holding and Finance B.V., the guarantors party thereto, Citibank, N.A., as Administrative Agent, a Swing Line Lender and an L/C Issuer, and the lenders party thereto from time to time (incorporated herein by reference to the Current Report on Form 8-K of Nielsen Holdings plc filed on July 21, 2020 (File No. 001-35042)).

31.1*		CEO 302 Certification Pursuant to Rule 13a-15(e)/15d-15(e)

31.2*		CFO 302 Certification Pursuant to Rule 13a-15(e)/15d-15(e)

32.1*		Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

101*		The following financial information from Nielsen Holdings plc’s Quarterly Report on Form 10-Q for the quarter ended June 30, ~~2019,~~2020, formatted in ~~XBRL includes:~~inline eXtensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Statements of Operations (Unaudited) for the three and six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, (ii) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, (iii) Condensed Consolidated Balance Sheets at June 30, ~~2019~~2020 (Unaudited) and December 31, ~~2018,~~2019, (iv) Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, (v) Condensed Consolidated Statement of Changes in Equity for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019 (Unaudited), and (vi) the Notes to Condensed Consolidated Financial Statements. ~~- the XBRL Instance Document does not appear in the~~
104*		Cover Page Interactive Data File ~~because its XBRL tags are embedded~~(embedded within the Inline XBRL ~~document~~and included in Exhibit 101)

		Nielsen Holdings plc (Registrant)

Date: ~~July 31, 2019~~August 5, 2020		/s/ ~~David J. Anderson~~Christopher Taft
		~~David J. Anderson~~Christopher Taft ~~Chief Financial Officer~~Senior Vice President and Corporate Controller (Duly Authorized Officer and Principal Accounting Officer)

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company