þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
Delaware | 26-2994223 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
545 Washington Boulevard Jersey City, NJ | 07310-1686 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | ||
Name of | ||
which registered | ||
Class A common stock $.001 par value | NASDAQ Global Select Market |
þLarge accelerated filer | oAccelerated filer | oNon-accelerated filer | oSmaller reporting company | |||||||||
(Do not check if a smaller reporting company) |
Class | Shares Outstanding | |||
Class A common stock $.001 par value | 166,835,574 | |||
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Item 15. | ||||||||
Exhibit 10.12 | ||||||||
Exhibit 10.13 | ||||||||
Exhibit 21.1 | ||||||||
Exhibit 23.1 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 |
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Item 1. | Business |
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our risk selection and pricing solutions are typically used by underwriters as they manage their books of business and by financial institutions as they manage the profitability of their credit and debit card portfolios our fraud detection and prevention tools are used by P&C insurance and healthcare underwriters to root out fraud prospectively and by claims departments to speed claims and find fraud retroactively; and our tools to quantify loss are primarily used by claims departments, independent adjustors and contractors. |
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Item 1A. | Risk Factors |
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changes in technology; our inability to obtain or use state fee schedule or claims data in our insurance solutions; saturation of market demand; loss of key customers; industry consolidation; and failure to execute our customer-focused selling approach. |
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amendment, enactment, or interpretation of laws and regulations which restrict the access and use of personal information and reduce the supply of data available to customers; | ||
deterring customers from using our solutions; | ||
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Item 1B. | Unresolved Staff Comments |
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Item 2. | Properties |
Location | Square Feet | Lease Expiration Date | |||||||
Jersey City, New Jersey | 390,991 | May | |||||||
South Jordan, Utah | 105,926 | August 31, 2015 | |||||||
Orem, Utah | 89,172 | December 31, 2017 | |||||||
Boston, Massachusetts | 69,806 | November 30, 2020 | |||||||
North Reading, Massachusetts | 41,200 | June 30, 2015 | |||||||
Item 3. | Legal Proceedings |
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Item 4. |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
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Year Ending December 31, 2010 | High | Low | ||||||
Fourth Quarter | $ | 34.60 | $ | 27.64 | ||||
Third Quarter | $ | 30.20 | $ | 27.25 | ||||
Second Quarter | $ | 30.93 | $ | 27.65 | ||||
First Quarter | $ | 30.44 | $ | 27.24 |
Year Ending December 31, 2009 | High | Low | ||||||
Fourth Quarter | $ | 31.00 | $ | 26.25 |
2013 | 2012 | |||||||||||
High | Low | High | Low | |||||||||
Fourth Quarter | $ | 68.74 | $ | 61.27 | $ | 51.35 | $ | 45.95 | ||||
Third Quarter | $ | 66.53 | $ | 60.47 | $ | 50.94 | $ | 46.39 | ||||
Second Quarter | $ | 61.29 | $ | 57.70 | $ | 49.43 | $ | 46.34 | ||||
First Quarter | $ | 61.62 | $ | 52.98 | $ | 47.33 | $ | 38.98 |
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Total Number of | Maximum Dollar | |||||||||||||||
Shares Purchased | Value of Shares that | |||||||||||||||
Total Number | Average | as Part of Publicly | May Yet Be | |||||||||||||
of Shares | Price Paid | Announced Plans | Purchased Under the | |||||||||||||
Period | Purchased(1) | per Share(2) | or Programs | Plans or Programs | ||||||||||||
(In thousands) | ||||||||||||||||
October 1, 2010 through October 31, 2010 | 7,714,700 | $ | 28.16 | 414,700 | $ | 152,753 | ||||||||||
November 1, 2010 through November 30, 2010 | 1,041,507 | $ | 30.45 | 1,041,507 | $ | 121,039 | ||||||||||
December 1, 2010 through December 31, 2010 | 1,668,839 | $ | 33.20 | 1,010,589 | $ | 87,488 | ||||||||||
10,425,046 | $ | 31.19 | 2,466,796 | |||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
(in thousands) | |||||||||||||
October 1, 2013 through October 31, 2013 | 253,676 | $ | 65.33 | 253,676 | $ | 265,539 | |||||||
November 1, 2013 through November 30, 2013 | 1,144,344 | $ | 63.13 | 1,144,344 | $ | 193,296 | |||||||
December 1, 2013 through December 31, 2013 | 426,970 | $ | 65.68 | 426,970 | $ | 165,253 | |||||||
1,824,990 | 1,824,990 |
Item 6. | Selected Financial Data |
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
(In thousands, except for share and per share data) | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Decision Analytics | $ | 977,427 | $ | 828,342 | $ | 639,100 | $ | 461,743 | $ | 397,501 | |||||||||
Risk Assessment | 618,276 | 579,506 | 552,293 | 530,542 | 512,672 | ||||||||||||||
Revenues | 1,595,703 | 1,407,848 | 1,191,393 | 992,285 | 910,173 | ||||||||||||||
Expenses: | |||||||||||||||||||
Cost of revenues | 622,523 | 516,708 | 440,979 | 376,270 | 413,800 | ||||||||||||||
Selling, general and administrative | 228,982 | 220,068 | 199,495 | 157,596 | 154,746 | ||||||||||||||
Depreciation and amortization of fixed assets | 66,190 | 46,637 | 40,135 | 35,835 | 34,292 | ||||||||||||||
Amortization of intangible assets | 63,741 | 52,207 | 32,985 | 25,202 | 28,402 | ||||||||||||||
Acquisition related liabilities adjustment (1) | — | — | (3,364 | ) | (544 | ) | — | ||||||||||||
Total expenses | 981,436 | 835,620 | 710,230 | 594,359 | 631,240 | ||||||||||||||
Operating income | 614,267 | 572,228 | 481,163 | 397,926 | 278,933 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Investment income | 701 | 438 | 193 | 279 | 186 | ||||||||||||||
Realized (loss) gain on available-for-sale securities, net | (92 | ) | (332 | ) | 686 | 95 | (2,332 | ) | |||||||||||
Interest expense | (76,136 | ) | (72,508 | ) | (53,847 | ) | (34,664 | ) | (35,265 | ) | |||||||||
Total other expense, net | (75,527 | ) | (72,402 | ) | (52,968 | ) | (34,290 | ) | (37,411 | ) | |||||||||
Income before income taxes from continuing operations | 538,740 | 499,826 | 428,195 | 363,636 | 241,522 | ||||||||||||||
Provision for income taxes | (196,426 | ) | (182,363 | ) | (165,739 | ) | (148,235 | ) | (129,029 | ) | |||||||||
Income from continuing operations | 342,314 | 317,463 | 262,456 | 215,401 | 112,493 | ||||||||||||||
Income from discontinued operations, net of tax (2) | 6,066 | 11,679 | 20,302 | 27,151 | 14,121 | ||||||||||||||
Net income | $ | 348,380 | $ | 329,142 | $ | 282,758 | $ | 242,552 | $ | 126,614 | |||||||||
Basic net income per share | |||||||||||||||||||
Income from continuing operations | $ | 2.04 | $ | 1.91 | $ | 1.58 | $ | 1.21 | $ | 0.64 | |||||||||
Income from discontinued operations | 0.03 | 0.07 | 0.12 | 0.15 | 0.08 | ||||||||||||||
Basic net income per share | $ | 2.07 | $ | 1.98 | $ | 1.70 | $ | 1.36 | $ | 0.72 | |||||||||
Diluted net income per share | |||||||||||||||||||
Income from continuing operations | $ | 1.99 | $ | 1.85 | $ | 1.51 | $ | 1.16 | $ | 0.62 | |||||||||
Income from discontinued operations | 0.03 | 0.07 | 0.12 | 0.14 | 0.08 | ||||||||||||||
Diluted net income per share | $ | 2.02 | $ | 1.92 | $ | 1.63 | $ | 1.30 | $ | 0.70 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 168,031,412 | 165,890,258 | 166,015,238 | 177,733,503 | 174,767,795 | ||||||||||||||
Diluted | 172,276,360 | 171,709,518 | 173,325,110 | 186,394,962 | 182,165,661 |
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In thousands, except for share and per share data) | ||||||||||||||||||||
Statement of income data: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Risk Assessment revenues | $ | 542,138 | $ | 523,976 | $ | 504,391 | $ | 485,160 | $ | 472,634 | ||||||||||
Decision Analytics revenues | 596,205 | 503,128 | 389,159 | 317,035 | 257,499 | |||||||||||||||
Revenues | 1,138,343 | 1,027,104 | 893,550 | 802,195 | 730,133 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Cost of revenues | 463,473 | 491,294 | 386,897 | 357,191 | 331,804 | |||||||||||||||
Selling, general and administrative | 166,374 | 162,604 | 131,239 | 107,576 | 100,124 |
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In thousands, except for share and per share data) | ||||||||||||||||||||
Depreciation and amortization of fixed assets | 40,728 | 38,578 | 35,317 | 31,745 | 28,007 | |||||||||||||||
Amortization of intangible assets | 27,398 | 32,621 | 29,555 | 33,916 | 26,854 | |||||||||||||||
Acquisition related liabilties adjustment(1) | (544 | ) | — | — | — | — | ||||||||||||||
Total expenses | 697,429 | 725,097 | 583,008 | 530,428 | 486,789 | |||||||||||||||
Operating income | 440,914 | 302,007 | 310,542 | 271,767 | 243,344 | |||||||||||||||
Other income/(expense): | ||||||||||||||||||||
Investment income | 305 | 195 | 2,184 | 8,451 | 6,476 | |||||||||||||||
Realized gains/(losses) on securities, net | 95 | (2,332 | ) | (2,511 | ) | 857 | (375 | ) | ||||||||||||
Interest expense | (34,664 | ) | (35,265 | ) | (31,316 | ) | (22,928 | ) | (16,668 | ) | ||||||||||
Total other expense, net | (34,264 | ) | (37,402 | ) | (31,643 | ) | (13,620 | ) | (10,567 | ) | ||||||||||
Income from continuing operations before income taxes | 406,650 | 264,605 | 278,899 | 258,147 | 232,777 | |||||||||||||||
Provision for income taxes | (164,098 | ) | (137,991 | ) | (120,671 | ) | (103,184 | ) | (91,992 | ) | ||||||||||
Income from continuing operations | 242,552 | 126,614 | 158,228 | 154,963 | 140,785 | |||||||||||||||
Loss from discontinued operations, net of tax(2) | — | — | — | (4,589 | ) | (1,805 | ) | |||||||||||||
Net income | $ | 242,552 | $ | 126,614 | $ | 158,228 | $ | 150,374 | $ | 138,980 | ||||||||||
Basic net income/(loss) per share(3): | ||||||||||||||||||||
Income from continuing operations | $ | 1.36 | $ | 0.72 | $ | 0.87 | $ | 0.77 | $ | 0.68 | ||||||||||
Loss from discontinued operations | — | — | — | (0.02 | ) | (0.01 | ) | |||||||||||||
Basic net income per share | $ | 1.36 | $ | 0.72 | $ | 0.87 | $ | 0.75 | $ | 0.67 | ||||||||||
Diluted net income/(loss) per share(3): | ||||||||||||||||||||
Income from continuing operations | $ | 1.30 | $ | 0.70 | $ | 0.83 | $ | 0.74 | $ | 0.65 | ||||||||||
Loss from discontinued operations | — | — | — | (0.02 | ) | (0.01 | ) | |||||||||||||
Diluted net income per share | $ | 1.30 | $ | 0.70 | $ | 0.83 | $ | 0.72 | $ | 0.64 | ||||||||||
Weighted average shares outstanding(3): | ||||||||||||||||||||
Basic | 177,733,503 | 174,767,795 | 182,885,700 | 200,846,400 | 206,548,100 | |||||||||||||||
Diluted | 186,394,962 | 182,165,661 | 190,231,700 | 209,257,550 | 215,143,350 | |||||||||||||||
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Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In thousands, except for share and per share data) | ||||||||||||||||||||
Other data: | ||||||||||||||||||||
EBITDA(4): | ||||||||||||||||||||
Risk Assessment EBITDA | $ | 268,417 | $ | 210,928 | $ | 222,706 | $ | 212,780 | $ | 202,872 | ||||||||||
Decision Analytics EBITDA | 240,079 | 162,278 | 152,708 | 124,648 | 95,333 | |||||||||||||||
EBITDA | $ | 508,496 | $ | 373,206 | $ | 375,414 | $ | 337,428 | $ | 298,205 | ||||||||||
The following is a reconciliation of income from continuing operations to EBITDA: | ||||||||||||||||||||
Income from continuing operations | $ | 242,552 | $ | 126,614 | $ | 158,228 | $ | 154,963 | $ | 140,785 | ||||||||||
Depreciation and amortization of fixed and intangible assets | 68,126 | 71,199 | 64,872 | 65,661 | 54,861 | |||||||||||||||
Acquisition related liabilities adjustment(1) | (544 | ) | — | — | — | — | ||||||||||||||
Investment income and realized (gains)/losses on securities, net | (400 | ) | 2,137 | 327 | (9,308 | ) | (6,101 | ) | ||||||||||||
Interest expense | 34,664 | 35,265 | 31,316 | 22,928 | 16,668 | |||||||||||||||
Provision for income taxes | 164,098 | 137,991 | 120,671 | 103,184 | 91,992 | |||||||||||||||
EBITDA | $ | 508,496 | $ | 373,206 | $ | 375,414 | $ | 337,428 | $ | 298,205 | ||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Other data: | |||||||||||||||||||
EBITDA (3): | |||||||||||||||||||
Decision Analytics EBITDA | $ | 413,342 | $ | 379,655 | $ | 305,837 | $ | 240,623 | $ | 162,278 | |||||||||
Risk Assessment EBITDA | 346,931 | 316,260 | 287,050 | 268,817 | 208,791 | ||||||||||||||
EBITDA | $ | 760,273 | $ | 695,915 | $ | 592,887 | $ | 509,440 | $ | 371,069 | |||||||||
The following is a reconciliation of net income to EBITDA: | |||||||||||||||||||
Net income | $ | 348,380 | $ | 329,142 | $ | 282,758 | $ | 242,552 | $ | 126,614 | |||||||||
Depreciation and amortization of fixed and intangible assets from continuing operations | 129,931 | 98,844 | 73,120 | 61,037 | 62,694 | ||||||||||||||
Interest expense from continuing operations | 76,136 | 72,508 | 53,847 | 34,664 | 35,265 | ||||||||||||||
Provision for income taxes from continuing operations | 196,426 | 182,363 | 165,739 | 148,235 | 129,029 | ||||||||||||||
Depreciation, amortization, interest and provision for income taxes from discontinued operations | 9,400 | 13,058 | 17,423 | 22,952 | 17,467 | ||||||||||||||
EBITDA | $ | 760,273 | $ | 695,915 | $ | 592,887 | $ | 509,440 | $ | 371,069 |
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 54,974 | $ | 71,527 | $ | 33,185 | $ | 24,049 | $ | 99,152 | ||||||||||
Total assets | $ | 1,217,090 | $ | 996,953 | $ | 928,877 | $ | 830,041 | $ | 739,282 | ||||||||||
Total debt(5) | $ | 839,543 | $ | 594,169 | $ | 669,754 | $ | 438,330 | $ | 448,698 | ||||||||||
Redeemable common stock(6) | $ | — | $ | — | $ | 749,539 | $ | 1,171,188 | $ | 1,125,933 | ||||||||||
Stockholders’ deficit(7) | $ | (114,442 | ) | $ | (34,949 | ) | $ | (1,009,823 | ) | $ | (1,203,348 | ) | $ | (1,123,977 | ) |
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Cash and cash equivalents | $ | 165,801 | $ | 89,819 | $ | 191,603 | $ | 54,974 | $ | 71,527 | |||||||||
Total assets | $ | 2,504,451 | $ | 2,360,336 | $ | 1,541,106 | $ | 1,217,090 | $ | 996,953 | |||||||||
Total debt (4) | $ | 1,275,887 | $ | 1,461,425 | $ | 1,105,886 | $ | 839,543 | $ | 594,169 | |||||||||
Stockholders’ equity (deficit) (5) | $ | 547,589 | $ | 255,591 | $ | (98,490 | ) | $ | (114,442 | ) | $ | (34,949 | ) |
(1) | During the second quarter of 2011, we reevaluated the probability of D2Hawkeye and Strategic Analytics achieving the specified predetermined EBITDA and revenue targets for exceptional performance in fiscal year 2011 and reversed the contingent consideration related to these acquisitions. During the third quarter of 2010, we reevaluated the probability of TierMed achieving the specified predetermined EBITDA and revenue targets and reversed its contingent consideration related to this acquisition. |
(2) | As of December 31, |
(3) | ||
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▪ | ||
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future and EBITDA does not reflect any cash requirements for such replacements; and | |
Other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure. Please note because EBITDA is calculated from net income, this presentation includes EBITDA from discontinued operations of our mortgage services business. |
(4) | Includes capital lease obligations. |
(5) | Subsequent to our corporate reorganization on October 6, 2009, share repurchases are recorded as treasury stock within stockholders’ |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
ESOP costs by contribution type: | ||||||||||||
401(k) matching contribution expense | $ | 9,932 | $ | 7,604 | $ | 8,570 | ||||||
Profit sharing contribution expense | 1,641 | 1,139 | 1,141 | |||||||||
ESOP allocation expense | — | 67,322 | 12,563 | |||||||||
Total ESOP cost | $ | 11,573 | $ | 76,065 | $ | 22,274 | ||||||
ESOP costs by segment: | ||||||||||||
Risk Assessment ESOP costs | $ | 6,861 | $ | 43,641 | $ | 14,055 | ||||||
Decision Analytics ESOP costs | 4,712 | 32,424 | 8,219 | |||||||||
Total ESOP cost | $ | 11,573 | $ | 76,065 | $ | 22,274 | ||||||
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2013 | 2012 | Percentage Change | ||||||||
(In thousands) | ||||||||||
Insurance | $ | 539,150 | $ | 493,456 | 9.3 | % | ||||
Financial services | 81,113 | 26,567 | 205.3 | % | ||||||
Healthcare | 271,538 | 222,955 | 21.8 | % | ||||||
Specialized markets | 85,626 | 85,364 | 0.3 | % | ||||||
Total Decision Analytics | $ | 977,427 | $ | 828,342 | 18.0 | % |
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Year Ended | ||||||||||||
December 31, | Percentage | |||||||||||
2010 | 2009 | Change | ||||||||||
(In thousands) | ||||||||||||
Industry-standard insurance programs | $ | 353,501 | $ | 341,079 | 3.6 | % | ||||||
Property-specific rating and underwriting information | 137,071 | 132,027 | 3.8 | % | ||||||||
Statistical agency and data services | 29,357 | 28,619 | 2.6 | % | ||||||||
Actuarial services | 22,209 | 22,251 | (0.2 | )% | ||||||||
Total Risk Assessment | $ | 542,138 | $ | 523,976 | 3.5 | % | ||||||
2013 | 2012 | Percentage Change | ||||||||
(In thousands) | ||||||||||
Industry-standard insurance programs | $ | 471,130 | $ | 450,646 | 4.5 | % | ||||
Property-specific rating and underwriting information | 147,146 | 128,860 | 14.2 | % | ||||||
Total Risk Assessment | $ | 618,276 | $ | 579,506 | 6.7 | % |
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Year Ended | ||||||||||||
December 31, | Percentage | |||||||||||
2010 | 2009 | Change | ||||||||||
(In thousands) | ||||||||||||
Fraud identification and detection solutions | $ | 320,781 | $ | 273,103 | 17.5 | % | ||||||
Loss prediction solutions | 158,406 | 137,328 | 15.4 | % | ||||||||
Loss quantification solutions | 117,018 | 92,697 | 26.2 | % | ||||||||
Total Decision Analytics | $ | 596,205 | $ | 503,128 | 18.5 | % | ||||||
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2012 | 2011 | Percentage Change | ||||||||
(In thousands) | ||||||||||
Insurance | $ | 493,456 | $ | 451,216 | 9.4 | % | ||||
Financial services | 26,567 | 5,323 | 399.1 | % | ||||||
Healthcare | 222,955 | 103,722 | 115.0 | % | ||||||
Specialized markets | 85,364 | 78,839 | 8.3 | % | ||||||
Total Decision Analytics | $ | 828,342 | $ | 639,100 | 29.6 | % |
Year Ended | ||||||||||||
December 31, | Percentage | |||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Industry-standard insurance programs | $ | 341,079 | $ | 329,858 | 3.4 | % | ||||||
Property-specific rating and underwriting information | 132,027 | 125,835 | 4.9 | % | ||||||||
Statistical agency and data services | 28,619 | 27,451 | 4.3 | % | ||||||||
Actuarial services | 22,251 | 21,247 | 4.7 | % | ||||||||
Total Risk Assessment | $ | 523,976 | $ | 504,391 | 3.9 | % | ||||||
2012 | 2011 | Percentage Change | ||||||||
(In thousands) | ||||||||||
Industry-standard insurance programs | $ | 450,646 | $ | 426,228 | 5.7 | % | ||||
Property-specific rating and underwriting information | 128,860 | 126,065 | 2.2 | % | ||||||
Total Risk Assessment | $ | 579,506 | $ | 552,293 | 4.9 | % |
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Year Ended | ||||||||||||
December 31, | Percentage | |||||||||||
2009 | 2008 | Change | ||||||||||
(In thousands) | ||||||||||||
Fraud identification and detection solutions | $ | 273,103 | $ | 213,994 | 27.6 | % | ||||||
Loss prediction solutions | 137,328 | 95,128 | 44.4 | % | ||||||||
Loss quantification solutions | 92,697 | 80,037 | 15.8 | % | ||||||||
Total Decision Analytics | $ | 503,128 | $ | 389,159 | 29.3 | % | ||||||
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For the Quarter Ended | For the Quarter Ended | |||||||||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Full Year | March 31, | June 30, | September 30, | December 31, | Full Year | |||||||||||||||||||||||||||||||
2010 | 2010 | 2009 | 2009 | |||||||||||||||||||||||||||||||||||||
Statement of income data: | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 276,154 | $ | 281,677 | $ | 287,354 | $ | 293,158 | $ | 1,138,343 | $ | 245,751 | $ | 257,916 | $ | 258,311 | $ | 265,126 | $ | 1,027,104 | ||||||||||||||||||||
Operating income | $ | 106,414 | $ | 107,075 | $ | 113,718 | $ | 113,707 | $ | 440,914 | $ | 87,203 | $ | 87,851 | $ | 84,795 | $ | 42,158 | $ | 302,007 | ||||||||||||||||||||
Net income/(loss) | $ | 55,375 | $ | 58,404 | $ | 62,880 | $ | 65,893 | $ | 242,552 | $ | 44,915 | $ | 45,939 | $ | 42,205 | $ | (6,445 | ) | $ | 126,614 | |||||||||||||||||||
Basic net income/(loss) per share: | $ | 0.31 | $ | 0.32 | $ | 0.35 | $ | 0.38 | $ | 1.36 | $ | 0.26 | $ | 0.27 | $ | 0.24 | $ | (0.04 | ) | $ | 0.72 | |||||||||||||||||||
Diluted net income/(loss) per share: | $ | 0.29 | $ | 0.31 | $ | 0.34 | $ | 0.37 | $ | 1.30 | $ | 0.25 | $ | 0.26 | $ | 0.23 | $ | (0.03 | ) | $ | 0.70 |
For the Quarters Ended | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | Full Year | |||||||||||
2013 | 2013 | ||||||||||||||
(in thousands, except for per share data) | |||||||||||||||
Statement of operations data: | |||||||||||||||
Revenues | $ | 376,697 | $ | 390,356 | $ | 411,927 | $ | 416,723 | $ | 1,595,703 | |||||
Operating income | $ | 145,528 | $ | 146,857 | $ | 166,835 | $ | 155,047 | $ | 614,267 | |||||
Income from continuing operations | $ | 79,445 | $ | 81,600 | $ | 94,894 | $ | 86,375 | $ | 342,314 | |||||
Income from discontinued operations | $ | 1,066 | $ | 2,605 | $ | 1,547 | $ | 848 | $ | 6,066 | |||||
Net income | $ | 80,511 | $ | 84,205 | $ | 96,441 | $ | 87,223 | $ | 348,380 | |||||
Basic net income per share: | $ | 0.48 | $ | 0.50 | $ | 0.57 | $ | 0.52 | $ | 2.07 | |||||
Diluted net income per share: | $ | 0.47 | $ | 0.49 | $ | 0.56 | $ | 0.51 | $ | 2.02 | |||||
For the Quarters Ended | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | Full Year | |||||||||||
2012 | 2012 | ||||||||||||||
(in thousands, except for per share data) | |||||||||||||||
Statement of operations data: | |||||||||||||||
Revenues | $ | 313,451 | $ | 339,128 | $ | 366,788 | $ | 388,481 | $ | 1,407,848 | |||||
Operating income | $ | 132,416 | $ | 132,141 | $ | 150,314 | $ | 157,357 | $ | 572,228 | |||||
Income from continuing operations | $ | 70,650 | $ | 69,556 | $ | 79,932 | $ | 97,325 | $ | 317,463 | |||||
Income from discontinued operations | $ | 3,951 | $ | 3,775 | $ | 2,979 | $ | 974 | $ | 11,679 | |||||
Net income | $ | 74,601 | $ | 73,331 | $ | 82,911 | $ | 98,299 | $ | 329,142 | |||||
Basic net income per share: | $ | 0.45 | $ | 0.44 | $ | 0.50 | $ | 0.59 | $ | 1.98 | |||||
Diluted net income per share: | $ | 0.44 | $ | 0.43 | $ | 0.48 | $ | 0.57 | $ | 1.92 |
45
46
For the Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Net cash provided by operating activities | $ | 336,032 | $ | 326,401 | $ | 247,906 | ||||||
Net cash used in investing activities | $ | (243,689 | ) | $ | (185,340 | ) | $ | (130,466 | ) | |||
Net cash used in financing activities | $ | (108,787 | ) | $ | (102,809 | ) | $ | (107,376 | ) |
47
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities | $ | 506,920 | $ | 468,229 | $ | 375,721 | |||||
Net cash used in investing activities | $ | (145,626 | ) | $ | (883,583 | ) | $ | (204,129 | ) | ||
Net cash (used in) provided by financing activities | $ | (284,472 | ) | $ | 313,555 | $ | (34,780 | ) |
48
Payments Due by Period | ||||||||||||||||||||
Less than | More than | |||||||||||||||||||
Total | 1 Year | 1-3 years | 3-5 years | 5 Years | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Contractual obligations | ||||||||||||||||||||
Debt | $ | 934,461 | $ | 465,464 | $ | 225,611 | $ | 191,838 | $ | 51,548 | ||||||||||
Capital lease obligations | 4,162 | 2,511 | 1,547 | 104 | — | |||||||||||||||
Operating leases | 207,009 | 26,226 | 49,459 | 41,780 | 89,544 | |||||||||||||||
Earnout and contingent payments | 7,893 | 3,500 | 4,393 | — | — | |||||||||||||||
Pension and postretirement plans(1) | 204,179 | 30,392 | 67,949 | 64,496 | 41,342 | |||||||||||||||
Other long-term liabilities(2) | 12,843 | 740 | 748 | 8,086 | 3,269 | |||||||||||||||
Total(3) | $ | 1,370,547 | $ | 528,833 | $ | 349,707 | $ | 306,304 | $ | 185,703 | ||||||||||
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 year | 2-3 years | 4-5 years | More than 5 years | |||||||||||||||
(In thousands) | |||||||||||||||||||
Contractual obligations | |||||||||||||||||||
Long-term debt and interest | $ | 1,671,933 | $ | 66,712 | $ | 334,944 | $ | 105,450 | $ | 1,164,827 | |||||||||
Operating leases | 235,281 | 34,590 | 69,128 | 58,544 | 73,019 | ||||||||||||||
Pension and postretirement plans (1) | 22,498 | 1,901 | 4,048 | 3,995 | 12,554 | ||||||||||||||
Capital lease obligations | 11,366 | 4,750 | 6,093 | 329 | 194 | ||||||||||||||
Other long-term liabilities (2) | 21,852 | 452 | 19,020 | 169 | 2,211 | ||||||||||||||
Total (3) | $ | 1,962,930 | $ | 108,405 | $ | 433,233 | $ | 168,487 | $ | 1,252,805 |
(1) | Our funding policy is to contribute at least equal to the minimum legal funding requirement. |
(2) | Other long-term liabilities consist of our ESOP contributions and employee-related deferred compensation plan. We also have a deferred compensation plan for our Board of Directors; however, based on past performance and the uncertainty of the dollar amounts to be paid, if any, we have excluded such amounts from the above table. |
(3) | Unrecognized tax benefits of approximately |
49
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
2005 grants | $ | — | $ | 757 | $ | 2,209 | ||||||
2006 grants | 395 | 1,730 | 1,870 | |||||||||
2007 grants | 2,300 | 2,056 | 2,561 | |||||||||
2008 grants | 2,542 | 2,669 | 3,241 | |||||||||
2009 grants | 9,131 | 5,532 | — | |||||||||
2010 grants | 6,930 | — | — | |||||||||
Total stock-based compensation | $ | 21,298 | $ | 12,744 | $ | 9,881 | ||||||
50
51
52
Pension | Postretirement | |||||||||||||||||||||||||||||||
1% Decrease | 1% Increase | 1% Decrease | 1% Increase | |||||||||||||||||||||||||||||
Projected | Projected | Projected | Projected | |||||||||||||||||||||||||||||
Benefit | Benefit | Benefit | Benefit | Benefit | Benefit | Benefit | Benefit | |||||||||||||||||||||||||
Cost | Obligation | Cost | Obligation | Cost | Obligation | Cost | Obligation | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Discount rate | $ | 2,410 | $ | 42,580 | $ | (1,913 | ) | $ | (34,026 | ) | $ | (106 | ) | $ | 1,465 | $ | 95 | $ | (1,327 | ) | ||||||||||||
Expected return on asset | $ | 2,745 | $ | — | $ | (2,745 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Rate of compensation | $ | (455 | ) | $ | (2,226 | ) | $ | 503 | $ | 2,440 | $ | — | $ | — | $ | — | $ | — |
Pension | Postretirement | ||||||||||||||||||||||||||||||
1% Decrease | 1% Increase | 1% Decrease | 1% Increase | ||||||||||||||||||||||||||||
Benefit (Credit) Cost | Projected Benefit Obligation | Benefit (Credit) Cost | Projected Benefit Obligation | Benefit (Credit) Cost | Projected Benefit Obligation | Benefit (Credit) Cost | Projected Benefit Obligation | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||
Discount Rate | $ | (652 | ) | $ | 45,160 | $ | 292 | $ | (35,224 | ) | $ | (86 | ) | $ | 1,324 | $ | 68 | $ | (1,253 | ) | |||||||||||
Expected Rate of Return on Assets | $ | 4,064 | $ | — | $ | (4,064 | ) | $ | — | $ | 184 | $ | — | $ | (184 | ) | $ | — |
(In thousands) | ||||
2011 - 2018 | $ | 44,973 | ||
2019 - 2023 | 436 | |||
2024 - 2030 | 15,396 | |||
$ | 60,805 | |||
53
(In thousands) | |||
2014 - 2021 | $ | 12,916 | |
2022 - 2026 | 14,345 | ||
2027 - 2033 | 52,478 | ||
$ | 79,739 |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
54
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions and Director Independence |
Item 14. | Principal Accounting Fees and Services |
Item 15. | Exhibits and Financial Statement Schedules |
(1) | Financial Statements. See Index to Financial Statements and Schedules in Part II, Item 8. on thisForm 10-K. |
(2) | Financial Statement Schedules. See Schedule II. Valuation and Qualifying Accounts and Reserves. |
Exhibits. See Index to Exhibits in this annual report onForm 10-K. |
55
Item 8. | Consolidated Financial Statements and Supplementary Data |
Verisk Analytics, Inc. Consolidated Financial Statements as of December 31, | 2011. | |||
Financial Statements Schedule | ||||
57
58
2010 | 2009 | |||||||
(In thousands, except for share and per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 54,974 | $ | 71,527 | ||||
Available-for-sale securities | 5,653 | 5,445 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $4,028 and $3,844, respectively (including amounts from related parties of $515 and $1,353) in 2010 and 2009, respectively(1) | 126,564 | 89,436 | ||||||
Prepaid expenses | 17,791 | 16,155 | ||||||
Deferred income taxes, net | 3,681 | 4,405 | ||||||
Federal and foreign income taxes receivable | 15,783 | 16,721 | ||||||
State and local income taxes receivable | 8,923 | — | ||||||
Other current assets | 7,066 | 21,656 | ||||||
Total current assets | 240,435 | 225,345 | ||||||
Noncurrent assets: | ||||||||
Fixed assets, net | 93,409 | 89,165 | ||||||
Intangible assets, net | 200,229 | 108,526 | ||||||
Goodwill | 632,668 | 490,829 | ||||||
Deferred income taxes, net | 21,879 | 66,257 | ||||||
State income taxes receivable | 1,773 | 6,536 | ||||||
Other assets | 26,697 | 10,295 | ||||||
Total assets | $ | 1,217,090 | $ | 996,953 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 111,995 | $ | 101,401 | ||||
Acquisition related liabilities | 3,500 | — | ||||||
Short-term debt and current portion of long-term debt | 437,717 | 66,660 | ||||||
Pension and postretirement benefits, current | 4,663 | 5,284 | ||||||
Fees received in advance (including amounts from related parties of $1,231 and $439, respectively)(1) | 163,007 | 125,520 | ||||||
State and local income taxes payable | — | 1,414 | ||||||
Total current liabilities | 720,882 | 300,279 | ||||||
Noncurrent liabilities: | ||||||||
Long-term debt | 401,826 | 527,509 | ||||||
Pension benefits | 95,528 | 102,046 | ||||||
Postretirement benefits | 23,083 | 25,108 | ||||||
Other liabilities | 90,213 | 76,960 | ||||||
Total liabilities | 1,331,532 | 1,031,902 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity/(deficit): | ||||||||
Verisk Class A common stock, $.001 par value; 1,200,000,000 shares authorized; 150,179,126 and 125,815,600 shares issued and 143,067,924 and 125,815,600 outstanding as of December 31, 2010 and 2009, respectively | 39 | 30 | ||||||
Verisk Class B (Series 1) common stock, $.001 par value; 400,000,000 shares authorized; 198,327,962 and 205,637,925 shares issued and 12,225,480 and 27,118,975 outstanding as of December 31, 2010 and 2009, respectively | 47 | 50 | ||||||
Verisk Class B (Series 2) common stock, $.001 par value; 400,000,000 shares authorized; 193,665,008 and 205,637,925 shares issued and 14,771,340 and 27,118,975 outstanding as of December 31, 2010 and 2009, respectively | 49 | 50 | ||||||
Unearned KSOP contributions | (988 | ) | (1,305 | ) | ||||
Additional paid-in capital | 754,708 | 652,573 | ||||||
Treasury stock, at cost, 372,107,352 and 357,037,900 shares as of December 31, 2010 and 2009, respectively | (1,106,321 | ) | (683,994 | ) | ||||
Retained earnings | 293,827 | 51,275 | ||||||
Accumulated other comprehensive loss | (55,803 | ) | (53,628 | ) | ||||
Total stockholders’ deficit | (114,442 | ) | (34,949 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 1,217,090 | $ | 996,953 | ||||
60
2010 | 2009 | 2008 | ||||||||||
(In thousands, except for share and per share data) | ||||||||||||
Revenues (including amounts from related parties of $49,788, $60,192 and $90,227 for the years ended December 31, 2010, 2009 and 2008, respectively)(1) | $ | 1,138,343 | $ | 1,027,104 | $ | 893,550 | ||||||
Expenses: | ||||||||||||
Cost of revenues (exclusive of items shown separately below) | 463,473 | 491,294 | 386,897 | |||||||||
Selling, general and administrative | 166,374 | 162,604 | 131,239 | |||||||||
Depreciation and amortization of fixed assets | 40,728 | 38,578 | 35,317 | |||||||||
Amortization of intangible assets | 27,398 | 32,621 | 29,555 | |||||||||
Acquisition related liabilities adjustment | (544 | ) | — | — | ||||||||
Total expenses | 697,429 | 725,097 | 583,008 | |||||||||
Operating income | 440,914 | 302,007 | 310,542 | |||||||||
Other income/(expense): | ||||||||||||
Investment income | 305 | 195 | 2,184 | |||||||||
Realized gains/(losses) on securities, net | 95 | (2,332 | ) | (2,511 | ) | |||||||
Interest expense | (34,664 | ) | (35,265 | ) | (31,316 | ) | ||||||
Total other expense, net | (34,264 | ) | (37,402 | ) | (31,643 | ) | ||||||
Income before income taxes | 406,650 | 264,605 | 278,899 | |||||||||
Provision for income taxes | (164,098 | ) | (137,991 | ) | (120,671 | ) | ||||||
Net income | 242,552 | 126,614 | 158,228 | |||||||||
Basic net income per share of Class A and Class B(2): | $ | 1.36 | $ | 0.72 | $ | 0.87 | ||||||
Diluted net income per share of Class A and Class B(2): | $ | 1.30 | $ | 0.70 | $ | 0.83 | ||||||
Weighted average shares outstanding: | ||||||||||||
Basic(2) | 177,733,503 | 174,767,795 | 182,885,700 | |||||||||
Diluted(2) | 186,394,962 | 182,165,661 | 190,231,700 | |||||||||
61
Common Stock Issued | (Accumulated | Accumulated | Total | |||||||||||||||||||||||||||||||||||||||||
Verisk | Verisk | Unearned | Additional | Deficit)/ | Other | Stockholders’ | ||||||||||||||||||||||||||||||||||||||
Verisk | ISO | Class B | Class B | Par | KSOP | Paid-in | Treasury | Retained | Comprehensive | (Deficit)/ | ||||||||||||||||||||||||||||||||||
Class A | Class B | (Series 1) | (Series 2) | Value | Contributions | Capital | Stock | Earnings | Loss | Equity | ||||||||||||||||||||||||||||||||||
(In thousands, except for share data) | ||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2008 | — | 500,225,000 | — | — | $ | 100 | $ | — | $ | — | $ | (678,993 | ) | $ | (515,756 | ) | $ | (8,699 | ) | $ | (1,203,348 | ) | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | 158,228 | — | 158,228 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | — | (73,735 | ) | (73,735 | ) | |||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | — | — | — | — | — | 84,493 | |||||||||||||||||||||||||||||||||
Treasury stock acquired - ISO Class B common stock | — | — | — | — | — | — | — | (5,001 | ) | — | — | (5,001 | ) | |||||||||||||||||||||||||||||||
Decrease in redemption value of ISO Class A common stock | — | — | — | — | — | — | — | — | 114,033 | — | 114,033 | |||||||||||||||||||||||||||||||||
Balance, December 31, 2008 | — | 500,225,000 | — | — | $ | 100 | $ | — | $ | — | $ | (683,994 | ) | $ | (243,495 | ) | $ | (82,434 | ) | $ | (1,009,823 | ) | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | 126,614 | — | 126,614 | |||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | 28,806 | 28,806 | |||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | — | — | — | — | — | 155,420 | |||||||||||||||||||||||||||||||||
Increase in redemption value of ISO Class A common stock | — | — | — | — | — | — | — | — | (272,428 | ) | — | (272,428 | ) | |||||||||||||||||||||||||||||||
Conversion of ISO Class B common stock upon corporate reorganization (Note 14) | 88,949,150 | (500,225,000 | ) | 205,637,925 | 205,637,925 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Conversion of ISO Class A redeemable common stock upon corporate reorganization (Note 14) | 34,768,750 | — | — | — | 30 | (1,305 | ) | 624,282 | — | 440,584 | — | 1,063,591 | ||||||||||||||||||||||||||||||||
KSOP shares earned | — | — | — | — | — | — | 725 | — | — | — | 725 | |||||||||||||||||||||||||||||||||
Stock options exercised (including tax benefit of $18,253) | 2,097,700 | — | — | — | — | — | 23,348 | — | — | — | 23,348 | |||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 4,218 | — | — | — | 4,218 | |||||||||||||||||||||||||||||||||
Balance, December 31, 2009 | 125,815,600 | — | 205,637,925 | 205,637,925 | $ | 130 | $ | (1,305 | ) | $ | 652,573 | $ | (683,994 | ) | $ | 51,275 | $ | (53,628 | ) | $ | (34,949 | ) | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | 242,552 | — | 242,552 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | — | (2,175 | ) | (2,175 | ) | |||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | — | — | — | — | — | 240,377 | |||||||||||||||||||||||||||||||||
Conversion ofClass B-1 common stock upon follow-on public offering (Note 1) | 7,309,963 | — | (7,309,963 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Conversion ofClass B-2 common stock upon follow-on public offering (Note 1) | 11,972,917 | — | — | (11,972,917 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Treasury stock acquired - Class A (7,111,202 shares) | — | — | — | — | — | — | — | (212,512 | ) | — | — | (212,512 | ) | |||||||||||||||||||||||||||||||
Treasury stock acquired -Class B-1 (7,583,532 shares) | — | — | — | — | — | — | — | (199,936 | ) | — | — | (199,936 | ) | |||||||||||||||||||||||||||||||
Treasury stock acquired -Class B-2 (374,718 shares) | — | — | — | — | — | — | — | (9,879 | ) | — | — | (9,879 | ) | |||||||||||||||||||||||||||||||
KSOP shares earned | — | — | — | — | — | 317 | 11,256 | — | — | — | 11,573 | |||||||||||||||||||||||||||||||||
Stock options exercised (including tax benefit of $49,015) | 5,579,135 | — | — | — | 5 | — | 84,492 | — | — | — | 84,497 | |||||||||||||||||||||||||||||||||
Net share settlement of taxes upon exercise of stock options | (503,043 | ) | — | — | — | — | — | (15,051 | ) | — | — | — | (15,051 | ) | ||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 21,298 | — | — | — | 21,298 | |||||||||||||||||||||||||||||||||
Other stock issuances | 4,554 | — | — | — | — | — | 140 | — | — | — | 140 | |||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 150,179,126 | — | 198,327,962 | 193,665,008 | $ | 135 | $ | (988 | ) | $ | 754,708 | $ | (1,106,321 | ) | $ | 293,827 | $ | (55,803 | ) | $ | (114,442 | ) | ||||||||||||||||||||||
62
2013 | 2012 | ||||||
(In thousands, except for share and per share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 165,801 | $ | 89,819 | |||
Available-for-sale securities | 3,911 | 4,883 | |||||
Accounts receivable, net | 158,547 | 178,430 | |||||
Prepaid expenses | 25,657 | 21,946 | |||||
Deferred income taxes, net | 5,077 | 10,397 | |||||
Income taxes receivable | 67,346 | 45,975 | |||||
Other current assets | 34,681 | 39,109 | |||||
Current assets held-for-sale | 13,825 | — | |||||
Total current assets | 474,845 | 390,559 | |||||
Noncurrent assets: | |||||||
Fixed assets, net | 233,373 | 154,084 | |||||
Intangible assets, net | 447,618 | 520,935 | |||||
Goodwill | 1,181,681 | 1,247,459 | |||||
Pension assets | 60,955 | — | |||||
Other assets | 20,034 | 47,299 | |||||
Noncurrent assets held-for-sale | 85,945 | — | |||||
Total assets | $ | 2,504,451 | $ | 2,360,336 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 188,264 | $ | 187,648 | |||
Short-term debt and current portion of long-term debt | 4,448 | 195,263 | |||||
Pension and postretirement benefits, current | 2,437 | 1,734 | |||||
Fees received in advance | 226,581 | 200,705 | |||||
Current liabilities held-for-sale | 9,449 | — | |||||
Total current liabilities | 431,179 | 585,350 | |||||
Noncurrent liabilities: | |||||||
Long-term debt | 1,271,439 | 1,266,162 | |||||
Pension benefits | 13,007 | 38,655 | |||||
Postretirement benefits | 2,061 | 2,627 | |||||
Deferred income taxes, net | 198,604 | 133,761 | |||||
Other liabilities | 36,043 | 78,190 | |||||
Noncurrent liabilities held-for-sale | 4,529 | — | |||||
Total liabilities | 1,956,862 | 2,104,745 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Verisk Class A common stock, $.001 par value; 1,200,000,000 shares authorized; 544,003,038 shares issued and 167,457,927 and 167,727,073 outstanding, respectively | 137 | 137 | |||||
Unearned KSOP contributions | (306 | ) | (483 | ) | |||
Additional paid-in capital | 1,202,106 | 1,044,746 | |||||
Treasury stock, at cost, 376,545,111 and 376,275,965 shares, respectively | (1,864,967 | ) | (1,605,376 | ) | |||
Retained earnings | 1,254,107 | 905,727 | |||||
Accumulated other comprehensive losses | (43,488 | ) | (89,160 | ) | |||
Total stockholders’ equity | 547,589 | 255,591 | |||||
Total liabilities and stockholders’ equity | $ | 2,504,451 | $ | 2,360,336 | |||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 242,552 | $ | 126,614 | $ | 158,228 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization of fixed assets | 40,728 | 38,578 | 35,317 | |||||||||
Amortization of intangible assets | 27,398 | 32,621 | 29,555 | |||||||||
Amortization of debt issuance costs | 1,463 | 785 | — | |||||||||
Allowance for doubtful accounts | 648 | 916 | 1,536 | |||||||||
KSOP compensation expense | 11,573 | 76,065 | 22,274 | |||||||||
Acquisition related compensation expense | — | — | 300 | |||||||||
Stock-based compensation | 21,298 | 12,744 | 9,881 | |||||||||
Non-cash charges/(credits) associated with performance based appreciation awards | 789 | 4,039 | (91 | ) | ||||||||
Interest income on notes receivable from stockholders | — | — | (1,050 | ) | ||||||||
Proceeds from repayment of interest on notes receivable from stockholders | — | — | 2,318 | |||||||||
Acquisition related liabilities adjustment | (544 | ) | — | — | ||||||||
Realized (gains)/losses on securities, net | (95 | ) | 2,332 | 2,511 | ||||||||
Deferred income taxes | 10,294 | 12,190 | 19,895 | |||||||||
Other operating | 198 | 222 | 284 | |||||||||
Loss on disposal of assets | 239 | 810 | 1,082 | |||||||||
Non-cash charges associated with lease termination | — | 196 | — | |||||||||
Excess tax benefits from exercised stock options | (49,015 | ) | (19,976 | ) | (26,099 | ) | ||||||
Changes in assets and liabilities, net of effects from acquisitions: | ||||||||||||
Accounts receivable | (24,559 | ) | (1,990 | ) | 3,609 | |||||||
Prepaid expenses and other assets | 899 | (1,839 | ) | (6,486 | ) | |||||||
Federal and foreign income taxes | 50,232 | 13,662 | 5,969 | |||||||||
State and local income taxes | (5,679 | ) | 5,710 | (5,977 | ) | |||||||
Accounts payable and accrued liabilities | 4,340 | 2,986 | 3,075 | |||||||||
Acquisition related liabilities | — | (300 | ) | (2,200 | ) | |||||||
Fees received in advance | 20,984 | 10,460 | (1,042 | ) | ||||||||
Other liabilities | (17,711 | ) | 9,576 | (4,983 | ) | |||||||
Net cash provided by operating activities | 336,032 | 326,401 | 247,906 | |||||||||
Cash flows from investing activities: | ||||||||||||
Acquisitions, net of cash acquired of $10,524, $9,477 and $365, respectively | (189,578 | ) | (61,350 | ) | (18,951 | ) | ||||||
Purchase of noncontrolling interest in non-public companies | — | — | (5,800 | ) | ||||||||
Earnout payments | — | (78,100 | ) | (98,100 | ) | |||||||
Proceeds from release of acquisition related escrows | 283 | 129 | 558 | |||||||||
Escrow funding associated with acquisitions | (15,980 | ) | (7,636 | ) | (1,500 | ) | ||||||
Purchases ofavailable-for-sale securities | (516 | ) | (575 | ) | (361 | ) | ||||||
Proceeds from sales and maturities ofavailable-for-sale securities | 743 | 886 | 21,724 | |||||||||
Purchases of fixed assets | (38,641 | ) | (38,694 | ) | (30,652 | ) | ||||||
Proceeds from repayment of notes receivable from stockholders | — | — | 3,863 | |||||||||
Issuance of notes receivable from stockholders | — | — | (1,247 | ) | ||||||||
Net cash used in investing activities | (243,689 | ) | (185,340 | ) | (130,466 | ) |
63
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of long-term debt | — | 80,000 | 150,000 | |||||||||
Proceeds from issuance of short-term debt with original maturities of three months or greater | 215,000 | — | 114,000 | |||||||||
Proceeds/(repayments) of short-term debt, net | 35,000 | (59,244 | ) | (35,287 | ) | |||||||
Redemption of ISO Class A common stock | — | (46,740 | ) | (387,561 | ) | |||||||
Repurchase of ISO Class B common stock | — | — | (5,001 | ) | ||||||||
Repurchase of Verisk Class A common stock | (210,246 | ) | — | — | ||||||||
Repurchase of VeriskClass B-1 common stock | (199,936 | ) | — | — | ||||||||
Repurchase of VeriskClass B-2 common stock | (9,879 | ) | — | — | ||||||||
Net share settlement of taxes upon exercise of stock options | (15,051 | ) | — | — | ||||||||
Repayment of current portion of long-term debt | — | (100,000 | ) | — | ||||||||
Payment of debt issuance cost | (1,781 | ) | (4,510 | ) | — | |||||||
Excess tax benefits from exercised stock options | 49,015 | 19,976 | 26,099 | |||||||||
Proceeds from repayment of exercise price loans classified as a component of redeemable common stock | — | — | 29,482 | |||||||||
Proceeds from stock options exercised | 35,482 | 7,709 | 892 | |||||||||
Other financing | (6,391 | ) | — | — | ||||||||
Net cash used in financing activities | (108,787 | ) | (102,809 | ) | (107,376 | ) | ||||||
Effect of exchange rate changes | (109 | ) | 90 | (928 | ) | |||||||
(Decrease)/increase in cash and cash equivalents | (16,553 | ) | 38,342 | 9,136 | ||||||||
Cash and cash equivalents, beginning of period | 71,527 | 33,185 | 24,049 | |||||||||
Cash and cash equivalents, end of period | $ | 54,974 | $ | 71,527 | $ | 33,185 | ||||||
Supplemental disclosures: | ||||||||||||
Taxes paid | $ | 113,609 | $ | 111,458 | $ | 99,323 | ||||||
Interest paid | $ | 32,989 | $ | 34,201 | $ | 28,976 | ||||||
Non-cash investing and financing activities: | ||||||||||||
Loans made to directors and officers in connection with the exercise of stock options | $ | — | $ | — | $ | (20,148 | ) | |||||
Repurchase of Verisk Class A common stock included in accounts payable and accrued liabilities | $ | 2,266 | $ | — | $ | — | ||||||
Redemption of ISO Class A common stock used to repay maturities of notes receivable from stockholders | $ | — | $ | — | $ | 42,202 | ||||||
Redemption of ISO Class A common stock used to fund the exercise of stock options | $ | — | $ | 2,326 | $ | 4,281 | ||||||
Deferred tax liabilities established as a result of acquisitions | $ | (36,537 | ) | $ | (5,728 | ) | $ | (2,963 | ) | |||
Capital lease obligations | $ | 1,554 | $ | 3,659 | $ | 2,610 | ||||||
Capital expenditures included in accounts payable and accrued liabilities | $ | 2,138 | $ | 1,388 | $ | — | ||||||
Decrease in goodwill due to finalization of acquisition related liabilities | $ | — | $ | (4,300 | ) | $ | — | |||||
Increase in goodwill due to acquisition related escrow distributions | $ | 6,996 | $ | 181 | $ | 4,388 | ||||||
Increase in goodwill due to accrual of acquisition related liabilities | $ | 3,500 | $ | — | $ | 82,400 | ||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except for share and per share data) | |||||||||||
Revenues (including amounts from related parties of $13,882, in 2011, Note 19) | $ | 1,595,703 | $ | 1,407,848 | $ | 1,191,393 | |||||
Expenses: | |||||||||||
Cost of revenues (exclusive of items shown separately below) | 622,523 | 516,708 | 440,979 | ||||||||
Selling, general and administrative | 228,982 | 220,068 | 199,495 | ||||||||
Depreciation and amortization of fixed assets | 66,190 | 46,637 | 40,135 | ||||||||
Amortization of intangible assets | 63,741 | 52,207 | 32,985 | ||||||||
Acquisition related liabilities adjustment | — | — | (3,364 | ) | |||||||
Total expenses | 981,436 | 835,620 | 710,230 | ||||||||
Operating income | 614,267 | 572,228 | 481,163 | ||||||||
Other income (expense): | |||||||||||
Investment income | 701 | 438 | 193 | ||||||||
Realized (loss) gain on available-for-sale securities, net | (92 | ) | (332 | ) | 686 | ||||||
Interest expense | (76,136 | ) | (72,508 | ) | (53,847 | ) | |||||
Total other expense, net | (75,527 | ) | (72,402 | ) | (52,968 | ) | |||||
Income before income taxes | 538,740 | 499,826 | 428,195 | ||||||||
Provision for income taxes | (196,426 | ) | (182,363 | ) | (165,739 | ) | |||||
Income from continuing operations | 342,314 | 317,463 | 262,456 | ||||||||
Income from discontinued operations, net of tax of $4,753, $7,703 and $11,924, respectively (Note 10) | 6,066 | 11,679 | 20,302 | ||||||||
Net income | $ | 348,380 | $ | 329,142 | $ | 282,758 | |||||
Basic net income per share: | |||||||||||
Income from continuing operations | $ | 2.04 | $ | 1.91 | $ | 1.58 | |||||
Income from discontinued operations | 0.03 | 0.07 | 0.12 | ||||||||
Basic net income per share | $ | 2.07 | $ | 1.98 | $ | 1.70 | |||||
Diluted net income per share: | |||||||||||
Income from continuing operations | $ | 1.99 | $ | 1.85 | $ | 1.51 | |||||
Income from discontinued operations | 0.03 | 0.07 | 0.12 | ||||||||
Diluted net income per share | $ | 2.02 | $ | 1.92 | $ | 1.63 | |||||
Weighted average shares outstanding: | |||||||||||
Basic | 168,031,412 | 165,890,258 | 166,015,238 | ||||||||
Diluted | 172,276,360 | 171,709,518 | 173,325,110 |
64
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Net income | $ | 348,380 | $ | 329,142 | $ | 282,758 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized foreign currency (loss) gain | (840 | ) | 15 | (183 | ) | ||||||
Unrealized holding loss on available-for-sale securities | (147 | ) | (197 | ) | (456 | ) | |||||
Pension and postretirement adjustment | 46,659 | (10,691 | ) | (21,845 | ) | ||||||
Total other comprehensive income (loss) | 45,672 | (10,873 | ) | (22,484 | ) | ||||||
Comprehensive income | $ | 394,052 | $ | 318,269 | $ | 260,274 |
Common Stock Issued | Unearned KSOP Contributions | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Losses | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||
Verisk Class A | Class B (Series 1) | Class B (Series 2) | Par Value | |||||||||||||||||||||||||||||||||
(In thousands, except for share data) | ||||||||||||||||||||||||||||||||||||
Balance, January 1, 2011 | 150,179,126 | 198,327,962 | 193,665,008 | $ | 135 | $ | (988 | ) | $ | 754,708 | $ | (1,106,321 | ) | $ | 293,827 | $ | (55,803 | ) | $ | (114,442 | ) | |||||||||||||||
Net income | — | — | — | — | — | — | — | 282,758 | — | 282,758 | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | (22,484 | ) | (22,484 | ) | ||||||||||||||||||||||||
Conversion of Class B-1 common stock (Note 15) | 198,327,962 | (198,327,962 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Conversion of Class B-2 common stock (Note 15) | 193,665,008 | — | (193,665,008 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Treasury stock acquired - Class A (11,326,624 shares) | — | — | — | — | — | — | (380,710 | ) | — | — | (380,710 | ) | ||||||||||||||||||||||||
KSOP shares earned | — | — | — | — | 297 | 12,318 | — | — | — | 12,615 | ||||||||||||||||||||||||||
Stock options exercised, including tax benefit of $57,684 (3,716,165 shares reissued from treasury stock) | 1,830,942 | — | — | 2 | — | 85,051 | 15,978 | — | — | 101,031 | ||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | 22,656 | — | — | — | 22,656 | ||||||||||||||||||||||||||
Other stock issuances | — | — | — | — | — | 75 | 11 | — | — | 86 | ||||||||||||||||||||||||||
Balance, December 31, 2011 | 544,003,038 | — | — | 137 | (691 | ) | 874,808 | (1,471,042 | ) | 576,585 | (78,287 | ) | (98,490 | ) | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 329,142 | — | 329,142 | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | (10,873 | ) | (10,873 | ) | ||||||||||||||||||||||||
Treasury stock acquired - Class A (3,491,591 shares) | — | — | — | — | — | — | (162,586 | ) | — | — | (162,586 | ) | ||||||||||||||||||||||||
KSOP shares earned | — | — | — | — | 208 | 12,903 | — | — | — | 13,111 | ||||||||||||||||||||||||||
Stock options exercised, including tax benefit of $88,185 (6,880,678 shares reissued from treasury stock) | — | — | — | — | — | 131,824 | 28,039 | — | — | 159,863 | ||||||||||||||||||||||||||
Restricted stock lapsed, including tax benefit of $202 (41,908 shares reissued from treasury stock) | — | — | — | — | — | 34 | 167 | — | — | 201 | ||||||||||||||||||||||||||
Employee stock purchase plan (6,074 shares reissued from treasury stock) | — | — | — | — | — | 268 | 26 | — | — | 294 | ||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | 24,696 | — | — | — | 24,696 | ||||||||||||||||||||||||||
Other stock issuances (4,777 shares reissued from treasury stock) | — | — | — | — | — | 213 | 20 | — | — | 233 | ||||||||||||||||||||||||||
Balance, December 31, 2012 | 544,003,038 | — | — | 137 | (483 | ) | 1,044,746 | (1,605,376 | ) | 905,727 | (89,160 | ) | 255,591 | |||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 348,380 | — | 348,380 | ||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 45,672 | 45,672 | ||||||||||||||||||||||||||
Treasury stock acquired - Class A (4,532,552 shares) | — | — | — | — | — | — | (278,938 | ) | — | — | (278,938 | ) | ||||||||||||||||||||||||
KSOP shares earned | — | — | — | — | 177 | 14,753 | — | — | — | 14,930 | ||||||||||||||||||||||||||
Stock options exercised, including tax benefit of $57,065 (4,076,750 shares reissued from treasury stock) | — | — | — | — | — | 119,236 | 18,523 | — | — | 137,759 | ||||||||||||||||||||||||||
Restricted stock lapsed, including tax benefit of $991 (150,668 shares reissued from treasury stock) | — | — | — | — | — | 333 | 658 | — | — | 991 | ||||||||||||||||||||||||||
Employee stock purchase plan (27,879 shares reissued from treasury stock) | — | — | — | — | — | 1,533 | 129 | — | — | 1,662 | ||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | 21,087 | — | — | — | 21,087 | ||||||||||||||||||||||||||
Other stock issuances (8,109 shares reissued from treasury stock) | — | — | — | — | — | 418 | 37 | — | — | 455 | ||||||||||||||||||||||||||
Balance, December 31, 2013 | 544,003,038 | — | — | $ | 137 | $ | (306 | ) | $ | 1,202,106 | $ | (1,864,967 | ) | $ | 1,254,107 | $ | (43,488 | ) | $ | 547,589 |
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 348,380 | $ | 329,142 | $ | 282,758 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of fixed assets | 70,279 | 50,624 | 43,827 | ||||||||
Amortization of intangible assets | 64,299 | 53,575 | 34,792 | ||||||||
Amortization of debt issuance costs and original issue discount | 2,713 | 2,337 | 1,655 | ||||||||
Allowance for doubtful accounts | 2,482 | 1,065 | 1,278 | ||||||||
KSOP compensation expense | 14,930 | 13,111 | 12,615 | ||||||||
Stock based compensation | 21,087 | 24,696 | 22,656 | ||||||||
Noncash charges associated with performance based appreciation awards | — | — | 585 | ||||||||
Acquisition related liabilities adjustment | — | — | (3,364 | ) | |||||||
Realized loss (gain) on securities, net | 92 | 332 | (686 | ) | |||||||
Deferred income taxes | 44,140 | 63,261 | 21,321 | ||||||||
Loss on disposal of fixed assets | 628 | 597 | 868 | ||||||||
Excess tax benefits from exercised stock options | (109,946 | ) | (60,672 | ) | (53,195 | ) | |||||
Other operating activities, net | 448 | 265 | 132 | ||||||||
Changes in assets and liabilities, net of effects from acquisitions: | |||||||||||
Accounts receivable | 2,106 | (6,425 | ) | (25,926 | ) | ||||||
Prepaid expenses and other assets | (2,386 | ) | 550 | (2,720 | ) | ||||||
Income taxes | 39,661 | 83,711 | 46,959 | ||||||||
Accounts payable and accrued liabilities | 34,022 | 11,256 | 15,468 | ||||||||
Fees received in advance | 26,970 | 20,493 | 12,373 | ||||||||
Pension and postretirement benefits | (11,392 | ) | (105,829 | ) | (13,599 | ) | |||||
Other liabilities | (41,593 | ) | (13,860 | ) | (22,076 | ) | |||||
Net cash provided by operating activities | 506,920 | 468,229 | 375,721 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash acquired of $0, $36,113 and $590, respectively | (983 | ) | (769,513 | ) | (121,721 | ) | |||||
Purchase of non-controlling interest in non-public companies | ��� | (2,250 | ) | — | |||||||
Earnout payments | — | (250 | ) | (3,500 | ) | ||||||
Escrow funding associated with acquisitions | — | (38,800 | ) | (19,560 | ) | ||||||
Proceeds from release of acquisition related escrows | 280 | 1,455 | — | ||||||||
Purchases of fixed assets | (145,976 | ) | (74,373 | ) | (59,829 | ) | |||||
Purchases of available-for-sale securities | (5,870 | ) | (1,784 | ) | (1,549 | ) | |||||
Proceeds from sales and maturities of available-for-sale securities | 7,484 | 1,932 | 1,730 | ||||||||
Other investing activities, net | (561 | ) | — | 300 | |||||||
Net cash used in investing activities | (145,626 | ) | (883,583 | ) | (204,129 | ) |
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt, net of original issue discount | — | 347,224 | 696,559 | ||||||||
Repayment of current portion of long-term debt | (180,000 | ) | — | (125,000 | ) | ||||||
Repayment of short-term debt refinanced on a long-term basis | — | (347,224 | ) | (440,000 | ) | ||||||
Proceeds from issuance of short-term debt with original maturities greater than three months | — | — | 120,000 | ||||||||
(Repayment) proceeds from short-term debt, net | (10,000 | ) | 357,224 | 10,000 | |||||||
Payment of debt issuance costs | (605 | ) | (3,905 | ) | (7,835 | ) | |||||
Repurchases of Class A common stock | (277,411 | ) | (162,275 | ) | (381,776 | ) | |||||
Excess tax benefits from exercised stock options | 109,946 | 60,672 | 53,195 | ||||||||
Proceeds from stock options exercised | 80,368 | 68,388 | 43,345 | ||||||||
Other financing activities, net | (6,770 | ) | (6,549 | ) | (3,268 | ) | |||||
Net cash (used in) provided by financing activities | (284,472 | ) | 313,555 | (34,780 | ) | ||||||
Effect of exchange rate changes | (840 | ) | 15 | (183 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 75,982 | (101,784 | ) | 136,629 | |||||||
Cash and cash equivalents, beginning of period | 89,819 | 191,603 | 54,974 | ||||||||
Cash and cash equivalents, end of period | $ | 165,801 | $ | 89,819 | $ | 191,603 | |||||
Supplemental disclosures: | |||||||||||
Taxes paid | $ | 126,846 | $ | 47,516 | $ | 117,717 | |||||
Interest paid | $ | 75,084 | $ | 60,977 | $ | 48,158 | |||||
Non-cash investing and financing activities: | |||||||||||
Repurchases of Class A common stock included in accounts payable and accrued liabilities | $ | 3,038 | $ | 1,511 | $ | 1,200 | |||||
Deferred tax (liability) asset established on the date of acquisitions | $ | (1,187 | ) | $ | (80,979 | ) | $ | 1,324 | |||
Capital lease obligations | $ | 10,512 | $ | 3,869 | $ | 7,248 | |||||
Capital expenditures included in accounts payable and accrued liabilities | $ | 5,960 | $ | 4,946 | $ | 3,437 | |||||
Increase in goodwill due to acquisition related escrow distributions | $ | — | $ | 5,934 | $ | — | |||||
Increase in goodwill due to accrual of acquisition related liabilities | $ | — | $ | — | $ | 250 |
1. | Organization: |
2. | Basis of Presentation and Summary of Significant Accounting Policies: |
65
66
67
68
70
71
72
4. | Cash and Cash Equivalents: |
5. | Accounts Receivable: |
2010 | 2009 | |||||||
Billed receivables | $ | 122,874 | $ | 88,048 | ||||
Unbilled receivables | 7,718 | 5,232 | ||||||
Total receivables | 130,592 | 93,280 | ||||||
Less allowance for doubtful accounts | (4,028 | ) | (3,844 | ) | ||||
Accounts receivable, net | $ | 126,564 | $ | 89,436 | ||||
2013 | 2012 | ||||||
Billed receivables | $ | 143,059 | $ | 165,174 | |||
Unbilled receivables | 19,903 | 18,009 | |||||
Total receivables | 162,962 | 183,183 | |||||
Less allowance for doubtful accounts | (4,415 | ) | (4,753 | ) | |||
Accounts receivable, net | $ | 158,547 | $ | 178,430 |
Gross | Gross | |||||||||||||||
Adjusted | Unrealized | Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
December 31, 2010 | ||||||||||||||||
Registered investment companies | $ | 4,398 | $ | 1,248 | $ | — | $ | 5,646 | ||||||||
Equity securities | 14 | — | (7 | ) | 7 | |||||||||||
Totalavailable-for-sale securities | $ | 4,412 | $ | 1,248 | $ | (7 | ) | $ | 5,653 | |||||||
December 31, 2009 | ||||||||||||||||
Registered investment companies | $ | 4,530 | $ | 905 | $ | — | $ | 5,435 | ||||||||
Equity securities | 14 | — | (4 | ) | 10 | |||||||||||
Totalavailable-for-sale securities | $ | 4,544 | $ | 905 | $ | (4 | ) | $ | 5,445 | |||||||
73
Adjusted Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
December 31, 2013 | |||||||||||||||
Registered investment companies | $ | 4,098 | $ | — | $ | (187 | ) | $ | 3,911 | ||||||
December 31, 2012 | |||||||||||||||
Registered investment companies | $ | 4,830 | $ | 53 | $ | — | $ | 4,883 |
2010 | 2009 | 2008 | ||||||||||
Gross realized gains/(losses) on sale of registered investment securities | $ | 95 | $ | 66 | $ | (1,306 | ) | |||||
Other-than-temporary impairment of registered investment securities | — | (386 | ) | (1,205 | ) | |||||||
Other-than-temporary impairment of noncontrolling interest in non-public companies | — | (2,012 | ) | — | ||||||||
Realized gains/(losses) on securities, net | $ | 95 | $ | (2,332 | ) | $ | (2,511 | ) | ||||
2013 | 2012 | 2011 | |||||||||
Gross realized gain on sale of registered investment securities | $ | 966 | $ | 420 | $ | 803 | |||||
Other-than-temporary impairment of registered investment securities | (84 | ) | (74 | ) | (117 | ) | |||||
Other-than-temporary impairment of non-controlling interest in non-public companies | (974 | ) | (678 | ) | — | ||||||
Realized (loss) gain on securities, net | $ | (92 | ) | $ | (332 | ) | $ | 686 |
Level 1 — Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments. | ||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | |||||||||
December 31, 2013 | |||||||||||
Cash equivalents – money-market funds | $ | 889 | $ | — | $ | 889 | |||||
Registered investment companies(1) | $ | 3,911 | $ | 3,911 | $ | — | |||||
December 31, 2012 | |||||||||||
Cash equivalents – money-market funds | $ | 760 | $ | — | $ | 760 | |||||
Registered investment companies(1) | $ | 4,883 | $ | 4,883 | $ | — |
(1) | Registered investment companies are classified as available-for-sale securities and are valued using quoted prices in active markets multiplied by the number of shares owned. |
74
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
Total | Assets (Level 1) | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||
December 31, 2010 | ||||||||||||||||
Cash equivalents – money-market funds | $ | 2,273 | $ | — | $ | 2,273 | $ | — | ||||||||
Registered investment companies(1) | $ | 5,646 | $ | 5,646 | $ | — | $ | — | ||||||||
Equity securities(1) | $ | 7 | $ | 7 | $ | — | $ | — | ||||||||
Contingent consideration under ASC 805(2) | $ | (3,337 | ) | $ | — | $ | — | $ | (3,337 | ) | ||||||
December 31, 2009 | ||||||||||||||||
Registered investment companies(1) | $ | 5,435 | $ | 5,435 | $ | — | $ | — | ||||||||
Equity securities(1) | $ | 10 | $ | 10 | $ | — | $ | — | ||||||||
Cost-based investment recorded at fair value on a non-recurring basis(3) | $ | 1,809 | $ | — | $ | — | $ | 1,809 | ||||||||
Contingent consideration under ASC 805(2) | $ | (3,344 | ) | $ | — | $ | — | $ | (3,344 | ) |
2010 | 2009 | |||||||
Beginning balance | $ | 3,344 | $ | — | ||||
Acquisitions(1) | 491 | 3,344 | ||||||
Acquisition related liabilities adjustment(1) | (544 | ) | — | |||||
Accretion on acquisition related liabilities | 46 | — | ||||||
Ending balance | $ | 3,337 | $ | 3,344 | ||||
2013 | 2012 | ||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
Financial instrument not carried at fair value: | |||||||||||||||
Long-term debt excluding capitalized leases | $ | 1,265,129 | $ | 1,335,844 | $ | 1,454,409 | $ | 1,575,950 |
8. | Fixed Assets |
Accumulated | ||||||||||||||||
Depreciation and | ||||||||||||||||
Useful Life | Cost | Amortization | Net | |||||||||||||
2010 | ||||||||||||||||
Furniture and office equipment | 3-10 years | $ | 116,228 | $ | (84,465 | ) | $ | 31,763 | ||||||||
Leasehold improvements | Lease term | 31,420 | (14,653 | ) | 16,767 | |||||||||||
Purchased software | 3 years | 52,115 | (40,216 | ) | 11,899 | |||||||||||
Software development costs | 3 years | 100,376 | (69,773 | ) | 30,603 | |||||||||||
Leased equipment | 3-4 years | 18,362 | (15,985 | ) | 2,377 | |||||||||||
Total fixed assets | $ | 318,501 | $ | (225,092 | ) | $ | 93,409 | |||||||||
2009 | ||||||||||||||||
Furniture and office equipment | 3-10 years | $ | 101,067 | $ | (72,434 | ) | $ | 28,633 | ||||||||
Leasehold improvements | Lease term | 28,065 | (12,019 | ) | 16,046 | |||||||||||
Purchased software | 3 years | 45,214 | (33,306 | ) | 11,908 | |||||||||||
Software development costs | 3 years | 86,324 | (59,018 | ) | 27,306 | |||||||||||
Leased equipment | 3-4 years | 18,370 | (13,098 | ) | 5,272 | |||||||||||
Total fixed assets | $ | 279,040 | $ | (189,875 | ) | $ | 89,165 | |||||||||
Useful Life | Cost | Accumulated Depreciation and Amortization | Net | ||||||||||
December 31, 2013 | |||||||||||||
Furniture and office equipment | 3-10 years | $ | 179,564 | $ | (105,262 | ) | $ | 74,302 | |||||
Leasehold improvements | Lease term | 38,796 | (22,022 | ) | 16,774 | ||||||||
Purchased software | 3 years | 89,064 | (65,753 | ) | 23,311 | ||||||||
Software development costs | 3 years | 201,192 | (91,656 | ) | 109,536 | ||||||||
Leased equipment | 3-4 years | 33,956 | (24,506 | ) | 9,450 | ||||||||
Total fixed assets | $ | 542,572 | $ | (309,199 | ) | $ | 233,373 | ||||||
December 31, 2012 | |||||||||||||
Furniture and office equipment | 3-10 years | $ | 137,578 | $ | (89,153 | ) | $ | 48,425 | |||||
Leasehold improvements | Lease term | 34,844 | (20,198 | ) | 14,646 | ||||||||
Purchased software | 3 years | 70,155 | (53,575 | ) | 16,580 | ||||||||
Software development costs | 3 years | 161,338 | (90,840 | ) | 70,498 | ||||||||
Leased equipment | 3-4 years | 26,150 | (22,215 | ) | 3,935 | ||||||||
Total fixed assets | $ | 430,065 | $ | (275,981 | ) | $ | 154,084 |
76
Risk | Decision | |||||||||||
Assessment | Analytics | Total | ||||||||||
Goodwill at December 31, 2008(1) | $ | 27,908 | $ | 419,464 | $ | 447,372 | ||||||
Current year acquisitions | — | 49,776 | 49,776 | |||||||||
Finalization of acquisition related liabilities | — | (4,300 | ) | (4,300 | ) | |||||||
Purchase accounting reclassifications | — | (2,600 | ) | (2,600 | ) | |||||||
Acquisition related escrow funding | — | 400 | 400 | |||||||||
Finalization of acquisition related escrows | 181 | 181 | ||||||||||
Goodwill at December 31, 2009(1) | $ | 27,908 | $ | 462,921 | $ | 490,829 | ||||||
Current year acquisitions | — | 115,414 | 115,414 | |||||||||
Accrual of acquisition related liabilities | — | 3,500 | 3,500 | |||||||||
Purchase accounting reclassifications | — | (51 | ) | (51 | ) | |||||||
Acquisition related escrow funding | — | 15,980 | 15,980 | |||||||||
Finalization of acquisition related escrows | — | 6,996 | 6,996 | |||||||||
Goodwill at December 31, 2010(1) | $ | 27,908 | $ | 604,760 | $ | 632,668 | ||||||
Risk Assessment | Decision Analytics | Total | |||||||||
Goodwill at December 31, 2011 (1) | $ | 27,908 | $ | 682,036 | $ | 709,944 | |||||
Current year acquisitions | 26,647 | 465,261 | 491,908 | ||||||||
Purchase accounting reclassifications | — | 873 | 873 | ||||||||
Acquisition related escrow funding | 1,000 | 37,800 | 38,800 | ||||||||
Finalization of acquisition related escrows | — | 5,934 | 5,934 | ||||||||
Goodwill at December 31, 2012 (1) | 55,555 | 1,191,904 | 1,247,459 | ||||||||
Current year acquisitions | — | 705 | 705 | ||||||||
Purchase accounting reclassifications | — | 2,724 | 2,724 | ||||||||
Discontinued operations (Note 10) | — | (69,207 | ) | (69,207 | ) | ||||||
Goodwill at December 31, 2013 (1) | $ | 55,555 | $ | 1,126,126 | $ | 1,181,681 |
(1) | These balances are net of accumulated impairment charges of |
Weighted | ||||||||||||||||
Average | Accumulated | |||||||||||||||
Useful Life | Cost | Amortization | Net | |||||||||||||
December 31, 2010 | ||||||||||||||||
Technology-based | 7 years | $ | 210,212 | $ | (136,616 | ) | $ | 73,596 | ||||||||
Marketing-related | 5 years | 40,882 | (28,870 | ) | 12,012 | |||||||||||
Contract-based | 6 years | 6,555 | (6,287 | ) | 268 | |||||||||||
Customer-related | 13 years | 145,567 | (31,214 | ) | 114,353 | |||||||||||
Total intangible assets | $ | 403,216 | $ | (202,987 | ) | $ | 200,229 | |||||||||
December 31, 2009 | ||||||||||||||||
Technology-based | 6 years | $ | 174,973 | $ | (117,986 | ) | $ | 56,987 | ||||||||
Marketing-related | 4 years | 35,104 | (24,690 | ) | 10,414 | |||||||||||
Contract-based | 6 years | 6,555 | (6,092 | ) | 463 | |||||||||||
Customer-related | 12 years | 67,534 | (26,872 | ) | 40,662 | |||||||||||
Total intangible assets | $ | 284,166 | $ | (175,640 | ) | $ | 108,526 | |||||||||
Weighted Average Useful Life | Cost | Accumulated Amortization | Net | ||||||||||
December 31, 2013 | |||||||||||||
Technology-based | 8 years | $ | 294,940 | $ | (180,581 | ) | $ | 114,359 | |||||
Marketing-related | 5 years | 71,047 | (44,274 | ) | 26,773 | ||||||||
Contract-based | 6 years | 6,555 | (6,555 | ) | — | ||||||||
Customer-related | 13 years | 388,505 | (82,019 | ) | 306,486 | ||||||||
Total intangible assets | $ | 761,047 | $ | (313,429 | ) | $ | 447,618 | ||||||
Weighted Average Useful Life | Cost | Accumulated Amortization | Net | ||||||||||
December 31, 2012 | |||||||||||||
Technology-based | 8 years | $ | 313,590 | $ | (177,929 | ) | $ | 135,661 | |||||
Marketing-related | 5 years | 79,101 | (41,079 | ) | 38,022 | ||||||||
Contract-based | 6 years | 6,555 | (6,555 | ) | — | ||||||||
Customer-related | 13 years | 413,043 | (65,791 | ) | 347,252 | ||||||||
Total intangible assets | $ | 812,289 | $ | (291,354 | ) | $ | 520,935 |
Year | Amount | |||
2011 | $ | 30,896 | ||
2012 | 27,551 | |||
2013 | 22,038 | |||
2014 | 14,911 | |||
2015 | 14,724 | |||
2016 and Thereafter | 90,109 | |||
Total | $ | 200,229 | ||
Year | Amount | ||
2014 | $ | 56,630 | |
2015 | 50,714 | ||
2016 | 48,883 | ||
2017 | 47,980 | ||
2018 | 47,234 | ||
2019 and thereafter | 196,177 | ||
Total | $ | 447,618 |
78
SA | CP | 3E | Total | |||||||||||||
Accounts receivable | $ | 832 | $ | 2,694 | $ | 9,691 | $ | 13,217 | ||||||||
Current assets | 55 | 517 | 1,820 | 2,392 | ||||||||||||
Fixed assets | 159 | 1,962 | 2,123 | 4,244 | ||||||||||||
Intangible assets | 4,993 | 57,194 | 55,838 | 118,025 | ||||||||||||
Goodwill | 4,006 | 51,727 | 75,661 | 131,394 | ||||||||||||
Other assets | 1,500 | 6,750 | 7,963 | 16,213 | ||||||||||||
Total assets acquired | 11,545 | 120,844 | 153,096 | 285,485 | ||||||||||||
Deferred income taxes | 810 | 20,257 | 15,470 | 36,537 | ||||||||||||
Current liabilities | 853 | 2,165 | 22,163 | 25,181 | ||||||||||||
Other liabilities | 1,996 | 8,083 | 8,130 | 18,209 | ||||||||||||
Total liabilities assumed | 3,659 | 30,505 | 45,763 | 79,927 | ||||||||||||
Net assets acquired | $ | 7,886 | $ | 90,339 | $ | 107,333 | $ | 205,558 | ||||||||
79
Weighted | ||||||||||||||||||||
Average | ||||||||||||||||||||
Useful Life | SA | CP | 3E | Total | ||||||||||||||||
Technology-based | 10 years | $ | 2,143 | $ | 19,489 | $ | 13,541 | $ | 35,173 | |||||||||||
Marketing-related | 10 years | 678 | 2,634 | 1,934 | 5,246 | |||||||||||||||
Customer-related | 15 years | 2,172 | 35,071 | 40,363 | 77,606 | |||||||||||||||
Total intangible assets | 13 years | $ | 4,993 | $ | 57,194 | $ | 55,838 | $ | 118,025 | |||||||||||
80
Weighted Average | ||||||||
Useful Life | Total | |||||||
Technology-based | 12 years | $ | 9,282 | |||||
Marketing-related | 5 years | 4,698 | ||||||
Customer-related | 8 years | 11,285 | ||||||
Total intangible assets | 9 years | $ | 25,265 | |||||
81
12. Income Taxes: |
2010 | 2009 | 2008 | ||||||||||
Current: | ||||||||||||
Federal and foreign | $ | 126,075 | $ | 98,886 | $ | 93,522 | ||||||
State and local | 24,651 | 26,603 | 12,358 | |||||||||
$ | 150,726 | $ | 125,489 | $ | 105,880 | |||||||
Deferred: | ||||||||||||
Federal and foreign | $ | 7,933 | $ | 11,603 | $ | 9,789 | ||||||
State and local | 5,439 | 899 | 5,002 | |||||||||
$ | 13,372 | $ | 12,502 | $ | 14,791 | |||||||
Provision for income taxes | $ | 164,098 | $ | 137,991 | $ | 120,671 | ||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal and foreign | $ | 135,215 | $ | 111,713 | $ | 122,872 | |||||
State and local | 18,764 | 8,442 | 20,523 | ||||||||
153,979 | 120,155 | 143,395 | |||||||||
Deferred: | |||||||||||
Federal and foreign | 38,160 | 56,036 | 14,027 | ||||||||
State and local | 4,287 | 6,172 | 8,317 | ||||||||
42,447 | 62,208 | 22,344 | |||||||||
Provision for income taxes | $ | 196,426 | $ | 182,363 | $ | 165,739 |
2010 | 2009 | 2008 | ||||||||||
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||
State and local taxes, net of federal tax benefit | 4.8 | % | 6.9 | % | 5.0 | % | ||||||
Non-deductible KSOP expenses | 1.0 | % | 9.8 | % | 2.7 | % | ||||||
Other | (0.4 | )% | 0.5 | % | 0.6 | % | ||||||
Effective tax rate for continuing operations | 40.4 | % | 52.2 | % | 43.3 | % | ||||||
2013 | 2012 | 2011 | ||||||
Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local taxes, net of federal tax benefit | 2.6 | % | 1.7 | % | 4.0 | % | ||
Non-deductible KSOP expenses | 0.9 | % | 0.9 | % | 1.0 | % | ||
Other | (2.0 | )% | (1.1 | )% | (1.3 | )% | ||
Effective tax rate for continuing operations | 36.5 | % | 36.5 | % | 38.7 | % |
2010 | 2009 | |||||||
Deferred income tax asset: | ||||||||
Employee wages, pensions and other benefits | $ | 75,064 | $ | 74,986 | ||||
Deferred revenue adjustment | 3,505 | 3,243 | ||||||
Deferred rent adjustment | 5,324 | 4,481 | ||||||
Net operating loss carryover | 2,573 | 3,085 | ||||||
State tax adjustments | 7,722 | 7,134 | ||||||
Capital and other unrealized losses | 4,437 | 4,611 | ||||||
Other | 5,047 | 4,877 | ||||||
Total | 103,672 | 102,417 | ||||||
Less valuation allowance | (1,485 | ) | (2,110 | ) | ||||
Deferred income tax asset | 102,187 | 100,307 | ||||||
Deferred income tax liability: | ||||||||
Depreciation and amortization | (73,105 | ) | (28,558 | ) | ||||
Other | (3,522 | ) | (1,087 | ) | ||||
Deferred income tax liability | (76,627 | ) | (29,645 | ) | ||||
Deferred income taxes, net | $ | 25,560 | $ | 70,662 | ||||
2013 | 2012 | ||||||
Deferred income tax asset: | |||||||
Employee wages and other benefits | $ | 26,113 | $ | 50,133 | |||
Deferred revenue | 1,835 | 2,705 | |||||
Deferred rent | 4,342 | 4,944 | |||||
Net operating loss carryover | 8,247 | 17,088 | |||||
State tax adjustments | 1,639 | 3,626 | |||||
Capital and other unrealized losses | 3,301 | 3,240 | |||||
Other | 6,720 | 6,279 | |||||
Total | 52,197 | 88,015 | |||||
Less valuation allowance | (741 | ) | (595 | ) | |||
Deferred income tax asset | 51,456 | 87,420 | |||||
Deferred income tax liability: | |||||||
Fixed assets and intangible assets | (223,639 | ) | (206,553 | ) | |||
Pension, postretirement and other | (21,344 | ) | (4,231 | ) | |||
Deferred income tax liability | (244,983 | ) | (210,784 | ) | |||
Deferred income tax liability, net | $ | (193,527 | ) | $ | (123,364 | ) |
2013 | 2012 | ||||||
Current deferred income tax asset, net | $ | 5,077 | $ | 10,397 | |||
Non-current deferred income tax liability, net | (198,604 | ) | (133,761 | ) | |||
Deferred income tax liability, net | $ | (193,527 | ) | $ | (123,364 | ) |
2010 | 2009 | |||||||
Current deferred income tax asset, net | $ | 3,681 | $ | 4,405 | ||||
Non-current deferred income tax asset, net | 21,879 | 66,257 | ||||||
Deferred income taxes, net | $ | 25,560 | $ | 70,662 | ||||
83
Years | Amount | |||
2011-2018 | $ | 44,973 | ||
2019-2023 | 436 | |||
2024-2030 | 15,396 | |||
$ | 60,805 | |||
Years | Amount | ||
2014-2021 | $ | 12,916 | |
2022-2026 | 14,345 | ||
2027-2033 | 52,478 | ||
$ | 79,739 |
84
2010 | 2009 | 2008 | ||||||||||
Unrecognized tax benefit at January 1 | $ | 27,322 | $ | 31,659 | $ | 32,030 | ||||||
Gross increase in tax positions in prior period | 492 | 1,317 | 5,958 | |||||||||
Gross decrease in tax positions in prior period | (2,547 | ) | (3,508 | ) | (3,548 | ) | ||||||
Gross increase in tax positions in current period | 1,773 | 2,052 | 4,454 | |||||||||
Gross increase in tax positions from stock acquisitions | 392 | — | — | |||||||||
Settlements | (536 | ) | (2,143 | ) | (3,240 | ) | ||||||
Lapse of statute of limitations | (3,816 | ) | (2,055 | ) | (3,995 | ) | ||||||
Unrecognized tax benefit at December 31 | $ | 23,080 | $ | 27,322 | $ | 31,659 | ||||||
2013 | 2012 | 2011 | |||||||||
Unrecognized tax benefit at January 1 | $ | 17,883 | $ | 17,877 | $ | 23,080 | |||||
Gross increase in tax positions in prior period | 541 | 911 | 3,684 | ||||||||
Gross decrease in tax positions in prior period | (4,241 | ) | (1,494 | ) | (1,753 | ) | |||||
Gross increase in tax positions in current period | — | — | 281 | ||||||||
Gross increase in tax positions from stock acquisitions | — | 3,304 | 97 | ||||||||
Gross decrease in tax positions from stock acquisitions | — | — | (20 | ) | |||||||
Settlements | (390 | ) | (1,770 | ) | (1,477 | ) | |||||
Lapse of statute of limitations | (4,269 | ) | (945 | ) | (6,015 | ) | |||||
Unrecognized tax benefit at December 31 | $ | 9,524 | $ | 17,883 | $ | 17,877 |
85
13. Composition of Certain Financial Statement Captions: |
2010 | 2009 | |||||||
Other current assets: | ||||||||
Acquisition related escrows | $ | 6,167 | $ | 20,142 | ||||
Other current assets | 899 | 1,514 | ||||||
Total other current assets | $ | 7,066 | $ | 21,656 | ||||
Accounts payable and accrued liabilities: | ||||||||
Accrued salaries, benefits and other related costs | $ | 60,013 | $ | 56,114 | ||||
Other current liabilities | 51,982 | 45,287 | ||||||
Total accounts payable and accrued liabilities | $ | 111,995 | $ | 101,401 | ||||
Other liabilities: | ||||||||
Unrecognized tax benefits | $ | 30,833 | $ | 34,706 | ||||
Deferred rent | 14,292 | 12,244 | ||||||
Other liabilities | 45,088 | 30,010 | ||||||
Total other liabilities | $ | 90,213 | $ | 76,960 | ||||
2013 | 2012 | ||||||
Other current assets: | |||||||
Acquisition related escrows | $ | 27,967 | $ | 29,277 | |||
Other current assets | 6,714 | 9,832 | |||||
Total other current assets | $ | 34,681 | $ | 39,109 | |||
Accounts payable and accrued liabilities: | |||||||
Accrued salaries, benefits and other related costs | $ | 79,372 | $ | 78,979 | |||
Escrow liabilities | 27,918 | 28,954 | |||||
Other current liabilities | 80,974 | 79,715 | |||||
Total accounts payable and accrued liabilities | $ | 188,264 | $ | 187,648 | |||
Other liabilities: | |||||||
Unrecognized tax benefits, including interest and penalty | $ | 12,143 | $ | 21,611 | |||
Deferred rent | 12,219 | 12,919 | |||||
Other liabilities | 11,681 | 43,660 | |||||
Total other liabilities | $ | 36,043 | $ | 78,190 |
81 14. Debt: |
Issuance Date | Maturity Date | 2013 | 2012 | ||||||||
Short-term debt and current portion of long-term debt: | |||||||||||
Syndicated revolving credit facility | Various | Various | $ | — | $ | 10,000 | |||||
Prudential shelf notes: | |||||||||||
6.13% Series G shelf notes | 8/8/2006 | 8/8/2013 | — | 75,000 | |||||||
5.84% Series H shelf notes | 10/26/2007 | 10/26/2013 | — | 17,500 | |||||||
6.28% Series I shelf notes | 4/29/2008 | 4/29/2013 | — | 15,000 | |||||||
Principal shelf notes: | |||||||||||
6.16% Series B shelf notes | 8/8/2006 | 8/8/2013 | — | 25,000 | |||||||
New York Life shelf notes: | |||||||||||
5.87% Series A shelf notes | 10/26/2007 | 10/26/2013 | — | 17,500 | |||||||
Aviva Investors shelf notes: | |||||||||||
6.46% Series A shelf notes | 4/27/2009 | 4/27/2013 | — | 30,000 | |||||||
Capital lease obligations | Various | Various | 4,448 | 5,263 | |||||||
Short-term debt and current portion of long-term debt | 4,448 | 195,263 | |||||||||
Long-term debt: | |||||||||||
Senior notes: | |||||||||||
4.125% senior notes, less unamortized discount of $2,415 and $2,692 as of December 31, 2013 and 2012, respectively | 9/12/2012 | 9/12/2022 | 347,585 | 347,308 | |||||||
4.875% senior notes, less unamortized discount of $1,699, and $2,037 as of December 31, 2013 and 2012, respectively | 12/8/2011 | 1/15/2019 | 248,301 | 247,963 | |||||||
5.80% senior notes, less unamortized discount of $757 and $862 as of December 31, 2013 and 2012, respectively | 4/6/2011 | 5/1/2021 | 449,243 | 449,138 | |||||||
Prudential shelf notes: | |||||||||||
5.84% Series H shelf notes | 10/26/2007 | 10/26/2015 | 17,500 | 17,500 | |||||||
6.28% Series I shelf notes | 4/29/2008 | 4/29/2015 | 85,000 | 85,000 | |||||||
6.85% Series J shelf notes | 6/15/2009 | 6/15/2016 | 50,000 | 50,000 | |||||||
New York Life shelf notes: | |||||||||||
5.87% Series A shelf notes | 10/26/2007 | 10/26/2015 | 17,500 | 17,500 | |||||||
6.35% Series B shelf notes | 4/29/2008 | 4/29/2015 | 50,000 | 50,000 | |||||||
Capital lease obligations | Various | Various | 6,310 | 1,753 | |||||||
Long-term debt | 1,271,439 | 1,266,162 | |||||||||
Total debt | $ | 1,275,887 | $ | 1,461,425 |
Issuance | Maturity | December 31, | December 31, | |||||||||||||
Date | Date | 2010 | 2009 | |||||||||||||
Short-term debt and current portion of long-term debt: | ||||||||||||||||
Syndicated revolving credit facility | 12/29/2010 | 1/31/2011 | $ | 40,000 | $ | — | ||||||||||
Syndicated revolving credit facility | 12/29/2010 | 1/31/2011 | 15,000 | — | ||||||||||||
Syndicated revolving credit facility | 12/13/2010 | 2/14/2011 | 40,000 | — | ||||||||||||
Syndicated revolving credit facility | 12/13/2010 | 3/14/2011 | 30,000 | — | ||||||||||||
Syndicated revolving credit facility | 12/15/2010 | 3/15/2011 | 130,000 | — | ||||||||||||
Syndicated revolving credit facility | 12/13/2010 | 6/13/2011 | 55,000 | — | ||||||||||||
Syndicated revolving credit facility | 12/16/2009 | 1/19/2010 | — | 10,000 | ||||||||||||
Syndicated revolving credit facility | 12/23/2009 | 1/25/2010 | — | 50,000 | ||||||||||||
Prudential senior notes: | ||||||||||||||||
4.60% Series E senior notes | 6/14/2005 | 6/13/2011 | 50,000 | — | ||||||||||||
6.00% Series F senior notes | 8/8/2006 | 8/8/2011 | 25,000 | — | ||||||||||||
Principal senior notes: | ||||||||||||||||
6.03% Series A senior notes | 8/8/2006 | 8/8/2011 | 50,000 | — | ||||||||||||
Capital lease obligations | Various | Various | 2,429 | 5,488 | ||||||||||||
Other | Various | Various | 288 | 1,172 | ||||||||||||
Short-term debt and current portion of long-term debt | $ | 437,717 | $ | 66,660 |
86
Issuance | Maturity | December 31, | December 31, | |||||||||||||
Date | Date | 2010 | 2009 | |||||||||||||
Long-term debt: | ||||||||||||||||
Prudential senior notes: | ||||||||||||||||
4.60% Series E senior notes | 6/14/2005 | 6/13/2011 | $ | — | $ | 50,000 | ||||||||||
6.00% Series F senior notes | 8/8/2006 | 8/8/2011 | — | 25,000 | ||||||||||||
6.13% Series G senior notes | 8/8/2006 | 8/8/2013 | 75,000 | 75,000 | ||||||||||||
5.84% Series H senior notes | 10/26/2007 | 10/26/2013 | 17,500 | 17,500 | ||||||||||||
5.84% Series H senior notes | 10/26/2007 | 10/26/2015 | 17,500 | 17,500 | ||||||||||||
6.28% Series I senior notes | 4/29/2008 | 4/29/2013 | 15,000 | 15,000 | ||||||||||||
6.28% Series I senior notes | 4/29/2008 | 4/29/2015 | 85,000 | 85,000 | ||||||||||||
6.85% Series J senior notes | 6/15/2009 | 6/15/2016 | 50,000 | 50,000 | ||||||||||||
Principal senior notes: | ||||||||||||||||
6.03% Series A senior notes | 8/8/2006 | 8/8/2011 | — | 50,000 | ||||||||||||
6.16% Series B senior notes | 8/8/2006 | 8/8/2013 | 25,000 | 25,000 | ||||||||||||
New York Life senior notes: | ||||||||||||||||
5.87% Series A senior notes | 10/26/2007 | 10/26/2013 | 17,500 | 17,500 | ||||||||||||
5.87% Series A senior notes | 10/26/2007 | 10/26/2015 | 17,500 | 17,500 | ||||||||||||
6.35% Series B senior notes | 4/29/2008 | 4/29/2015 | 50,000 | 50,000 | ||||||||||||
Aviva Investors North America: | ||||||||||||||||
6.46% Series A senior notes | 4/27/2009 | 4/27/2013 | 30,000 | 30,000 | ||||||||||||
Other obligations: | ||||||||||||||||
Capital lease obligations | Various | Various | 1,628 | 2,094 | ||||||||||||
Other | Various | Various | 198 | 415 | ||||||||||||
Long-term debt | $ | 401,826 | $ | 527,509 | ||||||||||||
Total debt | $ | 839,543 | $ | 594,169 | ||||||||||||
87
88
Year | Amount | |||
2011 | $ | 437,717 | ||
2012 | $ | 1,211 | ||
2013 | $ | 180,511 | ||
2014 | $ | 103 | ||
2015 | $ | 170,001 | ||
2016 and thereafter | $ | 50,000 |
Year | Amount | ||
2014 | $ | 4,448 | |
2015 | 173,896 | ||
2016 | 51,996 | ||
2017 | 238 | ||
2018 | 53 | ||
2019 and thereafter | 1,050,127 | ||
$ | 1,280,758 |
89
90
Notes | Total | |||||||||||||||||||||||
ISO Class A Common Stock | Receivable | Redeemable | ||||||||||||||||||||||
Shares | Redemption | Unearned | Additional | from | Common | |||||||||||||||||||
Issued | Value | KSOP | Paid-in-Capital | Stockholders’ | Stock | |||||||||||||||||||
Balance, January 1, 2008 | 58,153,300 | $ | 1,217,942 | $ | (4,129 | ) | $ | — | $ | (42,625 | ) | $ | 1,171,188 | |||||||||||
Redemption of ISO Class A common stock | (25,121,750 | ) | (434,044 | ) | — | — | 62,773 | (371,271 | ) | |||||||||||||||
KSOP shares earned | — | — | 756 | 21,518 | — | 22,274 | ||||||||||||||||||
Stock based compensation | — | — | — | 9,881 | — | 9,881 | ||||||||||||||||||
Stock options exercised (including tax benefit of $26,099) | 4,262,800 | 25,324 | — | 26,099 | (20,148 | ) | 31,275 | |||||||||||||||||
Other stock issuances | 12,600 | 225 | — | — | — | 225 | ||||||||||||||||||
Decrease in redemption value of ISO Class A common stock | — | (56,535 | ) | — | (57,498 | ) | — | (114,033 | ) | |||||||||||||||
Balance, December 31, 2008 | 37,306,950 | $ | 752,912 | $ | (3,373 | ) | $ | — | $ | — | $ | 749,539 | ||||||||||||
Redemption of ISO Class A common stock | (3,032,850 | ) | (49,066 | ) | — | — | — | (49,066 | ) | |||||||||||||||
KSOP shares earned | — | — | 2,068 | 73,272 | — | 75,340 | ||||||||||||||||||
Stock based compensation | — | — | — | 8,526 | — | 8,526 | ||||||||||||||||||
Stock options exercised (including tax benefit of $1,723) | 485,550 | 4,939 | — | 1,723 | — | 6,662 | ||||||||||||||||||
Other stock transactions | 9,100 | 162 | — | — | — | 162 | ||||||||||||||||||
Increase in redemption value of ISO Class A common stock | — | 355,949 | — | (83,521 | ) | — | 272,428 | |||||||||||||||||
Conversion of redeemable common stock upon corporate reorganization | (34,768,750 | ) | (1,064,896 | ) | 1,305 | — | — | (1,063,591 | ) | |||||||||||||||
Balance, December 31, 2009 | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
91
92
For the Year Ended | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
Numerator used in basic and diluted EPS: | ||||||||||||
Net income | $ | 242,552 | $ | 126,614 | $ | 158,228 | ||||||
Denominator: | ||||||||||||
Weighted average number of common shares used in basic EPS | 177,733,503 | 174,767,795 | 182,885,700 | |||||||||
Effect of dilutive shares: | ||||||||||||
Potential Class A redeemable common stock issuable upon the exercise of stock options | 8,661,459 | 7,397,866 | 7,346,000 | |||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 186,394,962 | 182,165,661 | 190,231,700 | |||||||||
Basic EPS of Class A and Class B | $ | 1.36 | $ | 0.72 | $ | 0.87 | ||||||
Diluted EPS of Class A and Class B | $ | 1.30 | $ | 0.70 | $ | 0.83 | ||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except for share and per share data) | |||||||||||
Numerator used in basic and diluted EPS: | |||||||||||
Net income | $ | 348,380 | $ | 329,142 | $ | 282,758 | |||||
Denominator: | |||||||||||
Weighted average number of common shares used in basic EPS | 168,031,412 | 165,890,258 | 166,015,238 | ||||||||
Effect of dilutive shares: | |||||||||||
Potential Class A common stock issuable from stock options and stock awards | 4,244,948 | 5,819,260 | 7,309,872 | ||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 172,276,360 | 171,709,518 | 173,325,110 | ||||||||
Basic net income per share: | |||||||||||
Income from continuing operations | $ | 2.04 | $ | 1.91 | $ | 1.58 | |||||
Income from discontinued operations | 0.03 | 0.07 | 0.12 | ||||||||
Basic net income per share | $ | 2.07 | $ | 1.98 | $ | 1.70 | |||||
Diluted net income per share: | |||||||||||
Income from continuing operations | $ | 1.99 | $ | 1.85 | $ | 1.51 | |||||
Income from discontinued operations | 0.03 | 0.07 | 0.12 | ||||||||
Diluted net income per share | $ | 2.02 | $ | 1.92 | $ | 1.63 |
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
Unrealized gains on investments | $ | 725 | $ | 526 | ||||
Unrealized foreign currency losses | (792 | ) | (683 | ) | ||||
Pension and postretirement unfunded liability adjustment | (55,736 | ) | (53,471 | ) | ||||
Accumulated other comprehensive loss | $ | (55,803 | ) | $ | (53,628 | ) | ||
2013 | 2012 | ||||||
Unrealized foreign currency losses | $ | (1,800 | ) | $ | (960 | ) | |
Unrealized (losses) gains on available-for-sale securities, net of tax | (75 | ) | 72 | ||||
Pension and postretirement adjustment, net of tax | (41,613 | ) | (88,272 | ) | |||
Accumulated other comprehensive losses | $ | (43,488 | ) | $ | (89,160 | ) |
Tax Benefit/ | ||||||||||||
For the Year Ended December 31, 2010 | Before Tax | (Expense) | After Tax | |||||||||
Unrealized holding gains on investments arising during the year | $ | 340 | $ | (141 | ) | $ | 199 | |||||
Unrealized foreign currency loss | (109 | ) | — | (109 | ) | |||||||
Pension and postretirement unfunded liability adjustment | (4,135 | ) | 1,870 | (2,265 | ) | |||||||
Total other comprehensive loss | $ | (3,904 | ) | $ | 1,729 | $ | (2,175 | ) | ||||
For the Year Ended December 31, 2009 | ||||||||||||
Unrealized holding gains on investments arising during the year | $ | 563 | $ | (231 | ) | $ | 332 | |||||
Reclassification adjustment for amounts included in net income | 386 | (161 | ) | 225 | ||||||||
Unrealized foreign currency gain | 90 | — | 90 | |||||||||
Pension and postretirement unfunded liability adjustment | 43,050 | (14,891 | ) | 28,159 | ||||||||
Total other comprehensive gain | $ | 44,089 | $ | (15,283 | ) | $ | 28,806 | |||||
For the Year Ended December 31, 2008 | ||||||||||||
Unrealized holding losses on investments arising during the year | $ | (1,687 | ) | $ | 666 | $ | (1,021 | ) | ||||
Reclassification adjustment for amounts included in net income | 2,325 | (923 | ) | 1,402 | ||||||||
Unrealized foreign currency loss | (927 | ) | — | (927 | ) | |||||||
Pension and postretirement unfunded liability adjustment | (122,714 | ) | 49,525 | (73,189 | ) | |||||||
Total other comprehensive loss | $ | (123,003 | ) | $ | 49,268 | $ | (73,735 | ) | ||||
Before Tax | Tax Benefit (Expense) | After Tax | |||||||||
December 31, 2013 | |||||||||||
Unrealized foreign currency loss | $ | (840 | ) | $ | — | $ | (840 | ) | |||
Unrealized loss on available-for-sale securities before reclassifications | (1,122 | ) | 433 | (689 | ) | ||||||
Amount reclassified from accumulated other comprehensive loss (1) | 882 | (340 | ) | 542 | |||||||
Unrealized loss on available-for-sale securities | (240 | ) | 93 | (147 | ) | ||||||
Pension and postretirement adjustment before reclassifications | 80,773 | (30,611 | ) | 50,162 | |||||||
Amortization of net actuarial loss and prior service benefit reclassified from accumulated other comprehensive losses (2) | (5,699 | ) | 2,196 | (3,503 | ) | ||||||
Pension and postretirement adjustment | 75,074 | (28,415 | ) | 46,659 | |||||||
Total other comprehensive income | $ | 73,994 | $ | (28,322 | ) | $ | 45,672 | ||||
December 31, 2012 | |||||||||||
Unrealized foreign currency gain | $ | 15 | $ | — | $ | 15 | |||||
Unrealized loss on available-for-sale securities before reclassifications | (727 | ) | 316 | (411 | ) | ||||||
Amount reclassified from accumulated other comprehensive loss (1) | 346 | (132 | ) | 214 | |||||||
Unrealized loss on available-for-sale securities | (381 | ) | 184 | (197 | ) | ||||||
Pension and postretirement adjustment before reclassifications | (13,082 | ) | 4,865 | (8,217 | ) | ||||||
Amortization of net actuarial loss and prior service benefit reclassified from accumulated other comprehensive losses (2) | (4,001 | ) | 1,527 | (2,474 | ) | ||||||
Pension and postretirement adjustment | (17,083 | ) | 6,392 | (10,691 | ) | ||||||
Total other comprehensive loss | $ | (17,449 | ) | $ | 6,576 | $ | (10,873 | ) | |||
December 31, 2011 | |||||||||||
Unrealized foreign currency loss | $ | (183 | ) | $ | — | $ | (183 | ) | |||
Unrealized loss on available-for-sale securities before reclassifications | (1,493 | ) | 614 | (879 | ) | ||||||
Amount reclassified from accumulated other comprehensive loss (1) | 686 | (263 | ) | 423 | |||||||
Unrealized loss on available-for-sale securities | (807 | ) | 351 | (456 | ) | ||||||
Pension and postretirement adjustment before reclassifications | (25,346 | ) | 6,631 | (18,715 | ) | ||||||
Amortization of net actuarial loss and prior service benefit reclassified from accumulated other comprehensive losses (2) | (5,071 | ) | 1,941 | (3,130 | ) | ||||||
Pension and postretirement adjustment | (30,417 | ) | 8,572 | (21,845 | ) | ||||||
Total other comprehensive loss | $ | (31,407 | ) | $ | 8,923 | $ | (22,484 | ) |
94
95
December 31, | December 31, | December 31, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
Option pricing model | Black-Scholes | Black-Scholes | Black-Scholes | |||||||||
Expected volatility | 31.08 | % | 31.81 | % | 28.02 | % | ||||||
Risk-free interest rate | 2.39 | % | 2.16 | % | 2.58 | % | ||||||
Expected term in years | 4.8 | 5.5 | 5.0 | |||||||||
Dividend yield | 0.00 | % | 0.51 | % | 1.81 | % | ||||||
Weighted average grant date fair value per stock option | $ | 8.73 | $ | 5.96 | $ | 4.13 |
2013 | 2012 | 2011 | |||||||||
Option pricing model | Black-Scholes | Black-Scholes | Black-Scholes | ||||||||
Expected volatility | 29.27 | % | 32.22 | % | 30.44 | % | |||||
Risk-free interest rate | 0.70 | % | 0.90 | % | 2.21 | % | |||||
Expected term in years | 4.5 | 4.7 | 5.1 | ||||||||
Dividend yield | — | % | — | % | — | % | |||||
Weighted average grant date fair value per stock option | $ | 15.58 | $ | 13.59 | $ | 10.42 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||||
Average | Stock | Weighted | Average | Stock | Average | |||||||||||||||||||||
Range of | Remaining | Options | Average | Remaining | Options | Exercise | ||||||||||||||||||||
Exercise Prices | Contractual Life | Outstanding | Exercise Price | Contractual Life | Exercisable | Price | ||||||||||||||||||||
$ | 1.84 to $2.20 | 0.9 | 88,750 | $ | 2.16 | 0.9 | 88,750 | $ | 2.16 | |||||||||||||||||
$ | 2.21 to $2.96 | 2.1 | 1,694,100 | $ | 2.83 | 2.1 | 1,694,100 | $ | 2.83 | |||||||||||||||||
$ | 2.97 to $4.62 | 2.4 | 3,810,100 | $ | 3.66 | 2.4 | 3,810,100 | $ | 3.66 | |||||||||||||||||
$ | 4.63 to $8.90 | 4.3 | 3,985,804 | $ | 8.29 | 4.3 | 3,985,804 | $ | 8.29 | |||||||||||||||||
$ | 8.91 to $13.62 | 5.3 | 1,320,600 | $ | 11.83 | 5.3 | 1,320,600 | $ | 11.83 | |||||||||||||||||
$ | 13.63 to $15.10 | 6.2 | 1,493,475 | $ | 15.10 | 6.2 | 1,005,100 | $ | 15.10 | |||||||||||||||||
$ | 15.11 to $17.78 | 7.8 | 5,522,370 | $ | 16.64 | 7.6 | 1,909,305 | $ | 16.91 | |||||||||||||||||
$ | 17.79 to $22.00 | 8.8 | 3,015,612 | $ | 21.69 | 8.6 | 974,782 | $ | 21.11 | |||||||||||||||||
$ | 22.01 to $30.25 | 9.5 | 2,127,046 | $ | 28.36 | 9.5 | 31,906 | $ | 30.20 | |||||||||||||||||
23,057,857 | 14,820,447 | |||||||||||||||||||||||||
96
Weighted | Aggregate | |||||||||||
Number | Average | Intrinsic | ||||||||||
of Options | Exercise Price | Value | ||||||||||
Outstanding at January 1, 2008 | 24,837,650 | $ | 6.41 | $ | 269,012 | |||||||
Granted | 3,147,350 | $ | 17.30 | |||||||||
Exercised | (4,262,800 | ) | $ | 5.94 | $ | 48,399 | ||||||
Cancelled or expired | (564,950 | ) | $ | 14.08 | ||||||||
Outstanding at December 31, 2008 | 23,157,250 | $ | 7.79 | $ | 179,981 | |||||||
Granted | 6,451,521 | $ | 18.80 | |||||||||
Exercised | (2,583,250 | ) | $ | 3.89 | $ | 44,569 | ||||||
Cancelled or expired | (264,300 | ) | $ | 15.79 | ||||||||
Outstanding at December 31, 2009 | 26,761,221 | $ | 10.74 | $ | 522,914 | |||||||
Granted | 2,186,416 | $ | 28.36 | |||||||||
Exercised | (5,579,135 | ) | $ | 6.36 | $ | 154,653 | ||||||
Cancelled or expired | (310,645 | ) | $ | 19.77 | ||||||||
Outstanding at December 31, 2010 | 23,057,857 | $ | 13.35 | $ | 478,014 | |||||||
Options exercisable at December 31, 2010 | 14,820,447 | $ | 9.22 | $ | 368,466 | |||||||
Options exercisable at December 31, 2009 | 16,890,225 | $ | 6.64 | $ | 399,281 | |||||||
Number of Options | Weighted Average Exercise Price Per Share | Aggregate Intrinsic Value | |||||||||
(In thousands, except for share and per share data) | |||||||||||
Outstanding at January 1, 2011 | 23,057,857 | $ | 13.35 | $ | 478,014 | ||||||
Granted | 1,574,705 | $ | 33.46 | ||||||||
Exercised | (5,543,866 | ) | $ | 7.82 | $ | 149,613 | |||||
Cancelled or expired | (192,291 | ) | $ | 22.58 | |||||||
Outstanding at December 31, 2011 | 18,896,405 | $ | 16.55 | $ | 445,510 | ||||||
Granted | 973,124 | $ | 47.38 | ||||||||
Exercised | (6,880,678 | ) | $ | 9.09 | $ | 257,391 | |||||
Cancelled or expired | (415,553 | ) | $ | 19.30 | |||||||
Outstanding at December 31, 2012 | 12,573,298 | $ | 22.21 | $ | 361,653 | ||||||
Granted | 888,038 | $ | 61.10 | ||||||||
Exercised | (4,076,750 | ) | $ | 19.79 | $ | 168,056 | |||||
Cancelled or expired | (149,266 | ) | $ | 43.14 | |||||||
Outstanding at December 31, 2013 | 9,235,320 | $ | 26.67 | $ | 360,611 | ||||||
Options exercisable at December 31, 2013 | 7,169,089 | $ | 20.98 | $ | 320,766 | ||||||
Options exercisable at December 31, 2012 | 8,796,996 | $ | 18.37 | $ | 286,806 |
Number of Options | Weighted Average Grant-Date Fair Value Per Share | ||||||
Nonvested balance at January 1, 2011 | 8,237,410 | $ | 6.27 | ||||
Granted | 1,574,705 | $ | 10.42 | ||||
Vested | (2,876,730 | ) | $ | 5.56 | |||
Cancelled or expired | (192,291 | ) | $ | 6.82 | |||
Nonvested balance at December 31, 2011 | 6,743,094 | $ | 7.52 | ||||
Granted | 973,124 | $ | 13.59 | ||||
Vested | (3,524,363 | ) | $ | 7.38 | |||
Cancelled or expired | (415,553 | ) | $ | 5.62 | |||
Nonvested balance at December 31, 2012 | 3,776,302 | $ | 9.43 | ||||
Granted | 888,038 | $ | 15.58 | ||||
Vested | (2,448,843 | ) | $ | 8.81 | |||
Cancelled or expired | (149,266 | ) | $ | 12.18 | |||
Nonvested balance at December 31, 2013 | 2,066,231 | $ | 12.61 |
Weighted | ||||||||
Average | ||||||||
Number | Grant-Date | |||||||
of Options | Fair Value | |||||||
Nonvested balance at January 1, 2008 | 8,362,500 | $ | 2.86 | |||||
Granted | 3,147,350 | $ | 4.13 | |||||
Vested | (4,237,350 | ) | $ | 2.48 | ||||
Cancelled or expired | (564,950 | ) | $ | 3.70 | ||||
Nonvested balance at December 31, 2008 | 6,707,550 | $ | 4.41 | |||||
Granted | 6,451,521 | $ | 5.96 | |||||
Vested | (3,023,775 | ) | $ | 3.28 | ||||
Cancelled or expired | (264,300 | ) | $ | 4.06 | ||||
Nonvested balance at December 31, 2009 | 9,870,996 | $ | 5.27 | |||||
Granted | 2,186,416 | $ | 8.73 | |||||
Vested | (3,509,357 | ) | $ | 5.04 | ||||
Cancelled or expired | (310,645 | ) | $ | 5.84 | ||||
Nonvested balance at December 31, 2010 | 8,237,410 | $ | 6.27 | |||||
97
Number of Shares | Weighted Average Grant Date Fair Value Per Share | ||||||
Outstanding at December 31, 2010 | — | $ | — | ||||
Granted | 150,187 | $ | 33.27 | ||||
Vested | (1,523 | ) | $ | 33.30 | |||
Forfeited | (3,030 | ) | $ | 33.30 | |||
Outstanding at December 31, 2011 | 145,634 | $ | 33.32 | ||||
Granted | 244,397 | $ | 47.10 | ||||
Vested | (41,120 | ) | $ | 34.51 | |||
Forfeited | (17,898 | ) | $ | 43.27 | |||
Outstanding at December 31, 2012 | 331,013 | $ | 42.78 | ||||
Granted | 241,674 | $ | 61.12 | ||||
Vested | (150,668 | ) | $ | 37.82 | |||
Forfeited | (25,270 | ) | $ | 53.00 | |||
Outstanding at December 31, 2013 | 396,749 | $ | 52.82 |
17. | Pension and Postretirement Benefits: |
Pension Plan and SERP | Postretirement Plan | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at January 1 | $ | 460,482 | $ | 434,689 | $ | 22,434 | $ | 21,935 | |||||||
Service cost | — | 282 | — | — | |||||||||||
Interest cost | 17,860 | 19,888 | 608 | 779 | |||||||||||
Actuarial (gain) loss | (31,962 | ) | 39,466 | (426 | ) | 2,328 | |||||||||
Curtailments | — | (8,255 | ) | — | — | ||||||||||
Plan participants’ contributions | — | — | 1,748 | 2,505 | |||||||||||
Benefits paid | (25,716 | ) | (25,588 | ) | (4,225 | ) | (5,411 | ) | |||||||
Federal subsidy on benefits paid | — | — | 260 | 298 | |||||||||||
Benefit obligation at December 31 | $ | 420,664 | $ | 460,482 | $ | 20,399 | $ | 22,434 | |||||||
Accumulated benefit obligation at December 31 | $ | 420,664 | $ | 460,482 | |||||||||||
Weighted-average assumptions as of December 31 used to determine benefit obligation: | |||||||||||||||
Discount rate | 4.74 | % | 3.98 | % | 3.45 | % | 2.75 | % | |||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at January 1 | $ | 421,134 | $ | 324,864 | $ | 18,766 | $ | — | |||||||
Actual return on plan assets, net of expenses | 68,583 | 42,182 | (198 | ) | 206 | ||||||||||
Employer contributions | 3,911 | 79,676 | 250 | 21,168 | |||||||||||
Plan participants’ contributions | — | — | 1,748 | 2,505 | |||||||||||
Benefits paid | (25,716 | ) | (25,588 | ) | (4,225 | ) | (5,411 | ) | |||||||
Subsidies received | — | — | 260 | 298 | |||||||||||
Fair value of plan assets at December 31 | $ | 467,912 | $ | 421,134 | $ | 16,601 | $ | 18,766 | |||||||
(Funded) unfunded status at December 31 | $ | (47,248 | ) | $ | 39,348 | $ | 3,798 | $ | 3,668 |
Pension Plan and SERP | Postretirement Plan | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Prior service benefit | $ | — | $ | — | $ | (1,147 | ) | $ | (1,293 | ) | |||||
Actuarial losses | 62,226 | 137,369 | 9,208 | 9,285 | |||||||||||
Accumulated other comprehensive losses, pretax | $ | 62,226 | $ | 137,369 | $ | 8,061 | $ | 7,992 |
Pension Plan and SERP | Postretirement Plan | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Service cost | $ | — | $ | 282 | $ | 6,361 | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 17,860 | 19,888 | 21,707 | 608 | 779 | 878 | |||||||||||||||||
Curtailment gain | — | (780 | ) | — | — | — | — | ||||||||||||||||
Expected return on plan assets | (30,480 | ) | (28,899 | ) | (25,797 | ) | (919 | ) | (255 | ) | — | ||||||||||||
Amortization of prior service benefit | — | (133 | ) | (801 | ) | (146 | ) | (146 | ) | (146 | ) | ||||||||||||
Amortization of net actuarial loss | 5,078 | 3,646 | 5,598 | 767 | 634 | 420 | |||||||||||||||||
Net periodic benefit (credit) cost | (7,542 | ) | (5,996 | ) | 7,068 | 310 | 1,012 | 1,152 | |||||||||||||||
Amortization of actuarial loss reclassified from accumulated other comprehensive losses | (1,320 | ) | (279 | ) | (656 | ) | — | — | — | ||||||||||||||
Amortization of prior service benefit reclassified from accumulated other comprehensive losses | — | 133 | 801 | 146 | 146 | 146 | |||||||||||||||||
Prior service benefit | — | (7,475 | ) | — | — | — | — | ||||||||||||||||
Net loss recognized reclassified from accumulated other comprehensive losses | (3,758 | ) | (3,368 | ) | (4,942 | ) | — | — | — | ||||||||||||||
Actuarial (loss) gain | (70,065 | ) | 26,184 | 38,220 | (77 | ) | 1,742 | (3,152 | ) | ||||||||||||||
Total recognized in other comprehensive (income) loss | (75,143 | ) | 15,195 | 33,423 | 69 | 1,888 | (3,006 | ) | |||||||||||||||
Total recognized in net periodic benefit (credit) cost and other comprehensive (income) loss | $ | (82,685 | ) | $ | 9,199 | $ | 40,491 | $ | 379 | $ | 2,900 | $ | (1,854 | ) |
Pension Plan And SERP | Postretirement Plan | Total | |||||||||
Amortization of prior service benefit | $ | — | $ | (146 | ) | $ | (146 | ) | |||
Amortization of net actuarial loss | 605 | 673 | 1,278 | ||||||||
Total | $ | 605 | $ | 527 | $ | 1,132 |
Pension Plan and SERP | Postretirement Plan | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Weighted-average assumptions as of January 1, used to determine net benefit cost: | |||||||||||||||||||||||
Discount rate | 3.98 | % | 4.98 | % | 5.49 | % | 2.75 | % | 3.50 | % | 4.00 | % | |||||||||||
Expected return on plan assets | 7.50 | % | 7.50 | % | 8.25 | % | 5.00 | % | N/A | N/A | |||||||||||||
Rate of compensation increase | N/A | 4.00 | % | 4.00 | % | N/A | N/A | N/A | |||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||
Pension assets, noncurrent | $ | (60,955 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Pension, SERP and postretirement benefits, current | 700 | 693 | 664 | 1,737 | 1,041 | 3,348 | |||||||||||||||||
Pension, SERP and postretirement benefits, noncurrent | 13,007 | 38,655 | 109,161 | 2,061 | 2,627 | 18,587 | |||||||||||||||||
Total Pension, SERP and Postretirement benefits | $ | (47,248 | ) | $ | 39,348 | $ | 109,825 | $ | 3,798 | $ | 3,668 | $ | 21,935 |
Pension Plan and SERP | Postretirement Plan | ||||||||||||||
Gross Benefit Amount | Gross Benefit Amount | Medicare Subsidy Payments | Net Benefit Amount | ||||||||||||
2014 | $ | 28,391 | $ | 3,408 | $ | (455 | ) | $ | 2,953 | ||||||
2015 | $ | 28,743 | $ | 3,156 | $ | (448 | ) | $ | 2,708 | ||||||
2016 | $ | 29,460 | $ | 2,886 | $ | (435 | ) | $ | 2,451 | ||||||
2017 | $ | 29,958 | $ | 2,611 | $ | (421 | ) | $ | 2,190 | ||||||
2018 | $ | 29,692 | $ | 2,334 | $ | (405 | ) | $ | 1,929 | ||||||
2019-2023 | $ | 148,179 | $ | 7,970 | $ | (944 | ) | $ | 7,026 |
1% Increase | 1% Decrease | ||||||
Effect of total service and interest cost components of net periodic postretirement healthcare benefit cost | $ | 15 | $ | (14 | ) | ||
Effect on the healthcare component of the accumulated postretirement benefit obligation | $ | 549 | $ | (511 | ) |
98
Asset Category | Target Allocation | Percentage of Plan Assets | ||||||
2013 | 2012 | |||||||
Equity securities | 60.00 | % | 66.80 | % | 57.90 | % | ||
Debt securities | 40.00 | % | 33.20 | % | 41.00 | % | ||
Other | — | % | — | % | 1.10 | % | ||
Total | 100.00 | % | 100.00 | % | 100.00 | % |
Target | Percentage of Plan Assets | |||||||||||
Asset Category | Allocation | 2010 | 2009 | |||||||||
Equity securities | 60 | % | 56 | % | 58 | % | ||||||
Debt securities | 40 | % | 42 | % | 39 | % | ||||||
Other | 0 | % | 2 | % | 3 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
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Pension Plan | Postretirement Plan | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 378,189 | $ | 366,921 | $ | 29,911 | $ | 28,640 | ||||||||
Service cost | 6,412 | 7,375 | — | — | ||||||||||||
Interest cost | 21,364 | 21,196 | 1,211 | 1,728 | ||||||||||||
Actuarial loss | 26,039 | 7,407 | 689 | 3,534 | ||||||||||||
Plan participants’ contributions | — | — | 2,676 | 2,732 | ||||||||||||
Benefits paid | (22,534 | ) | (24,710 | ) | (7,685 | ) | (7,532 | ) | ||||||||
Federal subsidy on benefits paid | — | — | 425 | 809 | ||||||||||||
Benefit obligation at end of year | $ | 409,470 | $ | 378,189 | $ | 27,227 | $ | 29,911 | ||||||||
Accumulated benefit obligation at end of year | $ | 398,936 | $ | 368,229 | ||||||||||||
Weighted-average assumptions as of December 31, | ||||||||||||||||
used to determine benefit obligation: | ||||||||||||||||
Discount rate | 5.49 | % | 5.74 | % | 4.00 | % | 4.50 | % | ||||||||
Rate of compensation increase | 4.00 | % | 4.00 | % | N/A | N/A | ||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 275,662 | $ | 232,452 | $ | — | $ | — | ||||||||
Actual return on plan assets, net of expenses | 39,538 | 62,157 | — | — | ||||||||||||
Employer contributions | 20,757 | 5,763 | 4,584 | 3,991 | ||||||||||||
Plan participants’ contributions | — | — | 2,676 | 2,732 | ||||||||||||
Benefits paid | (22,534 | ) | (24,710 | ) | (7,685 | ) | (7,532 | ) | ||||||||
Subsidies received | — | — | 425 | 809 | ||||||||||||
Fair value of plan assets at end of year | $ | 313,423 | $ | 275,662 | $ | — | $ | — | ||||||||
Unfunded status at end of year | $ | 96,047 | $ | 102,527 | $ | 27,227 | $ | 29,911 | ||||||||
Pension Plan | Postretirement Plan | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Transition obligation | $ | — | $ | — | $ | — | $ | 499 | ||||||||
Prior service benefit | (1,714 | ) | (2,515 | ) | (1,586 | ) | — | |||||||||
Actuarial losses | 90,465 | 87,381 | 10,696 | 8,361 | ||||||||||||
Accumulated other comprehensive losses, pretax | $ | 88,751 | $ | 84,866 | $ | 9,110 | $ | 8,860 | ||||||||
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Pension Plan | Postretirement Plan | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
Service cost | $ | 6,412 | $ | 7,375 | $ | 7,789 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 21,364 | 21,196 | 21,698 | 1,211 | 1,729 | 1,689 | ||||||||||||||||||
Amortization of transition obligation | — | — | — | — | 166 | 166 | ||||||||||||||||||
Recognized net actuarial loss | — | — | — | — | 417 | 241 | ||||||||||||||||||
Expected return on plan assets | (22,648 | ) | (18,327 | ) | (27,441 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost | (801 | ) | (801 | ) | (801 | ) | (146 | ) | — | — | ||||||||||||||
Amortization of net actuarial loss | 6,067 | 10,380 | 499 | 584 | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 10,394 | $ | 19,823 | $ | 1,744 | $ | 1,649 | $ | 2,312 | $ | 2,096 | ||||||||||||
Transition obligation | $ | — | $ | — | $ | — | $ | — | $ | (166 | ) | $ | (166 | ) | ||||||||||
Amortization of actuarial gains | (496 | ) | (501 | ) | (499 | ) | — | — | — | |||||||||||||||
Amortization of prior service benefit | 801 | 801 | 801 | 146 | — | — | ||||||||||||||||||
Net loss recognized | (5,571 | ) | (9,879 | ) | — | — | — | — | ||||||||||||||||
Actuarial loss/(gain) | 9,151 | (36,422 | ) | 120,167 | 104 | 3,117 | 2,411 | |||||||||||||||||
Total recognized in other comprehensive loss/(income) | 3,885 | (46,001 | ) | 120,469 | 250 | 2,951 | 2,245 | |||||||||||||||||
Total recognized in net periodic cost and other comprehensive loss/(income) | $ | 14,279 | $ | (26,178 | ) | $ | 122,213 | $ | 1,899 | $ | 5,263 | $ | 4,341 | |||||||||||
Pension | Postretirement | |||||||||||
Plan | Plan | Total | ||||||||||
Transaction obligation | $ | — | $ | — | $ | — | ||||||
Prior service benefit | (801 | ) | (146 | ) | (947 | ) | ||||||
Actuarial losses | 5,639 | 654 | 6,293 | |||||||||
Total | $ | 4,838 | $ | 508 | $ | 5,346 | ||||||
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Pension Plan | Postretirement Plan | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
Weighted-average assumptions as of January 1, used to determine net benefit cost: | ||||||||||||||||||||||||
Discount rate | 5.74 | % | 6.00 | % | 6.25 | % | 4.50 | % | 6.00 | % | 5.75 | % | ||||||||||||
Expected return on plan assets | 8.25 | % | 8.25 | % | 8.25 | % | N/A | N/A | N/A | |||||||||||||||
Rate of compensation increase | 4.00 | % | 4.00 | % | 4.25 | % | N/A | N/A | N/A | |||||||||||||||
Amounts recognized in the consolidated | ||||||||||||||||||||||||
balance sheets consist of: | ||||||||||||||||||||||||
Pension and postretirement benefits, current | $ | 519 | $ | 481 | $ | 555 | $ | 4,144 | $ | 4,803 | $ | 4,842 | ||||||||||||
Pension and postretirement benefits, noncurrent | 95,528 | 102,046 | 133,914 | 23,083 | 25,108 | 23,798 | ||||||||||||||||||
Total pension and postretirement benefits | $ | 96,047 | $ | 102,527 | $ | 134,469 | $ | 27,227 | $ | 29,911 | $ | 28,640 | ||||||||||||
Pension | Postretirement | |||||||
Plan | Plan | |||||||
2011 | $ | 26,204 | $ | 4,227 | ||||
2012 | $ | 27,182 | $ | 3,911 | ||||
2013 | $ | 28,030 | $ | 3,576 | ||||
2014 | $ | 31,778 | $ | 3,251 | ||||
2015 | $ | 30,104 | $ | 2,875 | ||||
2016-2020 | $ | 168,295 | $ | 9,901 |
1% | 1% | |||||||
Increase | Decrease | |||||||
Effect of total service and interest cost components of net periodic postretirement healthcare benefit cost | $ | 9 | $ | (11 | ) | |||
Effect on the healthcare component of the accumulated postretirement benefit obligation | $ | 209 | $ | (245 | ) |
102
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
Total | Assets (Level 1) | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||
December 31, 2010 | ||||||||||||||||
Equity | ||||||||||||||||
Managed equity accounts(1) | $ | 64,364 | $ | 64,364 | $ | — | $ | — | ||||||||
Equity — pooled separate account(2) | 108,775 | — | 108,775 | — | ||||||||||||
Equity — partnerships(3) | 1,121 | — | — | 1,121 | ||||||||||||
Debt | ||||||||||||||||
Fixed income manager — pooled separate account(2) | 133,315 | — | 133,315 | — | ||||||||||||
Other | ||||||||||||||||
Cash — pooled separate account(2) | 5,848 | — | 5,848 | — | ||||||||||||
Total | $ | 313,423 | $ | 64,364 | $ | 247,938 | $ | 1,121 | ||||||||
December 31, 2009 | ||||||||||||||||
Equity | ||||||||||||||||
Managed equity accounts(1) | $ | 123,871 | $ | 123,871 | $ | — | $ | — | ||||||||
Equity — pooled separate account(2) | 31,304 | — | 31,304 | — | ||||||||||||
Equity — partnerships(3) | 4,939 | — | — | 4,939 | ||||||||||||
Debt | ||||||||||||||||
Fixed income manager — managed account(2) | 76,900 | — | 76,900 | — | ||||||||||||
Fixed income manager — pooled separate account(2) | 30,728 | — | 30,728 | — | ||||||||||||
Other | ||||||||||||||||
Cash — pooled separate account(2) | 7,920 | — | 7,920 | — | ||||||||||||
Total | $ | 275,662 | $ | 123,871 | $ | 146,852 | $ | 4,939 | ||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
December 31, 2013 | |||||||||||||||
Equity | |||||||||||||||
Managed equity accounts (1) | $ | 110,852 | $ | 110,852 | $ | — | $ | — | |||||||
Equity — pooled separate account (2) | 200,947 | — | 200,947 | — | |||||||||||
Equity — partnerships (3) | 635 | — | — | 635 | |||||||||||
Debt | |||||||||||||||
Fixed income manager — pooled separate account (2) | 165,157 | — | 165,157 | — | |||||||||||
Fixed income manager — government securities (4) | 16,601 | 16,601 | — | — | |||||||||||
Other | |||||||||||||||
Cash deficit — pooled separate account (2) | (9,679 | ) | — | (9,679 | ) | — | |||||||||
Total | $ | 484,513 | $ | 127,453 | $ | 356,425 | $ | 635 | |||||||
December 31, 2012 | |||||||||||||||
Equity | |||||||||||||||
Managed equity accounts (1) | $ | 74,815 | $ | 74,815 | $ | — | $ | — | |||||||
Equity — pooled separate account (2) | 168,232 | — | 168,232 | — | |||||||||||
Equity — partnerships (3) | 1,022 | — | — | 1,022 | |||||||||||
Debt | |||||||||||||||
Fixed income manager — pooled separate account (2) | 172,547 | — | 172,547 | — | |||||||||||
Fixed income manager — government securities (4) | 18,766 | 18,766 | — | — | |||||||||||
Other | |||||||||||||||
Cash — pooled separate account (2) | 4,518 | — | 4,518 | — | |||||||||||
Total | $ | 439,900 | $ | 93,581 | $ | 345,297 | $ | 1,022 |
(1) | Valued at the closing price of shares for domestic stocks within the managed equity accounts, and valued at the net asset value (“NAV”) of shares for mutual funds at either the closing price reported in the active market or based on yields currently available on comparable securities of issuers with similar credit ratings for corporate bonds held by the Pension Plan in these managed accounts. |
(2) | The pooled separate accounts invest in domestic and foreign stocks, bonds and mutual funds. The fair values of these stocks, bonds and mutual funds are publicly quoted and are used in determining the NAV of the pooled separate account, which is not publicly quoted. |
(3) | Investments for which readily determinable prices do not exist are valued by the General Partner using either the market or income approach. In establishing the estimated fair value of investments, including those without readily determinable values, the General Partner assumes a reasonable period of time for liquidation of the investment, and takes into consideration the financial condition and operating results of |
103
the underlying portfolio company, nature of investment, restrictions on marketability, holding period, market conditions, foreign currency exposures, and other factors the General Partner deems appropriate. |
(4) | The fund invested in the U.S. government, its agencies or instrumentalities or securities that are rated AAA by S&P, AAA by Fitch, or Aaa by Moody’s, including but not limited to mortgage securities such as agency and non-agency collateralized |
Equity-partnerships | ||||||||
2010 | 2009 | |||||||
Beginning balance | $ | 4,939 | $ | 2,146 | ||||
Actual return on plan assets: | ||||||||
Investment loss, net | — | (31 | ) | |||||
Realized and unrealized (loss)/gain, net | (133 | ) | 3,123 | |||||
Fees | — | (366 | ) | |||||
Purchase, sales, issuances, and settlements, net | (3,685 | ) | 67 | |||||
Ending balance | $ | 1,121 | $ | 4,939 | ||||
Equity-partnerships | |||||||
2013 | 2012 | ||||||
Balance at January 1 | $ | 1,022 | $ | 1,067 | |||
Realized and unrealized loss on plan assets, net | (387 | ) | (45 | ) | |||
Balance at December 31 | $ | 635 | $ | 1,022 |
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2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
Decision Analytics | Risk Assessment | Total | Decision Analytics | Risk Assessment | Total | Decision Analytics | Risk Assessment | Total | |||||||||||||||||||||||||||
Revenues | $ | 977,427 | $ | 618,276 | $ | 1,595,703 | $ | 828,342 | $ | 579,506 | $ | 1,407,848 | $ | 639,100 | $ | 552,293 | $ | 1,191,393 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenues (exclusive of items shown separately below) | 427,978 | 194,545 | 622,523 | 334,280 | 182,428 | 516,708 | 253,970 | 187,009 | 440,979 | ||||||||||||||||||||||||||
Selling, general and administrative | 151,557 | 77,425 | 228,982 | 139,122 | 80,946 | 220,068 | 117,188 | 82,307 | 199,495 | ||||||||||||||||||||||||||
Acquisition related liabilities adjustment | — | — | — | — | — | — | (3,364 | ) | — | (3,364 | ) | ||||||||||||||||||||||||
Investment (income) and realized (gain) loss on available-for-sale securities, net | 16 | (625 | ) | (609 | ) | 22 | (128 | ) | (106 | ) | 8 | (887 | ) | (879 | ) | ||||||||||||||||||||
EBITDA from discontinued operations | (15,466 | ) | — | (15,466 | ) | (24,737 | ) | — | (24,737 | ) | (34,539 | ) | (3,186 | ) | (37,725 | ) | |||||||||||||||||||
EBITDA | 413,342 | 346,931 | 760,273 | 379,655 | 316,260 | 695,915 | 305,837 | 287,050 | 592,887 | ||||||||||||||||||||||||||
Depreciation and amortization of fixed assets | 51,739 | 14,451 | 66,190 | 33,106 | 13,531 | 46,637 | 26,369 | 13,766 | 40,135 | ||||||||||||||||||||||||||
Amortization of intangible assets | 63,388 | 353 | 63,741 | 52,207 | — | 52,207 | 32,985 | — | 32,985 | ||||||||||||||||||||||||||
Investment income and realized gain (loss) on available-for-sale securities, net | (16 | ) | 625 | 609 | (22 | ) | 128 | 106 | (8 | ) | 887 | 879 | |||||||||||||||||||||||
EBITDA from discontinued operations | 15,466 | — | 15,466 | 24,737 | — | 24,737 | 34,539 | 3,186 | 37,725 | ||||||||||||||||||||||||||
Operating income | $ | 282,765 | $ | 331,502 | $ | 614,267 | $ | 269,627 | $ | 302,601 | $ | 572,228 | $ | 211,952 | $ | 269,211 | $ | 481,163 | |||||||||||||||||
Capital expenditures, including non-cash purchases of fixed assets and capital lease obligations | $ | 123,927 | $ | 33,575 | $ | 157,502 | $ | 64,747 | $ | 15,004 | $ | 79,751 | $ | 56,486 | $ | 11,890 | $ | 68,376 |
December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||||||||||||
Risk | Decision | Risk | Decision | Risk | Decision | |||||||||||||||||||||||||||||||
Assessment | Analytics | Total | Assessment | Analytics | Total | Assessment | Analytics | Total | ||||||||||||||||||||||||||||
Revenues | $ | 542,138 | $ | 596,205 | $ | 1,138,343 | $ | 523,976 | $ | 503,128 | $ | 1,027,104 | $ | 504,391 | $ | 389,159 | $ | 893,550 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||
Cost of revenues (exclusive of items shown separately below) | 194,731 | 268,742 | 463,473 | 230,494 | 260,800 | 491,294 | 199,872 | 187,025 | 386,897 | |||||||||||||||||||||||||||
Selling, general and administrative | 78,990 | 87,384 | 166,374 | 82,554 | 80,050 | 162,604 | 81,813 | 49,426 | 131,239 | |||||||||||||||||||||||||||
Segment EBITDA | 268,417 | 240,079 | 508,496 | 210,928 | 162,278 | 373,206 | 222,706 | 152,708 | 375,414 | |||||||||||||||||||||||||||
Depreciation and amortization of fixed assets | 16,772 | 23,956 | 40,728 | 18,690 | 19,888 | 38,578 | 19,447 | 15,870 | 35,317 | |||||||||||||||||||||||||||
Amortization of intangible assets | 145 | 27,253 | 27,398 | 503 | 32,118 | 32,621 | 806 | 28,749 | 29,555 | |||||||||||||||||||||||||||
Acquisition related liabilities adjustment | — | (544 | ) | (544 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Operating income | 251,500 | 189,414 | 440,914 | 191,735 | 110,272 | 302,007 | 202,453 | 108,089 | 310,542 | |||||||||||||||||||||||||||
Unallocated expenses: | ||||||||||||||||||||||||||||||||||||
Investment income | 305 | 195 | 2,184 | |||||||||||||||||||||||||||||||||
Realized gains/(losses) on securities, net | 95 | (2,332 | ) | (2,511 | ) | |||||||||||||||||||||||||||||||
Interest expense | (34,664 | ) | (35,265 | ) | (31,316 | ) | ||||||||||||||||||||||||||||||
Consolidated income before income taxes | $ | 406,650 | $ | 264,605 | $ | 278,899 | ||||||||||||||||||||||||||||||
Capital expenditures, including non-cash purchases of fixed assets and capital lease obligations | $ | 8,323 | $ | 32,622 | $ | 40,945 | $ | 8,373 | $ | 35,368 | $ | 43,741 | $ | 12,598 | $ | 20,664 | $ | 33,262 | ||||||||||||||||||
105
2013 | 2012 | 2011 | |||||||||
Decision Analytics | |||||||||||
Insurance | $ | 539,150 | $ | 493,456 | $ | 451,216 | |||||
Financial services | 81,113 | 26,567 | 5,323 | ||||||||
Healthcare | 271,538 | 222,955 | 103,722 | ||||||||
Specialized markets | 85,626 | 85,364 | 78,839 | ||||||||
Total Decision Analytics | 977,427 | 828,342 | 639,100 | ||||||||
Risk Assessment | |||||||||||
Industry-standard insurance programs | 471,130 | 450,646 | 426,228 | ||||||||
Property-specific rating and underwriting information | 147,146 | 128,860 | 126,065 | ||||||||
Total Risk Assessment | 618,276 | 579,506 | 552,293 | ||||||||
Total consolidated revenues | $ | 1,595,703 | $ | 1,407,848 | $ | 1,191,393 |
December 31, | December 31, | December 31, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
Risk Assessment | ||||||||||||
Industry-standard insurance programs | $ | 353,501 | $ | 341,079 | $ | 329,858 | ||||||
Property-specific rating and underwriting information | 137,071 | 132,027 | 125,835 | |||||||||
Statistical agency and data services | 29,357 | 28,619 | 27,451 | |||||||||
Actuarial services | 22,209 | 22,251 | 21,247 | |||||||||
Total Risk Assessment | 542,138 | 523,976 | 504,391 | |||||||||
Decision Analytics | ||||||||||||
Fraud identification and detection solutions | 320,781 | 273,103 | 213,994 | |||||||||
Loss prediction solutions | 158,406 | 137,328 | 95,128 | |||||||||
Loss quantification solutions | 117,018 | 92,697 | 80,037 | |||||||||
Total Decision Analytics | 596,205 | 503,128 | 389,159 | |||||||||
Total consolidated revenues | $ | 1,138,343 | $ | 1,027,104 | $ | 893,550 | ||||||
106
20. | Commitments and Contingencies: |
Years Ending | Operating Leases | Capital Leases | |||||
2014 | $ | 34,590 | $ | 4,750 | |||
2015 | 35,957 | 4,059 | |||||
2016 | 33,171 | 2,034 | |||||
2017 | 31,362 | 256 | |||||
2018 | 27,182 | 73 | |||||
2019-2024 | 73,019 | 194 | |||||
Net minimum lease payments | $ | 235,281 | 11,366 | ||||
Less amount representing interest | 608 | ||||||
Present value of net minimum lease capital payments | $ | 10,758 |
Operating | Capital | |||||||
Years Ending | Leases | Leases | ||||||
2011 | $ | 26,226 | $ | 2,511 | ||||
2012 | 24,827 | 1,030 | ||||||
2013 | 24,632 | 517 | ||||||
2014 | 22,268 | 103 | ||||||
2015 | 19,512 | 1 | ||||||
2016-2020 | 84,159 | — | ||||||
2021-2025 | 5,385 | — | ||||||
Net minimum lease payments | $ | 207,009 | $ | 4,162 | ||||
Less amount representing interest | 105 | |||||||
Present value of net minimum lease capital payments | $ | 4,057 | ||||||
107
108
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 20,226 | $ | 81,095 | $ | 64,480 | $ | — | $ | 165,801 | |||||||||
Available-for-sale securities | — | 3,911 | — | — | 3,911 | ||||||||||||||
Accounts receivable, net | — | 99,578 | 58,969 | — | 158,547 | ||||||||||||||
Prepaid expenses | — | 22,582 | 3,075 | — | 25,657 | ||||||||||||||
Deferred income taxes, net | — | — | 5,086 | (9 | ) | 5,077 | |||||||||||||
Income taxes receivable | 20,045 | 66,274 | — | (18,973 | ) | 67,346 | |||||||||||||
Intercompany receivables | 633,128 | 525,286 | 202,018 | (1,360,432 | ) | — | |||||||||||||
Other current assets | 5,144 | 26,835 | 2,702 | — | 34,681 | ||||||||||||||
Current assets held-for-sale | — | 12,421 | 883 | 521 | 13,825 | ||||||||||||||
Total current assets | 678,543 | 837,982 | 337,213 | (1,378,893 | ) | 474,845 | |||||||||||||
Noncurrent assets: | |||||||||||||||||||
Fixed assets, net | — | 198,112 | 35,261 | — | 233,373 | ||||||||||||||
Intangible assets, net | — | 67,407 | 380,211 | — | 447,618 | ||||||||||||||
Goodwill | — | 493,053 | 688,628 | — | 1,181,681 | ||||||||||||||
Investment in subsidiaries | 1,375,128 | 848,124 | — | (2,223,252 | ) | — | |||||||||||||
Pension assets | — | 60,955 | — | — | 60,955 | ||||||||||||||
Other assets | 7,789 | 11,356 | 889 | — | 20,034 | ||||||||||||||
Noncurrent assets held-for-sale | — | 85,945 | — | — | 85,945 | ||||||||||||||
Total assets | $ | 2,061,460 | $ | 2,602,934 | $ | 1,442,202 | $ | (3,602,145 | ) | $ | 2,504,451 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 22,233 | $ | 102,477 | $ | 63,554 | $ | — | $ | 188,264 | |||||||||
Short-term debt and current portion of long-term debt | — | 4,341 | 107 | — | 4,448 | ||||||||||||||
Pension and postretirement benefits, current | — | 2,437 | — | — | 2,437 | ||||||||||||||
Fees received in advance | — | 192,524 | 34,057 | — | 226,581 | ||||||||||||||
Intercompany payables | 446,509 | 793,517 | 120,406 | (1,360,432 | ) | — | |||||||||||||
Deferred income taxes, net | — | 9 | — | (9 | ) | — | |||||||||||||
Income taxes payable | — | — | 18,973 | (18,973 | ) | — | |||||||||||||
Current liabilities held-for-sale | — | 8,928 | — | 521 | 9,449 | ||||||||||||||
Total current liabilities | 468,742 | 1,104,233 | 237,097 | (1,378,893 | ) | 431,179 | |||||||||||||
Noncurrent liabilities: | |||||||||||||||||||
Long-term debt | 1,045,129 | 225,950 | 360 | — | 1,271,439 | ||||||||||||||
Pension and postretirement benefits | — | 15,068 | — | — | 15,068 | ||||||||||||||
Deferred income taxes, net | — | 70,897 | 127,707 | — | 198,604 | ||||||||||||||
Other liabilities | — | 31,809 | 4,234 | — | 36,043 | ||||||||||||||
Noncurrent liabilities held-for-sale | — | 4,529 | — | — | 4,529 | ||||||||||||||
Total liabilities | 1,513,871 | 1,452,486 | 369,398 | (1,378,893 | ) | 1,956,862 | |||||||||||||
Total stockholders’ equity | 547,589 | 1,150,448 | 1,072,804 | (2,223,252 | ) | 547,589 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,061,460 | $ | 2,602,934 | $ | 1,442,202 | $ | (3,602,145 | ) | $ | 2,504,451 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 128 | $ | 35,571 | $ | 54,120 | $ | — | $ | 89,819 | |||||||||
Available-for-sale securities | — | 4,883 | — | — | 4,883 | ||||||||||||||
Accounts receivable, net | — | 124,212 | 54,218 | — | 178,430 | ||||||||||||||
Prepaid expenses | — | 19,340 | 2,606 | — | 21,946 | ||||||||||||||
Deferred income taxes, net | — | 375 | 10,022 | — | 10,397 | ||||||||||||||
Income taxes receivable | 15,834 | 37,180 | — | (7,039 | ) | 45,975 | |||||||||||||
Intercompany receivables | 424,927 | 206,165 | 211,792 | (842,884 | ) | — | |||||||||||||
Other current assets | 12,008 | 19,124 | 7,977 | — | 39,109 | ||||||||||||||
Total current assets | 452,897 | 446,850 | 340,735 | (849,923 | ) | 390,559 | |||||||||||||
Noncurrent assets: | |||||||||||||||||||
Fixed assets, net | — | 126,481 | 27,603 | — | 154,084 | ||||||||||||||
Intangible assets, net | — | 66,045 | 454,890 | — | 520,935 | ||||||||||||||
Goodwill | — | 515,705 | 731,754 | — | 1,247,459 | ||||||||||||||
Deferred income taxes, net | — | 2,584 | — | (2,584 | ) | — | |||||||||||||
Investment in subsidiaries | 946,612 | 904,198 | — | (1,850,810 | ) | — | |||||||||||||
Other assets | 13,896 | 31,801 | 1,602 | — | 47,299 | ||||||||||||||
Total assets | $ | 1,413,405 | $ | 2,093,664 | $ | 1,556,584 | $ | (2,703,317 | ) | $ | 2,360,336 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 14,638 | $ | 113,512 | $ | 59,498 | $ | — | $ | 187,648 | |||||||||
Short-term debt and current portion of long-term debt | — | 194,980 | 283 | — | 195,263 | ||||||||||||||
Pension and postretirement benefits, current | — | 1,734 | — | — | 1,734 | ||||||||||||||
Fees received in advance | — | 167,962 | 32,743 | — | 200,705 | ||||||||||||||
Intercompany payables | 98,768 | 575,907 | 168,209 | (842,884 | ) | — | |||||||||||||
Income taxes payable | — | — | 7,039 | (7,039 | ) | — | |||||||||||||
Total current liabilities | 113,406 | 1,054,095 | 267,772 | (849,923 | ) | 585,350 | |||||||||||||
Noncurrent liabilities: | |||||||||||||||||||
Long-term debt | 1,044,408 | 221,706 | 48 | — | 1,266,162 | ||||||||||||||
Pension and postretirement benefits | — | 41,282 | — | — | 41,282 | ||||||||||||||
Deferred income taxes, net | — | — | 136,345 | (2,584 | ) | 133,761 | |||||||||||||
Other liabilities | — | 46,892 | 31,298 | — | 78,190 | ||||||||||||||
Total liabilities | 1,157,814 | 1,363,975 | 435,463 | (852,507 | ) | 2,104,745 | |||||||||||||
Total stockholders’ equity | 255,591 | 729,689 | 1,121,121 | (1,850,810 | ) | 255,591 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,413,405 | $ | 2,093,664 | $ | 1,556,584 | $ | (2,703,317 | ) | $ | 2,360,336 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues | $ | — | $ | 1,259,884 | $ | 355,165 | $ | (19,346 | ) | $ | 1,595,703 | ||||||||
Expenses: | |||||||||||||||||||
Cost of revenues (exclusive of items shown separately below) | — | 451,393 | 179,196 | (8,066 | ) | 622,523 | |||||||||||||
Selling, general and administrative | 1 | 183,717 | 56,544 | (11,280 | ) | 228,982 | |||||||||||||
Depreciation and amortization of fixed assets | — | 52,248 | 13,942 | — | 66,190 | ||||||||||||||
Amortization of intangible assets | — | 13,593 | 50,148 | — | 63,741 | ||||||||||||||
Total expenses | 1 | 700,951 | 299,830 | (19,346 | ) | 981,436 | |||||||||||||
Operating (loss) income | (1 | ) | 558,933 | 55,335 | — | 614,267 | |||||||||||||
Other income (expense): | |||||||||||||||||||
Investment income (loss) | 43 | 728 | (70 | ) | — | 701 | |||||||||||||
Realized loss on available-for-sale securities, net | — | (92 | ) | — | — | (92 | ) | ||||||||||||
Interest expense | (54,551 | ) | (21,571 | ) | (14 | ) | — | (76,136 | ) | ||||||||||
Total other expense, net | (54,508 | ) | (20,935 | ) | (84 | ) | — | (75,527 | ) | ||||||||||
(Loss) income from continuing operations before equity in net income of subsidiaries and income taxes | (54,509 | ) | 537,998 | 55,251 | — | 538,740 | |||||||||||||
Provision for income taxes | 20,045 | (198,464 | ) | (18,007 | ) | — | (196,426 | ) | |||||||||||
Net (loss) income from continuing operations before equity in net income of subsidiaries | (34,464 | ) | 339,534 | 37,244 | — | 342,314 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | 6,230 | (164 | ) | — | 6,066 | |||||||||||||
Equity in net income of subsidiaries | 382,844 | 29,262 | — | (412,106 | ) | — | |||||||||||||
Net income | $ | 348,380 | $ | 375,026 | $ | 37,080 | $ | (412,106 | ) | $ | 348,380 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues | $ | — | $ | 1,162,134 | $ | 266,427 | $ | (20,713 | ) | $ | 1,407,848 | ||||||||
Expenses: | |||||||||||||||||||
Cost of revenues (exclusive of items shown separately below) | — | 401,724 | 125,111 | (10,127 | ) | 516,708 | |||||||||||||
Selling, general and administrative | — | 174,324 | 56,330 | (10,586 | ) | 220,068 | |||||||||||||
Depreciation and amortization of fixed assets | — | 36,898 | 9,739 | — | 46,637 | ||||||||||||||
Amortization of intangible assets | — | 17,943 | 34,264 | — | 52,207 | ||||||||||||||
Total expenses | — | 630,889 | 225,444 | (20,713 | ) | 835,620 | |||||||||||||
Operating income | — | 531,245 | 40,983 | — | 572,228 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Investment income | 44 | 202 | 192 | — | 438 | ||||||||||||||
Realized loss on available-for-sale securities, net | — | (332 | ) | — | — | (332 | ) | ||||||||||||
Interest expense | (42,848 | ) | (29,619 | ) | (41 | ) | — | (72,508 | ) | ||||||||||
Total other (expense) income, net | (42,804 | ) | (29,749 | ) | 151 | — | (72,402 | ) | |||||||||||
(Loss) income from continuing operations before equity in net income of subsidiaries and income taxes | (42,804 | ) | 501,496 | 41,134 | — | 499,826 | |||||||||||||
Provision for income taxes | 15,833 | (183,025 | ) | (15,171 | ) | — | (182,363 | ) | |||||||||||
Net (loss) income from continuing operations before equity in net income of subsidiaries | (26,971 | ) | 318,471 | 25,963 | — | 317,463 | |||||||||||||
Income from discontinued operations, net of tax | — | 11,679 | — | — | 11,679 | ||||||||||||||
Equity in net income of subsidiaries | 356,113 | 19,159 | — | (375,272 | ) | — | |||||||||||||
Net income | $ | 329,142 | $ | 349,309 | $ | 25,963 | $ | (375,272 | ) | $ | 329,142 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues | $ | — | $ | 1,040,949 | $ | 167,044 | $ | (16,600 | ) | $ | 1,191,393 | ||||||||
Expenses: | |||||||||||||||||||
Cost of revenues (exclusive of items shown separately below) | — | 373,689 | 75,603 | (8,313 | ) | 440,979 | |||||||||||||
Selling, general and administrative | — | 155,117 | 52,665 | (8,287 | ) | 199,495 | |||||||||||||
Depreciation and amortization of fixed assets | — | 32,315 | 7,820 | — | 40,135 | ||||||||||||||
Amortization of intangible assets | — | 18,544 | 14,441 | — | 32,985 | ||||||||||||||
Acquisition related liabilities adjustment | — | (2,800 | ) | (564 | ) | — | (3,364 | ) | |||||||||||
Total expenses | — | 576,865 | 149,965 | (16,600 | ) | 710,230 | |||||||||||||
Operating income | — | 464,084 | 17,079 | — | 481,163 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Investment income | 36 | 3,017 | 22 | (2,882 | ) | 193 | |||||||||||||
Realized gain on available-for-sale securities, net | — | 686 | — | — | 686 | ||||||||||||||
Interest expense | (23,239 | ) | (33,319 | ) | (171 | ) | 2,882 | (53,847 | ) | ||||||||||
Total other expense, net | (23,203 | ) | (29,616 | ) | (149 | ) | — | (52,968 | ) | ||||||||||
(Loss) income from continuing operations before equity in net income of subsidiaries and income taxes | (23,203 | ) | 434,468 | 16,930 | — | 428,195 | |||||||||||||
Provision for income taxes | 8,522 | (168,654 | ) | (5,607 | ) | — | (165,739 | ) | |||||||||||
Net (loss) income from continuing operations before equity in net income of subsidiaries | (14,681 | ) | 265,814 | 11,323 | — | 262,456 | |||||||||||||
Income from discontinued operations, net of tax | — | 20,302 | — | — | 20,302 | ||||||||||||||
Equity in net income of subsidiaries | 297,439 | 6,891 | — | (304,330 | ) | — | |||||||||||||
Net income | $ | 282,758 | $ | 293,007 | $ | 11,323 | $ | (304,330 | ) | $ | 282,758 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 348,380 | $ | 375,026 | $ | 37,080 | $ | (412,106 | ) | $ | 348,380 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Unrealized foreign currency loss | (840 | ) | (778 | ) | (99 | ) | 877 | (840 | ) | ||||||||||
Unrealized holding loss on available-for-sale securities | (147 | ) | (147 | ) | — | 147 | (147 | ) | |||||||||||
Pension and postretirement adjustment | 46,659 | 46,659 | — | (46,659 | ) | 46,659 | |||||||||||||
Total other comprehensive income (loss) | 45,672 | 45,734 | (99 | ) | (45,635 | ) | 45,672 | ||||||||||||
Comprehensive income | $ | 394,052 | $ | 420,760 | $ | 36,981 | $ | (457,741 | ) | $ | 394,052 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 329,142 | $ | 349,309 | $ | 25,963 | $ | (375,272 | ) | $ | 329,142 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Unrealized foreign currency gain | 15 | 172 | 46 | (218 | ) | 15 | |||||||||||||
Unrealized holding loss on available-for-sale securities | (197 | ) | (197 | ) | — | 197 | (197 | ) | |||||||||||
Pension and postretirement adjustment | (10,691 | ) | (10,691 | ) | — | 10,691 | (10,691 | ) | |||||||||||
Total other comprehensive (loss) income | (10,873 | ) | (10,716 | ) | 46 | 10,670 | (10,873 | ) | |||||||||||
Comprehensive income | $ | 318,269 | $ | 338,593 | $ | 26,009 | $ | (364,602 | ) | $ | 318,269 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 282,758 | $ | 293,007 | $ | 11,323 | $ | (304,330 | ) | $ | 282,758 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Unrealized foreign currency (loss) gain | (183 | ) | 55 | (231 | ) | 176 | (183 | ) | |||||||||||
Unrealized holding loss on available-for-sale securities | (456 | ) | (456 | ) | — | 456 | (456 | ) | |||||||||||
Pension and postretirement adjustment | (21,845 | ) | (21,845 | ) | — | 21,845 | (21,845 | ) | |||||||||||
Total other comprehensive loss | (22,484 | ) | (22,246 | ) | (231 | ) | 22,477 | (22,484 | ) | ||||||||||
Comprehensive income | $ | 260,274 | $ | 270,761 | $ | 11,092 | $ | (281,853 | ) | $ | 260,274 |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash provided by operating activities | $ | 42 | $ | 287,956 | $ | 218,922 | $ | — | $ | 506,920 | |||||||||
Cash flows from investing activities: | |||||||||||||||||||
Acquisitions | — | (983 | ) | — | — | (983 | ) | ||||||||||||
Investment in subsidiaries | — | (350 | ) | — | 350 | — | |||||||||||||
Proceeds from release of acquisition related escrows | 66 | 214 | — | — | 280 | ||||||||||||||
Repayments received from other subsidiaries | — | 206,282 | 9,605 | (215,887 | ) | — | |||||||||||||
Advances provided to other subsidiaries | (30,000 | ) | (68,692 | ) | — | 98,692 | — | ||||||||||||
Purchases of fixed assets | — | (118,307 | ) | (27,669 | ) | — | (145,976 | ) | |||||||||||
Purchases of available-for-sale securities | — | (5,870 | ) | — | — | (5,870 | ) | ||||||||||||
Proceeds from sales and maturities of available-for-sale securities | — | 7,484 | — | — | 7,484 | ||||||||||||||
Other investing, net | — | (561 | ) | — | — | (561 | ) | ||||||||||||
Net cash (used in) provided by investing activities | (29,934 | ) | 19,217 | (18,064 | ) | (116,845 | ) | (145,626 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Repayment of current portion of long-term debt | — | (180,000 | ) | — | — | (180,000 | ) | ||||||||||||
Repayment of short-term debt, net | — | (10,000 | ) | — | — | (10,000 | ) | ||||||||||||
Proceeds from issuance of common stock | — | — | 350 | (350 | ) | — | |||||||||||||
Repurchases of Class A common stock | — | (277,411 | ) | — | — | (277,411 | ) | ||||||||||||
Transfer of cash due to the Verisk Health, Inc. merger | — | 2,877 | (2,877 | ) | — | — | |||||||||||||
Repayments of advances to other subsidiaries | (10,010 | ) | (9,605 | ) | (196,272 | ) | 215,887 | — | |||||||||||
Advances received from other subsidiaries | 60,000 | 30,000 | 8,692 | (98,692 | ) | — | |||||||||||||
Payment of debt issuance costs | — | (605 | ) | — | — | (605 | ) | ||||||||||||
Excess tax benefits from exercised stock options | — | 109,946 | — | — | 109,946 | ||||||||||||||
Proceeds from stock options exercised | — | 80,368 | — | — | 80,368 | ||||||||||||||
Other financing activities, net | — | (6,478 | ) | (292 | ) | — | (6,770 | ) | |||||||||||
Net cash provided by (used in) financing activities | 49,990 | (260,908 | ) | (190,399 | ) | 116,845 | (284,472 | ) | |||||||||||
Effect of exchange rate changes | — | (741 | ) | (99 | ) | — | (840 | ) | |||||||||||
Increase in cash and cash equivalents | 20,098 | 45,524 | 10,360 | — | 75,982 | ||||||||||||||
Cash and cash equivalents, beginning of period | 128 | 35,571 | 54,120 | — | 89,819 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 20,226 | $ | 81,095 | $ | 64,480 | $ | — | $ | 165,801 | |||||||||
Supplemental disclosures: | |||||||||||||||||||
Increase in intercompany balances from the purchase of treasury stock by Verisk funded directly by ISO | $ | 277,411 | $ | 277,411 | $ | — | $ | — | $ | — | |||||||||
Increase in intercompany balances from proceeds received by ISO related to issuance of Verisk common stock from options exercised | $ | 80,368 | $ | 80,368 | $ | — | $ | — | $ | — | |||||||||
Increase (decrease) in intercompany balances due to the merger of Verisk Health, Inc. | $ | — | $ | 85,953 | $ | (85,953 | ) | $ | — | $ | — |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (20,115 | ) | $ | 329,845 | $ | 158,499 | $ | — | $ | 468,229 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Acquisitions, net of cash acquired of $36,113 | — | (762,596 | ) | (6,917 | ) | — | (769,513 | ) | |||||||||||
Purchase of non-controlling equity investments in non-public companies | (250 | ) | (2,000 | ) | — | — | (2,250 | ) | |||||||||||
Earnout payments | — | — | (250 | ) | — | (250 | ) | ||||||||||||
Escrow funding associated with acquisitions | — | (38,000 | ) | (800 | ) | — | (38,800 | ) | |||||||||||
Proceeds from release of acquisition related escrows | — | 1,455 | — | — | 1,455 | ||||||||||||||
Repayments received from other subsidiaries | 19,400 | 592,356 | — | (611,756 | ) | — | |||||||||||||
Advances provided to other subsidiaries | — | (52,000 | ) | — | 52,000 | — | |||||||||||||
Purchases of fixed assets | — | (60,525 | ) | (13,848 | ) | — | (74,373 | ) | |||||||||||
Purchases of available-for-sale securities | — | (1,784 | ) | — | — | (1,784 | ) | ||||||||||||
Proceeds from sales and maturities of available-for-sale securities | — | 1,932 | — | — | 1,932 | ||||||||||||||
Net cash provided by (used in) investing activities | 19,150 | (321,162 | ) | (21,815 | ) | (559,756 | ) | (883,583 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of long-term debt, net of original issue discount | 347,224 | — | — | — | 347,224 | ||||||||||||||
Repayment of short-term debt refinanced on a long-term basis | — | (347,224 | ) | — | — | (347,224 | ) | ||||||||||||
Proceeds from short-term debt, net | — | 357,224 | — | — | 357,224 | ||||||||||||||
Payment of debt issuance costs | (2,557 | ) | (1,348 | ) | — | — | (3,905 | ) | |||||||||||
Repurchases of Class A common stock | — | (162,275 | ) | — | — | (162,275 | ) | ||||||||||||
Repayments of advances to other subsidiaries | (419,812 | ) | (19,400 | ) | (172,544 | ) | 611,756 | — | |||||||||||
Advances received from other subsidiaries | — | — | 52,000 | (52,000 | ) | — | |||||||||||||
Excess tax benefits from exercised stock options | — | 60,672 | — | — | 60,672 | ||||||||||||||
Proceeds from stock options exercised | — | 68,388 | — | — | 68,388 | ||||||||||||||
Other financing activities, net | — | (5,931 | ) | (618 | ) | — | (6,549 | ) | |||||||||||
Net cash (used in) provided by financing activities | (75,145 | ) | (49,894 | ) | (121,162 | ) | 559,756 | 313,555 | |||||||||||
Effect of exchange rate changes | — | (31 | ) | 46 | — | 15 | |||||||||||||
(Decrease) increase in cash and cash equivalents | (76,110 | ) | (41,242 | ) | 15,568 | — | (101,784 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 76,238 | 76,813 | 38,552 | — | 191,603 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 128 | $ | 35,571 | $ | 54,120 | $ | — | $ | 89,819 | |||||||||
Supplemental disclosures: | |||||||||||||||||||
Increase in intercompany balances from the purchase of MediConnect and Argus by ISO | $ | 17,000 | $ | 790,174 | $ | 773,174 | $ | — | $ | — | |||||||||
Increase in intercompany balances from the purchase of treasury stock by Verisk funded directly by ISO | $ | 162,275 | $ | 162,275 | $ | — | $ | — | $ | — | |||||||||
Increase in intercompany balances from proceeds received by ISO related to issuance of Verisk common stock from options exercised | $ | 68,388 | $ | 68,388 | $ | — | $ | — | $ | — |
Verisk Analytics, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (14,821 | ) | $ | 346,820 | $ | 43,722 | $ | — | $ | 375,721 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Acquisitions, net of cash acquired of $590 | — | (121,721 | ) | — | — | (121,721 | ) | ||||||||||||
Earnout payments | — | — | (3,500 | ) | — | (3,500 | ) | ||||||||||||
Escrow funding associated with acquisitions | — | (19,560 | ) | — | — | (19,560 | ) | ||||||||||||
Repayments received from other subsidiaries | — | 9,714 | — | (9,714 | ) | — | |||||||||||||
Advances provided to other subsidiaries | (10,052 | ) | (54,701 | ) | (81,824 | ) | 146,577 | — | |||||||||||
Proceeds from repayment of intercompany note receivable | — | 617,796 | — | (617,796 | ) | — | |||||||||||||
Purchases of fixed assets | — | (50,813 | ) | (9,016 | ) | — | (59,829 | ) | |||||||||||
Purchases of available-for-sale securities | — | (1,549 | ) | — | — | (1,549 | ) | ||||||||||||
Proceeds from sales and maturities of available-for-sale securities | — | 1,730 | — | — | 1,730 | ||||||||||||||
Other investing activities, net | — | 300 | — | — | 300 | ||||||||||||||
Net cash (used in) provided by investing activities | (10,052 | ) | 381,196 | (94,340 | ) | (480,933 | ) | (204,129 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of long-term debt, net of original issue discount | 696,559 | — | — | — | 696,559 | ||||||||||||||
Repayment of current portion of long-term debt | — | (125,000 | ) | — | — | (125,000 | ) | ||||||||||||
Repayment of short-term debt refinanced on a long-term basis | — | (440,000 | ) | — | — | (440,000 | ) | ||||||||||||
Proceeds from issuance of short-term debt with original maturities greater than three months | — | 120,000 | — | — | 120,000 | ||||||||||||||
Proceeds from short-term debt, net | — | 10,000 | — | — | 10,000 | ||||||||||||||
Payment of debt issuance costs | (4,487 | ) | (3,348 | ) | — | — | (7,835 | ) | |||||||||||
Repurchases of Class A common stock | — | (381,776 | ) | — | — | (381,776 | ) | ||||||||||||
Repayments of advances provided to other subsidiaries | (7,204 | ) | (2,510 | ) | — | 9,714 | — | ||||||||||||
Repayment of intercompany note payable | (617,796 | ) | — | — | 617,796 | — | |||||||||||||
Advances received from other subsidiaries | 34,038 | 46,013 | 66,526 | (146,577 | ) | — | |||||||||||||
Excess tax benefits from exercised stock options | — | 53,195 | — | — | 53,195 | ||||||||||||||
Proceeds from stock options exercised | — | 43,345 | — | — | 43,345 | ||||||||||||||
Other financing activities, net | — | (2,746 | ) | (522 | ) | — | (3,268 | ) | |||||||||||
Net cash provided by (used in) financing activities | 101,110 | (682,827 | ) | 66,004 | 480,933 | (34,780 | ) | ||||||||||||
Effect of exchange rate changes | — | 48 | (231 | ) | — | (183 | ) | ||||||||||||
Increase in cash and cash equivalents | 76,237 | 45,237 | 15,155 | — | 136,629 | ||||||||||||||
Cash and cash equivalents, beginning of period | 1 | 31,576 | 23,397 | — | 54,974 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 76,238 | $ | 76,813 | $ | 38,552 | $ | — | $ | 191,603 | |||||||||
Supplemental disclosures: | |||||||||||||||||||
Increase in intercompany balances from the purchase of treasury stock by Verisk funded directly by ISO | $ | 381,776 | $ | 381,776 | $ | — | $ | — | $ | — | |||||||||
Increase in intercompany balances from proceeds received by ISO related to issuance of Verisk common stock from options exercised | $ | 43,345 | $ | 43,345 | $ | — | $ | — | $ | — | |||||||||
Issuance of intercompany note payable (receivable) from amounts previously recorded as intercompany payables (receivables) | $ | 615,000 | $ | (615,000 | ) | $ | — | $ | — | $ | — |
Description | Balance at Beginning of Year | Charged to Costs and Expenses(1) | Deductions— Write-offs(2) | Adjustment (3) | Balance at End of Year | ||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||
Allowance for doubtful accounts | $ | 4,753 | $ | 2,468 | $ | (2,284 | ) | $ | (522 | ) | $ | 4,415 | |||||||
Valuation allowance for income taxes | $ | 595 | $ | 673 | $ | (527 | ) | $ | — | $ | 741 | ||||||||
Year ended December 31, 2012 | |||||||||||||||||||
Allowance for doubtful accounts | $ | 4,158 | $ | 1,065 | $ | (470 | ) | $ | — | $ | 4,753 | ||||||||
Valuation allowance for income taxes | $ | 1,615 | $ | 73 | $ | (1,093 | ) | $ | — | $ | 595 | ||||||||
Year Ended December 31, 2011 | |||||||||||||||||||
Allowance for doubtful accounts | $ | 4,028 | $ | 1,278 | $ | (1,148 | ) | $ | — | $ | 4,158 | ||||||||
Valuation allowance for income taxes | $ | 1,485 | $ | 130 | $ | — | $ | — | $ | 1,615 |
Balance at | Charged to | Deductions — | ||||||||||||||
Beginning | Costs and | Write-offs | Balance at | |||||||||||||
Description | of Year | Expenses(1) | (2) | End of Year | ||||||||||||
Year ended December 31, 2010: | ||||||||||||||||
Allowance for doubtful accounts | $ | 3,844 | $ | 648 | $ | (464 | ) | $ | 4,028 | |||||||
Valuation allowance for income taxes | $ | 2,110 | $ | 352 | $ | (977 | ) | $ | 1,485 | |||||||
Year ended December 31, 2009: | ||||||||||||||||
Allowance for doubtful accounts | $ | 6,397 | $ | 916 | $ | (3,469 | ) | $ | 3,844 | |||||||
Valuation allowance for income taxes | $ | 2,098 | $ | 12 | $ | — | $ | 2,110 | ||||||||
Year ended December 31, 2008: | ||||||||||||||||
Allowance for doubtful accounts | $ | 8,247 | $ | 1,536 | $ | (3,386 | ) | $ | 6,397 | |||||||
Valuation allowance for income taxes | $ | 1,534 | $ | 564 | $ | — | $ | 2,098 | ||||||||
(1) | Primarily additional reserves for bad debts. |
(2) | Primarily accounts receivable balances written off, net of recoveries, and the expiration of loss carryforwards. |
(3) | Related to discontinued operations |
VERISK ANALYTICS, INC. (Registrant) | |
/ | |
Scott G. Stephenson | |
President and Chief Executive Officer |
Signature | Capacity | |||
Scott G. Stephenson | ||||
/ | ||||
Mark V. Anquillare | ||||
/ | ||||
Frank J. Coyne | ||||
/ | Director | |||
J. Hyatt Brown | ||||
/ | Director | |||
Glen A. Dell | ||||
/ | Director | |||
Christopher M. Foskett | ||||
/ | Director | |||
Constantine P. Iordanou | ||||
/ | Director | |||
John F. Lehman, Jr. | ||||
/ | Director | |||
Samuel G. Liss | ||||
/ | Director | |||
Andrew G. Mills | ||||
/ | Director | |||
Thomas F. Motamed | ||||
/ | Director | |||
Therese M. Vaughan | ||||
/S/ DAVID B. WRIGHT | Director | |||
David B. Wright |
111
Exhibit | ||||
Number | Description | |||
3 | .1 | Amended and Restated Certificate of Incorporation, incorporated herein by reference to Exhibit 3.1 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. | ||
3 | .2 | Amended and Restated By-Laws, incorporated herein by reference to Exhibit 3.2 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. | ||
4 | .1 | Form of Common Stock Certificate, incorporated herein by reference to Exhibit 4.1 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. | ||
4 | .2 | Prudential Uncommitted Master Shelf Agreement, dated as of June 13, 2003, among Insurance Services Office, Inc., The Prudential Insurance Company of America, U.S. Private Placement Fund, Baystate Investments, LLC, United of Omaha Life Insurance Company and Prudential Investment Management, Inc., incorporated herein by reference to Exhibit 4.2 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. | ||
4 | .3 | Amendment No. 1 to the Prudential Uncommitted Master Shelf Agreement, dated February 1, 2005, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.3 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. | ||
4 | .4 | Amendment No. 2 to the Prudential Uncommitted Master Shelf Agreement, dated June 1, 2005, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.4 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. | ||
4 | .5 | Amendment No. 3 to the Prudential Uncommitted Master Shelf Agreement, dated January 23, 2006, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.5 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. | ||
4 | .6 | Waiver and Amendment No. 4 to the Prudential Uncommitted Master Shelf Agreement, dated February 28, 2007, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.6 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. | ||
4 | .7 | Amendment No. 5 to the Prudential Uncommitted Master Shelf Agreement, dated August 30, 2010, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.8 to the Company’s Registration Statement on Form S-1, dated September 15, 2010. | ||
4 | .8 | New York Life Uncommitted Master Shelf Agreement, dated as of March 16, 2007, among Insurance Services Office, Inc., New York Life Insurance Company and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.7 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. | ||
10 | .1 | 401(k) Savings Plan and Employee Stock Ownership Plan, incorporated herein by reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-1, dated August 12, 2008. | ||
10 | .2 | Verisk Analytics, Inc. 2009 Equity Incentive Plan, incorporated herein by reference to Exhibit 10.2 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. | ||
10 | .3 | Form of Letter Agreement, incorporated herein by reference to Exhibit 10.3 to Amendment No. 1 to the Company’s Registration Statement on Form S-1, dated October 7, 2008. |
112
Exhibit | ||||
Number | Description | |||
10 | .4 | Form of Master License Agreement and Participation Supplement, incorporated herein by reference to Exhibit 10.4 to Amendment No. 1 to the Company’s Registration Statement on Form S-1, dated October 7, 2008. | ||
10 | .5 | Schedule of Master License Agreements Substantially Identical in All Material Respects to the Form of Master License Agreement and Participation Supplement, incorporated herein by reference to Exhibit 10.5 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. | ||
10 | .6 | Credit Agreement, dated as of July 2, 2009, between Insurance Services Office, Inc. and Bank of America, N.A., as Administrative Agent, and the lenders party thereto, incorporated herein by reference to Exhibit 10.6 to Amendment No. 5 to the Company’s Registration Statement onForm S-1, dated August 21, 2009. | ||
10 | .7 | Letter Agreement dated August 21, 2009 between Insurance Services Office, Inc. and Bank of America, N.A., as administrative agent, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated September 13, 2010. | ||
10 | .8 | Second Amendment and Modification Agreement dated April 19, 2010 among Insurance Services Office, Inc., the Company, as a guarantor, the other guarantors party thereto, Bank of America, N.A., as a lender and the administrative agent, and the other lenders party thereto, incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, dated September 13, 2010. | ||
10 | .9 | Third Amendment and Modification Agreement dated September 10, 2010 among the Insurance Services Office, Inc., the Company, as guarantor, the other guarantors party thereto, Bank of America, N.A., and the other lenders party thereto, incorporated herein by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, dated September 13, 2010. | ||
10 | .10 | Employment Agreement with Frank J. Coyne, incorporated herein by reference to Exhibit 10.7 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. | ||
10 | .11 | Form of Change of Control Severance Agreement, incorporated herein by reference to Exhibit 10.8 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. | ||
10 | .12 | Insurance Services Office, Inc. 1996 Incentive Plan and Form of Stock Option Agreement thereunder, incorporated herein by reference to Exhibit 10.9 to Amendment No. 7 to the Company’s Registration Statement on Form S-1, dated September 29, 2009. | ||
10 | .13 | Form of Stock Option Award Agreement, incorporated herein by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, dated November 16, 2009. | ||
21 | .1 | Subsidiaries of the Registrant, incorporated herein by reference to Exhibit 21.1 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 29, 2009. | ||
23 | .1 | Consent of Deloitte & Touche LLP.* | ||
31 | .1 | Certification of the Chief Executive Officer of Verisk Analytics, Inc. pursuant to Rule 13a-14 under the Securities Exchange Act of 1934.* | ||
31 | .2 | Certification of the Chief Financial Officer of Verisk Analytics, Inc. pursuant to Rule 13a-14 under the Securities Exchange Act of 1934.* | ||
32 | .1 | Certification of the Chief Executive Officer and Chief Financial Officer of Verisk Analytics, Inc. pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
Exhibit Number | Description |
3.1 | Amended and Restated Certificate of Incorporation, incorporated herein by reference to Exhibit 3.1 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. |
3.2 | Amended and Restated By-Laws, incorporated herein by reference to Exhibit 3.2 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. |
4.1 | Form of Common Stock Certificate, incorporated herein by reference to Exhibit 4.1 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. |
4.2 | Prudential Uncommitted Master Shelf Agreement, dated as of June 13, 2003, among Insurance Services Office, Inc., The Prudential Insurance Company of America, U.S. Private Placement Fund, Baystate Investments, LLC, United of Omaha Life Insurance Company and Prudential Investment Management, Inc., incorporated herein by reference to Exhibit 4.2 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. |
4.3 | Amendment No. 1 to the Prudential Uncommitted Master Shelf Agreement, dated February 1, 2005, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.3 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. |
4.4 | Amendment No. 2 to the Prudential Uncommitted Master Shelf Agreement, dated June 1, 2005, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.4 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. |
4.5 | Amendment No. 3 to the Prudential Uncommitted Master Shelf Agreement, dated January 23, 2006, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.5 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. |
4.6 | Waiver and Amendment No. 4 to the Prudential Uncommitted Master Shelf Agreement, dated February 28, 2007, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.6 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. |
4.7 | Amendment No. 5 to the Prudential Uncommitted Master Shelf Agreement, dated August 30, 2010, among Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated by reference to Exhibit 4.8 to the Company’s Registration Statement on Form S-1, dated September 16, 2010. |
4.8 | Waiver, Consent and Amendment No. 6 to the Prudential Uncommitted Master Shelf Agreement, dated March 28, 2011, among Verisk Analytics, Inc., Insurance Services Office, Inc., The Prudential Insurance Company of America, Prudential Investment Management, Inc. and the other purchasers party thereto, incorporated by reference to Exhibit 4.10 to the Company’s Registration Statement on Form S-3, dated March 29, 2011. |
Exhibit Number | Description |
4.9 | New York Life Uncommitted Master Shelf Agreement, dated as of March 16, 2007, among Insurance Services Office, Inc., New York Life Insurance Company and the other purchasers party thereto, incorporated herein by reference to Exhibit 4.7 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. |
4.10 | Waiver, Consent and Amendment No. 2 to the New York Life Uncommitted Master Shelf Agreement, dated March 28, 2011, among Verisk Analytics, Inc., Insurance Services Office, Inc., New York Life Insurance Company and the other purchasers party thereto, incorporated by reference to Exhibit 4.11 to the Company’s Registration Statement on Form S-3, dated March 29, 2011. |
4.11 | Third Amended and Restated Sharing Agreement, dated as of March 28, 2011, among Bank of America, N.A., as administrative agent, and the other Lenders party thereto, incorporated by reference to Exhibit 4.12 to the Company’s Registration Statement on Form S-3, dated March 29, 2011. |
4.12 | Senior Notes Indenture, dated as of April 6, 2011, among Verisk Analytics, Inc., the guarantors named therein and Wells Fargo Bank, National Association, as Trustee, incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, dated April 6, 2011. |
4.13 | First Supplemental Indenture, dated as of April 6, 2011, among Verisk Analytics, Inc., the guarantors named therein and Wells Fargo Bank, National Association, as Trustee, incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K, dated April 6, 2011. |
4.14 | Second Supplemental Indenture, dated as of December 8, 2011, among Verisk Analytics, Inc., the guarantors named therein and Wells Fargo Bank, National Association, as Trustee, incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K, dated December 8, 2011. |
4.15 | Third Supplemental Indenture, dated as of September 12, 2012, among Verisk Analytics, Inc., the guarantors named therein and Wells Fargo Bank, National Association, as Trustee, incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K, dated September 12, 2012. |
10.1 | 401(k) Savings Plan and Employee Stock Ownership Plan, incorporated herein by reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-1, dated August 12, 2008. |
10.2 | Verisk Analytics, Inc. 2009 Equity Incentive Plan, incorporated herein by reference to Exhibit 10.2 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. |
10.3 | Form of Letter Agreement, incorporated herein by reference to Exhibit 10.3 to Amendment No. 1 to the Company’s Registration Statement on Form S-1, dated October 7, 2008. |
10.4 | Form of Master License Agreement and Participation Supplement, incorporated herein by reference to Exhibit 10.4 to Amendment No. 1 to the Company’s Registration Statement on Form S-1, dated October 7, 2008. |
10.5 | Schedule of Master License Agreements Substantially Identical in All Material Respects to the Form of Master License Agreement and Participation Supplement, incorporated herein by reference to Exhibit 10.5 to Amendment No. 2 to the Company’s Registration Statement on Form S-1, dated November 20, 2008. |
10.6 | Amended and Restated Credit Agreement dated October 25, 2011 among Verisk Analytics, Inc., as co-borrower, Insurance Services Office, Inc., as co-borrower, the guarantors party thereto, and the lenders party thereto, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated October 26, 2011. |
Exhibit Number | Description |
10.7 | Form of Change of Control Severance Agreement, incorporated herein by reference to Exhibit 10.8 to Amendment No. 6 to the Company’s Registration Statement on Form S-1, dated September 21, 2009. |
10.8 | Insurance Services Office, Inc. 1996 Incentive Plan and Form of Stock Option Agreement thereunder, incorporated herein by reference to Exhibit 10.9 to Amendment No. 7 to the Company’s Registration Statement on Form S-1, dated September 29, 2009. |
10.9 | Form of Stock Option Award Agreement under the Verisk Analytics, Inc. 2009 Equity Incentive Plan, incorporated herein by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, dated November 16, 2009. |
10.10 | First Amendment dated September 28, 2012 to the Amended and Restated Credit Agreement dated October 25, 2011 among Verisk Analytics, Inc., as co-borrower, Insurance Services Office, Inc., as co-borrower, the guarantors party thereto, and the lenders and agents party thereto, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated September 28, 2012. |
10.11 | Second Amendment dated October 25, 2013 to the Amended and Restated Credit Agreement dated October 25, 2011 among Verisk Analytics, Inc., as co-borrower, Insurance Services Office. Inc, as co-borrowers, the guarantors party thereto, and the lenders and agents party thereto, incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, dated October 28, 2013. |
10.12 | Insurance Services Office, Inc. Supplemental Cash Balance Plan dated January 1, 2009 as amended by the Amendment to the Insurance Services Office, Inc. Supplemental Cash Balance Plan dated February 10, 2012.* |
10.13 | Insurance Services Office, Inc. Supplemental Executive Retirement Savings Plan dated January 1, 2009.* |
10.14 | Verisk Analytics, Inc. 2013 Equity Incentive Plan, incorporated herein by reference to Appendix A to the Company's Proxy Statement on Schedule 14A, dated April 1, 2013. |
10.15 | Form of Stock Option Award Agreement under Verisk Analytics, Inc. 2013 Equity Incentive Plan, incorporated herein by reference to Exhibit 99.2 to Company’s Registration Statement on Form S-8 dated May 15, 2013. |
10.16 | Form of Restricted Stock Award Agreement under Verisk Analytics, Inc. 2013 Equity Incentive Plan, incorporated herein by reference to Exhibit 99.3 to Company’s Registration Statement on Form S-8 dated May 15, 2013. |
10.17 | Agreement and Plan of Merger dated January 14, 2014 among Verisk Analytics, Inc., Insurance Services Office, Inc., ISO Merger Sub I, Inc., Eagleview Technology Corporation and Fortis Advisors LLC, as the stockholders’ representative, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, dated January 14, 2014. |
21.1 | Subsidiaries of the Registrant.* |
23.1 | Consent of Deloitte & Touche LLP.* |
31.1 | Certification of the Chief Executive Officer of Verisk Analytics, Inc. pursuant to Rule 13a-14 under the Securities Exchange Act of 1934.* |
31.2 | Certification of the Chief Financial Officer of Verisk Analytics, Inc. pursuant to Rule 13a-14 under the Securities Exchange Act of 1934.* |
32.1 | Certification of the Chief Executive Officer and Chief Financial Officer of Verisk Analytics, Inc. pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
Exhibit Number | Description |
101.INS | XBRL Instance Document.* |
101.SCH | XBRL Taxonomy Extension Schema.* |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase.* |
101.DEF | XBRL Taxonomy Definition Linkbase.* |
101.LAB | XBRL Taxonomy Extension Label Linkbase.* |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase.* |
* | Filed herewith. |
113