Compensation Plans | Compensation Plans: KSOP The Company has established the KSOP for the benefit of eligible employees in the U.S. and Puerto Rico. The KSOP includes both an employee savings component and an employee stock ownership component. The purpose of the combined plan is to enable the Company’s employees to participate in a tax-deferred savings arrangement under Internal Revenue Service Code Sections 401(a) and 401(k) (the “Code”), and to provide employee equity participation in the Company through the employee stock ownership plan (“ESOP”) accounts. Under the KSOP, eligible employees may make pre-tax and after-tax cash contributions as a percentage of their compensation, subject to certain limitations under the applicable provisions of the Code. The maximum pre-tax contribution that can be made to the 401(k) account as determined under the provisions of Code Section 401(g) is $18 , $18 and $18 for 2015 , 2014 and 2013 , respectively. Certain eligible participants (age 50 and older) may contribute an additional $6 on a pre-tax basis for 2015 , 2014 and 2013 . After-tax contributions are limited to 10% of a participant’s compensation. The quarterly matching contributions are primarily equal to 75% of the first 6% of the participant’s contribution. The Company established the ESOP component as a funding vehicle for the KSOP. The common shares acquired by the KSOP were pledged as collateral under an intercompany loan agreement ("ESOP loan") between the KSOP and Company. The Company made quarterly cash contributions to the KSOP equal to the KSOP’s debt service. As the debt was repaid, shares were released from collateral and are used to fund the quarterly 401(k) matching and profit sharing contributions before being allocated to active employees in proportion to their annual salaries in relation to total participant salaries. The Company accounted for its ESOP in accordance with ASC 718-40, Employee Stock Ownership Plans (“ASC 718-40”) and ASC 480-10, Distinguishing Liabilities from Equity (“ASC 480-10”). As shares were committed to be released from collateral, the Company reported compensation expense at the then-current fair value of the shares, and the shares become outstanding for EPS computations. As of December 31, 2015 , the KSOP no longer has any outstanding ESOP loan balance with the Company. The Company issued 47,686 shares of common stock at a weighted average per price of $77.51 to fund quarterly matching contributions for the year ended December 31, 2015 . In accordance with the ESOP loan, the Company is also required to contribute a total of $17,000 , plus interest, of cash or shares to the KSOP by the end of 2016. Earlier contribution is at the Company's discretion. As of December 31, 2015 , the Company had no allocated ESOP shares. For the years ended December 31, 2015 , 2014 and 2013 , there were no ESOP contributions. In 2005, the Company established the ISO Profit Sharing Plan (the “Profit Sharing Plan”), a defined contribution plan, to replace the qualified pension plan for all eligible employees hired on or after March 1, 2005. The Profit Sharing Plan is a component of the KSOP. Eligible employees participated in the Profit Sharing Plan if they completed 1,000 hours of service each plan year and were employed on December 31 of that year. The Company can make a discretionary contribution to the Profit Sharing Plan based on the annual performance of the Company. Participants vest once they have completed four years and 1,000 hours of service. For the years ended December 31, 2015 , 2014 and 2013 , there were no profit sharing contributions. At December 31, 2015 , 2014 and 2013 , the fair value of Verisk common stock was $76.88 , $64.05 , and $65.72 per share, respectively. KSOP compensation expense for 2015 , 2014 and 2013 was approximately $14,076 , $15,351 and $14,930 , respectively. Equity Compensation Plans All of the Company’s outstanding stock options and restricted stock are covered under the 2013 Incentive Plan, 2009 Incentive Plan or the 1996 Incentive Plan. Awards under the 2013 Incentive Plan may include one or more of the following types: (i) stock options (both nonqualified and incentive stock options), (ii) stock appreciation rights, (iii) restricted stock, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards, and (vii) cash. Employees, directors and consultants are eligible for awards under the 2013 Incentive Plan. The Company issued common stock under these plans from the Company's treasury shares. On May 15, 2013, the Company’s shareholders approved the 2013 Incentive Plan. The number of shares of common stock available for issuance under the 2013 Incentive Plan is 15,700,000 and such amount shall be reduced on a 1 -for-1 basis for every share issued that is subject to an option or stock appreciation right and on a 2.5 -for-1 basis for every share issued that is subject to an award other than an option or stock appreciation right. Shares that were subject to an award under the 2013 Incentive Plan that become forfeited, expired or otherwise terminated shall again be available for issuance under the 2013 Incentive Plan on a 1 -for-1 basis if the shares were subject to options or stock appreciation rights, and on an 2.5 -for-1 basis if the shares were subject to awards other than options or stock appreciation rights. As of December 31, 2015 , there were 10,351,157 shares of common stock reserved and available for future issuance. Cash received from stock option exercises for the years ended December 31, 2015 , 2014 and 2013 was $38,831 , $24,648 and $80,368 , respectively. The Company has granted equity awards to key employees and directors. The nonqualified stock options have an exercise price equal to the closing price of the Company’s common stock on the grant date, with a ten -year contractual term. The fair value of the restricted stock is determined using the closing price of the Company's common stock on the grant date. The restricted stock is not assignable or transferable until it becomes vested. The Company recognizes the expense of the equity awards over the vesting period. A summary of the equity awards granted for the year ended December 31, 2015 is presented below. Grant Date Service Vesting Period Stock Options Restricted Stock Common Stock April 1, 2015 Four-year graded vesting 1,177,191 211,756 — April 1, 2015 Not applicable — — 840 May 19, 2015 Immediate vesting on grant date 255,473 52,960 — May 19, 2015 Four-year graded vesting 225,363 42,064 — May 19, 2015 Four-year cliff vesting 127,931 28,445 — July 1, 2015 Immediate vesting on grant date 27,047 1,131 — July 1, 2015 One-year cliff vesting 51,876 9,988 — July 1, 2015 Not applicable — — 3,873 July 1, 2015 Four-year graded vesting 2,244 418 — July 8, 2015 Four-year graded vesting 3,778 692 — July 13, 2015 Four-year graded vesting 1,304 244 — August 3, 2015 Four-year graded vesting 927 173 — August 10, 2015 Four-year graded vesting 1,776 335 — August 24, 2015 Four-year graded vesting 3,737 691 — November 9, 2015 Four-year graded vesting 5,615 1,107 — 1,884,262 350,004 4,713 The fair value of the stock options granted was estimated on the date of grant using a Black-Scholes option valuation model that uses the weighted-average assumptions noted in the following table during the years ended December 31: 2015 2014 2013 Expected volatility 19.51 % 20.53 % 29.27 % Risk-free interest rate 1.29 % 1.48 % 0.70 % Expected term in years 4.5 4.4 4.5 Dividend yield — % — % — % Weighted average grant date fair value per stock option $ 13.58 $ 11.86 $ 15.58 The expected term for a majority of the awards granted was estimated based on studies of historical experience and projected exercise behavior. However, for certain awards granted, for which no historical exercise pattern exists, the expected term was estimated using the simplified method. The risk-free interest rate is based on the yield of U.S. Treasury zero coupon securities with a maturity equal to the expected term of the equity award. The volatility factor is calculated using historical daily closing prices over the most recent period that is commensurate with the expected term of the stock option awards. The volatility factor for stock options granted prior to 2014 was based on the average volatility of the Company's peers as the Company did not have a history of stock price sufficient to cover the expected term of those awards. The volatility factor for stock options granted in 2014 and 2015 was based on the volatility of the Company's stock. The expected dividend yield was based on the Company’s expected annual dividend rate on the date of grant. A summary of options outstanding under the Incentive Plan and the Option Plan and changes during the three years then ended is presented below: Number Weighted Aggregate (In thousands, except for share and per share data) Outstanding at January 1, 2013 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 Granted 1,242,428 $ 59.83 Exercised (1,091,746 ) $ 22.29 $ 43,863 Cancelled or expired (180,312 ) $ 55.23 Outstanding at December 31, 2014 9,205,690 $ 31.11 $ 303,267 Granted 1,884,262 $ 72.20 Exercised (1,739,847 ) $ 23.71 $ 87,008 Cancelled or expired (232,372 ) $ 64.05 Outstanding at December 31, 2015 9,117,733 $ 40.17 $ 334,691 Options exercisable at December 31, 2015 6,541,229 $ 29.81 $ 307,924 Options exercisable at December 31, 2014 7,159,895 $ 24.00 $ 286,728 A summary of the status of the Company’s nonvested options and changes is presented below: Number Weighted Nonvested balance at January 1, 2013 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 Granted 1,242,428 $ 11.86 Vested (1,082,552 ) $ 11.71 Cancelled or expired (180,312 ) $ 13.56 Nonvested balance at December 31, 2014 2,045,795 $ 12.55 Granted 1,884,262 $ 13.58 Vested (1,121,181 ) $ 13.24 Cancelled or expired (232,372 ) $ 13.05 Nonvested balance at December 31, 2015 2,576,504 $ 12.95 Intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the quoted price of Verisk’s common stock as of the reporting date. The aggregate intrinsic value of stock options outstanding and exercisable at December 31, 2015 was $334,691 and $307,924 , respectively. In accordance with ASC 718, excess tax benefit from exercised stock options is recorded as an increase to additional-paid-in capital and a corresponding reduction in taxes payable. This tax benefit is calculated as the excess of the intrinsic value of options exercised in excess of compensation recognized for financial reporting purposes. The amount of the tax benefit that has been realized, as a result of those excess tax benefits, is presented as a financing cash inflow within the accompanying consolidated statements of cash flows. For the years ended December 31, 2015 , 2014 and 2013 , the Company recorded excess tax benefit from exercised stock options of $29,230 , $15,988 and $58,056 , respectively. The Company realized $40,147 , $22,566 and $109,946 of tax benefit within the Company’s tax payments through December 31, 2015 , 2014 and 2013 , respectively.The Company estimates expected forfeitures of equity awards at the date of grant and recognizes compensation expense only for those awards that the Company expects to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Changes in the forfeiture assumptions may impact the total amount of expense ultimately recognized over the requisite service period and may impact the timing of expense recognized over the requisite service period. Stock based compensation expense for 2015 , 2014 and 2013 was $30,542 , $20,253 and $21,087 , respectively. A summary of the status of the restricted stock awarded under the 2013 Incentive Plan and changes is presented below: Number Weighted Outstanding at January 1, 2013 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 Granted 246,003 $ 59.86 Vested (163,280 ) $ 49.94 Forfeited (37,162 ) $ 55.53 Outstanding at December 31, 2014 442,310 $ 56.84 Granted 350,004 $ 72.24 Vested (211,265 ) $ 58.64 Forfeited (47,281 ) $ 63.10 Outstanding at December 31, 2015 533,768 $ 66.25 For the year ended December 31, 2015 , certain employees had restricted stock vesting and covered the aggregate statutory minimum tax withholding of $2,350 through a net settlement of 32,882 shares. The payment of taxes related to the vesting was recorded as a reduction to additional paid-in-capital. This transaction is reflected within "Net share settlement of restricted stock awards" within cash flows from financing activities in the accompanying consolidated statements of cash flows. As of December 31, 2015 , there was $53,536 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the 2013 Incentive Plan and the 2009 Incentive Plan. That cost is expected to be recognized over a weighted-average period of 2.66 years. As of December 31, 2015 , there were 2,576,504 and 531,278 nonvested stock options and restricted stock, respectively, of which 2,125,711 and 441,089 are expected to vest. The total grant date fair value of options vested during the years ended December 31, 2015 , 2014 and 2013 was $16,780 , $12,780 and $16,468 , respectively. The total grant date fair value of restricted stock vested during the year ended December 31, 2015 , 2014 and 2013 was $16,316 , $9,839 and $7,153 , respectively. The Company also offers eligible employees the opportunity to participate in an employee stock purchase plan ("ESPP"). Under the ESPP, participating employees may authorize payroll deductions of up to 20.0% of their regular base salary and up to 50.0% of their short-term incentive compensation, both of which in total may not exceed $25 in any calendar year, to purchase shares of the Company’s common stock at a 5.0% discount of its fair market value at the time of purchase. In accordance with ASC 718, the ESPP is noncompensatory as the purchase discount is 5.0% or less from the fair market value, substantially all employees that meet limited employment qualifications may participate, and it incorporates no option features. During the years ended December 31, 2015 , 2014 and 2013 , the Company issued 25,599 , 26,953 and 27,879 shares of common stock at a weighted average discounted price of $70.27 , $57.98 and $59.62 , respectively. |