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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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26-2994223
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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545 Washington Boulevard Jersey City, NJ
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07310-1686
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Class A common stock $.001 par value
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NASDAQ Global Select Market
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þ
Large accelerated filer
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o
Accelerated filer
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o
Non-accelerated filer
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o
Smaller reporting company
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(Do not check if a smaller reporting company)
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Class
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Shares Outstanding
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Class A common stock $.001 par value
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166,835,574
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Exhibit 10.12
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Exhibit 10.13
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Exhibit 21.1
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Exhibit 23.1
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Exhibit 31.1
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Exhibit 31.2
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Exhibit 32.1
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Item 1.
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Business
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•
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our loss predictions are typically used by P&C insurance and healthcare actuaries, advanced analytics groups and loss control groups to help drive their own assessments of future losses
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•
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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
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•
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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
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•
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our tools to quantify loss are primarily used by claims departments, independent adjustors and contractors.
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•
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quantifying the ultimate cost of repair or reconstruction of damaged or destroyed buildings;
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•
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aiding in the settlement of insurance claims; and
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•
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tracking the process of repair or reconstruction and facilitating communication among insurers, adjusters, contractors and policyholders.
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Item 1A.
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Risk Factors
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•
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changes in the business analytics industry;
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•
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changes in technology;
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•
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our inability to obtain or use state fee schedule or claims data in our insurance solutions;
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•
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saturation of market demand;
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•
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loss of key customers;
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•
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industry consolidation; and
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•
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failure to execute our customer-focused selling approach.
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•
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failing to implement or remediate controls, procedures and policies appropriate for a larger public company at acquired companies that prior to the acquisition lacked such controls, procedures and policies;
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•
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paying more than fair market value for an acquired company or assets;
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•
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failing to integrate the operations and personnel of the acquired businesses in an efficient, timely manner;
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•
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assuming potential liabilities of an acquired company;
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•
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managing the potential disruption to our ongoing business;
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•
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distracting management focus from our core businesses;
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•
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failing to retain management at acquired company;
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•
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difficulty in acquiring suitable businesses, including challenges in predicting the value an acquisition will ultimately contribute to our business;
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•
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possibility of overpaying for acquisitions, particularly those with significant intangible and those that assets derive value using novel tools and/or are involved in niche markets;
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•
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impairing relationships with employees, customers, and strategic partners;
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•
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incurring expenses associated with the amortization of intangible assets particularly for intellectual property and other intangible assets;
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•
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incurring expenses associated with an impairment of all or a portion of goodwill and other intangible assets due to changes in market conditions, weak economies in certain competitive markets, or the failure of certain acquisitions to realize expected benefits; and
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•
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diluting the share value and voting power of existing stockholders.
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•
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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;
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•
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changes in cultural and consumer attitudes to favor further restrictions on information collection and sharing, which may lead to regulations that prevent full utilization of our solutions;
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•
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failure of our solutions to comply with current laws and regulations; and
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•
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failure of our solutions to adapt to changes in the regulatory environment in an efficient, cost-effective manner.
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•
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deterring customers from using our solutions;
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•
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deterring data suppliers from supplying data to us;
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•
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harming our reputation;
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•
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exposing us to liability;
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•
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increasing operating expenses to correct problems caused by the breach;
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•
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affecting our ability to meet customers’ expectations; and/or
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•
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causing inquiry from governmental authorities.
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•
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authorize the issuance of “blank check” preferred stock that could be issued by our board of directors to increase the number of outstanding shares to thwart a takeover attempt;
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•
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prohibit cumulative voting in the election of directors, which would otherwise allow holders of less than a majority of the stock to elect some directors;
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•
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require that vacancies on the board of directors, including newly-created directorships, be filled only by a majority vote of directors then in office;
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•
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limit who may call special meetings of stockholders;
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•
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prohibit stockholder action by written consent, requiring all stockholder actions to be taken at a meeting of the stockholders; and
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•
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establish advance notice requirements for nominating candidates for election to the board of directors or for proposing matters that can be acted upon by stockholders at stockholder meetings.
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Location
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Square Feet
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Lease Expiration Date
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Jersey City, New Jersey
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390,991
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May 31, 2021
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South Jordan, Utah
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105,926
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August 31, 2015
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Orem, Utah
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89,172
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December 31, 2017
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Boston, Massachusetts
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69,806
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November 30, 2020
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North Reading, Massachusetts
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41,200
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June 30, 2015
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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2013
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2012
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||||||||
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High
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Low
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High
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Low
|
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Fourth Quarter
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$
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68.74
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$
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61.27
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$
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51.35
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$
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45.95
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Third Quarter
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$
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66.53
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$
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60.47
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$
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50.94
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$
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46.39
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Second Quarter
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$
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61.29
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$
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57.70
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$
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49.43
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$
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46.34
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First Quarter
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$
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61.62
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$
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52.98
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$
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47.33
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$
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38.98
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Period
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Total Number
of Shares Purchased |
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Average
Price Paid per Share |
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Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
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Approximate Dollar
Value of Shares that May Yet Be Purchased Under the Plans or Programs |
||||
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(in thousands)
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||||
October 1, 2013 through October 31, 2013
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253,676
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$
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65.33
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253,676
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$
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265,539
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November 1, 2013 through November 30, 2013
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1,144,344
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$
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63.13
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1,144,344
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$
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193,296
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December 1, 2013 through December 31, 2013
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426,970
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$
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65.68
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426,970
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$
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165,253
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|
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1,824,990
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|
|
|
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1,824,990
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Item 6.
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Selected Financial Data
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2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
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(In thousands, except for share and per share data)
|
||||||||||||||||||
Revenues:
|
|
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|
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|
|||||
Decision Analytics
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$
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977,427
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$
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828,342
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|
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$
|
639,100
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$
|
461,743
|
|
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$
|
397,501
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Risk Assessment
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|
618,276
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579,506
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552,293
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|
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530,542
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|
|
|
512,672
|
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Revenues
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1,595,703
|
|
|
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1,407,848
|
|
|
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1,191,393
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|
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992,285
|
|
|
|
910,173
|
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Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of revenues
|
|
622,523
|
|
|
|
516,708
|
|
|
|
440,979
|
|
|
|
376,270
|
|
|
|
413,800
|
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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
|
|
|
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
|
|
|
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, 2013, we finalized our plans to sell our mortgage services business. See Note 10. of our consolidated financial statements included in this Annual Report Form 10-K.
|
(3)
|
EBITDA is the financial measure which management uses to evaluate the performance of our segments. “EBITDA” is defined as net income before interest expense, provision for income taxes, depreciation and amortization of fixed and intangible assets. In the second quarter of 2012, we changed our definition of EBITDA such that it only reflects the definition noted and no longer excludes investment income (loss) and realized gain (loss) on available-for-sale securities, net for all periods presented. In addition, this Management’s Discussion and Analysis includes references to EBITDA margin, which is computed as EBITDA divided by revenues from continuing and discontinued operations. See Note 18. of our consolidated financial statements included in this Annual Report Form 10-K.
|
•
|
EBITDA does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
|
▪
|
EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
|
▪
|
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’ equity (deficit), as we intend to reissue shares from treasury stock in the future. For the years ended
December 31, 2013
and
2012
, we repurchased $278.9 million and $162.6 million, respectively, of treasury stock.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
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
|
%
|
|
|
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
|
%
|
|
|
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
|
%
|
|
|
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
|
%
|
|
|
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
|
|
|
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
|
)
|
|
|
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
$9.5 million
have been recorded as liabilities in accordance with ASC 740, which have been omitted from the table above, and we are uncertain as to if or when such amounts may be settled, with the exception of those amounts subject to a statute of limitation. Related to the unrecognized tax benefits, we also have recorded a liability for potential penalties and interest of
$2.6
million.
|
|
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
|
)
|
|
$
|
—
|
|
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
|
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 this Form 10-K.
|
(2)
|
Financial Statement Schedules. See Schedule II. Valuation and Qualifying Accounts and Reserves.
|
(3)
|
Exhibits. See Index to Exhibits in this annual report on Form 10-K.
|
|
|
Verisk Analytics, Inc. Consolidated Financial Statements as of December 31, 2013 and 2012 and for the Years Ended December 31, 2013, 2012 and 2011.
|
|
Financial Statements Schedule
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
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
|
|
|
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
|
|
|
|
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
|
|
|
|
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
|
|
|
|
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
|
|
|
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.
|
|
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
|
|
|
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
|
|
|
MediConnect
|
|
Argus
|
|
Others
|
|
Total
|
||||||||
Accounts receivable
|
$
|
7,077
|
|
|
$
|
12,165
|
|
|
$
|
489
|
|
|
$
|
19,731
|
|
Current assets
|
|
17,238
|
|
|
|
568
|
|
|
|
68
|
|
|
|
17,874
|
|
Fixed assets
|
|
1,075
|
|
|
|
4,994
|
|
|
|
76
|
|
|
|
6,145
|
|
Intangible assets
|
|
159,506
|
|
|
|
179,316
|
|
|
|
9,264
|
|
|
|
348,086
|
|
Goodwill
|
|
222,976
|
|
|
|
277,857
|
|
|
|
29,875
|
|
|
|
530,708
|
|
Other assets
|
|
5,087
|
|
|
|
20,000
|
|
|
|
1,801
|
|
|
|
26,888
|
|
Total assets acquired
|
|
412,959
|
|
|
|
494,900
|
|
|
|
41,573
|
|
|
|
949,432
|
|
Current liabilities
|
|
15,007
|
|
|
|
9,661
|
|
|
|
4,625
|
|
|
|
29,293
|
|
Deferred income taxes
|
|
40,836
|
|
|
|
40,244
|
|
|
|
—
|
|
|
|
81,080
|
|
Other liabilities
|
|
8,711
|
|
|
|
20,000
|
|
|
|
1,809
|
|
|
|
30,520
|
|
Total liabilities assumed
|
|
64,554
|
|
|
|
69,905
|
|
|
|
6,434
|
|
|
|
140,893
|
|
Net assets acquired
|
$
|
348,405
|
|
|
$
|
424,995
|
|
|
$
|
35,139
|
|
|
$
|
808,539
|
|
|
Weighted
Average Useful Life |
|
Total
|
|||
Technology-based
|
|
10 years
|
|
$
|
77,936
|
|
Marketing-related
|
|
5 years
|
|
|
30,331
|
|
Customer-related
|
|
13 years
|
|
|
239,819
|
|
Total intangible assets
|
|
11 years
|
|
$
|
348,086
|
|
|
2012
|
|
2011
|
||||
|
(unaudited)
|
||||||
Pro forma revenues
|
$
|
1,462,677
|
|
|
$
|
1,297,134
|
|
Pro forma net income
|
$
|
321,140
|
|
|
$
|
262,765
|
|
Pro forma basic income per share
|
$
|
1.94
|
|
|
$
|
1.58
|
|
Pro forma diluted income per share
|
$
|
1.87
|
|
|
$
|
1.52
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Revenues from discontinued operations
|
$
|
109,151
|
|
|
$
|
126,472
|
|
|
$
|
140,447
|
|
|
|
|
|
|
|
|
|
|
|||
Income from discontinued operations before income taxes
|
|
10,819
|
|
|
|
19,382
|
|
|
|
32,226
|
|
Provision for income taxes
|
|
(4,753
|
)
|
|
|
(7,703
|
)
|
|
|
(11,924
|
)
|
Income from discontinued operations, net of tax
|
$
|
6,066
|
|
|
$
|
11,679
|
|
|
$
|
20,302
|
|
|
2013
|
||
Accounts receivable, net
|
$
|
15,295
|
|
Income taxes payable
|
|
(3,005
|
)
|
Other current assets
|
|
1,535
|
|
Total current assets held-for-sale
|
$
|
13,825
|
|
|
|
|
|
Fixed assets, net
|
$
|
7,670
|
|
Intangible assets, net
|
|
9,018
|
|
Goodwill
|
|
69,207
|
|
Other assets
|
|
50
|
|
Total noncurrent assets held-for-sale
|
$
|
85,945
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
$
|
8,272
|
|
Fees received in advance
|
|
1,177
|
|
Total current liabilities held-for-sale
|
$
|
9,449
|
|
|
|
|
|
Deferred income taxes, net
|
$
|
3,975
|
|
Other liabilities
|
|
554
|
|
Total noncurrent liabilities held-for-sale
|
$
|
4,529
|
|
|
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
$3,244
that occurred prior to
December 31, 2011
.
|
|
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
|
|
2014
|
$
|
56,630
|
|
2015
|
|
50,714
|
|
2016
|
|
48,883
|
|
2017
|
|
47,980
|
|
2018
|
|
47,234
|
|
2019 and thereafter
|
|
196,177
|
|
Total
|
$
|
447,618
|
|
|
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
|
|
|
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
|
%
|
|
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
|
)
|
Years
|
Amount
|
||
2014-2021
|
$
|
12,916
|
|
2022-2026
|
|
14,345
|
|
2027-2033
|
|
52,478
|
|
|
$
|
79,739
|
|
|
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
|
|
|
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
|
|
|
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
|
|
Year
|
|
Amount
|
|
2014
|
$
|
4,448
|
|
2015
|
|
173,896
|
|
2016
|
|
51,996
|
|
2017
|
|
238
|
|
2018
|
|
53
|
|
2019 and thereafter
|
|
1,050,127
|
|
|
$
|
1,280,758
|
|
|
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
|
|
|
|
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
|
)
|
|
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
|
)
|
|
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
|
|
|
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
|
|
|
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
|
|
|
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
|
)
|
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
|
%
|
|
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 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
|
||||||
|
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
|
|
|
|
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
|
|
|
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
|
|
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
|
|
|
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
|
|
(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
|
|
V
ERISK
A
NALYTICS
, I
NC
.
(Registrant)
|
|
|
|
/
S
/ Scott G. Stephenson
|
|
Scott G. Stephenson
|
|
President and Chief Executive Officer
|
Signature
|
|
Capacity
|
|
|
|
/S/ SCOTT G. STEPHENSON
|
|
President and Chief Executive Officer (principal executive officer and director)
|
Scott G. Stephenson
|
|
|
|
|
|
/S/ MARK V. ANQUILLARE
|
|
Executive Vice President and Chief Financial Officer (principal financial officer and principal accounting officer)
|
Mark V. Anquillare
|
|
|
|
|
|
/S/ FRANK J. COYNE
|
|
Non- Executive Chairman of the Board of Directors
|
Frank J. Coyne
|
|
|
|
|
|
/
S
/ J. H
YATT
B
ROWN
|
|
Director
|
J. Hyatt Brown
|
|
|
|
|
|
/
S
/ G
LEN
A. D
ELL
|
|
Director
|
Glen A. Dell
|
|
|
|
|
|
/
S
/ C
HRISTOPHER
M. F
OSKETT
|
|
Director
|
Christopher M. Foskett
|
|
|
|
|
|
/
S
/ C
ONSTANTINE
P. I
ORDANOU
|
|
Director
|
Constantine P. Iordanou
|
|
|
|
|
|
/
S
/ J
OHN
F. L
EHMAN
, J
R
.
|
|
Director
|
John F. Lehman, Jr.
|
|
|
|
|
|
/S/ SAMUEL G. LISS
|
|
Director
|
Samuel G. Liss
|
|
|
|
|
|
/S/ ANDREW G. MILLS
|
|
Director
|
Andrew G. Mills
|
|
|
|
|
|
/S/ THOMAS F. MOTAMED
|
|
Director
|
Thomas F. Motamed
|
|
|
|
|
|
/S/ THERESE M. VAUGHAN
|
|
Director
|
Therese M. Vaughan
|
|
|
|
|
|
/S/ DAVID B. WRIGHT
|
|
Director
|
David B. Wright
|
|
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.
|
|
For purposes of this Section 6.6, payments scheduled to be made in the form of an annuity will be treated as being scheduled to be made on the date that the first annuity payment is scheduled to be made (i.e., the annuity will be treated as an entitlement to a single payment for purposes of Section 409A).
|
a)
|
The claimant must file with the Plan Administrator a written notice of appeal of the denial, within sixty (60) days of notification by the Plan Administrator of such denial, setting forth all of the facts upon which the appeal is based.
|
d)
|
The Plan Administrator will render a determination to the claimant upon the appealed claim accompanied by a written statement as to the reasons therefore within thirty (30) days after the date on whi
c
h the claimant presents his oral or written presentation.
|
|
INSURANCE SERVICES OFFICE, INC.
|
|
|
By:
|
/s/ FRANK J. COYNE
|
|
Frank J. Coyne
|
|
Chairman, President and Chief Executive
|
|
Officer
|
|
INSURANCE SERVICES OFFICE, INC.
|
|
|
By:
|
/s/ FRANK J. COYNE
|
|
Chairman and Chief Executive Officer
|
TABLE OF CONTENTS
Section
|
|
PREAMBLE
|
|
ARTICLE 1 - DEFINITIONS
|
|
1.01 Account
|
|
1.02 Aggregate Contributions
|
|
1.03 Beneficiary
|
|
1.04 Board
|
|
1.05 CEO
|
|
1.06 Change in Payment Election
|
|
1.07 Change in Payment Election Form
|
|
1.08 Code
|
|
1.09 Effective Date
|
|
1.10 Eligible Employee
|
|
1.11 Employee Contributions Sub-account
|
|
1.12 Employer
|
|
1.13 ERISA
|
|
1.14 Excess Matching Contributions
|
|
1.15 Excess Matching Contributions Sub-account
|
|
1.16 Excess Salary R
e
duction Contribut
i
ons
|
|
1.17 Grandfathered Am
o
unt
|
|
1.18 ISO
|
|
1.19 Initia
l
Election Form
|
|
1.20 Participant
|
|
1.21 Plan
|
|
1.22 Plan Administrator
|
|
1.23 Plan Year
|
|
1.24 Savings Plan
|
|
1
.
25 Savings Pl
a
n L
i
mits
|
|
1.26 Section 409A
|
|
1.27 Section 409A Amount
|
|
1.28 Separation from Servic
e
|
|
1.2
9
Unforeseeable
E
mergency
|
|
1.30 Voluntary Basic Employee Contribution
s
|
|
1.31 Voluntary Supplemental Employee Contributions
|
|
ARTICLE 2 - PARTICIPATION
|
|
2.01 When Participat
i
on Begins
|
|
2.02 Payment El
e
ctions
|
|
ARTICLE 3 - CONTRIBUTIONS
|
|
3.01
|
Determination o
f
Cont
r
ibution
s
|
|
3.02
|
Account
s
and C
r
edits to Accounts
|
|
3.03
|
Emplo
y
er Cont
r
ibutions
|
|
3.04
|
Deemed Part
i
cipant Inv
e
stm
en
t Allocation
|
|
3.05
|
Beneficiaries
|
|
3.06
|
Assignments not P
er
m
i
tted
|
|
ARTICLE
|
4 - VESTING
|
|
ARTICLE
|
5 - LIMITATIONS
|
|
5.01
|
Type of Plan
|
|
ARTICLE
|
6 - PAYMENT O
F BENE
F
ITS
|
|
6.01
|
Distributions
|
|
6.02
|
Form of Di
s
tr
i
buti
o
n
s
|
|
6.03
|
A
mending the T
i
m
e
and
F
orm
o
f Di
st
ribution
|
|
6.04
|
Hard
s
h
i
p Dis
t
r
i
bu
t
io
ns
|
|
6.05
|
S
i
x
-Month
Wai
t
|
|
ARTICLE
|
7
-
A
DMINISTR
A
TIO
N AN
D
CLA
I
M
PROC
E
D
U
R
ES
|
|
7.01
|
Admini
st
r
a
tion
|
|
7.02
|
General Power
|
|
7.03
|
Records
|
|
7.04
|
Insurance
|
|
7.05
|
Plan Adminis
t
r
at
o
r
D
isc
r
e
tion
|
|
7.06
|
Applications
|
|
7.07
|
Information an
d
P
ro
of
|
|
7.08
|
Right of App
e
al
|
|
ARTICLE
|
8 -
A
MENDM
EN
T,
TE
R
MINAT
IO
N AND ME
RGER
|
|
8.01
|
A
m
e
ndm
e
nt
|
|
8.02
|
Termination
|
|
8.03
|
Merger
|
|
ARTICLE
|
9
- MI
S
C
E
LL
ANE
O
US
|
|
9.01
|
Lim
i
t
a
tion
s
on L
i
abili
ty
|
|
9.02
|
No Contract
|
|
9.03
|
Applicable Law
|
|
9.04
|
Severability
|
|
9.05
|
Interpretation
|
|
9.06
|
No Alienation of B
e
n
e
fit
s
|
|
9.07
|
Withholding of Taxes
|
|
9.08
|
Limitation on Participant's Rights
|
|
(
a)
|
Typ
es
of Co
n
tr
i
but
i
on
s
.
T
he
f
oll
owi
n
g
t
y
p
es
of
c
o
ntri
buti
o
n
s
ma
y
b
e ma
de t
o
th
e
Pl
an:
E
xce
ss S
ala
ry Redu
c
tion C
o
ntribu
t
i
o
n
s
and
E
xces
s
Mat
c
hin
g
Con
tr
ib
u
tions
.
The
E
m
p
loyer s
ha
ll m
ak
e Exce
s
s M
at
chin
g C
ontribu
t
i
o
ns t
o t
h
e
Pl
an
on b
e
h
a
l
f of
P
artici
p
an
ts
i
n a
cc
o
rd
ance w
ith
t
he term
s of
the Pl
a
n an
d the
S
a
v
i
n
g
s Pla
n
.
|
(
b
)
|
Dete
rmi
nat
i
on
of
E
x
c
e
s
s
C
o
n
tr
ibu
t
i
o
n
s
. T
he Plan Adminis
trato
r sh
a
ll determ
i
n
e
th
e
amount of E
xcess
Sala
ry
Reduc
t
ion Contribu
t
ions and Ex
c
ess Match
i
n
g
Con
tr
ibutions
fo
r each
P
l
a
n Ye
ar.
|
(
c)
|
Ti
m
i
ng o
f
Cont
ri
bution
Ele
c
t
ions
.
Exc
ep
t as
oth
erw
i
s
e pr
ovi
d
e
d und
er
Article
2
,
P
art
ici
p
ants m
a
y ele
ct,
no late
r t
han the Decembe
r
31st imm
e
diately befor
e
th
e
be
g
i
nni
ng o
f
th
e Plan
Y
ear fo
r w
hich the
e
lection i
s
to become effective, or b
y
such
ear
li
er
d
ate a
s
t
h
e
Pla
n Ad
mini
s
t
ra
tor ma
y e
s
ta
bli
s
h fo
r
adm
i
ni
s
tr
at
i
ve
re
aso
ns, to m
ak
e E
xcess
S
a
l
ary
Redu
c
ti
on
C
o
nt
r
ibut
io
n
s
.
Volunt
ary
B
asic
Empl
o
yee Contributi
o
n
s
and Voluntary Supplem
en
tal Em
p
loyee
Co
ntributions are n
o
t p
e
rmi
tte
d for p
e
ri
o
ds a
ft
er D
ec
emb
e
r 31
,
20
06
.
|
(a)
|
Ce
rtain Exce
ss
P
a
ym
e
nt
s
:
With
res
p
e
ct t
o
Grand
fathered Am
ount
s
onl
y, if
a
t any t
i
me
an
y
per
so
n
has rec
ei
ve
d p
ayments i
n exce
ss o
f
tho
s
e that h
e
wa
s
entitled to receiv
e as
o
f
that
d
ate,
the Pl
an Admi
ni
s
t
rator
m
ay
wi
thhold
from f
u
ture
p
ayme
n
ts
du
e to s
u
c
h p
e
r
s
on
o
r h
is
B
e
n
e
fi
ci
ar
y suc
h
amounts as
ar
e
n
ec
ess
a
ry to re
imbur
s
e th
e Emp
l
oy
er f
o
r su
c
h
exce
ss
p
ay
ments
.
|
(b
)
|
D
o
mestic R
e
l
a
t
io
n
s
Order.
Ben
efi
t
s
that ot
herwise wo
uld be p
a
id to t
h
e
Participant o
r
hi
s Be
n
e
ficiary b
ut fo
r th
e
requir
e
m
en
ts
of a
qualifi
ed domest
i
c re
l
a
tions
o
r
der
(
QDR
O
)
within
t
h
e mea
ning of
Co
d
e S
ec
t
i
on 4
1
4(p) and
E
RISA Sect
i
o
n 20
6(
d
) that ha
s
b
ee
n ac
c
e
p
t
ed by t
h
e
Sa
v
in
gs Plan as su
c
h shall
i
n
st
e
ad be
p
a
i
d
t
o t
he
"
alt
ernate
p
a
y
e
e o
r
p
aye
es
"
n
am
e
d in
such orde
r
i
n
accordanc
e
with
th
e te
rms of such o
r
d
e
r
.
|
(a)
|
In
Gene
r
a
l.
No
n
e of t
h
e
provisio
n
s
of
P
a
rts 2 or 3 o
f
Ti
t
l
e
I
o
f E
R
IS
A s
hall
a
pp
l
y
to
th
e
Pl
an,
in
cl
ud
i
n
g
,
b
ut
n
ot
l
i
mit
e
d
to
,
E
RIS
A's
m
i
n
imum st
a
n
dards co
n
c
e
rn
i
n
g
part
i
c
i
p
a
t
i
o
n
, c
o
vera
g
e
,
ve
s
t
in
g an
d
fundin
g
.
|
(
b
)
|
Form
s
of Paym
e
nt
. Pa
y
m
e
n
ts of be
n
efi
t
s w
ill b
e
made d
i
r
e
ctly to Parti
c
i
pan
t
s o
r B
e
nefic
i
ari
es
a
n
d n
o s
t
a
tuto
r
y
form
s
,
w
a
i
ve
r
s or e
l
ectio
n
s w
ill
b
e
r
e
qu
ire
d
.
B
e
n
e
fi
ts
h
ere
un
d
e
r
s
h
all be pa
id
pur
s
u
ant to Art
i
cl
e 6 and
,
w
i
t
h
r
es
p
ec
t t
o
G
r
a
n
dfathe
r
ed Am
o
un
t
s
,
in
a
ccord
a
n
ce
w
i
t
h
the
P
art
i
cipant
's
m
o
s
t
r
e
c
e
n
tl
y
c
omp
l
e
t
e
d Ini
ti
a
l
E
l
ec
t
i
o
n
F
orm
.
|
(a)
|
With respect to Grandf
a
th
e
red Am
o
unts, di
s
tribu
t
ion of
a
ll Grandfath
e
r
e
d Am
o
unts cr
e
di
t
ed to the A
cc
ount of th
e
Participant shall comm
e
nce or b
e ma
de
,
as
a
pplicabl
e,
within
s
ixt
y (
60
)
day
s
of su
c
h Partic
i
pan
t's
terminati
o
n
o
f employ
m
ent. Notwiths
t
anding the foregoi
n
g
,
th
e
Particip
a
nt ma
y
elec
t
, in accordance with procedur
e
s adopted by the Plan Admin
istra
tor, that s
u
ch distribution
s
hall comm
e
n
c
e or be mad
e
,
as
appli
ca
b
l
e
,
within
s
i
xt
y (60) d
a
y
s
o
f
an
y
January 1
s
t
,
or if earli
e
r
,
the dat
e
of
s
u
c
h P
artici
pant
's
t
e
rmination
fro
m
e
mployment
,
a
s
s
pecified by the Participant on th
e
Initia
l
El
e
ct
io
n Fo
r
m or th
e
Change
i
n P
a
yment Election Fo
rm
.
Unless
o
th
erw
ise determin
e
d by the Plan Administrator
,
elections und
e
r this S
e
ction 6
.
01
(
a
)
mu
s
t be ma
d
e
at
lea
s
t
twelv
e (1
2
) m
o
nt
h
s
b
ef
or
e
the app
l
icab
l
e distribution would occur
i
n th
e a
b
s
ence of
s
u
c
h election.
|
(b)
|
W
i
th respect t
o
Section 409A Amount
s, s
ubject to
Se
ction 6
.
05, di
s
tribution o
f a
ll S
e
ction 409A Amounts cred
i
ted to the A
cc
ount o
f t
h
e
P
a
rticipan
t sha
ll
c
omm
e
n
c
e
o
r b
e
made
, as a
pp
l
icabl
e
,
w
ithin sixty (
6
0
)
da
ys of s
u
c
h Parti
c
ipan
t
'
s
Separ
a
tion from S
e
rvice
.
Notwith
s
tanding the
f
oregoing
,
th
e
Part
i
cipant m
ay
e
l
e
c
t
,
in
a
ccordance with proc
e
dures adop
t
ed by the Plan Administrat
o
r
an
d subj
ect to
S
ec
tion 6.05
,
that such di
s
tribution
s
h
a
ll
c
omm
e
n
c
e o
r b
e made, as a
pp
l
i
cab
l
e
,
w
ith
i
n
s
i
x
ty
(6
0) da
y
s
of
an
y
Janu
ary
1
s
t,
or
i
f e
arli
e
r,
t
h
e
d
a
t
e
o
f s
u
c
h Parti
c
ipant's Separation
fr
om
Se
rvice
,
a
s s
p
e
cifi
e
d b
y
th
e
Pa
rt
i
c
ip
an
t
o
n th
e
Initi
a
l
E
lection Form or the C
h
an
g
e in Paym
e
nt
E
lectio
n
F
orm.
|
(c)
|
Not
w
ithstandin
g
the f
o
reg
o
ing
,
the di
s
tribut
i
on o
f
th
e P
art
icipant's Acc
ou
n
t
,
if s
u
c
h di
s
tributi
o
n h
a
s not
c
omm
ence
d
ear
li
e
r p
urs
u
a
nt
t
o S
ect
i
o
n
6
.
01
(a) o
r
|
(
a)
|
With resp
e
ct to G
r
and
f
ath
e
r
ed
Amount
s
,
the P
l
an Admin
i
s
t
r
a
t
o
r
m
a
y
(bu
t
n
e
e
d no
t
) p
e
rmit th
e
P
art
i
cip
a
nt to
ma
ke an
e
l
e
c
t
i
on
,
in
acc
ordan
ce w
i
t
h pro
ce
d
u
r
es
e
s
t
a
b
l
i
s
hed b
y
the Pl
an
Admini
s
tr
ato
r
a
nd on a Ch
a
n
ge in Pa
y
m
e
nt
E
l
e
c
t
i
o
n F
orm ap
p
roved by t
h
e
Plan
A
dmini
s
tr
ato
r
,
a
t l
e
as
t t
w
e
l
v
e (
1
2
)
m
o
n
t
h
s
be
fore t
h
e amo
un
ts
would
o
th
e
rw
i
s
e
b
e
co
m
e
p
aya
bl
e
under Se
c
ti
o
n
6
.
0
1
,
to c
han
g
e
t
h
e
t
i
me
at which such payments would commence (or be made, a
s
applicabl
e
) under Section 6.01 and the form in whi
c
h they would be paid under Section 6.0
2
. Such
e
lection is herein
a
fter referred to a
s a
"
C
hange in P
ay
m
ent El
ection."
|
(b
)
|
With respect t
o
S
e
ction
4
09A Am
o
unt
s,
a Participant
wi
ll be permitted to m
ake
an election to chan
g
e the
t
ime at wh
ic
h his Account is p
aya
bl
e
under Se
c
tion
6.
01 and/or the form i
n
whi
c
h his Accoun
t is
payable un
der
Sect
i
on 6.02 (s
uc
h
elec
t
i
on to be referred to
as
a "Chang
e
in Payment El
e
ctio
n
"
)
only if the f
o
ll
ow
in
g
conditions are
sat
isfied:
|
(i
)
|
the electio
n
t
o
change the
t
im
e
or form
of
p
ay
ment do
e
s not b
eco
m
e
effe
c
ti
ve
until
t
h
e
dat
e
tha
t
i
s o
ne
y
ear after
t
h
e
d
a
t
e
on
w
hich
t
h
e e
l
ec
ti
o
n to chan
ge
i
s
made
;
|
(ii)
|
except
w
ith respect to an
y
p
a
yment to b
e
m
a
d
e
due
t
o
U
nfor
eseea
ble Emer
ge
nc
y
or the death o
f t
he Participant,
th
e
t
im
e
o
r
form
o
f p
ay
m
e
nt,
as
chan
g
ed
,
d
efe
r
s
paym
e
nt
of t
h
e
benefit un
til a
t l
e
a
st
fi
v
e
y
e
ars
l
at
er
t
h
an
when th
e
b
e
n
e
fit oth
e
r
w
i
se wo
uld have b
ee
n p
a
i
d o
r comm
e
n
ced to
be paid
;
and
|
(
iii)
|
with
res
p
e
ct to any paymen
t t
h
a
t is to b
e
m
a
d
e u
p
o
n a fi
x
ed d
a
t
e
or schedul
e
of d
a
tes
,
the el
e
cti
o
n to chan
ge
t
h
e tim
e or
form of p
a
yme
n
t is m
a
d
e
n
o
l
ess t
h
an tw
elve
(
1
2
)
mo
nths b
e
for
e
the date t
h
at
su
c
h
pa
y
m
e
nt
otherwi
s
e
was s
ch
e
d
u
led
to
b
e
m
ade
.
|
(c
)
|
No
twith
s
tan
di
n
g a
n
y
oth
e
r p
rovis
i
o
n o
f the
Pl
an, once a C
h
a
n
ge i
n
Paymen
t
E
le
c
t
io
n ha
s
b
een
m
a
d
e,
pu
rs
u
ant to S
e
c
ti
o
n
6.
0
3(a) or 6
.
0
3(b),
th
e
P
art
i
c
i
pan
t
s
h
a
ll n
ot
b
e
p
e
rmi
tte
d
t
o
m
a
k
e
an
y a
d
d
iti
o
nal
C
h
ange i
n
Payme
nt
E
l
ect
i
o
n
w
i
th res
pe
c
t
to any
A
c
c
o
un
t
b
a
l
a
n
ces acc
ru
ed
throu
g
h th
e
d
ate of s
uch
C
h
ange
in Paym
e
nt Ele
ct
i
on
.
H
o
wev
er
, t
he P
art
ici
pant
can mak
e furthe
r
C
h
a
n
ge
in
Payment
E
l
e
ctions to
c
h
ang
e the time or
ma
nne
r
o
f
p
ay
m
e
nt
s of
an
y
amo
u
nt i
n t
he
P
articipan
t
's Ac
count
th
a
t h
a
s
a
c
c
ru
ed s
in
c
e th
e da
t
e
of s
u
ch Chan
g
e
i
n Payment E
l
ec
t
io
n
.
Wi
t
h
res
p
e
c
t
to Gran
df
at
h
e
r
ed
Am
o
un
ts, if
n
o
futur
e Change
i
n Pay
m
e
n
t Ele
cti
on i
s
e
x
ec
ut
e
d b
y
th
e
Part
i
cipan
t
,
t
h
e en
ti
re
A
ccou
n
t wi
ll
be
di
st
rib
ut
ed t
o
th
e
P
art
i
c
ipan
t
in
acco
rd
ance wi
th th
e
t
e
rm
s of
th
e o
ri
g
in
a
l
C
h
ange
in P
a
y
me
nt
E
l
ec
ti
o
n
,
if
a
ny
.
|
(a)
|
The Plan Adm
i
nistrator sh
a
ll
,
subject
t
o any restric
t
ion
s
impo
s
e
d
b
y a
pplicabl
e
l
a
w
,
be the
s
ol
e
judge o
f
the
s
tandard o
f
proof re
q
ui
re
d
i
n an
y
c
ase, as w
ell
a
s th
e
ap
p
lic
a
tion and interpretat
io
n of the Plan
,
a
nd deci
si
on
s
o
f
the Pl
an A
dmini
s
tr
a
t
o
r shall b
e
final
an
d binding on
a
ll parties
.
T
hi
s
Section
7
.05(
a)
is subj
e
ct to Se
c
tion 7
.
08.
|
(b
)
|
T
h
e P
lan Admini
st
ra
t
or shall h
av
e th
e ex
clu
s
i
ve
ri
g
h
t
and
d
i
sc
r
et
i
o
nar
y
a
uthorit
y
t
o
c
o
n
st
rue th
e te
rm
s
o
f t
h
e
Pl
an,
t
o
resol
ve an
y
a
mbi
g
ui
t
ies,
a
n
d to
determin
e a
n
y
question
s
which m
a
y ari
s
e in connecti
o
n with t
he
Plan
'
s
a
pplic
at
ion
o
r adminis
t
r
at
ion includin
g,
but not limited to
,
de
te
rmina
t
ion o
f
eli
g
ibili
ty f
o
r
benefits and
t
he amount
of any
benefit.
|
(c)
|
Wh
er
e
v
er in
t
h
e
Plan this Plan Administra
t
or i
s
gi
ve
n
di
s
cr
e
tion
a
r
y
pow
e
r
s,
th
e
Plan Administrator shall e
x
ercise such pow
e
rs in
a
uniform and n
o
ndiscrimin
atory
manner.
|
(a)
|
The claimant must file with the P
l
an Administra
t
or a written n
o
t
ic
e of appe
a
l of th
e
denia
l
, within sixty (
6
0) days of no
tifi
cation by
t
he Plan Admini
str
ator
of suc
h d
e
ni
a
l
,
settin
g fo
rth all of th
e
fact
s
upon
w
hich the app
e
al i
s
b
ase
d.
|
(b)
|
The Plan Administrator will, within thirty (30) da
y
s of rec
e
ipt of a notic
e o
f
a
pp
e
al, establi
s
h a hearin
g
date on which th
e
cl
a
imant ma
y
make an o
ra
l pre
se
ntation in
s
upport of
t
h
e
appeal if the claim
ant s
o desire
s and
b
y w
h
ich t
he cl
a
imant mu
s
t ha
v
e submitt
e
d al
l
wr
i
tt
e
n materi
a
ls
su
p
p
ort
i
n
g t
he claim.
T
h
e
Plan Adm
i
nistr
a
tor will pr
o
v
i
de the cl
a
imant with prompt notice
of s
u
c
h dat
e
.
|
(c)
|
Th
e
Plan Administ
r
ator
w
ill consid
er the
m
e
rit
s of the
cl
a
im
a
n
t
'
s writt
en
a
n
d
o
ra
l pr
es
ent
at
ion
s
,
the facts or
ev
i
de
nce in
s
up
po
rt
of the
d
e
nial of p
a
y
me
n
ts
,
a
n
d s
u
c
h oth
er
fa
c
ts and cir
c
umstan
ces as
the Pl
an A
dmini
s
tr
ator
d
ee
m
s re
l
evan
t.
|
(d)
|
T
h
e
Plan Administr
a
tor will render
a
determin
at
ion to
t
he cl
a
im
an
t up
o
n
t
he
a
pp
ea
led c
l
a
im accompanied b
y
a
wr
i
tte
n s
t
a
t
ement
as
to
th
e r
easo
ns
t
he
refor
e
w
i
t
hin thi
rty
(30) d
ays
after
t
h
e
d
ate o
n
w
hich the cl
a
iman
t p
r
es
en
ts
hi
s o
r
a
l
or
written pre
s
en
tat
i
o
n
.
|
|
INSURANCE SERVICES OFFICE, INC
|
|
|
LIST OF SUBSIDIARIES OF THE REGISTRANT
|
||
|
|
|
NAME OF SUBSIDIARY
|
|
JURISDICTION
|
|
|
|
Insurance Services Office, Inc.
|
|
Delaware
|
Xactware Solutions, Inc.
|
|
Delaware
|
ISO Services, Inc.
|
|
Delaware
|
AIR Worldwide Corporation
|
|
Delaware
|
Verisk Health, Inc.
|
|
Delaware
|
MediConnect Global, Inc.
|
|
Delaware
|
Argus Information and Advisory Services, LLC.
|
|
New York
|
|
|
|
/s/ Scott G. Stephenson
|
|
Scott G. Stephenson
|
|
President
|
|
and Chief Executive Officer
|
|
|
|
/s/ Mark V. Anquillare
|
|
Mark V. Anquillare
|
|
Executive Vice President
and Chief Financial Officer
|
|
|
|
|
|
/s/ Scott G. Stephenson
|
|
|
Scott G. Stephenson
|
|
|
President and Chief Executive Officer
|
|
|
|
Date: February 25, 2014
|
|
|
|
|
|
|
|
/s/ Mark V. Anquillare
|
|
|
Mark V. Anquillare
|
|
|
Executive Vice President
and Chief Financial Officer
|