10-Q 1 vrsk20220630_10q.htm FORM 10-Q vrsk20220630_10q.htm
0001442145 Verisk Analytics, Inc. false --12-31 Q2 2022 18.3 21.3 0.001 0.001 2,000,000,000 2,000,000,000 544,003,038 544,003,038 158,257,098 161,651,639 385,745,940 382,351,399 1,561,149 869,336 1,354 68,098 42,394 10,303 834,012 182,877 99,321 18,133 11,541 4,613,710 1,034,078 49,803 115,289 95,574 19,999 1,394,538 298,161 181,530 55,816 23,640 17.4 1.9 17.4 5.7 0 86.8 0 0 0.0 4.125 4.125 4.125 4.125 0.1 0.4 3.625 3.625 10.1 10.3 4.125 4.125 10.1 10.9 4.0 4.0 3.5 4.1 5.5 5.5 4.0 4.1 2,700.0 2,000,000,000 0 0 0.31 10 3 1 4 4 4 3 These accumulated other comprehensive loss components, before tax, are included under "Cost of revenues" and "Selling, general and administrative" in our accompanying condensed consolidated statements of operations. These components are also included in the computation of net periodic (benefit) cost (see Note 13. Pension and Postretirement Benefits for additional details). See Note 6. Acquisitions for more information. Includes estimated performance achievement See Note 7. Dispositions for more information. Included in "Depreciation and amortization of fixed assets" in our accompanying condensed consolidated statements of operations Included in "Interest expense" in our accompanying condensed consolidated statements of operations Refer to Note 5. Leases Refer to Note 11. Stockholders' Equity for discussion related to quarterly cash dividends declared per share Included in "Cost of revenues" and "Selling, general and administrative" expenses in our accompanying condensed consolidated statements of operations 00014421452022-01-012022-06-30 xbrli:shares 00014421452022-07-29 thunderdome:item iso4217:USD 00014421452022-06-30 00014421452021-12-31 iso4217:USDxbrli:shares 00014421452022-04-012022-06-30 00014421452021-04-012021-06-30 00014421452021-01-012021-06-30 0001442145us-gaap:CommonStockMember2022-03-31 0001442145us-gaap:AdditionalPaidInCapitalMember2022-03-31 0001442145us-gaap:TreasuryStockMember2022-03-31 0001442145us-gaap:RetainedEarningsMember2022-03-31 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-31 0001442145us-gaap:ParentMember2022-03-31 0001442145us-gaap:NoncontrollingInterestMember2022-03-31 00014421452022-03-31 0001442145us-gaap:CommonStockMember2022-04-012022-06-30 0001442145us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-30 0001442145us-gaap:TreasuryStockMember2022-04-012022-06-30 0001442145us-gaap:RetainedEarningsMember2022-04-012022-06-30 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-30 0001442145us-gaap:ParentMember2022-04-012022-06-30 0001442145us-gaap:NoncontrollingInterestMember2022-04-012022-06-30 0001442145us-gaap:EmployeeStockOptionMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:CommonStockMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:TreasuryStockMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:RetainedEarningsMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:ParentMember2022-04-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:NoncontrollingInterestMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:TreasuryStockMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:ParentMember2022-04-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:NoncontrollingInterestMember2022-04-012022-06-30 0001442145us-gaap:CommonStockMember2022-06-30 0001442145us-gaap:AdditionalPaidInCapitalMember2022-06-30 0001442145us-gaap:TreasuryStockMember2022-06-30 0001442145us-gaap:RetainedEarningsMember2022-06-30 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-30 0001442145us-gaap:ParentMember2022-06-30 0001442145us-gaap:NoncontrollingInterestMember2022-06-30 0001442145us-gaap:CommonStockMember2021-03-31 0001442145us-gaap:AdditionalPaidInCapitalMember2021-03-31 0001442145us-gaap:TreasuryStockMember2021-03-31 0001442145us-gaap:RetainedEarningsMember2021-03-31 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-31 0001442145us-gaap:ParentMember2021-03-31 0001442145us-gaap:NoncontrollingInterestMember2021-03-31 00014421452021-03-31 0001442145us-gaap:CommonStockMember2021-04-012021-06-30 0001442145us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-30 0001442145us-gaap:TreasuryStockMember2021-04-012021-06-30 0001442145us-gaap:RetainedEarningsMember2021-04-012021-06-30 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-30 0001442145us-gaap:ParentMember2021-04-012021-06-30 0001442145us-gaap:NoncontrollingInterestMember2021-04-012021-06-30 0001442145us-gaap:EmployeeStockOptionMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:TreasuryStockMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:ParentMember2021-04-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:NoncontrollingInterestMember2021-04-012021-06-30 0001442145us-gaap:CommonStockMember2021-06-30 0001442145us-gaap:AdditionalPaidInCapitalMember2021-06-30 0001442145us-gaap:TreasuryStockMember2021-06-30 0001442145us-gaap:RetainedEarningsMember2021-06-30 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-30 0001442145us-gaap:ParentMember2021-06-30 0001442145us-gaap:NoncontrollingInterestMember2021-06-30 00014421452021-06-30 0001442145us-gaap:CommonStockMember2021-12-31 0001442145us-gaap:AdditionalPaidInCapitalMember2021-12-31 0001442145us-gaap:TreasuryStockMember2021-12-31 0001442145us-gaap:RetainedEarningsMember2021-12-31 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-31 0001442145us-gaap:ParentMember2021-12-31 0001442145us-gaap:NoncontrollingInterestMember2021-12-31 0001442145us-gaap:CommonStockMember2022-01-012022-06-30 0001442145us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-30 0001442145us-gaap:TreasuryStockMember2022-01-012022-06-30 0001442145us-gaap:RetainedEarningsMember2022-01-012022-06-30 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-30 0001442145us-gaap:ParentMember2022-01-012022-06-30 0001442145us-gaap:NoncontrollingInterestMember2022-01-012022-06-30 0001442145us-gaap:EmployeeStockOptionMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:CommonStockMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:TreasuryStockMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:RetainedEarningsMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:ParentMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMemberus-gaap:NoncontrollingInterestMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:TreasuryStockMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:ParentMember2022-01-012022-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:NoncontrollingInterestMember2022-01-012022-06-30 0001442145us-gaap:CommonStockMember2020-12-31 0001442145us-gaap:AdditionalPaidInCapitalMember2020-12-31 0001442145us-gaap:TreasuryStockMember2020-12-31 0001442145us-gaap:RetainedEarningsMember2020-12-31 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-31 0001442145us-gaap:ParentMember2020-12-31 0001442145us-gaap:NoncontrollingInterestMember2020-12-31 00014421452020-12-31 0001442145us-gaap:CommonStockMember2021-01-012021-06-30 0001442145us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-30 0001442145us-gaap:TreasuryStockMember2021-01-012021-06-30 0001442145us-gaap:RetainedEarningsMember2021-01-012021-06-30 0001442145us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-30 0001442145us-gaap:ParentMember2021-01-012021-06-30 0001442145us-gaap:NoncontrollingInterestMember2021-01-012021-06-30 0001442145us-gaap:EmployeeStockOptionMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:TreasuryStockMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:RetainedEarningsMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:ParentMember2021-01-012021-06-30 0001442145us-gaap:RestrictedStockMemberus-gaap:NoncontrollingInterestMember2021-01-012021-06-30 0001442145vrsk:UnderwritingAndRatingMembervrsk:InsuranceMember2022-04-012022-06-30 0001442145vrsk:UnderwritingAndRatingMembervrsk:InsuranceMember2021-04-012021-06-30 0001442145vrsk:UnderwritingAndRatingMembervrsk:InsuranceMember2022-01-012022-06-30 0001442145vrsk:UnderwritingAndRatingMembervrsk:InsuranceMember2021-01-012021-06-30 0001442145vrsk:ClaimsMembervrsk:InsuranceMember2022-04-012022-06-30 0001442145vrsk:ClaimsMembervrsk:InsuranceMember2021-04-012021-06-30 0001442145vrsk:ClaimsMembervrsk:InsuranceMember2022-01-012022-06-30 0001442145vrsk:ClaimsMembervrsk:InsuranceMember2021-01-012021-06-30 0001442145vrsk:InsuranceMember2022-04-012022-06-30 0001442145vrsk:InsuranceMember2021-04-012021-06-30 0001442145vrsk:InsuranceMember2022-01-012022-06-30 0001442145vrsk:InsuranceMember2021-01-012021-06-30 0001442145vrsk:EnergyAndSpecializedMarketsMember2022-04-012022-06-30 0001442145vrsk:EnergyAndSpecializedMarketsMember2021-04-012021-06-30 0001442145vrsk:EnergyAndSpecializedMarketsMember2022-01-012022-06-30 0001442145vrsk:EnergyAndSpecializedMarketsMember2021-01-012021-06-30 0001442145vrsk:FinancialServicesMember2022-04-012022-06-30 0001442145vrsk:FinancialServicesMember2021-04-012021-06-30 0001442145vrsk:FinancialServicesMember2022-01-012022-06-30 0001442145vrsk:FinancialServicesMember2021-01-012021-06-30 0001442145country:US2022-04-012022-06-30 0001442145country:US2021-04-012021-06-30 0001442145country:US2022-01-012022-06-30 0001442145country:US2021-01-012021-06-30 0001442145country:GB2022-04-012022-06-30 0001442145country:GB2021-04-012021-06-30 0001442145country:GB2022-01-012022-06-30 0001442145country:GB2021-01-012021-06-30 0001442145vrsk:OtherCountriesMember2022-04-012022-06-30 0001442145vrsk:OtherCountriesMember2021-04-012021-06-30 0001442145vrsk:OtherCountriesMember2022-01-012022-06-30 0001442145vrsk:OtherCountriesMember2021-01-012021-06-30 xbrli:pure 00014421452021-01-012021-12-31 0001442145us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembervrsk:RegisteredInvestmentCompaniesMember2022-06-30 0001442145us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembervrsk:RegisteredInvestmentCompaniesMember2021-12-31 0001442145us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-30 0001442145us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-30 0001442145us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-31 0001442145us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-31 0001442145vrsk:VexcelGroupIncMember2022-03-232022-03-23 0001442145vrsk:VexcelGroupIncMember2022-03-23 0001442145vrsk:VexcelGroupIncMember2022-06-30 0001442145vrsk:VexcelGroupIncMember2021-12-31 0001442145vrsk:FirstOptionToExtendCorporateHeadquartersMember2022-06-30 utr:Y 0001442145vrsk:FirstOptionToExtendCorporateHeadquartersMember2022-01-012022-06-30 0001442145vrsk:SecondOptionToExtendCorporateHeadquartersMember2022-06-30 0001442145vrsk:SecondOptionToExtendCorporateHeadquartersMember2022-01-012022-06-30 0001442145vrsk:FixedAssetsNetMember2022-06-30 0001442145vrsk:ShorttermDebtAndCurrentPortionOfLongtermDebtAndLongtermDebtMember2022-06-30 0001442145vrsk:FixedAssetsNetMember2021-12-31 0001442145vrsk:ShorttermDebtAndCurrentPortionOfLongtermDebtAndLongtermDebtMember2021-12-31 0001442145vrsk:OptaInformationIntelligenceCorpMember2022-03-01 0001442145vrsk:OptaInformationIntelligenceCorpMember2022-03-012022-03-01 0001442145vrsk:InfutorDataSolutionsLLCMember2022-02-11 0001442145vrsk:InfutorDataSolutionsLLCMember2022-02-112022-02-11 0001442145vrsk:OptaInformationIntelligenceCorpMember2022-06-30 0001442145vrsk:InfutorDataSolutionsLLCMember2022-06-30 0001442145vrsk:AcquisitionOthersMember2022-06-30 0001442145vrsk:Acquisition2022Member2022-06-30 0001442145vrsk:OptaInformationIntelligenceCorpMember2022-01-012022-06-30 0001442145vrsk:InfutorDataSolutionsLLCMember2022-01-012022-06-30 0001442145vrsk:AcquisitionOthersMember2022-01-012022-06-30 0001442145vrsk:Acquisition2022Member2022-01-012022-06-30 0001442145us-gaap:TechnologyBasedIntangibleAssetsMember2022-01-012022-06-30 0001442145us-gaap:MarketingRelatedIntangibleAssetsMember2022-01-012022-06-30 0001442145us-gaap:CustomerRelatedIntangibleAssetsMember2022-01-012022-06-30 0001442145vrsk:WhitespaceSoftwareLimitedMember2022-03-22 0001442145vrsk:WhitespaceSoftwareLimitedMember2022-03-222022-03-22 0001442145vrsk:WhitespaceSoftwareLimitedMembersrt:ScenarioForecastMember2024-03-22 0001442145us-gaap:DiscontinuedOperationsDisposedOfBySaleMembervrsk:EnvironmentalHealthAndSafetyBusinessMember2022-03-11 0001442145us-gaap:DiscontinuedOperationsDisposedOfBySaleMembervrsk:EnvironmentalHealthAndSafetyBusinessMemberus-gaap:OtherOperatingIncomeExpenseMember2022-03-112022-03-11 0001442145us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMembervrsk:VeriskFinancialServicesMember2022-04-08 0001442145us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMembervrsk:VeriskFinancialServicesMemberus-gaap:OtherOperatingIncomeExpenseMember2022-04-082022-04-08 0001442145us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMembervrsk:VeriskFinancialServicesMember2022-01-012022-06-30 0001442145us-gaap:DiscontinuedOperationsDisposedOfBySaleMembervrsk:EnvironmentalHealthAndSafetyBusinessMember2022-04-08 00014421452022-04-08 0001442145vrsk:VeriskFinancialServicesMember2022-04-08 0001442145us-gaap:DiscontinuedOperationsDisposedOfBySaleMembervrsk:EnvironmentalHealthAndSafetyBusinessMember2022-04-082022-04-08 0001442145vrsk:VeriskFinancialServicesMember2022-04-082022-04-08 00014421452022-04-082022-04-08 0001442145vrsk:InsuranceMember2021-12-31 0001442145vrsk:EnergyAndSpecializedMarketsMember2021-12-31 0001442145vrsk:FinancialServicesMember2021-12-31 0001442145vrsk:InsuranceMember2022-06-30 0001442145vrsk:EnergyAndSpecializedMarketsMember2022-06-30 0001442145vrsk:FinancialServicesMember2022-06-30 0001442145us-gaap:OtherOperatingIncomeExpenseMember2022-01-012022-03-31 0001442145us-gaap:TechnologyBasedIntangibleAssetsMember2022-06-30 0001442145us-gaap:MarketingRelatedIntangibleAssetsMember2022-06-30 0001442145us-gaap:ContractBasedIntangibleAssetsMember2022-01-012022-06-30 0001442145us-gaap:ContractBasedIntangibleAssetsMember2022-06-30 0001442145us-gaap:CustomerRelatedIntangibleAssetsMember2022-06-30 0001442145vrsk:DatabaseMember2022-01-012022-06-30 0001442145vrsk:DatabaseMember2022-06-30 0001442145us-gaap:TechnologyBasedIntangibleAssetsMember2021-01-012021-12-31 0001442145us-gaap:TechnologyBasedIntangibleAssetsMember2021-12-31 0001442145us-gaap:MarketingRelatedIntangibleAssetsMember2021-01-012021-12-31 0001442145us-gaap:MarketingRelatedIntangibleAssetsMember2021-12-31 0001442145us-gaap:ContractBasedIntangibleAssetsMember2021-01-012021-12-31 0001442145us-gaap:ContractBasedIntangibleAssetsMember2021-12-31 0001442145us-gaap:CustomerRelatedIntangibleAssetsMember2021-01-012021-12-31 0001442145us-gaap:CustomerRelatedIntangibleAssetsMember2021-12-31 0001442145vrsk:DatabaseMember2021-01-012021-12-31 0001442145vrsk:DatabaseMember2021-12-31 0001442145vrsk:The4125SeniorNoteMember2022-06-30 0001442145vrsk:The4125SeniorNoteMember2021-12-31 0001442145us-gaap:LineOfCreditMember2022-06-30 0001442145us-gaap:LineOfCreditMember2021-12-31 0001442145vrsk:TermLoanFacilityMember2022-06-30 0001442145vrsk:TermLoanFacilityMember2021-12-31 0001442145vrsk:ShorttermDebtAndCurrentPortionOfLongtermDebtMember2022-06-30 0001442145vrsk:ShorttermDebtAndCurrentPortionOfLongtermDebtMember2021-12-31 0001442145vrsk:The3625SeniorNoteMember2022-06-30 0001442145vrsk:The3625SeniorNoteMember2021-12-31 0001442145vrsk:The4125SeniorNoteMember2022-06-30 0001442145vrsk:The4125SeniorNoteMember2021-12-31 0001442145vrsk:The4000SeniorNoteMember2022-06-30 0001442145vrsk:The4000SeniorNoteMember2021-12-31 0001442145vrsk:The5500SeniorNoteMember2022-06-30 0001442145vrsk:The5500SeniorNoteMember2021-12-31 0001442145us-gaap:LongTermDebtMember2022-06-30 0001442145us-gaap:LongTermDebtMember2021-12-31 0001442145us-gaap:SeniorNotesMember2022-06-30 0001442145us-gaap:SeniorNotesMember2021-12-31 0001442145us-gaap:RevolvingCreditFacilityMember2022-06-30 0001442145us-gaap:RevolvingCreditFacilityMember2021-12-31 0001442145us-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2022-07-012022-08-02 0001442145vrsk:BilateralTermLoanAgreementMember2022-03-11 00014421452022-02-162022-02-16 00014421452022-04-272022-04-27 0001442145vrsk:AdditionalAsrAgreementWithCitibankNaMember2021-12-31 0001442145vrsk:AdditionalAsrAgreementWithCitibankNaMember2022-03-31 0001442145vrsk:AdditionalAsrAgreementWithCitibankNaMember2022-01-042022-01-04 0001442145vrsk:AdditionalAsrAgreementWithCitibankNaMember2022-04-012022-04-01 0001442145vrsk:AdditionalAsrAgreementWithCitibankNaMember2022-02-012022-02-28 0001442145vrsk:AdditionalAsrAgreementWithCitibankNaMember2022-05-012022-05-31 0001442145vrsk:AdditionalAsrAgreementWithCitibankNaMember2022-01-012022-06-30 0001442145vrsk:AcceleratedShareRepurcahseAsrAgreementWithMorganStanleyMember2022-01-012022-06-30 0001442145vrsk:AcceleratedShareRepurcahseAsrAgreementWithMorganStanleyMember2022-06-30 0001442145vrsk:February162022ShareRepurchaseProgramMember2022-02-16 0001442145vrsk:AcceleratedShareRepurcahseAsrAgreementWithMorganStanleyMember2022-06-012022-06-30 0001442145vrsk:PensionAndPostretirementAdjustmentMember2022-04-012022-06-30 0001442145vrsk:PensionAndPostretirementAdjustmentMember2021-04-012021-06-30 0001442145vrsk:PensionAndPostretirementAdjustmentMember2022-01-012022-06-30 0001442145vrsk:PensionAndPostretirementAdjustmentMember2021-01-012021-06-30 0001442145vrsk:The2021IncentivePlanMember2022-06-30 0001442145us-gaap:PerformanceSharesMembersrt:MinimumMember2022-01-012022-06-30 0001442145us-gaap:PerformanceSharesMembersrt:MaximumMember2022-01-012022-06-30 0001442145vrsk:NonqualifiedStockOptionsMembervrsk:KeyEmployeesMember2022-01-012022-01-31 0001442145us-gaap:RestrictedStockMembervrsk:KeyEmployeesMember2022-01-012022-01-31 0001442145us-gaap:PerformanceSharesMembervrsk:KeyEmployeesMember2022-01-012022-01-31 0001442145us-gaap:RestrictedStockMember2022-01-012022-01-31 0001442145us-gaap:EmployeeStockOptionMember2022-01-012022-01-31 0001442145vrsk:TSRBasedPSUsMember2022-01-012022-01-31 0001442145vrsk:ROICBasedPSUsMember2022-01-012022-01-31 0001442145srt:MinimumMember2022-01-012022-01-31 0001442145srt:MaximumMember2022-01-012022-01-31 0001442145us-gaap:RestrictedStockMember2021-12-31 0001442145us-gaap:PerformanceSharesMember2021-12-31 0001442145us-gaap:RestrictedStockMember2022-06-30 0001442145us-gaap:PerformanceSharesMember2022-06-30 0001442145vrsk:EmployeeStockPurchasePlanMembervrsk:UKSharesavePlanMember2022-01-012022-06-30 0001442145vrsk:EmployeeStockPurchasePlanMembervrsk:UKSharesavePlanMember2022-06-30 0001442145vrsk:EmployeeStockPurchasePlanMembervrsk:UKSharesavePlanMember2021-01-012021-06-30 0001442145vrsk:EmployeeStockPurchasePlanMembervrsk:USESPPMember2022-06-30 0001442145vrsk:EmployeeStockPurchasePlanMembervrsk:USESPPMember2021-06-30 0001442145us-gaap:EquitySecuritiesMember2022-03-31 0001442145us-gaap:DebtSecuritiesMember2022-03-31 0001442145us-gaap:EquitySecuritiesMember2021-12-31 0001442145us-gaap:DebtSecuritiesMember2021-12-31 0001442145vrsk:PensionPlanAndSERPPlanMember2022-04-012022-06-30 0001442145vrsk:PensionPlanAndSERPPlanMember2021-04-012021-06-30 0001442145us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-04-012022-06-30 0001442145us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-04-012021-06-30 0001442145vrsk:PensionPlanAndSERPPlanMember2022-01-012022-06-30 0001442145vrsk:PensionPlanAndSERPPlanMember2021-01-012021-06-30 0001442145us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-06-30 0001442145us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-06-30 0001442145country:US2022-06-30 0001442145country:US2021-12-31 0001442145country:GB2022-06-30 0001442145country:GB2021-12-31 0001442145vrsk:OtherCountriesMember2022-06-30 0001442145vrsk:OtherCountriesMember2021-12-31 0001442145vrsk:EricaJacksonInTheCourtOfCommonPleasOfLackawannaCountyPennsylvaniaAgainstLeadIntelligenceIncMember2020-12-10 0001442145vrsk:WilliamsVDdrMeridaLlcAndLeadIntelligenceIncMember2022-06-27 0001442145us-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2022-07-292022-07-29 0001442145us-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2022-07-28 0001442145us-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2022-07-29
 

Table of Contents



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 10-Q

 


 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     

Commission File Number: 001-34480

 


VERISK ANALYTICS, INC.

(Exact name of registrant as specified in its charter)

 


Delaware

26-2994223

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

  

545 Washington Boulevard

 

Jersey City

 

NJ

07310-1686

(Address of principal executive offices)

(Zip Code)

 

(201) 469-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange where registered

Common Stock $.001 par value

VRSK

NASDAQ Global Select Market

 


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

       

Non-accelerated filer

 

 

Smaller reporting company

 

       
    

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒

 

As of July 29, 2022, there were 156,959,955 shares outstanding of the registrant's Common Stock, par value $.001.

 



 

 

 

Verisk Analytics, Inc.

Index to Form 10-Q

 

Table of Contents

 

 

 

Page Number

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

 

Condensed Consolidated Balance Sheets

1

Condensed Consolidated Statements of Operations

2

Condensed Consolidated Statements of Comprehensive Income

3

Condensed Consolidated Statements of Changes in Stockholders’ Equity

4

Condensed Consolidated Statements of Cash Flows

6

Notes to Condensed Consolidated Financial Statements

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3. Quantitative and Qualitative Disclosures About Market Risk

40

Item 4. Controls and Procedures

40

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

41

Item 1A. Risk Factors

41

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

41

Item 3. Defaults Upon Senior Securities

41

Item 4. Mine Safety Disclosures

41

Item 5. Other Information

42

Item 6. Exhibits

42

SIGNATURES

43

Exhibit 31.1

 

Exhibit 31.2

 

Exhibit 32.1

 

 

 

 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

  

June 30, 2022

  

December 31, 2021

 
  

(in millions, except for share and per share data)

 

ASSETS

 

Current assets:

        

Cash and cash equivalents

 $480.7  $280.3 

Accounts receivable, net of allowance for doubtful accounts of $18.3 and $21.3, respectively

  488.9   446.3 

Prepaid expenses

  108.2   102.6 

Income taxes receivable

  64.7   36.7 

Other current assets

  44.1   36.7 

Total current assets

  1,186.6   902.6 

Noncurrent assets:

        

Fixed assets, net

  646.9   658.2 

Operating lease right-of-use assets, net

  226.2   253.1 

Intangible assets, net

  1,183.4   1,225.9 

Goodwill

  3,820.4   4,331.2 

Deferred income tax assets

  4.5   6.6 

Other noncurrent assets

  440.9   430.5 

Total assets

 $7,508.9  $7,808.1 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

Current liabilities:

        

Accounts payable and accrued liabilities

 $276.2  $320.7 

Short-term debt and current portion of long-term debt

  1,136.3   971.3 

Deferred revenues

  659.6   501.0 

Operating lease liabilities

  36.3   41.2 

Income taxes payable

  4.1   9.0 

Total current liabilities

  2,112.5   1,843.2 

Noncurrent liabilities:

        

Long-term debt

  2,342.9   2,342.8 

Deferred income tax liabilities

  410.1   470.5 

Operating lease liabilities

  231.0   254.7 

Other noncurrent liabilities

  42.4   54.4 

Total liabilities

  5,138.9   4,965.6 

Commitments and contingencies (Note 16)

          

Stockholders’ equity:

        

Common stock, $.001 par value; 2,000,000,000 shares authorized; 544,003,038 shares issued; 158,257,098 and 161,651,639 shares outstanding, respectively

  0.1   0.1 

Additional paid-in capital

  2,707.1   2,608.7 

Treasury stock, at cost, 385,745,940 and 382,351,399 shares, respectively

  (5,517.4)  (4,638.1)

Retained earnings

  5,845.5   5,240.4 

Accumulated other comprehensive losses

  (683.4)  (394.6)

Total Verisk stockholders' equity

  2,351.9   2,816.5 

Noncontrolling interests

  18.1   26.0 

Total stockholders’ equity

  2,370.0   2,842.5 

Total liabilities and stockholders’ equity

 $7,508.9  $7,808.1 

 

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

 

 

 

 

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2021

   

2022

   

2021

 
   

(in millions, except for share and per share data)

 

Revenues

  $ 746.3     $ 747.5     $ 1,521.8     $ 1,473.6  

Operating expenses (income):

                               

Cost of revenues (exclusive of items shown separately below)

    246.1       264.9       526.6       527.3  

Selling, general and administrative

    125.9       111.4       261.2       231.2  

Depreciation and amortization of fixed assets

    49.8       53.3       99.4       101.8  

Amortization of intangible assets

    39.8       50.5       84.4       95.5  

Other operating loss (income), net

    15.6             (361.5 )      

Total operating expenses, net

    477.2       480.1       610.1       955.8  

Operating income

    269.1       267.4       911.7       517.8  

Other income (expense):

                               

Investment income (loss)

    4.7       (0.5 )     4.3       1.2  

Interest expense

    (31.8 )     (31.5 )     (63.1 )     (66.9 )

Total other expense, net

    (27.1 )     (32.0 )     (58.8 )     (65.7 )

Income before income taxes

    242.0       235.4       852.9       452.1  

Provision for income taxes

    (44.2 )     (83.8 )     (149.3 )     (132.5 )

Net income

    197.8       151.6       703.6       319.6  

Less: Net (income) loss attributable to noncontrolling interests

    (0.1 )     2.4       (0.2 )     3.0  

Net income attributable to Verisk

  $ 197.7     $ 154.0     $ 703.4     $ 322.6  

Basic net income per share attributable to Verisk

  $ 1.25     $ 0.95     $ 4.41     $ 1.99  

Diluted net income per share attributable to Verisk

  $ 1.24     $ 0.94     $ 4.39     $ 1.97  

Weighted-average shares outstanding:

                               

Basic

    157,972,755       162,007,784       159,326,855       162,324,802  

Diluted

    159,123,563       163,046,538       160,381,090       163,741,628  

 

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

 

 

 

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2022

   

2021

   

2022

   

2021

 
   

(in millions)

 

Net income

  $ 197.8     $ 151.6     $ 703.6     $ 319.6  

Other comprehensive (loss) income, net of tax:

                               

Foreign currency translation adjustment

    (219.7 )     16.5       (291.3 )     25.2  

Pension and postretirement liability adjustment

    0.4       0.8       1.0       1.6  

Total other comprehensive (loss) income

    (219.3 )     17.3       (290.3 )     26.8  

Comprehensive income

    (21.5 )     168.9       413.3       346.4  

Less: Comprehensive loss attributable to noncontrolling interests

    0.8       2.3       1.3       3.1  

Comprehensive (loss) income attributable to Verisk

  $ (20.7 )   $ 171.2     $ 414.6     $ 349.5  

 

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

 

 

 

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For The Three Months Ended June 30, 2022 and 2021

 

  

Common Stock Issued

  

Par Value

  

Additional Paid-in Capital

  

Treasury Stock

  

Retained Earnings

  

Accumulated Other Comprehensive Losses

  

Total Verisk Stockholders' Equity

  

Noncontrolling Interests

  

Total Stockholders’ Equity

 
  

(in millions, except for share data)

     

Balance, April 1, 2022

  544,003,038  $0.1  $2,632.5  $(5,205.9) $5,696.9  $(465.0) $2,658.6  $17.3  $2,675.9 

Net income

              197.7      197.7   0.1   197.8 

Other comprehensive loss

                 (217.8)  (217.8)  (0.9)  (218.7)

Investment in noncontrolling interests

        (1.0)        (0.6)  (1.6)  1.6    

Common stock dividend (1)

              (49.1)     (49.1)     (49.1)

Treasury stock acquired (1,561,149 shares)

           (325.0)        (325.0)     (325.0)

Stock options exercised (869,336 shares transferred from treasury stock)

        65.7   12.3         78.0      78.0 

Performance share units lapsed (1,354 shares transferred from treasury stock)

                           

Restricted stock lapsed (68,098 shares transferred from treasury stock)

        (1.0)  1.0                

Stock-based compensation expense

        18.4            18.4      18.4 

Net share settlement from restricted stock awards (42,394 shares withheld for tax settlement)

        (8.7)           (8.7)     (8.7)

Other stock issuances (10,303 shares transferred from treasury stock)

        1.2   0.2         1.4      1.4 

Balance, June 30, 2022

  544,003,038  $0.1  $2,707.1  $(5,517.4) $5,845.5  $(683.4) $2,351.9  $18.1  $2,370.0 
                                     

Balance, April 1, 2021

  544,003,038  $0.1  $2,515.3  $(4,277.0) $4,884.1  $(366.2) $2,756.3  $15.2  $2,771.5 

Net income

              151.6      151.6      151.6 

Comprehensive loss attributable to noncontrolling interest

              2.4      2.4   (2.3)  0.1 

Investment in noncontrolling interest

                       3.8   3.8 

Other comprehensive income

                 17.3   17.3      17.3 

Common stock dividend (1)

              (47.1)     (47.1)     (47.1)

Treasury stock acquired (834,012 shares)

           (150.0)        (150.0)     (150.0)

Stock options exercised (182,877 shares transferred from treasury stock)

        11.8   2.1         13.9      13.9 

Restricted stock and performance share units lapsed (99,321 shares transferred from treasury stock)

        (1.2)  1.2                

Stock-based compensation expense

        10.8            10.8      10.8 

Net share settlement from restricted stock awards (18,133 shares withheld for tax settlement)

        (3.2)           (3.2)     (3.2)

Other stock issuances (11,541 shares transferred from treasury stock)

        1.4   0.1         1.5      1.5 

Balance, June 30, 2021

  544,003,038  $0.1  $2,534.9  $(4,423.6) $4,991.0  $(348.9) $2,753.5  $16.7  $2,770.2 

_______________

(1) Refer to Note 11. Stockholders' Equity for discussion related to quarterly cash dividends declared per share

 

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

 

 

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For The Six Months Ended June 30, 2022 and 2021

 

  

Common Stock Issued

  

Par Value

  

Additional Paid-in Capital

  

Treasury Stock

  

Retained Earnings

  

Accumulated Other Comprehensive Losses

  

Total Verisk Stockholders' Equity

  

Noncontrolling Interests

  

Total Stockholders’ Equity

 
  

(in millions, except for share data)

 

Balance, January 1, 2022

  544,003,038  $0.1  $2,608.7  $(4,638.1) $5,240.4  $(394.6) $2,816.5  $26.0  $2,842.5 

Net income

              703.4      703.4   0.2   703.6 

Other comprehensive loss

                 (288.2)  (288.2)  (1.5)  (289.7)

Investment in noncontrolling interests

        (1.0)        (0.6)  (1.6)  (6.6)  (8.2)

Common stock dividend (1)

              (98.3)     (98.3)     (98.3)

Treasury stock acquired (4,613,710 shares)

           (896.3)        (896.3)     (896.3)

Stock options exercised (1,034,078 shares transferred from treasury stock)

        80.1   14.5         94.6      94.6 

Performance share units lapsed (49,803 shares transferred from treasury stock)

        (0.6)  0.6                

Restricted stock lapsed (115,289 shares transferred from treasury stock)

        (1.6)  1.6                

Stock-based compensation expense

        38.9            38.9      38.9 

Net share settlement from restricted stock awards (95,574 shares withheld for tax settlement)

        (20.0)           (20.0)     (20.0)

Other stock issuances (19,999 shares transferred from treasury stock)

        2.6   0.3         2.9      2.9 

Balance, June 30, 2022

  544,003,038  $0.1  $2,707.1  $(5,517.4) $5,845.5  $(683.4) $2,351.9  $18.1  $2,370.0 
                                     

Balance, January 1, 2021

  544,003,038  $0.1  $2,490.9  $(4,179.3) $4,762.2  $(375.7) $2,698.2  $  $2,698.2 

Net income

              319.6      319.6      319.6 

Comprehensive loss attributable to noncontrolling interest

              3.0      3.0   (3.1)  (0.1)

Investment in noncontrolling interest

                       19.8   19.8 

Other comprehensive income

                 26.8   26.8      26.8 

Common stock dividend (1)

              (93.8)     (93.8)     (93.8)

Treasury stock acquired (1,394,538 shares)

           (250.0)        (250.0)     (250.0)

Stock options exercised (298,161 shares transferred from treasury stock)

        17.9   3.4         21.3      21.3 

Restricted stock and performance share units lapsed (181,530 shares transferred from treasury stock)

        (2.1)  2.1                

Stock-based compensation expense

        36.2            36.2      36.2 

Net share settlement from restricted stock awards (55,816 shares withheld for tax settlement)

        (11.0)           (11.0)     (11.0)

Other stock issuances (23,640 shares transferred from treasury stock)

        3.0   0.2         3.2      3.2 

Balance, June 30, 2021

  544,003,038  $0.1  $2,534.9  $(4,423.6) $4,991.0  $(348.9) $2,753.5  $16.7  $2,770.2 

_____________

(1) Refer to Note 11. Stockholders' Equity for discussion related to quarterly cash dividends declared per share

 

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

 

 

VERISK ANALYTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

  

Three Months Ended June 30,

  

Six Months Ended June 30,

 
  

2022

  

2021

  

2022

  

2021

 
  

(in millions)

 

Cash flows from operating activities:

                

Net income

 $197.8  $151.6  $703.6  $319.6 

Adjustments to reconcile net income to net cash provided by operating activities:

                

Depreciation and amortization of fixed assets

  49.8   53.3   99.4   101.8 

Amortization of intangible assets

  39.8   50.5   84.4   95.5 

Amortization of debt issuance costs and original issue discount, net of original issue premium

  0.4   0.3   0.7   0.7 

Provision for doubtful accounts

  1.2   5.5   2.9   8.7 

Loss (gain) on sale of assets

  15.6      (435.2)   

Stock-based compensation expense

 

18.4

   10.8   38.9   36.2 

Impairment of long-lived assets

        73.7    

Deferred income taxes

  (12.3)  33.3   (49.4)  32.6 

Loss on disposal of fixed assets

  0.7      0.7    

Changes in assets and liabilities, net of effects from acquisitions:

                

Accounts receivable

  29.8   48.5   (103.3)  (41.0)

Prepaid expenses and other assets

  (18.9)  (18.9)  (17.5)  (23.1)

Operating lease right-of-use assets, net

  8.3   10.6   18.7   21.0 

Income taxes

  (153.6)  (37.8)  (22.6)  0.6 

Accounts payable and accrued liabilities

  6.4   5.9   (63.6)  (20.0)

Deferred revenues

  (38.4)  (69.2)  227.7   187.7 

Operating lease liabilities

  (9.9)  (10.4)  (20.2)  (20.5)

Other liabilities

  (4.9)  (0.8)  (9.1)  (17.9)

Net cash provided by operating activities

  130.2   233.2   529.8   681.9 

Cash flows from investing activities:

                

Acquisitions and purchase of additional controlling interest, net of cash acquired of $17.4 and $1.9; $17.4 and $5.7 respectively

  (3.5)  (17.8)  (448.9)  (31.5)

Proceeds from sale of assets

  498.3      1,073.3    

Investments in nonpublic companies

  (0.8)  (15.1)  (41.8)  (15.1)

Capital expenditures

  (69.2)  (62.5)  (129.2)  (121.7)

Escrow funding associated with acquisitions

     (4.8)  (2.3)  (4.8)

Payment of contingent liability related to acquisition

           (1.2)

Other investing activities, net

     0.4      0.8 

Net cash provided by (used in) investing activities

  424.8   (99.8)  451.1   (173.5)

Cash flows from financing activities:

                

(Repayments of) proceeds from short-term debt

  (160.0)  390.0   40.0   340.0 

Repayment of current portion of long-term-debt

     (450.0)     (450.0)

Proceeds from issuance of short-term debt with original maturities less than three months

        125.0    

Repurchases of common stock

  (325.0)  (150.0)  (896.3)  (250.0)

Proceeds from stock options exercised

  77.2   13.4   93.0   21.0 

Net share settlement of taxes from restricted stock and performance share awards

  (8.7)  (3.2)  (20.0)  (11.0)

Dividends paid

  (49.2)  (47.1)  (98.6)  (94.2)

Other financing activities, net

  (1.7)  (1.8)  (4.1)  (3.7)

Net cash used in financing activities

  (467.4)  (248.7)  (761.0)  (447.9)

Effect of exchange rate changes

  (12.9)  0.7   (19.5)  (3.0)

Net increase (decrease) in cash and cash equivalents

  74.7   (114.6)  200.4   57.5 

Cash and cash equivalents, beginning of period

  406.0   390.9   280.3   218.8 

Cash and cash equivalents, end of period

 $480.7  $276.3  $480.7  $276.3 

Supplemental disclosures:

                

Income taxes paid

 $210.1  $88.1  $221.8  $98.9 

Interest paid

 $39.5  $50.2  $60.6  $69.7 

Noncash investing and financing activities:

                

Deferred tax liability established on date of acquisition

 $0.4  $2.2  $16.5  $4.4 

Net assets sold as part of the disposition

 $495.9  $  $607.4  $ 

Finance lease additions

 $1.4  $0.6  $3.5  $2.6 

Operating lease additions, net

 $6.6  $2.7  $8.3  $9.4 

Fixed assets included in accounts payable and accrued liabilities

 $  $1.4  $  $1.4 

 

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

 

 

VERISK ANALYTICS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Amounts in millions, except for share and per share data, unless otherwise stated)

 

 

1. Organization:

 

Verisk Analytics, Inc. is a data analytics provider serving customers in insurance and energy. Using various technologies to collect and analyze billions of records, we draw on numerous data assets and domain expertise to provide first-to-market innovations that are integrated into customer workflows. We offer predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, and many other fields. Around the world, we help customers protect people, property, and financial assets.

 

 

2. Basis of Presentation and Summary of Significant Accounting Policies:

 

Our accompanying unaudited condensed consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the U.S. ("U.S. GAAP"). The preparation of financial statements in conformity with these accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include acquisition purchase price allocations, the fair value of goodwill and intangibles, the realization of deferred tax assets and liabilities, acquisition-related liabilities, fair value of stock-based compensation for stock options and performance share units granted, and assets and liabilities for pension and postretirement benefits. Actual results may ultimately differ from those estimates.

 

Our condensed consolidated financial statements as of  June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, in the opinion of management, include all adjustments, consisting of normal recurring items, to present fairly our financial position, results of operations, and cash flows. Our operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year. Our condensed consolidated financial statements and related notes as of and for the three and six months ended June 30, 2022 have been prepared on the same basis as and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2021. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules of the SEC. We believe the disclosures made are adequate to keep the information presented from being misleading.

 

Our operating segments have historically been Insurance, Energy and Specialized Markets, and Financial Services. On March 11, 2022 and  April 8, 2022, we sold our environmental health and safety business, which represented the “specialized markets” in our Energy and Specialized Markets segment and our Financial Services segment, respectively. See Note 7. Dispositions for further discussion. For the remainder of 2022, we will continue to show only the historical results of these dispositions in their respective previous operating segments.

 

7

 

Recent Accounting Pronouncements

 

Accounting Standard

Description

Effective Date

Effect on Consolidated Financial Statements or Other Significant Matters

Business Combinations (Topic 805) In October 2021, the FASB issued ASU No. 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU No. 2021-08")

This amendment requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. An acquirer should assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. If the acquiree prepared financial statements in accordance with GAAP, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements. In circumstances in which the acquirer is unable to assess or rely on how the acquiree applied Topic 606, the acquirer should consider the terms of the acquired contracts, such as timing of payment, identify each performance obligation in the contracts, and allocate the total transaction price to each identified performance obligation on a relative standalone selling price basis as of the date the acquiree entered into the contracts to determine what should be recorded at the acquisition date.

Fiscal years beginning after December 15, 2022 with early adoption permitted.

We elected to early adopt ASU No. 2021-08 on January 1, 2022 on a prospective basis to all business combinations that occurred on or after the date of adoption. The adoption of ASU No. 2021-08 did not have a material impact on our Condensed Consolidated Financial Statements.

 

 

3. Revenues:

 

Disaggregated revenues by type of service and by country are provided below for the three and six months ended June 30, 2022 and 2021. No individual customer or country outside of the U.S. accounted for 10.0% or more of our consolidated revenues for the three and six months ended June 30, 2022 or 2021.

 

  

Three Months Ended June 30,

  

Six Months Ended June 30,

 
  

2022

  

2021

  

2022

  

2021

 
                 

Insurance:

                

Underwriting & rating

 $437.8