Verisk Analytics, Inc 10-Q for FY2020 Q1

Verisk Analytics, Inc. (VRSK)

10-Q 2020-05-05 For: 2020-03-31

Added on April 09, 2026

About this 10-Q

Verisk Analytics, Inc filed this 10-Q on May 5, 2020, covering the quarter ended March 31, 2020 (FY2020 Q1).

Headline figures

Quarter ended March 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $689.8M; up 10.4% from $625M a year earlier
Net income: $171.7M; up 27.8% from net income of $134.4M a year earlier

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Delaware		26-2994223
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

545 Washington Boulevard
Jersey City
NJ		07310-1686
(Address of principal executive offices)		(Zip Code)



Title of each class	Trading Symbol(s)	Name of each exchange where registered
Common Stock $.001 par value	VRSK	NASDAQ Global Select Market



Large accelerated filer	þ	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐



	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 (Loss)	3

Condensed Consolidated Statements of Changes in Stockholders’ Equity	4

Condensed Consolidated Statements of Cash Flows	5

Notes to Condensed Consolidated Financial Statements	6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3. Quantitative and Qualitative Disclosures About Market Risk	35

Item 4. Controls and Procedures	35

PART II — OTHER INFORMATION

Item 1. Legal Proceedings	36

Item 1A. Risk Factors	36

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3. Defaults Upon Senior Securities	37

Item 4. Mine Safety Disclosures	37

Item 5. Other Information	37

Item 6. Exhibits	37

SIGNATURES	38

Exhibit 31.1

Exhibit 31.2

Exhibit 32.1



	2020			2019

	(in millions, except for share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	204.4		$	184.6
Accounts receivable, net of allowance for doubtful accounts of $13.8 and $11.7, respectively		523.3			441.6
Prepaid expenses		66.6			60.9
Income taxes receivable		—			25.9
Other current assets		19.7			17.8
Current assets held for sale		—			14.1
Total current assets		814.0			744.9
Noncurrent assets:
Fixed assets, net		549.3			548.1
Operating lease right-of-use assets, net		208.6			218.6
Intangible assets, net		1,306.6			1,398.9
Goodwill		3,742.6			3,864.3
Deferred income tax assets		9.1			9.8
Other noncurrent assets		297.9			159.8
Noncurrent assets held for sale		—			110.8
Total assets	$	6,928.1		$	7,055.2

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	315.6		$	375.0
Acquisition-related liabilities		109.5			111.2
Short-term debt and current portion of long-term debt		444.0			499.4
Deferred revenues		668.4			440.1
Operating lease liabilities		38.7			40.6
Income taxes payable		21.7			6.8
Current liabilities held for sale		—			18.7
Total current liabilities		1,597.9			1,491.8
Noncurrent liabilities:
Long-term debt		2,652.4			2,651.6
Deferred income tax liabilities		349.6			356.0
Operating lease liabilities		198.6			208.1
Other liabilities		49.1			48.8
Noncurrent liabilities held for sale		—			38.1
Total liabilities		4,847.6			4,794.4
Commitments and contingencies
Stockholders’ equity:
Common stock, $.001 par value; 2,000,000,000 shares authorized; 544,003,038 shares issued; 162,498,132 and 163,161,564 shares outstanding, respectively		0.1			0.1
Additional paid-in capital		2,404.6			2,369.1
Treasury stock, at cost, 381,504,906 and 380,841,474 shares, respectively		(4,018.9	)		(3,849.9	)
Retained earnings		4,353.4			4,228.4
Accumulated other comprehensive losses		(658.7	)		(486.9	)
Total stockholders’ equity		2,080.5			2,260.8
Total liabilities and stockholders’ equity	$	6,928.1		$	7,055.2



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



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



	Three Months Ended March 31,
	2020			2019

	(in millions, except for share and per share data)
Revenues	$	689.8		$	625.0
Operating expenses:
Cost of revenues (exclusive of items shown separately below)		257.7			231.4
Selling, general and administrative		112.1			111.4
Depreciation and amortization of fixed assets		46.1			46.6
Amortization of intangible assets		41.0			33.2
Other operating income		(19.4	)		—
Total operating expenses		437.5			422.6
Operating income		252.3			202.4
Other income (expense):
Investment loss and others, net		(2.1	)		(0.4	)
Interest expense		(33.5	)		(31.9	)
Total other expense, net		(35.6	)		(32.3	)
Income before income taxes		216.7			170.1
Provision for income taxes		(45.0	)		(35.7	)
Net income	$	171.7		$	134.4
Basic net income per share	$	1.05		$	0.82
Diluted net income per share	$	1.04		$	0.81
Weighted-average shares outstanding:
Basic		162,894,306			163,528,343
Diluted		165,724,120			166,544,945



	Common Stock Issued	Par Value		Additional Paid-in Capital		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Losses			Total Stockholders’ Equity

	(in millions, except for share data)
Balance, January 1, 2020	544,003,038	$	0.1	$	2,369.1	$	(3,849.9	)	$	4,228.4		$	(486.9	)	$	2,260.8
Adjustment to opening retained earnings related to Topic 326	—		—		—		—			(2.4	)		—			(2.4	)
Net income	—		—		—		—			171.7			—			171.7
Common stock dividend ⁽¹⁾	—		—		—		—			(44.3	)		—			(44.3	)
Other comprehensive loss	—		—		—		—			—			(171.8	)		(171.8	)
Treasury stock acquired (1,124,368 shares)	—		—		—		(173.8	)		—			—			(173.8	)
Stock options exercised (449,007 shares transferred from treasury stock)	—		—		14.8		4.7			—			—			19.5
Stock-based compensation expense	—		—		19.6		—			—			—			19.6
Other stock issuances (11,929 shares transferred from treasury stock)	—		—		1.1		0.1			—			—			1.2
Balance, March 31, 2020	544,003,038	$	0.1	$	2,404.6	$	(4,018.9	)	$	4,353.4		$	(658.7	)	$	2,080.5

Balance, January 1, 2019	544,003,038	$	0.1	$	2,283.0	$	(3,563.2	)	$	3,942.6		$	(591.9	)	$	2,070.6
Net income	—		—		—		—			134.4			—			134.4
Common stock dividend ⁽¹⁾	—		—		—		—			(41.0	)		—			(41.0	)
Other comprehensive income	—		—		—		—			—			59.6			59.6
Treasury stock acquired (636,590 shares)	—		—		—		(75.0	)		—			—			(75.0	)
Stock options exercised (307,270 shares transferred from treasury stock)	—		—		8.7		2.9			—			—			11.6
Stock-based compensation expense	—		—		9.2		—			—			—			9.2
Other stock issuances (11,504 shares transferred from treasury stock)	—		—		1.0		0.1			—			—			1.1
Balance, March 31, 2019	544,003,038	$	0.1	$	2,301.9	$	(3,635.2	)	$	4,036.0		$	(532.3	)	$	2,170.5



	2020			2019

	(in millions)
Cash flows from operating activities:
Net income	$	171.7		$	134.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets		46.1			46.6
Amortization of intangible assets		41.0			33.2
Amortization of debt issuance costs and original issue discount, net of original issue premium		0.3			0.9
Provision for doubtful accounts		1.5			1.2
Gain on sale of assets		(19.4	)		—
Stock-based compensation expense		19.6			9.2
Realized loss (gain) on available-for-sale securities, net		0.5			(0.4	)
Deferred income taxes		(0.1	)		3.3
Loss on disposal of fixed assets, net		0.3			—

Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable		(96.5	)		(81.6	)
Prepaid expenses and other assets		(18.5	)		(2.2	)
Operating lease right-of-use assets, net		9.3			8.8
Income taxes		41.0			25.3
Acquisition-related liabilities		0.2			8.4
Accounts payable and accrued liabilities		(62.0	)		(35.8	)
Deferred revenues		237.6			217.7
Operating lease liabilities		(10.5	)		(9.1	)
Other liabilities		0.5			6.2
Net cash provided by operating activities		362.6			366.1
Cash flows from investing activities:
Acquisitions, net of cash acquired of $0 and $3.7, respectively		—			(69.1	)
Proceeds from sale of assets		23.1			—
Purchase of investments in a nonpublic company		(63.8	)		—
Capital expenditures		(52.9	)		(45.2	)
Other investing activities, net		6.1			(6.0	)
Net cash used in investing activities		(87.5	)		(120.3	)
Cash flows from financing activities:
Repayments of short-term debt, net		(75.0	)		(245.0	)
Proceeds from issuance of short-term debt with original maturities greater than three months		20.0			—
Repayments of current portion of long-term debt		—			(250.0	)
Proceeds from issuance of long-term debt, inclusive of original issue premium and net of original issue discount		—			397.9
Payment of debt issuance costs		—			(2.9	)
Repurchases of common stock		(173.8	)		(75.0	)
Proceeds from stock options exercised		19.2			11.6
Dividends paid		(43.9	)		(40.9	)
Other financing activities, net		(1.9	)		(2.1	)
Net cash used in financing activities		(255.4	)		(206.4	)
Effect of exchange rate changes		(0.2	)		0.6
Increase in cash and cash equivalents		19.5			40.0
Cash and cash equivalents classified within current assets held for sale, beginning of period		0.3			—
Cash and cash equivalents, beginning of period		184.6			139.5
Cash and cash equivalents, end of period	$	204.4		$	179.5
Supplemental disclosures:
Income taxes paid	$	4.1		$	7.5
Interest paid	$	22.6		$	15.3
Noncash investing and financing activities:
Debt issuance costs included in accounts payable and accrued liabilities	$	—		$	1.0
Deferred tax asset established on date of acquisition	$	—		$	0.1
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—		$	247.6
Finance lease obligations	$	1.5		$	1.7
Operating lease additions, net of terminations	$	1.6		$	—
Fixed assets included in accounts payable and accrued liabilities	$	0.7		$	0.7
Dividend payable included in other liabilities	$	1.0		$	0.1
Gain on sale of assets	$	3.5		$	—
Held for sale assets contributed to a nonpublic company	$	65.9		$	—



Accounting Standard	Description	Effective Date	Effect on Consolidated Financial Statements or Other Significant Matters
Financial Instruments—Credit Losses (Topic 326) In June 2016, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, "Measurement of Credit Losses on Financial Instruments" ("Topic 326")	Topic 326 replaces the current “incurred loss” model for recognizing credit losses with an “expected loss” model referred to as the Current Expected Credit Loss ("CECL") model. Under the CECL model, an entity is required to present certain financial assets carried at amortized cost, such as trade receivables, at the net amount expected to be collected. The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement takes place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under U.S. GAAP, which delays recognition until it is probable a loss has been incurred.	The Company adopted these amendments on January 1, 2020.	Refer to the accompanying condensed consolidated statements of changes in stockholders' equity for the adjustment of the opening retained earnings and Note 4. Fair Value Measurements for further discussions.
Reference Rate Reform (Topic 848) In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU No. 2020-04").	The amendment in this update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendment in this update applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendment does not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship.	The amendment in this update is effective for all entities as of March 12, 2020 through December 31, 2022.	The Company adopted this amendment on March 12, 2020. There was no impact to the condensed consolidated financial statements as of and for the three months ended March 31, 2020. The Company continues to monitor the transition of LIBOR to alternative reference rate measures that will likely become effective post December 2021.



Level 1 -		Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments.

Level 2 -		Assets or liabilities valued based on observable market data for similar instruments.

Level 3 -		Assets or liabilities for which significant valuation assumptions are not readily observable in the market; instruments valued based on the best available data, some of which are internally-developed, and considers risk premiums that market participants would require.



		2020				2019
	Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial instruments not carried at fair value:
Long-term debt excluding finance lease liabilities and syndicated revolving credit facility debt issuance costs	Level 2	$	2,650.5	$	2,895.0	$	2,650.4	$	2,902.2



	March 31, 2020
Years Ending	Operating Leases			Finance Leases
2020	$	36.2		$	4.4
2021		39.1			3.0
2022		35.3			0.7
2023		30.5			0.1
2024		21.2			—
2025		18.8			—
2026 and thereafter		109.7			—
Total lease payments		290.8			8.2
Less: Amount representing interest		(53.5	)		(0.4	)
Present value of total lease payments	$	237.3		$	7.8



	Insurance			Energy and Specialized Markets			Financial Services			Total
Goodwill at December 31, 2019	$	998.8		$	2,389.5		$	476.0		$	3,864.3
Purchase accounting reclassifications		2.9			(1.8	)		(0.2	)		0.9
Current period adjustment ⁽¹⁾		21.4			(19.5	)		—			1.9
Foreign currency translation		(25.4	)		(98.1	)		(1.0	)		(124.5	)
Goodwill at March 31, 2020	$	997.7		$	2,270.1		$	474.8		$	3,742.6



	Weighted Average Useful Life	Cost		Accumulated Amortization			Net
March 31, 2020
Technology	7 years	$	510.0	$	(298.3	)	$	211.7
Marketing	16 years		252.3		(95.7	)		156.6
Contract	6 years		5.0		(5.0	)		—
Customer	13 years		876.6		(289.3	)		587.3
Database	19 years		458.5		(107.5	)		351.0
Total intangible assets		$	2,102.4	$	(795.8	)	$	1,306.6
December 31, 2019
Technology	7 years	$	519.2	$	(291.9	)	$	227.3
Marketing	16 years		265.3		(94.3	)		171.0
Contract	6 years		5.0		(5.0	)		—
Customer	13 years		901.2		(278.0	)		623.2
Database	19 years		484.6		(107.2	)		377.4
Total intangible assets		$	2,175.3	$	(776.4	)	$	1,398.9


⁽¹⁾	These accumulated other comprehensive loss components, before tax, are included under “Cost of revenues” and “Selling, general and administrative” in the accompanying condensed consolidated statements of operations. These components are also included in the computation of net periodic (benefit) cost (see Note 12. Pension and Postretirement Benefits for additional details).



	Stock Option						Restricted Stock				PSU
	Number of Options		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number of Shares		Weighted Average Grant Date Fair Value Per Share		Number of Shares		Weighted Average Grant Date Fair Value Per Share
					(in millions)
Outstanding at December 31, 2019	6,432,814		$	79.51	$	449.2	428,729		$	107.96	93,960		$	158.50
Granted	883,282		$	158.63			149,040		$	158.62	50,736		$	192.93
Dividend reinvestment	—		$	—			—		$	—	268			Not applicable
Exercised or lapsed	(449,007	)	$	43.28	$	50.7	(2,478	)	$	107.87	—
Canceled, expired or forfeited	(49,672	)	$	113.26			(8,842	)	$	118.60	—
Outstanding at March 31, 2020	6,817,417		$	91.86	$	324.0	566,449		$	121.00	144,964		$	170.40
Exercisable at March 31, 2020	3,808,076		$	66.94	$	275.9
Exercisable at December 31, 2019	4,175,855		$	65.05	$	352.0
Nonvested at March 31, 2020	3,008,420						566,449				145,121
Expected to vest at March 31, 2020	2,604,017						487,007				288,444	⁽¹⁾


⁽¹⁾	Includes estimated performance achievement



Year	Amount
2020	$	120.4
2021		149.2
2022		138.1
2023		126.3
2024		121.8
2025 and thereafter		650.8
	$	1,306.6



	Issuance Date	Maturity Date	2020			2019
Short-term debt and current portion of long-term debt:
Syndicated revolving credit facility	Various	Various	$	440.0		$	495.0
Finance lease liabilities ⁽¹⁾	Various	Various		4.0			4.4
Short-term debt and current portion of long-term debt				444.0			499.4
Long-term debt:
Senior notes:
4.125% senior notes, inclusive of unamortized premium, and net of unamortized discount and debt issuance costs of $13.5 and $13.9, respectively	03/06/2019	03/15/2029		613.5			613.9
4.000% senior notes, less unamortized discount and debt issuance costs of $(6.4) and $(6.7), respectively	05/15/2015	06/15/2025		893.6			893.3
5.500% senior notes, less unamortized discount and debt issuance costs of $(4.5) and $(4.5), respectively	05/15/2015	06/15/2045		345.5			345.5
4.125% senior notes, less unamortized discount and debt issuance costs of $(1.5) and $(1.6), respectively	09/12/2012	09/12/2022		348.5			348.4
5.800% senior notes, less unamortized discount and debt issuance costs of $(0.6) and $(0.7), respectively	04/06/2011	05/01/2021		449.4			449.3
Finance lease liabilities ⁽¹⁾	Various	Various		3.8			3.3
Syndicated revolving credit facility debt issuance costs	Various	Various		(1.9	)		(2.1	)
Long-term debt				2,652.4			2,651.6
Total debt			$	3,096.4		$	3,151.0



	2020			2019
Foreign currency translation adjustment	$	(572.7	)	$	(400.1	)
Pension and postretirement adjustment, net of tax		(86.0	)		(86.8	)
Accumulated other comprehensive losses	$	(658.7	)	$	(486.9	)



	Before Tax			Tax (Expense) Benefit			After Tax
For the Three Months Ended March 31, 2020
Foreign currency translation adjustment	$	(172.6	)	$	—		$	(172.6	)
Pension and postretirement adjustment before reclassifications		2.1			(0.6	)		1.5
Amortization of net actuarial loss and prior service benefit reclassified from accumulated other comprehensive losses ⁽¹⁾		(1.0	)		0.3			(0.7	)
Pension and postretirement adjustment		1.1			(0.3	)		0.8
Total other comprehensive loss	$	(171.5	)	$	(0.3	)	$	(171.8	)
For the Three Months Ended March 31, 2019
Foreign currency translation adjustment	$	58.5		$	—		$	58.5
Pension and postretirement adjustment before reclassifications		2.8			(0.7	)		2.1
Amortization of net actuarial loss and prior service benefit reclassified from accumulated other comprehensive losses ⁽¹⁾		(1.3	)		0.3			(1.0	)
Pension and postretirement adjustment		1.5			(0.4	)		1.1
Total other comprehensive income	$	60.0		$	(0.4	)	$	59.6



	2020
Option pricing model		Black-Scholes
Expected volatility		18.17	%
Risk-free interest rate		1.59	%
Expected term in years		4.3
Dividend yield		0.71	%
Weighted average grant date fair value per stock option	$	25.49



	Pension Plan and SERP						Postretirement Plan

	For the Three Months Ended March 31,
	2020			2019			2020			2019
Interest cost	$	3.3		$	3.7		$	—		$	—
Expected return on plan assets		(7.6	)		(6.4	)		—			—
Amortization of net actuarial loss		1.0			1.2			—			0.1
Net periodic (benefit) cost	$	(3.3	)	$	(1.5	)	$	—		$	0.1
Employer contributions, net	$	0.2		$	0.2		$	(0.4	)	$	(0.3	)



	For the Three Months Ended
	March 31, 2020												March 31, 2019
	Insurance			Energy and Specialized Markets			Financial Services			Total			Insurance			Energy and Specialized Markets			Financial Services			Total
Revenues	$	489.4		$	160.1		$	40.3		$	689.8		$	453.6		$	128.4		$	43.0		$	625.0
Expenses:
Cost of revenues (exclusive of items shown separately below)		(163.3	)		(70.5	)		(23.9	)		(257.7	)		(152.7	)		(54.4	)		(24.3	)		(231.4	)
Selling, general and administrative		(68.4	)		(38.9	)		(4.8	)		(112.1	)		(69.7	)		(36.3	)		(5.4	)		(111.4	)
Other operating income		15.9			—			3.5			19.4			—			—			—			—
Investment (loss) income and others, net		(1.2	)		(0.5	)		(0.4	)		(2.1	)		0.1			(0.5	)		—			(0.4	)
EBITDA	$	272.4		$	50.2		$	14.7			337.3		$	231.3		$	37.2		$	13.3			281.8
Depreciation and amortization of fixed assets											(46.1	)											(46.6	)
Amortization of intangible assets											(41.0	)											(33.2	)
Interest expense											(33.5	)											(31.9	)
Income before income taxes										$	216.7											$	170.1



	March 31, 2020		December 31, 2019
Long-lived assets:
U.S.	$	3,172.0	$	3,162.5
U.K.		2,505.9		2,685.3
Other countries		436.2		462.5
Total long-lived assets	$	6,114.1	$	6,310.3



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



	Three Months Ended March 31,						Percentage Change
	2020			2019			Percentage Change

	(in millions, except for share and per share data)
Statement of income data:
Revenues:
Insurance	$	489.4		$	453.6		7.9	%
Energy and Specialized Markets		160.1			128.4		24.6	%
Financial Services		40.3			43.0		(6.4	)%
Revenues		689.8			625.0		10.4	%
Operating expenses:
Cost of revenues (exclusive of items shown separately below)		257.7			231.4		11.4	%
Selling, general and administrative		112.1			111.4		0.7	%
Depreciation and amortization of fixed assets		46.1			46.6		(1.0	)%
Amortization of intangible assets		41.0			33.2		23.6	%
Other operating income		(19.4	)		—		100.0	%
Total operating expenses		437.5			422.6		3.5	%
Operating income		252.3			202.4		24.7	%
Other income (expense):
Investment loss and others, net		(2.1	)		(0.4	)	452.9	%
Interest expense		(33.5	)		(31.9	)	4.7	%
Total other expense, net		(35.6	)		(32.3	)	10.2	%
Income before income taxes		216.7			170.1		27.4	%
Provision for income taxes		(45.0	)		(35.7	)	25.9	%
Net Income	$	171.7		$	134.4		27.8	%
Basic net income per share:	$	1.05		$	0.82		28.0	%
Diluted net income per share:	$	1.04		$	0.81		28.4	%
Cash dividends declared per share ⁽¹⁾:	$	0.27		$	0.25		8.0	%
Weighted average shares outstanding:
Basic		162,894,306			163,528,343		(0.4	)%
Diluted		165,724,120			166,544,945		(0.5	)%

The financial operating data below sets forth the information we believe is useful for investors in evaluating our overall financial performance:
Other data:
EBITDA ⁽²⁾:
Insurance	$	272.4		$	231.3		17.8	%
Energy and Specialized Markets		50.2			37.2		34.8	%
Financial Services		14.7			13.3		10.5	%
EBITDA	$	337.3		$	281.8		19.7	%
The following is a reconciliation of net income to EBITDA:
Net income	$	171.7		$	134.4		27.8	%
Depreciation and amortization of fixed assets and intangible assets		87.1			79.8		9.2	%
Interest expense		33.5			31.9		4.7	%
Provision for income taxes		45.0			35.7		25.9	%
EBITDA	$	337.3		$	281.8		19.7	%


⁽¹⁾	Cash dividends declared per share is calculated by the aggregate cash dividends declared in a fiscal quarter divided by the shares issued and outstanding. See Note 10. of our consolidated financial statements included in this interim report on Form 10-Q.


•	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 noncash 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.



	Three Months Ended March 31,				Percentage change		Percentage change excluding recent acquisitions and dispositions
	2020		2019		Percentage change

	(in millions)
Insurance	$	489.4	$	453.6	7.9	%	5.8	%
Energy and Specialized Markets		160.1		128.4	24.6	%	2.1	%
Financial Services		40.3		43.0	(6.4	)%	2.7	%
Total Revenues	$	689.8	$	625.0	10.4	%	4.8	%



	Three Months Ended						Percentage Change
	March 31,
	2020			2019

	(in millions)
Net cash provided by operating activities	$	362.6		$	366.1		(1.0	)%
Net cash used in investing activities	$	(87.5	)	$	(120.3	)	(27.3	)%
Net cash used in financing activities	$	(255.4	)	$	(206.4	)	23.7	%



Item 3.	Quantitative and Qualitative Disclosures About Market Risk



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



						Total Number of	Approximate Dollar
						Shares Purchased	Value of Shares that
	Total Number		Average			as Part of Publicly	May Yet Be
	of Shares		Price Paid			Announced Plans	Purchased Under the
Period	Purchased		per Share			or Programs	Plans or Programs
								(in millions)
January 1, 2020 through January 31, 2020	267,845		$	149.34	⁽¹⁾	267,845	$	77.6
February 1, 2020 through February 29, 2020	172,561	⁽¹⁾	$	154.34	⁽¹⁾	172,561	$	557.6
March 1, 2020 through March 31, 2020	683,962		$	151.74		683,962	$	453.8
	1,124,368		$	154.56	⁽¹⁾	1,124,368