Verisk Analytics Reports $303.7M Impairment, New Execs in 10-K

TL;DR

**Verisk took a $303.7M hit on assets held for sale, but new leadership is in place.**

AI Summary

Verisk Analytics, Inc. filed its 10-K on February 21, 2024, for the fiscal year ending December 31, 2023. The filing details key executive appointments, including Lee M. Shavel as CEO and President, and Elizabeth D. Mann as CFO, both effective December 2023. The company recognized a significant non-cash impairment of $303.7 million related to assets classified as held for sale, partially offset by a deferred tax benefit of $75.9 million.

Why It Matters

This filing provides crucial insights into Verisk's financial health and strategic direction, including a substantial impairment charge and changes in its leadership team, which can impact future performance and investor confidence.

Risk Assessment

Risk Level: medium — The $303.7 million impairment indicates a significant write-down of assets, which could signal underlying issues or a strategic shift, introducing uncertainty.

Key Numbers

• $303.7 million — Impairment (Recognized due to held for sale classification)
• $75.9 million — Deferred Tax Benefit (Offsetting the impairment on remeasurement of disposal group)

Key Players & Entities

• Verisk Analytics, Inc. (company) — filer
• Lee M. Shavel (person) — Chief Executive Officer, President and director
• Elizabeth D. Mann (person) — Chief Financial Officer
• David J. Grover (person) — Controller and Chief Accounting Officer
• $303.7 million (dollar_amount) — impairment recognized
• $75.9 million (dollar_amount) — deferred tax benefit
• December 4, 2023 (date) — Lee M. Shavel's appointment date
• December 15, 2023 (date) — Elizabeth D. Mann's appointment date
• December 14, 2023 (date) — David J. Grover's appointment date
• December 31, 2023 (date) — Conformed Period of Report

FAQ

From the Filing

0001437749-24-004939.txt : 20240221 0001437749-24-004939.hdr.sgml : 20240221 20240221071922 ACCESSION NUMBER: 0001437749-24-004939 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 131 CONFORMED PERIOD OF REPORT: 20231231 FILED AS OF DATE: 20240221 DATE AS OF CHANGE: 20240221 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Verisk Analytics, Inc. CENTRAL INDEX KEY: 0001442145 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] ORGANIZATION NAME: 06 Technology IRS NUMBER: 262994223 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34480 FILM NUMBER: 24656379 BUSINESS ADDRESS: STREET 1: 545 WASHINGTON BOULEVARD CITY: JERSEY CITY STATE: NJ ZIP: 07310-1686 BUSINESS PHONE: 201-469-2000 MAIL ADDRESS: STREET 1: 545 WASHINGTON BOULEVARD CITY: JERSEY CITY STATE: NJ ZIP: 07310-1686 10-K 1 vrsk20231231c_10k.htm FORM 10-K vrsk20231231_10k.htm 0001442145 Verisk Analytics, Inc. false --12-31 FY 2023 Lee M. Shavel Chief Executive Officer, President and director December 4, 2023 December 31, 2024 Elizabeth D. Mann Chief Financial Officer December 15, 2023 December 31, 2024 David J. Grover Controller and Chief Accounting Officer December 14, 2023 April 1, 2024 true false false false 0.001 0.001 2,000,000,000 2,000,000,000 544,003,038 544,003,038 143,308,729 154,701,136 400,694,309 389,301,902 12.6 131.5 29.7 2,545,191 1,146,368 50,898 135,664 60,101 45,374 8,600,963 1,435,076 49,803 122,340 99,977 43,241 12,849,921 1,295,815 27,771 106,613 81,536 27,315 8.0 17.4 9.3 1 10 4 50 50 0 0 3 3 0 6 0 0 1 2 2019 2020 2021 3.625 3.625 9.6 10.0 4.125 4.125 7.8 9.4 4.00 4.00 1.8 2.8 5.500 5.500 3.8 4.0 5.750 5.750 8.9 0 2,850.0 2,000,000,000 0 0 0.34 0.34 0.34 1,000 4 1,000 0 0 3 6.25 100 0 0 In connection with the held for sale classification, we recognized a $303.7 million impairment, partially offset by a deferred tax benefit of $75.9 million on the remeasurement of the disposal group held for sale. This impairment was charged to a contra asset account within "Other noncurrent assets" per ASC 205-20, Discontinued Operations. Primarily accounts receivable balances written off, net of recoveries, the expiration of loss carryforwards, and businesses held for sale Included in "Depreciation and amortization of fixed assets" in our accompanying condensed consolidated statements of operations Refer to Note 8. Leases The separately managed accounts invest in U.S. Treasury Bonds and U.S. Treasury Separate Trading of Registered Interest and Principal of Securities (“UST STRIPS”). The fair values of these bonds and UST STRIPS are publicly quoted and are used in determining the NAV of the separately managed account, which is not publicly quoted. 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 mortgage obligations, and other obligations that are secured by mortgages or mortgage backed securities, and valued at the closing price reported in the active market. 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. Primarily additional reserves for bad debts This adjustment relates to a segment reclassification; refer to Note 19. Segment Reporting Includes estimated performance achievement Included in "Accounts payable and accrued liabilities" in our accompanying consolidated balance sheets Included in "Interest expense" in our accompanying condensed consolidated statements of operations The pooled separa