EX-99.1 2 exhibit991quarterpressrele.htm EXHIBIT 99.1 Exhibit 99.1 Quarter Press Release 2014.09.30


Exhibit 99.1
Verisk Analytics, Inc., Reports Third-Quarter 2014 Financial Results
JERSEY CITY, N.J., October 28, 2014 — Verisk Analytics, Inc. (Nasdaq:VRSK), a leading source of data and analytics about risk, today announced results for the fiscal quarter ended September 30, 2014.
Scott Stephenson, president and chief executive officer, said, "Our third-quarter revenue growth was good, driven by very strong performance in our healthcare and financial services businesses. Our healthcare team continued to execute and as a result we remain comfortable with our expectation for mid-teens growth at Verisk Health for the full-year 2014. Our insurance solutions remain well positioned in the market and are valued by our customers.
We have recently completed our annual strategic reviews with all of our business units, and I am very pleased with the opportunities we see over the next five years to innovate and drive profitable growth. While we continue to be disciplined in our use of shareholder capital, our interest in acquisitions with a strategic fit remains strong."
Financial Highlights
Total revenue from continuing operations increased 8.9% in third-quarter 2014 compared with third-quarter 2013. Decision Analytics revenue from continuing operations increased 11.8% in the quarter, while Risk Assessment revenue increased 4.1%.
EBITDA from continuing operations increased 6.2% to $211.3 million for third-quarter 2014, with an EBITDA margin from continuing operations of 47.1%.
Diluted GAAP earnings per share (diluted GAAP EPS) were $0.58 for third-quarter 2014. Diluted adjusted earnings per share from continuing operations (diluted adjusted EPS from continuing operations) were $0.64 for third-quarter 2014, an increase of 4.9% compared with the same period in 2013.
Free cash flow year to date, normalized for the items discussed below, decreased 6.0% to $262.5 million.

Table 1: Summary of Results
(in thousands, except per share amounts)
 
Three Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Revenues from continuing operations
$
448,665


$
411,927


8.9
%

$
1,281,862

 
$
1,178,980

 
8.7
%
EBITDA from continuing operations
$
211,343


$
199,063


6.2
%

$
588,398

 
$
555,513

 
5.9
%
Net income
$
99,015


$
96,441


2.7
%

$
302,672

 
$
261,157

 
15.9
%
Adjusted net income from continuing operations
$
107,811


$
104,354


3.3
%

$
297,979

 
$
286,549

 
4.0
%
Diluted GAAP EPS
$
0.58


$
0.56


3.6
%

$
1.78

 
$
1.51

 
17.9
%
Diluted adjusted EPS from continuing operations
$
0.64

 
$
0.61

 
4.9
%
 
$
1.75

 
$
1.66

 
5.4
%

1



Revenue

Table 2: Decision Analytics Revenues by Category
(in thousands)
 
Three Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Insurance
$
149,496


$
140,771


6.2
 %

$
443,757

 
$
401,105

 
10.6
 %
Financial services
 
25,258


 
21,379


18.1
 %

 
68,111

 
 
58,226

 
17.0
 %
Healthcare
 
91,900


 
73,612


24.8
 %

 
220,888

 
 
193,748

 
14.0
 %
Specialized markets
 
20,557


 
21,110


(2.6
)%

 
63,387

 
 
63,974

 
(0.9
)%
Total Decision Analytics
$
287,211


$
256,872


11.8
 %

$
796,143

 
$
717,053

 
11.0
 %
Within the Decision Analytics segment, revenue from continuing operations grew 11.8% in third-quarter 2014. In the quarter, Decision Analytics revenue from continuing operations represented approximately 64% of total revenue from continuing operations.
Within the insurance category, revenue growth was 6.2% for the third quarter of 2014. The increase was driven by strong growth in loss quantification solutions. Claims, catastrophe modeling, and underwriting also contributed to growth in the quarter.
In the financial services category, revenue from continuing operations increased 18.1% in third-quarter 2014 based on continued strong demand for our solutions.
In the healthcare category, revenue in the third quarter grew 24.8%, driven by strong growth in revenue and quality intelligence and payment accuracy solutions. Enterprise analytics solutions also contributed to growth in the quarter. Revenue growth reflected higher volumes and continued expansion of solutions sold to existing customers.
In the specialized markets category, revenue decreased 2.6% in third-quarter 2014. Growth in environmental health and safety solutions and commercial climate solutions was more than offset by the continued cycling of a large government contract discussed in previous quarters.

Table 3: Risk Assessment Revenues by Category
(in thousands)
 
Three Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Industry-standard insurance programs
$
122,830


$
118,234


3.9
%

$
369,841


$
351,973


5.1
%
Property-specific rating and underwriting information
 
38,624



36,821


4.9
%


115,878


 
109,954


5.4
%
Total Risk Assessment
$
161,454


$
155,055


4.1
%

$
485,719


$
461,927


5.2
%
Within the Risk Assessment segment, revenue grew 4.1% in the quarter.
Revenue growth in industry-standard insurance programs was 3.9%, resulting primarily from the annual effect of growth in 2014 invoices effective from January 1 as well as growth from new solutions. This growth was partially offset by lower revenue from reinsurance projects.
Property-specific rating and underwriting information revenue grew 4.9% in the third quarter. Growth was due to new sales resulting in higher committed volumes.
Cost of Revenue
Cost of revenue from continuing operations increased 15.7% in third-quarter 2014 compared with third-quarter 2013. The year-over-year increase relates to meeting customer demand in our healthcare business. Investments in people, data, and technology, in support of the growth of our businesses, also contributed to the increase. For third-quarter 2014, cost of revenue from continuing operations increased 22.6% for Decision Analytics and 1.2% for Risk Assessment.
Selling, General, and Administrative

2



Selling, general, and administrative expense, or SG&A, from continuing operations decreased 1.1% in third-quarter 2014. The decrease was due to good expense management and lower pension costs. SG&A declined in the quarter despite $2.8 million in professional services fees related to the announced EagleView Technology Corporation acquisition. In the quarter, SG&A from continuing operations increased 3.9% for Decision Analytics and decreased 10.6% for Risk Assessment.
EBITDA

Table 4: Segment EBITDA
(in thousands)
 
Three Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Decision Analytics
$
118,547


    $
113,646


4.3
%

$
311,021


    $
297,688


4.5
%
EBITDA margin from continuing operations
 
41.3
%


44.2
%

 


39.1
%


41.5
%

 
Risk Assessment
$
92,796


    $
85,417


8.6
%

$
277,377


    $
257,825


7.6
%
EBITDA margin from continuing operations
 
57.5
%


55.1
%

 


57.1
%


55.8
%

 
Total EBITDA from continuing operations
$
211,343


    $
199,063


6.2
%

$
588,398


    $
555,513


5.9
%
EBITDA margin from continuing operations
 
47.1
%


48.3
%

 


45.9
%


47.1
%

 

Decision Analytics EBITDA from continuing operations increased 4.3% in third-quarter 2014, and Risk Assessment EBITDA grew 8.6% compared with the same period in the previous year.
The third-quarter 2014 EBITDA margin from continuing operations for Decision Analytics decreased to 41.3% from 44.2% in third-quarter 2013. The decrease was primarily the result of increased costs in our healthcare business and higher professional services fees related to our announced acquisition of EagleView Technology Corporation.
The third-quarter 2014 EBITDA margin in Risk Assessment increased to 57.5% from 55.1% in third-quarter 2013 as a result of the previously discussed revenue growth, good expense management, and lower pension costs.
Net Income and Adjusted Net Income
Net income increased 2.7% in third-quarter 2014. Adjusted net income from continuing operations grew 3.3% for third-quarter 2014.
Cash Flow
For the nine-month period ended September 30, 2014, free cash flow, defined as cash provided by operating activities less capital expenditures, adjusted for the sale of our mortgage services business and the timing of excess tax benefits from exercised stock options in first-quarter 2013, declined 6.0% compared with the prior-year period to $262.5 million and represented 45% of EBITDA from continuing operations in the first nine months of 2014, as lower operating cash flow was partially offset by lower capital expenditures.
For the nine-month period ended September 30, 2014, net cash provided by operating activities was $378.6 million, a decrease of $7.8 million , or 2.0%, compared with the same period in 2013. Cash provided by operations as reported was affected by the sale of our mortgage services business and the timing of excess tax benefits from exercised stock options in first-quarter 2013. Adjusted for those items, the decline year to date was 5.1%.
Capital expenditures were $103.0 million in the nine months ended September 30, 2014, a decrease of $4.9 million over the same period in 2013. Capital expenditures were 8.0% of revenue for the nine months ended September 30, 2014.

3



Share Repurchases
The company continued to balance internal investment and acquisition initiatives with share repurchases. In third-quarter 2014, the company repurchased shares for a total cost of $65.9 million at an average price of $62.75. At September 30, 2014, the company had $280.3 million remaining under its share repurchase authorization.
Conference Call
Verisk’s management team will host a live audio webcast on Wednesday, October 29, 2014, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss the financial results and business highlights. All interested parties are invited to listen to the live event via webcast on the Verisk investor website at http://investor.verisk.com. The discussion is also available through dial-in number 1-877-755-3792 for U.S./Canada participants or 512-961-6560 for international participants.
A replay of the webcast will be available for 30 days on the Verisk investor website and also through the conference call number 1-855-859-2056 for U.S./Canada participants or 404-537-3406 for international participants using Conference ID # 19212245.
About Verisk Analytics
Verisk Analytics (Nasdaq:VRSK) is a leading provider of information about risk to professionals in insurance, healthcare, financial services, government, and risk management. Using advanced technologies to collect and analyze billions of records, Verisk Analytics draws on vast industry expertise and unique proprietary data sets to provide predictive analytics and decision support solutions in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, data management, and many other fields. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com.
Contact:
Investor Relations
Eva Huston
Senior Vice President, Treasurer, and Chief Knowledge Officer
Verisk Analytics, Inc.
201-469-2142
eva.huston@verisk.com

David Cohen
Director, Investor Relations and Business Analytics
Verisk Analytics, Inc.
201-469-2174
david.e.cohen@verisk.com
Media
Rich Tauberman
MWW Group
(for Verisk Analytics)
202-600-4546
rtauberman@mww.com


Forward-Looking Statements
This release contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases,

4



you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements.
Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in Verisk’s quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this release reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.
Notes Regarding the Use of Non-GAAP Financial Measures
The company has provided certain non-GAAP financial information as supplemental information regarding its operating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from non-GAAP measures reported by other companies. The company believes that its presentation of non-GAAP measures, such as EBITDA, EBITDA margin, adjusted net income, and adjusted EPS, provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. In addition, the company’s management uses these measures for reviewing the financial results of the company and for budgeting and planning purposes.

Table 5: EBITDA Reconciliation
(in thousands)
 
Three Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Net income
$
99,015


$
96,441


2.7
 %

$
302,672


$
261,157


15.9
 %
Depreciation and amortization of fixed and intangible assets
 
36,138


 
32,003


12.9
 %


105,075


 
96,090


9.4
 %
Interest expense
 
17,498


 
18,692


(6.4
)%


52,396


 
58,486


(10.4
)%
Provision for income taxes
 
58,692


 
53,474


9.8
 %


159,372


 
144,998


9.9
 %
less: Discontinued operations, net of tax
 

 
 
(1,547
)
 
(100.0
)%
 
 
(31,117
)
 
 
(5,218
)
 
496.3
 %
EBITDA from continuing operations
$
211,343


$
199,063


6.2
 %

$
588,398


$
555,513


5.9
 %
EBITDA is a financial measure that management uses to evaluate the performance of our segments. In all periods shown here and going forward, the company defines “EBITDA” as net income before interest expense, income taxes, and depreciation and amortization of fixed and intangible assets. In previous periods, this measure also excluded investment income and realized gain on securities, net.
Although securities analysts, lenders, and others frequently use EBITDA in their evaluation of companies, EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our statement of cash flow reported under U.S. GAAP. Management uses EBITDA in conjunction with traditional U.S. GAAP operating performance measures as part of its overall assessment of company performance. Some of these limitations are as follows:
EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments.
EBITDA does not reflect changes in, or cash requirement 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.

5



Other companies in our industry may calculate EBITDA differently than we do, limiting the usefulness of their calculations as comparative measures.

Table 6: Net Income and Adjusted Net Income from Continuing Operations
(in thousands, except per share amounts)
 
Three Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Net income
$
99,015

 
$
96,441

 
2.7
%
 
$
302,672

 
$
261,157

 
15.9
%
plus: Amortization of intangible assets
 
14,187

 
 
15,258

 
 
 
 
42,620

 
 
49,371

 
 
less: Income tax effect on amortization of intangible assets
 
(5,391
)
 
 
(5,798
)
 
 
 
 
(16,196
)
 
 
(18,761
)
 
 
less: Discontinued operations, net of tax
 

 
 
(1,547
)
 
 
 
 
(31,117
)
 
 
(5,218
)
 
 
Adjusted net income from continuing operations
$
107,811

 
    $
104,354

 
3.3
%
 
$
297,979

 
$
286,549

 
4.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic adjusted EPS from continuing operations
$
0.65

 
    $
0.62

 
4.8
%
 
$
1.79

 
$
1.70

 
5.3
%
Diluted adjusted EPS from continuing operations
$
0.64

 
    $
0.61

 
4.9
%
 
$
1.75

 
$
1.66

 
5.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
166.2

 
 
168.0

 
 
 
 
166.5

 
 
168.1

 
 
Diluted
 
169.5

 
 
172.2

 
 
 
 
169.8

 
 
172.5

 
 
Attached Financial Statements
Please refer to the full Form 10-Q filing for the complete financial statements and related notes.

6



VERISK ANALYTICS, INC.
CONSOLIDATED BALANCE SHEETS
As of September 30, 2014 (Unaudited) and December 31, 2013
 
2014
 
2013
 
(unaudited)
 
 
 
 
(In thousands, except for
share and per share data)
ASSETS
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
432,490

 
$
165,801

Available-for-sale securities
 
3,730

 
 
3,911

Accounts receivable, net of allowance for doubtful accounts of $7,287 and $4,415, respectively
 
188,711

 
 
158,547

Prepaid expenses
 
31,150

 
 
25,657

Deferred income taxes, net
 
5,076

 
 
5,077

Income taxes receivable
 
30,112

 
 
67,346

Other current assets
 
14,383

 
 
34,681

Current assets held-for-sale
 

 
 
13,825

Total current assets
 
705,652

 
 
474,845

Noncurrent assets:
 
 
 
 
 
Fixed assets, net
 
281,347

 
 
233,373

Intangible assets, net
 
406,560

 
 
447,618

Goodwill
 
1,184,374

 
 
1,181,681

Pension assets
 
72,512

 
 
60,955

Other assets
 
27,255

 
 
20,034

Noncurrent assets held-for-sale
 

 
 
85,945

Total assets
$
2,677,700

 
$
2,504,451

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
 
Accounts payable and accrued liabilities
$
164,288

 
$
188,264

Short-term debt and current portion of long-term debt
 
140,455

 
 
4,448

Pension and postretirement benefits, current
 
2,437

 
 
2,437

Fees received in advance
 
254,160

 
 
226,581

Current liabilities held-for-sale
 

 
 
9,449

Total current liabilities
 
561,340

 
 
431,179

Noncurrent liabilities:
 
 
 
 
 
Long-term debt
 
1,136,205

 
 
1,271,439

Pension benefits
 
12,401

 
 
13,007

Postretirement benefits
 
3,611

 
 
2,061

Deferred income taxes, net
 
194,871

 
 
198,604

Other liabilities
 
43,288

 
 
36,043

Noncurrent liabilities held-for-sale
 

 
 
4,529

Total liabilities
 
1,951,716

 
 
1,956,862

Commitments and contingencies
 

 
 


Stockholders’ equity:
 
 
 
 
 
Class A common stock, $.001 par value; 1,200,000,000 shares authorized; 544,003,038 shares issued and 165,562,900 and 167,457,927 outstanding, respectively
 
137

 
 
137

Unearned KSOP contributions
 
(197
)
 
 
(306
)
Additional paid-in capital
 
1,256,541

 
 
1,202,106

Treasury stock, at cost, 378,440,138 and 376,545,111 shares, respectively
 
(2,044,415
)
 
 
(1,864,967
)
Retained earnings
 
1,556,779

 
 
1,254,107

Accumulated other comprehensive losses
 
(42,861
)
 
 
(43,488
)
Total stockholders’ equity
 
725,984

 
 
547,589

Total liabilities and stockholders’ equity
$
2,677,700

 
$
2,504,451



7



VERISK ANALYTICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three and Nine Months Ended September 30, 2014 and 2013
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands, except for share and per share data)
Revenues
$
448,665

 
$
411,927

 
$
1,281,862

 
$
1,178,980

Expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues (exclusive of items shown separately below)
 
180,873

 
 
156,306

 
 
523,016

 
 
452,367

Selling, general and administrative
 
56,164

 
 
56,783

 
 
170,372

 
 
171,303

Depreciation and amortization of fixed assets
 
21,951

 
 
16,745

 
 
62,455

 
 
46,719

Amortization of intangible assets
 
14,187

 
 
15,258

 
 
42,620

 
 
49,371

Total expenses
 
273,175

 
 
245,092

 
 
798,463

 
 
719,760

Operating income
 
175,490

 
 
166,835

 
 
483,399

 
 
459,220

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Investment income and others
 
(285
)
 
 
225

 
 
(76
)
 
 
203

Interest expense
 
(17,498
)
 
 
(18,692
)
 
 
(52,396
)
 
 
(58,486
)
Total other expense, net
 
(17,783
)
 
 
(18,467
)
 
 
(52,472
)
 
 
(58,283
)
Income before income taxes
 
157,707

 
 
148,368

 
 
430,927

 
 
400,937

Provision for income taxes
 
(58,692
)
 
 
(53,474
)
 
 
(159,372
)
 
 
(144,998
)
Income from continuing operations

99,015

 

94,894

 

271,555

 

255,939

Income from discontinued operations, net of tax of $0 and $1,211, and $23,365 and $4,088, for the three and nine months ended, September 30, 2014 and September 30, 2013, respectively
 

 
 
1,547

 
 
31,117

 
 
5,218

Net income
$
99,015

 
$
96,441

 
$
302,672

 
$
261,157

Basic net income per share:
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
$
0.60

 
$
0.56

 
$
1.63

 
$
1.52

Income from discontinued operations
 

 
 
0.01

 
 
0.19

 
 
0.03

Basic net income per share
$
0.60

 
$
0.57

 
$
1.82

 
$
1.55

Diluted net income per share:
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
$
0.58

 
$
0.55

 
$
1.60

 
$
1.48

Income from discontinued operations
 

 
 
0.01

 
 
0.18

 
 
0.03

Diluted net income per share
$
0.58

 
$
0.56

 
$
1.78

 
$
1.51

Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
166,187,540

 
 
168,044,100

 
 
166,504,384

 
 
168,089,919

Diluted
 
169,522,448

 
 
172,154,553

 
 
169,815,867

 
 
172,460,960








8



VERISK ANALYTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Nine Months Ended September 30, 2014 and 2013
 
2014
 
2013
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
 
Net income
$
302,672

 
$
261,157

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization of fixed assets
 
63,450

 
 
49,729

Amortization of intangible assets
 
42,731

 
 
49,796

Amortization of debt issuance costs and original issue discount
 
1,989

 
 
2,048

Allowance for doubtful accounts
 
953

 
 
1,188

KSOP compensation expense
 
11,613

 
 
11,174

Stock based compensation
 
16,323

 
 
16,745

Gain on sale of discontinued operations
 
(65,410
)
 
 

Realized (gain) loss on available-for-sale securities, net
 
(122
)
 
 
99

Deferred income taxes
 
(3,348
)
 
 
5,888

Loss on disposal of fixed assets
 
510

 
 
476

Excess tax benefits from exercised stock options and restricted stock awards
 
(16,665
)
 
 
(81,689
)
Other operating activities, net
 

 
 
448

Changes in assets and liabilities, net of effects from acquisitions:
 
 
 
 
 
Accounts receivable
 
(23,530
)
 
 
9,475

Prepaid expenses and other assets
 
(12,102
)
 
 
(4,727
)
Income taxes
 
45,369

 
 
48,554

Accounts payable and accrued liabilities
 
(2,164
)
 
 
12,267

Fees received in advance
 
26,651

 
 
43,372

Pension and postretirement benefits
 
(9,763
)
 
 
(6,532
)
Other liabilities
 
(522
)
 
 
(33,016
)
Net cash provided by operating activities
 
378,635

 
 
386,452

Cash flows from investing activities:
 
 
 
 
 
Acquisitions
 
(4,001
)
 
 
(983
)
Purchase of non-controlling interest in non-public companies
 
(5,000
)
 
 

Proceeds from sale of discontinued operations
 
151,170

 
 

Proceeds from release of acquisition related escrows
 

 
 
280

Purchases of fixed assets
 
(102,992
)
 
 
(107,915
)
Purchases of available-for-sale securities
 
(83
)
 
 
(5,003
)
Proceeds from sales and maturities of available-for-sale securities
 
381

 
 
5,825

Other investing activities, net
 

 
 
439

Net cash provided by (used in) investing activities
 
39,475

 
 
(107,357
)
Cash flows from financing activities:
 
 
 
 
 
Repayment of current portion of long-term debt
 

 
 
(145,000
)
Repayment of short-term debt, net
 

 
 
(10,000
)
Repurchases of Class A common stock
 
(183,093
)
 
 
(160,970
)
Excess tax benefits from exercised stock options and restricted stock awards
 
16,665

 
 
81,689

Proceeds from stock options exercised
 
20,855

 
 
51,326

Net share settlement of restricted stock awards
 
(1,613
)
 
 

Other financing activities, net
 
(4,448
)
 
 
(5,350
)
Net cash used in financing activities
 
(151,634
)
 
 
(188,305
)
Effect of exchange rate changes
 
213

 
 
(406
)
Increase in cash and cash equivalents
 
266,689

 
 
90,384

Cash and cash equivalents, beginning of period
 
165,801

 
 
89,819

Cash and cash equivalents, end of period
$
432,490

 
$
180,203

Supplemental disclosures:
 
 
 
 
 
Taxes paid
$
140,462

 
$
102,203

Interest paid
$
50,567

 
$
58,018

Noncash investing and financing activities:
 
 
 
 
 
Repurchases of Class A common stock included in accounts payable and accrued liabilities
$
4,878

 
$
2,622

Deferred tax liability established on date of acquisition
$

 
$
(1,187
)
Tenant improvement included in other liabilities
$
8,856

 
$

Capital lease obligations
$
4,682

 
$
9,014

Capital expenditures included in accounts payable and accrued liabilities
$
1,662

 
$
2,890


9