Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity:

The Company has 2,000,000,000 shares of authorized common stock. The common shares have rights to any dividend declared by the board of directors (the "Board"), subject to any preferential or other rights of any outstanding preferred stock, and voting rights to elect all twelve members of the Board.

The Company has 80,000,000 shares of authorized preferred stock, par value $0.001 per share. The preferred shares have preferential rights over the common shares with respect to dividends and net distribution upon liquidation. The Company did not issue any preferred shares as of March 31, 2016.

Share Repurchase Program

Since the introduction of the Repurchase Program as a feature of the Company's capital management strategies in 2010, the Company has authorized repurchases of up to $2,300,000 of its common stock and has repurchased shares with an aggregate value of $1,947,011. The Company repurchased 1,663,095 shares of common stock with an aggregate value of $116,363 during the three months ended March 31, 2016. As of March 31, 2016, the Company had $352,989 available to repurchase shares. The Company has no obligation to repurchase stock under this program and intends to use this authorization as a means of offsetting dilution from the issuance of shares under the KSOP, the Verisk 2013 Equity Incentive Plan (the “2013 Incentive Plan”), the Verisk 2009 Equity Incentive Plan (the “2009 Incentive Plan”), and the ISO 1996 Incentive Plan (the “1996 Incentive Plan”), while providing flexibility to repurchase additional shares if warranted. This authorization has no expiration date and may be increased, reduced, suspended, or terminated at any time. Shares that are repurchased under the Repurchase Program will be recorded as treasury stock and will be available for future issuance.

Treasury Stock

As of March 31, 2016, the Company’s treasury stock consisted of 376,022,975 shares of common stock. During the three months ended March 31, 2016, the Company reissued 218,177 shares of common stock from the treasury shares at a weighted average price of $7.09 per share.

Earnings Per Share (“EPS”)

Basic EPS is computed by dividing income from continuing operations, income from discontinued operations and net income, respectively, by the weighted average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding, using the treasury stock method, if the dilutive potential common shares, including stock options, nonvested restricted stock, and nonvested restricted stock units, had been issued.

The following is a reconciliation of the numerators and denominators of the basic and diluted EPS computations for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016			2015
Numerator used in basic and diluted EPS:
Income from continuing operations	$	109,730		$	96,373
(Loss) income from discontinued operations (Note 6)		(17,091	)		2,313
Net income	$	92,639		$	98,686
Denominator:
Weighted average number of common shares used in basic EPS		168,453,750			158,087,919
Effect of dilutive shares:
Potential common shares issuable from stock options and stock awards		3,027,134			3,393,294
Weighted average number of common shares and dilutive potential common shares used in diluted EPS		171,480,884			161,481,213

The potential shares of common stock that were excluded from diluted EPS were 1,674,484 and 1,604 for the three months ended March 31, 2016 and 2015, respectively, because the effect of including these potential shares was anti-dilutive.

Accumulated Other Comprehensive Losses

The following is a summary of accumulated other comprehensive losses as of March 31, 2016 and December 31, 2015:

	2016			2015
Foreign currency translation adjustment	$	(241,171	)	$	(165,828	)
Unrealized holding gains on available-for-sale securities, net of tax		114			3
Pension and postretirement adjustment, net of tax		(75,720	)		(76,227	)
Accumulated other comprehensive losses	$	(316,777	)	$	(242,052	)

The before tax and after tax amounts of other comprehensive income for the three months ended March 31, 2016 and 2015 are summarized below:

	Before Tax			Tax Benefit  (Expense)			After Tax
For the Three Months Ended March 31, 2016
Foreign currency translation adjustment	$	(75,343	)	$	—		$	(75,343	)
Unrealized holding gain on available-for-sale securities before reclassifications		369			(141	)		228
Amount reclassified from accumulated other comprehensive losses (1)		(190	)		73			(117	)
Unrealized holding gain on available-for-sale securities		179			(68	)		111
Pension and postretirement adjustment before reclassifications		1,725			(673	)		1,052
Amortization of net actuarial loss and prior service benefit reclassified from accumulated other comprehensive losses (2)		(883	)		338			(545	)
Pension and postretirement adjustment		842			(335	)		507
Total other comprehensive loss	$	(74,322	)	$	(403	)	$	(74,725	)
For the Three Months Ended March 31, 2015
Foreign currency translation adjustment	$	(220	)	$	—		$	(220	)
Unrealized holding gain on available-for-sale securities before reclassifications		105			(40	)		65
Amount reclassified from accumulated other comprehensive losses (1)		(5	)		2			(3	)
Unrealized holding gain on available-for-sale securities		100			(38	)		62
Pension and postretirement adjustment before reclassifications		1,828			(651	)		1,177
Amortization of net actuarial loss and prior service benefit reclassified from accumulated other comprehensive losses (2)		(914	)		351			(563	)
Pension and postretirement adjustment		914			(300	)		614
Total other comprehensive income	$	794		$	(338	)	$	456

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(1) This accumulated other comprehensive loss component, before tax, is included under “Investment income and others, net” in the accompanying condensed consolidated statements of operations.

(2) 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).