Item 6. Selected Financial Data

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Item 6. Selected Financial Data

The following selected historical financial data should be read in conjunction with, and are qualified by reference to, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and notes thereto included elsewhere in this annual report on Form 10-K. The consolidated statement of operations data for the years ended December 31, 2015, 2014 and 2013 and the consolidated balance sheet data as of December 31, 2015 and 2014 are derived from the audited consolidated financial statements included elsewhere in this annual report on Form 10-K. The consolidated statement of operations data for the years ended December 31, 2012 and 2011 and the consolidated balance sheet data as of December 31, 2013, 2012 and 2011 are derived from consolidated financial statements that are not included in this annual report on Form 10-K. Results for the year ended December 31, 2015 are not necessarily indicative of results that may be expected in any other future period.

Between January 1, 2011 and December 31, 2015, we acquired 12 businesses (most notably Wood Mackenzie on May 19, 2015), which may affect the comparability of our consolidated financial statements. Our consolidated financial statements have been retroactively adjusted in all periods presented to give recognition to the discontinued operations of our mortgage services business. The following table sets forth our statement of operations for the years ended December 31:



	2015			2014			2013			2012			2011
	(In thousands, except for share and per share data)
Revenues:
Decision Analytics	$	1,379,819		$	1,096,074		$	977,427		$	828,342		$	639,100
Risk Assessment		688,191			650,652			618,276			579,506			552,293
Revenues		2,068,010			1,746,726			1,595,703			1,407,848			1,191,393
Expenses:
Cost of revenues		803,274			716,598			622,523			516,708			440,979
Selling, general and administrative		312,690			227,306			228,982			220,068			199,495
Depreciation and amortization of fixed assets		120,620			85,506			66,190			46,637			40,135
Amortization of intangible assets		94,864			56,870			63,741			52,207			32,985
Acquisition related liabilities adjustment (1)		—			—			—			—			(3,364	)
Total expenses		1,331,448			1,086,280			981,436			835,620			710,230
Operating income		736,562			660,446			614,267			572,228			481,163
Other income (expense):
Investment income and others, net		17,003			158			609			106			879
Gain on derivative instruments		85,187			—			—			—			—
Interest expense		(121,316	)		(69,984	)		(76,136	)		(72,508	)		(53,847	)
Total other expense, net		(19,126	)		(69,826	)		(75,527	)		(72,402	)		(52,968	)
Income before income taxes from continuing operations		717,436			590,620			538,740			499,826			428,195
Provision for income taxes		(209,859	)		(219,755	)		(196,426	)		(182,363	)		(165,739	)
Income from continuing operations		507,577			370,865			342,314			317,463			262,456
Income from discontinued operations, net of tax (2)		—			29,177			6,066			11,679			20,302
Net income	$	507,577		$	400,042		$	348,380		$	329,142		$	282,758
Basic net income per share
Income from continuing operations	$	3.07		$	2.24		$	2.04		$	1.91		$	1.58
Income from discontinued operations		—			0.17			0.03			0.07			0.12
Basic net income per share	$	3.07		$	2.41		$	2.07		$	1.98		$	1.70
Diluted net income per share
Income from continuing operations	$	3.01		$	2.20		$	1.99		$	1.85		$	1.51
Income from discontinued operations		—			0.17			0.03			0.07			0.12
Diluted net income per share	$	3.01		$	2.37		$	2.02		$	1.92		$	1.63
Weighted average shares outstanding:
Basic		165,090,380			165,823,803			168,031,412			165,890,258			166,015,238
Diluted		168,451,343			169,132,423			172,276,360			171,709,518			173,325,110

The financial operating data below sets forth the information we believe is useful for investors in evaluating our overall financial performance for the years ended December 31:



	2015		2014		2013		2012		2011
	(In thousands)
Other data:
EBITDA (3):
Decision Analytics EBITDA	$	647,738	$	489,798	$	413,342	$	379,655	$	305,837
Risk Assessment EBITDA		406,498		368,770		346,931		316,260		287,050
EBITDA	$	1,054,236	$	858,568	$	760,273	$	695,915	$	592,887
The following is a reconciliation of net income to EBITDA:
Net income	$	507,577	$	400,042	$	348,380	$	329,142	$	282,758
Depreciation and amortization of fixed and intangible assets from continuing operations		215,484		142,376		129,931		98,844		73,120
Interest expense from continuing operations		121,316		69,984		76,136		72,508		53,847
Provision for income taxes from continuing operations		209,859		219,755		196,426		182,363		165,739
Depreciation, amortization, interest and provision for income taxes from discontinued operations		—		26,411		9,400		13,058		17,423
EBITDA	$	1,054,236	$	858,568	$	760,273	$	695,915	$	592,887

The following table sets forth our consolidated balance sheet data as of the years ended December 31:



	2015		2014		2013		2012		2011
	(In thousands)
Balance Sheet Data:
Cash and cash equivalents	$	138,348	$	39,359	$	165,801	$	89,819	$	191,603
Total assets	$	5,615,927	$	2,345,330	$	2,504,451	$	2,360,336	$	1,541,106
Total debt (4)	$	3,167,990	$	1,436,932	$	1,275,887	$	1,461,425	$	1,105,886
Stockholders’ equity (deficit) (5)	$	1,372,011	$	211,043	$	547,589	$	255,591	$	(98,490	)


(1)	During the second quarter of 2011, we reevaluated the probability of D2Hawkeye and Strategic Analytics achieving the specified predetermined EBITDA and revenue targets for exceptional performance in fiscal year 2011 and reversed the contingent consideration related to these acquisitions.


(2)	On March 11, 2014, we sold our mortgage services business. Results of operations for the mortgage services business are reported as a discontinued operation for the year ended December 31, 2014 and for all prior periods presented. As necessary, the amounts have been retroactively adjusted in all periods presented to give recognition to the discontinued operations. See Note 10 of our consolidated financial statements included in this annual report on Form 10-K.

(2)

On March 11, 2014, we sold our mortgage services business. Results of operations for the mortgage services business are reported as a discontinued operation for the year ended December 31, 2014 and for all prior periods presented. As necessary, the amounts have been retroactively adjusted in all periods presented to give recognition to the discontinued operations. See Note 10 of our consolidated financial statements included in this annual report on Form 10-K.


(3)	EBITDA is the financial measure which management uses to evaluate the performance of our segments. “EBITDA” is defined as net income before interest expense, provision for income taxes, depreciation and amortization of fixed and intangible assets. Because EBITDA is calculated from net income, this presentation includes EBITDA from discontinued operations of our mortgage services business. In addition, this Management’s Discussion and Analysis includes references to EBITDA margin, which is computed as EBITDA divided by revenues from continuing and discontinued operations. See Note 18 of our consolidated financial statements included in this annual report on Form 10-K.

(3)

EBITDA is the financial measure which management uses to evaluate the performance of our segments. “EBITDA” is defined as net income before interest expense, provision for income taxes, depreciation and amortization of fixed and intangible assets. Because EBITDA is calculated from net income, this presentation includes EBITDA from discontinued operations of our mortgage services business. In addition, this Management’s Discussion and Analysis includes references to EBITDA margin, which is computed as EBITDA divided by revenues from continuing and discontinued operations. See Note 18 of our consolidated financial statements included in this annual report on Form 10-K.

Although EBITDA is a non-GAAP financial measure, EBITDA is frequently used by securities analysts, lenders and others 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 results of operations or cash flow from operating activities reported under GAAP. Management uses EBITDA in conjunction with traditional GAAP operating performance measures as part of its overall assessment of company performance. Some of these limitations are:


•	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 non-cash 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.


(4)	Includes capital lease obligations.


(5)	Subsequent to our corporate reorganization on October 6, 2009, share repurchases are recorded as treasury stock within stockholders’ equity (deficit), as we intend to reissue shares from treasury stock in the future. For the years ended December 31, 2015 and 2014, we repurchased $120.5 million and $675.4 million, respectively, of treasury stock.

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