XML 33 R24.htm IDEA: XBRL DOCUMENT
v3.23.2

Note 14 - Segment Reporting | 6 Months Ended
--- | ---
Jun. 30, 2023
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 14. Segment Reporting: ASC 280-10, Disclosures About Segments of an Enterprise and Related Information (“ASC 280-10”), establishes standards for reporting information about operating segments. ASC 280-10 requires that a public business enterprise reports financial and descriptive information about its reportable operating segments. Operating segments are components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our President and Chief Executive Officer ("CEO") is identified as the CODM as defined by ASC 280-10. Each of the reportable segments, Insurance, Energy and Specialized Markets, and Financial Services, has a portion of its revenue from more than one of the three revenue types described within our revenue recognition policy. Below is the overview of the solutions offered within each reportable segment. Insurance: We are the leading provider of statistical, actuarial, and underwriting data for the U.S. P&C insurance industry. Our databases include cleansed and standardized records describing premiums and losses in insurance transactions, casualty and property risk attributes for commercial buildings and their occupants, and fire suppression capabilities of municipalities. We use this data to create policy language and proprietary risk classifications that are industry standards and to generate prospective loss cost estimates used to price insurance policies, which are accessed via a hosted platform. We also develop solutions that our customers use to analyze key processes in managing risk. Our combination of algorithms and analytic methods incorporates our proprietary data to generate solutions. We also help businesses and governments better anticipate and manage climate and weather-related risks. In most cases, our customers integrate the solutions into their models, formulas or underwriting criteria in order to predict potential loss events, ranging from hurricanes to earthquakes. We develop catastrophe and extreme event models and offer solutions covering natural and man-made risks, including acts of terrorism. We further develop solutions that allow customers to quantify costs after loss events occur. Our multitier, multispectral terrestrial imagery and data acquisition, processing, analytics, and distribution system using the remote sensing and machine learning technologies help gather, store, process, and deliver geographic and spatially referenced information that supports uses in many markets. Additionally, we offer fraud-detection solutions including review of data on claim histories, analysis of claims to find emerging patterns of fraud, and identification of suspicious claims in the insurance sector. Our underwriting, insurance anti-fraud claims, catastrophe modeling, and loss quantification solutions are included in this segment. Energy and Specialized Markets: This segment was comprised of our Energy business and Specialized Markets business. On March 11, 2022, we completed the sale of 3E Company Environmental, Ecological and Engineering, which made up the Specialized Markets within this segment. Subsequently, on October 28, 2022, we entered into an equity purchase agreement to sell our Energy business. We determined that the sale of our Energy business met the “discontinued operations” criteria in accordance with ASC 205-20 in the fourth quarter of 2022 due to its relative size and strategic rationale. On February 1, 2023, we completed the sale of our Energy business, which made up the Energy with this "Energy and Specialized Markets" segment. Prior to the sale, we were a leading provider of data analytics via hosted platform for the global energy, chemicals, and metals and mining industries. Our research and consulting solutions focused on exploration strategies and screening, asset development and acquisition, commodity markets, and corporate analysis in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support. We gathered and managed proprietary information, insight, and analysis on oil and gas fields, mines, refineries, and other assets across the interconnected global energy sectors to advise customers in making asset investment and portfolio allocation decisions. Our analytical tools measured and observed environmental properties and translated those measurements into actionable information based on customer needs. In addition, we provided market and cost intelligence to energy companies to optimize financial results. We further offered a suite of data and information services that enable improved compliance with global Environmental Health and Safety requirements related to the safe manufacturing, distribution, transportation, usage, and disposal of chemicals and products. Financial Services: On April 8, 2022, we completed the sale of this segment. Prior to the sale, we maintained a bank account consortia to provide competitive benchmarking, decisioning algorithms, business intelligence, and customized analytic services that help financial institutions, payment networks and processors, alternative lenders, regulators, and merchants make better strategy, marketing, and risk decisions. Customers applied our solutions in the areas of tailored data management and media effectiveness that include business intelligence platforms, profile views, mobile data solutions, enterprise database services, and fraud risk scoring algorithms for marketing, fraud, and risk mitigation. As of February 1, 2023, we have determined that we have one operating segment and one reportable segment, Insurance, on a prospective basis. The segment is based on financial information that is utilized by the Company’s CODM, who is the Company’s CEO, to assess performance and allocate resources on a consolidated basis. We have included the results of our disposed of segments below for comparability purposes. We use EBITDA as the profitability measure for making decisions regarding ongoing operations. EBITDA is net income before interest expense, provision for income taxes, depreciation and amortization of fixed and intangible assets. EBITDA is the measure of operating results used to assess corporate performance and optimal utilization of debt and acquisitions. Operating expenses consist of direct and indirect costs principally related to personnel, facilities, software license fees, consulting, travel, and third-party information services. We do not allocate interest expense and provision for income taxes, since these items are not considered in evaluating the segment’s overall operating performance. In addition, our CODM does not evaluate the financial performance of each segment based on assets. See Note 6. Revenues for information on disaggregated revenues by type of service and by country. The following tables provide our revenue and EBITDA by reportable segment for the three and six months ended June 30, 2023 and 2022, and the reconciliation of EBITDA to income before income taxes as shown in our accompanying condensed consolidated statements of operations:
|  | For the Three Months Ended |
|  | June 30, 2023 |  |  | June 30, 2022 |
|  | Insurance |  |  | Energy and Specialized Markets |  |  | Total |  |  | Insurance |  |  | Energy and Specialized Markets |  |  | Financial Services |  |  | Total |
Revenues |  | $ | 675.0 |  |  | $ | — |  |  | $ | 675.0 |  |  | $ | 610.0 |  |  | $ | — |  |  | $ | 2.8 |  |  | $ | 612.8 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues (exclusive of items shown separately below) |  |  | (216.9 | ) |  |  | — |  |  |  | (216.9 | ) |  |  | (190.7 | ) |  |  | (2.8 | ) |  |  | (2.0 | ) |  |  | (195.5 | )
Selling, general and administrative |  |  | (86.8 | ) |  |  | — |  |  |  | (86.8 | ) |  |  | (86.9 | ) |  |  | (9.5 | ) |  |  | 0.1 |  |  |  | (96.3 | )
Other operating income (loss) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2.6 |  |  |  | (18.2 | ) |  |  | (15.6 | )
Investment (loss) income |  |  | (6.2 | ) |  |  | — |  |  |  | (6.2 | ) |  |  | (0.8 | ) |  |  | 0.1 |  |  |  | (0.2 | ) |  |  | (0.9 | )
EBITDA from discontinued operations of the Energy business |  |  | — |  |  |  | (8.4 | ) |  |  | (8.4 | ) |  |  | — |  |  |  | 59.0 |  |  |  | — |  |  |  | 59.0 |
EBITDA |  | $ | 365.1 |  |  | $ | (8.4 | ) |  |  | 356.7 |  |  | $ | 331.6 |  |  | $ | 49.4 |  |  | $ | (17.5 | ) |  |  | 363.5 |
EBITDA from discontinued operations of the Energy business |  |  |  |  |  |  |  |  |  |  | 8.4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (59.0 | )
Depreciation and amortization of fixed assets |  |  |  |  |  |  |  |  |  |  | (46.5 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (39.5 | )
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (18.8 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (18.3 | )
Interest expense |  |  |  |  |  |  |  |  |  |  | (31.6 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (31.9 | )
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 268.2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 214.8 |
|  | For the Six Months Ended |
|  | June 30, 2023 |  |  | June 30, 2022 |
|  | Insurance |  |  | Energy and Specialized Markets |  |  | Total |  |  | Insurance |  |  | Energy and Specialized Markets |  |  | Financial Services |  |  | Total |
Revenues |  | $ | 1,326.6 |  |  | $ | — |  |  | $ | 1,326.6 |  |  | $ | 1,196.4 |  |  | $ | 22.4 |  |  | $ | 37.6 |  |  | $ | 1,256.4 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues (exclusive of items shown separately below) |  |  | (433.1 | ) |  |  | — |  |  |  | (433.1 | ) |  |  | (384.5 | ) |  |  | (16.1 | ) |  |  | (23.6 | ) |  |  | (424.2 | )
Selling, general and administrative |  |  | (165.8 | ) |  |  | — |  |  |  | (165.8 | ) |  |  | (176.9 | ) |  |  | (20.1 | ) |  |  | (7.2 | ) |  |  | (204.2 | )
Other operating income (loss) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 453.4 |  |  |  | (91.9 | ) |  |  | 361.5 |
Investment loss |  |  | (7.3 | ) |  |  | — |  |  |  | (7.3 | ) |  |  | (1.9 | ) |  |  | (0.7 | ) |  |  | (0.2 | ) |  |  | (2.8 | )
EBITDA from discontinued operations of the Energy business |  |  | — |  |  |  | (145.3 | ) |  |  | (145.3 | ) |  |  | — |  |  |  | 113.1 |  |  |  | — |  |  |  | 113.1 |
EBITDA |  | $ | 720.4 |  |  | $ | (145.3 | ) |  |  | 575.1 |  |  | $ | 633.1 |  |  | $ | 552.0 |  |  | $ | (85.3 | ) |  |  | 1,099.8 |
EBITDA from discontinued operations of the Energy business |  |  |  |  |  |  |  |  |  |  | 145.3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (113.1 | )
Depreciation and amortization of fixed assets |  |  |  |  |  |  |  |  |  |  | (91.1 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (79.6 | )
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (36.5 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (39.5 | )
Interest expense |  |  |  |  |  |  |  |  |  |  | (58.0 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (63.2 | )
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 534.8 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 804.4 |
Long-lived assets by country are provided below:
|  | June 30, 2023 |  |  | December 31, 2022 |
Long-lived assets: |  |  |  |  |  |  |  |
U.S. |  | $ | 2,356.0 |  |  | $ | 2,876.5 |
U.K. |  |  | 606.5 |  |  |  | 2,428.9 |
Other countries |  |  | 498.4 |  |  |  | 730.6 |
Total long-lived assets |  | $ | 3,460.9 |  |  | $ | 6,036.0 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration