(Mark One) | |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda | 001-36495 | 98-1166311 |
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (IRS Employer Identification Number) |
Large accelerated filer | x | Accelerated filer | o | ||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o | ||
Emerging growth company | o |
Page | ||
Item 1. | Financial Statements |
As of | As of | ||||||
May 31, 2018 | November 30, 2017 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 159.0 | $ | 133.8 | |||
Accounts receivable, net | 704.2 | 693.5 | |||||
Income tax receivable | 29.9 | 31.9 | |||||
Deferred subscription costs | 77.6 | 62.8 | |||||
Assets held for sale | 1,151.2 | — | |||||
Other current assets | 85.2 | 93.0 | |||||
Total current assets | 2,207.1 | 1,015.0 | |||||
Non-current assets: | |||||||
Property and equipment, net | 508.9 | 531.3 | |||||
Intangible assets, net | 3,544.8 | 4,188.3 | |||||
Goodwill | 8,142.1 | 8,778.5 | |||||
Deferred income taxes | 11.1 | 7.1 | |||||
Other | 51.8 | 34.2 | |||||
Total non-current assets | 12,258.7 | 13,539.4 | |||||
Total assets | $ | 14,465.8 | $ | 14,554.4 | |||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 105.8 | $ | 576.0 | |||
Accounts payable | 42.1 | 53.4 | |||||
Accrued compensation | 95.2 | 157.4 | |||||
Other accrued expenses | 347.1 | 323.0 | |||||
Income tax payable | 13.0 | 5.5 | |||||
Deferred revenue | 872.0 | 790.8 | |||||
Liabilities held for sale | 86.5 | — | |||||
Total current liabilities | 1,561.7 | 1,906.1 | |||||
Long-term debt, net | 4,353.7 | 3,617.3 | |||||
Accrued pension and postretirement liability | 30.9 | 31.8 | |||||
Deferred income taxes | 594.4 | 869.8 | |||||
Other liabilities | 148.5 | 105.9 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 7.9 | 19.1 | |||||
Shareholders' equity: | |||||||
Common shares, $0.01 par value, 3,000.0 authorized, 472.3 and 468.7 issued, and 392.0 and 399.2 outstanding at May 31, 2018 and November 30, 2017, respectively | 4.7 | 4.7 | |||||
Additional paid-in capital | 7,617.3 | 7,612.1 | |||||
Treasury shares, at cost: 80.3 and 69.5 at May 31, 2018 and November 30, 2017, respectively | (2,289.2 | ) | (1,745.0 | ) | |||
Retained earnings | 2,579.5 | 2,217.6 | |||||
Accumulated other comprehensive loss | (143.6 | ) | (85.0 | ) | |||
Total shareholders' equity | 7,768.7 | 8,004.4 | |||||
Total liabilities and equity | $ | 14,465.8 | $ | 14,554.4 |
Three months ended May 31, | Six months ended May 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 1,008.3 | $ | 906.1 | $ | 1,940.4 | $ | 1,750.3 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue | 368.4 | 337.7 | 711.3 | 664.7 | |||||||||||
Selling, general and administrative | 299.2 | 274.2 | 589.5 | 542.2 | |||||||||||
Depreciation and amortization | 131.0 | 122.8 | 261.6 | 243.6 | |||||||||||
Restructuring charges | — | (0.5 | ) | — | (0.7 | ) | |||||||||
Acquisition-related costs | 25.8 | 30.4 | 52.8 | 62.0 | |||||||||||
Net periodic pension and postretirement expense | 0.3 | 0.4 | 0.5 | 0.8 | |||||||||||
Other expense, net | 3.0 | 4.3 | 4.4 | 5.2 | |||||||||||
Total operating expenses | 827.7 | 769.3 | 1,620.1 | 1,517.8 | |||||||||||
Operating income | 180.6 | 136.8 | 320.3 | 232.5 | |||||||||||
Interest income | 0.9 | 0.6 | 1.6 | 1.1 | |||||||||||
Interest expense | (55.3 | ) | (37.7 | ) | (101.6 | ) | (69.5 | ) | |||||||
Non-operating expense, net | (54.4 | ) | (37.1 | ) | (100.0 | ) | (68.4 | ) | |||||||
Income from continuing operations before income taxes and equity in loss of equity method investee | 126.2 | 99.7 | 220.3 | 164.1 | |||||||||||
Benefit (provision) for income taxes | (12.0 | ) | 1.0 | 134.6 | 4.6 | ||||||||||
Equity in loss of equity method investee | — | (1.9 | ) | — | (3.9 | ) | |||||||||
Net income | 114.2 | 98.8 | 354.9 | 164.8 | |||||||||||
Net loss attributable to noncontrolling interest | 0.5 | 0.5 | 1.1 | 0.5 | |||||||||||
Net income attributable to IHS Markit Ltd. | $ | 114.7 | $ | 99.3 | $ | 356.0 | $ | 165.3 | |||||||
Basic earnings per share attributable to IHS Markit Ltd. | $ | 0.29 | $ | 0.25 | $ | 0.90 | $ | 0.41 | |||||||
Weighted average shares used in computing basic earnings per share | 391.8 | 399.7 | 394.9 | 403.0 | |||||||||||
Diluted earnings per share attributable to IHS Markit Ltd. | $ | 0.28 | $ | 0.24 | $ | 0.87 | $ | 0.39 | |||||||
Weighted average shares used in computing diluted earnings per share | 403.6 | 415.6 | 407.9 | 418.9 |
Three months ended May 31, | Six months ended May 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 114.2 | $ | 98.8 | $ | 354.9 | $ | 164.8 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Net hedging activities (1) | 1.0 | (1.6 | ) | 5.8 | 1.4 | |||||||||||
Foreign currency translation adjustment | (114.9 | ) | 152.5 | (58.5 | ) | 127.6 | ||||||||||
Total other comprehensive income (loss) | (113.9 | ) | 150.9 | (52.7 | ) | 129.0 | ||||||||||
Comprehensive income | $ | 0.3 | $ | 249.7 | $ | 302.2 | $ | 293.8 | ||||||||
Comprehensive loss attributable to noncontrolling interest | 0.5 | 0.5 | 1.1 | 0.5 | ||||||||||||
Comprehensive income attributable to IHS Markit Ltd. | $ | 0.8 | $ | 250.2 | $ | 303.3 | $ | 294.3 | ||||||||
(1) Net of tax expense (benefit) of $0.2 million; $(0.4) million; $1.3 million; and $0.4 million for the three and six months ended May 31, 2018 and 2017, respectively. |
Six months ended May 31, | |||||||
2018 | 2017 | ||||||
Operating activities: | |||||||
Net income | $ | 354.9 | $ | 164.8 | |||
Reconciliation of net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 261.6 | 243.6 | |||||
Stock-based compensation expense | 119.6 | 139.8 | |||||
Net periodic pension and postretirement expense | 0.5 | 0.8 | |||||
Undistributed earnings of affiliates, net | — | 0.6 | |||||
Pension and postretirement contributions | (1.3 | ) | (1.3 | ) | |||
Deferred income taxes | (184.2 | ) | (22.5 | ) | |||
Change in assets and liabilities: | |||||||
Accounts receivable, net | (47.7 | ) | (10.4 | ) | |||
Other current assets | (16.7 | ) | (41.4 | ) | |||
Accounts payable | (10.5 | ) | (13.8 | ) | |||
Accrued expenses | (38.8 | ) | (96.1 | ) | |||
Income tax | 18.1 | (11.0 | ) | ||||
Deferred revenue | 91.0 | 94.0 | |||||
Other liabilities | 39.1 | 4.2 | |||||
Net cash provided by operating activities | 585.6 | 451.3 | |||||
Investing activities: | |||||||
Capital expenditures on property and equipment | (114.7 | ) | (130.5 | ) | |||
Acquisitions of businesses, net of cash acquired | (8.8 | ) | — | ||||
Change in other assets | (7.9 | ) | (0.3 | ) | |||
Settlements of forward contracts | (2.0 | ) | 9.0 | ||||
Net cash used in investing activities | (133.4 | ) | (121.8 | ) | |||
Financing activities: | |||||||
Proceeds from borrowings | 1,427.6 | 1,790.0 | |||||
Repayment of borrowings | (1,159.9 | ) | (1,185.2 | ) | |||
Payment of debt issuance costs | (14.6 | ) | (9.5 | ) | |||
Payments for purchase of noncontrolling interests | (7.7 | ) | — | ||||
Proceeds from the exercise of employee stock options | 111.9 | 187.5 | |||||
Payments related to tax withholding for stock-based compensation | (79.1 | ) | (70.3 | ) | |||
Repurchases of common shares | (672.5 | ) | (1,005.7 | ) | |||
Net cash used in financing activities | (394.3 | ) | (293.2 | ) | |||
Foreign exchange impact on cash balance | (32.7 | ) | (12.7 | ) | |||
Net increase in cash and cash equivalents | 25.2 | 23.6 | |||||
Cash and cash equivalents at the beginning of the period | 133.8 | 138.9 | |||||
Cash and cash equivalents at the end of the period | $ | 159.0 | $ | 162.5 |
Common Shares | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||
Shares Outstanding | Amount | Treasury Shares | Retained Earnings | ||||||||||||||||||||||||||||
Balance at November 30, 2017 (Audited) | 399.2 | $ | 4.7 | $ | 7,612.1 | $ | (1,745.0 | ) | $ | 2,217.6 | $ | (85.0 | ) | $ | 8,004.4 | $ | 19.1 | ||||||||||||||
Repurchases of common shares | (14.2 | ) | — | — | (672.5 | ) | — | — | (672.5 | ) | — | ||||||||||||||||||||
Share-based award activity | 2.1 | — | (105.9 | ) | 128.3 | — | — | 22.4 | — | ||||||||||||||||||||||
Option exercises | 4.9 | — | 111.1 | — | — | — | 111.1 | — | |||||||||||||||||||||||
Net income (loss) | — | — | — | — | 356.0 | — | 356.0 | (1.1 | ) | ||||||||||||||||||||||
Impact of the Tax Cuts and Jobs Act of 2017 | — | — | — | — | 5.9 | (5.9 | ) | — | — | ||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | — | — | — | (10.1 | ) | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (52.7 | ) | (52.7 | ) | — | |||||||||||||||||||||
Balance at May 31, 2018 | 392.0 | $ | 4.7 | $ | 7,617.3 | $ | (2,289.2 | ) | $ | 2,579.5 | $ | (143.6 | ) | $ | 7,768.7 | $ | 7.9 |
1. | Basis of Presentation and Significant Accounting Policies |
2. | Business Combinations and Divestitures |
Total | |||
Assets: | |||
Current assets | $ | 7.3 | |
Property and equipment | 1.1 | ||
Intangible assets | 113.8 | ||
Goodwill | 369.9 | ||
Other long-term assets | 0.9 | ||
Total assets | 493.0 | ||
Liabilities: | |||
Current liabilities | 4.6 | ||
Deferred revenue | 1.4 | ||
Deferred taxes | 42.9 | ||
Total liabilities | 48.9 | ||
Purchase price | $ | 444.1 |
Current assets | $ | 44.9 | |
Property and equipment | 43.9 | ||
Intangible assets | 450.2 | ||
Goodwill | 612.2 | ||
Assets held for sale | $ | 1,151.2 | |
Current liabilities | $ | 9.7 | |
Deferred income taxes | 76.8 | ||
Liabilities held for sale | $ | 86.5 |
3. | Intangible Assets |
As of May 31, 2018 | As of November 30, 2017 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||
Information databases | $ | 749.1 | $ | (370.9 | ) | $ | 378.2 | $ | 753.7 | $ | (340.2 | ) | $ | 413.5 | |||||||||
Customer relationships | 2,609.1 | (393.3 | ) | 2,215.8 | 2,957.8 | (348.6 | ) | 2,609.2 | |||||||||||||||
Developed technology | 655.4 | (80.3 | ) | 575.1 | 827.6 | (73.4 | ) | 754.2 | |||||||||||||||
Developed computer software | 85.4 | (58.8 | ) | 26.6 | 85.6 | (54.3 | ) | 31.3 | |||||||||||||||
Trademarks | 481.3 | (132.5 | ) | 348.8 | 488.9 | (111.4 | ) | 377.5 | |||||||||||||||
Other | 7.8 | (7.5 | ) | 0.3 | 8.3 | (5.7 | ) | 2.6 | |||||||||||||||
Total intangible assets | $ | 4,588.1 | $ | (1,043.3 | ) | $ | 3,544.8 | $ | 5,121.9 | $ | (933.6 | ) | $ | 4,188.3 |
Year | Amount | |||
Remainder of 2018 | $ | 157.7 | ||
2019 | $ | 293.7 | ||
2020 | $ | 286.4 | ||
2021 | $ | 281.0 | ||
2022 | $ | 262.1 | ||
Thereafter | $ | 2,263.9 |
4. | Debt |
May 31, 2018 | November 30, 2017 | |||||||
2016 revolving facility | $ | 1,335.0 | $ | 886.0 | ||||
2016 term loan: | ||||||||
Tranche A-1 | 598.6 | 615.0 | ||||||
Tranche A-2 | 501.9 | 515.6 | ||||||
2017 term loan | — | 500.0 | ||||||
5.00% senior notes due 2022 | 750.0 | 750.0 | ||||||
4.75% senior notes due 2025 | 814.8 | 815.8 | ||||||
4.00% senior notes due 2026 | 500.0 | — | ||||||
Institutional senior notes: | ||||||||
Series A | — | 95.8 | ||||||
Series B | — | 53.7 | ||||||
Debt issuance costs | (44.2 | ) | (42.8 | ) | ||||
Capital leases | 3.4 | 4.2 | ||||||
Total debt | $ | 4,459.5 | $ | 4,193.3 | ||||
Current portion | (105.8 | ) | (576.0 | ) | ||||
Total long-term debt | $ | 4,353.7 | $ | 3,617.3 |
5. | Derivatives |
Fair Value of Derivative Instruments | Location on consolidated balance sheets | |||||||||
May 31, 2018 | November 30, 2017 | |||||||||
Assets: | ||||||||||
Derivatives not designated as accounting hedges: | ||||||||||
Foreign currency forwards | $ | 1.0 | $ | 2.8 | Other current assets | |||||
Total | $ | 1.0 | $ | 2.8 | ||||||
Liabilities: | ||||||||||
Derivatives designated as accounting hedges: | ||||||||||
Interest rate swaps | $ | 1.8 | $ | 8.9 | Other liabilities | |||||
Derivatives not designated as accounting hedges: | ||||||||||
Foreign currency forwards | 1.8 | 1.7 | Other accrued expenses | |||||||
Total | $ | 3.6 | $ | 10.6 |
Amount of loss (gain) recognized in the consolidated statements of operations | ||||||||||||||||||
Three months ended May 31, | Six months ended May 31, | Location on consolidated statements of operations | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Foreign currency forwards | $ | 5.7 | $ | (9.7 | ) | $ | 3.8 | $ | (6.1 | ) | Other expense, net |
Three months ended May 31, | Six months ended May 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Beginning balance | $ | (3.3 | ) | $ | (7.5 | ) | $ | (3.9 | ) | $ | (10.5 | ) | ||||
Amount of gain (loss) recognized in AOCI: | ||||||||||||||||
Interest rate swaps | 0.2 | (2.3 | ) | 3.8 | (1.1 | ) | ||||||||||
Foreign currency forwards | — | (0.6 | ) | — | (0.2 | ) | ||||||||||
Amount of loss (gain) reclassified from AOCI to income: | ||||||||||||||||
Interest rate swaps (1) | 0.8 | 1.5 | 2.0 | 3.2 | ||||||||||||
Foreign currency forwards (1) | — | (0.2 | ) | — | (0.5 | ) | ||||||||||
Amount of loss reclassified from AOCI to retained earnings | — | — | (4.2 | ) | — | |||||||||||
Ending balance | $ | (2.3 | ) | $ | (9.1 | ) | $ | (2.3 | ) | $ | (9.1 | ) | ||||
(1) Pre-tax amounts reclassified from AOCI related to interest rate swaps are recorded in interest expense, and pre-tax amounts reclassified from AOCI into income related to foreign currency forwards are recorded in revenue. |
6. | Acquisition-related Costs |
Employee Severance and Other Termination Benefits | Contract Termination Costs | Other | Total | ||||||||||||
Balance at November 30, 2017 | $ | 13.9 | $ | 17.6 | $ | 23.7 | $ | 55.2 | |||||||
Add: Costs incurred | 16.1 | 2.9 | 32.7 | 51.7 | |||||||||||
Revision to prior estimates | 0.8 | 0.5 | (0.2 | ) | 1.1 | ||||||||||
Less: Amount paid | (21.9 | ) | (8.4 | ) | (10.6 | ) | (40.9 | ) | |||||||
Balance at May 31, 2018 | $ | 8.9 | $ | 12.6 | $ | 45.6 | $ | 67.1 |
7. | Stock-based Compensation |
Three months ended May 31, | Six months ended May 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenue | $ | 16.7 | $ | 21.8 | $ | 34.7 | $ | 37.7 | |||||||
Selling, general and administrative | 41.0 | 42.8 | 84.9 | 102.1 | |||||||||||
Total stock-based compensation expense | $ | 57.7 | $ | 64.6 | $ | 119.6 | $ | 139.8 |
Shares | Weighted- Average Grant Date Fair Value | |||||
(in millions) | ||||||
Balance at November 30, 2017 | 10.7 | $ | 35.64 | |||
Granted | 3.1 | $ | 47.59 | |||
Vested | (4.6 | ) | $ | 33.90 | ||
Forfeited | (0.4 | ) | $ | 41.03 | ||
Balance at May 31, 2018 | 8.8 | $ | 40.55 |
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||
(in millions) | (in years) | (in millions) | |||||||||
Balance at November 30, 2017 | 25.3 | $ | 25.69 | ||||||||
Exercised | (4.9 | ) | $ | 22.76 | |||||||
Forfeited | — | $ | — | ||||||||
Balance at May 31, 2018 | 20.4 | $ | 26.39 | 2.1 | 465.9 | ||||||
Vested and expected to vest at May 31, 2018 | 20.2 | $ | 26.39 | 2.1 | 461.3 | ||||||
Exercisable at May 31, 2018 | 8.9 | $ | 25.79 | 1.7 | 208.2 |
8. | Income Taxes |
9. | Commitments and Contingencies |
10. | Common Shares and Earnings per Share |
Three months ended May 31, | Six months ended May 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Weighted-average shares outstanding: | |||||||||||
Shares used in basic EPS calculation | 391.8 | 399.7 | 394.9 | 403.0 | |||||||
Effect of dilutive securities: | |||||||||||
RSUs/RSAs | 2.4 | 4.1 | 3.5 | 4.9 | |||||||
Stock options | 9.4 | 11.8 | 9.5 | 11.0 | |||||||
Shares used in diluted EPS calculation | 403.6 | 415.6 | 407.9 | 418.9 |
11. | Accumulated Other Comprehensive Income (Loss) |
Foreign currency translation | Net pension and OPEB liability | Unrealized losses on hedging activities | Total | |||||||||||||
Balance at November 30, 2017 | $ | (68.1 | ) | $ | (13.0 | ) | $ | (3.9 | ) | $ | (85.0 | ) | ||||
Other comprehensive income (loss) before reclassifications | (58.5 | ) | — | 3.8 | (54.7 | ) | ||||||||||
Reclassifications from AOCI to income | — | — | 2.0 | 2.0 | ||||||||||||
Reclassifications from AOCI to retained earnings | — | (1.7 | ) | (4.2 | ) | (5.9 | ) | |||||||||
Balance at May 31, 2018 | $ | (126.6 | ) | $ | (14.7 | ) | $ | (2.3 | ) | $ | (143.6 | ) |
12. | Segment Information |
Three months ended May 31, | Six months ended May 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | |||||||||||||||
Resources | $ | 237.0 | $ | 223.8 | $ | 442.3 | $ | 420.7 | |||||||
Transportation | 296.3 | 242.3 | 565.9 | 467.2 | |||||||||||
CMS | 138.9 | 130.6 | 276.5 | 257.1 | |||||||||||
Financial Services | 336.1 | 309.4 | 655.7 | 605.3 | |||||||||||
Total revenue | $ | 1,008.3 | $ | 906.1 | $ | 1,940.4 | $ | 1,750.3 | |||||||
Adjusted EBITDA | |||||||||||||||
Resources | $ | 100.5 | $ | 99.7 | $ | 185.4 | $ | 179.7 | |||||||
Transportation | 124.7 | 98.2 | 234.4 | 188.0 | |||||||||||
CMS | 29.9 | 31.7 | 61.7 | 60.3 | |||||||||||
Financial Services | 155.8 | 138.8 | 301.2 | 268.0 | |||||||||||
Shared services | (12.8 | ) | (15.5 | ) | (25.3 | ) | (22.9 | ) | |||||||
Total Adjusted EBITDA | $ | 398.1 | $ | 352.9 | $ | 757.4 | $ | 673.1 | |||||||
Reconciliation to the consolidated statements of operations: | |||||||||||||||
Interest income | 0.9 | 0.6 | 1.6 | 1.1 | |||||||||||
Interest expense | (55.3 | ) | (37.7 | ) | (101.6 | ) | (69.5 | ) | |||||||
Benefit (provision) for income taxes | (12.0 | ) | 1.0 | 134.6 | 4.6 | ||||||||||
Depreciation | (42.4 | ) | (39.1 | ) | (84.0 | ) | (75.2 | ) | |||||||
Amortization related to acquired intangible assets | (88.6 | ) | (83.7 | ) | (177.6 | ) | (168.4 | ) | |||||||
Stock-based compensation expense | (57.7 | ) | (64.6 | ) | (119.6 | ) | (139.8 | ) | |||||||
Restructuring charges | — | 0.5 | — | 0.7 | |||||||||||
Acquisition-related costs | (15.1 | ) | (30.4 | ) | (27.2 | ) | (62.0 | ) | |||||||
Acquisition-related performance compensation | (10.7 | ) | — | (25.6 | ) | — | |||||||||
Loss on debt extinguishment | (3.0 | ) | — | (3.0 | ) | — | |||||||||
Share of joint venture results not attributable to Adjusted EBITDA | — | 0.4 | — | 0.8 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interest | 0.5 | (0.6 | ) | 1.0 | (0.1 | ) | |||||||||
Net income attributable to IHS Markit Ltd. | $ | 114.7 | $ | 99.3 | $ | 356.0 | $ | 165.3 |
Three months ended May 31, | Six months ended May 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Recurring fixed revenue | $ | 698.1 | $ | 630.6 | $ | 1,381.4 | $ | 1,247.7 | |||||||
Recurring variable revenue | 125.9 | 116.0 | 243.0 | 222.4 | |||||||||||
Non-recurring revenue | 184.3 | 159.5 | 316.0 | 280.2 | |||||||||||
Total revenue | $ | 1,008.3 | $ | 906.1 | $ | 1,940.4 | $ | 1,750.3 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Transportation, which includes our Automotive; Maritime & Trade; and Aerospace, Defense & Security product offerings; |
• | Consolidated Markets & Solutions, which includes our Product Design; Technology, Media & Telecom; and Economics & Country Risk product offerings; and |
• | Organic – We define organic revenue growth as total revenue growth from continuing operations for all factors other than acquisitions and foreign currency movements. We drive this type of revenue growth through value realization (pricing), expanding wallet share of existing customers through up-selling and cross-selling efforts, securing new customer business, and through the sale of new or enhanced product offerings. |
• | Acquisitive – We define acquisitive revenue as the revenue generated from acquired products and services from the date of acquisition to the first anniversary date of that acquisition. This type of growth comes as a result of our strategy to purchase, integrate, and leverage the value of assets we acquire. We also include the impact of divestitures in this growth metric. |
• | Foreign currency – We define the foreign currency impact on revenue as the difference between current revenue at current exchange rates and current revenue at the corresponding prior period exchange rates. Due to the significance of revenue transacted in foreign currencies, we believe it is important to measure the impact of foreign currency movements on revenue. |
• | Recurring fixed revenue represents revenue generated from contracts specifying a relatively fixed fee for services delivered over the life of the contract. The fixed fee is typically paid annually or more periodically in advance. These contracts typically consist of subscriptions to our various information offerings and software maintenance, and the revenue is usually recognized over the life of the contract. The initial term of these contracts is typically annual and non-cancellable for the term of the subscription and may contain provisions for minimum monthly payments. |
• | Recurring variable revenue represents revenue from contracts that specify a fee for services which is typically not fixed. The variable fee is usually paid monthly in arrears. Recurring variable revenue is based on, among other factors, the number of trades processed, assets under management, or the number of positions we value. Many of these contracts do not have a maturity date, while the remainder have an initial term ranging from one to five years. Recurring variable revenue was derived entirely from the Financial Services segment for all periods presented. |
• | Non-recurring revenue represents consulting (e.g., research and analysis, modeling, and forecasting), services, single-document product sales, software license sales and associated services, conferences and events, and advertising. Our non-recurring products and services are an important part of our business because they complement our recurring business in creating strong and comprehensive customer relationships. |
• | EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are used by many of our investors, research analysts, investment bankers, and lenders to assess our operating performance. For example, a measure similar to Adjusted EBITDA is required by the lenders under our term loan and revolving credit agreements. We define EBITDA as net income plus or minus net interest, plus provision for income taxes, depreciation, and amortization. Our definition of Adjusted EBITDA further excludes primarily non-cash items and other items that we do not consider to be useful in assessing our operating performance (e.g., stock-based compensation expense, restructuring charges, acquisition-related costs and performance compensation, exceptional litigation, net other |
• | Free Cash Flow. We define free cash flow as net cash provided by operating activities less capital expenditures. |
Change in Total Revenue | ||||||||
Organic | Acquisitive | Foreign Currency | ||||||
Second quarter 2018 vs. second quarter 2017 | 8 | % | 2 | % | 2 | % | ||
Year-to-date 2018 vs. year-to-date 2017 | 7 | % | 2 | % | 2 | % |
Three months ended May 31, | Percentage Change | Six months ended May 31, | Percentage Change | ||||||||||||||||||
(In millions, except percentages) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Revenue: | |||||||||||||||||||||
Resources | $ | 237.0 | $ | 223.8 | 6 | % | $ | 442.3 | $ | 420.7 | 5 | % | |||||||||
Transportation | 296.3 | 242.3 | 22 | % | 565.9 | 467.2 | 21 | % | |||||||||||||
CMS | 138.9 | 130.6 | 6 | % | 276.5 | 257.1 | 8 | % | |||||||||||||
Financial Services | 336.1 | 309.4 | 9 | % | 655.7 | 605.3 | 8 | % | |||||||||||||
Total revenue | $ | 1,008.3 | $ | 906.1 | 11 | % | $ | 1,940.4 | $ | 1,750.3 | 11 | % |
Increase in revenue | |||||||||||||||||
Second quarter 2018 vs. second quarter 2017 | Year-to-date 2018 vs. year-to-date 2017 | ||||||||||||||||
Organic | Acquisitive | Foreign Currency | Organic | Acquisitive | Foreign Currency | ||||||||||||
Resources | 5 | % | — | % | 1 | % | 4 | % | — | % | 1 | % | |||||
Transportation | 14 | % | 7 | % | 2 | % | 12 | % | 6 | % | 2 | % | |||||
CMS | 4 | % | 1 | % | 2 | % | 5 | % | 1 | % | 2 | % | |||||
Financial Services | 7 | % | — | % | 2 | % | 6 | % | — | % | 2 | % |
Three months ended May 31, | Percent change | Six months ended May 31, | Percent change | ||||||||||||||||||||||||
(in millions, except percentages) | 2018 | 2017 | Total | Organic | 2018 | 2017 | Total | Organic | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Recurring fixed | $ | 698.1 | $ | 630.6 | 11 | % | 6 | % | $ | 1,381.4 | $ | 1,247.7 | 11 | % | 6 | % | |||||||||||
Recurring variable | 125.9 | 116.0 | 9 | % | 6 | % | 243.0 | 222.4 | 9 | % | 7 | % | |||||||||||||||
Non-recurring | 184.3 | 159.5 | 16 | % | 15 | % | 316.0 | 280.2 | 13 | % | 12 | % | |||||||||||||||
Total revenue | $ | 1,008.3 | $ | 906.1 | 11 | % | 8 | % | $ | 1,940.4 | $ | 1,750.3 | 11 | % | 7 | % | |||||||||||
As a percent of total revenue: | |||||||||||||||||||||||||||
Recurring fixed | 69 | % | 70 | % | 71 | % | 71 | % | |||||||||||||||||||
Recurring variable | 12 | % | 13 | % | 13 | % | 13 | % | |||||||||||||||||||
Non-recurring | 18 | % | 18 | % | 16 | % | 16 | % |
Three months ended May 31, | Percentage Change | Six months ended May 31, | Percentage Change | ||||||||||||||||||
(In millions, except percentages) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of revenue | $ | 368.4 | $ | 337.7 | 9 | % | $ | 711.3 | $ | 664.7 | 7 | % | |||||||||
SG&A expense | 299.2 | 274.2 | 9 | % | 589.5 | 542.2 | 9 | % | |||||||||||||
Total cost of revenue and SG&A expense | $ | 667.6 | $ | 611.9 | 9 | % | $ | 1,300.8 | $ | 1,206.9 | 8 | % | |||||||||
Depreciation and amortization expense | $ | 131.0 | $ | 122.8 | 7 | % | $ | 261.6 | $ | 243.6 | 7 | % | |||||||||
As a percent of revenue: | |||||||||||||||||||||
Total cost of revenue and SG&A expense | 66 | % | 68 | % | 67 | % | 69 | % | |||||||||||||
Depreciation and amortization expense | 13 | % | 14 | % | 13 | % | 14 | % |
Three months ended May 31, | Percentage Change | Six months ended May 31, | Percentage Change | ||||||||||||||||||
(In millions, except percentages) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||
Resources | $ | 100.5 | $ | 99.7 | 1 | % | $ | 185.4 | $ | 179.7 | 3 | % | |||||||||
Transportation | 124.7 | 98.2 | 27 | % | 234.4 | 188.0 | 25 | % | |||||||||||||
CMS | 29.9 | 31.7 | (6 | )% | 61.7 | 60.3 | 2 | % | |||||||||||||
Financial Services | 155.8 | 138.8 | 12 | % | 301.2 | 268.0 | 12 | % | |||||||||||||
Shared services | (12.8 | ) | (15.5 | ) | (25.3 | ) | (22.9 | ) | |||||||||||||
Total Adjusted EBITDA | $ | 398.1 | $ | 352.9 | 13 | % | $ | 757.4 | $ | 673.1 | 13 | % | |||||||||
As a percent of segment revenue: | |||||||||||||||||||||
Resources | 42 | % | 45 | % | 42 | % | 43 | % | |||||||||||||
Transportation | 42 | % | 41 | % | 41 | % | 40 | % | |||||||||||||
CMS | 22 | % | 24 | % | 22 | % | 23 | % | |||||||||||||
Financial Services | 46 | % | 45 | % | 46 | % | 44 | % |
Three months ended May 31, | Percentage Change | Six months ended May 31, | Percentage Change | ||||||||||||||||||
(In millions, except percentages) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net income attributable to IHS Markit Ltd. | $ | 114.7 | $ | 99.3 | 16 | % | $ | 356.0 | $ | 165.3 | 115 | % | |||||||||
Interest income | (0.9 | ) | (0.6 | ) | (1.6 | ) | (1.1 | ) | |||||||||||||
Interest expense | 55.3 | 37.7 | 101.6 | 69.5 | |||||||||||||||||
(Benefit) Provision for income taxes | 12.0 | (1.0 | ) | (134.6 | ) | (4.6 | ) | ||||||||||||||
Depreciation | 42.4 | 39.1 | 84.0 | 75.2 | |||||||||||||||||
Amortization | 88.6 | 83.7 | 177.6 | 168.4 | |||||||||||||||||
EBITDA | $ | 312.1 | $ | 258.2 | 21 | % | $ | 583.0 | $ | 472.7 | 23 | % | |||||||||
Stock-based compensation expense | 57.7 | 64.6 | 119.6 | 139.8 | |||||||||||||||||
Restructuring charges | — | (0.5 | ) | — | (0.7 | ) | |||||||||||||||
Acquisition-related costs | 15.1 | 30.4 | 27.2 | 62.0 | |||||||||||||||||
Acquisition-related performance compensation | 10.7 | — | 25.6 | — | |||||||||||||||||
Loss on debt extinguishment | 3.0 | — | 3.0 | — | |||||||||||||||||
Share of joint venture results not attributable to Adjusted EBITDA | — | (0.4 | ) | — | (0.8 | ) | |||||||||||||||
Adjusted EBITDA attributable to noncontrolling interest | (0.5 | ) | 0.6 | (1.0 | ) | 0.1 | |||||||||||||||
Adjusted EBITDA | $ | 398.1 | $ | 352.9 | 13 | % | $ | 757.4 | $ | 673.1 | 13 | % | |||||||||
Adjusted EBITDA as a percentage of revenue | 39.5 | % | 38.9 | % | 39.0 | % | 38.5 | % |
(In millions, except percentages) | As of May 31, 2018 | As of November 30, 2017 | Dollar change | Percent change | ||||||||||
Accounts receivable, net | $ | 704.2 | $ | 693.5 | $ | 10.7 | 2 | % | ||||||
Accrued compensation | $ | 95.2 | $ | 157.4 | $ | (62.2 | ) | (40 | )% | |||||
Deferred revenue | $ | 872.0 | $ | 790.8 | $ | 81.2 | 10 | % |
Six months ended May 31, | ||||||||||||||
(In millions, except percentages) | 2018 | 2017 | Dollar change | Percent change | ||||||||||
Net cash provided by operating activities | $ | 585.6 | $ | 451.3 | $ | 134.3 | 30 | % | ||||||
Net cash used in investing activities | $ | (133.4 | ) | $ | (121.8 | ) | $ | (11.6 | ) | 10 | % | |||
Net cash used in financing activities | $ | (394.3 | ) | $ | (293.2 | ) | $ | (101.1 | ) | 34 | % |
Six months ended May 31, | ||||||||||||||
(In millions, except percentages) | 2018 | 2017 | Dollar change | Percent change | ||||||||||
Net cash provided by operating activities | $ | 585.6 | $ | 451.3 | ||||||||||
Capital expenditures on property and equipment | (114.7 | ) | (130.5 | ) | ||||||||||
Free cash flow | $ | 470.9 | $ | 320.8 | $ | 150.1 | 47 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in millions) | |||||||||
March 1 - March 31, 2018: | ||||||||||||
Employee transactions (2) | 3,661 | $ | 48.90 | N/A | N/A | |||||||
Accelerated share repurchase program (1)(3) | 8,501,594 | 48.46 | 8,501,594 | 1,006.9 | ||||||||
April 1 - April 30, 2018: | ||||||||||||
Employee transactions (2) | 41,846 | $ | 48.47 | N/A | N/A | |||||||
May 1 - May 31, 2018: | ||||||||||||
Employee transactions (2) | 5,915 | $ | 51.58 | N/A | N/A | |||||||
Accelerated share repurchase program (3) | 1,816,897 | $ | 48.46 | 1,816,897 | 1,006.9 | |||||||
Total share repurchases | 10,369,913 | $ | 48.46 | 10,318,491 |
Item 6. | Exhibits |
(a) | Index of Exhibits |
Exhibit Number | Description | |
2.1 | Agreement and Plan of Merger, dated as of May 19, 2018, by and among Infinity Intermediate Holdings, LLC, Ipreo Parent Holdco LLC, Markit North America, Inc., Iredell Holdings LLC and, solely for the limited purposes set forth therein, IHS Markit Ltd. (Incorporated by reference to Exhibit 2.1 of the IHS Markit Ltd. Current Report on Form 8-K (file no. 001-36495) filed on May 23, 2018) | |
3.1 | Amended and Restated Bye-laws of IHS Markit Ltd. (Effective as of April 11, 2018) (Incorporated by reference to Exhibit 3.1 of the IHS Markit Ltd. Current Report on Form 8-K (file no. 001-36495) filed on April 12, 2018) | |
10.1 | Commitment Letter, dated as of May 19, 2018, by and among IHS Markit Ltd., HSBC Securities (USA) Inc. and HSBC Bank USA, National Association (Incorporated by reference to Exhibit 10.1 of the IHS Markit Ltd. Current Report on Form 8-K (file no. 001-36495) filed on May 23, 2018) | |
10.2 | Credit Agreement, dated as of June 25, 2018, by and among IHS Markit Ltd., the lenders from time to time party thereto and Bank of America, N.A., as administrative agent (Incorporated by reference to Exhibit 10.1 of the IHS Markit Ltd. Current Report on Form 8-K (file no. 001-36495) filed on June 26, 2018 (first Form 8-K)) | |
10.3 | Credit Agreement, dated as of June 25, 2018, by and among IHS Markit Ltd., the lenders from time to time party thereto and HSBC Bank USA, National Association, as administrative agent (Incorporated by reference to Exhibit 10.2 of the IHS Markit Ltd. Current Report on Form 8-K (file no. 001-36495) filed on June 26, 2018 (first Form 8-K)) | |
31.1* | ||
31.2* | ||
32* | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
IHS MARKIT LTD. | ||||
By: | /s/ Michael Easton | |||
Name: | Michael Easton | |||
Title: | Senior Vice President and Chief Accounting Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of IHS Markit Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Lance Uggla | |
Lance Uggla | |
Chairman and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of IHS Markit Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Todd S. Hyatt | |
Todd S. Hyatt | |
Executive Vice President and Chief Financial Officer |
/s/ Lance Uggla | |
Lance Uggla | |
Chairman and Chief Executive Officer | |
/s/ Todd S. Hyatt | |
Todd S. Hyatt | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information |
6 Months Ended |
---|---|
May 31, 2018
shares
| |
Entity Information [Line Items] | |
Entity Registrant Name | IHS Markit Ltd. |
Entity Central Index Key | 0001598014 |
Current Fiscal Year End Date | --11-30 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | May 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 392,016,480 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions |
May 31, 2018 |
Nov. 30, 2017 |
---|---|---|
Common shares, par value per share | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 3,000.0 | 3,000.0 |
Common shares, shares issued | 472.3 | 468.7 |
Common shares, shares outstanding | 392.0 | 399.2 |
Treasury shares, shares | 80.3 | 69.5 |
Condensed Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
|
Net income | $ 114.2 | $ 98.8 | $ 354.9 | $ 164.8 |
Other comprehensive income (loss), net of tax: | ||||
Net hedging activities | 1.0 | (1.6) | 5.8 | 1.4 |
Foreign currency translation adjustment | (114.9) | 152.5 | (58.5) | 127.6 |
Total other comprehensive income (loss) | (113.9) | 150.9 | (52.7) | 129.0 |
Comprehensive income | 0.3 | 249.7 | 302.2 | 293.8 |
Comprehensive loss attributable to noncontrolling interest | 0.5 | 0.5 | 1.1 | 0.5 |
Comprehensive income attributable to IHS Markit Ltd. | $ 0.8 | $ 250.2 | $ 303.3 | $ 294.3 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
|
Tax expense on net hedging activities | $ 0.2 | $ (0.4) | $ 1.3 | $ 0.4 |
Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions |
Total |
Common Shares [Member] |
Additional Paid-in Capital [Member] |
Treasury Shares [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Loss [Member] |
---|---|---|---|---|---|---|
Redeemable noncontrolling interests | $ 19.1 | |||||
Balance, shares at Nov. 30, 2017 | 399.2 | 399.2 | ||||
Balance (Audited) at Nov. 30, 2017 | $ 8,004.4 | $ 4.7 | $ 7,612.1 | $ (1,745.0) | $ 2,217.6 | $ (85.0) |
Repurchases of common shares, shares | (14.2) | |||||
Repurchases of common shares, value | (672.5) | 0.0 | (672.5) | |||
Share-based award activity, shares | 2.1 | |||||
Share-based award activity, value | $ 22.4 | (105.9) | 128.3 | |||
Option exercises, shares | 4.9 | 4.9 | ||||
Option exercises, value | $ 111.1 | 111.1 | ||||
Net income | 356.0 | 356.0 | ||||
Net loss attributable to noncontrolling interest | (1.1) | |||||
Impact of the Tax Cuts and Jobs Act of 2017 | 5.9 | (5.9) | ||||
Purchase of noncontrolling interests | (10.1) | |||||
Other comprehensive loss | $ (52.7) | (52.7) | ||||
Balance, shares at May. 31, 2018 | 392.0 | 392.0 | ||||
Balance at May. 31, 2018 | $ 7,768.7 | $ 4.7 | $ 7,617.3 | $ (2,289.2) | $ 2,579.5 | $ (143.6) |
Redeemable noncontrolling interests | $ 7.9 |
Basis of Presentation and Significant Accounting Policies |
6 Months Ended |
---|---|
May 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of IHS Markit have been prepared on substantially the same basis as our annual consolidated financial statements and should be read in conjunction with our Annual Report on Form 10-K for the year ended November 30, 2017. In our opinion, these condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented, and such adjustments are of a normal, recurring nature. Our business has seasonal aspects. Our first quarter generally has our lowest quarterly levels of revenue and profit. We also experience event-driven seasonality in our business; for instance, CERAWeek, an annual energy conference, is typically held in the second quarter of each year. Another example is the biennial release of the Boiler Pressure Vessel Code (“BPVC”) engineering standard, which generates revenue for us predominantly in the third quarter of every other year. The most recent BPVC release was in the third quarter of 2017. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In March, April, and May 2016, the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12, respectively, which provide further revenue recognition guidance related to principal versus agent considerations, performance obligations and licensing, and narrow-scope improvements and practical expedients. All of these standards will be effective for us in the first quarter of our fiscal year 2019. We have determined that we will use the modified retrospective transition method upon adoption. We are currently in the contract review and assessment phase of our implementation planning, and are continuing to evaluate the impact of these new standards on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, which requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. The ASU requires the use of a modified retrospective transition method. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU should be applied using a retrospective transition method to each period presented. The standard will be effective for us in the first quarter of our fiscal year 2019, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard will be effective for us in the first quarter of our fiscal 2019. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, which removes Step 2 from the goodwill impairment test. The standard will be effective for us in the first quarter of our fiscal 2021, although early adoption is permitted. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, which requires that the service cost component of pension expense be included in the same line item as other compensation costs arising from services rendered by employees, with the other components of pension expense being classified outside of a subtotal of income from operations. The standard will be effective for us in the first quarter of our fiscal year 2019. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard will be effective for us in the first quarter of our fiscal year 2019. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, which provides targeted improvements to the accounting for hedging activities to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance on the application of U.S. generally accepted accounting principles (“GAAP”) in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to finalize the calculations for the income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (“the Act”). SAB 118 provides entities with a one-year measurement period from the December 22, 2017 enactment date to complete the accounting for the effects of the Act - see Note 8. In February 2018, the FASB issued ASU 2018-02, which provides entities with the option to eliminate the stranded tax effects associated with the change in tax rates under the Act through a reclassification of the stranded tax effects from accumulated other comprehensive income (“AOCI”) to retained earnings. This ASU is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We have elected to early adopt this standard in the first quarter of our fiscal year 2018, which resulted in the reclassification of $5.9 million from AOCI to retained earnings. In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted (but no sooner than the adoption of Topic 606). We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. |
Business Combinations and Divestitures |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Business Combinations and Divestitures In September 2017, we acquired automotiveMastermind Inc. (“aM”), a leading provider of predictive analytics and marketing automation software for the automotive industry. The purchase price consisted of cash consideration of approximately $432 million for 78 percent of aM, including $43 million of contingent consideration that was based on underlying business performance through January 2018. The contingent consideration liability is recorded within other current liabilities in our consolidated balance sheet as of May 31, 2018, and November 30, 2017, and payment for the contingent consideration was made in June 2018. The acquisition of aM helps to fill out our existing automotive offerings by leveraging predictive analytics to improve the buyer experience in the new car dealer market. This acquisition is included in our Transportation segment. In exchange for the remaining 22 percent of aM, we issued equity interests in aM’s immediate parent holding company to aM’s founders and certain employees. We will pay cash to acquire these interests over the next five years based on put/call provisions that tie the valuation to underlying adjusted EBITDA performance of aM. Since the purchase of the remaining 22 percent of the business requires continued service of the founders and employees, we are accounting for the arrangement as compensation expense that will be remeasured based on changes in the fair value of the equity interests; we have classified this expense as acquisition-related costs within the consolidated statements of operations and we have classified the associated accrued liability as other liabilities within the consolidated balance sheets. We have preliminarily estimated a range of $200 million to $225 million of compensation expense related to this transaction that will be recognized over a weighted-average recognition period of approximately 4 years. In September 2017, we also acquired Macroeconomic Advisers, a small independent research firm that specializes in monitoring, analyzing and forecasting developments in the U.S. economy. The purchase price allocation for these acquisitions is preliminary and may change upon completion of the determination of fair value of assets acquired and liabilities assumed. The following table summarizes the preliminary purchase price allocation, net of acquired cash, for these two acquisitions (in millions):
In April 2018, we acquired DeriveXperts, a provider of valuation services for OTC derivatives and other complex financial securities, for approximately $9 million. This acquisition complements and enhances our existing derivatives data and valuations products. In May 2018, we announced our intent to acquire Ipreo, a leading financial services solutions and data provider, for approximately $1.855 billion, which transaction is expected to be completed in the second half of 2018, subject to customary closing conditions and regulatory filings and approvals. In May 2018, we also announced that, following a detailed review of our Financial Services product offerings, we had initiated a process to sell MarkitSERV, our derivatives processing offering. We expect to complete the sale within one year. The following table provides the components of MarkitSERV assets and liabilities held for sale as of May 31, 2018 (in millions):
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Intangible Assets |
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Intangible Assets [Text Block] | Intangible Assets The following table presents details of our intangible assets, other than goodwill, as of May 31, 2018 and November 30, 2017 (in millions):
Intangible assets amortization expense was $88.6 million and $177.6 million for the three and six months ended May 31, 2018, respectively, compared to $83.7 million and $168.4 million for the three and six months ended May 31, 2017. The following table presents the estimated future amortization expense related to intangible assets held as of May 31, 2018 (in millions):
Goodwill, gross intangible assets, and net intangible assets were all subject to foreign currency translation effects. The change in net intangible assets from November 30, 2017 to May 31, 2018 was primarily due to current year amortization and the reclassification of MarkitSERV intangible assets to assets held for sale. |
Debt |
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Debt [Text Block] | Debt The following table summarizes total indebtedness, including unamortized premiums, as of May 31, 2018 and November 30, 2017 (in millions):
2016 revolving facility. In July 2016, we entered into a $1.85 billion senior unsecured revolving credit agreement (“2016 revolving facility”). Borrowings under the 2016 revolving facility mature in July 2021. The interest rates for borrowings under the 2016 revolving facility are the applicable LIBOR plus a spread of 1.00 percent to 1.75 percent, depending upon our Leverage Ratio, which is defined as the ratio of Consolidated Funded Indebtedness to rolling four-quarter Consolidated Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”), as such terms are defined in the revolving facility agreement. A commitment fee on any unused balance is payable periodically and ranges from 0.125 percent to 0.30 percent based upon our Leverage Ratio. We had approximately $1.6 million of outstanding letters of credit under the 2016 revolving facility as of May 31, 2018, which reduces the available borrowing under the facility by an equivalent amount. 2016 term loan. In July 2016, we entered into a $1.206 billion senior unsecured amortizing term loan agreement (“2016 term loan”). The 2016 term loan has a final maturity date of July 2021. The interest rates for borrowings under the 2016 term loan are the same as those under the 2016 revolving facility. Subject to certain conditions, the 2016 revolving facility and the 2016 term loan may be expanded by up to an aggregate of $500 million in additional commitments or term loans. The 2016 revolving facility and the 2016 term loan have certain financial and other covenants, including a maximum Leverage Ratio and a minimum Interest Coverage Ratio, which is defined as the ratio of Consolidated EBITDA to Consolidated Interest Expense, as such terms are defined in the agreements. 2017 term loan. On January 26, 2017, we entered into a 364-day $500 million senior unsecured term loan (“2017 term loan”). The 2017 term loan was structured as a non-amortizing loan with repayment of principal due at maturity. The interest rates for borrowings under the 2017 term loan were the same as those under the 2016 revolving facility. The 2017 term loan had certain financial covenants that were the same as the 2016 revolving facility and the 2016 term loan, including a maximum Leverage Ratio and minimum Interest Coverage Ratio, as such terms were defined in the agreement. The 2017 term loan was repaid in January 2018 using borrowings from the 2016 revolving facility. As of May 31, 2018, we had approximately $1.335 billion of outstanding borrowings under the 2016 revolving facility at a current annual interest rate of 3.43 percent and approximately $1.101 billion of outstanding borrowings under the 2016 term loans at a current weighted average annual interest rate of 3.80 percent, including the effect of the interest rate swaps described in Note 5. 5.00% senior notes due 2022 (“5% Notes”). In October 2014, IHS Inc. issued $750 million aggregate principal amount of senior unsecured notes due 2022 in an offering not subject to the registration requirements of the Securities Act of 1933, as amended (the Securities Act). In August 2015, we completed a registered exchange offer for the 5% Notes. In July 2016, in connection with the merger between IHS and Markit, we completed an exchange offer for $742.8 million of the outstanding 5% Notes for an equal principal amount of new 5% senior unsecured notes issued by IHS Markit with the same maturity. Approximately $7.2 million of the 5% Notes did not participate in the exchange offer. The new 5% Notes are not, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction. The new 5% Notes have been admitted for trading to the official list of the Channel Islands Securities Exchange Authority. The 5% Notes bear interest at a fixed rate of 5.00 percent and mature on November 1, 2022. Interest on the 5% Notes is due semiannually on May 1 and November 1 of each year, commencing May 1, 2015. We may redeem the 5% Notes in whole or in part at a redemption price equal to 100 percent of the principal amount of the notes plus the Applicable Premium, as defined in the indenture governing the 5% Notes. Additionally, at the option of the holders of the notes, we may be required to purchase all or a portion of the notes upon occurrence of a Change of Control Triggering Event as defined in the indenture, at a price equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The indenture contains covenants that limit our ability to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the indenture contains a covenant that limits our ability to consolidate or merge with another entity or to sell all or substantially all of our assets to another entity. The indenture contains customary default provisions. The fair value of the 5% Notes as of May 31, 2018 was approximately $768.0 million. 4.75% notes due 2025 (“4.75% Notes”). In February 2017, we issued $500 million aggregate principal amount of senior unsecured notes due 2025 in an offering not subject to the registration requirements of the Securities Act. In July 2017, we issued an additional $300 million aggregate principal amount of the 4.75% Notes at a $16.5 million premium, resulting in an effective interest rate of 3.88 percent. The 4.75% notes have been admitted for trading to the official list of the Channel Islands Securities Exchange Authority. The 4.75% Notes bear interest at a fixed rate of 4.75 percent and mature on February 15, 2025. Interest on the 4.75% Notes is due semiannually on February 15 and August 15 of each year, commencing August 15, 2017. We may redeem the 4.75% Notes in whole or in part at a redemption price equal to 100 percent of the principal amount of the notes plus the Applicable Premium, as defined in the indenture governing the 4.75% Notes. Additionally, at the option of the holders of the notes, we may be required to purchase all or a portion of the notes upon occurrence of a Change of Control Triggering Event as defined in the indenture, at a price equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The indenture contains covenants that limit our ability to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the indenture contains a covenant that limits our ability to consolidate or merge with another entity or to sell all or substantially all of our assets to another entity. The indenture contains customary default provisions. The fair value of the 4.75% Notes as of May 31, 2018 was approximately $795.0 million. 4.00% notes due 2026 (“4% Notes”). In December 2017, we issued $500 million aggregate principal amount of senior unsecured notes due 2026 in an offering not subject to the registration requirements of the Securities Act. The 4% Notes have been admitted for trading to the official list of the Channel Islands Securities Exchange Authority. The 4% Notes bear interest at a fixed rate of 4.00 percent and mature on March 1, 2026. Interest on the 4% Notes is due semiannually on March 1 and September 1 of each year, commencing March 1, 2018. We may redeem the 4% Notes in whole or in part at a redemption price equal to 100 percent of the principal amount of the notes plus the applicable premium, as defined in the indenture governing the 4% Notes. Additionally, at the option of the holders of the notes, we may be required to purchase all or a portion of the notes upon occurrence of a change of control triggering event as defined in the indenture, at a price equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The indenture contains covenants that limit our ability to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the indenture contains a covenant that limits our ability to consolidate or merge with another entity or to sell all or substantially all of our assets to another entity. The indenture contains customary default provisions. The fair value of the 4% Notes as of May 31, 2018 was approximately $477.0 million. Institutional senior notes. In November 2015, Markit issued two series of senior unsecured notes having an aggregate principal amount of $500 million to certain institutional investors. In November 2016, we completed an offer to repurchase approximately $350 million of these notes. In May 2018, we prepaid the remaining notes in full through a combination of cash on hand and drawings under the 2016 revolving facility and terminated the related Note Purchase and Guarantee Agreement. The Series A notes bore interest at a fixed rate of 3.73 percent and were set to mature on November 4, 2022. The Series B notes bore interest at a fixed rate of 4.05 percent and were set to mature on November 4, 2025. The institutional senior notes had certain financial and other covenants, including a maximum Consolidated Leverage Ratio and a minimum Interest Coverage Ratio, as such terms were defined in the Note Purchase and Guarantee Agreement. As of May 31, 2018, we were in compliance with all of our debt covenants. We have classified short-term debt based on scheduled term loan amortization payments and expected cash availability over the next 12 months. The carrying value of our variable rate debt instruments approximate their fair value because of the variable interest rates associated with those instruments. The fair values of the 5% Notes, the 4.75% Notes, and the 4% Notes were measured using observable inputs in markets that are not active; consequently, we have classified those notes within Level 2 of the fair value hierarchy. |
Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives Our business is exposed to various market risks, including interest rate and foreign currency risks. We utilize derivative instruments to help us manage these risks. We do not hold or issue derivatives for speculative purposes. Interest Rate Swaps To mitigate interest rate exposure on our outstanding revolving facility debt, we utilize interest rate derivative contracts that effectively swap $400 million of floating rate debt at a 2.86 percent weighted-average fixed interest rate, plus the applicable spread on our floating rate debt. We entered into these swap contracts in November 2013 and January 2014, and the contracts expire between May and November 2020. Because the terms of these swaps and the variable rate debt (as amended or extended over time) coincide, we do not expect any ineffectiveness. We have designated and accounted for these instruments as cash flow hedges, with changes in fair value being deferred in AOCI in our consolidated balance sheets. Foreign Currency Forwards To mitigate foreign currency exposure, we utilize short-term foreign currency forward contracts that manage market risks associated with fluctuations in balances that are denominated in currencies other than the local functional currency. We account for these forward contracts at fair value and recognize the associated realized and unrealized gains and losses in other expense, net, since we have not designated these contracts as hedges for accounting purposes. The notional amount of these outstanding foreign currency forward contracts was $294.1 million and $261.3 million as of May 31, 2018 and November 30, 2017, respectively. Fair Value of Derivatives Since our derivative instruments are not listed on an exchange, we have evaluated fair value by reference to similar transactions in active markets; consequently, we have classified all of our derivative instruments within Level 2 of the fair value measurement hierarchy. The following table shows the classification, location, and fair value of our derivative instruments as of May 31, 2018 and November 30, 2017 (in millions):
The net loss (gain) on foreign currency forwards that are not designated as hedging instruments for the three and six months ended May 31, 2018 and the three and six months ended May 31, 2017, respectively, was as follows (in millions):
The following table provides information about the cumulative amount of unrecognized hedge losses recorded in AOCI, net of tax, as of May 31, 2018 and May 31, 2017, respectively, as well as the activity on our cash flow hedging instruments for the three and six months ended May 31, 2018 and the three and six months ended May 31, 2017, respectively (in millions):
Approximately $1.1 million of the $1.8 million unrecognized pre-tax losses relating to the interest rate swaps are expected to be reclassified into interest expense within the next 12 months. |
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Acquisition Related Costs [Text Block] | Acquisition-related Costs During the six months ended May 31, 2018, we incurred approximately $52.8 million in costs associated with acquisitions, including employee severance charges and retention costs, contract termination costs for facility consolidations, legal and professional fees, and the performance compensation expense related to the aM acquisition described in Note 2. Approximately $11.5 million of the total charge was allocated to shared services, with $27.4 million of the charge recorded in the Transportation segment, $8.8 million in the Financial Services segment, $2.6 million in the CMS segment, and the remainder in the Resources segment. The following table provides a reconciliation of the acquisition-related costs accrued liability, recorded in other accrued expenses and other liabilities, as of May 31, 2018 (in millions):
As of May 31, 2018, the $67.1 million remaining liability was primarily in the Transportation segment and in shared services. We expect that the significant majority of the remaining liability will be paid within the next 12 months except for the aM acquisition-related performance compensation liability, which was approximately $35.5 million as of May 31, 2018. |
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Stock-based Compensation [Text Block] | Stock-based Compensation Stock-based compensation expense for the three and six months ended May 31, 2018 and May 31, 2017 was as follows (in millions):
No stock-based compensation cost was capitalized during the three and six months ended May 31, 2018 and May 31, 2017. As of May 31, 2018, there was $270.9 million of unrecognized stock-based compensation cost, adjusted for estimated forfeitures, related to unvested stock-based awards that will be recognized over a weighted-average period of approximately 1.8 years. Total unrecognized stock-based compensation cost will be adjusted for future changes in estimated forfeitures and expected performance achievement. Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs). The following table summarizes RSU/RSA activity, including awards with performance and market conditions, during the six months ended May 31, 2018:
The total fair value of RSUs and RSAs that vested during the six months ended May 31, 2018 was $218.2 million. Stock Options. The following table summarizes stock option award activity during the six months ended May 31, 2018, as well as stock options that are vested and expected to vest and stock options exercisable as of May 31, 2018:
The aggregate intrinsic value amounts in the table above represent the difference between the closing price of our common shares on May 31, 2018 and the exercise price, multiplied by the number of in-the-money stock options as of that date. This represents the value that would have been received by stock option holders if they had all exercised their stock options on May 31, 2018. In future periods, this amount will change depending on fluctuations in our share price. The total intrinsic value of stock options exercised during the six months ended May 31, 2018 was approximately $124.7 million. |
Income Taxes |
6 Months Ended |
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May 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes Our effective tax rate is estimated based upon the effective tax rate expected to be applicable for the full year. Our effective tax rate for the three and six months ended May 31, 2018 was 10 percent and negative 61 percent, respectively, compared to negative 1 percent and negative 3 percent for the three and six months ended May 31, 2017. The low or negative 2018 tax rates are primarily due to tax benefits associated with US tax reform of approximately $136 million in the first quarter of 2018, and excess tax benefits on stock-based compensation of approximately $7 million and $31 million for the three and six months ended May 31, 2018, respectively. The negative 2017 tax rates are primarily due to tax benefits associated with excess tax benefits on stock-based compensation of approximately $9 million and $23 million for the three and six months ended May 31, 2017, respectively. The Tax Cuts and Jobs Act was enacted on December 22, 2017, which significantly revises U.S. corporate tax law. Among other things, the Act reduces the U.S. federal corporation tax rate to 21 percent and implements a new system of taxation for non-U.S. earnings, including by imposing a one-time transition tax on the deemed repatriation of undistributed earnings of non-U.S. subsidiaries. Other significant changes include U.S. taxes on global intangible low-taxed income (“GILTI”) attributable to foreign subsidiaries and base erosion anti-abuse transactions, limitations on the deductibility of interest expense and executive compensation, and repeal of the deduction for domestic production activities. As a result of our current interpretation and estimated impact of the Act, we recorded adjustments totaling a net tax benefit of $136 million in the first quarter of 2018 to provisionally account for the estimated impact. This amount included a provisional estimate for the transition tax of $38 million, which will be payable over eight years, starting in 2019, and a provisional estimate decreasing net deferred tax liabilities by $174 million, resulting from the future reduction in the federal corporate income tax rate. As of May 31, 2018, we have not completed our accounting for the tax effects of enactment of the Act because all of the necessary information is not currently available, prepared, or analyzed. As such, the amounts we have recorded are provisional estimates and as permitted by SAB 118, we will continue to assess the impacts of the Act and may record additional provisional amounts or adjustments to provisional estimates during fiscal year 2018. We expect to complete the accounting for these impacts of tax reform within the measurement period in accordance with SAB 118 as we complete our analysis and receive additional guidance from the Internal Revenue Service pertaining to the Act. As a result of the Act, all previously undistributed foreign earnings have now been subjected to U.S. tax; however, we currently intend to continue to indefinitely reinvest these earnings outside the U.S. and accordingly, we have not provided non-U.S. deferred income taxes on these indefinitely reinvested earnings. It is not practicable to determine the amount of non-U.S. deferred taxes that might be required to be provided if such earnings were distributed in the future, due to complexities in the tax laws and in the hypothetical calculations that would have to be made. We have not yet made a policy election with respect to our treatment of GILTI. We can either account for taxes on GILTI as incurred or recognize deferred taxes when basis differences exist that are expected to affect the amount of GILTI inclusion upon reversal. We are still in the process of analyzing the provisions of the Act associated with GILTI and the expected impact of GILTI on our consolidated financial statements. |
Commitments and Contingencies |
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May 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies From time to time, in the ordinary course of our business, we are involved in various legal, regulatory or administrative proceedings, lawsuits, government investigations, and other claims, including employment, commercial, intellectual property, and environmental, safety, and health matters. In addition, we may receive routine requests for information from governmental agencies in connection with their regulatory or investigatory authority. We review such proceedings, lawsuits, investigations, claims, and requests for information and take appropriate action as necessary. At the present time, we can give no assurance as to the outcome of any such pending proceedings, lawsuits, investigations, claims, or requests for information and we are unable to determine the ultimate resolution of or provide a reasonable estimate of the range of possible loss attributable to these matters or the effect they may have on us. However, we do not expect the outcome of such proceedings, lawsuits, claims, or requests for information to have a material adverse effect on our results of operations or financial condition. We have and will continue to vigorously defend ourselves in all matters. On April 23, 2013 (prior to our acquisition of R.L. Polk & Co.), our CARFAX subsidiary (“CARFAX”) was served with a complaint filed in the U.S. District Court for the Southern District of New York, purportedly on behalf of certain auto and light truck dealers. The complaint alleged, among other things, that, in violation of antitrust laws, CARFAX entered into exclusive arrangements regarding the sale of CARFAX vehicle history reports with certain auto manufacturers and owners of two websites providing classified listings of used autos and light trucks. The complaint sought three times the actual damages that a jury would have found the plaintiffs to have sustained, injunctive relief, costs and attorneys’ fees. On October 25, 2013, the plaintiffs served a second amended complaint with similar allegations purporting to name approximately 469 auto dealers as plaintiffs, and counsel for plaintiffs indicated that there could have been additional claimants. On September 30, 2016, the District Court granted CARFAX’s motion for summary judgment, dismissing all claims in the complaint, and on June 1, 2018, the Second Circuit Court of Appeals affirmed the District Court’s decision dismissing all claims in the complaint. On January 13, 2017, another group of auto and light truck dealers filed a complaint in the U.S. District Court for the Southern District of New York on substantially the same claims as described above. The complaint seeks three times the actual damages that a jury finds the plaintiffs have sustained, injunctive relief, costs, and attorneys’ fees. The court stayed the second case pending the outcome of the appeal of the first case described above. Given the favorable decision to CARFAX of the appeal of the first case, CARFAX believes it will reach a similar favorable result in the second case. In October 2015, the Division of Enforcement of the SEC opened a non-public civil investigation related to certain of our current and former securitized product indices, and requested that we provide certain documents and information. We responded to these inquiries in late 2015 and early 2016, and, to the extent the SEC has further inquiries, will continue to cooperate in this matter. |
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Earnings Per Share [Text Block] | Common Shares and Earnings per Share Weighted-average shares outstanding for the three and six months ended May 31, 2018 and May 31, 2017 were calculated as follows (in millions):
Share Repurchase Programs Our Board of Directors has authorized a share repurchase program of up to $3.25 billion of IHS Markit common shares through November 30, 2019, to be funded using our existing cash, cash equivalents, marketable securities and future cash flows, or through the incurrence of short- or long-term indebtedness, at management’s discretion. This repurchase program does not obligate us to repurchase any set dollar amount or number of shares and may be modified, suspended, or terminated at any time without prior notice. Under this program, we are authorized to repurchase our common shares on the open market from time to time, in privately negotiated transactions, or through accelerated share repurchase (ASR) agreements, subject to availability of common shares, price, market conditions, alternative uses of capital, and applicable regulatory requirements, at management’s discretion. As of May 31, 2018, we had $1.007 billion remaining available to repurchase under the program. In August 2016, our Board of Directors separately and additionally authorized, subject to applicable regulatory requirements, the repurchase of our common shares surrendered by employees in an amount equal to the exercise price, if applicable, and statutory tax liability associated with the vesting of their equity awards, for which we pay the statutory tax on behalf of the employee and forgo receipt of the exercise price of the award from the employee, if applicable. In March 2018, we funded a $500 million ASR agreement with a scheduled termination date in the second quarter of 2018. Upon funding of the ASR, we received an initial delivery of 8.502 million shares. At the completion of the ASR in May 2018, we received an additional 1.817 million shares. During the six months ended May 31, 2018, including the ASR described above, we repurchased approximately $752 million, or 15.890 million shares, under our share repurchase programs, representing an average share price of $47.30. Employee Benefit Trust (EBT) Shares We have approximately 25.2 million outstanding common shares that are held by the Markit Group Holdings Limited Employee Benefit Trust. The trust is under our control using the variable interest entity model criteria; consequently, we have consolidated and classified the trust shares as treasury shares within our consolidated balance sheets. |
Accumulated Other Comprehensive Income (Loss) |
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Accumulated other comprehensive income (loss) [Text Block] | Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in AOCI by component (net of tax) for the six months ended May 31, 2018 (in millions):
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Segment Information |
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Segment Information [Text Block] | Segment Information We prepare our financial reports and analyze our business results within our four operating segments: Resources, Transportation, CMS, and Financial Services. We evaluate revenue performance at the segment level and also by transaction type. No single customer accounted for 10 percent or more of our total revenue for the three and six months ended May 31, 2018 and May 31, 2017. There are no material inter-segment revenues for any period presented. Our shared services function includes corporate transactions that are not allocated to the reportable segments, including net periodic pension and postretirement expense, as well as certain corporate functions such as investor relations, procurement, corporate development, and portions of finance, legal, and marketing. We evaluate segment operating performance at the Adjusted EBITDA level for each of our four segments. We define Adjusted EBITDA as net income before net interest, provision for income taxes, depreciation and amortization, stock-based compensation cost, restructuring charges, acquisition-related costs, exceptional litigation, net other gains and losses, pension mark-to-market and settlement expense, the impact of joint ventures and noncontrolling interests, and discontinued operations. Information about the operations of our four segments is set forth below (in millions).
Revenue by transaction type was as follows (in millions):
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Significant Accounting Policies (Policies) |
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May 31, 2018 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | We evaluate segment operating performance at the Adjusted EBITDA level for each of our four segments. We define Adjusted EBITDA as net income before net interest, provision for income taxes, depreciation and amortization, stock-based compensation cost, restructuring charges, acquisition-related costs, exceptional litigation, net other gains and losses, pension mark-to-market and settlement expense, the impact of joint ventures and noncontrolling interests, and discontinued operations. Information about the operations of our four segments is set forth below (in millions). |
Derivatives, Policy [Policy Text Block] | Since our derivative instruments are not listed on an exchange, we have evaluated fair value by reference to similar transactions in active markets; consequently, we have classified all of our derivative instruments within Level 2 of the fair value measurement hierarchy. |
Debt, Policy [Policy Text Block] | We have classified short-term debt based on scheduled term loan amortization payments and expected cash availability over the next 12 months. |
Recent Accounting Pronouncements [Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In March, April, and May 2016, the FASB issued ASU 2016-08, ASU 2016-10, and ASU 2016-12, respectively, which provide further revenue recognition guidance related to principal versus agent considerations, performance obligations and licensing, and narrow-scope improvements and practical expedients. All of these standards will be effective for us in the first quarter of our fiscal year 2019. We have determined that we will use the modified retrospective transition method upon adoption. We are currently in the contract review and assessment phase of our implementation planning, and are continuing to evaluate the impact of these new standards on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, which requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. The ASU requires the use of a modified retrospective transition method. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU should be applied using a retrospective transition method to each period presented. The standard will be effective for us in the first quarter of our fiscal year 2019, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard will be effective for us in the first quarter of our fiscal 2019. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, which removes Step 2 from the goodwill impairment test. The standard will be effective for us in the first quarter of our fiscal 2021, although early adoption is permitted. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, which requires that the service cost component of pension expense be included in the same line item as other compensation costs arising from services rendered by employees, with the other components of pension expense being classified outside of a subtotal of income from operations. The standard will be effective for us in the first quarter of our fiscal year 2019. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard will be effective for us in the first quarter of our fiscal year 2019. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, which provides targeted improvements to the accounting for hedging activities to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance on the application of U.S. generally accepted accounting principles (“GAAP”) in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to finalize the calculations for the income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (“the Act”). SAB 118 provides entities with a one-year measurement period from the December 22, 2017 enactment date to complete the accounting for the effects of the Act - see Note 8. In February 2018, the FASB issued ASU 2018-02, which provides entities with the option to eliminate the stranded tax effects associated with the change in tax rates under the Act through a reclassification of the stranded tax effects from accumulated other comprehensive income (“AOCI”) to retained earnings. This ASU is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We have elected to early adopt this standard in the first quarter of our fiscal year 2018, which resulted in the reclassification of $5.9 million from AOCI to retained earnings. In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted (but no sooner than the adoption of Topic 606). We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. |
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Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the preliminary purchase price allocation, net of acquired cash, for these two acquisitions (in millions):
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Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table provides the components of MarkitSERV assets and liabilities held for sale as of May 31, 2018 (in millions):
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Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table presents details of our intangible assets, other than goodwill, as of May 31, 2018 and November 30, 2017 (in millions):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table presents the estimated future amortization expense related to intangible assets held as of May 31, 2018 (in millions):
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Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | The following table summarizes total indebtedness, including unamortized premiums, as of May 31, 2018 and November 30, 2017 (in millions):
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Derivatives (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table shows the classification, location, and fair value of our derivative instruments as of May 31, 2018 and November 30, 2017 (in millions):
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Derivative Instruments, Gain (Loss) [Table Text Block] | The net loss (gain) on foreign currency forwards that are not designated as hedging instruments for the three and six months ended May 31, 2018 and the three and six months ended May 31, 2017, respectively, was as follows (in millions):
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table provides information about the cumulative amount of unrecognized hedge losses recorded in AOCI, net of tax, as of May 31, 2018 and May 31, 2017, respectively, as well as the activity on our cash flow hedging instruments for the three and six months ended May 31, 2018 and the three and six months ended May 31, 2017, respectively (in millions):
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Acquisition-related Costs (Tables) |
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Acquisition Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition Related Cost Reserve Rollforward [Table Text Block] | The following table provides a reconciliation of the acquisition-related costs accrued liability, recorded in other accrued expenses and other liabilities, as of May 31, 2018 (in millions):
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Stock-based Compensation (Tables) |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Stock-based compensation expense for the three and six months ended May 31, 2018 and May 31, 2017 was as follows (in millions):
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Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | The following table summarizes RSU/RSA activity, including awards with performance and market conditions, during the six months ended May 31, 2018:
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Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes stock option award activity during the six months ended May 31, 2018, as well as stock options that are vested and expected to vest and stock options exercisable as of May 31, 2018:
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Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | Weighted-average shares outstanding for the three and six months ended May 31, 2018 and May 31, 2017 were calculated as follows (in millions):
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Accumulated Other Comprehensive Income (Loss) (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in AOCI by component (net of tax) for the six months ended May 31, 2018 (in millions):
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information about the operations of our four segments is set forth below (in millions).
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Revenue from External Customers by Products and Services [Table Text Block] | Revenue by transaction type was as follows (in millions):
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Business Combinations and Divestitures Divestiture (Details) - USD ($) $ in Millions |
May 31, 2018 |
Nov. 30, 2017 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 1,151.2 | $ 0.0 |
Liabilities held for sale | 86.5 | $ 0.0 |
MarkitSERV [Domain] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets | 44.9 | |
Property and equipment | 43.9 | |
Intangible assets | 450.2 | |
Goodwill | 612.2 | |
Assets held for sale | 1,151.2 | |
Current liabilities | 9.7 | |
Deferred income taxes | 76.8 | |
Liabilities held for sale | $ 86.5 |
Intangible Assets Schedule of Future Amortization (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
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Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 88.6 | $ 83.7 | $ 177.6 | $ 168.4 |
Remainder of 2018 | 157.7 | 157.7 | ||
2019 | 293.7 | 293.7 | ||
2020 | 286.4 | 286.4 | ||
2021 | 281.0 | 281.0 | ||
2022 | 262.1 | 262.1 | ||
Thereafter | $ 2,263.9 | $ 2,263.9 |
Stock-based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
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Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 57.7 | $ 64.6 | $ 119.6 | $ 139.8 |
Capitalized stock-based compensation cost | 0.0 | 0.0 | 0.0 | 0.0 |
Cost of revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 16.7 | 21.8 | 34.7 | 37.7 |
Selling general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 41.0 | $ 42.8 | $ 84.9 | $ 102.1 |
Stock-based Compensation Nonvested stock rollforward (Details) shares in Millions |
6 Months Ended |
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May 31, 2018
$ / shares
shares
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Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance at November 30, 2017, shares | shares | 10.7 |
Weighted average grant date fair value, November 30, 2017 | $ / shares | $ 35.64 |
Granted shares | shares | 3.1 |
Weighted average grant date fair value, granted | $ / shares | $ 47.59 |
Vested shares | shares | (4.6) |
Weighted average grant date fair value, vested | $ / shares | $ 33.90 |
Forfeited shares | shares | (0.4) |
Weighted average grant date fair value, forfeited | $ / shares | $ 41.03 |
Balance at May 31, 2018, shares | shares | 8.8 |
Weighted average grant date fair value, May 31, 2018 | $ / shares | $ 40.55 |
Stock-based Compensation Textuals (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | $ 270.9 | $ 270.9 | ||
Unrecognized stock-based compensation cost recognition period | 1 year 9 months 20 days | |||
Capitalized stock-based compensation cost | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Fair value of shares that vested during the period | $ 218.2 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
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Valuation Allowance [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ (38) | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 174 | |||
Effective Income Tax Rate, Continuing Operations | 10.00% | (1.00%) | (61.00%) | (3.00%) |
Income Tax Expense (Benefit) | $ 136 | |||
Effective Income Tax Rate Reconciliation, Share-Based Compensation, Excess Tax Benefit, Amount | $ 7 | $ 9 | $ 31 | $ 23 |
Earnings per Share (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
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Weighted average common shares outstanding: | ||||
Shares used in basic EPS calculation | 391.8 | 399.7 | 394.9 | 403.0 |
Effect of dilutive securities: | ||||
RSUs/RSAs | 2.4 | 4.1 | 3.5 | 4.9 |
Stock options | 9.4 | 11.8 | 9.5 | 11.0 |
Shares used in diluted EPS calculation | 403.6 | 415.6 | 407.9 | 418.9 |
Segment Information Revenue by Transaction Type and Product Category (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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May 31, 2018 |
May 31, 2017 |
May 31, 2018 |
May 31, 2017 |
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Revenue from External Customer [Line Items] | ||||
Revenue | $ 1,008.3 | $ 906.1 | $ 1,940.4 | $ 1,750.3 |
Recurring Fixed Revenue [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 698.1 | 630.6 | 1,381.4 | 1,247.7 |
Recurring Variable Revenue [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 125.9 | 116.0 | 243.0 | 222.4 |
Non-recurring Revenue [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 184.3 | $ 159.5 | $ 316.0 | $ 280.2 |
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