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SEC Filings

10-K
IHS MARKIT LTD. filed this Form 10-K on 01/18/2019
Entire Document
 

that would have occurred if the Merger had been consummated as of that date. This information should not be used as a predictive measure of our future financial position, results of operations, or liquidity.

 
 
Year ended November 30,
Supplemental pro forma financial information (unaudited)
 
2016
 
 
(In millions)
Total revenue
 
$
3,450.9

Net income
 
$
291.9


The pro forma net income excludes $70.0 million of one-time merger and transaction costs for the year ended November 30, 2016.

The following table summarizes the purchase price allocation, net of acquired cash, for these acquisitions (in millions):
 
CARPROOF
 
OPIS
 
Markit
 
Total
Assets:
 
 
 
 
 
 
 
Current assets
$
6.4

 
$
13.8

 
$
301.9

 
$
322.1

Property and equipment
2.2

 
1.7

 
60.2

 
64.1

Intangible assets
168.3

 
200.3

 
3,209.1

 
3,577.7

Goodwill
330.0

 
464.6

 
4,301.1

 
5,095.7

Other long-term assets

 

 
10.5

 
10.5

Total assets
506.9

 
680.4

 
7,882.8

 
9,070.1

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Current liabilities
2.7

 
3.2

 
251.4

 
257.3

Deferred revenue
0.2

 
24.8

 
230.8

 
255.8

Deferred taxes
44.5

 

 
627.4

 
671.9

Long-term debt

 

 
546.5

 
546.5

Other long-term liabilities
0.3

 
0.1

 
19.3

 
19.7

Noncontrolling interest

 

 
57.1

 
57.1

Total liabilities and noncontrolling interest
47.7

 
28.1

 
1,732.5

 
1,808.3

 
 
 
 
 
 
 
 
Purchase price, net of cash acquired
$
459.2

 
$
652.3

 
$
6,150.3

 
$
7,261.8


The finalization of purchase accounting in fiscal 2017 resulted in reductions to intangible assets of approximately $80 million, deferred taxes of $66 million, and other current working capital of $6 million, with an offsetting $20 million increase to goodwill. Of the goodwill recorded for the 2016 business combinations, approximately $744.3 million is tax deductible.

4.
Accounts Receivable

Our accounts receivable balance consists of the following as of November 30, 2018 and 2017 (in millions):

 
 
2018
 
2017
Accounts receivable
 
$
823.3

 
$
716.7

Less: Accounts receivable allowance
 
(30.4
)
 
(23.2
)
Accounts receivable, net
 
$
792.9

 
$
693.5


We record an accounts receivable allowance when it is probable that the accounts receivable balance will not be collected. The amounts comprising the allowance are based upon management’s estimates and historical collection trends. The activity in

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