Document
false--11-30Q3201900015980140.010.0130000000003000000000472900000475900000397100000401000000LIBOR plus a spread of 1.75 percentLIBOR plus a spread of 1.00 percentLIBOR plus a spread of 1.75 percentLIBOR plus a spread of 1.00 percent200000200000002000001600000100000900000000000007580000074900000 0001598014 2018-12-01 2019-08-31 0001598014 2019-08-31 0001598014 2018-11-30 0001598014 2018-06-01 2018-08-31 0001598014 2017-12-01 2018-08-31 0001598014 2019-06-01 2019-08-31 0001598014 2018-08-31 0001598014 2017-11-30 0001598014 us-gaap:ParentMember 2018-06-01 2018-08-31 0001598014 us-gaap:AdditionalPaidInCapitalMember 2018-03-01 2018-05-31 0001598014 us-gaap:NoncontrollingInterestMember 2018-03-01 2018-05-31 0001598014 us-gaap:RetainedEarningsMember 2018-02-28 0001598014 us-gaap:ParentMember 2017-12-01 2018-02-28 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-01 2018-08-31 0001598014 us-gaap:NoncontrollingInterestMember 2018-08-31 0001598014 us-gaap:RetainedEarningsMember 2018-03-01 2018-05-31 0001598014 us-gaap:TreasuryStockMember 2017-12-01 2018-02-28 0001598014 us-gaap:RetainedEarningsMember 2018-06-01 2018-08-31 0001598014 us-gaap:AdditionalPaidInCapitalMember 2018-08-31 0001598014 us-gaap:TreasuryStockMember 2018-06-01 2018-08-31 0001598014 us-gaap:AdditionalPaidInCapitalMember 2017-12-01 2018-02-28 0001598014 us-gaap:ParentMember 2018-03-01 2018-05-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-08-31 0001598014 us-gaap:RetainedEarningsMember 2018-05-31 0001598014 us-gaap:CommonStockMember 2018-05-31 0001598014 us-gaap:CommonStockMember 2017-12-01 2018-02-28 0001598014 us-gaap:AdditionalPaidInCapitalMember 2018-05-31 0001598014 us-gaap:NoncontrollingInterestMember 2017-12-01 2018-02-28 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-05-31 0001598014 us-gaap:CommonStockMember 2017-11-30 0001598014 us-gaap:NoncontrollingInterestMember 2017-11-30 0001598014 us-gaap:RetainedEarningsMember 2017-12-01 2018-02-28 0001598014 us-gaap:NoncontrollingInterestMember 2018-05-31 0001598014 us-gaap:TreasuryStockMember 2018-02-28 0001598014 us-gaap:AdditionalPaidInCapitalMember 2018-02-28 0001598014 us-gaap:ParentMember 2017-11-30 0001598014 us-gaap:AdditionalPaidInCapitalMember 2018-06-01 2018-08-31 0001598014 us-gaap:TreasuryStockMember 2018-03-01 2018-05-31 0001598014 us-gaap:CommonStockMember 2018-03-01 2018-05-31 0001598014 us-gaap:NoncontrollingInterestMember 2018-02-28 0001598014 us-gaap:AdditionalPaidInCapitalMember 2017-11-30 0001598014 us-gaap:CommonStockMember 2018-02-28 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-02-28 0001598014 us-gaap:TreasuryStockMember 2018-08-31 0001598014 us-gaap:RetainedEarningsMember 2017-11-30 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-11-30 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-01 2018-05-31 0001598014 us-gaap:ParentMember 2018-05-31 0001598014 us-gaap:CommonStockMember 2018-08-31 0001598014 us-gaap:CommonStockMember 2018-06-01 2018-08-31 0001598014 us-gaap:NoncontrollingInterestMember 2018-06-01 2018-08-31 0001598014 us-gaap:ParentMember 2018-02-28 0001598014 us-gaap:TreasuryStockMember 2018-05-31 0001598014 us-gaap:RetainedEarningsMember 2018-08-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-01 2018-02-28 0001598014 us-gaap:ParentMember 2018-08-31 0001598014 us-gaap:TreasuryStockMember 2017-11-30 0001598014 us-gaap:AdditionalPaidInCapitalMember 2019-06-01 2019-08-31 0001598014 us-gaap:CommonStockMember 2018-12-01 2019-02-28 0001598014 us-gaap:CommonStockMember 2019-02-28 0001598014 us-gaap:CommonStockMember 2019-06-01 2019-08-31 0001598014 us-gaap:CommonStockMember 2019-03-01 2019-05-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-28 0001598014 us-gaap:ParentMember 2019-03-01 2019-05-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-11-30 0001598014 us-gaap:CommonStockMember 2018-11-30 0001598014 us-gaap:TreasuryStockMember 2019-08-31 0001598014 us-gaap:ParentMember 2019-02-28 0001598014 us-gaap:NoncontrollingInterestMember 2019-03-01 2019-05-31 0001598014 us-gaap:AdditionalPaidInCapitalMember 2018-12-01 2019-02-28 0001598014 us-gaap:ParentMember 2018-12-01 2019-02-28 0001598014 us-gaap:AdditionalPaidInCapitalMember 2019-03-01 2019-05-31 0001598014 us-gaap:TreasuryStockMember 2019-06-01 2019-08-31 0001598014 us-gaap:AdditionalPaidInCapitalMember 2018-11-30 0001598014 us-gaap:ParentMember 2019-06-01 2019-08-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-31 0001598014 us-gaap:CommonStockMember 2019-05-31 0001598014 us-gaap:ParentMember 2019-05-31 0001598014 us-gaap:RetainedEarningsMember 2018-12-01 2019-02-28 0001598014 us-gaap:NoncontrollingInterestMember 2018-11-30 0001598014 us-gaap:RetainedEarningsMember 2019-03-01 2019-05-31 0001598014 us-gaap:NoncontrollingInterestMember 2019-02-28 0001598014 us-gaap:ParentMember 2018-11-30 0001598014 us-gaap:TreasuryStockMember 2018-11-30 0001598014 us-gaap:TreasuryStockMember 2019-02-28 0001598014 us-gaap:NoncontrollingInterestMember 2018-12-01 2019-02-28 0001598014 us-gaap:RetainedEarningsMember 2018-11-30 0001598014 us-gaap:RetainedEarningsMember 2019-06-01 2019-08-31 0001598014 us-gaap:RetainedEarningsMember 2019-02-28 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-01 2019-08-31 0001598014 us-gaap:TreasuryStockMember 2019-05-31 0001598014 us-gaap:RetainedEarningsMember 2019-05-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-01 2019-05-31 0001598014 us-gaap:CommonStockMember 2019-08-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-01 2019-02-28 0001598014 us-gaap:AdditionalPaidInCapitalMember 2019-08-31 0001598014 us-gaap:NoncontrollingInterestMember 2019-08-31 0001598014 us-gaap:NoncontrollingInterestMember 2019-05-31 0001598014 us-gaap:AdditionalPaidInCapitalMember 2019-05-31 0001598014 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-31 0001598014 us-gaap:RetainedEarningsMember 2019-08-31 0001598014 us-gaap:TreasuryStockMember 2019-03-01 2019-05-31 0001598014 us-gaap:AdditionalPaidInCapitalMember 2019-02-28 0001598014 us-gaap:NoncontrollingInterestMember 2019-06-01 2019-08-31 0001598014 us-gaap:TreasuryStockMember 2018-12-01 2019-02-28 0001598014 us-gaap:ParentMember 2019-08-31 0001598014 info:RecurringFixedRevenueMember 2019-06-01 2019-08-31 0001598014 info:RecurringFixedRevenueMember 2017-12-01 2018-08-31 0001598014 info:RecurringVariableRevenueMember 2017-12-01 2018-08-31 0001598014 info:RecurringFixedRevenueMember 2018-06-01 2018-08-31 0001598014 info:NonrecurringRevenueMember 2018-12-01 2019-08-31 0001598014 info:RecurringVariableRevenueMember 2018-06-01 2018-08-31 0001598014 info:NonrecurringRevenueMember 2017-12-01 2018-08-31 0001598014 info:RecurringFixedRevenueMember 2018-12-01 2019-08-31 0001598014 info:RecurringVariableRevenueMember 2019-06-01 2019-08-31 0001598014 info:NonrecurringRevenueMember 2018-06-01 2018-08-31 0001598014 info:RecurringVariableRevenueMember 2018-12-01 2019-08-31 0001598014 info:NonrecurringRevenueMember 2019-06-01 2019-08-31 0001598014 us-gaap:AccountingStandardsUpdate201409Member 2018-12-01 0001598014 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-12-01 0001598014 2018-12-01 0001598014 info:TMTTechnologyMediaTelecomMember 2019-08-31 0001598014 info:AgribusinessIntelligenceMember 2019-06-30 0001598014 info:AgribusinessIntelligenceMember 2019-06-01 2019-06-30 0001598014 info:AerospaceDefenseMember us-gaap:SubsequentEventMember 2019-09-30 0001598014 info:TMTTechnologyMediaTelecomMember 2019-08-01 0001598014 info:TMTTechnologyMediaTelecomMember 2019-08-01 2019-08-31 0001598014 us-gaap:TrademarksAndTradeNamesMember 2019-08-31 0001598014 us-gaap:DatabasesMember 2019-08-31 0001598014 us-gaap:OtherIntangibleAssetsMember 2018-11-30 0001598014 us-gaap:ComputerSoftwareIntangibleAssetMember 2019-08-31 0001598014 us-gaap:TrademarksAndTradeNamesMember 2018-11-30 0001598014 us-gaap:DatabasesMember 2018-11-30 0001598014 us-gaap:ComputerSoftwareIntangibleAssetMember 2018-11-30 0001598014 us-gaap:CustomerRelationshipsMember 2018-11-30 0001598014 us-gaap:OtherIntangibleAssetsMember 2019-08-31 0001598014 us-gaap:DevelopedTechnologyRightsMember 2018-11-30 0001598014 us-gaap:CustomerRelationshipsMember 2019-08-31 0001598014 us-gaap:DevelopedTechnologyRightsMember 2019-08-31 0001598014 info:A4.00SeniorNotesDue2026Member 2019-08-31 0001598014 info:A2018termloantrancheA2Member 2018-11-30 0001598014 info:A4.25SeniorNotesDue2029Member 2018-11-30 0001598014 info:A2018termloantrancheA1Member 2019-08-31 0001598014 info:A4.75SeniorNotesDue2025Member 2019-08-31 0001598014 info:A2018termloantrancheA1Member 2018-11-30 0001598014 info:A2018revolvingcreditfacilityMember 2018-11-30 0001598014 info:A4.75SeniorNotesDue2025Member 2018-11-30 0001598014 info:A2018termloantrancheA2Member 2019-08-31 0001598014 info:A4.75SeniorNotesDue2028Member 2018-11-30 0001598014 info:A4.125SeniorNotesDue2023Member 2019-08-31 0001598014 info:A3.625SeniorNotesDue2024Member 2019-08-31 0001598014 info:A4.75SeniorNotesDue2028Member 2019-08-31 0001598014 info:A4.00SeniorNotesDue2026Member 2018-11-30 0001598014 info:A364DayCreditFacilityMember 2018-11-30 0001598014 info:A3.625SeniorNotesDue2024Member 2018-11-30 0001598014 info:A4.125SeniorNotesDue2023Member 2018-11-30 0001598014 info:A2018revolvingcreditfacilityMember 2019-08-31 0001598014 info:A364DayCreditFacilityMember 2019-08-31 0001598014 info:A5.00SeniorNotesdue2022Member 2019-08-31 0001598014 info:A5.00SeniorNotesdue2022Member 2018-11-30 0001598014 info:A4.25SeniorNotesDue2029Member 2019-08-31 0001598014 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember info:A364DayCreditFacilityMember 2018-08-01 2018-08-02 0001598014 info:A4.125SeniorNotesDue2023Member 2018-07-31 0001598014 us-gaap:LondonInterbankOfferedRateLIBORMember info:A2019CreditAgreementMember us-gaap:SubsequentEventMember 2019-09-01 2019-09-30 0001598014 info:A4.25SeniorNotesDue2029Member 2019-08-01 0001598014 info:A4.75SeniorNotesDue2025Member 2017-07-31 0001598014 info:Stepuponthe270thdayMember info:A364DayCreditFacilityMember 2018-08-01 2018-08-02 0001598014 info:Stepuponthe180thdayMember info:A364DayCreditFacilityMember 2018-08-01 2018-08-02 0001598014 info:A3.625SeniorNotesDue2024Member 2019-04-30 0001598014 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember info:A2018revolvingcreditfacilityMember 2018-06-24 2018-06-25 0001598014 info:A5.00SeniorNotesdue2022Member 2014-10-01 2014-10-31 0001598014 srt:MaximumMember info:A4.25SeniorNotesDue2029Member 2019-04-01 2019-04-30 0001598014 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember info:A2018revolvingcreditfacilityMember 2018-06-24 2018-06-25 0001598014 info:A5.00SeniorNotesdue2022Member 2014-10-31 0001598014 srt:MaximumMember info:A3.625SeniorNotesDue2024Member 2019-04-01 2019-04-30 0001598014 info:A4.00SeniorNotesDue2026Member 2017-12-01 2017-12-31 0001598014 info:A364DayCreditFacilityMember 2018-06-25 0001598014 info:A2018revolvingcreditfacilityMember 2018-06-25 0001598014 srt:MaximumMember info:A4.00SeniorNotesDue2026Member 2017-12-01 2017-12-31 0001598014 srt:MaximumMember info:A4.125SeniorNotesDue2023Member 2018-07-01 2018-07-31 0001598014 info:A2019CreditAgreementMember us-gaap:SubsequentEventMember 2019-09-30 0001598014 info:A4.25SeniorNotesDue2029Member 2019-04-30 0001598014 info:A4.75SeniorNotesDue2028Member 2018-07-31 0001598014 info:A4.75SeniorNotesDue2025Member 2017-02-28 0001598014 srt:MaximumMember info:A5.00SeniorNotesdue2022Member 2014-10-01 2014-10-31 0001598014 srt:MaximumMember info:A4.75SeniorNotesDue2028Member 2018-07-01 2018-07-31 0001598014 info:A5.00SeniorNotesdue2022Member 2016-07-31 0001598014 srt:MinimumMember info:A2018revolvingcreditfacilityMember 2018-06-24 2018-06-25 0001598014 srt:MaximumMember info:A2018revolvingcreditfacilityMember 2018-06-24 2018-06-25 0001598014 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember info:A364DayCreditFacilityMember 2018-08-01 2018-08-02 0001598014 info:A364DayCreditFacilityMember 2018-08-02 0001598014 info:A4.75SeniorNotesDue2028Member 2018-07-01 2018-07-31 0001598014 info:A4.00SeniorNotesDue2026Member 2017-12-31 0001598014 info:A4.25SeniorNotesDue2029Member 2019-04-01 2019-04-30 0001598014 info:A4.75SeniorNotesDue2025Member 2017-02-01 2017-02-28 0001598014 srt:MaximumMember info:A4.75SeniorNotesDue2025Member 2017-02-01 2017-02-28 0001598014 us-gaap:InterestRateSwapMember 2019-08-31 0001598014 us-gaap:NondesignatedMember 2019-08-31 0001598014 us-gaap:NondesignatedMember 2018-11-30 0001598014 info:AutomotiveMastermindMember 2018-12-01 2019-08-31 0001598014 info:FinancialServicesSegmentMember 2018-12-01 2019-08-31 0001598014 info:AutomotiveMastermindMember 2017-09-30 0001598014 srt:MinimumMember info:AutomotiveMastermindMember 2019-08-31 0001598014 info:AutomotiveMastermindMember 2019-08-31 0001598014 srt:MaximumMember info:AutomotiveMastermindMember 2019-08-31 0001598014 info:TransportationSegmentMember 2018-12-01 2019-08-31 0001598014 info:SharedServicesMember 2018-12-01 2019-08-31 0001598014 info:AcquisitionRelatedEmployeeSeveranceMember 2018-12-01 2019-08-31 0001598014 info:OtherAcquisitionRelatedCostsMember 2019-08-31 0001598014 info:AcquisitionRelatedContractTerminationMember 2018-12-01 2019-08-31 0001598014 info:OtherAcquisitionRelatedCostsMember 2018-12-01 2019-08-31 0001598014 info:AcquisitionRelatedEmployeeSeveranceMember 2019-08-31 0001598014 info:AcquisitionRelatedContractTerminationMember 2018-11-30 0001598014 info:AcquisitionRelatedContractTerminationMember 2019-08-31 0001598014 info:AcquisitionRelatedEmployeeSeveranceMember 2018-11-30 0001598014 info:OtherAcquisitionRelatedCostsMember 2018-11-30 0001598014 us-gaap:RestrictedStockUnitsRSUMember 2018-12-01 2019-08-31 0001598014 us-gaap:RestrictedStockUnitsRSUMember 2019-08-31 0001598014 us-gaap:RestrictedStockUnitsRSUMember 2018-11-30 0001598014 us-gaap:EmployeeStockOptionMember 2018-12-01 2019-08-31 0001598014 us-gaap:EmployeeStockOptionMember 2019-08-31 0001598014 us-gaap:EmployeeStockOptionMember 2018-11-30 0001598014 info:SellingGeneralAndAdministrativeMember 2019-06-01 2019-08-31 0001598014 info:SellingGeneralAndAdministrativeMember 2018-06-01 2018-08-31 0001598014 info:TotalCostOfRevenueMember 2018-12-01 2019-08-31 0001598014 info:TotalCostOfRevenueMember 2019-06-01 2019-08-31 0001598014 info:SellingGeneralAndAdministrativeMember 2018-12-01 2019-08-31 0001598014 info:SellingGeneralAndAdministrativeMember 2017-12-01 2018-08-31 0001598014 info:TotalCostOfRevenueMember 2017-12-01 2018-08-31 0001598014 info:TotalCostOfRevenueMember 2018-06-01 2018-08-31 0001598014 info:StockRepurchaseProgramJuly2019Member 2019-07-01 2019-07-31 0001598014 info:StockrepurchaseprogramSeptember2019Member us-gaap:SubsequentEventMember 2019-09-30 0001598014 info:StockRepurchaseProgramJuly2019Member 2019-07-31 0001598014 info:StockrepurchaseprogramOctober2017Member 2019-08-31 0001598014 info:StockrepurchaseprogramSeptember2019Member us-gaap:SubsequentEventMember 2019-09-01 2019-09-30 0001598014 info:StockRepurchaseProgramJuly2019Member 2019-08-01 2019-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-01 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-03-01 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-11-30 0001598014 info:PriorPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-03-01 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-06-01 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-01 2018-02-28 0001598014 info:PriorPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-01 2018-02-28 0001598014 info:PriorPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-01 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2018-03-01 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-01 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-01 2018-02-28 0001598014 info:PriorPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-11-30 0001598014 info:PriorPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2017-11-30 0001598014 info:PriorPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2018-02-28 0001598014 info:PriorPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-01 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-12-01 2018-02-28 0001598014 info:PriorPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-02-28 0001598014 info:PriorPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-11-30 0001598014 info:PriorPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-02-28 0001598014 info:PriorPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-08-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-05-31 0001598014 info:PriorPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-08-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-01 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2018-11-30 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-11-30 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-01 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-01 2019-08-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-11-30 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-01 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-06-01 2019-08-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-12-01 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-01 2019-08-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-01 2019-08-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-01 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-03-01 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-01 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-08-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-11-30 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-05-31 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-01 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-28 0001598014 info:CurrentPeriodMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-08-31 0001598014 info:CMSSegmentMember 2017-12-01 2018-08-31 0001598014 us-gaap:MaterialReconcilingItemsMember 2018-06-01 2018-08-31 0001598014 info:ResourcesSegmentMember 2017-12-01 2018-08-31 0001598014 info:TransportationSegmentMember 2018-06-01 2018-08-31 0001598014 us-gaap:MaterialReconcilingItemsMember 2017-12-01 2018-08-31 0001598014 us-gaap:MaterialReconcilingItemsMember 2019-06-01 2019-08-31 0001598014 info:CMSSegmentMember 2018-06-01 2018-08-31 0001598014 us-gaap:MaterialReconcilingItemsMember 2018-12-01 2019-08-31 0001598014 info:ResourcesSegmentMember 2019-06-01 2019-08-31 0001598014 info:TransportationSegmentMember 2019-06-01 2019-08-31 0001598014 us-gaap:CorporateNonSegmentMember 2019-06-01 2019-08-31 0001598014 info:FinancialServicesSegmentMember 2017-12-01 2018-08-31 0001598014 info:FinancialServicesSegmentMember 2019-06-01 2019-08-31 0001598014 info:ResourcesSegmentMember 2018-06-01 2018-08-31 0001598014 info:CMSSegmentMember 2018-12-01 2019-08-31 0001598014 info:FinancialServicesSegmentMember 2018-06-01 2018-08-31 0001598014 info:ResourcesSegmentMember 2018-12-01 2019-08-31 0001598014 info:TransportationSegmentMember 2017-12-01 2018-08-31 0001598014 info:CMSSegmentMember 2019-06-01 2019-08-31 0001598014 us-gaap:CorporateNonSegmentMember 2017-12-01 2018-08-31 0001598014 us-gaap:CorporateNonSegmentMember 2018-12-01 2019-08-31 0001598014 us-gaap:CorporateNonSegmentMember 2018-06-01 2018-08-31 iso4217:USD xbrli:shares xbrli:shares xbrli:pure iso4217:USD
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ___________________________________________________
FORM 10-Q
  ___________________________________________________
(Mark One)
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 2019

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number 001-36495
 ___________________________________________________
IHS MARKIT LTD.
(Exact name of registrant as specified in its charter) 
 ___________________________________________________
Bermuda
001-36495
98-1166311
(State or Other Jurisdiction of Incorporation or Organization)
(Commission File Number)
(IRS Employer Identification Number)

4th Floor, Ropemaker Place
25 Ropemaker Street
London, England
EC2Y 9LY
(Address of Principal Executive Offices)

+44 20 7260 2000
(Registrant’s telephone number, including area code)
 ___________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Common Shares, $0.01 par value per share
 
INFO
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    o  No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    o  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 



Table of Contents


Large accelerated filer    ☒    Accelerated filer    
Non-accelerated filer    ☐    Smaller reporting company    
Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes     No
As of August 31, 2019, there were 400,988,046 Common Shares outstanding (excluding 25,219,470 outstanding common shares held by the Markit Group Holdings Limited Employee Benefit Trust).


Table of Contents

TABLE OF CONTENTS
 
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future business, events, trends, contingencies, financial performance, or financial condition, appear at various places in this report and use words like “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “see,” “seek,” “should,” “strategy,” “strive,” “target,” “will,” and “would” and similar expressions, and variations or negatives of these words. Examples of forward-looking statements include, among others, statements we make regarding: guidance and predictions relating to expected operating results, such as revenue growth and earnings; strategic actions such as acquisitions, joint ventures, and dispositions, the anticipated benefits therefrom, and our success in integrating acquired businesses; anticipated levels of capital expenditures in future periods; anticipated levels of indebtedness, capital allocation, dividends, and share repurchases in future periods; our belief that we have sufficient liquidity to fund our ongoing business operations; expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities, and governmental and regulatory investigations and proceedings; and our strategy for customer retention, growth, product development, market position, financial results, and reserves. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: economic and financial conditions, including volatility in interest and exchange rates; our ability to develop new products and services; our ability to manage system failures or capacity constraints; our ability to manage fraudulent or unpermitted data access or other cyber-security or privacy breaches; our ability to successfully manage risks associated with changes in demand for our products and services; our ability to manage our relationships with third-party service providers; legislative, regulatory, and economic developments, including any new or proposed U.S. Treasury rule changes; the extent to which we are successful in gaining new long-term relationships with customers or retaining existing ones and the level of service failures that could lead customers to use competitors’ services; the anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion, and growth of our operations; our ability to retain and hire key personnel; our ability to satisfy our debt obligations and our other ongoing business obligations; and the occurrence of any catastrophic events, including acts of terrorism or outbreak of war or hostilities. These risks, as well as other risks which would cause actual results to be significantly different from those expressed or implied by these forward-looking statements, are more fully discussed under the caption “Risk Factors” in our Annual Report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission (“SEC”). While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant

2

Table of Contents

additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on our consolidated financial condition, results of operations, credit rating, or liquidity. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statement made by us in this Quarterly Report on Form 10-Q is based only on information currently available to our management and speaks only as of the date of this report. We do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

Website and Social Media Disclosure
 
We use our website (www.ihsmarkit.com) and corporate Twitter account (@IHSMarkit) as routine channels of distribution of company information, including news releases, analyst presentations, and supplemental financial information, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website and our corporate Twitter account in addition to following press releases, SEC filings and public conference calls and webcasts. Additionally, we provide notifications of news or announcements as part of our investor relations website. Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts.

None of the information provided on our website, in our press releases, public conference calls, and webcasts, or through social media channels is incorporated into, or deemed to be a part of, this quarterly report on Form 10-Q or in any other report or document we file with the SEC, and any references to our website or our social media channels are intended to be inactive textual references only.

3

Table of Contents

PART I.   FINANCIAL INFORMATION
Item 1.
Financial Statements
IHS MARKIT LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
 
As of
 
As of
 
August 31, 2019
 
November 30, 2018
 
(Unaudited)
 
(Audited)
Assets

 

Current assets:

 

Cash and cash equivalents
$
124.1

 
$
120.0

Accounts receivable, net
862.7

 
792.9

Income tax receivable
17.8

 
20.8

Deferred subscription costs
72.3

 
77.3

Other current assets
112.1

 
88.4

Total current assets
1,189.0

 
1,099.4

Non-current assets:

 

Property and equipment, net
623.9

 
579.6

Intangible assets, net
4,181.6

 
4,484.8

Goodwill
9,805.2

 
9,836.0

Deferred income taxes
14.6

 
14.6

Other
89.3

 
47.9

Total non-current assets
14,714.6

 
14,962.9

Total assets
$
15,903.6

 
$
16,062.3

Liabilities and equity


 


Current liabilities:

 

Short-term debt
$
1.2

 
$
789.9

Accounts payable
27.2

 
63.8

Accrued compensation
167.0

 
214.1

Other accrued expenses
437.9

 
357.7

Income tax payable
133.5

 
8.0

Deferred revenue
896.5

 
886.8

Total current liabilities
1,663.3

 
2,320.3

Long-term debt, net
5,051.2

 
4,889.2

Accrued pension and postretirement liability
17.0

 
17.4

Deferred income taxes
770.5

 
699.9

Other liabilities
150.7

 
109.1

Commitments and contingencies

 

Redeemable noncontrolling interests
15.9

 
5.9

Shareholders' equity:

 

Common shares, $0.01 par value, 3,000.0 authorized, 475.9 and 472.9 issued, and 401.0 and 397.1 outstanding at August 31, 2019 and November 30, 2018, respectively
4.8

 
4.7

Additional paid-in capital
7,745.6

 
7,680.4

Treasury shares, at cost: 74.9 and 75.8 at August 31, 2019 and November 30, 2018, respectively
(2,151.5
)
 
(2,108.8
)
Retained earnings
3,094.7

 
2,743.1

Accumulated other comprehensive loss
(458.6
)
 
(298.9
)
Total shareholders' equity
8,235.0

 
8,020.5

Total liabilities and equity
$
15,903.6

 
$
16,062.3

See accompanying notes.

4

Table of Contents

IHS MARKIT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except for per-share amounts)
 
 
Three months ended August 31,
 
Nine months ended August 31,
 
2019
 
2018
 
2019
 
2018
Revenue
$
1,112.3

 
$
1,001.0

 
$
3,294.2

 
$
2,941.4

Operating expenses:
 
 
 
 
 
 
 
Cost of revenue
419.7

 
375.3

 
1,247.5

 
1,086.6

Selling, general and administrative
295.4

 
287.7

 
889.0

 
877.2

Depreciation and amortization
144.7

 
134.1

 
431.0

 
395.7

Restructuring charges
1.1

 
0.4

 
11.0

 
0.4

Acquisition-related costs
23.4

 
41.7

 
67.6

 
94.5

Other (income) expense, net
(114.8
)
 
1.5

 
(108.4
)
 
5.9

Total operating expenses
769.5

 
840.7

 
2,537.7

 
2,460.3

Operating income
342.8

 
160.3

 
756.5

 
481.1

Interest income
0.6

 
0.9

 
1.6

 
2.5

Interest expense
(63.2
)
 
(56.7
)
 
(195.9
)
 
(158.3
)
Net periodic pension and postretirement (expense) income
(0.2
)
 
7.1

 
(0.7
)
 
6.6

Non-operating expense, net
(62.8
)
 
(48.7
)
 
(195.0
)
 
(149.2
)
Income from continuing operations before income taxes and equity in loss of equity method investee
280.0

 
111.6

 
561.5

 
331.9

(Provision) benefit for income taxes
(240.6
)
 
(7.9
)
 
(263.9
)
 
126.7

Equity in loss of equity method investee
(0.2
)
 
(0.2
)
 
(0.5
)
 
(0.2
)
Net income
39.2

 
103.5

 
297.1

 
458.4

Net loss attributable to noncontrolling interest
0.9

 
1.0

 
2.5

 
2.1

Net income attributable to IHS Markit Ltd.
$
40.1

 
$
104.5

 
$
299.6

 
$
460.5

 
 
 
 
 
 
 
 
Basic earnings per share attributable to IHS Markit Ltd.
$
0.10

 
$
0.26

 
$
0.75

 
$
1.17

Weighted average shares used in computing basic earnings per share
401.2

 
393.0

 
399.9

 
394.2

 
 
 
 
 
 
 
 
Diluted earnings per share attributable to IHS Markit Ltd.
$
0.10

 
$
0.26

 
$
0.73

 
$
1.13

Weighted average shares used in computing diluted earnings per share
410.9

 
405.1

 
409.4

 
406.8


See accompanying notes.


5

Table of Contents



IHS MARKIT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited, in millions)


 
 
Three months ended August 31,
 
Nine months ended August 31,
 
 
2019
 
2018
 
2019
 
2018
Net income
 
$
39.2

 
$
103.5

 
$
297.1

 
$
458.4

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
Net hedging activities (1)
 
(0.7
)
 
0.9

 
(4.1
)
 
6.7

Net pension liability adjustment (2)
 

 
0.6

 

 
0.6

Foreign currency translation adjustment
 
(115.6
)
 
(78.5
)
 
(155.6
)
 
(137.0
)
Total other comprehensive loss
 
(116.3
)
 
(77.0
)
 
(159.7
)
 
(129.7
)
Comprehensive (loss) income
 
$
(77.1
)
 
$
26.5

 
$
137.4

 
$
328.7

Comprehensive loss attributable to noncontrolling interest
 
0.9

 
1.0

 
2.5

 
2.1

Comprehensive (loss) income attributable to IHS Markit Ltd.
 
$
(76.2
)
 
$
27.5

 
$
139.9

 
$
330.8

(1) Net of tax benefit (expense) of $0.1 million; $(0.2) million; $0.9 million, and $(1.6) million for the three and nine months ended August 31, 2019 and 2018, respectively.
(2) Net of tax expense of $0.2 million for the three and nine months ended August 31, 2018.


See accompanying notes.

6

Table of Contents


IHS MARKIT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
 
 
Nine months ended August 31,
 
2019
 
2018
Operating activities:

 

Net income
$
297.1

 
$
458.4

Reconciliation of net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
431.0

 
395.7

Stock-based compensation expense
167.3

 
172.1

Gain on sale of assets
(113.0
)
 

Net periodic pension and postretirement expense
0.7

 
(6.6
)
Undistributed earnings of affiliates, net
0.2

 

Pension and postretirement contributions
(1.1
)
 
(2.2
)
Deferred income taxes
109.9

 
(203.2
)
Change in assets and liabilities:
 
 
 
Accounts receivable, net
(17.5
)
 
27.9

Other current assets
(52.7
)
 
(14.1
)
Accounts payable
(14.5
)
 
(13.3
)
Accrued expenses
10.2

 
(10.4
)
Income tax
106.6

 
34.0

Deferred revenue
39.0

 
33.4

Other liabilities
62.4

 
60.3

Net cash provided by operating activities
1,025.6

 
932.0

Investing activities:

 

Capital expenditures on property and equipment
(199.9
)
 
(168.5
)
Acquisitions of businesses, net of cash acquired
(128.4
)
 
(1,881.4
)
Proceeds from sale of assets
159.2

 

Change in other assets
(9.3
)
 
(7.4
)
Settlements of forward contracts
(28.1
)
 
(6.9
)
Net cash used in investing activities
(206.5
)
 
(2,064.2
)
Financing activities:

 

Proceeds from borrowings
1,984.9

 
4,599.9

Repayment of borrowings
(2,613.0
)
 
(2,721.6
)
Payment of debt issuance costs
(12.3
)
 
(30.9
)
Payments for purchase of noncontrolling interests

 
(7.7
)
Proceeds from noncontrolling interests
12.5

 

Contingent consideration payments
(2.2
)
 
(43.0
)
Proceeds from the exercise of employee stock options
134.1

 
162.4

Payments related to tax withholding for stock-based compensation
(65.9
)
 
(85.6
)
Repurchases of common shares
(200.0
)
 
(672.5
)
Net cash (used in) provided by financing activities
(761.9
)
 
1,201.0

Foreign exchange impact on cash balance
(53.1
)
 
(48.2
)
Net increase in cash and cash equivalents
4.1

 
20.6

Cash and cash equivalents at the beginning of the period
120.0

 
133.8

Cash and cash equivalents at the end of the period
$
124.1

 
$
154.4


See accompanying notes.

7

Table of Contents

IHS MARKIT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited, in millions)
 
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
(3.9
)
 
 
 
 
 
(172.5
)
 
 
 
 
 
(172.5
)
 
 
 
Share-based award activity
2.1

 
 
 
(56.8
)
 
28.2

 
 
 
 
 
(28.6
)
 
 
 
Option exercises
2.4

 
 
 
56.5

 
 
 
 
 
 
 
56.5

 
 
 
Net income (loss)
 
 
 
 
 
 
 
 
241.3

 
 
 
241.3

 
 
(0.6
)
Impact of the Tax Cuts and Jobs Act of 2017
 
 
 
 
 
 
 
 
5.9

 
(5.9
)
 

 
 
 
Purchase of noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 

 
 
(10.1
)
Other comprehensive income
 
 
 
 
 
 
 
 
 
 
61.2

 
61.2

 
 
 
Balance at February 28, 2018
399.8


4.7


7,611.8


(1,889.3
)

2,464.8


(29.7
)

8,162.3



8.4

Repurchases of common shares
(10.3
)
 

 

 
(500.0
)
 

 

 
(500.0
)
 
 

Share-based award activity

 

 
(49.1
)
 
100.1

 

 

 
51.0

 
 

Option exercises
2.5

 

 
54.6

 

 

 

 
54.6

 
 

Net income (loss)

 

 

 

 
114.7

 

 
114.7

 
 
(0.5
)
Other comprehensive loss

 

 

 

 

 
(113.9
)
 
(113.9
)
 
 

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

Repurchases of common shares
 
 

 

 
 
 

 

 

 
 

Share-based award activity
0.2

 

 
(35.6
)
 
78.5

 

 

 
42.9

 
 

Option exercises
2.0

 

 
52.5

 

 

 

 
52.5

 
 

Net income (loss)

 

 

 

 
104.5

 

 
104.5

 
 
(1.0
)
Other comprehensive loss

 

 

 

 

 
(77.0
)
 
(77.0
)
 
 

Balance at August 31, 2018
394.2

 
$
4.7

 
$
7,634.2

 
$
(2,210.7
)
 
$
2,684.0

 
$
(220.6
)
 
$
7,891.6

 
 
$
6.9

 
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, 2018 (Audited)
397.1

 
$
4.7

 
$
7,680.4

 
$
(2,108.8
)
 
$
2,743.1

 
$
(298.9
)
 
$
8,020.5

 
 
$
5.9

Adjustment to opening retained earnings related to adoption of ASC Topic 606
 
 
 
 
 
 
 
 
56.0

 
 
 
56.0

 
 
 
Share-based award activity
1.7

 
0.1

 
8.5

 
(18.0
)
 
(2.4
)
 
 
 
(11.8
)
 
 
 
Option exercises
0.9

 
 
 
23.7

 
 
 
 
 
 
 
23.7

 
 
 
Net income (loss)
 
 
 
 
 
 
 
 
109.7

 
 
 
109.7

 
 
(0.7
)
Issuance of noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 

 
 
12.5

Other comprehensive income
 
 
 
 
 
 
 
 
 
 
134.2

 
134.2

 
 
 
Balance at February 28, 2019
399.7


4.8


7,712.6


(2,126.8
)

2,906.4


(164.7
)

8,332.3



17.7

Share-based award activity
0.2

 

 
0.5

 
50.5

 
(1.4
)
 

 
49.6

 
 

Option exercises
1.2

 

 
32.3

 

 

 

 
32.3

 
 

Net income (loss)

 

 

 

 
149.8

 

 
149.8

 
 
(0.9
)
Other comprehensive loss

 

 

 

 

 
(177.6
)
 
(177.6
)
 
 

Balance at May 31, 2019
401.1

 
$
4.8

 
$
7,745.4

 
$
(2,076.3
)
 
$
3,054.8

 
$
(342.3
)
 
$
8,386.4

 
 
$
16.8

Repurchases of common shares
(3.1
)
 

 

 
(200.0
)
 

 

 
(200.0
)
 
 

Share-based award activity

 

 
(79.3
)
 
124.8

 
(0.2
)
 

 
45.3

 
 

Option exercises
3.0

 

 
79.5

 

 

 

 
79.5

 
 

Net income (loss)

 

 

 

 
40.1

 

 
40.1

 
 
(0.9
)
Other comprehensive loss

 

 

 

 

 
(116.3
)
 
(116.3
)
 
 

Balance at August 31, 2019
401.0

 
$
4.8

 
$
7,745.6

 
$
(2,151.5
)
 
$
3,094.7

 
$
(458.6
)
 
$
8,235.0

 
 
$
15.9

See accompanying notes.

8

Table of Contents

IHS MARKIT LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
1.
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, 2018. 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 2019.

Revenue Recognition

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. These standards have all been codified in the FASB’s Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.”

On December 1, 2018, we adopted ASC Topic 606 using the modified retrospective transition method applied to our customer revenue contracts as of the adoption date. Revenue results for periods beginning after December 1, 2018 are presented in accordance with ASC Topic 606, while prior year amounts continue to be reported in accordance with ASC Topic 605, “Revenue Recognition.”

The following table shows the cumulative effect of the changes made to the December 1, 2018 consolidated balance sheet for the adoption of ASC Topic 606 related to contracts that were in effect at the time of adoption (in millions):
 
November 30, 2018
 
Adjustments due to adoption of ASC Topic 606
 
December 1, 2018
Accounts receivable, net
$
792.9

 
$
29.8

 
$
822.7

Other current assets
88.4

 
4.2

 
92.6

Other non-current assets
47.9

 
9.5

 
57.4

Deferred revenue
886.8

 
(28.8
)
 
858.0

Deferred income taxes
699.9

 
16.3

 
716.2

Retained earnings
2,743.1

 
56.0

 
2,799.1



The net cumulative effect adjustment to retained earnings was primarily related to (1) the change in accounting for the license rights associated with certain term-based software license arrangements, which were historically recognized over the term of the contract, but are now recognized at contract inception based on estimated stand-alone selling price, and (2) the change in accounting for commission costs incurred to obtain a portion of our contracts, which costs were historically expensed as incurred, but are now deferred at contract inception and recognized over the expected customer life.

For the three and nine months ended August 31, 2019, the adoption of ASC Topic 606 did not result in a material difference between what we reported under ASC Topic 606 and what we would have reported under ASC Topic 605.


9

Table of Contents

We disaggregate our revenue by segment (as described in Note 12) and by transaction type according to the following categories:

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, which provide continuous access to our platforms and associated data over the contract term. The revenue is usually recognized ratably over the contract term or for term-based software license arrangements, annually on renewal. The initial term of these contracts is typically annual (with some longer-term arrangements) 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, and revenue is recognized based on the specific factor used (e.g., for usage-based contracts, we recognize revenue in line with usage in the period). 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, perpetual license sales and associated services, conferences and events, and advertising. Revenue for services and other non-recurring revenue is recognized upon completion of the associated performance obligation.

The following table presents our revenue by transaction type (in millions):
 
Three months ended August 31,
 
Nine months ended August 31,
 
2019
 
2018
 
2019
 
2018
Recurring fixed revenue
$
799.9

 
$
717.7

 
$
2,352.3

 
$
2,099.1

Recurring variable revenue
144.4

 
124.8

 
425.4

 
367.8

Non-recurring revenue
168.0

 
158.5

 
516.5

 
474.5

Total revenue
$
1,112.3

 
$
1,001.0

 
$
3,294.2

 
$
2,941.4



Our customer contracts may include multiple performance obligations; for example, we typically sell software licenses with maintenance and other associated services. For these transactions, we recognize revenue based on the relative fair value to the customer of each performance obligation as each performance obligation is completed.

We record a receivable when a customer is billed or when revenue is recognized prior to billing a customer. Contract assets include unbilled amounts for multi-year customer contracts where payment is not yet due and where services have been provided up-front but have not yet been billed. Contract assets were approximately $40.7 million as of August 31, 2019 and $29.8 million as of December 1, 2018, and are recorded in accounts receivable, net, in the consolidated balance sheets.

Contract liabilities primarily include our obligations to transfer goods or services for which we have received consideration (or an amount of consideration is due) from the customer. As of August 31, 2019 and December 1, 2018, we had contract liabilities of $896.5 million and $858.0 million, respectively, which are recorded as deferred revenue in the consolidated balance sheets. The increase in contract liabilities from December 1, 2018 to August 31, 2019 was primarily due to billings of $2,605.3 million that were paid in advance or due from customers, partially offset by $2,557.6 million of revenue recognized for the nine months ended August 31, 2019 and a $9.2 million net reduction in contract liabilities associated with the Agribusiness acquisition and the Technology, Media, & Telecom (“TMT”) market intelligence assets divestiture, as described in Note 2.

We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to exceed one year. Certain sales commission programs are designed to promote the sale of products and services to new customers, and we therefore defer the incremental costs related to these programs over the expected customer life related to those products underlying the contracts. We record these expenses as selling, general and administrative expense within the consolidated statements of operations.


10

Table of Contents

Recent Accounting Pronouncements

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. In July 2018, the FASB issued ASU 2018-11, which provides targeted improvements to ASU 2016-02 by providing an additional optional transition method and a lessor practical expedient for lease and nonlease components. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. We have determined that we will adopt this standard using the modified retrospective approach and will use the transition relief package of practical expedients. We will not adopt the hindsight practical expedient in determining a lease term and impairment of the right-of-use assets at the adoption date. We are currently developing an inventory of leasing arrangements that will be subject to the new standard and are developing assumptions and processes to use at the transition date and on an ongoing basis. We are still evaluating the impact of this standard on our consolidated financial statements, but believe that the most significant impact of adoption will be the recognition of right-of-use assets and lease liabilities associated with our operating leases.

In June 2016, the FASB issued ASU No. 2016-13, which replaces the existing incurred loss impairment model with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard will be effective for us in the first quarter of our fiscal year 2021. 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 August 2018, the FASB issued ASU 2018-15, which addresses the accounting for implementation costs associated with a hosted service. The standard provides that implementation costs be evaluated for capitalization using the same criteria as that used for internal-use software development costs, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. The standard will be effective for us in the first quarter of our fiscal 2021, although early adoption is permitted. The amendments will be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements.

2.
Business Combinations and Divestitures

On June 30, 2019, we acquired the Agribusiness Intelligence group from Informa plc for approximately $128 million. The acquisition of the Agribusiness Intelligence group helps strengthen our Resources core end-market by building on our existing data, pricing, insights, forecasting, and news services within our chemical and downstream product offerings, and expands our capability into fertilizers and chemical crop protection while expanding our capabilities in biofuels.

The purchase price allocation for this acquisition 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 this acquisition (in millions):



11

Table of Contents

 
Total
Assets:
 
Current assets
$
10.2

Property and equipment
0.6

Intangible assets
55.4

Goodwill
86.0

Total assets
152.2

Liabilities:
 
Current liabilities
2.2

Deferred revenue
12.2

Deferred taxes
9.4

Total liabilities
23.8

Purchase price
$
128.4



On August 1, 2019, we sold the majority of our TMT market intelligence assets to Informa plc for approximately $150 million. The TMT assets were previously included in our CMS segment. We recognized a gain of approximately $112 million on the sale, which is recorded in other (income) expense, net. The transaction resulted in the divestiture of the following assets and liabilities (in millions):
Current assets
$
10.3

Property and equipment
$
0.9

Intangible assets
$
14.1

Goodwill
$
33.4

Current liabilities
$
(0.8
)
Deferred revenue
$
(21.5
)

In September 2019, we entered into a definitive agreement to sell our Aerospace & Defense business line to Montagu Private Equity for approximately $470 million. Completion of the transaction is subject to customary closing conditions and regulatory filings and approvals.

3.
Intangible Assets

The following table presents details of our intangible assets, other than goodwill, as of August 31, 2019 and November 30, 2018 (in millions): 
 
As of August 31, 2019
 
As of November 30, 2018
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
Information databases
$
623.8

 
$
(330.8
)
 
$
293.0

 
$
671.0

 
$
(329.6
)
 
$
341.4

Customer relationships
3,427.9

 
(592.9
)
 
2,835.0

 
3,458.8

 
(473.3
)
 
2,985.5

Developed technology
923.4

 
(185.6
)
 
737.8

 
928.8

 
(133.1
)
 
795.7

Developed computer software
85.0

 
(69.7
)
 
15.3

 
85.0

 
(63.0
)
 
22.0

Trademarks
494.5

 
(194.0
)
 
300.5

 
493.8

 
(153.6
)
 
340.2

Other
1.1

 
(1.1
)
 

 
1.1

 
(1.1
)
 

Total intangible assets
$
5,555.7

 
$
(1,374.1
)
 
$
4,181.6

 
$
5,638.5

 
$
(1,153.7
)
 
$
4,484.8




12

Table of Contents

Intangible assets amortization expense was $93.2 million and $283.5 million for the three and nine months ended August 31, 2019, respectively, compared to $89.1 million and $266.7 million for the three and nine months ended August 31, 2018, respectively. The following table presents the estimated future amortization expense related to intangible assets held as of August 31, 2019 (in millions):
Year
 
Amount
Remainder of 2019
 
$
92.8

2020
 
$
368.6

2021
 
$
363.8

2022
 
$
345.3

2023
 
$
334.2

Thereafter
 
$
2,676.9


Goodwill, gross intangible assets, and net intangible assets are all subject to foreign currency translation effects. The change in net intangible assets from November 30, 2018 to August 31, 2019 was due to current year amortization, the addition of the Agribusiness intangible assets, and the sale of the TMT market intelligence intangible assets.

4.
Debt

The following table summarizes total indebtedness, including unamortized premiums, as of August 31, 2019 and November 30, 2018 (in millions):
 
 
August 31, 2019
 
November 30, 2018
2018 revolving facility
 
$
413.0

 
$
1,108.0

2018 term loan:
 
 
 
 
Tranche A-1
 

 
574.0

Tranche A-2
 

 
481.3

364-day credit agreement
 

 
250.0

5.00% senior notes due 2022
 
750.0

 
750.0

4.125% senior notes due 2023
 
498.9

 
498.6

3.625% senior notes due 2024
 
398.9

 

4.75% senior notes due 2025
 
812.3

 
813.8

4.00% senior notes due 2026
 
500.0

 
500.0

4.75% senior notes due 2028
 
747.5

 
747.3

4.25% senior notes due 2029
 
974.8

 

Debt issuance costs
 
(50.0
)
 
(51.2
)
Capital leases
 
7.0

 
7.3

Total debt
 
$
5,052.4

 
$
5,679.1

Current portion
 
(1.2
)
 
(789.9
)
Total long-term debt
 
$
5,051.2

 
$
4,889.2



2018 revolving facility. On June 25, 2018, we entered into a $2.0 billion senior unsecured revolving credit agreement (“2018 revolving facility”). Borrowings under the 2018 revolving facility mature in June 2023. The interest rates for borrowings under the 2018 revolving facility are the applicable LIBOR plus a spread of 1.00 percent to 1.75 percent, depending upon our credit rating. A commitment fee on any unused balance is payable periodically and ranges from