Verisk Analytics, Inc. Leases Disclosure
We have operating and finance leases for corporate offices, data centers, and certain equipment that are accounted for under ASC 842. The lease term for our corporate headquarters ends in 2033 and includes the options to extend for 10-year renewal period and 5-year renewal periods. Extension and termination options are considered in the calculation of our ROU assets and lease liabilities when we determine it is reasonably certain that we will exercise those options.
The following table presents the consolidated lease cost and cash paid for amounts included in the measurement of lease liabilities for finance and operating leases for the years ended December 31, 2023 and 2022:
| 2023 | 2022 | |||||||
| Lease cost: | ||||||||
| Operating lease cost (1) | $ | 33.9 | $ | 47.7 | ||||
| Sublease income | (1.7 | ) | (2.0 | ) | ||||
| Finance lease cost | ||||||||
| Depreciation of finance lease assets (2) | 14.4 | 12.8 | ||||||
| Interest on finance lease liabilities (3) | 1.0 | 0.5 | ||||||
| Total lease cost | $ | 47.6 | $ | 59.0 | ||||
| Other information: | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||
| Operating cash outflows from operating leases | $ | (34.9 | ) | $ | (46.4 | ) | ||
| Operating cash outflows from finance leases | $ | (1.0 | ) | $ | (0.5 | ) | ||
| Financing cash outflows from finance leases | $ | (15.7 | ) | $ | (14.3 | ) | ||
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(1) Included in "Cost of revenues" and "Selling, general and, administrative" expenses in our accompanying consolidated statements of operations
(2) Included in "Depreciation and amortization of fixed assets" in our accompanying consolidated statements of operations
(3) Included in "Interest expense" in our accompanying consolidated statements of operations
The following table presents weighted-average remaining lease terms and weighted-average discount rates for the consolidated finance and operating leases for the years ended December 31, 2023 and 2022:
| 2023 | 2022 | |||||||
| Weighted-average remaining lease term - operating leases (in years) | 8.2 | 8.5 | ||||||
| Weighted-average remaining lease term - finance leases (in years) | 3.1 | 1.7 | ||||||
| Weighted-average discount rate - operating leases | 4.0 | % | 3.8 | % | ||||
| Weighted-average discount rate - finance leases | 4.2 | % | 2.6 | % | ||||
Our ROU assets and lease liabilities for finance leases were $41.2 million and $34.5 million, respectively, as of December 31, 2023. Our ROU assets and lease liabilities for finance leases were $10.7 million and $4.2 million, respectively, as of December 31, 2022. Our ROU assets for finance leases were included in "Fixed assets, net" in our accompanying consolidated balance sheets. Our lease liabilities for finance leases were included in the "Short-term debt and current portion of long-term debt" and "Long-term debt" in our accompanying consolidated balance sheets (See Note 15. Debt).
Maturities of the continuing lease liabilities for the years through 2029 and thereafter are as follows:
| Years Ending | Operating Leases | Finance Leases | ||||||
| 2024 | $ | 33.3 | $ | 15.6 | ||||
| 2025 | 34.1 | 13.8 | ||||||
| 2026 | 32.6 | 3.4 | ||||||
| 2027 | 32.4 | 2.6 | ||||||
| 2028 | 31.7 | 1.7 | ||||||
| 2029 and thereafter | 104.3 | - | ||||||
| Total lease payments | 268.4 | 37.1 | ||||||
| Less: Amount representing interest | (39.7 | ) | (2.6 | ) | ||||
| Present value of total lease payments | $ | 228.7 | $ | 34.5 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 21, 2024 | Showing above |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 18, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.