Verisk Analytics Inc

Previous wording

We earn revenues through agreements for hosted subscriptions, advisory/consulting services, and for transactional solutions, recurring and non-recurring. Subscriptions for our solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year and automatically renewed each year. As a result, the timing of our cash flows generally precedes our recognition of revenues and income and our cash flow from operations tends to be higher in the first quarter as we receive subscription payments. Examples of these arrangements include subscriptions that allow our customers to access our standardized coverage language, our claims fraud database, or our actuarial services throughout the subscription period. In general, we experience minimal revenue seasonality within the busi ness. For thesix months ended June 30, 2024 and 2023, approximately 81% and 80% of our insurance revenues were derived from hosted subscriptions through agreements (generally one to five years) for our solutions, respectively.

Current wording

We earn revenues through agreements for hosted subscriptions, advisory/consulting services, and for transactional solutions, recurring and non-recurring. Subscriptions for our solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year and automatically renewed each year. As a result, the timing of our cash flows generally precedes our recognition of revenues and income and our cash flow from operations tends to be higher in the first quarter as we receive subscription payments. Examples of these arrangements include subscriptions that allow our customers to access our standardized coverage language, our claims fraud database, or our actuarial services throughout the subscription period. In general, we experience minimal revenue seasonality within the busi ness. For thenine months ended September 30, 2024 and 2023, approximately 81% and 80% of our insurance revenues were derived from hosted subscriptions through agreements (generally one to five years) for our solutions, respectively.

Previous wording

We also provide advisory/consulting services, which help our customers get more value out of our analytics and their subscriptions. In addition, certain of our solutions are paid for by our customers on a transactional basis, recurring and non-recurring. For example, we have solutions that allow our customers to access property-specific rating and underwriting information to price a policy on a commercial building, or compare a P&C insurance or a workers' compensation claim with information in our databases, or use our repair cost estimation solutions on a case-by-case basis. For thesix months ended June 30, 2024 and 2023, approximately 19% and 20% of our insurance revenues were derived from providing transactional and advisory/consulting solutions, respectively.

Current wording

We also provide advisory/consulting services, which help our customers get more value out of our analytics and their subscriptions. In addition, certain of our solutions are paid for by our customers on a transactional basis, recurring and non-recurring. For example, we have solutions that allow our customers to access property-specific rating and underwriting information to price a policy on a commercial building, or compare a P&C insurance or a workers' compensation claim with information in our databases, or use our repair cost estimation solutions on a case-by-case basis. For thenine months ended September 30, 2024 and 2023, approximately 19% and 20% of our insurance revenues were derived from providing transactional and advisory/consulting solutions, respectively.

Previous wording

Personnel expenses are the major component of both our cost of revenues and selling, general and administrative expenses. Personnel expenses, which represented approximately 58% and 61% of our total operating expenses (excluding gains/losses related to dispositions) for thesix months ended June 30, 2024 and 2023, respectively, include salaries, benefits, incentive compensation, equity compensation costs, sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.

Current wording

Personnel expenses are the major component of both our cost of revenues and selling, general and administrative expenses. Personnel expenses, which represented approximately 57% and 59% of our total operating expenses (excluding gains/losses related to dispositions) for thenine months ended September 30, 2024 and 2023, respectively, include salaries, benefits, incentive compensation, equity compensation costs, sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.

Previous wording

Revenuesfor our Insurance segment were $716.8 million for the three months ended June 30, 2024, compared to $675.0 million for the three months ended June 30, 2023, a n** **increase o f $41.8 million or 6.2%. Our underwriting revenue increased $29.4 million or 6.2%. Our claims revenue increased $12.4 million or 6.3%.

Current wording

Revenuesfor our Insurance segment were $725.3 million for the three months ended September 30, 2024, compared to $677.6 million for the three months ended September 30, 2023, a n** **increase o f $47.7 million or 7.0%. Our underwriting revenue increased $31.7 million or 6.7%. Our claims revenue increased $16.0 million or 7.9%.

Previous wording

Our recent acquisitions (Morning Data within the underwriting category of our Insurance segment; Krug and Rocket within the claims category of the Insurance segment) contributed net revenues of $1.6 million, while the remaining Insurance revenues increased$40.2 million or 6.0%. Our underwriting revenue increased $29.1 million or 6.1%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within extreme event solutions. In addition, specialty business and life solutions contributed to the growth. Our claims revenue increased $11.1 million or 5.7%, primarily due to solid growth in anti-fraud solutions and property estimating solutions.

Current wording

Our recent acquisition (Rocket within the claims category of the Insurance segment) contributed net revenues of $0.6 million, while the remaining Insurance revenues increased $47.1 million or 7.0%. Our underwriting revenue increased $31.8 million or 6.7%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within extreme event solutions. In addition, specialty business and life solutions contributed to the growth. Our claims revenue increased $15.3 million or 7.6%, primarily due to solid growth in anti-fraud solutions and property estimating solutions.

Previous wording

Cost of revenues was $219.4 million for thethree months ended June 30, 2024 compared to$216.9 million for thethree months ended June 30, 2023, anincreaseof$2.5 million or 1.2%. Our recent acquisitions accounted for anincrease of $1.6 million in cost of revenues. The remaining increase of $0.9 million or 0.4% was primarily due toincreasein salaries and employee benefits of $3.1 million, bad debt expense of $1.0 million, information technology expenses of $0.8 million, and travel expenses of $0.5 million, partially offset by a reduction in rent expense of $1.8 million, professional consulting fees of $1.7 million, data costs of $0.5 million, and other operating costs of $0.5 million.

Current wording

Cost of revenues was $223.4 million for thethree months ended September 30, 2024 compared to$217.2 million for thethree months ended September 30, 2023, anincreaseof$6.2 million or 2.9%. Our recent acquisition accounted for anincrease of$0.4 million in cost of revenues. The remaining increase of $5.8 million or 2.7% was primarily due toincreasein salaries and employee benefits of $5.1 million, professional consulting fees of $4.0 million, information technology expenses of $2.8 million, travel expenses of $0.6 million, and bad debt expense of $0.3 million, partially offset bya reduction in data costs of $2.5 million, $1.5 million gain primarily related to our Jersey City lease modification, office expense of $0.6 million, and other operating costs of $2.4 million.

Previous wording

Depreciation and amortization of fixed assets were$59.0 million for thethree months ended June 30, 2024 compared to $46.5 millionfor thethree months ended June 30, 2023, anincrease of$12.5 million or 26.9%. The increase was due to assets placed into service primarily resulted from the timing of certain large internally developed software projects that were completed and placed into service.

Current wording

Depreciation and amortization of fixed assets were$58.1 million for thethree months ended September 30, 2024 compared to $48.1 millionfor thethree months ended September 30, 2023, anincrease of$10.0 million or 20.8%. The increase was primarily due to the timing of certain large internally developed software projects that were completed and placed into service in the prior year.

Previous wording

Amortization of intangible assets was$18.2 million for thethree months ended June 30, 2024 compared to$18.8 millionfor thethree months ended June 30, 2023, adecrease of$0.6 million or 3.2%. The decrease was primarily due tointangible assets that were fully amortized of $0.8 million, partially offset by the amortization of intangible assets related to our recent acquisitions of $0.2 million.

Current wording

Amortization of intangible assets was$18.3 million for thethree months ended September 30, 2024 compared to$19.6 millionfor thethree months ended September 30, 2023, adecrease of$1.3 million or 6.6%. The decrease was primarily due to intangible assets that were fully amortized, partially offset by an increase due to our recent acquisition of $0.3 million.

Previous wording

Investment gain was$96.5 million for thesix months ended June 30, 2024 compared to a loss of$7.3 million for thesix months ended June 30, 2023, anincrease of $103.8 million. The increase was primarily driven bynet gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022, partially offset by the impact of foreign currencies.

Current wording

Investment gain was$5.9 million for thethree months ended September 30, 2024 compared to a loss of$2.0 million for thethree months ended September 30, 2023, anincrease of $7.9 million. The increase was primarily driven by the impact of foreign currencies associated with transactions in the normal course of business.

Previous wording

The provision for income taxes was$85.2 million for thethree months ended June 30, 2024, compared to$63.9 million for thethree months ended June 30, 2023, an increase of$21.3 million or 33.3%. The effective tax rate was 21.7% for thethree months ended June 30, 2024 compared to 23.8% for thethree months ended June 30, 2023. The effective tax rate for thethree months ended June 30, 2024 waslower than the effective tax rate for thethree months ended June 30, 2023 primarily due to additional tax benefits resulting from the Company's recognition of capital gains arising from the settlement of our investment in non-public companies in the current period. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Current wording

The provision for income taxes was$65.3 million for thethree months ended September 30, 2024, compared to$62.3 million for thethree months ended September 30, 2023, an increase of$3.0 million or 4.6%. The effective tax rate was 22.9% for thethree months ended September 30, 2024 compared to 25.0% for thethree months ended September 30, 2023. The effective tax rate for thethree months ended September 30, 2024 waslower than the effective tax rate for thethree months ended September 30, 2023 primarily due to nondeductible litigation accruals recorded in the prior period. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Previous wording

Revenuesfor our Insurance segment were $1,420.8 million for the six months ended June 30, 2024, compared to $1,326.6 million for the six months ended June 30, 2023, a n** **increase o f $94.2 million or 7.1%. Our underwriting revenue increased $67.3 million or 7.2%. Our claims revenue increased $26.9 million or 6.9%.

Current wording

Revenues for our Insurance segment were $2,146.1 million for the nine months ended September 30, 2024, compared to $2,004.2 million for the nine months ended September 30, 2023, a n** **increase o f $141.9 million or 7.1%. Our underwriting revenue increased $99.1 million or 7.0%. Our claims revenue increased $42.8 million or 7.3% .

Previous wording

Our recent acquisitions (Morning Data within the underwriting category of our Insurance segment; Mavera Holding AB, Krug and Rocket within the claims category of the Insurance segment) contributed net revenues of $7.5 million, while the remaining Insurance revenues increased$86.7 million or 6.6%. Our underwriting revenue increased $66.4 million or 7.1%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within extreme event solutions, underwriting data and analytic solutions, and specialty business solutions. Our claims revenue increased $20.3 million or 5.3%, primarily due to growth in anti-fraud solutions and property estimating solutions.

Current wording

Our recent acquisitions (Morning Data within the underwriting category of our Insurance segment; Rocket, Mavera and Krug within the claims category of the Insurance segment) contributed net revenues of $8.1 million, while the remaining Insurance revenues increased$133.8 million or 6.7%. Our underwriting revenue increased $98.1 million or 6.9%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within extreme event solutions, underwriting data and analytic solutions, and specialty business solutions. Our claims revenue increased $35.7 million or 6.1%, primarily due to growth in anti-fraud solutions and property estimating solutions.

Previous wording

Cost of revenues was$447.2 million for thesix months ended June 30, 2024 compared to$433.1 million for thesix months ended June 30, 2023, anincreaseof$14.1 million or 3.3%. Our recent acquisitions accounted for anincrease of $6.6 million in cost of revenues, primarily related to salaries and benefits. The remaining increase related to Insurance of $7.5 million or 1.7% was primarily due toincreasein salaries and employee benefits of $8.1 million, bad debt expense of $2.3 million, information technology expenses of $1.5 million, and professional consulting fees of $0.3 million, partially offset by a reduction in rent expense of $1.9 million, data costs of $0.9 million, travel expenses of $0.5 million, and other operating costs of $1.4 million.

Current wording

Cost of revenues was$670.6 million for thenine months ended September 30, 2024 compared to$650.3 million for thenine months ended September 30, 2023, anincreaseof$20.3 million or 3.1%. Our recent acquisitions accounted for anincrease of $0.4 million in cost of revenues, primarily related to salaries and benefits. The remaining increase related to Insurance of $19.9 million or 3.1% was primarily due toincreasein salaries and employee benefits of $18.5 million, professional consulting fees of $5.0 million, information technology expenses of $4.7 million, and bad debt expense of $2.5 million, partially offset by a reduction in data costs of $3.4 million, rent expense of $2.1 million,$1.5 million gain related to our lease modification, fees and membership costs of $0.8 million, office expenses of $0.6 million, and other operating costs of $2.4 million.

Previous wording

Selling, general and administrative expenses were$101.5 million for thethree months ended June 30, 2024 compared to$86.8 million for thethree months ended June 30, 2023, an increaseof$14.7 million or 16.9%. Our recent acquisitions, inclusive of our acquisition-related costs (earn-outs) accounted for an increase of $7.0 million in selling, general, and administrative expenses. This increase was primarily due to our earn-out credit of $7.0 million in the prior year that did not recur in the current period. The remaining increase of $7.7 million or 8.2% was primarily due to increases in professional fees of $3.8 million, salaries and employee benefits of $3.7 million, andi nformation technology expenses of $0.9 million, partially offset by a decrease in other operating costs of $0.7 million.

Current wording

Selling, general and administrative expenses were $308.4 million for thenine months ended September 30, 2024 compared to$277.4 million for thenine months ended September 30, 2023, anincreaseof$31.0 million or 11.2%. Our recent acquisitions, inclusive of our acquisition-related costs (earn-outs), accounted for an increase of $20.8 million in selling, general, and administrative expenses. This increase was primarily due to our earn-out credit of $22.0 million in the prior year that did not recur in the current period. The remaining increase of $10.2 million or 3.5% was primarily due to an increase in professional fees of $10.1 million, salaries and employee benefits of $9.9 million, a loss of $6.9 million primarily due to the disposal of certain leasehold improvements related to our lease modification, increases in insurance costs of $1.7 million, data costs of $1.4 million, and travel expenses of $1.0 million, partially offset bya prior year litigation reserve expense of $19.2 million related to our former Financial Services segment, decreases in fees and membership costs of $1.2 million, andother operating costs of $0.4 million.

Previous wording

Depreciation and amortization of fixed assets were$116.4 million for thesix months ended June 30, 2024 compared to $91.1 millionfor thesix months ended June 30, 2023, anincrease of$25.3 million or 27.8%. The increase in assets placed into service primarily resulted from the timing of certain large internally developed software projects that were completed and placed into service.

Current wording

Depreciation and amortization of fixed assets were$174.5 million for thenine months ended September 30, 2024 compared to $139.2 millionfor thenine months ended September 30, 2023, anincrease of$35.3 million or 25.4%. The increase was primarily due to the timing of certain large internally developed software projects that were completed and placed into service in the prior year.

Previous wording

Amortization of intangible assets was$36.7 million for thesix months ended June 30, 2024 compared to$36.5 millionfor thesix months ended June 30, 2023, anincrease of$0.2 million or 0.5%. The increase was primarily due to the amortization of intangible assets related to our recent acquisitions of $0.7 million, partially offset by intangible assets that were fully amortized of $0.5 million.

Current wording

Amortization of intangible assets was$55.0 million for thenine months ended September 30, 2024 compared to$56.1 millionfor thenine months ended September 30, 2023, andecrease of$1.1 million or 2.0%. The decrease was primarily due to intangible assets that were fully amortized.

Previous wording

Net gain on early extinguishment of debt was$3.6 million for thethree months ended June 30, 2024 due to a cash tender offer of $400.0 million aggregate principal of our 2025 Senior Notes that was completed on June 7, 2024.

Current wording

Net gain on early extinguishment of debt was$3.6 million for thenine months ended September 30, 2024 due to a cash tender offer of $400.0 million aggregate principal of our 2025 Senior Notes that was completed on June 7, 2024.

Previous wording

Investment gain was$99.8 million for thethree months ended June 30, 2024 compared to a loss of$6.2 million for thethree months ended June 30, 2023, anincrease of $106.0 million. The increase was primarily driven bynet gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022, partially offset by the impact of foreign currencies.

Current wording

Investment gain was$102.4 million for thenine months ended September 30, 2024 compared to a loss of$9.3 million for thenine months ended September 30, 2023, anincrease of $111.7 million. The increase was primarily driven by net gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022 and the impact of foreign currencies.

Previous wording

The provision for income taxes was$141.0 million for thesix months ended June 30, 2024, compared to$136.1 million for thesix months ended June 30, 2023, anincrease of$4.9 million or 3.6%. The effective tax rate was 21.1% for thesix months ended June 30, 2024 compared to 25.4% for thesix months ended June 30, 2023. The effective tax rate for thesix months ended June 30, 2024 waslower than the effective tax rate for thesix months ended June 30, 2023 primarily due to tax charges incurred in structuring the sale of our Energy business in the prior yearas well as additional tax benefits resulting from the Company's recognition of capital gains arising from the settlement of our investment in non-public companies in the current period. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Current wording

The provision for income taxes was$206.3 million for thenine months ended September 30, 2024, compared to$198.4 million for thenine months ended September 30, 2023, anincrease of$7.9 million or 3.9%. The effective tax rate was 21.6% for thenine months ended September 30, 2024 compared to 25.3% for thenine months ended September 30, 2023. The effective tax rate for thenine months ended September 30, 2024 waslower than the effective tax rate for thenine months ended September 30, 2023 primarily due to tax charges incurred in structuring the sale of our Energy business in the prior year, as well as additional tax benefits resulting from the Company's recognition of capital gains arising from the settlement of our investment in non-public companies in the second quarter. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Previous wording

The net income margin was 37.1% for thesix months ended June 30, 2024 compared to 19.1% for thesix months ended June 30, 2023. The increase in net income margin was primarily driven bynet gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022, and the early extinguishment of debt, discussed above. The net income margin for June 30, 2023 included a loss from discontinued operations of $145.5 million, which negatively impacted our net income margin by 11.0%.

Current wording

The net income margin was 34.8% for thenine months ended September 30, 2024 compared to 22.0% for thenine months ended September 30, 2023. The increase in net income margin was primarily driven by net gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022, the early extinguishment of debt, discussed above, and a prior year litigation reserve expense related to our former Financial Services segment. The net income margin for September 30, 2023 included a loss from discontinued operations of $145.5 million, which negatively impacted our net income margin by 7.3%.

Previous wording

EBITDA was $499.3 million for thethree months ended June 30, 2024 compared to $365.1 million for thethree months ended June 30, 2023. The EBITDA margin for our consolidated results was 69.7% for thethree months ended June 30, 2024 compared to 54.1% for thethree months ended June 30, 2023.

Current wording

EBITDA was $1,273.1 million for thenine months ended September 30, 2024 compared to $1,067.2 million for thenine months ended September 30, 2023. The EBITDA margin for our consolidated results was 59.3% for thenine months ended September 30, 2024 compared to 53.3% for thenine months ended September 30, 2023.

Previous wording

As of June 30, 2024 and December 31, 2023, we had cash and cash equivalents and available-for-sale securities totaling $633.3 million and $303.9 million, respectively. We maintain our cash and cash equivalents in higher credit quality financial institutions in order to limit the amount of credit exposure. As of June 30, 2024 and December 31, 2023, a vast majority of our domestic cash and cash equivalents is with TD Bank, N.A., and JPMorgan Chase N.A. Subscriptions for our solutions are billed and generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year. Subscriptions are automatically renewed at the beginning of each calendar year. We have historically generated significant cash flows from operations. As a result of this factor, as well as the availability of funds under our Credit Facility, we expect that we will have sufficient cash to meet our working capital and capital expenditure needs and to fuel our future growth plans.

Current wording

As of September 30, 2024 and December 31, 2023, we had cash and cash equivalents and available-for-sale securities totaling $459.2 million and $303.9 million, respectively. We maintain our cash and cash equivalents in higher credit quality financial institutions in order to limit the amount of credit exposure. As of September 30, 2024 and December 31, 2023, a vast majority of our domestic cash and cash equivalents is with TD Bank, N.A., and JPMorgan Chase N.A. Subscriptions for our solutions are billed and generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year. Subscriptions are automatically renewed at the beginning of each calendar year. We have historically generated significant cash flows from operations. As a result of this factor, as well as the availability of funds under our Credit Facility, we expect that we will have sufficient cash to meet our working capital and capital expenditure needs and to fuel our future growth plans.

Previous wording

We have also historically used a portion of our cash for repurchases of our common stock from our stockholders. During thesix months ended June 30, 2024 and 2023, we repurchased$350.0 million (inclusive of$22.5 million in treasury stock not yet settled) and$2,500.0 million (inclusive of$500.0 million in treasury stock not yet settled), respectively, of our common stock. The repurchase of our common stock in the second quarter of 2024 was funded using cash from operations. For thesix months ended June 30, 2024 and 2023, we also paid dividends of$111.3 million and$98.7 million, respectively.

Current wording

We have also historically used a portion of our cash for repurchases of our common stock from our stockholders. During thenine months ended September 30, 2024 and 2023, we repurchased$750.0 million (inclusive of$60.0 million in treasury stock not yet settled) and$2,549.8 million (inclusive of$500.0 million in treasury stock then not yet settled), respectively, of our common stock. The repurchase of our common stock in the third quarter of 2024 was funded using cash from operations. For thenine months ended September 30, 2024 and 2023, we also paid dividends of$166.6 million and$147.9 million, respectively.

Previous wording

We have a $1,000.0 million Syndicated Revolving Credit Facility with Bank of America N.A., HSBC Bank USA, N.A., JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., Citibank, N.A., Morgan Stanley Bank, N.A., TD Bank, N.A., Goldman Sachs Bank USA, and the Northern Trust Company with a maturity date of April 5, 2028. Borrowing under the facility is payable at an interest rate of SOFR plus 100.0 to 162.5 basis points, depending on the public debt rating. The financial covenants require that, at the end of any fiscal quarter, we have a consolidated funded debt leverage ratio of less than 3.75 to 1.0*.* At our election, the maximum consolidated funded debt leverage ratio could be permitted to increase to 4.50 to 1.0 (no more than once) and to 4.25 to 1.0 (no more than once) in connection with the closing of a permitted acquisition. The Syndicated Credit Facility may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the Repurchase Program. As of June 30, 2023, we were in compliance with all financial and other debt covenants under the Syndicated Credit Facility. As of June 30, 2024 and December 31, 2023, the available capacity under the Syndicated Revolving Credit Facility was $995.5 million and $995.4 million, which takes into account outstanding letters of credit of $4.5 million and $4.6 million.

Current wording

We have a $1,000.0 million Syndicated Revolving Credit Facility with Bank of America N.A., HSBC Bank USA, N.A., JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., Citibank, N.A., Morgan Stanley Bank, N.A., TD Bank, N.A., Goldman Sachs Bank USA, and the Northern Trust Company with a maturity date of April 5, 2028. Borrowing under the facility is payable at an interest rate of SOFR plus 100.0 to 162.5 basis points, depending on the public debt rating. The financial covenants require that, at the end of any fiscal quarter, we have a consolidated funded debt leverage ratio of less than 3.75 to 1.0*.* At our election, the maximum consolidated funded debt leverage ratio could be permitted to increase to 4.50 to 1.0 (no more than once) and to 4.25 to 1.0 (no more than once) in connection with the closing of a permitted acquisition. The Syndicated Credit Facility may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the Repurchase Program. As of September 30, 2024, we were in compliance with all financial and other debt covenants under the Syndicated Credit Facility. As of September 30, 2024 and December 31, 2023, the available capacity under the Syndicated Revolving Credit Facility was $995.5 million and $995.4 million, which takes into account outstanding letters of credit of $4.5 million and $4.6 million, respectively.

Previous wording

Net cash provided by operating activities was $211.7 million for the three months ended June 30, 2024, compared to$192.9 million for thethree months ended June 30, 2023, an increase of$18.8 million or 9.7%. The increase in operating cash flow was due to an increase in operating profit.

Current wording

Net cash provided by operating activities was$296.2 million for thethree months ended September 30, 2024, compared to$250.1 million for thethree months ended September 30, 2023, an increase of$46.1 million or 18.4%. The increase in operating cash flow was due to an increase in operating profit.

Previous wording

Net cash provided by operating activities was$592.4 million for thesix months ended June 30, 2024, compared to$558.2 million for thesix months ended June 30, 2023, an increase of $34.2 million or 6.1%. The increase in operating cash flow was due to an increase in operating profit, partially offset by a $37.0 million payment to settle the inquiry by the Department of Justice.

Current wording

Net cash provided by operating activities was$888.6 million for thenine months ended September 30, 2024, compared to$808.3 million for thenine months ended September 30, 2023, an increase of$80.3 million or 9.9%. The increase in operating cash flow was due to an increase in operating profit, partially offset by a $37.0 million payment to settle the inquiry by the Department of Justice.

Previous wording

Net cash provided by investing activities of $56.1 million for thethree months ended June 30, 2024 wasprimarily related to proceeds received upon settlement of our retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022 of $112.1 million, partially offset by capital expenditures of$57.8 million. Net cash used in investing activities of$108.3 million for thethree months ended June 30, 2023 primarily related to capital expenditures of $58.2 million, and acquisitions and a purchase of an additional controlling interest of $46.1 million.

Current wording

Net cash used in investing activities of$52.6 million for thethree months ended September 30, 2024 wasprimarily related to capital expenditures of$55.5 million, and investments in non-public companies of $0.9 million, partially offset by an escrow release associated with acquisitions of $3.8 million. Net cash used in investing activities of$55.3 million for thethree months ended September 30, 2023 wasprimarily related to capital expenditures of $54.3 million as well as investments in nonpublic companies of $0.9 million.

Previous wording

Net cash used in investing activities of $23.8 million for thesix months ended June 30, 2024 wasprimarily related to capital expenditures of$113.0 million, and acquisitions and a purchase of an additional controlling interest totaling $23.4 million, partially offset by proceeds received upon settlement of ourretained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022 of $112.1 million. Net cash provided by investing activities of$2,858.8 million for thesix months ended June 30, 2023 was primarily related to proceeds from the sale of our Energy business of $3,066.4 million, partially offset by capital expenditures of $119.4 million, and acquisitions and a purchase of an additional controlling interest totaling $83.3 million.

Current wording

Net cash used in investing activities of$76.4 million for thenine months ended September 30, 2024 wasprimarily related to capital expenditures of$168.5 million, and acquisitions and a purchase of an additional controlling interest totaling $23.4 million, partially offset by proceeds received upon settlement of ourretained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022 of $112.1 million, and an escrow release associated with acquisitions of $3.8 million. Net cash provided by investing activities of$2,803.5 million for thenine months ended September 30, 2023 was primarily related to proceeds from the sale of our Energy business of $3,066.4 million, partially offset by capital expenditures of $173.7 million and acquisitions, including escrow funding, of $87.1 million.

Previous wording

Net cash provided by financing activities of$14.1 million for thethree months ended June 30, 2024 was primarily driven by the payment on early extinguishment of debt of $396.4 million, the funding of a $150.0 million accelerated share repurchase program, and dividends paid of $55.5 million, partially offset by proceeds from the issuance of long-term debt, net of original discount, of $590.2 million, andproceeds from stock options exercised of $35.0 million. Net cash provided by financing activities of$3.2 million for thethree months ended June 30, 2023 was primarily driven by proceeds from stock options exercised of $56.5 million, partially offset by dividends paid of $49.5 million.

Current wording

Net cash used in financing activities of$421.3 million for thethree months ended September 30, 2024 was primarily driven by the funding of a $400.0 million accelerated share repurchase program and dividends paid of $55.3 million, partially offset byproceeds from stock options exercised of $47.4 million. Net cash used in financing activities of$89.6 million for thethree months ended September 30, 2023 was primarily driven by the repurchase of common stock of $49.8 million and dividends paid of $49.2 million, partially offset by proceeds from stock options exercised of $19.4 million.

Previous wording

Net cash used in financing activities of$236.9 million for thesix months ended June 30, 2024 was primarily driven by the payment on the early extinguishment of debt of $396.4 million, the funding of $350.0 million of accelerated share repurchase programs, and dividends paid of $111.3 million, partially offset by proceeds from the issuance of long-term debt, net of original discount, of $590.2 million, andproceeds from stock options exercised of$63.2 million. Net cash used in financing activities of$3,401.8 million for thesix months ended June 30, 2023 was primarily driven by the funding of a $2,500.0 million accelerated share repurchase program, repayments of debt under our revolving credit and bilateral credit facilities of $1,390.0 million, and dividend payments of $98.7 million, partially offset by the proceeds from the issuance of our 2033 Senior Notes of $495.2 million, and proceeds from stock options exercised of $114.9 million.

Current wording

Net cash used in financing activities of$658.2 million for thenine months ended September 30, 2024 was primarily driven by the funding of $750.0 million of accelerated share repurchase programs, the payment on the early extinguishment of debt of $396.4 million, and dividends paid of $166.6 million, partially offset by proceeds from the issuance of long-term debt, net of original discount, of $590.2 million, andproceeds from stock options exercised of$110.6 million. Net cash used in financing activities of$3,491.4 million for thenine months ended September 30, 2023 was primarily driven by the funding of $2,549.8 million in share repurchases, repayments of debt under our revolving credit and bilateral credit facilities of $1,265.0 million, and dividend payments of $147.9 million, partially offset by the proceeds from the issuance of our 2033 Senior Notes of $495.2 million, and proceeds from stock options exercised of $134.3 million.