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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ___________________________________________________
FORM 10-K
  ___________________________________________________
x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended November 30, 2015

OR
o
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 001-32511
 ___________________________________________________
IHS INC.
(Exact name of registrant as specified in its charter) 
 ___________________________________________________
Delaware
 
13-3769440
(State or Other Jurisdiction of
Incorporation or Organization)
 
(IRS Employer
Identification No.)
15 Inverness Way East
Englewood, CO 80112
(Address of Principal Executive Offices)
(303) 790-0600
(Registrant’s telephone number, including area code)
 ___________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share
 
New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:
None.
___________________________________________________ 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. x  Yes    o  No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. o  Yes    x  No
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 (§232.405 of this chapter) 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



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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.     x
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
 
x
Accelerated filer
 
o
 
 
 
 
Non-accelerated filer
 
o  (Do not check if a smaller reporting company)
Smaller Reporting Company
 
o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    o  Yes    x  No
The aggregate market value of the voting and non-voting common equity held by non-affiliates, based upon the closing price for the Class A Common Stock as reported on the New York Stock Exchange composite tape on the last business day of the registrant's most recently completed second fiscal quarter, was approximately $5.6 billion. All executive officers, directors, and holders of five percent or more of the outstanding Class A Common Stock of the registrant have been deemed, solely for purposes of the foregoing calculation, to be "affiliates" of the registrant.
As of December 31, 2015, there were 67,143,491 shares of our Class A Common Stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
The information required by Part III of the Form 10-K, to the extent not set forth herein, is incorporated herein by reference from the registrant's definitive proxy statement on Schedule 14A for the Annual Meeting of Stockholders to be held on April 6, 2016, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the close of the registrant's fiscal year.


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TABLE OF CONTENTS
 
 
  
 
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Cautionary Note Regarding Forward-Looking Statements

This Annual Report on Form 10-K contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “aim,” “strive,” “believe,” “project,” “predict,” “estimate,” “expect,” “continue,” “strategy,” “future,” “likely,” “may,” “might,” “should,” “will,” the negative of these terms, and similar references to future periods. 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, including acquisitions and dispositions, anticipated benefits from strategic actions, and our success in integrating acquired businesses; anticipated levels of capital expenditures 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 our 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. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. 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 manage system failures, capacity constraints, and cyber risks; our ability to successfully manage risks associated with changes in demand for our products and services as well as changes in our targeted industries; our ability to develop new platforms to deliver our products and services, pricing, and other competitive pressures, and changes in laws and regulations governing our business; 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; our ability to successfully identify and integrate acquisitions into our existing businesses and manage risks associated therewith; our ability to satisfy our debt obligations and our other ongoing business obligations; and the other factors described under the caption “Risk Factors” in this Annual Report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission (SEC).

Any forward-looking statement made by us in this Annual Report on Form 10-K is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
 
Website and Social Media Disclosure
 
We use our website (www.ihs.com) and corporate Twitter account (@IHS) as channels of distribution of company information. The information we post through these channels may be deemed material; therefore, investors should monitor these channels in addition to our press releases, SEC filings, and public conference calls and webcasts. 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 Annual Report on Form 10-K.

Fiscal Year End

Our fiscal year ends on November 30 of each year. Unless otherwise indicated, references in this Annual Report on Form 10-K to an individual year means the fiscal year ended November 30. For example, “2015” refers to the fiscal year ended November 30, 2015.




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PART I

Item 1. Business

Our Vision

Our vision is to be the Source for Critical Information and Insight that powers growth and value for our customers. We intend to be the source that customers trust, rely upon, and come to first when they need to better understand the present and anticipate the future. Our mission is to translate the value of our global information, expertise, and knowledge to enable customer success and create customer delight on a daily basis.

Our Business

We are a leading source of information, insight, and analytics in critical areas that shape today’s business landscape. Businesses and governments around the globe rely on our comprehensive content, expert independent analysis, and flexible delivery methods. Our aim is to embed our content and solutions within the entire spectrum of our customers’ organizations, enabling executive level capital deployment strategies and supporting decision-making activities of front-line employees managing complex core daily operations. We serve customers in a wide variety of capital-intensive industries and workflows.

As further described below, our core competency is sourcing data and transforming it into critical information and insight that businesses, governments, and others use to make high-impact decisions with confidence. We are a sought-after resource for those who require and demand the most accurate and expertly analyzed information available. We are dedicated to providing the information and expert analysis our customers need to make critical decisions that drive growth and value for their operations.

By integrating and connecting our information, analytics, and research and analysis with proprietary and widely used decision-support technology on scalable platforms, we produce critical information and analytical solutions designed to meet our customers’ needs. Our product development teams have also created proprietary Web services and application interfaces that enhance access to our information. These services allow our customers to integrate our information with other data, business processes, and applications (such as computer-aided design, enterprise resource planning (ERP), supply chain management, and product data/lifecycle management).

We have been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005.

Our Objectives

To achieve our vision of being the Source for Critical Information and Insight, we have established five inter-dependent objectives upon which we focus our efforts, as described below. We externally benchmark our progress annually against these five objectives. To measure customer satisfaction (which we refer to as Customer Delight) and colleague success, we use third-party surveys and develop goals based on those metrics. For 2016, our corporate objectives are:

Improve Customer Delight;
Foster a culture that enables colleague success;
Deliver profitable top- and bottom-line growth;
Provide an opportunity for stockholder success relative to our peer group; and
Improve corporate sustainability and responsibility.

Our Strategy

Our strategy is to bring together information, research, and analytics, and to deliver integrated solutions to customers in separate but interconnected industries. At the end of 2015, we transitioned to a new operating structure to better align and focus our operations. We believe this structure will simplify our operating model and improve our operational performance by driving greater speed, clarity, and accountability. Specifically, we intend to do the following:

Align organizational structure. We have transitioned to an industry- and workflow-focused organizational structure consistent with our new segments, as further described below. We expect that this transition will allow us to operate with greater efficiency by managing all commercial operations, including sales, marketing, and product management and development by segment. We anticipate that this transition will also increase the speed of decision-making, drive consistency,

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and remove complexity. As part of this effort, we are undertaking a portfolio evaluation to determine strategic fit, long-term growth potential, and profitability within our business model. We have determined that our Operational Excellence and Risk Management (OE&RM) and GlobalSpec product offerings are no longer aligned with our strategic goals, and we have therefore decided to divest these product groups. We will continue to evaluate the long-term potential and strategic fit of all of our assets.

Optimize product platforms. Our investment priorities for product platforms are primarily in energy, transportation, and product design, and we intend to continue to invest in analytics across the business to increase our customer value proposition and leverage our existing information and delivery platforms.

Simplify capital allocation. We are simplifying our mergers and acquisitions strategy to focus on fewer, larger deals, which will allow us to increase our productivity and integration efforts. In the absence of larger scaled acquisition opportunities, we plan to deploy capital towards our $500 million share buyback program, which we believe achieves the best balance between scaling through acquisitions and returning capital to shareholders.

Our Global Organizational Structure

To serve our customers, we are organized into the following three industry- and workflow-focused segments:

Resources, which includes our Energy and Chemicals product offerings;
Transportation, which includes our Automotive; Maritime & Trade; and Aerospace, Defense & Security product offerings; and
Consolidated Markets & Solutions, which includes our Product Design; Technology, Media & Telecom; and Economics & Country Risk product offerings.

We expect that this organizational structure will make it easier for our customers to do business with us by providing a cohesive, consistent, and effective product, sales, and marketing approach by industry and workflow.

Our Core Competency: Transforming Data into Critical Information and Insight

Our customers benefit from a concentration of intellectual wealth and thought leadership throughout a variety of industries. We believe that our global team of information and industry experts, research analysts, and economists provide our customers with leading strategic information and research.

We convert raw data into critical information through a series of transformational steps that reduce the uncertainty that is inherent in unrefined data. At each step along the way, we work to ensure quality of the data transformation across four dimensions, which we call the "4 Cs":

Correctness
  
Validate data accuracy through comparison to external reference points.
Currency
  
Deliver new and updated content in a timely manner.
Completeness
  
Provide the right data attributes and analysis to ensure that customers have all of the necessary information to make critical decisions.
Consistency
  
Standardize identifiers and content across databases and products to be sure customers receive consistent information regardless of product platform.


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We have standardized the data transformation process into seven steps. The order of the steps and the need to perform quality checks throughout the process is important because the quality of each step is dependent on the quality of all of the preceding steps. The seven-step process we follow in transforming data into critical information and insight involves the following:
Source data
  
We locate hundreds of possible data sources and then evaluate them for correctness, currency, and completeness.
Capture
  
We collect documents and digital feeds, harvest content from publicly available sources, visit sites for updates, etc. Once the data is aggregated, we validate and normalize the data before loading it into our proprietary databases.
Match
  
We link disparate instances of the same attribute. This knowledge-based activity ensures consistency over time and across sources, eliminating unlinked information about a single well, a single part, a single chemical, etc.
Identify
  
We attach an IHS identifier to matched information to ensure that the matched information stays linked. We also confirm that industry standard identifiers, which often vary over time, are accurate and appropriately matched to the IHS identifier.
Relate
  
We identify logical relationships and associations between entities and link those relationships through identification numbers. Examples include corporate parent and subsidiary relationships, leases and associated wells, international standards, and national standards. This step supplies the context for analysis.
Analyze
  
We use our industry experts to review, analyze, and add context and editorial commentary to the data to transform it into critical information and expert analysis for our customers.
Model and Forecast
  
We use our critical information and expert analysis to produce additional insight by providing unbiased research and intelligence with proprietary models and forecasting tools. Our experts use their extensive experience to build models and forecasting tools for our customers' use.
 
Using this seven-step process and the "4 Cs" of quality, we seek to transform data into critical information and insight that is both useful to our customers and available where and when they need it. This process also provides the foundation for our integrated solutions that combine our products and services to create differentiated solutions for the customers in our target industries.

Our Customers

We have a diverse customer base, ranging from large entities such as multinational companies and governments to small companies and technical professionals that span many industries, geographies, and end markets. Our customer base includes approximately 75 percent of the Fortune Global 500. Our largest 1,000 customers account for almost two-thirds of our revenue, yet no single customer represents more than 10 percent of our total revenue.

Our customers operate in global interconnected capital-intensive industries, and we are continuing to build on our existing scale to integrate our comprehensive content, expertise, tools, technology, and research and analysis to produce a differentiated solution set that makes us an important part of many of our customers’ core workflows. The result is a primarily subscription-based business, which tends to generate recurring revenue and cash flow for us. Subscription agreements generally represent approximately 80 percent of our total revenue, and are typically annual and non-cancellable for the term of the subscription and may contain provisions for minimum monthly payments. Our subscription revenue is generally stable and predictable, and we have long-term relationships with many of our customers.

We develop our products and services based on customer needs in the target industries we serve and in the workflows that our customers use. By connecting our comprehensive content and expertise to our customers' workflows across our target industries, we strive to create value for our customers by uniquely addressing capital and operating decisions across our customers' entire supply chains and global markets. We have organized our business to address the following key industries and workflows:


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Resources

Energy and Chemicals. Approximately 90 percent of Resources revenue comes from our Energy offerings, with the remaining 10 percent coming from Chemicals. These industry sectors include specific industries such as Oil & Gas, Coal, Power & Utilities, and Chemicals. Our content and analytics provide worldwide information and analysis on millions of wells, pipeline miles, and regulatory and mineral rights documents, as well as global information on oil and gas fields, basins, and operating assets and thousands of power and industrial plants. Our content and analytics also provide data for manufacturing processes, as well as capital expenditure, cost, price, production, trade, demand, and capacity industry analysis and forecasts. We provide a number of service offerings for these industries, including training, strategy development, and project development offerings, as well as hosting well-recognized annual conferences related to these industries.

Transportation

Our Transportation segment is comprised of our Automotive offerings, which represent about 75 percent of the segment's revenue, and our Maritime & Trade and Aerospace, Defense & Security offerings, which make up the balance of the segment's revenue.

Automotive. We serve the full automotive value chain with a focus on original equipment manufacturers (OEMs), parts suppliers, and dealers. We provide authoritative analysis and forecasts of sales and production for light vehicles, medium and heavy commercial vehicles, powertrain, components, and technology systems across all major markets. We also provide a wide range of performance measurement tools and marketing solutions for car makers, dealers, and agencies. We are developing new solutions that address needs across the value chain, including strategy and planning, marketing, sales, dealer services, and after sales.

Maritime & Trade (M&T). Our M&T content and analytics provide comprehensive data on close to 200,000 ships over 100 gross tons, as well as monthly import and export statistics on more than 80 countries and tracking and forecasting more than 90 percent of international trade by value.

Aerospace, Defense & Security (AD&S). Our AD&S content and analytics provide specifications for thousands of military vehicles, naval vessels, and aircraft types. Our budget forecasts cover more than 95 percent of global defense spending, and we have analyzed more than 150,000 terrorism-related events, with more analyzed and added each day.

Consolidated Markets & Solutions (CMS)

Our CMS segment is comprised of our Product Design offerings, which represent a little more than 50 percent of the segment's revenue, and our Technology, Media & Telecom and Economics and Country Risk offerings, which make up the balance of the segment's revenue.

Product Design. Our Product Design solutions provide technical professionals with the information and insight required to more effectively design products, complete engineering projects, solve technical problems, and address complex supply chain challenges. Our Product Design offerings include content and analysis on millions of engineering and technical standards, codes, specifications, handbooks, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines for innovation, productivity, and quality.

Technology, Media & Telecom (TMT). Our TMT solutions service the entire technology value chain, including components and devices, telecom analytics, and end market intelligence. We deliver comprehensive insight and tools for managing technology parts, leveraging our component database of more than 450 million parts. Our TMT solutions enable customers to optimize their supplier and customer engagement strategy and differentiate their product portfolio from the competition through market share, supply chain, and technology adoption analyses and forecasts on a geographic, industry, and company level.

Economics and Country Risk (ECR). We provide strategic and commercial professionals with information, research, and tools that support a wide range of commercial decisions and processes, including capital investments, country-entry strategies, acquisitions, annual strategic planning processes, and monthly/quarterly production and sales forecasts. Our ECR capabilities translate high-level macroeconomic, political, and security drivers into industry-level demand forecasts and risk factors.


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Sales and Marketing

Our sales teams are located throughout the world and are organized within their respective business lines to align with our customers by industry and workflow. We also conduct regular customer surveys to understand both current customer satisfaction levels and potential opportunities for improvement, which we then use to provide additional direction to sales and marketing about key areas of focus.

Our marketing organization defines our marketing strategy and drives operational execution. A primary focus for marketing strategy is to empower IHS brand awareness, revenue acceleration, and market leadership across our key industries and workflows for all products and services globally. Functionally, this includes corporate marketing, product marketing, field marketing, and e-commerce.

Competition

We believe the principal competitive factors in our business include the following:

Depth, breadth, timeliness, and accuracy of information provided;
Quality of decision-support tools and services;
Quality and relevance of our analysis and insight;
Ease of use;
Customer support; and
Value for price.
 
We believe that we compete favorably on each of these factors. Although we face competition in specific industries and with respect to specific offerings, we do not believe that we have a direct competitor across all of our workflows and industry solutions due to the depth and breadth of our offerings. Competitors within specific industries or with respect to specific offerings are described below.

Resources. Our Energy and Chemical offerings compete primarily with offerings from Verisk, Drilling Information, GeoScout, PIRA Energy Group, Reed Elsevier, and Nexant.

Transportation. In the Automotive market, we primarily compete with offerings from LMC Automotive, Urban Science, and Experian and, with respect to vehicle history reports, principally with Experian and various other providers approved by the National Motor Vehicle Title Information System of the United States Department of Justice. In Maritime & Trade markets, we primarily compete with offerings from Informa plc. In AD&S markets, we primarily compete with offerings from Forecast International and TEGNA.

CMS. Our Product Design offerings primarily compete with offerings of SAI Global, Thomson Reuters, Thomas Publishing, and the standards developing organizations (SDOs), among others. Our electronics design offerings primarily compete with offerings from Arrow Electronics and parts manufacturers and distributors. Our TMT offerings compete principally with offerings from Gartner, and our ECR offerings compete primarily with offerings from the Economist Group and Oxford Economics.
  
Government Contracts

We sell our products to various government agencies and entities. No individual contract is significant to our business. Although some of our government contracts are subject to terms that would allow renegotiation of profits or termination at the election of the government, we believe that no renegotiation or termination of any individual contract or subcontract at the election of the government would have a material adverse effect on our financial results.

Intellectual Property

We rely heavily on intellectual property, including the intellectual property we own and license. We regard our trademarks, copyrights, licenses, and other intellectual property as valuable assets and use intellectual property laws, as well as license and confidentiality agreements with our employees, customers, channel partners, and others, to protect our rights. In addition, we exercise reasonable measures to protect our intellectual property rights and enforce these rights when we become aware of any potential or actual violation or misuse.

Intellectual property licensed from third parties, including SDOs, government agencies, and manufacturers, is a

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component of our offerings and, in many cases, cannot be independently replaced or recreated by us or others. We have longstanding relationships with most of the third parties from whom we license information. Almost all of the licenses that we rely upon are nonexclusive and expire within one to two years, unless renewed.

We maintain registered trademarks in jurisdictions around the world. In addition, we have obtained patents and applied for patents in the United States, primarily related to our software portfolio, including our IHS Kingdom and IHS Goldfire products. For more information relating to our intellectual property rights, see "Risk Factors - We may not be able to protect intellectual property rights."

Employees

As of November 30, 2015, we had approximately 8,600 employees located in 32 countries around the world.

Seasonality

Our business has seasonal aspects. Our fourth quarter typically generates our highest quarterly levels of revenue and profit. Conversely, our first quarter generally has our lowest quarterly levels of revenue and profit. We also experience event-driven seasonality in our business; for instance, IHS Energy CERAWeek, an annual energy executive gathering, was held during our second quarter in 2015 and will be held during our first quarter in 2016. 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 2015.

Financial Information about Segments and Geographic Area

See "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 19" in Part II of this Form 10-K for information with respect to each segment's revenues, operating income, and total assets and for information with respect to our revenues and long-lived assets for the U.S., individual material foreign countries, and the rest of the world in aggregate. See also "Risk Factors - Our international operations are subject to exchange rate fluctuations and other risks relating to worldwide operations."

Available Information

Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports are available on our website (www.ihs.com) as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. We have also posted our code of ethics, which we refer to as our Business Code of Conduct, on our website. Copies of each of these documents are also available, without charge, from IHS Investor Relations and Corporate Communications, 15 Inverness Way East, Englewood, CO 80112.


Item 1A. Risk Factors

In addition to the other information provided in this Form 10-K, you should carefully consider the risks described in this section. The risks described below are not the only risks that could adversely affect our business; other risks currently deemed immaterial or additional risks not currently known to us could also adversely affect us. These and other factors could have a material adverse effect on the value of your investment in our securities, meaning that you could lose all or part of your investment.

Note that this section includes forward-looking statements and future expectations as of the date of this Form 10-K. This discussion of Risk Factors should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes in Part II of this Form 10-K.

Achieving our growth objectives may prove unsuccessful.

We seek to achieve our growth objectives by enhancing our offerings to meet the needs of our customers through organic development, including by delivering integrated workflow platforms, cross-selling our products across our existing customer base and acquiring new customers, entering into strategic partnerships, and acquisitions. If we are unable to successfully execute on our strategies to achieve our growth objectives, our growth rates could be adversely affected. An additional factor that may adversely affect our growth rates is continued global economic uncertainty, particularly in our energy end market. Our

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Resources segment in particular may continue to be adversely affected by industry dynamics, including decisions on the part of our customers to defer capital spending in uncertain economic environments.

If we are unable to consistently renew and enter into new subscriptions for our offerings, our results could weaken.

The majority of our revenue is based on subscriptions to our offerings. In 2015, we derived approximately 81 percent of our revenues from subscriptions, which revenue we recognize ratably over the subscription terms. Our operating results depend on our ability to achieve and sustain high renewal rates on our existing subscription base and to enter into new subscription arrangements at acceptable prices and other commercially acceptable terms. Failure to meet one or more of these subscription objectives could have a material adverse effect on our business, financial condition, and operating results.

The loss of, or the inability to attract and retain, key personnel could impair our future success.

Our future success depends to a large extent on the continued service of our employees, including our experts in research and analysis and other areas, as well as colleagues in sales, marketing, product development, critical operational roles, and management, including our executive officers. We must maintain our ability to attract, motivate, and retain highly qualified colleagues in order to support our customers and achieve business results. The loss of the services of key personnel and our inability to recruit effective replacements or to otherwise attract, motivate, or retain highly qualified personnel could have a material adverse effect on our business, financial condition, and operating results.

We could experience system failures or capacity constraints that could negatively impact our business.

Our ability to provide reliable service largely depends on the efficient and uninterrupted operation of complex systems, relying on people, processes, and technology to function effectively. Some elements of these systems have been outsourced to third-party providers. Some of our systems have been consolidated for the purpose of enhancing scalability and efficiency, which increases our dependency on a smaller number of systems. Any significant interruption to, failure of, or security breaches affecting, our systems could result in significant expense to repair, replace or remediate systems, equipment or facilities, a loss of customers, and harm to our business and reputation. Interruption, system failures or security breaches could result from a wide variety of causes, including the possibility of failures at third-party data centers, disruptions to the Internet, malicious attacks or cyber incidents such as unauthorized access, loss or destruction of data (including confidential and/or personal customer information), account takeovers, computer viruses or other malicious code, and the loss or failure of systems over which we have no control. The failure of our systems, or the loss of data, could result in legal claims or proceedings, disruption to our operations, damage to our reputation and remediation costs, which could individually or in the aggregate adversely affect our business and our insurance may not be adequate to compensate us for all losses, failures, or breaches.

Fraudulent or unpermitted data access and other security or privacy breaches may negatively impact our business and harm our reputation.

Security breaches in our facilities, computer networks, and databases may cause harm to our business and reputation and result in a loss of customers. Our systems may be vulnerable to physical break-ins, computer viruses, attacks by hackers and similar disruptive problems. Third-party contractors also may experience security breaches involving the storage and transmission of proprietary information. If users gain improper access to our databases, they may be able to steal, publish, delete or modify information included in our products or confidential or sensitive customer information that is stored or transmitted on our networks. Any misappropriation and/or misuse of our information could result in us, among other things, being in breach of certain data protection and related legislation, including regulations relating to the privacy of personal or payment card information.

A security or privacy breach may affect us in the following ways:

deterring customers from using our solutions;
deterring data suppliers from supplying data to us;
harming our reputation;
exposing us to liability;
increasing expenses to correct problems caused by the breach;
affecting our ability to meet customers’ expectations; or
causing inquiry from governmental authorities.

Incidents in which customer data has been fraudulently or improperly acquired or viewed, or any other security or privacy breaches, may occur and could go undetected. We have experienced cybersecurity attacks, as have many of our customers and

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suppliers. While prior cybersecurity attacks have not had a material adverse effect on our financial results, we have taken and are taking reasonable steps to prevent future events, including implementation of system security measures, information back-up and disaster recovery processes. However, these steps may not be effective and there can be no assurance that any such steps can be effective against all possible risks.

If we are unable to successfully identify acquisitions or we experience integration or other risks resulting from our acquisitions, our financial results may be adversely affected.

As we continue pursuing selective acquisitions to support our business and growth strategy, we seek to be a disciplined acquirer, and there can be no assurance that we will be able to identify suitable candidates for successful acquisition at acceptable prices. In addition, our ability to achieve the expected returns and synergies from our past and future acquisitions and alliances depends in part upon our ability to effectively integrate the offerings, technology, sales, administrative functions, and personnel of these businesses into our business. We cannot assure you that we will be successful in integrating acquired businesses or that our acquired businesses will perform at the levels we anticipate. In addition, our past and future acquisitions may subject us to unanticipated risks or liabilities or disrupt our operations.

We depend on content obtained externally to support certain of our offerings, and the inability to continue to obtain access could prove harmful to our business.

We obtain data from a wide variety of external sources that we transform into critical information and insight and use to create integrated solutions for our customers. Certain of our offerings include content that is either purchased or licensed from third parties. In particular, our industry standards offerings that are part of our Product Design workflow rely on information licensed from SDOs. Offerings that rely upon SDO information accounted for less than 15 percent of our total revenue in 2015. We believe that the content licensed from many of these third parties, including the SDOs, cannot be obtained from alternate sources on favorable terms, if at all. Our license agreements with these third parties are generally nonexclusive and many are terminable on less than one year's notice. In addition, many of these third parties, including the SDOs, compete with one another and with us. If we lose access to a significant number of data sources and cannot replace the data through alternative sources or we are unable to obtain information licensed to us at cost-effective prices, specific customer solutions may be impacted and it could adversely affect the quality of our offerings and our business, financial condition, and operating results.

We may not be able to protect intellectual property rights.

We rely on copyright laws and nondisclosure, license, and confidentiality arrangements to protect our proprietary rights as well as the intellectual property rights of third parties whose content we license. However, we cannot assure you that the steps we have taken to protect our intellectual property rights, and the rights of those from whom we license intellectual property, are adequate to prevent unauthorized use, misappropriation, or theft of our intellectual property. We may also not be able to detect unauthorized uses or take timely and effective steps to remedy unauthorized conduct. In particular, a portion of our revenues are derived from jurisdictions where adequately protecting intellectual property rights may prove more challenging or impossible. To prevent or respond to unauthorized uses of our intellectual property, we might be required to engage in costly and time-consuming litigation and we may not ultimately prevail.

We may be exposed to litigation related to content we make available to customers and we may face legal liability or damage to our reputation if our customers are not satisfied with our offerings or if our offerings are misused.

Our business relies on licensing and delivering intellectual property to our customers and obtaining intellectual property from our suppliers. Accordingly, we may face potential liability for, among other things, breach of contract, negligence, and copyright and trademark infringement. Even litigation or infringement claims that lack merit may expose us to material expense or reputational damage. Damage to our reputation for any reason could adversely affect our ability to attract and retain customers, employees, and information suppliers. In addition, if the information in our offerings is incorrect for any reason, or if it is misused or used inappropriately, we could be subject to reputational damage or litigation that could exceed the value of any insurance coverage and adversely affect our business.

We rely on independent contractors and third parties whose actions could have a material adverse effect on our business.

We use independent contractors to help us obtain certain information. In addition, we rely on third-party dealers to sell our offerings in locations where we do not maintain a sales office or sales teams. We are limited in our ability to monitor and direct the activities of our independent contractors, but if any actions or business practices of these individuals or entities violate our policies or procedures or are otherwise deemed inappropriate or illegal, we could be subject to litigation, regulatory

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sanctions, or reputational damage, any of which could have a material adverse effect on our business.

As part of our strategic business model, we outsource certain operations and engage independent contractors to perform work in various locations around the world. For example, we outsource certain data hosting functions, as well as certain functions involving our data transformation process, to business partners who we believe offer us deep expertise in these areas, as well as scalability and cost effective services. By entering into these independent contractor arrangements and relying on them for critical business functions, we face risks that one or more independent contractors may unexpectedly cease operations, that they may perform work that deviates from our standards, that events in a given region may disrupt the independent contractor's operations, or that we may not be able to adequately protect our intellectual property. If these or other unforeseen risks were to occur, they could adversely affect our business.

We operate in competitive markets, which may adversely affect our market share and financial results.

While we do not believe that we have a direct competitor across all of our workflows and industry solutions, we face competition in specific industries and with respect to specific offerings. We may also face competition from organizations and businesses that have not traditionally competed with us but that could adapt their products and services or utilize significant financial and information-gathering resources, recognized brands, or technological expertise to begin competing with us. We believe that competitors are continuously enhancing their products and services, developing new products and services, and investing in technology to better serve the needs of their existing customers and to attract new customers. Increased competition could require us to make additional capital investments. Some of our competitors may also choose to sell products competitive with ours at lower prices, which may require us to reduce the prices of our offerings. An increase in our capital investments or price reductions by our competitors could negatively impact our margins and results of operations.

Some of the critical information we use in our offerings is publicly available in raw form at little or no cost.

The Internet, widespread availability of sophisticated search engines, and pervasive wireless data delivery have simplified the process of locating, gathering, and disseminating data, potentially diminishing the perceived value of our offerings. While we believe our offerings are distinguished by such factors as currency, accuracy and completeness, and our analysis and other added value, if users choose to obtain the information they need from public or other sources, our business, financial condition, and results of operations could be adversely affected.

Our brand and reputation are key assets and competitive advantages of our company and our business may be affected by how we are perceived in the marketplace.

Our ability to attract and retain customers is affected by external perceptions of our brand and reputation. Reputational damage from negative perceptions or publicity could damage our reputation with customers, prospects, and the public generally. Although we monitor developments for areas of potential risk to our reputation and brand, negative perceptions or publicity could have a material adverse effect on our business and financial results.

Changes in the legislative, regulatory, and commercial environments in which we operate may adversely impact our ability to collect, compile, use, and publish data and may impact our financial results.

Certain types of information we collect, compile, use, and publish, including offerings in our IHS Automotive and CARFAX businesses, are subject to regulation by governmental authorities in jurisdictions in which we operate. In addition, there is increasing concern among certain privacy advocates and government regulators regarding marketing and privacy matters, particularly as they relate to individual privacy interests. These concerns may result in new or amended laws and regulations. Future laws and regulations with respect to the collection, compilation, use, and publication of information and consumer privacy could result in limitations on our operations, increased compliance or litigation expense, adverse publicity, or loss of revenue, which could have a material adverse effect on our business, financial condition, and operating results. It is also possible that we could be prohibited from collecting or disseminating certain types of data, which could affect our ability to meet our customers’ needs.

Our international operations are subject to exchange rate fluctuations and other risks relating to worldwide operations.

We operate in many countries around the world and a significant part of our revenue comes from international sales. In 2015, we generated approximately 40 percent of our revenues from sales outside the United States. Approximately 20 percent of our revenue is transacted in currencies other than the U.S. dollar. We earn revenues, pay expenses, own assets, and incur liabilities in countries using currencies other than the U.S. dollar, including the British Pound, the Canadian Dollar, and the Euro. Because our consolidated financial statements are presented in U.S. dollars, we must translate revenues, income,

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expenses, and the value of assets and liabilities into U.S. dollars at exchange rates in effect during or at the end of each reporting period. We may use derivative financial instruments to reduce our net exposure to currency exchange rate fluctuations. Nevertheless, increases or decreases in the value of the U.S. dollar against other major currencies can materially affect our net operating revenues, operating income, and the value of balance sheet items denominated in foreign currencies.

Operating in many jurisdictions around the world, we may be affected by: changes in tax rates and tax laws or their interpretation, including changes related to tax holidays or tax incentives; trade protection laws, policies and measures, and other regulatory requirements affecting trade and investment; unexpected changes in regulatory requirements; social, political, labor, or economic conditions in a specific country or region; and difficulties in staffing and managing local operations. We must also manage the uncertainties of obtaining data and creating solutions that are relevant to particular geographic markets; differing levels of intellectual property protection in various jurisdictions; and potential adverse tax consequences on the repatriation of funds and from taxation reform affecting multinational companies. In addition, as we operate our business around the world, we must manage the potential conflicts between locally accepted business practices in any given jurisdiction and our obligations to comply with laws and regulations, including anti-corruption regulations applicable to us, such as the U.S. Foreign Corrupt Practices Act and the UK Bribery Act. We have developed and instituted a corporate compliance program which includes, among other things, employee training and the creation of appropriate policies defining employee behavior that mandate adherence to laws. While we implement policies and procedures intended to promote and facilitate compliance with all applicable laws, our employees, contractors, and agents, as well as those independent companies to which we outsource certain business operations, may take actions in violation of our policies. Any such violation, even if prohibited by our policies, could have an adverse effect on our business and reputation.

Our inability to manage some or all of these risks of operating a global business could have a material adverse effect on our business, financial condition, and operating results.

Our business performance might not be sufficient for us to meet the full-year financial guidance that we provide publicly.

We provide full-year financial guidance to the public based upon our assumptions regarding our expected financial performance. For example, we provide assumptions regarding our ability to grow revenue and to achieve our profitability targets. While we believe that our annual financial guidance provides investors and analysts with insight to our view of the company's future performance, such financial guidance is based on assumptions that may not always prove to be accurate and may vary from actual results. If we fail to meet the full-year financial guidance that we provide, or if we find it necessary to revise such guidance during the year, the market value of our common stock could be adversely affected.

The price of our common stock may be volatile and may be affected by market conditions beyond our control.

Our share price is likely to fluctuate in the future because of the volatility of the stock market in general and a variety of factors, many of which are beyond our control. Market fluctuations could result in volatility in the price of shares of our common stock, one possible outcome of which could be a decline in the value of your investment. In addition, if our operating results fail to meet the expectations of stock analysts or investors, or if we are perceived by the market to suffer material business or reputational damage, we may experience a significant decline in the trading price of our common stock.

Our indebtedness could adversely affect our business, financial condition, and results of operations.

Our indebtedness could have significant consequences on our future operations, including:

making it more difficult for us to satisfy our debt obligations and our other ongoing business obligations, which may result in defaults;
events of default if we fail to comply with the financial and other covenants contained in the agreements governing our debt instruments, which could result in all of our debt becoming immediately due and payable or require us to negotiate an amendment to financial or other covenants that could cause us to incur additional fees and expenses;
sensitivity to interest rate increases on our variable rate outstanding indebtedness, which could cause our debt service obligations to increase significantly;
reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions and other general corporate purposes, and limiting our ability to obtain additional financing for these purposes;
limiting our flexibility in planning for, or reacting to, and increasing our vulnerability to, changes in our business, the industries in which we operate, and the overall economy;
placing us at a competitive disadvantage compared to any of our competitors that have less debt or are less leveraged; and
increasing our vulnerability to the impact of adverse economic and industry conditions.

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Our ability to meet our payment and other obligations under our debt instruments depends on our ability to generate significant cash flow in the future. This, to some extent, is subject to general economic, financial, competitive, legislative and regulatory factors as well as other factors that are beyond our control. We cannot assure you that our business will generate cash flow from operations, or that future borrowings will be available to us under our existing or any future credit facilities or otherwise, in an amount sufficient to enable us to meet our debt obligations and to fund other liquidity needs. We may incur substantial additional indebtedness, including secured indebtedness, for many reasons, including to fund acquisitions. If we add additional debt or other liabilities, the related risks that we face could intensify.


Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

Our Facilities

Our colleagues work in offices at 126 locations around the world, comprised of 72 offices in the Americas (61 in the United States), 31 offices in Europe, the Middle East and Africa (EMEA), and 23 offices in the Asia Pacific region (APAC). We own the buildings at three of our facilities, including our headquarters in Englewood, Colorado, and two other office locations. All of our other facilities are leased with terms ranging from month-to-month at several locations to an expiration date in 2027 for one of our facilities. We believe that our properties, taken as a whole, are in good operating condition, are suitable and adequate for our current business operations, and that additional or alternative space will be available on commercially reasonable terms for future use and expansion.

Item 3. Legal Proceedings

See "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 15" in Part II of this Form 10-K for information about legal proceedings.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our Class A common stock is quoted on the New York Stock Exchange under the symbol “IHS.” The following table sets forth for the indicated periods the high and low sales prices per share for our Class A common stock on the New York Stock Exchange:
Fiscal Year 2015 Quarters Ended:
 
High
 
Low
February 28, 2015
 
$
125.71

 
$
106.03

May 31, 2015
 
128.15

 
107.00

August 31, 2015
 
135.17

 
110.13

November 30, 2015
 
123.55

 
104.65

 
 
 
 
 
Fiscal Year 2014 Quarters Ended:
 
High
 
Low
February 28, 2014
 
$
123.95

 
$
110.44

May 31, 2014
 
126.83

 
116.76

August 31, 2014
 
143.49

 
124.62

November 30, 2014
 
143.92

 
118.41



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We have been advised by our transfer agent, American Stock Transfer, that we had 12 holders of record of our Class A Common Stock as of December 31, 2015. Based on reports of security position listings and the number of proxies requested by brokers in conjunction with the prior year’s annual meeting of stockholders, we believe we have approximately 44,000 beneficial holders of our Class A Common Stock.

Our authorized capital stock consists of 160,000,000 shares of Class A common stock. The holders of our Class A common stock are entitled to one vote per share.

Dividend Policy

We have not previously paid a dividend, and we do not anticipate paying any dividends in the foreseeable future.

Issuer Purchases of Equity Securities

The following table provides detail about our share repurchases during the three months ended November 30, 2015. See "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 16" in Part II of this Form 10-K for information regarding our stock repurchase programs.

 
Total Number of Shares
Purchased
 
Average
Price Paid
per Share
 
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
 
Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in thousands)
September 1 - September 30, 2015:
 
 
 
 
 
 
 
Share repurchase programs (1)
149,679

 
$
116.91

 
149,679

 
$
473,791

Employee transactions (2)
489

 
$
116.96

 
N/A

 
N/A

October 1 - October 31, 2015:
 
 
 
 
 
 
 
Share repurchase programs (1)
345,700

 
$
118.18

 
345,700

 
$
431,229

Employee transactions (2)
14,646

 
$
116.49

 
N/A

 
N/A

November 1 - November 30, 2015:
 
 
 
 
 
 
 
Share repurchase programs (1)
298,378

 
$
120.58

 
298,378

 
$
389,297

Employee transactions (2)
49,573

 
$
120.09

 
N/A

 
N/A

Total share repurchases
858,465

 
$
118.87

 
793,757

 
 

(1) In January 2015, our board of directors authorized us to repurchase up to $100 million of our Class A common stock (the January 2015 Program). We completed this repurchase program in June 2015.

In June 2015, our board of directors authorized us to repurchase up to $500 million of our Class A common stock (the June 2015 Program). We may repurchase shares in open market purchases or through privately negotiated transactions in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), subject to market conditions, applicable legal requirements, and other relevant factors. The June 2015 Program does not obligate us to repurchase any set dollar amount or number of shares and is scheduled to expire on November 30, 2017, but may be suspended at any time at our discretion. The amount authorized under the June 2015 Program is inclusive of share repurchases of our Class A common stock surrendered by employees in an amount equal to the statutory tax liability associated with the vesting of their equity awards, for which we pay the statutory tax on behalf of the employee, as previously approved by our board of directors.

(2) Amounts represent common shares surrendered by employees in an amount equal to the statutory tax liability associated with the vesting of their equity awards. We then pay the statutory tax on behalf of the employee. Our board of directors approved this program in 2006 in an effort to reduce the dilutive effects of employee equity grants.

Performance Graph

The following graph compares our total cumulative stockholder return with the Standard & Poor's Composite Stock Index (S&P 500) and a peer index representing the total price change of The Corporate Executive Board Company; The Dun & Bradstreet Corporation; Equifax Inc.; FactSet Research Systems Inc.; Gartner, Inc.; McGraw Hill Financial, Inc.; Moody’s Corporation; MSCI Inc.; Nielsen Holdings N.V.; Solera Holdings, Inc.; Thomson Reuters Corporation; and Verisk Analytics, Inc.

The graph assumes a $100 cash investment on November 30, 2010 and the reinvestment of all dividends (which we did not pay). This graph is not indicative of future financial performance.


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Comparison of Cumulative Total Return Among IHS Inc., S&P 500 Index, and Peer Group



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Item 6. Selected Financial Data

You should read the following selected consolidated financial data in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes appearing in Part II of this Form 10-K.

 
Years Ended November 30,
 
2015
2014
2013
2012
2011
 
(in thousands, except for per share amounts)
Statement of Operations Data:
 
 
 
 
 
Revenue
$
2,184,335

$
2,079,787

$
1,692,003

$
1,403,673

$
1,223,565

 
 
 
 
 
 
Income from continuing operations
$
188,938

$
177,962

$
116,516

$
143,398

$
125,518

Income from discontinued operations
51,255

16,587

15,217

14,770

9,897

Net income
$
240,193

$
194,549

$
131,733

$
158,168

$
135,415

 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
Income from continuing operations
$
2.76

$
2.61

$
1.75

$
2.18

$
1.93

Income from discontinued operations
0.75

0.24

0.23

0.22

0.15

Net income
$
3.51

$
2.85

$
1.98

$
2.40

$
2.09

 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
Income from continuing operations
$
2.73

$
2.57

$
1.73

$
2.15

$
1.91

Income from discontinued operations
0.74

0.24

0.23

0.22

0.15

Net income
$
3.47

$
2.81

$
1.95

$
2.37

$
2.06

 
 
 
 
 
 
Balance Sheet Data (as of period end):
 
 
 
 
 
Cash and cash equivalents
$
291,580

$
153,156

$
258,367

$
345,008

$
234,685

Total assets
5,601,081

5,272,136

5,359,613

3,549,211

3,073,037

Total long-term debt and capital leases
2,095,183

1,806,098

1,779,065

890,922

658,911

Total stockholders' equity
2,200,877

2,159,546

1,906,963

1,584,358

1,384,729


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Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and operating results should be read in conjunction with other information and disclosures elsewhere in this Form 10-K, including “Selected Financial Data,” our consolidated financial statements and accompanying notes, and "Website and Social Media Disclosure." The following discussion includes forward-looking statements as described in “Cautionary Note Regarding Forward-Looking Statements” in this Form 10-K. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is outlined under “Risk Factors” in this Form 10-K.

Executive Summary

Business Overview

We are a leading source of information, insight, and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 140 countries around the globe rely on our comprehensive content, expert independent analysis, and flexible delivery methods. Our aim is to embed our solutions within the entire spectrum of our customers’ organization, enabling executive level capital deployment strategies and following decision-making activities throughout their organizations to front-line employees tasked with managing their company’s complex core daily operations. We have been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005.

To best serve our customers, we recently reorganized our business into the following three industry- and workflow-focused segments:

Resources, which includes our Energy and Chemicals product offerings;
Transportation, which includes our Automotive; Maritime & Trade; and Aerospace, Defense & Security product offerings; and
Consolidated Markets & Solutions, which includes our Product Design; Technology, Media & Telecom (TMT); and Economics & Country Risk (ECR) product offerings.

We expect that this sales and operating model will make it easier for our customers to do business with us by providing a cohesive, consistent, and effective product, sales, and marketing approach by segment.

Subscriptions represented approximately 81 percent of our total revenue in 2015. Our subscription agreements are typically annual and non-cancellable for the term of the subscription and may contain provisions for minimum monthly payments. Our subscription revenue is generally stable and predictable, and we have long-term relationships with many of our customers.

Our business has seasonal aspects. Our fourth quarter typically generates our highest quarterly levels of revenue and profit. Conversely, our first quarter generally has our lowest quarterly levels of revenue and profit. We also experience event-driven seasonality in our business; for instance, IHS Energy CERAWeek, an annual energy executive gathering, was held during our second quarter in 2015 and will be held during our first quarter in 2016. 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 2015.

During 2015, we focused on commercial expansion and operational excellence by continuing to introduce new and enhanced product offerings and analytics, expanding customer relationships, and improving our internal systems and processes. For 2016, we expect to better align and focus our operations through the recent transition to our new operating segment structure. We believe this structure will simplify our operating model and improve our operational performance by driving greater speed, clarity, and accountability. Specifically, we intend to do the following:

Align organizational structure. We have transitioned to an industry- and workflow-focused organizational structure consistent with our new segments, as described above. We expect that this transition will allow us to operate with greater efficiency by managing all commercial operations, including sales, marketing, and product management and development by segment. We anticipate that this transition will also increase the speed of decision-making, drive consistency, and remove complexity. As part of this effort, we are undertaking a portfolio evaluation to determine strategic fit, long-term growth potential, and profitability within our business model. We have determined that our OE&RM and GlobalSpec product offerings are no longer aligned with our strategic goals, and we have therefore decided to divest these product groups. We will continue to evaluate the long-term potential and strategic fit of all of our assets.

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Optimize product platforms. Our investment priorities for product platforms are primarily in energy, transportation, and product design, and we intend to continue to invest in analytics across the business to increase our customer value proposition and leverage our existing information and delivery platforms.

Simplify capital allocation. We are simplifying our mergers and acquisitions strategy to focus on fewer, larger deals, which will allow us to increase our productivity and integration efforts. In the absence of larger scaled acquisition opportunities, we plan to deploy capital towards our $500 million share buyback program, which we believe achieves the best balance between scaling through acquisitions and returning capital to shareholders. See "Strategic Acquisitions and Divestitures" below for a discussion of recent acquisitions that reflect this change in strategy.

Key Performance Indicators

We believe that revenue growth, Adjusted EBITDA (both in dollars and margin), and free cash flow are key financial measures of our success. Adjusted EBITDA and free cash flow are financial measures that are not prepared in accordance with U.S. generally accepted accounting principles (non-GAAP).

Revenue growth. We review year-over-year revenue growth in our segments as a key measure of our success in addressing customer needs in each region of the world in which we operate. We measure revenue growth in terms of organic, acquisitive, and foreign currency impacts. We define these components as follows:

Organic – We define organic revenue growth as total revenue growth from continuing operations for all factors other than acquisitions and foreign currency movements. We drive this type of revenue growth through value realization (pricing), expanding wallet share of existing customers through up-selling and cross-selling efforts, securing new customer business, and through the sale of new or enhanced product offerings.

Acquisitive – We define acquisition-related revenue as the revenue generated from acquired products and services from the date of acquisition to the first anniversary date of that acquisition. This type of growth comes as a result of our strategy to purchase, integrate, and leverage the value of assets we acquire. We also include the impact of divestitures in this growth metric.

Foreign currency – We define the foreign currency impact on revenue as the difference between current revenue at current exchange rates and current revenue at the corresponding prior period exchange rates. Due to the significance of revenue transacted in foreign currencies, we believe it is important to measure the impact of foreign currency movements on revenue.

In addition to measuring and reporting revenue by segment, we also measure and report revenue by transaction type and geography. Understanding revenue by transaction type helps us identify broad changes in product mix, while revenue by geography provides us with information about regional dynamics. We summarize our transaction type revenue into the following two categories:

Subscription revenue represents the significant majority of our revenue, and consists of subscriptions to our various information offerings and software maintenance.

Non-subscription revenue represents consulting (e.g., research and analysis, modeling, and forecasting), services, single-document product sales, software license sales and associated services, conferences and events, and advertising. Our non-subscription products and services are an important part of our business because they complement our subscription business in creating strong and comprehensive customer relationships.

Non-GAAP measures. We use non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and free cash flow in our operational and financial decision-making. We believe that such measures allow us to focus on what we deem to be more reliable indicators of ongoing operating performance (Adjusted EBITDA) and our ability to generate cash flow from operations (free cash flow). We also believe that investors may find these non-GAAP financial measures useful for the same reasons, although we caution readers that non-GAAP financial measures are not a substitute for GAAP financial measures or disclosures. None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income or operating cash flow as an indicator of operating performance or any other GAAP measure. Throughout this section on management’s discussion and analysis and on our website (www.ihs.com), we provide reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.


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EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are used by many of our investors, research analysts, investment bankers, and lenders to assess our operating performance. For example, a measure similar to Adjusted EBITDA is required by the lenders under our term loan and revolving credit agreements. We define EBITDA as net income plus or minus net interest, plus provision for income taxes, depreciation, and amortization. Our definition of Adjusted EBITDA further excludes primarily non-cash items and other items that we do not consider to be useful in assessing our operating performance (e.g., stock-based compensation expense, restructuring charges, acquisition-related costs, asset impairment charges, gain or loss on sale of assets, gain or loss on debt extinguishment, pension mark-to-market and settlement expense, and income or loss from discontinued operations).

Free Cash Flow. We define free cash flow as net cash provided by operating activities less capital expenditures.

Because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with higher GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company’s capital structure on its performance.

Strategic Acquisitions and Divestitures

We paid a total purchase price of approximately $370 million for acquisitions we completed during the year ended November 30, 2015. We paid a total purchase price of approximately $210 million for acquisitions we completed during the year ended November 30, 2014, and we paid a total purchase price of approximately $1.6 billion for acquisitions we completed during the year ended November 30, 2013. Our consolidated financial statements include the results of operations and cash flows for these business combinations beginning on their respective dates of acquisition.

Acquisitions continue to be an important part of our growth strategy. In the latter half of 2015, we began narrowing our criteria for acquisitions to focus on fewer, larger deals, with an emphasis on opportunities in transportation assets and assets that diversify our energy portfolio. In December 2015, we acquired CARPROOF Corporation (CARPROOF), a Canada-based company that offers products and services in vehicle history, appraisal, and valuation for the automotive industry, for approximately $460 million, net of cash acquired. In January 2016, we announced that we had signed a definitive agreement to acquire Oil Price Information Service (OPIS), an internationally referenced pricing reporting agency that serves the oil, natural gas, and biofuels industries, for $650 million. For a more detailed description of our recent acquisition activity, see "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 3" in Part II of this Form 10-K.

During 2015, we conducted a complete review of our entire business portfolio. As a result of that review, we determined that the OE&RM and GlobalSpec product offerings no longer fit with our strategic goals, and we have therefore decided to divest these product groups, and they have now been classified as discontinued operations in the accompanying financial statements and footnotes. We will continue to evaluate the long-term potential and strategic fit of all of our assets.

Global Operations

Approximately 40 percent of our revenue is transacted outside of the United States; however, only about 20 percent of our revenue is transacted in currencies other than the U.S. dollar. As a result, a strengthening U.S. dollar relative to certain currencies has historically resulted in a negative impact to our revenue; conversely, a weakening U.S. dollar has historically resulted in a positive impact on our revenue. However, the impact on operating income is diminished due to certain operating expenses denominated in currencies other than the U.S. dollar. Our largest foreign currency revenue exposures are the British Pound, the Canadian Dollar, and the Euro. See "Quantitative and Qualitative Disclosures About Market Risk – Foreign Currency Exchange Rate Risk" for additional discussion of the impacts of foreign currencies on our operations.

Pricing information

We customize many of our sales offerings to meet individual customer needs and base our pricing on a number of factors, including the number of customer locations, the number of simultaneous users, various segmentation methods such as customer size, and the breadth of the content to be included in the offering. Because of the level of offering customization we employ, it is difficult for us to evaluate pricing impacts on a period-to-period basis. This analysis is further complicated by the fact that the

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offering sets purchased by customers are often not constant between periods. As a result, we are not able to precisely differentiate between pricing and volume impacts on changes in revenue.

Other Items

Cost of operating our business. We incur our cost of revenue primarily through acquiring, managing, and delivering our offerings. These costs include personnel, information technology, data acquisition, and occupancy costs, as well as royalty payments to third-party information providers. Royalty payments are largely associated with certain of our Product Design offerings, and are primarily based on either the level of subscription sales or the number of licenses sold. Our sales, general, and administrative expenses include wages and other personnel costs, commissions, corporate occupancy costs, and marketing costs.

A large portion of our operating expenses are not directly commensurate with volume sold, particularly in our subscription-based business. Some of our revenue is driven from the sale of specifications and standards; a portion of this content is obtained from standards development organizations.

Stock-based compensation expense. We issue equity awards to our employees primarily in the form of restricted stock units, for which we record cost over the respective vesting periods. The typical vesting period is three years. As of November 30, 2015, we had approximately 2.2 million unvested stock-based awards outstanding, of which approximately 1.2 million were performance-based awards. The majority of the annual grants for our highest-ranking employees are performance-based awards. The vesting of the performance shares granted in 2014 and 2015 is principally based on achieving certain financial performance levels during fiscal years 2016 and 2017, respectively.

As of November 30, 2015, we believe that more than the target number of shares issuable for the 2015 and 2016 fiscal years will vest based on meeting certain performance targets. Using these estimates in addition to estimated 2016 grants, projected stock-based compensation expense for 2016 is expected to be approximately $120-130 million. Grant date fair values for 2016 grants that differ from our projections or a change in the actual performance levels that we achieve could result in a change in the actual amount of stock-based compensation that we recognize. For example, in the event we do not achieve the projected performance metrics for 2016 or 2017, our stock-based compensation expense could decrease. Conversely, if we exceed the projected performance metrics, our stock-based compensation could increase.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with U.S. GAAP. In applying U.S. GAAP, we make significant estimates and judgments that affect our reported amounts of assets, liabilities, revenues, and expenses, as well as disclosure of contingent assets and liabilities. We believe that our accounting estimates and judgments are reasonable when made, but in many instances, alternative estimates and judgments would also be acceptable. In addition, changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ significantly from our estimates. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations will be affected. We base our estimates on historical experience and other assumptions that we believe are reasonable, and we evaluate these estimates on an ongoing basis. We refer to accounting estimates of this type as critical accounting policies and estimates, which are discussed further below.

Revenue Recognition. The majority of our offerings are provided under agreements containing standard terms and conditions. Approximately 81 percent of our 2015 revenue was derived from the sale of subscriptions, which is initially deferred and then recognized ratably as delivered over the subscription period, or is billed and recognized on a monthly basis. These standard agreements typically do not require any significant judgments about when revenue should be recognized. For non-standard agreements, we generally make judgments about revenue recognition matters such as whether sufficient legally binding terms and conditions exist and whether customer acceptance has been received.

We review customer agreements and utilize advice from legal counsel, as appropriate, in evaluating the binding nature of contract terms and conditions, as well as whether customer acceptance has been achieved. We estimate progress on consulting project deliverables based on our knowledge and judgment about the current status of individual consulting engagements.

Historically, our judgments and estimates have been reasonably accurate, as we have not experienced significant disputes with our customers regarding the timing and acceptance of delivered products and services. However, our actual experience in future periods with respect to binding terms and conditions and customer acceptance may differ from our historical experience.
 

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Business Combinations. We allocate the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. As part of this allocation process, we identify and attribute values and estimated lives to the intangible assets acquired. These determinations involve significant estimates and assumptions about several highly subjective variables, including future cash flows, discount rates, and asset lives. There are also different valuation models for each component, the selection of which requires considerable judgment. Our estimates and assumptions may be based, in part, on the availability of listed market prices or other transparent market data. These determinations will affect the amount of amortization expense recognized in future periods. We base our fair value estimates on assumptions we believe are reasonable, but recognize that the assumptions are inherently uncertain. Depending on the size of the purchase price of a particular acquisition and the mix of intangible assets acquired, the purchase price allocation could be materially impacted by applying a different set of assumptions and estimates.

Goodwill and Other Intangible Assets. We make various assumptions about our goodwill and other intangible assets, including their estimated useful lives and whether any potential impairment events have occurred. We perform impairment analyses on the carrying values of goodwill and indefinite-lived intangible assets at least annually. Additionally, we review the carrying value of goodwill and other intangible assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Examples of such events or changes in circumstances, many of which are subjective in nature, include the following:

Significant negative industry or economic trends;
A significant change in the manner of our use of the acquired assets or our strategy;
A significant decrease in the market value of the asset;
A significant change in legal factors or in the business climate that could affect the value of the asset; and
A change in segments.

If an impairment indicator is present, we perform an analysis to confirm whether an impairment has actually occurred and if so, the amount of the required charge.

For finite-lived intangible assets, we review the carrying amount at least annually to determine whether current events or circumstances indicate a triggering event which could require an adjustment to the carrying amount. A finite-lived intangible asset is considered to be impaired if its carrying value exceeds the estimated future undiscounted cash flows to be derived from it. We exercise judgment in selecting the assumptions used in the estimated future undiscounted cash flows analysis. Any impairment is measured by the amount that the carrying value of such assets exceeds their fair value.
 
For indefinite-lived intangible assets other than goodwill, we first conduct a qualitative analysis to determine whether we believe it is more likely than not that an asset has been impaired. If we believe an impairment has occurred, we then evaluate for impairment by comparing the amount by which the carrying value of the asset exceeds its fair value, primarily based on estimated discounted cash flows. We exercise judgment in selecting the assumptions used in the estimated discounted cash flows analysis.

For goodwill, we determine the fair value of each reporting unit, then compare the fair value of each reporting unit to its carrying value. If carrying value exceeds fair value for any reporting unit, then we calculate and compare the implied fair value of goodwill to the carrying amount of goodwill and record an impairment charge for any excess of carrying value over implied fair value.

The determination of fair value requires a number of significant assumptions and judgments, including assumptions about future economic conditions, revenue growth, operating margins, and discount rates. The use of different estimates or assumptions within our projected future cash flows model, or the use of a methodology other than a projected future cash flow model, could result in significantly different fair values for our goodwill and other intangible assets.
 
Income Taxes. We exercise significant judgment in determining our provision for income taxes, current tax assets and liabilities, deferred tax assets and liabilities, future taxable income (for purposes of assessing our ability to realize future benefit from our deferred tax assets), our permanent reinvestment assertion regarding foreign earnings, and recorded reserves related to uncertain tax positions. A valuation allowance is established to reduce our deferred tax assets to the amount that is considered more likely than not to be realized through the generation of future taxable income and other tax planning opportunities. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made.
 
If actual results differ from estimates we have used, or if we adjust these estimates in future periods, our operating results and financial position could be materially affected.

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Pension and Postretirement Benefits. During the fourth quarter of each fiscal year (or upon any remeasurement date), we immediately recognize net actuarial gains or losses in excess of a corridor in our operating results. The corridor amount is equivalent to 10 percent of the greater of the market-related value of plan assets or the plan's benefit obligation at the beginning of the year. We use the actual fair value of plan assets at the measurement date as the measure of the market-related value of plan assets.

Our pension expense and associated pension liability requires the use of judgment in determining assumptions about the estimated long-term rate of return on plan assets and the discount rate, as well as various demographic assumptions. Our pension investment strategy is designed to align the majority of our pension assets with the underlying pension liability, which minimizes volatility caused by changes in asset returns and discount rates. Our pension expense estimates are updated for actual experience through the remeasurement process in the fourth quarter, or sooner if earlier remeasurements are required. For 2015, we used a 4.7 percent expected long-term rate of return on plan assets and a 4.2 percent discount rate for the U.S. RIP. The actual return on U.S. RIP plan assets during 2015 was negative 0.8 percent. The difference between actual return on plan assets and expected return on plan assets was largely mitigated by the offsetting change in the pension liability resulting from movements in the discount rate and change in mortality assumptions.

Our pension and postretirement benefit assumptions are determined as follows:

We utilize a bond matching model that averages a bond universe of about 500 AA-graded non-callable bonds between the 10th and 90th percentiles for each maturity group as a proxy for setting the discount rate at year-end.
Asset returns are based upon the anticipated average rate of earnings expected on invested funds of the plan over the long-term. We determined our expected return on plan assets by using the discount rate (which approximates the return on the debt securities in our portfolio) with a slight uplift for the impact of the portion of plan assets invested in equity securities.
Demographic assumptions (such as turnover, retirement, and disability) are based upon historical experience and are monitored on a continuing basis to determine if adjustments to these assumptions are warranted in order to better reflect anticipated future experience.
Mortality assumptions are based on recognized actuarial tables.

Depending on the assumptions and estimates used, our net periodic pension and postretirement benefit expense could vary significantly within a range of possible outcomes and could have a material impact on our financial results.

Discount rates and expected rates of return on plan assets are selected at the end of a given fiscal year and will impact expense in the subsequent year. A fifty-basis-point decrease in certain assumptions made at the beginning of 2015 would have resulted in the following effects on 2015 pension expense and the projected benefit obligation (PBO) as of November 30, 2015 (in thousands):

 
 
Impact to Pension Results - U.S. RIP
Change in assumption
 
Increase/(Decrease) to 2015 Pre-Tax Expense
 
Increase/(Decrease) to November 30, 2015 PBO
50-basis-point decrease in discount rate
 
$
6,655

 
$
7,843

50-basis-point increase in discount rate
 
$
(1,476
)
 
$
(7,078
)
50-basis-point decrease in expected return on assets
 
$
672

 
$

50-basis-point increase in expected return on assets
 
$
(672
)
 
$

 
 
 
 
 
 
 
Impact to Pension Results - U.K. RIP
Change in assumption
 
Increase/(Decrease) to 2015 Pre-Tax Expense
 
Increase/(Decrease) to November 30, 2015 PBO
50-basis-point decrease in discount rate
 
$
4,052

 
$
4,600

50-basis-point increase in discount rate
 
$
(590
)
 
$
(4,209
)
50-basis-point decrease in expected return on assets
 
$
239

 
$

50-basis-point increase in expected return on assets
 
$
(239
)
 
$



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Stock-Based Compensation. Our stock plans provide for the grant of various equity awards, including performance-based awards. For time-based restricted stock unit grants, we calculate stock-based compensation cost by multiplying the grant date fair market value by the number of shares granted, reduced for estimated forfeitures. The estimated forfeiture rate is based on historical experience, and we periodically review our forfeiture assumptions based on actual experience.
 
For performance-based restricted stock unit grants, we calculate stock-based compensation cost by multiplying the grant date fair market value by the number of shares granted, reduced for estimated forfeitures. Each quarter, we evaluate the probability of the number of shares that are expected to vest and adjust our stock-based compensation expense accordingly. For example, in the event we do not achieve the projected performance metrics for 2016 or 2017, our stock-based compensation expense would decrease. Conversely, if we exceed the projected performance metrics, our stock-based compensation would increase.

Results of Operations

Total Revenue

Total revenue for 2015 increased 5 percent compared to the same period of 2014. Total revenue for 2014 increased 23 percent compared to the same period in 2013. The table below displays the percentage point change in revenue due to organic, acquisitive, and foreign currency factors when comparing 2015 to 2014 and 2014 to 2013.

 
 
Increase (Decrease) in Total Revenue
(All amounts represent percentage points)
 
Organic
 
Acquisitive
 
Foreign
Currency
2015 vs. 2014
 
2
%
 
5
%
 
(2
)%
2014 vs. 2013
 
5
%
 
18
%
 
 %

Organic revenue growth for both 2015 and 2014 was primarily attributable to organic subscription growth, which provided a 5 percent organic revenue growth rate in 2015 and a 6 percent organic revenue growth rate in 2014. The subscription-based business represented 81 percent of total revenue in 2015 and 79 percent of total revenue in 2014. The non-subscription business decreased organically by 9 percent in 2015 and by 2 percent in 2014, with the 2015 growth rate adversely impacted by lower consulting, software, and services revenue, mostly in our Resources segment. The non-subscription revenue decline in 2015 was partially offset by the approximately $8 million positive sales impact associated with the biennial cycle of the BPVC standard, which was most recently released in the third quarter of 2015.

Acquisition-related revenue growth for 2015 was primarily due to our 2015 acquisitions, as well as the run-out of our 2014 acquisitions. Our 2015 acquisitions included the following:

JOC Group, Infonetics, and Rushmore Reviews in the first quarter of 2015; and
Dataium and RootMetrics in the second quarter of 2015.

Acquisition-related revenue growth for 2014 was primarily due to the run-out of the R. L. Polk acquisition (Polk acquisition) from the third quarter of 2013, as well as the run-out of other 2013 acquisitions. Our 2014 acquisitions also contributed to the increase and included the following:

Global Trade Information Services and PCI Acrylonitrile in August 2014, and
DisplaySearch, Solarbuzz, and PacWest Consulting Partners in November 2014.

Foreign currency movements had a significant adverse impact on our 2015 revenue growth as the U.S. dollar continued to strengthen against foreign currencies. Foreign currency movements had a negligible impact on our 2014 revenue growth. Due to the extent of our global operations, foreign currency movements could continue to have an adverse impact on our results in the future.


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Revenue by Segment
 
 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
 
2015
 
2014
 
2013
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
Resources
 
$
884,596

 
$
927,211

 
865,126

 
(5
)%
 
7
%
Transportation
 
758,404

 
662,547

 
353,787

 
14
 %
 
87
%
CMS
 
541,335

 
490,029

 
473,090

 
10
 %
 
4
%
Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

 
5
 %
 
23
%
 
 
 
 
 
 
 
 
 
 
 
As a percent of total revenue:
 
 
 
 
 
 
 
 
 
 
Resources
 
40
%
 
45
%
 
51
%
 
 
 
 
Transportation
 
35
%
 
32
%
 
21
%
 
 
 
 
CMS
 
25
%
 
24
%
 
28
%
 
 
 
 

The percentage change in revenue for each segment is due to the factors described in the following table.
 
2015 vs. 2014
 
2014 vs. 2013
(All amounts represent percentage points)
Organic
 
Acquisitive
 
Foreign
Currency
 
Organic
 
Acquisitive
 
Foreign
Currency
Resources revenue
(4
)%
 
1
%
 
(2
)%
 
5
%
 
2
%
 
 %
Transportation revenue
9
 %
 
7
%
 
(2
)%
 
6
%
 
81
%
 
1
 %
CMS revenue
4
 %
 
9
%
 
(3
)%
 
2
%
 
%
 
1
 %

Resources revenue encountered significant headwinds in 2015, experiencing lower subscription organic growth due to industry dynamics, at 2 percent growth for 2015, compared to 7 percent growth for 2014. During 2015, on a constant currency basis, our Resources organic subscription base, which represents the annualized value of subscription contracts, has declined approximately $35 million, or about 5 percent, on a subscription base of approximately $750 million at the beginning of the year. This subscription base decline will result in negative Resources subscription organic revenue growth in 2016. Economic challenges in the energy industry also contributed to sharp declines in the organic non-subscription revenue results for 2015, from a negative 2 percent growth rate in 2014 to a negative 27 percent growth rate in 2015.

Transportation revenue increases for 2014 and 2015 were driven by strengthening organic revenue growth and acquisitions in both our subscription and non-subscription offerings. We continue to see strong organic growth in our automotive businesses and stable organic growth in the other Transportation businesses. With the acquisition of CARPROOF Corporation in December 2015, we anticipate further growth in our automotive business in the future.

CMS organic revenue growth in both 2015 and 2014 was due primarily to growth in our Product Design offerings. CMS total growth in 2015 also benefited from TMT acquisition activity during the year.

Revenue by Transaction Type
 
 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
 
2015
 
2014
 
2013
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
Subscription
 
$
1,768,541

 
$
1,643,844

 
$
1,326,630

 
8
 %
 
24
%
Non-subscription
 
415,794

 
435,943

 
365,373

 
(5
)%
 
19
%
Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

 
5
 %
 
23
%
 
 
 
 
 
 
 
 
 
 
 
As a percent of total revenue:
 
 
 
 
 
 
 
 
 
 
Subscription
 
81
%
 
79
%
 
78
%
 
 
 
 
Non-subscription
 
19
%
 
21
%
 
22
%
 
 
 
 

Subscriptions represent a steady and predictable source of revenue for us, as evidenced by our 5 percent and 6 percent organic subscription revenue growth in 2015 and 2014, respectively. This trend is especially important for us, as subscription-

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based revenue is at the core of our business model. Transportation subscription offerings provided the largest contribution to the growth, accelerating from 7 percent in 2014 to 11 percent in 2015. CMS subscription offerings were steady at approximately 5 percent organic growth in 2014 and 4 percent in 2015. We expect continued pressure on our Resources organic subscription growth rate, as the reduction in the energy subscription base will result in negative Resources subscription organic revenue growth in 2016. This will also result in lower total IHS subscription organic revenue growth in 2016.

Organic non-subscription revenue growth was a negative 9 percent for 2015 and a negative 2 percent for 2014. The negative non-subscription organic growth for 2015 was primarily due to the negative 27 percent Resources organic growth, partially offset by Transportation non-subscription organic growth of 5 percent and flat CMS non-subscription organic growth. Organic non-subscription revenue growth for 2014 was down primarily due to the BPVC release in 2013.

Revenue by Region

 
 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
 
2015
 
2014
 
2013
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
Americas
 
$
1,459,743

 
$
1,353,616

 
1,041,425

 
8
 %
 
30
%
EMEA
 
508,066

 
518,820

 
458,531

 
(2
)%
 
13
%
APAC
 
216,526

 
207,351

 
192,047

 
4
 %
 
8
%
Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

 
5
 %
 
23
%

Americas organic revenue growth was 3 percent for 2015, driven largely by 6 percent subscription organic revenue growth, partially offset by negative 9 percent non-subscription organic revenue growth. Americas organic revenue growth was 4 percent for 2014, driven largely by 6 percent subscription organic revenue growth, partially offset by negative 3 percent non-subscription organic revenue growth. Organic revenue growth in both periods is primarily due to strong Transportation segment growth in the region, and secondarily, organic revenue growth contribution in 2014 from the Resources segment.

EMEA organic revenue growth was negative 1 percent for 2015, driven by 1 percent subscription organic revenue growth and offset by negative 9 percent non-subscription organic revenue growth. EMEA organic revenue growth was 5 percent for 2014, driven by 7 percent subscription organic revenue growth, primarily from strong Resources segment growth, and offset by negative 1 percent non-subscription organic revenue growth. Foreign currency effects impacted EMEA revenue by a negative 4 percent for 2015, reflecting the strengthening of the U.S. dollar against foreign currencies.

APAC organic revenue growth was 1 percent for 2015, driven by 6 percent subscription organic revenue growth, mostly offset by negative 13 percent non-subscription organic revenue growth. APAC organic revenue growth was 4 percent for 2014, driven by 6 percent subscription organic revenue growth, partially offset by negative 2 percent non-subscription organic revenue growth. Foreign currency effects impacted APAC revenue by a negative 2 percent for 2015, also reflecting the strengthening of the U.S. dollar against foreign currencies.



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Table of Contents

Operating Expenses

The following table shows our operating expenses and the associated percentages of revenue.
 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
2015
 
2014
 
2013
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue
$
819,173

 
$
815,153

 
$
689,976

 
%
 
18
%
SG&A expense
795,354

 
789,752

 
642,074

 
1
%
 
23
%
Total cost of revenue and SG&A expense
$
1,614,527

 
$
1,604,905

 
$
1,332,050

 
1
%
 
20
%
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization expense
$
215,080

 
$
181,243

 
$
138,975

 
19
%
 
30
%
 
 
 
 
 
 
 
 
 
 
As a percent of revenue:
 
 
 
 
 
 
 
 
 
Total cost of revenue and SG&A expense
74
%
 
77
%
 
79
%
 
 
 
 
Depreciation and amortization expense
10
%
 
9
%
 
8
%
 
 
 
 

Cost of Revenue and SG&A expense

In managing our business, we evaluate our costs by type (e.g., salaries) rather than by income statement classification. As a percent of revenue, cost of revenue and SG&A expense have steadily decreased since 2013, primarily as a result of ongoing cost management in a lower revenue growth environment and due to changes in stock-based compensation, as further discussed below. We have also seen an improvement in this percentage as we seek to increase our subscription-based offerings, which typically carry higher margins than our non-subscription offerings.

We continue to invest in areas such as our automotive and energy asset valuation offerings to drive future growth in the business, and we expect to continue to invest in our people, platforms, processes, and products in support of our goals to increase top- and bottom-line growth.

Within our cost of revenue and SG&A expense, increases and decreases to stock-based compensation expense are primarily due to the timing of changes in the number of shares expected to vest for performance-based awards. As a percentage of revenue, stock-based compensation was 6 percent, 8 percent, and 9 percent for the years ended November 30, 2015, 2014, and 2013, respectively.

Depreciation and Amortization Expense

Depreciation expense has been increasing primarily as a result of increases in capital expenditures for our various infrastructure and software development initiatives. Amortization expense has been increasing due to continued acquisition-related activity.

Restructuring

We incurred $39 million of restructuring charges during 2015, which reflects our continuing efforts to consolidate positions, locations, and data centers, particularly as we realigned to our new segment structure and simplified and reduced our centralized marketing, sales support, and shares services cost structures. We incurred $9 million of restructuring charges in 2014 and $12 million of restructuring charges in 2013. We continue to realize benefits with respect to our infrastructure initiatives that allow us to simplify our processes and standardize our platforms in order to enable our existing workforce to accomplish more with the same or fewer resources.

Acquisition-related Costs

In 2015, we incurred $1 million of costs associated with acquisitions, including severance, lease abandonments, and professional fees. We incurred $2 million of acquisition-related costs in 2014 and $23 million of acquisition-related costs in 2013. The increased costs in 2013 were primarily attributable to the Polk acquisition, including investment adviser fees, severance, a lease abandonment, and legal and professional fees. Because acquisitions are a key component of our growth strategy, we expect that we will continue to incur similar costs for future acquisitions.

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Table of Contents


Pension and Postretirement Expense

The following table shows the components of net periodic pension and postretirement expense:
 
 
Year ended November 30,
(In thousands)
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
Net benefit cost
 
$
1,986

 
$
5,315

 
$
8,999

Fourth quarter mark-to-market adjustment
 
2,492

 
1,459

 
2,620

Total
 
$
4,478

 
$
6,774

 
$
11,619


Net service cost decreased in 2014 and 2015 due to the July 2014 decision to discontinue future service accruals to the U.S. RIP and SIP. The fourth quarter mark-to-market adjustments in all three years were largely due to updated actuarial census data assumptions, as well as some asset underperformance. We exclude the fourth quarter mark-to-market adjustment from our Adjusted EBITDA metric, as we do not regard that item to be indicative of ongoing operating performance.

We expect 2016 net service cost, prior to any fourth quarter mark-to-market adjustments, to be approximately $2 million. 

Operating Income by Segment
 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
2015
 
2014
 
2013
 
 
Operating income:
 
 
 
 
 
 
 
 
 
Resources
$
248,280

 
$
286,393

 
$
284,475

 
(13
)%
 
1
%
Transportation
193,668

 
160,361

 
67,255

 
21
 %
 
138
%
CMS
49,319

 
52,225

 
32,899

 
(6
)%
 
59
%
Shared services
(183,424
)
 
(221,495
)
 
(210,655
)
 
(17
)%
 
5
%
Total operating income
$
307,843

 
$
277,484

 
$
173,974

 
11
 %
 
59
%
 
 
 
 
 
 
 
 
 
 
As a percent of segment revenue:
 
 
 
 
 
 
 
 
 
Resources
28
%
 
31
%
 
33
%
 
 
 
 
Transportation
26
%
 
24
%
 
19
%
 
 
 
 
CMS
9
%
 
11
%
 
7
%
 
 
 
 

The decrease in Resources operating income in 2015 was primarily due to higher restructuring costs, as well as an increase in depreciation expense. The increase in Transportation operating income in 2014 and 2015 was primarily due to strong revenue performance and the associated leverage in the operating model. Activity in the CMS segment reflects improvements due to the acquisition of RootMetrics in 2015 and better CMS operational performance, offset by increased depreciation, amortization, and restructuring costs.

Changes in shared services operating expense were primarily a result of changes in our stock-based compensation expense in each of the years. We directly assign all stock-based compensation expense to our shared services function.

Provision for Income Taxes

Our effective tax rate for continuing operations for the year ended November 30, 2015 was 20.5 percent, compared to 20.2 percent in 2014 and 10.8 percent in 2013. The effective tax rate for fiscal year 2014 varied from the effective tax rate for fiscal year 2013 primarily as a result of the significant U.S. presence of the Polk business, which was acquired in 2013 and has a higher effective tax rate than other jurisdictions.


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Adjusted EBITDA from continuing operations (non-GAAP measure)

 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
$
188,938

 
$
177,962

 
$
116,516

 
6
%
 
53
%
Interest income
(933
)
 
(988
)
 
(1,271
)
 
 
 
 
Interest expense
70,985

 
55,384

 
44,582

 
 
 
 
Provision for income taxes
48,853

 
45,126

 
14,147

 
 
 
 
Depreciation
84,958

 
64,978

 
45,987

 
 
 
 
Amortization
130,122

 
116,265

 
92,988

 
 
 
 
EBITDA
$
522,923

 
$
458,727

 
$
312,949

 
14
%
 
47
%
Stock-based compensation expense
128,916

 
159,257

 
155,718

 
 
 
 
Restructuring charges
39,359

 
8,775

 
11,729

 
 
 
 
Acquisition-related costs
1,472

 
1,901

 
23,428

 
 
 
 
Impairment of assets
1,243

 

 
1,629

 
 
 
 
Loss on sale of assets

 
2,654

 
1,241

 
 
 
 
Loss on debt extinguishment

 
1,422

 

 
 
 
 
Pension mark-to-market and settlement expense
2,492

 
1,459

 
2,620

 
 
 
 
Adjusted EBITDA
$
696,405

 
$
634,195

 
$
509,314

 
10
%
 
25
%
Adjusted EBITDA as a percentage of revenue
31.9
%
 
30.5
%
 
30.1
%
 
 
 
 

Our Adjusted EBITDA margin performance has been steadily increasing as we focus our efforts on managing costs in a lower revenue growth environment. We expect to continue improving margins as a result of the realignment to our new segment structure and other operating efficiencies, including reductions in marketing, sales operations, and sales support.

Financial Condition
(In thousands, except percentages)
As of November 30, 2015
 
As of November 30, 2014
 
Dollar change
 
Percent change
Accounts receivable, net
$
355,913

 
$
421,374

 
$
(65,461
)
 
(16
)%
Accrued compensation
$
105,477

 
$
101,875

 
$
3,602

 
4
 %
Deferred revenue
$
552,498

 
$
596,187

 
$
(43,689
)
 
(7
)%

The decrease in our accounts receivable balance was primarily due to lower sales in our Resources segment in 2015 and continued strength in cash collections. Accrued compensation increased due to higher levels of bonus accrual related to our annual incentive plan, partially offset by lower accrued commissions. The decrease in deferred revenue was primarily due to lower sales in our Resources segment in the current year.

Liquidity and Capital Resources

As of November 30, 2015, we had cash and cash equivalents of $292 million, of which approximately $266 million was held by our foreign subsidiaries. Cash held by our foreign subsidiaries could be subject to U.S. federal income tax if we were to decide to repatriate any of that cash to the U.S.; however, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not indicate a need to repatriate them to fund our operations in jurisdictions outside of where they are held. We also had approximately $2.1 billion of debt as of November 30, 2015, consisting primarily of $750 million of senior notes, $710 million of revolving facility debt, and $665 million of term loan debt. As of November 30, 2015, we had approximately $590 million available under our revolving credit facility. In December 2015, we acquired CARPROOF for approximately $460 million, net of cash acquired, using a combination of cash and borrowings under our revolving credit facility. In January 2016, we announced that we had signed a definitive agreement to acquire OPIS for $650 million, and we expect to finance this transaction with additional bank borrowings. Upon completion of the OPIS acquisition, which is expected to occur during the first quarter of 2016, our debt balance will be approximately $3.1 billion and our gross leverage

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will be approximately 3.9x.  Since 3.9x would exceed our current credit agreement leverage limits, we have obtained a credit facility backstop and will pursue an amendment from our bank group prior to closing OPIS, which will allow us to exceed our current 3.75x limit.

Our interest expense increased in 2015 compared to 2014 primarily because of a higher portion of fixed rate debt due to our refinancing in the fourth quarter of 2014, as well as a higher average debt balance as a result of acquisitions and share repurchases.  We expect that our interest expense will be higher in 2016 compared to 2015 primarily due to the full-year impact of our $400 million floating-to-fixed interest rate swaps, higher floating rate costs due to recent rate increases and an elevated leverage ratio, and higher debt balance.

In the first quarter of 2015, our board of directors authorized us to repurchase up to $100 million of outstanding stock. We completed this repurchase program in June 2015 and announced a new $500 million repurchase program for share repurchases through November 2017. This new repurchase program does not obligate us to repurchase any set dollar amount or number of shares. The amount authorized under the new program includes open market share repurchases, as well as repurchases for stock surrendered by employees in an amount equal to the statutory tax liability associated with the vesting of their equity awards, for which we pay the statutory tax on behalf of the employee. During 2015, we repurchased $111 million under this program and expect to repurchase an additional $110 million during the first quarter of 2016. In the absence of larger scaled acquisition opportunities, we expect to deploy capital towards this repurchase program.

As of November 30, 2015, the ratio of free cash flow to Adjusted EBITDA was approximately 66 percent. We anticipate that this ratio will continue to be in the mid-60s range going forward. Because of our cash, debt, and cash flow positions, we believe we will have sufficient liquidity to meet our ongoing working capital and capital expenditure needs. Our future capital requirements will depend on many factors, including the number and magnitude of future acquisitions and share repurchase programs, the need for additional facilities or facility improvements, the timing and extent of spending to support product development efforts, information technology infrastructure investments, investments in our internal business applications, and the continued market acceptance of our offerings. We could be required, or could elect, to seek additional funding through public or private equity or debt financings; however, additional funds may not be available on terms acceptable to us. We expect that our capital expenditures for 2016 will be approximately 5 percent of revenue.

Cash Flows
 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
2015
 
2014
 
2013
 
 
Net cash provided by operating activities
$
612,639

 
$
628,099

 
$
496,155

 
(2
)%
 
27
 %
Net cash used in investing activities
$
(495,959
)
 
$
(324,011
)
 
$
(1,571,897
)
 
53
 %
 
(79
)%
Net cash provided by (used in) financing activities
$
45,474

 
$
(397,861
)
 
$
1,006,450

 
(111
)%
 
(140
)%

The decrease in net cash provided by operating activities for 2015 was primarily due to lower sales in our Resources segment in the current year, as well as higher restructuring costs and interest payments, partially offset by continued strength in cash collections and a lower amount of cash paid for taxes. The increase in net cash provided by operating activities from 2013 to 2014 was largely due to business performance improvements, including strong cash collections in 2014, as well as additive cash flow from recent acquisitions (most notably the Polk acquisition). Our subscription-based business model continues to be a cash flow generator that is aided by positive working capital characteristics that do not generally require substantial working capital increases to support our growth.

The significant amount of net cash used in investing activities in 2013 was principally due to the Polk acquisition that we completed in 2013. The increase in net cash used in investing activities from 2014 to 2015 was attributable to a higher level of acquisition activity in 2014.

Net cash provided by financing activities for 2013 was principally due to the significant amount of borrowings that we used to fund the Polk acquisition, in addition to the associated debt issuance costs; in 2014, we began to repay those borrowings as we reduced our debt leverage. In 2015, our increased borrowings were used principally to help finance our acquisitions and share repurchase activities, versus our focus on reducing our debt leverage in 2014.


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Free Cash Flow (non-GAAP measure)

The following table reconciles our non-GAAP free cash flow measure to net cash provided by operating activities.
 
Year ended November 30,
 
% Change 2015 vs. 2014
 
% Change 2014 vs. 2013
(In thousands, except percentages)
2015
 
2014
 
2013
 
 
Net cash provided by operating activities
$
612,639

 
$
628,099

 
$
496,155

 
 
 
 
Capital expenditures on property and equipment
(122,921
)
 
(114,453
)
 
(90,734
)
 
 
 
 
Free cash flow
$
489,718

 
$
513,646

 
$
405,421

 
(5
)%
 
27
%

Our free cash flow has historically been strong, and we expect that it will continue to be a significant source of funding for our business strategy of growth through organic and acquisitive means.

Credit Facility and Other Debt

Please refer to "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 8" in Part II of this Form 10-K for a discussion of the current status of our debt arrangements.

Share Repurchase Programs

Please refer to Part II, Item 5 and "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 16" in Part II of this Form 10-K for a discussion of our share repurchase programs.

Off-Balance Sheet Transactions

We have no off-balance sheet transactions.

Contractual Obligations and Commercial Commitments

We have various contractual obligations and commercial commitments that are recorded as liabilities in our consolidated financial statements. Other items, such as certain purchase commitments and other executory contracts, are not recognized as liabilities in our consolidated financial statements but are required to be disclosed. The following table summarizes our contractual obligations and commercial commitments as of November 30, 2015, along with the obligations associated with our term loans and notes, and the future periods in which such obligations are expected to be settled in cash (in thousands):
 
 
 
 
Payment due by period
Contractual Obligations and Commercial Commitments
 
Total
 
Less than 1 year
 
1 - 3 years
 
3 - 5 years
 
More than 5 years
Term loans, notes, and interest
 
$
1,762,875

 
$
96,472

 
$
262,951

 
$
581,473

 
$
821,979

Operating lease obligations
 
291,774

 
58,222

 
98,553

 
58,994

 
76,005

Unconditional purchase obligations
 
54,354

 
24,819

 
27,711

 
1,824

 

Total
 
$
2,109,003

 
$
179,513

 
$
389,215

 
$
642,291

 
$
897,984


We expect to contribute approximately $3 million to our pension and postretirement benefit plans in 2016.

In addition to the term loans and notes, as of November 30, 2015, we also had $710 million of outstanding borrowings under our $1.3 billion 2014 revolving facility at a current annual interest rate of 1.70 percent. The facility has a five-year term ending in October 2019. We also had approximately $6 million in capital lease obligations as of November 30, 2015.

Recent Accounting Pronouncements

Please refer to "Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 2" in Part II of this Form 10-K for a discussion of recent accounting pronouncements and their anticipated effect on our business.


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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market risk refers to potential losses from adverse changes in market rates and prices. We are exposed to market risk primarily in the form of interest rate, foreign currency exchange rate, and credit risk. We actively monitor these exposures. In order to manage these exposures, we use derivative financial instruments, including interest rate swaps and foreign currency forwards. Our objective is to reduce fluctuations in revenue, earnings, and cash flows resulting from changes in interest rates and foreign currency rates. We do not use derivatives for speculative purposes.

Interest Rate Risk
 
As of November 30, 2015, we had no investments other than cash and cash equivalents and therefore we were not exposed to material interest rate risk on investments.

Our 2014 revolving facility and our 2013 term loan borrowings are subject to variable interest rates. We use interest rate swaps in order to fix a portion of our variable rate debt as part of our overall interest rate risk management strategy. As of November 30, 2015, we had $1,375 million of floating-rate debt at a 1.76 percent weighted-average interest rate, of which $400 million was subject to effective floating-to-fixed interest rate swaps. A hypothetical increase in interest rates of 100 basis points applied to our floating rate indebtedness would increase annual interest expense by approximately $10 million ($14 million without giving effect to any of our interest rate swaps).

Foreign Currency Exchange Rate Risk

Our consolidated financial statements are expressed in U.S. dollars, but a portion of our business is conducted in currencies other than U.S. dollars. Changes in the exchange rates for such currencies into U.S. dollars can affect our revenues, earnings, and the carrying values of our assets and liabilities in our consolidated balance sheet, either positively or negatively. Fluctuations in foreign currency rates increased (decreased) our revenues by $(46) million, $3 million, and $(8) million for the years ended November 30, 2015, 2014, and 2013, respectively, and increased (decreased) our operating income by $10 million, $(2) million, and $0 million for the same respective periods. The translation effects of changes in exchange rates in our consolidated balance sheet are recorded within the cumulative translation adjustment component of our stockholders’ equity. In 2015, we recorded a cumulative translation loss of $80 million, reflecting changes in exchange rates of various currencies compared to the U.S. dollar.

A hypothetical ten percent change in the currencies that we are primarily exposed to would have impacted our 2015 revenue and operating income by approximately $40 million and $4 million, respectively. Approximately 80% of total revenue was earned in subsidiaries with the U.S. dollar as the functional currency.

Credit Risk

We are exposed to credit risk associated with cash equivalents, foreign currency and interest rate derivatives, and trade receivables. We do not believe that our cash equivalents or foreign currency and interest rate derivatives present significant credit risks because the counterparties to the instruments consist of major financial institutions that are financially sound or have been capitalized by the U.S. government, and we manage the notional amount of contracts entered into with any one counterparty. Substantially all trade receivable balances are unsecured. The concentration of credit risk with respect to trade receivables is limited by the large number of customers in our customer base and their dispersion across various industries and geographic areas. We perform ongoing credit evaluations of our customers and maintain an allowance for potential credit losses.
 
Item 8.
Financial Statements and Supplementary Data

Index to Consolidated Financial Statements


32


Consolidated Financial Statements

33




Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of IHS Inc.

We have audited the accompanying consolidated balance sheets of IHS Inc. (the Company) as of November 30, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, cash flows and changes in stockholders' equity for each of the three years in the period ended November 30, 2015. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of IHS Inc. at November 30, 2015 and 2014, and the consolidated results of its operations and its cash flows for each of the three years in the period ended November 30, 2015, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), IHS Inc.'s internal control over financial reporting as of November 30, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated January 15, 2016 expressed an unqualified opinion thereon.

/s/ Ernst & Young

Denver, Colorado
January 15, 2016


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Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of November 30, 2015, based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based on that evaluation, our management concluded that our internal control over financial reporting was effective as of November 30, 2015.

Our independent registered public accounting firm has issued an audit report on our internal control over financial reporting. Their report appears on the following page.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Date: January 15, 2016

    /s/ Jerre L. Stead
 
Jerre L. Stead
 
Chairman and Chief Executive Officer
 
 
 
    /s/ Todd S. Hyatt
 
Todd S. Hyatt
 
Executive Vice President, Chief Financial Officer
 


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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of IHS Inc.

We have audited IHS Inc.'s internal control over financial reporting as of November 30, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). IHS Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, IHS Inc. maintained, in all material respects, effective internal control over financial reporting as of November 30, 2015, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of IHS Inc. as of November 30, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, cash flows and changes in stockholders' equity for each of the three years in the period ended November 30, 2015 of IHS Inc. and our report dated January 15, 2016 expressed an unqualified opinion thereon.

/s/ Ernst & Young

Denver, Colorado
January 15, 2016


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Table of Contents


IHS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per-share amounts)
 
As of
 
As of
 
November 30, 2015
 
November 30, 2014
Assets

 

Current assets:

 

Cash and cash equivalents
$
291,580

 
$
153,156

Accounts receivable, net
355,913

 
421,374

Income tax receivable
4,585

 
2,283

Deferred subscription costs
52,752

 
51,021

Assets held for sale
193,377

 

Other
57,135

 
60,973

Total current assets
955,342

 
688,807

Non-current assets:

 

Property and equipment, net
314,366

 
301,419

Intangible assets, net
1,014,691

 
1,091,109

Goodwill
3,287,459

 
3,157,324

Deferred income taxes
6,630

 
5,486

Other
22,593

 
27,991

Total non-current assets
4,645,739

 
4,583,329

Total assets
$
5,601,081

 
$
5,272,136

Liabilities and stockholders’ equity

 

Current liabilities:

 

Short-term debt
$
36,019

 
$
36,257

Accounts payable
59,180

 
52,245

Accrued compensation
105,477

 
101,875

Accrued royalties
33,306

 
37,346

Other accrued expenses
118,217

 
131,147

Income tax payable
23,339

 

Deferred revenue
552,498

 
596,187

Liabilities held for sale
32,097

 

Total current liabilities
960,133

 
955,057

Long-term debt
2,095,183

 
1,806,098

Accrued pension and postretirement liability
26,745

 
29,139

Deferred income taxes
259,524

 
271,125

Other liabilities
58,619

 
51,171

Commitments and contingencies

 

Stockholders’ equity:

 

Class A common stock, $0.01 par value per share, 160,000,000 shares authorized, 70,287,707 and 69,391,577 shares issued, and 67,523,885 and 68,372,176 shares outstanding at November 30, 2015 and November 30, 2014, respectively
703

 
694

Additional paid-in capital
1,053,141

 
956,381

Treasury stock, at cost: 2,763,822 and 1,019,401 shares at November 30, 2015 and November 30, 2014, respectively
(317,016
)
 
(105,873
)
Retained earnings
1,655,262

 
1,415,069

Accumulated other comprehensive loss
(191,213
)
 
(106,725
)
Total stockholders’ equity
2,200,877

 
2,159,546

Total liabilities and stockholders’ equity
$
5,601,081

 
$
5,272,136

See accompanying notes.

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Table of Contents

IHS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per-share amounts)
 
 
Year ended November 30,
 
 
2015
 
2014
 
2013
Revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

Operating expenses:
 
 
 
 
 
 
Cost of revenue
 
819,173

 
815,153

 
689,976

Selling, general and administrative
 
795,354

 
789,752

 
642,074

Depreciation and amortization
 
215,080

 
181,243

 
138,975

Restructuring charges
 
39,359

 
8,775

 
11,729

Acquisition-related costs
 
1,472

 
1,901

 
23,428

Net periodic pension and postretirement expense
 
4,478

 
6,774

 
11,619

Other expense (income), net
 
1,576

 
(1,295
)
 
228

Total operating expenses
 
1,876,492

 
1,802,303

 
1,518,029

Operating income
 
307,843

 
277,484

 
173,974

Interest income
 
933

 
988

 
1,271

Interest expense
 
(70,985
)
 
(55,384
)
 
(44,582
)
Non-operating expense, net
 
(70,052
)
 
(54,396
)
 
(43,311
)
Income from continuing operations before income taxes
 
237,791

 
223,088

 
130,663

Provision for income taxes
 
(48,853
)
 
(45,126
)
 
(14,147
)
Income from continuing operations
 
188,938

 
177,962

 
116,516

Income from discontinued operations, net
 
51,255

 
16,587

 
15,217

Net income
 
$
240,193

 
$
194,549

 
$
131,733


 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
Income from continuing operations
 
$
2.76

 
$
2.61

 
$
1.75

Income from discontinued operations, net
 
0.75

 
0.24

 
0.23

Net income
 
$
3.51

 
$
2.85

 
$
1.98

Weighted average shares used in computing basic earnings per share
 
68,450

 
68,163

 
66,434


 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
Income from continuing operations
 
$
2.73

 
$
2.57

 
$
1.73

Income from discontinued operations, net
 
0.74

 
0.24

 
0.23

Net income
 
$
3.47

 
$
2.81

 
$
1.95

Weighted average shares used in computing diluted earnings per share
 
69,289

 
69,120

 
67,442


See accompanying notes.





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Table of Contents



IHS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

 
 
Year ended November 30,
 
 
2015
 
2014
 
2013
Net income
 
$
240,193

 
$
194,549

 
$
131,733

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
Unrealized gain (loss) on hedging activities (1)
 
(5,075
)
 
(7,283
)
 
26

Net pension liability adjustment (2)
 
460

 
(5,412
)
 
897

Foreign currency translation adjustment
 
(79,873
)
 
(37,069
)
 
(11,191
)
Total other comprehensive income (loss)
 
(84,488
)
 
(49,764
)
 
(10,268
)
Comprehensive income
 
$
155,705

 
$
144,785

 
$
121,465

 
 
 
 
 
 
 
(1) Net of tax benefit of $3,313; $4,755; and $74 for the years ended November 30, 2015, 2014, and 2013, respectively.
(2) Net of tax benefit (expense) of $(558); $3,215; and $(259) for the years ended November 30, 2015, 2014, and 2013, respectively.

See accompanying notes.

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Table of Contents


IHS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
 
Year ended November 30,
 
2015
 
2014
 
2013
Operating activities:

 

 
 
Net income
$
240,193

 
$
194,549

 
$
131,733

Reconciliation of net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
235,501

 
202,145

 
158,737

Stock-based compensation expense
135,386

 
167,359

 
162,451

Impairment of assets
4,626

 

 
1,629

Excess tax benefit from stock-based compensation
(5,494
)
 
(13,297
)
 
(14,334
)
Net periodic pension and postretirement expense
4,478

 
6,774

 
11,619

Pension and postretirement contributions
(5,854
)
 
(13,452
)
 
(13,299
)
Deferred income taxes
(34,927
)
 
(10,285
)
 
(34,312
)
Change in assets and liabilities:

 

 

Accounts receivable, net
56,058

 
36,418

 
(24,427
)
Other current assets
(15,569
)
 
(8,834
)
 
(672
)
Accounts payable
(4,131
)
 
(11,425
)
 
(10,069
)
Accrued expenses
(55
)
 
36,073

 
50,753

Income tax
32,121

 
6,254

 
65,887

Deferred revenue
(34,229
)
 
29,713

 
10,378

Other liabilities
4,535

 
6,107

 
81

Net cash provided by operating activities
612,639

 
628,099

 
496,155

Investing activities:

 

 
 
Capital expenditures on property and equipment
(122,921
)
 
(114,453
)
 
(90,734
)
Acquisitions of businesses, net of cash acquired
(369,908
)
 
(210,395
)
 
(1,487,034
)
Intangible assets acquired

 
(714
)
 

Change in other assets
(3,727
)
 
(4,608
)
 
1,347

Settlements of forward contracts
597

 
6,159

 
4,524

Net cash used in investing activities
(495,959
)
 
(324,011
)
 
(1,571,897
)
Financing activities:

 

 
 
Proceeds from borrowings
550,000

 
2,485,000

 
1,375,000

Repayment of borrowings
(261,152
)
 
(2,817,236
)
 
(268,909
)
Payment of debt issuance costs

 
(18,994
)
 
(17,360
)
Excess tax benefit from stock-based compensation
5,494

 
13,297

 
14,334

Proceeds from the exercise of employee stock options

 

 
549

Repurchases of common stock
(248,868
)
 
(59,928
)
 
(97,164
)
Net cash provided by (used in) financing activities
45,474

 
(397,861
)
 
1,006,450

Foreign exchange impact on cash balance
(22,162
)
 
(11,438
)
 
(17,349
)
Net increase (decrease) in cash and cash equivalents
139,992

 
(105,211
)
 
(86,641
)
Cash and cash equivalents at the beginning of the period
153,156

 
258,367

 
345,008

Cash and cash equivalents at the end of the period
293,148

 
153,156

 
258,367

Less: Cash and cash equivalents associated with discontinued operations at the end of the period
(1,568
)
 

 

Cash and cash equivalents from continuing operations at the end of the period
$
291,580

 
$
153,156

 
$
258,367


See accompanying notes.

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IHS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In thousands)
 
 
Class A Common Stock
 
Additional
Paid-In
Capital
 
 
 
 
 
Accumulated Other
Comprehensive
Loss
 
 
 
Shares Outstanding
 
Amount
 
 
Treasury
Stock
 
Retained
Earnings
 
 
Total
Balance at November 30, 2012
65,578

 
$
676

 
$
681,409

 
$
(139,821
)
 
$
1,088,787

 
$
(46,693
)
 
$
1,584,358

Stock-based award activity
938

 
3

 
64,383

 
37,123

 

 

 
101,509

Excess tax benefit on vested shares

 

 
14,334

 

 

 

 
14,334

Repurchases of common stock
(468
)
 

 

 
(46,189
)
 

 

 
(46,189
)
Shares issued for acquisition
1,334

 

 
28,544

 
102,942

 

 

 
131,486

Net income

 

 

 

 
131,733

 

 
131,733

Other comprehensive income

 

 

 

 

 
(10,268
)
 
(10,268
)
Balance at November 30, 2013
67,382

 
679

 
788,670

 
(45,945
)
 
1,220,520

 
(56,961
)
 
1,906,963

Stock-based award activity
990

 
15

 
154,414

 
(59,928
)
 

 

 
94,501

Excess tax benefit on vested shares

 

 
13,297

 

 

 

 
13,297

Net income

 

 

 

 
194,549

 

 
194,549

Other comprehensive loss

 

 

 

 

 
(49,764
)
 
(49,764
)
Balance at November 30, 2014
68,372

 
694

 
956,381

 
(105,873
)
 
1,415,069

 
(106,725
)
 
2,159,546

Stock-based award activity
810

 
9

 
91,266

 
(10,787
)
 

 

 
80,488

Excess tax benefit on vested shares

 

 
5,494

 

 

 

 
5,494

Repurchases of common stock
(1,658
)
 

 

 
(200,356
)
 

 

 
(200,356
)
Net income

 

 

 

 
240,193

 

 
240,193

Other comprehensive loss

 

 

 

 

 
(84,488
)
 
(84,488
)
Balance at November 30, 2015
67,524

 
$
703

 
$
1,053,141

 
$
(317,016
)
 
$
1,655,262

 
$
(191,213
)
 
$
2,200,877

See accompanying notes.


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IHS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
1.
Nature of Business

We are a leading source of information, insight, and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 140 countries around the globe rely on our comprehensive content, expert independent analysis, and flexible delivery methods. Our aim is to embed our solutions within the entire spectrum of our customers’ organization, enabling executive level capital deployment strategies and following decision-making activities throughout their organizations to front-line employees tasked with managing their company’s complex core daily operations. We have been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005.

Our segments are organized to address customer needs by industry and workflow, as follows:

Resources, which is focused primarily on the Energy and Chemicals industries;
Transportation, which is focused primarily on the Automotive; Maritime & Trade; and Aerospace, Defense & Security industries; and
Consolidated Markets & Solutions (CMS), which is focused primarily on the Product Design; and Economics & Country Risk workflows, as well as the Technology, Media & Telecom industry.

We sell our offerings primarily through subscriptions, which tend to generate recurring revenue and cash flow for us. Our subscription agreements are typically annual and non-cancellable for the term of the subscription and may contain provisions for minimum monthly payments. For subscription revenue, the timing of our cash flows generally precedes the recognition of revenue and income.

Our business has seasonal aspects. Our fourth quarter typically generates our highest quarterly levels of revenue and profit. Conversely, our first quarter generally has our lowest quarterly levels of revenue and profit. We also experience event-driven seasonality in our business; for instance, IHS Energy CERAWeek, an annual energy executive gathering, was held during our second quarter in 2015 and will be held during our first quarter in 2016. 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 2015.

2.
Significant Accounting Policies

Fiscal Year End
Our fiscal year ends on November 30 of each year. References herein to individual years mean the year ended November 30. For example, 2015 means the year ended November 30, 2015.

Consolidation Policy
The consolidated financial statements include the accounts of all wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates have been made in areas that include valuation of long-lived and intangible assets and goodwill, income taxes, pension and postretirement benefits, allowance for doubtful accounts, and stock-based compensation. Actual results could differ from those estimates.

Concentration of Credit Risk
We are exposed to credit risk associated with cash equivalents, foreign currency and interest rate derivatives, and trade receivables. We do not believe that our cash equivalents or investments present significant credit risks because the counterparties to the instruments consist of major financial institutions that are financially sound or have been capitalized by the U.S. government, and we manage the notional amount of contracts entered into with any counterparty. Substantially all trade receivable balances are unsecured. The concentration of credit risk with respect to trade receivables is limited by the large number of customers in our customer base and their dispersion across various industries and geographic areas. We perform ongoing credit evaluations of our customers and maintain an allowance for probable credit losses. The allowance is based upon management’s assessment of known credit risks as well as general industry and economic conditions. Specific accounts

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receivable are written off upon notification of bankruptcy or once the account is significantly past due and our collection efforts are unsuccessful.

Segments
We periodically reassess our identification of operating segments. As a result of changes in our organizational structure in the fourth quarter of 2015, we determined that our operating segments had changed from a geographic view to an industry vertical view. Our chief operating decision maker (CODM) now reviews operating results at the Resources, Transportation, and CMS segment level when determining how to allocate resources and assess performance.

Fair Value Measurements
Fair value is determined based on the assumptions that market participants would use in pricing the asset or liability. We utilize the following fair value hierarchy in determining fair values:

Level 1 – Quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves.

Level 3 – Unobservable inputs reflecting our view about the assumptions that market participants would use in pricing the asset or liability.

Our cash, accounts receivable, and accounts payable are all short-term in nature; therefore, the carrying value of these items approximates their fair value. The carrying value of our debt instruments other than our 5% senior notes due 2022 (5% Notes) approximate their fair value because of the variable interest rate associated with those instruments. The fair value of the 5% Notes is included in Note 8, and is measured using observable inputs in markets that are not active; consequently, we have classified the 5% Notes within Level 2 of the fair value hierarchy. Our derivatives, as further described in Note 7, are measured at fair value on a recurring basis by reference to similar transactions in active markets and observable inputs other than quoted prices; consequently, we have classified those financial instruments within Level 2 of the fair value hierarchy. Our pension plan assets, as further described in Note 13, are measured at fair value on a recurring basis by reference to similar assets in active markets and are therefore also classified within Level 2 of the fair value hierarchy.

Revenue Recognition
Revenue is recognized when all of the following criteria have been met: (a) persuasive evidence of an arrangement exists, (b) delivery has occurred or services have been rendered, (c) the price to the customer is fixed or determinable, and (d) collectibility is reasonably assured.

The majority of our revenue is derived from the sale of subscriptions. Our subscription agreements are typically annual and non-cancellable and may contain provisions for minimum monthly payments. For subscription revenue, the timing of our cash flows generally precedes the recognition of revenue and income, as we defer any initial payments and recognize revenue ratably as delivered over the subscription period.

Revenue is recognized upon delivery for non-subscription sales.

In certain locations, we use dealers to distribute our product offerings. For subscription product offerings sold through dealers, revenue is recognized ratably as delivered to the end user over the subscription period. For non-subscription product offerings sold through dealers, revenue is recognized upon delivery to the dealer.

We do not defer revenue for the limited number of subscription sales where we act as a sales agent for third parties and have no continuing responsibility to maintain and update the underlying database. We recognize this revenue on a net basis upon the sale of these subscriptions and delivery of the information and tools.

Services
We provide our customers with service offerings that are primarily sold on a stand-alone basis and on a significantly more limited basis as part of a multiple-element arrangement. Our service offerings are generally separately priced in a standard price book. For services that are not in a standard price book, as the price varies based on the nature and complexity of the service offering, pricing is based on the estimated amount of time to be incurred at standard billing rates for the estimated underlying effort for executing the associated deliverable in the contract. Revenue related to services performed under time-and-material-based contracts is recognized in the period performed at standard billing rates. Revenue associated with fixed-price contracts is

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recognized upon completion of each specified performance obligation. See discussion of “multiple-element arrangements” below. If the contract includes acceptance contingencies, revenue is recognized in the period in which we receive documentation of acceptance from the customer.

Software
In addition to meeting the standard revenue recognition criteria described above, revenue from software arrangements must also meet the requirement that vendor-specific objective evidence (“VSOE”) of the fair value of undelivered elements exists. As a significant portion of our software licenses are sold in multiple-element arrangements that include either maintenance or, in more limited circumstances, both maintenance and professional services, we use the residual method to determine the amount of license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as license revenue. We recognize license revenue upon delivery, with maintenance revenue recognized ratably over the maintenance period. We have established VSOE of the fair value of maintenance through independent maintenance renewals, which demonstrate a consistent relationship of pricing maintenance as a percentage of the discounted or undiscounted license list price. VSOE of the fair value of professional services is established based on daily rates when sold on a stand-alone basis.

Multiple-element arrangements
Occasionally, we may execute contracts with customers which contain multiple offerings. In our business, multiple-element arrangements refer to contracts with separate fees for subscription offerings, decision-support tools, maintenance, and/or related services. We have established separate units of accounting as each offering is primarily sold on a stand-alone basis. Using the relative selling price method, each element of the arrangement is allocated based generally on stand-alone sales of these products and services, which constitutes VSOE of selling price. We do not use any other factors, inputs, assumptions, or methods to determine an estimated selling price. We recognize the elements of the contract as follows:

Subscription offerings and license fees are recognized ratably over the license period as long as there is an associated licensing period or a future obligation. Otherwise, revenue is recognized upon delivery.
For non-subscription offerings of a multiple-element arrangement, the revenue is generally recognized for each element in the period in which delivery of the product to the customer occurs, completion of services occurs or, for post-contract support, ratably over the term of the maintenance period.
In some instances, customer acceptance is required for consulting services rendered. For those transactions, the service revenue component of the arrangement is recognized in the period that customer acceptance is obtained.

Cash and Cash Equivalents
We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value.

Deferred Subscription Costs
Deferred subscription costs represent royalties and certain dealer commissions associated with customer subscriptions. These costs are deferred and amortized to expense over the period of the subscriptions.

Property and Equipment
Property and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:
 
Buildings and improvements
 
7
to
30
years
Capitalized software
 
3
to
7
years
Computers and office equipment
 
3
to
10
years

Leasehold improvements are depreciated over the shorter of their estimated useful life or the life of the lease. Maintenance, repairs, and renewals of a minor nature are expensed as incurred. Betterments and major renewals which extend the useful lives of buildings, improvements, and equipment are capitalized. We also capitalize certain software development costs in accordance with ASC 350-40, "Accounting for Costs of Computer Software Developed or Obtained for Internal Use" and ASC 985-20, "Software to be Sold, Leased or Otherwise Marketed."

We review the carrying amounts of long-lived assets such as property and equipment whenever current events or circumstances indicate their value may be impaired. A long-lived asset with a finite life is considered to be impaired if its

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carrying value exceeds the estimated future undiscounted cash flows to be derived from it. Any impairment is measured by the amount that the carrying value of such assets exceeds their fair value, primarily based on estimated discounted cash flows. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell.

Leases
In certain circumstances, we enter into leases with free rent periods or rent escalations over the term of the lease. In such cases, we calculate the total payments over the term of the lease and record them ratably as rent expense over that term.

Intangible Assets and Goodwill
We account for our business acquisitions using the purchase method of accounting. We allocate the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. As part of this allocation process, we must identify and attribute values and estimated lives to the intangible assets acquired. We evaluate our intangible assets and goodwill for impairment at least annually, as well as whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Impairments are expensed as incurred.

Finite-lived intangible assets
Identifiable intangible assets with finite lives are generally amortized on a straight-line basis over their respective lives, as follows:
Information databases
 
3
to
15
years
Customer relationships
 
4
to
17
years
Developed computer software
 
5
to
10
years
Trademarks
 
1
to
15
years
Other
 
1
to
8
years

Indefinite-lived intangible assets
When performing the impairment test for indefinite-lived intangible assets, we first conduct a qualitative analysis to determine whether we believe it is more likely than not that an asset has been impaired. If we believe an impairment has occurred, we then evaluate for impairment by comparing the amount by which the carrying value of the asset exceeds its fair value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value.

We estimate the fair value of trademarks based on the relief from royalty method using projected discounted future cash flows, which, in turn, are based on our views of uncertain variables such as growth rates, anticipated future economic conditions, and the appropriate discount rates relative to risk and estimates of residual values. The use of different estimates or assumptions within our discounted cash flow model when determining the fair value of our indefinite-lived intangible assets or using a methodology other than a discounted cash flow model could result in different values for our indefinite-lived intangible assets and could result in an impairment charge.

Goodwill
We test goodwill for impairment on a reporting unit level. A reporting unit is a group of businesses (i) for which discrete financial information is available and (ii) that have similar economic characteristics. We test goodwill for impairment by determining the fair value of each reporting unit and comparing it to the reporting unit's carrying value. We determine the fair value of our reporting units based on projected future discounted cash flows, which, in turn, are based on our views of uncertain variables such as growth rates, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. There were no deficiencies in reporting unit fair values versus carrying values in the fiscal years ended November 30, 2015, 2014, and 2013.

Income Taxes
Deferred income taxes are provided using tax rates enacted for periods of expected reversal on all temporary differences. Temporary differences relate to differences between the book and tax basis of assets and liabilities, principally intangible assets, property and equipment, deferred revenue, pension and other postretirement benefits, accruals, and stock-based compensation. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made.

Judgment is required in determining the worldwide provision for income taxes. Additionally, the income tax provision is based on calculations and assumptions that are subject to examination by many different tax authorities and to changes in tax

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law and rates in many jurisdictions. We adjust our income tax provision in the period in which it becomes probable that actual results will differ from our estimates.

Pension and Other Postretirement Benefits
During the fourth quarter of each fiscal year (or upon any other remeasurement date), we immediately recognize net actuarial gains or losses in excess of a corridor in our operating results. The corridor amount is equivalent to 10 percent of the greater of the market-related value of plan assets or the plan's benefit obligation at the beginning of the year. We use the actual fair value of plan assets at the measurement date as the measure of the market-related value of plan assets.

Treasury Stock
Treasury stock purchases, whether through stock retention or buyback programs and transactions, are recorded at actual cost. Issuances from treasury stock are recorded using the weighted-average cost method.

Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted EPS is computed using the weighted-average number of shares of Class A common stock and dilutive potential shares of Class A common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities were exercised or converted into shares of Class A common stock.

Advertising Costs
Production costs are expensed as of the first date that the advertisements take place. Advertising expense was approximately $44.7 million, $35.2 million, and $12.7 million for the years ended November 30, 2015, 2014, and 2013, respectively, and was primarily comprised of advertising for CARFAX.

Foreign Currency
The functional currency of each of our foreign subsidiaries is typically such subsidiary’s local currency. Assets and liabilities are translated at period-end exchange rates. Income and expense items are translated at weighted-average rates of exchange prevailing during the year. Any translation adjustments are included in other comprehensive income. Transactions executed in currencies other than a subsidiary's functional currency (which result in exchange adjustments) are remeasured at spot rates and resulting foreign-exchange-transaction gains and losses are included in the results of operations.

Stock-Based Compensation
All stock-based awards are recognized in the income statement based on their grant date fair values. In addition, we estimate forfeitures at the grant date. Compensation expense is recognized based on the number of awards expected to vest. We adjust compensation expense in future periods if actual forfeitures differ from our estimates. Our forfeiture rate is based upon historical experience as well as anticipated employee turnover considering certain qualitative factors. We amortize the value of stock-based awards to expense over the vesting period on a straight-line basis. For awards with performance conditions, we evaluate the probability of the number of shares that are expected to vest, and compensation expense is then adjusted to reflect the number of shares expected to vest and the cumulative vesting period met to date.

Recent Accounting Pronouncements
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The ASU is intended to reduce the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The standard will be effective for us in the first quarter of our fiscal year 2016. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements other than changing the classification criteria and related disclosures for any potential future disposals.

In May 2014, the FASB issued 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. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2019, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements, as well as which transition method we intend to use.

In August 2014, the FASB issued ASU 2014-15, which requires that management evaluate the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure is required if there is substantial doubt about the entity's ability to continue as a going concern. The standard will be effective for us in the fourth

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quarter of our fiscal year 2017, 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 April 2015, the FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The standard will be effective for us in the first quarter of our fiscal 2017, although early adoption is permitted. We expect that the only impact of this ASU on our financial statements will be the change in balance sheet presentation of our debt issuance costs.

In April 2015, the FASB issued ASU 2015-05, which provides guidance about a customer's accounting for fees paid in cloud computing arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, the customer should account for the arrangement as a service contract. The standard will be effective for us in the first quarter of our fiscal year 2017, although early adoption is permitted. We anticipate that we will adopt this standard using the prospective transition method, and do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard will be effective for us in the first quarter of our fiscal year 2017, 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 November 2015, the FASB issued ASU No. 2015-17, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. We have early adopted this standard and have applied the requirements retrospectively to all periods presented. The adoption of this standard resulted in the reclassification of $81.8 million from current deferred income tax assets in the consolidated balance sheet as of November 30, 2014 to noncurrent deferred income tax assets ($5.5 million) and noncurrent deferred income tax liabilities ($76.3 million).

3.
Business Combinations

During the year ended November 30, 2015, we completed the following acquisitions, none of which were material either individually or in the aggregate:

JOC Group Inc. (JOC Group). On December 9, 2014, we acquired JOC Group, a global supplier of U.S. seaborne trade intelligence. We acquired JOC Group in support of our strategy to build integrated workflow solutions that target critical industry and government needs relating to global trade.

Infonetics Research, Inc. (Infonetics). On December 15, 2014, we acquired Infonetics, a provider of communications technology market intelligence. We acquired Infonetics to support our objective of providing customers with a global, end-to-end view of the information and communications technology supply chain.

Rushmore Associates Limited (Rushmore Reviews). On February 3, 2015, we acquired Rushmore Reviews, a service provider for drilling and completions solutions in the oil and gas industry. We acquired Rushmore Reviews in order to complement our existing set of well information assets and expand them globally.

Dataium. On March 25, 2015, we acquired Dataium, a U.S.-based company that provides business intelligence and analysis to the automotive industry. We acquired Dataium in order to enhance our automotive offerings with Dataium's compilation and analysis of online automotive shopping behavior and markets.

Root Wireless, Inc. (RootMetrics). On April 17, 2015, we acquired RootMetrics, a provider of mobile network analytics. We acquired RootMetrics in order to strengthen our position in telecommunications analytics and market intelligence, particularly related to the mobile user experience.


47


The following table summarizes the preliminary purchase price allocation, net of acquired cash, for all acquisitions completed in 2015 (in thousands):
 
Total
Assets:
 
Current assets
$
18,414

Property and equipment
1,890

Intangible assets
139,422

Goodwill
271,070

Other long-term assets
1,985

Total assets
432,781

Liabilities:
 
Current liabilities
1,677

Deferred revenue
18,052

Deferred taxes
43,026

Other long-term liabilities
118

Total liabilities
62,873

Purchase price
$
369,908


In December 2015, we acquired CARPROOF, a Canada-based company that offers products and services in vehicle history, appraisal, and valuation for the automotive industry, for approximately $460 million, net of cash acquired. We financed this acquisition through a combination of cash and borrowings under our revolving credit facility. In January 2016, we announced that we had signed a definitive agreement to acquire OPIS, an internationally referenced pricing reporting agency that serves the oil, natural gas, and biofuels industries, for $650 million. We expect to finance this transaction with additional bank borrowings.

During the year ended November 30, 2014, we completed the following acquisitions, none of which were material either individually or in the aggregate:

Global Trade Information Services (GTI). On August 1, 2014, we acquired GTI, a leading provider of international merchandise trade data. We acquired GTI in order to support our strategy of building integrated workflow solutions that target industry needs related to global trade.

PCI Acrylonitrile Limited (PCI Acrylonitrile). On August 28, 2014, we acquired PCI Acrylonitrile, a provider of information and analysis on the acrylonitrile propylene derivative product. We acquired PCI Acrylonitrile in order to strengthen our position in chemical market advisory services.

DisplaySearch and Solarbuzz. On November 6, 2014, we acquired the DisplaySearch and Solarbuzz businesses of The NPD Group. DisplaySearch conducts global primary research in display technology and Solarbuzz provides market intelligence, research, and forecasting for the solar industry. We acquired these two businesses in order to strengthen our supply chain offerings for displays and to help us develop new offerings in the solar market.

PacWest Consulting Partners (PacWest). On November 17, 2014, we acquired PacWest, a provider of information, market intelligence, and strategic analysis to the upstream unconventional oil and gas industry. We acquired PacWest in order to expand our presence in the hydraulic fracturing and related unconventional space.


48


The following table summarizes the purchase price allocation, net of acquired cash, for these acquisitions (in thousands):
 
 
Total
Assets:
 
 
Current assets
 
$
6,574

Property and equipment
 
345

Intangible assets
 
88,465

Goodwill
 
130,267

Other long-term assets
 
31

Total assets
 
225,682

Liabilities:
 
 
Current liabilities
 
632

Deferred revenue
 
14,322

Other long-term liabilities
 
333

Total liabilities
 
15,287

Purchase price
 
$
210,395


During 2013, we completed the following acquisitions, among others:

Exclusive Analysis and the business of Dodson Data Systems. On December 12, 2012, we announced the completion of two strategic acquisitions: Exclusive Analysis, a specialist intelligence company that forecasts political and violent risks worldwide, and the business of Dodson Data Systems, a leading provider of strategic information for companies engaged in oil and gas operations located in the Gulf of Mexico and the United States. We acquired these two businesses in order to augment our existing product portfolio by providing our customers with additional information, forecasting, and analytics.

Energy Publishing Inc. (Energy Publishing). On December 31, 2012, we acquired Energy Publishing, a leading provider of North American and Australasian coal intelligence. We acquired Energy Publishing in order to strengthen our position in coal intelligence and give us an immediate presence and deep coverage in North American and Australasian coal markets, complementing our existing global Energy and Power product offerings.

Fekete Associates. On April 5, 2013, we acquired Fekete Associates, a leading provider of integrated reservoir management software and services to the oil and gas industry. We acquired Fekete in order to combine Fekete's workflow tools with our existing energy information products to create efficiencies for customers by helping them make timely exploration and production decisions.

Waterborne Energy. On May 13, 2013, we acquired Waterborne Energy, a company that provides global research, analysis, and price information in the Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) sector. We acquired Waterborne in order to help us provide our customers with comprehensive and complete LPG and LNG intelligence that will aid them in making key business decisions regarding demand, supply, and pricing.

PFC Energy. On June 19, 2013, we acquired PFC Energy, a provider of upstream and downstream energy information, research, and analysis. We acquired PFC Energy because of its product offering set, geographical footprint, and customer relationships, all of which are complementary to IHS and bring greater depth and breadth in key areas of the IHS energy solution set.

R. L. Polk & Co. (Polk). On July 15, 2013, we acquired Polk, a recognized leader in providing automotive information and analytics solutions, for approximately $1.4 billion, consisting of approximately $1.25 billion in cash, net of cash acquired, and 1,334,477 shares of our common stock (at a value of $131.5 million), which we issued from our treasury stock. The cash portion of the transaction was funded with cash on hand, cash from our amended existing revolving credit facility, and a new bank term loan. We acquired Polk in order to further establish our automotive business as a strategic partner for the automotive industry worldwide.

We have included revenue and expenses attributable to Polk in the appropriate geographic segment (principally the Americas) from the date of acquisition. The Polk acquisition contributed $165.9 million of revenue and $14.4 million of income from continuing operations for the post-acquisition period ended November 30, 2013.

49



The following unaudited pro forma information has been prepared as if the Polk acquisition had been consummated at December 1, 2011. This information is presented for informational purposes only, and is not necessarily indicative of the operating results that would have occurred if the acquisition had been consummated as of that date. This information should not be used as a predictive measure of our future financial position, results of operations, or liquidity.

Supplemental pro forma financial information (Unaudited)
 
Year ended November 30, 2013
 
 
(In thousands, except per share data)
Total revenue
 
$
2,105,314

Net income
 
$
102,107

Diluted earnings per share
 
$
1.50


The 2013 pro forma net income excludes $26.4 million of one-time change in control and transaction costs.

The following table summarizes the purchase price allocation, net of acquired cash, for all acquisitions completed in 2013 (in thousands):

 
Polk
 
All others
 
Total
Assets:
 
 
 
 
 
Current assets
$
87,076

 
$
16,524

 
$
103,600

Property and equipment
32,311

 
2,759

 
35,070

Intangible assets
620,700

 
83,646

 
704,346

Goodwill
935,450

 
170,224

 
1,105,674

Other long-term assets
11,032

 
210

 
11,242

Total assets
1,686,569

 
273,363

 
1,959,932

Liabilities:
 
 
 
 
 
Current liabilities
53,785

 
29,673

 
83,458

Deferred taxes
243,842

 
4,250

 
248,092

Other long-term liabilities
8,926

 
936

 
9,862

Total liabilities
306,553

 
34,859

 
341,412

Purchase price
$
1,380,016

 
$
238,504

 
$
1,618,520


4.
Accounts Receivable

Our accounts receivable balance consists of the following as of November 30, 2015 and 2014 (in thousands):

 
 
2015
 
2014
Accounts receivable
 
$
368,371

 
$
433,586

Less: Accounts receivable allowance
 
(12,458
)
 
(12,212
)
Accounts receivable, net
 
$
355,913

 
$
421,374


We record an accounts receivable allowance when it is probable that the accounts receivable balance will not be collected. The amounts comprising the allowance are based upon management’s estimates and historical collection trends. The activity in our accounts receivable allowance consists of the following for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

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Table of Contents

 
 
2015
 
2014
 
2013
Balance at beginning of year
 
$
12,212

 
$
10,988

 
$
4,346

Provision for bad debts
 
13,444

 
12,487

 
9,496

Other additions
 
2,434

 
1,052

 
2,133

Write-offs and other deductions
 
(15,632
)
 
(12,315
)
 
(4,987
)
Balance at end of year
 
$
12,458

 
$
12,212

 
$
10,988


5.
Property and Equipment

Property and equipment consists of the following as of November 30, 2015 and 2014 (in thousands):
 
 
2015
 
2014
Land, buildings and improvements
 
$
115,144

 
$
114,618

Capitalized software
 
374,833

 
308,179

Computers and office equipment
 
121,919

 
127,202

Property and equipment, gross
 
611,896

 
549,999

Less: Accumulated depreciation
 
(297,530
)
 
(248,580
)
Property and equipment, net
 
$
314,366

 
$
301,419


Depreciation expense was $85.0 million, $65.0 million, and $46.0 million for the years ended November 30, 2015, 2014, and 2013, respectively.

6.
Intangible Assets

The following table presents details of our acquired intangible assets, other than goodwill (in thousands): 
 
As of November 30, 2015
 
As of November 30, 2014
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
Information databases
$
595,219

 
$
(233,729
)
 
$
361,490

 
$
607,655

 
$
(210,105
)
 
$
397,550

Customer relationships
540,467

 
(135,352
)
 
405,115

 
511,680

 
(116,138
)
 
395,542

Developed computer software
84,918

 
(35,988
)
 
48,930

 
138,940

 
(63,561
)
 
75,379

Trademarks
166,301

 
(34,777
)
 
131,524

 
163,739

 
(22,937
)
 
140,802

Other
14,837

 
(5,802
)
 
9,035

 
29,579

 
(8,844
)
 
20,735

Total
1,401,742

 
(445,648
)
 
956,094

 
1,451,593

 
(421,585
)
 
1,030,008

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
Trademarks
58,597

 

 
58,597

 
61,101

 

 
61,101

Total intangible assets
$
1,460,339

 
$
(445,648
)
 
$
1,014,691

 
$
1,512,694

 
$
(421,585
)
 
$
1,091,109



51


Intangible asset amortization expense was $130.1 million, $116.3 million, and $93.0 million for the years ended November 30, 2015, 2014, and 2013, respectively. Estimated future amortization expense related to intangible assets held as of November 30, 2015 is as follows (in thousands):
Year
 
Amount
2016
 
$
126,058

2017
 
$
114,155

2018
 
$
101,815

2019
 
$
89,539

2020
 
$
81,395

Thereafter
 
$
443,132


Changes in our goodwill and gross intangible assets from November 30, 2014 to November 30, 2015 were primarily the result of our recent acquisition activities, partially offset by the writeoff of fully amortized intangible assets that are no longer in service, as well as the reclassification of assets held for sale. The change in net intangible assets was primarily due to current year amortization, partially offset by the addition of intangible assets associated with the acquisitions described in Note 3, Business Combinations. Goodwill, gross intangible assets, and net intangible assets were all subject to foreign currency translation effects.

7.
Derivatives

Our business is exposed to various market risks, including interest rate and foreign currency risks. We utilize derivative instruments to help us manage these risks. We do not hold or issue derivatives for speculative purposes.

Interest Rate Swaps

To mitigate interest rate exposure on our outstanding revolving facility debt, we utilize interest rate derivative contracts that effectively swap $400 million of floating rate debt at a 2.86 percent weighted-average fixed interest rate, plus the applicable spread on our floating rate debt. We entered into these swap contracts in November 2013 and January 2014, and the contracts expire between May and November 2020.

Because the terms of these swaps and the variable rate debt (as amended or extended over time) coincide, we do not expect any ineffectiveness. We have designated and accounted for these instruments as cash flow hedges, with changes in fair value being deferred in accumulated other comprehensive income/loss (AOCI) in our consolidated balance sheets.

Foreign Currency Forwards

To mitigate foreign currency exposure, we utilize the following derivative instruments:

Foreign currency forward contracts that hedge the foreign currency exposure on Euro-denominated receipts and British Pound-denominated expenses. Because the critical terms of the forward contracts and the forecasted cash flows coincide, we do not expect any ineffectiveness associated with these contracts. We designated and accounted for these derivatives as cash flow hedges, with changes in fair value being deferred in AOCI in our consolidated balance sheets. There were no outstanding foreign currency forwards under these agreements as of November 30, 2015, and the notional amount of outstanding foreign currency forwards under these agreements as of November 30, 2014 was approximately $11.0 million.

Short-term foreign currency forward contracts that manage market risks associated with fluctuations in balances that are denominated in currencies other than the local functional currency. We account for these forward contracts at fair value and recognize the associated realized and unrealized gains and losses in other expense (income), net, on the consolidated statements of operations, since we have not designated these contracts as hedges for accounting purposes. The following table summarizes the notional amounts of these outstanding foreign currency forward contracts as of November 30, 2015 and 2014 (in thousands):


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Table of Contents

 
 
November 30, 2015
 
November 30, 2014
Notional amount of currency pair:
 
 
 
 
Contracts to buy USD with CAD
 
$

 
$
51,194

Contracts to buy CAD with USD
 
C$
9,290

 
C$

Contracts to buy CAD with GBP
 
C$

 
C$
50,000

Contracts to buy USD with EUR
 
$
8,508

 
$
12,517

Contracts to buy CHF with USD
 
CHF
19,000

 
CHF
9,000

Contracts to buy GBP with EUR
 
£
3,495

 
£
4,774

Contracts to buy USD with GBP
 
$

 
$
48,000

Contracts to buy GBP with USD
 
£
7,231

 
£

Contracts to buy USD with JPY
 
$

 
$
8,778

Contracts to buy USD with KRW
 
$

 
$
10,000


Fair Value of Derivatives

Since our derivative instruments are not listed on an exchange, we have evaluated fair value by reference to similar transactions in active markets; consequently, we have classified all of our derivative instruments within Level 2 of the fair value measurement hierarchy. The following table shows the classification, location, and fair value of our derivative instruments as of November 30, 2015 and 2014 (in thousands):

 
 
Fair Value of Derivative Instruments
 
 
 
 
November 30, 2015
 
November 30, 2014
 
Balance Sheet Location
Assets:
 
 
 
 
 
 
Derivatives designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
$

 
$
987

 
Other current assets
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
51

 
1,005

 
Other current assets
Total
 
$
51

 
$
1,992

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Derivatives designated as accounting hedges:
 
 
 
 
 
 
Interest rate swaps
 
$
24,345

 
$
16,662

 
Other accrued expenses and other liabilities
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
363

 
475

 
Other accrued expenses
Total
 
$
24,708

 
$
17,137

 
 

The net gain (loss) on foreign currency forwards that are not designated as hedging instruments for the years ended November 30, 2015, 2014, and 2013, respectively, was as follows (in thousands):

 
 
 
 
Amount of (gain) loss recognized in the consolidated statements of operations
 
 
Location on consolidated statements of operations
 
2015
 
2014
 
2013
Foreign currency forwards
 
Other expense (income), net
 
$
4,912

 
$
(6,293
)
 
$
(5,372
)


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Table of Contents

The following table provides information about the cumulative amount of unrecognized hedge losses recorded in AOCI as of November 30, 2015 and November 30, 2014, as well as the activity on our cash flow hedging instruments for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
 
Year ended November 30,
 
 
2015
 
2014
 
2013
Beginning balance
 
$
(9,482
)
 
$
(2,199
)
 
$
(2,225
)
Amount of gain (loss) recognized in AOCI on derivative:
 
 
 
 
 
 
Interest rate swaps
 
(6,528
)
 
(8,941
)
 
(797
)
Foreign currency forwards
 
879

 
598

 
(153
)
Amount of loss (gain) reclassified from AOCI into income:
 
 
 
 
 
 
Interest rate swaps (1)
 
1,879

 
950

 
935

Foreign currency forwards (1)
 
(1,305
)
 
110

 
41

Ending balance
 
$
(14,557
)
 
$
(9,482
)
 
$
(2,199
)
 
 
 
 
 
 
 
(1) Amounts reclassified from AOCI into income related to interest rate swaps are recorded in interest expense, and amounts reclassified from AOCI into income related to foreign currency forwards are recorded in revenue.

The unrecognized gains relating to the foreign currency forwards are expected to be reclassified into revenue within the next 12 months, and approximately $8.5 million of the $24.3 million unrecognized losses relating to the interest rate swaps are expected to be reclassified into interest expense within the next 12 months.

8.
Debt

The following table summarizes total indebtedness as of November 30, 2015 and 2014 (in thousands):
 
 
November 30, 2015
 
November 30, 2014
2013 term loan
 
665,000

 
700,000

2014 revolving facility
 
710,000

 
385,000

5% senior notes due 2022
 
750,000

 
750,000

Capital leases
 
6,202

 
7,355

Total debt
 
$
2,131,202

 
$
1,842,355

Current portion
 
(36,019
)
 
(36,257
)
Total long-term debt
 
$
2,095,183

 
$
1,806,098


2013 term loan. In October 2014, we amended and restated our $700 million senior unsecured amortizing term loan agreement originally entered into in the third quarter of 2013 (2013 term loan). The 2013 term loan has a maturity date of October 2019. The interest rates for borrowings under the 2013 term loan are the applicable LIBOR plus a spread of 1.00 percent to 1.75 percent, depending upon our Leverage Ratio, which is defined as the ratio of Consolidated Funded Indebtedness to rolling four-quarter Consolidated Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA), as such terms are defined in the term loan agreement.

2014 revolving facility. In October 2014, we entered into a $1.3 billion senior unsecured revolving credit agreement (2014 revolving facility). Commitments of $500 million are available for borrowing by certain of our foreign subsidiaries and $50 million is available for letters of credit. Subject to certain conditions, the 2014 revolving facility may be expanded by up to $500 million in the aggregate in additional commitments. Borrowings under the 2014 revolving facility mature in October 2019 and bear interest at the same rates and spreads as the 2013 term loan. A commitment fee on any unused balance is payable periodically and ranges from 0.13 percent to 0.30 percent based upon our Leverage Ratio. We had approximately $1.8 million of outstanding letters of credit under the 2014 revolving facility as of November 30, 2015, which reduces the available borrowing under the 2014 revolving facility by an equivalent amount.

Both the 2013 term loan and the 2014 revolving facility contains certain financial and other covenants, including a maximum Leverage Ratio and a minimum Interest Coverage Ratio, as such terms are defined in the respective agreements. Both agreements allow for leverage up to 3.5x, with the ability to temporarily increase that leverage to 3.75x for two quarters.

54



5% Notes. In October 2014, we issued $750 million aggregate principal amount of senior unsecured notes due 2022 in an offering not subject to the registration requirements of the Securities Act of 1933, as amended. The net proceeds from the 5% Notes were used to repay all amounts outstanding under the 2012 term loan and a portion of amounts borrowed under the 2014 revolving facility. The 5% Notes bear interest at a fixed rate of 5.00% and mature on November 1, 2022. Interest on the 5% Notes is due semiannually on May 1 and November 1 of each year, commencing May 1, 2015. We may redeem the 5% Notes in whole or in part at a redemption price equal to 100% of the principal amount of the notes plus the Applicable Premium, as defined in the indenture governing the 5% Notes. Additionally, at the option of the holders of the notes, we may be required to purchase all or a portion of the notes upon occurrence of a Change of Control Triggering Event as defined in the indenture, at a price equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The indenture contains covenants that limit our ability to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the indenture contains a covenant that limits our ability to consolidate or merge with another entity or to sell all or substantially all of our assets to another entity. The indenture contains customary default provisions. The fair value of the 5% Notes as of November 30, 2015 was approximately $776 million.

For the year ended November 30, 2014, as a result of the 5% Notes issuance, 2014 revolving facility agreement, and amendment and restatement of the 2013 term loan, we capitalized approximately $18.8 million of new debt issuance costs and recorded a $1.4 million loss on debt extinguishment associated with a portion of prior capitalized debt issuance costs.

As of November 30, 2015, we were in compliance with all of our debt covenants. As discussed in Note 3, in January 2016, we announced that we had signed a definitive agreement to acquire OPIS. Upon completion of the OPIS acquisition, which is expected to occur during the first quarter of 2016, our resulting gross leverage would exceed the maximum Leverage Ratio permitted under the 2014 revolving facility; consequently, we have obtained a credit facility backstop and will pursue an amendment from our bank group prior to closing OPIS, which will allow us to exceed our current 3.75x limit.

We have classified short-term debt based on principal maturities. As of November 30, 2015, we had approximately $710 million of outstanding borrowings under the 2014 revolving facility at a current annual interest rate of 1.70 percent and approximately $665 million of outstanding borrowings under the 2013 term loan at a current weighted average annual interest rate of 3.32 percent, including the effect of the interest rate swaps described in Note 7.

Maturities of outstanding borrowings under the 2013 term loan and 5% Notes as of November 30, 2015 are as follows (in thousands):
Year
 
Amount
2016
 
$
35,000

2017
 
70,000

2018
 
70,000

2019
 
490,000

2020
 

Thereafter
 
750,000

 
 
$
1,415,000



9.
Restructuring Charges

During 2013, we consolidated positions to our accounting and customer care Centers of Excellence (COE) locations as we completed successive ERP releases, as well as eliminated positions to accomplish other operational efficiencies. We also continued the consolidation of our legacy data centers in 2013, which included certain contract termination costs. We recorded approximately $11.7 million of restructuring charges for these activities. The activities included the movement or elimination of 245 positions. Of the total charge, approximately $5.8 million of the charge was recorded in the Resources segment, approximately $1.6 million was recorded in the Transportation segment, and approximately $4.3 million was recorded in the CMS segment.


55


During 2014, we eliminated 168 positions and incurred additional direct and incremental costs related to identified operational efficiencies, continued consolidation of positions to our COE locations, and further consolidation of our legacy data centers. We recorded approximately $8.8 million of restructuring charges for these activities. Of these charges, approximately $3.5 million was recorded in the Resources segment, $2.5 million was recorded in the Transportation segment, and $2.8 million was recorded in the CMS segment.

During 2015, we eliminated 460 positions and incurred additional direct and incremental costs related to identified operational efficiencies (including lease abandonments), continued consolidation of positions to our COE locations, and further consolidation of our legacy data centers, particularly as we realigned to our new segment structure and simplified and reduced our centralized marketing, sales support, and shares services cost structures. We recorded approximately $39.4 million of restructuring charges for these activities. Of these charges, approximately $22.6 million was recorded in the Resources segment, $7.5 million was recorded in the Transportation segment, and $9.3 million was recorded in the CMS segment. We expect to continue to incur costs related to these and other similar activities in future periods, resulting in additional restructuring charges.

The following table shows our restructuring activity and provides a reconciliation of the restructuring liability as of November 30, 2015 (in thousands):
 
Employee
Severance and
Other
Termination
Benefits
 
Contract
Termination
Costs
 
Other
 
Total
Balance at November 30, 2012
$
3,163

 
$
1,503

 
$
59

 
$
4,725

Add: Restructuring costs incurred
12,177

 
525

 
450

 
13,152

Revision to prior estimates
(1,498
)
 
75

 

 
(1,423
)
Less: Amount paid
(11,273
)
 
(2,000
)
 
(486
)
 
(13,759
)
Balance at November 30, 2013
2,569

 
103

 
23

 
2,695

Add: Restructuring costs incurred
8,437

 
396

 
1,269

 
10,102

Revision to prior estimates
(1,586
)
 
259

 

 
(1,327
)
Less: Amount paid
(6,453
)
 
(741
)
 
(1,152
)
 
(8,346
)
Balance at November 30, 2014
2,967

 
17

 
140

 
3,124

Add: Restructuring costs incurred
32,209

 
7,365

 
1,381

 
40,955

Revision to prior estimates
(1,597
)
 

 

 
(1,597
)
Less: Amount paid
(25,059
)
 
(1,164
)
 
(1,413
)
 
(27,636
)
Balance at November 30, 2015
$
8,520

 
$
6,218

 
$
108

 
$
14,846


As of November 30, 2015, approximately $9.1 million of the remaining liability was in the Resources segment, approximately $3.5 million was in the Transportation segment, and approximately $2.2 million was in the CMS segment. Approximately $11.1 million of the balance is expected to be paid in 2016; the remaining amount relates to lease abandonments that will be paid over the remaining lease periods through 2018 and 2021, respectively.
 
10.
Acquisition-related Costs

During 2013, we incurred approximately $23.4 million in costs associated with acquisitions, primarily related to the Polk acquisition. Acquisition-related costs for 2013 included investment adviser fees, severance, a lease abandonment, and legal and professional fees. Certain of these costs were incurred for a transaction that we chose not to consummate. Approximately $1.1 million of the costs were incurred in the Resources segment, $18.7 million of the costs were incurred in the Transportation segment, $2.1 million of the costs were incurred in the CMS segment, and $1.5 million of the costs were allocated to shared services.

During 2014, we incurred approximately $1.9 million in costs associated with acquisitions, including severance, lease abandonments, and professional fees. Approximately $0.8 million of the costs were incurred in the Resources segment, $0.6 million of the costs were incurred in the Transportation segment, and $0.5 million of the costs were incurred in the CMS segment.


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Table of Contents

During 2015, we incurred approximately $1.5 million in costs associated with acquisitions, including severance, lease abandonments, and professional fees. Certain of these costs were incurred for a transaction that we chose not to consummate. Approximately $0.9 million of the total charge was recorded in the Resources segment and $0.6 million was allocated to shared services.

The following table provides a reconciliation of the acquisition-related costs accrued liability as of November 30, 2015 (in thousands):
 
Employee
Severance and
Other
Termination
Benefits
 
Contract
Termination
Costs
 
Other
 
Total
Balance at November 30, 2012
$
584

 
$
84

 
$

 
$
668

Add: Costs incurred
7,828

 
1,291

 
14,487

 
23,606

Revision to prior estimates
(114
)
 
(44
)
 
(20
)
 
(178
)
Less: Amount paid
(2,439
)
 
(1,130
)
 
(14,396
)
 
(17,965
)
Balance at November 30, 2013
$
5,859

 
$
201

 
$
71

 
$
6,131

Add: Costs incurred
897

 
515

 
702

 
2,114

Revision to prior estimates
(230
)
 
17

 

 
(213
)
Less: Amount paid
(5,940
)
 
(618
)
 
(356
)
 
(6,914
)
Balance at November 30, 2014
$
586

 
$
115

 
$
417

 
$
1,118

Add: Costs incurred

 
166

 
1,360

 
1,526

Revision to prior estimates
(30
)
 
11

 
(35
)
 
(54
)
Less: Amount paid
(556
)
 
(157
)
 
(1,437
)
 
(2,150
)
Balance at November 30, 2015
$

 
$
135

 
$
305

 
$
440


As of November 30, 2015, the $0.4 million remaining liability was primarily in the Transportation segment, and we expect that it will be substantially paid in 2016.

11.
Discontinued Operations

Operating results for discontinued operations for the years ended November 30, 2015, 2014, and 2013, respectively, were as follows (in thousands):
 
 
2015
 
2014
 
2013
Revenue
 
$
129,956

 
$
151,007

 
$
148,629

 
 
 
 
 
 
 
Income from discontinued operations before income taxes
 
$
15,887

 
$
26,109

 
$
24,067

Tax benefit (expense)
 
35,368

 
(9,522
)
 
(8,850
)
Income from discontinued operations, net
 
$
51,255

 
$
16,587

 
$
15,217


In October 2015, we announced our intent to divest our OE&RM and GlobalSpec product groups, which are components of our CMS segment, due to a recent portfolio evaluation where we determined that these product groups no longer aligned with our strategic goals. OE&RM is also one of our reporting units. We launched the sales process for both product groups in November 2015 and anticipate completion of the divestitures within the next 12 months. As part of the fair value analysis for these discontinued operations, we determined that there was an impairment related to GlobalSpec based on the expected selling price for GlobalSpec; consequently, we recorded an impairment loss of approximately $3.4 million in the income from discontinued operations, net, caption of the consolidated statements of operations. The tax benefit includes recognition of a $42.4 million deferred tax asset for the difference between the book value of stock and the tax value of stock.


57


The following table provides the components of assets and liabilities held for sale as of November 30, 2015 (in thousands):
Current assets
 
$
19,505

Property and equipment, net
 
16,391

Intangible assets, net
 
58,298

Goodwill
 
99,183

Assets held for sale
 
$
193,377

 
 
 
Current liabilities
 
$
1,255

Deferred revenue
 
19,576

Deferred income taxes
 
11,266

Liabilities held for sale
 
$
32,097



12.
Income Taxes

The amounts of income from continuing operations before income taxes by U.S. and foreign jurisdictions for the years ended November 30, 2015, 2014, and 2013, respectively, is as follows (in thousands):

 
2015
 
2014
 
2013
U.S.
$
26,096

 
$
(2,271
)
 
$
(57,257
)
Foreign
211,695

 
225,359

 
187,920

Income from continuing operations before income taxes
$
237,791

 
$
223,088

 
$
130,663


The provision for income taxes from continuing operations for the years ended November 30, 2015, 2014, and 2013, respectively, is as follows (in thousands):

 
2015
 
2014
 
2013
Current:
 
 
 
 
 
U.S.
$
3,574

 
$
14,252

 
$
10,021

Foreign
41,420

 
34,261

 
35,214

State
(3,654
)
 
6,898

 
3,224

Total current
41,340

 
55,411

 
48,459

Deferred:
 
 
 
 
 
U.S.
8,665

 
(8,688
)
 
(24,313
)
Foreign
(5,410
)
 
1,234

 
(7,336
)
State
4,258

 
(2,831
)
 
(2,663
)
Total deferred
7,513

 
(10,285
)
 
(34,312
)
Provision for income taxes
$
48,853

 
$
45,126

 
$
14,147


The following table presents the reconciliation of the provision for income taxes to the U.S. statutory tax rate for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):


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Table of Contents

 
2015
 
2014
 
2013
Statutory U.S. federal income tax
$
83,227

 
$
78,081

 
$
45,732

State income tax, net of federal benefit
(1,157
)
 
2,025

 
(752
)
Foreign rate differential
(47,738
)
 
(68,236
)
 
(62,190
)
Tax rate change
(33
)
 
366

 
5,286

Valuation allowance
12,407

 
25,503

 
29,288

Change in reserves
106

 
28

 
(1,387
)
Other
2,041

 
7,359

 
(1,830
)
Provision for income taxes
$
48,853

 
$
45,126

 
$
14,147

Effective tax rate expressed as a percentage of pre-tax earnings
20.5
%
 
20.2
%
 
10.8
%

The tax rate change reflects the impact of legislative changes to statutory rates as well as the impact of acquisitions on our global footprint and the related measurement of deferred taxes.

Undistributed earnings of our foreign subsidiaries were approximately $747.5 million at November 30, 2015. Those earnings are considered to be indefinitely reinvested, and do not include earnings from certain subsidiaries which are considered distributed. Accordingly, no provision for U.S. federal and state income taxes has been provided for those earnings. If we were to repatriate those earnings, in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable due to the complexity associated with the hypothetical calculation.

The significant components of deferred tax assets and liabilities as of November 30, 2015 and 2014 are as follows (in thousands):

 
2015
 
2014
Deferred tax assets:
 
 
 
Accruals and reserves
$
20,682

 
$
21,299

Deferred revenue
72

 
1,654

Pension and postretirement benefits
10,220

 
12,708

Tax credits
19,529

 
9,787

Deferred stock-based compensation
45,695

 
52,052

Tax benefit from outside basis difference (1)
42,440

 

Loss carryforwards
107,304

 
85,706

Other
16,809

 
10,657

Gross deferred tax assets
262,751

 
193,863

Valuation allowance
(78,830
)
 
(66,232
)
Realizable deferred tax assets
183,921

 
127,631

Deferred tax liabilities:
 
 
 
Fixed assets
(64,398
)
 
(18,107
)
Intangibles
(372,417
)
 
(375,163
)
Gross deferred tax liabilities
(436,815
)
 
(393,270
)
Net deferred tax liability
$
(252,894
)
 
$
(265,639
)
 
 
 
 
(1)  As a result of meeting the discontinued operations criteria for GlobalSpec, we have recognized the benefit of the related outside basis difference.

As of November 30, 2015, we had loss carryforwards for tax purposes totaling approximately $340.0 million, comprised of $72.2 million of U.S. net operating loss carryforwards and $267.8 million of foreign loss carryforwards, both of which will be available to offset future taxable income. If not used, the U.S. net operating loss carryforwards will begin to expire in 2018

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and the foreign tax loss carryforwards generally may be carried forward indefinitely. We have analyzed the net operating losses and placed valuation allowances on those where we have determined the realization is not more likely than not to occur.

As of November 30, 2015, we had approximately $16.3 million of foreign tax credit (FTC) carryforwards and approximately $4.4 million of research and development (R&D) credit carryforwards, both of which will be available to offset future U.S. tax liabilities. If not used, the FTC carryforwards will expire between 2023 and 2025, and the R&D credit carryforwards will expire between 2032 and 2034. We believe that it is more likely than not that we will realize our FTC and R&D tax credit assets.

The valuation allowance for deferred tax assets increased by $12.6 million in 2015. The increase is primarily attributable to foreign net operating losses, incurred and acquired, for which there is no objective indication that taxable income of the foreign entity will be generated in the future. We expect that the capital loss on the sale of GlobalSpec will be utilized through the capital gain on the sale of OE&RM.
 
We have provided what we believe to be an appropriate amount of tax for items that involve interpretation of the tax law. However, events may occur in the future that will cause us to reevaluate our current reserves and may result in an adjustment to the reserve for taxes.

A summary of the activities associated with our reserve for unrecognized tax benefits, interest, and penalties follows (in thousands):
 
Unrecognized Tax Benefits
 
Interest and Penalties
Balance at November 30, 2014
$
1,659

 
$
553

Additions:
 
 
 
Current year tax positions
700

 

Prior year tax positions
67

 

Associated with interest

 
98

Decreases:
 
 
 
Lapse of statute of limitations
(165
)
 
(61
)
Prior year tax positions
(554
)
 
(183
)
Balance at November 30, 2015
$
1,707

 
$
407


As of November 30, 2015, the total amount of unrecognized tax benefits was $2.1 million, of which $0.4 million related to interest and penalties. We include accrued interest and accrued penalties related to amounts accrued for unrecognized tax benefits in our provision for income taxes. The entire amount of unrecognized benefits at November 30, 2015 may affect the annual effective tax rate if the benefits are eventually recognized.

It is reasonably possible that we will experience a $0.5 million decrease in the reserve for unrecognized tax benefits within the next 12 months. We would experience this decrease in relation to uncertainties associated with the expiration of applicable statutes of limitation.

We and our subsidiaries file federal, state, and local income tax returns in multiple jurisdictions around the world. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years before 2011.

13.
Pensions and Postretirement Benefits

Defined Benefit Plans

We sponsor the following defined benefit plans:

A frozen, non-contributory defined-benefit retirement plan (the U.S. RIP) for certain of our U.S. employees.
A frozen defined-benefit pension plan (the U.K. RIP) that covers certain employees of a subsidiary based in the United Kingdom.
A frozen, unfunded Supplemental Income Plan (SIP), which is a non-qualified pension plan, for certain U.S. employees who earn over a federally stipulated amount.


60


Benefits for all three plans are generally based on years of service and either average or cumulative base compensation, depending on the plan. Plan funding strategies are influenced by employee benefit laws and tax laws. The U.K. RIP includes a provision for employee contributions and inflation-based benefit increases for retirees. We expect to contribute approximately $3 million to our pension and postretirement benefit plans in 2016.

The following table provides the expected benefit payments for our pension plans (in thousands):

 
 
Total
2016
 
$
12,012

2017
 
$
12,078

2018
 
$
11,563

2019
 
$
11,634

2020
 
$
11,312

2021-2025
 
$
56,040


Our net periodic pension expense for the pension plans consisted of the following (in thousands): 

 
Year Ended November 30,
 
2015
 
2014
 
2013
Service costs incurred
$
1,981

 
$
8,356

 
$
10,420

Interest costs on projected benefit obligation
8,300

 
8,442

 
7,017

Expected return on plan assets
(8,699
)
 
(8,354
)
 
(7,550
)
Amortization of prior service credit

 
(791
)
 
(1,350
)
Amortization of transitional obligation

 
40

 
40

Curtailment gain

 
(2,806
)
 

Fourth quarter expense recognition of actuarial loss in excess of corridor
2,492

 
1,020

 
2,620

Net periodic pension expense
$
4,074

 
$
5,907

 
$
11,197



61


The changes in the projected benefit obligation, plan assets and the funded status of the pension plans were as follows (in thousands):

 
2015
 
2014
Change in projected benefit obligation:
 
 
 
Net benefit obligation, beginning of year
$
208,550

 
$
184,117

Service costs incurred
1,981

 
8,356

Interest costs on projected benefit obligation
8,300

 
8,442

Actuarial loss (gain)
(4,709
)
 
21,462

Gross benefits paid
(10,313
)
 
(9,133
)
Plan amendment

 
495

Curtailment gain

 
(2,842
)
Foreign currency exchange rate change
(1,919
)
 
(2,347
)
Net benefit obligation, end of year
$
201,890

 
$
208,550

Change in plan assets:
 
 
 
Fair value of plan assets, beginning of year
$
189,056

 
$
165,741

Actual return on plan assets
1,646

 
22,293

Employer contributions
5,345

 
12,484

Gross benefits paid
(10,313
)
 
(9,133
)
Foreign currency exchange rate change
(1,898
)
 
(2,329
)
Fair value of plan assets, end of year
$
183,836

 
$
189,056

Funded status (underfunded)
$
(18,054
)
 
$
(19,494
)
 
 
 
 
Amounts in Accumulated Other Comprehensive Income not yet recognized as components of net periodic pension and postretirement expense, pretax
 
 
 
Net actuarial loss
19,829

 
20,160

 
 
The net underfunded status of the plans is recorded in accrued pension and postretirement liability in the consolidated balance sheets. Any future reclassification of actuarial loss from AOCI to income would only be recognized if the cumulative actuarial loss exceeds the corridor, and the reclassification would be recognized as a fourth quarter mark-to-market adjustment.

Pension expense is actuarially calculated annually based on data available at the beginning of each year. We determine the expected return on plan assets by multiplying the expected long-term rate of return on assets by the market-related value of plan assets. The market-related value of plan assets is the fair value of plan assets. Assumptions used in the actuarial calculation include the discount rate selected and disclosed at the end of the previous year as well as the expected rate of return on assets detailed in the table below, as of the years ended November 30, 2015 and 2014:
 
U.S. RIP
 
U.K. RIP
 
2015
 
2014
 
2015
 
2014
Weighted-average assumptions as of year-end
 
 
 
 
 
 
 
Discount rate
4.50
%
 
4.20
%
 
3.60
%
 
3.80
%
Expected long-term rate of return on assets
5.00
%
 
4.70
%
 
4.60
%
 
4.90
%

In 2014, we discontinued all future accruals to the U.S. RIP. As a result of the plan freeze and associated remeasurement, we used a weighted-average 5.2 percent expected long-term rate of return on plan assets and a weighted-average 4.7 percent discount rate for the U.S. RIP for 2014.

Fair Value of Pension Assets

As of November 30, 2015, the U.S. RIP plan assets consist primarily of fixed-income securities, with a moderate amount of equity securities. We employed a similar investment strategy as of November 30, 2014. The U.K. RIP plan assets consist

62


primarily of equity securities, with smaller holdings of bonds and other assets. Equity assets are diversified between international and domestic investments, with additional diversification in the domestic category through allocations to large-cap, mid-cap, and growth and value investments.

The U.S. RIP’s established investment policy seeks to align the expected rate of return with the discount rate, while allowing for some equity variability to allow for upside market potential that would strengthen the overall asset position of the plan. The U.K. RIP’s established investment policy is to match the liabilities for active and deferred members with equity investments and match the liabilities for pensioner members with fixed-income investments. Asset allocations are subject to ongoing analysis and possible modification as basic capital market conditions change over time (interest rates, inflation, etc.).

The following table compares target asset allocation percentages with actual asset allocations at the end of 2015:

 
U.S. RIP Assets
 
U.K. RIP Assets
 
Target Allocations
 
Actual Allocations
 
Target Allocations
 
Actual Allocations
Fixed Income
75
%
 
73
%
 
45
%
 
48
%
Equities
25
%
 
24
%
 
55
%
 
45
%
Alternatives/Other
%
 
3
%
 
%
 
7
%

Investment return assumptions for both plans have been determined by obtaining independent estimates of expected long-term rates of return by asset class and applying the returns to assets on a weighted-average basis.

All of our pension plan assets are measured at fair value on a recurring basis by reference to similar assets in active markets and are therefore classified within Level 2 of the fair value hierarchy. Plan assets as of November 30, 2015 and 2014 were classified in the following categories (in thousands):
 
 
2015
 
2014
Interest-bearing cash
 
$
6,791

 
$
3,940

Collective trust funds:
 
 
 
 
Fixed income funds
 
121,994

 
127,063

Equity funds
 
55,051

 
58,053

 
 
$
183,836

 
$
189,056


Postretirement Benefits

We sponsor a contributory postretirement medical plan. The plan grants access to group rates for retiree-medical coverage for all U.S. employees who terminate between ages 55 and 64 with at least 10 years of IHS service. Additionally, we subsidize the cost of coverage for retiree-medical coverage for certain grandfathered employees. Our subsidy is capped at different rates per month depending on individual retirees’ Medicare eligibility.

The obligation under our plan was determined by the application of the terms of medical and life insurance plans together with relevant actuarial assumptions. Effective 2006, we do not provide prescription drug coverage for Medicare-eligible retirees except through a Medicare Advantage fully insured option; therefore our liability does not reflect any impact of the Medicare Modernization Act Part D subsidy. The discount rate used in determining the accumulated postretirement benefit obligation was 4.50 percent and 4.20 percent at November 30, 2015, and 2014, respectively.


63


Our net periodic postretirement expense and changes in the related projected benefit obligation were as follows (in thousands):

 
Year Ended November 30,
 
2015
 
2014
 
2013
Service costs incurred
$
16

 
$
16

 
$
23

Interest costs
388

 
412

 
399

Fourth quarter expense recognition of actuarial loss in excess of corridor

 
439

 

Net periodic postretirement expense
$
404

 
$
867

 
$
422


 
November 30, 2015
 
November 30, 2014
Change in projected postretirement benefit obligation:
 
 
 
Postretirement benefit obligation at beginning of year
$
9,645

 
$
8,815

Service costs
16

 
16

Interest costs
388

 
412

Actuarial (gain) loss
(847
)
 
1,407

Benefits paid
(511
)
 
(1,005
)
Postretirement benefit obligation at end of year
$
8,691

 
$
9,645

Unfunded status
$
(8,691
)
 
$
(9,645
)
 
 
 
 
Amounts in Accumulated Other Comprehensive Income not yet recognized as components of net periodic pension and postretirement expense, pretax
 
 
 
Net actuarial loss
$
117

 
$
964

 
The net unfunded status of the postretirement benefit plan is recorded in accrued pension liability in the consolidated balance sheets. Any future reclassifications of actuarial loss from AOCI to income would only be recognized if the cumulative actuarial loss exceeds the corridor and would be recognized as a fourth quarter mark-to-market adjustment.

The following table provides the expected benefit payments for the plan (in thousands):
Year
 
Amount (in thousands)
2016
 
$
734

2017
 
$
730

2018
 
$
726

2019
 
$
720

2020
 
$
690

2021-2025
 
$
3,084


A one-percentage-point change in assumed health-care-cost-trend rates would have no effect on service cost, interest cost, or the postretirement benefit obligation as of November 30, 2015 because our subsidy is capped.

Defined Contribution Plan

Employees of certain subsidiaries may participate in defined contribution plans. We began providing a company non-elective contribution to certain employees in 2012 and expanded that contribution to all eligible employees if they are active employees at the end of the calendar year. Benefit expense relating to these plans was approximately $18.2 million, $13.7 million, and $11.9 million for the years ended November 30, 2015, 2014, and 2013, respectively.

14.
Stock-based Compensation


64


As of November 30, 2015, we had one stock-based compensation plan: the Amended and Restated IHS Inc. 2004 Long-Term Incentive Plan (LTIP). The LTIP provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares, cash-based awards, other stock based awards and covered employee annual incentive awards. Upon vesting of an award, we may either issue new shares or reissue treasury shares, but only to the extent that the reissued shares were previously withheld for taxes under the LTIP provisions. The 2004 Directors Stock Plan, a sub-plan under our LTIP, provides for the grant of restricted stock and restricted stock units to non-employee directors as defined in that plan. We believe that such awards better align the interests of our employees and non-employee directors with those of our stockholders. We have an authorized maximum of 14.75 million shares for issuance under the LTIP. As of November 30, 2015, the number of shares available for future grant was 1.5 million.

Total unrecognized compensation expense related to all nonvested awards was $120.7 million as of November 30, 2015, with a weighted-average recognition period of approximately 1.4 years.

Restricted Stock Units (RSUs). RSUs typically vest from one to three years, and are generally subject to either cliff vesting (performance-based RSUs) or graded vesting (time-based RSUs). RSUs do not have nonforfeitable rights to dividends or dividend equivalents. The fair value of RSUs is based on the fair value of our common stock on the date of grant. We amortize the value of these awards to expense over the vesting period on a straight-line basis. For performance-based RSUs, an evaluation is made each quarter about the likelihood that the performance criteria will be met. As the number of performance-based RSUs expected to vest increases or decreases, compensation expense is also adjusted up or down to reflect the number expected to vest and the cumulative vesting period met to date. For all RSUs, we estimate forfeitures at the grant date and recognize compensation cost based on the number of awards expected to vest. There may be adjustments in future periods if the likelihood of meeting performance criteria changes or if actual forfeitures differ from our estimates. Our forfeiture rate is based upon historical experience as well as anticipated employee turnover considering certain qualitative factors.

The following table summarizes RSU activity for the year ended November 30, 2015. Performance-based RSUs for the 2016 and 2017 performance periods are included in the table at target.
 
Shares
 
Weighted-
Average Grant
Date Fair Value
 
(in thousands)
 
 
Balance at November 30, 2014
2,518

 
$
102.24

Granted
1,361

 
$
116.14

Vested
(1,247
)
 
$
102.88

Forfeited
(191
)
 
$
114.00

Balance at November 30, 2015
2,441

 
$
108.74


The total fair value of RSUs that vested during the year ended November 30, 2015 was $144.9 million.

Stock Options. Option awards are generally granted with an exercise price equal to the fair market value of our stock at the date of grant. No stock options were outstanding as of November 30, 2015.
 
Stock-based compensation expense for the years ended November 30, 2015, 2014, and 2013, respectively, was as follows (in thousands):
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
Cost of revenue
 
$
6,892

 
$
8,520

 
$
8,271

Selling, general and administrative
 
122,024

 
150,737

 
147,447

Total stock-based compensation expense
 
$
128,916

 
$
159,257

 
$
155,718


Total income tax benefits recognized for stock-based compensation arrangements were as follows (in thousands):
 
 
2015
 
2014
 
2013
Income tax benefits
 
$
37,330

 
$
47,209

 
$
51,357


No stock-based compensation cost was capitalized during the years ended November 30, 2015, 2014, or 2013.


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15.
Commitments and Contingencies

Commitments

Rental charges in 2015, 2014, and 2013 approximated $60.9 million, $58.9 million and $46.3 million, respectively. Minimum rental commitments under non-cancelable operating leases in effect at November 30, 2015, are as follows:

Year
 
Amount (in thousands)
2016
 
$
58,222

2017
 
54,069

2018
 
44,484

2019
 
32,374

2020
 
26,620

Thereafter
 
76,005

 
 
$
291,774


We also had outstanding letters of credit and bank guarantees in the aggregate amount of approximately $5.2 million and $5.6 million at November 30, 2015 and 2014, respectively.

Indemnifications

In the normal course of business, we are party to a variety of agreements under which we may be obligated to indemnify the other party for certain matters. These obligations typically arise in contracts where we customarily agree to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters such as title to assets and intellectual property rights associated with the sale of products. We also have indemnification obligations to our officers and directors. The duration of these indemnifications varies, and in certain cases, is indefinite. In each of these circumstances, payment by us depends upon the other party making an adverse claim according to the procedures outlined in the particular agreement, which procedures generally allow us to challenge the other party’s claims. In certain instances, we may have recourse against third parties for payments that we make.

We are unable to reasonably estimate the maximum potential amount of future payments under these or similar agreements due to the unique facts and circumstances of each agreement and the fact that certain indemnifications provide for no limitation to the maximum potential future payments under the indemnification. We have not recorded any liability for these indemnifications in the accompanying consolidated balance sheets; however, we accrue losses for any known contingent liability, including those that may arise from indemnification provisions, when the obligation is both probable and reasonably estimable.

Litigation

From time to time, we are involved in litigation in the ordinary course of our business, including claims or contingencies that may arise related to matters occurring prior to our acquisition of businesses, such as the matter described below. At the present time, primarily because the matters are generally in early stages, we can give no assurance as to the outcome of any pending litigation to which we are currently a party and we are unable to determine the ultimate resolution of or provide a reasonable estimate of the range of possible loss attributable to these matters or the effect they may have on us. However, we do not expect the outcome of such proceedings to have a material adverse effect on our results of operations or financial condition. We have and will continue to vigorously defend ourselves against these claims.

On April 23, 2013 (prior to our acquisition of R.L. Polk & Co.), our CARFAX subsidiary (CARFAX) was served with a complaint filed in the U.S. District Court for the Southern District of New York, purportedly on behalf of certain auto and light truck dealers. The complaint alleges, among other things that, in violation of antitrust laws, CARFAX entered into exclusive arrangements regarding the sale of CARFAX vehicle history reports with certain auto manufacturers and owners of two websites providing classified listings of used autos and light trucks. The complaint seeks three times the actual damages that a jury finds the plaintiffs have sustained, injunctive relief, costs and attorneys’ fees. On October 25, 2013, the plaintiffs served a second amended complaint with similar allegations purporting to name approximately 469 auto dealers as plaintiffs and counsel for plaintiffs have indicated that there may be additional claimants. There are significant legal and factual issues to be

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determined. We believe, however, that the probability that the outcome of the litigation will have a material adverse effect on our results of operations or financial condition is remote.

16.
Common Stock and Earnings per Share

Weighted average shares of Class A common stock outstanding for the years ended November 30, 2015, 2014, and 2013, respectively, were calculated as follows (in thousands):
 
 
2015
 
2014
 
2013
Weighted-average shares outstanding:
 
 
 
 
 
 
Shares used in basic EPS calculation
 
68,450

 
68,163

 
66,434

Effect of dilutive securities:
 
 
 
 
 
 
Restricted stock units
 
839

 
957

 
1,006

Stock options and other stock-based awards
 

 

 
2

Shares used in diluted EPS calculation
 
69,289

 
69,120

 
67,442


Share Buyback Programs
During 2006, our board of directors approved a program to reduce the dilutive effects of employee equity grants, by allowing employees to surrender shares back to the Company for a value equal to their minimum statutory tax liability. We then pay the statutory tax on behalf of the employee. For the year ended November 30, 2015, we accepted 436,919 shares surrendered by employees under the tax withholding program for approximately $50.8 million, or $116.22 per share.

In January 2015, our board of directors authorized us to repurchase up to $100 million of our Class A common stock in open market purchases or through privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the Exchange Act), subject to market conditions, applicable legal requirements and other relevant factors. All of our previously announced share repurchase programs were terminated at that time. We completed this program in June 2015, repurchasing 816,205 shares at an average price of approximately $122.52 per share.

In June 2015, our board of directors authorized us to repurchase up to $500 million of our Class A common stock in open market purchases or through privately negotiated transactions in compliance with Rule 10b-18 under the Exchange Act, subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate IHS to repurchase any set dollar amount or number of shares and is scheduled to expire on November 30, 2017, but may be suspended at any time at our discretion. The amount authorized under this program is inclusive of share repurchases of our Class A common stock surrendered by employees in an amount equal to the statutory tax liability associated with the vesting of their equity awards, for which we pay the statutory tax on behalf of the employee. For the year ended November 30, 2015, we repurchased 841,842 shares on the open market under this program for a total of approximately $100.3 million, at an average price of approximately $119.18 per share.


17.
Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (AOCI) consists of foreign currency translation adjustments, net pension and postretirement liability adjustments, and net gain (loss) on hedging activities. Each item is reported net of the related income tax effect. The following table summarizes the changes in AOCI by component (net of tax) for the year ended November 30, 2015 (in thousands):

67


 
 
Foreign currency translation
 
Net pension and OPEB liability
 
Unrealized losses on hedging activities
 
Total
Balance at November 30, 2012
 
$
(35,374
)
 
$
(9,094
)
 
$
(2,225
)
 
$
(46,693
)
Other comprehensive income (loss) before reclassifications
 
(11,191
)
 
85

 
(950
)
 
(12,056
)
Reclassifications from AOCI to income
 

 
812

 
976

 
1,788

Balance at November 30, 2013
 
$
(46,565
)
 
$
(8,197
)
 
$
(2,199
)
 
$
(56,961
)
Other comprehensive income (loss) before reclassifications
 
(37,069
)
 
(4,144
)
 
(8,343
)
 
(49,556
)
Reclassifications from AOCI to income
 

 
(1,268
)
 
1,060

 
(208
)
Balance at November 30, 2014
 
$
(83,634
)
 
$
(13,609
)
 
$
(9,482
)
 
$
(106,725
)
Other comprehensive loss before reclassifications
 
(79,873
)
 
(1,170
)
 
(5,649
)
 
(86,692
)
Reclassifications from AOCI to income
 

 
1,630

 
574

 
2,204

Balance at November 30, 2015
 
$
(163,507
)
 
$
(13,149
)
 
$
(14,557
)
 
$
(191,213
)

Amounts reclassified from AOCI to income related to net pension and OPEB liability are recorded in net periodic pension and postretirement expense.

18.
Supplemental Cash Flow Information

Net cash provided by operating activities reflects cash payments for interest and income taxes as shown below, for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
 
2015
 
2014
 
2013
Interest paid
 
$
65,429

 
$
45,396

 
$
39,023

Income tax payments (refunds), net
 
$
11,489

 
$
52,030

 
$
(9,458
)

Interest paid during 2013, 2014, and 2015 increased primarily due to increased borrowings associated with acquisitions and share repurchase programs, as well as a higher effective interest rate due to an increased amount of fixed rate debt.

Cash and cash equivalents amounting to approximately $291.6 million and $153.2 million reflected on the consolidated balance sheets at November 30, 2015 and 2014, respectively, are maintained primarily in U.S. Dollars, Canadian Dollars, British Pounds, and Euros, and were subject to fluctuations in the currency exchange rate.

19.
Segment Information

During 2015, we changed the structure of our internal organization in a manner that caused the composition of our segments to change. We now prepare our financial reports and analyze our business results within our three operating segments: Resources, Transportation, and CMS. All prior period information has been restated to reflect the current year presentation, and excludes results associated with discontinued operations. We evaluate segment performance primarily at the revenue and operating profit level for each of these three segments.

Information about the operations of our segments is set forth below. Our Chief Executive Officer is our CODM, and the CODM evaluates segment performance based primarily on revenue and operating profit. In addition, the CODM reviews revenue by transaction type and geography. The accounting policies of our segments are the same as those described in the summary of significant accounting policies (see Note 2).

No single customer accounted for 10 percent or more of our total revenue for the years ended November 30, 2015, 2014, or 2013. There are no material inter-segment revenues for any period presented. Certain corporate transactions are not allocated to the reportable segments, including such items as stock-based compensation expense, net periodic pension and postretirement expense, corporate-level impairments, and gain (loss) on sale of corporate assets.


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Table of Contents

 
Resources
 
Transportation
 
CMS
 
Shared
Services
 
Consolidated
Total
 
(In thousands)
Year Ended November 30, 2015
 
 
 
 
 
 
 
 
Revenue
$
884,596

 
$
758,404

 
$
541,335

 
$

 
$
2,184,335

Operating income
$
248,280

 
$
193,668

 
$
49,319

 
$
(183,424
)
 
$
307,843

Depreciation and amortization
$
85,924

 
$
80,696

 
$
48,135

 
$
325

 
$
215,080

Total Assets
$
2,247,747

 
$
2,319,097

 
$
840,860

 
$
193,377

 
$
5,601,081

Year Ended November 30, 2014
 
 
 
 
 
 
 
 
Revenue
$
927,211

 
$
662,547

 
$
490,029

 
$

 
$
2,079,787

Operating income
$
286,393

 
$
160,361

 
$
52,225

 
$
(221,495
)
 
$
277,484

Depreciation and amortization
$
77,576

 
$
70,772

 
$
32,554

 
$
341

 
$
181,243

Total Assets
$
2,249,604

 
$
2,237,669

 
$
784,863

 
$

 
$
5,272,136

Year Ended November 30, 2013
 
 
 
 
 
 
 
 
Revenue
$
865,126

 
$
353,787

 
$
473,090

 
$

 
$
1,692,003

Operating income
$
284,475

 
$
67,255

 
$
32,899

 
$
(210,655
)
 
$
173,974

Depreciation and amortization
$
62,256

 
$
37,644

 
$
38,952

 
$
123

 
$
138,975

Total Assets
$
2,352,730

 
$
2,179,261

 
$
827,622

 
$

 
$
5,359,613


The table below provides information about revenue and long-lived assets for the U.S. and the rest of the world for 2015, 2014, and 2013. There were no material individual foreign countries. Revenue by geographic area is generally based on the "ship to" location. Long-lived assets include net property and equipment.
 
2015
 
2014
 
2013
(in thousands)
Revenue
 
Long-lived assets
 
Revenue
 
Long-lived assets
 
Revenue
 
Long-lived assets
United States
$
1,327,390

 
$
272,919

 
$
1,176,813

 
$
254,008

 
$
919,151

 
$
196,987

Rest of world
856,945

 
41,447

 
902,974

 
47,411

 
772,852

 
48,579

Total
$
2,184,335

 
$
314,366

 
$
2,079,787

 
$
301,419

 
$
1,692,003

 
$
245,566


Revenue by transaction type was as follows:
(in thousands)
 
2015
 
2014
 
2013
Subscription revenue
 
$
1,768,541

 
$
1,643,844

 
$
1,326,630

Non-subscription revenue
 
415,794

 
435,943

 
365,373

Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

Revenue by geography was as follows:
(in thousands)
 
2015
 
2014
 
2013
Americas
 
$
1,459,743

 
$
1,353,616

 
1,041,425

EMEA
 
508,066

 
518,820

 
458,531

APAC
 
216,526

 
207,351

 
192,047

Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003



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Activity in our goodwill account was as follows:
(in thousands)
Resources
 
Transportation
 
CMS
 
Consolidated Total
Balance at November 30, 2013
$
1,558,103

 
$
1,237,170

 
$
269,908

 
$
3,065,181

Acquisitions
14,474

 
74,320

 
41,473

 
130,267

Adjustments to purchase price
(4,197
)
 
1,007

 
(2,301
)
 
(5,491
)
Foreign currency translation
(16,044
)
 
(13,427
)
 
(3,162
)
 
(32,633
)
Balance at November 30, 2014
1,552,336

 
1,299,070

 
305,918

 
3,157,324

Acquisitions
35,027

 
81,520

 
154,523

 
271,070

Adjustments to purchase price
2,427

 
(825
)
 
4,517

 
6,119

Reclassification to assets held for sale

 

 
(102,566
)
 
(102,566
)
Foreign currency translation
(21,227
)
 
(18,423
)
 
(4,838
)
 
(44,488
)
Balance at November 30, 2015
$
1,568,563

 
$
1,361,342

 
$
357,554

 
$
3,287,459


The adjustments to purchase price in 2014 and 2015 related primarily to deferred tax true-ups that we finalized for our 2013 and 2014 acquisitions, respectively. The reclassification adjustment in 2015 was related to the goodwill allocated to our OE&RM and GlobalSpec product groups, which are now classified as discontinued operations, as further described in Note 11.


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20.
Quarterly Results of Operations (Unaudited)

The following table summarizes certain quarterly results of operations (in thousands):

 
Three Months Ended
 
February 28
 
May 31
 
August 31
 
November 30
2015
 
 
 
 
 
 
 
Revenue
$
513,876

 
$
556,940

 
$
557,813

 
$
555,706

 
 
 
 
 
 
 
 
Income from continuing operations
$
37,950

 
$
46,673

 
$
56,961

 
$
47,354

Income from discontinued operations
1,570

 
4,279

 
2,283

 
43,123

Net income
$
39,520

 
$
50,952

 
$
59,244

 
$
90,477

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.55

 
$
0.68

 
$
0.83

 
$
0.70

Income from discontinued operations
0.02

 
0.06

 
0.03

 
0.63

Net income
$
0.58

 
$
0.74

 
$
0.87

 
$
1.33

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.55

 
$
0.68

 
$
0.83

 
$
0.69

Income from discontinued operations
$
0.02

 
$
0.06

 
$
0.03

 
$
0.63

Net income
$
0.57

 
$
0.74

 
$
0.86

 
$
1.32

 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
Revenue
$
490,104

 
$
529,871

 
$
518,680

 
$
541,132

 
 
 
 
 
 
 
 
Income from continuing operations
$
30,979

 
$
51,084

 
$
41,909

 
$
53,990

Income from discontinued operations
1,443

 
4,408

 
4,608

 
6,128

Net income
$
32,422

 
$
55,492

 
$
46,517

 
$
60,118

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.46

 
$
0.75

 
$
0.61

 
$
0.79

Income from discontinued operations
0.02

 
0.06

 
0.07

 
0.09

Net income
$
0.48

 
$
0.81

 
$
0.68

 
$
0.88

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.45

 
$
0.74

 
$
0.61

 
$
0.78

Income from discontinued operations
0.02

 
0.06

 
0.07

 
0.09

Net income
$
0.47

 
$
0.81

 
$
0.68

 
$
0.87


Due to the discontinued operations discussed in Note 11, we have adjusted all prior period amounts, including these quarterly results of operations, to reflect the impact of discontinued operations on those periods.

21.
Supplemental Guarantor Information

Our 5% Notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the following wholly owned subsidiaries of IHS Inc. (collectively, the Guarantor Subsidiaries):

IHS Holding Inc.

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IHS Global Inc.
R.L. Polk & Co.
CARFAX, Inc.

The guarantees of our 5% Notes by the Guarantor Subsidiaries contain customary release provisions, which provide for the termination of such guarantees upon (i) the sale or other disposition (including by way of consolidation or merger) of the guarantor subsidiary or the sale or disposition of all or substantially all the assets of the guarantor subsidiary (in each case other than to the parent company (IHS Inc.) or another subsidiary of the company), (ii) the defeasance of the 5% Notes, or (iii) at such time as the guarantor subsidiary ceases to be a guarantor of any significant indebtedness of the company.

The following supplemental tables present condensed consolidating financial information for the parent company, the Guarantor Subsidiaries on a combined basis, and all other non-guarantor subsidiaries on a combined basis.

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CONDENSED CONSOLIDATING BALANCE SHEET
AS OF NOVEMBER 30, 2015
(In thousands)
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
21,048

 
$
270,532

 
$

 
$
291,580

Accounts receivable, net

 
192,889

 
163,024

 

 
355,913

Income tax receivable
42,663

 

 
3,021

 
(41,099
)
 
4,585

Deferred subscription costs

 
52,210

 
30,082

 
(29,540
)
 
52,752

Intercompany receivables
465,915

 
38,381

 
179,798

 
(684,094
)
 

Assets held for sale

 
99,743

 
93,634

 

 
193,377

Other
1,681

 
38,220

 
17,234

 

 
57,135

Total current assets
510,259

 
442,491

 
757,325

 
(754,733
)
 
955,342

Non-current assets:
 
 
 
 
 
 
 
 
 
Property and equipment, net

 
267,422

 
46,944

 

 
314,366

Intangible assets, net

 
768,029

 
246,662

 

 
1,014,691

Goodwill

 
2,274,422

 
1,013,037

 

 
3,287,459

Deferred income taxes
58,471

 

 
6,630

 
(58,471
)
 
6,630

Investment in subsidiaries
2,416,961

 
3,045,096

 

 
(5,462,057
)
 

Intercompany notes receivable

 

 
724,778

 
(724,778
)
 

Other
10,181

 
11,130

 
1,282

 

 
22,593

Total non-current assets
2,485,613

 
6,366,099

 
2,039,333

 
(6,245,306
)
 
4,645,739

Total assets
$
2,995,872

 
$
6,808,590

 
$
2,796,658

 
$
(7,000,039
)
 
$
5,601,081

Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
36,019

 
$

 
$

 
$
36,019

Accounts payable
5

 
39,689

 
19,486

 

 
59,180

Accrued compensation

 
69,889

 
35,588

 

 
105,477

Accrued royalties

 
25,985

 
7,321

 

 
33,306

Other accrued expenses
3,453

 
74,055

 
40,709

 

 
118,217

Income tax payable

 
64,077

 
362

 
(41,100
)
 
23,339

Deferred revenue

 
321,766

 
260,272

 
(29,540
)
 
552,498

Intercompany payables
22,721

 
549,783

 
122,855

 
(695,359
)
 

Liabilities held for sale

 
12,402

 
19,695

 

 
32,097

Total current liabilities
26,179

 
1,193,665

 
506,288

 
(765,999
)
 
960,133

Long-term debt
750,000

 
1,345,183

 

 

 
2,095,183

Accrued pension and postretirement liability
18,260

 
8,188

 
297

 

 
26,745

Deferred income taxes

 
259,764

 
46,965

 
(47,205
)
 
259,524

Intercompany notes payable

 
724,778

 

 
(724,778
)
 

Other liabilities
556

 
40,755

 
17,308

 

 
58,619

Total stockholders’ equity
2,200,877

 
3,236,257

 
2,225,800

 
(5,462,057
)
 
2,200,877

Total liabilities and stockholders’ equity
$
2,995,872

 
$
6,808,590

 
$
2,796,658

 
$
(7,000,039
)
 
$
5,601,081



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CONDENSED CONSOLIDATING BALANCE SHEET
AS OF NOVEMBER 30, 2014
(In thousands)
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
32,314

 
$
120,842

 
$

 
$
153,156

Accounts receivable, net

 
212,711

 
208,663

 

 
421,374

Income tax receivable
18,000

 
16,384

 

 
(32,101
)
 
2,283

Deferred subscription costs

 
53,272

 
28,048

 
(30,299
)
 
51,021

Intercompany receivables
712,976

 
174,161

 
291,873

 
(1,179,010
)
 

Other
1,669

 
41,481

 
17,823

 

 
60,973

Total current assets
732,645

 
530,323

 
667,249

 
(1,241,410
)
 
688,807

Non-current assets:
 
 
 
 
 
 
 
 
 
Property and equipment, net

 
246,498

 
54,921

 

 
301,419

Intangible assets, net

 
826,152

 
264,957

 

 
1,091,109

Goodwill

 
2,258,393

 
898,931

 

 
3,157,324

Deferred income taxes
59,594

 

 
5,486

 
(59,594
)
 
5,486

Investment in subsidiaries
2,249,359

 
1,748,795

 

 
(3,998,154
)
 

Intercompany notes receivable

 

 
740,879

 
(740,879
)
 

Other
11,498

 
13,701

 
2,792

 

 
27,991

Total non-current assets
2,320,451

 
5,093,539

 
1,967,966

 
(4,798,627
)
 
4,583,329

Total assets
$
3,053,096

 
$
5,623,862

 
$
2,635,215

 
$
(6,040,037
)
 
$
5,272,136

Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
35,974

 
$
283

 
$

 
$
36,257

Accounts payable
93

 
31,083

 
21,069

 

 
52,245

Accrued compensation

 
57,651

 
44,224

 

 
101,875

Accrued royalties

 
24,590

 
12,756

 

 
37,346

Other accrued expenses
3,830

 
91,131

 
36,186

 

 
131,147

Income tax payable

 

 
32,101

 
(32,101
)
 

Deferred revenue

 
317,144

 
309,342

 
(30,299
)
 
596,187

Intercompany payables
119,268

 
1,056,664

 
3,078

 
(1,179,010
)
 

Total current liabilities
123,191

 
1,614,237

 
459,039

 
(1,241,410
)
 
955,057

Long-term debt
750,000

 
1,056,098

 

 

 
1,806,098

Accrued pension and postretirement liability
19,603

 
8,869

 
667

 

 
29,139

Deferred income taxes

 
283,211

 
47,508

 
(59,594
)
 
271,125

Intercompany notes payable

 
740,879

 

 
(740,879
)
 

Other liabilities
756

 
30,887

 
19,528

 

 
51,171

Total stockholders’ equity
2,159,546

 
1,889,681

 
2,108,473

 
(3,998,154
)
 
2,159,546

Total liabilities and stockholders’ equity
$
3,053,096

 
$
5,623,862

 
$
2,635,215

 
$
(6,040,037
)
 
$
5,272,136



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CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2015
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,609,362

 
$
641,165

 
$
(66,192
)
 
$
2,184,335

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
808,214

 
77,151

 
(66,192
)
 
819,173

Selling, general and administrative
13,694

 
524,312

 
257,348

 

 
795,354

Depreciation and amortization

 
155,352

 
59,728

 

 
215,080

Restructuring charges

 
23,902

 
15,457

 

 
39,359

Acquisition-related costs

 
1,418

 
54

 

 
1,472

Net periodic pension and postretirement expense
54

 
4,075

 
349

 

 
4,478

Other expense, net

 
674

 
902

 

 
1,576

Total operating expenses
13,748

 
1,517,947

 
410,989

 
(66,192
)
 
1,876,492

Operating income (loss)
(13,748
)
 
91,415

 
230,176

 

 
307,843

Interest income
10,349

 
457

 
670

 
(10,543
)
 
933

Interest expense
(39,196
)
 
(34,267
)
 
(8,065
)
 
10,543

 
(70,985
)
Non-operating expense, net
(28,847
)
 
(33,810
)
 
(7,395
)
 

 
(70,052
)
Income (loss) from continuing operations before income taxes
(42,595
)
 
57,605

 
222,781

 

 
237,791

Benefit (provision) for income taxes
16,825

 
(22,754
)
 
(42,924
)
 

 
(48,853
)
Income (loss) from continuing operations
(25,770
)
 
34,851

 
179,857

 

 
188,938

Income from discontinued operations, net

 
3,754

 
47,501

 

 
51,255

Equity in net income of subsidiaries
265,963

 
227,358

 

 
(493,321
)
 

Net income
$
240,193

 
$
265,963

 
$
227,358

 
$
(493,321
)
 
$
240,193



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CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2014
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,464,257

 
$
663,636

 
$
(48,106
)
 
$
2,079,787

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
752,463

 
110,796

 
(48,106
)
 
815,153

Selling, general and administrative
12,721

 
497,742

 
279,289

 

 
789,752

Depreciation and amortization

 
135,489

 
45,754

 

 
181,243

Restructuring charges

 
5,173

 
3,602

 

 
8,775

Acquisition-related costs

 
1,268

 
633

 

 
1,901

Net periodic pension and postretirement expense
88

 
6,686

 

 

 
6,774

Other expense (income), net
49

 
(227
)
 
(1,117
)
 

 
(1,295
)
Total operating expenses
12,858

 
1,398,594

 
438,957

 
(48,106
)
 
1,802,303

Operating income (loss)
(12,858
)
 
65,663

 
224,679

 

 
277,484

Interest income

 
476

 
1,130

 
(618
)
 
988

Interest expense
(3,576
)
 
(51,020
)
 
(1,406
)
 
618

 
(55,384
)
Non-operating expense, net
(3,576
)
 
(50,544
)
 
(276
)
 

 
(54,396
)
Income (loss) from continuing operations before income taxes
(16,434
)
 
15,119

 
224,403

 

 
223,088

Benefit (provision) for income taxes
6,491

 
(5,971
)
 
(45,646
)
 

 
(45,126
)
Income (loss) from continuing operations
(9,943
)
 
9,148

 
178,757

 

 
177,962

Income from discontinued operations, net

 
6,664

 
9,923

 

 
16,587

Equity in net income of subsidiaries
204,492

 
92,372

 

 
(296,864
)
 

Net income
$
194,549

 
$
108,184

 
$
188,680

 
$
(296,864
)
 
$
194,549




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CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2013
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,128,433

 
$
624,731

 
$
(61,161
)
 
$
1,692,003

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
647,513

 
103,624

 
(61,161
)
 
689,976

Selling, general and administrative
11,940

 
354,150

 
275,984

 

 
642,074

Depreciation and amortization

 
70,573

 
68,402

 

 
138,975

Restructuring charges

 
6,831

 
4,898

 

 
11,729

Acquisition-related costs

 
19,188

 
4,240

 

 
23,428

Net periodic pension and postretirement expense
141

 
11,427

 
51

 

 
11,619

Other expense (income), net
(61
)
 
(8,711
)
 
9,000

 

 
228

Total operating expenses
12,020

 
1,100,971

 
466,199

 
(61,161
)
 
1,518,029

Operating income (loss)
(12,020
)
 
27,462

 
158,532

 

 
173,974

Interest income

 
906

 
1,194

 
(829
)
 
1,271

Interest expense

 
(42,793
)
 
(2,618
)
 
829

 
(44,582
)
Non-operating expense, net

 
(41,887
)
 
(1,424
)
 

 
(43,311
)
Income (loss) from continuing operations before income taxes
(12,020
)
 
(14,425
)
 
157,108

 

 
130,663

Benefit (provision) for income taxes
4,748

 
5,659

 
(24,554
)
 

 
(14,147
)
Income (loss) from continuing operations
(7,272
)
 
(8,766
)
 
132,554

 

 
116,516

Income from discontinued operations, net

 
7,238

 
7,979

 

 
15,217

Equity in net income of subsidiaries
139,005

 
40,677

 

 
(179,682
)
 

Net income
$
131,733

 
$
39,149

 
$
140,533

 
$
(179,682
)
 
$
131,733




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CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

 
 
 
 
 
 
 
 
 
 
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Year ended November 30, 2015
 
 
 
 
 
 
 
 
 
Comprehensive income
$
155,705

 
$
(47,860
)
 
$
146,409

 
$
(98,549
)
 
$
155,705

 
 
 
 
 
 
 
 
 
 
Year ended November 30, 2014
 
 
 
 
 
 
 
 
 
Comprehensive income
$
144,785

 
$
58,485

 
$
151,545

 
$
(210,030
)
 
$
144,785

 
 
 
 
 
 
 
 
 
 
Year ended November 30, 2013
 
 
 
 
 
 
 
 
 
Comprehensive income
$
121,465

 
$
28,268

 
$
129,955

 
$
(158,223
)
 
$
121,465


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CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED NOVEMBER 30, 2015
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
360,437

 
$
252,202

 
$

 
$
612,639

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(109,160
)
 
(13,761
)
 

 
(122,921
)
Acquisitions of businesses, net of cash acquired

 
(324,393
)
 
(45,515
)
 

 
(369,908
)
Change in other assets

 
(3,727
)
 

 

 
(3,727
)
Settlements of forward contracts

 

 
597

 

 
597

Advances provided to other subsidiaries

 

 
(600
)
 
600

 

Investment in subsidiaries

 
(100
)
 

 
100

 

Intercompany dividends received from subsidiaries

 
19,320

 

 
(19,320
)
 

Net cash used in investing activities

 
(418,060
)
 
(59,279
)
 
(18,620
)
 
(495,959
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings

 
550,000

 

 

 
550,000

Repayment of borrowings

 
(260,869
)
 
(283
)
 

 
(261,152
)
Excess tax benefit from stock-based compensation

 
5,494

 

 

 
5,494

Repurchases of common stock

 
(248,868
)
 

 

 
(248,868
)
Advances received from other subsidiaries

 
600

 

 
(600
)
 

Proceeds from issuance of intercompany equity

 

 
100

 
(100
)
 

Intercompany dividends paid to subsidiaries

 

 
(19,320
)
 
19,320

 

Net cash provided by (used in) financing activities

 
46,357

 
(19,503
)
 
18,620

 
45,474

Foreign exchange impact on cash balance

 

 
(22,162
)
 

 
(22,162
)
Net increase (decrease) in cash and cash equivalents

 
(11,266
)
 
151,258

 

 
139,992

Cash and cash equivalents at the beginning of the period

 
32,314

 
120,842

 

 
153,156

Cash and cash equivalents at the end of the period

 
21,048

 
272,100

 

 
293,148

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 
(1,568
)
 

 
(1,568
)
Cash and cash equivalents from continuing operations at the end of the period
$

 
$
21,048

 
$
270,532

 
$

 
$
291,580


79

Table of Contents

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2014
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
441,627

 
$
186,472

 
$

 
$
628,099

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(99,016
)
 
(15,437
)
 

 
(114,453
)
Acquisitions of businesses, net of cash acquired

 
(177,276
)
 
(33,119
)
 

 
(210,395
)
Intangible assets acquired

 

 
(714
)
 

 
(714
)
Change in other assets

 
(4,608
)
 

 

 
(4,608
)
Settlements of forward contracts

 

 
6,159

 

 
6,159

Advances provided to other subsidiaries

 
(5,250
)
 
(765,379
)
 
770,629

 

Investment in subsidiaries
(740,675
)
 
(112
)
 

 
740,787

 

Intercompany dividends received from subsidiaries

 
55,098

 

 
(55,098
)
 

Net cash used in investing activities
(740,675
)
 
(231,164
)
 
(808,490
)
 
1,456,318

 
(324,011
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings
750,000

 
1,735,000

 

 

 
2,485,000

Repayment of borrowings

 
(2,677,596
)
 
(139,640
)
 

 
(2,817,236
)
Payment of debt issuance costs
(9,325
)
 
(9,669
)
 

 

 
(18,994
)
Excess tax benefit from stock-based compensation

 
13,297

 

 

 
13,297

Repurchases of common stock

 
(59,928
)
 

 

 
(59,928
)
Advances received from other subsidiaries

 
765,379

 
5,250

 
(770,629
)
 

Proceeds from issuance of intercompany equity

 

 
740,787

 
(740,787
)
 

Intercompany dividends paid to subsidiaries

 

 
(55,098
)
 
55,098

 

Net cash provided by (used in) financing activities
740,675

 
(233,517
)
 
551,299

 
(1,456,318
)
 
(397,861
)
Foreign exchange impact on cash balance

 

 
(11,438
)
 

 
(11,438
)
Net decrease in cash and cash equivalents

 
(23,054
)
 
(82,157
)
 

 
(105,211
)
Cash and cash equivalents at the beginning of the period

 
55,368

 
202,999

 

 
258,367

Cash and cash equivalents at the end of the period

 
32,314

 
120,842

 

 
153,156

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 

 

 

Cash and cash equivalents from continuing operations at the end of the period
$

 
$
32,314

 
$
120,842

 
$

 
$
153,156





80

Table of Contents

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2013
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
251,827

 
$
244,328

 
$

 
$
496,155

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(72,188
)
 
(18,546
)
 

 
(90,734
)
Acquisitions of businesses, net of cash acquired

 
(1,365,195
)
 
(121,839
)
 

 
(1,487,034
)
Change in other assets

 
1,347

 

 

 
1,347

Settlements of forward contracts

 

 
4,524

 

 
4,524

Advances provided to other subsidiaries

 

 
(16,116
)
 
16,116

 

Investment in subsidiaries

 
(1,404
)
 

 
1,404

 

Intercompany dividends received from subsidiaries

 
302,356

 

 
(302,356
)
 

Net cash used in investing activities

 
(1,135,084
)
 
(151,977
)
 
(284,836
)
 
(1,571,897
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings

 
1,235,261

 
139,739

 

 
1,375,000

Repayment of borrowings

 
(268,909
)
 

 

 
(268,909
)
Payment of debt issuance costs

 
(17,360
)
 

 

 
(17,360
)
Excess tax benefit from stock-based compensation

 
14,334

 

 

 
14,334

Proceeds from the exercise of employee stock options

 
549

 

 

 
549

Repurchases of common stock

 
(97,164
)
 

 

 
(97,164
)
Advances received from other subsidiaries

 
16,116

 

 
(16,116
)
 

Proceeds from issuance of intercompany equity

 

 
1,404

 
(1,404
)
 

Intercompany dividends paid to subsidiaries

 

 
(302,356
)
 
302,356

 

Net cash provided by (used in) financing activities

 
882,827

 
(161,213
)
 
284,836

 
1,006,450

Foreign exchange impact on cash balance

 

 
(17,349
)
 

 
(17,349
)
Net decrease in cash and cash equivalents

 
(430
)
 
(86,211
)
 

 
(86,641
)
Cash and cash equivalents at the beginning of the period

 
55,798

 
289,210

 

 
345,008

Cash and cash equivalents at the end of the period

 
55,368

 
202,999

 

 
258,367

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 

 

 

Cash and cash equivalents from continuing operations at the end of the period
$

 
$
55,368

 
$
202,999

 
$

 
$
258,367



Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Form 10-K. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act are effective to ensure that information required to be disclosed in the reports required to be filed or submitted under the Exchange Act is

81


(i) recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Internal Control over Financial Reporting

Our Chief Executive Officer and our Chief Financial Officer are responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act rule 13a-15(f). A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management is required to base its assessment of the effectiveness of our internal control over financial reporting on a suitable, recognized control framework, such as the framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO framework”). Our principal executive officer and our principal financial officer have chosen the COSO 2013 framework on which to base their assessment. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of November 30, 2015.

Our independent registered public accounting firm has audited, and reported on, the effectiveness of our internal control over financial reporting. Management’s report and the independent registered public accounting firm’s report are included under the captions entitled “Management’s Report on Internal Control Over Financial Reporting” and “Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting,” respectively, in Item 8 of this Form 10-K and are incorporated herein by reference.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended November 30, 2015, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

Iran Threat Reduction and Syria Human Rights Act Disclosure
 
Under the Iran Threat Reduction and Syrian Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, we are required to include certain disclosures in our periodic reports if we or any of our affiliates knowingly engaged in certain specified activities during the period covered by the report. Disclosure is generally required even if the transactions or dealings were conducted in compliance with applicable law and regulations. During the third quarter of 2014, we acquired Global Trade Information Services, a Virginia corporation (“GTIS”). GTIS publishes the Global Trade Atlas (the “GTA”), an online trade data system offering global merchandise trade statistics such as import and export data from official sources in more than 65 countries. Included in the GTA is certain trade data sourced from Iran for which GTIS pays an annual fee of approximately $30,000. The procurement of this information is exempt from applicable economic sanctions laws and regulations as a funds transfer related to the exportation or importation of information and informational materials. Sales attributable to this Iranian trade data represented approximately $75,000 in gross revenue for GTIS in the fourth quarter of 2015 and would have represented approximately 0.01% of our company’s fourth quarter 2015 consolidated revenues and gross profits. Subject to any changes in the exempt status of such activities, we intend to continue these business activities as permissible under applicable export control and economic sanctions laws and regulations.



82


PART III

Item 10. Directors, Executive Officers and Corporate Governance
Information required by this Item 10 will be set forth in the Proxy Statement for our 2016 Annual Meeting of Stockholders (the "Proxy Statement") and is incorporated herein by reference.

Item 11. Executive Compensation
Information required by this Item 11 will be set forth in the Proxy Statement and is incorporated herein by reference.
 
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Information required by this Item 12 will be set forth in the Proxy Statement and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence
Information required by this Item 13 will be set forth in the Proxy Statement and is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services
Information required by this Item 14 will be set forth in the Proxy Statement and is incorporated herein by reference.

PART IV

Item 15.
Exhibits, Financial Statement Schedules

(a)
Index of Financial Statements

The Financial Statements listed in the Index to Consolidated Financial Statements are filed as part of this report on Form 10-K (see Part II, Item 8 – Financial Statements and Supplementary Data).

(b)
Index of Exhibits

The following exhibits are filed as part of this report:
 
Exhibit
Number
 
Description
2.1
 
Membership Interest Purchase Agreement dated as of January 8, 2016 by and among UCG Holdings Limited Partnership and IHS Global Inc. (15)
3.1
 
Amended and Restated Certificate of Incorporation (13)
3.2
 
Certificate of Amendment of Amended and Restated Certificate of Incorporation (3)
3.3
 
Amended and Restated Bylaws (1)
4.1
 
Form of Class A Common Stock Certificate (4)
4.2
 
Form of Rights Agreement between IHS Inc. and Computershare Trust Company, Inc., as Rights Agent (4)
4.3
 
Agreement of Substitution and Amendment of Rights Agreement by and between IHS Inc. and American Stock Transfer and Trust Company, LLC, as Rights Agent, dated as of January 20, 2009 (5)
4.4
 
Indenture, dated as of October 28, 2014, among the Company, the Guarantors and Wells Fargo Bank, National Association as trustee (20)
10.1+
 
Amended and Restated IHS Inc. 2004 Long-Term Incentive Plan (22)
10.2+
 
Amended and Restated IHS Inc. 2004 Directors Stock Plan (18)


Table of Contents

10.3+
 
IHS Inc. Employee Stock Purchase Plan (4)
10.4+
 
IHS Inc. Supplemental Income Plan (4)
10.5+
 
Summary of Non-Employee Director Compensation (18)
10.6+
 
Form of Indemnification Agreement between the Company and its Directors (4)
10.7+
 
IHS Inc. 2004 Long-Term Incentive Plan, Form of 2007 Stock Option Award—Senior Executive Level (6)
10.8+
 
IHS Inc. 2004 Long-Term Incentive Plan, Form of 2007 Stock Option Award—Executive Level (6)
10.9+
 
IHS Inc. 2004 Long-Term Incentive Plan, Form of 2007 Restricted Stock Unit Award—Time-Based (6)
10.10+
 
IHS Inc. 2004 Long-Term Incentive Plan, Form of 2007 Restricted Stock Unit Award—Performance-Based(6)
10.11+
 
IHS Inc. 2004 Long-Term Incentive Plan, Form of 2010 Restricted Stock Unit Award—Performance-Based
(9)
10.12+
 
IHS Inc. 2004 Long-Term Incentive Plan, Form of 2011 Restricted Stock Unit Award—Performance-Based (3)
10.13+
 
IHS Inc. Hedging and Pledging Policy (22)
10.14+
 
IHS Inc. Policy on Recoupment of Incentive Compensation (22)
10.15+
 
IHS Inc. Deferred Compensation Plan (22)
10.16+
 
IHS Inc. Deferred Compensation Plan Adoption Agreement (22)
10.17+
 
Employment Agreement by and between IHS Inc. and Scott Key, dated as of October 31, 2007 (7)
10.18+
 
Amendment to Employment Agreement by and between IHS Inc. and Scott Key, dated as of October 22, 2009 (7)
10.19+
 
Amendment to Employment Agreement by and between IHS Inc. and Scott Key, dated as of December 3, 2010 (8)
10.20+
 
Amendment to Employment Agreement by and between IHS Inc. and Scott Key, dated as of December 31, 2012 (14)
10.21+
 
Agreement by and between IHS Inc. and Scott Key, dated as of June 1, 2015 (23)
10.22+
 
Full and Complete Release by and between IHS Inc. and Scott Key, dated as of June 1, 2015 (23)
10.23+
 
Employment Agreement by and between IHS Inc. and Todd Hyatt, dated as of October 31, 2013 (21)

10.24+
 
Employment Agreement by and between IHS Global Inc. and Daniel H. Yergin, dated as of July 2, 2010 (3)
10.25+
 
Amendment to Employment Agreement by and between IHS Inc. and Daniel Yergin, dated as of December 3, 2010 (19)
10.26+
 
Amendment to Employment Agreement by and between IHS Inc. and Daniel Yergin, dated as of December 28, 2012 (14)
10.27+
 
Employment Agreement by and between IHS Inc. and Anurag Gupta, dated as of February 1, 2013 (21)

10.28+
 
Amendment to Employment Agreement by and between IHS Inc. and Anurag Gupta, dated June 1, 2014 (18)
10.29+
 
Employment Agreement by and between IHS Inc. and Brian Sweeney, dated as of June 1, 2014 (24)

10.30+
 
Agreement by and between IHS Inc. and Brian Sweeney, dated September 25, 2015 (25)

84

Table of Contents

10.31+
 
Release Agreement by and between IHS Inc. and Brian Sweeney, dated September 25, 2015 (25)
10.32
 
Registration Rights Agreement, dated as of October 28, 2014, among the Company, the Guarantors and J.P. Morgan Securities LLC, as representative of the initial purchasers named therein (20)
10.33
 
Credit Agreement by and among IHS Inc., certain of its subsidiaries, Bank of America, N.A., Bank of America, N.A. (Canada Branch), JPMorgan Chase Bank, N.A., JPMorgan Chase Bank, N.A., Toronto Branch, Royal Bank of Canada, Wells Fargo Bank N.A., Compass Bank, TD Bank, N.A., Citizens Bank, N.A., PNC Bank, National Association, U.S. Bank National Association, Goldman Sachs Bank USA, HSBC Bank USA, N.A., Sumitomo Mitsui Banking Corporation, BNP Paribas, Bank of the West, SunTrust Bank, Morgan Stanley Bank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., dated as of October 17, 2014 (22)
10.34*
 
First Amendment to Credit Agreement by and among IHS Inc., certain of its subsidiaries, Bank of America, N.A., Bank of America, N.A. (Canada Branch), JPMorgan Chase Bank, N.A., JPMorgan Chase Bank, N.A., Toronto Branch, Royal Bank of Canada, Wells Fargo Bank N.A., Compass Bank, TD Bank, N.A., Citizens Bank, N.A., PNC Bank, National Association, U.S. Bank National Association, Goldman Sachs Bank USA, HSBC Bank USA, N.A., Sumitomo Mitsui Banking Corporation, BNP Paribas, Bank of the West, SunTrust Bank, Morgan Stanley Bank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., dated as of November 5, 2015
10.35
 
Credit Agreement by and among IHS Inc., IHS Global Inc., JPMorgan Chase Bank, N.A., Bank of America, N.A., RBS Citizens, N.A., Wells Fargo Bank, N.A., BBVA Compass, HSBC Bank USA, N.A., Royal Bank of Canada, PNC Bank, National Association, U.S. Bank National Association, TD Bank, N.A., Goldman Sachs Bank USA, The Bank of Tokyo-Mitsubishi UFJ, Ltd, Hua Nan Commercial, Ltd, New York Agency, Sumitomo Mitsui Banking Corporation and Commercial Bank, dated as of July 15, 2013 (16)
10.36
 
First Amendment to Credit Agreement by and among IHS Inc., IHS Global Inc., JPMorgan Chase Bank, N.A., Bank of America, N.A., RBS Citizens, N.A., Wells Fargo Bank, N.A., BBVA Compass, HSBC Bank USA, N.A., Royal Bank of Canada, PNC Bank, National Association, U.S. Bank National Association, TD Bank, N.A., Goldman Sachs Bank USA, The Bank of Tokyo-Mitsubishi UFJ, Ltd, Hua Nan Commercial, Ltd, New York Agency, Sumitomo Mitsui Banking Corporation and Commercial Bank, dated as of June 30, 2014 (18)
10.37
 
Credit Agreement (amending and restating the Credit Agreement dated as of July 15, 2013, as amended) by and among IHS Inc., IHS Global Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., Royal Bank of Canada, Wells Fargo Bank N.A., Compass Bank, TD Bank, N.A., Sumitomo Mitsui Banking Corporation, Citizens Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., PNC Bank, National Association, U.S. Bank National Association, Goldman Sachs Bank USA, HSBC Bank USA, N.A., BNP Paribas, Bank of the West, and SunTrust Bank, dated as of October 17, 2014 (22)
10.38*
 
First Amendment to Credit Agreement by and among IHS Inc., IHS Global Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., Royal Bank of Canada, Wells Fargo Bank N.A., Compass Bank, TD Bank, N.A., Sumitomo Mitsui Banking Corporation, Citizens Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., PNC Bank, National Association, U.S. Bank National Association, Goldman Sachs Bank USA, HSBC Bank USA, N.A., BNP Paribas, Bank of the West, and SunTrust Bank, dated as of November 5, 2015
10.39
 
Credit Agreement by and among IHS Inc., certain of its subsidiaries, J.P. Morgan Chase Bank, National Association, Bank of America N.A., RBS Citizens, N.A., Bank of America, N.A. (Canada Branch), Wells Fargo Bank, National Association, HSBC Bank USA, National Association, U.S. Bank, National Association, TD Bank, N.A., Barclays Bank PLC, PNC Bank, National Association, Citibank, N.A., HSBC Bank PLC and Compass Bank dated as of January 5, 2011 (10)
10.40
 
First Amendment to Credit Agreement by and among IHS Inc., certain of its subsidiaries, J.P. Morgan Chase Bank, National Association, Bank of America N.A., RBS Citizens, N.A., Bank of America, N.A. (Canada Branch), Wells Fargo Bank, National Association, HSBC Bank USA, National Association, U.S. Bank, National Association, TD Bank, N.A., Barclays Bank PLC, PNC Bank, National Association, Citibank, N.A., HSBC Bank PLC and Compass Bank dated as of October 11, 2011 (11)
10.41
 
Second Amendment to Credit Agreement by and among IHS Inc., certain of its subsidiaries, J.P. Morgan Chase Bank, National Association, Bank of America N.A., RBS Citizens, N.A., Wells Fargo Bank, National Association, HSBC Bank USA, National Association, U.S. Bank, National Association, TD Bank, N.A., Barclays Bank PLC, PNC Bank, National Association, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Union Bank, N.A., Royal Bank of Canada, Hua Nan Commercial Bank, Ltd, New York and Compass Bank, dated as of July 15, 2013 (16)
10.42
 
Third Amendment to Credit Agreement by and among IHS Inc., certain of its subsidiaries, J.P. Morgan Chase Bank, National Association, Bank of America N.A., RBS Citizens, N.A., Wells Fargo Bank, National Association, HSBC Bank USA, National Association, U.S. Bank, National Association, TD Bank, N.A., Barclays Bank PLC, PNC Bank, National Association, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Union Bank, N.A., Royal Bank of Canada, Hua Nan Commercial Bank, Ltd, New York and Compass Bank, dated as of June 30, 2014 (18)

85

Table of Contents

10.43
 
Credit Agreement by and among IHS Inc., IHS Global Inc., Royal Bank of Canada, and Bank of America, N.A., dated as of August 29, 2012 (12)
10.44
 
First Amendment to Credit Agreement by and among IHS Inc., IHS Global Inc., Royal Bank of Canada, and Bank of America, N.A., dated as of July 15, 2013 (16)
10.45
 
Second Amendment to Credit Agreement by and among IHS Inc., IHS Global Inc., Royal Bank of Canada, and Bank of America, N.A., dated as of June 30, 2014 (18)
21*
 
List of Subsidiaries of the Registrant
23*
 
Consent of Ernst & Young LLP
24*
 
Power of Attorney
31.1*  
 
Certification of the Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act.
31.2*  
 
Certification of the Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act.
32*
 
Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
101.INS*
 
XBRL Instance Document
 
 
101.SCH*
 
XBRL Taxonomy Extension Schema Document
 
 
101.CAL*
 
XBRL Taxonomy Extension Calculation Linkbase Document
 
 
101.DEF*
 
XBRL Taxonomy Extension Definition Linkbase Document
 
 
101.LAB*
 
XBRL Taxonomy Extension Label Linkbase Document
 
 
101.PRE*
 
XBRL Taxonomy Extension Presentation Linkbase Document
 ___________________
*
Filed electronically herewith.
+
Compensatory plan or arrangement.
(1)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2011, and incorporated herein by reference.
(2)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended August 31, 2011, and incorporated herein by reference.
(3)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2010, and incorporated herein by reference.
(4)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registration Statement on Form S-1 (No. 333-122565) of the Registrant filed on February 4, 2005, as amended, and incorporated herein by reference.
(5)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2008, and incorporated herein by reference.
(6)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2006, as amended, and incorporated herein by reference.
(7)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2009, and incorporated herein by reference.
(8)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended February 28, 2011, and incorporated herein by reference.
(9)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Periodic Report on Form 8-K dated December 10, 2010, and incorporated herein by reference.

86

Table of Contents

(10)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Periodic Report on Form 8-K dated January 6, 2011, and incorporated herein by reference.
(11)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Periodic Report on Form 8-K dated October 13, 2011, and incorporated herein by reference.
(12)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended August 31, 2012, and incorporated herein by reference.
(13)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended May 31, 2009, and incorporated herein by reference.
(14)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended February 28, 2013, and incorporated herein by reference.
(15)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Periodic Report on Form 8-K dated January 8, 2016, and incorporated herein by reference.
(16)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended August 31, 2013, and incorporated herein by reference.
(17)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2012, and incorporated herein by reference.
(18)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended August 31, 2014, and incorporated herein by reference.
(19)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended February 28, 2014, and incorporated herein by reference.
(20)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Periodic Report on Form 8-K dated October 28, 2014, and incorporated herein by reference.
(21)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2013, and incorporated herein by reference.
(22)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Annual Report on Form 10-K for the period ended November 30, 2014, and incorporated herein by reference.
(23)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Periodic Report on Form 8-K dated June 3, 2015, and incorporated herein by reference.
(24)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended February 28, 2015, and incorporated herein by reference.
(25)
Previously filed with the Securities and Exchange Commission as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the period ended August 31, 2015, and incorporated herein by reference.
 
 
(c) Financial Statement Schedules

All schedules for the Registrant have been omitted since the required information is not present or because the information is included in the financial statements or notes thereto.

87

Table of Contents

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
IHS INC.
 
 
By:
 
/s/ Stephen Green
 
 
Name:
 
Stephen Green
 
 
Title:
 
Executive Vice President, Legal and Corporate Secretary
 
 
Date:
 
January 15, 2016


88

Table of Contents

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed by the following persons on behalf of the registrant and in the capacities indicated on January 15, 2016.
Signature
 
Title
 
 
 
/s/ Jerre L. Stead
 
Chairman and Chief Executive Officer
Jerre L. Stead
 
(Principal Executive Officer)
 
 
 
/s/ Todd S. Hyatt
 
Executive Vice President, Chief Financial Officer
Todd S. Hyatt
 
(Principal Financial Officer)
 
 
 
/s/ Heather Matzke-Hamlin
 
Senior Vice President and Chief Accounting Officer
Heather Matzke-Hamlin
 
(Principal Accounting Officer)
 
 
 
*
 
Director
Ruann F. Ernst
 
 
 
 
 
*
 
Director
Brian H. Hall
 
 
 
 
 
*
 
Director
Roger Holtback
 
 
 
 
 
*
 
Director
Balakrishnan S. Iyer
 
 
 
 
 
*
 
Director
Deborah Doyle McWhinney
 
 
 
 
 
*
 
Director
Jean-Paul L. Montupet
 
 
 
 
 
*
 
Director
Richard W. Roedel
 
 
 
 
 
*
 
Director
Christoph v. Grolman
 
 
 
 
 
*By: /s/ Stephen Green
 
 
Stephen Green
 
 
Attorney-in-Fact
 
 



89

Exhibit


Exhibit 10.34

EXECUTION VERSION

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (the “Amendment”), dated as of November 5, 2015, is among:
(a)    IHS INC., a Delaware corporation (“IHS”);
(b)    IHS HOLDING INC., a Delaware corporation, and IHS GLOBAL INC., a Delaware corporation (collectively, the “US Borrowers”);
(c)    IHS GROUP HOLDINGS LIMITED, a company incorporated under the laws of England and Wales, IHS GLOBAL LIMITED, a company incorporated under the laws of England and Wales, IHS GLOBAL S.A., a company organized under the laws of Switzerland, IHS GLOBAL CANADA LIMITED, a company organized under the laws of the province of Alberta in Canada, IHS EMEA HOLDING S.À R.L., a private limited liability (société àresponsabilité limitée) company incorporated under Luxembourg law, and IHS LUXEMBOURG S.À R.L. a private limited liability (société àresponsabilité limitée) company incorporated under Luxembourg law (collectively, the “Foreign Borrowers” and the Foreign Borrowers and the US Borrowers are herein collectively referred to as the “Borrowers”);
(d)    the Lenders party hereto; and
(e)    BANK OF AMERICA, N.A. as Administrative Agent (the “Administrative Agent”).
RECITALS:

The Borrowers, the Administrative Agent, and the Lenders party thereto have entered into the Credit Agreement dated as of October 17, 2014 (as amended or otherwise modified from time to time, the “Agreement”).
The Borrowers, the Administrative Agent and the Lenders now desire to amend the Agreement as herein set forth.
NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows effective as of the date hereof unless otherwise indicated:
ARTICLE 1.
Definitions
Section 1.1.    Definitions. Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Agreement, as amended hereby.
ARTICLE 2.
Amendments
Section 2.1.    Amendment to Schedule 2.01. The Available Currency Commitment portion of Schedule 2.01 of the Agreement is hereby amended and restated in its entirety in the form of Schedule 1 attached to this Amendment.
Section 2.2.    Amendment to Section 1.01 (Definitions). The following definitions are added to Section 1.01 of the Agreement in proper alphabetical order and such new definitions shall read as follows:

FIRST AMENDMENT TO CREDIT AGREEMENT, Page 1



First Amendment” means the First Amendment dated as of November 5, 2015 to this Agreement.
First Amendment Effective Date” means November 5, 2015, the date on which the First Amendment became effective.
Section 2.3.    Amendment to Section 1.01 (Definitions). The following definitions set forth in Section 1.01 of the Agreement are amended in their respective entireties to read as follows:
Available Currency Commitment” means, with respect to each Available Currency Lender, the commitment of such Available Currency Lender to make Available Currency Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Available Currency Lender’s Available Currency Loans hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 10.04. The initial amount of each Available Currency Lender’s Available Currency Commitment on the First Amendment Effective Date is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Available Currency Commitment. As of the First Amendment Effective Date, the aggregate amount of the Available Currency Lenders’ Available Currency Commitments is $1,300,000,000.
Foreign Currency Limit” means $1,300,000,000.
Section 2.4.    Amendment to Section 2.02(c) (Minimum Amounts; Limitation on Fixed Rate Borrowings). The last proviso in Section 2.02(c) of the Agreement is amended in its entirety to read as follows:
provided that there shall not at any time be more than a total of eight Fixed Rate Borrowings outstanding at the same time.”
Section 2.5.    Amendment to Section 2.07(b) (Delivery of Interest Election Request). Section 2.07(b) of the Agreement is amended by inserting the phrase “or such other form as the Administrative Agent shall approve” immediately after the word “hereto” in the second sentence thereof.
Section 2.6.    Amendment to Section 6.05 (Asset Sales). Section 6.05(c) of the Agreement is amended in its entirety to read as follows:
“(c)    other sales, transfers and other dispositions of assets (other than Equity Interests in a Material Subsidiary) that are not permitted by any other clause of this Section as long as at the time of such sale, transfer or disposition (i) no Default shall exist or would result, (ii) such assets, together with any other assets sold in reliance on this clause (c) in the four fiscal quarters most recently ended for which financial statements are available at such time shall not, in the aggregate, account for more than 15% of Consolidated EBITDA or more than 15% of the total revenues of IHS and its Subsidiaries, on a consolidated basis, in each case on a cumulative basis during the four fiscal quarters most recently ended for which financial statements are available at such time, and (iii) such assets and all other assets sold in reliance on this clause (c) during the term of this Agreement shall not, in the aggregate, account for more than 30% of Consolidated EBITDA or more than 30% of the total revenues of IHS and its Subsidiaries, on a consolidated basis, in each case on a cumulative basis during the four fiscal quarters most recently ended for which financial statements are available at such time;”
ARTICLE 3.
Available Currency Commitments
Section 3.1.    Increase in Available Currency Commitments. On the First Amendment Effective Date the aggregate amount of the Available Currency Lenders’ Available Currency Commitments will be increased to $1,300,000,000. Each Available Currency Lender whose Availability Currency Commitment is changing on the First Amendment Effective Date as a result of this Amendment agrees that its Available Currency Commitment on the First Amendment Effect Date is set forth on Schedule 1 to this Amendment.

FIRST AMENDMENT TO CREDIT AGREEMENT, Page 2



ARTICLE 4.
Conditions Precedent
Section 4.1.    Conditions. The effectiveness of Articles 2 and 3 of this Amendment is subject to the satisfaction of the following conditions precedent:
(a)    The Administrative Agent shall have received all of the following, each dated (unless otherwise indicated) the date of this Amendment, in form and substance satisfactory to the Administrative Agent:
(i)    Amendment. This Amendment executed by the Loan Parties, the Required Lenders and each Available Currency Lender whose Available Currency Commitment is changing pursuant to this Amendment; and
(ii)    Fees and Expenses. Evidence that all fees, expenses and other charges in connection with this Amendment shall have been paid in full.
(b)    The First Amendment to the Term Loan Credit Agreement shall have become effective simultaneously with this Amendment.
(c)    All proceedings taken in connection with the transactions contemplated by this Amendment and all documentation and other legal matters incident thereto shall be satisfactory to the Administrative Agent and its legal counsel.
ARTICLE 5.
Ratifications, Representations and Warranties
Section 5.1.    Ratifications. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of the Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect. The Borrowers, the Administrative Agent, and the Lenders party hereto agree that the Agreement as amended hereby and the other Loan Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective terms. Each Loan Party agrees that the obligations, indebtedness and liabilities of the Borrowers arising under this Amendment and the promissory notes executed pursuant hereto are “Obligations” as defined in the Agreement. For all matters arising prior to the effective date of this Amendment (including, without limitation, the accrual and payment of interest and fees and compliance with financial covenants), the terms of the Agreement (as unmodified by this Amendment) shall control and are hereby ratified and confirmed.
Section 5.2.    Representations and Warranties. IHS hereby represents and warrants to the Administrative Agent and the Lenders as follows:
(a)    At the time of and immediately after giving effect to this Amendment, no Default exists;
(b)    both immediately before and after giving effect to this Amendment, the representations and warranties set forth in the Loan Documents are true and correct in all material respects (or, in the case of any representation and warranty qualified by materiality, in all respects) on and as of the date hereof with the same effect as though made on and as of such date except with respect to any representations and warranties that specifically relate to any earlier date in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date (or, in the case of any representation and warranty qualified by materiality, in all respects as of such earlier date); and
(c)    the execution, delivery and performance of this Amendment have been duly authorized by all necessary action on the part of each Loan Party and do not and will not: (1) violate any provision of law applicable to any Loan Party, the articles of incorporation, bylaws, partnership agreement, membership agreement, memorandum

FIRST AMENDMENT TO CREDIT AGREEMENT, Page 3



of association or other applicable governing document of any Loan Party or any order, judgment, or decree of any court or agency of government binding upon any Loan Party; (2) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of any Loan Party; (3) result in or require the creation or imposition of any material lien upon any of the assets of any Loan Party; or (4) require any approval or consent of any Person under any material contractual obligation of any Loan Party.
IN ADDITION, TO INDUCE THE ADMINISTRATIVE AGENT AND THE LENDERS TO AGREE TO THE TERMS OF THIS AMENDMENT, EACH LOAN PARTY (BY ITS EXECUTION BELOW) REPRESENTS AND WARRANTS THAT AS OF THE DATE OF ITS EXECUTION OF THIS AMENDMENT THERE ARE NO CLAIMS OR OFFSETS AGAINST OR RIGHTS OF RECOUPMENT WITH RESPECT TO OR DEFENSES OR COUNTERCLAIMS TO ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS AND IN ACCORDANCE THEREWITH IT:
(a)    WAIVER. WAIVES ANY AND ALL SUCH CLAIMS, OFFSETS, RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE OF ITS EXECUTION OF THIS AMENDMENT; AND
(b)    RELEASE. RELEASES AND DISCHARGES THE ADMINISTRATIVE AGENT AND THE LENDERS, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SHAREHOLDERS, AFFILIATES AND ATTORNEYS (COLLECTIVELY THE “RELEASED PARTIES”) FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, RIGHTS, CAUSES OF ACTION OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, IN LAW OR EQUITY, WHICH ANY LOAN PARTY EVER HAD, NOW HAS, CLAIMS TO HAVE OR MAY HAVE AGAINST ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF FROM OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY.
ARTICLE 6.
Miscellaneous
Section 6.1.    Survival of Representations and Warranties. All representations and warranties made in this Amendment or any other Loan Document including any Loan Document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by the Administrative Agent or any Lender or any closing shall affect the representations and warranties or the right of the Administrative Agent or any Lender to rely upon them.
Section 6.2.    Reference to Agreement. Each of the Loan Documents, including the Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Agreement as amended hereby, are hereby amended so that any reference in such Loan Documents to the Agreement shall mean a reference to the Agreement as amended hereby.
Section 6.3.    Expenses of Administrative Agent. As provided in the Agreement, IHS agrees to pay on demand all costs and expenses incurred by the Administrative Agent in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto, including without limitation, the costs and fees of the Administrative Agent's legal counsel.
Section 6.4.    Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.
Section 6.5.    Applicable Law. This Amendment shall be governed by and construed in accordance with the applicable law pertaining in the State of New York, other than those conflict of law provisions that would defer to the substantive laws of another jurisdiction. This governing law election has been made by the parties in reliance (at least in part) on Section 5-1401 of the General Obligations Law of the State of New York, as amended (as and to the extent applicable), and other applicable law.

FIRST AMENDMENT TO CREDIT AGREEMENT, Page 4



Section 6.6.    Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the Administrative Agent, each Lender and the Borrowers and their respective successors and permitted assigns, except no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lenders. Any assignment or other transfer made in violation of this Section or Section 10.04 of the Agreement shall be void.
Section 6.7.    Counterparts. This Amendment may be executed in one or more counterparts and on telecopy or other electronically reproduced counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic communication shall be effective as delivery of a manually executed counterpart of this Amendment.
Section 6.8.    Effect of Waiver. No consent or waiver, express or implied, by the Administrative Agent or any Lender to or for any breach of or deviation from any covenant, condition or duty by any Loan Party shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition or duty.
Section 6.9.    Headings. The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
Section 6.10.    Entire Agreement. This Amendment and all other instruments, documents, and agreements executed and delivered in connection with this Amendment embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations and understandings, whether written or oral, relating to this Amendment, and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto. There are no oral agreements among the parties hereto. This Amendment shall be deemed to be a Loan Document for all purposes in connection with the Agreement and the other Loan Documents.
[Remainder of Page Intentionally Left Blank]




FIRST AMENDMENT TO CREDIT AGREEMENT, Page 5



SCHEDULE 1



Lender
UK DTTP Number and Jurisdiction
(if any)
Available Currency Commitment
Bank of America, N.A.
 
$135,000,000
JPMorgan Chase Bank, N.A.
Passport No.: 13/M/0268710/DTTP; Jurisdiction of Taxation: U.S.
$135,000,000
Royal Bank of Canada
 
$120,000,000
Wells Fargo Bank, N.A.
 
$120,000,000
Compass Bank
 
$95,000,000
TD Bank, N.A.
 
$95,000,000
Citizens Bank, N.A.
 
$80,000,000
PNC Bank, National Association
Passport No.: 13/P/63904/DTTP; Jurisdiction of Taxation: U.S.
$80,000,000
U.S. Bank, National Association
 
$80,000,000
Goldman Sachs Bank USA
 
$65,000,000
HSBC Bank USA, N.A.
 
$65,000,000
Sumitomo Mitsui Banking Corporation
Passport No.: 43/S/274647/DTTP; Jurisdiction of Taxation: Japan
$50,000,000
BNP Paribas
 
$28,500,000
Bank of the West
 
$21,500,000
SunTrust Bank
Passport No.: 13/S/67712/DTTP; Jurisdiction of Taxation: U.S.
$50,000,000
Morgan Stanley Bank, N.A.
 
$40,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
 
$40,000,000
 
                                    Total
$1,300,000,000


FIRST AMENDMENT TO CREDIT AGREEMENT, Page 6



Executed as of the date first written above.
BORROWERS:

IHS INC.
IHS HOLDING INC.
IHS GLOBAL INC.


By:    /s/ Grant Nicholson    


IHS GROUP HOLDINGS LIMITED
IHS GLOBAL LIMITED
By:    /s/ Grant Nicholson    


IHS GLOBAL S.A.
By:    /s/ Grant Nicholson    


IHS GLOBAL CANADA LIMITED.
By:    /s/ Grant Nicholson    


IHS EMEA HOLDING S.A.R.L.
IHS LUXEMBOURG S.A.R.L.

By:    /s/ Grant Nicholson    

Grant Nicholson
Corporate VP and Treasurer


[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




ADMINISTRATIVE AGENT:
BANK OF AMERICA, N.A.,
as Administrative Agent,
By:    /s/ Angela Larkin    
Name: Angela Larkin
Title: Assistant Vice President


[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




LENDER:
BANK OF AMERICA, N.A.
as Issuing Bank, Swingline Lender and as Lender
By:    /s/ Mukesh Singh    
Name: Mukesh Singh
Title: Vice President



[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]






LENDER:
JPMORGAN CHASE BANK, N.A.
By:    /s/ Gregory T. Martin    
Name: GREGORY T. MARTIN
Title: AUTHORIZED SIGNER

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
JPMORGAN CHASE BANK, N.A., TORONTO BRANCH
By:    /s/ Michael N. Tam    
Name: Michael N. Tam
Title: Senior Vice President

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
ROYAL BANK OF CANADA
By:    /s/ Kevin Quan    
Name: KEVIN QUAN
Title: AUTHORIZED SIGNATORY

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
WELLS FARGO BANK N.A.
By:    /s/ Kieran Mahon    
Name: KIERAN MAHON
Title: DIRECTOR


[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




LENDER:
BBVA COMPASS BANK
By:    /s/ Joseph Nimmons    
Name: JOSEPH NIMMONS
Title: SENIOR VICE PRESIDENT

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
TD BANK, N.A.
By:    /s/ Craig Welch    
Name: Craig Welch
Title: SVP

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




LENDER:
CITIZEN BANK, N.A.
By:    /s/ Christopher J. DeLauro    
Name: CHRISTOPHER J. DELAURO
Title: VICE PRESIDENT

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




LENDER:
PNC BANK, NATIONAL ASSOCIATION
By:    /s/ Mahir J. Desai    
Name: MAHIR J. DESAI
Title: ASSISTANT VICE PRESIDENT

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]



 
LENDER:
U.S. BANK NATIONAL ASSOCIATION
By:    /s/ Jeff Benedix    
Name: JEFF BENEDIX
Title: VICE PRESIDENT

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
GOLDMAN SACHS BANK USA
By:    /s/ Jerry Li    
Name: JERRY LI
Title: AUTHORIZED SIGNATORY

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
HSBC BANK USA, N.A.
By:    /s/ Rumesha Ahmed    
Name: RUMESHA AHMED
Title: VICE PRESIDENT

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
SUMITOMO MITSUI BANKING CORP.
By:    /s/ James Weinstein    
Name: JAMES WEINSTEIN
Title: MANAGING DIRECTOR

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
BNP PARIBAS
By:    /s/ Charles De Clapiers    
Name: CHARLES DE CLAPIERS
Title: DIRECTOR




By:    /s/ Mathew Harvey    
Name: MATHEW HARVEY
Title: MANAGING DIRECTOR

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
BANK OF THE WEST
By:    /s/ Robert J. Likos    
Name: ROBERT J. LIKOS
Title: DIRECTOR


[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




LENDER:
SUNTRUST BANK
By:    /s/ Jared Cohen    
Name: JARED COHEN
Title: VICE PRESIDENT


[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




LENDER:
MORGAN STANLEY BANK, N.A.
By:    /s/ Roberto Ellinghaus    
Name: ROBERTO ELLINGHAUS
Title: AUTHORIZED SIGNATORY

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





LENDER:
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
By:    /s/ Lillian Kim    
Name: LILLIAN KIM
Title: DIRECTOR

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]





CONSENT OF DOMESTIC GUARANTORS

Each of the undersigned Domestic Guarantors: (i) consents and agrees to this Amendment including, without limitation, Section 5.2 thereof; (ii) agrees that the Loan Documents to which it is a party shall remain in full force and effect and shall continue to be the legal, valid and binding obligation of such Domestic Guarantor enforceable against it in accordance with their respective terms; and (iii) agrees that the obligations, indebtedness and liabilities of the Borrowers arising under this Amendment and the promissory notes executed pursuant hereto are “Obligations” as defined in the Agreement and “Guaranteed Indebtedness” as defined in the U.S. Guaranty Agreement.

DOMESTIC GUARANTORS

IHS INC.
IHS HOLDING INC.
IHS GLOBAL INC.


By:    /s/ Grant Nicholson        

R.L. POLK & CO.
CARFAX, INC.


By:    /s/ Grant Nicholson        

Grant Nicholson
Corporate VP and Treasurer

[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]




CONSENT OF FOREIGN GUARANTORS

Each of the undersigned Foreign Guarantors: (i) consents and agrees to this Amendment including, without limitation, Section 5.2 thereof; (ii) agrees that the Loan Documents to which it is a party shall remain in full force and effect and shall continue to be the legal, valid and binding obligation of such Foreign Guarantor enforceable against it in accordance with their respective terms; and (iii) agrees that the obligations, indebtedness and liabilities of the Foreign Borrowers arising under this Amendment and the promissory notes executed pursuant hereto are “Obligations” as defined in the Agreement and “Guaranteed Indebtedness” as defined in the Foreign Guaranty Agreement.

FOREIGN GUARANTORS

IHS GROUP HOLDINGS LIMITED
IHS INTERNATIONAL HOLDINGS LIMITED
IHS GLOBAL LIMITED
By:
/s/ Grant Nicholson        
    


IHS GLOBAL S.A.
By:    /s/ Grant Nicholson        
    



IHS GLOBAL CANADA LIMITED
By:
/s/ Grant Nicholson        
    
IHS EMEA HOLDING S.A.R.L.
IHS LUXEMBOURG S.A.R.L.

By:
/s/ Grant Nicholson        

Grant Nicholson
Corporate VP and Treasurer







[Signature Page to Consent to First Amendment to IHS Credit Agreement (Revolving)]

Exhibit


Exhibit 10.38

EXECUTION VERSION

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (the “Amendment”), dated as of November 5, 2015, is among:
(a)    IHS INC., a Delaware corporation (“IHS”);
(b)    IHS GLOBAL INC., a Delaware corporation (the “Borrower”);
(c)    the LENDERS party hereto; and
(d)    BANK OF AMERICA, N.A. as Administrative Agent (the “Administrative Agent”).
RECITALS:

IHS, the Borrower, the Administrative Agent, and the Lenders party thereto have entered into the Credit Agreement dated as of October 17, 2014 (amending and restating the Credit Agreement dated as of July 15, 2013 and as amended or otherwise modified from time to time, the “Agreement”).
IHS, the Borrower, the Administrative Agent and the Lenders now desire to amend the Agreement as herein set forth.
NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows effective as of the date hereof unless otherwise indicated:
ARTICLE 1.
Definitions
Section 1.1.    Definitions. Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Agreement, as amended hereby.
ARTICLE 2.
Amendments
Section 2.1.    Amendment to Section 2.07(b) (Delivery of Interest Election Request). Section 2.07(b) of the Agreement is amended by inserting the phrase “or such other form as the Administrative Agent shall approve” immediately after the word “hereto” in the second sentence thereof.
Section 2.2.    Amendment to Section 6.05 (Asset Sales). Section 6.05(c) of the Agreement is amended in its entirety to read as follows:
“(c)    other sales, transfers and other dispositions of assets (other than Equity Interests in a Material Subsidiary) that are not permitted by any other clause of this Section as long as at the time of such sale, transfer or disposition (i) no Default shall exist or would result, (ii) such assets, together with any other assets sold in reliance on this clause (c) in the four fiscal quarters most recently ended for which financial statements are available at such time shall not, in the aggregate, account for more than 15% of Consolidated EBITDA or more than 15% of the total revenues of IHS and its Subsidiaries, on a consolidated basis, in each case on a cumulative basis during the four fiscal quarters most recently ended for which financial statements are available at such time, and (iii) such assets and all other assets sold in reliance on this clause (c) during the term of this Agreement shall not, in the aggregate,

FIRST AMENDMENT TO CREDIT AGREEMENT, Page 1





account for more than 30% of Consolidated EBITDA or more than 30% of the total revenues of IHS and its Subsidiaries, on a consolidated basis, in each case on a cumulative basis during the four fiscal quarters most recently ended for which financial statements are available at such time.”
ARTICLE 3.
Conditions Precedent
Section 3.1.    Conditions. The effectiveness of Article 2 of this Amendment is subject to the satisfaction of the following conditions precedent:
(a)    The Administrative Agent shall have received all of the following, each dated (unless otherwise indicated) the date of this Amendment, in form and substance satisfactory to the Administrative Agent:
(i)    Amendment. This Amendment executed by the Loan Parties and the Required Lenders; and
(ii)    Fees and Expenses. Evidence that all fees, expenses and other charges in connection with this Amendment shall have been paid in full.
(b)    The First Amendment to the Revolving Facility Credit Agreement shall have become effective simultaneously with this Amendment.
(c)    All proceedings taken in connection with the transactions contemplated by this Amendment and all documentation and other legal matters incident thereto shall be satisfactory to the Administrative Agent and its legal counsel.
ARTICLE 4.
Ratifications, Representations and Warranties
Section 4.1.    Ratifications. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of the Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect. IHS, the Borrower, the Administrative Agent, and the Lenders party hereto agree that the Agreement as amended hereby and the other Loan Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective terms. Each Loan Party agrees that the obligations, indebtedness and liabilities of the Borrower arising under this Amendment are “Obligations” as defined in the Agreement. For all matters arising prior to the effective date of this Amendment (including, without limitation, the accrual and payment of interest and fees and compliance with financial covenants), the terms of the Agreement (as unmodified by this Amendment) shall control and are hereby ratified and confirmed.
Section 4.2.    Representations and Warranties. IHS hereby represents and warrants to the Administrative Agent and the Lenders as follows:
(a)    At the time of and immediately after giving effect to this Amendment, no Default exists;
(b)    both immediately before and after giving effect to this Amendment, the representations and warranties set forth in the Loan Documents are true and correct in all material respects (or, in the case of any representation and warranty qualified by materiality, in all respects) on and as of the date hereof with the same effect as though made on and as of such date except with respect to any representations and warranties that specifically relate to any earlier date in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date (or, in the case of any representation and warranty qualified by materiality, in all respects as of such earlier date); and

FIRST AMENDMENT TO CREDIT AGREEMENT, Page 2





(c)    the execution, delivery and performance of this Amendment have been duly authorized by all necessary action on the part of each Loan Party and do not and will not: (1) violate any provision of law applicable to any Loan Party, the articles of incorporation, bylaws, partnership agreement, membership agreement, memorandum of association or other applicable governing document of any Loan Party or any order, judgment, or decree of any court or agency of government binding upon any Loan Party; (2) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of any Loan Party; (3) result in or require the creation or imposition of any material lien upon any of the assets of any Loan Party; or (4) require any approval or consent of any Person under any material contractual obligation of any Loan Party.
IN ADDITION, TO INDUCE THE ADMINISTRATIVE AGENT AND THE LENDERS TO AGREE TO THE TERMS OF THIS AMENDMENT, EACH LOAN PARTY (BY ITS EXECUTION BELOW) REPRESENTS AND WARRANTS THAT AS OF THE DATE OF ITS EXECUTION OF THIS AMENDMENT THERE ARE NO CLAIMS OR OFFSETS AGAINST OR RIGHTS OF RECOUPMENT WITH RESPECT TO OR DEFENSES OR COUNTERCLAIMS TO ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS AND IN ACCORDANCE THEREWITH IT:
(a)    WAIVER. WAIVES ANY AND ALL SUCH CLAIMS, OFFSETS, RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE OF ITS EXECUTION OF THIS AMENDMENT; AND
(b)    RELEASE. RELEASES AND DISCHARGES THE ADMINISTRATIVE AGENT AND THE LENDERS, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SHAREHOLDERS, AFFILIATES AND ATTORNEYS (COLLECTIVELY THE “RELEASED PARTIES”) FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, RIGHTS, CAUSES OF ACTION OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, IN LAW OR EQUITY, WHICH ANY LOAN PARTY EVER HAD, NOW HAS, CLAIMS TO HAVE OR MAY HAVE AGAINST ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF FROM OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY.
ARTICLE 5.
Miscellaneous
Section 5.1.    Survival of Representations and Warranties. All representations and warranties made in this Amendment or any other Loan Document, including any Loan Document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by the Administrative Agent or any Lender or any closing shall affect the representations and warranties or the right of the Administrative Agent or any Lender to rely upon them.
Section 5.2.    Reference to Agreement. Each of the Loan Documents, including the Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Agreement as amended hereby, are hereby amended so that any reference in such Loan Documents to the Agreement shall mean a reference to the Agreement as amended hereby.
Section 5.3.    Expenses of Administrative Agent. As provided in the Agreement, IHS agrees to pay on demand all costs and expenses incurred by the Administrative Agent in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto, including without limitation, the costs and fees of the Administrative Agent's legal counsel.
Section 5.4.    FATCA. For purposes of determining withholding Taxes imposed under FATCA, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

FIRST AMENDMENT TO CREDIT AGREEMENT, Page 3





Section 5.5.    Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.
Section 5.6.    Applicable Law. This Amendment shall be governed by and construed in accordance with the applicable law pertaining in the State of New York, other than those conflict of law provisions that would defer to the substantive laws of another jurisdiction. This governing law election has been made by the parties in reliance (at least in part) on Section 5-1401 of the General Obligations Law of the State of New York, as amended (as and to the extent applicable), and other applicable law.
Section 5.7.    Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the Administrative Agent, each Lender, IHS, the Borrower and their respective successors and permitted assigns, except no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lenders. Any assignment or other transfer made in violation of this Section or Section 10.04 of the Agreement shall be void.
Section 5.8.    Counterparts. This Amendment may be executed in one or more counterparts and on telecopy or other electronically reproduced counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic communication shall be effective as delivery of a manually executed counterpart of this Amendment.
Section 5.9.    Effect of Waiver. No consent or waiver, express or implied, by the Administrative Agent or any Lender to or for any breach of or deviation from any covenant, condition or duty by any Loan Party shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition or duty.
Section 5.10.    Headings. The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
Section 5.11.    Entire Agreement. This Amendment and all other instruments, documents, and agreements executed and delivered in connection with this Amendment embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations and understandings, whether written or oral, relating to this Amendment, and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto. There are no oral agreements among the parties hereto. This Amendment shall be deemed to be a Loan Document for all purposes in connection with the Agreement and the other Loan Documents.
[Remainder of Page Intentionally Left Blank]




FIRST AMENDMENT TO CREDIT AGREEMENT, Page 4





Executed as of the date first written above.
IHS INC.
IHS GLOBAL INC.


By:    /s/ Grant Nicholson    
Grant Nicholson
Corporate VP and Treasurer












































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]








ADMINISTRATIVE AGENT:
BANK OF AMERICA, N.A.,
as Administrative Agent,
By:    /s/ Angela Larkin    
Name: Angela Larkin
Title: Assistant Vice President
















[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]





LENDER:
BANK OF AMERICA, N.A,
as Lender
By:    /s/ Mukesh Singh    
Name: Mukesh Singh
Title: Vice President

















[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]







LENDER:
JPMORGAN CHASE BANK, N.A.
By:    /s/ Gregory T. Martin    
Name: GREGORY T. MARTIN
Title: AUTHORIZED SIGNER






































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
ROYAL BANK OF CANADA
By:    /s/ Kevin Quan    
Name: KEVIN QUAN
Title: AUTHORIZED SIGNATORY










































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
WELLS FARGO BANK N.A.
By:    /s/ Kieran Mahon    
Name: Kieran Mahon
Title: Director









































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]





LENDER:
BBVA COMPASS BANK
By:    /s/ Joseph Nimmons    
Name: JOSEPH NIMMONS
Title: SENIOR VICE PRESIDENT










































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
TD BANK, N.A.
By:    /s/ Craig Welch    
Name: Craig Welch
Title: SVP








































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
CITIZENS BANK, N.A.
By:    /s/ Christopher J. DeLauro    
Name: CHRISTOPHER J. DELAURO
Title: VICE PRESIDENT




















[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
PNC BANK, NATIONAL ASSOCIATION
By:    /s/ Mahir J. Desai    
Name: MAHIR J. DESAI
Title: ASSISTANT VICE PRESIDENT









































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
U. S. BANK NATIONAL ASSOCIATION
By:    /s/ Jeff Benedix    
Name: JEFF BENEDIX
Title: VICE PRESIDENT










































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
GOLDMAN SACHS BANK USA
By:    /s/ Jerry Li    
Name: JERRY LI
Title: AUTHORIZED SIGNATORY









































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
HSBC BANK USA, N.A.
By:    /s/ Rumesha Ahmed    
Name: RUMESHA AHMED
Title: VICE PRESIDENT













































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]





LENDER:
SUMITOMO MITSUI BANKING CORP.
By:    /s/ James Weinstein    
Name: JAMES WEINSTEIN
Title: MANAGING DIRECTOR










































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
BNP PARIBAS
By:    /s/ Charles De Clapiers    
Name: CHARLES DE CLAPIERS
Title: DIRECTOR




By:    /s/ Mathew Harvey    
Name: MATHEW HARVEY
Title: MANAGING DIRECTOR


































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
BANK OF THE WEST
By:    /s/ Robert J. Likos    
Name: ROBERT J. LIKOS
Title: DIRECTOR









































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
SUNTRUST BANK
By:    /s/ Jared Cohen    
Name: JARED COHEN
Title: VICE PRESIDENT









































[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]






LENDER:
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
By:    /s/ Lillian Kim    
Name: LILLIAN KIM
Title: DIRECTOR
























[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]





CONSENT OF GUARANTORS

Each of the undersigned Guarantors: (i) consents and agrees to this Amendment including, without limitation, Section 4.2 thereof; (ii) agrees that the Loan Documents to which it is a party shall remain in full force and effect and shall continue to be the legal, valid and binding obligations of such Guarantor enforceable against it in accordance with their respective terms; and (iii) agrees that the obligations, indebtedness and liabilities of the Borrower arising under this Amendment are “Obligations” as defined in the Agreement and “Guaranteed Indebtedness” as defined in the Guaranty Agreement.

GUARANTORS

IHS INC.
IHS GLOBAL INC.
IHS HOLDING INC.


By:    /s/ Grant Nicholson        

R.L. POLK & CO.
CARFAX, INC.


By:    /s/ Grant Nicholson        

Grant Nicholson
Corporate VP and Treasurer

























[Signature Page to First Amendment to IHS Global Inc. Credit Agreement (Term Loan)]


Exhibit

Exhibit 21

Subsidiaries of the Registrant
 
 
 
Significant Subsidiary
 
Jurisdiction of
Incorporation/Formation
IHS Global Inc.
 
Delaware
IHS Global Limited
 
United Kingdom
IHS Group Holdings Limited
 
United Kingdom
IHS International Holdings Limited
 
United Kingdom
R. L. Polk & Co.
 
Delaware
CARFAX, Inc.
 
Pennsylvania



Exhibit

Exhibit 23


Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements (Form S-8 Nos. 333-129751, 333-129757, 333-129758, 333-151082, 333-185553; and Form S-3 No. 333-207215) of IHS Inc. of our reports dated January 15, 2016, with respect to the consolidated financial statements of IHS Inc. and the effectiveness of internal control over financial reporting of IHS Inc. included in this Annual Report (Form 10-K) of IHS Inc. for the year ended November 30, 2015.


/s/ Ernst & Young LLP

Denver, Colorado
January 15, 2016





Exhibit

Exhibit 24
POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned, being a director of IHS Inc., a Delaware corporation (the “Company”), hereby constitutes and appoints Jerre Stead, Todd Hyatt, Heather Matzke-Hamlin, Stephen Green, and each of them, his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead in any and all capacities, to sign one or more Annual Reports for the Company’s fiscal year ended November 30, 2015, on Form 10-K under the Securities Exchange Act of 1934, as amended, or such other form as any such attorney-in-fact may deem necessary or desirable, and any and all amendments thereto, each in such form as they or any one of them may approve, and to file the same with all exhibits thereto and other documents in connection therewith with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done so that such Annual Report shall comply with the Securities Exchange Act of 1934, as amended, and the applicable Rules and Regulations adopted or issued pursuant thereto, as fully and to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them or their substitute or resubstitute, may lawfully do or cause to be done by virtue hereof.

This Power of Attorney has been signed below as of the 15th day of January, 2016, by the following persons in the capacities indicated.
Signature
 
Title
/s/ Ruann F. Ernst 
 
Director
Ruann F. Ernst
 
 
 
 
 
/s/ Brian H. Hall
 
Director
Brian H. Hall
 
 
 
 
 
/s/ Roger Holtback 
 
Director
Roger Holtback
 
 
 
 
 
/s/ Christoph v. Grolman
 
Director
Christoph v. Grolman
 
 
 
 
 
/s/ Balakrishnan S. Iyer
 
Director
Balakrishnan S. Iyer
 
 
 
 
 
/s/ Deborah Doyle McWhinney
 
Director
Deborah Doyle McWhinney
 
 
 
 
 
/s/ Jean-Paul Montupet
 
Director
Jean-Paul Montupet
 
 
 
 
 
/s/ Richard W. Roedel 
 
Director
Richard W. Roedel
 
 


Exhibit


Exhibit 31.1
CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT, AS AMENDED
I, Jerre L. Stead, certify that:
1.
I have reviewed this annual report on Form 10-K of IHS Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: January 15, 2016
 
    /s/ Jerre L. Stead
 
Jerre L. Stead
 
Chairman and Chief Executive Officer
 




Exhibit


Exhibit 31.2
CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT, AS AMENDED
I, Todd S. Hyatt, certify that:
1.
I have reviewed this annual report on Form 10-K of IHS Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: January 15, 2016
 
    /s/ Todd S. Hyatt
 
Todd S. Hyatt
 
Executive Vice President and Chief Financial Officer
 




Exhibit


Exhibit 32
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Each of the undersigned hereby certifies, for the purposes of section 1350 of chapter 63 of title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in his capacity as an officer of IHS Inc. (the “Company”), that, to his knowledge, the annual report on Form 10-K of the Company for the period ended November 30, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company. This written statement is being furnished to the Securities and Exchange Commission as an exhibit to such report. A signed original of this statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
Date: January 15, 2016
 
    /s/ Jerre L. Stead
 
Jerre L. Stead
 
Chairman and Chief Executive Officer
 
 
 
    /s/ Todd S. Hyatt
 
Todd S. Hyatt
 
Executive Vice President and Chief Financial Officer
 





ihs-20151130.xml
Attachment: XBRL INSTANCE DOCUMENT


ihs-20151130.xsd
Attachment: XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT


ihs-20151130_cal.xml
Attachment: XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT


ihs-20151130_def.xml
Attachment: XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT


ihs-20151130_lab.xml
Attachment: XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT


ihs-20151130_pre.xml
Attachment: XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT


v3.3.1.900
Document and Entity Information - USD ($)
$ in Billions
12 Months Ended
Nov. 30, 2015
Dec. 31, 2015
May. 31, 2015
Document and Entity Information [Abstract]      
Entity Registrant Name IHS Inc.    
Entity Central Index Key 0001316360    
Current Fiscal Year End Date --11-30    
Entity Filer Category Large Accelerated Filer    
Document Type 10-K    
Document Period End Date Nov. 30, 2015    
Document Fiscal Year Focus 2015    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Common Stock, Shares Outstanding   67,143,491  
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Public Float     $ 5.6

v3.3.1.900
Consolidated Balance Sheets - USD ($)
$ in Thousands
Nov. 30, 2015
Nov. 30, 2014
Current assets:    
Cash and cash equivalents $ 291,580 $ 153,156
Accounts receivable, net 355,913 421,374
Income tax receivable 4,585 2,283
Deferred subscription costs 52,752 51,021
Assets held for sale 193,377 0
Other 57,135 60,973
Total current assets 955,342 688,807
Non-current assets:    
Property and equipment, net 314,366 301,419
Intangible assets, net 1,014,691 1,091,109
Goodwill 3,287,459 3,157,324
Deferred income taxes 6,630 5,486
Other 22,593 27,991
Total non-current assets 4,645,739 4,583,329
Total assets 5,601,081 5,272,136
Current liabilities:    
Short-term debt 36,019 36,257
Accounts payable 59,180 52,245
Accrued compensation 105,477 101,875
Accrued royalties 33,306 37,346
Other accrued expenses 118,217 131,147
Income tax payable 23,339 0
Deferred revenue 552,498 596,187
Liabilities held for sale 32,097 0
Total current liabilities 960,133 955,057
Long-term debt 2,095,183 1,806,098
Accrued pension and postretirement liability 26,745 29,139
Deferred income taxes 259,524 271,125
Other liabilities $ 58,619 $ 51,171
Commitments and contingencies
Stockholders' Equity:    
Class A common stock, $0.01 par value per share, 160,000,000 shares authorized, 70,287,707 and 69,391,577 shares issued, and 67,523,885 and 68,372,176 shares outstanding at November 30, 2015 and November 30, 2014, respectively $ 703 $ 694
Additional paid-in capital 1,053,141 956,381
Treasury stock, at cost: 2,763,822 and 1,019,401 shares at November 30, 2015 and November 30, 2014, respectively (317,016) (105,873)
Retained earnings 1,655,262 1,415,069
Accumulated other comprehensive loss (191,213) (106,725)
Total stockholders’ equity 2,200,877 2,159,546
Total liabilities and stockholders’ equity $ 5,601,081 $ 5,272,136

v3.3.1.900
Consolidated Balance Sheets (Parenthetical) - $ / shares
Nov. 30, 2015
Nov. 30, 2014
Stockholders' Equity:    
Class A common stock, par value per share $ 0.01 $ 0.01
Class A common stock, shares authorized 160,000,000 160,000,000
Class A common stock, shares issued 70,287,707 69,391,577
Class A common stock, shares outstanding 67,523,885 68,372,176
Treasury stock, shares 2,763,822 1,019,401

v3.3.1.900
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Revenue $ 555,706 $ 557,813 $ 556,940 $ 513,876 $ 541,132 $ 518,680 $ 529,871 $ 490,104 $ 2,184,335 $ 2,079,787 $ 1,692,003
Operating expenses:                      
Cost of revenue                 819,173 815,153 689,976
Selling, general and administrative                 795,354 789,752 642,074
Depreciation and amortization                 215,080 181,243 138,975
Restructuring charges                 39,359 8,775 11,729
Acquisition-related costs                 1,472 1,901 23,428
Net periodic pension and postretirement expense                 4,478 6,774 11,619
Other expense (income), net                 1,576 (1,295) 228
Total operating expenses                 1,876,492 1,802,303 1,518,029
Operating income                 307,843 277,484 173,974
Interest income                 933 988 1,271
Interest expense                 (70,985) (55,384) (44,582)
Non-operating expense, net                 (70,052) (54,396) (43,311)
Income from continuing operations before income taxes                 237,791 223,088 130,663
Provision for income taxes                 (48,853) (45,126) (14,147)
Income from continuing operations 47,354 56,961 46,673 37,950 53,990 41,909 51,084 30,979 188,938 177,962 116,516
Income from discontinued operations, net 43,123 2,283 4,279 1,570 6,128 4,608 4,408 1,443 51,255 16,587 15,217
Net income $ 90,477 $ 59,244 $ 50,952 $ 39,520 $ 60,118 $ 46,517 $ 55,492 $ 32,422 $ 240,193 $ 194,549 $ 131,733
Basic earnings per share:                      
Income from continuing operations $ 0.70 $ 0.83 $ 0.68 $ 0.55 $ 0.79 $ 0.61 $ 0.75 $ 0.46 $ 2.76 $ 2.61 $ 1.75
Income from discontinued operations, net 0.63 0.03 0.06 0.02 0.09 0.07 0.06 0.02 0.75 0.24 0.23
Net income 1.33 0.87 0.74 0.58 0.88 0.68 0.81 0.48 $ 3.51 $ 2.85 $ 1.98
Weighted average shares used in computing basic earnings per share                 68,450 68,163 66,434
Diluted earnings per share:                      
Income from continuing operations 0.69 0.83 0.68 0.55 0.78 0.61 0.74 0.45 $ 2.73 $ 2.57 $ 1.73
Income from discontinued operations, net 0.63 0.03 0.06 0.02 0.09 0.07 0.06 0.02 0.74 0.24 0.23
Net income $ 1.32 $ 0.86 $ 0.74 $ 0.57 $ 0.87 $ 0.68 $ 0.81 $ 0.47 $ 3.47 $ 2.81 $ 1.95
Weighted average shares used in computing diluted earnings per share                 69,289 69,120 67,442

v3.3.1.900
Consolidated Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Net income $ 90,477 $ 59,244 $ 50,952 $ 39,520 $ 60,118 $ 46,517 $ 55,492 $ 32,422 $ 240,193 $ 194,549 $ 131,733
Other comprehensive income (loss), net of tax:                      
Amount of gain (loss) recognized in AOCI on derivative:                 (5,075) (7,283) 26
Net pension liability adjustment                 460 (5,412) 897
Foreign currency translation adjustment                 (79,873) (37,069) (11,191)
Total other comprehensive income (loss)                 (84,488) (49,764) (10,268)
Comprehensive income                 $ 155,705 $ 144,785 $ 121,465

v3.3.1.900
Consolidated Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Tax on unrealized gain (loss) on hedging activities $ 3,313 $ 4,755 $ 74
Tax on net pension liability adjustment $ (558) $ 3,215 $ (259)

v3.3.1.900
Consolidated Statements of Cash Flows
$ in Thousands
12 Months Ended
Nov. 30, 2015
USD ($)
Nov. 30, 2014
USD ($)
Nov. 30, 2013
USD ($)
Operating activities:      
Net income $ 240,193 $ 194,549 $ 131,733
Reconciliation of net income to net cash provided by operating activities:      
Depreciation and amortization 235,501 202,145 158,737
Stock-based compensation expense 135,386 167,359 162,451
Impairment of assets 4,626 0 1,629
Excess tax benefit from stock-based compensation (5,494) (13,297) (14,334)
Net periodic pension and postretirement expense 4,478 6,774 11,619
Pension and postretirement contributions (5,854) (13,452) (13,299)
Deferred income taxes (34,927) (10,285) (34,312)
Change in assets and liabilities:      
Accounts receivable, net 56,058 36,418 (24,427)
Other current assets (15,569) (8,834) (672)
Accounts payable (4,131) (11,425) (10,069)
Accrued expenses (55) 36,073 50,753
Income tax payable 32,121 6,254 65,887
Deferred revenue (34,229) 29,713 10,378
Other liabilities 4,535 6,107 81
Net cash provided by operating activities 612,639 628,099 496,155
Investing activities:      
Capital expenditures on property and equipment (122,921) (114,453) (90,734)
Acquisitions of businesses, net of cash acquired (369,908) (210,395) (1,487,034)
Intangible assets acquired 0 (714) 0
Change in other assets (3,727) (4,608) 1,347
Settlements of forward contracts 597 6,159 4,524
Net cash used in investing activities (495,959) (324,011) (1,571,897)
Financing activities:      
Proceeds from borrowings 550,000 2,485,000 1,375,000
Repayment of borrowings (261,152) (2,817,236) (268,909)
Payment of debt issuance costs 0 (18,994) (17,360)
Excess tax benefit from stock-based compensation 5,494 13,297 14,334
Proceeds from the exercise of employee stock options 0 0 549
Repurchases of common stock (248,868) (59,928) (97,164)
Net Cash Provided by (Used in) Financing Activities 45,474 (397,861) 1,006,450
Foreign exchange impact on cash balance (22,162) (11,438) (17,349)
Net increase (decrease) in cash and cash equivalents 139,992 (105,211) (86,641)
Cash and cash equivalents at the beginning of the period 153,156 258,367 345,008
Cash and cash equivalents at the end of the period 293,148 153,156 258,367
Cash and cash equivalents associated with discontinued operations at the end of the period (1,568) 0 0
Cash and cash equivalents from continuing operations at the end of the period $ 291,580 $ 153,156 $ 258,367

v3.3.1.900
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Balance, shares at Nov. 30, 2012   65,578,000        
Balance at Nov. 30, 2012 $ 1,584,358 $ 676 $ 681,409 $ (139,821) $ 1,088,787 $ (46,693)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based award activity, shares   938,000        
Stock-based award activity, value 101,509 $ 3 64,383 37,123 0 0
Excess tax benefit on vested shares 14,334 $ 0 14,334 0 0 0
Repurchases of common stock, shares   (468,000)        
Repurchases of common stock, value (46,189) $ 0 0 (46,189) 0 0
Stock Issued During Period, Shares, Acquisitions   1,334,000        
Stock Issued During Period, Value, Treasury Stock Reissued 131,486 $ 0 28,544 102,942 0 0
Net income 131,733 0 0 0 131,733 0
Other comprehensive income (10,268) $ 0 0 0 0 (10,268)
Balance, shares at Nov. 30, 2013   67,382,000        
Balance at Nov. 30, 2013 1,906,963 $ 679 788,670 (45,945) 1,220,520 (56,961)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based award activity, shares   990,000        
Stock-based award activity, value 94,501 $ 15 154,414 (59,928) 0 0
Excess tax benefit on vested shares 13,297 0 13,297 0 0 0
Net income 194,549 0 0 0 194,549 0
Other comprehensive income $ (49,764) $ 0 0 0 0 (49,764)
Balance, shares at Nov. 30, 2014 68,372,176 68,372,000        
Balance at Nov. 30, 2014 $ 2,159,546 $ 694 956,381 (105,873) 1,415,069 (106,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based award activity, shares   810,000        
Stock-based award activity, value 80,488 $ 9 91,266 (10,787) 0 0
Excess tax benefit on vested shares 5,494 $ 0 5,494 0 0 0
Repurchases of common stock, shares   (1,658,000)        
Repurchases of common stock, value (200,356) $ 0 0 (200,356) 0 0
Net income 240,193 0 0 0 240,193 0
Other comprehensive income $ (84,488) $ 0 0 0 0 (84,488)
Balance, shares at Nov. 30, 2015 67,523,885 67,524,000        
Balance at Nov. 30, 2015 $ 2,200,877 $ 703 $ 1,053,141 $ (317,016) $ 1,655,262 $ (191,213)

v3.3.1.900
Business Combinations
12 Months Ended
Nov. 30, 2015
Business Combinations [Abstract]  
Business Combinations
Business Combinations

During the year ended November 30, 2015, we completed the following acquisitions, none of which were material either individually or in the aggregate:

JOC Group Inc. (JOC Group). On December 9, 2014, we acquired JOC Group, a global supplier of U.S. seaborne trade intelligence. We acquired JOC Group in support of our strategy to build integrated workflow solutions that target critical industry and government needs relating to global trade.

Infonetics Research, Inc. (Infonetics). On December 15, 2014, we acquired Infonetics, a provider of communications technology market intelligence. We acquired Infonetics to support our objective of providing customers with a global, end-to-end view of the information and communications technology supply chain.

Rushmore Associates Limited (Rushmore Reviews). On February 3, 2015, we acquired Rushmore Reviews, a service provider for drilling and completions solutions in the oil and gas industry. We acquired Rushmore Reviews in order to complement our existing set of well information assets and expand them globally.

Dataium. On March 25, 2015, we acquired Dataium, a U.S.-based company that provides business intelligence and analysis to the automotive industry. We acquired Dataium in order to enhance our automotive offerings with Dataium's compilation and analysis of online automotive shopping behavior and markets.

Root Wireless, Inc. (RootMetrics). On April 17, 2015, we acquired RootMetrics, a provider of mobile network analytics. We acquired RootMetrics in order to strengthen our position in telecommunications analytics and market intelligence, particularly related to the mobile user experience.

The following table summarizes the preliminary purchase price allocation, net of acquired cash, for all acquisitions completed in 2015 (in thousands):
 
Total
Assets:
 
Current assets
$
18,414

Property and equipment
1,890

Intangible assets
139,422

Goodwill
271,070

Other long-term assets
1,985

Total assets
432,781

Liabilities:
 
Current liabilities
1,677

Deferred revenue
18,052

Deferred taxes
43,026

Other long-term liabilities
118

Total liabilities
62,873

Purchase price
$
369,908


In December 2015, we acquired CARPROOF, a Canada-based company that offers products and services in vehicle history, appraisal, and valuation for the automotive industry, for approximately $460 million, net of cash acquired. We financed this acquisition through a combination of cash and borrowings under our revolving credit facility. In January 2016, we announced that we had signed a definitive agreement to acquire OPIS, an internationally referenced pricing reporting agency that serves the oil, natural gas, and biofuels industries, for $650 million. We expect to finance this transaction with additional bank borrowings.

During the year ended November 30, 2014, we completed the following acquisitions, none of which were material either individually or in the aggregate:

Global Trade Information Services (GTI). On August 1, 2014, we acquired GTI, a leading provider of international merchandise trade data. We acquired GTI in order to support our strategy of building integrated workflow solutions that target industry needs related to global trade.

PCI Acrylonitrile Limited (PCI Acrylonitrile). On August 28, 2014, we acquired PCI Acrylonitrile, a provider of information and analysis on the acrylonitrile propylene derivative product. We acquired PCI Acrylonitrile in order to strengthen our position in chemical market advisory services.

DisplaySearch and Solarbuzz. On November 6, 2014, we acquired the DisplaySearch and Solarbuzz businesses of The NPD Group. DisplaySearch conducts global primary research in display technology and Solarbuzz provides market intelligence, research, and forecasting for the solar industry. We acquired these two businesses in order to strengthen our supply chain offerings for displays and to help us develop new offerings in the solar market.

PacWest Consulting Partners (PacWest). On November 17, 2014, we acquired PacWest, a provider of information, market intelligence, and strategic analysis to the upstream unconventional oil and gas industry. We acquired PacWest in order to expand our presence in the hydraulic fracturing and related unconventional space.

The following table summarizes the purchase price allocation, net of acquired cash, for these acquisitions (in thousands):
 
 
Total
Assets:
 
 
Current assets
 
$
6,574

Property and equipment
 
345

Intangible assets
 
88,465

Goodwill
 
130,267

Other long-term assets
 
31

Total assets
 
225,682

Liabilities:
 
 
Current liabilities
 
632

Deferred revenue
 
14,322

Other long-term liabilities
 
333

Total liabilities
 
15,287

Purchase price
 
$
210,395


During 2013, we completed the following acquisitions, among others:

Exclusive Analysis and the business of Dodson Data Systems. On December 12, 2012, we announced the completion of two strategic acquisitions: Exclusive Analysis, a specialist intelligence company that forecasts political and violent risks worldwide, and the business of Dodson Data Systems, a leading provider of strategic information for companies engaged in oil and gas operations located in the Gulf of Mexico and the United States. We acquired these two businesses in order to augment our existing product portfolio by providing our customers with additional information, forecasting, and analytics.

Energy Publishing Inc. (Energy Publishing). On December 31, 2012, we acquired Energy Publishing, a leading provider of North American and Australasian coal intelligence. We acquired Energy Publishing in order to strengthen our position in coal intelligence and give us an immediate presence and deep coverage in North American and Australasian coal markets, complementing our existing global Energy and Power product offerings.

Fekete Associates. On April 5, 2013, we acquired Fekete Associates, a leading provider of integrated reservoir management software and services to the oil and gas industry. We acquired Fekete in order to combine Fekete's workflow tools with our existing energy information products to create efficiencies for customers by helping them make timely exploration and production decisions.

Waterborne Energy. On May 13, 2013, we acquired Waterborne Energy, a company that provides global research, analysis, and price information in the Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) sector. We acquired Waterborne in order to help us provide our customers with comprehensive and complete LPG and LNG intelligence that will aid them in making key business decisions regarding demand, supply, and pricing.

PFC Energy. On June 19, 2013, we acquired PFC Energy, a provider of upstream and downstream energy information, research, and analysis. We acquired PFC Energy because of its product offering set, geographical footprint, and customer relationships, all of which are complementary to IHS and bring greater depth and breadth in key areas of the IHS energy solution set.

R. L. Polk & Co. (Polk). On July 15, 2013, we acquired Polk, a recognized leader in providing automotive information and analytics solutions, for approximately $1.4 billion, consisting of approximately $1.25 billion in cash, net of cash acquired, and 1,334,477 shares of our common stock (at a value of $131.5 million), which we issued from our treasury stock. The cash portion of the transaction was funded with cash on hand, cash from our amended existing revolving credit facility, and a new bank term loan. We acquired Polk in order to further establish our automotive business as a strategic partner for the automotive industry worldwide.

We have included revenue and expenses attributable to Polk in the appropriate geographic segment (principally the Americas) from the date of acquisition. The Polk acquisition contributed $165.9 million of revenue and $14.4 million of income from continuing operations for the post-acquisition period ended November 30, 2013.

The following unaudited pro forma information has been prepared as if the Polk acquisition had been consummated at December 1, 2011. This information is presented for informational purposes only, and is not necessarily indicative of the operating results that would have occurred if the acquisition had been consummated as of that date. This information should not be used as a predictive measure of our future financial position, results of operations, or liquidity.

Supplemental pro forma financial information (Unaudited)
 
Year ended November 30, 2013
 
 
(In thousands, except per share data)
Total revenue
 
$
2,105,314

Net income
 
$
102,107

Diluted earnings per share
 
$
1.50



The 2013 pro forma net income excludes $26.4 million of one-time change in control and transaction costs.

The following table summarizes the purchase price allocation, net of acquired cash, for all acquisitions completed in 2013 (in thousands):

 
Polk
 
All others
 
Total
Assets:
 
 
 
 
 
Current assets
$
87,076

 
$
16,524

 
$
103,600

Property and equipment
32,311

 
2,759

 
35,070

Intangible assets
620,700

 
83,646

 
704,346

Goodwill
935,450

 
170,224

 
1,105,674

Other long-term assets
11,032

 
210

 
11,242

Total assets
1,686,569

 
273,363

 
1,959,932

Liabilities:
 
 
 
 
 
Current liabilities
53,785

 
29,673

 
83,458

Deferred taxes
243,842

 
4,250

 
248,092

Other long-term liabilities
8,926

 
936

 
9,862

Total liabilities
306,553

 
34,859

 
341,412

Purchase price
$
1,380,016

 
$
238,504

 
$
1,618,520


v3.3.1.900
Nature of Business
12 Months Ended
Nov. 30, 2015
Accounting Policies [Abstract]  
Nature of Business
Nature of Business

We are a leading source of information, insight, and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 140 countries around the globe rely on our comprehensive content, expert independent analysis, and flexible delivery methods. Our aim is to embed our solutions within the entire spectrum of our customers’ organization, enabling executive level capital deployment strategies and following decision-making activities throughout their organizations to front-line employees tasked with managing their company’s complex core daily operations. We have been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005.

Our segments are organized to address customer needs by industry and workflow, as follows:

Resources, which is focused primarily on the Energy and Chemicals industries;
Transportation, which is focused primarily on the Automotive; Maritime & Trade; and Aerospace, Defense & Security industries; and
Consolidated Markets & Solutions (CMS), which is focused primarily on the Product Design; and Economics & Country Risk workflows, as well as the Technology, Media & Telecom industry.

We sell our offerings primarily through subscriptions, which tend to generate recurring revenue and cash flow for us. Our subscription agreements are typically annual and non-cancellable for the term of the subscription and may contain provisions for minimum monthly payments. For subscription revenue, the timing of our cash flows generally precedes the recognition of revenue and income.

Our business has seasonal aspects. Our fourth quarter typically generates our highest quarterly levels of revenue and profit. Conversely, our first quarter generally has our lowest quarterly levels of revenue and profit. We also experience event-driven seasonality in our business; for instance, IHS Energy CERAWeek, an annual energy executive gathering, was held during our second quarter in 2015 and will be held during our first quarter in 2016. 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 2015.

v3.3.1.900
Significant Accounting Policies
12 Months Ended
Nov. 30, 2015
Accounting Policies [Abstract]  
Significant Accounting Policies
Significant Accounting Policies

Fiscal Year End
Our fiscal year ends on November 30 of each year. References herein to individual years mean the year ended November 30. For example, 2015 means the year ended November 30, 2015.

Consolidation Policy
The consolidated financial statements include the accounts of all wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates have been made in areas that include valuation of long-lived and intangible assets and goodwill, income taxes, pension and postretirement benefits, allowance for doubtful accounts, and stock-based compensation. Actual results could differ from those estimates.

Concentration of Credit Risk
We are exposed to credit risk associated with cash equivalents, foreign currency and interest rate derivatives, and trade receivables. We do not believe that our cash equivalents or investments present significant credit risks because the counterparties to the instruments consist of major financial institutions that are financially sound or have been capitalized by the U.S. government, and we manage the notional amount of contracts entered into with any counterparty. Substantially all trade receivable balances are unsecured. The concentration of credit risk with respect to trade receivables is limited by the large number of customers in our customer base and their dispersion across various industries and geographic areas. We perform ongoing credit evaluations of our customers and maintain an allowance for probable credit losses. The allowance is based upon management’s assessment of known credit risks as well as general industry and economic conditions. Specific accounts receivable are written off upon notification of bankruptcy or once the account is significantly past due and our collection efforts are unsuccessful.

Segments
We periodically reassess our identification of operating segments. As a result of changes in our organizational structure in the fourth quarter of 2015, we determined that our operating segments had changed from a geographic view to an industry vertical view. Our chief operating decision maker (CODM) now reviews operating results at the Resources, Transportation, and CMS segment level when determining how to allocate resources and assess performance.

Fair Value Measurements
Fair value is determined based on the assumptions that market participants would use in pricing the asset or liability. We utilize the following fair value hierarchy in determining fair values:

Level 1 – Quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves.

Level 3 – Unobservable inputs reflecting our view about the assumptions that market participants would use in pricing the asset or liability.

Our cash, accounts receivable, and accounts payable are all short-term in nature; therefore, the carrying value of these items approximates their fair value. The carrying value of our debt instruments other than our 5% senior notes due 2022 (5% Notes) approximate their fair value because of the variable interest rate associated with those instruments. The fair value of the 5% Notes is included in Note 8, and is measured using observable inputs in markets that are not active; consequently, we have classified the 5% Notes within Level 2 of the fair value hierarchy. Our derivatives, as further described in Note 7, are measured at fair value on a recurring basis by reference to similar transactions in active markets and observable inputs other than quoted prices; consequently, we have classified those financial instruments within Level 2 of the fair value hierarchy. Our pension plan assets, as further described in Note 13, are measured at fair value on a recurring basis by reference to similar assets in active markets and are therefore also classified within Level 2 of the fair value hierarchy.

Revenue Recognition
Revenue is recognized when all of the following criteria have been met: (a) persuasive evidence of an arrangement exists, (b) delivery has occurred or services have been rendered, (c) the price to the customer is fixed or determinable, and (d) collectibility is reasonably assured.

The majority of our revenue is derived from the sale of subscriptions. Our subscription agreements are typically annual and non-cancellable and may contain provisions for minimum monthly payments. For subscription revenue, the timing of our cash flows generally precedes the recognition of revenue and income, as we defer any initial payments and recognize revenue ratably as delivered over the subscription period.

Revenue is recognized upon delivery for non-subscription sales.

In certain locations, we use dealers to distribute our product offerings. For subscription product offerings sold through dealers, revenue is recognized ratably as delivered to the end user over the subscription period. For non-subscription product offerings sold through dealers, revenue is recognized upon delivery to the dealer.

We do not defer revenue for the limited number of subscription sales where we act as a sales agent for third parties and have no continuing responsibility to maintain and update the underlying database. We recognize this revenue on a net basis upon the sale of these subscriptions and delivery of the information and tools.

Services
We provide our customers with service offerings that are primarily sold on a stand-alone basis and on a significantly more limited basis as part of a multiple-element arrangement. Our service offerings are generally separately priced in a standard price book. For services that are not in a standard price book, as the price varies based on the nature and complexity of the service offering, pricing is based on the estimated amount of time to be incurred at standard billing rates for the estimated underlying effort for executing the associated deliverable in the contract. Revenue related to services performed under time-and-material-based contracts is recognized in the period performed at standard billing rates. Revenue associated with fixed-price contracts is recognized upon completion of each specified performance obligation. See discussion of “multiple-element arrangements” below. If the contract includes acceptance contingencies, revenue is recognized in the period in which we receive documentation of acceptance from the customer.

Software
In addition to meeting the standard revenue recognition criteria described above, revenue from software arrangements must also meet the requirement that vendor-specific objective evidence (“VSOE”) of the fair value of undelivered elements exists. As a significant portion of our software licenses are sold in multiple-element arrangements that include either maintenance or, in more limited circumstances, both maintenance and professional services, we use the residual method to determine the amount of license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as license revenue. We recognize license revenue upon delivery, with maintenance revenue recognized ratably over the maintenance period. We have established VSOE of the fair value of maintenance through independent maintenance renewals, which demonstrate a consistent relationship of pricing maintenance as a percentage of the discounted or undiscounted license list price. VSOE of the fair value of professional services is established based on daily rates when sold on a stand-alone basis.

Multiple-element arrangements
Occasionally, we may execute contracts with customers which contain multiple offerings. In our business, multiple-element arrangements refer to contracts with separate fees for subscription offerings, decision-support tools, maintenance, and/or related services. We have established separate units of accounting as each offering is primarily sold on a stand-alone basis. Using the relative selling price method, each element of the arrangement is allocated based generally on stand-alone sales of these products and services, which constitutes VSOE of selling price. We do not use any other factors, inputs, assumptions, or methods to determine an estimated selling price. We recognize the elements of the contract as follows:

Subscription offerings and license fees are recognized ratably over the license period as long as there is an associated licensing period or a future obligation. Otherwise, revenue is recognized upon delivery.
For non-subscription offerings of a multiple-element arrangement, the revenue is generally recognized for each element in the period in which delivery of the product to the customer occurs, completion of services occurs or, for post-contract support, ratably over the term of the maintenance period.
In some instances, customer acceptance is required for consulting services rendered. For those transactions, the service revenue component of the arrangement is recognized in the period that customer acceptance is obtained.

Cash and Cash Equivalents
We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value.

Deferred Subscription Costs
Deferred subscription costs represent royalties and certain dealer commissions associated with customer subscriptions. These costs are deferred and amortized to expense over the period of the subscriptions.

Property and Equipment
Property and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:
 
Buildings and improvements
 
7
to
30
years
Capitalized software
 
3
to
7
years
Computers and office equipment
 
3
to
10
years

Leasehold improvements are depreciated over the shorter of their estimated useful life or the life of the lease. Maintenance, repairs, and renewals of a minor nature are expensed as incurred. Betterments and major renewals which extend the useful lives of buildings, improvements, and equipment are capitalized. We also capitalize certain software development costs in accordance with ASC 350-40, "Accounting for Costs of Computer Software Developed or Obtained for Internal Use" and ASC 985-20, "Software to be Sold, Leased or Otherwise Marketed."

We review the carrying amounts of long-lived assets such as property and equipment whenever current events or circumstances indicate their value may be impaired. A long-lived asset with a finite life is considered to be impaired if its carrying value exceeds the estimated future undiscounted cash flows to be derived from it. Any impairment is measured by the amount that the carrying value of such assets exceeds their fair value, primarily based on estimated discounted cash flows. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell.

Leases
In certain circumstances, we enter into leases with free rent periods or rent escalations over the term of the lease. In such cases, we calculate the total payments over the term of the lease and record them ratably as rent expense over that term.

Intangible Assets and Goodwill
We account for our business acquisitions using the purchase method of accounting. We allocate the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. As part of this allocation process, we must identify and attribute values and estimated lives to the intangible assets acquired. We evaluate our intangible assets and goodwill for impairment at least annually, as well as whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Impairments are expensed as incurred.

Finite-lived intangible assets
Identifiable intangible assets with finite lives are generally amortized on a straight-line basis over their respective lives, as follows:
Information databases
 
3
to
15
years
Customer relationships
 
4
to
17
years
Developed computer software
 
5
to
10
years
Trademarks
 
1
to
15
years
Other
 
1
to
8
years

Indefinite-lived intangible assets
When performing the impairment test for indefinite-lived intangible assets, we first conduct a qualitative analysis to determine whether we believe it is more likely than not that an asset has been impaired. If we believe an impairment has occurred, we then evaluate for impairment by comparing the amount by which the carrying value of the asset exceeds its fair value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value.

We estimate the fair value of trademarks based on the relief from royalty method using projected discounted future cash flows, which, in turn, are based on our views of uncertain variables such as growth rates, anticipated future economic conditions, and the appropriate discount rates relative to risk and estimates of residual values. The use of different estimates or assumptions within our discounted cash flow model when determining the fair value of our indefinite-lived intangible assets or using a methodology other than a discounted cash flow model could result in different values for our indefinite-lived intangible assets and could result in an impairment charge.

Goodwill
We test goodwill for impairment on a reporting unit level. A reporting unit is a group of businesses (i) for which discrete financial information is available and (ii) that have similar economic characteristics. We test goodwill for impairment by determining the fair value of each reporting unit and comparing it to the reporting unit's carrying value. We determine the fair value of our reporting units based on projected future discounted cash flows, which, in turn, are based on our views of uncertain variables such as growth rates, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. There were no deficiencies in reporting unit fair values versus carrying values in the fiscal years ended November 30, 2015, 2014, and 2013.

Income Taxes
Deferred income taxes are provided using tax rates enacted for periods of expected reversal on all temporary differences. Temporary differences relate to differences between the book and tax basis of assets and liabilities, principally intangible assets, property and equipment, deferred revenue, pension and other postretirement benefits, accruals, and stock-based compensation. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made.

Judgment is required in determining the worldwide provision for income taxes. Additionally, the income tax provision is based on calculations and assumptions that are subject to examination by many different tax authorities and to changes in tax law and rates in many jurisdictions. We adjust our income tax provision in the period in which it becomes probable that actual results will differ from our estimates.

Pension and Other Postretirement Benefits
During the fourth quarter of each fiscal year (or upon any other remeasurement date), we immediately recognize net actuarial gains or losses in excess of a corridor in our operating results. The corridor amount is equivalent to 10 percent of the greater of the market-related value of plan assets or the plan's benefit obligation at the beginning of the year. We use the actual fair value of plan assets at the measurement date as the measure of the market-related value of plan assets.

Treasury Stock
Treasury stock purchases, whether through stock retention or buyback programs and transactions, are recorded at actual cost. Issuances from treasury stock are recorded using the weighted-average cost method.

Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted EPS is computed using the weighted-average number of shares of Class A common stock and dilutive potential shares of Class A common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities were exercised or converted into shares of Class A common stock.

Advertising Costs
Production costs are expensed as of the first date that the advertisements take place. Advertising expense was approximately $44.7 million, $35.2 million, and $12.7 million for the years ended November 30, 2015, 2014, and 2013, respectively, and was primarily comprised of advertising for CARFAX.

Foreign Currency
The functional currency of each of our foreign subsidiaries is typically such subsidiary’s local currency. Assets and liabilities are translated at period-end exchange rates. Income and expense items are translated at weighted-average rates of exchange prevailing during the year. Any translation adjustments are included in other comprehensive income. Transactions executed in currencies other than a subsidiary's functional currency (which result in exchange adjustments) are remeasured at spot rates and resulting foreign-exchange-transaction gains and losses are included in the results of operations.

Stock-Based Compensation
All stock-based awards are recognized in the income statement based on their grant date fair values. In addition, we estimate forfeitures at the grant date. Compensation expense is recognized based on the number of awards expected to vest. We adjust compensation expense in future periods if actual forfeitures differ from our estimates. Our forfeiture rate is based upon historical experience as well as anticipated employee turnover considering certain qualitative factors. We amortize the value of stock-based awards to expense over the vesting period on a straight-line basis. For awards with performance conditions, we evaluate the probability of the number of shares that are expected to vest, and compensation expense is then adjusted to reflect the number of shares expected to vest and the cumulative vesting period met to date.

Recent Accounting Pronouncements
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The ASU is intended to reduce the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The standard will be effective for us in the first quarter of our fiscal year 2016. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements other than changing the classification criteria and related disclosures for any potential future disposals.

In May 2014, the FASB issued 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. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2019, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements, as well as which transition method we intend to use.

In August 2014, the FASB issued ASU 2014-15, which requires that management evaluate the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure is required if there is substantial doubt about the entity's ability to continue as a going concern. The standard will be effective for us in the fourth quarter of our fiscal year 2017, 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 April 2015, the FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The standard will be effective for us in the first quarter of our fiscal 2017, although early adoption is permitted. We expect that the only impact of this ASU on our financial statements will be the change in balance sheet presentation of our debt issuance costs.

In April 2015, the FASB issued ASU 2015-05, which provides guidance about a customer's accounting for fees paid in cloud computing arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, the customer should account for the arrangement as a service contract. The standard will be effective for us in the first quarter of our fiscal year 2017, although early adoption is permitted. We anticipate that we will adopt this standard using the prospective transition method, and do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard will be effective for us in the first quarter of our fiscal year 2017, 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 November 2015, the FASB issued ASU No. 2015-17, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. We have early adopted this standard and have applied the requirements retrospectively to all periods presented. The adoption of this standard resulted in the reclassification of $81.8 million from current deferred income tax assets in the consolidated balance sheet as of November 30, 2014 to noncurrent deferred income tax assets ($5.5 million) and noncurrent deferred income tax liabilities ($76.3 million).

v3.3.1.900
Accounts Receivable
12 Months Ended
Nov. 30, 2015
Accounts Receivable Additional Disclosures [Abstract]  
Accounts Receivable
Accounts Receivable

Our accounts receivable balance consists of the following as of November 30, 2015 and 2014 (in thousands):

 
 
2015
 
2014
Accounts receivable
 
$
368,371

 
$
433,586

Less: Accounts receivable allowance
 
(12,458
)
 
(12,212
)
Accounts receivable, net
 
$
355,913

 
$
421,374



We record an accounts receivable allowance when it is probable that the accounts receivable balance will not be collected. The amounts comprising the allowance are based upon management’s estimates and historical collection trends. The activity in our accounts receivable allowance consists of the following for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):
 
 
2015
 
2014
 
2013
Balance at beginning of year
 
$
12,212

 
$
10,988

 
$
4,346

Provision for bad debts
 
13,444

 
12,487

 
9,496

Other additions
 
2,434

 
1,052

 
2,133

Write-offs and other deductions
 
(15,632
)
 
(12,315
)
 
(4,987
)
Balance at end of year
 
$
12,458

 
$
12,212

 
$
10,988


v3.3.1.900
Property and Equipment
12 Months Ended
Nov. 30, 2015
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment consists of the following as of November 30, 2015 and 2014 (in thousands):
 
 
2015
 
2014
Land, buildings and improvements
 
$
115,144

 
$
114,618

Capitalized software
 
374,833

 
308,179

Computers and office equipment
 
121,919

 
127,202

Property and equipment, gross
 
611,896

 
549,999

Less: Accumulated depreciation
 
(297,530
)
 
(248,580
)
Property and equipment, net
 
$
314,366

 
$
301,419



Depreciation expense was $85.0 million, $65.0 million, and $46.0 million for the years ended November 30, 2015, 2014, and 2013, respectively.

v3.3.1.900
Intangible Assets
12 Months Ended
Nov. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets

The following table presents details of our acquired intangible assets, other than goodwill (in thousands): 
 
As of November 30, 2015
 
As of November 30, 2014
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
Information databases
$
595,219

 
$
(233,729
)
 
$
361,490

 
$
607,655

 
$
(210,105
)
 
$
397,550

Customer relationships
540,467

 
(135,352
)
 
405,115

 
511,680

 
(116,138
)
 
395,542

Developed computer software
84,918

 
(35,988
)
 
48,930

 
138,940

 
(63,561
)
 
75,379

Trademarks
166,301

 
(34,777
)
 
131,524

 
163,739

 
(22,937
)
 
140,802

Other
14,837

 
(5,802
)
 
9,035

 
29,579

 
(8,844
)
 
20,735

Total
1,401,742

 
(445,648
)
 
956,094

 
1,451,593

 
(421,585
)
 
1,030,008

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
Trademarks
58,597

 

 
58,597

 
61,101

 

 
61,101

Total intangible assets
$
1,460,339

 
$
(445,648
)
 
$
1,014,691

 
$
1,512,694

 
$
(421,585
)
 
$
1,091,109



Intangible asset amortization expense was $130.1 million, $116.3 million, and $93.0 million for the years ended November 30, 2015, 2014, and 2013, respectively. Estimated future amortization expense related to intangible assets held as of November 30, 2015 is as follows (in thousands):
Year
 
Amount
2016
 
$
126,058

2017
 
$
114,155

2018
 
$
101,815

2019
 
$
89,539

2020
 
$
81,395

Thereafter
 
$
443,132



Changes in our goodwill and gross intangible assets from November 30, 2014 to November 30, 2015 were primarily the result of our recent acquisition activities, partially offset by the writeoff of fully amortized intangible assets that are no longer in service, as well as the reclassification of assets held for sale. The change in net intangible assets was primarily due to current year amortization, partially offset by the addition of intangible assets associated with the acquisitions described in Note 3, Business Combinations. Goodwill, gross intangible assets, and net intangible assets were all subject to foreign currency translation effects.

v3.3.1.900
Derivatives
12 Months Ended
Nov. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
Derivatives

Our business is exposed to various market risks, including interest rate and foreign currency risks. We utilize derivative instruments to help us manage these risks. We do not hold or issue derivatives for speculative purposes.

Interest Rate Swaps

To mitigate interest rate exposure on our outstanding revolving facility debt, we utilize interest rate derivative contracts that effectively swap $400 million of floating rate debt at a 2.86 percent weighted-average fixed interest rate, plus the applicable spread on our floating rate debt. We entered into these swap contracts in November 2013 and January 2014, and the contracts expire between May and November 2020.

Because the terms of these swaps and the variable rate debt (as amended or extended over time) coincide, we do not expect any ineffectiveness. We have designated and accounted for these instruments as cash flow hedges, with changes in fair value being deferred in accumulated other comprehensive income/loss (AOCI) in our consolidated balance sheets.

Foreign Currency Forwards

To mitigate foreign currency exposure, we utilize the following derivative instruments:

Foreign currency forward contracts that hedge the foreign currency exposure on Euro-denominated receipts and British Pound-denominated expenses. Because the critical terms of the forward contracts and the forecasted cash flows coincide, we do not expect any ineffectiveness associated with these contracts. We designated and accounted for these derivatives as cash flow hedges, with changes in fair value being deferred in AOCI in our consolidated balance sheets. There were no outstanding foreign currency forwards under these agreements as of November 30, 2015, and the notional amount of outstanding foreign currency forwards under these agreements as of November 30, 2014 was approximately $11.0 million.

Short-term foreign currency forward contracts that manage market risks associated with fluctuations in balances that are denominated in currencies other than the local functional currency. We account for these forward contracts at fair value and recognize the associated realized and unrealized gains and losses in other expense (income), net, on the consolidated statements of operations, since we have not designated these contracts as hedges for accounting purposes. The following table summarizes the notional amounts of these outstanding foreign currency forward contracts as of November 30, 2015 and 2014 (in thousands):

 
 
November 30, 2015
 
November 30, 2014
Notional amount of currency pair:
 
 
 
 
Contracts to buy USD with CAD
 
$

 
$
51,194

Contracts to buy CAD with USD
 
C$
9,290

 
C$

Contracts to buy CAD with GBP
 
C$

 
C$
50,000

Contracts to buy USD with EUR
 
$
8,508

 
$
12,517

Contracts to buy CHF with USD
 
CHF
19,000

 
CHF
9,000

Contracts to buy GBP with EUR
 
£
3,495

 
£
4,774

Contracts to buy USD with GBP
 
$

 
$
48,000

Contracts to buy GBP with USD
 
£
7,231

 
£

Contracts to buy USD with JPY
 
$

 
$
8,778

Contracts to buy USD with KRW
 
$

 
$
10,000



Fair Value of Derivatives

Since our derivative instruments are not listed on an exchange, we have evaluated fair value by reference to similar transactions in active markets; consequently, we have classified all of our derivative instruments within Level 2 of the fair value measurement hierarchy. The following table shows the classification, location, and fair value of our derivative instruments as of November 30, 2015 and 2014 (in thousands):

 
 
Fair Value of Derivative Instruments
 
 
 
 
November 30, 2015
 
November 30, 2014
 
Balance Sheet Location
Assets:
 
 
 
 
 
 
Derivatives designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
$

 
$
987

 
Other current assets
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
51

 
1,005

 
Other current assets
Total
 
$
51

 
$
1,992

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Derivatives designated as accounting hedges:
 
 
 
 
 
 
Interest rate swaps
 
$
24,345

 
$
16,662

 
Other accrued expenses and other liabilities
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
363

 
475

 
Other accrued expenses
Total
 
$
24,708

 
$
17,137

 
 


The net gain (loss) on foreign currency forwards that are not designated as hedging instruments for the years ended November 30, 2015, 2014, and 2013, respectively, was as follows (in thousands):

 
 
 
 
Amount of (gain) loss recognized in the consolidated statements of operations
 
 
Location on consolidated statements of operations
 
2015
 
2014
 
2013
Foreign currency forwards
 
Other expense (income), net
 
$
4,912

 
$
(6,293
)
 
$
(5,372
)

The following table provides information about the cumulative amount of unrecognized hedge losses recorded in AOCI as of November 30, 2015 and November 30, 2014, as well as the activity on our cash flow hedging instruments for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
 
Year ended November 30,
 
 
2015
 
2014
 
2013
Beginning balance
 
$
(9,482
)
 
$
(2,199
)
 
$
(2,225
)
Amount of gain (loss) recognized in AOCI on derivative:
 
 
 
 
 
 
Interest rate swaps
 
(6,528
)
 
(8,941
)
 
(797
)
Foreign currency forwards
 
879

 
598

 
(153
)
Amount of loss (gain) reclassified from AOCI into income:
 
 
 
 
 
 
Interest rate swaps (1)
 
1,879

 
950

 
935

Foreign currency forwards (1)
 
(1,305
)
 
110

 
41

Ending balance
 
$
(14,557
)
 
$
(9,482
)
 
$
(2,199
)
 
 
 
 
 
 
 
(1) Amounts reclassified from AOCI into income related to interest rate swaps are recorded in interest expense, and amounts reclassified from AOCI into income related to foreign currency forwards are recorded in revenue.


The unrecognized gains relating to the foreign currency forwards are expected to be reclassified into revenue within the next 12 months, and approximately $8.5 million of the $24.3 million unrecognized losses relating to the interest rate swaps are expected to be reclassified into interest expense within the next 12 months.

v3.3.1.900
Debt
12 Months Ended
Nov. 30, 2015
Debt Disclosure [Abstract]  
Debt
Debt

The following table summarizes total indebtedness as of November 30, 2015 and 2014 (in thousands):
 
 
November 30, 2015
 
November 30, 2014
2013 term loan
 
665,000

 
700,000

2014 revolving facility
 
710,000

 
385,000

5% senior notes due 2022
 
750,000

 
750,000

Capital leases
 
6,202

 
7,355

Total debt
 
$
2,131,202

 
$
1,842,355

Current portion
 
(36,019
)
 
(36,257
)
Total long-term debt
 
$
2,095,183

 
$
1,806,098



2013 term loan. In October 2014, we amended and restated our $700 million senior unsecured amortizing term loan agreement originally entered into in the third quarter of 2013 (2013 term loan). The 2013 term loan has a maturity date of October 2019. The interest rates for borrowings under the 2013 term loan are the applicable LIBOR plus a spread of 1.00 percent to 1.75 percent, depending upon our Leverage Ratio, which is defined as the ratio of Consolidated Funded Indebtedness to rolling four-quarter Consolidated Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA), as such terms are defined in the term loan agreement.

2014 revolving facility. In October 2014, we entered into a $1.3 billion senior unsecured revolving credit agreement (2014 revolving facility). Commitments of $500 million are available for borrowing by certain of our foreign subsidiaries and $50 million is available for letters of credit. Subject to certain conditions, the 2014 revolving facility may be expanded by up to $500 million in the aggregate in additional commitments. Borrowings under the 2014 revolving facility mature in October 2019 and bear interest at the same rates and spreads as the 2013 term loan. A commitment fee on any unused balance is payable periodically and ranges from 0.13 percent to 0.30 percent based upon our Leverage Ratio. We had approximately $1.8 million of outstanding letters of credit under the 2014 revolving facility as of November 30, 2015, which reduces the available borrowing under the 2014 revolving facility by an equivalent amount.

Both the 2013 term loan and the 2014 revolving facility contains certain financial and other covenants, including a maximum Leverage Ratio and a minimum Interest Coverage Ratio, as such terms are defined in the respective agreements. Both agreements allow for leverage up to 3.5x, with the ability to temporarily increase that leverage to 3.75x for two quarters.

5% Notes. In October 2014, we issued $750 million aggregate principal amount of senior unsecured notes due 2022 in an offering not subject to the registration requirements of the Securities Act of 1933, as amended. The net proceeds from the 5% Notes were used to repay all amounts outstanding under the 2012 term loan and a portion of amounts borrowed under the 2014 revolving facility. The 5% Notes bear interest at a fixed rate of 5.00% and mature on November 1, 2022. Interest on the 5% Notes is due semiannually on May 1 and November 1 of each year, commencing May 1, 2015. We may redeem the 5% Notes in whole or in part at a redemption price equal to 100% of the principal amount of the notes plus the Applicable Premium, as defined in the indenture governing the 5% Notes. Additionally, at the option of the holders of the notes, we may be required to purchase all or a portion of the notes upon occurrence of a Change of Control Triggering Event as defined in the indenture, at a price equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. The indenture contains covenants that limit our ability to, among other things, incur or create liens and enter into sale and leaseback transactions. In addition, the indenture contains a covenant that limits our ability to consolidate or merge with another entity or to sell all or substantially all of our assets to another entity. The indenture contains customary default provisions. The fair value of the 5% Notes as of November 30, 2015 was approximately $776 million.

For the year ended November 30, 2014, as a result of the 5% Notes issuance, 2014 revolving facility agreement, and amendment and restatement of the 2013 term loan, we capitalized approximately $18.8 million of new debt issuance costs and recorded a $1.4 million loss on debt extinguishment associated with a portion of prior capitalized debt issuance costs.

As of November 30, 2015, we were in compliance with all of our debt covenants. As discussed in Note 3, in January 2016, we announced that we had signed a definitive agreement to acquire OPIS. Upon completion of the OPIS acquisition, which is expected to occur during the first quarter of 2016, our resulting gross leverage would exceed the maximum Leverage Ratio permitted under the 2014 revolving facility; consequently, we have obtained a credit facility backstop and will pursue an amendment from our bank group prior to closing OPIS, which will allow us to exceed our current 3.75x limit.

We have classified short-term debt based on principal maturities. As of November 30, 2015, we had approximately $710 million of outstanding borrowings under the 2014 revolving facility at a current annual interest rate of 1.70 percent and approximately $665 million of outstanding borrowings under the 2013 term loan at a current weighted average annual interest rate of 3.32 percent, including the effect of the interest rate swaps described in Note 7.

Maturities of outstanding borrowings under the 2013 term loan and 5% Notes as of November 30, 2015 are as follows (in thousands):
Year
 
Amount
2016
 
$
35,000

2017
 
70,000

2018
 
70,000

2019
 
490,000

2020
 

Thereafter
 
750,000

 
 
$
1,415,000




v3.3.1.900
Restructuring Charges
12 Months Ended
Nov. 30, 2015
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges

During 2013, we consolidated positions to our accounting and customer care Centers of Excellence (COE) locations as we completed successive ERP releases, as well as eliminated positions to accomplish other operational efficiencies. We also continued the consolidation of our legacy data centers in 2013, which included certain contract termination costs. We recorded approximately $11.7 million of restructuring charges for these activities. The activities included the movement or elimination of 245 positions. Of the total charge, approximately $5.8 million of the charge was recorded in the Resources segment, approximately $1.6 million was recorded in the Transportation segment, and approximately $4.3 million was recorded in the CMS segment.

During 2014, we eliminated 168 positions and incurred additional direct and incremental costs related to identified operational efficiencies, continued consolidation of positions to our COE locations, and further consolidation of our legacy data centers. We recorded approximately $8.8 million of restructuring charges for these activities. Of these charges, approximately $3.5 million was recorded in the Resources segment, $2.5 million was recorded in the Transportation segment, and $2.8 million was recorded in the CMS segment.

During 2015, we eliminated 460 positions and incurred additional direct and incremental costs related to identified operational efficiencies (including lease abandonments), continued consolidation of positions to our COE locations, and further consolidation of our legacy data centers, particularly as we realigned to our new segment structure and simplified and reduced our centralized marketing, sales support, and shares services cost structures. We recorded approximately $39.4 million of restructuring charges for these activities. Of these charges, approximately $22.6 million was recorded in the Resources segment, $7.5 million was recorded in the Transportation segment, and $9.3 million was recorded in the CMS segment. We expect to continue to incur costs related to these and other similar activities in future periods, resulting in additional restructuring charges.

The following table shows our restructuring activity and provides a reconciliation of the restructuring liability as of November 30, 2015 (in thousands):
 
Employee
Severance and
Other
Termination
Benefits
 
Contract
Termination
Costs
 
Other
 
Total
Balance at November 30, 2012
$
3,163

 
$
1,503

 
$
59

 
$
4,725

Add: Restructuring costs incurred
12,177

 
525

 
450

 
13,152

Revision to prior estimates
(1,498
)
 
75

 

 
(1,423
)
Less: Amount paid
(11,273
)
 
(2,000
)
 
(486
)
 
(13,759
)
Balance at November 30, 2013
2,569

 
103

 
23

 
2,695

Add: Restructuring costs incurred
8,437

 
396

 
1,269

 
10,102

Revision to prior estimates
(1,586
)
 
259

 

 
(1,327
)
Less: Amount paid
(6,453
)
 
(741
)
 
(1,152
)
 
(8,346
)
Balance at November 30, 2014
2,967

 
17

 
140

 
3,124

Add: Restructuring costs incurred
32,209

 
7,365

 
1,381

 
40,955

Revision to prior estimates
(1,597
)
 

 

 
(1,597
)
Less: Amount paid
(25,059
)
 
(1,164
)
 
(1,413
)
 
(27,636
)
Balance at November 30, 2015
$
8,520

 
$
6,218

 
$
108

 
$
14,846


As of November 30, 2015, approximately $9.1 million of the remaining liability was in the Resources segment, approximately $3.5 million was in the Transportation segment, and approximately $2.2 million was in the CMS segment. Approximately $11.1 million of the balance is expected to be paid in 2016; the remaining amount relates to lease abandonments that will be paid over the remaining lease periods through 2018 and 2021, respectively.

v3.3.1.900
Acquisition-related Costs
12 Months Ended
Nov. 30, 2015
Acquisition Related Costs [Abstract]  
Acquisition Related Costs
Acquisition-related Costs

During 2013, we incurred approximately $23.4 million in costs associated with acquisitions, primarily related to the Polk acquisition. Acquisition-related costs for 2013 included investment adviser fees, severance, a lease abandonment, and legal and professional fees. Certain of these costs were incurred for a transaction that we chose not to consummate. Approximately $1.1 million of the costs were incurred in the Resources segment, $18.7 million of the costs were incurred in the Transportation segment, $2.1 million of the costs were incurred in the CMS segment, and $1.5 million of the costs were allocated to shared services.

During 2014, we incurred approximately $1.9 million in costs associated with acquisitions, including severance, lease abandonments, and professional fees. Approximately $0.8 million of the costs were incurred in the Resources segment, $0.6 million of the costs were incurred in the Transportation segment, and $0.5 million of the costs were incurred in the CMS segment.

During 2015, we incurred approximately $1.5 million in costs associated with acquisitions, including severance, lease abandonments, and professional fees. Certain of these costs were incurred for a transaction that we chose not to consummate. Approximately $0.9 million of the total charge was recorded in the Resources segment and $0.6 million was allocated to shared services.

The following table provides a reconciliation of the acquisition-related costs accrued liability as of November 30, 2015 (in thousands):
 
Employee
Severance and
Other
Termination
Benefits
 
Contract
Termination
Costs
 
Other
 
Total
Balance at November 30, 2012
$
584

 
$
84

 
$

 
$
668

Add: Costs incurred
7,828

 
1,291

 
14,487

 
23,606

Revision to prior estimates
(114
)
 
(44
)
 
(20
)
 
(178
)
Less: Amount paid
(2,439
)
 
(1,130
)
 
(14,396
)
 
(17,965
)
Balance at November 30, 2013
$
5,859

 
$
201

 
$
71

 
$
6,131

Add: Costs incurred
897

 
515

 
702

 
2,114

Revision to prior estimates
(230
)
 
17

 

 
(213
)
Less: Amount paid
(5,940
)
 
(618
)
 
(356
)
 
(6,914
)
Balance at November 30, 2014
$
586

 
$
115

 
$
417

 
$
1,118

Add: Costs incurred

 
166

 
1,360

 
1,526

Revision to prior estimates
(30
)
 
11

 
(35
)
 
(54
)
Less: Amount paid
(556
)
 
(157
)
 
(1,437
)
 
(2,150
)
Balance at November 30, 2015
$

 
$
135

 
$
305

 
$
440



As of November 30, 2015, the $0.4 million remaining liability was primarily in the Transportation segment, and we expect that it will be substantially paid in 2016.


v3.3.1.900
Discontinued Operations
12 Months Ended
Nov. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations

Operating results for discontinued operations for the years ended November 30, 2015, 2014, and 2013, respectively, were as follows (in thousands):
 
 
2015
 
2014
 
2013
Revenue
 
$
129,956

 
$
151,007

 
$
148,629

 
 
 
 
 
 
 
Income from discontinued operations before income taxes
 
$
15,887

 
$
26,109

 
$
24,067

Tax benefit (expense)
 
35,368

 
(9,522
)
 
(8,850
)
Income from discontinued operations, net
 
$
51,255

 
$
16,587

 
$
15,217



In October 2015, we announced our intent to divest our OE&RM and GlobalSpec product groups, which are components of our CMS segment, due to a recent portfolio evaluation where we determined that these product groups no longer aligned with our strategic goals. OE&RM is also one of our reporting units. We launched the sales process for both product groups in November 2015 and anticipate completion of the divestitures within the next 12 months. As part of the fair value analysis for these discontinued operations, we determined that there was an impairment related to GlobalSpec based on the expected selling price for GlobalSpec; consequently, we recorded an impairment loss of approximately $3.4 million in the income from discontinued operations, net, caption of the consolidated statements of operations. The tax benefit includes recognition of a $42.4 million deferred tax asset for the difference between the book value of stock and the tax value of stock.

The following table provides the components of assets and liabilities held for sale as of November 30, 2015 (in thousands):
Current assets
 
$
19,505

Property and equipment, net
 
16,391

Intangible assets, net
 
58,298

Goodwill
 
99,183

Assets held for sale
 
$
193,377

 
 
 
Current liabilities
 
$
1,255

Deferred revenue
 
19,576

Deferred income taxes
 
11,266

Liabilities held for sale
 
$
32,097


v3.3.1.900
Income Taxes
12 Months Ended
Nov. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The amounts of income from continuing operations before income taxes by U.S. and foreign jurisdictions for the years ended November 30, 2015, 2014, and 2013, respectively, is as follows (in thousands):

 
2015
 
2014
 
2013
U.S.
$
26,096

 
$
(2,271
)
 
$
(57,257
)
Foreign
211,695

 
225,359

 
187,920

Income from continuing operations before income taxes
$
237,791

 
$
223,088

 
$
130,663



The provision for income taxes from continuing operations for the years ended November 30, 2015, 2014, and 2013, respectively, is as follows (in thousands):

 
2015
 
2014
 
2013
Current:
 
 
 
 
 
U.S.
$
3,574

 
$
14,252

 
$
10,021

Foreign
41,420

 
34,261

 
35,214

State
(3,654
)
 
6,898

 
3,224

Total current
41,340

 
55,411

 
48,459

Deferred:
 
 
 
 
 
U.S.
8,665

 
(8,688
)
 
(24,313
)
Foreign
(5,410
)
 
1,234

 
(7,336
)
State
4,258

 
(2,831
)
 
(2,663
)
Total deferred
7,513

 
(10,285
)
 
(34,312
)
Provision for income taxes
$
48,853

 
$
45,126

 
$
14,147



The following table presents the reconciliation of the provision for income taxes to the U.S. statutory tax rate for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
2015
 
2014
 
2013
Statutory U.S. federal income tax
$
83,227

 
$
78,081

 
$
45,732

State income tax, net of federal benefit
(1,157
)
 
2,025

 
(752
)
Foreign rate differential
(47,738
)
 
(68,236
)
 
(62,190
)
Tax rate change
(33
)
 
366

 
5,286

Valuation allowance
12,407

 
25,503

 
29,288

Change in reserves
106

 
28

 
(1,387
)
Other
2,041

 
7,359

 
(1,830
)
Provision for income taxes
$
48,853

 
$
45,126

 
$
14,147

Effective tax rate expressed as a percentage of pre-tax earnings
20.5
%
 
20.2
%
 
10.8
%


The tax rate change reflects the impact of legislative changes to statutory rates as well as the impact of acquisitions on our global footprint and the related measurement of deferred taxes.

Undistributed earnings of our foreign subsidiaries were approximately $747.5 million at November 30, 2015. Those earnings are considered to be indefinitely reinvested, and do not include earnings from certain subsidiaries which are considered distributed. Accordingly, no provision for U.S. federal and state income taxes has been provided for those earnings. If we were to repatriate those earnings, in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable due to the complexity associated with the hypothetical calculation.

The significant components of deferred tax assets and liabilities as of November 30, 2015 and 2014 are as follows (in thousands):

 
2015
 
2014
Deferred tax assets:
 
 
 
Accruals and reserves
$
20,682

 
$
21,299

Deferred revenue
72

 
1,654

Pension and postretirement benefits
10,220

 
12,708

Tax credits
19,529

 
9,787

Deferred stock-based compensation
45,695

 
52,052

Tax benefit from outside basis difference (1)
42,440

 

Loss carryforwards
107,304

 
85,706

Other
16,809

 
10,657

Gross deferred tax assets
262,751

 
193,863

Valuation allowance
(78,830
)
 
(66,232
)
Realizable deferred tax assets
183,921

 
127,631

Deferred tax liabilities:
 
 
 
Fixed assets
(64,398
)
 
(18,107
)
Intangibles
(372,417
)
 
(375,163
)
Gross deferred tax liabilities
(436,815
)
 
(393,270
)
Net deferred tax liability
$
(252,894
)
 
$
(265,639
)
 
 
 
 
(1)  As a result of meeting the discontinued operations criteria for GlobalSpec, we have recognized the benefit of the related outside basis difference.


As of November 30, 2015, we had loss carryforwards for tax purposes totaling approximately $340.0 million, comprised of $72.2 million of U.S. net operating loss carryforwards and $267.8 million of foreign loss carryforwards, both of which will be available to offset future taxable income. If not used, the U.S. net operating loss carryforwards will begin to expire in 2018 and the foreign tax loss carryforwards generally may be carried forward indefinitely. We have analyzed the net operating losses and placed valuation allowances on those where we have determined the realization is not more likely than not to occur.

As of November 30, 2015, we had approximately $16.3 million of foreign tax credit (FTC) carryforwards and approximately $4.4 million of research and development (R&D) credit carryforwards, both of which will be available to offset future U.S. tax liabilities. If not used, the FTC carryforwards will expire between 2023 and 2025, and the R&D credit carryforwards will expire between 2032 and 2034. We believe that it is more likely than not that we will realize our FTC and R&D tax credit assets.

The valuation allowance for deferred tax assets increased by $12.6 million in 2015. The increase is primarily attributable to foreign net operating losses, incurred and acquired, for which there is no objective indication that taxable income of the foreign entity will be generated in the future. We expect that the capital loss on the sale of GlobalSpec will be utilized through the capital gain on the sale of OE&RM.
 
We have provided what we believe to be an appropriate amount of tax for items that involve interpretation of the tax law. However, events may occur in the future that will cause us to reevaluate our current reserves and may result in an adjustment to the reserve for taxes.

A summary of the activities associated with our reserve for unrecognized tax benefits, interest, and penalties follows (in thousands):
 
Unrecognized Tax Benefits
 
Interest and Penalties
Balance at November 30, 2014
$
1,659

 
$
553

Additions:
 
 
 
Current year tax positions
700

 

Prior year tax positions
67

 

Associated with interest

 
98

Decreases:
 
 
 
Lapse of statute of limitations
(165
)
 
(61
)
Prior year tax positions
(554
)
 
(183
)
Balance at November 30, 2015
$
1,707

 
$
407



As of November 30, 2015, the total amount of unrecognized tax benefits was $2.1 million, of which $0.4 million related to interest and penalties. We include accrued interest and accrued penalties related to amounts accrued for unrecognized tax benefits in our provision for income taxes. The entire amount of unrecognized benefits at November 30, 2015 may affect the annual effective tax rate if the benefits are eventually recognized.

It is reasonably possible that we will experience a $0.5 million decrease in the reserve for unrecognized tax benefits within the next 12 months. We would experience this decrease in relation to uncertainties associated with the expiration of applicable statutes of limitation.

We and our subsidiaries file federal, state, and local income tax returns in multiple jurisdictions around the world. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years before 2011.


v3.3.1.900
Pensions and Postretirement Benefits
12 Months Ended
Nov. 30, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Pensions and Postretirement Benefits
Pensions and Postretirement Benefits

Defined Benefit Plans

We sponsor the following defined benefit plans:

A frozen, non-contributory defined-benefit retirement plan (the U.S. RIP) for certain of our U.S. employees.
A frozen defined-benefit pension plan (the U.K. RIP) that covers certain employees of a subsidiary based in the United Kingdom.
A frozen, unfunded Supplemental Income Plan (SIP), which is a non-qualified pension plan, for certain U.S. employees who earn over a federally stipulated amount.

Benefits for all three plans are generally based on years of service and either average or cumulative base compensation, depending on the plan. Plan funding strategies are influenced by employee benefit laws and tax laws. The U.K. RIP includes a provision for employee contributions and inflation-based benefit increases for retirees. We expect to contribute approximately $3 million to our pension and postretirement benefit plans in 2016.

The following table provides the expected benefit payments for our pension plans (in thousands):

 
 
Total
2016
 
$
12,012

2017
 
$
12,078

2018
 
$
11,563

2019
 
$
11,634

2020
 
$
11,312

2021-2025
 
$
56,040



Our net periodic pension expense for the pension plans consisted of the following (in thousands): 

 
Year Ended November 30,
 
2015
 
2014
 
2013
Service costs incurred
$
1,981

 
$
8,356

 
$
10,420

Interest costs on projected benefit obligation
8,300

 
8,442

 
7,017

Expected return on plan assets
(8,699
)
 
(8,354
)
 
(7,550
)
Amortization of prior service credit

 
(791
)
 
(1,350
)
Amortization of transitional obligation

 
40

 
40

Curtailment gain

 
(2,806
)
 

Fourth quarter expense recognition of actuarial loss in excess of corridor
2,492

 
1,020

 
2,620

Net periodic pension expense
$
4,074

 
$
5,907

 
$
11,197



The changes in the projected benefit obligation, plan assets and the funded status of the pension plans were as follows (in thousands):

 
2015
 
2014
Change in projected benefit obligation:
 
 
 
Net benefit obligation, beginning of year
$
208,550

 
$
184,117

Service costs incurred
1,981

 
8,356

Interest costs on projected benefit obligation
8,300

 
8,442

Actuarial loss (gain)
(4,709
)
 
21,462

Gross benefits paid
(10,313
)
 
(9,133
)
Plan amendment

 
495

Curtailment gain

 
(2,842
)
Foreign currency exchange rate change
(1,919
)
 
(2,347
)
Net benefit obligation, end of year
$
201,890

 
$
208,550

Change in plan assets:
 
 
 
Fair value of plan assets, beginning of year
$
189,056

 
$
165,741

Actual return on plan assets
1,646

 
22,293

Employer contributions
5,345

 
12,484

Gross benefits paid
(10,313
)
 
(9,133
)
Foreign currency exchange rate change
(1,898
)
 
(2,329
)
Fair value of plan assets, end of year
$
183,836

 
$
189,056

Funded status (underfunded)
$
(18,054
)
 
$
(19,494
)
 
 
 
 
Amounts in Accumulated Other Comprehensive Income not yet recognized as components of net periodic pension and postretirement expense, pretax
 
 
 
Net actuarial loss
19,829

 
20,160

 
 
The net underfunded status of the plans is recorded in accrued pension and postretirement liability in the consolidated balance sheets. Any future reclassification of actuarial loss from AOCI to income would only be recognized if the cumulative actuarial loss exceeds the corridor, and the reclassification would be recognized as a fourth quarter mark-to-market adjustment.

Pension expense is actuarially calculated annually based on data available at the beginning of each year. We determine the expected return on plan assets by multiplying the expected long-term rate of return on assets by the market-related value of plan assets. The market-related value of plan assets is the fair value of plan assets. Assumptions used in the actuarial calculation include the discount rate selected and disclosed at the end of the previous year as well as the expected rate of return on assets detailed in the table below, as of the years ended November 30, 2015 and 2014:
 
U.S. RIP
 
U.K. RIP
 
2015
 
2014
 
2015
 
2014
Weighted-average assumptions as of year-end
 
 
 
 
 
 
 
Discount rate
4.50
%
 
4.20
%
 
3.60
%
 
3.80
%
Expected long-term rate of return on assets
5.00
%
 
4.70
%
 
4.60
%
 
4.90
%


In 2014, we discontinued all future accruals to the U.S. RIP. As a result of the plan freeze and associated remeasurement, we used a weighted-average 5.2 percent expected long-term rate of return on plan assets and a weighted-average 4.7 percent discount rate for the U.S. RIP for 2014.

Fair Value of Pension Assets

As of November 30, 2015, the U.S. RIP plan assets consist primarily of fixed-income securities, with a moderate amount of equity securities. We employed a similar investment strategy as of November 30, 2014. The U.K. RIP plan assets consist primarily of equity securities, with smaller holdings of bonds and other assets. Equity assets are diversified between international and domestic investments, with additional diversification in the domestic category through allocations to large-cap, mid-cap, and growth and value investments.

The U.S. RIP’s established investment policy seeks to align the expected rate of return with the discount rate, while allowing for some equity variability to allow for upside market potential that would strengthen the overall asset position of the plan. The U.K. RIP’s established investment policy is to match the liabilities for active and deferred members with equity investments and match the liabilities for pensioner members with fixed-income investments. Asset allocations are subject to ongoing analysis and possible modification as basic capital market conditions change over time (interest rates, inflation, etc.).

The following table compares target asset allocation percentages with actual asset allocations at the end of 2015:

 
U.S. RIP Assets
 
U.K. RIP Assets
 
Target Allocations
 
Actual Allocations
 
Target Allocations
 
Actual Allocations
Fixed Income
75
%
 
73
%
 
45
%
 
48
%
Equities
25
%
 
24
%
 
55
%
 
45
%
Alternatives/Other
%
 
3
%
 
%
 
7
%


Investment return assumptions for both plans have been determined by obtaining independent estimates of expected long-term rates of return by asset class and applying the returns to assets on a weighted-average basis.

All of our pension plan assets are measured at fair value on a recurring basis by reference to similar assets in active markets and are therefore classified within Level 2 of the fair value hierarchy. Plan assets as of November 30, 2015 and 2014 were classified in the following categories (in thousands):
 
 
2015
 
2014
Interest-bearing cash
 
$
6,791

 
$
3,940

Collective trust funds:
 
 
 
 
Fixed income funds
 
121,994

 
127,063

Equity funds
 
55,051

 
58,053

 
 
$
183,836

 
$
189,056



Postretirement Benefits

We sponsor a contributory postretirement medical plan. The plan grants access to group rates for retiree-medical coverage for all U.S. employees who terminate between ages 55 and 64 with at least 10 years of IHS service. Additionally, we subsidize the cost of coverage for retiree-medical coverage for certain grandfathered employees. Our subsidy is capped at different rates per month depending on individual retirees’ Medicare eligibility.

The obligation under our plan was determined by the application of the terms of medical and life insurance plans together with relevant actuarial assumptions. Effective 2006, we do not provide prescription drug coverage for Medicare-eligible retirees except through a Medicare Advantage fully insured option; therefore our liability does not reflect any impact of the Medicare Modernization Act Part D subsidy. The discount rate used in determining the accumulated postretirement benefit obligation was 4.50 percent and 4.20 percent at November 30, 2015, and 2014, respectively.

Our net periodic postretirement expense and changes in the related projected benefit obligation were as follows (in thousands):

 
Year Ended November 30,
 
2015
 
2014
 
2013
Service costs incurred
$
16

 
$
16

 
$
23

Interest costs
388

 
412

 
399

Fourth quarter expense recognition of actuarial loss in excess of corridor

 
439

 

Net periodic postretirement expense
$
404

 
$
867

 
$
422


 
November 30, 2015
 
November 30, 2014
Change in projected postretirement benefit obligation:
 
 
 
Postretirement benefit obligation at beginning of year
$
9,645

 
$
8,815

Service costs
16

 
16

Interest costs
388

 
412

Actuarial (gain) loss
(847
)
 
1,407

Benefits paid
(511
)
 
(1,005
)
Postretirement benefit obligation at end of year
$
8,691

 
$
9,645

Unfunded status
$
(8,691
)
 
$
(9,645
)
 
 
 
 
Amounts in Accumulated Other Comprehensive Income not yet recognized as components of net periodic pension and postretirement expense, pretax
 
 
 
Net actuarial loss
$
117

 
$
964

The net unfunded status of the postretirement benefit plan is recorded in accrued pension liability in the consolidated balance sheets. Any future reclassifications of actuarial loss from AOCI to income would only be recognized if the cumulative actuarial loss exceeds the corridor and would be recognized as a fourth quarter mark-to-market adjustment.

The following table provides the expected benefit payments for the plan (in thousands):
Year
 
Amount (in thousands)
2016
 
$
734

2017
 
$
730

2018
 
$
726

2019
 
$
720

2020
 
$
690

2021-2025
 
$
3,084



A one-percentage-point change in assumed health-care-cost-trend rates would have no effect on service cost, interest cost, or the postretirement benefit obligation as of November 30, 2015 because our subsidy is capped.

Defined Contribution Plan

Employees of certain subsidiaries may participate in defined contribution plans. We began providing a company non-elective contribution to certain employees in 2012 and expanded that contribution to all eligible employees if they are active employees at the end of the calendar year. Benefit expense relating to these plans was approximately $18.2 million, $13.7 million, and $11.9 million for the years ended November 30, 2015, 2014, and 2013, respectively.

v3.3.1.900
Stock-based Compensation
12 Months Ended
Nov. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation
Stock-based Compensation

As of November 30, 2015, we had one stock-based compensation plan: the Amended and Restated IHS Inc. 2004 Long-Term Incentive Plan (LTIP). The LTIP provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares, cash-based awards, other stock based awards and covered employee annual incentive awards. Upon vesting of an award, we may either issue new shares or reissue treasury shares, but only to the extent that the reissued shares were previously withheld for taxes under the LTIP provisions. The 2004 Directors Stock Plan, a sub-plan under our LTIP, provides for the grant of restricted stock and restricted stock units to non-employee directors as defined in that plan. We believe that such awards better align the interests of our employees and non-employee directors with those of our stockholders. We have an authorized maximum of 14.75 million shares for issuance under the LTIP. As of November 30, 2015, the number of shares available for future grant was 1.5 million.

Total unrecognized compensation expense related to all nonvested awards was $120.7 million as of November 30, 2015, with a weighted-average recognition period of approximately 1.4 years.

Restricted Stock Units (RSUs). RSUs typically vest from one to three years, and are generally subject to either cliff vesting (performance-based RSUs) or graded vesting (time-based RSUs). RSUs do not have nonforfeitable rights to dividends or dividend equivalents. The fair value of RSUs is based on the fair value of our common stock on the date of grant. We amortize the value of these awards to expense over the vesting period on a straight-line basis. For performance-based RSUs, an evaluation is made each quarter about the likelihood that the performance criteria will be met. As the number of performance-based RSUs expected to vest increases or decreases, compensation expense is also adjusted up or down to reflect the number expected to vest and the cumulative vesting period met to date. For all RSUs, we estimate forfeitures at the grant date and recognize compensation cost based on the number of awards expected to vest. There may be adjustments in future periods if the likelihood of meeting performance criteria changes or if actual forfeitures differ from our estimates. Our forfeiture rate is based upon historical experience as well as anticipated employee turnover considering certain qualitative factors.

The following table summarizes RSU activity for the year ended November 30, 2015. Performance-based RSUs for the 2016 and 2017 performance periods are included in the table at target.
 
Shares
 
Weighted-
Average Grant
Date Fair Value
 
(in thousands)
 
 
Balance at November 30, 2014
2,518

 
$
102.24

Granted
1,361

 
$
116.14

Vested
(1,247
)
 
$
102.88

Forfeited
(191
)
 
$
114.00

Balance at November 30, 2015
2,441

 
$
108.74



The total fair value of RSUs that vested during the year ended November 30, 2015 was $144.9 million.

Stock Options. Option awards are generally granted with an exercise price equal to the fair market value of our stock at the date of grant. No stock options were outstanding as of November 30, 2015.
Stock-based compensation expense for the years ended November 30, 2015, 2014, and 2013, respectively, was as follows (in thousands):
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
Cost of revenue
 
$
6,892

 
$
8,520

 
$
8,271

Selling, general and administrative
 
122,024

 
150,737

 
147,447

Total stock-based compensation expense
 
$
128,916

 
$
159,257

 
$
155,718



Total income tax benefits recognized for stock-based compensation arrangements were as follows (in thousands):
 
 
2015
 
2014
 
2013
Income tax benefits
 
$
37,330

 
$
47,209

 
$
51,357



No stock-based compensation cost was capitalized during the years ended November 30, 2015, 2014, or 2013.

v3.3.1.900
Commitments and Contingencies
12 Months Ended
Nov. 30, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Commitments

Rental charges in 2015, 2014, and 2013 approximated $60.9 million, $58.9 million and $46.3 million, respectively. Minimum rental commitments under non-cancelable operating leases in effect at November 30, 2015, are as follows:

Year
 
Amount (in thousands)
2016
 
$
58,222

2017
 
54,069

2018
 
44,484

2019
 
32,374

2020
 
26,620

Thereafter
 
76,005

 
 
$
291,774



We also had outstanding letters of credit and bank guarantees in the aggregate amount of approximately $5.2 million and $5.6 million at November 30, 2015 and 2014, respectively.

Indemnifications

In the normal course of business, we are party to a variety of agreements under which we may be obligated to indemnify the other party for certain matters. These obligations typically arise in contracts where we customarily agree to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters such as title to assets and intellectual property rights associated with the sale of products. We also have indemnification obligations to our officers and directors. The duration of these indemnifications varies, and in certain cases, is indefinite. In each of these circumstances, payment by us depends upon the other party making an adverse claim according to the procedures outlined in the particular agreement, which procedures generally allow us to challenge the other party’s claims. In certain instances, we may have recourse against third parties for payments that we make.

We are unable to reasonably estimate the maximum potential amount of future payments under these or similar agreements due to the unique facts and circumstances of each agreement and the fact that certain indemnifications provide for no limitation to the maximum potential future payments under the indemnification. We have not recorded any liability for these indemnifications in the accompanying consolidated balance sheets; however, we accrue losses for any known contingent liability, including those that may arise from indemnification provisions, when the obligation is both probable and reasonably estimable.

Litigation

From time to time, we are involved in litigation in the ordinary course of our business, including claims or contingencies that may arise related to matters occurring prior to our acquisition of businesses, such as the matter described below. At the present time, primarily because the matters are generally in early stages, we can give no assurance as to the outcome of any pending litigation to which we are currently a party and we are unable to determine the ultimate resolution of or provide a reasonable estimate of the range of possible loss attributable to these matters or the effect they may have on us. However, we do not expect the outcome of such proceedings to have a material adverse effect on our results of operations or financial condition. We have and will continue to vigorously defend ourselves against these claims.

On April 23, 2013 (prior to our acquisition of R.L. Polk & Co.), our CARFAX subsidiary (CARFAX) was served with a complaint filed in the U.S. District Court for the Southern District of New York, purportedly on behalf of certain auto and light truck dealers. The complaint alleges, among other things that, in violation of antitrust laws, CARFAX entered into exclusive arrangements regarding the sale of CARFAX vehicle history reports with certain auto manufacturers and owners of two websites providing classified listings of used autos and light trucks. The complaint seeks three times the actual damages that a jury finds the plaintiffs have sustained, injunctive relief, costs and attorneys’ fees. On October 25, 2013, the plaintiffs served a second amended complaint with similar allegations purporting to name approximately 469 auto dealers as plaintiffs and counsel for plaintiffs have indicated that there may be additional claimants. There are significant legal and factual issues to be determined. We believe, however, that the probability that the outcome of the litigation will have a material adverse effect on our results of operations or financial condition is remote.

v3.3.1.900
Common Stock and Earnings per Share
12 Months Ended
Nov. 30, 2015
Earnings Per Share [Abstract]  
Common Stock and Earnings per Share
Common Stock and Earnings per Share

Weighted average shares of Class A common stock outstanding for the years ended November 30, 2015, 2014, and 2013, respectively, were calculated as follows (in thousands):
 
 
2015
 
2014
 
2013
Weighted-average shares outstanding:
 
 
 
 
 
 
Shares used in basic EPS calculation
 
68,450

 
68,163

 
66,434

Effect of dilutive securities:
 
 
 
 
 
 
Restricted stock units
 
839

 
957

 
1,006

Stock options and other stock-based awards
 

 

 
2

Shares used in diluted EPS calculation
 
69,289

 
69,120

 
67,442



Share Buyback Programs
During 2006, our board of directors approved a program to reduce the dilutive effects of employee equity grants, by allowing employees to surrender shares back to the Company for a value equal to their minimum statutory tax liability. We then pay the statutory tax on behalf of the employee. For the year ended November 30, 2015, we accepted 436,919 shares surrendered by employees under the tax withholding program for approximately $50.8 million, or $116.22 per share.

In January 2015, our board of directors authorized us to repurchase up to $100 million of our Class A common stock in open market purchases or through privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the Exchange Act), subject to market conditions, applicable legal requirements and other relevant factors. All of our previously announced share repurchase programs were terminated at that time. We completed this program in June 2015, repurchasing 816,205 shares at an average price of approximately $122.52 per share.

In June 2015, our board of directors authorized us to repurchase up to $500 million of our Class A common stock in open market purchases or through privately negotiated transactions in compliance with Rule 10b-18 under the Exchange Act, subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate IHS to repurchase any set dollar amount or number of shares and is scheduled to expire on November 30, 2017, but may be suspended at any time at our discretion. The amount authorized under this program is inclusive of share repurchases of our Class A common stock surrendered by employees in an amount equal to the statutory tax liability associated with the vesting of their equity awards, for which we pay the statutory tax on behalf of the employee. For the year ended November 30, 2015, we repurchased 841,842 shares on the open market under this program for a total of approximately $100.3 million, at an average price of approximately $119.18 per share.

v3.3.1.900
Accumulated Other Comprehensive Income (Loss) (Notes)
12 Months Ended
Nov. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated other comprehensive income (loss) [Text Block]
Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (AOCI) consists of foreign currency translation adjustments, net pension and postretirement liability adjustments, and net gain (loss) on hedging activities. Each item is reported net of the related income tax effect. The following table summarizes the changes in AOCI by component (net of tax) for the year ended November 30, 2015 (in thousands):
 
 
Foreign currency translation
 
Net pension and OPEB liability
 
Unrealized losses on hedging activities
 
Total
Balance at November 30, 2012
 
$
(35,374
)
 
$
(9,094
)
 
$
(2,225
)
 
$
(46,693
)
Other comprehensive income (loss) before reclassifications
 
(11,191
)
 
85

 
(950
)
 
(12,056
)
Reclassifications from AOCI to income
 

 
812

 
976

 
1,788

Balance at November 30, 2013
 
$
(46,565
)
 
$
(8,197
)
 
$
(2,199
)
 
$
(56,961
)
Other comprehensive income (loss) before reclassifications
 
(37,069
)
 
(4,144
)
 
(8,343
)
 
(49,556
)
Reclassifications from AOCI to income
 

 
(1,268
)
 
1,060

 
(208
)
Balance at November 30, 2014
 
$
(83,634
)
 
$
(13,609
)
 
$
(9,482
)
 
$
(106,725
)
Other comprehensive loss before reclassifications
 
(79,873
)
 
(1,170
)
 
(5,649
)
 
(86,692
)
Reclassifications from AOCI to income
 

 
1,630

 
574

 
2,204

Balance at November 30, 2015
 
$
(163,507
)
 
$
(13,149
)
 
$
(14,557
)
 
$
(191,213
)


Amounts reclassified from AOCI to income related to net pension and OPEB liability are recorded in net periodic pension and postretirement expense.

v3.3.1.900
Supplemental Cash Flow Information
12 Months Ended
Nov. 30, 2015
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information
Supplemental Cash Flow Information

Net cash provided by operating activities reflects cash payments for interest and income taxes as shown below, for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
 
2015
 
2014
 
2013
Interest paid
 
$
65,429

 
$
45,396

 
$
39,023

Income tax payments (refunds), net
 
$
11,489

 
$
52,030

 
$
(9,458
)


Interest paid during 2013, 2014, and 2015 increased primarily due to increased borrowings associated with acquisitions and share repurchase programs, as well as a higher effective interest rate due to an increased amount of fixed rate debt.

Cash and cash equivalents amounting to approximately $291.6 million and $153.2 million reflected on the consolidated balance sheets at November 30, 2015 and 2014, respectively, are maintained primarily in U.S. Dollars, Canadian Dollars, British Pounds, and Euros, and were subject to fluctuations in the currency exchange rate.

v3.3.1.900
Segment Information
12 Months Ended
Nov. 30, 2015
Segment Reporting [Abstract]  
Segment Information
19.
Segment Information

During 2015, we changed the structure of our internal organization in a manner that caused the composition of our segments to change. We now prepare our financial reports and analyze our business results within our three operating segments: Resources, Transportation, and CMS. All prior period information has been restated to reflect the current year presentation, and excludes results associated with discontinued operations. We evaluate segment performance primarily at the revenue and operating profit level for each of these three segments.

Information about the operations of our segments is set forth below. Our Chief Executive Officer is our CODM, and the CODM evaluates segment performance based primarily on revenue and operating profit. In addition, the CODM reviews revenue by transaction type and geography. The accounting policies of our segments are the same as those described in the summary of significant accounting policies (see Note 2).

No single customer accounted for 10 percent or more of our total revenue for the years ended November 30, 2015, 2014, or 2013. There are no material inter-segment revenues for any period presented. Certain corporate transactions are not allocated to the reportable segments, including such items as stock-based compensation expense, net periodic pension and postretirement expense, corporate-level impairments, and gain (loss) on sale of corporate assets.

 
Resources
 
Transportation
 
CMS
 
Shared
Services
 
Consolidated
Total
 
(In thousands)
Year Ended November 30, 2015
 
 
 
 
 
 
 
 
Revenue
$
884,596

 
$
758,404

 
$
541,335

 
$

 
$
2,184,335

Operating income
$
248,280

 
$
193,668

 
$
49,319

 
$
(183,424
)
 
$
307,843

Depreciation and amortization
$
85,924

 
$
80,696

 
$
48,135

 
$
325

 
$
215,080

Total Assets
$
2,247,747

 
$
2,319,097

 
$
840,860

 
$
193,377

 
$
5,601,081

Year Ended November 30, 2014
 
 
 
 
 
 
 
 
Revenue
$
927,211

 
$
662,547

 
$
490,029

 
$

 
$
2,079,787

Operating income
$
286,393

 
$
160,361

 
$
52,225

 
$
(221,495
)
 
$
277,484

Depreciation and amortization
$
77,576

 
$
70,772

 
$
32,554

 
$
341

 
$
181,243

Total Assets
$
2,249,604

 
$
2,237,669

 
$
784,863

 
$

 
$
5,272,136

Year Ended November 30, 2013
 
 
 
 
 
 
 
 
Revenue
$
865,126

 
$
353,787

 
$
473,090

 
$

 
$
1,692,003

Operating income
$
284,475

 
$
67,255

 
$
32,899

 
$
(210,655
)
 
$
173,974

Depreciation and amortization
$
62,256

 
$
37,644

 
$
38,952

 
$
123

 
$
138,975

Total Assets
$
2,352,730

 
$
2,179,261

 
$
827,622

 
$

 
$
5,359,613



The table below provides information about revenue and long-lived assets for the U.S. and the rest of the world for 2015, 2014, and 2013. There were no material individual foreign countries. Revenue by geographic area is generally based on the "ship to" location. Long-lived assets include net property and equipment.
 
2015
 
2014
 
2013
(in thousands)
Revenue
 
Long-lived assets
 
Revenue
 
Long-lived assets
 
Revenue
 
Long-lived assets
United States
$
1,327,390

 
$
272,919

 
$
1,176,813

 
$
254,008

 
$
919,151

 
$
196,987

Rest of world
856,945

 
41,447

 
902,974

 
47,411

 
772,852

 
48,579

Total
$
2,184,335

 
$
314,366

 
$
2,079,787

 
$
301,419

 
$
1,692,003

 
$
245,566



Revenue by transaction type was as follows:
(in thousands)
 
2015
 
2014
 
2013
Subscription revenue
 
$
1,768,541

 
$
1,643,844

 
$
1,326,630

Non-subscription revenue
 
415,794

 
435,943

 
365,373

Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

Revenue by geography was as follows:
(in thousands)
 
2015
 
2014
 
2013
Americas
 
$
1,459,743

 
$
1,353,616

 
1,041,425

EMEA
 
508,066

 
518,820

 
458,531

APAC
 
216,526

 
207,351

 
192,047

Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003



Activity in our goodwill account was as follows:
(in thousands)
Resources
 
Transportation
 
CMS
 
Consolidated Total
Balance at November 30, 2013
$
1,558,103

 
$
1,237,170

 
$
269,908

 
$
3,065,181

Acquisitions
14,474

 
74,320

 
41,473

 
130,267

Adjustments to purchase price
(4,197
)
 
1,007

 
(2,301
)
 
(5,491
)
Foreign currency translation
(16,044
)
 
(13,427
)
 
(3,162
)
 
(32,633
)
Balance at November 30, 2014
1,552,336

 
1,299,070

 
305,918

 
3,157,324

Acquisitions
35,027

 
81,520

 
154,523

 
271,070

Adjustments to purchase price
2,427

 
(825
)
 
4,517

 
6,119

Reclassification to assets held for sale

 

 
(102,566
)
 
(102,566
)
Foreign currency translation
(21,227
)
 
(18,423
)
 
(4,838
)
 
(44,488
)
Balance at November 30, 2015
$
1,568,563

 
$
1,361,342

 
$
357,554

 
$
3,287,459



The adjustments to purchase price in 2014 and 2015 related primarily to deferred tax true-ups that we finalized for our 2013 and 2014 acquisitions, respectively. The reclassification adjustment in 2015 was related to the goodwill allocated to our OE&RM and GlobalSpec product groups, which are now classified as discontinued operations, as further described in Note 11.

v3.3.1.900
Quarterly Results of Operations (Unaudited)
12 Months Ended
Nov. 30, 2015
Selected Quarterly Financial Information [Abstract]  
Quarterly Results of Operations (Unaudited)
Quarterly Results of Operations (Unaudited)

The following table summarizes certain quarterly results of operations (in thousands):

 
Three Months Ended
 
February 28
 
May 31
 
August 31
 
November 30
2015
 
 
 
 
 
 
 
Revenue
$
513,876

 
$
556,940

 
$
557,813

 
$
555,706

 
 
 
 
 
 
 
 
Income from continuing operations
$
37,950

 
$
46,673

 
$
56,961

 
$
47,354

Income from discontinued operations
1,570

 
4,279

 
2,283

 
43,123

Net income
$
39,520

 
$
50,952

 
$
59,244

 
$
90,477

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.55

 
$
0.68

 
$
0.83

 
$
0.70

Income from discontinued operations
0.02

 
0.06

 
0.03

 
0.63

Net income
$
0.58

 
$
0.74

 
$
0.87

 
$
1.33

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.55

 
$
0.68

 
$
0.83

 
$
0.69

Income from discontinued operations
$
0.02

 
$
0.06

 
$
0.03

 
$
0.63

Net income
$
0.57

 
$
0.74

 
$
0.86

 
$
1.32

 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
Revenue
$
490,104

 
$
529,871

 
$
518,680

 
$
541,132

 
 
 
 
 
 
 
 
Income from continuing operations
$
30,979

 
$
51,084

 
$
41,909

 
$
53,990

Income from discontinued operations
1,443

 
4,408

 
4,608

 
6,128

Net income
$
32,422

 
$
55,492

 
$
46,517

 
$
60,118

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.46

 
$
0.75

 
$
0.61

 
$
0.79

Income from discontinued operations
0.02

 
0.06

 
0.07

 
0.09

Net income
$
0.48

 
$
0.81

 
$
0.68

 
$
0.88

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.45

 
$
0.74

 
$
0.61

 
$
0.78

Income from discontinued operations
0.02

 
0.06

 
0.07

 
0.09

Net income
$
0.47

 
$
0.81

 
$
0.68

 
$
0.87



Due to the discontinued operations discussed in Note 11, we have adjusted all prior period amounts, including these quarterly results of operations, to reflect the impact of discontinued operations on those periods.

v3.3.1.900
Supplemental Guarantor Information (Notes)
12 Months Ended
Nov. 30, 2015
Condensed Financial Statements, Captions [Line Items]  
Condensed Financial Statements Disclosure [Text Block]
Supplemental Guarantor Information

Our 5% Notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the following wholly owned subsidiaries of IHS Inc. (collectively, the Guarantor Subsidiaries):

IHS Holding Inc.
IHS Global Inc.
R.L. Polk & Co.
CARFAX, Inc.

The guarantees of our 5% Notes by the Guarantor Subsidiaries contain customary release provisions, which provide for the termination of such guarantees upon (i) the sale or other disposition (including by way of consolidation or merger) of the guarantor subsidiary or the sale or disposition of all or substantially all the assets of the guarantor subsidiary (in each case other than to the parent company (IHS Inc.) or another subsidiary of the company), (ii) the defeasance of the 5% Notes, or (iii) at such time as the guarantor subsidiary ceases to be a guarantor of any significant indebtedness of the company.

The following supplemental tables present condensed consolidating financial information for the parent company, the Guarantor Subsidiaries on a combined basis, and all other non-guarantor subsidiaries on a combined basis.


CONDENSED CONSOLIDATING BALANCE SHEET
AS OF NOVEMBER 30, 2015
(In thousands)
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
21,048

 
$
270,532

 
$

 
$
291,580

Accounts receivable, net

 
192,889

 
163,024

 

 
355,913

Income tax receivable
42,663

 

 
3,021

 
(41,099
)
 
4,585

Deferred subscription costs

 
52,210

 
30,082

 
(29,540
)
 
52,752

Intercompany receivables
465,915

 
38,381

 
179,798

 
(684,094
)
 

Assets held for sale

 
99,743

 
93,634

 

 
193,377

Other
1,681

 
38,220

 
17,234

 

 
57,135

Total current assets
510,259

 
442,491

 
757,325

 
(754,733
)
 
955,342

Non-current assets:
 
 
 
 
 
 
 
 
 
Property and equipment, net

 
267,422

 
46,944

 

 
314,366

Intangible assets, net

 
768,029

 
246,662

 

 
1,014,691

Goodwill

 
2,274,422

 
1,013,037

 

 
3,287,459

Deferred income taxes
58,471

 

 
6,630

 
(58,471
)
 
6,630

Investment in subsidiaries
2,416,961

 
3,045,096

 

 
(5,462,057
)
 

Intercompany notes receivable

 

 
724,778

 
(724,778
)
 

Other
10,181

 
11,130

 
1,282

 

 
22,593

Total non-current assets
2,485,613

 
6,366,099

 
2,039,333

 
(6,245,306
)
 
4,645,739

Total assets
$
2,995,872

 
$
6,808,590

 
$
2,796,658

 
$
(7,000,039
)
 
$
5,601,081

Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
36,019

 
$

 
$

 
$
36,019

Accounts payable
5

 
39,689

 
19,486

 

 
59,180

Accrued compensation

 
69,889

 
35,588

 

 
105,477

Accrued royalties

 
25,985

 
7,321

 

 
33,306

Other accrued expenses
3,453

 
74,055

 
40,709

 

 
118,217

Income tax payable

 
64,077

 
362

 
(41,100
)
 
23,339

Deferred revenue

 
321,766

 
260,272

 
(29,540
)
 
552,498

Intercompany payables
22,721

 
549,783

 
122,855

 
(695,359
)
 

Liabilities held for sale

 
12,402

 
19,695

 

 
32,097

Total current liabilities
26,179

 
1,193,665

 
506,288

 
(765,999
)
 
960,133

Long-term debt
750,000

 
1,345,183

 

 

 
2,095,183

Accrued pension and postretirement liability
18,260

 
8,188

 
297

 

 
26,745

Deferred income taxes

 
259,764

 
46,965

 
(47,205
)
 
259,524

Intercompany notes payable

 
724,778

 

 
(724,778
)
 

Other liabilities
556

 
40,755

 
17,308

 

 
58,619

Total stockholders’ equity
2,200,877

 
3,236,257

 
2,225,800

 
(5,462,057
)
 
2,200,877

Total liabilities and stockholders’ equity
$
2,995,872

 
$
6,808,590

 
$
2,796,658

 
$
(7,000,039
)
 
$
5,601,081


CONDENSED CONSOLIDATING BALANCE SHEET
AS OF NOVEMBER 30, 2014
(In thousands)
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
32,314

 
$
120,842

 
$

 
$
153,156

Accounts receivable, net

 
212,711

 
208,663

 

 
421,374

Income tax receivable
18,000

 
16,384

 

 
(32,101
)
 
2,283

Deferred subscription costs

 
53,272

 
28,048

 
(30,299
)
 
51,021

Intercompany receivables
712,976

 
174,161

 
291,873

 
(1,179,010
)
 

Other
1,669

 
41,481

 
17,823

 

 
60,973

Total current assets
732,645

 
530,323

 
667,249

 
(1,241,410
)
 
688,807

Non-current assets:
 
 
 
 
 
 
 
 
 
Property and equipment, net

 
246,498

 
54,921

 

 
301,419

Intangible assets, net

 
826,152

 
264,957

 

 
1,091,109

Goodwill

 
2,258,393

 
898,931

 

 
3,157,324

Deferred income taxes
59,594

 

 
5,486

 
(59,594
)
 
5,486

Investment in subsidiaries
2,249,359

 
1,748,795

 

 
(3,998,154
)
 

Intercompany notes receivable

 

 
740,879

 
(740,879
)
 

Other
11,498

 
13,701

 
2,792

 

 
27,991

Total non-current assets
2,320,451

 
5,093,539

 
1,967,966

 
(4,798,627
)
 
4,583,329

Total assets
$
3,053,096

 
$
5,623,862

 
$
2,635,215

 
$
(6,040,037
)
 
$
5,272,136

Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
35,974

 
$
283

 
$

 
$
36,257

Accounts payable
93

 
31,083

 
21,069

 

 
52,245

Accrued compensation

 
57,651

 
44,224

 

 
101,875

Accrued royalties

 
24,590

 
12,756

 

 
37,346

Other accrued expenses
3,830

 
91,131

 
36,186

 

 
131,147

Income tax payable

 

 
32,101

 
(32,101
)
 

Deferred revenue

 
317,144

 
309,342

 
(30,299
)
 
596,187

Intercompany payables
119,268

 
1,056,664

 
3,078

 
(1,179,010
)
 

Total current liabilities
123,191

 
1,614,237

 
459,039

 
(1,241,410
)
 
955,057

Long-term debt
750,000

 
1,056,098

 

 

 
1,806,098

Accrued pension and postretirement liability
19,603

 
8,869

 
667

 

 
29,139

Deferred income taxes

 
283,211

 
47,508

 
(59,594
)
 
271,125

Intercompany notes payable

 
740,879

 

 
(740,879
)
 

Other liabilities
756

 
30,887

 
19,528

 

 
51,171

Total stockholders’ equity
2,159,546

 
1,889,681

 
2,108,473

 
(3,998,154
)
 
2,159,546

Total liabilities and stockholders’ equity
$
3,053,096

 
$
5,623,862

 
$
2,635,215

 
$
(6,040,037
)
 
$
5,272,136



CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2015
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,609,362

 
$
641,165

 
$
(66,192
)
 
$
2,184,335

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
808,214

 
77,151

 
(66,192
)
 
819,173

Selling, general and administrative
13,694

 
524,312

 
257,348

 

 
795,354

Depreciation and amortization

 
155,352

 
59,728

 

 
215,080

Restructuring charges

 
23,902

 
15,457

 

 
39,359

Acquisition-related costs

 
1,418

 
54

 

 
1,472

Net periodic pension and postretirement expense
54

 
4,075

 
349

 

 
4,478

Other expense, net

 
674

 
902

 

 
1,576

Total operating expenses
13,748

 
1,517,947

 
410,989

 
(66,192
)
 
1,876,492

Operating income (loss)
(13,748
)
 
91,415

 
230,176

 

 
307,843

Interest income
10,349

 
457

 
670

 
(10,543
)
 
933

Interest expense
(39,196
)
 
(34,267
)
 
(8,065
)
 
10,543

 
(70,985
)
Non-operating expense, net
(28,847
)
 
(33,810
)
 
(7,395
)
 

 
(70,052
)
Income (loss) from continuing operations before income taxes
(42,595
)
 
57,605

 
222,781

 

 
237,791

Benefit (provision) for income taxes
16,825

 
(22,754
)
 
(42,924
)
 

 
(48,853
)
Income (loss) from continuing operations
(25,770
)
 
34,851

 
179,857

 

 
188,938

Income from discontinued operations, net

 
3,754

 
47,501

 

 
51,255

Equity in net income of subsidiaries
265,963

 
227,358

 

 
(493,321
)
 

Net income
$
240,193

 
$
265,963

 
$
227,358

 
$
(493,321
)
 
$
240,193


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2014
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,464,257

 
$
663,636

 
$
(48,106
)
 
$
2,079,787

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
752,463

 
110,796

 
(48,106
)
 
815,153

Selling, general and administrative
12,721

 
497,742

 
279,289

 

 
789,752

Depreciation and amortization

 
135,489

 
45,754

 

 
181,243

Restructuring charges

 
5,173

 
3,602

 

 
8,775

Acquisition-related costs

 
1,268

 
633

 

 
1,901

Net periodic pension and postretirement expense
88

 
6,686

 

 

 
6,774

Other expense (income), net
49

 
(227
)
 
(1,117
)
 

 
(1,295
)
Total operating expenses
12,858

 
1,398,594

 
438,957

 
(48,106
)
 
1,802,303

Operating income (loss)
(12,858
)
 
65,663

 
224,679

 

 
277,484

Interest income

 
476

 
1,130

 
(618
)
 
988

Interest expense
(3,576
)
 
(51,020
)
 
(1,406
)
 
618

 
(55,384
)
Non-operating expense, net
(3,576
)
 
(50,544
)
 
(276
)
 

 
(54,396
)
Income (loss) from continuing operations before income taxes
(16,434
)
 
15,119

 
224,403

 

 
223,088

Benefit (provision) for income taxes
6,491

 
(5,971
)
 
(45,646
)
 

 
(45,126
)
Income (loss) from continuing operations
(9,943
)
 
9,148

 
178,757

 

 
177,962

Income from discontinued operations, net

 
6,664

 
9,923

 

 
16,587

Equity in net income of subsidiaries
204,492

 
92,372

 

 
(296,864
)
 

Net income
$
194,549

 
$
108,184

 
$
188,680

 
$
(296,864
)
 
$
194,549



CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2013
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,128,433

 
$
624,731

 
$
(61,161
)
 
$
1,692,003

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
647,513

 
103,624

 
(61,161
)
 
689,976

Selling, general and administrative
11,940

 
354,150

 
275,984

 

 
642,074

Depreciation and amortization

 
70,573

 
68,402

 

 
138,975

Restructuring charges

 
6,831

 
4,898

 

 
11,729

Acquisition-related costs

 
19,188

 
4,240

 

 
23,428

Net periodic pension and postretirement expense
141

 
11,427

 
51

 

 
11,619

Other expense (income), net
(61
)
 
(8,711
)
 
9,000

 

 
228

Total operating expenses
12,020

 
1,100,971

 
466,199

 
(61,161
)
 
1,518,029

Operating income (loss)
(12,020
)
 
27,462

 
158,532

 

 
173,974

Interest income

 
906

 
1,194

 
(829
)
 
1,271

Interest expense

 
(42,793
)
 
(2,618
)
 
829

 
(44,582
)
Non-operating expense, net

 
(41,887
)
 
(1,424
)
 

 
(43,311
)
Income (loss) from continuing operations before income taxes
(12,020
)
 
(14,425
)
 
157,108

 

 
130,663

Benefit (provision) for income taxes
4,748

 
5,659

 
(24,554
)
 

 
(14,147
)
Income (loss) from continuing operations
(7,272
)
 
(8,766
)
 
132,554

 

 
116,516

Income from discontinued operations, net

 
7,238

 
7,979

 

 
15,217

Equity in net income of subsidiaries
139,005

 
40,677

 

 
(179,682
)
 

Net income
$
131,733

 
$
39,149

 
$
140,533

 
$
(179,682
)
 
$
131,733




CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

 
 
 
 
 
 
 
 
 
 
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Year ended November 30, 2015
 
 
 
 
 
 
 
 
 
Comprehensive income
$
155,705

 
$
(47,860
)
 
$
146,409

 
$
(98,549
)
 
$
155,705

 
 
 
 
 
 
 
 
 
 
Year ended November 30, 2014
 
 
 
 
 
 
 
 
 
Comprehensive income
$
144,785

 
$
58,485

 
$
151,545

 
$
(210,030
)
 
$
144,785

 
 
 
 
 
 
 
 
 
 
Year ended November 30, 2013
 
 
 
 
 
 
 
 
 
Comprehensive income
$
121,465

 
$
28,268

 
$
129,955

 
$
(158,223
)
 
$
121,465



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED NOVEMBER 30, 2015
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
360,437

 
$
252,202

 
$

 
$
612,639

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(109,160
)
 
(13,761
)
 

 
(122,921
)
Acquisitions of businesses, net of cash acquired

 
(324,393
)
 
(45,515
)
 

 
(369,908
)
Change in other assets

 
(3,727
)
 

 

 
(3,727
)
Settlements of forward contracts

 

 
597

 

 
597

Advances provided to other subsidiaries

 

 
(600
)
 
600

 

Investment in subsidiaries

 
(100
)
 

 
100

 

Intercompany dividends received from subsidiaries

 
19,320

 

 
(19,320
)
 

Net cash used in investing activities

 
(418,060
)
 
(59,279
)
 
(18,620
)
 
(495,959
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings

 
550,000

 

 

 
550,000

Repayment of borrowings

 
(260,869
)
 
(283
)
 

 
(261,152
)
Excess tax benefit from stock-based compensation

 
5,494

 

 

 
5,494

Repurchases of common stock

 
(248,868
)
 

 

 
(248,868
)
Advances received from other subsidiaries

 
600

 

 
(600
)
 

Proceeds from issuance of intercompany equity

 

 
100

 
(100
)
 

Intercompany dividends paid to subsidiaries

 

 
(19,320
)
 
19,320

 

Net cash provided by (used in) financing activities

 
46,357

 
(19,503
)
 
18,620

 
45,474

Foreign exchange impact on cash balance

 

 
(22,162
)
 

 
(22,162
)
Net increase (decrease) in cash and cash equivalents

 
(11,266
)
 
151,258

 

 
139,992

Cash and cash equivalents at the beginning of the period

 
32,314

 
120,842

 

 
153,156

Cash and cash equivalents at the end of the period

 
21,048

 
272,100

 

 
293,148

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 
(1,568
)
 

 
(1,568
)
Cash and cash equivalents from continuing operations at the end of the period
$

 
$
21,048

 
$
270,532

 
$

 
$
291,580

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2014
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
441,627

 
$
186,472

 
$

 
$
628,099

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(99,016
)
 
(15,437
)
 

 
(114,453
)
Acquisitions of businesses, net of cash acquired

 
(177,276
)
 
(33,119
)
 

 
(210,395
)
Intangible assets acquired

 

 
(714
)
 

 
(714
)
Change in other assets

 
(4,608
)
 

 

 
(4,608
)
Settlements of forward contracts

 

 
6,159

 

 
6,159

Advances provided to other subsidiaries

 
(5,250
)
 
(765,379
)
 
770,629

 

Investment in subsidiaries
(740,675
)
 
(112
)
 

 
740,787

 

Intercompany dividends received from subsidiaries

 
55,098

 

 
(55,098
)
 

Net cash used in investing activities
(740,675
)
 
(231,164
)
 
(808,490
)
 
1,456,318

 
(324,011
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings
750,000

 
1,735,000

 

 

 
2,485,000

Repayment of borrowings

 
(2,677,596
)
 
(139,640
)
 

 
(2,817,236
)
Payment of debt issuance costs
(9,325
)
 
(9,669
)
 

 

 
(18,994
)
Excess tax benefit from stock-based compensation

 
13,297

 

 

 
13,297

Repurchases of common stock

 
(59,928
)
 

 

 
(59,928
)
Advances received from other subsidiaries

 
765,379

 
5,250

 
(770,629
)
 

Proceeds from issuance of intercompany equity

 

 
740,787

 
(740,787
)
 

Intercompany dividends paid to subsidiaries

 

 
(55,098
)
 
55,098

 

Net cash provided by (used in) financing activities
740,675

 
(233,517
)
 
551,299

 
(1,456,318
)
 
(397,861
)
Foreign exchange impact on cash balance

 

 
(11,438
)
 

 
(11,438
)
Net decrease in cash and cash equivalents

 
(23,054
)
 
(82,157
)
 

 
(105,211
)
Cash and cash equivalents at the beginning of the period

 
55,368

 
202,999

 

 
258,367

Cash and cash equivalents at the end of the period

 
32,314

 
120,842

 

 
153,156

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 

 

 

Cash and cash equivalents from continuing operations at the end of the period
$

 
$
32,314

 
$
120,842

 
$

 
$
153,156




CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2013
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
251,827

 
$
244,328

 
$

 
$
496,155

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(72,188
)
 
(18,546
)
 

 
(90,734
)
Acquisitions of businesses, net of cash acquired

 
(1,365,195
)
 
(121,839
)
 

 
(1,487,034
)
Change in other assets

 
1,347

 

 

 
1,347

Settlements of forward contracts

 

 
4,524

 

 
4,524

Advances provided to other subsidiaries

 

 
(16,116
)
 
16,116

 

Investment in subsidiaries

 
(1,404
)
 

 
1,404

 

Intercompany dividends received from subsidiaries

 
302,356

 

 
(302,356
)
 

Net cash used in investing activities

 
(1,135,084
)
 
(151,977
)
 
(284,836
)
 
(1,571,897
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings

 
1,235,261

 
139,739

 

 
1,375,000

Repayment of borrowings

 
(268,909
)
 

 

 
(268,909
)
Payment of debt issuance costs

 
(17,360
)
 

 

 
(17,360
)
Excess tax benefit from stock-based compensation

 
14,334

 

 

 
14,334

Proceeds from the exercise of employee stock options

 
549

 

 

 
549

Repurchases of common stock

 
(97,164
)
 

 

 
(97,164
)
Advances received from other subsidiaries

 
16,116

 

 
(16,116
)
 

Proceeds from issuance of intercompany equity

 

 
1,404

 
(1,404
)
 

Intercompany dividends paid to subsidiaries

 

 
(302,356
)
 
302,356

 

Net cash provided by (used in) financing activities

 
882,827

 
(161,213
)
 
284,836

 
1,006,450

Foreign exchange impact on cash balance

 

 
(17,349
)
 

 
(17,349
)
Net decrease in cash and cash equivalents

 
(430
)
 
(86,211
)
 

 
(86,641
)
Cash and cash equivalents at the beginning of the period

 
55,798

 
289,210

 

 
345,008

Cash and cash equivalents at the end of the period

 
55,368

 
202,999

 

 
258,367

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 

 

 

Cash and cash equivalents from continuing operations at the end of the period
$

 
$
55,368

 
$
202,999

 
$

 
$
258,367


v3.3.1.900
Significant Accounting Policies (Policies)
12 Months Ended
Nov. 30, 2015
Accounting Policies [Abstract]  
Segment Reporting, Policy [Policy Text Block]
Segments
We periodically reassess our identification of operating segments. As a result of changes in our organizational structure in the fourth quarter of 2015, we determined that our operating segments had changed from a geographic view to an industry vertical view. Our chief operating decision maker (CODM) now reviews operating results at the Resources, Transportation, and CMS segment level when determining how to allocate resources and assess performance.
Certain corporate transactions are not allocated to the reportable segments, including such items as stock-based compensation expense, net periodic pension and postretirement expense, corporate-level impairments, and gain (loss) on sale of corporate assets.
Trade and Other Accounts Receivable, Policy [Policy Text Block]
We record an accounts receivable allowance when it is probable that the accounts receivable balance will not be collected. The amounts comprising the allowance are based upon management’s estimates and historical collection trends.
Fiscal Period, Policy [Policy Text Block]
Fiscal Year End
Our fiscal year ends on November 30 of each year. References herein to individual years mean the year ended November 30. For example, 2015 means the year ended November 30, 2015.
Consolidation, Policy [Policy Text Block]
Consolidation Policy
The consolidated financial statements include the accounts of all wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates have been made in areas that include valuation of long-lived and intangible assets and goodwill, income taxes, pension and postretirement benefits, allowance for doubtful accounts, and stock-based compensation. Actual results could differ from those estimates.
Concentration Risk Disclosure [Text Block]
Concentration of Credit Risk
We are exposed to credit risk associated with cash equivalents, foreign currency and interest rate derivatives, and trade receivables. We do not believe that our cash equivalents or investments present significant credit risks because the counterparties to the instruments consist of major financial institutions that are financially sound or have been capitalized by the U.S. government, and we manage the notional amount of contracts entered into with any counterparty. Substantially all trade receivable balances are unsecured. The concentration of credit risk with respect to trade receivables is limited by the large number of customers in our customer base and their dispersion across various industries and geographic areas. We perform ongoing credit evaluations of our customers and maintain an allowance for probable credit losses. The allowance is based upon management’s assessment of known credit risks as well as general industry and economic conditions. Specific accounts receivable are written off upon notification of bankruptcy or once the account is significantly past due and our collection efforts are unsuccessful.
Fair Value Measurements, Policy [Policy Text Block]
Fair Value Measurements
Fair value is determined based on the assumptions that market participants would use in pricing the asset or liability. We utilize the following fair value hierarchy in determining fair values:

Level 1 – Quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves.

Level 3 – Unobservable inputs reflecting our view about the assumptions that market participants would use in pricing the asset or liability.

Our cash, accounts receivable, and accounts payable are all short-term in nature; therefore, the carrying value of these items approximates their fair value. The carrying value of our debt instruments other than our 5% senior notes due 2022 (5% Notes) approximate their fair value because of the variable interest rate associated with those instruments. The fair value of the 5% Notes is included in Note 8, and is measured using observable inputs in markets that are not active; consequently, we have classified the 5% Notes within Level 2 of the fair value hierarchy. Our derivatives, as further described in Note 7, are measured at fair value on a recurring basis by reference to similar transactions in active markets and observable inputs other than quoted prices; consequently, we have classified those financial instruments within Level 2 of the fair value hierarchy. Our pension plan assets, as further described in Note 13, are measured at fair value on a recurring basis by reference to similar assets in active markets and are therefore also classified within Level 2 of the fair value hierarchy.
Revenue Recognition, Policy [Policy Text Block]
Revenue Recognition
Revenue is recognized when all of the following criteria have been met: (a) persuasive evidence of an arrangement exists, (b) delivery has occurred or services have been rendered, (c) the price to the customer is fixed or determinable, and (d) collectibility is reasonably assured.

The majority of our revenue is derived from the sale of subscriptions. Our subscription agreements are typically annual and non-cancellable and may contain provisions for minimum monthly payments. For subscription revenue, the timing of our cash flows generally precedes the recognition of revenue and income, as we defer any initial payments and recognize revenue ratably as delivered over the subscription period.

Revenue is recognized upon delivery for non-subscription sales.

In certain locations, we use dealers to distribute our product offerings. For subscription product offerings sold through dealers, revenue is recognized ratably as delivered to the end user over the subscription period. For non-subscription product offerings sold through dealers, revenue is recognized upon delivery to the dealer.

We do not defer revenue for the limited number of subscription sales where we act as a sales agent for third parties and have no continuing responsibility to maintain and update the underlying database. We recognize this revenue on a net basis upon the sale of these subscriptions and delivery of the information and tools.

Services
We provide our customers with service offerings that are primarily sold on a stand-alone basis and on a significantly more limited basis as part of a multiple-element arrangement. Our service offerings are generally separately priced in a standard price book. For services that are not in a standard price book, as the price varies based on the nature and complexity of the service offering, pricing is based on the estimated amount of time to be incurred at standard billing rates for the estimated underlying effort for executing the associated deliverable in the contract. Revenue related to services performed under time-and-material-based contracts is recognized in the period performed at standard billing rates. Revenue associated with fixed-price contracts is recognized upon completion of each specified performance obligation. See discussion of “multiple-element arrangements” below. If the contract includes acceptance contingencies, revenue is recognized in the period in which we receive documentation of acceptance from the customer.

Software
In addition to meeting the standard revenue recognition criteria described above, revenue from software arrangements must also meet the requirement that vendor-specific objective evidence (“VSOE”) of the fair value of undelivered elements exists. As a significant portion of our software licenses are sold in multiple-element arrangements that include either maintenance or, in more limited circumstances, both maintenance and professional services, we use the residual method to determine the amount of license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as license revenue. We recognize license revenue upon delivery, with maintenance revenue recognized ratably over the maintenance period. We have established VSOE of the fair value of maintenance through independent maintenance renewals, which demonstrate a consistent relationship of pricing maintenance as a percentage of the discounted or undiscounted license list price. VSOE of the fair value of professional services is established based on daily rates when sold on a stand-alone basis.

Multiple-element arrangements
Occasionally, we may execute contracts with customers which contain multiple offerings. In our business, multiple-element arrangements refer to contracts with separate fees for subscription offerings, decision-support tools, maintenance, and/or related services. We have established separate units of accounting as each offering is primarily sold on a stand-alone basis. Using the relative selling price method, each element of the arrangement is allocated based generally on stand-alone sales of these products and services, which constitutes VSOE of selling price. We do not use any other factors, inputs, assumptions, or methods to determine an estimated selling price. We recognize the elements of the contract as follows:

Subscription offerings and license fees are recognized ratably over the license period as long as there is an associated licensing period or a future obligation. Otherwise, revenue is recognized upon delivery.
For non-subscription offerings of a multiple-element arrangement, the revenue is generally recognized for each element in the period in which delivery of the product to the customer occurs, completion of services occurs or, for post-contract support, ratably over the term of the maintenance period.
In some instances, customer acceptance is required for consulting services rendered. For those transactions, the service revenue component of the arrangement is recognized in the period that customer acceptance is obtained.
Cash and Cash Equivalents, Policy [Policy Text Block]
Cash and Cash Equivalents
We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value.

Deferred Charges, Policy [Policy Text Block]
Deferred Subscription Costs
Deferred subscription costs represent royalties and certain dealer commissions associated with customer subscriptions. These costs are deferred and amortized to expense over the period of the subscriptions.
Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment
Property and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows:
 
Buildings and improvements
 
7
to
30
years
Capitalized software
 
3
to
7
years
Computers and office equipment
 
3
to
10
years

Leasehold improvements are depreciated over the shorter of their estimated useful life or the life of the lease. Maintenance, repairs, and renewals of a minor nature are expensed as incurred. Betterments and major renewals which extend the useful lives of buildings, improvements, and equipment are capitalized. We also capitalize certain software development costs in accordance with ASC 350-40, "Accounting for Costs of Computer Software Developed or Obtained for Internal Use" and ASC 985-20, "Software to be Sold, Leased or Otherwise Marketed."

We review the carrying amounts of long-lived assets such as property and equipment whenever current events or circumstances indicate their value may be impaired. A long-lived asset with a finite life is considered to be impaired if its carrying value exceeds the estimated future undiscounted cash flows to be derived from it. Any impairment is measured by the amount that the carrying value of such assets exceeds their fair value, primarily based on estimated discounted cash flows. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell.
Lease, Policy [Policy Text Block]
Leases
In certain circumstances, we enter into leases with free rent periods or rent escalations over the term of the lease. In such cases, we calculate the total payments over the term of the lease and record them ratably as rent expense over that term.
Goodwill and Intangible Assets, Policy [Policy Text Block]
Intangible Assets and Goodwill
We account for our business acquisitions using the purchase method of accounting. We allocate the total cost of an acquisition to the underlying net assets based on their respective estimated fair values. As part of this allocation process, we must identify and attribute values and estimated lives to the intangible assets acquired. We evaluate our intangible assets and goodwill for impairment at least annually, as well as whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Impairments are expensed as incurred.

Finite-lived intangible assets
Identifiable intangible assets with finite lives are generally amortized on a straight-line basis over their respective lives, as follows:
Information databases
 
3
to
15
years
Customer relationships
 
4
to
17
years
Developed computer software
 
5
to
10
years
Trademarks
 
1
to
15
years
Other
 
1
to
8
years

Indefinite-lived intangible assets
When performing the impairment test for indefinite-lived intangible assets, we first conduct a qualitative analysis to determine whether we believe it is more likely than not that an asset has been impaired. If we believe an impairment has occurred, we then evaluate for impairment by comparing the amount by which the carrying value of the asset exceeds its fair value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value.

We estimate the fair value of trademarks based on the relief from royalty method using projected discounted future cash flows, which, in turn, are based on our views of uncertain variables such as growth rates, anticipated future economic conditions, and the appropriate discount rates relative to risk and estimates of residual values. The use of different estimates or assumptions within our discounted cash flow model when determining the fair value of our indefinite-lived intangible assets or using a methodology other than a discounted cash flow model could result in different values for our indefinite-lived intangible assets and could result in an impairment charge.

Goodwill
We test goodwill for impairment on a reporting unit level. A reporting unit is a group of businesses (i) for which discrete financial information is available and (ii) that have similar economic characteristics. We test goodwill for impairment by determining the fair value of each reporting unit and comparing it to the reporting unit's carrying value. We determine the fair value of our reporting units based on projected future discounted cash flows, which, in turn, are based on our views of uncertain variables such as growth rates, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. There were no deficiencies in reporting unit fair values versus carrying values in the fiscal years ended November 30, 2015, 2014, and 2013.
Income Tax, Policy [Policy Text Block]
Income Taxes
Deferred income taxes are provided using tax rates enacted for periods of expected reversal on all temporary differences. Temporary differences relate to differences between the book and tax basis of assets and liabilities, principally intangible assets, property and equipment, deferred revenue, pension and other postretirement benefits, accruals, and stock-based compensation. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made.

Judgment is required in determining the worldwide provision for income taxes. Additionally, the income tax provision is based on calculations and assumptions that are subject to examination by many different tax authorities and to changes in tax law and rates in many jurisdictions. We adjust our income tax provision in the period in which it becomes probable that actual results will differ from our estimates.
Pension and Other Postretirement Plans, Policy [Policy Text Block]
Pension and Other Postretirement Benefits
During the fourth quarter of each fiscal year (or upon any other remeasurement date), we immediately recognize net actuarial gains or losses in excess of a corridor in our operating results. The corridor amount is equivalent to 10 percent of the greater of the market-related value of plan assets or the plan's benefit obligation at the beginning of the year. We use the actual fair value of plan assets at the measurement date as the measure of the market-related value of plan assets.

Stockholders' Equity, Policy [Policy Text Block]
Treasury Stock
Treasury stock purchases, whether through stock retention or buyback programs and transactions, are recorded at actual cost. Issuances from treasury stock are recorded using the weighted-average cost method.
Earnings Per Share, Policy [Policy Text Block]
Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted EPS is computed using the weighted-average number of shares of Class A common stock and dilutive potential shares of Class A common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities were exercised or converted into shares of Class A common stock.
Advertising Costs, Policy [Policy Text Block]
Advertising Costs
Production costs are expensed as of the first date that the advertisements take place. Advertising expense was approximately $44.7 million, $35.2 million, and $12.7 million for the years ended November 30, 2015, 2014, and 2013, respectively, and was primarily comprised of advertising for CARFAX.
Foreign Currency Transactions and Translations Policy [Policy Text Block]
Foreign Currency
The functional currency of each of our foreign subsidiaries is typically such subsidiary’s local currency. Assets and liabilities are translated at period-end exchange rates. Income and expense items are translated at weighted-average rates of exchange prevailing during the year. Any translation adjustments are included in other comprehensive income. Transactions executed in currencies other than a subsidiary's functional currency (which result in exchange adjustments) are remeasured at spot rates and resulting foreign-exchange-transaction gains and losses are included in the results of operations.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]
Stock-Based Compensation
All stock-based awards are recognized in the income statement based on their grant date fair values. In addition, we estimate forfeitures at the grant date. Compensation expense is recognized based on the number of awards expected to vest. We adjust compensation expense in future periods if actual forfeitures differ from our estimates. Our forfeiture rate is based upon historical experience as well as anticipated employee turnover considering certain qualitative factors. We amortize the value of stock-based awards to expense over the vesting period on a straight-line basis. For awards with performance conditions, we evaluate the probability of the number of shares that are expected to vest, and compensation expense is then adjusted to reflect the number of shares expected to vest and the cumulative vesting period met to date.
Description of New Accounting Pronouncements Not yet Adopted [Text Block]
Recent Accounting Pronouncements
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The ASU is intended to reduce the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The standard will be effective for us in the first quarter of our fiscal year 2016. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements other than changing the classification criteria and related disclosures for any potential future disposals.

In May 2014, the FASB issued 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. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2019, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements, as well as which transition method we intend to use.

In August 2014, the FASB issued ASU 2014-15, which requires that management evaluate the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure is required if there is substantial doubt about the entity's ability to continue as a going concern. The standard will be effective for us in the fourth quarter of our fiscal year 2017, 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 April 2015, the FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The standard will be effective for us in the first quarter of our fiscal 2017, although early adoption is permitted. We expect that the only impact of this ASU on our financial statements will be the change in balance sheet presentation of our debt issuance costs.

In April 2015, the FASB issued ASU 2015-05, which provides guidance about a customer's accounting for fees paid in cloud computing arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, the customer should account for the arrangement as a service contract. The standard will be effective for us in the first quarter of our fiscal year 2017, although early adoption is permitted. We anticipate that we will adopt this standard using the prospective transition method, and do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard will be effective for us in the first quarter of our fiscal year 2017, 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 November 2015, the FASB issued ASU No. 2015-17, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. We have early adopted this standard and have applied the requirements retrospectively to all periods presented. The adoption of this standard resulted in the reclassification of $81.8 million from current deferred income tax assets in the consolidated balance sheet as of November 30, 2014 to noncurrent deferred income tax assets ($5.5 million) and noncurrent deferred income tax liabilities ($76.3 million).

v3.3.1.900
Business Combinations (Tables)
12 Months Ended
Nov. 30, 2015
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]  
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block]
The 2013 pro forma net income excludes $26.4 million of one-time change in control and transaction costs.
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the preliminary purchase price allocation, net of acquired cash, for all acquisitions completed in 2015 (in thousands):
 
Total
Assets:
 
Current assets
$
18,414

Property and equipment
1,890

Intangible assets
139,422

Goodwill
271,070

Other long-term assets
1,985

Total assets
432,781

Liabilities:
 
Current liabilities
1,677

Deferred revenue
18,052

Deferred taxes
43,026

Other long-term liabilities
118

Total liabilities
62,873

Purchase price
$
369,908


In December 2015, we acquired CARPROOF, a Canada-based company that offers products and services in vehicle history, appraisal, and valuation for the automotive industry, for approximately $460 million, net of cash acquired. We financed this acquisition through a combination of cash and borrowings under our revolving credit facility. In January 2016, we announced that we had signed a definitive agreement to acquire OPIS, an internationally referenced pricing reporting agency that serves the oil, natural gas, and biofuels industries, for $650 million. We expect to finance this transaction with additional bank borrowings.

During the year ended November 30, 2014, we completed the following acquisitions, none of which were material either individually or in the aggregate:

Global Trade Information Services (GTI). On August 1, 2014, we acquired GTI, a leading provider of international merchandise trade data. We acquired GTI in order to support our strategy of building integrated workflow solutions that target industry needs related to global trade.

PCI Acrylonitrile Limited (PCI Acrylonitrile). On August 28, 2014, we acquired PCI Acrylonitrile, a provider of information and analysis on the acrylonitrile propylene derivative product. We acquired PCI Acrylonitrile in order to strengthen our position in chemical market advisory services.

DisplaySearch and Solarbuzz. On November 6, 2014, we acquired the DisplaySearch and Solarbuzz businesses of The NPD Group. DisplaySearch conducts global primary research in display technology and Solarbuzz provides market intelligence, research, and forecasting for the solar industry. We acquired these two businesses in order to strengthen our supply chain offerings for displays and to help us develop new offerings in the solar market.

PacWest Consulting Partners (PacWest). On November 17, 2014, we acquired PacWest, a provider of information, market intelligence, and strategic analysis to the upstream unconventional oil and gas industry. We acquired PacWest in order to expand our presence in the hydraulic fracturing and related unconventional space.

The following table summarizes the purchase price allocation, net of acquired cash, for these acquisitions (in thousands):
 
 
Total
Assets:
 
 
Current assets
 
$
6,574

Property and equipment
 
345

Intangible assets
 
88,465

Goodwill
 
130,267

Other long-term assets
 
31

Total assets
 
225,682

Liabilities:
 
 
Current liabilities
 
632

Deferred revenue
 
14,322

Other long-term liabilities
 
333

Total liabilities
 
15,287

Purchase price
 
$
210,395


During 2013, we completed the following acquisitions, among others:

Exclusive Analysis and the business of Dodson Data Systems. On December 12, 2012, we announced the completion of two strategic acquisitions: Exclusive Analysis, a specialist intelligence company that forecasts political and violent risks worldwide, and the business of Dodson Data Systems, a leading provider of strategic information for companies engaged in oil and gas operations located in the Gulf of Mexico and the United States. We acquired these two businesses in order to augment our existing product portfolio by providing our customers with additional information, forecasting, and analytics.

Energy Publishing Inc. (Energy Publishing). On December 31, 2012, we acquired Energy Publishing, a leading provider of North American and Australasian coal intelligence. We acquired Energy Publishing in order to strengthen our position in coal intelligence and give us an immediate presence and deep coverage in North American and Australasian coal markets, complementing our existing global Energy and Power product offerings.

Fekete Associates. On April 5, 2013, we acquired Fekete Associates, a leading provider of integrated reservoir management software and services to the oil and gas industry. We acquired Fekete in order to combine Fekete's workflow tools with our existing energy information products to create efficiencies for customers by helping them make timely exploration and production decisions.

Waterborne Energy. On May 13, 2013, we acquired Waterborne Energy, a company that provides global research, analysis, and price information in the Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) sector. We acquired Waterborne in order to help us provide our customers with comprehensive and complete LPG and LNG intelligence that will aid them in making key business decisions regarding demand, supply, and pricing.

PFC Energy. On June 19, 2013, we acquired PFC Energy, a provider of upstream and downstream energy information, research, and analysis. We acquired PFC Energy because of its product offering set, geographical footprint, and customer relationships, all of which are complementary to IHS and bring greater depth and breadth in key areas of the IHS energy solution set.

R. L. Polk & Co. (Polk). On July 15, 2013, we acquired Polk, a recognized leader in providing automotive information and analytics solutions, for approximately $1.4 billion, consisting of approximately $1.25 billion in cash, net of cash acquired, and 1,334,477 shares of our common stock (at a value of $131.5 million), which we issued from our treasury stock. The cash portion of the transaction was funded with cash on hand, cash from our amended existing revolving credit facility, and a new bank term loan. We acquired Polk in order to further establish our automotive business as a strategic partner for the automotive industry worldwide.

We have included revenue and expenses attributable to Polk in the appropriate geographic segment (principally the Americas) from the date of acquisition. The Polk acquisition contributed $165.9 million of revenue and $14.4 million of income from continuing operations for the post-acquisition period ended November 30, 2013.

The following unaudited pro forma information has been prepared as if the Polk acquisition had been consummated at December 1, 2011. This information is presented for informational purposes only, and is not necessarily indicative of the operating results that would have occurred if the acquisition had been consummated as of that date. This information should not be used as a predictive measure of our future financial position, results of operations, or liquidity.

Supplemental pro forma financial information (Unaudited)
 
Year ended November 30, 2013
 
 
(In thousands, except per share data)
Total revenue
 
$
2,105,314

Net income
 
$
102,107

Diluted earnings per share
 
$
1.50



The 2013 pro forma net income excludes $26.4 million of one-time change in control and transaction costs.

The following table summarizes the purchase price allocation, net of acquired cash, for all acquisitions completed in 2013 (in thousands):

 
Polk
 
All others
 
Total
Assets:
 
 
 
 
 
Current assets
$
87,076

 
$
16,524

 
$
103,600

Property and equipment
32,311

 
2,759

 
35,070

Intangible assets
620,700

 
83,646

 
704,346

Goodwill
935,450

 
170,224

 
1,105,674

Other long-term assets
11,032

 
210

 
11,242

Total assets
1,686,569

 
273,363

 
1,959,932

Liabilities:
 
 
 
 
 
Current liabilities
53,785

 
29,673

 
83,458

Deferred taxes
243,842

 
4,250

 
248,092

Other long-term liabilities
8,926

 
936

 
9,862

Total liabilities
306,553

 
34,859

 
341,412

Purchase price
$
1,380,016

 
$
238,504

 
$
1,618,520


v3.3.1.900
Business Combinations Pro Forma Information (Tables) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2013
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]    
Business Acquisition, Pro Forma Information [Table Text Block]
The following unaudited pro forma information has been prepared as if the Polk acquisition had been consummated at December 1, 2011. This information is presented for informational purposes only, and is not necessarily indicative of the operating results that would have occurred if the acquisition had been consummated as of that date. This information should not be used as a predictive measure of our future financial position, results of operations, or liquidity.

Supplemental pro forma financial information (Unaudited)
 
Year ended November 30, 2013
 
 
(In thousands, except per share data)
Total revenue
 
$
2,105,314

Net income
 
$
102,107

Diluted earnings per share
 
$
1.50

 
Pro forma revenue   $ 2,105,314
Pro forma net income   $ 102,107
Pro forma diluted earnings per share   $ 1.50

v3.3.1.900
Accounts Receivable (Tables)
12 Months Ended
Nov. 30, 2015
Accounts Receivable Additional Disclosures [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
Our accounts receivable balance consists of the following as of November 30, 2015 and 2014 (in thousands):

 
 
2015
 
2014
Accounts receivable
 
$
368,371

 
$
433,586

Less: Accounts receivable allowance
 
(12,458
)
 
(12,212
)
Accounts receivable, net
 
$
355,913

 
$
421,374

Allowance for Credit Losses on Financing Receivables [Table Text Block]
The activity in our accounts receivable allowance consists of the following for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):
 
 
2015
 
2014
 
2013
Balance at beginning of year
 
$
12,212

 
$
10,988

 
$
4,346

Provision for bad debts
 
13,444

 
12,487

 
9,496

Other additions
 
2,434

 
1,052

 
2,133

Write-offs and other deductions
 
(15,632
)
 
(12,315
)
 
(4,987
)
Balance at end of year
 
$
12,458

 
$
12,212

 
$
10,988


v3.3.1.900
Property and Equipment (Tables)
12 Months Ended
Nov. 30, 2015
Property, Plant and Equipment [Abstract]  
Property and equipment values [Table Text Block]
Property and equipment consists of the following as of November 30, 2015 and 2014 (in thousands):
 
 
2015
 
2014
Land, buildings and improvements
 
$
115,144

 
$
114,618

Capitalized software
 
374,833

 
308,179

Computers and office equipment
 
121,919

 
127,202

Property and equipment, gross
 
611,896

 
549,999

Less: Accumulated depreciation
 
(297,530
)
 
(248,580
)
Property and equipment, net
 
$
314,366

 
$
301,419


v3.3.1.900
Intangible Assets (Tables)
12 Months Ended
Nov. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill [Table Text Block]
The following table presents details of our acquired intangible assets, other than goodwill (in thousands): 
 
As of November 30, 2015
 
As of November 30, 2014
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
Information databases
$
595,219

 
$
(233,729
)
 
$
361,490

 
$
607,655

 
$
(210,105
)
 
$
397,550

Customer relationships
540,467

 
(135,352
)
 
405,115

 
511,680

 
(116,138
)
 
395,542

Developed computer software
84,918

 
(35,988
)
 
48,930

 
138,940

 
(63,561
)
 
75,379

Trademarks
166,301

 
(34,777
)
 
131,524

 
163,739

 
(22,937
)
 
140,802

Other
14,837

 
(5,802
)
 
9,035

 
29,579

 
(8,844
)
 
20,735

Total
1,401,742

 
(445,648
)
 
956,094

 
1,451,593

 
(421,585
)
 
1,030,008

Intangible assets not subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
Trademarks
58,597

 

 
58,597

 
61,101

 

 
61,101

Total intangible assets
$
1,460,339

 
$
(445,648
)
 
$
1,014,691

 
$
1,512,694

 
$
(421,585
)
 
$
1,091,109

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
Estimated future amortization expense related to intangible assets held as of November 30, 2015 is as follows (in thousands):
Year
 
Amount
2016
 
$
126,058

2017
 
$
114,155

2018
 
$
101,815

2019
 
$
89,539

2020
 
$
81,395

Thereafter
 
$
443,132


v3.3.1.900
Derivatives (Tables)
12 Months Ended
Nov. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
The following table summarizes the notional amounts of these outstanding foreign currency forward contracts as of November 30, 2015 and 2014 (in thousands):

 
 
November 30, 2015
 
November 30, 2014
Notional amount of currency pair:
 
 
 
 
Contracts to buy USD with CAD
 
$

 
$
51,194

Contracts to buy CAD with USD
 
C$
9,290

 
C$

Contracts to buy CAD with GBP
 
C$

 
C$
50,000

Contracts to buy USD with EUR
 
$
8,508

 
$
12,517

Contracts to buy CHF with USD
 
CHF
19,000

 
CHF
9,000

Contracts to buy GBP with EUR
 
£
3,495

 
£
4,774

Contracts to buy USD with GBP
 
$

 
$
48,000

Contracts to buy GBP with USD
 
£
7,231

 
£

Contracts to buy USD with JPY
 
$

 
$
8,778

Contracts to buy USD with KRW
 
$

 
$
10,000

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table shows the classification, location, and fair value of our derivative instruments as of November 30, 2015 and 2014 (in thousands):

 
 
Fair Value of Derivative Instruments
 
 
 
 
November 30, 2015
 
November 30, 2014
 
Balance Sheet Location
Assets:
 
 
 
 
 
 
Derivatives designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
$

 
$
987

 
Other current assets
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
51

 
1,005

 
Other current assets
Total
 
$
51

 
$
1,992

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Derivatives designated as accounting hedges:
 
 
 
 
 
 
Interest rate swaps
 
$
24,345

 
$
16,662

 
Other accrued expenses and other liabilities
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
363

 
475

 
Other accrued expenses
Total
 
$
24,708

 
$
17,137

 
 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following table provides information about the cumulative amount of unrecognized hedge losses recorded in AOCI as of November 30, 2015 and November 30, 2014, as well as the activity on our cash flow hedging instruments for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
 
Year ended November 30,
 
 
2015
 
2014
 
2013
Beginning balance
 
$
(9,482
)
 
$
(2,199
)
 
$
(2,225
)
Amount of gain (loss) recognized in AOCI on derivative:
 
 
 
 
 
 
Interest rate swaps
 
(6,528
)
 
(8,941
)
 
(797
)
Foreign currency forwards
 
879

 
598

 
(153
)
Amount of loss (gain) reclassified from AOCI into income:
 
 
 
 
 
 
Interest rate swaps (1)
 
1,879

 
950

 
935

Foreign currency forwards (1)
 
(1,305
)
 
110

 
41

Ending balance
 
$
(14,557
)
 
$
(9,482
)
 
$
(2,199
)
 
 
 
 
 
 
 
(1) Amounts reclassified from AOCI into income related to interest rate swaps are recorded in interest expense, and amounts reclassified from AOCI into income related to foreign currency forwards are recorded in revenue.
Derivative Instruments, Gain (Loss) [Table Text Block]
The net gain (loss) on foreign currency forwards that are not designated as hedging instruments for the years ended November 30, 2015, 2014, and 2013, respectively, was as follows (in thousands):

 
 
 
 
Amount of (gain) loss recognized in the consolidated statements of operations
 
 
Location on consolidated statements of operations
 
2015
 
2014
 
2013
Foreign currency forwards
 
Other expense (income), net
 
$
4,912

 
$
(6,293
)
 
$
(5,372
)

The following table provides information about the cumulative amount of unrecognized hedge losses recorded in AOCI as of November 30, 2015 and November 30, 2014, as well as the activity on our cash flow hedging instruments for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
 
Year ended November 30,
 
 
2015
 
2014
 
2013
Beginning balance
 
$
(9,482
)
 
$
(2,199
)
 
$
(2,225
)
Amount of gain (loss) recognized in AOCI on derivative:
 
 
 
 
 
 
Interest rate swaps
 
(6,528
)
 
(8,941
)
 
(797
)
Foreign currency forwards
 
879

 
598

 
(153
)
Amount of loss (gain) reclassified from AOCI into income:
 
 
 
 
 
 
Interest rate swaps (1)
 
1,879

 
950

 
935

Foreign currency forwards (1)
 
(1,305
)
 
110

 
41

Ending balance
 
$
(14,557
)
 
$
(9,482
)
 
$
(2,199
)
 
 
 
 
 
 
 
(1) Amounts reclassified from AOCI into income related to interest rate swaps are recorded in interest expense, and amounts reclassified from AOCI into income related to foreign currency forwards are recorded in revenue.


The unrecognized gains relating to the foreign currency forwards are expected to be reclassified into revenue within the next 12 months, and approximately $8.5 million of the $24.3 million unrecognized losses relating to the interest rate swaps are expected to be reclassified into interest expense within the next 12 months.

v3.3.1.900
Debt (Tables)
12 Months Ended
Nov. 30, 2015
Debt Instrument [Line Items]  
Schedule of Debt [Table Text Block]
The following table summarizes total indebtedness as of November 30, 2015 and 2014 (in thousands):
 
 
November 30, 2015
 
November 30, 2014
2013 term loan
 
665,000

 
700,000

2014 revolving facility
 
710,000

 
385,000

5% senior notes due 2022
 
750,000

 
750,000

Capital leases
 
6,202

 
7,355

Total debt
 
$
2,131,202

 
$
1,842,355

Current portion
 
(36,019
)
 
(36,257
)
Total long-term debt
 
$
2,095,183

 
$
1,806,098

Schedule of Maturities of Long-term Debt [Table Text Block]
Maturities of outstanding borrowings under the 2013 term loan and 5% Notes as of November 30, 2015 are as follows (in thousands):
Year
 
Amount
2016
 
$
35,000

2017
 
70,000

2018
 
70,000

2019
 
490,000

2020
 

Thereafter
 
750,000

 
 
$
1,415,000


v3.3.1.900
Restructuring Charges (Tables)
12 Months Ended
Nov. 30, 2015
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Costs [Table Text Block]
The following table shows our restructuring activity and provides a reconciliation of the restructuring liability as of November 30, 2015 (in thousands):
 
Employee
Severance and
Other
Termination
Benefits
 
Contract
Termination
Costs
 
Other
 
Total
Balance at November 30, 2012
$
3,163

 
$
1,503

 
$
59

 
$
4,725

Add: Restructuring costs incurred
12,177

 
525

 
450

 
13,152

Revision to prior estimates
(1,498
)
 
75

 

 
(1,423
)
Less: Amount paid
(11,273
)
 
(2,000
)
 
(486
)
 
(13,759
)
Balance at November 30, 2013
2,569

 
103

 
23

 
2,695

Add: Restructuring costs incurred
8,437

 
396

 
1,269

 
10,102

Revision to prior estimates
(1,586
)
 
259

 

 
(1,327
)
Less: Amount paid
(6,453
)
 
(741
)
 
(1,152
)
 
(8,346
)
Balance at November 30, 2014
2,967

 
17

 
140

 
3,124

Add: Restructuring costs incurred
32,209

 
7,365

 
1,381

 
40,955

Revision to prior estimates
(1,597
)
 

 

 
(1,597
)
Less: Amount paid
(25,059
)
 
(1,164
)
 
(1,413
)
 
(27,636
)
Balance at November 30, 2015
$
8,520

 
$
6,218

 
$
108

 
$
14,846



v3.3.1.900
Acquisition Related Costs (Tables)
12 Months Ended
Nov. 30, 2015
Acquisition Related Costs [Abstract]  
Acquisition Related Cost Reserve Rollforward [Table Text Block]
The following table provides a reconciliation of the acquisition-related costs accrued liability as of November 30, 2015 (in thousands):
 
Employee
Severance and
Other
Termination
Benefits
 
Contract
Termination
Costs
 
Other
 
Total
Balance at November 30, 2012
$
584

 
$
84

 
$

 
$
668

Add: Costs incurred
7,828

 
1,291

 
14,487

 
23,606

Revision to prior estimates
(114
)
 
(44
)
 
(20
)
 
(178
)
Less: Amount paid
(2,439
)
 
(1,130
)
 
(14,396
)
 
(17,965
)
Balance at November 30, 2013
$
5,859

 
$
201

 
$
71

 
$
6,131

Add: Costs incurred
897

 
515

 
702

 
2,114

Revision to prior estimates
(230
)
 
17

 

 
(213
)
Less: Amount paid
(5,940
)
 
(618
)
 
(356
)
 
(6,914
)
Balance at November 30, 2014
$
586

 
$
115

 
$
417

 
$
1,118

Add: Costs incurred

 
166

 
1,360

 
1,526

Revision to prior estimates
(30
)
 
11

 
(35
)
 
(54
)
Less: Amount paid
(556
)
 
(157
)
 
(1,437
)
 
(2,150
)
Balance at November 30, 2015
$

 
$
135

 
$
305

 
$
440


v3.3.1.900
Discontinued Operations (Tables)
12 Months Ended
Nov. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]
Operating results for discontinued operations for the years ended November 30, 2015, 2014, and 2013, respectively, were as follows (in thousands):
 
 
2015
 
2014
 
2013
Revenue
 
$
129,956

 
$
151,007

 
$
148,629

 
 
 
 
 
 
 
Income from discontinued operations before income taxes
 
$
15,887

 
$
26,109

 
$
24,067

Tax benefit (expense)
 
35,368

 
(9,522
)
 
(8,850
)
Income from discontinued operations, net
 
$
51,255

 
$
16,587

 
$
15,217



In October 2015, we announced our intent to divest our OE&RM and GlobalSpec product groups, which are components of our CMS segment, due to a recent portfolio evaluation where we determined that these product groups no longer aligned with our strategic goals. OE&RM is also one of our reporting units. We launched the sales process for both product groups in November 2015 and anticipate completion of the divestitures within the next 12 months. As part of the fair value analysis for these discontinued operations, we determined that there was an impairment related to GlobalSpec based on the expected selling price for GlobalSpec; consequently, we recorded an impairment loss of approximately $3.4 million in the income from discontinued operations, net, caption of the consolidated statements of operations. The tax benefit includes recognition of a $42.4 million deferred tax asset for the difference between the book value of stock and the tax value of stock.

The following table provides the components of assets and liabilities held for sale as of November 30, 2015 (in thousands):
Current assets
 
$
19,505

Property and equipment, net
 
16,391

Intangible assets, net
 
58,298

Goodwill
 
99,183

Assets held for sale
 
$
193,377

 
 
 
Current liabilities
 
$
1,255

Deferred revenue
 
19,576

Deferred income taxes
 
11,266

Liabilities held for sale
 
$
32,097


v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Nov. 30, 2015
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
The amounts of income from continuing operations before income taxes by U.S. and foreign jurisdictions for the years ended November 30, 2015, 2014, and 2013, respectively, is as follows (in thousands):

 
2015
 
2014
 
2013
U.S.
$
26,096

 
$
(2,271
)
 
$
(57,257
)
Foreign
211,695

 
225,359

 
187,920

Income from continuing operations before income taxes
$
237,791

 
$
223,088

 
$
130,663

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The provision for income taxes from continuing operations for the years ended November 30, 2015, 2014, and 2013, respectively, is as follows (in thousands):

 
2015
 
2014
 
2013
Current:
 
 
 
 
 
U.S.
$
3,574

 
$
14,252

 
$
10,021

Foreign
41,420

 
34,261

 
35,214

State
(3,654
)
 
6,898

 
3,224

Total current
41,340

 
55,411

 
48,459

Deferred:
 
 
 
 
 
U.S.
8,665

 
(8,688
)
 
(24,313
)
Foreign
(5,410
)
 
1,234

 
(7,336
)
State
4,258

 
(2,831
)
 
(2,663
)
Total deferred
7,513

 
(10,285
)
 
(34,312
)
Provision for income taxes
$
48,853

 
$
45,126

 
$
14,147

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The following table presents the reconciliation of the provision for income taxes to the U.S. statutory tax rate for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
2015
 
2014
 
2013
Statutory U.S. federal income tax
$
83,227

 
$
78,081

 
$
45,732

State income tax, net of federal benefit
(1,157
)
 
2,025

 
(752
)
Foreign rate differential
(47,738
)
 
(68,236
)
 
(62,190
)
Tax rate change
(33
)
 
366

 
5,286

Valuation allowance
12,407

 
25,503

 
29,288

Change in reserves
106

 
28

 
(1,387
)
Other
2,041

 
7,359

 
(1,830
)
Provision for income taxes
$
48,853

 
$
45,126

 
$
14,147

Effective tax rate expressed as a percentage of pre-tax earnings
20.5
%
 
20.2
%
 
10.8
%
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
The significant components of deferred tax assets and liabilities as of November 30, 2015 and 2014 are as follows (in thousands):

 
2015
 
2014
Deferred tax assets:
 
 
 
Accruals and reserves
$
20,682

 
$
21,299

Deferred revenue
72

 
1,654

Pension and postretirement benefits
10,220

 
12,708

Tax credits
19,529

 
9,787

Deferred stock-based compensation
45,695

 
52,052

Tax benefit from outside basis difference (1)
42,440

 

Loss carryforwards
107,304

 
85,706

Other
16,809

 
10,657

Gross deferred tax assets
262,751

 
193,863

Valuation allowance
(78,830
)
 
(66,232
)
Realizable deferred tax assets
183,921

 
127,631

Deferred tax liabilities:
 
 
 
Fixed assets
(64,398
)
 
(18,107
)
Intangibles
(372,417
)
 
(375,163
)
Gross deferred tax liabilities
(436,815
)
 
(393,270
)
Net deferred tax liability
$
(252,894
)
 
$
(265,639
)
 
 
 
 
(1)  As a result of meeting the discontinued operations criteria for GlobalSpec, we have recognized the benefit of the related outside basis difference.
Summary of Income Tax Contingencies [Table Text Block]
A summary of the activities associated with our reserve for unrecognized tax benefits, interest, and penalties follows (in thousands):
 
Unrecognized Tax Benefits
 
Interest and Penalties
Balance at November 30, 2014
$
1,659

 
$
553

Additions:
 
 
 
Current year tax positions
700

 

Prior year tax positions
67

 

Associated with interest

 
98

Decreases:
 
 
 
Lapse of statute of limitations
(165
)
 
(61
)
Prior year tax positions
(554
)
 
(183
)
Balance at November 30, 2015
$
1,707

 
$
407


v3.3.1.900
Pensions and Post-retirement Benefits (Tables)
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Defined Benefit Plan Disclosure [Line Items]    
Target and Actual Allocations [Table Text Block]
The following table compares target asset allocation percentages with actual asset allocations at the end of 2015:

 
U.S. RIP Assets
 
U.K. RIP Assets
 
Target Allocations
 
Actual Allocations
 
Target Allocations
 
Actual Allocations
Fixed Income
75
%
 
73
%
 
45
%
 
48
%
Equities
25
%
 
24
%
 
55
%
 
45
%
Alternatives/Other
%
 
3
%
 
%
 
7
%
 
Schedule of Allocation of Plan Assets [Table Text Block]  
Plan assets as of November 30, 2015 and 2014 were classified in the following categories (in thousands):
 
 
2015
 
2014
Interest-bearing cash
 
$
6,791

 
$
3,940

Collective trust funds:
 
 
 
 
Fixed income funds
 
121,994

 
127,063

Equity funds
 
55,051

 
58,053

 
 
$
183,836

 
$
189,056

Schedule of Expected Benefit Payments [Table Text Block]
The following table provides the expected benefit payments for our pension plans (in thousands):

 
 
Total
2016
 
$
12,012

2017
 
$
12,078

2018
 
$
11,563

2019
 
$
11,634

2020
 
$
11,312

2021-2025
 
$
56,040

 
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
The changes in the projected benefit obligation, plan assets and the funded status of the pension plans were as follows (in thousands):

 
2015
 
2014
Change in projected benefit obligation:
 
 
 
Net benefit obligation, beginning of year
$
208,550

 
$
184,117

Service costs incurred
1,981

 
8,356

Interest costs on projected benefit obligation
8,300

 
8,442

Actuarial loss (gain)
(4,709
)
 
21,462

Gross benefits paid
(10,313
)
 
(9,133
)
Plan amendment

 
495

Curtailment gain

 
(2,842
)
Foreign currency exchange rate change
(1,919
)
 
(2,347
)
Net benefit obligation, end of year
$
201,890

 
$
208,550

Change in plan assets:
 
 
 
Fair value of plan assets, beginning of year
$
189,056

 
$
165,741

Actual return on plan assets
1,646

 
22,293

Employer contributions
5,345

 
12,484

Gross benefits paid
(10,313
)
 
(9,133
)
Foreign currency exchange rate change
(1,898
)
 
(2,329
)
Fair value of plan assets, end of year
$
183,836

 
$
189,056

Funded status (underfunded)
$
(18,054
)
 
$
(19,494
)
 
 
 
 
Amounts in Accumulated Other Comprehensive Income not yet recognized as components of net periodic pension and postretirement expense, pretax
 
 
 
Net actuarial loss
19,829

 
20,160

 
 
The net underfunded status of the plans is recorded in accrued pension and postretirement liability in the consolidated balance sheets.
 
Schedule of Net Benefit Costs [Table Text Block]
Our net periodic pension expense for the pension plans consisted of the following (in thousands): 

 
Year Ended November 30,
 
2015
 
2014
 
2013
Service costs incurred
$
1,981

 
$
8,356

 
$
10,420

Interest costs on projected benefit obligation
8,300

 
8,442

 
7,017

Expected return on plan assets
(8,699
)
 
(8,354
)
 
(7,550
)
Amortization of prior service credit

 
(791
)
 
(1,350
)
Amortization of transitional obligation

 
40

 
40

Curtailment gain

 
(2,806
)
 

Fourth quarter expense recognition of actuarial loss in excess of corridor
2,492

 
1,020

 
2,620

Net periodic pension expense
$
4,074

 
$
5,907

 
$
11,197

 
Schedule of Assumptions Used [Table Text Block]
Assumptions used in the actuarial calculation include the discount rate selected and disclosed at the end of the previous year as well as the expected rate of return on assets detailed in the table below, as of the years ended November 30, 2015 and 2014:
 
U.S. RIP
 
U.K. RIP
 
2015
 
2014
 
2015
 
2014
Weighted-average assumptions as of year-end
 
 
 
 
 
 
 
Discount rate
4.50
%
 
4.20
%
 
3.60
%
 
3.80
%
Expected long-term rate of return on assets
5.00
%
 
4.70
%
 
4.60
%
 
4.90
%


In 2014, we discontinued all future accruals to the U.S. RIP. As a result of the plan freeze and associated remeasurement, we used a weighted-average 5.2 percent expected long-term rate of return on plan assets and a weighted-average 4.7 percent discount rate for the U.S. RIP for 2014.
 
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Schedule of Expected Benefit Payments [Table Text Block]
The following table provides the expected benefit payments for the plan (in thousands):
Year
 
Amount (in thousands)
2016
 
$
734

2017
 
$
730

2018
 
$
726

2019
 
$
720

2020
 
$
690

2021-2025
 
$
3,084

 
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
Our net periodic postretirement expense and changes in the related projected benefit obligation were as follows (in thousands):

 
Year Ended November 30,
 
2015
 
2014
 
2013
Service costs incurred
$
16

 
$
16

 
$
23

Interest costs
388

 
412

 
399

Fourth quarter expense recognition of actuarial loss in excess of corridor

 
439

 

Net periodic postretirement expense
$
404

 
$
867

 
$
422


 
November 30, 2015
 
November 30, 2014
Change in projected postretirement benefit obligation:
 
 
 
Postretirement benefit obligation at beginning of year
$
9,645

 
$
8,815

Service costs
16

 
16

Interest costs
388

 
412

Actuarial (gain) loss
(847
)
 
1,407

Benefits paid
(511
)
 
(1,005
)
Postretirement benefit obligation at end of year
$
8,691

 
$
9,645

Unfunded status
$
(8,691
)
 
$
(9,645
)
 
 
 
 
Amounts in Accumulated Other Comprehensive Income not yet recognized as components of net periodic pension and postretirement expense, pretax
 
 
 
Net actuarial loss
$
117

 
$
964

 

v3.3.1.900
Stock-based Compensation (Tables)
12 Months Ended
Nov. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]
Stock-based compensation expense for the years ended November 30, 2015, 2014, and 2013, respectively, was as follows (in thousands):
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
Cost of revenue
 
$
6,892

 
$
8,520

 
$
8,271

Selling, general and administrative
 
122,024

 
150,737

 
147,447

Total stock-based compensation expense
 
$
128,916

 
$
159,257

 
$
155,718

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]
The following table summarizes RSU activity for the year ended November 30, 2015. Performance-based RSUs for the 2016 and 2017 performance periods are included in the table at target.
 
Shares
 
Weighted-
Average Grant
Date Fair Value
 
(in thousands)
 
 
Balance at November 30, 2014
2,518

 
$
102.24

Granted
1,361

 
$
116.14

Vested
(1,247
)
 
$
102.88

Forfeited
(191
)
 
$
114.00

Balance at November 30, 2015
2,441

 
$
108.74

Share Based Compensation Income Tax Benefit [Table Text Block]
Total income tax benefits recognized for stock-based compensation arrangements were as follows (in thousands):
 
 
2015
 
2014
 
2013
Income tax benefits
 
$
37,330

 
$
47,209

 
$
51,357


v3.3.1.900
Commitments and Contingencies (Tables)
12 Months Ended
Nov. 30, 2014
Operating Leased Assets [Line Items]  
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
Minimum rental commitments under non-cancelable operating leases in effect at November 30, 2015, are as follows:

Year
 
Amount (in thousands)
2016
 
$
58,222

2017
 
54,069

2018
 
44,484

2019
 
32,374

2020
 
26,620

Thereafter
 
76,005

 
 
$
291,774


v3.3.1.900
Earnings per Share (Tables)
12 Months Ended
Nov. 30, 2015
Earnings Per Share [Abstract]  
Schedule of Weighted Average Number of Shares [Table Text Block]
Weighted average shares of Class A common stock outstanding for the years ended November 30, 2015, 2014, and 2013, respectively, were calculated as follows (in thousands):
 
 
2015
 
2014
 
2013
Weighted-average shares outstanding:
 
 
 
 
 
 
Shares used in basic EPS calculation
 
68,450

 
68,163

 
66,434

Effect of dilutive securities:
 
 
 
 
 
 
Restricted stock units
 
839

 
957

 
1,006

Stock options and other stock-based awards
 

 

 
2

Shares used in diluted EPS calculation
 
69,289

 
69,120

 
67,442


v3.3.1.900
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Nov. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following table summarizes the changes in AOCI by component (net of tax) for the year ended November 30, 2015 (in thousands):
 
 
Foreign currency translation
 
Net pension and OPEB liability
 
Unrealized losses on hedging activities
 
Total
Balance at November 30, 2012
 
$
(35,374
)
 
$
(9,094
)
 
$
(2,225
)
 
$
(46,693
)
Other comprehensive income (loss) before reclassifications
 
(11,191
)
 
85

 
(950
)
 
(12,056
)
Reclassifications from AOCI to income
 

 
812

 
976

 
1,788

Balance at November 30, 2013
 
$
(46,565
)
 
$
(8,197
)
 
$
(2,199
)
 
$
(56,961
)
Other comprehensive income (loss) before reclassifications
 
(37,069
)
 
(4,144
)
 
(8,343
)
 
(49,556
)
Reclassifications from AOCI to income
 

 
(1,268
)
 
1,060

 
(208
)
Balance at November 30, 2014
 
$
(83,634
)
 
$
(13,609
)
 
$
(9,482
)
 
$
(106,725
)
Other comprehensive loss before reclassifications
 
(79,873
)
 
(1,170
)
 
(5,649
)
 
(86,692
)
Reclassifications from AOCI to income
 

 
1,630

 
574

 
2,204

Balance at November 30, 2015
 
$
(163,507
)
 
$
(13,149
)
 
$
(14,557
)
 
$
(191,213
)

v3.3.1.900
Supplemental Cash Flow Information (Tables)
12 Months Ended
Nov. 30, 2015
Supplemental Cash Flow Information [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]
Net cash provided by operating activities reflects cash payments for interest and income taxes as shown below, for the years ended November 30, 2015, 2014, and 2013, respectively (in thousands):

 
 
2015
 
2014
 
2013
Interest paid
 
$
65,429

 
$
45,396

 
$
39,023

Income tax payments (refunds), net
 
$
11,489

 
$
52,030

 
$
(9,458
)

v3.3.1.900
Segment Information (Tables)
12 Months Ended
Nov. 30, 2015
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
The table below provides information about revenue and long-lived assets for the U.S. and the rest of the world for 2015, 2014, and 2013. There were no material individual foreign countries. Revenue by geographic area is generally based on the "ship to" location. Long-lived assets include net property and equipment.
 
2015
 
2014
 
2013
(in thousands)
Revenue
 
Long-lived assets
 
Revenue
 
Long-lived assets
 
Revenue
 
Long-lived assets
United States
$
1,327,390

 
$
272,919

 
$
1,176,813

 
$
254,008

 
$
919,151

 
$
196,987

Rest of world
856,945

 
41,447

 
902,974

 
47,411

 
772,852

 
48,579

Total
$
2,184,335

 
$
314,366

 
$
2,079,787

 
$
301,419

 
$
1,692,003

 
$
245,566

Schedule of Segment Reporting Information, by Segment [Table Text Block]
 
Resources
 
Transportation
 
CMS
 
Shared
Services
 
Consolidated
Total
 
(In thousands)
Year Ended November 30, 2015
 
 
 
 
 
 
 
 
Revenue
$
884,596

 
$
758,404

 
$
541,335

 
$

 
$
2,184,335

Operating income
$
248,280

 
$
193,668

 
$
49,319

 
$
(183,424
)
 
$
307,843

Depreciation and amortization
$
85,924

 
$
80,696

 
$
48,135

 
$
325

 
$
215,080

Total Assets
$
2,247,747

 
$
2,319,097

 
$
840,860

 
$
193,377

 
$
5,601,081

Year Ended November 30, 2014
 
 
 
 
 
 
 
 
Revenue
$
927,211

 
$
662,547

 
$
490,029

 
$

 
$
2,079,787

Operating income
$
286,393

 
$
160,361

 
$
52,225

 
$
(221,495
)
 
$
277,484

Depreciation and amortization
$
77,576

 
$
70,772

 
$
32,554

 
$
341

 
$
181,243

Total Assets
$
2,249,604

 
$
2,237,669

 
$
784,863

 
$

 
$
5,272,136

Year Ended November 30, 2013
 
 
 
 
 
 
 
 
Revenue
$
865,126

 
$
353,787

 
$
473,090

 
$

 
$
1,692,003

Operating income
$
284,475

 
$
67,255

 
$
32,899

 
$
(210,655
)
 
$
173,974

Depreciation and amortization
$
62,256

 
$
37,644

 
$
38,952

 
$
123

 
$
138,975

Total Assets
$
2,352,730

 
$
2,179,261

 
$
827,622

 
$

 
$
5,359,613

Revenue from External Customers by Products and Services [Table Text Block]
Revenue by transaction type was as follows:
(in thousands)
 
2015
 
2014
 
2013
Subscription revenue
 
$
1,768,541

 
$
1,643,844

 
$
1,326,630

Non-subscription revenue
 
415,794

 
435,943

 
365,373

Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

Revenue by geography was as follows:
(in thousands)
 
2015
 
2014
 
2013
Americas
 
$
1,459,743

 
$
1,353,616

 
1,041,425

EMEA
 
508,066

 
518,820

 
458,531

APAC
 
216,526

 
207,351

 
192,047

Total revenue
 
$
2,184,335

 
$
2,079,787

 
$
1,692,003

Schedule of Goodwill [Table Text Block]
Activity in our goodwill account was as follows:
(in thousands)
Resources
 
Transportation
 
CMS
 
Consolidated Total
Balance at November 30, 2013
$
1,558,103

 
$
1,237,170

 
$
269,908

 
$
3,065,181

Acquisitions
14,474

 
74,320

 
41,473

 
130,267

Adjustments to purchase price
(4,197
)
 
1,007

 
(2,301
)
 
(5,491
)
Foreign currency translation
(16,044
)
 
(13,427
)
 
(3,162
)
 
(32,633
)
Balance at November 30, 2014
1,552,336

 
1,299,070

 
305,918

 
3,157,324

Acquisitions
35,027

 
81,520

 
154,523

 
271,070

Adjustments to purchase price
2,427

 
(825
)
 
4,517

 
6,119

Reclassification to assets held for sale

 

 
(102,566
)
 
(102,566
)
Foreign currency translation
(21,227
)
 
(18,423
)
 
(4,838
)
 
(44,488
)
Balance at November 30, 2015
$
1,568,563

 
$
1,361,342

 
$
357,554

 
$
3,287,459


v3.3.1.900
Quarterly Results of Operations (Unaudited) (Tables)
12 Months Ended
Nov. 30, 2015
Selected Quarterly Financial Information [Abstract]  
Schedule of Quarterly Financial Information [Table Text Block]
The following table summarizes certain quarterly results of operations (in thousands):

 
Three Months Ended
 
February 28
 
May 31
 
August 31
 
November 30
2015
 
 
 
 
 
 
 
Revenue
$
513,876

 
$
556,940

 
$
557,813

 
$
555,706

 
 
 
 
 
 
 
 
Income from continuing operations
$
37,950

 
$
46,673

 
$
56,961

 
$
47,354

Income from discontinued operations
1,570

 
4,279

 
2,283

 
43,123

Net income
$
39,520

 
$
50,952

 
$
59,244

 
$
90,477

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.55

 
$
0.68

 
$
0.83

 
$
0.70

Income from discontinued operations
0.02

 
0.06

 
0.03

 
0.63

Net income
$
0.58

 
$
0.74

 
$
0.87

 
$
1.33

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.55

 
$
0.68

 
$
0.83

 
$
0.69

Income from discontinued operations
$
0.02

 
$
0.06

 
$
0.03

 
$
0.63

Net income
$
0.57

 
$
0.74

 
$
0.86

 
$
1.32

 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
Revenue
$
490,104

 
$
529,871

 
$
518,680

 
$
541,132

 
 
 
 
 
 
 
 
Income from continuing operations
$
30,979

 
$
51,084

 
$
41,909

 
$
53,990

Income from discontinued operations
1,443

 
4,408

 
4,608

 
6,128

Net income
$
32,422

 
$
55,492

 
$
46,517

 
$
60,118

 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.46

 
$
0.75

 
$
0.61

 
$
0.79

Income from discontinued operations
0.02

 
0.06

 
0.07

 
0.09

Net income
$
0.48

 
$
0.81

 
$
0.68

 
$
0.88

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
0.45

 
$
0.74

 
$
0.61

 
$
0.78

Income from discontinued operations
0.02

 
0.06

 
0.07

 
0.09

Net income
$
0.47

 
$
0.81

 
$
0.68

 
$
0.87


v3.3.1.900
Supplemental Guarantor Information (Tables)
12 Months Ended
Nov. 30, 2015
Condensed Balance Sheet Statements, Captions [Line Items]  
Condensed Balance Sheet [Table Text Block]
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF NOVEMBER 30, 2015
(In thousands)
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
21,048

 
$
270,532

 
$

 
$
291,580

Accounts receivable, net

 
192,889

 
163,024

 

 
355,913

Income tax receivable
42,663

 

 
3,021

 
(41,099
)
 
4,585

Deferred subscription costs

 
52,210

 
30,082

 
(29,540
)
 
52,752

Intercompany receivables
465,915

 
38,381

 
179,798

 
(684,094
)
 

Assets held for sale

 
99,743

 
93,634

 

 
193,377

Other
1,681

 
38,220

 
17,234

 

 
57,135

Total current assets
510,259

 
442,491

 
757,325

 
(754,733
)
 
955,342

Non-current assets:
 
 
 
 
 
 
 
 
 
Property and equipment, net

 
267,422

 
46,944

 

 
314,366

Intangible assets, net

 
768,029

 
246,662

 

 
1,014,691

Goodwill

 
2,274,422

 
1,013,037

 

 
3,287,459

Deferred income taxes
58,471

 

 
6,630

 
(58,471
)
 
6,630

Investment in subsidiaries
2,416,961

 
3,045,096

 

 
(5,462,057
)
 

Intercompany notes receivable

 

 
724,778

 
(724,778
)
 

Other
10,181

 
11,130

 
1,282

 

 
22,593

Total non-current assets
2,485,613

 
6,366,099

 
2,039,333

 
(6,245,306
)
 
4,645,739

Total assets
$
2,995,872

 
$
6,808,590

 
$
2,796,658

 
$
(7,000,039
)
 
$
5,601,081

Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
36,019

 
$

 
$

 
$
36,019

Accounts payable
5

 
39,689

 
19,486

 

 
59,180

Accrued compensation

 
69,889

 
35,588

 

 
105,477

Accrued royalties

 
25,985

 
7,321

 

 
33,306

Other accrued expenses
3,453

 
74,055

 
40,709

 

 
118,217

Income tax payable

 
64,077

 
362

 
(41,100
)
 
23,339

Deferred revenue

 
321,766

 
260,272

 
(29,540
)
 
552,498

Intercompany payables
22,721

 
549,783

 
122,855

 
(695,359
)
 

Liabilities held for sale

 
12,402

 
19,695

 

 
32,097

Total current liabilities
26,179

 
1,193,665

 
506,288

 
(765,999
)
 
960,133

Long-term debt
750,000

 
1,345,183

 

 

 
2,095,183

Accrued pension and postretirement liability
18,260

 
8,188

 
297

 

 
26,745

Deferred income taxes

 
259,764

 
46,965

 
(47,205
)
 
259,524

Intercompany notes payable

 
724,778

 

 
(724,778
)
 

Other liabilities
556

 
40,755

 
17,308

 

 
58,619

Total stockholders’ equity
2,200,877

 
3,236,257

 
2,225,800

 
(5,462,057
)
 
2,200,877

Total liabilities and stockholders’ equity
$
2,995,872

 
$
6,808,590

 
$
2,796,658

 
$
(7,000,039
)
 
$
5,601,081


CONDENSED CONSOLIDATING BALANCE SHEET
AS OF NOVEMBER 30, 2014
(In thousands)
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
32,314

 
$
120,842

 
$

 
$
153,156

Accounts receivable, net

 
212,711

 
208,663

 

 
421,374

Income tax receivable
18,000

 
16,384

 

 
(32,101
)
 
2,283

Deferred subscription costs

 
53,272

 
28,048

 
(30,299
)
 
51,021

Intercompany receivables
712,976

 
174,161

 
291,873

 
(1,179,010
)
 

Other
1,669

 
41,481

 
17,823

 

 
60,973

Total current assets
732,645

 
530,323

 
667,249

 
(1,241,410
)
 
688,807

Non-current assets:
 
 
 
 
 
 
 
 
 
Property and equipment, net

 
246,498

 
54,921

 

 
301,419

Intangible assets, net

 
826,152

 
264,957

 

 
1,091,109

Goodwill

 
2,258,393

 
898,931

 

 
3,157,324

Deferred income taxes
59,594

 

 
5,486

 
(59,594
)
 
5,486

Investment in subsidiaries
2,249,359

 
1,748,795

 

 
(3,998,154
)
 

Intercompany notes receivable

 

 
740,879

 
(740,879
)
 

Other
11,498

 
13,701

 
2,792

 

 
27,991

Total non-current assets
2,320,451

 
5,093,539

 
1,967,966

 
(4,798,627
)
 
4,583,329

Total assets
$
3,053,096

 
$
5,623,862

 
$
2,635,215

 
$
(6,040,037
)
 
$
5,272,136

Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
35,974

 
$
283

 
$

 
$
36,257

Accounts payable
93

 
31,083

 
21,069

 

 
52,245

Accrued compensation

 
57,651

 
44,224

 

 
101,875

Accrued royalties

 
24,590

 
12,756

 

 
37,346

Other accrued expenses
3,830

 
91,131

 
36,186

 

 
131,147

Income tax payable

 

 
32,101

 
(32,101
)
 

Deferred revenue

 
317,144

 
309,342

 
(30,299
)
 
596,187

Intercompany payables
119,268

 
1,056,664

 
3,078

 
(1,179,010
)
 

Total current liabilities
123,191

 
1,614,237

 
459,039

 
(1,241,410
)
 
955,057

Long-term debt
750,000

 
1,056,098

 

 

 
1,806,098

Accrued pension and postretirement liability
19,603

 
8,869

 
667

 

 
29,139

Deferred income taxes

 
283,211

 
47,508

 
(59,594
)
 
271,125

Intercompany notes payable

 
740,879

 

 
(740,879
)
 

Other liabilities
756

 
30,887

 
19,528

 

 
51,171

Total stockholders’ equity
2,159,546

 
1,889,681

 
2,108,473

 
(3,998,154
)
 
2,159,546

Total liabilities and stockholders’ equity
$
3,053,096

 
$
5,623,862

 
$
2,635,215

 
$
(6,040,037
)
 
$
5,272,136

Condensed Income Statement [Table Text Block]
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2015
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,609,362

 
$
641,165

 
$
(66,192
)
 
$
2,184,335

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
808,214

 
77,151

 
(66,192
)
 
819,173

Selling, general and administrative
13,694

 
524,312

 
257,348

 

 
795,354

Depreciation and amortization

 
155,352

 
59,728

 

 
215,080

Restructuring charges

 
23,902

 
15,457

 

 
39,359

Acquisition-related costs

 
1,418

 
54

 

 
1,472

Net periodic pension and postretirement expense
54

 
4,075

 
349

 

 
4,478

Other expense, net

 
674

 
902

 

 
1,576

Total operating expenses
13,748

 
1,517,947

 
410,989

 
(66,192
)
 
1,876,492

Operating income (loss)
(13,748
)
 
91,415

 
230,176

 

 
307,843

Interest income
10,349

 
457

 
670

 
(10,543
)
 
933

Interest expense
(39,196
)
 
(34,267
)
 
(8,065
)
 
10,543

 
(70,985
)
Non-operating expense, net
(28,847
)
 
(33,810
)
 
(7,395
)
 

 
(70,052
)
Income (loss) from continuing operations before income taxes
(42,595
)
 
57,605

 
222,781

 

 
237,791

Benefit (provision) for income taxes
16,825

 
(22,754
)
 
(42,924
)
 

 
(48,853
)
Income (loss) from continuing operations
(25,770
)
 
34,851

 
179,857

 

 
188,938

Income from discontinued operations, net

 
3,754

 
47,501

 

 
51,255

Equity in net income of subsidiaries
265,963

 
227,358

 

 
(493,321
)
 

Net income
$
240,193

 
$
265,963

 
$
227,358

 
$
(493,321
)
 
$
240,193


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2014
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,464,257

 
$
663,636

 
$
(48,106
)
 
$
2,079,787

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
752,463

 
110,796

 
(48,106
)
 
815,153

Selling, general and administrative
12,721

 
497,742

 
279,289

 

 
789,752

Depreciation and amortization

 
135,489

 
45,754

 

 
181,243

Restructuring charges

 
5,173

 
3,602

 

 
8,775

Acquisition-related costs

 
1,268

 
633

 

 
1,901

Net periodic pension and postretirement expense
88

 
6,686

 

 

 
6,774

Other expense (income), net
49

 
(227
)
 
(1,117
)
 

 
(1,295
)
Total operating expenses
12,858

 
1,398,594

 
438,957

 
(48,106
)
 
1,802,303

Operating income (loss)
(12,858
)
 
65,663

 
224,679

 

 
277,484

Interest income

 
476

 
1,130

 
(618
)
 
988

Interest expense
(3,576
)
 
(51,020
)
 
(1,406
)
 
618

 
(55,384
)
Non-operating expense, net
(3,576
)
 
(50,544
)
 
(276
)
 

 
(54,396
)
Income (loss) from continuing operations before income taxes
(16,434
)
 
15,119

 
224,403

 

 
223,088

Benefit (provision) for income taxes
6,491

 
(5,971
)
 
(45,646
)
 

 
(45,126
)
Income (loss) from continuing operations
(9,943
)
 
9,148

 
178,757

 

 
177,962

Income from discontinued operations, net

 
6,664

 
9,923

 

 
16,587

Equity in net income of subsidiaries
204,492

 
92,372

 

 
(296,864
)
 

Net income
$
194,549

 
$
108,184

 
$
188,680

 
$
(296,864
)
 
$
194,549



CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 2013
(In thousands)


 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Revenue
$

 
$
1,128,433

 
$
624,731

 
$
(61,161
)
 
$
1,692,003

Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue

 
647,513

 
103,624

 
(61,161
)
 
689,976

Selling, general and administrative
11,940

 
354,150

 
275,984

 

 
642,074

Depreciation and amortization

 
70,573

 
68,402

 

 
138,975

Restructuring charges

 
6,831

 
4,898

 

 
11,729

Acquisition-related costs

 
19,188

 
4,240

 

 
23,428

Net periodic pension and postretirement expense
141

 
11,427

 
51

 

 
11,619

Other expense (income), net
(61
)
 
(8,711
)
 
9,000

 

 
228

Total operating expenses
12,020

 
1,100,971

 
466,199

 
(61,161
)
 
1,518,029

Operating income (loss)
(12,020
)
 
27,462

 
158,532

 

 
173,974

Interest income

 
906

 
1,194

 
(829
)
 
1,271

Interest expense

 
(42,793
)
 
(2,618
)
 
829

 
(44,582
)
Non-operating expense, net

 
(41,887
)
 
(1,424
)
 

 
(43,311
)
Income (loss) from continuing operations before income taxes
(12,020
)
 
(14,425
)
 
157,108

 

 
130,663

Benefit (provision) for income taxes
4,748

 
5,659

 
(24,554
)
 

 
(14,147
)
Income (loss) from continuing operations
(7,272
)
 
(8,766
)
 
132,554

 

 
116,516

Income from discontinued operations, net

 
7,238

 
7,979

 

 
15,217

Equity in net income of subsidiaries
139,005

 
40,677

 

 
(179,682
)
 

Net income
$
131,733

 
$
39,149

 
$
140,533

 
$
(179,682
)
 
$
131,733

Condensed Statement of Comprehensive Income [Table Text Block]
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

 
 
 
 
 
 
 
 
 
 
 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Year ended November 30, 2015
 
 
 
 
 
 
 
 
 
Comprehensive income
$
155,705

 
$
(47,860
)
 
$
146,409

 
$
(98,549
)
 
$
155,705

 
 
 
 
 
 
 
 
 
 
Year ended November 30, 2014
 
 
 
 
 
 
 
 
 
Comprehensive income
$
144,785

 
$
58,485

 
$
151,545

 
$
(210,030
)
 
$
144,785

 
 
 
 
 
 
 
 
 
 
Year ended November 30, 2013
 
 
 
 
 
 
 
 
 
Comprehensive income
$
121,465

 
$
28,268

 
$
129,955

 
$
(158,223
)
 
$
121,465

Condensed Cash Flow Statement [Table Text Block]
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED NOVEMBER 30, 2015
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
360,437

 
$
252,202

 
$

 
$
612,639

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(109,160
)
 
(13,761
)
 

 
(122,921
)
Acquisitions of businesses, net of cash acquired

 
(324,393
)
 
(45,515
)
 

 
(369,908
)
Change in other assets

 
(3,727
)
 

 

 
(3,727
)
Settlements of forward contracts

 

 
597

 

 
597

Advances provided to other subsidiaries

 

 
(600
)
 
600

 

Investment in subsidiaries

 
(100
)
 

 
100

 

Intercompany dividends received from subsidiaries

 
19,320

 

 
(19,320
)
 

Net cash used in investing activities

 
(418,060
)
 
(59,279
)
 
(18,620
)
 
(495,959
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings

 
550,000

 

 

 
550,000

Repayment of borrowings

 
(260,869
)
 
(283
)
 

 
(261,152
)
Excess tax benefit from stock-based compensation

 
5,494

 

 

 
5,494

Repurchases of common stock

 
(248,868
)
 

 

 
(248,868
)
Advances received from other subsidiaries

 
600

 

 
(600
)
 

Proceeds from issuance of intercompany equity

 

 
100

 
(100
)
 

Intercompany dividends paid to subsidiaries

 

 
(19,320
)
 
19,320

 

Net cash provided by (used in) financing activities

 
46,357

 
(19,503
)
 
18,620

 
45,474

Foreign exchange impact on cash balance

 

 
(22,162
)
 

 
(22,162
)
Net increase (decrease) in cash and cash equivalents

 
(11,266
)
 
151,258

 

 
139,992

Cash and cash equivalents at the beginning of the period

 
32,314

 
120,842

 

 
153,156

Cash and cash equivalents at the end of the period

 
21,048

 
272,100

 

 
293,148

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 
(1,568
)
 

 
(1,568
)
Cash and cash equivalents from continuing operations at the end of the period
$

 
$
21,048

 
$
270,532

 
$

 
$
291,580

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2014
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
441,627

 
$
186,472

 
$

 
$
628,099

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(99,016
)
 
(15,437
)
 

 
(114,453
)
Acquisitions of businesses, net of cash acquired

 
(177,276
)
 
(33,119
)
 

 
(210,395
)
Intangible assets acquired

 

 
(714
)
 

 
(714
)
Change in other assets

 
(4,608
)
 

 

 
(4,608
)
Settlements of forward contracts

 

 
6,159

 

 
6,159

Advances provided to other subsidiaries

 
(5,250
)
 
(765,379
)
 
770,629

 

Investment in subsidiaries
(740,675
)
 
(112
)
 

 
740,787

 

Intercompany dividends received from subsidiaries

 
55,098

 

 
(55,098
)
 

Net cash used in investing activities
(740,675
)
 
(231,164
)
 
(808,490
)
 
1,456,318

 
(324,011
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings
750,000

 
1,735,000

 

 

 
2,485,000

Repayment of borrowings

 
(2,677,596
)
 
(139,640
)
 

 
(2,817,236
)
Payment of debt issuance costs
(9,325
)
 
(9,669
)
 

 

 
(18,994
)
Excess tax benefit from stock-based compensation

 
13,297

 

 

 
13,297

Repurchases of common stock

 
(59,928
)
 

 

 
(59,928
)
Advances received from other subsidiaries

 
765,379

 
5,250

 
(770,629
)
 

Proceeds from issuance of intercompany equity

 

 
740,787

 
(740,787
)
 

Intercompany dividends paid to subsidiaries

 

 
(55,098
)
 
55,098

 

Net cash provided by (used in) financing activities
740,675

 
(233,517
)
 
551,299

 
(1,456,318
)
 
(397,861
)
Foreign exchange impact on cash balance

 

 
(11,438
)
 

 
(11,438
)
Net decrease in cash and cash equivalents

 
(23,054
)
 
(82,157
)
 

 
(105,211
)
Cash and cash equivalents at the beginning of the period

 
55,368

 
202,999

 

 
258,367

Cash and cash equivalents at the end of the period

 
32,314

 
120,842

 

 
153,156

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 

 

 

Cash and cash equivalents from continuing operations at the end of the period
$

 
$
32,314

 
$
120,842

 
$

 
$
153,156




CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2013
(In thousands)

 
IHS Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminating Entries
 
Consolidated
Net cash provided by operating activities
$

 
$
251,827

 
$
244,328

 
$

 
$
496,155

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures on property and equipment

 
(72,188
)
 
(18,546
)
 

 
(90,734
)
Acquisitions of businesses, net of cash acquired

 
(1,365,195
)
 
(121,839
)
 

 
(1,487,034
)
Change in other assets

 
1,347

 

 

 
1,347

Settlements of forward contracts

 

 
4,524

 

 
4,524

Advances provided to other subsidiaries

 

 
(16,116
)
 
16,116

 

Investment in subsidiaries

 
(1,404
)
 

 
1,404

 

Intercompany dividends received from subsidiaries

 
302,356

 

 
(302,356
)
 

Net cash used in investing activities

 
(1,135,084
)
 
(151,977
)
 
(284,836
)
 
(1,571,897
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from borrowings

 
1,235,261

 
139,739

 

 
1,375,000

Repayment of borrowings

 
(268,909
)
 

 

 
(268,909
)
Payment of debt issuance costs

 
(17,360
)
 

 

 
(17,360
)
Excess tax benefit from stock-based compensation

 
14,334

 

 

 
14,334

Proceeds from the exercise of employee stock options

 
549

 

 

 
549

Repurchases of common stock

 
(97,164
)
 

 

 
(97,164
)
Advances received from other subsidiaries

 
16,116

 

 
(16,116
)
 

Proceeds from issuance of intercompany equity

 

 
1,404

 
(1,404
)
 

Intercompany dividends paid to subsidiaries

 

 
(302,356
)
 
302,356

 

Net cash provided by (used in) financing activities

 
882,827

 
(161,213
)
 
284,836

 
1,006,450

Foreign exchange impact on cash balance

 

 
(17,349
)
 

 
(17,349
)
Net decrease in cash and cash equivalents

 
(430
)
 
(86,211
)
 

 
(86,641
)
Cash and cash equivalents at the beginning of the period

 
55,798

 
289,210

 

 
345,008

Cash and cash equivalents at the end of the period

 
55,368

 
202,999

 

 
258,367

Less: Cash and cash equivalents associated with discontinued operations at the end of the period

 

 

 

 

Cash and cash equivalents from continuing operations at the end of the period
$

 
$
55,368

 
$
202,999

 
$

 
$
258,367


v3.3.1.900
Business Combinations (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 11, 2016
Dec. 25, 2015
Nov. 30, 2013
Nov. 30, 2015
Nov. 30, 2014
Business Acquisition [Line Items]          
Equity consideration transferred, number of shares     1,334,477    
Equity consideration transferred, value     $ 131,500    
Revenue of acquiree since acquisition date     165,900    
Net income of acquiree since acquisition date     14,400    
Nonrecurring adjustment excluded from pro forma income     26,400    
Current assets     103,600 $ 18,414 $ 6,574
Property and equipment     35,070 1,890 345
Intangible assets     704,346 139,422 88,465
Goodwill     1,105,674 271,070 130,267
Other long-term assets     11,242 1,985 31
Total assets     1,959,932 432,781 225,682
Current liabilities     83,458 1,677 632
Deferred taxes     248,092 43,026  
Deferred revenue       18,052 14,322
Other long-term liabilities     9,862 118 333
Total liabilities     341,412 62,873 15,287
Purchase price     1,618,520 $ 369,908 $ 210,395
R.L. Polk [Member]          
Business Acquisition [Line Items]          
Cash consideration transferred, net of cash acquired     1,250,000    
Current assets     87,076    
Property and equipment     32,311    
Intangible assets     620,700    
Goodwill     935,450    
Other long-term assets     11,032    
Total assets     1,686,569    
Current liabilities     53,785    
Deferred taxes     243,842    
Other long-term liabilities     8,926    
Total liabilities     306,553    
Purchase price     1,380,016    
Series of Individually Immaterial Business Acquisitions [Member]          
Business Acquisition [Line Items]          
Current assets     16,524    
Property and equipment     2,759    
Intangible assets     83,646    
Goodwill     170,224    
Other long-term assets     210    
Total assets     273,363    
Current liabilities     29,673    
Deferred taxes     4,250    
Other long-term liabilities     936    
Total liabilities     34,859    
Purchase price     $ 238,504    
Subsequent Event [Member] | CARPROOF [Member]          
Business Acquisition [Line Items]          
Business Combination, Consideration Transferred   $ 460,000      
Subsequent Event [Member] | OPIS [Member]          
Business Acquisition [Line Items]          
Business Combination, Consideration Transferred $ 650,000        

v3.3.1.900
Significant Accounting Policies (Details)
12 Months Ended
Nov. 30, 2015
Minimum [Member] | Software and Software Development Costs [Member]  
Property, Plant and Equipment [Line Items]  
Property and Equipment, Useful Life 3 years
Minimum [Member] | Trademarks  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 1 year
Minimum [Member] | Information databases  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 3 years
Minimum [Member] | Buildings and improvements [Member]  
Property, Plant and Equipment [Line Items]  
Property and Equipment, Useful Life 7 years
Minimum [Member] | Machinery and equipment [Member]  
Property, Plant and Equipment [Line Items]  
Property and Equipment, Useful Life 3 years
Minimum [Member] | Customer relationships  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 4 years
Minimum [Member] | Developed computer software [Member]  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 5 years
Minimum [Member] | Other  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 1 year
Maximum [Member] | Software and Software Development Costs [Member]  
Property, Plant and Equipment [Line Items]  
Property and Equipment, Useful Life 7 years
Maximum [Member] | Trademarks  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 15 years
Maximum [Member] | Information databases  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 15 years
Maximum [Member] | Buildings and improvements [Member]  
Property, Plant and Equipment [Line Items]  
Property and Equipment, Useful Life 30 years
Maximum [Member] | Machinery and equipment [Member]  
Property, Plant and Equipment [Line Items]  
Property and Equipment, Useful Life 10 years
Maximum [Member] | Customer relationships  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 17 years
Maximum [Member] | Developed computer software [Member]  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 10 years
Maximum [Member] | Other  
Property, Plant and Equipment [Line Items]  
Finite-Lived Intangible Assets, Useful Life 8 years

v3.3.1.900
Significant Accounting Policies Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Marketing and Advertising Expense [Abstract]      
Gross deferred tax asset reclassification   $ 81,800  
Deferred income taxes $ 6,630 5,486  
Deferred Tax Assets, Net   76,300  
Advertising Expense $ 44,700 $ 35,200 $ 12,700

v3.3.1.900
Accounts Receivable (Details) - USD ($)
$ in Thousands
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Nov. 30, 2012
Accounts Receivable Additional Disclosures [Abstract]        
Accounts receivable $ 368,371 $ 433,586    
Less: Accounts receivable allowance (12,458) (12,212) $ (10,988) $ (4,346)
Accounts receivable, net $ 355,913 $ 421,374    

v3.3.1.900
Accounts Receivable Bad Debt Rollforward (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Balance at beginning of year $ 12,212 $ 10,988 $ 4,346
Provision for bad debts 13,444 12,487 9,496
Other additions 2,434 1,052 2,133
Write-offs and other deductions (15,632) (12,315) (4,987)
Balance at end of year $ 12,458 $ 12,212 $ 10,988

v3.3.1.900
Property and Equipment (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Property, Plant and Equipment [Abstract]      
Land, buildings and improvements $ 115,144 $ 114,618  
Capitalized software 374,833 308,179  
Computers and office equipment 121,919 127,202  
Property and equipment, gross 611,896 549,999  
Less: Accumulated depreciation (297,530) (248,580)  
Property and equipment, net 314,366 301,419  
Depreciation expense $ 85,000 $ 65,000 $ 46,000

v3.3.1.900
Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Acquired Intangible Assets [Line Items]      
Intangible asset amortization expense $ 130,100 $ 116,300 $ 93,000
Finite-Lived Intangible Assets, Gross 1,401,742 1,451,593  
Finite-Lived Intangible Assets, Accumulated Amortization (445,648) (421,585)  
Finite-Lived Intangible Assets, Net 956,094 1,030,008  
Intangible Assets, Gross (Excluding Goodwill) 1,460,339 1,512,694  
Intangible Assets, Net (Excluding Goodwill) 1,014,691 1,091,109  
Information databases      
Acquired Intangible Assets [Line Items]      
Finite-Lived Intangible Assets, Gross 595,219 607,655  
Finite-Lived Intangible Assets, Accumulated Amortization (233,729) (210,105)  
Finite-Lived Intangible Assets, Net 361,490 397,550  
Customer relationships      
Acquired Intangible Assets [Line Items]      
Finite-Lived Intangible Assets, Gross 540,467 511,680  
Finite-Lived Intangible Assets, Accumulated Amortization (135,352) (116,138)  
Finite-Lived Intangible Assets, Net 405,115 395,542  
Developed computer software      
Acquired Intangible Assets [Line Items]      
Finite-Lived Intangible Assets, Gross 84,918 138,940  
Finite-Lived Intangible Assets, Accumulated Amortization (35,988) (63,561)  
Finite-Lived Intangible Assets, Net 48,930 75,379  
Trademarks      
Acquired Intangible Assets [Line Items]      
Finite-Lived Intangible Assets, Gross 166,301 163,739  
Finite-Lived Intangible Assets, Accumulated Amortization (34,777) (22,937)  
Finite-Lived Intangible Assets, Net 131,524 140,802  
Indefinite-Lived Intangible Assets (Excluding Goodwill) 58,597 61,101  
Other      
Acquired Intangible Assets [Line Items]      
Finite-Lived Intangible Assets, Gross 14,837 29,579  
Finite-Lived Intangible Assets, Accumulated Amortization (5,802) (8,844)  
Finite-Lived Intangible Assets, Net $ 9,035 $ 20,735  

v3.3.1.900
Intangible Assets Schedule of Future Amortization (Details)
$ in Thousands
Nov. 30, 2015
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2015 $ 126,058
2016 114,155
2017 101,815
2018 89,539
2019 81,395
Thereafter $ 443,132

v3.3.1.900
Derivatives (Details)
£ in Thousands, SFr in Thousands, CAD in Thousands, $ in Thousands
12 Months Ended
Nov. 30, 2015
USD ($)
Nov. 30, 2014
USD ($)
Nov. 30, 2013
USD ($)
Nov. 30, 2015
GBP (£)
Nov. 30, 2015
CHF (SFr)
Nov. 30, 2015
CAD
Nov. 30, 2014
GBP (£)
Nov. 30, 2014
CHF (SFr)
Nov. 30, 2014
CAD
Nov. 30, 2012
USD ($)
Derivatives, Fair Value [Line Items]                    
Accumulated other comprehensive loss $ (191,213) $ (106,725)                
Foreign Currency Cash Flow Hedge Asset at Fair Value 0 987                
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value 51 1,005                
(Gain) Loss on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments 4,912 (6,293) $ (5,372)              
Derivative Asset, Fair Value, Gross Asset 51 1,992                
Interest Rate Cash Flow Hedge Liability at Fair Value 24,345 16,662                
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value 363 475                
Derivative Liability, Fair Value, Gross Liability 24,708 17,137                
Interest Rate Swap [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount $ 400,000                  
Derivative, Average Fixed Interest Rate 2.86%     2.86% 2.86% 2.86%        
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months $ 8,500                  
Amount of loss (gain) reclassified from AOCI into income: 1,879 950 935              
Foreign currency forward cash flow hedge [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount 0 11,000                
Amount of loss (gain) reclassified from AOCI into income: (1,305) 110 41              
Foreign currency forward contract to buy USD with CAD [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount 0 51,194                
Foreign currency forward contract to buy CAD with USD [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount | CAD           CAD 9,290     CAD 0  
Foreign currency forward contract to buy CAD with GBP [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount | CAD           CAD 0     CAD 50,000  
Foreign currency forward contract to buy USD with EUR [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount 8,508 12,517                
Foreign currency forward contract to buy CHF with USD [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount | SFr         SFr 19,000     SFr 9,000    
Foreign currency forward contract to buy GBP with EUR [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount | £       £ 3,495     £ 4,774      
Foreign currency forward contract to buy USD with GBP [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount 0 48,000                
Foreign currency forward contract to buy GBP with USD [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount | £       £ 7,231     £ 0      
Foreign currency forward contract to buy USD with JPY [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount 0 8,778                
Foreign currency forward contract to buy USD with KRW [Member]                    
Derivatives, Fair Value [Line Items]                    
Derivative, Notional Amount 0 10,000                
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]                    
Derivatives, Fair Value [Line Items]                    
Accumulated other comprehensive loss (14,557) (9,482) (2,199)             $ (2,225)
Amount of loss (gain) reclassified from AOCI into income: $ 574 $ 1,060 $ 976              

v3.3.1.900
Derivatives Unrecognized hedging losses in AOCI (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Hedging activities in AOCI [Roll Forward]      
Beginning balance $ (106,725)    
Amount of gain (loss) recognized in AOCI on derivative: (5,075) $ (7,283) $ 26
Ending balance (191,213) (106,725)  
Interest Rate Swap [Member]      
Hedging activities in AOCI [Roll Forward]      
Amount of gain (loss) recognized in AOCI on derivative: (6,528) (8,941) (797)
Amount of loss (gain) reclassified from AOCI into income: 1,879 950 935
Foreign currency forward cash flow hedge [Member]      
Hedging activities in AOCI [Roll Forward]      
Amount of gain (loss) recognized in AOCI on derivative: 879 598 (153)
Amount of loss (gain) reclassified from AOCI into income: (1,305) 110 41
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]      
Hedging activities in AOCI [Roll Forward]      
Beginning balance (9,482) (2,199) (2,225)
Amount of gain (loss) recognized in AOCI on derivative: (5,649) (8,343) (950)
Amount of loss (gain) reclassified from AOCI into income: 574 1,060 976
Ending balance $ (14,557) $ (9,482) $ (2,199)

v3.3.1.900
Debt (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Line of Credit Facility [Line Items]    
Debt Issuance Cost   $ 18,800
Gains (Losses) on Extinguishment of Debt   1,400
Line of Credit Facility, Amount Outstanding $ 710,000 385,000
Senior Notes 750,000 750,000
Debt and Capital Lease Obligations $ 2,131,202 1,842,355
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate 5.00%  
Notes Payable, Fair Value Disclosure $ 776,000  
Line of Credit Facility, Interest Rate at Period End 1.70%  
Long-term Debt $ 1,415,000  
Long-term Debt, Weighted Average Interest Rate 3.32%  
Letters of Credit Outstanding, Amount $ 1,800  
2016 35,000  
2017 70,000  
2018 70,000  
2019 490,000  
2020 0  
Thereafter 750,000  
Capital Lease Obligations 6,202 7,355
Long-term debt 2,095,183 1,806,098
Long-term Debt and Capital Lease Obligations, Current $ (36,019) (36,257)
Maximum [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage, Min 0.30%  
Minimum [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Interest Rate Description LIBOR plus a spread of 1.00 percent  
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage, Min 0.13%  
2013 term loan [Member]    
Line of Credit Facility [Line Items]    
Debt Instrument, Face Amount $ 700,000  
Long-term Debt $ 665,000 $ 700,000
2013 term loan [Member] | Maximum [Member]    
Line of Credit Facility [Line Items]    
Debt Instrument, Interest Rate Terms LIBOR plus 1.75%  
2014 revolving credit facility [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity $ 1,300,000  
Foreign Line of Credit [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity 500,000  
Letter of Credit [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity $ 50,000  

v3.3.1.900
Restructuring Charges (Details)
$ in Thousands
12 Months Ended
Nov. 30, 2015
USD ($)
positions
Nov. 30, 2014
USD ($)
positions
Nov. 30, 2013
USD ($)
positions
Restructuring Cost and Reserve [Line Items]      
Restructuring Reserve, Current $ 11,100    
Restructuring and Related Cost, Incurred Cost 40,955 $ 10,102 $ 13,152
Restructuring Reserve, Accrual Adjustment (1,597) (1,327) (1,423)
Restructuring charges 39,359 8,775 11,729
Restructuring Reserve [Roll Forward]      
Balance 3,124 2,695 4,725
Less: Amount paid (27,636) (8,346) (13,759)
Balance $ 14,846 $ 3,124 $ 2,695
Restructuring and Related Cost, Number of Positions Eliminated | positions 460 168 245
Employee Severance [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost $ 32,209 $ 8,437 $ 12,177
Restructuring Reserve, Accrual Adjustment (1,597) (1,586) (1,498)
Restructuring Reserve [Roll Forward]      
Balance 2,967 2,569 3,163
Less: Amount paid (25,059) (6,453) (11,273)
Balance 8,520 2,967 2,569
Contract Termination [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 7,365 396 525
Restructuring Reserve, Accrual Adjustment 0 259 75
Restructuring Reserve [Roll Forward]      
Balance 17 103 1,503
Less: Amount paid (1,164) (741) (2,000)
Balance 6,218 17 103
Other Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring and Related Cost, Incurred Cost 1,381 1,269 450
Restructuring Reserve, Accrual Adjustment 0 0 0
Restructuring Reserve [Roll Forward]      
Balance 140 23 59
Less: Amount paid (1,413) (1,152) (486)
Balance 108 140 23
Resources Segment [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 22,600 3,500 5,800
Restructuring Reserve [Roll Forward]      
Balance 9,100    
Transportation Segment [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 7,500 2,500 1,600
Restructuring Reserve [Roll Forward]      
Balance 3,500    
CMS Segment [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 9,300 $ 2,800 $ 4,300

v3.3.1.900
Acquisition Related Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Acquisition Related Cost Reserve [Roll Forward]      
Balance $ 1,118 $ 6,131 $ 668
Add: Costs incurred 1,526 2,114 23,606
Revision to prior estimates (54) (213) (178)
Less: Amount paid (2,150) (6,914) (17,965)
Balance 440 1,118 6,131
Acquisition-related costs 1,472 1,901 23,428
Resources Segment [Member]      
Acquisition Related Cost Reserve [Roll Forward]      
Acquisition-related costs 900 800 1,100
Transportation Segment [Member]      
Acquisition Related Cost Reserve [Roll Forward]      
Acquisition-related costs   600 18,700
CMS Segment [Member]      
Acquisition Related Cost Reserve [Roll Forward]      
Acquisition-related costs   500 2,100
Shared Services [Member]      
Acquisition Related Cost Reserve [Roll Forward]      
Acquisition-related costs 600   1,500
Acquisition Related Employee Severance [Member]      
Acquisition Related Cost Reserve [Roll Forward]      
Balance 586 5,859 584
Add: Costs incurred 0 897 7,828
Revision to prior estimates (30) (230) (114)
Less: Amount paid (556) (5,940) (2,439)
Balance 0 586 5,859
Acquisition Related Contract Termination [Member]      
Acquisition Related Cost Reserve [Roll Forward]      
Balance 115 201 84
Add: Costs incurred 166 515 1,291
Revision to prior estimates 11 17 (44)
Less: Amount paid (157) (618) (1,130)
Balance 135 115 201
Other Acquisition Related Costs [Member]      
Acquisition Related Cost Reserve [Roll Forward]      
Balance 417 71 0
Add: Costs incurred 1,360 702 14,487
Revision to prior estimates (35) 0 (20)
Less: Amount paid (1,437) (356) (14,396)
Balance $ 305 $ 417 $ 71

v3.3.1.900
Discontinued Operations (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Current assets $ 19,505    
Property and equipment, net 16,391    
Intangible assets, net 58,298    
Goodwill 99,183    
Assets held for sale 193,377 $ 0  
Current liabilities 1,255    
Deferred revenue 19,576    
Deferred income taxes 11,266    
Liabilities held for sale 32,097 0  
Revenue from discontinued operations 129,956 151,007 $ 148,629
Income from discontinued operations before income taxes 15,887 26,109 24,067
Tax benefit (expense) 35,368 (9,522) (8,850)
Income from discontinued operations, net $ 51,255 $ 16,587 $ 15,217

v3.3.1.900
Discontinued Operations Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]    
GlobalSpec impairment loss $ 3,400  
Tax benefit from outside basis difference $ 42,440 $ 0

v3.3.1.900
Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Tax Credit Carryforward [Line Items]      
U.S. $ 26,096 $ (2,271) $ (57,257)
Foreign 211,695 225,359 187,920
Income from continuing operations before income taxes 237,791 223,088 130,663
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]      
U.S. 3,574 14,252 10,021
Foreign 41,420 34,261 35,214
State (3,654) 6,898 3,224
Total current 41,340 55,411 48,459
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]      
U.S. 8,665 (8,688) (24,313)
Foreign (5,410) 1,234 (7,336)
State 4,258 (2,831) (2,663)
Total deferred 7,513 (10,285) (34,312)
Loss carryforwards gross 340,000    
Statutory U.S. federal income tax 83,227 78,081 45,732
State income tax, net of federal benefit (1,157) 2,025 (752)
Foreign rate differential (47,738) (68,236) (62,190)
Tax rate change (33) 366 5,286
Valuation allowance 12,407 25,503 29,288
Change in reserves 106 28 (1,387)
Other 2,041 7,359 (1,830)
Provision for income taxes $ 48,853 $ 45,126 $ 14,147
Effective Income Tax Rate, Continuing Operations 20.50% 20.20% 10.80%
Undistributed earnings of foreign subsidiaries $ 747,500    
Deferred tax assets:      
Accruals and reserves 20,682 $ 21,299  
Deferred revenue 72 1,654  
Pension and postretirement benefits 10,220 12,708  
Tax credits 19,529 9,787  
Deferred stock-based compensation 45,695 52,052  
Tax benefit from outside basis difference 42,440 0  
Loss carryforwards 107,304 85,706  
Other 16,809 10,657  
Gross deferred tax assets 262,751 193,863  
Valuation allowance (78,830) (66,232)  
Realizable deferred tax assets 183,921 127,631  
Deferred tax liabilities:      
Fixed assets (64,398) (18,107)  
Intangibles (372,417) (375,163)  
Gross deferred tax liabilities (436,815) (393,270)  
Net deferred tax liability (252,894) (265,639)  
Associated with interest 400    
Balance 2,100    
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit 500    
Unrecognized Tax Benefits, Period Increase (Decrease) $ 12,600    
Open Tax Year 2011    
Domestic Tax Authority [Member]      
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]      
Operating Loss Carryforwards $ 72,200    
Deferred tax liabilities:      
Operating Loss Carryforwards, Expiration Dates Nov. 30, 2018    
Foreign Tax Authority [Member]      
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]      
Operating Loss Carryforwards $ 267,800    
Unrecognize tax benefit [Member]      
Deferred tax liabilities:      
Balance 1,659    
Current year tax positions 700    
Prior year tax positions 67    
Associated with interest 0    
Lapse of statute of limitations (165)    
Prior year tax positions (554)    
Balance 1,707 1,659  
Interest and penalties [Member]      
Deferred tax liabilities:      
Balance 553    
Current year tax positions 0    
Prior year tax positions 0    
Associated with interest 98    
Lapse of statute of limitations (61)    
Prior year tax positions (183)    
Balance 407 $ 553  
Foreign Tax Credit [Member]      
Deferred tax liabilities:      
Tax Credit Carryforward, Amount $ 16,300    
Foreign Tax Credit [Member] | Maximum [Member]      
Deferred tax liabilities:      
Tax Credit Carryforward, Expiration Dates Nov. 30, 2025    
Foreign Tax Credit [Member] | Minimum [Member]      
Deferred tax liabilities:      
Tax Credit Carryforward, Expiration Dates Dec. 01, 2023    
Research Tax Credit Carryforward [Member]      
Deferred tax liabilities:      
Tax Credit Carryforward, Amount $ 4,400    
Research Tax Credit Carryforward [Member] | Maximum [Member]      
Deferred tax liabilities:      
Tax Credit Carryforward, Expiration Dates Nov. 30, 2034    
Research Tax Credit Carryforward [Member] | Minimum [Member]      
Deferred tax liabilities:      
Tax Credit Carryforward, Expiration Dates Dec. 01, 2032    

v3.3.1.900
Pensions and Post-retirement Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Benefit Obligation $ (201,890) $ (208,550) $ (184,117)
Service costs incurred 1,981 8,356 10,420
Interest costs on projected benefit obligation 8,300 8,442 7,017
Expected return on plan assets (8,699) (8,354) (7,550)
Amortization of prior service credit 0 (791) (1,350)
Amortization of transitional obligation 0 40 40
Fourth quarter expense recognition of actuarial loss in excess of corridor 2,492 1,020 2,620
Defined Benefit Plan, Actuarial Net (Gains) Losses (4,709) 21,462  
Defined Benefit Plan, Benefits Paid (10,313) (9,133)  
Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation 0 495  
Defined Benefit Plan, Effect of Settlements and Curtailments on Accumulated Benefit Obligation 0 (2,842)  
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets (1,898) (2,329)  
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments 0 (2,806) 0
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Benefit Obligation (1,919) (2,347)  
Net periodic pension expense (income) 4,074 5,907 11,197
2016 12,012    
2017 12,078    
2018 11,563    
2019 11,634    
2020 11,312    
2021-2025 56,040    
Defined Benefit Plan, Fair Value of Plan Assets 183,836 189,056 165,741
Defined Benefit Plan, Actual Return on Plan Assets 1,646 22,293  
Defined Benefit Plan, Contributions by Employer 5,345 12,484  
Defined Benefit Plan, Funded Status of Plan (18,054) (19,494)  
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax 19,829 20,160  
Fair Value, Inputs, Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Fair Value of Plan Assets 183,836 189,056  
Interest-bearing Deposits [Member] | Fair Value, Inputs, Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Fair Value of Plan Assets 6,791 3,940  
Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Fair Value of Plan Assets 55,051 58,053  
Fixed Income Funds [Member] | Fair Value, Inputs, Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Fair Value of Plan Assets $ 121,994 $ 127,063  
United States Pension Plans of US Entity, Defined Benefit [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate 4.50% 4.20%  
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets 5.00% 4.70%  
United States Pension Plans of US Entity, Defined Benefit [Member] | Equity Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Actual Plan Asset Allocations 24.00%    
United States Pension Plans of US Entity, Defined Benefit [Member] | Fixed Income Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Actual Plan Asset Allocations 73.00%    
Foreign Pension Plans, Defined Benefit [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate 3.60% 3.80%  
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets 4.60% 4.90%  
Foreign Pension Plans, Defined Benefit [Member] | Equity Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Actual Plan Asset Allocations 45.00%    
Foreign Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Actual Plan Asset Allocations 48.00%    
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate 4.50% 4.20%  
Defined Benefit Plan, Benefit Obligation $ (8,691) $ (9,645) (8,815)
Service costs incurred 16 16 23
Interest costs on projected benefit obligation 388 412 399
Fourth quarter expense recognition of actuarial loss in excess of corridor 0 439 0
Defined Benefit Plan, Actuarial Net (Gains) Losses (847) 1,407  
Defined Benefit Plan, Benefits Paid (511) (1,005)  
Net periodic pension expense (income) 404 867 $ 422
2016 734    
2017 730    
2018 726    
2019 720    
2020 690    
2021-2025 3,084    
Defined Benefit Plan, Funded Status of Plan (8,691) (9,645)  
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax $ (117) $ (964)  
Expected return on plan assets [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Change Due to Subsequent Interim Measurement   0.052  
Discount rate [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Change Due to Subsequent Interim Measurement   0.047  

v3.3.1.900
Stock-based Compensation (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense $ 128,916 $ 159,257 $ 155,718
Income tax benefits 37,330 47,209 51,357
Cost of Revenue [Member]      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense 6,892 8,520 8,271
Selling general and administrative [Member]      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense $ 122,024 $ 150,737 $ 147,447

v3.3.1.900
Pensions and Postretirement Benefits Textuals (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Defined Benefit Plan, Contributions by Employer $ 5,345 $ 12,484
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year $ 3,000  

v3.3.1.900
Stock-based Compensation Nonvested stock rollforward (Details)
shares in Thousands
12 Months Ended
Nov. 30, 2015
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Balance, shares | shares 2,518
Balance, grant date fair value | $ / shares $ 102.24
Granted shares | shares 1,361
Granted, grant date fair value | $ / shares $ 116.14
Vested shares | shares (1,247)
Vested, grant date fair value | $ / shares $ 102.88
Forfeited shares | shares (191)
Forfeited, grant date fair value | $ / shares $ 114.00
Balance, shares | shares 2,441
Balance, grant date fair value | $ / shares $ 108.74

v3.3.1.900
Pensions and Postretirement Benefits Defined Contribution Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]      
Defined Contribution Plan, Cost Recognized $ 18.2 $ 13.7 $ 11.9

v3.3.1.900
Stock-based Compensation Textuals (Details) - USD ($)
shares in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized 14,750    
Shares available for grant 1,500    
Unrecognized compensation cost $ 120,700,000    
Unrecognized compensation cost, period for recognition 1 year 4 months 24 days    
Capitalized stock-based compensation amount $ 0 $ 0 $ 0
Fair value of awards vested $ 144,900,000    
Options outstanding 0    
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
RSU vesting period 1 year    
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
RSU vesting period 3 years    

v3.3.1.900
Pensions and Postretirement Benefits Investment Allocation (Details)
Nov. 30, 2015
other plan funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Defined Benefit Plan, Actual Plan Asset Allocations 3.00%
other plan funds [Member] | Foreign Pension Plans, Defined Benefit [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Defined Benefit Plan, Actual Plan Asset Allocations 7.00%
Equity Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Defined Benefit Plan, Actual Plan Asset Allocations 24.00%
Equity Funds [Member] | Foreign Pension Plans, Defined Benefit [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Defined Benefit Plan, Actual Plan Asset Allocations 45.00%
Fixed Income Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Defined Benefit Plan, Actual Plan Asset Allocations 73.00%
Fixed Income Funds [Member] | Foreign Pension Plans, Defined Benefit [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Defined Benefit Plan, Actual Plan Asset Allocations 48.00%

v3.3.1.900
Pensions and Postretirement Benefits Target and Actual Allocations (Details)
12 Months Ended
Nov. 30, 2015
Fixed Income Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member]  
Defined Benefit Plan, Target Allocation Percentage .75
Defined Benefit Plan, Actual Plan Asset Allocations 73.00%
Fixed Income Funds [Member] | Foreign Pension Plans, Defined Benefit [Member]  
Defined Benefit Plan, Target Allocation Percentage 0.45
Defined Benefit Plan, Actual Plan Asset Allocations 48.00%
Equity Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member]  
Defined Benefit Plan, Target Allocation Percentage .25
Defined Benefit Plan, Actual Plan Asset Allocations 24.00%
Equity Funds [Member] | Foreign Pension Plans, Defined Benefit [Member]  
Defined Benefit Plan, Target Allocation Percentage 0.55
Defined Benefit Plan, Actual Plan Asset Allocations 45.00%
other plan funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member]  
Defined Benefit Plan, Target Allocation Percentage 0
Defined Benefit Plan, Actual Plan Asset Allocations 3.00%
other plan funds [Member] | Foreign Pension Plans, Defined Benefit [Member]  
Defined Benefit Plan, Target Allocation Percentage 0
Defined Benefit Plan, Actual Plan Asset Allocations 7.00%

v3.3.1.900
Commitments and Contingencies (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Commitments and Contingencies Disclosure [Abstract]      
2016 $ 58,222    
2017 54,069    
2018 44,484    
2019 32,374    
2020 26,620    
Thereafter 76,005    
Total 291,774    
Operating Leases, Rent Expense 60,900 $ 58,900 $ 46,300
Letters of Credit Outstanding, Amount $ 5,200 $ 5,600  

v3.3.1.900
Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]      
Shares used in basic EPS calculation 68,450,000 68,163,000 66,434,000
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]      
Restricted stock units 839,000 957,000 1,006,000
Stock options and other stock-based awards   0 2,000
Shares used in diluted EPS calculation 69,289,000 69,120,000 67,442,000
Repurchases of common stock, value $ 200,356   $ 46,189
Stock Compensation Plan [Member]      
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]      
Repurchases of common stock, shares 436,919    
Repurchases of common stock, value $ 50,800    
Treasury Stock Repurchase, price per share $ 116.22    
Stock Repurchase Program 2011 [Member]      
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]      
Repurchases of common stock, shares 0 0 0
Stock repurchase program January 2015 [Member]      
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]      
Repurchases of common stock, shares 816,205    
Treasury Stock Repurchase, price per share $ 122.52    
Stock Repurchase Program, Authorized Amount $ 100,000    
Stock repurchase program June 2015 [Member]      
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]      
Repurchases of common stock, shares 841,842    
Repurchases of common stock, value $ 100,300    
Treasury Stock Repurchase, price per share $ 119.18    
Stock Repurchase Program, Authorized Amount $ 500,000    

v3.3.1.900
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance $ (106,725)    
Foreign currency translation adjustment (79,873) $ (37,069) $ (11,191)
Amount of gain (loss) recognized in AOCI on derivative: (5,075) (7,283) 26
Ending balance (191,213) (106,725)  
Accumulated Translation Adjustment [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (83,634) (46,565) (35,374)
Foreign currency translation adjustment (79,873) (37,069) (11,191)
Reclassifications from AOCI to income, foreign currency translation 0 0 0
Ending balance (163,507) (83,634) (46,565)
Accumulated Defined Benefit Plans Adjustment [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (13,609) (8,197) (9,094)
Other comprehensive income (loss) before reclassifications, net pension and OPEB liability (1,170) (4,144) 85
Reclassifications from AOCI to income, net pension and OPEB liability 1,630 (1,268) 812
Ending balance (13,149) (13,609) (8,197)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (9,482) (2,199) (2,225)
Amount of gain (loss) recognized in AOCI on derivative: (5,649) (8,343) (950)
Amount of loss (gain) reclassified from AOCI into income: 574 1,060 976
Ending balance (14,557) (9,482) (2,199)
Accumulated Other Comprehensive Loss [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning balance (106,725) (56,961) (46,693)
Other comprehensive income (loss) before reclassifications (86,692) (49,556) (12,056)
Reclassifications from AOCI to income 2,204 (208) 1,788
Ending balance $ (191,213) $ (106,725) $ (56,961)

v3.3.1.900
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Supplemental Cash Flow Information [Abstract]      
Cash and cash equivalents $ 291,580 $ 153,156 $ 258,367
Interest paid 65,429 45,396 39,023
Income tax payments (refunds), net $ 11,489 $ 52,030 $ (9,458)

v3.3.1.900
Segment Information (Details) - USD ($)
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Segment Reporting Information [Line Items]                      
Revenue $ 555,706,000 $ 557,813,000 $ 556,940,000 $ 513,876,000 $ 541,132,000 $ 518,680,000 $ 529,871,000 $ 490,104,000 $ 2,184,335,000 $ 2,079,787,000 $ 1,692,003,000
Operating income                 307,843,000 277,484,000 173,974,000
Depreciation and amortization                 215,080,000 181,243,000 138,975,000
Assets 5,601,081,000       5,272,136,000       5,601,081,000 5,272,136,000 5,359,613,000
Resources Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenue                 884,596,000 927,211,000 865,126,000
Operating income                 248,280,000 286,393,000 284,475,000
Depreciation and amortization                 85,924,000 77,576,000 62,256,000
Assets 2,247,747,000       2,249,604,000       2,247,747,000 2,249,604,000 2,352,730,000
Transportation Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenue                 758,404,000 662,547,000 353,787,000
Operating income                 193,668,000 160,361,000 67,255,000
Depreciation and amortization                 80,696,000 70,772,000 37,644,000
Assets 2,319,097,000       2,237,669,000       2,319,097,000 2,237,669,000 2,179,261,000
CMS Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenue                 541,335,000 490,029,000 473,090,000
Operating income                 49,319,000 52,225,000 32,899,000
Depreciation and amortization                 48,135,000 32,554,000 38,952,000
Assets 840,860,000       784,863,000       840,860,000 784,863,000 827,622,000
Unallocated Amount to Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenue 0               0 0 0
Operating income                 (183,424,000) (221,495,000) (210,655,000)
Depreciation and amortization                 325,000 341,000 123,000
Assets $ 193,377,000       $ 0       $ 193,377,000 $ 0 $ 0

v3.3.1.900
Segment Information Revenue by Transaction Type and Product Category (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Revenue from External Customer [Line Items]                      
Total revenue $ 555,706 $ 557,813 $ 556,940 $ 513,876 $ 541,132 $ 518,680 $ 529,871 $ 490,104 $ 2,184,335 $ 2,079,787 $ 1,692,003
Subscription Revenue [Member]                      
Revenue from External Customer [Line Items]                      
Total revenue                 1,768,541 1,643,844 1,326,630
Non-subscription Revenue [Member]                      
Revenue from External Customer [Line Items]                      
Total revenue                 415,794 435,943 365,373
Americas [Member]                      
Revenue from External Customer [Line Items]                      
Total revenue                 1,459,743 1,353,616 1,041,425
EMEA [Member]                      
Revenue from External Customer [Line Items]                      
Total revenue                 508,066 518,820 458,531
APAC [Member]                      
Revenue from External Customer [Line Items]                      
Total revenue                 $ 216,526 $ 207,351 $ 192,047

v3.3.1.900
Segment Information Textuals (Details)
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Revenue, Major Customer [Line Items]      
Segment Reporting, Disclosure of Major Customers 0 0 0

v3.3.1.900
Segment Information Revenue and Long-Lived Assets by Geography (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue $ 555,706 $ 557,813 $ 556,940 $ 513,876 $ 541,132 $ 518,680 $ 529,871 $ 490,104 $ 2,184,335 $ 2,079,787 $ 1,692,003
Long-Lived Assets 314,366       301,419       314,366 301,419 245,566
United States                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 1,327,390 1,176,813 919,151
Long-Lived Assets 272,919       254,008       272,919 254,008 196,987
Rest of world [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 856,945 902,974 772,852
Long-Lived Assets $ 41,447       $ 47,411       $ 41,447 $ 47,411 $ 48,579

v3.3.1.900
Segment Information Goodwill Activity (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Beginning balance $ 3,157,324 $ 3,065,181
Goodwill, Acquired During Period 271,070 130,267
Goodwill, Allocation Adjustment 6,119 (5,491)
Goodwill, Transfers (102,566)  
Goodwill, Translation Adjustments (44,488) (32,633)
Ending balance 3,287,459 3,157,324
Resources Segment [Member]    
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Beginning balance 1,552,336 1,558,103
Goodwill, Acquired During Period 35,027 14,474
Goodwill, Allocation Adjustment 2,427 (4,197)
Goodwill, Transfers 0  
Goodwill, Translation Adjustments (21,227) (16,044)
Ending balance 1,568,563 1,552,336
Transportation Segment [Member]    
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Beginning balance 1,299,070 1,237,170
Goodwill, Acquired During Period 81,520 74,320
Goodwill, Allocation Adjustment (825) 1,007
Goodwill, Transfers 0  
Goodwill, Translation Adjustments (18,423) (13,427)
Ending balance 1,361,342 1,299,070
CMS Segment [Member]    
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Beginning balance 305,918 269,908
Goodwill, Acquired During Period 154,523 41,473
Goodwill, Allocation Adjustment 4,517 (2,301)
Goodwill, Transfers (102,566)  
Goodwill, Translation Adjustments (4,838) (3,162)
Ending balance $ 357,554 $ 305,918

v3.3.1.900
Quarterly Results of Operations (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Selected Quarterly Financial Information [Abstract]                      
Revenue $ 555,706 $ 557,813 $ 556,940 $ 513,876 $ 541,132 $ 518,680 $ 529,871 $ 490,104 $ 2,184,335 $ 2,079,787 $ 1,692,003
Net income $ 90,477 $ 59,244 $ 50,952 $ 39,520 $ 60,118 $ 46,517 $ 55,492 $ 32,422 $ 240,193 $ 194,549 $ 131,733
Earnings per share:                      
Earnings Per Share, Basic $ 1.33 $ 0.87 $ 0.74 $ 0.58 $ 0.88 $ 0.68 $ 0.81 $ 0.48 $ 3.51 $ 2.85 $ 1.98
Earnings Per Share, Diluted $ 1.32 $ 0.86 $ 0.74 $ 0.57 $ 0.87 $ 0.68 $ 0.81 $ 0.47 $ 3.47 $ 2.81 $ 1.95
Income from continuing operations $ 47,354 $ 56,961 $ 46,673 $ 37,950 $ 53,990 $ 41,909 $ 51,084 $ 30,979 $ 188,938 $ 177,962 $ 116,516
Income from discontinued operations, net $ 43,123 $ 2,283 $ 4,279 $ 1,570 $ 6,128 $ 4,608 $ 4,408 $ 1,443 $ 51,255 $ 16,587 $ 15,217
Income from continuing operations $ 0.70 $ 0.83 $ 0.68 $ 0.55 $ 0.79 $ 0.61 $ 0.75 $ 0.46 $ 2.76 $ 2.61 $ 1.75
Income from discontinued operations, net 0.63 0.03 0.06 0.02 0.09 0.07 0.06 0.02 0.75 0.24 0.23
Income from continuing operations 0.69 0.83 0.68 0.55 0.78 0.61 0.74 0.45 2.73 2.57 1.73
Income from discontinued operations, net $ 0.63 $ 0.03 $ 0.06 $ 0.02 $ 0.09 $ 0.07 $ 0.06 $ 0.02 $ 0.74 $ 0.24 $ 0.23

v3.3.1.900
Supplemental Guarantor Information Condensed Consolidating Balance Sheet (Details) - USD ($)
$ in Thousands
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Nov. 30, 2012
Current assets:        
Cash and cash equivalents $ 291,580 $ 153,156 $ 258,367  
Accounts receivable, net 355,913 421,374    
Income tax receivable 4,585 2,283    
Deferred subscription costs 52,752 51,021    
Intercompany receivables 0 0    
Assets held for sale 193,377 0    
Other 57,135 60,973    
Total current assets 955,342 688,807    
Non-current assets:        
Property and equipment, net 314,366 301,419    
Intangible assets, net 1,014,691 1,091,109    
Goodwill 3,287,459 3,157,324 3,065,181  
Investment in subsidiaries 0 0    
Due from Affiliate, Noncurrent 0 0    
Other 22,593 27,991    
Total non-current assets 4,645,739 4,583,329    
Deferred income taxes 6,630 5,486    
Total assets 5,601,081 5,272,136 5,359,613  
Current liabilities:        
Short-term debt 36,019 36,257    
Accounts payable 59,180 52,245    
Accrued compensation 105,477 101,875    
Accrued royalties 33,306 37,346    
Other accrued expenses 118,217 131,147    
Income tax payable 23,339 0    
Deferred revenue 552,498 596,187    
Intercompany payables 0 0    
Liabilities held for sale 32,097 0    
Total current liabilities 960,133 955,057    
Long-term debt 2,095,183 1,806,098    
Accrued pension and postretirement liability 26,745 29,139    
Deferred income taxes 259,524 271,125    
Due to Affiliate, Noncurrent 0 0    
Other liabilities 58,619 51,171    
Total stockholders’ equity 2,200,877 2,159,546 1,906,963 $ 1,584,358
Total liabilities and stockholders’ equity 5,601,081 5,272,136    
Eliminating Entries [Member]        
Current assets:        
Cash and cash equivalents 0 0 0  
Accounts receivable, net 0 0    
Income tax receivable (41,099) (32,101)    
Deferred subscription costs (29,540) (30,299)    
Intercompany receivables (684,094) (1,179,010)    
Assets held for sale 0      
Other 0 0    
Total current assets (754,733) (1,241,410)    
Non-current assets:        
Property and equipment, net 0 0    
Intangible assets, net 0 0    
Goodwill 0 0    
Investment in subsidiaries (5,462,057) (3,998,154)    
Due from Affiliate, Noncurrent (724,778) (740,879)    
Other 0 0    
Total non-current assets (6,245,306) (4,798,627)    
Deferred income taxes (58,471) (59,594)    
Total assets (7,000,039) (6,040,037)    
Current liabilities:        
Short-term debt 0 0    
Accounts payable 0 0    
Accrued compensation 0 0    
Accrued royalties 0 0    
Other accrued expenses 0 0    
Income tax payable (41,100) (32,101)    
Deferred revenue (29,540) (30,299)    
Intercompany payables (695,359) (1,179,010)    
Liabilities held for sale 0      
Total current liabilities (765,999) (1,241,410)    
Long-term debt 0 0    
Accrued pension and postretirement liability 0 0    
Deferred income taxes (47,205) (59,594)    
Due to Affiliate, Noncurrent (724,778) (740,879)    
Other liabilities 0 0    
Total stockholders’ equity (5,462,057) (3,998,154)    
Total liabilities and stockholders’ equity (7,000,039) (6,040,037)    
IHS Inc. [Member]        
Current assets:        
Cash and cash equivalents 0 0 0  
Accounts receivable, net 0 0    
Income tax receivable 42,663 18,000    
Deferred subscription costs 0 0    
Intercompany receivables 465,915 712,976    
Assets held for sale 0      
Other 1,681 1,669    
Total current assets 510,259 732,645    
Non-current assets:        
Property and equipment, net 0 0    
Intangible assets, net 0 0    
Goodwill 0 0    
Investment in subsidiaries 2,416,961 2,249,359    
Due from Affiliate, Noncurrent 0 0    
Other 10,181 11,498    
Total non-current assets 2,485,613 2,320,451    
Deferred income taxes 58,471 59,594    
Total assets 2,995,872 3,053,096    
Current liabilities:        
Short-term debt 0 0    
Accounts payable 5 93    
Accrued compensation 0 0    
Accrued royalties 0 0    
Other accrued expenses 3,453 3,830    
Income tax payable 0 0    
Deferred revenue 0 0    
Intercompany payables 22,721 119,268    
Liabilities held for sale 0      
Total current liabilities 26,179 123,191    
Long-term debt 750,000 750,000    
Accrued pension and postretirement liability 18,260 19,603    
Deferred income taxes 0 0    
Due to Affiliate, Noncurrent 0 0    
Other liabilities 556 756    
Total stockholders’ equity 2,200,877 2,159,546    
Total liabilities and stockholders’ equity 2,995,872 3,053,096    
Guarantor Subsidiaries [Member]        
Current assets:        
Cash and cash equivalents 21,048 32,314 55,368  
Accounts receivable, net 192,889 212,711    
Income tax receivable 0 16,384    
Deferred subscription costs 52,210 53,272    
Intercompany receivables 38,381 174,161    
Assets held for sale 99,743      
Other 38,220 41,481    
Total current assets 442,491 530,323    
Non-current assets:        
Property and equipment, net 267,422 246,498    
Intangible assets, net 768,029 826,152    
Goodwill 2,274,422 2,258,393    
Investment in subsidiaries 3,045,096 1,748,795    
Due from Affiliate, Noncurrent 0 0    
Other 11,130 13,701    
Total non-current assets 6,366,099 5,093,539    
Deferred income taxes 0 0    
Total assets 6,808,590 5,623,862    
Current liabilities:        
Short-term debt 36,019 35,974    
Accounts payable 39,689 31,083    
Accrued compensation 69,889 57,651    
Accrued royalties 25,985 24,590    
Other accrued expenses 74,055 91,131    
Income tax payable 64,077 0    
Deferred revenue 321,766 317,144    
Intercompany payables 549,783 1,056,664    
Liabilities held for sale 12,402      
Total current liabilities 1,193,665 1,614,237    
Long-term debt 1,345,183 1,056,098    
Accrued pension and postretirement liability 8,188 8,869    
Deferred income taxes 259,764 283,211    
Due to Affiliate, Noncurrent 724,778 740,879    
Other liabilities 40,755 30,887    
Total stockholders’ equity 3,236,257 1,889,681    
Total liabilities and stockholders’ equity 6,808,590 5,623,862    
Non-Guarantor Subsidiaries [Member]        
Current assets:        
Cash and cash equivalents 270,532 120,842 $ 202,999  
Accounts receivable, net 163,024 208,663    
Income tax receivable 3,021 0    
Deferred subscription costs 30,082 28,048    
Intercompany receivables 179,798 291,873    
Assets held for sale 93,634      
Other 17,234 17,823    
Total current assets 757,325 667,249    
Non-current assets:        
Property and equipment, net 46,944 54,921    
Intangible assets, net 246,662 264,957    
Goodwill 1,013,037 898,931    
Investment in subsidiaries 0 0    
Due from Affiliate, Noncurrent 724,778 740,879    
Other 1,282 2,792    
Total non-current assets 2,039,333 1,967,966    
Deferred income taxes 6,630 5,486    
Total assets 2,796,658 2,635,215    
Current liabilities:        
Short-term debt 0 283    
Accounts payable 19,486 21,069    
Accrued compensation 35,588 44,224    
Accrued royalties 7,321 12,756    
Other accrued expenses 40,709 36,186    
Income tax payable 362 32,101    
Deferred revenue 260,272 309,342    
Intercompany payables 122,855 3,078    
Liabilities held for sale 19,695      
Total current liabilities 506,288 459,039    
Long-term debt 0 0    
Accrued pension and postretirement liability 297 667    
Deferred income taxes 46,965 47,508    
Due to Affiliate, Noncurrent 0 0    
Other liabilities 17,308 19,528    
Total stockholders’ equity 2,225,800 2,108,473    
Total liabilities and stockholders’ equity $ 2,796,658 $ 2,635,215    

v3.3.1.900
Supplemental Guarantor Information Condensed Consolidating Statement of Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Condensed Financial Statements, Captions [Line Items]                      
Revenue $ 555,706 $ 557,813 $ 556,940 $ 513,876 $ 541,132 $ 518,680 $ 529,871 $ 490,104 $ 2,184,335 $ 2,079,787 $ 1,692,003
Operating expenses:                      
Cost of revenue                 819,173 815,153 689,976
Selling, general and administrative                 795,354 789,752 642,074
Depreciation and amortization                 215,080 181,243 138,975
Restructuring charges                 39,359 8,775 11,729
Acquisition-related costs                 1,472 1,901 23,428
Net periodic pension and postretirement expense                 4,478 6,774 11,619
Other Operating Income                 1,576 (1,295) 228
Operating Expenses                 1,876,492 1,802,303 1,518,029
Operating income                 307,843 277,484 173,974
Interest income                 933 988 1,271
Interest expense                 (70,985) (55,384) (44,582)
Nonoperating Income (Expense)                 (70,052) (54,396) (43,311)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest                 237,791 223,088 130,663
Provision for income taxes                 (48,853) (45,126) (14,147)
Income from continuing operations 47,354 56,961 46,673 37,950 53,990 41,909 51,084 30,979 188,938 177,962 116,516
Income from discontinued operations, net 43,123 2,283 4,279 1,570 6,128 4,608 4,408 1,443 51,255 16,587 15,217
Equity in net income of subsidiaries                 0 0 0
Net income $ 90,477 $ 59,244 $ 50,952 $ 39,520 $ 60,118 $ 46,517 $ 55,492 $ 32,422 240,193 194,549 131,733
Eliminating Entries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Revenue                 (66,192) (48,106) (61,161)
Operating expenses:                      
Cost of revenue                 (66,192) (48,106) (61,161)
Selling, general and administrative                 0 0 0
Depreciation and amortization                 0 0 0
Restructuring charges                 0 0 0
Acquisition-related costs                 0 0 0
Net periodic pension and postretirement expense                 0 0 0
Other Operating Income                 0 0 0
Operating Expenses                 (66,192) (48,106) (61,161)
Operating income                 0 0 0
Interest income                 (10,543) (618) (829)
Interest expense                 10,543 618 829
Nonoperating Income (Expense)                 0 0 0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest                 0 0 0
Provision for income taxes                 0 0 0
Income from continuing operations                 0 0 0
Income from discontinued operations, net                 0 0 0
Equity in net income of subsidiaries                 (493,321) (296,864) (179,682)
Net income                 (493,321) (296,864) (179,682)
IHS Inc. [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Revenue                 0 0 0
Operating expenses:                      
Cost of revenue                 0 0 0
Selling, general and administrative                 13,694 12,721 11,940
Depreciation and amortization                 0 0 0
Restructuring charges                 0 0 0
Acquisition-related costs                 0 0 0
Net periodic pension and postretirement expense                 54 88 141
Other Operating Income                 0 49 (61)
Operating Expenses                 13,748 12,858 12,020
Operating income                 (13,748) (12,858) (12,020)
Interest income                 10,349 0 0
Interest expense                 (39,196) (3,576) 0
Nonoperating Income (Expense)                 (28,847) (3,576) 0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest                 (42,595) (16,434) (12,020)
Provision for income taxes                 16,825 6,491 4,748
Income from continuing operations                 (25,770) (9,943) (7,272)
Income from discontinued operations, net                 0 0 0
Equity in net income of subsidiaries                 265,963 204,492 139,005
Net income                 240,193 194,549 131,733
Guarantor Subsidiaries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Revenue                 1,609,362 1,464,257 1,128,433
Operating expenses:                      
Cost of revenue                 808,214 752,463 647,513
Selling, general and administrative                 524,312 497,742 354,150
Depreciation and amortization                 155,352 135,489 70,573
Restructuring charges                 23,902 5,173 6,831
Acquisition-related costs                 1,418 1,268 19,188
Net periodic pension and postretirement expense                 4,075 6,686 11,427
Other Operating Income                 674 (227) (8,711)
Operating Expenses                 1,517,947 1,398,594 1,100,971
Operating income                 91,415 65,663 27,462
Interest income                 457 476 906
Interest expense                 (34,267) (51,020) (42,793)
Nonoperating Income (Expense)                 (33,810) (50,544) (41,887)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest                 57,605 15,119 (14,425)
Provision for income taxes                 (22,754) (5,971) 5,659
Income from continuing operations                 34,851 9,148 (8,766)
Income from discontinued operations, net                 3,754 6,664 7,238
Equity in net income of subsidiaries                 227,358 92,372 40,677
Net income                 265,963 108,184 39,149
Non-Guarantor Subsidiaries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Revenue                 641,165 663,636 624,731
Operating expenses:                      
Cost of revenue                 77,151 110,796 103,624
Selling, general and administrative                 257,348 279,289 275,984
Depreciation and amortization                 59,728 45,754 68,402
Restructuring charges                 15,457 3,602 4,898
Acquisition-related costs                 54 633 4,240
Net periodic pension and postretirement expense                 349 0 51
Other Operating Income                 902 (1,117) 9,000
Operating Expenses                 410,989 438,957 466,199
Operating income                 230,176 224,679 158,532
Interest income                 670 1,130 1,194
Interest expense                 (8,065) (1,406) (2,618)
Nonoperating Income (Expense)                 (7,395) (276) (1,424)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest                 222,781 224,403 157,108
Provision for income taxes                 (42,924) (45,646) (24,554)
Income from continuing operations                 179,857 178,757 132,554
Income from discontinued operations, net                 47,501 9,923 7,979
Equity in net income of subsidiaries                 0 0 0
Net income                 $ 227,358 $ 188,680 $ 140,533

v3.3.1.900
Supplemental Guarantor Information Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2015
Aug. 31, 2015
May. 31, 2015
Feb. 28, 2015
Nov. 30, 2014
Aug. 31, 2014
May. 31, 2014
Feb. 28, 2014
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Condensed Financial Statements, Captions [Line Items]                      
Net income $ 90,477 $ 59,244 $ 50,952 $ 39,520 $ 60,118 $ 46,517 $ 55,492 $ 32,422 $ 240,193 $ 194,549 $ 131,733
Other comprehensive income (loss), net of tax:                      
Amount of gain (loss) recognized in AOCI on derivative:                 (5,075) (7,283) 26
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax                 (460) 5,412 (897)
Foreign currency translation adjustment                 (79,873) (37,069) (11,191)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent                 (84,488) (49,764) (10,268)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent                 155,705 144,785 121,465
Eliminating Entries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Net income                 (493,321) (296,864) (179,682)
Other comprehensive income (loss), net of tax:                      
Comprehensive Income (Loss), Net of Tax, Attributable to Parent                 (98,549) (210,030) (158,223)
IHS Inc. [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Net income                 240,193 194,549 131,733
Other comprehensive income (loss), net of tax:                      
Comprehensive Income (Loss), Net of Tax, Attributable to Parent                 155,705 144,785 121,465
Guarantor Subsidiaries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Net income                 265,963 108,184 39,149
Other comprehensive income (loss), net of tax:                      
Comprehensive Income (Loss), Net of Tax, Attributable to Parent                 (47,860) 58,485 28,268
Non-Guarantor Subsidiaries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Net income                 227,358 188,680 140,533
Other comprehensive income (loss), net of tax:                      
Comprehensive Income (Loss), Net of Tax, Attributable to Parent                 $ 146,409 $ 151,545 $ 129,955

v3.3.1.900
Supplemental Guarantor Information Condensed Consolidating Statement of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2013
Nov. 30, 2012
Condensed Financial Statements, Captions [Line Items]        
Net Cash Provided by (Used in) Operating Activities $ 612,639 $ 628,099 $ 496,155  
Investing activities:        
Payments to Acquire Property, Plant, and Equipment (122,921) (114,453) (90,734)  
Payments to Acquire Businesses, Net of Cash Acquired (369,908) (210,395) (1,487,034)  
Payments to Acquire Intangible Assets 0 (714) 0  
Change in other assets (3,727) (4,608) 1,347  
Payments for (Proceeds from) Derivative Instrument, Investing Activities 597 6,159 4,524  
Net cash used in investing activities (495,959) (324,011) (1,571,897)  
Financing activities:        
Proceeds from borrowings 550,000 2,485,000 1,375,000  
Repayments of Debt and Capital Lease Obligations (261,152) (2,817,236) (268,909)  
Payments of Debt Issuance Costs 0 (18,994) (17,360)  
Excess tax benefit from stock-based compensation 5,494 13,297 14,334  
Proceeds from the exercise of employee stock options 0 0 549  
Payments for Repurchase of Common Stock (248,868) (59,928) (97,164)  
Net Cash Provided by (Used in) Financing Activities 45,474 (397,861) 1,006,450  
Foreign exchange impact on cash balance (22,162) (11,438) (17,349)  
Cash and Cash Equivalents, Period Increase (Decrease) 139,992 (105,211) (86,641)  
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations 293,148 153,156 258,367 $ 345,008
Advances Provided to Other Subsidiaries 0 0 0  
investment in subsidiaries 0 0 0  
Intercompany dividends received from subsidiaries 0 0 0  
Advances Received from Other Subsidiaries 0 0 0  
Proceeds from Issuance or Sale of Equity 0 0 0  
Intercompany dividends paid to subsidiaries 0 0 0  
Cash and cash equivalents associated with discontinued operations at the end of the period (1,568) 0 0  
Cash and cash equivalents 291,580 153,156 258,367  
Eliminating Entries [Member]        
Condensed Financial Statements, Captions [Line Items]        
Net Cash Provided by (Used in) Operating Activities 0 0 0  
Investing activities:        
Payments to Acquire Property, Plant, and Equipment 0 0 0  
Payments to Acquire Businesses, Net of Cash Acquired 0 0 0  
Payments to Acquire Intangible Assets   0    
Change in other assets 0 0 0  
Payments for (Proceeds from) Derivative Instrument, Investing Activities 0 0 0  
Net cash used in investing activities (18,620) 1,456,318 (284,836)  
Financing activities:        
Proceeds from borrowings 0 0 0  
Repayments of Debt and Capital Lease Obligations 0 0 0  
Payments of Debt Issuance Costs   0 0  
Excess tax benefit from stock-based compensation 0 0 0  
Proceeds from the exercise of employee stock options     0  
Payments for Repurchase of Common Stock 0 0 0  
Net Cash Provided by (Used in) Financing Activities 18,620 (1,456,318) 284,836  
Foreign exchange impact on cash balance 0 0 0  
Cash and Cash Equivalents, Period Increase (Decrease) 0 0 0  
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations 0 0 0 0
Advances Provided to Other Subsidiaries 600 770,629 16,116  
investment in subsidiaries 100 740,787 1,404  
Intercompany dividends received from subsidiaries (19,320) (55,098) (302,356)  
Advances Received from Other Subsidiaries (600) (770,629) (16,116)  
Proceeds from Issuance or Sale of Equity (100) (740,787) (1,404)  
Intercompany dividends paid to subsidiaries 19,320 55,098 302,356  
Cash and cash equivalents associated with discontinued operations at the end of the period 0 0 0  
Cash and cash equivalents 0 0 0  
IHS Inc. [Member]        
Condensed Financial Statements, Captions [Line Items]        
Net Cash Provided by (Used in) Operating Activities 0 0 0  
Investing activities:        
Payments to Acquire Property, Plant, and Equipment 0 0 0  
Payments to Acquire Businesses, Net of Cash Acquired 0 0 0  
Payments to Acquire Intangible Assets   0    
Change in other assets 0 0 0  
Payments for (Proceeds from) Derivative Instrument, Investing Activities 0 0 0  
Net cash used in investing activities 0 (740,675) 0  
Financing activities:        
Proceeds from borrowings 0 750,000 0  
Repayments of Debt and Capital Lease Obligations 0 0 0  
Payments of Debt Issuance Costs   (9,325) 0  
Excess tax benefit from stock-based compensation 0 0 0  
Proceeds from the exercise of employee stock options     0  
Payments for Repurchase of Common Stock 0 0 0  
Net Cash Provided by (Used in) Financing Activities 0 740,675 0  
Foreign exchange impact on cash balance 0 0 0  
Cash and Cash Equivalents, Period Increase (Decrease) 0 0 0  
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations 0 0 0 0
Advances Provided to Other Subsidiaries 0 0 0  
investment in subsidiaries 0 (740,675) 0  
Intercompany dividends received from subsidiaries 0 0 0  
Advances Received from Other Subsidiaries 0 0 0  
Proceeds from Issuance or Sale of Equity 0 0 0  
Intercompany dividends paid to subsidiaries 0 0 0  
Cash and cash equivalents associated with discontinued operations at the end of the period 0 0 0  
Cash and cash equivalents 0 0 0  
Guarantor Subsidiaries [Member]        
Condensed Financial Statements, Captions [Line Items]        
Net Cash Provided by (Used in) Operating Activities 360,437 441,627 251,827  
Investing activities:        
Payments to Acquire Property, Plant, and Equipment (109,160) (99,016) (72,188)  
Payments to Acquire Businesses, Net of Cash Acquired (324,393) (177,276) (1,365,195)  
Payments to Acquire Intangible Assets   0    
Change in other assets (3,727) (4,608) 1,347  
Payments for (Proceeds from) Derivative Instrument, Investing Activities 0 0 0  
Net cash used in investing activities (418,060) (231,164) (1,135,084)  
Financing activities:        
Proceeds from borrowings 550,000 1,735,000 1,235,261  
Repayments of Debt and Capital Lease Obligations (260,869) (2,677,596) (268,909)  
Payments of Debt Issuance Costs   (9,669) (17,360)  
Excess tax benefit from stock-based compensation 5,494 13,297 14,334  
Proceeds from the exercise of employee stock options     549  
Payments for Repurchase of Common Stock (248,868) (59,928) (97,164)  
Net Cash Provided by (Used in) Financing Activities 46,357 (233,517) 882,827  
Foreign exchange impact on cash balance 0 0 0  
Cash and Cash Equivalents, Period Increase (Decrease) (11,266) (23,054) (430)  
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations 21,048 32,314 55,368 55,798
Advances Provided to Other Subsidiaries 0 (5,250) 0  
investment in subsidiaries (100) (112) (1,404)  
Intercompany dividends received from subsidiaries 19,320 55,098 302,356  
Advances Received from Other Subsidiaries 600 765,379 16,116  
Proceeds from Issuance or Sale of Equity 0 0 0  
Intercompany dividends paid to subsidiaries 0 0 0  
Cash and cash equivalents associated with discontinued operations at the end of the period 0 0 0  
Cash and cash equivalents 21,048 32,314 55,368  
Non-Guarantor Subsidiaries [Member]        
Condensed Financial Statements, Captions [Line Items]        
Net Cash Provided by (Used in) Operating Activities 252,202 186,472 244,328  
Investing activities:        
Payments to Acquire Property, Plant, and Equipment (13,761) (15,437) (18,546)  
Payments to Acquire Businesses, Net of Cash Acquired (45,515) (33,119) (121,839)  
Payments to Acquire Intangible Assets   (714)    
Change in other assets 0 0 0  
Payments for (Proceeds from) Derivative Instrument, Investing Activities 597 6,159 4,524  
Net cash used in investing activities (59,279) (808,490) (151,977)  
Financing activities:        
Proceeds from borrowings 0 0 139,739  
Repayments of Debt and Capital Lease Obligations (283) (139,640) 0  
Payments of Debt Issuance Costs   0 0  
Excess tax benefit from stock-based compensation 0 0 0  
Proceeds from the exercise of employee stock options     0  
Payments for Repurchase of Common Stock 0 0 0  
Net Cash Provided by (Used in) Financing Activities (19,503) 551,299 (161,213)  
Foreign exchange impact on cash balance (22,162) (11,438) (17,349)  
Cash and Cash Equivalents, Period Increase (Decrease) 151,258 (82,157) (86,211)  
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations 272,100 120,842 202,999 $ 289,210
Advances Provided to Other Subsidiaries (600) (765,379) (16,116)  
investment in subsidiaries 0 0 0  
Intercompany dividends received from subsidiaries 0 0 0  
Advances Received from Other Subsidiaries 0 5,250 0  
Proceeds from Issuance or Sale of Equity 100 740,787 1,404  
Intercompany dividends paid to subsidiaries (19,320) (55,098) (302,356)  
Cash and cash equivalents associated with discontinued operations at the end of the period (1,568) 0 0  
Cash and cash equivalents $ 270,532 $ 120,842 $ 202,999  

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