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Table of Contents
32
(4)
Non
-GAAP net income is considered a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical
measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally
included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP
measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to
identify such measures. We believe that non-GAAP net income provides meaningful information regarding our operating performance
and our prospects for the future. This supplemental measure excludes, among other things, charges related to the amortization of
acquisition-related intangibles, non-cash equity-based compensation and gains and losses from the early extinguishment of debt. The
following unaudited table sets forth a reconciliation of net income (loss) to non-GAAP net income for the periods presented:
Years Ended December 31,
(in millions)
2014
2013
2012
2011
2010
Net income (loss)
$
244.9
$
132.8
$
119.0
$
17.1
$
(29.2
)
Amortization of intangibles
(i)
161.2
161.2
163.7
165.7
166.8
Non-cash equity-based compensation
16.4
8.6
22.1
19.5
11.5
Litigation, net
(ii)
(0.6
)
(6.3
)
—
—
—
Net loss on extinguishments of long-term
debt
90.7
64.0
17.2
118.9
(2.0
)
Interest expense adjustment related to
extinguishments of long-term debt
(iii)
(1.1
)
(7.5
)
(3.3
)
(19.4
)
(0.7
)
IPO- and secondary-offering related
expenses
(iv)
1.4
75.0
—
—
—
Debt-related refinancing costs
(v)
—
—
—
3.8
5.6
Aggregate adjustment for income taxes
(vi)
(103.0
)
(113.5
)
(71.6
)
(106.8
)
(66.3
)
Non-GAAP net income
$
409.9
$
314.3
$
247.1
$
198.8
$
85.7
(i) Includes amortization expense for acquisition-
related intangible assets, primarily customer relationships and trade names.
(ii) Relates to unusual, non-
recurring litigation matters.
(iii)
Reflects adjustments to interest expense resulting from debt extinguishments. Represents the difference between interest
expense previously recognized under the effective interest method and actual interest paid.
(iv)
IPO- and secondary-
offering related expenses consist of the following:
(in millions)
Years Ended December 31,
2014
2013
Acceleration charge for certain equity
awards and related employer payroll taxes
$
—
$
40.7
RDU Plan cash retention pool accrual
—
7.5
Management services agreement
termination fee
—
24.4
Other expenses
1.4
2.4
IPO- and secondary-offering related expenses
$
1.4
$
75.0
(v) Represents fees and costs expensed related to the December 2010 and March 2011 amendments to our prior senior secured
term loan facility.
(vi)
Based on a normalized effective tax rate of 39.0%.