Equifax 2002 Annual Report Download - page 35

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL MEASURES
2002 2001 2000
GAAP Revenue $1,109.3 $1,139.0 $1,189.2
City Directory –(29.2) (28.7)
Risk Management ––(110.6)
U.K. Vehicle Information ––(22.7)
Adjusted Revenue $1,109.3 $1,109.8 $1,027.2
GAAP Cost of Services $ 427.6 $451.0 $ 513.2
City Directory –(9.3) (9.4)
Risk Management ––(79.2)
U.K. Vehicle Information ––(22.5)
Adjusted Cost of Services $ 427.6 $441.7 $ 402.1
GAAP SG&A $ 249.9 $267.6 $ 261.2
City Directory –(22.2) (22.6)
Risk Management ––(9.7)
U.K. Vehicle Information –––
Adjusted SG&A $ 249.9 $245.4 $ 228.9
GAAP Depreciation
& Amortization $ 80.5 $80.8 $ 81.8
City Directory –(0.5) (0.4)
Risk Management ––(3.1)
U.K. Vehicle Information ––(2.5)
Adjusted Depreciation
& Amortization $ 80.5 $80.3 $ 75.8
GAAP Goodwill Amortization $ – $25.4 $ 24.4
City Directory –––
Risk Management –––
U.K. Vehicle Information –––
Adjusted Goodwill
Amortization $ – $25.4 $ 24.4
GAAP Operating Income $ 351.3 $253.8 $ 308.6
Restructuring and other charges –60.4 –
City Directory operating loss –2.9 3.6
Risk Management operating
income ––(18.6)
U.K. Vehicle Information
operating loss ––2.3
SFAS 142 Amortization –25.4 24.4
Adjusted Operating Income $ 351.3 $342.5 $ 320.3
GAAP Income from
continuing operations $191.3 $117.3 $141.1
City Directory operating loss –1.7 2.1
City Directory loss on sale –4.9 –
Risk/U.K. Vehicle operating profit ––(10.5)
Risk/U.K. Vehicle loss on sale ––2.5
Interest Expense, Risk/HPI sale ––4.5
Interest Income, Risk/HPI sale ––1.9
Income Tax Adjustment ––5.5
2001 restructuring and
impairment charges –35.3 –
SFAS 142 Amortization –18.5 19.6
Adjusted Income from
continuing operations $191.3 $177.7 $166.7
GAAP diluted EPS from
continuing operations $ 1.38 $0.84 $ 1.04
City Directory operating loss –0.02 0.02
City Directory loss on sale –0.04 –
Risk/U.K. Vehicle operating profit ––(0.08)
Risk/U.K. Vehicle loss on sale ––0.02
Interest Expense, Risk/HPI sale ––0.03
Interest Income, Risk/HPI sale ––0.02
Income Tax Adjustment ––0.04
2001 restructuring and
impairment charges –0.25 –
SFAS 142 Amortization –0.13 0.14
Adjusted diluted EPS from
continuing operations $ 1.38 $1.28 $ 1.23
APPLICATION OF CRITICAL
ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with GAAP
requires our management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, revenues and
expenses, and related disclosures of contingent assets and liabili-
ties in our consolidated financial statements and accompanying
notes. The following accounting policies involve a “critical
accounting estimate” because they are particularly dependent on
estimates and assumptions made by management about matters
that are highly uncertain at the time the accounting estimates are
made. In addition, while we have used our best estimates based
on facts and circumstances available to us at the time, different
estimates reasonably could have been used in the current period,
or changes in the accounting estimates that we used are reason-
ably likely to occur from period to period which may have a mate-
rial impact on the presentation of our financial condition and
results of operations. We also have other key accounting policies,
which involve the use of estimates, judgments, and assumptions
that are significant to understanding our results. For additional
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