Equifax 2012 Annual Report Download - page 19

17
Equifax 2012 Annual Report
Other expense (income), net, from continuing operations for 2012,
decreased $14.3 million, as compared to the prior year periods. The
decrease is primarily due to the merger of our Brazilian business dur-
ing the second quarter of 2011. On May 31, 2011, we completed the
merger of our Brazilian business with Boa Vista Servicos S.A.
(‘‘BVS’’), which was accounted for as a sale and deconsolidated, in
exchange for a 15% equity interest in BVS (‘‘the Brazilian Transac-
tion’’). We recorded a $10.3 million pre-tax loss on the Brazilian
Transaction in other expense (income), net. Other expense, net, was
also reduced in 2012 by higher income from our minority investment
in Russia and interest earned of higher cash balances during 2012.
Other expense (income), net, from continuing operations for 2011
increased $9.0 million as compared to the prior year. The increase is
primarily due to the merger of our Brazilian business during the
second quarter of 2011. We recorded a $10.3 million pre-tax loss on
the Brazilian Transaction in other expense (income), net.
Income Taxes
Provision for Income Taxes Twelve Months Ended December 31, Change
2012 vs. 2011 2011 vs. 2010
(Dollars in millions) 2012 2011 2010 $% $%
Consolidated provision for income taxes $159.4 $168.0 $131.9 $(8.6) -5% $36.1 27%
Effective income tax rate 36.2% 41.2% 35.1%
Our effective rate was 36.2% for 2012, down from 41.2% for the
same period in 2011. The 2011 rate was higher primarily due to the
impact of the Brazilian Transaction which increased our effective rate
by 5.2%. In addition, the 2012 rate increased by 4.7% compared to
the prior year due the one-time effects of certain international tax
planning implemented during the year. This is offset by a 3.5% one-
time benefit associated with a tax method change approved by tax
authorities in 2012. In addition, the 2012 rate benefited from certain
federal, state and international benefits that we do not expect to recur
in future years. We expect our effective tax rate in 2013 to be in the
range of 35% to 37%.
Our effective rate was 41.2% for 2011, up from 35.1% for the same
period in 2010. The 2011 rate was higher primarily due to the impact
of the Brazilian Transaction which increased our effective rate by
5.2%. In addition, the 2010 rate benefited from certain state benefits
that did not recur in 2011. This is partially offset by a cumulative
income tax benefit resulting from the recognition of an income tax
deduction related to several prior years.
Net Income
Net Income Twelve Months Ended December 31, Change
2012 vs. 2011 2011 vs. 2010
(In millions, except per share amounts) 2012 2011 2010 $% $%
Consolidated operating income $ 489.0 $ 471.0 $ 430.0 $ 18.0 4% $ 41.0 10%
Consolidated other expense, net (48.8) (62.8) (54.8) 14.0 -22% (8.0) 15%
Consolidated provision for income taxes (159.4) (168.0) (131.9) 8.6 -5% (36.1) 27%
Consolidated net income from
continuing operations $ 280.8 $ 240.2 $ 243.3 $ 40.6 17% $ (3.1) -1%
Discontinued operations, net of tax $— 1.5 31.5 (1.5) -100% $(30.0) -95%
Net income attributable to
noncontrolling interests (8.7) (8.8) (8.1) 0.1 -1% (0.7) 9%
Net income attributable to Equifax $ 272.1 $ 232.9 $ 266.7 $ 39.2 17% $(33.8) -13%
Diluted earnings per common share
Net income from continuing operations
attributable to Equifax $ 2.22 $ 1.87 $ 1.86 $ 0.35 19% $ 0.01 1%
Discontinued operations attributable
to Equifax —0.01 0.25 $(0.01) -100% $(0.24) -95%
Net income attributable to Equifax $ 2.22 $ 1.88 $ 2.11 $ 0.34 18% $(0.23) -11%
Weighted-average shares used in computing
diluted earnings per share 122.5 123.7 126.5