Experian 2009 Annual Report Download - page 38

36 Experian Annual Report 2009
Business review
Financial review continued
Other non-GAAP measures
IFRS requires that, on acquisition,
specic intangible assets are identied
and recognised separately from
goodwill and then amortised over their
useful economic lives. These include
items such as customer relationships,
completed technology, data provider
relationships, trademarks and brand
names, to which value is rst attributed
at the time of acquisition. The Group
has excluded amortisation of these
acquisition intangibles from its
denition of Benchmark PBT because
such a charge is based on judgements
about their value and economic life.
A goodwill adjustment of US$1m
arose in accordance with IFRS3
‘Business Combinations’ following
the recognition of a benet in respect
of previously unrecognised tax losses
relating to prior year acquisitions. The
corresponding tax benet reduced the
tax charge in the year by US$1m. The
equivalent adjustment in the prior year
was US$2m.
The charge in respect of the demerger-
related equity incentive plans relates
to one-off grants made to senior
management and all other staff levels
at the time of demerger under a number
of equity incentive plans. The cost of
these one-off grants is being charged
to the Group income statement over
the ve years following the demerger,
but is excluded from the denition of
Benchmark PBT. The cost of all other
grants is charged to the Group income
statement and included in the denition
of Benchmark PBT.
Exceptional items (continuing operations)
2009 2008
Year ended 31 March US$m US$m
Restructuring costs 92 52
Cessation of bureau activities 15 -
Demerger and related restructuring costs 7 6
Closure of UK account processing - (2)
Net loss/(gain) on disposal of businesses 3 (1)
Total exceptional items 117 55
Other non-GAAP measures (continuing operations)
2009 2008
Year ended 31 March US$m US$m
Amortisation of acquisition intangibles 132 121
Goodwill adjustment 1 2
Charges in respect of the demerger-related
equity incentive plans 32 49
Financing fair value remeasurements (19) 29
Total other non-GAAP measures 146 201
An element of Experian’s derivatives
is ineligible for hedge accounting.
Gains or losses on such derivatives
arising from market movements,
together with gains and losses on put
options in respect of acquisitions,
are credited or charged to the Group
income statement. The credit for the
year includes a credit of US$21m (2008:
US$69m) in respect of the revaluation
of the Serasa put option liability. The
gain in respect of the valuation arising
in the current year relates primarily to
an increase in the Brazilian risk free
rate used in the Monte Carlo simulation
model.
Use of non-GAAP nancial
information
Experian has identied certain
measures that it believes will assist
understanding of the performance
of the Group. As the measures are
not dened under IFRS they may not
be directly comparable with other
companies’ adjusted measures. The
non-GAAP measures are not intended
to be a substitute for, or superior to, any
IFRS measures of performance. Certain
non-GAAP measures identied by the
Group are shown in note 2 to the
Group nancial statements.
Further non-GAAP measures and
reconciliations of those measures are
set out below.