Equifax 2008 Annual Report Download - page 76

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28FEB200910255904
RECONCILIATIONS RELATED TO NON-GAAP FINANCIAL MEASURES
2008 2007 Diluted Earnings per Share, Adjusted for Certain Items
and Adjusted Earnings per Share — These non-GAAP
Diluted earnings per share — GAAP $ 2.09 $2.02 measures exclude the following items:
Acquisition-related amortization
expense, net of tax 0.42 0.30 Acquisition-Related Amortization Expense —
Restructuring and asset write-down Excluding acquisition-related amortization expense, net
charges, net of tax 0.08 —of tax, of $54.7 million and $40.7 million in 2008 and
Income tax benefit (0.11) —2007, respectively, provides meaningful supplemental
information regarding our financial results for the twelve
Diluted earnings per share, adjusted months ended December 31, 2008 and 2007 as it
for certain items — Non-GAAP $ 2.48 $2.32 allows investors to evaluate our performance for differ-
ent periods on a more comparable basis by excluding
The references in the ‘‘Financial Highlights’’ section to
items that relate to acquisition-related intangible
‘‘Diluted earnings per share, adjusted for certain items’’ on
assets.
the inside cover and to ‘‘adjusted earnings per share’’ on
page 1 of this Annual Report, exclude certain items from Restructuring and Asset Write-Down Charges —
the nearest equivalent presentation under U.S. generally During the third quarter of 2008, we recorded
accepted accounting principles, or GAAP. The non-GAAP $16.8 million of restructuring and asset-write down
measures are provided to show the performance of our charges ($10.5 million, net of tax) related to our busi-
core operations without the effect of the excluded items, ness realignment. Management believes excluding
consistent with how our management reviews and these charges provides meaningful supplemental infor-
assesses Equifax’s historical performance when measuring mation regarding our financial results for the twelve
operating profitability, evaluating performance trends and months ended December 31, 2008, as compared to
setting performance objectives. The non-GAAP measures the same period in 2007, since charges of such a
are not a measurement of financial performance under material amount are not comparable to similar activity
GAAP, should not be considered as an alternative to net in the prior year.
income, operating income, operating margin or earnings
per share, and may not be comparable to non-GAAP finan- Income Tax Benefit — During the third quarter of
cial measures used by other companies. 2008, the applicable statute of limitations related to an
uncertain tax position expired, resulting in the reversal
of the related income tax reserve. The reversal of the
reserve resulted in a $14.6 million income tax benefit.
Management believes excluding this income tax bene-
fit provides meaningful supplemental information
regarding our financial results for the twelve months
ended December 31, 2008, as compared to the same
period in 2007, since an income tax benefit of such a
material amount is not comparable to similar activity in
the prior period presented.
74 EQUIFAX INC.