Equifax 2010 Annual Report Download - page 76

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2010 2009
Diluted earnings per share from continuing operations attributable to Equifax — GAAP $ 1.86 $ 1.70
Acquisition-related amortization expense, net of tax 0.45 0.40
Restructuring and asset write-down charges, net of tax —0.13
Income tax benefits —(0.06)
Diluted earnings per share from continuing operations attributable to Equifax, adjusted for certain items — Non-
GAAP $ 2.31 $ 2.17
The reference in the ‘‘Financial Highlights’’ section to ‘‘Diluted earn-
ings per share from continuing operations attributable to Equifax,
adjusted for certain items’’ on the inside cover excludes certain items
from the nearest equivalent presentation under U.S. generally
accepted accounting principles, or GAAP. The non-GAAP measures
are provided to show the performance of our core operations without
the effect of the excluded items, consistent with how our manage-
ment reviews and assesses Equifax’s historical performance when
measuring operating profitability, evaluating performance trends and
setting performance objectives. The non-GAAP measures are not a
measurement of financial performance under GAAP, should not be
considered as an alternative to net income, operating income,
operating margin or earnings per share, and may not be comparable
to non-GAAP financial measures used by other companies.
Diluted Earnings per Share from continuing operations
attributable to Equifax, Adjusted for Certain Items and Adjusted
Earnings per Share — These non-GAAP measures exclude the fol-
lowing items:
Acquisition-Related Amortization Expense — Excluding
acquisition-related amortization expense, net of tax, of
$57.2 million and $51.2 million in 2010 and 2009, respectively,
provides meaningful supplemental information regarding our
financial results for the years ended December 31, 2010 and
2009, as it allows investors to evaluate our performance for differ-
ent periods on a more comparable basis by excluding items that
relate to acquisition-related intangible assets.
Restructuring and Asset Write-Down Charges — During 2009,
we recorded restructuring charges of $24.8 million ($15.8 million,
net of tax) as we took further steps to realign our business to bet-
ter support our strategic objectives. Management believes
excluding these charges provides meaningful supplemental
information regarding our financial results for the years ended
December 31, 2010 and 2009, since charges of such material
amounts are not comparable among the periods.
Income Tax Benefits — In the fourth quarter of 2009, we
recognized a $7.3 million income tax benefit related to our ability
to utilize foreign tax credits beyond 2009. Management believes
excluding these income tax benefits provides meaningful
supplemental information regarding our financial results for the
years ended December 31, 2010 and 2009, since income tax
benefits of such material amounts are not comparable among
the periods.
RECONCILIATIONS RELATED TO NON-GAAP FINANCIAL MEASURES
EQUIFAX 2010 ANNUAL REPORT
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