Equifax 2011 Annual Report Download - page 75

The reference in the ‘‘Financial Highlights’’ section to ‘‘Diluted earn-
ings per share from continuing operations attributable to Equifax,
adjusted for certain items’’ and ‘‘Adjusted Operating Revenue’’ 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 management reviews and assesses
Equifax’s historical performance when measuring operating profit-
ability, 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 operating revenue or earnings per share, and may not
be comparable to non-GAAP financial measures used by other
companies.
2011 2010
Diluted earnings per share from continuing operations attributable to Equifax — GAAP $ 1.87 $ 1.86
Acquisition-related amortization expense, net of tax 0.46 0.45
Loss on deconsolidation of Brazilian business 0.22 —
Income tax benefits (0.03) —
Diluted earnings per share from continuing operations attributable to Equifax, adjusted for certain items — Non-
GAAP $ 2.52 $ 2.31
Diluted Earnings per Share, Adjusted for Certain Items and
Adjusted Earnings per Share — These non-GAAP measures
exclude the following items:
Acquisition-Related Amortization Expense — Excluding
acquisition-related amortization expense, net of tax, of $57.0 mil-
lion and $57.2 million in 2011 and 2010, respectively, provides
meaningful supplemental information regarding our financial results
for the years ended December 31, 2011 and 2010, as it allows
investors to evaluate our performance for different periods on a
more comparable basis by excluding items that relate to acquisi-
tion-related intangible assets.
Loss on the Deconsolidation of Brazilian business — During
the second quarter of 2011, the Company completed the merger
of our Brazilian business with and into Boa Vista Serviços S.A.
(‘‘BVS’’) in exchange for a 15 percent equity interest in BVS. The
Company recorded a $27.8 million loss on the transaction.
Management believes excluding the loss from certain financial
results provides meaningful supplemental information regarding
our financial results for the twelve months ended December 31,
2011, as compared to 2010, since a loss of such an amount is not
comparable among the periods. This is consistent with how our
management reviews and assesses Equifax’s historical
performance and is useful when planning, forecasting and analyz-
ing future periods.
Income Tax Benefits — During the fourth quarter of 2011, the
Company recorded a cumulative income tax benefit resulting from
the recognition of an income tax deduction related to several prior
years. Management believes excluding this income tax benefit
from certain financial results provides meaningful supplemental
information regarding our financial results for the twelve months
ended December 31, 2011, as compared to 2010, since this
income tax benefit is large enough to affect performance trends,
does not relate to the results of the current period’s operations,
and is not comparable among the periods. This is consistent with
how our management reviews and assesses Equifax’s historical
performance and is useful when planning, forecasting and analyz-
ing future periods.
(in millions) 2011 2010
Operating revenue $1,959.8 $1,859.5
Brazil Revenue (35.4) (84.1)
Adjusted operating revenue — Non-GAAP $1,924.4 $1,775.4
Adjusted Operating Revenue — This non-GAAP measure excludes
the following item:
Adjusted Operating Revenue, Excluding the Results of our
Brazilian Operations — Management believes excluding the
Brazilian revenue from the calculation of operating revenue, on a
non-GAAP basis, is useful because it allows investors to evaluate
the Company’s growth on a basis consistent with the current
composition of our business.
RECONCILIATIONS RELATED TO NON-GAAP FINANCIAL MEASURES
EQUIFAX 2011 ANNUAL REPORT 73