Equifax 2013 Annual Report Download - page 18

31 EQUIFAX 2013 ANNUAL REPORT
The Board of Directors and Shareholders of Equifax Inc.:
We have audited the accompanying consolidated balance sheets of
Equifax Inc. as of December 31, 2013 and 2012, and the related
consolidated statements of income, comprehensive income, cash
flows, and shareholders’ equity and other comprehensive income for
each of the three years in the period ended December 31, 2013. Our
audits also included the financial statement schedule listed in the
Index at Item 15(a)(1). These financial statements and schedule are
the responsibility of the Company’s management. Our responsibility is
to express an opinion on these financial statements and schedule
based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Equifax Inc. at December 31, 2013 and 2012, and the consolidated
results of its operations and its cash flows for each of the three years
in the period ended December 31, 2013, in conformity with U.S.
generally accepted accounting principles. Also, in our opinion, the
related financial statement schedule, when considered in relation to
the basic financial statements taken as a whole, presents fairly in all
material respects the information set forth therein.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), Equifax Inc.’s
internal control over financial reporting as of December 31, 2013,
based on criteria established in Internal Control-Integrated
Framework (‘‘1992 Framework’’) issued by the Committee of
Sponsoring Organizations of the Treadway Commission and our
report dated February 27, 2014 expressed an unqualified opinion
thereon.
Atlanta, Georgia
February 27, 2014
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
32 EQUIFAX 2013 ANNUAL REPORT
Twelve Months Ended
December 31,
(In millions, except per share amounts) 2013 2012 2011
Operating revenue $2,303.9 $2,073.0 $1,893.2
Operating expenses:
Cost of services (exclusive of depreciation and amortization below) 787.3 759.5 703.9
Selling, general and administrative expenses 715.8 673.5 560.1
Depreciation and amortization 189.6 160.0 160.6
Total operating expenses 1,692.7 1,593.0 1,424.6
Operating income 611.2 480.0 468.6
Interest expense (70.2) (55.4) (55.1)
Other (expense) income, net (10.6) 6.7 (7.6)
Consolidated income from continuing operations before income taxes 530.4 431.3 405.9
Provision for income taxes (188.9) (156.0) (167.1)
Consolidated income from continuing operations 341.5 275.3 238.8
Income from discontinued operations, net of tax 18.4 5.5 2.9
Consolidated net income 359.9 280.8 241.7
Less: Net income attributable to noncontrolling interests (8.1) (8.7) (8.8)
Net income attributable to Equifax $ 351.8 $ 272.1 $ 232.9
Amounts attributable to Equifax:
Net income from continuing operations attributable to Equifax $ 333.4 $ 266.6 $ 230.0
Discontinued operations, net of tax 18.4 5.5 2.9
Net income attributable to Equifax $ 351.8 $ 272.1 $ 232.9
Basic earnings per common share:
Income from continuing operations attributable to Equifax $ 2.75 $ 2.22 $ 1.89
Discontinued operations 0.15 0.05 0.02
Net income attributable to Equifax $ 2.90 $ 2.27 $ 1.91
Weighted-average shares used in computing basic earnings per share 121.2 119.9 121.9
Diluted earnings per common share:
Income from continuing operations attributable to Equifax $ 2.69 $ 2.18 $ 1.86
Discontinued operations 0.15 0.04 0.02
Net income attributable to Equifax $ 2.84 $ 2.22 $ 1.88
Weighted-average shares used in computing diluted earnings per share 123.7 122.5 123.7
Dividends per common share $ 0.88 $ 0.72 $ 0.64
See Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF INCOME