Equifax 2015 Annual Report Download - page 16

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Cost of services increased $57.4 million in 2014 compared to the prior year. The increase in cost of services, when
compared to 2013, was due primarily to the acquisition of TDX in the first quarter of 2014 and the 2013 acquisitions. The
effect of changes in foreign exchange rates reduced cost of services by $7.7 million.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased $132.6
million in 2015 as compared to 2014. The increase was principally due to increases in people costs, and to a lesser extent to
increases in marketing expenses, professional fees, as well as litigation expenses. The increase was also due to the costs related
to the realignment of internal resources of $20.7 million recorded in the first quarter of 2015. The impact of changes in foreign
currency exchange rates decreased our selling, general and administrative expenses by $24.6 million.
Selling, general and administrative expenses increased $35.9 million in 2014 as compared to 2013. The increase was
due to the impact of the TDX acquisition in the first quarter of 2014 and the 2013 Acquisitions, an increase in litigation and
regulatory compliance expenses, including a third quarter 2014 settlement of a legal dispute over certain software license
agreements, and an increase in incentives. These increases were partially offset by decreases in marketing and professional
services expenses, as well as smaller decreases in expense in various other categories. The impact of changes in foreign
currency exchange rates decreased our selling, general and administrative expenses by $6.8 million.
Depreciation and Amortization. Depreciation and amortization expense for 2015 were slightly lower compared to
2014, due to foreign currency fluctuations of $4.1 million.
The increase in depreciation and amortization expense in 2014, as compared to 2013, was driven by $18.5 million of
incremental expense resulting from the TDX Acquisition primarily related to amortization of purchased intangibles. The TDX
Acquisition amortization is partially offset by certain purchased intangible assets related to the TALX acquisition in 2007 that
became fully amortized during the second quarter of 2013.
Operating Income and Operating Margin
Twelve Months Ended December 31, Change
Operating Income and
Operating Margin
2015 vs. 2014 2014 vs. 2013
2015 2014 2013 $ % $ %
(Inmillions)
Consolidated operating
revenue $2,663.6 $2,436.4 $2,303.9 $227.2 9%$132.5 6 %
Consolidated operating
expenses 1,969.7 1,798.2 1,692.7 171.5 10%105.5 6 %
Consolidated operating
income $693.9 $638.2 $611.2 $55.7 9%$27.0 4 %
Consolidated operating
margin 26.1%26.2%26.5%(0.1)pts (0.3)pts
Total company margin decreased slightly in 2015 due to the costs for the realignment of internal resources of $20.7
million and other increases in people costs. The decrease was mostly offset by the margin improvements of 290 basis points
and 510 basis points in our USIS and Workforce Solutions segments, respectively.
Total company margin decreased slightly in 2014 due to a third quarter 2014 settlement of a legal dispute over certain
software license agreements and increased cost of services and acquisition-related amortization expense related to the
acquisition of TDX. The decrease was partially offset by a reduction in amortization of certain purchased intangible assets
related to our TALX Corporation acquisition in 2007 that became fully amortized during the second quarter of 2013.
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