Equifax 2015 Annual Report Download - page 17

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– 16 –
Interest Expense and Other Income (Expense), net
Twelve Months Ended December 31, Change
2015 vs. 2014 2014 vs. 2013
Consolidated Interest and
Other Income (Expense),
net 2015 2014 2013 $ % $ %
(Inmillions)
Consolidated interest
expense $(63.8)$(68.6) $ (70.2)$4.8 (7)% $1.6 (2)%
Consolidated other income
(expense), net 6.5 4.6 (10.6)1.9 41 %15.2 143 %
Average cost of debt 4.5%4.3%4.6%
Total consolidated debt, net,
at year end $1,195.2 $1,526.1 $1,442.0 $(330.9)(22)% $84.1 6 %
Interest expense decreased in 2015, when compared to 2014, due to an overall decrease in our consolidated debt
outstanding as of December 31, 2015. Our average cost of debt increased slightly in 2015 compared to the prior year, due to
the higher ratio of higher interest debt and the low balance of low rate commercial paper outstanding.
Interest expense decreased slightly in 2014, when compared to 2013, due to the pay-off of our 7.34% Notes and 4.45%
Senior Notes during 2014. Our consolidated debt balance increased, as compared to the prior year, as a result of commercial
paper issued to fund the majority of the acquisition price of TDX. The decrease in the average cost of debt for 2014 is due to
the pay-off of our 7.34% Notes and 4.45% Senior Notes and additional low rate commercial paper outstanding on average,
which caused the average cost of debt to decrease as compared to the prior year.
The increase in other income (expense), net, in 2015 is due to the settlement of escrow amounts related to an
acquisition from January 2014, and the gain on foreign currency options put in place as an economic hedge of Veda's purchase
price, partially offset by impairment of our cost method investment in Brazil in the second quarter of 2015.
The increase in other income (expense), net, in 2014 is due to the impairment of our cost method investment in Brazil
recorded in 2013, which did not recur in 2014. Other income (expense), net in 2014 also includes $7.0 million in foreign
exchange losses related to dividends declared by our subsidiary in Argentina and losses incurred in repatriating these funds.
These losses were partially offset by an increase in our equity in the earnings of our Russian joint venture.
Income Taxes
Twelve Months Ended December 31, Change
2015 vs. 2014 2014 vs. 2013
Provision for Income
Taxes 2015 2014 2013 $ % $ %
(Inmillions)
Consolidated provision for
income taxes $(201.8)$(200.2) $ (188.9)$(1.6)1%$(11.3)6%
Effective income tax rate 31.7%34.9% 35.6%
Overall, our effective tax rate was 31.7% for 2015, down from 34.9% for the same period in 2014. The 2015 rate
benefited by 2% due to international related items specifically the increased recognition of foreign tax credits and the
permanent item associated with the settlement of escrows related to past acquisitions, and 1.4% due to the state law changes.
Overall, our effective tax rate was 34.9% for 2014, down from 35.6% for the same period in 2013. The 2014 rate
benefited by 1.1% as compared to the 2013 rate due to the favorable impact of 2014 international, permanent and discrete
items. The 2014 effective rate increased by 0.4% as compared to 2013 due to increases in state income tax rates, which became
effective or enacted in 2014.
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