Equifax 2015 Annual Report Download - page 83

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– 82 –
This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when
planning, forecasting and analyzing future periods.
Impairment of our cost method investment in Brazil - During the second quarter of 2015, we recorded a charge of
$14.8 million ($9.8 million, net of tax) related to the impairment of our cost method investment in Brazil. Management believes
excluding this charge from certain financial results provides meaningful supplemental information regarding our financial
results for the year ended December 31, 2015, as compared to the corresponding period in 2014, since a charge 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 analyzing future periods.
State income tax benefit - During the second quarter of 2015, we recorded an unanticipated state income tax benefit
of $8.6 million, due to a change in tax law. Management believes excluding this charge from certain financial results provides
meaningful supplemental information regarding our financial results for the year ended December 31, 2015, as compared to the
corresponding period in 2014, because a charge 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
analyzing future periods.
Charge related to the realignment of internal resources and other - During the first quarter of 2015, we recorded a
charge of $23.4 million ($14.9 million, net of tax). This charge was predominantly related to the realignment of our internal
resources to support the Company’s strategic objectives and increase the integration of our global operations. Management
believes excluding this charge from certain financial results provides meaningful supplemental information regarding our
financial results for the year ended December 31, 2015, as compared to the corresponding period in 2014, since a charge 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 analyzing future periods.
Settlement of a legal dispute over certain software license agreements - During the third quarter of 2014, we
recorded a settlement of a legal dispute over certain software license agreements of $7.9 million ($5.0 million, net of tax).
Management believes excluding this charge is useful as it allows investors to evaluate our performance for different periods on
a more comparable basis. Management makes these adjustments to operating income when measuring operating profitability,
evaluating performance trends, setting performance objectives and calculating our return on invested capital. This is consistent
with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and
analyzing future periods.
Acquisition-Related Amortization Expense - Excluding acquisition-related amortization expense, net of tax, and
including a benefit to reflect the material cash income tax savings resulting from the income tax deductibility of amortization
for certain acquired intangibles for a total of $105.4 million and $107.7 million in 2015 and 2014, respectively, provides
meaningful supplemental information regarding our financial results for the years ended December 31, 2015 and 2014, as it
allows investors to evaluate our performance for different periods on a more comparable basis by excluding items that relate to
acquisition-related intangible assets.
2015 2014
Operating revenue $2,663.6 $2,436.4
Operating income 693.9 638.2
Veda specific expenses 3.7 —
Settlement of a legal dispute over certain software agreements 7.5 7.9
Realignment of internal resources and other costs 23.4 —
Adjusted operating income - Non-GAAP 728.5 646.1
Adjusted operating margin - Non-GAAP 27.4%26.5%
Adjusted Operating Income and Operating Margin - These non-GAAP measures exclude the following items:
Veda acquisition related amounts for due diligence and fees incurred as a direct result of the proposed
acquisition, as well as integration expense in the first year following the closure of the acquisition - During the fourth
quarter of 2015, we recorded $0.5 million ($0.3 million, net of tax) for Veda acquisition related amounts. $3.7 million relates to
108
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