Equifax 2015 Annual Report Download - page 84

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– 83 –
due diligence expenses and fees incurred as a direct result of the proposed acquisition, recorded in selling, general, and
administrative expenses on our consolidated statement of income. $4.2 million relates to a mark-to-market gain on foreign
currency options and amortization of acquisition specific debt issuance costs, recorded in other income, net, on our consolidated
statement of income and does not impact our operating margin. The foreign currency options will expire or will be exercised in
Q1 2016. During 2015, there was no adjustment for integration expense, however, management plans to exclude integration
expense for the first year following the closure of the acquisition. 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 net income when measuring 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.
Accrual for certain legal claims - During the third quarter of 2015, we recorded a charge of $7.5 million ($4.7
million, net of tax) related to an accrual for certain legal claims. 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.
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.
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