Experian 2010 Annual Report Download - page 115

113
Introduction 2 – 11
Business review 12 – 51
Governance 52 – 84
Financial statements 85 – 160
10. Exceptional and other non-GAAP measures (continued)
Exceptional items
Expenditure of US$41m (2009: US$92m) arose in the year in connection with the Group’s strategic programme of cost efciency
measures. Of this US$21m (2009: US$51m) related to redundancy, US$17m (2009: US$34m) related to offshoring activities,
infrastructure consolidations and other restructuring activities and US$3m (2009: US$7m) related to asset write-offs.
During the year, Experian recognised a loss of US$4m in connection with arrangements with FARES primarily as a result of the
reclassication through the Group income statement of earlier losses in respect of holdings of First Advantage Corporation
Class A common stock.
During the year ended 31 March 2010, and as previously announced, the Group completed the closure of its Canadian credit
bureau and terminated its joint venture bureau in Japan. Charges associated with the closure of the bureaux in the year ended
31 March 2009 included US$13m of xed asset write-offs, including the related investment in associate, and a further US$2m of
closure costs.
The loss on disposal of businesses in the year ended 31 March 2010 primarily arose as a result of the disposal of the National
Business Database in North America.
Demerger and related restructuring costs in the year ended 31 March 2009 comprised legal and professional fees, together with
costs in connection with the cessation of a number of subsidiaries of the former GUS plc.
Cash outows in respect of exceptional items are analysed in note 35(h).
Other non-GAAP measures
IFRS requires that, on acquisition, specic intangible assets are identied and recognised separately from goodwill and then
amortised over their useful economic lives. These include items such as brand names and customer lists, to which value is rst
attributed at the time of acquisition. The Group has excluded amortisation of these acquisition intangibles from its denition of
Benchmark PBT because such a charge is based on judgments about their value and economic life.
A goodwill adjustment of US$1m arose in the year ended 31 March 2009 under IFRS 3 ‘Business Combinations’ on the
recognition of previously unrecognised tax losses on prior years’ acquisitions. The corresponding tax benet reduced the tax
charge for that year by US$1m.
Charges in respect of demerger-related equity incentive plans relate to one-off grants made to senior management and at
all staff levels at the time of the demerger, under a number of equity incentive plans. The cost of these one-off grants is being
charged to the Group income statement over the ve years from otation in October 2006, but excluded from the denition of
Benchmark PBT. The cost of all other grants is being charged to the Group income statement and included in the denition of
Benchmark PBT.
An element of the Group’s derivatives is ineligible for hedge accounting under IFRS. Gains or losses on these derivatives arising
from market movements, together with gains and losses on put options in respect of acquisitions, are credited or charged to
nancing fair value remeasurements within nance income and nance expense in the Group income statement.