Experian 2013 Annual Report Download - page 124
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Please find page 124 of the 2013 Experian annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.122 Experian Annual Report 2013 Financial statements
Notes to the Group financial statements continued
14. Other adjustments made to derive Benchmark PBT – continuing operations
2013
US$m
2012
US$m
Amortisation of acquisition intangibles 123 122
Acquisition expenses 4 9
Adjustment to the fair value of contingent consideration 1 (3)
Charges in respect of the demerger-related share incentive plans – 5
Financing fair value remeasurements (note 15(c)) 561 318
Other adjustments made to derive Benchmark PBT 689 451
By income statement caption:
Labour costs – 5
Depreciation and amortisation 123 122
Other operating charges 5 6
Within operating profit 128 133
Finance expense 561 318
Other adjustments made to derive Benchmark PBT 689 451
On acquisition, specific intangible assets are identified 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 first attributed at the time of acquisition. The Group has
excluded amortisation of these acquisition intangibles from its definition of Benchmark PBT because such a charge is based on judgments
about their value and economic life.
Acquisition expenses are charged to the Group income statement but excluded from the definition of Benchmark PBT as, by their very nature,
they bear no relation to the underlying performance of the Group or to the performance of the acquired businesses. Adjustments to contingent
consideration are similarly excluded from the definition of Benchmark PBT.
An element of the Group’s derivatives is ineligible for hedge accounting. 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 financing fair value remeasurements within
finance expense in the Group income statement.
15. Net finance costs
(a) Net finance costs included in Profit before tax
2013
US$m
2012
US$m
Interest income:
Bank deposits, short-term investments and loan notes (16) (18)
Expected return on pension plan assets (52) (57)
Interest income before interest on legacy tax balances (68) (75)
Interest income arising on legacy tax balances – (4)
Interest income (68) (79)
Finance expense:
Bank loans and overdrafts 6 3
Eurobonds and notes 103 95
Commitment and facility fees 10 8
Unwinding of discount on provisions (note 39) – 1
Interest differentials on derivatives (37) (31)
Interest expense on pension plan liabilities 44 46
Interest expense 126 122
Charge in respect of financing fair value remeasurements (note 15(c)) 561 318
Finance expense 687 440
Net finance costs included in Profit before tax 619 361