EX-99.1 2 v350605_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

1550 Peachtree Street, N.W. Atlanta, Georgia 30309

NEWS RELEASE

Contact:

Jeff Dodge	Tim Klein
Investor Relations	Media Relations
(404) 885-8804	(404) 885-8555
jeff.dodge@equifax.com	tim.klein@equifax.com

Equifax Reports Strong Second Quarter 2013 Results

ATLANTA, July 24, 2013 — Equifax Inc. (NYSE: EFX) today announced financial results for the quarter ended June 30, 2013. The company reported revenue from continuing operations of $586.9 million in the second quarter of 2013, a 14 percent increase from the second quarter of 2012.

Second quarter diluted EPS from continuing operations attributable to Equifax was $0.73, an increase of 22 percent from the second quarter of 2012. On a non-GAAP basis, adjusted EPS attributable to Equifax, excluding the impact of acquisition-related amortization expense, net of associated tax impacts, was $0.92, up 28 percent from the second quarter of 2012.

"Broad-based performance, including double digit revenue growth and expanded operating margins, drove our strong financial results in the second quarter," said Richard F. Smith, Equifax's Chairman and Chief Executive Officer. "With the integration of the CSC acquisition nearly complete and accelerating growth in our core, non-mortgage activities and our strategic initiatives, I am highly confident in our full year guidance.”

Second Quarter 2013 Highlights

In addition to the financial highlights noted above, second quarter 2013 net income from continuing operations attributable to Equifax was $90.5 million, a 22 percent increase from the prior year.

Operating margin was 26.9 percent for the second quarter of 2013, compared to 25.1 percent in the second quarter of 2012.

Total debt at June 30, 2013 was $1.5 billion, down $225.1 million from December 31, 2012.

U.S. Consumer Information Solutions (USCIS)

Total revenue was $259.7 million in the second quarter of 2013 compared to $217.6 million in the second quarter of 2012, an increase of 19 percent.

Online Consumer Information Solutions revenue was $184.8 million, up 17 percent from a year ago.

Mortgage Solutions revenue was $32.5 million, up 38 percent from a year ago.

Consumer Financial Marketing Services revenue was $42.4 million, up 17 percent when compared to a year ago.

Operating margin for USCIS was 40.2 percent in the second quarter of 2013 which is flat when compared to the second quarter of 2012.

International

Total revenue was $129.8 million in the second quarter of 2013, a 9 percent increase from the second quarter of 2012 and a 12 percent increase on a local currency basis.

Latin America revenue was $48.6 million, up 11 percent in local currency and 5 percent in U.S. dollars from a year ago.

Europe revenue was $47.1 million, up 16 percent in local currency and 14 percent in U.S. dollars from a year ago.

Canada Consumer revenue was $34.1 million, up 9 percent in local currency and 7 percent in U.S. dollars from a year ago.

Operating margin for International was 28.7 percent in the second quarter of 2013 compared to 29.2 percent in the second quarter of 2012.

Workforce Solutions

Total revenue was $123.2 million in the second quarter of 2013, a 12 percent increase over the second quarter of 2012.

Verification Services revenue was $76.7 million, up 21 percent when compared to a year ago.

Employer Services revenue was $46.5 million, flat when compared to a year ago.

Operating margin for Workforce Solutions was 31.1 percent in the second quarter of 2013 compared to 24.2 percent in the second quarter of 2012.

North America Personal Solutions

Revenue was $51.5 million, a 12 percent increase from the second quarter of 2012. Operating margin was 27.6 percent compared to 26.8 percent in the second quarter of 2012.

North America Commercial Solutions

Revenue was $22.7 million, up 12 percent in U.S. dollars and local currency compared to the second quarter of 2012. Operating margin was 16.8 percent compared to 14.0 percent in the second quarter of 2012.

Full Year 2013 Outlook

Based on the current level of domestic and international business activity, current foreign exchange rates, and the previously anticipated slowdown in mortgage activity in the second half of 2013, consolidated revenue growth for the full year of 2013 is expected to be in the middle of our 10 percent to 12 percent guidance range and full year 2013 Adjusted EPS growth is expected to be in the top half of our 21 percent to 24 percent guidance range. We also expect operating margin for the full year to be between 26 percent and 27 percent.

About Equifax

Equifax is a global leader in consumer, commercial and workforce information solutions, that provides businesses of all sizes and consumers with insight and information they can trust. Equifax organizes and assimilates data on more than 500 million consumers and 81 million businesses worldwide, and uses advanced analytics and proprietary technology to create and deliver customized insights that enrich both the performance of businesses and the lives of consumers.

Headquartered in Atlanta, Equifax operates or has investments in 18 countries and is a member of Standard & Poor’s (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. For more information, please visit www.equifax.com.

Earnings Conference Call and Audio Webcast

In conjunction with this release, Equifax will host a conference call tomorrow, July 25, 2013, at 8:30 a.m. (EDT) via a live audio webcast. To access the webcast, go to the Investor Relations section of our website at www.equifax.com. The discussion will be available via replay at the same site shortly after the conclusion of the webcast. This press release is also available at that website.

Non-GAAP Financial Measures

This earnings release presents net income and diluted EPS from continuing operations attributable to Equifax which excludes acquisition-related amortization expense, net of tax. These are important financial measures for Equifax but are not financial measures as defined by GAAP.

These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of operating revenue or EPS as determined in accordance with GAAP.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented in the Q&A. This information can also be found under “Investor Relations/GAAP/Non-GAAP Measures” on our website at www.equifax.com.

Forward-Looking Statements

This release contains forward-looking statements or forward-looking information. These statements can be identified by expressions of belief, expectation or intention, as well as statements that are not historical fact. These statements are based on certain factors and assumptions including with respect to foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities and effective tax rates. While the company believes these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.

Several factors could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to actions taken by us, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), as well as from developments beyond our control, including, but not limited to, changes in worldwide and U.S. economic conditions that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services. Other risk factors include our ability to successfully develop and market new products and services, respond to pricing and other competitive pressures, complete and integrate acquisitions and other investments and achieve targeted cost efficiencies; risks relating to illegal third party efforts to access data; changes in, and the effects of, laws and regulations and government policies governing our business, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the establishment in 2011 of the Consumer Financial Protection Bureau, a federal agency that holds primary responsibility for the regulation of consumer protection with respect to financial products and services in the U.S.; federal or state responses to identity theft concerns; adverse or uncertain economic conditions and changes in credit and financial markets; the European sovereign debt crisis; the 2012 downgrade of U.S. sovereign debt and political concerns over related budgetary matters; exchange rates; timing and amount of capital expenditures; changes in capital markets and corresponding effects on the company’s investments and benefit plan obligations; earnings exchange rates and the decisions of taxing authorities, all of which could affect our effective tax rates; and potential adverse developments in new and pending legal proceedings or government investigations, including investigations or examinations undertaken by the Consumer Financial Protection Bureau. A summary of additional risks and uncertainties can be found in our Annual Report on Form 10-K for the year ended December 31, 2012, including without limitation under the captions “Item 1. Business — Information Security and Government Regulation” and “— Forward-Looking Statements” and “Item 1A, Risk Factors,” and in our other filings with the U.S. Securities and Exchange Commission. Forward-looking statements are given only as at the date of this release and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	June 30,
	2013			2012
(In millions, except per share amounts)	(Unaudited)
Operating revenue	$	586.9		$	513.3
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		198.2			187.2
Selling, general and administrative expenses		186.5			156.8
Depreciation and amortization		44.1			40.3
Total operating expenses		428.8			384.3
Operating income		158.1			129.0
Interest expense		(17.6	)		(13.7	)
Other income, net		3.5			2.2
Consolidated income before income taxes		144.0			117.5
Provision for income taxes		(51.7	)		(41.0	)
Consolidated income from continuing operations		92.3			76.5
Discontinued operations, net of tax		-			2.3
Consolidated net income		92.3			78.8
Less: Net income attributable to noncontrolling interests		(1.8	)		(2.4	)
Net income attributable to Equifax	$	90.5		$	76.4
Amounts attributable to Equifax:
Income from continuing operations attributable to Equifax	$	90.5		$	74.1
Discontinued operations, net of tax		-			2.3
Net income	$	90.5		$	76.4
Basic earnings per common share:
Income from continuing operations attributable to Equifax	$	0.75		$	0.61
Discontinued operations attributable to Equifax		-			0.02
Net income attributable to Equifax	$	0.75		$	0.63
Weighted-average shares used in computing basic earnings per share		121.0			120.3
Diluted earnings per common share:
Income from continuing operations attributable to Equifax	$	0.73		$	0.60
Discontinued operations attributable to Equifax		-			0.02
Net income attributable to Equifax	$	0.73		$	0.62
Weighted-average shares used in computing diluted earnings per share		123.6			122.8
Dividends per common share	$	0.22		$	0.18

EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

	Six Months Ended
	June 30,
	2013			2012
(In millions, except per share amounts)	(Unaudited)
Operating revenue	$	1,153.4		$	1,019.2
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		393.3			374.6
Selling, general and administrative expenses		361.0			306.6
Depreciation and amortization		92.0			80.7
Total operating expenses		846.3			761.9
Operating income		307.1			257.3
Interest expense		(35.3	)		(27.5	)
Other income, net		3.6			3.5
Consolidated income from continuing operations before income taxes		275.4			233.3
Provision for income taxes		(98.9	)		(83.5	)
Consolidated income from continuing operations		176.5			149.8
Discontinued operations, net of tax		19.0			2.7
Consolidated net income		195.5			152.5
Less: Net income attributable to noncontrolling interests		(3.9	)		(4.6	)
Net income attributable to Equifax	$	191.6		$	147.9
Amounts attributable to Equifax:
Income from continuing operations attributable to Equifax	$	172.6		$	145.2
Discontinued operations, net of tax		19.0			2.7
Net income	$	191.6		$	147.9
Basic earnings per common share:
Income from continuing operations attributable to Equifax	$	1.43		$	1.21
Discontinued operations attributable to Equifax		0.16			0.02
Net income attributable to Equifax	$	1.59		$	1.23
Weighted-average shares used in computing basic earnings per share		120.7			120.1
Diluted earnings per common share:
Income from continuing operations attributable to Equifax	$	1.40		$	1.18
Discontinued operations attributable to Equifax		0.15			0.02
Net income attributable to Equifax	$	1.55		$	1.21
Weighted-average shares used in computing diluted earnings per share		123.4			122.6
Dividends per common share	$	0.44		$	0.36

EQUIFAX

CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
	2013			2012

(In millions, except par values)	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	104.9		$	146.8
Trade accounts receivable, net of allowance for doubtful accounts of $6.7 and $6.3 at June 30, 2013 and December 31, 2012, respectively		318.5			317.0
Prepaid expenses		33.9			26.2
Other current assets		55.3			39.7
Total current assets		512.6			529.7
Property and equipment:
Capitalized internal-use software and system costs		380.1			369.9
Data processing equipment and furniture		193.9			198.4
Land, buildings and improvements		179.8			177.0
Total property and equipment		753.8			745.3
Less accumulated depreciation and amortization		(474.5	)		(461.6	)
Total property and equipment, net		279.3			283.7
Goodwill		2,248.3			2,290.4
Indefinite-lived intangible assets		254.3			254.5
Purchased intangible assets, net		918.4			987.7
Other assets, net		160.7			165.1
Total assets	$	4,373.6		$	4,511.1

LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	$	76.5		$	283.3
Accounts payable		17.8			25.1
Accrued expenses		83.8			84.9
Accrued salaries and bonuses		61.9			104.7
Deferred revenue		57.1			57.9
Other current liabilities		78.7			90.6
Total current liabilities		375.8			646.5
Long-term debt		1,429.1			1,447.4
Deferred income tax liabilities, net		220.9			227.7
Long-term pension and other postretirement benefit liabilities		174.5			176.3
Other long-term liabilities		53.3			54.0
Total liabilities		2,253.6			2,551.9
Equifax shareholders' equity:
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares – none		-			-
Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at June 30, 2013 and December 31, 2012; Outstanding shares - 121.3 and 120.4 at June 30, 2013 and December 31, 2012, respectively		236.6			236.6
Paid-in capital		1,156.4			1,139.6
Retained earnings		3,202.8			3,064.6
Accumulated other comprehensive loss		(379.8	)		(362.0	)
Treasury stock, at cost, 67.4 shares and 68.3 shares at June 30, 2013 and December 31, 2012, respectively		(2,113.8	)		(2,139.7	)
Stock held by employee benefits trusts, at cost, 0.6 shares at June 30, 2013 and December 31, 2012, respectively		(5.9	)		(5.9	)
Total Equifax shareholders' equity		2,096.3			1,933.2
Noncontrolling interests		23.7			26.0
Total equity		2,120.0			1,959.2
Total liabilities and equity	$	4,373.6		$	4,511.1

EQUIFAX

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended
	June 30,
	2013			2012
(In millions)	(Unaudited)
Operating activities:
Consolidated net income	$	195.5		$	152.5
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Gain on divestitures		(19.0	)		-
Depreciation and amortization		92.3			82.4
Stock-based compensation expense		16.7			15.0
Excess tax benefits from stock-based compensation plans		(7.6	)		(3.6	)
Deferred income taxes		(7.5	)		(0.8	)
Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net		(14.5	)		(9.8	)
Prepaid expenses and other current assets		(3.9	)		(9.9	)
Other assets		4.6			0.9
Current liabilities, excluding debt		(57.2	)		(28.5	)
Other long-term liabilities, excluding debt		7.4			(0.9	)
Cash provided by operating activities		206.8			197.3
Investing activities:
Capital expenditures		(36.2	)		(34.5	)
Cash received from divestitures		47.5			2.5
Investment in unconsolidated affiliates, net		(6.4	)		(3.6	)
Cash provided by (used in) investing activities		4.9			(35.6	)
Financing activities:
Net short-term repayments		(206.6	)		(31.6	)
Payments on long-term debt		(15.0	)		(15.1	)
Treasury stock purchases		-			(51.1	)
Dividends paid to Equifax shareholders		(53.2	)		(43.1	)
Dividends paid to noncontrolling interests		(3.9	)		(1.4	)
Proceeds from exercise of stock options		24.3			33.3
Excess tax benefits from stock-based compensation plans		7.6			3.6
Other		(0.6	)		(0.4	)
Cash used in financing activities		(247.4	)		(105.8	)
Effect of foreign currency exchange rates on cash and cash equivalents		(6.2	)		(0.5	)
Increase (decrease) in cash and cash equivalents		(41.9	)		55.4
Cash and cash equivalents, beginning of period		146.8			127.7
Cash and cash equivalents, end of period	$	104.9		$	183.1

Common Questions & Answers (Unaudited)

(Dollars in millions)

Can you provide a further analysis of operating revenue and operating income by operating segment?

Operating revenue and operating income consist of the following components:

(in millions)	Three Months Ended June 30,
										Local Currency
Operating revenue:	2013		2012		$ Change		% Change			% Change*
Online Consumer Information Solutions	$	184.8	$	157.9	$	26.9		17	%
Mortgage Solutions		32.5		23.6		8.9		38	%
Consumer Financial Marketing Services		42.4		36.1		6.3		17	%
Total U.S. Consumer Information Solutions		259.7		217.6		42.1		19	%
Latin America		48.6		46.3		2.3		5	%		11	%
Europe		47.1		41.3		5.8		14	%		16	%
Canada Consumer		34.1		31.9		2.2		7	%		9	%
Total International		129.8		119.5		10.3		9	%		12	%
Verification Services		76.7		63.3		13.4		21	%
Employer Services		46.5		46.4		0.1		0	%
Total Workforce Solutions		123.2		109.7		13.5		12	%
North America Personal Solutions		51.5		46.2		5.3		12	%
North America Commercial Solutions		22.7		20.3		2.4		12	%		12	%
Total operating revenue	$	586.9	$	513.3	$	73.6		14	%		15	%

(in millions)	Six Months Ended June 30,
										Local Currency
Operating revenue:	2013		2012		$ Change		% Change			% Change*
Online Consumer Information Solutions	$	360.4	$	311.8	$	48.6		16	%
Mortgage Solutions		62.1		45.9		16.2		35	%
Consumer Financial Marketing Services		82.3		70.2		12.1		17	%
Total U.S. Consumer Information Solutions		504.8		427.9		76.9		18	%
Latin America		95.1		92.8		2.3		3	%		7	%
Europe		91.7		84.4		7.3		9	%		10	%
Canada Consumer		66.7		63.3		3.4		5	%		7	%
Total International		253.5		240.5		13.0		5	%		8	%
Verification Services		145.5		120.1		25.4		21	%
Employer Services		101.4		98.5		2.9		3	%
Total Workforce Solutions		246.9		218.6		28.3		13	%
North America Personal Solutions		102.6		91.1		11.5		13	%
North America Commercial Solutions		45.6		41.1		4.5		11	%		11	%
Total operating revenue	$	1,153.4	$	1,019.2	$	134.2		13	%		14	%

(in millions)	Three Months Ended June 30,
				Operating						Operating
Operating income:	2013			Margin			2012			Margin			$ Change			% Change
U.S. Consumer Information Solutions	$	104.3			40.2	%	$	87.4			40.2	%	$	16.9			19	%
International		37.2			28.7	%		35.0			29.2	%		2.2			7	%
Workforce Solutions		38.3			31.1	%		26.6			24.2	%		11.7			44	%
North America Personal Solutions		14.2			27.6	%		12.4			26.8	%		1.8			15	%
North America Commercial Solutions		3.8			16.8	%		2.8			14.0	%		1.0			34	%
General Corporate Expense		(39.7	)		nm			(35.2	)		nm			(4.5	)		-13	%
Total operating income	$	158.1			26.9	%	$	129.0			25.1	%	$	29.1			23	%

(in millions)	Six Months Ended June 30,
				Operating						Operating
Operating income:	2013			Margin			2012			Margin			$ Change			% Change
U.S. Consumer Information Solutions	$	196.2			38.9	%	$	168.8			39.4	%	$	27.4			16	%
International		71.9			28.4	%		73.5			30.5	%		(1.6	)		-2	%
Workforce Solutions		75.7			30.7	%		52.8			24.2	%		22.9			43	%
North America Personal Solutions		28.7			28.0	%		23.7			26.0	%		5.0			21	%
North America Commercial Solutions		8.7			19.1	%		6.3			15.4	%		2.4			37	%
General Corporate Expense		(74.1	)		nm			(67.8	)		nm			(6.3	)		-9	%
Total operating income	$	307.1			26.6	%	$	257.3			25.2	%	$	49.8			19	%

nm - not meaningful

* Reflects percentage change in revenue conforming 2013 results using 2012 exchange rates.

Common Questions & Answers (Unaudited)

(Dollars in millions)

What were the revenue growth rates in USCIS excluding the CSC Credit Services acquisition?

	Q2 2013			YTD 2013
Online Consumer Information Solutions		4	%		2	%
Mortgage Solutions		17	%		14	%
Consumer Financial Marketing Services		5	%		5	%
U.S. Consumer Information Solutions		5	%		4	%

Can you provide depreciation and amortization by segment?

Depreciation and amortization are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
U.S. Consumer Information Solutions	$	18.1	$	10.6	$	36.4	$	21.3
International		6.1		6.1		12.1		12.4
Workforce Solutions		12.9		16.4		29.5		32.7
North America Personal Solutions		1.7		1.9		3.3		3.6
North America Commercial Solutions		1.0		1.2		2.1		2.4
General Corporate Expense		4.3		4.1		8.6		8.3
Total depreciation and amortization	$	44.1	$	40.3	$	92.0	$	80.7

What was the currency impact on the foreign operations?

The U.S. dollar impact on operating revenue and operating income is as follows:

	Three Months Ended June 30, 2013
	Operating Revenue						Operating Income
	Amount			%			Amount			%
Canada Consumer	$	(0.5	)		-2	%	$	(0.3	)		-2	%
Canada Commercial		(0.1	)		0	%		(0.1	)		-1	%
Europe		(0.8	)		-2	%		(0.2	)		-2	%
Latin America		(2.5	)		-6	%		(1.5	)		-8	%

	Six Months Ended June 30, 2013
	Operating Revenue						Operating Income
	Amount			%			Amount			%
Canada Consumer	$	(0.8	)		-2	%	$	(0.4	)		-1	%
Canada Commercial		(0.1	)		0	%		(0.1	)		-1	%
Europe		(1.1	)		-1	%		(0.4	)		-2	%
Latin America		(4.3	)		-4	%		(2.8	)		-7	%

Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures (Unaudited)

(Dollars in millions, except per share amounts)

Reconciliation of net income from continuing operations attributable to Equifax to diluted EPS from continuing operations attributable to Equifax, adjusted for acquisition-related amortization expense:

	Three Months Ended
	June 30,
	2013		2012		$ Change		% Change

Net income from continuing operations attributable to Equifax	$	90.5	$	74.1	$	16.4		22	%
Acquisition-related amortization expense, net of tax, and cash income tax benefit of acquisition-related amortization expense of certain acquired intangibles		22.9		13.9		9.0		65	%
Net income from continuing operations attributable to Equifax, adjusted for acquisition-related amortization expense	$	113.4	$	88.0	$	25.4		29	%
Diluted EPS from continuing operations attributable to Equifax, adjusted for acquisition-related amortization expense	$	0.92	$	0.72	$	0.20		28	%
Weighted-average shares used in computing diluted EPS		123.6		122.8

	Six Months Ended
	June 30,
	2013		2012		$ Change		% Change

Net income from continuing operations attributable to Equifax	$	172.6	$	145.2	$	27.4		19	%
Acquisition-related amortization expense, net of tax, and cash income tax benefit of acquisition-related amortization expense of certain acquired intangibles		48.4		27.8		20.6		74	%
Net income from continuing operations attributable to Equifax, adjusted for acquisition-related amortization expense	$	221.0	$	173.0	$	48.0		28	%
Diluted EPS from continuing operations attributable to Equifax, adjusted for acquisition-related amortization expense	$	1.79	$	1.41	$	0.38		27	%
Weighted-average shares used in computing diluted EPS		123.4		122.6

nm - not meaningful

Notes to Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures

Diluted EPS and net income from continuing operations attributable to Equifax, adjusted for acquisition-related amortization expense, net of tax - We calculate this financial measure by excluding the impact of acquisition-related amortization expense and including a benefit to reflect the material cash income tax savings resulting from the income tax deductibility of amortization for certain acquired intangibles. These financial measures are not prepared in conformity with GAAP. Management believes excluding the impact of amortization expense is useful because excluding acquisition-related amortization, and other items that are not comparable, allows investors to evaluate our performance for different periods on a more comparable basis. Certain acquired intangibles result in material cash income tax savings which are not reflected in earnings. Management believes that including a benefit to reflect the cash income tax savings is useful as it allows investors to better value Equifax. Management makes these adjustments to earnings when measuring operating profitability, evaluating performance trends, setting performance objectives and calculating our return on invested capital.