Non-GAAP Financial Measures

* Non-GAAP Financial Measures
Return on Capital (ROC)
Income from operations

Effective tax rate
Net operating profit after tax (NOPAT)
2008
$
40,149
33.6%
$
26,659
Year ended December 31,

2009
2010
2011
$
55,241
$
79,602
$ 123,471
35.1%
35.1%
34.4%
$
35,851
$
51,662
$
80,997
Net income
Total assets at period end

Less: Excess cash
Less: Accounts payable and accrued expenses
Less: Deferred revenue (current and non-current)
Less: Other non-current liabilities, deferred income taxes, and deferred rent
Capital base
(Dollars in thousands)
Average total assets

Average capital base
21,703
30,218
46,358
76,411
2012
172,741
37.3%
$ 108,309
105,418
685,261
(200,620)
(71,387)
(20,167)
(23,610)
$ 369,477
668,645
(105,083)
(89,773)
(19,444)
(42,615)
$ 411,730
761,577
(79,174)
(111,645)
(18,749)
(60,593)
$ 491,416
$ 1,026,482
(125,865)
(156,004)
(18,281)
(113,648)
$ 612,684
$ 1,295,551
(249,712)
(175,128)
(20,960)
(130,444)
$ 719,307
$
$
$
$
$
$
$
$
$ 1,158,384
$ 679,125
Return on assets (Net income/Average total assets)

Return on capital (NOPAT/Average capital base)
487,183
292,238
4.5%
9.1%
647,493
390,472
4.7%
9.2%
720,521
445,179
6.4%
11.6%
895,545
552,328
8.5%
14.7%
9.1%
15.9%
We define Return on Capital (ROC) as follows: ROC = Net operating profit after tax (NOPAT) / Average capital base
NOPAT = Income from operations x (1 Effective tax rate)
Average capital base = Average of (Interest bearing debt + stockholders equity - excess cash) = Average of (Total assets - excess cash - accounts
payable and accrued expenses - deferred revenue - other non-current liabilities, deferred income taxes, and deferred rent).
Year-to-date average balances are based on an average calculated using the quarter-end balances at the beginning of the period and all other quarter
ending balances included in the period.
Beginning in 2009, we define excess cash as the amount of cash and cash equivalents that exceeds our operating cash requirements, which, for this
period, is calculated as three percent of our annualized net revenue for the three months prior to the period end. For prior periods, we defined excess cash
as our investments in money market funds. We believe that ROC is an important metric for investors in evaluating our companys performance. ROC
relates after-tax operating profits with the capital that is placed into service. It is therefore a performance metric that incorporates both the Statement of
Comprehensive Income and the Balance Sheet. ROC measures how successfully capital is deployed within a company. Note that ROC is not a measure
of financial performance under accounting principles generally accepted in the United States (GAAP) and should not be considered a substitute for return
on assets, which we calculate directly from amounts on the Statement of Comprehensive Income and the Balance Sheet. ROC has limitations as an
analytical tool, and when assessing our operating performance, you should not consider ROC in isolation or as a substitute for other financial data
prepared in accordance with GAAP. Other companies may calculate ROC differently than we do, limiting its usefulness as a comparative measure.
Adjusted EBITDA and Adjusted EBITDA Margin
(Dollars in thousands)
Net revenue
Income from operations
Net income
Plus: Income taxes
Plus: Total other (income) expense
Plus: Depreciation and amortization
Plus: Share-based compensation expense
Adjusted EBITDA
Operating income margin
Adjusted EBITDA margin
2008
$ 531,933
$
40,149
Year Ended December 31,

2009
2010
2011
$ 628,987
$ 780,555
$ 1,025,064
$
55,241
$
79,602
$ 123,471
2012
$ 1,309,239
$ 172,741
21,703
10,985
7,461
90,172
15,017
145,338
7.5%
27.3%
30,218
16,328
8,695
125,229
20,124
200,594
8.8%
31.9%
46,358
25,053
8,191
155,895
26,624
262,121
10.2%
33.6%
76,411
40,018
7,042
195,412
28,773
347,656
12.0%
33.9%
105,418
62,589
4,734
249,845
41,546
464,132
13.2%
35.5%
We define Adjusted EBITDA as Net income, plus income taxes, total other (income) expense, depreciation and amortization, and non-cash charges
for share-based compensation. Adjusted EBITDA is a metric that is used in our industry by the investment community for comparative and valuation
purposes. We disclose this metric in order to support and facilitate the dialogue with research analysts and investors. Note that Adjusted EBITDA is not a
measure of financial performance under GAAP and should not be considered a substitute for operating income, which we consider to be the most directly
comparable GAAP measure. Adjusted EBITDA has limitations as an analytical tool, and when assessing our operating performance, you should not
consider Adjusted EBITDA in isolation or as a substitute for net income or other consolidated income statement data prepared in accordance with
GAAP. Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

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Non-GAAP Financial Measures

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* Non-GAAP Financial Measures

Return on Capital (ROC)

Income from operations

Year ended December 31,

Total assets at period end

Average total assets

Return on assets (Net income/Average total assets)

Adjusted EBITDA and Adjusted EBITDA Margin

Year Ended December 31,

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