(in millions)
Note: Adjusted EBITDA expenses are a non-GAAP measure.
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Operating expenses | $ | 470.2 | $ | 397.7 | $ | 1,910.2 | $ | 1,561.0 | |||||||
| Depreciation and amortization of fixed assets | (47.7 | ) | (43.7 | ) | (185.7 | ) | (165.3 | ) | |||||||
| Amortization of intangible assets | (37.9 | ) | (32.3 | ) | (138.0 | ) | (130.8 | ) | |||||||
| Investment (loss) income and others, net | 1.4 | 4.0 | 1.7 | (15.3 | ) | ||||||||||
| Litigation reserve | — | — | (125.0 | ) | — | ||||||||||
| Acquisition-related costs (earn-outs) | (28.0 | ) | (0.9 | ) | (74.0 | ) | (5.1 | ) | |||||||
| Loss from disposition | — | — | (6.2 | ) | — | ||||||||||
| Gain and interest income on subordinated promissory note receivable | — | — | — | 20.4 | |||||||||||
| Adjusted EBITDA expenses | $ | 358.0 | $ | 324.8 | $ | 1,383.0 | $ | 1,264.9 | |||||||
Diluted Adjusted EPS Reconciliation
(in millions, except per share amounts)
Note: Diluted adjusted EPS is a non-GAAP measure.
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net income | $ | 132.2 | $ | 146.2 | $ | 449.9 | $ | 598.7 | |||||||
| plus: Amortization of intangibles | 37.9 | 32.3 | 138.0 | 130.8 | |||||||||||
| less: Income tax effect on amortization of intangibles | (8.0 | ) | (6.7 | ) | (29.0 | ) | (27.5 | ) | |||||||
| plus: Litigation reserve | — | — | 125.0 | — | |||||||||||
| less: Income tax effect on litigation reserve | — | — | (29.9 | ) | — | ||||||||||
| plus: Acquisition-related costs and interest expense (earn-outs) | 28.2 | 2.2 | 75.1 | 6.4 | |||||||||||
| less: Income tax effect on acquisition-related costs and interest expense (earn-outs) | (1.9 | ) | — | (4.7 | ) | (1.2 | ) | ||||||||
| plus: Interest income and gain on subordinated promissory note receivable | — | — | — | (20.4 | ) | ||||||||||
| less: Income tax effect on interest income and gain on subordinated promissory note receivable | — | — | — | 4.8 | |||||||||||
| plus: Loss from disposition | — | — | 6.2 | — | |||||||||||
| less: Income tax on effect on loss from disposition | — | — | (1.5 | ) | — | ||||||||||
| Adjusted net income | $ | 188.4 | $ | 174.0 | $ | 729.1 | $ | 691.6 | |||||||
| Diluted EPS | $ | 0.80 | $ | 0.87 | $ | 2.70 | $ | 3.56 | |||||||
| Diluted adjusted EPS | $ | 1.13 | $ | 1.04 | $ | 4.38 | $ | 4.11 | |||||||
| Weighted-average diluted shares outstanding | 166.2 | 167.3 | 166.6 | 168.3 | |||||||||||
