Equifax 2007 Annual Report Download - page 41

EQUIFAX | 2007 ANNUAL REPORT 39
The results of TALX’s operations are included in our
Consolidated Financial Statements beginning on May 15, 2007.
TALX generated $179.4 million in revenue from May 15, 2007
through December 31, 2007. Of this amount, The Work Number
business represented $72.6 million in revenue, or 40% of total
TALX revenue, while the Tax and Talent Management business
generated 60%, or $106.8 million in revenue. Operating margin
was 16.3% for the period. TALX acquisition-related amortization
expense was $34.0 million for the period, or 19% of revenue, which
negatively impacted operating margin.
GENERAL CORPORATE EXPENSE
Twelve Months Ended December 31, Change
2007 vs. 2006 2006 vs. 2005
(Dollars in millions) 2007 2006 2005 $ % $ %
General corporate expense $113.7 $101.2 $88.9 $12.5 12% $12.3 14%
nm - not meaningful
Our general corporate expenses are costs that are incurred at
the corporate level and are not directly associated with activities
of a particular operating segment. These expenses include shared
services, administrative, legal and equity compensation costs. The
2007 increase in general corporate expense was primarily driven
by our acquisition of TALX; higher costs of litigation; expansion
of corporate capabilities in key support areas, including marketing;
and expenditures to enhance certain technology processes and
development capabilities, to support continued long-term growth
and operating effi ciency.
The 2006 increase in general corporate expense was primarily
driven by the $7.6 million incremental negative impact from our
adoption of SFAS 123R; the $6.4 million severance charge related
to the organizational realignment; the $3.2 million negative impact
from the retirement of two executive offi cers during 2006; plus
normal growth in ongoing corporate expenses due to infl ation.
The 2006 increase was partially offset by higher salary and
incentive costs during 2005 related to our transition to a new
chief executive offi cer.
LIQUIDITY AND FINANCIAL CONDITION
Our ability to generate cash from operating activities is one of our
fundamental fi nancial strengths. This allows us to fund various
investment opportunities, reduce existing debt balances, and increase
value to shareholders in the form of dividends and share repurchases.
In the event additional liquidity needs arise, we may raise funds
from a combination of sources, including the potential issuance
of debt or equity securities.
TALX
Twelve Months Ended December 31, Change
2007 vs. 2006 2006 vs. 2005
(Dollars in millions) 2007 2006 2005 $ % $ %
Operating Revenue:
The Work Number $ 72.6 $ – $ – $ 72.6 nm nm nm
Tax and Talent Management 106.8 – – 106.8 nm nm nm
Total operating revenue $179.4 $ – $ – $179.4 nm nm nm
% of Consolidated Revenue 10% nm nm nm nm nm nm
Total operating income $ 29.3 $ – $ – $ 29.3 nm nm nm
Operating margin 16.3% nm nm nm nm nm nm
nm - not meaningful