Equifax 2007 Annual Report Download - page 74

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
72 EQUIFAX | 2007 ANNUAL REPORT
The aggregate intrinsic value amounts in the table above
represent the difference between the closing price of Equifax’s
common stock on December 31, 2007 and the exercise price,
multiplied by the number of in-the-money stock options as of the
same date. This represents the amount that would have been received
by the stock option holders if they had all exercised their stock
options on December 31, 2007. In future periods, this amount will
change depending on fl uctuations in Equifax’s stock price. The total
intrinsic value of stock options exercised during the twelve months
ended December 31, 2007 was $48.6 million. At December 31,
2007, our total unrecognized compensation cost related to stock
options was $4.3 million with a weighted-average recognition
period of 1.0 years.
The following table summarizes changes in outstanding options and the related weighted-average exercise price per share for the
twelve months ended December 31, 2006 and 2005:
December 31,
2006 2005
(Shares in thousands) Shares Average Price Shares Average Price
Outstanding at the beginning of the year 6,453 $22.68 9,484 $20.76
Granted (all at market price) 825 $36.56 745 $30.99
Cancelled (50) $29.36 (89) $25.06
Exercised (1,298) $20.92 (3,687) $33.78
Outstanding at the end of the year 5,930 $24.95 6,453 $22.68
Exercisable at end of year 4,798 $23.03 5,309 $21.72
Nonvested Stock.
Our plan also provides for awards of nonvested shares of our
common stock that can be granted to executive offi cers, employees
and directors. Nonvested stock awards are generally subject to cliff
vesting over a period between three to fi ve years based on service.
The fair value of nonvested stock is based on the fair market
value of our common stock on the date of grant. However, since
our nonvested stock does not pay dividends during the vesting
period, the fair value on the date of grant is reduced by the present
value of the expected dividends over the requisite service period
(discounted using the appropriate risk-free interest rate upon the
adoption of SFAS 123R).
The following table summarizes changes in our nonvested stock
during the twelve months ended December 31, 2007 and the related
weighted-average grant date fair value:
Weighted-Average
Grant Date
Shares Fair Value
(in thousands)
Nonvested at December 31, 2006 811 $31.64
Granted 297 $40.49
Vested (257) $40.29
Forfeited (28) $34.29
Nonvested at December 31, 2007 823 $38.33
The total fair value of nonvested stock that vested during the
twelve months ended December 31, 2007 was $10.4 million,
based on the weighted-average fair value on the vesting date, and
$7.3 million, based on the weighted-average fair value on the date
of grant. At December 31, 2007, our total unrecognized compen-
sation cost related to nonvested stock was $12.7 million with a
weighted-average recognition period of 1.8 years.
The following table summarizes information about nonvested
stock grants for the twelve months ended December 31, 2006
and 2005:
Year Number of Shares Average Fair Value
(in thousands)
2006 Grants 271 $36.97
Cancellations (16) $27.90
2005 Grants 290 $32.28
Cancellations (15) $29.12
We expect to issue new shares of common stock or common
shares held by our employee benefi ts trust upon the exercise of
stock options or once nonvested shares vest. We have not changed
our policies related to stock-based awards, such as the quantity
or type of instruments issued, as a result of adopting SFAS 123R,
nor have we changed the terms of our stock-based awards. At
December 31, 2007, there were 5.6 million shares available for
future stock option grants and nonvested stock awards.