Equifax 2009 Annual Report Download - page 62

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
Components of the deferred income tax assets and liabilities at We record deferred income taxes on the temporary differences of
December 31, 2009 and 2008, were as follows: our foreign subsidiaries and branches, except for the temporary dif-
ferences related to undistributed earnings of subsidiaries which we
consider indefinitely invested. We have indefinitely invested
December 31, $85.7 million attributable to pre-2004 undistributed earnings of our
(In millions) 2009 2008 Canadian and Chilean subsidiaries. If the pre-2004 earnings were
Deferred income tax assets: not considered indefinitely invested, $6.4 million of deferred U.S.
income taxes would have been provided. Such taxes, if ultimately
Employee pension benefits $ 124.1 $ 118.9 paid, may be recoverable as U.S. foreign tax credits.
Net operating and capital loss
carryforwards 44.8 37.4 As of December 31, 2009, we had a deferred tax asset of
Unrealized foreign exchange loss 27.4 55.9 $27.4 million related to accumulated foreign currency translation
losses for foreign locations, excluding adjustments for pre-2004
Foreign tax credits 20.8 11.2
Canadian and Chilean earnings. A full valuation allowance, included
Employee compensation programs 33.6 28.5 in accumulated other comprehensive loss, has been provided due
Reserves and accrued expenses 12.5 14.6 to uncertainty of future realization of this deferred tax asset.
Deferred revenue 9.2 9.1
At December 31, 2009, we had U.S. federal and state net operating
Other 9.2 9.5
loss carryforwards of $73.9 million which will expire at various times
Gross deferred income tax assets 281.6 285.1 between 2012 and 2029. We also had foreign net operating loss
Valuation allowance (59.1) (93.7) carryforwards totaling $97.7 million of which $44.4 million will expire
between 2013 and 2017 and the remaining $53.3 million will car-
Total deferred income tax assets, net $ 222.5 $ 191.4
ryforward indefinitely. U.S. federal and state capital loss carryfor-
Deferred income tax liabilities: wards total $1.6 million at December 31, 2009, all of which will
Goodwill and intangible assets (330.5) (298.3) expire by 2011. Foreign capital loss carryforwards of $21.0 million
may be carried forward indefinitely. Additionally, we had foreign tax
Pension expense (94.2) (79.9)
credit carryforwards of $20.8 million, of which $3.2 million will begin
Undistributed earnings of foreign to expire between 2010 and 2015 and the remaining $17.6 million
subsidiaries (18.9) (7.7) will be available to be utilized upon repatriation of foreign earnings.
Depreciation (8.6) (4.0) We also had state credit carryforwards of $1.5 million which will
begin expiring in 2017. Tax-effected state and foreign net operating
Other (5.1) (7.0)
losses and capital losses of $31.7 million have been fully reserved in
Total deferred income tax liability (457.3) (396.9) the deferred tax asset valuation allowance.
Net deferred income tax liability $ (234.8) $ (205.5)
Cash paid for income taxes, net of amounts refunded, was
$103.2 million, $128.7 million and $139.9 million during the twelve
Our deferred income tax assets, included in other current assets,
months ended December 31, 2009, 2008 and 2007, respectively.
and liabilities at December 31, 2009 and 2008, are included in the
accompanying Consolidated Balance Sheets as follows:
We recognize interest and penalties accrued related to unrecognized
tax benefits in the provision for income taxes on our Consolidated
December 31,
Statements of Income.
(In millions) 2009 2008
Current deferred income tax assets,
included in other current assets $ 14.5 $ 9.8
Long-term deferred income tax liabilities (249.3) (215.3)
Net deferred income tax liability $ (234.8) $ (205.5)
60 EQUIFAX 2009 ANNUAL REPORT
11943 Equifax_Financials.indd 60 3/4/10 4:21 PM