Equifax 2010 Annual Report Download - page 51

The primary reasons the purchase price of certain of these acquisitions exceeded the fair value of the net assets acquired, which resulted in
the recognition of goodwill, were expanded growth opportunities from new or enhanced product offerings, cost savings from the elimination of
duplicative activities, and the acquisition of intellectual property and workforce that are not recognized as assets apart from goodwill.
December 31,
2010 2009
Intangible asset category Fair value
Weighted-average
useful life Fair value
Weighted-average
useful life
(in millions) (in years) (in millions) (in years)
Customer relationships $11.5 8.9 $61.7 13.2
Proprietary database ——7.4 5.9
Acquired software and technology 13.9 5.9 7.1 5.6
Non-compete agreements 3.8 3.7 2.2 5.0
Trade names and other intangible assets 1.4 5.8 5.5 8.1
Total acquired intangibles $30.6 6.8 $83.9 11.4
The 2010 and 2009 acquisitions did not have a material impact in the Company’s Consolidated Statement of Income. The impact of the 2010
and 2009 acquisitions would not have significantly changed our Consolidated Statements of Income if they had occurred at the beginning of
the earliest year presented.
4. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill. Goodwill represents the cost in excess of the fair value of
the net assets acquired in a business combination. As discussed in
Note 1, goodwill is tested for impairment at the reporting unit level on
an annual basis and on an interim basis if an event occurs or
circumstances change that would reduce the fair value of a reporting
unit below its carrying value. We perform our annual goodwill impair-
ment tests as of September 30 each year. The fair value estimates for
our reporting units were determined using a combination of the
income and market approaches in accordance with the Company’s
methodology. Our annual impairment tests as of September 30,
2010, 2009 and 2008 resulted in no impairment of goodwill.
Changes in the amount of goodwill for the twelve months ended December 31, 2010 and 2009, are as follows:
(In millions)
U.S. Consumer
Information
Solutions International TALX
North America
Personal
Solutions
North America
Commercial
Solutions Total
Balance, December 31, 2008 $589.9 $275.3 $856.5 $1.8 $36.5 $1,760.0
Acquisitions 78.4 — 38.3 — — 116.7
Adjustments to initial purchase
price allocation (0.5) 0.1 6.0 — — 5.6
Foreign currency translation — 60.3 — — 0.8 61.1
Tax benefits of options exercised — — (0.2) — — (0.2)
Balance, December 31, 2009 $667.8 $335.7 $900.6 $1.8 $37.3 $1,943.2
Acquisitions 41.0 6.5 — — — 47.5
Adjustments to initial purchase
price allocation (0.8) — (0.7) — — (1.5)
Foreign currency translation — 4.7 — — 0.3 5.0
Businesses sold (79.5) — — — — (79.5)
Balance, December 31, 2010 $628.5 $346.9 $899.9 $1.8 $37.6 $1,914.7
Indefinite-Lived Intangible Assets. Indefinite-lived intangible assets
consist of contractual/territorial rights representing the estimated fair
value of rights to operate in certain territories acquired through the
purchase of independent credit reporting agencies in the U.S. and
Canada. Our contractual/territorial rights are perpetual in nature and,
therefore, the useful lives are considered indefinite. Indefinite-lived
intangible assets are not amortized. As discussed in Note 1, we are
required to test indefinite-lived intangible assets for impairment annu-
ally and whenever events or circumstances indicate that there may be
an impairment of the asset value. We perform our annual indefinite-
lived intangible asset impairment test as of September 30 each year.
Our annual impairment tests as of September 30, 2010, 2009 and
2008 resulted in no impairment of our indefinite-lived intangible
assets. Our contractual/territorial rights carrying amounts did not
change materially during the twelve months ended December 31,
2010 and 2009.
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