Equifax 2001 Annual Report Download - page 44

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In 2000, in addition to the businesses above,
the Company acquired the credit files of 12
credit affiliates located in the United States and
14 affiliates in Canada. All of the 2000 acquisi-
tions were accounted for as purchases and had
an aggregate purchase price of $348.4 million,
with $218.1 million allocated to goodwill and
$78.8 million allocated to purchased data files.
They were purchased with a combination of
cash totaling $334.8 million, the re-issuance
of treasury stock with a fair market value of
$10.6 million, and notes payable of $3.0 million.
Their results of operations have been included
in the consolidated statements of income from
the dates of acquisition and were not material.
In 1999, the Company acquired the credit files
of 14 credit affiliates located in the United
States and three credit affiliates in Canada.
They were accounted for as purchases and had
an aggregate purchase price of $24.2 million,
with $7.5 million allocated to goodwill and
$16.0 million allocated to purchased data files.
Their results of operations have been included
in the consolidated statements of income from
the dates of acquisition and were not material.
4.
Divestitures
In October 2001, the Company sold its City
Directory business which had been acquired
from R.L. Polk & Co. in May 2000. The resulting
pre-tax loss of $5.8 million ($4.9 million after
tax, or $0.035 per share) was recorded in the
consolidated statement of income as a charge
to other income in September 2001.
In October 2000, the Company sold its risk man-
agement businesses located in the U.S., Canada,
and the U.K., and in December 2000, sold its
vehicle information business in the U.K., as well
as a direct marketing business in Canada that
was a small component of the CIS group
acquired earlier in the year from R.L. Polk & Co.
Proceeds from these sales included cash of
$149.2 million (net of cash sold) and a $41 million
note receivable from one of the buyers, and
resulted in a pre-tax loss of $4.2 million recorded
in other income. Approximately $25.5 million of
the proceeds received in the U.S. and Canadian
risk management sales related to exclusive
contracts to provide the buyers with credit infor-
mation products and services over several years,
and was recorded in current and long-term
deferred revenue. In conjunction with the U.S.
risk management sale, the Company guaran-
teed approximately $60 million of the buyer’s
third-party acquisition financing which related
to a portfolio of purchased paper. Since this pur-
chased paper financing was entirely guaranteed
by the Company, the amount guaranteed has
been recorded in other assets and other long-
term liabilities in the accompanying consolidated
balance sheets. These corresponding asset and
liability balances will be reduced as the buyer
makes principal payments on their loan and the
Company’s guarantee is reduced. The balances
totaled $59.1 million at December 31, 2000, and
$31.2 million at December 31, 2001.
In June 1999, the Company sold three risk
management offices located in the U.S. Proceeds
from these sales totaled $8.1 million and resulted
in a gain of $4.1 million recorded in other income
($1.7 million after tax, or $.01 per share).
During 2000, the Company acquired or increased its ownership in the following businesses:
Month Industry Percentage
Business Acquired Segment Ownership
Organizacion Veraz S.A. (Argentina) December Latin America 79.5%1
SEK S.r.l. and AIF Gruppo Securitas S.r.l. (Italy) November Europe 100.0%
Compliance Data Center, Inc. October North America 100.0%
Consumer Information Solutions (CIS)
Group of R.L. Polk & Co. May North America 100.0%
Propago, S.A. (Chile) January Latin America 100.0%
1Increased to 79.5% from 66.7% acquired in 1997 and 1994