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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
64 EQUIFAX 2006 ANNUAL REPORT
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, in accordance with SFAS 142, 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 impairment tests as of September 30th. Our
annual impairment tests as of September 30, 2006, 2005 and 2004 resulted in no impairment of goodwill.
Goodwill allocated to our reportable segments at December 31, 2004 and changes in the carrying amount of goodwill
during the twelve months ended December 31, 2006 and 2005, are as follows:
North American European Latin American
(In millions) Operations Operations Operations Corporate Total
Balance, December 31, 2004 $453.0 $117.6 $134.2 $5.9 $710.7
Acquisitions 66.3 – – – 66.3
Adjustments to initial purchase price allocation 3.2 – 5.5 – 8.7
Foreign currency translation 1.6 (12.2) 16.1 – 5.5
Balance, December 31, 2005 524.1 105.4 155.8 5.9 791.2
Acquisitions 28.2 – – – 28.2
Adjustments to initial purchase price allocation (0.2) – – – (0.2)
Foreign currency translation – 14.3 8.5 – 22.8
Balance, December 31, 2006 $552.1 $119.7 $164.3 $5.9 $842.0
Indefi nite-Lived Intangible Assets. Indefi nite-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, in accordance with
SFAS 142, we are required to test indefi nite-lived intangible
assets for impairment annually and whenever events or
circumstances indicate that there may be an impairment
of the asset value. We perform our annual indefi nite-lived
intangible asset impairment test as of September 30th.
Our annual impairment test as of September 30, 2006,
2005 and 2004 resulted in no impairment of our indefi -
nite-lived intangible assets.
Contractual/territorial rights at December 31, 2004 and
changes in the carrying amounts during the twelve months
ended December 31, 2006 and 2005 are as follows:
(In millions) Amount
Balance, December 31, 2004 $77.8
Acquisitions 17.2
Balance, December 31, 2005 95.0
Foreign currency translation 0.2
Balance, December 31, 2006 $95.2