Equifax 2006 Annual Report Download - page 84

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
82 EQUIFAX 2006 ANNUAL REPORT
Financial information by geographic area is as follows:
Twelve Months Ended December 31,
2006 2005 2004
(In millions) Amount % Amount % Amount %
Operating Revenue (based on location of customer)
U.S. $1,120.5 72% $1,063.9 73% $ 940.3 74%
Canada 1 18.2 8% 110.8 8% 99.0 8%
U.K. 135.0 9% 124.3 9% 124.3 10%
Brazil 78.0 5% 67.4 5% 47.3 4%
Other 94.6 6% 77.0 5% 61.9 5%
Total operating revenue $1,546.3 100% $1,443.4 100% $1,272.8 100%*
*Does not total due to rounding
December 31,
2006 2005
(In millions)
Amount % Amount %
Long-Lived assets
U.S. $ 898.3 62% $1,104.4 71%
Canada 114.6 8% 129.8 8%
U.K. 126.8 9% 111.8 7%
Brazil 141.5 10% 131.8 9%
Other 164.2 11% 73.3 5%
Total long-lived assets $1,445.4 100% $1,551.1 100%
15.
SUBSEQUENT EVENTS (UNAUDITED)
Organizational Realignment. Effective January 1, 2007, we
implemented certain organizational changes as result of a
strategic review of our business. The changes to our internal
structure changed our operating segments to the following:
U.S. Consumer Information Solutions, North America
Personal Solutions, North America Commercial Solutions
and International. U.S. Consumer Information Solutions
consists of the former Marketing Services and North
America Information Services, excluding U.S. Commercial
Services and Canada. North America Commercial Solutions
represents our former commercial business for the U.S. and
Canada that was within North America Information Services
as well as our October 2006 acquisition of Austin-Tetra.
International consists of our consumer business in Canada
and all of our businesses in Europe and Latin America.
North America Personal Solutions remains unchanged. We
will present our fi nancial results under this new organiza-
tional structure in our quarterly report for the period ending
March 31, 2007. Our fi nancial results for all periods pre-
sented are stated under the prior organizational structure
since that is how the Company was managed during all
periods presented.
As a result of the change in operating segments, our
reporting units under which we test goodwill for impairment
in accordance with SFAS 142 have also changed. During the
fi rst quarter of 2007, we will reallocate the goodwill associ-
ated with our previous reporting units in accordance with
SFAS 142 to our new reporting units. We are currently in the
process of testing the goodwill related to our new reporting
units for impairment.
TALX Acquisition. On February 14, 2007, we agreed to
acquire TALX Corporation (“TALX”), a leading provider of
workplace verifi cation information and employment ser-
vices, in a transaction valued at approximately $1.4 billion,
including the assumption of debt, based on the $41.91 per
share closing price of Equifax stock on February 14, 2007.
The acquisition of TALX equity is structured to consist of
75% Equifax stock and 25% cash, together valued at approx-
imately $1.2 billion. TALX shareholders may elect to receive
for each share of TALX stock either a fi xed exchange ratio of
.861 shares of Equifax stock, $35.50 in cash or a combination
of stock and cash equivalent value, subject to proration to
achieve the 75% Equifax common stock and 25% cash
consideration described above. In the aggregate, upon the
closing of the acquisition, we will issue approximately 22
million shares of Equifax stock and pay approximately $300
million in cash for the stock of TALX. We also will assume
TALX’s outstanding debt, which was $191.5 million at
December 31, 2006. We plan to fi nance the acquisition with
cash provided by operating activities and borrowings under
our senior revolving credit facility, of which no amounts
were outstanding at February 14, 2007. The transaction has
been approved by the Board of Directors of each company
and also must be approved by the stockholders of TALX.
The transaction is also subject to review by regulatory