Equifax 2008 Annual Report Download - page 48

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
In September 2006, the Financial Accounting Standards Assets’’, was issued. This FSP requires entities to disclose
Board, or FASB, ratified the consensus reached by the more information about pension asset valuations, invest-
Emerging Issues Task Force, or EITF, related to EITF Issue ment allocation decisions, and major categories of plan
No. 06-04, ‘‘Accounting for Deferred Compensation and assets. These disclosure requirements are effective for
Postretirement Benefit Aspects of Endorsement Split-Dollar years ending after December 15, 2009. We are currently
Life Insurance Arrangements,’’ or EITF 06-04, which evaluating the impact of adopting FSP 132(R)-1 on our
requires the recognition of a liability related to postretire- Consolidated Financial Statements.
ment benefits covered by endorsement split-dollar life
insurance arrangements since the employer has the obliga-
tion to provide the benefit to the employee. In March 2007, 2. ACQUISITIONS AND INVESTMENTS
the FASB ratified the consensus reached by the EITF 2008 Acquisitions and Investments. To further enhance
related to EITF Issue No. 06-10, ‘‘Accounting for Deferred our market share and grow our credit data business, dur-
Compensation and Postretirement Benefit Aspects of Col- ing the twelve months ended December 31, 2008, we
lateral Assignment Split-Dollar Life Insurance Arrange- completed nine acquisitions and investments in small busi-
ments,’’ or EITF 06-10, which requires (1) recognition of a nesses totaling $27.4 million, net of cash acquired. Six of
liability related to postretirement benefits covered by collat- the transactions were in our International segment, two
eral split-dollar life insurance arrangements since the within our U.S. Consumer Information Solutions segment
employer has the obligation to provide the benefit to the and one within our TALX segment. The acquisition within
employee and (2) recognition and measurement of the our TALX segment, completed in the fourth quarter of
asset based on the nature and substance of the arrange- 2008, is subject to a contingent earn-out payment not to
ment. We have both endorsement and collateral assign- exceed $6.0 million measured on the completion of 2009
ment split-dollar life insurance arrangements for certain revenue targets. The results of these acquisitions are not
officers of the Company. The liability is required to be rec- material.
ognized in accordance with SFAS No. 106, ‘‘Employers’
Accounting for Postretirement Benefits, Other Than Pen- On June 30, 2008, as a part of our long-term growth strat-
sions,’’ or Accounting Principles Board, or APB, Opinion egy of entering new geographies, we acquired a 28 per-
No. 12, ‘‘Omnibus Opinion — 1967’’, as appropriate. The cent equity interest in Global Payments Credit Ser-
adoption of these standards resulted in our recording a vices LLC, or GPCS, a credit information company in
$3.4 million liability, a $2.6 million receivable, and a cumula- Russia, for cash consideration of $4.4 million, which is now
tive effect adjustment to reduce retained earnings by doing business as Equifax Credit Services, LLC in Russia.
$0.8 million at January 1, 2008 on our Consolidated Bal- Under our shareholders’ agreement, we have the option to
ance Sheet. acquire up to an additional 22 percent interest in GPCS
between 2011 and 2013 for cash consideration based on
In March 2008, the FASB issued SFAS No. 161, ‘‘Disclo- a formula for determining equity value of the business and
sures about Derivative Instruments and Hedging Activities, the assumption of certain debt, subject to satisfaction of
an amendment of SFAS No. 133’’, to improve financial certain conditions.
standards for derivative instruments and hedging activities
by requiring enhanced disclosures to enable investors to 2007 Acquisitions. On October 19, 2007, in order to con-
better understand their effects on an entity’s financial posi- tinue to grow our credit data business, our Peruvian sub-
tion, financial performance and cash flows. The adoption of sidiary, which is reported in our International operating seg-
SFAS No. 161 on January 1, 2009 is not expected to have ment, purchased 100% of the stock of a credit reporting
a material impact on our Consolidated Financial business located in Peru for cash consideration of
Statements. $8.0 million.
In April 2008, FASB Staff Position SFAS 142-3, ‘‘Determi- On May 15, 2007, we completed the acquisition of all of
nation of the Useful Life of Intangible Assets’’, or the outstanding shares of TALX, a leading provider of
FSP 142-3, was issued. FSP 142-3 amends the factors employment and income verification and human resources
that should be considered in developing renewal or exten- business process outsourcing services. The acquisition
sion assumptions used to determine the useful life of a aligned with our long-term growth strategy of expanding
recognized intangible asset under SFAS No. 142, ‘‘Goodwill into new markets with unique data. Under the terms of the
and Other Intangible Assets’’, or SFAS 142. The adoption transaction, we issued 20.6 million shares of Equifax com-
of FSP 142-3 on January 1, 2009 is not expected to have mon stock from treasury, issued 1.9 million fully-vested
a material impact on our Consolidated Financial options to purchase Equifax common stock and paid
Statements. approximately $288.1 million in cash, net of cash acquired.
The value of the shares issued was $844.2 million deter-
In December 2008, FASB Staff Position SFAS 132(R)-1, mined using an average share price over a reasonable
‘‘Employers’ Disclosures about Postretirement Benefit Plan period of time before and after the acquisition terms were
46 EQUIFAX INC.