Equifax 2008 Annual Report Download - page 60

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28FEB200910255904
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
there was not significantly different exercise behavior estimated at the date of grant, using the binomial model
between employee groups. For our expected stock price with the following weighted-average assumptions:
volatility assumption, we weighted historical volatility and
implied volatility. We used daily observations for historical Twelve Months Ended
volatility, while our implied volatility assumption was based December 31,
on actively traded options related to our common stock. 2008 2007 2006
The expected term is derived from the binomial model,
based on assumptions incorporated into the binomial Dividend yield 0.4% 0.5% 0.5%
model as described above. Expected volatility 27.1% 22.4% 24.0%
Risk-free interest rate 2.6% 4.6% 4.8%
The fair value for stock options granted during the twelve
months ended December 31, 2008, 2007 and 2006, was Expected term (in years) 4.6 4.6 4.4
Weighted-average fair
value of stock options
granted $ 9.09 $ 10.52 $ 8.33
The following table summarizes changes in outstanding stock options during the twelve months ended December 31,
2008, as well as stock options that are vested and expected to vest and stock options exercisable at December 31,
2008:
Weighted-Average
Weighted-Average Remaining Aggregate
Shares Exercise Price Contractual Term Intrinsic Value
(in thousands) (in years) (in millions)
Outstanding at December 31, 2007 6,484 $ 24.94
Granted (all at market price) 1,042 $ 35.35
Exercised (1,036) $ 16.72
Forfeited and cancelled (68) $ 36.55
Outstanding at December 31, 2008 6,422 $ 27.84 5.2 $ 21.0
Vested and expected to vest at
December 31, 2008 6,198 $ 27.49 5.1 $ 21.0
Exercisable at December 31, 2008 4,699 $ 24.47 3.9 $ 21.0
The aggregate intrinsic value amounts in the table above change depending on fluctuations in Equifax’s stock price.
represent the difference between the closing price of The total intrinsic value of stock options exercised during
Equifax’s common stock on December 31, 2008 and the the twelve months ended December 31, 2008, 2007 and
exercise price, multiplied by the number of in-the-money 2006, was $14.4 million, $48.6 million and $21.4 million,
stock options as of the same date. This represents the respectively. At December 31, 2008, our total unrecognized
amount that would have been received by the stock option compensation cost related to stock options was $5.8 mil-
holders if they had all exercised their stock options on lion with a weighted-average recognition period of
December 31, 2008. In future periods, this amount will 1.5 years.
58 EQUIFAX INC.