Equifax 2009 Annual Report Download - page 45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
include Equifax and all its subsidiaries. We consolidate all majority-
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES owned and controlled subsidiaries as well as variable interest enti-
As used herein, the terms Equifax, the Company, we, our and us ties in which we are the primary beneficiary. Other parties’ interests
refer to Equifax Inc., a Georgia corporation, and its consolidated in consolidated entities are reported as noncontrolling interests. We
subsidiaries as a combined entity, except where it is clear that the use the equity method of accounting for investments in which we
terms mean only Equifax Inc. are able to exercise significant influence and use the cost method
for all other investments. All significant intercompany transactions
Nature of Operations. We collect, organize and manage various and balances are eliminated.
types of financial, demographic, employment and marketing infor-
mation. Our products and services enable businesses to make Our Consolidated Financial Statements reflect all adjustments which
credit and service decisions, manage their portfolio risk, automate are, in the opinion of management, necessary for a fair presentation
or outsource certain payroll, tax and human resources business of the periods presented therein. Certain prior year amounts have
processes, and develop marketing strategies concerning consumers been reclassified to conform to current year presentation, including
and commercial enterprises. We serve customers across a wide selling, general and administrative expense of $13.2 million and
range of industries, including the financial services, mortgage, retail, $5.4 million, respectively, for the twelve months ended Decem-
telecommunications, utilities, automotive, brokerage, healthcare and ber 31, 2008 and 2007, which was reclassified to cost of services.
insurance industries, as well as government agencies. We also The effect of these reclassifications is not material.
enable consumers to manage and protect their financial health
through a portfolio of products offered directly to consumers. As of Segments. We manage our business and report our financial results
December 31, 2009, we operated in the following countries: Argen- through the following five reportable segments, which are the same
tina, Brazil, Canada, Chile, Ecuador, El Salvador, Honduras, Peru, as operating segments:
Portugal, Spain, the United Kingdom, or U.K., Uruguay, and the • U.S. Consumer Information Solutions, or USCIS
United States of America, or U.S. We also maintain support opera- • International
tions in Costa Rica and the Republic of Ireland. We own an equity • TALX
interest in a consumer credit information company in Russia. During • North America Personal Solutions
2009, we formed a joint venture, pending regulatory approval, to • North America Commercial Solutions
provide a broad range of credit data and information solutions in
India. USCIS is our largest reportable segment, with 45% of total operat-
ing revenue during 2009. Our most significant foreign operations are
We develop, maintain and enhance secured proprietary information located in Canada, the U.K. and Brazil.
databases through the compilation of actual consumer data, includ-
ing credit, employment, asset, liquidity, net worth and spending Use of Estimates. The preparation of our Consolidated Financial
activity, and business data, including credit and business Statements requires us to make estimates and assumptions in
demographics, that we obtain from a variety of sources, such as accordance with GAAP. Accordingly, we make these estimates and
credit granting institutions, public record information (including bank- assumptions after exercising judgment. We believe that the esti-
ruptcies, liens and judgments), income and tax information primarily mates and assumptions inherent in our Consolidated Financial
from large to mid-sized companies in the U.S., and marketing infor- Statements are reasonable, based upon information available to us
mation from surveys and warranty cards. We process this informa- at the time they are made including the consideration of events that
tion utilizing our proprietary information management systems. have occurred up until the point these Statements have been filed.
These estimates and assumptions affect the reported amounts of
We acquired Rapid Reporting Verification Company, a provider of assets, liabilities, revenues and expenses, and disclosure of contin-
IRS tax transcript information and social security number authentica- gent assets and liabilities at the date of the financial statements, as
tion services, on November 2, 2009. On October 27, 2009, we well as reported amounts of revenues and expenses during the
acquired IXI Corporation, a provider of consumer wealth and asset reporting period. Actual results could differ materially from these
data. Additionally, we acquired TALX Corporation, a leading provider estimates.
of employment and income verification and human resources busi-
ness process outsourcing services, on May 15, 2007. The results of Revenue Recognition and Deferred Revenue. Revenue is recog-
these acquisitions are included in our consolidated results subse- nized when persuasive evidence of an arrangement exists, collec-
quent to the acquisition dates. tibility of arrangement consideration is reasonably assured, the
arrangement fees are fixed or determinable and delivery of the prod-
Basis of Consolidation. Our Consolidated Financial Statements uct or service has been completed. A significant portion of our
and the accompanying notes, which are prepared in accordance
with U.S. generally accepted accounting principles, or GAAP,
EQUIFAX 2009 ANNUAL REPORT 43
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