Equifax 2009 Annual Report Download - page 51

In September 2009, the FASB issued guidance regarding use of the On November 2, 2009, to further enhance our income and identity
net asset value per share provided by an investee to estimate the verification service offerings, we acquired Rapid Reporting Verifica-
fair value of an alternative investment when the fair value is not tion Company, or Rapid, a provider of IRS tax transcript information
readily determinable. This guidance affects certain investments that and social security number authentication services, for $72.5 million.
are held by our pension plans and is effective for interim and annual The results of this acquisition have been included in our TALX oper-
periods ending after December 15, 2009. Our adoption did not ating segment subsequent to the acquisition.
have a material impact on our Consolidated Financial Statements.
On October 27, 2009, we acquired IXI Corporation, or IXI, a pro-
In January 2010, the FASB issued guidance requiring additional fair vider of consumer wealth and asset data, for $124.0 million. This
value disclosures for significant transfers between levels of the fair acquisition enables us to offer more differentiated and in-depth con-
value hierarchy and gross presentation of items within the Level 3 sumer income, wealth and other data to help our clients improve
reconciliation. This guidance also clarifies that entities need to dis- their marketing, collections, portfolio management and customer
close fair value information for each class of asset and liability mea- management efforts across different product segments. The results
sured at fair value and that valuation techniques need to be pro- of this acquisition have been included in our U.S. Consumer Infor-
vided for all non-market observable measurements. Our adoption of mation Solutions operating segment subsequent to the acquisition
this guidance on January 1, 2010, is not expected to have a mate- date.
rial impact on our Consolidated Financial Statements.
We financed these purchases through borrowings under our Senior
Subsequent Events. In May 2009, the FASB issued guidance which Credit Facility, which were subsequently refinanced through the issu-
established standards for accounting and disclosure of events that ance in November 2009 of our 4.45%, five-year unsecured Senior
occur after the balance sheet date, but before financial statements Notes. The 4.45% Senior Notes are further described in Note 4 of
are issued. This guidance was effective for interim and annual peri- the Notes to the Consolidated Financial Statements in this report.
ods ending after June 15, 2009. Our adoption did not have a mate-
rial impact on our Consolidated Financial Statements. We evaluated On August 12, 2009, in order to enhance our Mortgage Solutions
subsequent events occurring through February 23, 2010, which is business market share, we acquired certain assets and specified
the date our financial statements were issued. liabilities of a small mortgage credit reporting reseller for cash con-
sideration of $3.8 million. The results of this acquisition have been
Variable Interest Entities. In June 2009, the FASB amended the con- included in our U.S. Consumer Information Solutions segment sub-
solidation guidance for variable-interest entities and expanded dis- sequent to the acquisition date.
closure requirements. The new guidance requires an enterprise to
perform an analysis to determine whether the enterprise’s variable 2008 Acquisitions and Investments. To further enhance our mar-
interests give it a controlling financial interest in the variable interest ket share and grow our credit data business, during the twelve
entity. The adoption of this guidance on January 1, 2010, is not months ended December 31, 2008, we completed nine acquisitions
expected to have a material impact on our Consolidated Financial and investments in a number of small businesses totaling $27.4 mil-
Statements. lion, net of cash acquired. Six of the transactions were in our Inter-
national segment, two within our U.S. Consumer Information Solu-
Revenue Arrangements with Multiple Deliverables. In October 2009, tions segment and one within our TALX segment. We recorded a
the FASB issued revenue guidance for multiple-deliverable arrange- $6.0 million liability at December 31, 2009, with a corresponding
ments which addresses how to separate deliverables and how to adjustment to goodwill, for the contingent earn-out payment associ-
measure and allocate arrangement consideration. This guidance ated with the acquired company within the TALX segment. The
requires vendors to develop the best estimate of selling price for earn-out payment was measured on the completion of 2009 reve-
each deliverable and to allocate arrangement consideration using nue targets and will be paid in 2010.
this selling price. The guidance is effective prospectively for revenue
arrangements entered into or materially modified in annual periods
On June 30, 2008, as a part of our long-term growth strategy of
beginning after June 15, 2010. We are currently evaluating the
entering new geographies, we acquired a 28 percent equity interest
impact of adoption on our Consolidated Financial Statements.
in Global Payments Credit Services LLC, or GPCS, a credit informa-
tion company in Russia, for cash consideration of $4.4 million,
2. ACQUISITIONS AND INVESTMENTS which is now doing business as Equifax Credit Services, LLC in
2009 Acquisitions and Investments. On December 23, 2009, as a Russia. Under our shareholders’ agreement, we have the option to
part of our long-term growth strategy of expanding into emerging acquire up to an additional 22 percent interest in GPCS between
markets, we formed a joint venture, Equifax Credit Information Ser- 2011 and 2013 for cash consideration based on a formula for
vices Private Limited, or ECIS, to provide a broad range of credit determining equity value of the business and the assumption of
data and information solutions in India. This joint venture is pending certain debt, subject to satisfaction of certain conditions.
regulatory approval. We paid cash consideration of $5.2 million for
our 49 percent equity interest in ECIS.
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