Equifax 2009 Annual Report Download - page 63

A reconciliation of the beginning and ending amount of unrecog- that provides our directors, officers and certain employees with
nized tax benefits is as follows: stock options and nonvested stock. The plan is described below.
We expect to issue common shares held by treasury stock upon
the exercise of stock options or once nonvested shares vest. Total
(In millions) 2009 2008 stock-based compensation expense in our Consolidated Statements
Beginning balance (January 1) $15.8 $ 29.4 of Income during the twelve months ended December 31, 2009,
Increases related to prior year tax positions 0.6 1.7 2008 and 2007, was as follows:
Decreases related to prior year tax positions (1.2) (1.8)
Twelve Months Ended
Increases related to current year tax December 31,
positions 3.7 2.0
(in millions) 2009 2008 2007
Decreases related to settlements (0.3) (0.4)
Cost of services $ 2.6 $ 2.4 $ 1.9
Expiration of the statute of limitations for the
assessment of taxes (1.1) (13.3) Selling, general and administrative
expenses 17.0 17.5 15.7
Purchase accounting —0.9
Stock-based compensation
Currency translation adjustment 1.9 (2.7)
expense, before income taxes $ 19.6 $ 19.9 $ 17.6
Ending balance (December 31) $ 19.4 $ 15.8
The total income tax benefit recognized for stock-based compensa-
We recorded liabilities of $26.8 million and $22.3 million for unrec- tion expense was $6.9 million, $7.1 million and $6.3 million for the
ognized tax benefits as of December 31, 2009 and 2008, respec- twelve months ended December 31, 2009, 2008 and 2007,
tively, which included interest and penalties of $7.4 million and respectively.
$6.5 million, respectively. As of December 31, 2009 and 2008, the
total amount of unrecognized benefits that, if recognized, would Benefits of tax deductions in excess of recognized compensation
have affected the effective tax rate was $20.5 million and $17.8 mil- cost are reported as a financing cash flow, rather than as an operat-
lion, respectively, which included interest and penalties of $5.7 mil- ing cash flow. This requirement reduced operating cash flows and
lion and $5.0 million, respectively. The accruals for potential interest increased financing cash flows by $1.3 million, $2.1 million and
and penalties during 2009 and 2008 were not material. $7.0 million during the twelve months ended December 31, 2009,
2008 and 2007, respectively.
Equifax and its subsidiaries are subject to U.S. federal, state and
international income taxes. We are generally no longer subject to Stock Options. The 2008 Omnibus Incentive Plan provides that
federal, state or international income tax examinations by tax qualified and nonqualified stock options may be granted to officers
authorities for years before 2003, with few exceptions including and other employees. In conjunction with our acquisition of TALX,
those discussed below for Canada and the U.K. In Canada, we are we assumed options outstanding under the legacy TALX stock
under audit by the Canada Revenue Agency for the 1995 through option plan, which was approved by TALX shareholders. In addition,
2002 tax years (see Note 5 of the Notes to Consolidated Financial stock options remain outstanding under three shareholder-approved
Statements). For the U.K., tax years after 1999 are open for exami- plans and three non-shareholder-approved plans from which no new
nation. Due to the potential for resolution of state and foreign exam- grants may be made. The 2008 Omnibus Incentive Plan requires
inations, and the expiration of various statutes of limitations, it is that stock options be granted at exercise prices not less than mar-
reasonably possible that Equifax’s gross unrecognized tax benefit ket value on the date of grant. Generally, stock options are subject
balance may change within the next twelve months by a range of to graded vesting for periods of up to three years based on service,
zero to $6.4 million, related primarily to issues involving U.K. with 33% vesting for each year of completed service, and expire ten
operations. years from the grant date.
7. STOCK-BASED COMPENSATION
We have one active share-based award plan, the 2008 Omnibus
Incentive Plan which was approved by our shareholders in 2008,
EQUIFAX 2009 ANNUAL REPORT 61
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