Equifax 2011 Annual Report Download - page 25

Investing Activities
Net cash used in: Twelve Months Ended December 31, Change
(Dollars in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Capital expenditures $75.0 $99.8 $70.7 $(24.8) $29.1
Our capital expenditures are used for developing, enhancing and
deploying new and existing software in support of our expanding
product set, replacing or adding equipment, updating systems for
regulatory compliance, the licensing of software applications and
investing in system reliability, security and disaster recovery enhance-
ments.
Capital expenditures in 2011 were lower than 2010 primarily due to
the purchase of our headquarters building in Atlanta, Georgia during
the first quarter of 2010 for cash consideration of $29.0 million,
partially offset by an increase in investments in new products and
technology infrastructure in 2011.
Capital expenditures in 2010 were higher than 2009 due to the
purchase of our headquarters building in Atlanta, as noted above. On
February 27, 2009, we notified the lessor of our headquarters build-
ing that we intended to exercise our purchase option in accordance
with the lease terms. We purchased the building for $29.0 million on
February 26, 2010. The notice of our intent to exercise our purchase
option caused us to account for this lease obligation as a capital
lease. We recorded the building and the related obligation on our
Consolidated Balance Sheets at December 31, 2009.
Acquisitions, Divestitures and Investments
Net cash used in: Twelve Months Ended December 31, Change
(Dollars in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Acquisitions, net of cash acquired $(127.4) $ (82.6) $(196.0) $ (44.8) $113.4
Proceeds received from divestitures $ 2.5 $181.7 $ — $(179.2) $181.7
Investment in unconsolidated affiliates, net $ (4.2) $ 1.7 $ (3.4) $ (5.9) $ 5.1
2011 Acquisitions and Investments. On August 1, 2011, to further
enhance our market position, we acquired DataVision Resources,
which provides data and business solutions to the mortgage,
insurance and financial services, for $50.0 million. The results of this
acquisition have been included in our TALX Workforce Solutions
segment.
To further broaden our product offerings, during the twelve months
ended December 31, 2011, we completed a number of smaller
acquisitions of information services businesses in the European and
Latin American regions of our International segment as well as our
U.S. Consumer Information Solutions and TALX Workforce Solutions
segments. The results of these acquisitions are not material.
During the second quarter of 2010, we sold our APPRO product line,
generating cash proceeds of approximately $67 million.
Approximately $5 million of the purchase price was paid by the
acquirer into an escrow account that will release to us, upon the
satisfaction of certain conditions, over the two year period following
the sale. We received $2.5 million from the escrow account during
the second quarter of 2011. During 2011, we also invested
$4.2 million in our joint ventures in India and Russia.
2010 Acquisitions, Divestitures and Investments. On October 1,
2010, we acquired Anakam, Inc., a provider of large-scale, software-
based, multi-factor identity authentication solutions for $64.3 million.
The results of this acquisition are included in our U.S. Consumer
Information Solutions segment.
To further enhance our market share, during the twelve months
ended December 31, 2010, we completed four acquisitions totaling
$12.3 million, net of cash acquired. These transactions were in our
International segment and the results of these acquisitions are
not material.
During 2010, we resolved a contingent earn-out associated with a
2008 acquisition included in our TALX segment. The earn-out of
$6 million was measured on the completion of 2009 revenue targets
and was accrued at December 31, 2009.
On April 23, 2010, we sold our Equifax Enabling Technologies LLC
legal entity, consisting of our APPRO loan origination software busi-
ness (‘‘APPRO’’) for approximately $72 million. On July 1, 2010, we
sold the assets of our Direct Marketing Services division (‘‘DMS’’) for
approximately $117 million. Both of these were previously reported in
our U.S. Consumer Information Solutions segment. We have
presented the APPRO and DMS operations as discontinued opera-
tions for all periods presented. The discontinued operations are
further described in Note 3 of the Notes to the Consolidated Financial
Statements in this report.
EQUIFAX 2011 ANNUAL REPORT 23