Equifax 2011 Annual Report Download - page 53

5. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill. Goodwill represents the cost in excess of the fair value of
the net assets acquired in a business combination. As discussed in
Note 1, goodwill is tested for impairment at the reporting unit level on
an annual basis and on an interim basis if an event occurs or
circumstances change that would reduce the fair value of a reporting
unit below its carrying value. As a result of the merger of our Brazilian
business in the second quarter of 2011, we performed an interim
impairment test on the Latin America reporting unit excluding our
Brazilian business which resulted in no impairment. We perform our
annual goodwill impairment tests as of September 30 each year. The
fair value estimates for our reporting units were determined using a
combination of the income and market approaches in accordance
with the Company’s methodology. Our annual impairment tests as of
September 30, 2011, 2010 and 2009 resulted in no impairment of
goodwill.
Changes in the amount of goodwill for the twelve months ended December 31, 2011 and 2010, are as follows:
(In millions)
U.S. Consumer
Information
Solutions International
TALX
Workforce
Solutions
North America
Personal
Solutions
North America
Commercial
Solutions Total
Balance, December 31, 2009 $667.8 $335.7 $900.6 $1.8 $37.3 $1,943.2
Acquisitions 41.0 6.5 — — — 47.5
Adjustments to initial purchase
price allocation (0.8) — (0.7) — — (1.5)
Foreign currency translation — 4.7 — — 0.3 5.0
Businesses sold (79.5) — — — — (79.5)
Balance, December 31, 2010 628.5 346.9 899.9 1.8 37.6 1,914.7
Acquisitions 10.1 30.9 34.6 — — 75.6
Adjustments to initial purchase
price allocation (0.2) (0.1) 0.5 — — 0.2
Foreign currency translation — 4.0 — — (0.1) 3.9
Businesses sold — (33.2) — — — (33.2)
Balance, December 31, 2011 $638.4 $348.5 $935.0 $1.8 $37.5 $1,961.2
Indefinite-Lived Intangible Assets. Indefinite-lived intangible assets
consist of contractual/territorial rights representing the estimated fair
value of rights to operate in certain territories acquired through the
purchase of independent credit reporting agencies in the U.S. and
Canada. Our contractual/territorial rights are perpetual in nature and,
therefore, the useful lives are considered indefinite. Indefinite-lived
intangible assets are not amortized. As discussed in Note 1, we are
required to test indefinite-lived intangible assets for impairment annu-
ally and whenever events or circumstances indicate that there may be
an impairment of the asset value. We perform our annual indefinite-
lived intangible asset impairment test as of September 30 each year.
Our annual impairment tests as of September 30, 2011, 2010 and
2009 resulted in no impairment of our indefinite-lived intangible
assets. Our contractual/territorial rights carrying amounts did not
change materially during the twelve months ended December 31,
2011 and 2010.
Purchased Intangible Assets. Purchased intangible assets net, recorded on our Consolidated Balance Sheets at December 31, 2011 and
2010, are as follows:
December 31, 2011 December 31, 2010
(In millions) Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
Definite-lived intangible assets:
Purchased data files $ 316.2 $(240.5) $ 75.7 $ 339.2 $(240.7) $ 98.5
Acquired software and technology 68.3 (41.1) 27.2 55.0 (33.3) 21.7
Customer relationships 518.2 (130.3) 387.9 489.2 (97.1) 392.1
Proprietary database 125.0 (95.5) 29.5 125.0 (74.4) 50.6
Non-compete agreements 9.0 (3.1) 5.9 7.2 (1.4) 5.8
Trade names and other intangible assets 40.7 (16.7) 24.0 37.4 (12.2) 25.2
Total definite-lived intangible assets $1,077.4 $(527.2) $550.2 $1,053.0 $(459.1) $593.9
Amortization expense related to purchased intangible assets was $90.5 million, $90.0 million, and $80.3 million during the twelve months
ended December 31, 2011, 2010, and 2009, respectively.
EQUIFAX 2011 ANNUAL REPORT 51