Equifax 2012 Annual Report Download - page 25

23
Equifax 2012 Annual Report
Investing Activities
Net cash used in: Twelve Months Ended December 31, Change
(Dollars in millions) 2012 2011 2010 2012 vs. 2011 2011 vs. 2010
Capital expenditures $66.0 $75.0 $99.8 $(9.0) $(24.8)
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
enhancements.
Capital expenditures in 2012 were lower than 2011 primarily due to
the purchase of a building in our Workforce Solutions segment during
the first quarter of 2011.
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.
Acquisitions, Divestitures and Investments
Net cash used in: Twelve Months Ended December 31, Change
(Dollars in millions) 2012 2011 2010 2012 vs. 2011 2011 vs. 2010
Acquisitions, net of cash acquired $(1,016.4) $(127.4) $ (82.6) $(889.0) $ (44.8)
Proceeds received from divestitures $ 2.5 $ 2.5 $181.7 $— $(179.2)
Investment in unconsolidated affiliates, net $ (3.7) $ (4.2) $ 1.7 $ 0.5 $ (5.9)
2012 Acquisitions and Investments. On December 28, 2012, as a
part of our long-term growth strategy of expanding our USCIS busi-
ness, we acquired certain credit services business assets and
operations of Computer Sciences Corporation (‘‘CSC Credit
Services’’) for $1.0 billion. We financed the acquisition with available
cash, the issuance of $500 million of 3.30% ten-year senior notes,
and commercial paper borrowings under our CP program. The
results of this acquisition are included in our USCIS segment.
To further broaden our product offerings, during the twelve months
ended December 31, 2012, we completed a number of smaller
acquisitions of information services businesses in the European and
Latin American regions of our International segment. 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 was released to us, upon the
satisfaction of certain conditions, over the two year period following
the sale. We received the final payment of $2.5 million from the
escrow account during the second quarter of 2012. During 2012, we
also invested $3.7 million in our joint ventures in India and Russia.
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 mortgage, insurance
and financial services sectors, for $50.0 million. The results of this
acquisition have been included in our 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 Workforce Solutions seg-
ments. 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 was released 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 mil-
lion 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 smaller 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.