Equifax 2012 Annual Report Download - page 52

50 Equifax 2012 Annual Report
International segment and the results of these acquisitions have been
included in our operating results subsequent to the date of acquisi-
tion and are not material.
Purchase Price Allocation. The following table summarizes the
estimated fair value of the net assets acquired and the liabilities
assumed at the acquisition dates. The 2012 allocations are
considered final, except for the resolution of certain contingencies all
of which existed at the acquisition date, primarily related to working
capital settlement, sales tax exposures and income tax accounts,
which will be resolved when final returns are filed related to the
acquired entities. Estimates for these items have been included in the
purchase price allocations and will be finalized prior to the one year
anniversary date of the acquisitions.
December 31,
(In millions) 2012 2011
Current assets $ 21.3 $ 14.1
Property and equipment 1.2 4.2
Other assets 0.1 0.1
Identifiable intangible assets
(1)
524.7 52.2
Indefinite lived intangible assets 158.8 —
Goodwill
(2)
321.3 75.6
Total assets acquired 1,027.4 146.2
Total liabilities assumed (7.4) (13.8)
Non-controlling interest (2.7) —
Net assets acquired $1,017.3 $132.4
(1) Identifiable intangible assets are further disaggregated in the
following table.
(2) Of the goodwill resulting from 2012 and 2011 acquisitions,
$309.3 million and $44.7 million, respectively, is tax deductible.
The primary reasons the purchase price of these acquisitions exceeded the fair value of the net assets acquired, which resulted in the recogni-
tion of goodwill, were future tax savings which are not recorded apart from goodwill, expanded growth opportunities from new or enhanced
product offerings, cost savings from the elimination of duplicative activities, and the acquisition of an assembled workforce that are not
recognized as assets apart from goodwill.
December 31,
2012 2011
Intangible asset category Fair value
Weighted-average
useful life Fair value
Weighted- average
useful life
(in millions) (in years) (in millions) (in years)
Customer relationships $ 4.5 8.7 $29.9 8.8
Acquired software and technology 0.7 5.7 13.4 4.2
Purchased data files 508.8 15.0 3.2 5.2
Non-compete agreements 10.3 4.9 2.3 3.7
Trade names and other intangible assets 0.4 5.0 3.4 5.5
Total acquired intangibles $524.7 14.7 $52.2 6.9
Pro Forma Financial Information. The following table presents unaudited consolidated pro forma information as if our acquisition of CSC
Credit Services’ business had occurred at the beginning of the earliest year presented. The pro forma amounts may not be necessarily indica-
tive of the operating revenues and results of operations had the acquisition actually taken place at the beginning of the earliest year presented.
Furthermore, the pro forma information may not be indicative of future performance.
Twelve Months Ended December 31,
2012 2011
As Reported Pro Forma As Reported Pro Forma
(In millions, except per share data)
Operating revenues $2,160.5 $2,283.6 $1,959.8 $2,070.2
Net income attributable to Equifax $ 272.1 $ 309.9 $ 232.9 $ 263.6
Income from continuing operations per share (basic) $ 2.27 $ 2.58 $ 1.90 $ 2.15
Income from continuing operations per share (diluted) $ 2.22 $ 2.53 $ 1.87 $ 2.12
Net income per share (basic) $ 2.27 $ 2.58 $ 1.91 $ 2.16
Net income per share (diluted) $ 2.22 $ 2.53 $ 1.88 $ 2.13
The unaudited pro forma financial information presented in the table above has been adjusted to give effect to adjustments that are (1) directly
related to the business combination; (2) factually supportable; and (3) expected to have a continuing impact. These adjustments include, but
are not limited to, the application of our accounting policies; elimination of related party transactions; and depreciation and amortization related
to fair value adjustments and intangible assets.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued