Equifax 2012 Annual Report Download - page 53

51
Equifax 2012 Annual Report
The impact of the smaller acquisitions within our International seg-
ment in 2012 as well as the 2011 acquisitions did not have a material
impact in our Consolidated Statements of Income. The impact of the
2012 acquisitions, excluding CSC Credit Services, and the 2011
acquisitions would not have significantly changed our Consolidated
Statements of Income if they had occurred at the beginning of the
earliest year presented.
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. We perform our annual goodwill impair-
ment tests as of September 30 each year. 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.
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, 2012, 2011 and 2010 resulted in no impairment
of goodwill.
Changes in the amount of goodwill for the twelve months ended December 31, 2012 and 2011, are as follows:
(In millions)
U.S. Consumer
Information
Solutions International
Workforce
Solutions
North America
Personal
Solutions
North America
Commercial
Solutions Total
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
Acquisitions 309.3 12.0 — — — 321.3
Adjustments to initial purchase
price allocation — — (1.0) — — (1.0)
Foreign currency translation — 8.8 — — 0.1 8.9
Balance, December 31, 2012 $947.7 $369.3 $934.0 $1.8 $37.6 $2,290.4
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, 2012, 2011 and
2010 resulted in no impairment of our indefinite-lived intangible
assets. Changes in the amounts of indefinite-lived intangible assets
for the twelve months ended December 31, 2012 and 2011, are
as follows:
(In millions) Amount
Balance, December 31, 2010 $95.6
Foreign currency translation —
Balance, December 31, 2011 95.6
Acquisitions 158.8
Foreign currency translation 0.1
Balance, December 31, 2012 $254.5