Equifax 2015 Annual Report Download - page 31

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Goodwill and Indefinite-Lived Intangible Assets
We review goodwill and indefinite lived intangible assets for impairment annually (as of September 30) and whenever
events or changes in circumstances indicate the carrying value of an asset may not be recoverable. These events or
circumstances could include a significant change in the business climate, legal factors, operating performance or trends,
competition, or sale or disposition of a significant portion of a reporting unit. We have seven reporting units comprised of U.S.
Information Solutions (which includes part of Online Information Solutions, Mortgage Solutions and Financial Marketing
Services), Europe, Latin America, Canada, Personal Solutions, Verification Services, and Employer Services. Based on the
Company's enterprise-wide strategy, we've consolidated the Identity Management reporting unit with the U.S. Information
Solutions reporting unit in 2015. We performed goodwill impairment tests prior to and following the consolidation for USIS
and Identity Management reporting units, which resulted in no impairment.
The goodwill balance at December 31, 2015, for our seven reporting units was as follows:
December 31,
2015
(Inmillions)
U.S. Information Solutions $1,071.3
Europe 187.3
Latin America 222.1
Canada 32.1
Personal Solutions 150.6
Verification Services 738.6
Employer Services 169.0
Total goodwill $2,571.0
QualitativeAssessments
We performed a qualitative assessment to determine whether further impairment testing was necessary for all of our
reporting units. In this qualitative assessment, we considered the following items for each of the reporting units:
macroeconomic conditions, industry and market conditions, overall financial performance and other entity specific events. In
addition, for each of these reporting units, the most recent fair value determination resulted in an amount that exceeded the
carrying amount of the reporting units. Based on these assessments, we determined the likelihood that a current fair value
determination would be less than the current carrying amount of the reporting unit is not more likely than not. As a result of our
conclusions, no further testing was required for all of our reporting units.
Loss Contingencies
We are subject to various proceedings, lawsuits and claims arising in the normal course of our business. We determine
whether to disclose and/or accrue for loss contingencies based on our assessment of whether the potential loss is estimable,
probable, reasonably possible or remote.
Judgmentsanduncertainties — We periodically review claims and legal proceedings and assess whether we have
potential financial exposure based on consultation with internal and outside legal counsel and other advisors. If the likelihood
of an adverse outcome from any claim or legal proceeding is probable and the amount can be reasonably estimated, we record a
liability on our Consolidated Balance Sheets for the estimated amount. If the likelihood of an adverse outcome is reasonably
possible, but not probable, we provide disclosures related to the potential loss contingency. Our assumptions related to loss
contingencies are inherently subjective.
Effectifactualresultsdifferfromassumptions — We do not believe there is a reasonable likelihood that there will be a
material change in the future estimates or assumptions we use to determine loss contingencies. However, if facts and
circumstances change in the future that change our belief regarding assumptions used to determine our estimates, we may be
exposed to a loss that could be material.
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