Exhibit 99.1

 

1550 Peachtree Street, N.W. Atlanta, Georgia 30309

 

NEWS RELEASE

 

Contact:

 

Jeff Dodge		David Rubinger
Investor Relations		Media Relations
(404) 885-8804		(404) 885-8555
jeff.dodge@equifax.com		david.rubinger@equifax.com

 

Equifax Delivers Solid Revenue and Strong Operating Income Growth in Third Quarter 2007; Updates 2007 Full Year Revenue and Adjusted EPS Guidance

 

ATLANTA, October 22, 2007 — Equifax Inc. (NYSE: EFX) today reported financial results for the third quarter ended September 30, 2007. Revenue increased 25 percent to $492.5 million compared to the prior year period. The core Equifax businesses grew 7 percent while 18 percent is attributable to the aquisition of TALX in May 2007. Operating income grew 7 percent to $129.2 million, and was up 12 percent excluding the net favorable impact of certain litigation matters in the prior year period.

 

Third quarter diluted earnings per share (“EPS”) was 48 cents compared to 61 cents in the prior year period. Prior year EPS was favorably impacted by 10 cents related to litigation matters and the reversal of certain income tax reserves. EPS adjusted to exclude the impact of acquisition related amortization expense and the aforementioned litigation and tax matters increased 5 percent to 58 cents from the prior year period. Adjusted EPS and operating income excluding 2006 favorable litigation-related items are non-GAAP financial measures, which are defined and reconciled to the most closely related GAAP financial measure in the information accompanying this release.

 

“The diversity and strength of our business units enabled Equifax to deliver strong financial performance for the quarter. Our results were bolstered by double-digit growth from our North America Commercial Solutions, North America Personal Solutions and International businesses,” said Richard F. Smith, Equifax Chairman and Chief Executive Officer. “At a time when many of our customers are weathering a tough economic climate, our business model and diversified revenue stream allow us to consistently drive top line growth and profitability.”

 

Third Quarter 2007 Highlights

 

•                  Double-digit revenue growth in our North America Commercial Solutions, North America Personal Solutions and International operating segments and a full quarter’s results from TALX contributed to a 25 percent increase in revenue in the third quarter of 2007, when compared to the same period in 2006.

 

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•                  Operating margin was 26.2 percent compared to 30.6 percent in the third quarter of 2006. On a non-GAAP basis, excluding the impact of our TALX acquisition in 2007 and the 2006 litigation-related matters mentioned above, operating margin was 28.2 percent in 2007 compared to 29.3 percent in the third quarter of 2006. The third quarter 2007 operating margin reflects increased costs of litigation and greater investments in marketing and technology when compared to the same period in 2006.

 

•                  Net income was $67.9 million, a 14 percent decrease from the third quarter of 2006, which included the favorable net impact of the 2006 litigation-related matters mentioned above and a $9.5 million benefit from the resolution of a tax matter. On a non-GAAP basis excluding the impact of these litigation matters and tax benefit, net income increased 2 percent. Year over year net income growth was negatively impacted by increased intangible amortization expense related to the acquisition of TALX and interest expense on additional debt incurred to finance this acquisition and our subsequent repurchase of common stock.

 

•                  As planned, total debt increased to $1.4 billion in the third quarter of 2007 compared to $1.2 billion at June 30, 2007, with the increase resulting primarily from our share repurchase program.

 

•                  We repurchased 11.1 million of our common shares for $441.6 million in the third quarter, as part of our previously announced share repurchase programs. From the date of the TALX acquisition through September 30, 2007, we have repurchased $620.9 million of our previously announced goal of repurchasing $700.0 million of our shares by the end of 2007.

 

U.S. Consumer Information Solutions (“USCIS”)

 

Total revenue was $243.9 million in the third quarter of 2007, a 1 percent decrease from the third quarter of 2006. Although customers in the U.S. consumer credit markets faced a difficult environment, transaction volume for Online Consumer Information Services remained strong, having grown five percent when compared to the same period in 2006. Operating margin for USCIS was 39.8 percent in the third quarter of 2007, up from 39.1 percent in the third quarter of 2006. Operating margin for the third quarter of 2006 included the impact of a $4.0 million litigation loss contingency. On a non-GAAP basis, excluding the impact of this loss contingency, third quarter 2006 operating margin was 40.7 percent. Compared to the third quarter of 2006:

 

•                  Online Consumer Information Solutions revenue was $160.9 million, up 1 percent;

•                  Mortgage Reporting Solutions revenue was $16.9 million, down 3 percent;

•                  Credit Marketing Services revenue was $39.2 million, down 6 percent; and

•                  Direct Marketing Services revenue was $26.9 million, down 1 percent.

 

International

 

Total revenue was $122.9 million in the third quarter of 2007, a 17 percent increase from the third quarter of 2006. In local currency, revenue was up 9 percent when compared to the same period in the prior year. Operating margin for International was 31.2 percent in the third quarter of 2007, up from 29.7 percent in the third quarter of 2006. Compared to the third quarter of 2006:

 

•                  Europe revenue was $47.6 million, up 20 percent in U.S. dollars (11 percent in local currency);

 

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•                  Latin America revenue was $47.1 million, up 16 percent in U.S. dollars (9 percent in local currency); and

•                  Canada Consumer revenue was $28.2 million, up 14 percent in U.S. dollars (6 percent in local currency).

 

North America Personal Solutions

 

Total revenue rose to $38.6 million, a 19 percent increase from the third quarter of 2006. Operating margin was 26.9 percent, down from 48.1 percent in the third quarter of 2006. Operating margin for the third quarter of 2006 included the favorable impact of a $9.0 million reversal of a loss contingency related to certain litigation matters. On a non-GAAP basis, excluding the impact of this loss contingency, operating margin was 20.4 percent in the third quarter of 2006.

 

North America Commercial Solutions

 

Total revenue rose to $16.7 million, a 45 percent increase from the third quarter of 2006. Operating margin was 19.5 percent, down from 21.3 percent in the third quarter of 2006, but up from 7.9 percent in the first half of 2007.

 

TALX

 

Total revenue was $70.4 million and operating margin was 14.2 percent for the third quarter of 2007. Transaction volume for The Work Number business unit was 3.6 million, up 22 percent from the third quarter of 2006. In addition, approximately 6.6 million total records were added to the employment database, bringing total records in the database to 158.9 million.

 

Outlook for 2007 Results

 

Due to market uncertainties related to the current state of the economy, Equifax has updated its full year guidance for 2007. The revised guidance is based on our year-to-date performance, current market trends and management’s expectations. Equifax expects consolidated annual revenue growth to be approximately 19 percent and diluted EPS, as adjusted for acquisition-related amortization expense, to be between $2.28 and $2.32 versus prior guidance issued in June 2007 of $2.25 to $2.33.

 

About Equifax

 

Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, employment and income verification and human resources business process outsourcing services, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.

 

Customers have trusted Equifax for over 100 years to deliver innovative solutions with the highest integrity and reliability. Businesses – large and small – rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, HR/payroll services, and much more. We empower individual consumers to manage their personal credit information, protect their identity and maximize their financial well-being.

 

Headquartered in Atlanta, Georgia, Equifax Inc. employs approximately 6,900 people in 14 countries throughout North America, Latin America and Europe. Equifax is a member of Standard

 

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& Poor’s (S&P) 500^® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.

 

www.equifax.com

 

Earnings Conference Call and Webcast

 

Equifax’s quarterly teleconference to discuss the third quarter earnings release will be held tomorrow, October 23, at 8:30 a.m. (EDT). The live audio webcast of the speakers’ presentations will be available at www.equifax.com and a replay will be available at the same site shortly after the conclusion of the webcast. This press release, the financial tables, as well as other supplemental information, are also available at that website.

 

Supplemental Financial Information and Non-GAAP Financial Measures

 

The Common Questions and Answers (Unaudited) (“Q&A”) that are a part of this press release include supplemental financial information which Equifax believes is useful to assess its operating performance. The following financial measures included herein or in the Q&A are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”): Operating income and net income excluding the net impact of certain 2006 litigation-related matters and income tax benefit; consolidated operating margin excluding TALX operating results in 2007 and net impact of certain litigation-related matters in 2006; EBITDA, defined as operating income adding back depreciation and amortization expense and excluding the net impact of certain 2006 litigation matters; diluted EPS, as adjusted to exclude acquisition-related amortization expense, the net impact of certain 2006 litigation matters and income tax benefit; and effective tax rate, excluding certain items. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented in the Q&A. This information can also be found under “About Equifax/Investor Center/Non-GAAP/GAAP Financial Measures” on our website at www.equifax.com. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

 

Reported results for the prior year quarter and nine month period do not include revenue, operating income or operating expenses from TALX, which we acquired on May 15, 2007. To give investors further basis for comparison, in addition to the historical reported results, we have provided pro forma results for the year ended December 31, 2006 and three months ended March 31, 2007. These pro forma results combine financial results from Equifax and TALX and are available in our Form 8-K/A filed on June 25, 2007 and on our website at www.equifax.com/About Equifax/Investor Center/Financials/SEC Filings.

 

Caution Concerning Forward-Looking Statements

 

Statements in this press release that relate to Equifax’s future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Future events, risks and uncertainties, individually or in the aggregate, could cause our actual results to differ materially from those expressed or implied in these forward-looking statements. Those factors include, but are not limited to, changes in worldwide and U.S. economic conditions that materially impact consumer spending, consumer debt and employment, changes in demand for

 

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Equifax’s products and services, our ability to develop new products and services, pricing and other competitive pressures, risks relating to illegal third party efforts to access data, risks associated with our ability to complete and integrate acquisitions and other investments, changes in laws and regulations governing our business, including federal or state responses to identity theft concerns, the outcome of pending litigation, the impact of tax audits by the IRS or other taxing authorities, and certain other factors discussed under the caption “Risk Factors” in the Management’s Discussion and Analysis section of Equifax’s Annual Report on Form 10-K for the year ended December 31, 2006, in “Risk Factors” in TALX Corporation’s Annual Report on Form 10-K for the year ended March 31, 2006 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, and in our other filings with the Securities and Exchange Commission. Equifax assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

 

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EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

 

		Three Months Ended
		September 30,
(In millions, except per share amounts)		2007			2006
		(Unaudited)
Operating revenue		$	492.5		$	394.6
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		194.3			157.9
Selling, general and administrative expenses		130.1			95.7
Depreciation and amortization		38.9			20.4
Total operating expenses		363.3			274.0
Operating income		129.2			120.6
Interest expense		(19.9		)	(7.9		)
Minority interests in earnings, net of tax		(1.7		)	(1.0		)
Other income, net		1.2			0.5
Income before income taxes		108.8			112.2
Provision for income taxes		(40.9		)	(33.3		)
Net income		$	67.9		$	78.9
Basic earnings per common share		$	0.49		$	0.62
Weighted-average shares used in computing basic earnings per share		137.4			126.4
Diluted earnings per common share		$	0.48		$	0.61
Weighted-average shares used in computing diluted earnings per share		140.6			128.4
Dividends per common share		$	0.04		$	0.04

 

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EQUIFAX

CONSOLIDATED STATEMENTS OF INCOME

 

		Nine Months Ended
		September 30,
(In millions, except per share amounts)		2007			2006
		(Unaudited)
Operating revenue		$	1,352.2		$	1,156.3
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)		553.5			466.5
Selling, general and administrative expenses		342.8			301.6
Depreciation and amortization		89.9			62.0
Total operating expenses		986.2			830.1
Operating income		366.0			326.2
Interest expense		(37.7		)	(24.0		)
Minority interests in earnings, net of tax		(4.4		)	(3.0		)
Other income, net		2.5			16.0
Income before income taxes		326.4			315.2
Provision for income taxes		(119.4		)	(103.8		)
Net income		$	207.0		$	211.4
Basic earnings per common share		$	1.56		$	1.65
Weighted-average shares used in computing basic earnings per share		132.4			127.8
Diluted earnings per common share		$	1.53		$	1.62
Weighted-average shares used in computing diluted earnings per share		135.5			130.1
Dividends per common share		$	0.12		$	0.12

 

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EQUIFAX

CONSOLIDATED BALANCE SHEETS

 

		September 30,			December 31,
(In millions, except par values)		2007			2006
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	87.0		$	67.8
Trade accounts receivable, net of allowance for doubtful accounts of $10.0 and $8.7 at September 30, 2007 and December 31, 2006, respectively		302.7			244.8
Prepaid expenses		31.0			21.5
Other current assets		23.7			11.1
Total current assets		444.4			345.2
Property and equipment:
Capitalized internal-use software and system costs		277.0			243.8
Data processing equipment and furniture		168.3			132.2
Land, buildings and improvements		84.0			29.7
Total property and equipment		529.3			405.7
Less accumulated depreciation and amortization		(290.3		)	(243.8		)
Total property and equipment, net		239.0			161.9
Goodwill		1,791.1			842.0
Indefinite-lived intangible assets		95.6			95.2
Purchased intangible assets, net		780.5			242.2
Prepaid pension asset		59.2			47.7
Other assets, net		70.9			56.4
Total assets		$	3,480.7		$	1,790.6
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current maturities		$	168.2		$	330.0
Accounts payable		21.8			23.5
Accrued expenses		71.0			62.0
Accrued salaries and bonuses		51.6			41.9
Deferred revenue		67.5			62.7
Other current liabilities		91.2			62.0
Total current liabilities		471.3			582.1
Long-term debt		1,240.9			173.9
Deferred income tax liabilities, net		263.9			70.8
Long-term pension and other postretirement benefit liabilities		60.5			65.3
Other long-term liabilities		66.6			60.4
Total liabilities		2,103.2			952.5
Shareholders’ equity:
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none		—			—
Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 188.1 and 186.3 at September 30, 2007 and December 31, 2006, respectively; Outstanding shares - 131.9 and 124.7 at September 30, 2007 and December 31, 2006, respectively		235.1			232.9
Paid-in capital		996.6			609.2
Retained earnings		1,969.7			1,778.6
Accumulated other comprehensive loss		(185.8		)	(232.2		)
Treasury stock, at cost, 52.5 shares and 57.7 shares at September 30, 2007 and December 31, 2006		(1,580.5		)	(1,490.9		)
Stock held by employee benefits trusts, at cost, 3.7 and 3.9 shares at September 30, 2007 and December 31, 2006		(57.6		)	(59.5		)
Total shareholders’ equity		1,377.5			838.1
Total liabilities and shareholders’ equity		$	3,480.7		$	1,790.6

 

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EQUIFAX

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

		Nine Months Ended
		September 30,
(In millions)		2007			2006
		(Unaudited)
Operating activities:
Net income		$	207.0		$	211.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		89.9			62.0
Stock-based compensation expense		13.2			14.4
Tax effects of stock-based compensation plans		12.9			6.9
Excess tax benefits from stock-based compensation plans		(12.5		)	(5.2		)
Deferred income taxes		(4.2		)	3.7
Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net		(4.5		)	(29.3		)
Prepaid expenses and other current assets		(9.6		)	(6.7		)
Other assets		(16.7		)	(3.9		)
Current liabilities, excluding debt		(8.9		)	26.1
Other long-term liabilities, excluding debt		5.2			(25.7		)
Cash provided by operating activities		271.8			253.7
Investing activities:
Capital expenditures		(85.3		)	(34.1		)
Acquisitions, net of cash acquired		(291.0		)	—
Other		(3.8		)	(0.1		)
Cash used in investing activities		(380.1		)	(34.2		)
Financing activities:
Net short-term borrowings (repayments)		88.1			(0.6		)
Net borrowings (repayments) under long-term revolving credit facilities		78.4			(47.0		)
Treasury stock purchases		(605.7		)	(163.9		)
Dividends paid		(15.4		)	(15.3		)
Proceeds from exercise of stock options		27.1			19.8
Excess tax benefits from stock-based compensation plans		12.5			5.2
Proceeds from issuance of long-term debt		543.9			—
Other		(5.3		)	(0.2		)
Cash provided by (used in) financing activities		123.6			(202.0		)
Effect of foreign currency exchange rates on cash and cash equivalents		3.9			0.7
Increase in cash and cash equivalents		19.2			18.2
Cash and cash equivalents, beginning of period		67.8			37.5
Cash and cash equivalents, end of period		$	87.0		$	55.7

 

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Common Questions & Answers (Unaudited)

(Dollars in millions)

 

1.     Can you provide a further analysis of operating revenue and operating income by operating segment?

 

Operating revenue and operating income consist of the following components:

 

		Three Months Ended September 30,
					% of					% of
(in millions)		2007			Revenue		2006*			Revenue		$ Change			% Change
Operating revenue:
U.S. Consumer Information Solutions		$	243.9		50	%	$	245.5		62	%	$	(1.6	)	-1	%
International		122.9			25	%	105.1			27	%	17.8			17	%
North America Personal Solutions		38.6			8	%	32.5			8	%	6.1			19	%
North America Commercial Solutions		16.7			3	%	11.5			3	%	5.2			45	%
TALX		70.4			14	%	—			nm		70.4			nm
Total operating revenue		$	492.5		100	%	$	394.6		100	%	$	97.9		25	%

 

		Three Months Ended September 30,
					Operating					Operating
(in millions)		2007			Margin		2006*			Margin		$ Change			% Change
Operating income:
U.S. Consumer Information Solutions		$	97.0		39.8	%	$	96.0		39.1	%	$	1.0		1	%
International		38.4			31.2	%	31.2			29.7	%	7.2			23	%
North America Personal Solutions		10.4			26.9	%	15.6			48.1	%	(5.2		)	-33	%
North America Commercial Solutions		3.2			19.5	%	2.4			21.3	%	0.8			33	%
TALX		10.0			14.2	%	—			nm		10.0			nm
General Corporate Expense		(29.8		)	nm		(24.6		)	nm		(5.2		)	-21	%
Total operating income		$	129.2		26.2	%	$	120.6		30.6	%	$	8.6		7	%

 

		Nine Months Ended September 30,
					% of					% of
(in millions)		2007			Revenue		2006*			Revenue		$ Change			% Change
Operating revenue:
U.S. Consumer Information Solutions		$	741.0		55	%	$	731.5		63	%	$	9.5		1	%
International		343.9			25	%	297.9			26	%	46.0			15	%
North America Personal Solutions		115.3			9	%	94.3			8	%	21.0			22	%
North America Commercial Solutions		46.4			3	%	32.6			3	%	13.8			42	%
TALX		105.6			8	%	—			nm		105.6			nm
Total operating revenue		$	1,352.2		100	%	$	1,156.3		100	%	$	195.9		17	%

 

		Nine Months Ended September 30,
					Operating					Operating
(in millions)		2007			Margin		2006*			Margin		$ Change			% Change
Operating income:
U.S. Consumer Information Solutions		$	299.8		40.5	%	$	297.7		40.7	%	$	2.1		1	%
International		104.3			30.3	%	87.8			29.5	%	16.5			19	%
North America Personal Solutions		24.0			20.8	%	5.2			5.5	%	18.8			362	%
North America Commercial Solutions		5.6			12.1	%	5.2			16.0	%	0.4			8	%
TALX		14.5			13.7	%	—			nm		14.5			nm
General Corporate Expense		(82.2		)	nm		(69.7		)	nm		(12.5		)	-18	%
Total operating income		$	366.0		27.1	%	$	326.2		28.2	%	$	39.8		12	%

 

* Effective January 1, 2007, we completed our organizational realignment which changed our operating segments. Therefore, the three and nine month 2006 financial results have been recast to be consistent with the 2007 presentation.

 

nm - - not meaningful

 

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2.           Can you provide a further analysis of operating revenue in the product and services lines, or geographic regions within each operating segment?

Operating revenue consists of the following components:

 

		Three Months Ended September 30,
					% of					% of
(in millions)		2007			Revenue		2006*			Revenue		$ Change			% Change
Operating revenue:
Online Consumer Information Solutions		$	160.9		33	%	$	159.4		40	%	$	1.5		1	%
Mortgage Reporting Solutions		16.9			3	%	17.4			4	%	(0.5		)	-3	%
Credit Marketing Services		39.2			8	%	41.7			11	%	(2.5		)	-6	%
Direct Marketing Services		26.9			6	%	27.0			7	%	(0.1		)	-1	%
Total U.S. Consumer Information Solutions		243.9			50	%	245.5			62	%	(1.6		)	-1	%
Europe		47.6			10	%	39.7			10	%	7.9			20	%
Latin America		47.1			10	%	40.7			11	%	6.4			16	%
Canada Consumer		28.2			5	%	24.7			6	%	3.5			14	%
Total International		122.9			25	%	105.1			27	%	17.8			17	%
North America Personal Solutions		38.6			8	%	32.5			8	%	6.1			19	%
North America Commercial Solutions		16.7			3	%	11.5			3	%	5.2			45	%
The Work Number		29.1			6	%	—			nm		29.1			nm
Tax and Talent Management Services		41.3			8	%	—			nm		41.3			nm
Total TALX		70.4			14	%	—			nm		70.4			nm
Total operating revenue		$	492.5		100	%	$	394.6		100	%	$	97.9		25	%

 

		Nine Months Ended September 30,
					% of					% of
(in millions)		2007			Revenue		2006*			Revenue		$ Change			% Change
Operating revenue:
Online Consumer Information Solutions		$	488.4		36	%	$	471.2		41	%	$	17.2		4	%
Mortgage Reporting Solutions		53.4			4	%	56.7			5	%	(3.3		)	-6	%
Credit Marketing Services		119.3			9	%	122.0			10	%	(2.7		)	-2	%
Direct Marketing Services		79.9			6	%	81.6			7	%	(1.7		)	-2	%
Total U.S. Consumer Information Solutions		741.0			55	%	731.5			63	%	9.5			1	%
Europe		135.0			10	%	112.2			10	%	22.8			20	%
Latin America		130.9			10	%	114.2			10	%	16.7			15	%
Canada Consumer		78.0			5	%	71.5			6	%	6.5			9	%
Total International		343.9			25	%	297.9			26	%	46.0			15	%
North America Personal Solutions		115.3			9	%	94.3			8	%	21.0			22	%
North America Commercial Solutions		46.4			3	%	32.6			3	%	13.8			42	%
The Work Number		44.6			3	%	—			nm		44.6			nm
Tax and Talent Management Services		61.0			5	%	—			nm		61.0			nm
Total TALX		105.6			8	%	—			nm		105.6			nm
Total operating revenue		$	1,352.2		100	%	$	1,156.3		100	%	$	195.9		17	%

 

* Effective January 1, 2007, we completed our organizational realignment which changed our operating segments. Therefore, the three and nine month 2006 financial results have been recast to be consistent with the 2007 presentation.

 

nm - - not meaningful

 

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3.            What drove the fluctuation in the effective tax rate?

Our effective income tax rate was 37.6% for the three months ended September 30, 2007, up from 29.7% for the same period in 2006, due primarily to the reversal of $9.5 million of income tax reserves related to uncertain tax positions for which the applicable statute of limitations expired during the third quarter of 2006. The effective income tax rate was 36.6% for the nine months ended September 30, 2007, up from 32.9% for the same period in 2006 due to the $14.1 million non-taxable litigation settlement recorded during the second quarter of 2006 and the reversal of income tax reserves in 2006 discussed above. On a non-GAAP basis, the three- and nine-month effective tax rates in 2006 excluding the impact of the reversal of the uncertain tax position noted above and the $14.1 million non-taxable litigation settlement were 38.1% and 37.7%, respectively. Additionally, the September 30, 2007 rate reflects a lower foreign and state tax rate compared to 2006 and a favorable second quarter 2007 discrete item related to our foreign tax credit utilization.

 

4.           Can you provide depreciation and amortization by segment?

Depreciation and amortization are as follows:

 

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2007			2006			2007			2006
U.S. Consumer Information Solutions		$	11.9		$	11.6		$	35.4		$	34.6
International		5.5			4.7			15.5			14.3
North America Personal Solutions		0.6			0.7			2.3			2.3
North America Commercial Solutions		1.4			1.0			4.2			2.8
TALX		15.9			—			23.3			—
General Corporate Expense		3.6			2.4			9.2			8.0
Total depreciation and amortization		$	38.9		$	20.4		$	89.9		$	62.0

 

5.           What was the currency impact on the foreign operations?

The U.S. dollar impact on operating revenue and operating income is as follows:

 

		Three Months Ended September 30, 2007
		Operating Revenue					Operating Income
		Amount			%		Amount			%
Canada *		$	2.4		8	%	$	0.9		8	%
Europe		3.4			9	%	0.9			10	%
Latin America		2.9			7	%	0.7			5	%
		$	8.7		2	%	$	2.5		2	%

 

		Nine Months Ended September 30, 2007
		Operating Revenue					Operating Income
		Amount			%		Amount			%
Canada*		$	2.6		3	%	$	1.0		3	%
Europe		11.1			10	%	2.7			10	%
Latin America		5.4			5	%	1.1			3	%
		$	19.1		2	%	$	4.8		2	%

 

* Canada financial results are reported in both our North America Commercial Solutions and International operating segments.

 

6.           What was the share repurchase activity for the quarter?

We repurchased 11.1 million shares of our common stock on the open market for $441.6 million during the third quarter of 2007. At September 30, 2007, $161.7 million remained authorized for future share repurchases.

 

7.           What was the weighted average cost of debt?

The weighted average cost of debt was 6.1% at September 30, 2007, an increase from 5.7% at September 30, 2006, due primarily to the issuance of longer term fixed rate debt in the second quarter of 2007.

 

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