x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
Georgia
(State
or other jurisdiction of
incorporation
or organization)
|
58-0401110
(I.R.S.
Employer
Identification
No.)
|
1550
Peachtree Street, N.W., Atlanta, Georgia
(Address
of principal executive offices)
|
30309
(Zip
Code)
|
Large
accelerated filer x
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
(Do
not check if a smaller
reporting
company)
|
Smaller
reporting company ¨
|
Page
|
||
PART
I.
|
Financial
Information
|
4
|
Item 1.
|
Financial
Statements (Unaudited)
|
4
|
Consolidated
Statements of Income—Three Months Ended June 30, 2010 and
2009
|
4
|
|
Consolidated
Statements of Income—Six Months Ended June 30, 2010 and
2009
|
5
|
|
Consolidated
Balance Sheets—June 30, 2010 and December 31,
2009
|
6
|
|
Consolidated
Statements of Cash Flows—Six Months Ended June 30, 2010 and
2009
|
7
|
|
Consolidated
Statements of Equity and Other Comprehensive Income—Six Months Ended June
30, 2010
|
8
|
|
Notes
to Consolidated Financial Statements
|
10
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
21
|
Item 3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
34
|
Item 4.
|
Controls
and Procedures
|
34
|
PART
II.
|
Other
Information
|
35
|
Item
1.
|
Legal
Proceedings
|
35
|
Item 1A.
|
Risk
Factors
|
35
|
Item 2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
35
|
Item
6.
|
Exhibits
|
36
|
Signatures
|
37
|
|
Index
to Exhibits
|
38
|
Three Months Ended
|
||||||||
June 30
|
||||||||
2010
|
2009
|
|||||||
(In
millions, except per share amounts)
|
(Unaudited)
|
|||||||
Operating
revenue
|
$ | 460.7 | $ | 429.1 | ||||
Operating
expenses:
|
||||||||
Cost
of services (exclusive of depreciation and amortization
below)
|
188.3 | 180.4 | ||||||
Selling,
general and administrative expenses
|
126.9 | 111.1 | ||||||
Depreciation
and amortization
|
39.7 | 35.6 | ||||||
Total
operating expenses
|
354.9 | 327.1 | ||||||
Operating
income
|
105.8 | 102.0 | ||||||
Interest
expense
|
(14.1 | ) | (14.5 | ) | ||||
Other
income, net
|
0.8 | 3.1 | ||||||
Consolidated
income from continuing operations before income taxes
|
92.5 | 90.6 | ||||||
Provision
for income taxes
|
(32.7 | ) | (32.7 | ) | ||||
Consolidated
income from continuing operations
|
59.8 | 57.9 | ||||||
Discontinued
operations, net of tax
|
13.6 | 3.2 | ||||||
Consolidated
net income
|
73.4 | 61.1 | ||||||
Less: Net
income attributable to noncontrolling interests
|
(2.1 | ) | (1.5 | ) | ||||
Net
income attributable to Equifax
|
$ | 71.3 | $ | 59.6 | ||||
Amounts
attributable to Equifax:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 57.7 | $ | 56.4 | ||||
Discontinued
operations, net of tax
|
13.6 | 3.2 | ||||||
Net
income attributable to Equifax
|
$ | 71.3 | $ | 59.6 | ||||
Basic
earnings per common share:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 0.46 | $ | 0.44 | ||||
Discontinued
operations attributable to Equifax
|
0.11 | 0.03 | ||||||
Net
income attributable to Equifax
|
$ | 0.57 | $ | 0.47 | ||||
Weighted-average
shares used in computing basic earnings per share
|
125.7 | 126.3 | ||||||
Diluted
earnings per common share:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 0.45 | $ | 0.44 | ||||
Discontinued
operations attributable to Equifax
|
0.11 | 0.03 | ||||||
Net
income attributable to Equifax
|
$ | 0.56 | $ | 0.47 | ||||
Weighted-average
shares used in computing diluted earnings per share
|
127.3 | 127.8 | ||||||
Dividends
per common share
|
$ | 0.04 | $ | 0.04 |
Six Months Ended
|
||||||||
June 30
|
||||||||
2010
|
2009
|
|||||||
(In
millions, except per share amounts)
|
(Unaudited)
|
|||||||
Operating
revenue
|
$ | 903.7 | $ | 855.6 | ||||
Operating
expenses:
|
||||||||
Cost
of services (exclusive of depreciation and amortization
below)
|
378.4 | 357.5 | ||||||
Selling,
general and administrative expenses
|
236.4 | 228.8 | ||||||
Depreciation
and amortization
|
78.8 | 70.4 | ||||||
Total
operating expenses
|
693.6 | 656.7 | ||||||
Operating
income
|
210.1 | 198.9 | ||||||
Interest
expense
|
(28.3 | ) | (28.8 | ) | ||||
Other
income, net
|
0.3 | 5.6 | ||||||
Consolidated
income from continuing operations before income taxes
|
182.1 | 175.7 | ||||||
Provision
for income taxes
|
(66.4 | ) | (65.3 | ) | ||||
Consolidated
income from continuing operations
|
115.7 | 110.4 | ||||||
Discontinued
operations, net of tax
|
16.3 | 6.8 | ||||||
Consolidated
net income
|
132.0 | 117.2 | ||||||
Less: Net
income attributable to noncontrolling interests
|
(4.0 | ) | (3.2 | ) | ||||
Net
income attributable to Equifax
|
$ | 128.0 | $ | 114.0 | ||||
Amounts
attributable to Equifax:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 111.7 | $ | 107.2 | ||||
Discontinued
operations, net of tax
|
16.3 | 6.8 | ||||||
Net
income attributable to Equifax
|
$ | 128.0 | $ | 114.0 | ||||
Basic
earnings per common share:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 0.89 | $ | 0.85 | ||||
Discontinued
operations attributable to Equifax
|
0.13 | 0.05 | ||||||
Net
income attributable to Equifax
|
$ | 1.02 | $ | 0.90 | ||||
Weighted-average
shares used in computing basic earnings per share
|
126.0 | 126.3 | ||||||
Diluted
earnings per common share:
|
||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 0.87 | $ | 0.84 | ||||
Discontinued
operations attributable to Equifax
|
0.13 | 0.05 | ||||||
Net
income attributable to Equifax
|
$ | 1.00 | $ | 0.89 | ||||
Weighted-average
shares used in computing diluted earnings per share
|
127.7 | 127.6 | ||||||
Dividends
per common share
|
$ | 0.08 | $ | 0.08 |
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In
millions, except par values)
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 70.1 | $ | 103.1 | ||||
Trade
accounts receivable, net of allowance for doubtful accounts of $10.9 and
$15.1 at June 30, 2010 and December 31, 2009,
respectively
|
260.5 | 258.7 | ||||||
Prepaid
expenses
|
32.2 | 27.6 | ||||||
Other
current assets
|
110.2 | 27.4 | ||||||
Total
current assets
|
473.0 | 416.8 | ||||||
Property
and equipment:
|
||||||||
Capitalized
internal-use software and system costs
|
293.6 | 316.6 | ||||||
Data
processing equipment and furniture
|
171.7 | 184.2 | ||||||
Land,
buildings and improvements
|
166.1 | 164.5 | ||||||
Total
property and equipment
|
631.4 | 665.3 | ||||||
Less
accumulated depreciation and amortization
|
(330.5 | ) | (346.0 | ) | ||||
Total
property and equipment, net
|
300.9 | 319.3 | ||||||
Goodwill
|
1,855.4 | 1,943.2 | ||||||
Indefinite-lived
intangible assets
|
95.5 | 95.5 | ||||||
Purchased
intangible assets, net
|
610.5 | 687.0 | ||||||
Other
assets, net
|
96.8 | 88.7 | ||||||
Total
assets
|
$ | 3,432.1 | $ | 3,550.5 | ||||
LIABILITIES
AND EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Short-term
debt and current maturities
|
$ | 87.5 | $ | 154.2 | ||||
Capitalized
lease obligation
|
- | 29.0 | ||||||
Accounts
payable
|
26.2 | 35.9 | ||||||
Accrued
expenses
|
62.6 | 67.7 | ||||||
Accrued
salaries and bonuses
|
37.3 | 58.1 | ||||||
Deferred
revenue
|
62.9 | 69.8 | ||||||
Other
current liabilities
|
93.2 | 77.5 | ||||||
Total
current liabilities
|
369.7 | 492.2 | ||||||
Long-term
debt
|
979.4 | 990.9 | ||||||
Deferred
income tax liabilities, net
|
236.5 | 249.3 | ||||||
Long-term
pension and other postretirement benefit liabilities
|
117.3 | 142.5 | ||||||
Other
long-term liabilities
|
50.3 | 60.6 | ||||||
Total
liabilities
|
1,753.2 | 1,935.5 | ||||||
Commitments
and Contingencies (see Note 5)
|
||||||||
Equifax
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 -
189.3 at June 30, 2010 and December 31, 2009; Outstanding shares
- 125.0 and 126.2 at June 30, 2010 and December 31, 2009,
respectively
|
236.6 | 236.6 | ||||||
Paid-in
capital
|
1,101.0 | 1,102.0 | ||||||
Retained
earnings
|
2,612.1 | 2,494.2 | ||||||
Accumulated
other comprehensive loss
|
(332.2 | ) | (318.7 | ) | ||||
Treasury
stock, at cost, 62.2 shares and 61.0 shares at June 30, 2010 and December
31, 2009, respectively
|
(1,912.6 | ) | (1,871.7 | ) | ||||
Stock
held by employee benefits trusts, at cost, 2.1 shares at June 30, 2010 and
December 31, 2009
|
(41.2 | ) | (41.2 | ) | ||||
Total
Equifax shareholders' equity
|
1,663.7 | 1,601.2 | ||||||
Noncontrolling
interests
|
15.2 | 13.8 | ||||||
Total
equity
|
1,678.9 | 1,615.0 | ||||||
Total
liabilities and equity
|
$ | 3,432.1 | $ | 3,550.5 |
Six Months Ended
|
||||||||
June 30,
|
||||||||
2010
|
2009
|
|||||||
(In
millions)
|
(Unaudited)
|
|||||||
Operating
activities:
|
||||||||
Consolidated
net income
|
$ | 132.0 | $ | 117.2 | ||||
Adjustments
to reconcile consolidated net income to net cash provided by operating
activities:
|
||||||||
Gain
on divestiture
|
(12.3 | ) | - | |||||
Depreciation
and amortization
|
84.3 | 77.3 | ||||||
Stock-based
compensation expense
|
10.9 | 9.8 | ||||||
Tax
effects of stock-based compensation plans
|
1.4 | 0.1 | ||||||
Excess
tax benefits from stock-based compensation plans
|
(1.4 | ) | (0.5 | ) | ||||
Deferred
income taxes
|
0.6 | 6.7 | ||||||
Changes
in assets and liabilities, excluding effects of
acquisitions:
|
||||||||
Accounts
receivable, net
|
(8.4 | ) | 6.4 | |||||
Prepaid
expenses and other current assets
|
(1.2 | ) | (10.2 | ) | ||||
Other
assets
|
4.0 | (5.5 | ) | |||||
Current
liabilities, excluding debt
|
(41.6 | ) | (42.2 | ) | ||||
Other
long-term liabilities, excluding debt
|
(29.4 | ) | (13.5 | ) | ||||
Cash
provided by operating activities
|
138.9 | 145.6 | ||||||
Investing
activities:
|
||||||||
Capital
expenditures
|
(66.9 | ) | (34.0 | ) | ||||
Acquisitions,
net of cash acquired
|
(14.7 | ) | - | |||||
Cash
received from divestiture
|
66.7 | - | ||||||
Dividend
from unconsolidated affiliates
|
1.0 | 1.5 | ||||||
Cash
used in investing activities
|
(13.9 | ) | (32.5 | ) | ||||
Financing
activities:
|
||||||||
Net
short-term borrowings (repayments)
|
(66.9 | ) | 282.4 | |||||
Net
repayments under long-term revolving credit facilities
|
(5.0 | ) | (370.0 | ) | ||||
Payments
on long-term debt
|
(18.7 | ) | (6.5 | ) | ||||
Treasury
stock purchases
|
(64.8 | ) | (9.1 | ) | ||||
Dividends
paid to Equifax shareholders
|
(9.9 | ) | (10.1 | ) | ||||
Dividends
paid to noncontrolling interests
|
(2.3 | ) | (2.5 | ) | ||||
Proceeds
from exercise of stock options
|
12.4 | 4.8 | ||||||
Excess
tax benefits from stock-based compensation plans
|
1.4 | 0.5 | ||||||
Other
|
(0.5 | ) | (0.5 | ) | ||||
Cash
used in financing activities
|
(154.3 | ) | (111.0 | ) | ||||
Effect
of foreign currency exchange rates on cash and cash
equivalents
|
(3.7 | ) | 3.3 | |||||
(Decrease)
increase in cash and cash equivalents
|
(33.0 | ) | 5.4 | |||||
Cash
and cash equivalents, beginning of period
|
103.1 | 58.2 | ||||||
Cash
and cash equivalents, end of period
|
$ | 70.1 | $ | 63.6 |
Equifax Shareholders
|
||||||||||||||||||||||||||||||||||||
Stock
|
||||||||||||||||||||||||||||||||||||
Accumulated
|
Held By
|
|||||||||||||||||||||||||||||||||||
Common Stock
|
Other
|
Employee
|
||||||||||||||||||||||||||||||||||
Shares
|
Paid-In
|
Retained
|
Comprehensive
|
Treasury
|
Benefits
|
Noncontrolling
|
Total
|
|||||||||||||||||||||||||||||
Outstanding
|
Amount
|
Capital
|
Earnings
|
Loss
|
Stock
|
Trusts
|
Interests
|
Equity
|
||||||||||||||||||||||||||||
(In
millions, except per share amounts)
|
||||||||||||||||||||||||||||||||||||
Balance,
December 31, 2009
|
126.2 | $ | 236.6 | $ | 1,102.0 | $ | 2,494.2 | $ | (318.7 | ) | $ | (1,871.7 | ) | $ | (41.2 | ) | $ | 13.8 | $ | 1,615.0 | ||||||||||||||||
Net
income
|
- | - | - | 128.0 | - | - | - | 4.0 | 132.0 | |||||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | (13.5 | ) | - | - | (0.3 | ) | (13.8 | ) | ||||||||||||||||||||||||
Shares
issued under stock and benefit plans, net of minimum tax
withholdings
|
0.8 | - | (13.5 | ) | - | - | 23.9 | - | - | 10.4 | ||||||||||||||||||||||||||
Treasury
stock purchased under share repurchase program ($32.41 per
share)*
|
(2.0 | ) | - | - | - | - | (64.8 | ) | - | - | (64.8 | ) | ||||||||||||||||||||||||
Cash
dividends ($0.08 per share)
|
- | - | - | (10.1 | ) | - | - | - | - | (10.1 | ) | |||||||||||||||||||||||||
Dividends
paid to employee benefits trusts
|
- | - | 0.2 | - | - | - | - | - | 0.2 | |||||||||||||||||||||||||||
Stock-based
compensation expense
|
- | - | 10.9 | - | - | - | - | - | 10.9 | |||||||||||||||||||||||||||
Tax
effects of stock-based compensation plans
|
- | - | 1.4 | - | - | - | - | - | 1.4 | |||||||||||||||||||||||||||
Dividends
paid to noncontrolling interests
|
- | - | - | - | - | - | - | (2.3 | ) | (2.3 | ) | |||||||||||||||||||||||||
Balance,
June 30, 2010
|
125.0 | $ | 236.6 | $ | 1,101.0 | $ | 2,612.1 | $ | (332.2 | ) | $ | (1,912.6 | ) | $ | (41.2 | ) | $ | 15.2 | $ | 1,678.9 |
*
|
At
June 30, 2010, $207.2 million was authorized for future purchases of
common stock under our share repurchase
authorization.
|
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In
millions)
|
||||||||
Foreign
currency translation
|
$ | (116.9 | ) | $ | (99.9 | ) | ||
Unrecognized
actuarial losses and prior service cost related to our pension and other
postretirement benefit plans, net of accumulated tax of $122.9 and $124.9
at June 30, 2010 and December 31, 2009, respectively
|
(212.8 | ) | (216.2 | ) | ||||
Cash
flow hedging transactions, net of tax of $1.6 and $1.7 at June 30, 2010
and December 31, 2009, respectively
|
(2.5 | ) | (2.6 | ) | ||||
Accumulated
other comprehensive loss
|
$ | (332.2 | ) | $ | (318.7 | ) |
Three Months Ended June 30,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Equifax
|
Noncontrolling
|
Equifax
|
Noncontrolling
|
|||||||||||||||||||||
Shareholders
|
Interests
|
Total
|
Shareholders
|
Interests
|
Total
|
|||||||||||||||||||
(In
millions)
|
||||||||||||||||||||||||
Net
income
|
$ | 71.3 | $ | 2.1 | $ | 73.4 | $ | 59.6 | $ | 1.5 | $ | 61.1 | ||||||||||||
Other
comprehensive income:
|
||||||||||||||||||||||||
Foreign
currency translation adjustment
|
(3.8 | ) | (0.2 | ) | (4.0 | ) | 48.7 | 0.5 | 49.2 | |||||||||||||||
Recognition
of prior service cost and actuarial gains related to our pension and other
postretirement benefit plans
|
1.7 | - | 1.7 | 1.6 | - | 1.6 | ||||||||||||||||||
Change
in cumulative loss from cash flow hedging transactions
|
- | - | - | 0.1 | - | 0.1 | ||||||||||||||||||
Comprehensive
income
|
$ | 69.2 | $ | 1.9 | $ | 71.1 | $ | 110.0 | $ | 2.0 | $ | 112.0 |
Six Months Ended June 30,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
Equifax
|
Noncontrolling
|
Equifax
|
Noncontrolling
|
|||||||||||||||||||||
Shareholders
|
Interests
|
Total
|
Shareholders
|
Interests
|
Total
|
|||||||||||||||||||
(In
millions)
|
||||||||||||||||||||||||
Net
income
|
$ | 128.0 | $ | 4.0 | $ | 132.0 | $ | 114.0 | $ | 3.2 | $ | 117.2 | ||||||||||||
Other
comprehensive income:
|
||||||||||||||||||||||||
Foreign
currency translation adjustment
|
(17.0 | ) | (0.3 | ) | (17.3 | ) | 53.8 | (0.1 | ) | 53.7 | ||||||||||||||
Recognition
of prior service cost and actuarial gains related to our pension and other
postretirement benefit plans
|
3.4 | - | 3.4 | 3.2 | - | 3.2 | ||||||||||||||||||
Change
in cumulative loss from cash flow hedging transactions
|
0.1 | - | 0.1 | 0.4 | - | 0.4 | ||||||||||||||||||
Comprehensive
income
|
$ | 114.5 | $ | 3.7 | $ | 118.2 | $ | 171.4 | $ | 3.1 | $ | 174.5 |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In
millions)
|
||||||||||||||||
Weighted-average
shares outstanding (basic)
|
125.7 | 126.3 | 126.0 | 126.3 | ||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Stock
options and restricted stock units
|
1.4 | 1.4 | 1.5 | 1.3 | ||||||||||||
Long-term
incentive plans
|
0.2 | 0.1 | 0.2 | - | ||||||||||||
Weighted-average
shares outstanding (diluted)
|
127.3 | 127.8 | 127.7 | 127.6 |
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
Description
|
Fair Value of
Assets
(Liabilities) at
June 30, 2010
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
(In
millions)
|
||||||||||||||||
Interest
Rate Swaps(2)
|
$ | 9.7 | $ | - | $ | 9.7 | $ | - | ||||||||
Notes, due 2014 | (284.7 | ) | - | (284.7 | ) | - | ||||||||||
Deferred
Compensation Plan(1)
|
(11.6 | ) | (11.6 | ) | - | - | ||||||||||
Total
|
$ | (286.6 | ) | $ | (11.6 | ) | $ | (275.0 | ) | $ | - |
June
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(In
millions)
|
(In
millions)
|
|||||||
Current
assets
|
$ | 2.9 | $ | 6.9 | ||||
Noncurrent
assets
|
84.7 | 132.3 | ||||||
Current
liabilities
|
(6.2 | ) | (8.5 | ) | ||||
Noncurrent
liabilities
|
(1.2 | ) | (1.6 | ) | ||||
Net
assets
|
$ | 80.2 | $ | 129.1 |
U.S. Consumer
|
North America
|
North America
|
||||||||||||||||||||||
Information
|
Personal
|
Commercial
|
||||||||||||||||||||||
Solutions
|
International
|
TALX
|
Solutions
|
Solutions
|
Total
|
|||||||||||||||||||
(In
millions)
|
||||||||||||||||||||||||
Balance,
December 31, 2009
|
$ | 667.8 | $ | 335.7 | $ | 900.6 | $ | 1.8 | $ | 37.3 | $ | 1,943.2 | ||||||||||||
Acquisitions
|
4.4 | 4.4 | ||||||||||||||||||||||
Adjustments
to initial purchase price allocation
|
(0.3 | ) | - | - | - | - | (0.3 | ) | ||||||||||||||||
Foreign
currency translation
|
- | (11.7 | ) | - | - | 0.1 | (11.6 | ) | ||||||||||||||||
Tax
benefits of stock options exercised
|
- | - | (0.6 | ) | - | - | (0.6 | ) | ||||||||||||||||
Businesses
held for sale or sold
|
(79.7 | ) | - | - | - | - | (79.7 | ) | ||||||||||||||||
Balance,
June 30, 2010
|
$ | 587.8 | $ | 328.4 | $ | 900.0 | $ | 1.8 | $ | 37.4 | $ | 1,855.4 |
June 30, 2010
|
December 31, 2009
|
|||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Gross
|
Amortization
|
Net
|
Gross
|
Amortization
|
Net
|
|||||||||||||||||||
Definite-lived
intangible assets:
|
(In
millions)
|
|||||||||||||||||||||||
Purchased
data files
|
$ | 333.3 | $ | (225.2 | ) | $ | 108.1 | $ | 373.8 | $ | (240.6 | ) | $ | 133.2 | ||||||||||
Acquired
software and technology
|
41.5 | (27.9 | ) | 13.6 | 70.3 | (37.1 | ) | 33.2 | ||||||||||||||||
Customer
relationships
|
480.0 | (81.5 | ) | 398.5 | 488.0 | (70.8 | ) | 417.2 | ||||||||||||||||
Proprietary
database
|
125.0 | (63.4 | ) | 61.6 | 125.0 | (52.2 | ) | 72.8 | ||||||||||||||||
Non-compete
agreements
|
3.5 | (0.8 | ) | 2.7 | 3.3 | (0.5 | ) | 2.8 | ||||||||||||||||
Trade
names and other intangible assets
|
36.1 | (10.1 | ) | 26.0 | 36.0 | (8.2 | ) | 27.8 | ||||||||||||||||
Total
definite-lived intangible assets
|
$ | 1,019.4 | $ | (408.9 | ) | $ | 610.5 | $ | 1,096.4 | $ | (409.4 | ) | $ | 687.0 |
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In
millions)
|
||||||||
Commercial
paper, weighted-average rate of 0.4% in both 2010 and 2009
|
$ | 67.1 | $ | 135.0 | ||||
Notes,
4.25%, due in installments through March 2012
|
4.6 | 7.6 | ||||||
Notes,
7.34%, due in installments through May 2014
|
60.0 | 75.0 | ||||||
Notes,
4.45%, due December 2014
|
275.0 | 275.0 | ||||||
Notes,
6.30%, due July 2017
|
272.5 | 272.5 | ||||||
Debentures,
6.90%, due July 2028
|
125.0 | 125.0 | ||||||
Notes,
7.00%, due July 2037
|
250.0 | 250.0 | ||||||
Borrowings
under long-term revolving credit facilities, weighted-average rate of 0.9%
in 2009
|
- | 4.8 | ||||||
Capitalized
lease obligation
|
- | 29.0 | ||||||
Other
|
3.0 | 3.1 | ||||||
Total
debt
|
1,057.2 | 1,177.0 | ||||||
Less
short-term debt and current maturities
|
(87.5 | ) | (154.2 | ) | ||||
Less
capitalized lease obligation
|
- | (29.0 | ) | |||||
Less
unamortized discounts
|
(2.3 | ) | (2.4 | ) | ||||
Plus
fair value adjustments
|
12.0 | (0.5 | ) | |||||
Total
long-term debt, net
|
$ | 979.4 | $ | 990.9 |
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Three Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In
millions)
|
||||||||||||||||
Service
cost
|
$ | 1.4 | $ | 1.4 | $ | 0.1 | $ | 0.1 | ||||||||
Interest
cost
|
8.7 | 8.8 | 0.4 | 0.5 | ||||||||||||
Expected
return on plan assets
|
(11.1 | ) | (11.3 | ) | (0.4 | ) | (0.4 | ) | ||||||||
Amortization
of prior service cost
|
0.2 | 0.2 | - | - | ||||||||||||
Recognized
actuarial loss
|
2.3 | 2.2 | 0.3 | 0.3 | ||||||||||||
Total
net periodic benefit cost
|
$ | 1.5 | $ | 1.3 | $ | 0.4 | $ | 0.5 |
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Six Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In
millions)
|
||||||||||||||||
Service
cost
|
$ | 2.9 | $ | 2.8 | $ | 0.2 | $ | 0.2 | ||||||||
Interest
cost
|
17.4 | 17.6 | 0.9 | 1.0 | ||||||||||||
Expected
return on plan assets
|
(22.2 | ) | (22.6 | ) | (0.8 | ) | (0.8 | ) | ||||||||
Amortization
of prior service cost
|
0.4 | 0.4 | (0.1 | ) | (0.1 | ) | ||||||||||
Recognized
actuarial loss
|
4.5 | 4.4 | 0.6 | 0.6 | ||||||||||||
Total
net periodic benefit cost
|
$ | 3.0 | $ | 2.6 | $ | 0.8 | $ | 0.9 |
|
•
|
U.S. Consumer Information
Solutions
|
|
•
|
International
|
|
•
|
TALX
|
|
•
|
North America Personal
Solutions
|
|
•
|
North
America Commercial Solutions
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(In millions)
|
June 30,
|
June 30,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Operating revenue:
|
||||||||||||||||
U.S.
Consumer Information Solutions
|
$ | 184.6 | $ | 184.7 | $ | 357.7 | $ | 368.3 | ||||||||
International
|
118.2 | 105.2 | 234.4 | 206.0 | ||||||||||||
TALX
|
99.0 | 86.0 | 194.3 | 173.9 | ||||||||||||
North
America Personal Solutions
|
40.3 | 37.5 | 80.0 | 75.9 | ||||||||||||
North
America Commercial Solutions
|
18.6 | 15.7 | 37.3 | 31.5 | ||||||||||||
Total
operating revenue
|
$ | 460.7 | $ | 429.1 | $ | 903.7 | $ | 855.6 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
(In millions)
|
June 30,
|
June 30,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Operating income:
|
||||||||||||||||
U.S.
Consumer Information Solutions
|
$ | 68.3 | $ | 69.1 | $ | 128.4 | $ | 138.8 | ||||||||
International
|
30.1 | 26.6 | 58.8 | 55.5 | ||||||||||||
TALX
|
23.0 | 20.0 | 44.5 | 38.8 | ||||||||||||
North
America Personal Solutions
|
10.2 | 8.0 | 20.2 | 14.0 | ||||||||||||
North
America Commercial Solutions
|
3.7 | 2.4 | 8.1 | 4.7 | ||||||||||||
General
Corporate Expense
|
(29.5 | ) | (24.1 | ) | (49.9 | ) | (52.9 | ) | ||||||||
Total
operating income
|
$ | 105.8 | $ | 102.0 | $ | 210.1 | $ | 198.9 |
Key Performance Indicators
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(Dollars in millions, except per share data)
|
||||||||||||||||
Operating
revenue
|
$ | 460.7 | $ | 429.1 | $ | 903.7 | $ | 855.6 | ||||||||
Operating
revenue change
|
7 | % | -9 | % | 6 | % | -9 | % | ||||||||
Operating
income
|
$ | 105.8 | $ | 102.0 | $ | 210.1 | $ | 198.9 | ||||||||
Operating
margin
|
23.0 | % | 23.8 | % | 23.3 | % | 23.3 | % | ||||||||
Net
income from continuing operations attributable to Equifax
|
$ | 57.7 | $ | 56.4 | $ | 111.7 | $ | 107.2 | ||||||||
Net
income attributable to Equifax
|
$ | 71.3 | $ | 59.6 |