Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

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STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2011
Total Stock-Based Compensation Expense

Total stock-based compensation expense in our Consolidated Statements of Income during the twelve months ended December 31, 2011, 2010 and 2009, was as follows:

  

    Twelve Months Ended December 31,  
(in millions)   2011     2010     2009  
                   
Cost of services   $ 3.6     $ 3.6     $ 2.6  
Selling, general and administrative expenses     20.8       18.2       17.0  
Stock-based compensation expense, before income taxes   $ 24.4     $ 21.8     $ 19.6  
Assumptions Used to Estimate Fair Value of Stock Options Granted

The fair value for stock options granted during the twelve months ended December 31, 2011, 2010 and 2009, was estimated at the date of grant, using the binomial model with the following weighted-average assumptions:

 

    Twelve Months Ended December 31,  
    2011     2010     2009  
                   
Dividend yield     1.8 %     0.5 %     0.6 %
Expected volatility     32.7 %     29.9 %     32.3 %
Risk-free interest rate     1.2 %     1.6 %     2.0 %
Expected term (in years)     4.8       4.6       4.6  
Weighted-average fair value of stock options granted   $ 7.85     $ 8.28     $ 7.90  
Changes in Outstanding Options and Weighed-Average Exercise Price Per Share

The following table summarizes changes in outstanding stock options during the twelve months ended December 31, 2011, as well as stock options that are vested and expected to vest and stock options exercisable at December 31, 2011: 

 

                Weighted-Average        
          Weighted-Average     Remaining     Aggregate  
    Shares     Exercise Price     Contractual Term     Intrinsic Value  
    (in thousands)           (in years)     (in millions)  
Outstanding at December 31, 2010     6,526     $ 30.63                  
Granted (all at market price)     1,298     $ 32.94                  
Exercised     (947 )   $ 25.02                  
Forfeited and cancelled     (162 )   $ 32.99                  
Outstanding at December 31, 2011     6,715     $ 31.82       6.3     $ 47.9  
Vested and expected to vest at December 31, 2011     6,472   $ 31.86       6.2     $ 46.0  
Exercisable at December 31, 2011     4,289     $ 31.71       4.8     $ 31.6  

 

The aggregate intrinsic value amounts in the table above represent the difference between the closing price of Equifax’s common stock on December 31, 2011 and the exercise price, multiplied by the number of in-the-money stock options as of the same date. This represents the value that would have been received by the stock option holders if they had all exercised their stock options on December 31, 2011. In future periods, this amount will change depending on fluctuations in Equifax’s stock price. The total intrinsic value of stock options exercised during the twelve months ended December 31, 2011, 2010 and 2009, was $9.9 million, $14.7 million and $5.1 million, respectively. At December 31, 2011, our total unrecognized compensation cost related to stock options was $7.7 million with a weighted-average recognition period of 1.5 years.

 

The following table summarizes changes in outstanding options and the related weighted-average exercise price per share for the twelve months ended December 31, 2010 and 2009:

 

    December 31,  
    2010     2009  
    Shares     Weighted-
Average Price		     Shares     Weighted-
Average Price		  
    (Shares in thousands)     (Shares in thousands)  
Outstanding at the beginning of the year     6,845     $ 28.68       6,422     $ 27.84  
Granted (all at market price)     1,216     $ 32.02       1,198     $ 28.49  
Exercised     (1,358 )   $ 21.58       (589 )   $ 17.35  
Forfeited and cancelled     (177 )   $ 34.04       (186 )   $ 33.70  
Outstanding at the end of the year     6,526     $ 30.63       6,845     $ 28.68  
                                 
Exercisable at end of year     4,248     $ 30.28       4,780     $ 27.21  
Summary of Changes in Nonvested Stock and Weighted-Average Grant Date Fair Value

The following table summarizes changes in our nonvested stock during the twelve months ended December 31, 2011, 2010 and 2009 and the related weighted-average grant date fair value:

 

          Weighted-Average  
          Grant Date  
    Shares     Fair Value  
    (in thousands)        
Nonvested at December 31, 2008     850     $ 36.33  
Granted     536     $ 28.41  
Vested     (230 )   $ 34.40  
Forfeited     (46 )   $ 31.75  
Nonvested at December 31, 2009     1,110     $ 33.10  
Granted     553     $ 33.27  
Vested     (317 )   $ 38.08  
Forfeited     (36 )   $ 33.20  
Nonvested at December 31, 2010     1,310     $ 31.54  
Granted     513     $ 34.07  
Vested     (340 )   $ 34.34  
Forfeited     (52 )   $ 30.70  
Nonvested at December 31, 2011     1,431     $ 31.79