INVESTMENT IN BOA VISTA SERVICOS |
9 Months Ended |
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Sep. 30, 2016 | |
| Investments, All Other Investments [Abstract] | |
| INVESTMENT IN BOA VISTA SERVICOS |
INVESTMENT IN BOA VISTA SERVICOS
We hold a 15% equity interest in Boa Vista Servicos ("BVS"), which is the second largest consumer and commercial credit information company in Brazil. This investment is recorded in other assets, net, on the Consolidated Balance Sheets and is accounted for using the cost method. BVS is undergoing a process to issue new shares through which we expect our ownership interest to be diluted by approximately 1%. We do not expect this dilution to result in an impairment of our investment.
During the second quarter of 2015, we recorded a loss of 46 million Reais ($14.8 million) which is included in other (expense) income, net, in the Consolidated Statements of Income. As of December 31, 2015 our investment in BVS was recorded at 44 million Brazilian Reais, which approximated the fair value. The fair value was determined by management using income and market approaches. The carrying value has decreased by $36.8 million related to the foreign exchange impact since 2011, which is included in the foreign currency translation adjustments in accumulated other comprehensive income. As of September 30, 2016, our investment in BVS, recorded at 44 million Reais ($13.7 million), approximated the fair value.
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