Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS AND INVESTMENTS (Tables)

v3.8.0.1
ACQUISITIONS AND INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2017
Business Combinations [Abstract]  
Estimated Fair Value of Net Assets Acquired and Liabilities Assumed at Acquisition Dates
The following table summarizes the estimated fair value of the net assets acquired and the liabilities assumed at the acquisition dates during 2017 and 2016.
 
December 31,
 
2017
 
2016
 
(In millions)
Cash
$
4.3

 
$
23.7

Accounts receivable and other current assets
3.2

 
39.6

Other assets
0.4

 
42.0

Identifiable intangible assets (1)
51.0

 
681.0

Goodwill (2)
92.4

 
1,456.3

Total assets acquired
151.3

 
2,242.6

Debt(3)
—

 
(189.5
)
Other current liabilities
(5.1
)
 
(40.2
)
Other liabilities
(10.9
)
 
(178.1
)
Non-controlling interest
—

 
(11.7
)
Net assets acquired
$
135.3

 
$
1,823.1

 
(1)
Identifiable intangible assets are further disaggregated in the following table.
(2)
The goodwill related to ID Watchdog, Inc. and Mercury is included in the GCS and International operating segments, respectively, and is not deductible for tax purposes. The goodwill related to Veda is included in the International operating segment and is not deductible for tax purposes. The goodwill related to the Barnett and Computersoft acquisition is included in the Workforce Solutions operating segment and is deductible for tax purposes.
(3)
The Veda debt of $191 million was paid in full on March 10, 2016.
Acquired Intangible Assets Fair Value and Weighted-Average Useful Life
The primary reasons the purchase price of these acquisitions exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, were expanded growth opportunities from new or enhanced product offerings and geographies, cost savings from the elimination of duplicative activities, and the acquisition of an assembled workforce that are not recognized as assets apart from goodwill.
 
 
December 31,
 
 
2017
 
2016
Intangible asset category
 
Fair value
 
Weighted-average useful life
 
Fair value
 
Weighted-average useful life
 
 
(in millions)
 
(in years)
 
(in millions)
 
(in years)
Customer relationships
 
$
42.7

 
10.2
 
$
171.3

 
14.9
Acquired software and technology
 
6.5

 
6.5
 
106.3

 
4.2
Purchased data files
 
—

 
n/a
 
387.5

 
14.8
Non-compete agreements
 
—

 
n/a
 
5.4

 
2.1
Trade names and other intangible assets
 
1.8

 
2.9
 
10.5

 
1.0
Total acquired intangibles
 
$
51.0

 
9.5
 
$
681.0

 
12.9
Business Acquisition, Pro Forma Information
The following table presents unaudited consolidated pro forma information as if our acquisition of Veda had occurred at the beginning of the earliest period presented. The pro forma amounts may not be necessarily indicative of the operating revenues and results of operations had the acquisition actually taken place at the beginning of the earliest period presented. Furthermore, the pro forma information may not be indicative of future performance.

 
Twelve months ended December 31,
 
2016
 
2015
 
As Reported
 
Pro Forma
 
As Reported
 
Pro Forma
 
(In millions, except per share data)
Operating revenues
$
3,144.9

 
$
3,180.9

 
$
2,663.6

 
$
2,929.0

Net income attributable to Equifax
$
488.8

 
$
488.1

 
$
429.1

 
$
429.9

Net income per share (basic)
$
4.10

 
$
4.09

 
$
3.61

 
$
3.62

Net income per share (diluted)
$
4.04

 
$
4.03

 
$
3.55

 
$
3.56