IMPAIRMENT OF INVESTMENT IN BOA VISTA SERVICOS (Notes)
|9 Months Ended|
Sep. 30, 2015
|IMPAIRMENT OF COST METHOD INVESTMENT [Abstract]|
|Schedule of Cost Method Investments [Table Text Block]||
IMPAIRMENT OF 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. As of December 31, 2014 and March 31, 2015, our investment in BVS was recorded at 90 million Brazilian Reais, which approximated the fair value. The fair value was determined by management using income and market approaches.
During the second quarter of 2015, management updated the financial projections. The updated projections, along with the continued weakness in the Brazilian consumer and small commercial credit markets were considered indicators of impairment. Management of Equifax prepared an analysis to estimate the fair value of our investment at June 30, 2015 and estimated that value to be 44 million Reais ($14.1 million). As a result, we decreased the carrying value of our investment and recorded a loss of 46 million Reais ($14.8 million) which is included in other (expense) income, net, in the Consolidated Statements of Income. Additionally, the carrying value has decreased by $36.4 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, 2015, our investment in BVS, recorded at 44 million Reais ($11.1 million), approximated the fair value.
A tabular disclosure of (a) the aggregate carrying amount of all cost-method investments; (b) the aggregate carrying amount of cost-method investments that the investor did not evaluate for impairment for cost-method investments.
Reference 1: http://www.xbrl.org/2003/role/presentationRef