Equifax 2007 Annual Report Download - page 67

EQUIFAX | 2007 ANNUAL REPORT 65
Purchased Intangible Assets. Purchased intangible assets, net recorded on our Consolidated Balance Sheets at December 31, 2007 and
2006, are as follows:
December 31, 2007 December 31, 2006
Accumulated Accumulated
(In millions) Gross Amortization Net Gross Amortization Net
Definite-lived intangible assets:
Purchased data files $ 406.6 $(221.7) $184.9 $390.8 $(191.3) $199.5
Acquired software and technology 72.7 (23.9) 48.8 39.1 (15.7) 23.4
Customer relationships 414.7 (18.4) 396.3 18.5 (1.9) 16.6
Proprietary database 117.6 (12.3) 105.3 – – –
Non-compete agreements 6.4 (5.2) 1.2 5.9 (4.6) 1.3
Trade names and other intangible assets 31.9 (3.9) 28.0 2.0 (0.6) 1.4
Total definite-lived intangible assets $1,049.9 $(285.4) $764.5 $456.3 $(214.1) $242.2
Amortization expense related to purchased intangible assets
was $65.8 million, $31.4 million and $31.7 million during the
twelve months ended December 31, 2007, 2006 and 2005,
respectively.
Estimated future amortization expense related to defi nite-lived
purchased intangible assets at December 31, 2007 is as follows:
Years Ending December 31,
(In millions) Amount
2008 $ 86.5
2009 84.0
2010 83.6
2011 77.4
2012 73.0
Thereafter 360.0
$764.5
4.
DEBT
Debt outstanding at December 31, 2007 and 2006 was as follows:
December 31,
(In millions) 2007 2006
Commercial Paper $ 219.5 $ –
Notes, 4.95%, due November 2007 – 250.0
Notes, 4.25%, due May 2012 12.5 –
Notes, 7.34%, due May 2014 75.0 –
Notes, 6.30%, due July 2017 300.0 –
Debentures, 6.90%, due July 2028 150.0 150.0
Notes, 7.00%, due July 2037 250.0 –
Trade receivables-backed revolving
credit facility, weighted-average
rate of 5.4% in 2006 – 80.0
Borrowings under long-term revolving
credit facilities, weighted-average
rate of 5.3% in 2007 and 2006 375.0 25.0
Other 2.2 0.1
Total debt 1,384.2 505.1
Less short-term debt and current maturities (222.1) (330.0)
Less unamortized discounts (2.2) (1.2)
Plus fair value adjustment 5.3 –
Total long-term debt, net of discount $1,165.2 $ 173.9
Scheduled future maturities of debt at December 31, 2007,
are as follows:
Years Ending December 31,
(In millions) Amount
2008 $ 222.1
2009 2.4
2010 17.7
2011 392.9
2012 16.6
Thereafter 732.5
Total debt $1,384.2
Senior Credit Facility. During the second quarter of 2007, we
amended our senior unsecured revolving credit facility with a group
of fi nancial institutions, which we refer to as the Senior Credit
Facility, to increase the borrowing limit from $500.0 million to
$850.0 million. Borrowings may be used for general corporate
purposes, including working capital, capital expenditures, acqui-
sitions and share repurchase programs. The Senior Credit Facility
expires in July 2011.
The Amended Credit Agreement also includes an “accordion”
feature that will allow us to request an increase of up to
$150.0 million in the maximum borrowing commitment, which
cannot exceed $1.0 billion. Each member of the lending group
may elect to participate or not participate in any request we make
to increase the maximum borrowing commitment. In addition, any
increase in the borrowing commitment pursuant to this accordion
feature is subject to certain terms and conditions, including the
absence of an event of default. The increased borrowing commitment
may be used for general corporate purposes.
Under our Amended Credit Agreement, we must comply
with various fi nancial and non-fi nancial covenants. The fi nancial
covenants require us to maintain a maximum leverage ratio, defi ned
as consolidated funded debt divided by consolidated EBITDA
(as set forth in the Amended Credit Agreement) for the preceding
four quarters, of not more than 3.5 to 1.0. Compliance with this
fi nancial covenant is tested quarterly. The non-fi nancial covenants
include limitations on liens, cross defaults, subsidiary debt, mergers,
liquidations, asset dispositions and acquisitions. As of December 31,
2007, we were in compliance with our covenants under the Amended