Equifax 2009 Annual Report Download - page 28

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued
Credit Ratings. Credit ratings reflect an independent agency’s judg- At December 31, 2009, the long-term ratings for our obligations
ment on the likelihood that a borrower will repay a debt obligation at were BBB+ and Baa1, which are consistent with the ratings and
maturity. The ratings reflect many considerations, such as the nature outlooks which existed at December 31, 2008. A downgrade in our
of the borrower’s industry and its competitive position, the size of credit rating would increase the cost of borrowings under our CP
the company, its liquidity and access to capital and the sensitivity of program and credit facilities, and could limit, or in the case of a
a company’s cash flows to changes in the economy. The two larg- significant downgrade, preclude our ability to issue CP. If our credit
est rating agencies, S&P and Moody’s, use alphanumeric codes to ratings were to decline to lower levels, we could experience
designate their ratings. The highest quality rating for long-term credit increases in the interest cost for any new debt. In addition, the
obligations is AAA and Aaa for S&P and Moody’s, respectively. A market’s demand for, and thus our ability to readily issue, new debt
security rating is not a recommendation to buy, sell or hold securi- could become further influenced by the economic and credit market
ties and may be subject to revision or withdrawal at any time by the environment.
assigning rating agency.
For additional information about our debt, including the terms of our
Long-term ratings of BBB- and Baa3 or better by S&P and financing arrangements, basis for variable interest rates and debt
Moody’s, respectively, reflect ratings on debt obligations that fall covenants, see Note 4 of the Notes to Consolidated Financial State-
within a band of credit quality considered to be ‘‘investment grade’’. ments in this report.
Equity Transactions
Net cash provided by (used in): Twelve Months Ended December 31, Change
(Dollars in millions) 2009 2008 2007 2009 vs. 2008 2008 vs. 2007
Treasury stock purchases $ (23.8) $ (155.7) $ (718.7) $ 131.9 $ 563.0
Dividends paid to Equifax shareholders $ (20.2) $ (20.5) $ (20.7) $ 0.3 $ 0.2
Dividends paid to noncontrolling interests $ (4.0) $ (3.4) $ (3.6) $ (0.6) $ 0.2
Proceeds from exercise of stock options $ 10.2 $ 14.7 $ 31.6 $ (4.5) $ (16.9)
Excess tax benefits from stock-based compensation plans $ 1.3 $ 2.1 $ 7.0 $ (0.8) $ (4.9)
Sources and uses of cash related to equity during the twelve $40.12, respectively. At December 31, 2009, the Company had
months ended December 31, 2009, 2008 and 2007 were as $121.9 million remaining for stock repurchases under the existing
follows: Board authorization.
• Under share repurchase programs authorized by our Board of As of February 19, 2010, we had acquired an additional 0.3 mil-
Directors, we purchased 0.9 million, 4.5 million, and 17.9 million lion shares for $9.4 million since December 31, 2009.
common shares on the open market during the twelve months • During the twelve months ended December 31, 2009, 2008 and
ended December 31, 2009, 2008 and 2007, respectively, for 2007, we paid cash dividends to Equifax shareholders of
$23.8 million, $155.7 million and $718.7 million, respectively, at $20.2 million, $20.5 million and $20.7 million, respectively, at
an average price per common share of $26.41, $34.41 and $0.16 per share for all periods.
26 EQUIFAX 2009 ANNUAL REPORT
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