Equifax 2009 Annual Report Download - page 29

Contractual Obligations and Commercial Commitments
The following table summarizes our significant contractual obligations and commitments as of December 31, 2009. The table excludes
commitments that are contingent based on events or factors uncertain at this time. Some of the excluded commitments are discussed
below the footnotes to the table.
Payments due by
(In millions) Total Less than 1 year 1 to 3 years 3 to 5 years Thereafter
Debt (including capitalized lease obligation)(1) $ 1,177.0 $ 182.5 $ 42.0 $ 305.0 $ 647.5
Operating leases(2) 111.3 20.0 27.6 15.6 48.1
Data processing, outsourcing agreements and other
purchase obligations(3) 374.2 117.9 179.8 70.2 6.3
Other long-term liabilities(4)(6) 90.5 7.4 12.8 8.4 61.9
Interest payments(5) 811.4 54.6 104.2 99.5 553.1
$ 2,564.4 $ 382.4 $ 366.4 $ 498.7 $ 1,316.9
(1) The amounts are gross of unamortized discounts totaling $2.4 million and fair value adjustments of $0.5 million at December 31, 2009. Total debt on our
Consolidated Balance Sheets is net of the unamortized discounts and fair value adjustments.
(2) Our operating lease obligations principally involve office space and equipment, which include the ground lease associated with our headquarters building
that expires in 2048.
(3) These agreements primarily represent our minimum contractual obligations for services that we outsource associated with our computer data processing
operations and related functions, and certain administrative functions. These agreements expire between 2010 and 2014.
(4) These long-term liabilities primarily relate to obligations associated with certain pension, postretirement and other compensation-related plans, some of
which are discounted in accordance with U.S. generally accepted accounting principles, or GAAP. We made certain assumptions about the timing of
such future payments. In the table above, we have not included amounts related to future pension plan obligations, as such required funding amounts
beyond 2010 have not been deemed necessary due to our current expectations regarding future plan asset performance. During January 2010, we
made a $20.0 million contribution to fund our U.S. Retirement Income Plan.
(5) For future interest payments on variable-rate debt, which are generally based on a specified margin plus a base rate (LIBOR) or on CP rates for
investment grade issuers, we used the variable rate in effect at December 31, 2009 to calculate these payments. Our variable rate debt at December 31,
2009, consisted of CP, borrowings under our credit facilities and our five-year senior notes due 2014 (against which we have executed interest rate
swaps to convert interest expense from fixed rates to floating rates). Future interest payments related to our Senior Credit Facility and our CP program
are based on the borrowings outstanding at December 31, 2009 through their respective maturity dates, assuming such borrowings are outstanding until
that time. The variable portion of the rate at December 31, 2009 was between 0.3% and 2.0% for substantially all of our variable-rate debt. Future
interest payments may be different depending on future borrowing activity and interest rates.
(6) This table excludes $26.8 million of unrecognized tax benefits, including interest and penalties, as we cannot make a reasonably reliable estimate of the
period of cash settlement with the respective taxing authorities.
A potential significant future use of cash would be the payment to us with an option to purchase its credit reporting business if it does
Computer Sciences Corporation, or CSC, if it were to exercise its not elect to renew the agreement or if there is a change in control
option to sell its credit reporting business to us at any time prior to of CSC while the agreement is in effect. If CSC were to exercise its
2013. The option exercise price would be determined by agreement option, or if we were able to and decided to exercise our option,
or by an appraisal process and would be due in cash within then we would have to obtain additional sources of funding. We
180 days after the exercise of the option. We estimate that if the believe that this funding would be available from sources such as
option had been exercised at December 31, 2009, the price range additional bank lines of credit and the capital markets for debt
would have been approximately $600 million to $675 million. This and/or equity financing. However, the availability and terms of any
estimate is based solely on our internal analysis of the value of the such capital financing would be subject to a number of factors,
business, current market conditions and other factors, all of which including credit market conditions, the state of the equity markets,
are subject to constant change. Therefore, the actual option exer- general economic conditions, our credit ratings and our financial
cise price could be materially higher or lower than our estimate. Our performance and condition.
agreement with CSC, which expires on July 31, 2018, also provides
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