Equifax 2000 Annual Report Download - page 31

Purchased software, purchased merchant
contracts, and systems development and other
deferred costs are being amortized on a straight-
line basis over five to eleven years. Amortization
expense for other assets was $57,432,000 in
2000, $43,156,000 in 1999, and $32,078,000
in 1998. As of December 31, 2000 and 1999,
accumulated amortization balances were
$176,759,000 and $159,840,000, respectively.
Long-Lived Assets Long-lived assets include
property and equipment, goodwill, purchased
data files, and other assets. The Company
regularly evaluates whether events and cir-
cumstances have occurred which indicate that
the carrying amount of long-lived assets may
warrant revision or may not be recoverable.
When factors indicate that long-lived assets
should be evaluated for possible impairment,
the Company uses an estimate of the future
undiscounted net cash flows of the related
business over the remaining life of the asset in
measuring whether the asset is recoverable.
Foreign Currency Translation The functional
currency of the Company’s foreign subsidiaries
are those subsidiaries’ local currencies. The
assets and liabilities of foreign subsidiaries are
translated at the year-end rate of exchange, and
income statement items are translated at the
average rates prevailing during the year. The
resulting translation adjustment is recorded as
a component of shareholders’ equity. Gains
and losses resulting from the translation of
intercompany balances of a long-term invest-
ment nature are also recorded as a component
of shareholders’ equity. Other foreign currency
translation gains and losses, which are not
material, are recorded in the consolidated
statements of income.
Consolidated Statements of Cash Flows The
Company considers cash equivalents to be
short-term cash investments with original
maturities of three months or less.
Cash paid for income taxes and interest is
as follows:
(In thousands) 2000 1999 1998
Income taxes, net of
amounts refunded $124,717 $127,611 $98,905
Interest 76,177 60,379 28,885
In 2000, 1999, and 1998, the Company acquired
various businesses that were accounted for as
purchases (Note 2). In conjunction with these
transactions, liabilities were assumed as follows:
(In thousands) 2000 1999 1998
Fair value of assets
acquired $415,657 $24,783 $540,078
Cash paid for acquisitions 383,938 24,182 485,076
Value of treasury stock
reissued for acquisitions 10,625 – 6,000
Liabilities assumed $ 21,094 $ 601 $ 49,002
Financial Instruments The Company’s financial
instruments consist primarily of cash and cash
equivalents, accounts and notes receivable,
accounts payable, and short-term and long-
term debt. The carrying amounts of these
items, other than long-term debt, approximate
their fair market values due to their short matu-
rity. As of December 31, 2000, the fair value of
the Company’s long-term debt (determined
primarily by broker quotes) was $981,953,000
compared to its carrying value of $993,569,000.
During 2000, the Company’s derivative finan-
cial instruments consisted of several interest
rate swap agreements used to fix portions of
the Company’s floating rate obligations.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued...
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