Equifax 2001 Annual Report Download - page 31

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transactional foreign currency exchange risks,
and at December 31, 2001, the exchange risks
associated with the Company’s intercompany
advances to its U.K. operations, as well as the
intercompany balances associated with fund-
ing its Italy acquisition were hedged by having
a portion of the borrowings under its revolv-
ing credit facility denominated in those
respective currencies.
The Company manages its exposure to
changes in interest rates by: (1) maintaining an
appropriate weighted average debt maturity
and (2) controlling the mix of fixed and variable
rate debt, in part by using interest rate swap
agreements. The Company’s earnings can be
affected by the impact that changes in interest
rates have on its variable-rate obligations. At
December 31, 2001, approximately $358 mil-
lion (47%) of the Company’s short-term and
long-term debt was in variable-rate facilities. At
this level, if market interest rates increased 1%,
interest expense would increase approximately
$3.6 million per year (pre-tax).
Forward-Looking Information
The management’s discussion and analysis, and
other portions of this Annual Report, include
“forward-looking statements” within the mean-
ing of the Private Securities Litigation Reform Act
of 1995 and the Securities Exchange Act of 1934.
These forward-looking statements may include,
among others, statements concerning the
Company’s outlook for 2002, volume and pricing
trends, cost control measures and their results,
effective income tax rates, the Company’s expec-
tations as to funding its capital expenditures and
operations, and other statements relative to
future plans and strategies. These statements
are based on a number of assumptions that are
inherently subject to significant uncertainties,
many of which are beyond Equifax’s control.
Important factors that either individually or
in the aggregate could cause actual results to
differ materially from those expressed in the
forward-looking statements include, but are
not limited to, the following: a change in the
growth rate of the economies within which the
Company conducts business, particularly in
the U.S., such that consumer spending and
related consumer debt are impacted; a decline
or change in the marketing techniques of credit
card issuers; unexpected pricing pressures
above and beyond the levels experienced in
the past; U.S. and international regulatory or
legislative changes which may adversely affect
the businesses conducted by the Company;
successful integration of acquisitions; risks
associated with investments and operations in
foreign countries, including regulatory envi-
ronments, exchange rate fluctuations, and
local political, social and economic factors;
successful development and marketing of new
products and services to existing and new
industries; protection and validity of patent
and other intellectual property rights; success-
ful incorporation of technological change;
control and reduction of cost and expense;
interest rate fluctuations; changes in U.S. and
global financial and equity markets, including
market disruptions and significant interest
rate fluctuations, which may impede the
Company’s access to, or increase the cost of,
external financing; increased competitive pres-
sures both domestically and internationally;
and other risks or unforeseen factors including
those described from time to time in the reports
which the Company files with the Securities and
Exchange Commission, including, but not lim-
ited to, the Annual Report on Form 10-K for
the year ended December 31, 2001.
This list of aforementioned factors that may
affect future performance and the accuracy of
forward-looking statements are illustrative and
by no means exhaustive. All forward-looking
statements should be evaluated with the
understanding of their inherent uncertainty.