Equifax 2001 Annual Report Download - page 45

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43
5.
Restructuring and Other Charges
In the fourth quarter of 2001, the Company
recorded restructuring and other charges (dis-
cussed below) of $60.4 million ($35.3 million
after tax, or $0.25 per share).
The Company implemented a restructuring
plan to align the Company’s cost structure with
changing market conditions, reduce expenses
and improve efficiencies, particularly in inter-
national operations. The plan includes head-
count reductions of approximately 700
employees, primarily located in the Company’s
international operations. The restructuring
charge totaled $37.2 million, and consists of
severance costs associated with headcount
reductions and other related costs, including
reserves to reflect the Company’s estimated
exposure on facilities to be vacated or consoli-
dated. In 2001, charges to the restructuring
reserve totaled $8.8 million, and the remaining
reserve of $28.4 million at December 31, 2001,
is included in other current liabilities in the
accompanying consolidated balance sheets.
The majority of the remaining severance and
related charges are expected to be incurred in
2002, with charges related to real estate rental
obligations being incurred over the next
several years.
Due to changes in market conditions and the
Company’s technology strategy, the Company
recorded an impairment charge of $23.2 million
to write down certain technology investments,
including $6.9 million of investments in several
third party technology companies.
6.
Long-Term Debt and Short-Term Borrowings
Long-term debt at December 31, 2001, and 2000 was as follows:
(in millions) 2001 2000
Senior Notes, 6.5%, due 2003, net of unamortized
discount of $0.2 million in 2001 and $0.3 million in 2000 $199.8 $199.7
Senior Notes, 6.3%, due 2005, net of unamortized
discount of $0.6 million in 2001 and $0.8 million in 2000 249.4 249.2
Senior Debentures, 6.9%, due 2028, net of unamortized
discount of $1.3 million in 2001 and $1.4 million in 2000 148.7 148.6
Borrowings under revolving credit facilities,
weighted average rate of 3.0% at December 31, 2001 90.9 390.5
Other 8.7 8.1
697.5 996.1
Less current maturities 3.9 2.7
$693.6 $993.4