Equifax 2003 Annual Report Download - page 53

NOTES TO CONSOLIDATED FINANCIAL STATEM ENTS
50 EQUIFAX. INFORMATION THAT EMPOWERS.
An analysis of activity in the reserve for 2001 and 2002 (in millions)
is as follows:
Facilities
Q4 2001 Restructuring Reserve Severance and Other Total
Original reserve,
fourth quarter, 2001 $12.0 $25.2 $37.2
Less 2001 charges (3.6) (5.2) (8.8)
Balance, December 31, 2001 8.4 20.0 28.4
Less 2002 charges (8.4) (3.7) (12.1)
Adjustment 1.6 (1.6) –
Balance, December 31, 2002 $ 1.6 $14.7 $16.3
Less 2003 charges (1.6) (1.4) (3.0)
Balance, December 31, 2003 $ – $13.3 $13.3
7. LONG-TERM DEBT AND SHORT-TERM BORROWINGS
Long-term debt at December 31, 2003 and 2002 was as follows:
(In millions) 2003 2002
Senior Notes, 6.5%, due 2003, net of
unamortized discount of $0.0 million
in 2003 and $0.1 million in 2002 $– $199.9
Notes, 6.3%, due 2005, net of unamortized
discount of $0.3 million in 2003 and
$0.4 million in 2002 249.7 249.6
Notes, 4.95%, due 2007, net of unamortized
discount of $0.3 million in 2003 and
$0.5 million in 2002 249.6 249.5
Debentures, 6.9%, due 2028, net of
unamortized discount of $1.2 million
in 2003 and $1.3 million in 2002 148.8 148.7
Borrowings under U.S. revolving credit
facilities, weighted-average rate
of 1.6% at December 31, 2003 137.1 21.8
Other 16.8 22.4
802.0 891.9
Less current maturities 139.0 201.3
$663.0 $690.6
In October 2002, we issued new 4.95% fixed rate five-year senior
unsecured notes with a face value of $250.0 million. The notes, which
expire in 2007, were sold at a discount of $0.5 million. The discount,
and related issuance costs, will be amortized on a straight-line basis
over the term of the notes. Our $200.0 million 6.5% senior unsecured
notes, originally issued in 1993, matured June 2003. We borrowed
$200.0 million under our revolving credit facility to retire the maturing
notes. The indebtedness evidenced by our 4.95% senior unsecured
notes, our 6.3% notes, and our 6.9% senior unsecured debentures,
none of which has been guaranteed by any of our subsidiaries, is
unsecured, and ranks on parity in right of payment with all of our
other unsecured and unsubordinated indebtedness from time to
time outstanding.
In October 2001, we replaced our $750.0 million revolving credit
facility with a new, committed $465.0 million revolving credit
facility with a group of commercial and investment banks. This
facility is comprised of a $160.0 million, 364-day portion and a
$305.0 million, multi-year portion. The 364-day portion matures
September 30, 2004. The multi-year portion expires October 4,
2004. The agreement provides for borrowings tied to Base Rate,
LIBOR and competitive bid interest rate options and contains
certain financial covenants related to interest coverage, funded
debt to cash flow, and limitations on subsidiary indebtedness.
Our borrowings under this facility, which have not been guaranteed
by any of our subsidiaries, are unsecured and will rank on parity
in right of payment with all of our other unsecured and unsubordi-
nated indebtedness from time to time outstanding. At December 31,
2003, we had $327.9 million of borrowing capacity available under
our $465.0 million revolving credit facility. $14.1 million of the
revolving credit facility’s outstanding balance was denominated in
a foreign currency. This foreign denominated obligation is used to
hedge the impact of foreign exchange rate fluctuations related to
inter-company advances with one of our foreign subsidiaries.
Scheduled maturities of long-term debt during the five years
subsequent to December 31, 2003, are as follows:
(In millions) Amount
2004 $139.0
2005 249.7
2006 –
2007 249.6
2008 –
After 148.8
787.1
Our short-term borrowings at December 31, 2003 and 2002, totaled
$21.5 million and $32.6 million, respectively, and consisted primarily
of notes payable to banks. These notes had a weighted average
interest rate of 1.8% at December 31, 2003 and 3.24% at Decem-
ber 31, 2002. In October 2001, one of our Canadian subsidiaries
entered into a C$100.0 million loan, renewable annually, with a
bank. The loan agreement provides interest rate options tied to
Prime, Base Rate, LIBOR, and Canadian Banker’s Acceptances, and
contains financial covenants related to interest coverage, funded
debt to cash flow, and limitations on subsidiary indebtedness. Our
subsidiary’s borrowings under this facility, which we have guaran-
teed, are unsecured. Borrowings under this loan (which are included
in the short-term borrowings totals above) at December 31, 2003 and
2002 were $15.4 million and $29.3 million, respectively. As of Decem-
ber 31, 2003, $61.7 million of borrowing capacity was available under
this credit facility, from which no amount was outstanding.