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MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
38 EQUIFAX 2006 ANNUAL REPORT
As discussed above, following the completion of the
TALX acquisition, we intend to repurchase approximately
$700 million in Equifax stock in open market transactions
or in privately-negotiated purchases. The timing and
nature of any such repurchases will depend on market con-
ditions, other investment opportunities, applicable securi-
ties laws and other factors.
Dividend Payments. During the twelve months ended
December 31, 2006, 2005 and 2004, we paid cash divi-
dends of $20.3 million, $20.2 million and $15.0 million,
respectively, at $0.16 per share, $0.15 per share and
$0.11 per share, respectively.
Exercise of Stock Options. During the twelve months ended
December 31, 2006, 2005 and 2004, we received cash of
$26.1 million, $62.8 million and $28.1 million, respectively,
from the exercise of stock options.
Contractual Obligations and Commercial Commitments
The following table summarizes our signifi cant contractual
obligations and commitments as of December 31, 2006.
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 (1)
$ 505.1 $330.0 $ – $ 25.0 $150.1
Operating leases (2) 108.2 18.3 26.6 17.1 46.2
Data processing, outsourcing agreements
and other purchase obligations (3) 331.5 73.6 101.2 86.8 69.9
Other long-term liabilities (4) 87.4 9.9 17.3 13.5 46.7
Interest payments (5) 244.9 26.6 24.1 23.4 170.8
$1,277.1 $458.4 $169.2 $165.8 $483.7
(1) The amounts are gross of unamortized discounts totaling $1.2 million at December 31, 2006. Total debt on our Consolidated Balance
Sheets is net of the unamortized discounts. For additional information about our debt, see Note 5 of the Notes to Consolidated
Financial Statements.
(2) Our operating lease obligations principally involve offi ce space and equipment, which includes the lease of our technology center that
expires in 2012, the lease associated with our headquarters building that expires in 2010 and the ground lease associated with our
headquarters building that expires in 2048. For additional information about our operating leases, see Note 6 of the Notes to
Consolidated Financial Statements.
(3) These agreements primarily represent our minimum contractual obligations for services that we outsource associated with our com-
puter data processing operations and related functions, and certain administrative functions. These agreements expire between 2007
and 2013. For additional information about these agreements, see Note 6 of the Notes to Consolidated Financial Statements.
(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 GAAP. We made certain assumptions about the timing of such future
payments. This table does not include our severance accrual related to our organizational realignment. For additional information
about this accrual, see Note 11 of the Notes to Consolidated Financial Statements.
(5) For future interest payments on related variable-rate debt, which is generally based on LIBOR or commercial paper plus a specifi ed
margin, we used the variable rate in effect at December 31, 2006 to calculate these payments. The variable portion of the rate at
December 31, 2006 (excluding the margin and facility fees) was between 5.6% and 5.7% for substantially all of our variable debt.
Future interest payments related to our $500.0 million revolving credit facility and trade receivables-backed revolving credit facility
are based on the borrowings outstanding at December 31, 2006 through their respective maturity dates, assuming such borrowings
are outstanding until that time. Future interest payments may be different depending on the borrowing activity going forward
under these revolving credit facilities.