Equifax 2008 Annual Report Download - page 27

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As of February 20, 2009, we had acquired an additional $20.7 million and $20.3 million, respectively, at $0.16 per
0.4 million shares for $9.1 million since December 31, share for all periods.
2008.
• During the twelve months ended December 31, 2008,
2007 and 2006, we paid cash dividends of $20.5 million,
Contractual Obligations and Commercial Commitments
The following table summarizes our significant contractual obligations and commitments as of December 31, 2008. 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) $ 1,217.3 $ 31.9 $ 458.9 $ 31.5 $ 695.0
Operating leases(2) 122.7 20.6 28.4 18.5 55.2
Data processing, outsourcing agreements
and other purchase obligations(3) 305.3 91.2 125.8 81.3 7.0
Other long-term liabilities(4)(6) 89.9 9.1 15.4 8.8 56.6
Interest payments(5) 941.9 60.7 117.0 93.6 670.6
$ 2,677.1 $ 213.5 $ 745.5 $ 233.7 $ 1,484.4
(1) The amounts are gross of unamortized discounts totaling $2.1 million and a purchase accounting fair value adjustment of $4.1 million
at December 31, 2008. Total debt on our Consolidated Balance Sheets is net of the unamortized discounts and fair value
adjustment.
(2) Our operating lease obligations principally involve office space and equipment, which includes the lease associated with our head-
quarters building that expires in 2010 and the ground lease associated with our headquarters building that expires in 2048.
(3) These agreements primarily represent our minimum contractual obligations for services that we outsource associated with our
computer data processing operations and related functions, and certain administrative functions. These agreements expire between
2009 and 2013.
(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 U.S. generally accepted accounting principles, or GAAP. We made
certain assumptions about the timing of such future payments. In the table above, we have not included amounts related to future
pension plan obligations, as such required funding amounts beyond 2009 have not been deemed necessary due to our current
expectations regarding future plan asset performance. During January 2009, we made a $15.0 million contribution to fund our
Equifax Inc. Pension Plan.
(5) For future interest payments on related variable-rate debt, which is generally based on LIBOR or commercial paper plus a specified
margin, we used the variable rate in effect at December 31, 2008 to calculate these payments. The variable portion of the rate at
December 31, 2008 (excluding the margin and facility fees) was between 1.7% and 2.4% for substantially all of our variable-rate
debt. Future interest payments related to our $850.0 million revolving credit facility and our commercial paper program are based on
the borrowings outstanding at December 31, 2008 through their respective maturity dates, assuming such borrowings are outstand-
ing until that time. Future interest payments may be different depending on future borrowing activity under this revolving credit facility.
(6) This table excludes $22.3 million of unrecognized tax benefits, including interest and penalties, as we cannot make a reasonably
reliable estimate of the period of cash settlement with the respective taxing authorities.
A potential significant future use of cash would be the pay- change. Therefore, the actual option exercise price could
ment to Computer Sciences Corporation, or CSC, if it were be materially higher or lower than our estimate. Our agree-
to exercise its option to sell its credit reporting business to ment with CSC, which expires on July 31, 2018, also pro-
us at any time prior to 2013. The option exercise price vides us with an option to purchase its credit reporting
would be determined by agreement or by an appraisal pro- business if it does not elect to renew the agreement or if
cess and would be due in cash within 180 days after the there is a change in control of CSC while the agreement is
exercise of the option. We estimate that if the option had in effect. If CSC were to exercise its option, or if we were
been exercised at December 31, 2008, the price range able to and decided to exercise our option, then we would
would have been approximately $600.0 million to have to obtain additional sources of funding. We believe
$675.0 million. This estimate is based solely on our internal that this funding would be available from sources such as
analysis of the value of the business, current market condi- additional bank lines of credit and the capital markets for
tions and other factors, all of which are subject to constant debt and/or equity financing. However, the availability and
2008 ANNUAL REPORT 25