Equifax 2009 Annual Report Download - page 18

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued
Other Expense, Net
Other Expense, Net Twelve Months Ended December 31, Change
2009 vs. 2008 2008 vs. 2007
(Dollars in millions) 2009 2008 2007 $ % $%
Consolidated interest expense $57.0 $ 71.3 $ 58.5 $ (14.3) (20)% $ 12.8 22%
Consolidated other income, net (6.0) (6.2) (3.0) 0.2 (2)% (3.2) 106%
Consolidated other expense, net $ 51.0 $ 65.1 $ 55.5 $ (14.1) (22)% $ 9.6 17%
Average cost of debt 4.8% 5.3% 6.1%
Total consolidated debt, net, at year end $ 1,174.1 $ 1,219.3 $ 1,387.3 $ (45.2) (4)% $ (168.0) (12)%
The decrease in other expense, net, for 2009, as compared to The increase in other expense, net, for 2008, as compared to the
2008, was primarily due to lower interest rates on our floating rate prior period, was primarily due to increased interest expense driven
debt, which drove the average cost of our total debt from 5.3% in by a higher level of debt which was used to fund the acquisition of
2008 to 4.8% in 2009, as well as a reduced level of debt outstand- TALX in 2007 and our share repurchase activity in both years. Our
ing during 2009. Our average debt balance fell to $1.18 billion in average debt balance rose to $1.34 billion in 2008 from $963.5 mil-
2009 from $1.34 billion in 2008. For additional information about lion in 2007. Other income, net, in 2008 includes a $5.5 million gain
our debt agreements, see Note 4 of the Notes to the Consolidated on our repurchase of $20 million principal amount of ten-year senior
Financial Statements in this report. Other income, net, for 2009 pri- notes due 2017.
marily includes a $2.2 million mark-to-market adjustment on certain
insurance policies, a $1.1 million gain on our repurchase of
$7.5 million principal amount of our ten-year senior notes due 2017
and a $1.3 million gain related to a litigation settlement.
Income Taxes
Provision for Income Taxes Twelve Months Ended December 31, Change
2009 vs. 2008 2008 vs. 2007
(Dollars in millions) 2009 2008 2007 $ % $ %
Consolidated provision for income taxes $ 116.1 $ 133.1 $ 151.9 $ (17.0) (13)% $ (18.8) (12)%
Effective income tax rate 32.6% 32.3% 35.3%
Our effective income tax rate for 2009 was up slightly compared to Our effective income tax rate for 2008 was down from 2007, pri-
2008. The 2009 rate reflects the recognition of a $7.3 million marily due to the recognition of a $14.6 million income tax benefit in
income tax benefit in the fourth quarter of 2009 related to our ability the third quarter of 2008 related to the reversal of a reserve associ-
to utilize foreign tax credits beyond 2009. Additionally, we recorded ated with our Brazilian operations, for which the statute of limitations
favorable discrete items in 2009 related to foreign and state taxes expired during that quarter.
and an investment loss in a subsidiary. With the fourth quarter 2009
adjustments, we have recognized the benefit of foreign tax credit
carryforwards that would have reduced future tax expense. As a
result, we expect our effective tax rate in 2010 to increase to a
range of 37% to 38%.
16 EQUIFAX 2009 ANNUAL REPORT
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