Equifax 2009 Annual Report Download - page 74

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
ended December 31, 2009. Total payments to date, through
10. RESTRUCTURING CHARGES December 31, 2009, related to the third quarter 2008 restructuring
2009 Restructuring Charges. In the fourth quarter of 2009, we charge were $11.9 million.
recorded a $16.4 million restructuring charge ($10.4 million, net of
tax) in selling, general and administrative expenses on our Consoli- Restructuring charges are recorded in general corporate expense.
dated Statements of Income primarily related to headcount reduc-
tions of approximately 400 positions. This charge resulted from our
continuing efforts to align our business to better support our strate- 11. RELATED PARTY TRANSACTIONS
gic objectives. Generally, severance benefits for our U.S. employees SunTrust Banks, Inc., or SunTrust
are paid through monthly payroll according to the number of weeks We considered SunTrust a related party until September 18, 2008,
of severance benefit provided to the employee, while our interna- because Larry L. Prince, a member of our Board of Directors until
tional employees receive a lump sum severance payment for their that date, was also a director of SunTrust. L. Phillip Humann, a
benefit. Accordingly, we expect the majority of the payments to be member of our Board of Directors, was Executive Chairman of the
completed by December 2010. Payments related to this charge Board of Directors of SunTrust from 2007 to April 2008 and prior
totaled $1.7 million for the twelve months ended December 31, thereto, Chairman and Chief Executive Officer from 2004 through
2009. 2006. Our relationships with SunTrust are described more fully as
follows:
During the first quarter of 2009, we recorded in selling, general and • We paid SunTrust $4.1 million and $4.2 million, respectively, dur-
administrative expenses in our Consolidated Statements of Income ing the twelve months ended December 31, 2008 and 2007 for
an $8.4 million restructuring charge ($5.4 million, net of tax) associ- services such as lending, foreign exchange, debt underwriting,
ated with headcount reductions of approximately 300 positions. This cash management, trust, investment management, acquisition
charge resulted from our efforts to reduce and manage our valuation, and shareholder services relationships.
expenses and to maintain our financial results in the face of a weak • We also provide credit management services to SunTrust, as a
global economy and reduced revenues. We expect the majority of customer, from whom we recognized revenue of $6.6 million and
the payments to be completed by the first quarter of 2010. Pay- $6.0 million, respectively, during the twelve months ended
ments related to this charge totaled $7.5 million during the twelve December 31, 2008 and 2007.
months ended December 31, 2009. • SunTrust is a dealer under our commercial paper program. Fees
paid to the dealers related to our issuance of commercial paper
were immaterial during the twelve months ended December 31,
2008 Restructuring and Asset Write-down Charges. In the third
2008 and 2007.
quarter 2008, we realigned our business to better support our stra-
• SunTrust Robinson Humphrey served as an underwriter for our
tegic objectives and recorded a $16.8 million restructuring and asset
public offering of $550.0 million of Notes in June 2007 for which
write-down charge ($10.5 million, net of tax) of which $14.4 million
they were paid underwriting fees of approximately $0.4 million.
was recorded in selling, general and administrative expenses and
$2.4 million was recorded in depreciation and amortization on our
Consolidated Statements of Income. The $2.4 million recorded in Bank of America, N.A., or B of A
depreciation and amortization is related to the write-down of certain We considered B of A a related party until September 18, 2008,
internal-use software from which we will no longer derive future because Jacquelyn M. Ward, a member of our Board of Directors
benefit. until that date, was also a director of B of A. Our relationships with
B of A are described more fully as follows:
• We provide credit management services to B of A, as a customer,
Of the $14.4 million recorded in selling, general and administrative
from whom we recognized revenue of $40.3 million and
expenses, $10.3 million was associated with headcount reductions
$35.3 million, respectively, during the twelve months ended
of approximately 300 positions which was accrued for under
December 31, 2008 and 2007.
existing severance plans or statutory requirements, and $4.1 million
• B of A is a dealer under our commercial paper program. Fees
was related to certain contractual costs. Payments related to
paid to the dealers related to our issuance of commercial paper
headcount reductions were substantially completed by March 31,
were immaterial during the twelve months ended December 31,
2009. Substantially all of the certain contractual costs, which pri-
2008 and 2007.
marily represents services we do not intend to utilize for which we
• B of A Securities, LLC served as an underwriter for our public
are contractually committed to future payments, are expected to be
offering of $550.0 million of Notes in June 2007 for which they
paid by 2011. Payments related to headcount reductions and cer-
were paid underwriting fees of approximately $1.4 million.
tain contractual costs totaled $5.4 million for the twelve months
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