Equifax 2010 Annual Report Download - page 24

Information about our cash flows, by category, is presented in the consolidated statement of cash flows. The following table summarizes our
cash flows for the twelve months ended December 31, 2010, 2009 and 2008:
Net cash provided by (used in): Twelve Months Ended December 31, Change
2010 vs. 2009 2009 vs. 2008
(Dollars in millions) 2010 2009 2008 $ % $ %
Operating activities $ 352.6 $ 418.4 $ 448.1 $ (65.8) -16% $ (29.7) -7%
Investing activities $ 1.0 $(270.1) $(141.6) $ 271.1 nm $(128.5) nm
Financing activities $(335.3) $(108.3) $(319.1) $(227.0) nm $ 210.8 nm
nm — not meaningful
Operating Activities
The decrease in operating cash flow for 2010 was primarily driven by
$35.0 million of additional pension contributions; a $16.4 million net
impact on use of funds as accounts receivable, which had been
reduced in 2009, grew in 2010 as revenue grew; and $42.0 million in
taxes paid on the sale of DMS and the APPRO product line. These,
and other lesser changes in assets and liabilities, more than offset
increased net income and the contribution from higher depreciation
and amortization.
The decrease in operating cash flow for 2009 was primarily driven by
$38.5 million of lower consolidated net income described above and
$29.3 million of pension contributions in 2009 with no similar pay-
ments made in 2008. These items were partially offset by year to year
reduction in days sales outstanding in trade receivables and
increases in operating liabilities as reduced levels of accruals in 2008
did not recur.
Fund Transfer Limitations. The ability of certain of our subsidiaries
and associated companies to transfer funds to us is limited, in some
cases, by certain restrictions imposed by foreign governments; these
restrictions do not, individually or in the aggregate, materially limit our
ability to service our indebtedness, meet our current obligations or
pay dividends.
Investing Activities
Net cash used in: Twelve Months Ended December 31, Change
(Dollars in millions) 2010 2009 2008 2010 vs. 2009 2009 vs. 2008
Capital expenditures $99.8 $70.7 $110.5 $29.1 $(39.8)
Our capital expenditures are used for developing, enhancing and
deploying new and existing software in support of our expanding
product set, replacing or adding equipment, updating systems for
regulatory compliance, the licensing of software applications and
investing in system reliability, security and disaster recovery
enhancements.
Capital expenditures in 2010 were higher than 2009 due to the
purchase of our headquarters building in Atlanta, GA. On Febru-
ary 27, 2009, we notified the lessor of our headquarters building that
we intended to exercise our purchase option in accordance with the
lease terms. We purchased the building for $29.0 million on
February 26, 2010. The notice of our intent to exercise our purchase
option caused us to account for this lease obligation as a capital
lease. We recorded the building and the related obligation on our
Consolidated Balance Sheets at December 31, 2009. For additional
information regarding our headquarters building lease, see Note 6
of the Notes to the Consolidated Financial Statements in this report.
Capital expenditures in 2009 were less than 2008, due to significant
data center infrastructure improvements that were substantially
completed in 2008. We expect capital expenditures in 2011 to be
in the range of $75 million to $95 million, as we continue to invest
for growth.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued
EQUIFAX 2010 ANNUAL REPORT
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