Equifax 2010 Annual Report Download - page 74

The comparability of our quarterly financial results during 2010 and
2009 was impacted by certain events, as follows:
• During 2010 and 2009, we made several acquisitions, including
Anakam, Inc. during the fourth quarter of 2010, and IXI Corpora-
tion and Rapid Reporting Verification Company during the fourth
quarter of 2009. For additional information about our acquisitions,
see Note 3 of the Notes to Consolidated Financial Statements.
• During the second quarter of 2010, we sold our APPRO loan
origination software business (‘‘APPRO’’) for approximately
$72 million. During the third quarter of 2010, we sold the assets of
our Direct Marketing Services division (‘‘DMS’’) for approximately
$117 million. Both of these were previously reported in our
U.S. Consumer Information Solutions segment. We have
presented the APPRO and DMS operations as discontinued
operations for all periods presented. For additional information
about these divestitures, see Note 2 of the Notes to Consolidated
Financial Statements in this report.
• During the first and fourth quarters of 2009, we recorded
restructuring charges. For additional information about these
charges, see Note 11 of the Notes to Consolidated Financial
Statements.
• During the fourth quarter of 2009, we recorded a $7.3 million
income tax benefit related to our ability to utilize foreign tax credits
beyond 2009. For additional information about these benefits, see
Note 7 of the Notes to the Consolidated Financial Statements.
15. SUBSEQUENT EVENT
On February 18, 2011, we extended the maturity date and reduced
the borrowing limits of our existing unsecured revolving credit facility
dated as of July 24, 2006, as amended (the ‘‘Senior Credit Facility’’)
with a group of lenders by entering into a Second Amended and
Restated Credit Agreement dated as of February 18, 2011 (the
‘‘Amended Agreement’’). The Senior Credit Facility had been
scheduled to expire on July 24, 2011, and provided $850.0 million of
borrowing capacity. The Amended Agreement provides for a maturity
date of February 18, 2015. We elected to reduce the size of the facil-
ity to $500.0 million in line with our liquidity needs and reflecting
credit market conditions, including higher upfront fees and fees for
unused borrowing availability. No amounts are currently outstanding
under the Senior Credit Facility. The Amended Agreement also
provides an accordion feature that allows us to request an increase in
the total commitment amount to $750 million should we so choose.
We added certain of our subsidiaries in Canada and Luxembourg as
co-borrowers in addition to the Company and our U.K. subsidiary to
provide additional flexibility as to the place of borrowing.
The Amended Agreement revises certain other terms of the existing
credit agreement, including pricing, to reflect current market condi-
tions. The pricing grid for the Senior Credit Facility, which is based on
our applicable credit ratings at the time of any borrowing, was
increased. Based on our current credit ratings, the unused facility fee
as of the closing date increased from 8 to 20 basis points, and the
margin for base rate or LIBOR rate loans and letters of credit as of
the closing date increased from 32 to 150 basis points. The
Amended Agreement did not change the existing financial covenant
which requires us to maintain, on a rolling four quarter basis, a
maximum leverage ratio (the ratio of consolidated total funded debt to
consolidated EBITDA as defined in the Amended Agreement) not to
exceed 3.5 to 1.0. On February 18, 2011, we correspondingly
reduced the size of our commercial paper program (the CP Program),
which is supported by the Senior Credit Facility, from $850.0 million
to $500.0 million. As of February 18, 2011, no amounts were
outstanding under the CP Program.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
EQUIFAX 2010 ANNUAL REPORT
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