Equifax 2012 Annual Report Download - page 28

26 Equifax 2012 Annual Report
Contractual Obligations and Commercial Commitments
The following table summarizes our significant contractual obligations and commitments as of December 31, 2012. The table excludes com-
mitments 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 (including capitalized lease obligation)
(1)
$1,720.4 $282.9 $290.0 $272.5 $ 875.0
Operating leases
(2)
94.3 20.7 26.7 14.1 32.8
Data processing, outsourcing agreements
and other purchase obligations
(3)
132.8 80.5 45.6 6.4 0.3
Other long-term liabilities
(4)(6)
104.8 6.3 13.6 10.0 74.9
Interest payments
(5)
825.0 68.5 126.8 112.7 517.0
$2,877.3 $458.9 $502.7 $415.7 $1,500.0
(1) The amounts are gross of unamortized discounts totaling $2.3 million and fair value adjustments of $12.6 million at December 31, 2012.
Total debt on our Consolidated Balance Sheets is net of the unamortized discounts and fair value adjustments.
(2) Our operating lease obligations principally involve office space and equipment, which include 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 2013 and
2018.
(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 2012 have not been deemed necessary due to our current expectations regarding
future plan asset performance.
(5) For future interest payments on variable-rate debt, which are generally based on a specified margin plus a base rate (LIBOR) or on CP
rates for investment grade issuers, we used the variable rate in effect at December 31, 2012 to calculate these payments. Our variable
rate debt at December 31, 2012, consisted of CP, borrowings under our credit facilities and our five-year senior notes due 2014 (against
which we have executed interest rate swaps to convert interest expense from fixed rates to floating rates). Future interest payments
related to our Senior Credit Facility and our CP program are based on the borrowings outstanding at December 31, 2012 through their
respective maturity dates, assuming such borrowings are outstanding until that time. The variable portion of the rate at December 31,
2012 ranged from 0.4% to 2.1% for all of our variable-rate debt. Future interest payments may be different depending on future borrow-
ing activity and interest rates.
(6) This table excludes $24.2 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.
Off-Balance Sheet Transactions
We do not engage in off-balance sheet financing activities.
Pursuant to the terms of certain industrial revenue bonds, we have
transferred title to certain of our fixed assets with total costs of
$88.4 million and $65.3 million, as of December 31, 2012 and 2011,
respectively, to a local governmental authority in the U.S. to receive a
property tax abatement related to economic development. The title to
these assets will revert back to us upon retirement or cancellation of
the applicable bonds. These fixed assets are still recognized on the
Company’s Consolidated Balance Sheets as all risks and rewards
remain with the Company.
Letters of Credit and Guarantees
We will from time to time issue standby letters of credit, performance
bonds or other guarantees in the normal course of business. The
aggregate notional amount of all performance bonds and standby
letters of credit was not material at December 31, 2012, and all have
a remaining maturity of one year or less. Guarantees are issued from
time to time to support the needs of our operating units. The
maximum potential future payments we could be required to make
under the guarantees is not material at December 31, 2012.
Benefit Plans
We sponsor a qualified defined benefit retirement plan (the U.S.
Retirement Income Plan, or USRIP) that covers approximately 25% of
current U.S. salaried employees who were hired on or before
June 30, 2007, the last date on which an individual could be hired
and enter the plan before the USRIP was frozen to new participation
at December 31, 2008. This plan also covers many retirees as well as
certain terminated but vested individuals not yet in retirement status.
We also sponsor a defined benefit plan that covers most salaried and
hourly employees in Canada (the Canadian Retirement Income Plan,
or CRIP). The CRIP was frozen to new participants entering the plan
in 2011.
At December 31, 2012, the USRIP met or exceeded ERISA’s
minimum funding requirements. During the twelve months ended
December 31, 2012, we did not make any contributions to the
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued