Equifax 2015 Annual Report Download - page 59

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fixed rate, with the applicable rate and margin. Maturities of CP can range from overnight to 397 days. Because the CP program
is backstopped by our Senior Credit Facility, the amount of CP which may be issued under the program is reduced by the
outstanding face amount of any letters of credit issued under the facility and, pursuant to our existing Board of Directors
authorization, by the outstanding borrowings under our Senior Credit Facility. At December 31, 2015, there were $47.2 million
CP notes outstanding.
6.3% and 7.0% Senior Notes. On June 28, 2007, we issued $300.0 million principal amount of 6.3%, ten-year senior
notes and $250.0 million principal amount of 7.0%, thirty-year senior notes in underwritten public offerings. Interest is payable
semi-annually in arrears on January 1 and July 1 of each year. The net proceeds of the financing were used to repay short-term
indebtedness, a substantial portion of which was incurred in connection with our acquisition of TALX. We must comply with
various non-financial covenants, including certain limitations on liens, additional debt and mortgages, mergers, asset
dispositions and sale-leaseback arrangements. The senior notes are unsecured and rank equally with all of our other unsecured
and unsubordinated indebtedness.
3.3% Senior Notes. On December 17, 2012, we issued $500.0 million principal amount of 3.3%, ten-year senior
notes in an underwritten public offering. Interest is payable semi-annually in arrears on December 15 and June 15 of each year.
The net proceeds of the sale of the notes were used to partially finance the acquisition of CSC Credit Services in December
2012. We must comply with various non-financial covenants, including certain limitations on liens, additional debt and
mortgages, mergers, asset dispositions and sale-leaseback arrangements. The senior notes are unsecured and rank equally with
all of our other unsecured and unsubordinated indebtedness.
6.9% Debentures. We have $125 million of debentures outstanding with a maturity date of 2028. The debentures are
unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.
Cash paid for interest was $61.6 million, $67.9 million and $67.8 million during the twelve months ended
December 31, 2015, 2014 and 2013, respectively.
7. COMMITMENTS AND CONTINGENCIES
Leases. Our operating leases principally involve office space and office equipment. Rental expense for operating
leases, which is recognized on a straight-line basis over the lease term, was $24.2 million, $22.6 million and $24.2 million for
the twelve months ended December 31, 2015, 2014 and 2013, respectively. Our headquarters building ground lease has
purchase options exercisable beginning in 2019, renewal options exercisable in 2048 and escalation clauses that began in 2009.
Expected future minimum payment obligations for non-cancelable operating leases exceeding one year are as follows as of
December 31, 2015:
Years ending December 31, Amount
(Inmillions)
2016 $ 21.2
2017 17.7
2018 14.3
2019 12.4
2020 12.2
Thereafter 60.7
$ 138.5
We have no material sublease agreements and as a result, expected sublease income is not reflected as a reduction in
the total minimum rental obligations under operating leases in the table above.
Data Processing, Outsourcing Services and Other Agreements. We have separate agreements with IBM, Tata
Consultancy Services, and others to outsource portions of our computer data processing operations, applications development,
business continuity and recovery services, help desk service and desktop support functions, operation of our voice and data
networks, maintenance and related functions and to provide certain other administrative and operational services. The
agreements expire between 2016 and 2023. The estimated aggregate minimum contractual obligation remaining under these
agreements is approximately $55 million as of December 31, 2015, with no future year’s minimum contractual obligation
expected to exceed approximately $35 million. Annual payment obligations in regard to these agreements vary due to factors
such as the volume of data processed; changes in our servicing needs as a result of new product offerings, acquisitions or
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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