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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2020
 
OR
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                                      to                                      .
 
Commission File Number: 001-06605
 
  
EQUIFAX INC.
(Exact name of registrant as specified in its charter) 
Georgia58-0401110
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
 
1550 Peachtree StreetN.W. AtlantaGeorgia30309
(Address of principal executive offices)(Zip Code)
 
404-885-8000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, $1.25 par value per shareEFXNew York Stock Exchange
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes       No   
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes       No   
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No  

On April 10, 2020, there were 121,385,137 shares of the registrant’s common stock outstanding.


EQUIFAX INC.
 
QUARTERLY REPORT ON FORM 10-Q
 
QUARTER ENDED March 31, 2020
 
INDEX
 
  Page
 
 
 
 
 
 
 
 




2


FORWARD-LOOKING STATEMENTS
 
This report contains information that may constitute “forward-looking statements.” Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “may” and similar expressions identify forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to future operating results and statements related to the 2017 cybersecurity incident and improvements in our information technology and data security infrastructure, including as part of our EFX 2020 cloud technology, data and security transformation, our strategy, our ability to mitigate or manage disruptions posed by COVID-19, the impact of COVID-19 and changes in worldwide and U.S. economic conditions that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services, our culture, our ability to innovate, the market acceptance of new products and services and similar statements about our business plans are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, “Item 1A. Risk Factors,” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2019, in Part II, “Item 1A. Risk Factors” and elsewhere in this report, and those described from time to time in our future reports filed with the Securities and Exchange Commission. As a result of such risks and uncertainties, we urge you not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
3


PART I.  FINANCIAL INFORMATION
 
ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)
 
EQUIFAX INC.
 
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
 
(Unaudited)

Three Months Ended 
March 31,
 20202019
(In millions, except per share amounts)
Operating revenue$957.9  $846.1  
Operating expenses:  
Cost of services (exclusive of depreciation and amortization below)414.1  387.5  
Selling, general and administrative expenses316.0  998.9  
Depreciation and amortization91.9  77.6  
Total operating expenses822.0  1,464.0  
Operating income (loss)135.9  (617.9) 
Interest expense(30.7) (26.7) 
Other income, net45.3  2.1  
Consolidated income (loss) before income taxes150.5  (642.5) 
(Provision) benefit for income taxes(36.0) 88.1  
Consolidated net income (loss)114.5  (554.4) 
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests(1.9) (1.5) 
Net income (loss) attributable to Equifax$112.6  $(555.9) 
Basic earnings per common share:  
Net income (loss) attributable to Equifax$0.93  $(4.60) 
Weighted-average shares used in computing basic earnings per share121.3  120.7  
Diluted earnings per common share:  
Net income (loss) attributable to Equifax$0.92  $(4.57) 
Weighted-average shares used in computing diluted earnings per share122.6  121.6  
Dividends per common share$0.39  $0.39  



See Notes to Consolidated Financial Statements.

4

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
(Unaudited)
 
 Three Months Ended March 31,
20202019
Equifax
Shareholders
Noncontrolling
Interests
TotalEquifax
Shareholders
Noncontrolling
Interests
Total
 (In millions)
Net income (loss)$112.6  $1.9  $114.5  $(555.9) $1.5  $(554.4) 
Other comprehensive (loss) income:                  
Foreign currency translation adjustment(291.0) (2.2) (293.2) 37.3  0.8  38.1  
Change in unrecognized prior service cost and actuarial losses related to our pension and other postretirement benefit plans, net3.7    3.7  3.0    3.0  
Change in cumulative loss from cash flow hedging transactions, net      0.1    0.1  
Comprehensive (loss) income$(174.7) $(0.3) $(175.0) $(515.5) $2.3  $(513.2) 


See Notes to Consolidated Financial Statements.
5

EQUIFAX INC.

CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2020December 31, 2019
(In millions, except par values) 
ASSETS  
Current assets:  
Cash and cash equivalents$369.9  $401.3  
Trade accounts receivable, net of allowance for doubtful accounts of $13.4 and $11.2 at March 31, 2020 and December 31, 2019, respectively605.5  532.1  
Prepaid expenses119.9  88.1  
Other current assets53.7  187.9  
Total current assets1,149.0  1,209.4  
Property and equipment:  
Capitalized internal-use software and system costs1,036.7  979.4  
Data processing equipment and furniture322.9  325.1  
Land, buildings and improvements233.6  236.3  
Total property and equipment1,593.2  1,540.8  
Less accumulated depreciation and amortization(631.1) (593.2) 
Total property and equipment, net962.1  947.6  
Goodwill4,157.4  4,308.3  
Indefinite-lived intangible assets94.7  94.9  
Purchased intangible assets, net1,000.6  1,044.6  
Other assets, net259.0  304.2  
Total assets$7,622.8  $7,909.0  
LIABILITIES AND EQUITY 
Current liabilities:  
Short-term debt and current maturities of long-term debt$3.1  $3.1  
Accounts payable170.9  148.3  
Accrued expenses180.9  163.5  
Accrued salaries and bonuses86.9  156.1  
Deferred revenue111.1  104.0  
Other current liabilities590.9  784.1  
Total current liabilities1,143.8  1,359.1  
Long-term debt3,505.1  3,379.5  
Deferred income tax liabilities, net263.4  248.0  
Long-term pension and other postretirement benefit liabilities114.3  118.9  
Other long-term liabilities166.4  180.6  
Total liabilities5,193.0  5,286.1  
Commitments and Contingencies (see Note 6)
Equifax shareholders' equity: 
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none    
Common stock, $1.25 par value: Authorized shares - 300.0;
Issued shares - 189.3 at March 31, 2020 and December 31, 2019;
Outstanding shares - 121.4 and 121.2 at March 31, 2020 and December 31, 2019, respectively
236.6  236.6  
Paid-in capital1,431.7  1,405.1  
Retained earnings4,196.9  4,131.8  
Accumulated other comprehensive loss(918.9) (631.6) 
Treasury stock, at cost, 67.3 shares and 67.5 shares at March 31, 2020 and December 31, 2019, respectively(2,553.9) (2,557.4) 
Stock held by employee benefit trusts, at cost, 0.6 shares at March 31, 2020 and December 31, 2019(5.9) (5.9) 
Total Equifax shareholders’ equity2,386.5  2,578.6  
Noncontrolling interests including redeemable noncontrolling interests43.3  44.3  
Total equity2,429.8  2,622.9  
Total liabilities and equity$7,622.8  $7,909.0  

 See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(Unaudited)

Three Months Ended March 31,
 20202019
(In millions)
Operating activities:  
Consolidated net income (loss)$114.5  $(554.4) 
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:  
Depreciation and amortization94.3  79.2  
Stock-based compensation expense18.8  18.1  
Deferred income taxes17.0  (89.2) 
Gain on fair market value adjustment of equity investment(32.9)   
Changes in assets and liabilities, excluding effects of acquisitions:   
Accounts receivable, net(83.9) (42.8) 
Other assets, current and long-term29.6  0.2  
Current and long term liabilities, excluding debt(126.6) 619.9  
Cash provided by operating activities30.8  31.0  
Investing activities: 
Capital expenditures(88.0) (114.8) 
Acquisitions, net of cash acquired(48.1) (24.8) 
Investment in unconsolidated affiliates, net  (25.0) 
Cash (used) in investing activities(136.1) (164.6) 
Financing activities: 
Net short-term borrowings0.2  64.7  
Payments on long-term debt  (25.0) 
Borrowings on long-term debt125.0  50.0  
Dividends paid to Equifax shareholders(47.3) (47.1) 
Dividends paid to noncontrolling interests(0.3) (0.2) 
Proceeds from exercise of stock options16.7  1.9  
Payment of taxes related to settlement of equity awards  (4.2) 
Debt issuance costs(1.6)   
Cash provided by financing activities92.7  40.1  
Effect of foreign currency exchange rates on cash and cash equivalents(18.8) 3.1  
Decrease in cash and cash equivalents(31.4) (90.4) 
Cash and cash equivalents, beginning of period401.3  223.6  
Cash and cash equivalents, end of period$369.9  $133.2  
 
See Notes to Consolidated Financial Statements.
7

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND OTHER COMPREHENSIVE LOSS
 
(Unaudited)

For the Three Months Ended March 31, 2020
 
 Equifax Shareholders  
Accumulated Other Comprehensive LossStock
Held By Employee Benefits Trusts
 Common Stock     
Shares
Outstanding
AmountPaid-In
Capital
Retained
Earnings
Treasury
Stock
Noncontrolling
Interests
Total
Equity
 (In millions, except per share amounts)
Balance, December 31, 2019121.2  $236.6  $1,405.1  $4,131.8  $(631.6) $(2,557.4) $(5.9) $44.3  $2,622.9  
Net income—  —  —  112.6  —  —  —  1.9  114.5  
Other comprehensive loss—  —  —  —  (287.3) —  —  (2.2) (289.5) 
Shares issued under stock and benefit plans, net of minimum tax withholdings0.2  —  7.6  —  —  3.5  —  —  11.1  
Cash dividends ($0.39 per share)—  —  —  (47.5) —  —  —  —  (47.5) 
Dividends paid to employee benefits trusts—  —  0.2  —  —  —  —  —  0.2  
Stock-based compensation expense—  —  18.8  —  —  —  —  —  18.8  
Redeemable noncontrolling interest adjustment—  —  —  0.4  —  —  —  (0.4)   
Dividends paid to noncontrolling interests—  —  —  —  —  —  —  (0.3) (0.3) 
Cumulative adjustment from change in accounting principle (See Note 1)—  —  —  (0.4) —  —  —  —  (0.4) 
Balance, March 31, 2020121.4  $236.6  $1,431.7  $4,196.9  $(918.9) $(2,553.9) $(5.9) $43.3  $2,429.8  

At March 31, 2020, $590.1 million was available for future purchases of common stock under our share repurchase authorization.

For the Three Months Ended March 31, 2019

 Equifax Shareholders  
Accumulated Other Comprehensive LossStock
Held By Employee Benefits Trusts
 Common Stock     
Shares
Outstanding
AmountPaid-In
Capital
Retained
Earnings
Treasury
Stock
Noncontrolling
Interests
Total
Equity
 (In millions, except per share amounts)
Balance, December 31, 2018120.6  $236.6  $1,356.6  $4,717.8  $(626.3) $(2,571.0) $(5.9) $47.9  $3,155.7  
Net loss—  —  —  (555.9) —  —  —  1.5  (554.4) 
Other comprehensive income—  —  —  —  40.4  —  —  0.8  41.2  
Shares issued under stock and benefit plans, net of minimum tax withholdings0.2  —  (5.5) —  —  3.1  —  —  (2.4) 
Cash dividends ($0.39 per share)—  —  —  (47.3) —  —  —  —  (47.3) 
Dividends paid to employee benefits trusts—  —  0.2  —  —  —  —  —  0.2  
Stock-based compensation expense—  —  18.1  —  —  —  —  —  18.1  
Redeemable noncontrolling interest adjustment—  —  —  0.8  —  —  —  (0.8)   
Dividends paid to noncontrolling interests—  —  —  —  —  —  —  (0.2) (0.2) 
Balance, March 31, 2019120.8  $236.6  $1,369.4  $4,115.4  $(585.9) $(2,567.9) $(5.9) $49.2  $2,610.9  






Accumulated Other Comprehensive Loss consists of the following components:
 
March 31, 2020December 31, 2019
 (In millions)
Foreign currency translation$(643.4) $(352.4) 
Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $86.6 and $88.4 at March 31, 2020 and December 31, 2019, respectively(274.4) (278.1) 
Cash flow hedging transactions, net of accumulated tax of $0.7 at March 31, 2020 and December 31, 2019, respectively(1.1) (1.1) 
Accumulated other comprehensive loss$(918.9) $(631.6) 
 

See Notes to Consolidated Financial Statements.


EQUIFAX INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
March 31, 2020
 
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
As used herein, the terms Equifax, the Company, we, our and us refer to Equifax Inc., a Georgia corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Equifax Inc.

Nature of Operations.  We collect, analyze and manage various types of financial, demographic, employment and marketing information. Our products and services enable businesses to make credit and service decisions, manage their portfolio risk, automate or outsource certain payroll-related, tax and human resources business processes, and develop marketing strategies concerning consumers and commercial enterprises. We serve customers across a wide range of industries, including the financial services, mortgage, retail, telecommunications, utilities, automotive, brokerage, healthcare and insurance industries, as well as government agencies. We also enable consumers to manage and protect their financial health through a portfolio of products offered directly to consumers. As of March 31, 2020, we operated in the following countries: Argentina, Australia, Canada, Chile, Costa Rica, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom, or U.K., Uruguay and the United States of America, or U.S. We also offer Equifax branded credit services in Russia through a joint venture, have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia, Singapore and the United Arab Emirates, have an investment in a consumer and commercial credit information company in Brazil, and have an investment in an identity authentication company in Canada.
 
We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting institutions, and income and tax information primarily from large to mid-sized companies in the U.S. We process this information utilizing our proprietary information management systems. We also provide information, technology and services to support debt collections and recovery management.
 
Basis of Presentation.  The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, the instructions to Form 10-Q and applicable sections of SEC Regulation S-X. This Form 10-Q should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K”).
 
Our unaudited Consolidated Financial Statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the periods presented and are of a normal recurring nature.
 
Earnings Per Share.  Our basic earnings per share, or EPS, is calculated as net income attributable to Equifax divided by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options, restricted stock units, or other contracts to issue common stock were exercised and resulted in additional common shares outstanding. The net income (loss) amounts used in both our basic and diluted EPS calculations are the same. A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows: 
 Three Months Ended March 31,
 20202019
 (In millions)
Weighted-average shares outstanding (basic)121.3  120.7  
Effect of dilutive securities: 
Stock options and restricted stock units1.3  0.9  
Weighted-average shares outstanding (diluted)122.6  121.6  
 

For the three months ended March 31, 2020 and 2019, stock options that were anti-dilutive were 0.7 million and 1.4 million, respectively.
 
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Financial Instruments.  Our financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable and short- and long-term debt. The carrying amounts of these items, other than long-term debt, approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for similar publicly traded instruments, and for non-publicly traded instruments through valuation techniques involving observable inputs based on the specific characteristics of the debt instrument. As of March 31, 2020 and December 31, 2019, the fair value of our long-term debt, including the current portion, was $3.5 billion and $3.6 billion, respectively, compared to its carrying value of $3.5 billion and $3.4 billion, respectively.
 
Fair Value Measurements.  Fair value is determined based on the assumptions marketplace participants use in pricing the asset or liability. We use a three level fair value hierarchy to prioritize the inputs used in valuation techniques between observable inputs that reflect quoted prices in active markets, inputs other than quoted prices with observable market data and unobservable data (e.g., a company’s own data).
 
        The following table presents items measured at fair value on a recurring basis:
  Fair Value Measurements at Reporting Date Using:
DescriptionFair Value of Assets
(Liabilities) at
March 31, 2020
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 (In millions)
Deferred Compensation Plan Assets(1)
$34.4  $34.4  $  $  
Deferred Compensation Plan Liability(1)
(34.4)   (34.4)   
Total$  $34.4  $(34.4) $  
 
(1)        We maintain deferred compensation plans that allow for certain management employees to defer the receipt of compensation (such as salary, incentive compensation and commissions) until a later date based on the terms of the plan. The liability representing benefits accrued for plan participants is valued at the quoted market prices of the participants’ investment elections. The asset consists of mutual funds reflective of the participants’ investment selections and is valued at daily quoted market prices.
        
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. We completed various acquisitions during the three months ended March 31, 2020 and the year ended December 31, 2019. The values of net assets acquired and the resulting goodwill were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and definite-lived intangible assets acquired in these acquisitions were internally or externally estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates used in the present value calculations.

Trade Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at cost. Significant payment terms for customers are identified in the contract. We do not recognize interest income on our trade accounts receivable. Additionally, we generally do not require collateral from our customers related to our trade accounts receivable.

The allowance for doubtful accounts is based on management's estimate for expected credit losses for outstanding trade accounts receivables. We determine expected credit losses based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, the establishment of specific reserves for customers in an adverse financial condition and adjusted based upon our expectations of changes in macro-economic conditions that may impact the collectability of outstanding receivables. We reassess the adequacy of the allowance for doubtful accounts each reporting period. Increases to the allowance for doubtful accounts are recorded as bad debt expense, which are included in selling, general and administrative expenses on the accompanying Consolidated Statements of Income (Loss). Below is a rollforward of our allowance for doubtful accounts for the three months ended March 31, 2020 and 2019, respectively.


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Three Months Ended March 31,
20202019
(In millions)
Allowance for doubtful accounts, beginning of period$11.2  $10.9  
Current period bad debt expense2.5  2.0  
Write-offs, net of recoveries(0.3) (0.4) 
Allowance for doubtful accounts, end of period$13.4  $12.5  

Other Current Assets. Other current assets on our Consolidated Balance Sheets include amounts receivable from tax authorities and director and officers liability insurance receivable for costs incurred to date related to the 2017 cybersecurity incident that are reimbursable and probable for recovery under our insurance coverage. Other current assets also include amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of March 31, 2020, these assets were approximately $20.0 million, with a corresponding balance in other current liabilities. These amounts are restricted as to their current use, and will be released according to the specific customer agreements.
 
Other Assets.  Other assets on our Consolidated Balance Sheets primarily represent the Company’s operating lease right-of-use assets, our investment in unconsolidated affiliates, employee benefit trust assets, and assets related to life insurance policies covering certain officers of the Company.
 
Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the current portion of operating lease liabilities and various accrued liabilities such as costs related to the 2017 cybersecurity incident as described more fully in Note 5. Other current liabilities also include corresponding amounts of other current assets related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of March 31, 2020, these funds were approximately $20.0 million. These amounts are restricted as to their current use and will be released according to the specific customer agreements.

Change in Accounting Principle. In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. As of January 1, 2020, we adopted the standard. The adoption of the standard did not have a material impact on our consolidated financial statements with the most significant impact being the increase in allowance for doubtful accounts related to our trade accounts receivable. The adoption adjustment was recorded to Retained Earnings, as seen in the Consolidated Statements of Changes in Equity.

In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment (Topic 350).” This standard eliminates Step 2 from the current goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted. This guidance must be applied on a prospective basis. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows.

In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” which eliminates, adds, and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, and interim periods therein, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The adoption of this standard did not materially impact our consolidated financial statements or disclosures.

In August 2018, the FASB issued ASU No. 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” ASU 2018-15 requires that issuers follow the internal-use software guidance in Accounting Standards Codification (ASC) 350-40 to determine which costs to capitalize as assets or expense as incurred. The ASC 350-40 guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the
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preliminary project and post-implementation stages be expensed as they are incurred. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods therein. The adoption of the standard did not have a material impact on our consolidated financial statements.
Recent Accounting Pronouncements.  Retirement Benefits. In August 2018, the FASB issued ASU No. 2018-14 “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans” which requires minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. The adoption of this standard will have an impact on our disclosures and will not materially impact our consolidated financial statements.
Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04“Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We are still evaluating the impact, but do not expect the adoption of the standard to have a material impact on our Consolidated Financial Statements.


2. REVENUE

Revenue Recognition. Based on the information that management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, we disaggregate revenue as follows:
Three Months Ended March 31,Change
Consolidated Operating Revenue20202019$%
(In millions)
Online Information Solutions$252.8  $217.7  $35.1  16 %
Mortgage Solutions42.8  32.2  10.6  33 %
Financial Marketing Services47.6  48.4  (0.8) (2)%
Total U.S. Information Solutions343.2  298.3  44.9  15 %
Verification Services220.2  148.9  71.3  48 %
Employer Services81.4  79.6  1.8  2 %
Total Workforce Solutions301.6  228.5  73.1  32 %
Asia Pacific69.7  73.1  (3.4) (5)%
Europe66.4  68.5  (2.1) (3)%
Latin America43.2  47.2  (4.0) (8)%
Canada 36.7  36.3  0.4  1 %
Total International216.0  225.1  (9.1) (4)%
Global Consumer Solutions97.1  94.2  2.9  3 %
Total operating revenue$957.9  $846.1  $111.8  13 %

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Remaining Performance Obligation – We have elected to disclose only the remaining performance obligations for those contracts with an expected duration of greater than one year and do not disclose the value of remaining performance obligations for contracts in which we recognize revenue at the amount to which we have the right to invoice. We expect to recognize as revenue the following amounts related to our remaining performance obligations as of March 31, 2020 inclusive of foreign exchange impact:

Performance ObligationAmount
(In millions)
Less than 1 year$29.4  
1 to 3 years36.8  
3 to 5 years22.4  
Thereafter45.4  
Total remaining performance obligation$134.0  
        
3. GOODWILL AND INTANGIBLE ASSETS
 
Goodwill.  Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment tests as of September 30.

Changes in the amount of goodwill for the three months ended March 31, 2020, are as follows:
U.S.
Information
Solutions
Workforce SolutionsInternationalGlobal Consumer SolutionsTotal
 (In millions)
Balance, December 31, 2019$1,280.7  $1,010.4  $1,829.2  $188.0  $4,308.3  
Acquisitions    52.3