(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of | (I.R.S. Employer | ||||
incorporation or organization) | Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company | |||||||||||
☒ | ☐ | ☐ |
Page | ||||||||
Three Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||
Operating revenue | $ | $ | ||||||||||||
Operating expenses: | ||||||||||||||
Cost of services (exclusive of depreciation and amortization below) | ||||||||||||||
Selling, general and administrative expenses | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Total operating expenses | ||||||||||||||
Operating income | ||||||||||||||
Interest expense | ( | ( | ||||||||||||
Other income, net | ||||||||||||||
Consolidated income before income taxes | ||||||||||||||
Provision for income taxes | ( | ( | ||||||||||||
Consolidated net income | ||||||||||||||
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests | ( | ( | ||||||||||||
Net income attributable to Equifax | $ | $ | ||||||||||||
Basic earnings per common share: | ||||||||||||||
Net income attributable to Equifax | $ | $ | ||||||||||||
Weighted-average shares used in computing basic earnings per share | ||||||||||||||
Diluted earnings per common share: | ||||||||||||||
Net income attributable to Equifax | $ | $ | ||||||||||||
Weighted-average shares used in computing diluted earnings per share | ||||||||||||||
Dividends per common share | $ | $ |
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||
Operating revenue | $ | $ | ||||||||||||
Operating expenses: | ||||||||||||||
Cost of services (exclusive of depreciation and amortization below) | ||||||||||||||
Selling, general and administrative expenses | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Total operating expenses | ||||||||||||||
Operating income | ||||||||||||||
Interest expense | ( | ( | ||||||||||||
Other income, net | ||||||||||||||
Consolidated income before income taxes | ||||||||||||||
Provision for income taxes | ( | ( | ||||||||||||
Consolidated net income | ||||||||||||||
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests | ( | ( | ||||||||||||
Net income attributable to Equifax | $ | $ | ||||||||||||
Basic earnings per common share: | ||||||||||||||
Net income attributable to Equifax | $ | $ | ||||||||||||
Weighted-average shares used in computing basic earnings per share | ||||||||||||||
Diluted earnings per common share: | ||||||||||||||
Net income attributable to Equifax | $ | $ | ||||||||||||
Weighted-average shares used in computing diluted earnings per share | ||||||||||||||
Dividends per common share | $ | $ |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Equifax Shareholders | Noncontrolling Interests | Total | Equifax Shareholders | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net | ( | ( | ||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | $ | $ |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Equifax Shareholders | Noncontrolling Interests | Total | Equifax Shareholders | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net | ( | ( | ||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | $ | $ |
(In millions, except par values) | June 30, 2023 | December 31, 2022 | ||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Trade accounts receivable, net of allowance for doubtful accounts of $ | ||||||||||||||
Prepaid expenses | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment: | ||||||||||||||
Capitalized internal-use software and system costs | ||||||||||||||
Data processing equipment and furniture | ||||||||||||||
Land, buildings and improvements | ||||||||||||||
Total property and equipment | ||||||||||||||
Less accumulated depreciation and amortization | ( | ( | ||||||||||||
Total property and equipment, net | ||||||||||||||
Goodwill | ||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||
Purchased intangible assets, net | ||||||||||||||
Other assets, net | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt and current maturities of long-term debt | $ | $ | ||||||||||||
Accounts payable | ||||||||||||||
Accrued expenses | ||||||||||||||
Accrued salaries and bonuses | ||||||||||||||
Deferred revenue | ||||||||||||||
Other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Deferred income tax liabilities, net | ||||||||||||||
Long-term pension and other postretirement benefit liabilities | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and Contingencies (see Note 6) | ||||||||||||||
Equifax shareholders' equity: | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ Issued shares - Outstanding shares - | ||||||||||||||
Paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Treasury stock, at cost, | ( | ( | ||||||||||||
Stock held by employee benefit trusts, at cost, | ( | ( | ||||||||||||
Total Equifax shareholders’ equity | ||||||||||||||
Noncontrolling interests including redeemable noncontrolling interests | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
(In millions) | ||||||||||||||
Operating activities: | ||||||||||||||
Consolidated net income | $ | $ | ||||||||||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Deferred income taxes | ( | |||||||||||||
Gain on fair market value adjustment and gain on sale of equity investments | ( | ( | ||||||||||||
Changes in assets and liabilities, excluding effects of acquisitions: | ||||||||||||||
Accounts receivable, net | ( | ( | ||||||||||||
Other assets, current and long-term | ( | ( | ||||||||||||
Current and long term liabilities, excluding debt | ( | ( | ||||||||||||
Cash provided by operating activities | ||||||||||||||
Investing activities: | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Acquisitions, net of cash acquired | ( | ( | ||||||||||||
Cash received from divestitures | ||||||||||||||
Cash used in investing activities | ( | ( | ||||||||||||
Financing activities: | ||||||||||||||
Net short-term borrowings | ( | |||||||||||||
Payments on long-term debt | ( | |||||||||||||
Borrowings on long-term debt | ||||||||||||||
Dividends paid to Equifax shareholders | ( | ( | ||||||||||||
Dividends paid to noncontrolling interests | ( | ( | ||||||||||||
Proceeds from exercise of stock options and employee stock purchase plan | ||||||||||||||
Payment of taxes related to settlement of equity awards | ( | ( | ||||||||||||
Debt issuance costs | ( | |||||||||||||
Cash (used in) provided by financing activities | ( | |||||||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | ( | |||||||||||||
Decrease in cash and cash equivalents | ( | ( | ||||||||||||
Cash and cash equivalents, beginning of period | ||||||||||||||
Cash and cash equivalents, end of period | $ | $ |
Equifax Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Stock Held By Employee Benefits Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | Paid-In Capital | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to employee benefits trusts | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ |
Equifax Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Stock Held By Employee Benefits Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | Paid-In Capital | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | — | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to employee benefits trusts | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ |
Equifax Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Stock Held By Employee Benefits Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | Paid-In Capital | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to employee benefits trusts | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ |
Equifax Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Stock Held By Employee Benefits Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | Paid-In Capital | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | — | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to employee benefits trusts | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||
(In millions) | ||||||||||||||
Foreign currency translation | $ | ( | $ | ( | ||||||||||
Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $ | ( | ( | ||||||||||||
Cash flow hedging transactions, net of accumulated tax of $ | ( | ( | ||||||||||||
Accumulated other comprehensive loss | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Weighted-average shares outstanding (basic) | ||||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Stock options and restricted stock units | ||||||||||||||||||||||||||
Weighted-average shares outstanding (diluted) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Allowance for doubtful accounts, beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Current period bad debt expense | |||||||||||||||||||||||
Write-offs, net of recoveries | ( | ( | ( | ( | |||||||||||||||||||
Allowance for doubtful accounts, end of period | $ | $ | $ | $ |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Operating Revenue | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Verification Services | $ | $ | $ | ( | ( | % | $ | $ | ( | ( | % | |||||||||||||||||||||||||||||||||||||||
Employer Services | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Workforce Solutions | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||||||||||||||||||||
Online Information Solutions | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Solutions | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||||||||||||||||||||
Financial Marketing Services | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. Information Solutions | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | ( | ( | % | % | ||||||||||||||||||||||||||||||||||||||||||||||
Europe | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||||||||||||||||||||
Canada | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Latin America | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Total International | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Total operating revenue | $ | $ | $ | % | $ | $ | $ | ( | ( | % | ||||||||||||||||||||||||||||||||||||||||
Performance Obligation | Amount | |||||||
(In millions) | ||||||||
Less than 1 year | $ | |||||||
1 to 3 years | ||||||||
3 to 5 years | ||||||||
Thereafter | ||||||||
Total remaining performance obligation | $ |
Workforce Solutions | U.S. Information Solutions | International | Total | |||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||
Acquisitions | ||||||||||||||||||||||||||
Adjustments to initial purchase price allocation | ( | |||||||||||||||||||||||||
Foreign currency translation | ||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||
Definite-lived intangible assets: | (In millions) | |||||||||||||||||||||||||||||||||||||
Purchased data files | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Customer relationships | ( | ( | ||||||||||||||||||||||||||||||||||||
Proprietary database | ( | ( | ||||||||||||||||||||||||||||||||||||
Acquired software and technology | ( | ( | ||||||||||||||||||||||||||||||||||||
Trade names and other intangible assets | ( | ( | ||||||||||||||||||||||||||||||||||||
Non-compete agreements | ( | ( | ||||||||||||||||||||||||||||||||||||
Total definite-lived intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Years ending December 31, | Amount | |||||||
(In millions) | ||||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
$ |
June 30, 2023 | December 31, 2022 | |||||||||||||
(In millions) | ||||||||||||||
Commercial paper | $ | $ | ||||||||||||
Notes, | ||||||||||||||
Notes, | ||||||||||||||
Notes, | ||||||||||||||
Notes, | ||||||||||||||
Term loan, due August 2026 | ||||||||||||||
Notes, | ||||||||||||||
Notes, | ||||||||||||||
Debentures, | ||||||||||||||
Notes, | ||||||||||||||
Notes, | ||||||||||||||
Notes, | ||||||||||||||
Other | ||||||||||||||
Total debt | ||||||||||||||
Less short-term debt and current maturities | ( | ( | ||||||||||||
Less unamortized discounts and debt issuance costs | ( | ( | ||||||||||||
Total long-term debt, net | $ | $ |
Foreign currency translation adjustment | Pension and other postretirement benefit plans | Cash flow hedging transactions | Total | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In millions) | June 30, | June 30, | ||||||||||||||||||||||||
Operating revenue: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Workforce Solutions | $ | $ | $ | $ | ||||||||||||||||||||||
U.S. Information Solutions | ||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||
Total operating revenue | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In millions) | June 30, | June 30, | ||||||||||||||||||||||||
Operating income: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Workforce Solutions | $ | $ | $ | $ | ||||||||||||||||||||||
U.S. Information Solutions | ||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||
General Corporate Expense | ( | ( | ( | ( | ||||||||||||||||||||||
Total operating income | $ | $ | $ | $ |
June 30, | December 31, | |||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
Total assets: | ||||||||||||||
Workforce Solutions | $ | $ | ||||||||||||
U.S. Information Solutions | ||||||||||||||
International | ||||||||||||||
General Corporate | ||||||||||||||
Total assets | $ | $ |
Key Performance Indicators | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||
Operating revenue | $ | 1,317.6 | $ | 1,316.7 | $ | 2,619.6 | $ | 2,680.0 | ||||||||||||||||||
Operating revenue change | — | % | 7 | % | (2) | % | 9 | % | ||||||||||||||||||
Operating income | $ | 236.9 | $ | 304.6 | $ | 442.2 | $ | 637.1 | ||||||||||||||||||
Operating margin | 18.0 | % | 23.1 | % | 16.9 | % | 23.8 | % | ||||||||||||||||||
Net income attributable to Equifax | $ | 138.3 | $ | 200.6 | $ | 250.6 | $ | 422.4 | ||||||||||||||||||
Diluted earnings per share | $ | 1.12 | $ | 1.63 | $ | 2.03 | $ | 3.42 | ||||||||||||||||||
Cash provided by operating activities | $ | 262.1 | $ | 275.3 | $ | 413.0 | $ | 76.8 | ||||||||||||||||||
Capital expenditures* | $ | (149.9) | $ | (152.5) | $ | (302.9) | $ | (293.3) |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Operating Revenue | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Workforce Solutions | $ | 582.8 | $ | 609.2 | $ | (26.4) | (4) | % | $ | 1,179.1 | $ | 1,258.1 | $ | (79.0) | (6) | % | ||||||||||||||||||||||||||||||||||
U.S. Information Solutions | 445.0 | 421.4 | 23.6 | 6 | % | 866.7 | 854.4 | 12.3 | 1 | % | ||||||||||||||||||||||||||||||||||||||||
International | 289.8 | 286.1 | 3.7 | 1 | % | 573.8 | 567.5 | 6.3 | 1 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated operating revenue | $ | 1,317.6 | $ | 1,316.7 | $ | 0.9 | — | % | $ | 2,619.6 | $ | 2,680.0 | $ | (60.4) | (2) | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Operating Expenses | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated cost of services | $ | 588.0 | $ | 542.1 | $ | 45.9 | 8 | % | $ | 1,168.4 | $ | 1,095.5 | $ | 72.9 | 7 | % | ||||||||||||||||||||||||||||||||||
Consolidated selling, general and administrative expenses | 343.1 | 330.2 | 12.9 | 4 | % | 709.2 | 670.5 | 38.7 | 6 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated depreciation and amortization expense | 149.6 | 139.8 | 9.8 | 7 | % | 299.8 | 276.9 | 22.9 | 8 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated operating expenses | $ | 1,080.7 | $ | 1,012.1 | $ | 68.6 | 7 | % | $ | 2,177.4 | $ | 2,042.9 | $ | 134.5 | 7 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Operating Income | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated operating revenue | $ | 1,317.6 | $ | 1,316.7 | $ | 0.9 | — | % | $ | 2,619.6 | $ | 2,680.0 | $ | (60.4) | (2) | % | ||||||||||||||||||||||||||||||||||
Consolidated operating expenses | 1,080.7 | 1,012.1 | 68.6 | 7 | % | 2,177.4 | 2,042.9 | 134.5 | 7 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated operating income | $ | 236.9 | $ | 304.6 | $ | (67.7) | (22) | % | $ | 442.2 | $ | 637.1 | $ | (194.9) | (31) | % | ||||||||||||||||||||||||||||||||||
Consolidated operating margin | 18.0 | % | 23.1 | % | (5.1) | pts | 16.9 | % | 23.8 | % | (6.9) | pts |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Interest Expense and Other Income, net | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated interest expense | $ | (60.7) | $ | (41.6) | $ | (19.1) | 46 | % | $ | (118.3) | $ | (81.4) | $ | (36.9) | 45 | % | ||||||||||||||||||||||||||||||||||
Consolidated other income, net | 15.9 | 1.8 | 14.1 | nm | 20.4 | 12.9 | 7.5 | 58 | % | |||||||||||||||||||||||||||||||||||||||||
Average cost of debt | 4.2 | % | 2.9 | % | 4.1 | % | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Total consolidated debt, net, at quarter end | $ | 5,672.1 | $ | 5,685.2 | $ | (13.1) | nm | $ | 5,672.1 | $ | 5,685.2 | $ | (13.1) | nm |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Provision for Income Taxes | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated provision for income taxes | $ | (52.7) | $ | (63.4) | $ | 10.7 | (17) | % | $ | (91.4) | $ | (144.4) | $ | 53.0 | (37) | % | ||||||||||||||||||||||||||||||||||
Effective income tax rate | 27.4 | % | 23.9 | % | 26.6 | % | 25.4 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Net Income | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions, except per share amounts) | (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated operating income | $ | 236.9 | $ | 304.6 | $ | (67.7) | (22) | % | $ | 442.2 | $ | 637.1 | $ | (194.9) | (31) | % | ||||||||||||||||||||||||||||||||||
Consolidated interest expense and other income (expense), net | (44.8) | (39.8) | (5.0) | 13 | % | (97.9) | (68.5) | (29.4) | 43 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated provision for income taxes | (52.7) | (63.4) | 10.7 | (17) | % | (91.4) | (144.4) | 53.0 | (37) | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated net income | 139.4 | 201.4 | (62.0) | (31) | % | 252.9 | 424.2 | (171.3) | (40) | % | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (1.1) | (0.8) | (0.3) | 38 | % | (2.3) | (1.8) | (0.5) | 28 | % | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Equifax | $ | 138.3 | $ | 200.6 | $ | (62.3) | (31) | % | $ | 250.6 | $ | 422.4 | $ | (171.8) | (41) | % | ||||||||||||||||||||||||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Equifax | $ | 1.12 | $ | 1.63 | $ | (0.51) | (31) | % | $ | 2.03 | $ | 3.42 | $ | (1.39) | (41) | % | ||||||||||||||||||||||||||||||||||
Weighted-average shares used in computing diluted earnings per share | 123.8 | 123.3 | 123.7 | 123.4 |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
Workforce Solutions | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Verification Services | $ | 474.0 | $ | 504.5 | $ | (30.5) | (6) | % | $ | 929.8 | $ | 1,017.8 | $ | (88.0) | (9) | % | ||||||||||||||||||||||||||||||||||
Employer Services | 108.8 | 104.7 | 4.1 | 4 | % | 249.3 | 240.3 | 9.0 | 4 | % | ||||||||||||||||||||||||||||||||||||||||
Total operating revenue | $ | 582.8 | $ | 609.2 | $ | (26.4) | (4) | % | $ | 1,179.1 | $ | 1,258.1 | $ | (79.0) | (6) | % | ||||||||||||||||||||||||||||||||||
% of consolidated revenue | 44 | % | 46 | % | 45 | % | 47 | % | ||||||||||||||||||||||||||||||||||||||||||
Total operating income | $ | 244.6 | $ | 281.2 | $ | (36.6) | (13) | % | $ | 493.4 | $ | 589.7 | $ | (96.3) | (16) | % | ||||||||||||||||||||||||||||||||||
Operating margin | 42.0 | % | 46.2 | % | (4.2) | pts | 41.8 | % | 46.9 | % | (5.1) | pts |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Information Solutions | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Online Information Solutions | $ | 358.6 | $ | 329.2 | $ | 29.4 | 9 | % | $ | 699.6 | $ | 673.0 | $ | 26.6 | 4 | % | ||||||||||||||||||||||||||||||||||
Mortgage Solutions | 30.3 | 36.8 | (6.5) | (18) | % | 63.5 | 80.3 | (16.8) | (21) | % | ||||||||||||||||||||||||||||||||||||||||
Financial Marketing Services | 56.1 | 55.4 | 0.7 | 1 | % | 103.6 | 101.1 | 2.5 | 2 | % | ||||||||||||||||||||||||||||||||||||||||
Total operating revenue | $ | 445.0 | $ | 421.4 | $ | 23.6 | 6 | % | $ | 866.7 | $ | 854.4 | $ | 12.3 | 1 | % | ||||||||||||||||||||||||||||||||||
% of consolidated revenue | 34 | % | 32 | % | 33 | % | 32 | % | ||||||||||||||||||||||||||||||||||||||||||
Total operating income | $ | 102.8 | $ | 112.0 | $ | (9.2) | (8) | % | $ | 181.4 | $ | 233.5 | $ | (52.1) | (22) | % | ||||||||||||||||||||||||||||||||||
Operating margin | 23.1 | % | 26.6 | % | (3.5) | pts | 20.9 | % | 27.3 | % | (6.4) | pts |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
International | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 87.7 | $ | 90.1 | $ | (2.4) | (3) | % | $ | 177.6 | $ | 176.6 | $ | 1.0 | 1 | % | ||||||||||||||||||||||||||||||||||
Europe | 78.7 | 79.8 | (1.1) | (1) | % | 154.4 | 165.6 | (11.2) | (7) | % | ||||||||||||||||||||||||||||||||||||||||
Canada | 66.5 | 64.0 | 2.5 | 4 | % | 129.6 | 125.7 | 3.9 | 3 | % | ||||||||||||||||||||||||||||||||||||||||
Latin America | 56.9 | 52.2 | 4.7 | 9 | % | 112.2 | 99.6 | 12.6 | 13 | % | ||||||||||||||||||||||||||||||||||||||||
Total operating revenue | $ | 289.8 | $ | 286.1 | $ | 3.7 | 1 | % | $ | 573.8 | $ | 567.5 | $ | 6.3 | 1 | % | ||||||||||||||||||||||||||||||||||
% of consolidated revenue | 22 | % | 22 | % | 22 | % | 21 | % | ||||||||||||||||||||||||||||||||||||||||||
Total operating income | $ | 34.4 | $ | 32.4 | $ | 2.0 | 6 | % | $ | 67.0 | $ | 69.4 | $ | (2.4) | (3) | % | ||||||||||||||||||||||||||||||||||
Operating margin | 11.9 | % | 11.3 | % | 0.6 | pts | 11.7 | % | 12.2 | % | (0.5) | pts |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
General Corporate Expense | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
General corporate expense | $ | 144.9 | $ | 121.0 | $ | 23.9 | 20 | % | $ | 299.6 | $ | 255.5 | $ | 44.1 | 17 | % |
Six Months Ended June 30, | Change | |||||||||||||||||||
Net cash provided by (used in): | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Operating activities | $ | 413.0 | $ | 76.8 | $ | 336.2 | ||||||||||||||
Investing activities | $ | (318.7) | $ | (328.7) | $ | 10.0 | ||||||||||||||
Financing activities | $ | (217.2) | $ | 265.0 | $ | (482.2) |
Six Months Ended June 30, | Change | |||||||||||||||||||
Net cash used in: | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Capital expenditures* | $ | (321.3) | $ | (315.4) | $ | (5.9) |
Six Months Ended June 30, | Change | |||||||||||||||||||
Net cash (used in) provided by: | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Acquisitions, net of cash acquired | $ | (4.3) | $ | (111.4) | $ | 107.1 | ||||||||||||||
Cash received from divestitures | $ | 6.9 | $ | 98.1 | $ | (91.2) | ||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||||||
Net cash (used in) provided by: | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Net short-term borrowings | $ | (411.2) | $ | 386.7 | $ | (797.9) | ||||||||||||||
Payments on long-term debt | $ | (575.0) | $ | — | $ | (575.0) | ||||||||||||||
Borrowings on long-term debt | $ | 872.9 | $ | — | $ | 872.9 |
Six Months Ended June 30, | Change | |||||||||||||||||||
Net cash (used in) provided by: | 2023 | 2022 | 2023 vs. 2022 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Dividends paid to Equifax shareholders | $ | (95.6) | $ | (95.7) | $ | 0.1 | ||||||||||||||
Dividends paid to noncontrolling interests | $ | (2.1) | $ | (2.4) | $ | 0.3 | ||||||||||||||
Proceeds from exercise of stock options and employee stock purchase plan | $ | 16.5 | $ | 8.7 | $ | 7.8 | ||||||||||||||
Payment of taxes related to settlement of equity awards | $ | (16.9) | $ | (32.3) | $ | 15.4 | ||||||||||||||
Total Number of Shares | Average Price Paid | Total Number of Shares Purchased as Part of Publicly-Announced | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or | |||||||||||||||||||||||
Period | Purchased (1) | Per Share (2) | Plans or Programs | Programs (3) | ||||||||||||||||||||||
April 1 - April 30, 2023 | 3,100 | $ | — | — | $ | 520,168,924 | ||||||||||||||||||||
May 1 - May 31, 2023 | 1,640 | $ | — | — | $ | 520,168,924 | ||||||||||||||||||||
June 1 - June 30, 2023 | 347 | $ | — | — | $ | 520,168,924 | ||||||||||||||||||||
Total | 5,087 | — | — | $ | 520,168,924 |
Name and Title | Date of Adoption of Rule 10b5-1 Trading Plan | Scheduled Expiration Date of Rule 10b5-1 Trading Plan(1) | Aggregate Number of Securities to Be Purchased or Sold | |||||||||||||||||
11/20/23 | Sale of up to |
Exhibit No. | Description | ||||||||||
4.1 | |||||||||||
10.1 | |||||||||||
31.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
101.INS | XBRL Instance Document | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||||||||
Equifax Inc. | |||||||||||
(Registrant) | |||||||||||
Date: | July 25, 2023 | By: | /s/ Mark W. Begor | ||||||||
Mark W. Begor | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | July 25, 2023 | /s/ John W. Gamble, Jr. | |||||||||
John W. Gamble, Jr. | |||||||||||
Executive Vice President, Chief Financial Officer | |||||||||||
and Chief Operations Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
Date: | July 25, 2023 | /s/ James M. Griggs | |||||||||
James M. Griggs | |||||||||||
Chief Accounting Officer and Corporate Controller | |||||||||||
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Equifax Inc.; | |||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: | |||||||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 25, 2023 | /s/ Mark W. Begor | ||||||
Mark W. Begor | ||||||||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Equifax Inc.; | |||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: | |||||||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 25, 2023 | /s/ John W. Gamble, Jr. | ||||||
John W. Gamble, Jr. | ||||||||
Executive Vice President, Chief Financial Officer and Chief Operations Officer |
Date: | July 25, 2023 | /s/ Mark W. Begor | ||||||
Mark W. Begor | ||||||||
Chief Executive Officer |
Date: | July 25, 2023 | /s/ John W. Gamble, Jr. | ||||||
John W. Gamble, Jr. | ||||||||
Executive Vice President, Chief Financial Officer and Chief Operations Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
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Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 17.0 | $ 19.1 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000.0 | 10,000,000.0 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, authorized (in shares) | 300,000,000.0 | 300,000,000.0 |
Common stock, issued (in shares) | 189,300,000 | 189,300,000 |
Common stock, outstanding (in shares) | 122,700,000 | 122,500,000 |
Treasury stock (in shares) | 66,000,000.0 | 66,200,000 |
Stock held by employee benefits trusts (in shares) | 600,000 | 600,000 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends, per share (in dollars per share) | $ 0.39 | $ 0.39 | $ 0.78 | $ 0.78 |
STATEMENT OF ACCUMULATED OTHER COMPREHENISVE LOSS - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
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Statement of Other Comprehensive Income [Abstract] | ||
Foreign currency translation | $ (441.5) | $ (469.3) |
Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $1.1 and $1.2 at June 30, 2023 and December 31, 2022, respectively | (3.4) | (3.4) |
#REF! | (1.0) | (1.0) |
Accumulated other comprehensive loss | $ (445.9) | $ (473.7) |
STATEMENT OF ACCUMULATED OTHER COMPREHENISVE LOSS (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
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Statement of Other Comprehensive Income [Abstract] | ||
Unrecognized actual losses and prior service cost, related to pension and other postretirement benefit plans, accumulated tax | $ 1.1 | $ 1.2 |
Cash flow hedging transaction, accumulated tax | $ 0.6 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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, organize and manage various types of financial, demographic, employment, criminal justice data 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 June 30, 2023, we operated in the following countries: Argentina, Australia, Canada, Chile, Costa Rica, Dominican Republic, 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 have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia and Singapore and have an investment in a consumer and commercial credit information company in Brazil. We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, criminal justice data, 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, 2022 (“2022 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 reporting period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding. The net income 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:
For the three and six months ended June 30, 2023 and 2022, stock options that were anti-dilutive were not material. Financial Instruments. Our financial instruments consist primarily of cash and cash equivalents, accounts 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 publicly traded instruments, and for non-publicly traded instruments, through valuation techniques depending on the specific characteristics of the debt instrument, taking into account credit risk. As of June 30, 2023 and December 31, 2022, the fair value of our long-term debt, including the current portion, was $5.2 billion and $4.8 billion compared to its carrying value of $5.6 billion and $5.3 billion, respectively. Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing an 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). Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. We completed one acquisition during the six months ended June 30, 2023 and multiple acquisitions during the year ended December 31, 2022. The values of net assets acquired 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 definite-lived intangible assets acquired in these acquisitions were 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 in the present value calculations. Trade Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at cost and are due in less than a year. 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 macroeconomic 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. Below is a rollforward of our allowance for doubtful accounts for the three and six months ended June 30, 2023 and 2022, respectively.
Other Current Assets. Other current assets on our Consolidated Balance Sheets primarily include amounts receivable related to vendor rebates and from tax authorities. 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 June 30, 2023, these assets were $25.7 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 our investments in unconsolidated affiliates, the Company’s operating lease right-of-use assets, employee benefit trust assets, assets related to life insurance policies covering certain officers of the Company and long-term deferred tax assets. Equity Investment. We record our equity investment in Brazil within Other Assets at fair value, using observable Level 1 inputs. The carrying value of the investment has been adjusted to $87.7 million as of June 30, 2023 based on quoted market prices, resulting in an unrealized gain of $4.3 million and $7.2 million for the three and six months ended June 30, 2023. The carrying value of the investment was $54.1 million as of June 30, 2022, resulting in an unrealized loss of $34.2 million and $6.4 million for the three and six months ended June 30, 2022. All unrealized gains or losses on these investments were recorded in Other income, net within the Consolidated Statements of Income. During the quarter ended June 30, 2023, we sold our interest in an equity investment. The overall sale proceeds exceeded the total carrying value of the investments, and we have recorded a gain of $6.2 million in Other income, net within the Consolidated Statements of Income. During the quarter ended June 30, 2022, we sold our interest in two equity investments. The overall sale proceeds exceeded the total carrying value of the investments, and we recorded a gain of $27.5 million in Other income, net within the Consolidated Statements of Income. Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the current portion of our operating lease liabilities and various accrued liabilities such as interest expense, income taxes, accrued employee benefits, and insurance expense. Other current liabilities also include the offset to 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 June 30, 2023, these funds were $25.7 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 October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The update provides clarifying guidance to reduce diversity in practice stating that contract assets, contract liabilities and deferred revenue acquired in business combinations should be measured in accordance with Accounting Standards Topic 606, rather than the fair value principles of Accounting Standards Topic 805. ASU 2021-08 is effective for all public business entities for annual periods beginning after December 15, 2022. This guidance must be applied on a prospective basis. As of January 1, 2023, we have adopted this standard as it relates to our current year business combinations. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. Recent Accounting Pronouncements. 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. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The update extends the sunset date from ASU No. 2020-04 from December 31, 2022, to December 31, 2024. After this date, entities will no longer be permitted to apply the relief in Topic 848. 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.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | 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:
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 June 30, 2023, inclusive of foreign exchange impact:
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ACQUISITIONS AND INVESTMENTS |
6 Months Ended |
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Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND INVESTMENTS | ACQUISITIONS AND INVESTMENTS2023 Acquisitions and Investments. In the first quarter of 2023, the Company acquired a company in Canada, within the International operating segment. 2022 Acquisitions and Investments. In the first quarter of 2022, the Company acquired 100% of Efficient Hire, a provider of cloud recruiting, onboarding and human resources management solutions, within the Workforce Solutions operating segment, and Data Crédito, a consumer credit reporting agency in the Dominican Republic, within the International operating segment. |
GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 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 test as of September 30. Changes in the amount of goodwill for the six months ended June 30, 2023, are as follows:
Indefinite-Lived Intangible Assets. Indefinite-lived intangible assets consist of indefinite-lived reacquired rights representing the value of rights which we had granted to various affiliate credit reporting agencies that were reacquired in the U.S. and Canada. At the time we acquired these agreements, they were considered perpetual in nature under the accounting guidance in place at that time and, therefore, the useful lives are considered indefinite. Indefinite-lived intangible assets are not amortized. We are required to test indefinite-lived intangible assets for impairment annually and whenever events or circumstances indicate that there may be an impairment of the asset value. We perform our annual indefinite-lived intangible asset impairment test as of September 30, at which point the estimated fair value of our indefinite-lived intangibles exceeded the carrying value. Our indefinite-lived intangible asset carrying amounts did not change materially during the six months ended June 30, 2023. Purchased Intangible Assets. Purchased intangible assets represent the estimated acquisition date fair value of acquired intangible assets used in our business. Purchased data files represent the estimated fair value of consumer and commercial data files acquired through our acquisitions of various companies, including a fraud and identity solutions provider and independent credit reporting agencies in the U.S., Australia, Dominican Republic and Canada. We expense the cost of modifying and updating credit files in the period such costs are incurred. We amortize all of our purchased intangible assets on a straight-line basis. For additional information about the useful lives related to our purchased intangible assets, see Note 1 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K. Purchased intangible assets at June 30, 2023 and December 31, 2022 consisted of the following:
Amortization expense related to purchased intangible assets was $60.3 million and $57.9 million during the three months ended June 30, 2023 and 2022, respectively. Amortization expense related to purchased intangible assets was $121.0 million and $115.2 million during the six months ended June 30, 2023 and 2022, respectively. Estimated future amortization expense related to definite-lived purchased intangible assets at June 30, 2023 is as follows:
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT Debt outstanding at June 30, 2023 and December 31, 2022 was as follows:
5.1% Senior Notes. In May 2023, we issued $700.0 million aggregate principal amount of 5.1% -year Senior Notes due 2028 (the "2028 Notes") in an underwritten public offering. Interest on the 2028 Notes accrues at a rate of 5.1% per year and is payable semi-annually in arrears on June 1 and December 1 of each year. The net proceeds of the sale of the 2028 Notes were ultimately used to repay our then-outstanding $400.0 million 3.95% Senior Notes due June 2023 at maturity. The remaining proceeds were used to position us to fund the merger of Boa Vista Serviços S.A., a Brazilian consumer credit bureau and for general corporate purposes, including the repayment of borrowings under our commercial paper program. We must comply with various non-financial covenants, including certain limitations on mortgages, liens and sale-leaseback transactions, as well as mergers and sales of substantially all of our assets. The 2028 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness. 5.1% Senior Notes. In September 2022, we issued $750.0 million aggregate principal amount of 5.1% -year Senior Notes due 2027 (the "2027 Notes") in an underwritten public offering. Interest on the 2027 Notes accrues at a rate of 5.1% per year and is payable semi-annually in arrears on June 15 and December 15 of each year. The net proceeds of the sale of the 2027 Notes were ultimately used to repay, in October 2022, our then-outstanding $500.0 million 3.30% Senior Notes due December 2022. The remaining proceeds were used for general corporate purposes, including the repayment of borrowings under our commercial paper program. We must comply with various non-financial covenants, including certain limitations on mortgages, liens and sale-leaseback transactions, as well as mergers and sales of substantially all of our assets. The 2027 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness. Senior Credit Facilities. In August 2021, we refinanced our existing unsecured revolving credit facility of $1.1 billion set to expire September 2023, and entered into a new $1.5 billion five-year unsecured revolving credit facility (the “Revolver”) and a new $700.0 million delayed draw term loan (“Term Loan”), collectively known as the “Senior Credit Facilities,” both of which mature in August 2026. In March 2023, we amended our Senior Credit Facilities agreement to adjust our debt covenant requirements and incorporate the Secured Overnight Financing Rate (SOFR) into our agreement, among other changes. Borrowings under the Senior Credit Facilities may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions and for other general corporate purposes. The Revolver includes an option to request a maximum of three one-year extensions of the maturity date any time after the first anniversary of the closing date of the Revolver. Availability of the Revolver is reduced by the outstanding principal balance of our commercial paper notes and by any letters of credit issued under the Revolver. As of June 30, 2023, there were $156.0 million of outstanding commercial paper notes, $0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver and $700.0 million outstanding under the Term Loan. Availability under the Revolver was $1,343.6 million at June 30, 2023. Commercial Paper Program. In the third quarter of 2021, we increased the size of our commercial paper (“CP”) program from $1.1 billion to $1.5 billion, consistent with the increase in our Revolver. The $1.5 billion CP program has been established through the private placement of commercial paper notes from time-to-time, in which borrowings may bear interest at either a variable or a fixed rate, plus the applicable margin. Maturities of CP can range from overnight to 397 days. Because the CP is backstopped by our Revolver, the amount of CP which may be issued under the program is reduced by the outstanding face amount of any letters of credit issued and by the outstanding borrowings under our Revolver. At June 30, 2023, there were $156.0 million of outstanding CP notes. We have disclosed the net short-term borrowing activity for the quarter ended June 30, 2023 in the Consolidated Statements of Cash Flows. There are no CP borrowings or payments with a maturity date greater than 90 days and less than 365 days for the three months ended June 30, 2023. For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K.
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Canadian Class Actions. In 2017, we experienced a cybersecurity incident following a criminal attack on our systems that involved the theft of personal information of consumers. Five putative Canadian class actions, four of which are on behalf of a national class of approximately 19,000 Canadian consumers, are pending against us in Ontario, British Columbia and Alberta. Each of the proposed Canadian class actions asserts a number of common law and statutory claims seeking monetary damages and other related relief in connection with the 2017 cybersecurity incident. In addition to seeking class certification on behalf of Canadian consumers whose personal information was allegedly impacted by the 2017 cybersecurity incident, in some cases, plaintiffs also seek class certification on behalf of a larger group of Canadian consumers who had contracts for subscription products with Equifax around the time of the incident or earlier and were not impacted by the incident. On December 13, 2019, the court in Ontario granted certification of a nationwide class that includes all impacted Canadians as well as Canadians who had subscription products with Equifax between March 7, 2017 and July 30, 2017 who were not impacted by the incident. We appealed one of the claims on which a class was certified and on June 9, 2021, our appeal was granted by the Ontario Divisional Court. The plaintiff filed a notice of further appeal with the Ontario Court of Appeal, and on November 25, 2022, the Ontario Court of Appeal dismissed the plaintiff’s appeal and upheld the Divisional Court’s ruling in our favor. On January 24, 2023, the plaintiff appealed this decision to the Supreme Court of Canada, and on July 13, 2023, the Supreme Court of Canada dismissed the appeal. All remaining purported class actions are at preliminary stages or stayed. FCA Investigation. The U.K.’s Financial Conduct Authority (“FCA”) opened an enforcement investigation against our U.K. subsidiary, Equifax Limited, in October 2017 in connection with the 2017 cybersecurity incident. The investigation by the FCA has involved a number of information requirements and interviews. We have responded to the information requirements and continue to cooperate with the investigation. We have been advised by the FCA that it intends to send us a notice with the FCA's findings and proposed penalty, which we anticipate will result in the initiation of settlement discussions. At this time, we are unable to predict the outcome of this FCA investigation, including whether the investigation will result in any settlement, action or proceeding against us. Data Processing, Outsourcing Services and Other Agreements We have separate agreements with Google, Amazon Web Services, UST Global, Kyndryl and others to outsource portions of our network and security infrastructure, 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 2023 and 2028. 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 divestitures; the introduction of significant new technologies; foreign currency; or the general rate of inflation. In certain circumstances (e.g., a change in control or for our convenience), we may terminate these data processing and outsourcing agreements, and, in doing so, certain of these agreements require us to pay significant termination fees. Guarantees and General Indemnifications We may issue standby letters of credit and performance and surety bonds in the normal course of business. The aggregate notional amounts of all performance and surety bonds and standby letters of credit was not material at June 30, 2023 and generally have a remaining maturity of one year or less. We may issue other guarantees in the ordinary course of business. The maximum potential future payments we could be required to make under the guarantees in the ordinary course of business was not material at June 30, 2023. We have agreed to guarantee the liabilities and performance obligations (some of which have limitations) of a certain debt collections and recovery management subsidiary under its commercial agreements. We have agreed to standard indemnification clauses in many of our lease agreements for office space, covering such things as tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. Certain of our credit agreements include provisions which require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to certain changes in law or regulations. In conjunction with certain transactions, such as sales or purchases of operating assets or services in the ordinary course of business, or the disposition of certain assets or businesses, we sometimes provide routine indemnifications, the terms of which range in duration and sometimes are not limited. Additionally, the Company has entered into indemnification agreements with its directors and executive officers to indemnify such individuals to the fullest extent permitted by applicable law against liabilities that arise by reason of their status as directors or officers. The Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations. We cannot reasonably estimate our potential future payments under the guarantees and indemnities and related provisions described above because we cannot predict when and under what circumstances these provisions may be triggered. Contingencies In addition to the matters set forth above, we are involved in legal and regulatory matters, government investigations, claims and litigation arising in the ordinary course of business. We periodically assess our exposure related to these matters based on the information which is available. We have recorded accruals in our Consolidated Financial Statements for those matters in which it is probable that we have incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. For additional information about these and other commitments and contingencies, see Note 6 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K.
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INCOME TAXES |
6 Months Ended |
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Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We are subject to U.S. federal, state and international income taxes. We are generally no longer subject to federal, state, or international income tax examinations by tax authorities for years before 2019 with a few exceptions. Due to the potential for resolution of state and foreign examinations, and the expiration of various statutes of limitations, it is reasonably possible that our gross unrecognized tax benefit balance may change within the next twelve months by a range of $0 to $8.5 million. Effective Tax Rate Our effective income tax rate was 27.4% for the three months ended June 30, 2023, compared to 23.9% for the three months ended June 30, 2022. Our effective income tax rate was 26.6% for the six months ended June 30, 2023, compared to 25.4% for the six months ended June 30, 2022. Our effective tax rate was higher for the second quarter of 2023 as compared to 2022 due to a greater foreign income tax rate differential and less favorable discrete items. Our effective rate was higher for the six months ended June 30, 2023 as compared to 2022 due to a greater foreign income tax rate differential.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in accumulated other comprehensive loss by component, after tax, for the six months ended June 30, 2023, are as follows:
Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of June 30, 2023.
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RESTRUCTURING CHARGES |
6 Months Ended |
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Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES In the second quarter of 2023, we recorded $17.5 million ($12.4 million, net of tax) of restructuring charges, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income. In the fourth quarter of 2022, we recorded $24.0 million ($18.0 million, net of tax) of restructuring charges, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income. These charges were recorded to general corporate expense and resulted from our continuing efforts to realign our internal resources to support the Company’s strategic objectives and primarily relate to a reduction in headcount. As of June 30, 2023, $0.9 million and $19.7 million of the second quarter 2023 and fourth quarter 2022 restructuring charges have been paid, respectively, with the remaining future payments expected to be completed later in 2023.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION Reportable Segments. We manage our business and report our financial results through the following three reportable segments, which are the same as our operating segments: –Workforce Solutions –U.S. Information Solutions (“USIS”) –International The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K. We evaluate the performance of these reportable segments based on their operating revenue, operating income and operating margins, excluding any unusual or infrequent items, if any. The measurement criteria for segment profit or loss and segment assets are substantially the same for each reportable segment. Inter-segment sales and transfers are not material for all periods presented. All transactions between segments are accounted for at fair market value or cost depending on the nature of the transaction and no timing differences occur between segments. A summary of segment products and services is as follows: Workforce Solutions. This segment provides services enabling customers to verify income, employment, educational history, criminal justice data, healthcare professional licensure and sanctions of people in the U.S. (Verification Services), as well as providing our employer customers with services that assist them in complying with and automating certain payroll-related and human resource management processes throughout the entire cycle of the employment relationship, including unemployment cost management, employee screening, employee onboarding, tax credits and incentives, I-9 management and compliance, immigration case management, tax form management services and Affordable Care Act management services. U.S. Information Solutions. This segment includes consumer and commercial information services (such as credit information and credit scoring, credit modeling services and portfolio analytics, locate services, fraud detection and prevention services, identity verification services and other consulting services); mortgage services; financial marketing services; identity management; and credit monitoring products sold to resellers or directly to consumers. International. This segment includes information services products, which includes consumer and commercial services (such as credit and financial information, credit scoring and credit modeling services), credit and other marketing products and services. In Asia Pacific, Europe, Latin America and Canada, we also provide information, technology and services to support debt collections and recovery management. In Europe and Canada, we also provide credit monitoring products to resellers or directly to consumers. Operating revenue and operating income by operating segment during the three and six months ended June 30, 2023 and 2022 are as follows:
Total assets by operating segment at June 30, 2023 and December 31, 2022 are as follows:
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income attributable to Equifax | $ 138.3 | $ 200.6 | $ 250.6 | $ 422.4 |
Insider Trading Arrangements |
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Trading Arrangements, by Individual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Adopted | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Terminated | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Terminated | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Officer Trading Arrangement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Terms of Trading Arrangement | The following table describes any contracts, instructions or written plans for the sale or purchase of Equifax securities and intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act that were adopted by our directors and executive officers during the second quarter of 2023:
(1) A trading plan may also expire on such earlier date that all transactions under the trading plan are completed.
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Rule 10b5-1 Arrangement Adopted | true | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Officer Trading Arrangement [Member] | Bryson R. Koehler [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Bryson R. Koehler | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Executive Vice President, Chief Technology, Product and D&A Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | 5/15/23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 11,000 | 11,000 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations. We collect, organize and manage various types of financial, demographic, employment, criminal justice data 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 June 30, 2023, we operated in the following countries: Argentina, Australia, Canada, Chile, Costa Rica, Dominican Republic, 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 have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia and Singapore and have an investment in a consumer and commercial credit information company in Brazil. We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, criminal justice data, 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.
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Basis of Presentation | 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, 2022 (“2022 Form 10-K”). |
Earnings Per Share | 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 reporting period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding. The net income amounts used in both our basic and diluted EPS calculations are the same. |
Financial Instruments | Financial Instruments. Our financial instruments consist primarily of cash and cash equivalents, accounts 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 publicly traded instruments, and for non-publicly traded instruments, through valuation techniques depending on the specific characteristics of the debt instrument, taking into account credit risk. |
Fair Value Measurements | Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing an 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). Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. We completed one acquisition during the six months ended June 30, 2023 and multiple acquisitions during the year ended December 31, 2022. The values of net assets acquired 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 definite-lived intangible assets acquired in these acquisitions were 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 in the present value calculations.
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Trade Accounts Receivable and Allowance for Doubtful Accounts | Trade Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at cost and are due in less than a year. 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 macroeconomic 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. |
Other Current Assets | Other Current Assets. Other current assets on our Consolidated Balance Sheets primarily include amounts receivable related to vendor rebates and from tax authorities. 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. |
Other Assets | Other Assets. Other assets on our Consolidated Balance Sheets primarily represent our investments in unconsolidated affiliates, the Company’s operating lease right-of-use assets, employee benefit trust assets, assets related to life insurance policies covering certain officers of the Company and long-term deferred tax assets. |
Equity Investment | Equity Investment. We record our equity investment in Brazil within Other Assets at fair value, using observable Level 1 inputs. |
Other Current Liabilities | Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the current portion of our operating lease liabilities and various accrued liabilities such as interest expense, income taxes, accrued employee benefits, and insurance expense. Other current liabilities also include the offset to 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. |
Recent Accounting Pronouncements | Change in Accounting Principle. In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The update provides clarifying guidance to reduce diversity in practice stating that contract assets, contract liabilities and deferred revenue acquired in business combinations should be measured in accordance with Accounting Standards Topic 606, rather than the fair value principles of Accounting Standards Topic 805. ASU 2021-08 is effective for all public business entities for annual periods beginning after December 15, 2022. This guidance must be applied on a prospective basis. As of January 1, 2023, we have adopted this standard as it relates to our current year business combinations. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows.Recent Accounting Pronouncements. 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. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The update extends the sunset date from ASU No. 2020-04 from December 31, 2022, to December 31, 2024. After this date, entities will no longer be permitted to apply the relief in Topic 848. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Weighted-Average Outstanding Shares used in Calculations of Basic and Diluted EPS | A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows:
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Rollforward of Allowance for Doubtful Accounts | Below is a rollforward of our allowance for doubtful accounts for the three and six months ended June 30, 2023 and 2022, respectively.
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REVENUE (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | 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:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Performance Obligation | We expect to recognize as revenue the following amounts related to our remaining performance obligations as of June 30, 2023, inclusive of foreign exchange impact:
|
GOODWILL AND INTANGIBLE ASSETS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Amount of Goodwill | Changes in the amount of goodwill for the six months ended June 30, 2023, are as follows:
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Purchased Intangible Assets | Purchased intangible assets at June 30, 2023 and December 31, 2022 consisted of the following:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Amortization Expense | Estimated future amortization expense related to definite-lived purchased intangible assets at June 30, 2023 is as follows:
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DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Outstanding | Debt outstanding at June 30, 2023 and December 31, 2022 was as follows:
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive loss by component, after tax, for the six months ended June 30, 2023, are as follows:
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Revenue, Operating Income and Total Assets by Operating Segment | Operating revenue and operating income by operating segment during the three and six months ended June 30, 2023 and 2022 are as follows:
Total assets by operating segment at June 30, 2023 and December 31, 2022 are as follows:
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Weighted-Average Outstanding Shares used in Calculations of Basic and Diluted EPS (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Accounting Policies [Abstract] | ||||
Weighted-average shares outstanding (basic) (in shares) | 122.7 | 122.4 | 122.6 | 122.3 |
Effect of dilutive securities: | ||||
Stock options and restricted stock units (in shares) | 1.1 | 0.9 | 1.1 | 1.1 |
Weighted-average shares outstanding (diluted) (in shares) | 123.8 | 123.3 | 123.7 | 123.4 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Rollforward of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for doubtful accounts, beginning of period | $ 20.1 | $ 14.9 | $ 19.1 | $ 13.9 |
Current period bad debt expense | 1.7 | 1.8 | 5.2 | 3.0 |
Write-offs, net of recoveries | (4.8) | (1.1) | (7.3) | (1.3) |
Allowance for doubtful accounts, end of period | $ 17.0 | $ 15.6 | $ 17.0 | $ 15.6 |
ACQUISITIONS AND INVESTMENTS (Details) |
Mar. 31, 2022 |
---|---|
Efficient Hire | |
Business Acquisition [Line Items] | |
Business acquisition, percentage of voting interests acquired | 100.00% |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in Amount of Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Balance, Beginning of period | $ 6,383.9 |
Acquisitions | 4.4 |
Adjustments to initial purchase price allocation | 2.4 |
Foreign currency translation | 10.5 |
Balance, End of period | 6,401.2 |
Workforce Solutions | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 2,520.8 |
Acquisitions | 0.0 |
Adjustments to initial purchase price allocation | (0.1) |
Foreign currency translation | 0.1 |
Balance, End of period | 2,520.8 |
U.S. Information Solutions | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 2,004.8 |
Acquisitions | 0.0 |
Adjustments to initial purchase price allocation | 2.2 |
Foreign currency translation | 0.0 |
Balance, End of period | 2,007.0 |
International | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 1,858.3 |
Acquisitions | 4.4 |
Adjustments to initial purchase price allocation | 0.3 |
Foreign currency translation | 10.4 |
Balance, End of period | $ 1,873.4 |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to purchased intangible assets | $ 60.3 | $ 57.9 | $ 121.0 | $ 115.2 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 119.6 | |
2024 | 227.9 | |
2025 | 223.1 | |
2026 | 209.0 | |
2027 | 196.2 | |
Thereafter | 723.3 | |
Net | $ 1,699.1 | $ 1,818.5 |
COMMITMENTS AND CONTINGENCIES (Details) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023
claim
plaintiff
|
Jun. 30, 2023
claim
|
Jun. 09, 2021
claim
|
|
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Debt instrument, term (or less) | 1 year | ||
Latin America | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Pending claims | 5 | 5 | |
Pending national class actions | 4 | 4 | |
Number of plaintiffs | plaintiff | 19,000 | ||
Number of claims appealed | 1 |
INCOME TAXES (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Effective income tax rate (as a percent) | 27.40% | 23.90% | 26.60% | 25.40% |
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | $ 0 | $ 0 | ||
Increase in unrecognized tax benefits is reasonably possible | 0 | 0 | ||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | 8,500,000 | 8,500,000 | ||
Increase in unrecognized tax benefits is reasonably possible | $ 8,500,000 | $ 8,500,000 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Changes in Accumulated Other Comprehensive Income (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 3,973.3 |
Ending Balance | 4,208.3 |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (473.7) |
Other comprehensive income | 27.8 |
Ending Balance | (445.9) |
Foreign currency translation adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (469.3) |
Other comprehensive income | 27.8 |
Ending Balance | (441.5) |
Pension and other postretirement benefit plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (3.4) |
Other comprehensive income | 0.0 |
Ending Balance | (3.4) |
Cash flow hedging transactions | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (1.0) |
Other comprehensive income | 0.0 |
Ending Balance | $ (1.0) |
RESTRUCTURING CHARGES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2023 |
|
Second Quarter 2023 | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for restructuring | $ 0.9 | ||
Fourth Quarter 2022 | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for restructuring | $ 19.7 | ||
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 17.5 | $ 24.0 | |
Restructuring charges, net of tax | $ 12.4 | $ 18.0 |
SEGMENT INFORMATION - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Number of operating segments | 3 |
SEGMENT INFORMATION - Total Assets by Operating Segments (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets | $ 11,537.9 | $ 11,547.9 |
Operating Segments | Workforce Solutions | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,197.0 | 4,156.5 |
Operating Segments | U.S. Information Solutions | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,310.5 | 3,291.4 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,117.8 | 3,106.8 |
General Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 912.6 | $ 993.2 |
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