

Georgia			58-0401110
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			Identification No.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ~~Yes~~ ☐ No ☒

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

On ~~October 31, 2017,~~July 7, 2023, there were ~~120,079,376~~122,720,094 shares of the registrant’s common stock outstanding.

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED ~~September~~JUNE 30, ~~2017~~2023

FORWARD-LOOKING STATEMENTS

This report contains information that may constitute “forward-looking statements.” Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “may” and similar expressions identify forward-looking statements, which generally are not historical in nature. All statements that address future operating performance and events or developments that we expect or anticipate will occur in the future, including statements relating to future operating results, improvements in our information technology and data security infrastructure, including as a part of our cloud data and technology transformation, our strategy, the expected financial and operational benefits, synergies and growth from our acquisitions, changes in U.S. and worldwide economic conditions, such as rising interest rates and inflation, that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services, our culture, our ability to innovate, the market acceptance of new products and services and similar statements ~~related to the cybersecurity incident reported in the third quarter of 2017,~~about our business plans are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from ~~our~~the Company’s historical experience and our present expectations or ~~projections.~~projections, including without limitation our expectations regarding the Company’s outlook, long-term organic and inorganic growth, and customer acceptance of our business solutions referenced above under “Item 1. Business” and below in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation — Business Overview.” These risks and uncertainties include, but are not limited to, those described in Part II, “Item 1A. Risk Factors,” and elsewhere in ~~this report and in~~ our Annual Report on Form 10-K for the year ended December 31, ~~2016, and those described from time to time in our future~~2022, as well as subsequent reports filed with the Securities and Exchange Commission. As a result of such risks and uncertainties, we urge you not to place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended June 30,
	2023		2022
(In millions, except per share amounts)
Operating revenue	$	1,317.6	$	1,316.7
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	588.0		542.1
Selling, general and administrative expenses	343.1		330.2
Depreciation and amortization	149.6		139.8
Total operating expenses	1,080.7		1,012.1
Operating income	236.9		304.6
Interest expense	(60.7)		(41.6)
Other income, net	15.9		1.8
Consolidated income before income taxes	192.1		264.8
Provision for income taxes	(52.7)		(63.4)


Consolidated net income	139.4		201.4
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(1.1)		(0.8)

Net income attributable to Equifax	$	138.3	$	200.6




Basic earnings per common share:


Net income attributable to Equifax	$	1.13	$	1.64
Weighted-average shares used in computing basic earnings per share	122.7		122.4
Diluted earnings per common share:


Net income attributable to Equifax	$	1.12	$	1.63
Weighted-average shares used in computing diluted earnings per share	123.8		123.3
Dividends per common share	$	0.39	$	0.39

Three Months Ended
September 30,
2017 2016
(In millions, except per share amounts)
Operating revenue $ 834.8
$ 804.1
Operating expenses:

Cost of services (exclusive of depreciation and amortization below) 297.3
288.0
Selling, general and administrative expenses 312.2
233.4
Depreciation and amortization 72.4
70.6
Total operating expenses 681.9
592.0
Operating income 152.9
212.1
Interest expense (21.4 ) (24.3 )
Other income, net 4.5
2.4
Consolidated income before income taxes 136.0
190.2
Provision for income taxes (35.5 ) (55.3 )
Consolidated net income 100.5
134.9
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests (4.2 ) (2.1 )
Net income attributable to Equifax $ 96.3
$ 132.8
Basic earnings per common share:

Net income attributable to Equifax $ 0.80
$ 1.11
Weighted-average shares used in computing basic earnings per share 120.1
119.5
Diluted earnings per common share:

Net income attributable to Equifax $ 0.79
$ 1.09
Weighted-average shares used in computing diluted earnings per share 121.4
121.3
Dividends per common share $ 0.39
$ 0.33

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Six Months Ended June 30,
	2023		2022
(In millions, except per share amounts)
Operating revenue	$	2,619.6	$	2,680.0
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	1,168.4		1,095.5
Selling, general and administrative expenses	709.2		670.5
Depreciation and amortization	299.8		276.9
Total operating expenses	2,177.4		2,042.9
Operating income	442.2		637.1
Interest expense	(118.3)		(81.4)
Other income, net	20.4		12.9
Consolidated income before income taxes	344.3		568.6
Provision for income taxes	(91.4)		(144.4)


Consolidated net income	252.9		424.2
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(2.3)		(1.8)

Net income attributable to Equifax	$	250.6	$	422.4




Basic earnings per common share:


Net income attributable to Equifax	$	2.04	$	3.45
Weighted-average shares used in computing basic earnings per share	122.6		122.3
Diluted earnings per common share:


Net income attributable to Equifax	$	2.03	$	3.42
Weighted-average shares used in computing diluted earnings per share	123.7		123.4
Dividends per common share	$	0.78	$	0.78

Nine Months Ended
September 30,
2017 2016
(In millions, except per share amounts)
Operating revenue $ 2,523.8
$ 2,343.8
Operating expenses:
Cost of services (exclusive of depreciation and amortization below) 891.9
827.1
Selling, general and administrative expenses 783.9
708.2
Depreciation and amortization 214.2
194.5
Total operating expenses 1,890.0
1,729.8
Operating income 633.8
614.0
Interest expense (70.1 ) (68.0 )
Other income (expense), net 10.6
(0.4 )
Consolidated income before income taxes 574.3
545.6
Provision for income taxes (150.8 ) (175.3 )
Consolidated net income 423.5
370.3
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests (8.5 ) (4.5 )
Net income attributable to Equifax $ 415.0
$ 365.8
Basic earnings per common share:
Net income attributable to Equifax $ 3.45
$ 3.07
Weighted-average shares used in computing basic earnings per share 120.1
119.2
Diluted earnings per common share:
Net income attributable to Equifax $ 3.41
$ 3.02
Weighted-average shares used in computing diluted earnings per share 121.6
121.1
Dividends per common share $ 1.17
$ 0.99

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended June 30,
	2023				2022
	Equifax Shareholders		Noncontrolling Interests		Total		Equifax Shareholders		Noncontrolling Interests		Total
	(In millions)
Net income	$	138.3	$	1.1	$	139.4	$	200.6	$	0.8	$	201.4
Other comprehensive income (loss):
Foreign currency translation adjustment	15.2		(0.2)		15.0		(196.2)		0.1		(196.1)
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	—		—		—		(0.5)		—		(0.5)

Comprehensive income	$	153.5	$	0.9	$	154.4	$	3.9	$	0.9	$	4.8

Three Months Ended September 30,
2017 2016

Equifax
Shareholders

Noncontrolling
Interests
Total
Equifax
Shareholders

Noncontrolling
Interests
Total
(In millions)
Net income $ 96.3
$ 4.2
$ 100.5
$ 132.8
$ 2.1
$ 134.9
Other comprehensive income (loss):

Foreign currency translation adjustment 91.1
1.2
92.3
82.2
—
82.2
Change in unrecognized prior service cost and actuarial losses related to our pension and other postretirement benefit plans, net 2.6
—
2.6
2.3
—
2.3
Change in cumulative loss from cash flow hedging transactions, net —
—
—
—
—
—
Comprehensive income $ 190.0
$ 5.4
$ 195.4
$ 217.3
$ 2.1
$ 219.4


	Six Months Ended June 30,
	2023				2022
	Equifax Shareholders		Noncontrolling Interests		Total		Equifax Shareholders		Noncontrolling Interests		Total
	(In millions)
Net income	$	250.6	$	2.3	$	252.9	$	422.4	$	1.8	$	424.2
Other comprehensive income (loss):
Foreign currency translation adjustment	27.8		0.1		27.9		(118.2)		(0.2)		(118.4)
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	—		—		—		(0.8)		—		(0.8)

Comprehensive income	$	278.4	$	2.4	$	280.8	$	303.4	$	1.6	$	305.0

Nine Months Ended September 30,
2017 2016

Equifax
Shareholders

Noncontrolling
Interests
Total
Equifax
Shareholders

Noncontrolling
Interests
Total
(In millions)
Net income $ 415.0
$ 8.5
$ 423.5
$ 365.8
$ 4.5
$ 370.3
Other comprehensive income (loss):

Foreign currency translation adjustment 209.7
3.4
213.1
114.1
(1.3 ) 112.8
Change in unrecognized prior service cost and actuarial losses related to our pension and other postretirement benefit plans, net 7.6
—
7.6
6.8
—
6.8
Change in cumulative loss from cash flow hedging transactions, net (0.2 ) —
(0.2 ) 0.6
—
0.6
Comprehensive income $ 632.1
$ 11.9
$ 644.0
$ 487.3
$ 3.2
$ 490.5

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED BALANCE SHEETS

~~(Unaudited)~~

(Unaudited)


(In millions, except par values)	June 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	164.1	$	285.2
Trade accounts receivable, net of allowance for doubtful accounts of $17.0 and $19.1 at June 30, 2023 and December 31, 2022, respectively	935.9		857.7
Prepaid expenses	148.7		134.3
Other current assets	66.7		93.3
Total current assets	1,315.4		1,370.5
Property and equipment:
Capitalized internal-use software and system costs	2,350.9		2,139.1
Data processing equipment and furniture	284.2		281.4
Land, buildings and improvements	264.9		261.6
Total property and equipment	2,900.0		2,682.1
Less accumulated depreciation and amortization	(1,178.0)		(1,095.1)
Total property and equipment, net	1,722.0		1,587.0
Goodwill	6,401.2		6,383.9
Indefinite-lived intangible assets	94.9		94.8
Purchased intangible assets, net	1,699.1		1,818.5
Other assets, net	305.3		293.2
Total assets	$	11,537.9	$	11,547.9
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	$	169.1	$	967.2
Accounts payable	148.3		250.8
Accrued expenses	271.1		229.0
Accrued salaries and bonuses	128.8		138.7
Deferred revenue	109.7		132.9
Other current liabilities	265.2		296.6
Total current liabilities	1,092.2		2,015.2
Long-term debt	5,503.0		4,820.1
Deferred income tax liabilities, net	460.5		460.3
Long-term pension and other postretirement benefit liabilities	97.4		100.4
Other long-term liabilities	176.5		178.6
Total liabilities	7,329.6		7,574.6
Commitments and Contingencies (see Note 6)

Equifax shareholders' equity:
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none	—		—
Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at June 30, 2023 and December 31, 2022; Outstanding shares - 122.7 and 122.5 at June 30, 2023 and December 31, 2022, respectively	236.6		236.6
Paid-in capital	1,650.5		1,594.2
Retained earnings	5,410.5		5,256.0
Accumulated other comprehensive loss	(445.9)		(473.7)
Treasury stock, at cost, 66.0 shares and 66.2 shares at June 30, 2023 and December 31, 2022, respectively	(2,654.6)		(2,650.7)
Stock held by employee benefit trusts, at cost, 0.6 shares at June 30, 2023 and December 31, 2022	(5.9)		(5.9)

Total Equifax shareholders’ equity	4,191.2		3,956.5
Noncontrolling interests including redeemable noncontrolling interests	17.1		16.8
Total equity	4,208.3		3,973.3
Total liabilities and equity	$	11,537.9	$	11,547.9

September 30, 2017 December 31, 2016
(In millions, except par values)
ASSETS

Current assets:

Cash and cash equivalents $ 315.4
$ 129.3
Trade accounts receivable, net of allowance for doubtful accounts of $10.2 and $7.8 at September 30, 2017 and December 31, 2016, respectively 458.3
433.3
Prepaid expenses 76.9
60.2
Other current assets 48.7
50.1
Total current assets 899.3
672.9
Property and equipment:

Capitalized internal-use software and system costs 388.0
307.0
Data processing equipment and furniture 294.3
273.2
Land, buildings and improvements 214.5
203.8
Total property and equipment 896.8
784.0
Less accumulated depreciation and amortization (368.1 ) (317.1 )
Total property and equipment, net 528.7
466.9
Goodwill 4,178.4
3,974.3
Indefinite-lived intangible assets 95.0
94.8
Purchased intangible assets, net 1,276.8
1,323.8
Other assets, net 137.5
131.3
Total assets $ 7,115.7
$ 6,664.0
LIABILITIES AND EQUITY

Current liabilities:

Short-term debt and current maturities of long-term debt $ 667.8
$ 585.4
Accounts payable 82.5
81.0
Accrued expenses 135.7
149.3
Accrued salaries and bonuses 92.9
158.8
Deferred revenue 117.4
110.7
Other current liabilities 240.0
174.4
Total current liabilities 1,336.3
1,259.6
Long-term debt 2,038.7
2,086.8
Deferred income tax liabilities, net 303.5
325.4
Long-term pension and other postretirement benefit liabilities 175.6
184.4
Other long-term liabilities 95.9
86.5
Total liabilities 3,950.0
3,942.7
Commitments and Contingencies (see Note 5)

Equifax shareholders' equity:

Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none —
—
Common stock, $1.25 par value: Authorized shares - 300.0;
Issued shares - 189.3 at September 30, 2017 and December 31, 2016;
Outstanding shares - 120.0 and 119.9 at September 30, 2017 and December 31, 2016, respectively 236.6
236.6
Paid-in capital 1,335.0
1,313.3
Retained earnings 4,424.7
4,153.2
Accumulated other comprehensive loss (311.8 ) (528.9 )
Treasury stock, at cost, 68.7 shares and 68.8 shares at September 30, 2017 and December 31, 2016, respectively (2,578.2 ) (2,505.6 )
Stock held by employee benefit trusts, at cost, 0.6 shares at September 30, 2017 and December 31, 2016 (5.9 ) (5.9 )
Total Equifax shareholders' equity 3,100.4
2,662.7
Noncontrolling interests including redeemable noncontrolling interests 65.3
58.6
Total equity 3,165.7
2,721.3
Total liabilities and equity $ 7,115.7
$ 6,664.0

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended September 30,							Six Months Ended June 30,
	2017			2016				2023		2022
	(In millions)							(In millions)
Operating activities:							Operating activities:
Consolidated net income	$	423.5		$	370.3		Consolidated net income	$	252.9	$	424.2
Adjustments to reconcile consolidated net income to net cash provided by operating activities:							Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation and amortization	216.7			195.4			Depreciation and amortization	304.3		281.2
Stock-based compensation expense	34.6			30.2			Stock-based compensation expense	52.2		36.7
Excess tax benefits from stock-based compensation plans	—			(29.6		)

Deferred income taxes	(40.6		)	(10.4		)	Deferred income taxes	(5.6)		26.7
Gain on fair market value adjustment and gain on sale of equity investments							Gain on fair market value adjustment and gain on sale of equity investments	(13.6)		(2.4)

Changes in assets and liabilities, excluding effects of acquisitions:							Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net	(14.9		)	(54.5		)	Accounts receivable, net	(75.3)		(170.5)
Other assets, current and long-term	(24.4		)	(0.9		)	Other assets, current and long-term	(10.0)		(43.4)
Current and long term liabilities, excluding debt	13.8			43.7			Current and long term liabilities, excluding debt	(91.9)		(475.7)
Cash provided by operating activities	608.7			544.2			Cash provided by operating activities	413.0		76.8
Investing activities:							Investing activities:
Capital expenditures	(157.5		)	(131.0		)	Capital expenditures	(321.3)		(315.4)
Acquisitions, net of cash acquired	(77.3		)	(1,792.4		)	Acquisitions, net of cash acquired	(4.3)		(111.4)
Economic hedges	—			(10.8		)
Cash received from sale of asset	8.6			—

Cash received from divestitures							Cash received from divestitures	6.9		98.1

Cash used in investing activities	(226.2		)	(1,934.2		)	Cash used in investing activities	(318.7)		(328.7)
Financing activities:							Financing activities:
Net short-term borrowings	354.9			194.2			Net short-term borrowings	(411.2)		386.7
Payments on long-term debt	(322.5		)	(300.0		)	Payments on long-term debt	(575.0)		—
Borrowings on long-term debt	—			1,574.7			Borrowings on long-term debt	872.9		—
Treasury stock purchases	(77.1		)	—

Dividends paid to Equifax shareholders	(140.7		)	(118.1		)	Dividends paid to Equifax shareholders	(95.6)		(95.7)
Dividends paid to noncontrolling interests	(8.2		)	(5.8		)	Dividends paid to noncontrolling interests	(2.1)		(2.4)
Proceeds from exercise of stock options	18.8			26.8
Proceeds from exercise of stock options and employee stock purchase plan							Proceeds from exercise of stock options and employee stock purchase plan	16.5		8.7
Payment of taxes related to settlement of equity awards	(28.0		)	(19.7		)	Payment of taxes related to settlement of equity awards	(16.9)		(32.3)
Excess tax benefits from stock-based compensation plans	—			29.6
Purchase of redeemable noncontrolling interests	—			(3.6		)
Other	—			(5.4		)

Debt issuance costs							Debt issuance costs	(5.8)		—

Cash (used in) provided by financing activities	(202.8		)	1,372.7			Cash (used in) provided by financing activities	(217.2)		265.0
Effect of foreign currency exchange rates on cash and cash equivalents	6.4			35.5			Effect of foreign currency exchange rates on cash and cash equivalents	1.8		(14.2)
Increase in cash and cash equivalents	186.1			18.2
Decrease in cash and cash equivalents							Decrease in cash and cash equivalents	(121.1)		(1.1)
Cash and cash equivalents, beginning of period	129.3			93.3			Cash and cash equivalents, beginning of period	285.2		224.7
Cash and cash equivalents, end of period	$	315.4		$	111.5		Cash and cash equivalents, end of period	$	164.1	$	223.6

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED ~~STATEMENT~~STATEMENTS OF ~~CHANGES IN~~SHAREHOLDERS’ EQUITY ~~AND OTHER COMPREHENSIVE INCOME~~

~~For the Nine Months Ended September 30, 2017~~

(Unaudited)

For the Three Months Ended 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, 2023	122.6	$	236.6	$	1,631.1	$	5,320.3	$	(461.1)	$	(2,657.0)	$	(5.9)	$	18.2	$	4,082.2

Net income	—	—		—		138.3		—		—		—		1.1		139.4
Other comprehensive income (loss)	—	—		—		—		15.2		—		—		(0.2)		15.0
Shares issued under stock and benefit plans, net of minimum tax withholdings	0.1	—		6.6		—		—		2.4		—		—		9.0

Cash dividends ($0.39 per share)	—	—		—		(48.1)		—		—		—		—		(48.1)
Dividends paid to employee benefits trusts	—	—		0.2		—		—		—		—		—		0.2
Stock-based compensation expense	—	—		12.6		—		—		—		—		—		12.6




Dividends paid to noncontrolling interests	—	—		—		—		—		—		—		(2.0)		(2.0)



Balance, June 30, 2023	122.7	$	236.6	$	1,650.5	$	5,410.5	$	(445.9)	$	(2,654.6)	$	(5.9)	$	17.1	$	4,208.3

For the Three Months Ended 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, March 31, 2022	122.3	$	236.6	$	1,548.8	$	4,925.5	$	(217.7)	$	(2,653.2)	$	(5.9)	$	17.0	$	3,851.1
Net income	—	—		—		200.6		—		—		—		0.8		201.4
Other comprehensive income (loss)	—	—		—		—		(196.7)		—		—		0.1		(196.6)
Shares issued under stock and benefit plans, net of minimum tax withholdings	0.1	—		(0.2)		—		—		0.6		—		—		0.4

Cash dividends ($0.39 per share)	—	—		—		(48.0)		—		—		—		—		(48.0)
Dividends paid to employee benefits trusts	—	—		0.2		—		—		—		—		—		0.2
Stock-based compensation expense	—	—		14.4		—		—		—		—		—		14.4


Dividends paid to noncontrolling interests	—	—		—		—		—		—		—		(1.9)		(1.9)



Balance, June 30, 2022	122.4	$	236.6	$	1,563.2	$	5,078.1	$	(414.4)	$	(2,652.6)	$	(5.9)	$	16.0	$	3,821.0

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, 2016 119.9
$ 236.6
$ 1,313.3
$ 4,153.2
$ (528.9 ) $ (2,505.6 ) $ (5.9 ) $ 58.6
$ 2,721.3
Net income —
—
—
415.0
—
—
—
8.5
423.5
Other comprehensive income —
—
—
—
217.1
—
—
3.4
220.5
Shares issued under stock and benefit plans,
net of minimum tax withholdings 0.6
—
(13.4 ) —
—
4.5
—
—
(8.9 )
Treasury stock purchased under share repurchase program* (0.5 ) —
—
—
—
(77.1 ) —
—
(77.1 )
Cash dividends ($1.17 per share) —
—
—
(141.3 ) —
—
—
—
(141.3 )
Dividends paid to employee benefits trusts —
—
0.7
—
—
—
—
—
0.7
Stock-based compensation expense —
—
34.6
—
—
—
—
—
34.6
Redeemable noncontrolling interest adjustment —
—
—
(2.3 ) —
—
—
2.3
—
Dividends paid to noncontrolling interests —
—
—
—
—
—
—
(8.2 ) (8.2 )
Other —
—
(0.2 ) 0.1
—
—
—
0.7
0.6
Balance, September 30, 2017 120.0
$ 236.6
$ 1,335.0
$ 4,424.7
$ (311.8 ) $ (2,578.2 ) $ (5.9 ) $ 65.3
$ 3,165.7

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

* At September

(Unaudited)

For the Six Months Ended June 30, ~~2017, $590.1 million was available for future purchases of common stock under our share repurchase authorization.~~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, 2022	122.5	$	236.6	$	1,594.2	$	5,256.0	$	(473.7)	$	(2,650.7)	$	(5.9)	$	16.8	$	3,973.3

Net income	—	—		—		250.6		—		—		—		2.3		252.9
Other comprehensive income	—	—		—		—		27.8		—		—		0.1		27.9
Shares issued under stock and benefit plans, net of minimum tax withholdings	0.2	—		3.6		—		—		(3.9)		—		—		(0.3)

Cash dividends ($0.78 per share)	—	—		—		(96.1)		—		—		—		—		(96.1)
Dividends paid to employee benefits trusts	—	—		0.5		—		—		—		—		—		0.5
Stock-based compensation expense	—	—		52.2		—		—		—		—		—		52.2




Dividends paid to noncontrolling interests	—	—		—		—		—		—		—		(2.1)		(2.1)



Balance, June 30, 2023	122.7	$	236.6	$	1,650.5	$	5,410.5	$	(445.9)	$	(2,654.6)	$	(5.9)	$	17.1	$	4,208.3

For the Six Months Ended 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, 2021	122.1	$	236.6	$	1,536.7	$	4,751.6	$	(295.4)	$	(2,639.2)	$	(5.9)	$	16.8	$	3,601.2
Net income	—	—		—		422.4		—		—		—		1.8		424.2
Other comprehensive loss	—	—		—		—		(119.0)		—		—		(0.2)		(119.2)
Shares issued under stock and benefit plans, net of minimum tax withholdings	0.3	—		(10.4)		—		—		(13.4)		—		—		(23.8)

Cash dividends ($0.78 per share)	—	—		—		(95.9)		—		—		—		—		(95.9)
Dividends paid to employee benefits trusts	—	—		0.2		—		—		—		—		—		0.2
Stock-based compensation expense	—	—		36.7		—		—		—		—		—		36.7


Dividends paid to noncontrolling interests	—	—		—		—		—		—		—		(2.4)		(2.4)



Balance, June 30, 2022	122.4	$	236.6	$	1,563.2	$	5,078.1	$	(414.4)	$	(2,652.6)	$	(5.9)	$	16.0	$	3,821.0

Accumulated Other Comprehensive Loss consists of the following components:


	June 30, 2023		December 31, 2022
	(In millions)
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)
Cash flow hedging transactions, net of accumulated tax of $0.6 at June 30, 2023 and December 31, 2022	(1.0)		(1.0)

Accumulated other comprehensive loss	$	(445.9)	$	(473.7)

September 30, 2017 December 31, 2016
(In millions)
Foreign currency translation $ (52.3 ) $ (262.0 )
Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $146.4 and $150.6 at September 30, 2017 and December 31, 2016, respectively (258.3 ) (265.9 )
Cash flow hedging transactions, net of accumulated tax of $0.8 and $0.9 at September 30, 2017 and December 31, 2016, respectively (1.2 ) (1.0 )
Accumulated other comprehensive loss $ (311.8 ) $ (528.9 )

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~September~~June 30, ~~2017~~2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As used herein, the terms Equifax, the Company, we, our and us refer to Equifax Inc., a Georgia corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Equifax Inc.

Nature of Operations. We collect, 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 ~~human resources, employment~~payroll-related, tax and ~~payroll-related~~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. ~~We also provide information, technology and services to support debt collections and recovery management.~~ As of ~~September~~June 30, ~~2017,~~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 ~~offer Equifax branded credit services in India and Russia through joint ventures, we~~ 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, ~~public record information,~~and income and tax information primarily from large to mid-sized companies in the U.S.~~, and survey-based marketing information.~~ 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. ~~To understand our complete financial position and results, as defined by GAAP, this~~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, ~~2016~~2022 (“~~2016~~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:

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions)
Weighted-average shares outstanding (basic) 120.1
119.5
120.1
119.2
Effect of dilutive securities:

Stock options and restricted stock units 1.3
1.8
1.5
1.9
Weighted-average shares outstanding (diluted) 121.4
121.3
121.6
121.1


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In millions)
Weighted-average shares outstanding (basic)	122.7	122.4	122.6	122.3
Effect of dilutive securities:
Stock options and restricted stock units	1.1	0.9	1.1	1.1
Weighted-average shares outstanding (diluted)	123.8	123.3	123.7	123.4

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, stock options that were anti-dilutive were not material.

Financial Instruments. Our financial instruments consist primarily of cash and cash equivalents, accounts ~~and notes~~ receivable, accounts payable and ~~short-~~short and long-term debt. The carrying amounts of these items, other than long-term debt,

approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for ~~similar~~ publicly traded instruments, and for non-publicly traded instruments, through valuation techniques ~~involving observable inputs based~~depending on the specific characteristics of the debt ~~instrument.~~instrument, taking into account credit risk. As of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, the fair value of our long-term debt, including the current portion, was ~~$2.1~~$5.2 billion and ~~$2.4~~$4.8 billion compared to its carrying value of ~~$2.0~~$5.6 billion and ~~$2.4~~$5.3 billion, respectively.

~~Derivatives and Hedging Activities~~. Although derivative financial instruments are not utilized for speculative purposes or as the Company’s primary risk management tool, derivatives have been used as a risk management tool to hedge the Company’s exposure to changes in interest rates and foreign exchange rates. We have used interest rate swaps and interest rate lock agreements to manage interest rate risk associated with our fixed and floating-rate borrowings. Forward contracts on various foreign currencies have been used to manage the foreign currency exchange rate risk of certain firm commitments denominated in foreign currencies. We recognize all derivatives on the balance sheet at fair value. Derivative valuations reflect the value of the instrument including the value associated with any material counterparty risk.

~~Economic Hedges.~~ In December 2015, in anticipation of the acquisition of Veda Group Limited ("Veda"), we purchased foreign currency options to buy Australian dollars with a weighted average strike price of $0.7225 and a notional value of 1.0 billion Australian dollars. These foreign currency options ("options") were designed to act as economic hedges for the pending Veda acquisition and were marked to market. The options had an expiry date of February 18, 2016. In January 2016, we purchased additional options for a notional amount of 1.0 billion Australian dollars, with a weighted average strike price of $0.7091, with expiry dates of February 11, 2016 and February 16, 2016. We settled all of the options on the respective settlement dates in February 2016. We recognized a net loss of $15.4 million related to the options in the first quarter of 2016, which was recorded in other income (expense), net.

Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing ~~the~~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).

~~The following table presents items measured at fair value on a recurring basis:~~

Fair Value Measurements at Reporting Date Using:
Description
Fair Value of Assets
(Liabilities) at
September 30, 2017

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)
(In millions)
Deferred Compensation Plan Assets⁽¹⁾
$ 33.3
$ 33.3
$ —
$ —
Deferred Compensation Plan Liability⁽¹⁾
(33.3 ) —
(33.3 ) —
Total $ —
$ 33.3
$ (33.3 ) $ —

(1) We maintain deferred compensation plans that allow for certain management employees to defer the receipt of compensation (such as salary, incentive compensation and commissions) until a later date based on the terms of the plan. The liability representing benefits accrued for plan participants is valued at the quoted market prices of the participants’ investment elections. The asset consists of mutual funds reflective of the participants’ investment selections and is valued at daily quoted market prices.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis.~~As disclosed in Note 2, we~~We completed ~~various acquisitions~~one acquisition during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and multiple acquisitions during the year ended December 31, ~~2016.~~2022. The values of net assets acquired ~~and the resulting goodwill~~ were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of ~~goodwill and~~ definite-lived intangible assets acquired in ~~this acquisition~~these acquisitions were ~~internally~~ 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 ~~fair value~~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 ~~equity method investment assets acquired were internally estimated~~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 ~~market approach. Under~~accompanying Consolidated Statements of Income. Below is a rollforward of our allowance for doubtful accounts for the ~~market approach, we estimated fair value based on market multiples of comparable companies.~~three and six months ended June 30, 2023 and 2022, respectively.


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(In millions)
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

Other Current Assets.Other current assets on our Consolidated Balance Sheets primarily ~~represent~~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 ~~September~~June 30, ~~2017~~,2023, these assets were ~~approximately $24.3~~$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 current assets also include certain current tax accounts.~~

~~Variable Interest Entities.~~ We hold interests in certain entities, including credit data, information solutions and debt collections and recovery management ventures that are considered variable interest entities, or VIEs. These variable interests relate to ownership interests that require financial support for these entities. Our investments related to these VIEs totaled $13.8 million at September 30, 2017, representing our maximum exposure to loss, with the exception of the guarantees referenced in Note 5. We are not the primary beneficiary and are not required to consolidate any of these VIEs, with the exception of a debt collections and recovery management venture, for which we meet the consolidation criteria under Accounting Standards Codification ("ASC") 810, ~~Consolidation~~. In regards to that consolidated VIE, we have a 75% equity ownership interest and control of the activities that most significantly impact the VIE's economic performance. The assets and liabilities of the VIE for which we are the primary beneficiary were not significant to the Company’s Consolidated Financial Statements, and no gain or loss was recognized because of its consolidation.

In evaluating whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity's economic performance as compared to other economic interest holders. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity's future performance and the exercise of professional judgment in deciding which decision-making rights are most important.

In determining whether we have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE, we evaluate all of our economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity's design, including: the entity's capital structure, contractual rights to earnings (losses), subordination of our interests relative to those of other investors, contingent payments, as well as other contractual arrangements that have the potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of our economic interests is a matter that requires the exercise of professional judgment.

Certain of our VIEs have redeemable noncontrolling interests that are subject to classification outside of permanent equity on the Company's Consolidated Balance Sheet. The redeemable noncontrolling interests are reflected using the redemption method as of the balance sheet date. Redeemable noncontrolling interest adjustments to the redemption values are reflected in retained earnings. The adjustment of redemption value at the period end that reflects a redemption value in excess of fair value is included as an adjustment to net income attributable to Equifax stockholders for the purposes of the calculation of earnings per share. None of the current period adjustments reflect a redemption in excess of fair value. Additionally, due to the immaterial balance of the redeemable noncontrolling interest, we have elected to maintain the noncontrolling interest in permanent equity, rather than temporary equity, within our Consolidated Balance Sheet.

Other Assets. Other assets on our Consolidated Balance Sheets primarily ~~represents~~represent our ~~investment~~investments in unconsolidated affiliates, ~~our cost method investment in Brazil,~~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 ~~employee benefit trust~~long-term deferred tax assets.

~~Cost Method~~Equity Investment.We ~~monitor the status of~~record our ~~cost method~~equity investment in ~~order to determine if conditions exist or events and circumstances indicate that it may be impaired in that its carrying amount may exceed the~~Brazil within Other Assets at fair value, of the investment. Significant factors that are considered that could be indicative of an impairment include: changes in business strategy, market conditions, underperformance relative to historical or expected future operating results; and negative industry or economic trends. If potential indicators of impairment exist, we estimate the fair value of the investment using ~~a combination of a discounted cash flow analysis and an evaluation of EBITDA multiples for comparable companies. If the~~observable Level 1 inputs. The carrying value of the investment ~~exceeds the estimated fair value, an impairment loss is recorded~~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 ~~amount by which~~three and six months ended June 30, 2023.

The carrying value of the ~~investment’s~~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 ~~amount exceeds its fair value. As~~value of ~~September~~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, ~~2017,~~2022, we sold our ~~investment~~interest in ~~Brazil,~~two equity investments. The overall sale proceeds exceeded the total carrying value of the investments, and we recorded ~~at 44~~a gain of $27.5 million ~~Reais ($14.0 million), approximated~~in Other income, net within the ~~fair value.~~Consolidated Statements of Income.

Other Current Liabilities.Other current liabilities on our Consolidated Balance Sheets consist of ~~corresponding amounts~~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 ~~September~~June 30, ~~2017,~~2023, these funds were ~~approximately $24.3~~$25.7 million. These amounts are restricted as to their current use and will be released according to the specific customer agreements. ~~Other current liabilities also include various accrued liabilities such as costs related to the cybersecurity~~

~~incident as described more fully in Note 5, interest expense, accrued employee benefits, accrued taxes, accrued payroll, and accrued legal expenses.~~

Change in Accounting Principle.In ~~March 2016,~~October 2021, the Financial Accounting Standards Board ~~(“FASB”~~("FASB") issued ~~ASU 2016-09 "Compensation - Stock Compensation~~Accounting Standards Update ("ASU") No. 2021-08 “Business Combinations (Topic ~~718)." This standard requires the recognition of the income tax effects of awards~~805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The update provides clarifying guidance to reduce diversity in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance also allows for the employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting. The new guidance requires the related payments to taxing authorities topractice stating that contract assets, contract liabilities and deferred revenue acquired in business combinations should be ~~retrospectively presented as a cash outflow from financing activities. As a result, we reclassified $19.7 million of cash outflows from operating activities~~measured in ~~the first nine months of 2016 to a cash outflow from financing activities. In addition, the guidance allows for a policy election to account for forfeitures as they occur~~accordance with Accounting Standards Topic 606, rather than ~~on an estimated basis. The adoption~~the fair value principles of this guidance resulted in the recognition of $4.8 million, or $0.04 per diluted common share, and $24.5 million and $0.20 per diluted common share, of tax benefits in our Consolidated Statement of IncomeAccounting Standards Topic 805. ASU 2021-08 is effective for the three and nine months ended September 30, 2017, respectively. We also prospectively applied the provisions of the new guidance related to the presentation of windfall tax benefits as cash flows from operating activities which resulted in classifying $4.8 million and $24.5 million of cash flows from financing activities to operating activities for the third quarter and first nine months ended September 30, 2017. We have elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized each period.

~~Recent Accounting Pronouncements.~~ ~~Derivatives and Hedging~~. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities (Topic 815).” The amendments in ASU 2017-12 provide targeted improvements to the accounting for hedging activities to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The adoption of ASU 2017-12 will become effectiveall public business entities for annual periods beginning after December 15, ~~2018, although early adoption is permitted.~~2022. This guidance must be applied on a prospective basis. ~~We do not expect the~~As of January 1, 2023, we have adopted this standard as it relates to our current year business combinations. The adoption of this ~~ASU will~~guidance did not have a material impact on our financial position, results of operations or cash flows.

~~Stock Compensation.~~ Recent Accounting Pronouncements. In ~~May 2017,~~March 2020, the FASB issued ASU ~~2017-09, "Compensation - Stock Compensation~~No. 2020-04 “Reference Rate Reform (Topic 718) Scope of Modification Accounting." The amendments in ASU 2017-09 require entities to apply modification accounting in Topic 718 only when changes to the terms or conditions of a share-based payment award result in changes to fair value, vesting conditions or the classification848): Facilitation of the ~~award as equity or liability.~~Effects of Reference Rate Reform on Financial Reporting.” The ~~adoption~~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 ~~2017-09 will become~~2020-04 is effective for ~~annual periods beginning after~~all entities as of March 12, 2020 through December ~~15, 2017. Based on historical modifications we do not believe the adoption of this guidance will have a material impact on our financial position, results of operations or cash flows.~~

~~Pension Costs.~~ 31, 2022. In ~~March 2017,~~December 2022, the FASB issued ASU ~~2017-07 "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost~~No. 2022-06 "Reference Rate Reform (Topic 715)." This new guidance changes how employers that sponsor defined benefit pension plans and other postretirement plans present the net periodic benefit cost in the income statement. An employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendment also allows only the service cost component to be eligible for capitalization, when applicable. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2017, with early adoption permitted in the first quarter of 2017. The amendment will be applied retrospectively for the presentation requirements and prospectively for the capitalization848): Deferral of the ~~service cost component requirements.~~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 ~~this guidance~~the standard to have a material impact on our ~~financial position, results of operations or cash flows.~~

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

~~Definition of a business.~~ In January 2017, the FASB issued ASU 2017-01 "Clarifying the Definition of a Business (Topic 805)." This standard provides criteria to determine when an asset acquired or group of assets acquired is not a business. When substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This reduces the number of transactions that need to be further evaluated. The guidance is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017

~~with early adoption permitted. We are currently evaluating the impact of the adoption of this guidance on our financial position, results of operations and cash flows.~~

~~Leases.~~ In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” This standard requires lessees to record most leases on their balance sheets and expenses on their income statements in a manner similar to current lease accounting. The guidance also eliminates current real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. All entities will classify leases to determine how to recognize lease-related revenue and expense. The guidance becomes effective for fiscal years and interim reporting periods beginning after December 15, 2018. The Company is evaluating the potential effects of the adoption of this standard on its Consolidated Financial Statements.

2. REVENUE

Revenue Recognition. ~~In May 2014,~~Based on the ~~FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers." ASU 2014-9 is a comprehensive new revenue recognition model~~information that ~~requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange~~management reviews internally for ~~those goods or services. ASU 2014-9 also requires additional disclosure about the~~evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows ~~arising from customer~~affected by economic factors, we disaggregate revenue as follows:


	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	$	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 Workforce Solutions	582.8		609.2		(26.4)		(4)	%	1,179.1		1,258.1		(79.0)		(6)	%
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 U.S. Information Solutions	445.0		421.4		23.6		6	%	866.7		854.4		12.3		1	%
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 International	289.8		286.1		3.7		1	%	573.8		567.5		6.3		1	%
Total operating revenue	$	1,317.6	$	1,316.7	$	0.9	—	%	$	2,619.6	$	2,680.0	$	(60.4)	(2)	%

Remaining Performance Obligation – We have elected to disclose only the remaining performance obligations for those contracts including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-9 was originally effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 and early adoption was not permitted. On July 9, 2015, the FASB voted to defer the effective date bywith 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 ~~December 15, 2017 for interim~~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:


Performance Obligation	Amount
	(In millions)
Less than 1 year	$	26.4
1 to 3 years	31.0
3 to 5 years	15.2
Thereafter	23.5
Total remaining performance obligation	$	96.1

3. ACQUISITIONS AND INVESTMENTS

2023 Acquisitions and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-9.

~~Based on our current assessment, we anticipate adopting the standard using the modified retrospective method in~~Investments. In the first quarter of ~~fiscal 2018. The new standard will impact our contracts that have~~2023, the Company acquired a ~~known quantity over a defined term with price increases or decreases over~~company in Canada, within the contract life. Under the current standard, the revenue related to these contracts are limited by billings in a period. Under the new standard the total contract value will be recognized ratably over the defined term or by using a transactional standalone selling price resulting in the creation of a contract asset or contract liability as transactions are delivered. Based upon analysis performed to date, we have preliminarily determined that we do not expect the revenue recognition aspects of the new standard will materially affect our consolidated net earnings, financial position, or cash flow based on the application of the guidance to our contracts with customers. We will continue to review and evaluate our contracts under the new revenue recognition model to ascertain whether additional contract types or future contracts will be affected by the new standard. Additionally, the new guidance specifies that all incremental costs of obtaining a contract and the direct costs of fulfilling a contract with customers should be deferred and recognized over the contract period or expected customer life. Based on our current assessment, we do not anticipate a significant change in our cost capitalization practices resulting from the application of the guidance. Finally, we continue to review the additional disclosures required by the new standard.International operating segment.

~~2. ACQUISITIONS AND INVESTMENTS~~

~~2017~~2022 Acquisitions and Investments. ~~On August 10, 2017,~~In the first quarter of 2022, the Company ~~completed the acquisition of~~acquired 100% of Efficient Hire, a provider of cloud recruiting, onboarding and human resources management solutions, within the ~~outstanding stock of ID Watchdog, Inc., an identity theft protection~~Workforce Solutions operating segment, and ~~resolution company providing solutions to the employee benefits marketplace.~~

~~2016 Acquisitions and Investments.~~ On February 24, 2016, the Company completed the acquisition of 100% of the ordinary voting shares of Veda for cash consideration of approximately $1.7 billion (2.4 billion Australian dollars) and debt assumed of approximately $189.5 million (261.9 million Australian dollars). The acquisition providesData Crédito, a strong platform for Equifax to offer data and analytic services and further broaden the Company's geographic footprint. Veda stockholders received 2.825 Australian dollars in cash for each share of Veda common stock they owned. The Company financed the transaction with $1.7 billion of debt, consisting of commercial paper, an $800 million 364-day revolvingconsumer credit facility (the "364-day Revolver"), and an $800 million three-year delayed draw term loan facility (the "Term Loan"). Refer to Note 4 for further discussion on debt. Additionally, on August 23, 2016, the Company completed the acquisition of 100% of the assets and certain liabilities of unemployment tax and claims management specialists Barnett & Associates ("Barnett"), as well as the verifications business, Computersoft, LLC ("Computersoft").

~~Pro Forma Financial Information.~~ The following table presents unaudited consolidated pro forma information as if our acquisition of Veda had occurred at the beginning of the earliest period presented. The pro forma amounts may not be necessarily indicative of the operating revenues and results of operations had the acquisition actually taken place at the beginning of the earliest period presented. Furthermore, the pro forma information may not be indicative of future performance.

Nine months ended September 30,
2016
As Reported Pro Forma
(In millions, except per share data)
Operating revenues $ 2,343.8
$ 2,383.2
Net income attributable to Equifax 365.8
368.4
Net income per share (basic) 3.07
3.09
Net income per share (diluted) 3.02
3.04

~~The unaudited pro forma financial information presented~~reporting agency in the ~~table above has been adjusted to give effect to adjustments that are (1) directly related to~~Dominican Republic, within the business combination; (2) factually supportable; and (3) expected to have a continuing impact. These adjustments include, but are not limited to, the application of our accounting policies and depreciation and amortization related to fair value adjustments and intangible assets.International operating segment.

4. GOODWILL AND INTANGIBLE ASSETS

Goodwill. Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment ~~tests~~test as of September 30.

Our annual goodwill impairment testing was completed during the third quarter of 2017. The estimated fair value for all reporting units exceeded the carrying value of those units as of September 30, 2017. As a result, no goodwill impairment was recorded. Refer to our methodology of fair value estimates as discussed in the "Application of Critical Accounting Policies" section in this Form 10-Q.

Changes in the amount of goodwill for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2023, are as follows:


	Workforce Solutions		U.S. Information Solutions		International		Total

Balance, December 31, 2022	$	2,520.8	$	2,004.8	$	1,858.3	$	6,383.9
Acquisitions	—		—		4.4		4.4
Adjustments to initial purchase price allocation	(0.1)		2.2		0.3		2.4
Foreign currency translation	0.1		—		10.4		10.5

Balance, June 30, 2023	$	2,520.8	$	2,007.0	$	1,873.4	$	6,401.2

U.S.
Information
Solutions International Workforce
Solutions Global Consumer Solutions Total
(In millions)
Balance, December 31, 2016 $ 1,071.3
$ 1,814.6
$ 952.1
$ 136.3
$ 3,974.3
Acquisitions —
3.4
—
48.5
51.9
Adjustments to initial purchase price allocation —
(1.1 ) —
—
(1.1 )
Foreign currency translation —
146.5
—
6.8
153.3
Balance, September 30, 2017 $ 1,071.3
$ 1,963.4
$ 952.1
$ 191.6
$ 4,178.4

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. The~~30, at which point the estimated fair value of our indefinite-lived ~~intangible assets~~intangibles exceeded the carrying ~~value as of September 30, 2017. As a result, no impairment was recorded.~~value. Our indefinite-lived intangible asset carrying amounts did not change materially during the ~~nine~~six months ended ~~September~~June 30, ~~2017.~~ 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 ~~acquisition date~~ fair value of consumer ~~credit~~and commercial data files acquired ~~primarily~~ through ~~the purchase~~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 and the Veda acquisition.~~Canada. We expense the cost of modifying and updating credit files in the period such costs are incurred. Our reacquired rights represent the value of rights which we had granted to Computer Sciences Corporation that were reacquired in connection with the acquisition of certain assets of CSC Credit Services (“CSC Credit Services Acquisition”) in the fourth quarter of 2012. These reacquired rights are being amortized over the remaining term of the affiliation agreement on a straight-

~~line basis until August 1, 2018.~~ 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 ~~2016~~2022 Form 10-K.

Purchased intangible assets at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016~~2022 consisted of the following:


	September 30, 2017							December 31, 2016								June 30, 2023						December 31, 2022
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net			Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite-lived intangible assets:	(In millions)														Definite-lived intangible assets:	(In millions)
Purchased data files	$	1,029.2	$	(310.6	)	$	718.6	$	1,012.7	$	(276.0	)	$	736.7	Purchased data files	$	1,088.0	$	(562.9)	$	525.1	$	1,090.0	$	(527.8)	$	562.2
Customer relationships															Customer relationships	878.2		(442.9)		435.3		874.6		(407.4)		467.2

Proprietary database															Proprietary database	706.3		(143.3)		563.0		705.9		(115.0)		590.9
Acquired software and technology	139.6		(59.6		)	80.0		131.5		(36.1		)	95.4		Acquired software and technology	222.7		(57.4)		165.3		225.4		(42.6)		182.8
Customer relationships	756.9		(313.9		)	443.0		712.7		(273.0		)	439.7
Reacquired rights	73.3		(62.4		)	10.9		73.3		(52.5		)	20.8
Proprietary database	22.1		(8.1		)	14.0		21.5		(6.7		)	14.8
Trade names and other intangible assets															Trade names and other intangible assets	22.4		(19.0)		3.4		26.7		(19.6)		7.1
Non-compete agreements	14.1		(12.1		)	2.0		26.8		(22.2		)	4.6		Non-compete agreements	14.5		(7.5)		7.0		14.5		(6.2)		8.3
Trade names and other intangible assets	18.9		(10.6		)	8.3		54.1		(42.3		)	11.8
Total definite-lived intangible assets	$	2,054.1	$	(777.3	)	$	1,276.8	$	2,032.6	$	(708.8	)	$	1,323.8	Total definite-lived intangible assets	$	2,932.1	$	(1,233.0)	$	1,699.1	$	2,937.1	$	(1,118.6)	$	1,818.5

Amortization expense related to purchased intangible assets was ~~$43.0~~$60.3 million and ~~$47.5~~$57.9 million during the three months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively. Amortization expense related to purchased intangible assets was ~~$129.8~~$121.0 million and ~~$130.3~~$115.2 million during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at ~~September~~June 30, ~~2017~~2023 is as follows:


Years ending December 31,	Amount
	(In millions)
2023	$	119.6
2024	227.9
2025	223.1
2026	209.0
2027	196.2
Thereafter	723.3
	$	1,699.1

Years ending December 31, Amount
(In millions)
2017 $ 43.0
2018 148.5
2019 129.2
2020 122.7
2021 105.1
Thereafter 728.3
$ 1,276.8

Debt outstanding at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016~~2022 was as follows:


	June 30, 2023		December 31, 2022
	(In millions)
Commercial paper	$	156.0	$	566.8



Notes, 3.95%, due June 2023	—		400.0
Notes, 2.6%, due December 2024	750.0		750.0
Notes, 2.6%, due December 2025	400.0		400.0
Notes, 3.25%, due June 2026	275.0		275.0

Term loan, due August 2026	700.0		700.0
Notes, 5.10%, due December 2027	750.0		750.0
Notes, 5.10%, due June 2028	700.0		—
Debentures, 6.9%, due July 2028	125.0		125.0
Notes, 3.1%, due May 2030	600.0		600.0
Notes, 2.35%, due September 2031	1,000.0		1,000.0
Notes, 7.0%, due July 2037	250.0		250.0
Other	—		0.4
Total debt	5,706.0		5,817.2
Less short-term debt and current maturities	(169.1)		(967.2)
Less unamortized discounts and debt issuance costs	(33.9)		(29.9)
Total long-term debt, net	$	5,503.0	$	4,820.1

5.1% Senior Notes. In May 2023, we issued $700.0 million aggregate principal amount of 5.1% five-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% five-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,

September 30, 2017 December 31, 2016
(In millions)
Commercial paper $ 665.3
$ 310.3
Notes, 6.30%, due July 2017 —
272.5
Term Loan, due Nov 2018 400.0
450.0
Notes, 2.30%, due June 2021 500.0
500.0
Notes, 3.30%, due Dec 2022 500.0
500.0
Notes, 3.25%, due June 2026 275.0
275.0
Debentures, 6.90%, due July 2028 125.0
125.0
Notes, 7.00%, due July 2037 250.0
250.0
Other 2.5
2.6
Total debt 2,717.8
2,685.4
Less short-term debt and current maturities (667.8 ) (585.4 )
Less unamortized discounts and debt issuance costs (11.3 ) (13.2 )
Total long-term debt, net $ 2,038.7
$ 2,086.8
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. ~~We are party~~In August 2021, we refinanced our existing unsecured revolving credit facility of $1.1 billion set to expire September 2023, and entered into a ~~$900.0 million~~new $1.5 billion five-year unsecured revolving credit facility (the ~~"Revolver"~~“Revolver”) and ~~the previously described~~ a new $700.0 million delayed draw term loan (“Term ~~Loan (the Revolver and the Term Loan collectively, the "Senior Credit Facilities"~~Loan”), ~~with a group~~collectively known as the “Senior Credit Facilities,” both of ~~financial institutions. The Revolver also has an accordion feature that allows us~~which mature in August 2026. In March 2023, we amended our Senior Credit Facilities agreement to ~~request an increase in~~adjust our debt covenant requirements and incorporate the ~~total commitment to $1.2 billion.~~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, including working capital, capital expenditures, acquisitions and share repurchase programs. The Revolver and the Term Loan are scheduled to expire in November 2020 and November 2018, respectively.purposes. The Revolver includes an option to request a maximum of ~~two~~three one-year extensions of the maturity ~~date.~~date any time after the first anniversary of the closing date of the Revolver. Availability of the Revolver ~~for borrowings~~ is reduced by the outstanding principal balance of our commercial paper notes and by any letters of credit issued under the ~~facility.~~Revolver. As of ~~September~~June 30, ~~2017,~~2023, there were ~~$0.5~~$156.0 million of outstanding commercial paper notes, $0.4 million of letters of credit ~~outstanding. As of September 30, 2017, there were~~outstanding, no outstanding borrowings under the Revolver and ~~$234.2~~$700.0 million outstanding under the Term Loan. Availability under the Revolver was ~~available for borrowing. On July 3, 2017 we repaid our July 2017 Senior Notes using the proceeds of commercial paper issued prior to September~~$1,343.6 million at June 30, ~~2017. On October 12, 2017, we borrowed $100 million on our Revolver.~~2023.

Commercial Paper Program. ~~Our $900.0 million~~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 ~~floating rate (based on LIBOR or other benchmarks),~~variable or a fixed rate, plus the applicable margin. Maturities of ~~commercial paper~~CP can range from overnight to 397 days. Because the ~~commercial paper ("CP")~~CP is backstopped by our ~~Senior Credit Facilities,~~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 ~~under the facility~~ and ~~pursuant to our existing Board of Directors authorization,~~ by the outstanding borrowings under our Revolver. At ~~September~~June 30, ~~2017, $665.3~~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 ~~commercial paper notes was outstanding.~~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 ~~2016~~2022 Form 10-K.

5.6. COMMITMENTS AND CONTINGENCIES

~~Cybersecurity Incident.~~ Canadian Class Actions. In ~~the third quarter of fiscal~~ 2017, we ~~announced~~experienced a cybersecurity incident ~~potentially impacting approximately 145.5 million U.S. consumers. Criminals exploited~~following a ~~U.S. website application vulnerability to gain access to certain files. Based~~criminal attack on our ~~forensic investigation,~~systems that involved the unauthorized access occurred from mid-May through July 2017. The information accessed primarily includes names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. In addition, credit card numbers for approximately 209,000 U.S. and Canadian consumers, and certain dispute documents with personal identifying information for approximately 182,000 U.S. consumers, were accessed. The investigation also determined thattheft of personal information of consumers. Five putative Canadian class actions, four of which are on behalf of a national class of approximately ~~8,000~~19,000 Canadian consumers, ~~was impacted~~are pending against us in Ontario, British Columbia and

~~approximately 690,000 potentially affected U.K.~~ 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 ~~will be contacted regarding access to~~whose personal information ~~in the cybersecurity 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 ~~also reported~~appealed one of the ~~criminal access~~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 ~~law~~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 ~~law enforcement in connection~~the investigation. We have been advised by the FCA that it intends to send us a notice with the ~~criminal investigation into the actors responsible for the cybersecurity incident.~~

~~Expenses Incurred.~~ ~~In the third quarter of fiscal 2017, the Company recorded $27.3 million of pretax expenses related to the cybersecurity incident. These expenses are included in Selling, General~~FCA's findings and ~~Administrative expenses~~proposed penalty, which we anticipate will result in the ~~accompanying Consolidated Statements~~initiation of Income for the three and nine months ended September 30, 2017. Expenses include costs to investigate and remediate the cybersecurity incident and legal and other professional services related thereto, all of which were expensed as incurred.

~~Contingent Liability.~~ ~~Additionally, as a result of the cybersecurity incident,~~settlement discussions. At this time, we are ~~offering free credit file monitoring and identity theft protection~~unable to ~~all U.S. consumers. We have concluded that~~predict the ~~costs associated with providing~~outcome of this ~~service are a contingent liability that is probable and estimable. We have therefore recorded an estimate of~~FCA investigation, including whether the ~~expenses necessary to provide this service to those who have signed up~~investigation will result in any settlement, action or will sign up by the January 31, 2018 deadline. We have incurred $4.7 million through September 30, 2017 and have estimated a range of additional costs between $56 million and $110 million. In accordance with Accounting Standards Codification section 450-20-30-1, we have recorded a liability for the low end in the range as we do not believe that any amount within the range is a better estimate than any other amount. proceeding against us.

~~Litigation, Claims and Government Investigations.~~ As a result of the cybersecurity incident, we are subject to a significant number of proceedings and investigations as described in Part II, "Item 1. Legal Proceedings." While we believe it is reasonably possible that we will incur losses associated with these proceedings and investigations, it is not possible to estimate the amount of loss or range of possible loss, if any, that might result from adverse judgments, settlements, penalties or other resolution of such proceedings and investigations based on the early stage of these proceedings and investigations, that alleged damages have not been specified, the uncertainty as to the certification of a class or classes and the size of any certified class, as applicable, and the lack of resolution on significant factual and legal issues.

~~Future Costs.~~ We expect to incur significant legal and other professional services expenses associated with the cybersecurity incident in future periods. We will recognize these expenses as services are received. Costs related to the cybersecurity incident that will be incurred in future periods will also include increased expenses and capital investments for IT and security. We expect to incur increased expenses for insurance, finance, compliance activities, and to meet increased legal and regulatory requirements. We will also incur increased costs to provide free services to consumers including increased customer support costs.

~~Insurance Coverage.~~ We maintain insurance coverage to limit our exposure to losses such as those related to the cybersecurity incident. Our coverage has a $7.5 million deductible. As of September 30, 2017, the Company has not recorded a receivable for costs the Company has incurred to date as we have not yet concluded that the costs are reimbursable and probable of recovery under our insurance coverage.

Data Processing, Outsourcing Services and Other ~~Agreements.~~ Agreements

We have separate agreements with ~~IBM, Tata Consultancy~~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.~~ Indemnifications

We may issue standby letters of credit and performance and surety bonds in the normal course of business. The aggregate notional ~~amount~~amounts of all performance and surety bonds and standby letters of credit was not material at ~~September~~June 30, ~~2017,~~2023 and ~~all~~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 iswas not material at ~~September~~June 30, ~~2017.~~2023. We have agreed to guarantee the liabilities and performance

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. ~~We had no accruals related~~

In addition to ~~guarantees and indemnities on our Consolidated Balance Sheets at September 30, 2017 or December 31, 2016.~~

For additional information about these and other commitments and contingencies, see Note 6 of the Notes to Consolidated Financial Statements in our ~~2016~~2022 Form 10-K.

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 ~~2014~~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 ~~$3.6~~$8.5 million.

Our effective income tax rate was ~~26.1% and 29.1%~~27.4% for the three months ended ~~September~~June 30, ~~2017 and September~~2023, compared to 23.9% for the three months ended June 30, ~~2016, respectively.~~2022. Our effective income tax rate was ~~26.2% and 32.1%~~26.6% for the ~~nine~~six months ended ~~September~~June 30, ~~2017 and September~~2023, compared to 25.4% for the six months ended June 30, ~~2016, respectively. The decrease in our~~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 ~~is primarily attributable~~differential and less favorable discrete items. Our effective rate was higher for the six months ended June 30, 2023 as compared to ~~the adoption of the new stock-based compensation guidance prospectively adopted in the first quarter of 2017 that requires the recognition of the~~2022 due to a greater foreign income tax effects of awards in the income statement when the awards vest or are settled. These amounts were previously recognized in additional paid-in-capital. Additionally, for the first nine months of 2017, the rate ~~is lower due to adjustments for uncertain tax positions related to the first quarter 2017 settlement of an income tax audit.~~ differential.

8. ACCUMULATED OTHER COMPREHENSIVE ~~INCOME~~LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the six months ended June 30, 2023, are as follows:


	Foreign currency translation adjustment		Pension and other postretirement benefit plans		Cash flow hedging transactions		Total
	(In millions)
Balance, December 31, 2022	$	(469.3)	$	(3.4)	$	(1.0)	$	(473.7)
Other comprehensive income	27.8		—		—		27.8


Balance, June 30, 2023	$	(441.5)	$	(3.4)	$	(1.0)	$	(445.9)

Changes in accumulated other comprehensive ~~income by component, after tax, for the nine months ended September 30, 2017, are as follows:~~

~~(1)These accumulated other comprehensive income components are included in the computation of net periodic pension cost (See Note 8 Benefit Plans for additional details).~~

~~8. BENEFIT PLANS~~

9. RESTRUCTURING CHARGES

~~We sponsor defined benefit pension plans and defined contribution plans. For additional information about our benefit plans, see Note 10~~In the second quarter of ~~the Notes to Consolidated Financial Statements in our 2016 Form 10-K.~~

Pension Benefits Other Benefits
Three Months Ended September 30,
2017 2016 2017 2016
(In millions)
Service cost $ 1.0
$ 0.9
$ 0.1
$ 0.1
Interest cost 7.1
8.0
0.2
0.2
Expected return on plan assets (9.3 ) (9.6 ) (0.3 ) (0.3 )
Amortization of prior service cost 0.2
0.2
(0.3 ) (0.3 )
Recognized actuarial loss 3.8
3.5
0.4
0.2
Total net periodic benefit cost $ 2.8
$ 3.0
$ 0.1
$ (0.1 )

Pension Benefits Other Benefits
Nine months ended September 30,
2017 2016 2017 2016
(In millions)
Service cost $ 3.0
$ 2.7
$ 0.3
$ 0.3
Interest cost 21.3
24.0
0.6
0.6
Expected return on plan assets (27.9 ) (28.8 ) (0.9 ) (0.9 )
Amortization of prior service cost 0.6
0.6
(0.9 ) (0.9 )
Recognized actuarial loss 11.4
10.5
1.2
0.6
Total net periodic benefit cost $ 8.4
$ 9.0
$ 0.3
$ (0.3 )

9.10. SEGMENT INFORMATION

Reportable Segments. We manage our business and report our financial results through the following ~~four~~three reportable segments, which are the same as our operating segments:

- –Workforce Solutions

–U.S. Information Solutions ~~("USIS"~~(“USIS”)

~~- Workforce Solutions~~

~~- Global Consumer Solutions~~

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 ~~2016~~2022 Form 10-K. We evaluate the performance of these reportable segments based on their operating ~~revenues,~~revenue, operating income and operating margins, excluding any unusual or infrequent items, if any. ~~Inter-segment sales and transfers are not material for all periods presented.~~ 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, ~~(decisioning tools), which are derived from our databases of business credit and financial information,~~ locate services, fraud detection and prevention services, identity verification services and other consulting services); mortgage ~~loan information;~~services; financial marketing services; identity management; and ~~identity management.~~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. WeIn Asia Pacific, Europe, Latin America and Canada, we also provide information, technology and services to support debt collections and recovery management.

Operating revenue and operating income by operating segment during the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022 are as follows:


	Three Months Ended				Six Months Ended
(In millions)	June 30,				June 30,
Operating revenue:	2023		2022		2023		2022
Workforce Solutions	$	582.8	$	609.2	$	1,179.1	$	1,258.1
U.S. Information Solutions	445.0		421.4		866.7		854.4
International	289.8		286.1		573.8		567.5
Total operating revenue	$	1,317.6	$	1,316.7	$	2,619.6	$	2,680.0

Three Months Ended Nine Months Ended
(In millions) September 30, September 30,
Operating revenue: 2017 2016 2017 2016
U.S. Information Solutions
$ 307.7

$ 317.4

$ 949.7

$ 920.2
International
239.8

214.3

687.5

591.2
Workforce Solutions
186.4

171.3

580.9

528.7
Global Consumer Solutions
100.9

101.1

305.7

303.7
Total operating revenue $ 834.8
$ 804.1
$ 2,523.8
$ 2,343.8

September 30, December 31,
(In millions) 2017 2016
Total assets:
U.S. Information Solutions $ 1,765.6
$ 1,824.0
International 3,123.0
2,932.5
Workforce Solutions 1,346.0
1,337.0
Global Consumer Solutions 267.6
193.7
General Corporate 613.5
376.8
Total assets $ 7,115.7
$ 6,664.0

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Equifax Inc. MD&A is provided as a supplement to and should be read in conjunction with our consolidated financial statements and the accompanying Notes to Financial Statements in Item 1 of this Form 10-Q. This section discusses the results of our operations for the three and six months ended June 30, 2023 compared to the three and six months ended June 30, 2022. All percentages have been calculated using unrounded amounts for each of the periods presented.

All references to earnings per share data in ~~Management’s Discussion and Analysis, or~~ MD&A are to diluted earnings per share, or EPS, unless otherwise noted. 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.

Equifax Inc. is a global data, analytics and technology company. We provide information solutions for businesses, governments and consumers and we provide human resources business process automation and outsourcing services for employers. We have a large and diversified group of clients, including financial institutions, corporations, government agencies and individuals. Our services are based on comprehensive databases of consumer and business information derived from numerous sources including credit, financial assets, telecommunications and utility payments, employment, income, educational history, criminal justice data, healthcare professional licensure and sanctions, demographic and marketing data. We use advanced statistical techniques, machine learning and proprietary software tools to analyze available data to create customized insights, decision-making and process automation solutions and processing services for our clients. We are a leading ~~global~~ provider of e-commerce fraud and charge back protection services in North America as well as information and solutions used in payroll-related and human resource management business process services in the U.S. For consumers, we provide products and services to help people understand, manage and protect their personal information and make more informed financial decisions. Additionally, we also provide information, technology and services to support debt collections and recovery management

We currently operate in four global regions: North America (U.S. and Canada), Asia Pacific (Australia, New Zealand and India), Europe (the U.K., Spain and Portugal) and Latin America (Argentina, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay). We maintain support operations in the Republic of Ireland, Chile, Costa Rica and India. 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.

Recent Events and Company Outlook

As further described in our 2022 Form 10-K, we operate in the U.S., which represented 78% of our revenue in 2022, and internationally in 19 countries. Our products and services span a wide variety of vertical markets including financial services, mortgage, talent solutions, federal, state and local governments, automotive, telecommunications, e-commerce and many others.

Demand for our services tends to be correlated to general levels of economic activity and to consumer credit activity, small business commercial credit, marketing activity, identity and fraud, and employee hiring and onboarding activity. Demand is also enhanced by our initiatives to expand our products, capabilities and markets served.

For 2023, we expect that U.S. economic activity, as measured by GDP, to grow but at a slower rate of growth than experienced in 2022. Our forecast assumes the U.S. mortgage market, as measured by originations, is expected to decline by about 37% in 2023 versus 2022. The U.S. mortgage market, particularly the mortgage refinance portion of the U.S. mortgage market, can be significantly impacted by U.S. interest rates which therefore impacts mortgage rates available to consumers. In the International markets in which we operate, in particular in Australia, the U.K. and Canada, our forecast also assumes economic activity, as measured by GDP, to grow in 2023 but at slower rates than in 2022.

Segment and Geographic Information

Segments. The Workforce Solutions segment consists of the Verification Services and Employer Services business lines. Verification Services revenue is transaction-based and is derived primarily from employment and income ~~verifications and~~verification, as well as criminal justice data. Employer Services revenue is derived from our provision of certain human resources business process outsourcing ~~services. We leverage some of the largest sources of consumer~~services that include both transaction and ~~commercial data, along with advanced analytics~~subscription based product offerings. These services include unemployment claims management, employment-based tax credit services and ~~proprietary technology, to create customized insights which enable our business customers to grow faster, more efficiently and more profitably, and to inform and empower consumers.~~other complementary employment-based transaction services.

Businesses rely on us for consumer and business credit intelligence, credit portfolio management, fraud detection, decisioning technology, marketing tools, debt management and human resources-related services. We also offer a portfolio of products that enable individual consumers to manage their financial affairs and protect their identity. Our revenue stream is diversified among businesses across a wide range of industries, international geographies and individual consumers.

In the third quarter of fiscal 2017, we announced a cybersecurity incident potentially impacting approximately 145.5 million U.S. consumers. Criminals exploited a U.S. website application vulnerability to gain access to certain files. Based on our forensic investigation, the unauthorized access occurred from mid-May through July 2017. The information accessed primarily includes names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. In addition, credit card numbers for approximately 209,000 U.S. and Canadian consumers, and certain dispute documents with personal identifying information for approximately 182,000 U.S. consumers, were accessed. The investigation also determined that personal information of approximately 8,000 Canadian consumers was impacted and approximately 690,000 potentially affected U.K. consumers will be contacted regarding access to personal information in the cybersecurity incident.

The International segment consists of ~~Canada,~~Asia Pacific, Europe, ~~Asia Pacific~~Canada and Latin America. ~~Following the acquisition of Veda, we have created an Asia Pacific reporting unit which consists mainly of our Australia and New Zealand operations.~~ Canada’s services are similar to our USIS ~~offerings, while Europe,~~offerings. Asia Pacific, Europe and Latin America are made up of varying mixes of service lines that are generally consistent with those in our USIS reportable segment. We also provide information and technology services to support lenders and other creditors in the collections and recovery management process. ~~Asia Pacific also has various consumer direct product offerings.~~

The Workforce Solutions segment consists of the Verification Services and Employer Services business lines. Verification Services revenue is transaction-based and is derived primarily from employment and income verification. Employer Services revenues are derived from our provision of certain human resources business process outsourcing services

Seasonality. We experience seasonality in certain of our revenue streams. Revenue generated by the online consumer information services component of our USIS operating segment is typically the lowest during the first quarter, when consumer lending activity is at a seasonal low. Revenue generated from the Employer Services business unit within the Workforce Solutions operating segment is generally higher in the first quarter due primarily to the provision of Form W-2 and 1095-C services that occur in the first quarter each year. Revenue generated from our financial wealth asset products and data management services in our Financial Marketing Services business is generally higher in the fourth quarter each year due to the significant portion of our annual renewals and deliveries which occur then. Mortgage related revenue is generally higher in the second and third quarters of the year due to the increase in consumer home purchasing during the summer in the U.S. Any change in the U.S. mortgage market has a corresponding impact on revenue and operating profit for our business within the Workforce Solutions and USIS operating segments.

Key Performance Indicators. Management focuses on a variety of key indicators to monitor operating and financial performance. These performance indicators include measurements of operating revenue, change in operating revenue, operating income, operating margin, net income, ~~attributable to Equifax,~~ diluted earnings per share, cash provided by operating activities and capital expenditures. The key performance indicators for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022 were as follows:


	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)

Key Performance Indicators
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(In millions, except per share data) (In millions, except per share data)
Operating revenue $ 834.8
$ 804.1
$ 2,523.8
$ 2,343.8
Operating revenue change 4 % 20 % 8 % 17 %
Operating income $ 152.9
$ 212.1
$ 633.8
$ 614.0
Operating margin 18.3 % 26.4 % 25.1 % 26.2 %
Net income attributable to Equifax $ 96.3
$ 132.8
$ 415.0
$ 365.8
Diluted earnings per share $ 0.79
$ 1.09
$ 3.41
$ 3.02
Cash provided by operating activities $ 279.6
$ 245.0
$ 608.7
$ 544.2
Capital expenditures* $ (56.0 ) $ (48.2 ) $ (142.8 ) $ (131.0 )

*Amounts ~~above exclude changes in~~include accruals for capital expenditures.

Operational and Financial Highlights

•We ~~repurchased 0.5 million~~did not repurchase any shares ~~of our common stock on the open~~from public market ~~for $77.1 million~~transactions during the first ~~nine~~six months of ~~2017.~~2023 and 2022. At ~~September~~June 30, ~~2017, $590.1~~2023, $520.2 million was available for future purchases of common stock under our share repurchase authorization.

•We paid out ~~$140.7~~$95.6 million or ~~$1.17~~$0.78 per share in dividends to our shareholders during the first ~~nine~~six months of ~~2017.~~2023.

~~Business Environment and Company Outlook~~

Consolidated Financial Results

Operating Revenue


	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 September 30, Change Nine Months Ended September 30, Change
Consolidated Operating Revenue 2017 2016 $ % 2017 2016 $ %
(In millions) (In millions)
U.S. Information Solutions $ 307.7
$ 317.4
$ (9.7 ) (3 )% $ 949.7
$ 920.2
$ 29.5
3 %
International 239.8
214.3
25.5
12 % 687.5
591.2
96.3
16 %
Workforce Solutions 186.4
171.3
15.1
9 % 580.9
528.7
52.2
10 %
Global Consumer Solutions 100.9
101.1
(0.2 ) — % 305.7
303.7
2.0
1 %
Consolidated operating revenue $ 834.8
$ 804.1
$ 30.7
4 % $ 2,523.8
$ 2,343.8
$ 180.0
8 %

Revenue increased by ~~$30.7~~$0.9 million, or ~~4%,~~flat, and ~~$180.0~~decreased by $60.4 million, or 8%2%, infor the ~~third~~second quarter and first ~~nine~~six months of ~~2017,~~2023, respectively, compared to the same periods in 2016. The growth in the third quarter of 2017 was driven by our International and Workforce Solutions segments. International had strong growth across all regions. Workforce Solutions saw strong growth driven by Verification Services. USIS declined in the third quarter, reflecting the impact of the cybersecurity incident, and the weakened U.S. mortgage market. Revenue growth for the first nine months of 2017, is also driven by growth in International, reflecting broad based organic growth and the Veda acquisition, and Workforce Solutions. Growth in Workforce Solutions is driven by Verification Services. Additionally, USIS growth for the first nine months of 2017 reflects growth in core credit decisioning, mortgage, and identity and fraud solutions.2022. Total revenue for third quarter was positively impacted by foreign exchange rates, which increased revenue, on a constant currency basis, by $3.2 million when compared to the third quarter of 2016. Total revenue for the first nine months of 2017 was negatively impacted by foreign exchange rates, which ~~reduced~~decreased revenue ~~on a constant currency basis,~~ by ~~$14.0~~$15.5 million, or 1% ~~when compared to~~, and $38.9 million, or 1%, for the ~~first nine months of 2016.~~

~~Cost of services increased $9.3 million and $64.8 million in the third~~second quarter and first ~~nine~~six months of ~~2017, respectively, as~~2023, compared to the same periods in ~~2016.~~2022.

Revenue in the second quarter increased primarily due to growth in USIS, Employer Services, and International, partially offset by declines in Verification Services. Revenue in the first six months of 2023 decreased primarily due to declines in Verification Services, partially offset by growth in USIS, Employer Services, and International.

Operating Expenses


	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	%

Cost of services increased $45.9 million and $72.9 million in the second quarter and first six months of 2023, respectively, compared to the same periods in 2022. The ~~increase~~increases for ~~the third quarter was~~both periods were primarily due to higher royalty costs, people costs and production costs, ~~driven by higher revenues~~which include third party cloud usage fees and ~~higher technology costs, partially offset by a decrease in people~~software costs. ~~The increase for the first nine months was due to higher productions costs driven by higher revenues, higher people and technology costs, as well as the Veda acquisition.~~ The impact of changes in foreign exchange rates ~~increased cost~~on costs of services ~~by $1.8~~led to a decrease of $6.1 million and ~~reduced cost of services by $5.9~~$16.8 million in the ~~third~~second quarter and first ~~nine~~six months of ~~2017, respectively.~~2023, respectively, compared to the same periods in 2022.

Selling, general and administrative ~~expense~~expenses increased ~~$78.8~~$12.9 million and ~~$75.7~~$38.7 million infor the ~~third~~second quarter and first ~~nine~~six months of ~~2017,~~2023, respectively, as compared to the same periods in ~~2016.~~2022. The ~~overall increase was~~increases were primarily due to ~~the $87.5 million accrual of costs related to the cybersecurity incident and higher occupancy expenses, partially offset by a decline~~increases in ~~Veda integration and transaction and~~ people costs. The impact of changes in foreign currency exchange rates ~~increased our~~led to a decrease in selling, general and administrative expenses ~~by $0.7~~of $4.7 million and ~~reduced our selling, general and administrative expenses by $4.5~~$11.1 million infor the ~~third~~second quarter and first ~~nine~~six months of ~~2017, respectively.~~

~~Depreciation and amortization expense for the third quarter and first nine months of 2017 increased by $1.8 million and $19.7 million,~~2023, respectively, compared to the same periods in ~~2016. These increases are primarily due to~~2022.

Depreciation and amortization expense increased $9.8 million and $22.9 million for the ~~Veda acquisition.~~

~~Operating Income and Operating Margin~~

Three Months Ended September 30, Change Nine Months Ended September 30, Change
Consolidated Operating Income 2017 2016 $ % 2017 2016 $ %
(In millions) (In millions)
Consolidated operating revenue $ 834.8
$ 804.1
$ 30.7
4 % $ 2,523.8
$ 2,343.8
$ 180.0
8 %
Consolidated operating expenses 681.9
592.0
89.9
15 % 1,890.0
1,729.8
160.2
9 %
Consolidated operating income $ 152.9
$ 212.1
$ (59.2 ) (28 )% $ 633.8
$ 614.0
$ 19.8
3 %
Consolidated operating margin 18.3 % 26.4 %
(8.1 ) % pts 25.1 % 26.2 %
(1.1 ) % pts

Operating Income and Operating Margin


	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

Total company operating margin decreased by 5.1 percentage points and 6.9 percentage points in the second quarter and first six months of 2023, respectively, compared to the same periods in 2022. The margin decreases were due to the aforementioned increased operating expenses and amortization expenses during the periods as well as lower reported revenue during the six months ended June 30, 2023.

Interest Expense and Other Income, net


	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

Interest expense increased by $19.1 million and $36.9 million in the second quarter and first six months of 2023, respectively, compared to the same periods in 2022. The increase for the second quarter and first ~~nine~~six months of ~~2017 is~~2023 was due to ~~an overall increase in our consolidated average~~higher interest rates attributable to debt ~~outstanding as of September 30, 2017 incurred in order to finance the Veda acquisition. The decrease in interest expense~~agreements entered into during 2022 and ~~average cost of debt for the third quarter relates to the payment of a $272.5 million 6.3% note on July 3, 2017.~~2023.

Other income, ~~(expense),~~ net, ~~for~~increased by $14.1 million in the ~~third~~second quarter of ~~2017, increased~~2023, as compared to the ~~prior year~~same period ~~due primarily to higher earnings on equity method investments and lower foreign currency transaction losses. For~~in 2022. Other income, net, increased by $7.5 million in the first ~~nine~~six months of ~~2017,~~2023, compared to the same period in 2022. The increase for the second quarter and first six months of 2023 was due to the fair value adjustment of our investment in ~~other income (expense), net is due primarily to a 2016 loss on the economic hedges, offset by a foreign currency~~Brazil and gain on ~~intercompany debt, both items related to~~sale of an equity investment during the ~~Veda transaction which did not recur in 2017, as well as higher earnings on equity method investments in 2017.~~second quarter of 2023.

Our effective income tax rate was ~~26.1%~~27.4% for the ~~third quarter of 2017, down from 29.1%~~three months ended June 30, 2023, compared to 23.9% for the ~~third quarter of 2016. The~~three months ended June 30, 2022. Our effective income tax rate was ~~26.2%~~26.6% for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~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 ~~32.1% for the same period in 2016. The decrease in our effective~~2022 due to a greater foreign income tax rate ~~is primarily attributable~~differential and less favorable discrete items. Our effective rate was higher for the six months ended June 30, 2023 as compared to ~~the adoption of the new stock-based compensation guidance prospectively adopted in the first quarter of 2017 that requires the recognition of the~~2022 due to a greater foreign income tax effects of awards in the income statement when the awards vest or are settled. These amounts were previously recognized in additional paid-in-capital. Additionally, for the first nine months of 2017, the rate ~~is lower due to adjustments for uncertain tax positions related to the first quarter 2017 settlement of an income tax audit.~~differential.

Consolidated net income decreased by ~~$34.4~~$62.0 million ~~or 26%,~~and $171.3 million for the second quarter and first six months of 2023, respectively, compared to the same periods in ~~the third quarter of 2017, primarily~~2022. The decreases were due to ~~the accrual~~lower levels of ~~costs related to the cybersecurity incident, decreased~~ operating income and higher interest expense in our USIS and GCS segments, partially offset by increased operating income in our International and Workforce Solutions segments and the tax benefit related to the prospective adoption of the new stock-based compensation guidance in the first quarter of 2017. Consolidated net income increased $53.2 million, or 14%, in the first nine months of 2017 due to increased operating income across all segments, the tax benefit related to the prospective adoption of the new stock-based compensation guidance in the first quarter of 2017, adjustments for uncertain tax positions related to the recent settlement of an income tax audit, partially offset by the accrual of costs related to the cybersecurity incident.2023.

Segment Financial Results

~~USIS~~Workforce Solutions revenue decreased 3% by 4% and 6% in the ~~third~~second quarter and first six months of ~~2017~~2023, respectively, compared to the ~~prior year period~~same periods in 2022. The decreases for both periods were due to a decline in Verification Services, partially offset by growth in Employer Services.

Verification Services

Revenue decreased by 6% and 9% for the second quarter and first six months of 2023, respectively, compared to the same periods in 2022. The decrease in revenue for both periods was due to declines in ~~our core credit decisioning~~mortgage and consumer finance verticals, offset by an increase in revenue within the government vertical. The second quarter was also impacted by a decrease within the talent solutions vertical.

Revenue increased by 4% in the second quarter and first six months of 2023, compared to the same periods in 2022. The increase in revenue for both periods was due to revenue from recently acquired companies and an increase in I-9 revenue, partially offset with lower employee services and ~~core mortgage, reflecting~~unemployment claims revenue.

Workforce Solutions Operating Margin

Operating margin decreased to 42.0% for the ~~impact~~second quarter of 2023 from 46.2% for the ~~cybersecurity incident~~second quarter of 2022, and ~~weakened U.S. mortgage market~~to 41.8% for the first six months of 2023 from 46.9% for the first six months of 2022. The decreased margin for both periods is due the decline in revenue and ~~auto vertical, respectively.~~ increased royalty costs, people costs and production costs and increased purchased intangible asset amortization.

USIS


	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

USIS revenue increased 3%by 6% and 1% for the second quarter and first six months of 2023, respectively, compared to the same periods in 2022. The increase in the second quarter was due to growth in online non-mortgage revenue and revenue from acquisitions. Mortgage revenue in the second quarter declined slightly, as growth in online mortgage was offset by declines in mortgage solutions. The increase in the first ~~nine~~six months ~~of 2017, as compared~~was due to ~~the prior year period, driven~~growth in online non-mortgage revenue and revenue from acquisitions, partially offset by ~~growth across our core credit decisioning services, core~~declines in both online mortgage and ~~identity and fraud~~mortgage solutions.
The decline in mortgage revenue is due to continued declines in mortgage inquiry volumes during both periods of 2023.

Online Information Solutions

Revenue increased by 9% and 4% for the ~~third~~second quarter and first ~~nine~~six months of ~~2017 decreased 4% and increased 2%~~,2023, respectively, ~~when~~ compared to the ~~prior year periods.~~same periods in 2022. The ~~decrease in~~increases for both periods were driven by continued growth of non-mortgage online services, commercial risk and revenue from acquisitions. During the ~~third~~second quarter of ~~2017, is driven by declines in our core credit decisioning business. The increase for the first nine months of 2017, is driven by~~2023, online mortgage contributed to an increase in ~~our core credit decisioning and identity and fraud solutions businesses.~~
revenue, while there was an overall decline in online mortgage revenue across the first six months of 2023 due to a larger decline in the first quarter of 2023.

Revenue decreased by 2%18% and ~~increased by 10% for~~21% in the ~~third~~second quarter and first ~~nine~~six months of ~~2017,~~2023, respectively, ~~when~~ compared to the ~~prior year periods.~~same periods in 2022. The ~~increase for the first nine months of 2017 is primarily driven by growth~~decreases in ~~core~~both periods were due to declining mortgage ~~as well as growth from other mortgage product offerings.~~

~~Financial Marketing Services~~

Financial Marketing Services

Revenue increased by 1% and 2% for the second quarter and first ~~nine~~six months of ~~2017 is due~~2023, respectively, compared to ~~strong project related revenue.~~the same periods in 2022. The increases for the second quarter and first six months were driven by growth in risk and data services partially offset by declines in marketing services.

USIS Operating Margin

USIS operating margin decreased ~~from 44.0% in~~to 23.1% for the ~~third~~second quarter of ~~2016 to 42.1% in~~2023 from 26.6% for the ~~third~~second quarter of ~~2017~~2022 and to 20.9% for the first six months of 2023 from 27.3% for the first six months of 2022. The margin decrease for both periods was due to ~~lower revenue. The USIS~~an increase in operating ~~margin decreased from 43.1%~~expenses and depreciation expense related to ~~43.0%~~increased capitalized software development spending and cloud production costs, as well as incentives.

International


	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

International revenue increased by 1% in both the second quarter and the first ~~nine~~six months of ~~2016~~2023, compared to the ~~first nine months of 2017.~~

On a local currency basis, revenue increased by 4% and 7% for the second quarter and first six months of 2023, respectively, compared to the ~~prior year periods.~~same periods in 2022. The increases in both periods were driven by stronger volumes within commercial, fraud and direct to consumer businesses, offset by a decline in the human resources solutions business. Local currency fluctuations against the U.S. dollar negatively impacted revenue ~~growth~~by $5.7 million, or 7%, and $11.5 million, or 6%, for the ~~third~~second quarter and first six months of ~~2017 was 10%,~~2023, respectively. Reported revenue decreased by 3% and increased by 1% for the second quarter and first six months of 2023, respectively, compared to the same periods in 2022.

On a local currency basis, revenue decreased by 2% and 3% for the second quarter and first six months of 2023, respectively, compared to the same periods in 2022. The decreases in both periods were driven by ~~strong growth across all regions. Local currency revenue growth, excluding Veda, for the first nine months of 2017 was 11%, driven~~lower debt placements within our debt services business, partially offset by ~~strong growth across all regions.~~stronger consumer volumes in our credit bureau agency businesses in Europe. Local currency fluctuations against the U.S. dollar positively impacted revenue by ~~$3.1~~$0.2 million, ~~in the third quarter~~or 1.0%, and negatively impacted revenue by ~~$11.5~~$6.7 million, inor 4%, for the second quarter and first ~~nine~~six months of ~~2017.~~2023, respectively. Reported revenue decreased by 1% and 7% for the second quarter and first six months of 2023, respectively, compared to the same periods in 2022.

~~Canada~~Latin America

On a local currency basis, revenue increased 7%by 23% and ~~9% in~~27% for the ~~third~~second quarter and first ~~nine~~six months of ~~2017,~~2023, respectively, as compared to the ~~prior year~~same periods in 2022. The increases in both periods reflect local currency growth across most countries, primarily Argentina and Chile, related to stronger pricing, as well as growth due to ~~core organic growth.~~revenue from a recently acquired

company in the Dominican Republic, partially offset by a decline in Mexico. Local currency fluctuations against the U.S. dollar ~~positively~~negatively impacted revenue by ~~$1.4~~$7.2 million, or 5%14%, and ~~1.0~~$14.6 million, or 1%14%, infor the ~~third~~second quarter and first ~~nine~~six months of ~~2017,~~2023, respectively. Reported revenue increased by ~~11%~~9% and ~~10% in~~13% for the ~~third~~second quarter and first ~~nine~~six months of ~~2017, respectively.~~

~~International Operating Margin~~

Operating margin increased from 12.3% in the third quarter of 2016 to 22.0% in the third quarter of 2017 due to a decrease in integration costs related to the Veda acquisition, as well as changes in product mix and a decrease in people costs and purchased intangibles amortization. Operating margin increased from 13.4% in the first nine months of 2016 to 18.7% in the first nine months of 2017 due to a decrease in integration costs related to the Veda acquisition, a gain on the sale of an asset, as well as changes in product mix, partially offset by increased purchased intangibles amortization.

~~Workforce Solutions revenue increased by 9% and 10% in the third quarter and first nine months of 2017,~~2023, respectively, as compared to the ~~prior year periods. The increase for the third quarter was due to strong growth~~same periods in the government, financial, mortgage, and pre-employment screening verticals. The increase for the first nine months of 2017 was due to strong growth in the government, mortgage, financial, healthcare and auto verticals.2022.

~~Verification Services~~

Revenue increased 13% and 16% in the third quarter and first nine months of 2017, respectively, as compared to the prior year periods, due to strong growth in government, financial, mortgage, and pre-employment screening verticals, and continued addition of new records to The Work Number database.

~~Employer Services~~

~~Workforce Solutions~~International Operating Margin

Operating margin increased ~~from 40.8%~~to 11.9% for the ~~third~~second quarter of ~~2016 to 43.1%~~2023 from 11.3% for the ~~third~~second quarter of ~~2017~~2022 and ~~increased from 42.9% in the first nine months of 2016~~decreased to ~~44.5%~~11.7% for the first ~~nine~~six months of 2017. Margin expansion was driven by product mix, strong revenue growth and a decrease in purchased intangibles amortization, offset by higher people and marketing costs over the third quarter and first nine months of 2017.

~~Global Consumer Solutions~~

Three Months Ended September 30, Change Nine Months Ended September 30, Change
General Corporate Expense 2017 2016 $ % 2017 2016 $ %
(In millions) (In millions)
General corporate expense $ 134.5
$ 51.6
$ 82.9
161 % $ 245.5
$ 169.2
$ 76.3
45 %

General corporate expense increased ~~$82.9~~by $23.9 million and ~~$76.3~~$44.1 million infor the ~~third~~second quarter and first ~~nine~~six months of ~~2017,~~2023, respectively, as compared to the ~~prior year~~same periods in 2022. The increase was due to increased people costs, primarily due to ~~the accrual of costs related to the cybersecurity incident.~~restructuring charges and incentive plans.

LIQUIDITY AND FINANCIAL CONDITION

Management assesses liquidity in terms of our ability to generate cash to fund operating, investing and financing activities. We continue to generate substantial cash from operating activities, ~~and~~ remain in a strong financial position ~~with resources available for reinvestment in existing businesses, strategic acquisitions~~ and ~~managing~~manage our capital structure to meet ~~short~~short- and long-term ~~objectives.~~objectives including reinvestment in existing businesses and completing strategic acquisitions.

Funds generated by operating activities, our Revolver and related CP program, more fully described below, are our most significant sources of liquidity. At June 30, 2023, we had $164.1 million in cash balances, as well as $1,343.6 million available to borrow under our Revolver.

Sources and Uses of Cash

~~Funds generated by operating activities~~We believe that our existing cash balance, liquidity available from our CP and ~~our credit facilities continue to be our most significant sources of liquidity. We expect that funds~~Revolver, cash generated from ~~results of~~ongoing operations and continued access to public or private debt markets will be sufficient to ~~finance our anticipated working capital and other~~satisfy cash requirements ~~(such as capital expenditures, expenses associated with~~over the ~~cybersecurity incident, interest payments, potential pension funding contributions, acquisition~~next 12 months and integration costs, and dividend payments) for the foreseeable future. If borrowings were needed, we would expect to borrow in the commercial paper or corporate bond markets; or in the event that credit market conditions were to deteriorate, we would rely more heavily on borrowings from the Revolver as described below. At September 30, 2017, $234.2 millionbeyond. While there was ~~available to borrow under our Revolver and we had cash and cash equivalents of $315.4 million included~~no significant change in our ~~Consolidated Balance Sheets. On October 12, 2017,~~cash requirements as of June 30, 2023 compared to December 31, 2022, we have utilized existing CP and Revolver capacity, together with cash from operating activities, to meet our current obligations. During the first quarter of 2023, we borrowed ~~$100~~$175.0 million on our ~~Revolver.~~Revolver to pay down CP. We subsequently repaid the Revolver in full during the second quarter of 2023.

Our Revolver does not include a provision under which lenders could refuse to allow us to borrow under the facility in the event of a material adverse change in our financial condition, as long as we are in compliance with the covenants contained in the credit agreement.

~~Operating Activities~~

Information about our cash flows, by category, is presented in the Consolidated Statements of Cash Flows. The following table summarizes our cash flows for the six months ended June 30, 2023 and 2022:


	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)

Operating Activities

Cash provided by operating activities in the six months ended June 30, 2023 increased by $336.2 million compared to the prior year period primarily due to the $345.0 million consumer class action settlement payment that was made in January 2022 related to the U.S. Consumer MDL Litigation settlement that became effective on January 11, 2022 that did not recur in 2023.

Investing Activities

Capital Expenditures

*Amounts above are total cash outflows for capital expenditures.

Our capital expenditures are used for developing, enhancing and deploying new and existing software in support of our expanding product set, replacing or adding ~~facilities and~~ equipment, updating systems for regulatory compliance, the licensing of certain software applications, ~~and~~ investing in system reliability, security and disaster recovery ~~enhancements.~~ enhancements, and updating or expanding our office facilities.

Capital expenditures paid in the first ~~nine~~six months of ~~2017~~2023 increased by ~~$26.5~~$5.9 million from the same period in ~~2016~~2022 due to our continued investment in enhanced technology applications and cloud infrastructure as ~~we paid amounts that were accrued as~~part of ~~December 31, 2016.~~our technology transformation.

Acquisitions, Divestitures and Investments

During the ~~third quarter~~first six months of ~~2017,~~2023, we acquired a Canadian company within our International segment and completed the ~~acquisition~~sale of ~~100% of the outstanding stock of ID Watchdog, Inc.~~

Financing Activities

Borrowings and Credit Facility Availability


	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

Credit ~~Facility~~Facilities Availability

~~Our principal~~In August 2021, we refinanced our existing unsecured revolving credit facility ~~with~~of $1.1 billion that was set to expire in September 2023, and entered into a ~~group~~new $1.5 billion five-year unsecured Revolver as well as a new $700.0 million delayed draw Term Loan (collectively, the “Senior Credit Facilities”), both of ~~banks,~~ which ~~we refer to as~~mature in August 2026. Borrowings under the ~~Revolver, permits us to borrow up to $900.0 million through November 2020. The Revolver~~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 ~~for borrowings~~ is reduced by the outstanding ~~face amount~~principal balance of our commercial paper notes and by any letters of credit issued under the ~~facility and by~~Revolver.

In the ~~outstanding principal amount~~third quarter of 2021, we increased the size of our CP ~~notes. As a condition~~program from $1.1 billion to ~~borrow under~~$1.5 billion, consistent with the increase in our Revolver, we are required to certify certain representations and warranties (as defined in the Revolver). We believe we are currently in compliance with all such representations and warranties necessary as a condition for borrowing under the Revolver, but we cannot assure that we will be able to comply with all such conditions to borrowing in the future. On October 12, 2017, we borrowed $100 million on our Revolver.

~~At September~~As of June 30, ~~2017, $665.3~~2023, there were $0.4 million ~~was~~of letters of credit outstanding, no outstanding borrowings under the Revolver, $700.0 million outstanding under ~~our~~the Term Loan and $156.0 million of outstanding CP ~~program. At September~~notes. Availability under the Revolver was $1,343.6 million at June 30, ~~2017, a total of $234.2 million was available under our Revolver. On July 3, 2017, we repaid our July 2017 Senior Notes using the proceeds of commercial paper.~~2023.

At ~~September~~June 30, ~~2017, 61%~~2023, 85% of our debt was fixed-rate debt and ~~39%~~15% was ~~effectively floating-rate~~variable debt. Our ~~floating-rate~~variable-rate debt consists of our ~~commercial paper, which is generally issued for~~outstanding term loan and CP. The interest rates reset periodically, depending on the terms of ~~1 to 100 days, and our Term Loan.~~the respective financing agreements. At ~~September~~June 30, ~~2017,~~2023, the interest ~~rates~~rate on our ~~floating-rate~~variable-rate debt ranged from ~~1.45%~~5.25% to ~~2.36%~~6.45%.

Borrowing and Repayment Activity

~~Net short-term borrowings primarily represent activity under our CP program and borrowings under the 364-day Revolver.~~ We primarily borrow under our CP program and Revolver as needed and as availability allows.

~~The increase in net~~Net short-term borrowings primarily ~~reflects the~~represent net ~~activity~~borrowings or repayments of outstanding amounts under our CP ~~notes in the first nine months~~program.

Borrowings on long-term debt represent $175.0 million of 2017, including a $272.5 million increase in CP to fund the payment of 6.30% term notes due July 2017, partially offset as we have deleveraged following the 2016 Veda acquisition. The increase in net short-term borrowings ~~primarily reflects the net activity of CP notes in the first nine months of 2016, as well as the draw down~~ on ~~the 364-Day~~our Revolver during the first quarter of ~~2016 and the pay-off of the Veda assumed debt in the first quarter and the 364-Day Revolver during the third quarter of 2016.~~

In ~~addition,~~August 2021, we entered into the Senior Credit Facilities ~~limit~~in anticipation of the ~~amount~~Appriss Insights acquisition. In March 2023, we amended the Senior Credit Facilities, resulting in a modification of ~~subsidiary~~our required maximum leverage ratio, among other changes. As amended, the Senior Credit Facilities require a maximum leverage ratio, defined as consolidated funded debt divided by consolidated EBITDA, of (i) 4.25 to 1.0 commencing with the fourth quarter of 2022 through the fourth quarter of 2023 and (ii) 3.75 to 1.0 commencing with the ~~amount~~first quarter of ~~debt secured~~2024 and for each fiscal quarter ending thereafter

through the remaining term of the Senior Credit Facilities. We may also elect to increase the maximum leverage ratio by ~~liens, and require us~~0.5 to ~~maintain~~1.0 (subject to a maximum leverage ratio of ~~not more than 3.5~~4.75 to ~~1.0. None~~1.0) in connection with certain material acquisitions if we satisfy certain requirements. The Senior Credit Facilities also permit cash in excess of ~~these covenants are considered restrictive~~$175 million to ~~our operations and, as~~be netted against debt in the calculation of ~~September~~the leverage ratio, subject to certain restrictions.

As of June 30, ~~2017,~~2023, we were in compliance with all of our debt covenants.

We do not have any credit rating triggers that would accelerate the maturity of a material amount of ~~our~~the outstanding debt; however, our ~~2.3% Senior Notes~~2.6% senior notes due ~~2021, 3.3% Senior Notes~~2024, 2.6% senior notes due ~~2022,~~2025, 3.25% ~~Senior Notes~~senior notes due 2026, 5.1% senior notes due 2027, 5.1% senior notes due 2028, 3.1% senior notes due 2030, 2.35% senior notes due 2031 and 7.0% ~~Senior Notes~~senior notes due 2037 ~~(together,~~(collectively, the “Senior Notes”) contain change ofin control provisions. If ~~we experience~~the Company experiences a change of control or publicly ~~announce our~~announces the Company’s intention to effect a change of control and the rating on the Senior Notes is lowered by ~~each of~~ Standard & Poor’s or (“S~~&P,~~&P”) and Moody’s Investors Service ~~or Moody’s,~~(“Moody’s”) below an investment grade rating within 60 days of such change of control or notice thereof, wethen the Company will be required to offer to repurchase the Senior Notes at a price equal to 101% of the aggregate principal amount of the Senior Notes plus accrued and unpaid interest. As of September 30, 2017, our S&P credit rating was BBB+ with a negative outlook and our Moody's credit rating was Baa1 with a stable outlook. These ratings are subject to change as events and circumstances change.

For additional information about our debt, including the terms of our financing arrangements, basis for ~~floating~~variable interest rates and debt covenants, see Note 5 of the Notes to Consolidated Financial Statements in our ~~2016~~2022 Form 10-K.

Equity Transactions


	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

Sources and uses of cash related to equity during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022 were as follows:

- During the first six months of 2023 and 2022, we did not repurchase any shares of our common stock on the open market.

- We maintained our quarterly dividend of $0.39 per share in the second quarter of 2023. We paid cash dividends to Equifax shareholders of $95.6 million and $95.7 million, or $0.78 per share, during the six months ended June 30, 2023 and 2022, respectively.

- We received cash of $16.5 million and $8.7 million during the first six months of 2023 and 2022, respectively, from the exercise of stock options and the employee stock purchase plan.

At ~~September~~June 30, ~~2017,~~2023, the Company had ~~$590.1~~$520.2 million remaining for stock repurchases under the existing ~~Board authorization.~~ authorization from the board of directors.


					Page
PART I.			Financial Information		4
Item 1.			Financial Statements (Unaudited)		4
			Consolidated Statements of Income—Three Months Ended June 3 0 , 2023 and 2022		4
			Consolidated Statements of Income—Six Months Ended June 30, 202 3 and 20 2 2		5
			Consolidated Statements of Comprehensive Income —Three and Six Months Ended June 30, 202 3 and 20 2 2		6

				~~Page~~
~~PART I.~~	~~Financial Information~~			4
~~Item 1.~~	~~Financial Statements (Unaudited)~~	4
	~~Consolidated Statements of Income—Three and Nine Months Ended September 30, 2017 and 2016~~	4
	~~Consolidated Statements of Comprehensive Income—Three and Nine Months Ended September 30, 2017 and 2016~~	6
	Consolidated Balance Sheets—~~September 30, 2017~~June 3 0 , 2023 and December 31, ~~2016~~2022	7
			Consolidated Statements of Cash Flows—~~Nine~~Six Months Ended ~~September 30, 2017~~June 3 0 , 2023 and ~~2016~~2022		8
			Consolidated Statements of ~~Changes in~~Shareholders' Equity—Three Months Ended June 3 0 , 2023 and 2022		9

			Consolidated Statements of Shareholders' Equity and Accumulated Other Comprehensive ~~Income—Nine~~Loss—Six Months Ended ~~September~~June 30, ~~2017~~202 3 and ~~2016~~20 2 2		910
			Notes to Consolidated Financial Statements (Unaudited)		1012
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations		2322
Item 3.			Quantitative and Qualitative Disclosures About Market Risk		4034
Item 4.			Controls and Procedures		4034
PART II.			Other Information		4135
Item 1.			Legal Proceedings		4135
Item 1A.			Risk Factors		4236
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds		4336
Item 6.			Exhibits		4538
Signatures					4639
~~Index to Exhibits~~		47



Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income			Affected line item in the statement where net income is presented
	(In millions)
Amortization of pension and other postretirement plan items:
Prior service cost	$	0.3		(1)
Recognized actuarial loss	(12.6		)	(1)
	(12.3		)	Total before tax
	4.7			Tax benefit
	$	(7.6	)	Net of tax



☒(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



	Three Months Ended September 30,
	2017			2016
(In millions, except per share amounts)
Operating revenue	$	834.8		$	804.1
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	297.3			288.0
Selling, general and administrative expenses	312.2			233.4
Depreciation and amortization	72.4			70.6
Total operating expenses	681.9			592.0
Operating income	152.9			212.1
Interest expense	(21.4		)	(24.3		)
Other income, net	4.5			2.4
Consolidated income before income taxes	136.0			190.2
Provision for income taxes	(35.5		)	(55.3		)
Consolidated net income	100.5			134.9
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(4.2		)	(2.1		)
Net income attributable to Equifax	$	96.3		$	132.8
Basic earnings per common share:
Net income attributable to Equifax	$	0.80		$	1.11
Weighted-average shares used in computing basic earnings per share	120.1			119.5
Diluted earnings per common share:
Net income attributable to Equifax	$	0.79		$	1.09
Weighted-average shares used in computing diluted earnings per share	121.4			121.3
Dividends per common share	$	0.39		$	0.33




	Nine Months Ended September 30,
	2017			2016
(In millions, except per share amounts)
Operating revenue	$	2,523.8		$	2,343.8
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	891.9			827.1
Selling, general and administrative expenses	783.9			708.2
Depreciation and amortization	214.2			194.5
Total operating expenses	1,890.0			1,729.8
Operating income	633.8			614.0
Interest expense	(70.1		)	(68.0		)
Other income (expense), net	10.6			(0.4		)
Consolidated income before income taxes	574.3			545.6
Provision for income taxes	(150.8		)	(175.3		)
Consolidated net income	423.5			370.3
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(8.5		)	(4.5		)
Net income attributable to Equifax	$	415.0		$	365.8
Basic earnings per common share:
Net income attributable to Equifax	$	3.45		$	3.07
Weighted-average shares used in computing basic earnings per share	120.1			119.2
Diluted earnings per common share:
Net income attributable to Equifax	$	3.41		$	3.02
Weighted-average shares used in computing diluted earnings per share	121.6			121.1
Dividends per common share	$	1.17		$	0.99



	Three Months Ended September 30,
	2017						2016
	Equifax Shareholders		Noncontrolling Interests		Total		Equifax Shareholders		Noncontrolling Interests		Total
	(In millions)
Net income	$	96.3	$	4.2	$	100.5	$	132.8	$	2.1	$	134.9
Other comprehensive income (loss):
Foreign currency translation adjustment	91.1		1.2		92.3		82.2		—		82.2
Change in unrecognized prior service cost and actuarial losses related to our pension and other postretirement benefit plans, net	2.6		—		2.6		2.3		—		2.3
Change in cumulative loss from cash flow hedging transactions, net	—		—		—		—		—		—
Comprehensive income	$	190.0	$	5.4	$	195.4	$	217.3	$	2.1	$	219.4



				Fair Value Measurements at Reporting Date Using:
Description	Fair Value of Assets (Liabilities) at September 30, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In millions)
Deferred Compensation Plan Assets⁽¹⁾	$	33.3		$	33.3	$	—		$	—
Deferred Compensation Plan Liability⁽¹⁾	(33.3		)	—		(33.3		)	—
Total	$	—		$	33.3	$	(33.3	)	$	—



	Nine months ended September 30,
	2016
	As Reported		Pro Forma
	(In millions, except per share data)
Operating revenues	$	2,343.8	$	2,383.2
Net income attributable to Equifax	365.8		368.4
Net income per share (basic)	3.07		3.09
Net income per share (diluted)	3.02		3.04



	U.S. Information Solutions		International			Workforce Solutions		Global Consumer Solutions		Total
	(In millions)
Balance, December 31, 2016	$	1,071.3	$	1,814.6		$	952.1	$	136.3	$	3,974.3
Acquisitions	—		3.4			—		48.5		51.9
Adjustments to initial purchase price allocation	—		(1.1		)	—		—		(1.1		)
Foreign currency translation	—		146.5			—		6.8		153.3
Balance, September 30, 2017	$	1,071.3	$	1,963.4		$	952.1	$	191.6	$	4,178.4



	Foreign currency			Pension and other postretirement benefit plans			Cash flow hedging transactions			Total
	(In millions)
Balance, December 31, 2016	$	(262.0	)	$	(265.9	)	$	(1.0	)	$	(528.9	)
Other comprehensive income before reclassifications	209.7			—			(0.2		)	209.5
Amounts reclassified from accumulated other comprehensive income	—			7.6			—			7.6
Net current-period other comprehensive income	209.7			7.6			(0.2		)	217.1
Balance, September 30, 2017	$	(52.3	)	$	(258.3	)	$	(1.2	)	$	(311.8	)



	Pension Benefits						Other Benefits
	Three Months Ended September 30,
	2017			2016			2017			2016
	(In millions)
Service cost	$	1.0		$	0.9		$	0.1		$	0.1
Interest cost	7.1			8.0			0.2			0.2
Expected return on plan assets	(9.3		)	(9.6		)	(0.3		)	(0.3		)
Amortization of prior service cost	0.2			0.2			(0.3		)	(0.3		)
Recognized actuarial loss	3.8			3.5			0.4			0.2
Total net periodic benefit cost	$	2.8		$	3.0		$	0.1		$	(0.1	)



	Three Months Ended				Nine Months Ended
(In millions)	September 30,				September 30,
Operating revenue:	2017		2016		2017		2016
U.S. Information Solutions	$	307.7	$	317.4	$	949.7	$	920.2
International	239.8		214.3		687.5		591.2
Workforce Solutions	186.4		171.3		580.9		528.7
Global Consumer Solutions	100.9		101.1		305.7		303.7
Total operating revenue	$	834.8	$	804.1	$	2,523.8	$	2,343.8


	June 30,		December 31,
(In millions)	2023		2022
Total assets:
Workforce Solutions	$	4,197.0	$	4,156.5
U.S. Information Solutions	3,310.5		3,291.4
International	3,117.8		3,106.8
General Corporate	912.6		993.2
Total assets	$	11,537.9	$	11,547.9



	Nine Months Ended September 30,						Change
Net cash used in:	2017			2016			2017 vs. 2016
	(In millions)
Acquisitions, net of cash acquired	$	(77.3	)	$	(1,792.4	)	$	1,715.1
Economic hedges	$	—		$	(10.8	)	$	10.8
Cash received from sale of asset	$	8.6		$	—		$	8.6


-	~~During the first nine months of 2017, we repurchased approximately 0.5 million of our common shares on the open market for $77.1 million, at an average price of $143.88 per share.~~


-	We increased our quarterly dividend from $0.33 per share to $0.39 per share as announced in the first quarter of 2017. We paid cash dividends to Equifax shareholders of $140.7 million, or $1.17 per share, and $118.1 million, or $0.99 per share, during the nine months ended September 30, 2017 and 2016, respectively.


-	~~We received cash of $18.8 million and $26.8 million during the first nine months of 2017 and 2016, respectively, from the exercise of stock options.~~



	~~September 30,~~
	~~2017~~
	~~Discount rate~~
~~U.S. Information Solutions~~	~~9.0~~	%
~~Asia Pacific~~	~~9.4~~	%
~~Europe~~	~~8.8~~	%
~~Latin America~~	~~15.5~~	%
~~Canada~~	~~8.9~~	%
~~Global Consumer Solutions~~	~~11.2~~	%
~~Verification Services~~	~~8.5~~	%
~~Employer Services~~	~~10.7~~	%



	~~September 30,~~
	~~2017~~
	~~Cushion~~
~~U.S. Information Solutions~~	~~395~~	%
~~Asia Pacific~~	5	%
~~Europe~~	~~155~~	%
~~Latin America~~	64	%
~~Canada~~	~~1,472~~	%
~~Global Consumer Solutions~~	~~141~~	%
~~Verification Services~~	~~405~~	%
~~Employer Services~~	58	%



	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)
July 1 - July 31	1,022	$	145.29	90,000	$	654,122,910
August 1 - August 31	5,443	$	143.60	445,901	$	590,092,166
September 1 - September 30	855	$	—	—	$	590,092,166
Total	7,320	$	143.88	535,901	$	590,092,166


~~(1)~~	The total number of shares purchased for the quarter includes shares surrendered, or deemed surrendered, in satisfaction of the exercise price and/or to satisfy tax withholding obligations in connection with the exercise of employee stock options, totaling 1,022 shares for the month of July 2017, 5,443 shares for the month of August 2017, and 855 shares for the month of September 2017.


~~(2)~~	~~Average price paid per share for shares purchased as part of our share repurchase program (includes brokerage commissions).~~


~~(3)~~	~~At September 30, 2017, the amount authorized for future share repurchases under the share repurchase program was $590.1 million. The program does not have a stated expiration date.~~



		Equifax Inc.
		(Registrant)

Date:	~~November 9, 2017~~July 25, 2023	By:	/s/ ~~Paulino R. Barros, Jr.~~Mark W. Begor
			~~Paulino R. Barros, Jr.~~Mark W. Begor
			~~Interim~~ Chief Executive Officer
			(Principal Executive Officer)

Date:	~~November 9, 2017~~July 25, 2023		/s/ John W. Gamble, Jr.
			John W. Gamble, Jr.
			~~Corporate~~Executive Vice President, ~~and~~
	Chief Financial Officer
			and Chief Operations Officer
			(Principal Financial Officer)

Date:	~~November 9, 2017~~July 25, 2023		/s/ ~~Nuala~~James M. ~~King~~Griggs
			~~Nuala~~James M. ~~King~~Griggs
			~~Senior Vice President~~Chief Accounting Officer and Corporate Controller
			(Principal Accounting Officer)



~~Exhibit No.~~			~~Description~~
~~10.1~~			~~Agreement, dated September 25, 2017, between Equifax Inc. and Richard F. Smith~~
~~31.1~~			~~Rule 13a-14(a) Certification of Chief Executive Officer~~
~~31.2~~			~~Rule 13a-14(a) Certification of Chief Financial Officer~~
~~32.1~~			~~Section 1350 Certification of Chief Executive Officer~~
~~32.2~~			~~Section 1350 Certification of Chief Financial Officer~~
~~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~~