Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 13, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EFX | |
Entity Registrant Name | EQUIFAX INC | |
Entity Central Index Key | 33,185 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 118,244,321 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenue | $ 678.1 | $ 613.9 | $ 1,329.9 | $ 1,198.4 |
Operating expenses: | ||||
Cost of services (exclusive of depreciation and amortization below) | 220.8 | 212.3 | 435.9 | 419.1 |
Selling, general and administrative expenses | 218.7 | 183.5 | 451.6 | 358.9 |
Depreciation and amortization | 50.1 | 50.7 | 99.7 | 101.1 |
Total operating expenses | 489.6 | 446.5 | 987.2 | 879.1 |
Operating income | 188.5 | 167.4 | 342.7 | 319.3 |
Interest expense | (16.2) | (17.4) | (32.3) | (34.7) |
Other (expense) income, net | (13.9) | 0.5 | (14.4) | (1.6) |
Consolidated income from operations before income taxes | 158.4 | 150.5 | 296 | 283 |
Provision for income taxes | (45.9) | (56) | (93.9) | (102.2) |
Consolidated net income | 112.5 | 94.5 | 202.1 | 180.8 |
Less: Net income attributable to noncontrolling interests | (1.5) | (1.7) | (2.8) | (4.1) |
Net income attributable to Equifax | $ 111 | $ 92.8 | $ 199.3 | $ 176.7 |
Basic earnings per common share: | ||||
Net income attributable to Equifax | $ 0.94 | $ 0.76 | $ 1.67 | $ 1.45 |
Weighted-average shares used in computing basic earnings per share | 118.6 | 122 | 119 | 122 |
Diluted earnings per common share: | ||||
Net income attributable to Equifax | $ 0.92 | $ 0.75 | $ 1.64 | $ 1.42 |
Weighted-average shares used in computing diluted earnings per share | 120.9 | 124.3 | 121.3 | 124.4 |
Dividends per common share | $ 0.29 | $ 0.25 | $ 0.58 | $ 0.50 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 112.5 | $ 94.5 | $ 202.1 | $ 180.8 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 18.1 | 14.8 | (20.6) | 8.2 |
Change in unrecognized prior service cost and actuarial losses related to our pension and other postretirement benefit plans, net | 2.6 | 2.1 | 5.1 | 4.2 |
Change in cumulative loss from cash flow hedging transactions, net | 0 | 0.1 | 0.2 | 0.1 |
Comprehensive income | 133.2 | 111.5 | 186.8 | 193.3 |
Equifax Shareholders | ||||
Net income | 111 | 92.8 | 199.3 | 176.7 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 19 | 14.9 | (18.1) | 8.8 |
Change in unrecognized prior service cost and actuarial losses related to our pension and other postretirement benefit plans, net | 2.6 | 2.1 | 5.1 | 4.2 |
Change in cumulative loss from cash flow hedging transactions, net | 0 | 0.1 | 0.2 | 0.1 |
Comprehensive income | 132.6 | 109.9 | 186.5 | 189.8 |
Noncontrolling Interests | ||||
Net income | 1.5 | 1.7 | 2.8 | 4.1 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | (0.9) | (0.1) | (2.5) | (0.6) |
Change in unrecognized prior service cost and actuarial losses related to our pension and other postretirement benefit plans, net | 0 | 0 | 0 | 0 |
Change in cumulative loss from cash flow hedging transactions, net | 0 | 0 | 0 | 0 |
Comprehensive income | $ 0.6 | $ 1.6 | $ 0.3 | $ 3.5 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 84.2 | $ 128.3 |
Trade accounts receivable, net of allowance for doubtful accounts of $7.7 and $7.2 at June 30, 2015 and December 31, 2014, respectively | 368.2 | 337.2 |
Prepaid expenses | 46.2 | 35.7 |
Other current assets | 92.6 | 103.9 |
Total current assets | 591.2 | 605.1 |
Property and equipment: | ||
Capitalized internal-use software and system costs | 207 | 257.3 |
Data processing equipment and furniture | 212.4 | 203.3 |
Land, buildings and improvements | 194.2 | 194.8 |
Total property and equipment | 613.6 | 655.4 |
Accumulated depreciation and amortization | (298) | (354.8) |
Total property and equipment, net | 315.6 | 300.6 |
Goodwill | 2,600.4 | 2,606.8 |
Indefinite-lived intangible assets | 95 | 95.2 |
Purchased intangible assets, net | 895.5 | 953.9 |
Other assets, net | 87.8 | 112.6 |
Total assets | 4,585.5 | 4,674.2 |
Current liabilities: | ||
Short-term debt and current maturities of long-term debt | 335.1 | 380.4 |
Accounts payable | 35.8 | 20.3 |
Accrued expenses | 111.5 | 85.5 |
Accrued salaries and bonuses | 86.3 | 101.9 |
Deferred revenue | 74.1 | 73.4 |
Other current liabilities | 141.7 | 161.6 |
Total current liabilities | 784.5 | 823.1 |
Long-term debt | 1,145.8 | 1,145.7 |
Deferred income tax liabilities, net | 226.4 | 241.5 |
Long-term pension and other postretirement benefit liabilities | 168.1 | 173 |
Other long-term liabilities | 54.1 | 56.3 |
Total liabilities | $ 2,378.9 | 2,439.6 |
Commitments and Contingencies (see Note 5) | ||
Equifax shareholders' equity: | ||
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none | $ 0 | 0 |
Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at June 30, 2015 and December 31, 2014; Outstanding shares - 118.2 and 119.4 at June 30, 2015 and December 31, 2014, respectively | 236.6 | 236.6 |
Paid-in capital | 1,240.1 | 1,201.7 |
Retained earnings | 3,676.1 | 3,554.8 |
Accumulated other comprehensive loss | (448.2) | (435.4) |
Treasury stock, at cost, 70.5 shares and 69.3 shares at June 30, 2015 and December 31, 2014, respectively | (2,531.1) | (2,351.7) |
Stock held by employee benefits trusts, at cost, 0.6 shares at both June 30, 2015 and December 31, 2014 | (5.9) | (5.9) |
Total Equifax shareholders' equity | 2,167.6 | 2,200.1 |
Noncontrolling interests including redeemable noncontrolling interests | 39 | 34.5 |
Total equity | 2,206.6 | 2,234.6 |
Total liabilities and equity | $ 4,585.5 | $ 4,674.2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Trade accounts receivable, allowance for doubtful accounts | $ 7.7 | $ 7.2 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Authorized shares | 10 | 10 |
Preferred stock, Issued shares | 0 | 0 |
Common stock, par value | $ 1.25 | $ 1.25 |
Common stock, Authorized shares | 300 | 300 |
Common stock, Issued shares | 189.3 | 189.3 |
Common stock, Outstanding shares | 118.2 | 119.4 |
Treasury stock, shares | 70.5 | 69.3 |
Stock held by employee benefits trusts, shares | 0.6 | 0.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS BRL in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Operating activities: | ||
Consolidated net income | $ 202.1 | $ 180.8 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Cost-method Investments, Other than Temporary Impairment | 14.8 | 0 |
Depreciation and amortization | 100.8 | 101.9 |
Stock-based compensation expense | 24.5 | 19.6 |
Excess tax benefits from stock-based compensation plans | (17.1) | (10.4) |
Deferred income taxes | (18.6) | 2.8 |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Accounts receivable, net | (34.8) | (27.8) |
Prepaid expenses and other current assets | 2.7 | (21) |
Other assets | 4.4 | 2.5 |
Current liabilities, excluding debt | 9.4 | (26) |
Other long-term liabilities, excluding debt | 1.4 | 2.2 |
Cash provided by operating activities | 289.6 | 224.6 |
Investing activities: | ||
Capital expenditures | (55.2) | (37.7) |
Acquisitions, net of cash acquired | (4.4) | (333.7) |
Investment in unconsolidated affiliates, net | (0.1) | (3) |
Cash used in investing activities | (59.7) | (374.4) |
Financing activities: | ||
Net short-term (repayments) borrowings | (45.2) | 131.4 |
Repayments of Long-term Debt | 0 | (15) |
Treasury stock purchases | (182.2) | (73.4) |
Dividends paid to Equifax shareholders | (69) | (61.2) |
Dividends paid to noncontrolling interests | (6) | (6.3) |
Proceeds from exercise of stock options | 17.2 | 24.5 |
Excess tax benefits from stock-based compensation plans | 17.1 | 10.4 |
Other | 0 | 0.1 |
Cash (used in) provided by financing activities | (268.1) | 10.5 |
Effect of foreign currency exchange rates on cash and cash equivalents | (5.9) | (4.9) |
Decrease in cash and cash equivalents | (44.1) | (144.2) |
Cash and cash equivalents, beginning of period | 128.3 | 235.9 |
Cash and cash equivalents, end of period | $ 84.2 | $ 91.7 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AND OTHER COMPREHENSIVE INCOME - 6 months ended Jun. 30, 2015 - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Stock Held By Employee Benefits Trusts | Noncontrolling Interests | ||
Beginning Balance, at Dec. 31, 2014 | $ 2,234.6 | $ 236.6 | $ 1,201.7 | $ 3,554.8 | $ (435.4) | $ (2,351.7) | $ (5.9) | $ 34.5 | ||
Beginning Balance (in shares) at Dec. 31, 2014 | 119.4 | |||||||||
Net income | 202.1 | $ 0 | 0 | 199.3 | 0 | 0 | 0 | 2.8 | ||
Other comprehensive income | (15.3) | 0 | 0 | 0 | (12.8) | 0 | 0 | (2.5) | ||
Shares issued under stock and benefit plans, net of minimum tax withholdings | $ (0.7) | $ 0 | (15) | 0 | 0 | 14.3 | 0 | 0 | ||
Number of treasury shares repurchased | (1.9) | (1.9) | [1] | |||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings (in shares) | 0.7 | |||||||||
Treasury stock purchased under share repurchase program ($94.94 per share) | [1] | $ (193.7) | $ 0 | 0 | 0 | 0 | (193.7) | 0 | 0 | |
Cash dividends ($0.58 per share) | (69.3) | 0 | 0 | (69.3) | 0 | 0 | 0 | 0 | ||
Dividends paid to employee benefits trusts | 0.3 | 0 | 0.3 | 0 | 0 | 0 | 0 | 0 | ||
Stock-based compensation expense | 24.5 | 0 | 24.5 | 0 | 0 | 0 | 0 | 0 | ||
Tax effects of stock-based compensation plans | 17.1 | 0 | 17.1 | 0 | 0 | 0 | 0 | 0 | ||
Contributions from noncontrolling interests | 1.5 | 0 | 0 | 0 | 0 | 0 | 0 | 1.5 | ||
Redeemable noncontrolling interest adjustment | 0 | 0 | 0 | (8.7) | 0 | 0 | 0 | 8.7 | ||
Dividends paid to noncontrolling interests | (6) | 0 | 0 | 0 | 0 | 0 | 0 | (6) | ||
Other | [2] | 11.5 | 0 | 11.5 | 0 | 0 | 0 | 0 | 0 | |
Ending Balance, at Jun. 30, 2015 | $ 2,206.6 | $ 236.6 | $ 1,240.1 | $ 3,676.1 | $ (448.2) | $ (2,531.1) | $ (5.9) | $ 39 | ||
Ending Balance (in shares) at Jun. 30, 2015 | 118.2 | |||||||||
[1] | We repurchased 1.9 million shares for $182.2 million during the first half of 2015. At June 30, 2015, $681.4 million was available for future purchases of common stock under our share repurchase authorization. | |||||||||
[2] | At June 30, 2015, the paid-in capital includes the reversal of the $11.5 million holdback related to the accelerated share repurchase program discussed in Note 1. |
CONSOLIDATED STATEMENT OF CHAN8
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AND OTHER COMPREHENSIVE INCOME (Parenthetical) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Number of treasury shares repurchased | 900 | 1,900 |
Treasury shares repurchased | $ 92.3 | $ 182.2 |
Common stock authorized amount for future purchases | $ 681.4 | $ 681.4 |
Cash dividends, per share | $ 0.29 | $ 0.58 |
Treasury stock purchased, per share | $ 98.77 | $ 94.94 |
Accelerated Share Repurchase Program | ||
Accelerated Share Repurchase Program, Adjustment | $ 0 | $ 11.5 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Foreign currency translation | $ (188.4) | $ (170.3) |
Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $146.7 and $150.1 at June 30, 2015 and December 31, 2014, respectively | (258.2) | (263.3) |
Cash flow hedging transactions, net of accumulated tax of $1.0 and $1.1 at June 30, 2015 and December 31, 2014, respectively | (1.6) | (1.8) |
Accumulated other comprehensive loss | $ (448.2) | $ (435.4) |
ACCUMULATED OTHER COMPREHENSI10
ACCUMULATED OTHER COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Unrecognized actuarial losses and prior service cost related to pension and other postretirement benefit plans, accumulated tax | $ 146.7 | $ 150.1 |
Cash flow hedging transactions, accumulated tax | $ 1 | $ 1.1 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations. We collect, organize and manage various types of financial, demographic, employment and marketing information. Our products and services enable businesses to make credit and service decisions, manage their portfolio risk, automate or outsource certain human resources, employment tax and payroll-related 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 June 30, 2015 , we operated in the following countries: Argentina, Canada, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru, Portugal, Spain, the United Kingdom, or U.K., Uruguay, and the United States of America, or U.S. We also maintain support operations in the Republic of Ireland. We offer consumer credit services in Russia and India through joint ventures and also 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 actual consumer data, including credit, employment, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting institutions, public record information (including bankruptcies, liens and judgments), 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. 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 Regulation S-X. To understand our complete financial position and results, as defined by GAAP, 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, 2014 (“ 2014 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. Certain prior year amounts have been reclassified to conform to current period presentation. Earnings Per Share. Our basic earnings per share, or EPS, is calculated as net income attributable to Equifax divided by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Weighted-average shares outstanding (basic) 118.6 122.0 119.0 122.0 Effect of dilutive securities: Stock options and restricted stock units 2.3 2.3 2.3 2.4 Weighted-average shares outstanding (diluted) 120.9 124.3 121.3 124.4 For the three and six months ended June 30, 2015 and 2014 , the stock options that were anti-dilutive were not material. Accelerated Share Repurchase Program. On October 24, 2014, we entered into an accelerated share repurchase(“ASR”) program to repurchase shares of our common stock under our approved share repurchase program. Under the ASR program, the number of shares to be repurchased is based generally on the daily volume weighted average price of our common stock during the term of the ASR program. On October 24, 2014, we paid $115 million in exchange for an initial delivery of 1.4 million shares to the Company, subject to a 10% , or $11.5 million , holdback. On February 4, 2015, we settled the ASR by receiving approximately 0.02 million additional shares, for a total shares received of 1.42 million from the ASR. Financial Instruments. Our financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable and short- and long-term debt. The carrying amounts of these items, other than long-term debt, approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for publicly traded instruments, and for non-publicly traded instruments through valuation techniques depending on the specific characteristics of the debt instrument. As of June 30, 2015 and December 31, 2014 , the fair value of our long-term debt, based on observable inputs was $1.2 billion and $1.3 billion , respectively compared to its carrying value of $1.1 billion and $1.1 billion , respectively. Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing the asset or liability. We use a three level fair value hierarchy to prioritize the inputs used in valuation techniques between observable inputs that reflect quoted prices in active markets, inputs other than quoted prices with observable market data and unobservable data (e.g., a company’s own data). The following table presents items measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using: Description Fair Value of Assets (Liabilities) at June 30, 2015 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) $ 24.6 $ 24.6 $ — $ — Deferred Compensation Plan Liability (1) (24.6 ) — (24.6 ) — Total $ — $ 24.6 $ (24.6 ) $ — (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 partcipants’ investment selections and is valued at daily quoted market prices. Other Current Assets. Other current assets on our Consolidated Balance Sheets primarily represent amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of June 30, 2015 , these assets were approximately $40.4 million , with a fully offsetting 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 receivables related to life insurance policies covering certain officers of the Company, as well as 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 $16.7 million at June 30, 2015 , 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 ASC 810. 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 our investment in unconsolidated affiliates, our cost method investment in Brazil, assets related to life insurance policies covering certain officers of the Company, and employee benefit trust assets. Cost Method Investment. We monitor the status of our cost method 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 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 carrying value of the investment exceeds the estimated fair value, an impairment loss is recorded based on the amount by which the investment’s carrying amount exceeds its fair value. We recorded an impairment of our cost method investment in the second quarter of 2015. See Note 2 for further discussion. Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the offset to other current assets, related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of June 30, 2015 , these funds were approximately $40.4 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 interest expense, accrued employee benefits, accrued taxes, accrued payroll, and accrued legal expenses. Recent Accounting Pronouncements. Cloud Computing Arrangements. In April 2015, the FASB issued ASU 2015-05 “Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Fees Paid in a cloud Computing Arrangement.” The update provides criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. The guidance becomes effective for fiscal years and interim reporting periods beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations and cash flows. Presentation of Debt Issuance Costs. In April 2015, the FASB issued ASU 2015-03 “Interest - Imputation of Interest.” The guidance modified the presentation of debt issuance costs, to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance becomes effective for fiscal years and interim reporting periods beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations and cash flows. Discontinued Operations. In April 2014, the FASB issued ASU 2014-08 “Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The guidance modified the definition of a discontinued operation to include disposals that qualify as a strategic shift that has or will have a major effect on an entity’s operations and financial results. The guidance became effective for fiscal years and interim reporting periods beginning after December 15, 2014, with early adoption permitted. This statement did not have a material impact on our results of consolidated operations or financial position. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers." ASU 2014-9 is a comprehensive new revenue recognition model 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 for those goods or services. ASU 2014-9 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer 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 by one year to December 15, 2017 for interim 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. The Company is evaluating the potential effects of the adoption of ASU 2014-9 on its Consolidated Financial Statements. Going Concern. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern". ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for annual periods and interim periods within that period, beginning after December 15, 2016. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations and cash flows. |
IMPAIRMENT OF INVESTMENT IN BOA
IMPAIRMENT OF INVESTMENT IN BOA VISTA SERVICOS (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
IMPAIRMENT OF COST METHOD INVESTMENT [Abstract] | |
Schedule of Cost Method Investments [Table Text Block] | IMPAIRMENT OF INVESTMENT IN BOA VISTA SERVICOS We hold a 15% equity interest in Boa Vista Servicos ("BVS"), which is the second largest consumer and commercial credit information company in Brazil. This investment is recorded in other assets, net, on the Consolidated Balance Sheets and is accounted for using the cost method. As of December 31, 2014 and March 31, 2015, our investment in BVS was recorded at 90 million Brazilian Reais, which approximated the fair value. The fair value was determined by management using income and market approaches. During the second quarter of 2015, management updated the financial projections. The updated projections, along with the continued weakness in the Brazilian consumer and small commercial credit markets were considered indicators of impairment. Management of Equifax prepared an analysis to estimate the fair value of our investment at June 30, 2015 and estimated that value to be 44 million Reais ( $14.1 million ). As a result, we decreased the carrying value of our investment and recorded a loss of 46 million Reais ( $14.8 million ) which is included in other (expense) income, net, in the Consolidated Statements of Income. Additionally, the carrying value has decreased by $36.4 million related to the foreign exchange impact since 2011, which is included in the foreign currency translation adjustments in accumulated other comprehensive income. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill. Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment tests as of September 30. In January 2015, the Personal Solutions business in the United Kingdom was consolidated into the North America Personal Solutions segment. The change was driven by an enterprise wide strategy to maximize the penetration of our products and services in our targeted markets. We determined that market focus and operating efficiency could be further improved by reorganizing and consolidating the United States, Canada and the United Kingdom Personal Solutions operating activities into one segment called Personal Solutions. To reflect this new organizational structure, we have reallocated goodwill from the Europe reporting unit to the Personal Solutions reporting unit based on the relative fair values of the respective portions of Europe. A change in reporting units requires that goodwill be tested for impairment. During the first quarter of 2015, we performed a goodwill impairment test prior to and following the reallocation of goodwill for Europe and Personal Solutions, which resulted in no impairment. Changes in the amount of goodwill for the six months ended June 30, 2015 , are as follows: U.S. International Workforce Personal Total (In millions) Balance, December 31, 2014 (1) $ 1,120.6 $ 487.0 $ 907.6 $ 91.6 $ 2,606.8 Acquisitions — — — — — Adjustments to initial purchase price allocation — — — — — Foreign currency translation — (7.3 ) — 0.9 (6.4 ) Tax benefits of stock options exercised — — — — — Balance, June 30, 2015 $ 1,120.6 $ 479.7 $ 907.6 $ 92.5 $ 2,600.4 (1) The December 31, 2014 balances have been recast to reflect the new organizational structure. As of December 31, 2014, the Personal Solutions goodwill includes $75.0 million of goodwill from the Europe reporting unit. 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. Our indefinite-lived intangible asset carrying amounts did not change materially during the three and six months ended June 30, 2015 . 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 files acquired primarily through the purchase of independent credit reporting agencies in the U.S. and 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 2014 Form 10-K. Purchased intangible assets at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite-lived intangible assets: (In millions) Purchased data files $ 672.6 $ (223.7 ) $ 448.9 $ 692.0 $ (218.8 ) $ 473.2 Acquired software and technology 54.0 (31.5 ) 22.5 53.9 (26.4 ) 27.5 Customer relationships 572.4 (220.8 ) 351.6 570.7 (204.3 ) 366.4 Reacquired rights 73.3 (32.8 ) 40.5 73.3 (26.3 ) 47.0 Proprietary database 7.4 (5.6 ) 1.8 7.4 (5.4 ) 2.0 Non-compete agreements 26.9 (16.2 ) 10.7 27.0 (11.8 ) 15.2 Trade names and other intangible assets 50.9 (31.4 ) 19.5 51.1 (28.5 ) 22.6 Total definite-lived intangible assets $ 1,457.5 $ (562.0 ) $ 895.5 $ 1,475.4 $ (521.5 ) $ 953.9 Amortization expense from continuing operations related to purchased intangible assets was $31.2 million and $32.6 million during the three months ended June 30, 2015 and 2014 , respectively. Amortization expense from continuing operations related to purchased intangible assets was $ 62.5 million and $ 65.3 million during the six months ended June 30, 2015 and 2014 , respectively. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt outstanding at June 30, 2015 and December 31, 2014 was as follows: June 30, 2015 December 31, 2014 (In millions) Commercial paper $ 333.3 $ 379.7 Notes, 6.30%, due July 2017 272.5 272.5 Notes, 3.30%, due Dec 2022 500.0 500.0 Debentures, 6.90%, due July 2028 125.0 125.0 Notes, 7.00%, due July 2037 250.0 250.0 Other 1.8 0.7 Total debt 1,482.6 1,527.9 Less short-term debt and current maturities (335.1 ) (380.4 ) Less unamortized discounts (1.7 ) (1.8 ) Total long-term debt, net $ 1,145.8 $ 1,145.7 Senior Credit Facility. We are party to a $750.0 million unsecured revolving credit facility, which we refer to as the Senior Credit Facility, with a group of financial institutions. The Senior Credit Facility also has an accordion feature that allows us to request an increase in the total commitment to $1.0 billion . Borrowings may be used for general corporate purposes, including working capital, capital expenditures, acquisitions and share repurchase programs. The Senior Credit Facility is scheduled to expire in December 2017 . Availability of the Senior Credit Facility for borrowings 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 principal amount of our commercial paper notes. As of June 30, 2015 , there were $1.5 million of letters of credit outstanding. As of June 30, 2015 , there were no outstanding borrowings under this facility and $415.3 million was available for borrowing. Commercial Paper Program. Our $750.0 million commercial paper program has been established through the private placement of commercial paper notes from time-to-time. Maturities of commercial paper can range from overnight to 397 days. The commercial paper program is supported by our Senior Credit Facility and, pursuant to our existing Board of Directors authorization, the total amount of commercial paper which may be issued is reduced by the amount of any outstanding borrowings under our Senior Credit Facility. At June 30, 2015 , $333.3 million in commercial paper notes was outstanding, all with maturities of less than 90 days . For additional information about our debt agreements, see Note 6 of the Notes to Consolidated Financial Statements in our 2014 Form 10-K. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Data Processing, Outsourcing Services and Other Agreements. We have separate agreements with IBM, Tata Consultancy Services and others to outsource portions of our computer data processing operations, applications development, maintenance and related functions and to provide certain other administrative and operational services. The agreements expire between 2015 and 2023 . The estimated aggregate minimum contractual obligation remaining under these agreements was approximately $60 million as of December 31, 2014 , with no future year’s minimum contractual obligation expected to exceed approximately $40 million . Annual payment obligations in regard to these agreements vary due to factors such as the volume of data processed; changes in our servicing needs as a result of new product offerings, acquisitions or 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 a significant penalty. During the first quarter of 2015, we amended our agreement with IBM and signed an agreement with Oracle. These agreements increased our minimum contractual obligation to approximately $100 million as of June 30, 2015. Guarantees and General Indemnifications. We may issue standby letters of credit and performance bonds in the normal course of business. The aggregate notional amount of all performance bonds and standby letters of credit was not material at June 30, 2015 , and all have a remaining maturity of one year or less. We may issue other guarantees in ordinary course of business. The maximum potential future payments we could be required to make under the guarantees in ordinary course of business is not material at June 30, 2015 . We have agreed to guarantee the liabilities and performance obligations (some of which have limitations) of a certain debt collections and recovery management VIE under its commercial agreements. We have agreed to standard indemnification clauses in many of our lease agreements for office space, covering such things as tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. Certain of our credit agreements include provisions which require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to certain changes in law or regulations. In conjunction with certain transactions, such as sales or purchases of operating assets or services in the ordinary course of business, or the disposition of certain assets or businesses, we sometimes provide routine indemnifications, the terms of which range in duration and sometimes are not limited. Additionally, the Company has entered into indemnification agreements with its directors and executive officers to indemnify such individuals to the fullest extent permitted by applicable law against liabilities that arise by reason of their status as directors or officers. The Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations. We cannot reasonably estimate our potential future payments under the guarantees and indemnities and related provisions described above because we cannot predict when and under what circumstances these provisions may be triggered. We had no accruals related to guarantees and indemnities on our Consolidated Balance Sheets at June 30, 2015 or December 31, 2014 . Contingencies. We are involved in legal and regulatory matters, government investigations, claims and litigation arising in the ordinary course of business. We periodically assess our exposure related to these matters based on the information which is available. We have recorded accruals in our Consolidated Financial Statements for those matters in which it is probable that we have incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. These amounts do not have a material impact on our Consolidated Financial Statements, either individually or in the aggregate. For additional information about these and other commitments and contingencies, see Note 7 of the Notes to Consolidated Financial Statements in our 2014 Form 10-K. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We are subject to U.S. federal, state and international income taxes. We are generally no longer subject to federal, state, or international income tax examinations by tax authorities for years ending prior to December 31, 2009, with 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 $4.7 million . Effective Tax Rate . Our effective income tax rate was 29.0% for the three months ended June 30, 2015 , down from 37.2% for the same period in 2014. The effective income tax rate was 31.7% for the six months ended June 30, 2015, as compared to 36.1% for the same period in 2014. In 2015, the income tax rates were lower due to state income tax benefits generated from a tax law change enacted during the second quarter of 2015, and a more favorable foreign rate differential compared to 2014. The state law changes resulted in a discrete tax benefit of $8.6 million and a tax rate impact of 5.4% for the second quarter of 2015 and 2.9% for the six months ended June 30, 2015. |
ACCUMULATED OTHER COMPREHENSI17
ACCUMULATED OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in accumulated other comprehensive income by component, after tax, for the six months ended June 30, 2015 , are as follows: Foreign Pension and other Cash flow Total (In millions) Balance, December 31, 2014 $ (170.3 ) $ (263.3 ) $ (1.8 ) $ (435.4 ) Other comprehensive income before reclassifications (18.1 ) 0.1 0.2 (17.8 ) Amounts reclassified from accumulated other comprehensive income — 5.0 — 5.0 Net current-period other comprehensive income (18.1 ) 5.1 0.2 (12.8 ) Balance, June 30, 2015 $ (188.4 ) $ (258.2 ) $ (1.6 ) $ (448.2 ) Reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2015 , are as follows: Details about accumulated other Amount reclassified Affected line item in (In millions) Amortization of pension and other postretirement plan items: Prior service cost $ 0.2 (1) Recognized actuarial loss (8.2 ) (1) (8.0 ) Total before tax 3.0 Tax benefit $ (5.0 ) Net of tax (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). Changes in accumulated other comprehensive income related to noncontrolling interests were not material as of June 30, 2015 . |
BENEFIT PLANS
BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS We sponsor defined benefit pension plans and defined contribution plans. For additional information about our benefit plans, see Note 11 of the Notes to Consolidated Financial Statements in our 2014 Form 10-K. The following table provides the components of net periodic benefit cost, included in selling, general and administrative expenses in the Consolidated Statements of Income, for the three and six months ended June 30, 2015 and 2014 : Pension Benefits Other Benefits Three Months Ended June 30, 2015 2014 2015 2014 (In millions) Service cost $ 1.1 $ 1.1 $ 0.1 $ 0.1 Interest cost 7.7 7.8 0.2 0.2 Expected return on plan assets (9.9 ) (9.9 ) (0.4 ) (0.4 ) Amortization of prior service cost 0.2 0.2 (0.3 ) (0.3 ) Recognized actuarial loss 4.0 3.2 0.1 0.1 Total net periodic benefit cost $ 3.1 $ 2.4 $ (0.3 ) $ (0.3 ) Pension Benefits Other Benefits Six months ended June 30, 2015 2014 2015 2014 (In millions) Service cost $ 2.2 $ 2.2 $ 0.2 $ 0.2 Interest cost 15.4 15.6 0.4 0.4 Expected return on plan assets (20.0 ) (19.8 ) (0.8 ) (0.8 ) Amortization of prior service cost 0.4 0.4 (0.6 ) (0.6 ) Recognized actuarial loss 8.0 6.4 0.2 0.2 Total net periodic benefit cost $ 6.0 $ 4.8 $ (0.6 ) $ (0.6 ) |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES In the first quarter of 2015, we recorded a $20.7 million restructuring charge ( $13.2 million , net of tax) all of which was recorded in selling, general and administrative expenses on our Consolidated Statements of Income. This charge resulted from our continuing efforts to realign our internal resources to support the Company’s strategic objectives and increase the integration of our global operations. The restructuring charge primarily relates to a reduction of headcount of approximately 300 positions resulting in a charge of $16.2 million , which was accrued for under existing severance plans or statutory requirements. The remainder was related to costs associated with real estate exits of $1.2 million and other integration costs of $3.3 million . Generally, severance benefits for our U.S. employees are paid through monthly payroll according to the number of weeks of severance benefit provided to the employee, while our international employees receive a lump sum severance payment for their benefit. Payments related to the above restructuring charges will be substantially completed within 2015. Payments related to the above restructuring charges totaled $7.0 million and $11.1 million for the three and six months ended June 30, 2015, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Organizational Realignment. In January 2015, the personal solutions business in the United Kingdom was consolidated into the North America Personal Solutions segment. The change was driven by an enterprise wide strategy to maximize the penetration of our products and services in our targeted markets. We determined that market focus and operating efficiency could be further improved by reorganizing and consolidating the United States, Canada and the United Kingdom Personal Solutions operating activities into one segment called Personal Solutions. As a result, we modified our segment reporting effective in the first quarter of 2015. Our financial results for the three and six months ended June 30, 2015 , have been recast below to reflect our new organizational structure. Reportable Segments. We manage our business and report our financial results through the following four reportable segments, which are the same as our operating segments: - U.S. Information Solutions ("USIS") - International - Workforce Solutions - Personal 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 2014 Form 10-K. We evaluate the performance of these reportable segments based on their operating revenues, operating income and operating margins, excluding 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. All transactions between segments are accounted for at cost, and no timing differences occur between segments. A summary of segment products and services is as follows: 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 origination information; financial marketing services; and identity management. International. This segment includes information services products, which includes consumer and commercial services (such as credit and financial information, credit scoring and credit modeling services), credit and other marketing products and services. In Europe and Latin America, we also provide information, technology and services to support debt collections and recovery management. Workforce Solutions. This segment includes employment, income and social security number verification services as well as complementary payroll-based transaction services and employment tax management services. Personal Solutions. This segment includes credit information, credit monitoring and identity theft protection products sold directly to consumers via the Internet and in various hard-copy formats in the U.S., Canada, and the U.K. Operating revenue and operating income by operating segment during the three and six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended (In millions) June 30, June 30, Operating revenue: 2015 2014 2015 2014 U.S. Information Solutions $ 315.7 $ 281.1 $ 614.4 $ 542.3 International 148.4 150.0 287.2 290.8 Workforce Solutions 146.3 119.4 295.0 239.1 Personal Solutions 67.7 63.4 133.3 126.2 Total operating revenue $ 678.1 $ 613.9 $ 1,329.9 $ 1,198.4 Three Months Ended Six Months Ended (In millions) June 30, June 30, Operating income: 2015 2014 2015 2014 U.S. Information Solutions $ 132.8 $ 111.1 $ 259.4 $ 208.1 International 29.5 32.8 57.5 61.8 Workforce Solutions 56.0 40.5 116.0 79.2 Personal Solutions 18.7 19.6 36.7 37.5 General Corporate Expense (48.5 ) (36.6 ) (126.9 ) (67.3 ) Total operating income $ 188.5 $ 167.4 $ 342.7 $ 319.3 June 30, December 31, (In millions) 2015 2014 Total assets: U.S. Information Solutions $ 1,962.3 $ 1,983.9 International 906.2 983.7 Workforce Solutions 1,272.3 1,271.3 Personal Solutions 122.3 123.8 General Corporate 322.4 311.5 Total assets $ 4,585.5 $ 4,674.2 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations. We collect, organize and manage various types of financial, demographic, employment and marketing information. Our products and services enable businesses to make credit and service decisions, manage their portfolio risk, automate or outsource certain human resources, employment tax and payroll-related 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 June 30, 2015 , we operated in the following countries: Argentina, Canada, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru, Portugal, Spain, the United Kingdom, or U.K., Uruguay, and the United States of America, or U.S. We also maintain support operations in the Republic of Ireland. We offer consumer credit services in Russia and India through joint ventures and also 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 actual consumer data, including credit, employment, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting institutions, public record information (including bankruptcies, liens and judgments), 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. |
Basis of Presentation | Basis of Presentation. The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, the instructions to Form 10-Q and applicable sections of Regulation S-X. To understand our complete financial position and results, as defined by GAAP, 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, 2014 (“ 2014 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. Certain prior year amounts have been reclassified to conform to current period presentation. |
Earnings Per Share | Earnings Per Share. Our basic earnings per share, or EPS, is calculated as net income attributable to Equifax divided by the weighted-average number of common shares outstanding during the 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. |
Accelerated Share Repurchase Program | Under the ASR program, the number of shares to be repurchased is based generally on the daily volume weighted average price of our common stock during the term of the ASR program. |
Financial Instruments | Financial Instruments. Our financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable and short- and long-term debt. The carrying amounts of these items, other than long-term debt, approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for publicly traded instruments, and for non-publicly traded instruments through valuation techniques depending on the specific characteristics of the debt instrument. |
Fair Value Measurements | Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing the asset or liability. We use a three level fair value hierarchy to prioritize the inputs used in valuation techniques between observable inputs that reflect quoted prices in active markets, inputs other than quoted prices with observable market data and unobservable data (e.g., a company’s own data). The following table presents items measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using: Description Fair Value of Assets (Liabilities) at June 30, 2015 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) $ 24.6 $ 24.6 $ — $ — Deferred Compensation Plan Liability (1) (24.6 ) — (24.6 ) — Total $ — $ 24.6 $ (24.6 ) $ — (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 partcipants’ investment selections and is valued at daily quoted market prices. |
Other Current Assets | Other Current Assets. Other current assets on our Consolidated Balance Sheets primarily represent amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of June 30, 2015 , these assets were approximately $40.4 million , with a fully offsetting 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 receivables related to life insurance policies covering certain officers of the Company, as well as certain current tax accounts. |
Variable Interest Entities | 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 $16.7 million at June 30, 2015 , 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 ASC 810. 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. Other assets on our Consolidated Balance Sheets primarily represents our investment in unconsolidated affiliates, our cost method investment in Brazil, assets related to life insurance policies covering certain officers of the Company, and employee benefit trust assets. Cost Method Investment. We monitor the status of our cost method 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 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 carrying value of the investment exceeds the estimated fair value, an impairment loss is recorded based on the amount by which the investment’s carrying amount exceeds its fair value. |
Other Current Liabilities | Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the offset to other current assets, related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of June 30, 2015 , these funds were approximately $40.4 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 interest expense, accrued employee benefits, accrued taxes, accrued payroll, and accrued legal expenses. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Cloud Computing Arrangements. In April 2015, the FASB issued ASU 2015-05 “Intangibles—Goodwill and Other—Internal-Use Software: Customer's Accounting for Fees Paid in a cloud Computing Arrangement.” The update provides criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. The guidance becomes effective for fiscal years and interim reporting periods beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations and cash flows. Presentation of Debt Issuance Costs. In April 2015, the FASB issued ASU 2015-03 “Interest - Imputation of Interest.” The guidance modified the presentation of debt issuance costs, to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance becomes effective for fiscal years and interim reporting periods beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations and cash flows. Discontinued Operations. In April 2014, the FASB issued ASU 2014-08 “Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The guidance modified the definition of a discontinued operation to include disposals that qualify as a strategic shift that has or will have a major effect on an entity’s operations and financial results. The guidance became effective for fiscal years and interim reporting periods beginning after December 15, 2014, with early adoption permitted. This statement did not have a material impact on our results of consolidated operations or financial position. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers." ASU 2014-9 is a comprehensive new revenue recognition model 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 for those goods or services. ASU 2014-9 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer 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 by one year to December 15, 2017 for interim 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. The Company is evaluating the potential effects of the adoption of ASU 2014-9 on its Consolidated Financial Statements. Going Concern. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern". ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for annual periods and interim periods within that period, beginning after December 15, 2016. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations and cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Reconciliation of Weighted-Average Outstanding Shares used in Calculations of Basic and Diluted EPS | A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Weighted-average shares outstanding (basic) 118.6 122.0 119.0 122.0 Effect of dilutive securities: Stock options and restricted stock units 2.3 2.3 2.3 2.4 Weighted-average shares outstanding (diluted) 120.9 124.3 121.3 124.4 |
Items Measured at Fair Value on Recurring Basis | 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 June 30, 2015 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) $ 24.6 $ 24.6 $ — $ — Deferred Compensation Plan Liability (1) (24.6 ) — (24.6 ) — Total $ — $ 24.6 $ (24.6 ) $ — (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 partcipants’ investment selections and is valued at daily quoted market prices. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Amount of Goodwill | Changes in the amount of goodwill for the six months ended June 30, 2015 , are as follows: U.S. International Workforce Personal Total (In millions) Balance, December 31, 2014 (1) $ 1,120.6 $ 487.0 $ 907.6 $ 91.6 $ 2,606.8 Acquisitions — — — — — Adjustments to initial purchase price allocation — — — — — Foreign currency translation — (7.3 ) — 0.9 (6.4 ) Tax benefits of stock options exercised — — — — — Balance, June 30, 2015 $ 1,120.6 $ 479.7 $ 907.6 $ 92.5 $ 2,600.4 (1) The December 31, 2014 balances have been recast to reflect the new organizational structure. As of December 31, 2014, the Personal Solutions goodwill includes $75.0 million of goodwill from the Europe reporting unit. |
Purchased Intangible Assets | Purchased intangible assets at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite-lived intangible assets: (In millions) Purchased data files $ 672.6 $ (223.7 ) $ 448.9 $ 692.0 $ (218.8 ) $ 473.2 Acquired software and technology 54.0 (31.5 ) 22.5 53.9 (26.4 ) 27.5 Customer relationships 572.4 (220.8 ) 351.6 570.7 (204.3 ) 366.4 Reacquired rights 73.3 (32.8 ) 40.5 73.3 (26.3 ) 47.0 Proprietary database 7.4 (5.6 ) 1.8 7.4 (5.4 ) 2.0 Non-compete agreements 26.9 (16.2 ) 10.7 27.0 (11.8 ) 15.2 Trade names and other intangible assets 50.9 (31.4 ) 19.5 51.1 (28.5 ) 22.6 Total definite-lived intangible assets $ 1,457.5 $ (562.0 ) $ 895.5 $ 1,475.4 $ (521.5 ) $ 953.9 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Outstanding | Debt outstanding at June 30, 2015 and December 31, 2014 was as follows: June 30, 2015 December 31, 2014 (In millions) Commercial paper $ 333.3 $ 379.7 Notes, 6.30%, due July 2017 272.5 272.5 Notes, 3.30%, due Dec 2022 500.0 500.0 Debentures, 6.90%, due July 2028 125.0 125.0 Notes, 7.00%, due July 2037 250.0 250.0 Other 1.8 0.7 Total debt 1,482.6 1,527.9 Less short-term debt and current maturities (335.1 ) (380.4 ) Less unamortized discounts (1.7 ) (1.8 ) Total long-term debt, net $ 1,145.8 $ 1,145.7 |
ACCUMULATED OTHER COMPREHENSI25
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive income by component, after tax, for the six months ended June 30, 2015 , are as follows: Foreign Pension and other Cash flow Total (In millions) Balance, December 31, 2014 $ (170.3 ) $ (263.3 ) $ (1.8 ) $ (435.4 ) Other comprehensive income before reclassifications (18.1 ) 0.1 0.2 (17.8 ) Amounts reclassified from accumulated other comprehensive income — 5.0 — 5.0 Net current-period other comprehensive income (18.1 ) 5.1 0.2 (12.8 ) Balance, June 30, 2015 $ (188.4 ) $ (258.2 ) $ (1.6 ) $ (448.2 ) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2015 , are as follows: Details about accumulated other Amount reclassified Affected line item in (In millions) Amortization of pension and other postretirement plan items: Prior service cost $ 0.2 (1) Recognized actuarial loss (8.2 ) (1) (8.0 ) Total before tax 3.0 Tax benefit $ (5.0 ) Net of tax (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). |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The following table provides the components of net periodic benefit cost, included in selling, general and administrative expenses in the Consolidated Statements of Income, for the three and six months ended June 30, 2015 and 2014 : Pension Benefits Other Benefits Three Months Ended June 30, 2015 2014 2015 2014 (In millions) Service cost $ 1.1 $ 1.1 $ 0.1 $ 0.1 Interest cost 7.7 7.8 0.2 0.2 Expected return on plan assets (9.9 ) (9.9 ) (0.4 ) (0.4 ) Amortization of prior service cost 0.2 0.2 (0.3 ) (0.3 ) Recognized actuarial loss 4.0 3.2 0.1 0.1 Total net periodic benefit cost $ 3.1 $ 2.4 $ (0.3 ) $ (0.3 ) Pension Benefits Other Benefits Six months ended June 30, 2015 2014 2015 2014 (In millions) Service cost $ 2.2 $ 2.2 $ 0.2 $ 0.2 Interest cost 15.4 15.6 0.4 0.4 Expected return on plan assets (20.0 ) (19.8 ) (0.8 ) (0.8 ) Amortization of prior service cost 0.4 0.4 (0.6 ) (0.6 ) Recognized actuarial loss 8.0 6.4 0.2 0.2 Total net periodic benefit cost $ 6.0 $ 4.8 $ (0.6 ) $ (0.6 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Operating Revenue, Operating Income and Total Assets by Operating Segment | Operating revenue and operating income by operating segment during the three and six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended (In millions) June 30, June 30, Operating revenue: 2015 2014 2015 2014 U.S. Information Solutions $ 315.7 $ 281.1 $ 614.4 $ 542.3 International 148.4 150.0 287.2 290.8 Workforce Solutions 146.3 119.4 295.0 239.1 Personal Solutions 67.7 63.4 133.3 126.2 Total operating revenue $ 678.1 $ 613.9 $ 1,329.9 $ 1,198.4 Three Months Ended Six Months Ended (In millions) June 30, June 30, Operating income: 2015 2014 2015 2014 U.S. Information Solutions $ 132.8 $ 111.1 $ 259.4 $ 208.1 International 29.5 32.8 57.5 61.8 Workforce Solutions 56.0 40.5 116.0 79.2 Personal Solutions 18.7 19.6 36.7 37.5 General Corporate Expense (48.5 ) (36.6 ) (126.9 ) (67.3 ) Total operating income $ 188.5 $ 167.4 $ 342.7 $ 319.3 June 30, December 31, (In millions) 2015 2014 Total assets: U.S. Information Solutions $ 1,962.3 $ 1,983.9 International 906.2 983.7 Workforce Solutions 1,272.3 1,271.3 Personal Solutions 122.3 123.8 General Corporate 322.4 311.5 Total assets $ 4,585.5 $ 4,674.2 |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Weighted-Average Outstanding Shares used in Calculations of Basic and Diluted EPS) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure Reconciliation Of Weighted Average Outstanding Shares Used In Calculations Of Basic and Diluted E P S [Abstract] | ||||
Weighted-average shares outstanding (basic) | 118.6 | 122 | 119 | 122 |
Effect of dilutive securities: | ||||
Stock options and restricted stock units | 2.3 | 2.3 | 2.3 | 2.4 |
Weighted-average shares outstanding (diluted) | 120.9 | 124.3 | 121.3 | 124.4 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Items Measured at Fair Value on Recurring Basis) (Detail) - Fair Value, Measurements, Recurring $ in Millions | Jun. 30, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Deferred Compensation Plan Assets | [1] | $ 24.6 |
Deferred Compensation Plan Liability | [1] | (24.6) |
Total | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Deferred Compensation Plan Assets | [1] | 24.6 |
Deferred Compensation Plan Liability | 0 | |
Total | 24.6 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Deferred Compensation Plan Assets | 0 | |
Deferred Compensation Plan Liability | [1] | (24.6) |
Total | (24.6) | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Deferred Compensation Plan Assets | 0 | |
Deferred Compensation Plan Liability | 0 | |
Total | $ 0 | |
[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 partcipants’ investment selections and is valued at daily quoted market prices. |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions | Feb. 04, 2015 | Oct. 24, 2014 | Jun. 30, 2015 | Feb. 04, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Significant Accounting Policies [Line Items] | ||||||
Number of treasury shares repurchased | 900 | 1,900 | ||||
Fair value of long term debt | $ 1,200 | $ 1,200 | $ 1,300 | |||
Carrying value of long term debt | 1,100 | 1,100 | $ 1,100 | |||
Variable interest maximum exposure to loss | $ 16.7 | $ 16.7 | ||||
Variable interest entity, ownership interest | 75.00% | 75.00% | ||||
Accelerated Share Repurchase Program | ||||||
Significant Accounting Policies [Line Items] | ||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 115 | |||||
Number of treasury shares repurchased | 20 | 1,400 | 1,420 | |||
Accelerated Share Repurchase Program, Adjustment Percent | 10.00% | |||||
Accelerated Share Repurchase Program, Adjustment | $ 11.5 | $ 0 | $ (11.5) | |||
Other Current Assets | ||||||
Significant Accounting Policies [Line Items] | ||||||
Restricted Cash and Cash Equivalents | 40.4 | 40.4 | ||||
Other Current Liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Restricted Cash and Cash Equivalents | $ 40.4 | $ 40.4 |
IMPAIRMENT OF INVESTMENT IN B31
IMPAIRMENT OF INVESTMENT IN BOA VISTA SERVICOS (Details) BRL in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015BRL | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015BRL | |
Schedule of Cost-method Investments [Line Items] | ||||||
Investment in Boa Vista Servicos S.A. (BVS) | BRL | BRL 44 | BRL 90 | ||||
Cost-method Investments, Other than Temporary Impairment | BRL 46 | $ 14.8 | $ 0 | |||
Cumulative Translation Adjustment | $ 36.4 | |||||
Boa Vista Servicos Sociedad Anonima [Member] | ||||||
Schedule of Cost-method Investments [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 15.00% | 15.00% | ||||
Boa Vista Servicos Sociedad Anonima [Member] | ||||||
Schedule of Cost-method Investments [Line Items] | ||||||
Investment in Boa Vista Servicos S.A. (BVS) | $ 14.1 | |||||
Cost-method Investments, Other than Temporary Impairment | $ 14.8 |
GOODWILL AND INTANGIBLE ASSET32
GOODWILL AND INTANGIBLE ASSETS (Changes in Amount of Goodwill) (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2015USD ($) | ||
Goodwill [Line Items] | ||
Balance, December 31, 2014 | $ 2,606.8 | |
Acquisitions | 0 | |
Adjustments to initial purchase price allocation | 0 | |
Foreign currency translation | (6.4) | |
Tax benefits of stock options exercised | 0 | |
Balance, June 30, 2015 | 2,600.4 | |
U.S. Information Solutions | ||
Goodwill [Line Items] | ||
Balance, December 31, 2014 | 1,120.6 | |
Acquisitions | 0 | |
Adjustments to initial purchase price allocation | 0 | |
Foreign currency translation | 0 | |
Tax benefits of stock options exercised | 0 | |
Balance, June 30, 2015 | 1,120.6 | |
International | ||
Goodwill [Line Items] | ||
Balance, December 31, 2014 | [1] | 487 |
Acquisitions | 0 | |
Adjustments to initial purchase price allocation | 0 | |
Foreign currency translation | (7.3) | |
Tax benefits of stock options exercised | 0 | |
Balance, June 30, 2015 | 479.7 | |
Workforce Solutions | ||
Goodwill [Line Items] | ||
Balance, December 31, 2014 | 907.6 | |
Acquisitions | 0 | |
Adjustments to initial purchase price allocation | 0 | |
Foreign currency translation | 0 | |
Tax benefits of stock options exercised | 0 | |
Balance, June 30, 2015 | 907.6 | |
Personal Solutions | ||
Goodwill [Line Items] | ||
Balance, December 31, 2014 | [1] | 91.6 |
Acquisitions | 0 | |
Adjustments to initial purchase price allocation | 0 | |
Foreign currency translation | 0.9 | |
Tax benefits of stock options exercised | 0 | |
Balance, June 30, 2015 | $ 92.5 | |
[1] | The December 31, 2014 balances have been recast to reflect the new organizational structure. As of December 31, 2014, the Personal Solutions goodwill includes $75.0 million of goodwill from the Europe reporting unit. |
GOODWILL AND INTANGIBLE ASSET33
GOODWILL AND INTANGIBLE ASSETS (Purchased Intangible Assets) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,457.5 | $ 1,475.4 |
Accumulated Amortization | (562) | (521.5) |
Net | 895.5 | 953.9 |
Purchased data files | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 672.6 | 692 |
Accumulated Amortization | (223.7) | (218.8) |
Net | 448.9 | 473.2 |
Acquired software and technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 54 | 53.9 |
Accumulated Amortization | (31.5) | (26.4) |
Net | 22.5 | 27.5 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 572.4 | 570.7 |
Accumulated Amortization | (220.8) | (204.3) |
Net | 351.6 | 366.4 |
Reacquired rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 73.3 | 73.3 |
Accumulated Amortization | (32.8) | (26.3) |
Net | 40.5 | 47 |
Proprietary database | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 7.4 | 7.4 |
Accumulated Amortization | (5.6) | (5.4) |
Net | 1.8 | 2 |
Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 26.9 | 27 |
Accumulated Amortization | (16.2) | (11.8) |
Net | 10.7 | 15.2 |
Trade names and other intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 50.9 | 51.1 |
Accumulated Amortization | (31.4) | (28.5) |
Net | $ 19.5 | $ 22.6 |
GOODWILL AND INTANGIBLE ASSET34
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 2,600.4 | $ 2,600.4 | $ 2,606.8 | |||
Amortization expense related to purchased intangible assets | 31.2 | $ 32.6 | 62.5 | $ 65.3 | ||
International | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 479.7 | $ 479.7 | 487 | [1] | ||
International | Personal Solutions | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 75 | |||||
[1] | The December 31, 2014 balances have been recast to reflect the new organizational structure. As of December 31, 2014, the Personal Solutions goodwill includes $75.0 million of goodwill from the Europe reporting unit. |
DEBT (Debt Outstanding) (Detail
DEBT (Debt Outstanding) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Outstanding [Line Items] | ||
Total debt | $ 1,482.6 | $ 1,527.9 |
Short-term debt and current maturities | (335.1) | (380.4) |
Unamortized discounts | (1.7) | (1.8) |
Total long-term debt, net | 1,145.8 | 1,145.7 |
Commercial paper | ||
Debt Outstanding [Line Items] | ||
Total debt | 333.3 | 379.7 |
Notes, 6.30%, due July 2017 | ||
Debt Outstanding [Line Items] | ||
Total debt | 272.5 | 272.5 |
Notes, 3.30%, due Dec 2022 | ||
Debt Outstanding [Line Items] | ||
Total debt | 500 | 500 |
Debentures, 6.90%, due July 2028 | ||
Debt Outstanding [Line Items] | ||
Total debt | 125 | 125 |
Notes, 7.00%, due July 2037 | ||
Debt Outstanding [Line Items] | ||
Total debt | 250 | 250 |
Other | ||
Debt Outstanding [Line Items] | ||
Total debt | $ 1.8 | $ 0.7 |
DEBT (Debt Outstanding - Parent
DEBT (Debt Outstanding - Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Outstanding [Line Items] | ||
Debt, maturity date | 2017-12 | |
Notes, 6.30%, due July 2017 | ||
Debt Outstanding [Line Items] | ||
Debt, interest rate | 6.30% | 6.30% |
Debt, maturity date | 2017-07 | 2017-07 |
Notes, 3.30%, due Dec 2022 | ||
Debt Outstanding [Line Items] | ||
Debt, interest rate | 3.30% | 3.30% |
Debt, maturity date | 2022-12 | 2022-12 |
Debentures, 6.90%, due July 2028 | ||
Debt Outstanding [Line Items] | ||
Debt, interest rate | 6.90% | 6.90% |
Debt, maturity date | 2028-07 | 2028-07 |
Notes, 7.00%, due July 2037 | ||
Debt Outstanding [Line Items] | ||
Debt, interest rate | 7.00% | 7.00% |
Debt, maturity date | 2037-07 | 2037-07 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Credit facility borrowing capacity | $ 750,000,000 | |
Line of credit facility, potential maximum borrowing capacity | 1,000,000,000 | |
Long-term Debt | 1,482,600,000 | $ 1,527,900,000 |
Line of credit facility, available for borrowing | 415,300,000 | |
Commercial paper notes | 750,000,000 | |
Commercial Paper Notes Outstanding | $ 333,300,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commercial paper, maturity date | 1 day | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commercial paper, maturity date | 90 days | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 1,500,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Expiration Date | Dec. 31, 2017 | |
Long-term Line of Credit | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Data Processing, Outsourcing Services And Other Agreements, expiration year | 2,015 | |
Data Processing, Outsourcing Services And Other Agreements, estimated aggregate contractual obligation | $ 100 | $ 60 |
Non Cancelable Contractual Obligations within any annual period | $ 40 | |
Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Data Processing, Outsourcing Services And Other Agreements, expiration year | 2,023 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Gross unrecognized tax benefit balance, change within the next twelve months, lower limit | $ 0 | $ 0 | ||
Gross unrecognized tax benefit balance, change within the next twelve months, upper limit | $ 4.7 | $ 4.7 | ||
Effective income tax rate | 29.00% | 37.20% | 31.70% | 36.10% |
Discrete Income Tax Benefit | $ 8.6 | |||
Decrease in Effective Income Tax Rate, Percent | 5.40% | 2.90% |
ACCUMULATED OTHER COMPREHENSI40
ACCUMULATED OTHER COMPREHENSIVE INCOME (Changes In Accumulated Other Comprehensive Income) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, December 31, 2014 | $ (435.4) |
Other comprehensive income before reclassifications | (17.8) |
Amounts reclassified from accumulated other comprehensive income | 5 |
Net current-period other comprehensive income | (12.8) |
Balance, June 30, 2015 | (448.2) |
Foreign currency | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, December 31, 2014 | (170.3) |
Other comprehensive income before reclassifications | (18.1) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current-period other comprehensive income | (18.1) |
Balance, June 30, 2015 | (188.4) |
Pension and other postretirement benefit plans | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, December 31, 2014 | (263.3) |
Other comprehensive income before reclassifications | 0.1 |
Amounts reclassified from accumulated other comprehensive income | 5 |
Net current-period other comprehensive income | 5.1 |
Balance, June 30, 2015 | (258.2) |
Cash flow hedging transactions | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, December 31, 2014 | (1.8) |
Other comprehensive income before reclassifications | 0.2 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current-period other comprehensive income | 0.2 |
Balance, June 30, 2015 | $ (1.6) |
ACCUMULATED OTHER COMPREHENSI41
ACCUMULATED OTHER COMPREHENSIVE INCOME (Reclassifications Out Of Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Amortization of pension and other postretirement plan items: | |||||
Total net periodic benefit cost, net of tax | $ (2.6) | $ (2.1) | $ (5.1) | $ (4.2) | |
Amount reclassified from accumulated other comprehensive income | |||||
Amortization of pension and other postretirement plan items: | |||||
Prior service cost | [1] | 0.2 | |||
Recognized actuarial loss | [1] | (8.2) | |||
Total net periodic benefit cost, before tax | (8) | ||||
Total net periodic benefit cost, tax benefit | 3 | ||||
Total net periodic benefit cost, net of tax | $ (5) | ||||
[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). |
BENEFIT PLANS (Components of Ne
BENEFIT PLANS (Components of Net Periodic Benefit Cost) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.1 | $ 1.1 | $ 2.2 | $ 2.2 |
Interest cost | 7.7 | 7.8 | 15.4 | 15.6 |
Expected return on plan assets | (9.9) | (9.9) | (20) | (19.8) |
Amortization of prior service cost | 0.2 | 0.2 | 0.4 | 0.4 |
Recognized actuarial loss | 4 | 3.2 | 8 | 6.4 |
Total net periodic benefit cost | 3.1 | 2.4 | 6 | 4.8 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.2 | 0.2 |
Interest cost | 0.2 | 0.2 | 0.4 | 0.4 |
Expected return on plan assets | (0.4) | (0.4) | (0.8) | (0.8) |
Amortization of prior service cost | (0.3) | (0.3) | (0.6) | (0.6) |
Recognized actuarial loss | 0.1 | 0.1 | 0.2 | 0.2 |
Total net periodic benefit cost | $ (0.3) | $ (0.3) | $ (0.6) | $ (0.6) |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($) | Mar. 31, 2015position | Jun. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Number of Positions Eliminated | position | 300 | ||
Payments on Restructuring Accruals | $ 7 | $ 11.1 | |
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 20.7 | ||
Restructuring Charges Net Of Tax | 13.2 | ||
Severance Costs | 16.2 | ||
Business Exit Costs | 1.2 | ||
Other Restructuring Costs | $ 3.3 |
SEGMENT INFORMATION (Operating
SEGMENT INFORMATION (Operating Revenue and Operating Income by Operating Segment) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Operating revenue | $ 678.1 | $ 613.9 | $ 1,329.9 | $ 1,198.4 | |
Operating income | 188.5 | 167.4 | 342.7 | 319.3 | |
Total assets | 4,585.5 | $ 4,585.5 | $ 4,674.2 | ||
Number of reportable segments | segment | 4 | ||||
U.S. Information Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 315.7 | 281.1 | $ 614.4 | 542.3 | |
Operating income | 132.8 | 111.1 | 259.4 | 208.1 | |
Total assets | 1,962.3 | 1,962.3 | 1,983.9 | ||
International | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 148.4 | 150 | 287.2 | 290.8 | |
Operating income | 29.5 | 32.8 | 57.5 | 61.8 | |
Total assets | 906.2 | 906.2 | 983.7 | ||
Workforce Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 146.3 | 119.4 | 295 | 239.1 | |
Operating income | 56 | 40.5 | 116 | 79.2 | |
Total assets | 1,272.3 | 1,272.3 | 1,271.3 | ||
Personal Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 67.7 | 63.4 | 133.3 | 126.2 | |
Operating income | 18.7 | 19.6 | 36.7 | 37.5 | |
Total assets | 122.3 | 122.3 | 123.8 | ||
General Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | (48.5) | $ (36.6) | (126.9) | $ (67.3) | |
Total assets | $ 322.4 | $ 322.4 | $ 311.5 |