Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 06, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-06605 | |
Entity Registrant Name | EQUIFAX INC | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-0401110 | |
Entity Address, Address Line One | 1550 Peachtree Street | |
Entity Address, Address Line Two | N.W. | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30309 | |
City Area Code | 404 | |
Local Phone Number | 885-8000 | |
Title of 12(b) Security | Common stock, $1.25 par value per share | |
Trading Symbol | EFX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 123,216,776 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000033185 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Operating revenue | $ 1,319.1 | $ 1,244.3 | $ 3,938.7 | $ 3,924.3 |
Operating expenses: | ||||
Cost of services (exclusive of depreciation and amortization below) | 585.2 | 542.5 | 1,753.5 | 1,638 |
Selling, general and administrative expenses | 333.1 | 318 | 1,042.3 | 988.5 |
Depreciation and amortization | 154.4 | 140.9 | 454.4 | 417.8 |
Total operating expenses | 1,072.7 | 1,001.4 | 3,250.2 | 3,044.3 |
Operating income | 246.4 | 242.9 | 688.5 | 880 |
Interest expense | (62.8) | (47.1) | (181.1) | (128.5) |
Other income, net | 7.1 | 23.9 | 27.7 | 36.8 |
Consolidated income before income taxes | 190.7 | 219.7 | 535.1 | 788.3 |
Provision for income taxes | (26.4) | (52.8) | (117.9) | (197.2) |
Consolidated net income | 164.3 | 166.9 | 417.2 | 591.1 |
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests | (2.1) | (1.2) | (4.3) | (3.1) |
Net income attributable to Equifax | $ 162.2 | $ 165.7 | $ 412.9 | $ 588 |
Basic earnings per common share: | ||||
Net income attributable to Equifax (in dollars per share) | $ 1.32 | $ 1.35 | $ 3.36 | $ 4.81 |
Weighted-average shares used in computing basic earnings per share (in shares) | 123 | 122.4 | 122.7 | 122.3 |
Diluted earnings per common share: | ||||
Net income attributable to Equifax (in dollars per share) | $ 1.31 | $ 1.34 | $ 3.34 | $ 4.77 |
Weighted-average shares used in computing diluted earnings per share (in shares) | 123.9 | 123.3 | 123.6 | 123.3 |
Dividends per common share (in dollars per share) | $ 0.39 | $ 0.39 | $ 1.17 | $ 1.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income | $ 164.3 | $ 166.9 | $ 417.2 | $ 591.1 |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (120.6) | (181.6) | (92.7) | (300.1) |
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net | 0 | (0.7) | 0 | (1.5) |
Comprehensive income (loss) | 43.7 | (15.4) | 324.5 | 289.5 |
Equifax Shareholders | ||||
Net income | 162.2 | 165.7 | 412.9 | 588 |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (118) | (181.1) | (90.2) | (299.3) |
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net | 0 | (0.7) | 0 | (1.5) |
Comprehensive income (loss) | 44.2 | (16.1) | 322.7 | 287.2 |
Noncontrolling Interests | ||||
Net income | 2.1 | 1.2 | 4.3 | 3.1 |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (2.6) | (0.5) | (2.5) | (0.8) |
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ (0.5) | $ 0.7 | $ 1.8 | $ 2.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 412.6 | $ 285.2 |
Trade accounts receivable, net of allowance for doubtful accounts of $18.3 and $19.1 at September 30, 2023 and December 31, 2022, respectively | 967.9 | 857.7 |
Prepaid expenses | 142 | 134.3 |
Other current assets | 74.9 | 93.3 |
Total current assets | 1,597.4 | 1,370.5 |
Property and equipment: | ||
Capitalized internal-use software and system costs | 2,428.2 | 2,139.1 |
Data processing equipment and furniture | 286.3 | 281.4 |
Land, buildings and improvements | 267.1 | 261.6 |
Total property and equipment | 2,981.6 | 2,682.1 |
Less accumulated depreciation and amortization | (1,218) | (1,095.1) |
Total property and equipment, net | 1,763.6 | 1,587 |
Noncurrent assets: | ||
Goodwill | 6,730.8 | 6,383.9 |
Indefinite-lived intangible assets | 95.1 | 94.8 |
Purchased intangible assets, net | 1,903.9 | 1,818.5 |
Other assets, net | 258.1 | 293.2 |
Total assets | 12,348.9 | 11,547.9 |
Current liabilities: | ||
Short-term debt and current maturities of long-term debt | 501 | 967.2 |
Accounts payable | 190.7 | 250.8 |
Accrued expenses | 267.1 | 229 |
Accrued salaries and bonuses | 173.7 | 138.7 |
Deferred revenue | 115.2 | 132.9 |
Other current liabilities | 334.1 | 296.6 |
Total current liabilities | 1,581.8 | 2,015.2 |
Noncurrent liabilities: | ||
Long-term debt | 5,500.4 | 4,820.1 |
Deferred income tax liabilities, net | 468.8 | 460.3 |
Long-term pension and other postretirement benefit liabilities | 97.7 | 100.4 |
Other long-term liabilities | 215.6 | 178.6 |
Total liabilities | 7,864.3 | 7,574.6 |
Commitments and Contingencies (see Note 6) | ||
Redeemable noncontrolling interests | 175.5 | 0 |
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 September 30, 2023 and December 31, 2022; Outstanding shares - 123.2 and 122.5 at September 30, 2023 and December 31, 2022, respectively | 236.6 | 236.6 |
Paid-in capital | 1,736.6 | 1,594.2 |
Retained earnings | 5,524.5 | 5,256 |
Accumulated other comprehensive loss | (563.9) | (473.7) |
Treasury stock, at cost, 65.5 shares and 66.2 shares at September 30, 2023 and December 31, 2022, respectively | (2,634.6) | (2,650.7) |
Stock held by employee benefit trusts, at cost, 0.6 shares at September 30, 2023 and December 31, 2022 | (5.9) | (5.9) |
Total Equifax shareholders’ equity | 4,293.3 | 3,956.5 |
Noncontrolling interests | 15.8 | 16.8 |
Total shareholders' equity | 4,309.1 | 3,973.3 |
Total liabilities, redeemable noncontrolling interests, and shareholders' equity | $ 12,348.9 | $ 11,547.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 18.3 | $ 19.1 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10 | 10 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, authorized (in shares) | 300 | 300 |
Common stock, issued (in shares) | 189.3 | 189.3 |
Common stock, outstanding (in shares) | 123.2 | 122.5 |
Treasury stock (in shares) | 65.5 | 66.2 |
Stock held by employee benefits trusts (in shares) | 0.6 | 0.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Consolidated net income | $ 417.2 | $ 591.1 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 461 | 424.1 |
Stock-based compensation expense | 61.3 | 50.4 |
Deferred income taxes | (67.9) | 47.9 |
Gain on fair market value adjustment and gain on sale of equity investments | (13.8) | (20.2) |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Accounts receivable, net | (86.4) | (133.6) |
Other assets, current and long-term | (16) | (32) |
Current and long term liabilities, excluding debt | 39.3 | (496) |
Cash provided by operating activities | 794.7 | 431.7 |
Investing activities: | ||
Capital expenditures | (455.6) | (468.4) |
Acquisitions, net of cash acquired | (276) | (437.5) |
Cash received from divestitures | 6.9 | 98.8 |
Cash used in investing activities | (724.7) | (807.1) |
Financing activities: | ||
Net short-term borrowings | (83.6) | (162.1) |
Payments on long-term debt | (575) | 0 |
Borrowings on long-term debt | 872.9 | 749.3 |
Dividends paid to Equifax shareholders | (143.7) | (143.3) |
Dividends paid to noncontrolling interests | (2.8) | (2.5) |
Proceeds from exercise of stock options and employee stock purchase plan | 18.6 | 13.5 |
Payment of taxes related to settlement of equity awards | (16.9) | (33) |
Debt issuance costs | (6) | (5.4) |
Cash provided by financing activities | 63.5 | 416.5 |
Effect of foreign currency exchange rates on cash and cash equivalents | (6.1) | (24.1) |
Increase in cash and cash equivalents | 127.4 | 17 |
Cash and cash equivalents, beginning of period | 285.2 | 224.7 |
Cash and cash equivalents, end of period | $ 412.6 | $ 241.7 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 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 (in shares) at Dec. 31, 2021 | 122.1 | |||||||
Beginning Balance at Dec. 31, 2021 | $ 3,601.2 | $ 236.6 | $ 1,536.7 | $ 4,751.6 | $ (295.4) | $ (2,639.2) | $ (5.9) | $ 16.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 591.1 | 588 | 3.1 | |||||
Other comprehensive loss | (301.6) | (300.8) | (0.8) | |||||
Shares issued under stock and benefit plans, net of minimum tax withholdings (in shares) | 0.3 | |||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | (19.7) | (7.5) | (12.2) | |||||
Cash dividends | (143.8) | (143.8) | ||||||
Dividends paid to employee benefits trusts | 0.5 | 0.5 | ||||||
Stock-based compensation expense | 50.4 | 50.4 | ||||||
Dividends paid to noncontrolling interests | (2.5) | (2.5) | ||||||
Ending Balance (in shares) at Sep. 30, 2022 | 122.4 | |||||||
Ending Balance at Sep. 30, 2022 | 3,775.6 | $ 236.6 | 1,580.1 | 5,195.8 | (596.2) | (2,651.4) | (5.9) | 16.6 |
Beginning Balance (in shares) at Jun. 30, 2022 | 122.4 | |||||||
Beginning Balance at Jun. 30, 2022 | 3,821 | $ 236.6 | 1,563.2 | 5,078.1 | (414.4) | (2,652.6) | (5.9) | 16 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 166.9 | 165.7 | 1.2 | |||||
Other comprehensive loss | (182.3) | (181.8) | (0.5) | |||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | 4.2 | 3 | 1.2 | |||||
Cash dividends | (48) | (48) | ||||||
Dividends paid to employee benefits trusts | 0.2 | 0.2 | ||||||
Stock-based compensation expense | 13.7 | 13.7 | ||||||
Dividends paid to noncontrolling interests | (0.1) | (0.1) | ||||||
Ending Balance (in shares) at Sep. 30, 2022 | 122.4 | |||||||
Ending Balance at Sep. 30, 2022 | 3,775.6 | $ 236.6 | 1,580.1 | 5,195.8 | (596.2) | (2,651.4) | (5.9) | 16.6 |
Beginning Balance (in shares) at Dec. 31, 2022 | 122.5 | |||||||
Beginning Balance at Dec. 31, 2022 | 3,973.3 | $ 236.6 | 1,594.2 | 5,256 | (473.7) | (2,650.7) | (5.9) | 16.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 417.2 | 412.9 | 4.3 | |||||
Other comprehensive loss | (92.7) | (90.2) | (2.5) | |||||
Shares issued under stock and benefit plans, net of minimum tax withholdings (in shares) | 0.2 | |||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | 1.9 | 5.1 | (3.2) | |||||
Cash dividends | (144.4) | (144.4) | ||||||
Dividends paid to employee benefits trusts | 0.7 | 0.7 | ||||||
Stock-based compensation expense | 61.3 | 61.3 | ||||||
Shares issued in acquisition of Boa Vista Servicos (in shares) | 0.5 | |||||||
Shares issued in acquisition of Boa Vista Serviços | 94.6 | 75.3 | 19.3 | |||||
Dividends paid to noncontrolling interests | (2.8) | (2.8) | ||||||
Ending Balance (in shares) at Sep. 30, 2023 | 123.2 | |||||||
Ending Balance at Sep. 30, 2023 | 4,309.1 | $ 236.6 | 1,736.6 | 5,524.5 | (563.9) | (2,634.6) | (5.9) | 15.8 |
Beginning Balance (in shares) at Jun. 30, 2023 | 122.7 | |||||||
Beginning Balance at Jun. 30, 2023 | 4,208.3 | $ 236.6 | 1,650.5 | 5,410.5 | (445.9) | (2,654.6) | (5.9) | 17.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 164.3 | 162.2 | 2.1 | |||||
Other comprehensive loss | (120.6) | (118) | (2.6) | |||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | 2.3 | 1.6 | 0.7 | |||||
Cash dividends | (48.2) | (48.2) | ||||||
Dividends paid to employee benefits trusts | 0.1 | 0.1 | ||||||
Stock-based compensation expense | 9.1 | 9.1 | ||||||
Shares issued in acquisition of Boa Vista Servicos (in shares) | 0.5 | |||||||
Shares issued in acquisition of Boa Vista Serviços | 94.6 | 75.3 | 19.3 | |||||
Dividends paid to noncontrolling interests | (0.8) | (0.8) | ||||||
Ending Balance (in shares) at Sep. 30, 2023 | 123.2 | |||||||
Ending Balance at Sep. 30, 2023 | $ 4,309.1 | $ 236.6 | $ 1,736.6 | $ 5,524.5 | $ (563.9) | $ (2,634.6) | $ (5.9) | $ 15.8 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends, per share (in dollars per share) | $ 0.39 | $ 0.39 | $ 1.17 | $ 1.17 |
CONSOLIDATED STATEMENTS OF ACCU
CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENISVE LOSS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Other Comprehensive Income [Abstract] | ||
Foreign currency translation | $ (559.5) | $ (469.3) |
Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $1.1 and $1.2 at September 30, 2023 and December 31, 2022, respectively | (3.4) | (3.4) |
Cash flow hedging transactions, net of accumulated tax of $0.5 and $0.6 at September 30, 2023 and December 31, 2022, respectively | (1) | (1) |
Accumulated other comprehensive loss | $ (563.9) | $ (473.7) |
CONSOLIDATED STATEMENTS OF AC_2
CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENISVE LOSS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Other Comprehensive Income [Abstract] | ||
Unrecognized actual losses and prior service cost, related to pension and other postretirement benefit plans, accumulated tax | $ 1.1 | $ 1.2 |
Cash flow hedging transaction, accumulated tax | $ 0.5 | $ 0.6 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As used herein, the terms Equifax, the Company, we, our and us refer to Equifax Inc., a Georgia corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Equifax Inc. Nature of Operations. We collect, organize and manage various types of financial, demographic, employment, criminal justice data and marketing information. Our products and services enable businesses to make credit and service decisions, manage their portfolio risk, automate or outsource certain payroll-related, tax and human resources business processes, and develop marketing strategies concerning consumers and commercial enterprises. We serve customers across a wide range of industries, including the financial services, mortgage, retail, telecommunications, utilities, automotive, brokerage, healthcare and insurance industries, as well as government agencies. We also enable consumers to manage and protect their financial health through a portfolio of products offered directly to consumers. As of September 30, 2023, we operated in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom, or U.K., Uruguay and the United States of America, or U.S. We also have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia and Singapore. On August 7, 2023, we purchased the remaining interest in our equity investment in a consumer and commercial credit information company in Brazil. We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, criminal justice data, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting institutions, and income and tax information primarily from large to mid-sized companies in the U.S. We process this information utilizing our proprietary information management systems. We also provide information, technology and services to support debt collections and recovery management. Basis of Presentation. The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, the instructions to Form 10-Q and applicable sections of SEC Regulation S-X. This Form 10-Q should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). Our unaudited Consolidated Financial Statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the periods presented and are of a normal recurring nature. Earnings Per Share. Our basic earnings per share, or EPS, is calculated as net income attributable to Equifax divided by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding. The net income amounts used in both our basic and diluted EPS calculations are the same. A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Weighted-average shares outstanding (basic) 123.0 122.4 122.7 122.3 Effect of dilutive securities: Stock options and restricted stock units 0.9 0.9 0.9 1.0 Weighted-average shares outstanding (diluted) 123.9 123.3 123.6 123.3 For the three and nine months ended September 30, 2023 and 2022, stock options that were anti-dilutive were not material. Financial Instruments. Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and short and long-term debt. The carrying amounts of these items, other than long-term debt, approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for publicly traded instruments, and for non-publicly traded instruments, through valuation techniques depending on the specific characteristics of the debt instrument, taking into account credit risk. As of September 30, 2023 and December 31, 2022, the fair value of our long-term debt, including the current portion, was $5.1 billion and $4.8 billion compared to its carrying value of $5.6 billion and $5.3 billion, respectively. Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing an asset or liability. We use a three level fair value hierarchy to prioritize the inputs used in valuation techniques between observable inputs that reflect quoted prices in active markets, inputs other than quoted prices with observable market data and unobservable data (e.g., a company’s own data). Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. We completed two acquisitions during the nine months ended September 30, 2023 and multiple acquisitions during the year ended December 31, 2022. The values of net assets acquired were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of definite-lived intangible assets acquired in these acquisitions were estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates in the present value calculations. Trade Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at cost and are due in less than a year. Significant payment terms for customers are identified in the contract. We do not recognize interest income on our trade accounts receivable. Additionally, we generally do not require collateral from our customers related to our trade accounts receivable. The allowance for doubtful accounts is based on management's estimate for expected credit losses for outstanding trade accounts receivables. We determine expected credit losses based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, the establishment of specific reserves for customers in an adverse financial condition and adjusted based upon our expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. We reassess the adequacy of the allowance for doubtful accounts each reporting period. Increases to the allowance for doubtful accounts are recorded as bad debt expense, which are included in selling, general and administrative expenses on the accompanying Consolidated Statements of Income. Below is a rollforward of our allowance for doubtful accounts for the three and nine months ended September 30, 2023 and 2022, respectively. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Allowance for doubtful accounts, beginning of period $ 17.0 $ 15.6 $ 19.1 $ 13.9 Current period bad debt expense 3.6 1.4 8.8 4.4 Write-offs, net of recoveries (2.3) (1.5) (9.6) (2.8) Allowance for doubtful accounts, end of period $ 18.3 $ 15.5 $ 18.3 $ 15.5 Other Current Assets. Other current assets on our Consolidated Balance Sheets primarily include amounts receivable related to vendor rebates and from tax authorities. Other current assets also include amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of September 30, 2023, these assets were $28.7 million, with a corresponding balance in other current liabilities. These amounts are restricted as to their current use and will be released according to the specific customer agreements. Other Assets. Other assets on our Consolidated Balance Sheets primarily represent our investments in unconsolidated affiliates, the Company’s operating lease right-of-use assets, employee benefit trust assets, assets related to life insurance policies covering certain officers of the Company and long-term deferred tax assets. Equity Investment. On August 7, 2023, we purchased the remaining interest of our equity investment in Boa Vista Serviços S.A. ("BVS"), a consumer and commercial credit information bureau in Brazil. Up until the date of acquisition, we recorded this equity investment within Other Assets at fair value, using observable Level 1 inputs. The carrying value of the investment was adjusted to $88.9 million as of the close date, August 7, 2023, based on quoted market prices, resulting in a loss of $0.2 million and a gain of $7.0 million for the three and nine months ended September 30, 2023, respectively. The carrying value of the investment was $58.0 million as of September 30, 2022, resulting in an unrealized gain of $5.7 million and unrealized loss of $0.7 million for the three and nine months ended September 30, 2022, respectively. All unrealized gains or losses on this investment were recorded in Other income, net within the Consolidated Statements of Income. During the nine months ended September 30, 2023, in addition to the BVS activity mentioned above, we sold our interest in a separate equity investment. The overall sale proceeds exceeded the total carrying value of the investments, and we have recorded a gain of $6.2 million in Other income, net within the Consolidated Statements of Income. During the nine months ended September 30, 2022, we sold our interest in two other equity investments. The overall sale proceeds exceeded the total carrying value of the investments, and we recorded a total gain of $27.5 million in Other income, net within the Consolidated Statements of Income for the nine months ended September 30, 2022. Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the current portion of our operating lease liabilities and various accrued liabilities such as interest expense, income taxes, accrued employee benefits, and insurance expense. Other current liabilities also include the offset to other current assets related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of September 30, 2023, these funds were $28.7 million. These amounts are restricted as to their current use and will be released according to the specific customer agreements. Change in Accounting Principle. In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The update provides clarifying guidance to reduce diversity in practice stating that contract assets, contract liabilities and deferred revenue acquired in business combinations should be measured in accordance with Accounting Standards Topic 606, rather than the fair value principles of Accounting Standards Topic 805. ASU 2021-08 is effective for all public business entities for annual periods beginning after December 15, 2022. This guidance must be applied on a prospective basis. As of January 1, 2023, we have adopted this standard as it relates to our current year business combinations. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. Recent Accounting Pronouncements. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The update extends the sunset date from ASU No. 2020-04 from December 31, 2022, to December 31, 2024. After this date, entities will no longer be permitted to apply the relief in Topic 848. We are still evaluating the impact, but do not expect the adoption of the standard to have a material impact on our Consolidated Financial Statements. In August 2023, the FASB issued ASU No. 2023-05 "Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement." The amendments in this update address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. The update requires that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). The amendments in this update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. This update will impact us if we enter into any joint venture agreements after January 1, 2025 and we will evaluate the impact accordingly. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition. Based on the information that management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, we disaggregate revenue as follows: Three Months Ended September 30, Change Nine Months Ended September 30, Change Consolidated Operating Revenue 2023 2022 $ % 2023 2022 $ % (In millions) (In millions) Verification Services $ 459.3 $ 454.5 $ 4.8 1 % $ 1,389.1 $ 1,472.4 $ (83.3) (6) % Employer Services 117.9 104.4 13.5 13 % 367.2 344.7 22.5 7 % Total Workforce Solutions 577.2 558.9 18.3 3 % 1,756.3 1,817.1 (60.8) (3) % Online Information Solutions 348.2 314.4 33.8 11 % 1,047.8 987.5 60.3 6 % Mortgage Solutions 27.3 32.1 (4.8) (15) % 90.8 112.3 (21.5) (19) % Financial Marketing Services 50.5 50.9 (0.4) (1) % 154.1 152.0 2.1 1 % Total U.S. Information Solutions 426.0 397.4 28.6 7 % 1,292.7 1,251.8 40.9 3 % Asia Pacific 85.5 87.1 (1.6) (2) % 263.1 263.7 (0.6) — % Europe 85.2 80.7 4.5 6 % 239.6 246.3 (6.7) (3) % Canada 65.1 66.2 (1.1) (2) % 194.7 191.8 2.9 2 % Latin America 80.1 54.0 26.1 48 % 192.3 153.6 38.7 25 % Total International 315.9 288.0 27.9 10 % 889.7 855.4 34.3 4 % Total operating revenue $ 1,319.1 $ 1,244.3 $ 74.8 6 % $ 3,938.7 $ 3,924.3 $ 14.4 — % Remaining Performance Obligation – We have elected to disclose only the remaining performance obligations for those contracts with an expected duration of greater than one year and do not disclose the value of remaining performance obligations for contracts in which we recognize revenue at the amount to which we have the right to invoice. We expect to recognize as revenue the following amounts related to our remaining performance obligations as of September 30, 2023, inclusive of foreign exchange impact: Performance Obligation Amount (In millions) Less than 1 year $ 25.7 1 to 3 years 28.9 3 to 5 years 14.3 Thereafter 21.8 Total remaining performance obligation $ 90.7 |
ACQUISITIONS AND INVESTMENTS
ACQUISITIONS AND INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND INVESTMENTS | ACQUISITIONS AND INVESTMENTS 2023 Acquisitions and Investments. In the first quarter of 2023, the Company acquired a company in Canada, within the International operating segment. Acquisition of Boa Vista Serviços On August 7, 2023, we acquired the remaining interest of our investment in Boa Vista Serviços S.A. ("BVS"), a consumer and commercial credit information company in Brazil, within the International operating segment for approximately $510 million in cash, 2,171,615 shares of Equifax do Brasil, and 479,725 shares of Equifax Inc. common stock (the "Acquisition"). We previously owned a 10% investment in BVS. The following table summarizes the fair value of consideration exchanged to complete the acquisition of BVS: Fair value of consideration Amount (In millions) Cash transferred (1) $ 509.7 Equifax do Brasil common shares issued (2) 176.4 Equifax Brazilian Depositary Receipts ("Equifax BDRs") issued (3) 94.6 Fair value of 10% investment 88.9 Total value of consideration $ 869.6 (1) The cash transferred represents the actual cash transferred as part of the transaction. The cash portion of the consideration was funded primarily with borrowings under our commercial paper program. (2) The fair value of the 2,171,615 Equifax do Brasil common shares issued was determined based on the offer price for the outstanding BVS shares. (3) One Equifax BDR represents one share of Equifax Inc. common stock. The fair value of the 479,725 Equifax BDRs issued was determined based on the share price of Equifax Inc. as of August 7, 2023. The Company accounted for this acquisition in accordance with ASC 805, Business Combinations, which requires the assets acquired and the liabilities assumed to be measured at fair value at the date of the acquisition. The purchase price allocation for the acquisition is not yet finalized and open areas relate to measurement of intangible assets, noncontrolling interest, income taxes, working capital and other reserves, as well as the assignment of goodwill recognized in the transaction. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date. The preliminary valuation of acquired assets and assumed liabilities at the date of the acquisition, include the following: Net assets acquired: Amount (In millions) Cash and cash equivalents $ 239.5 Trade accounts receivable and other current assets 36.2 Other assets, net 48.6 Purchased intangible assets (1) 241.9 Goodwill (2) 407.2 Total assets acquired 973.4 Total liabilities assumed (103.8) Net assets acquired $ 869.6 (1) Purchased intangible assets are further disaggregated in the following table. (2) The goodwill related to BVS is included in the Latin America reporting unit within our International reportable segment. The goodwill recognized in connection with the transaction was due to expanded growth opportunities from expanding geographically into Brazil, and from the opportunity to create new or enhanced product offerings, as well as cost savings from improved technology and the elimination of duplicative activities that are not recognized as assets apart from goodwill. Purchased intangible assets Amount Weighted-average useful life (In millions) (In years) Customer relationships $ 172.4 10.0 Purchased data files 64.3 15.0 Trade names and other intangible assets 5.2 2.4 Total acquired definite-lived intangibles $ 241.9 11.2 Redeemable Noncontrolling Interest As part of the merger consideration issued to complete the acquisition of BVS, we issued shares of one of our subsidiaries, Equifax do Brasil, thus resulting in a noncontrolling interest. We recognized the noncontrolling interest at fair value at the date of acquisition. These shares were issued with specific rights allowing the holders to sell the shares back to Equifax, at fair value during specified future time periods starting at the fifth anniversary and only when certain conditions exist. Additionally, the shareholder agreements provide Equifax the right to buy the shares back at fair value at future dates beginning after the tenth anniversary of the acquisition, however Equifax is not required to execute this right at any point. We determined the noncontrolling interest shareholder rights meet the requirements to be considered redeemable. Therefore we have classified the noncontrolling interest outside of permanent equity on our consolidated balance sheet. Currently, the noncontrolling interest is not redeemable but it is probable that it will become redeemable in the future. Therefore we will recognize changes in the redemption value as of each balance sheet date. 2022 Acquisitions and Investments. In the first quarter of 2022, the Company acquired 100% of Efficient Hire, a provider of cloud recruiting, onboarding and human resources management solutions, within the Workforce Solutions operating segment, and Data Crédito, a consumer credit reporting agency in the Dominican Republic, within the International operating segment. In the third quarter of 2022, the Company acquired 100% of LawLogix, a leading provider of cloud-based I-9 software and immigration case management software, within the Workforce Solutions operating segment, and Midigator, a provider of post-transaction fraud mitigation solutions, within the U.S. Information Solutions business segment. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill. Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment test as of September 30. Our annual goodwill impairment testing was completed during the third quarter of 2023. The estimated fair value for all reporting units exceeded the carrying value for those units as of September 30, 2023. As a result, no goodwill impairment was recorded. Changes in the amount of goodwill for the nine months ended September 30, 2023, are as follows: Workforce Solutions U.S. International Total Balance, December 31, 2022 $ 2,520.8 $ 2,004.8 $ 1,858.3 $ 6,383.9 Acquisitions — — 410.4 410.4 Adjustments to initial purchase price allocation (0.7) 1.4 0.3 1.0 Foreign currency translation — — (64.5) (64.5) Balance, September 30, 2023 $ 2,520.1 $ 2,006.2 $ 2,204.5 $ 6,730.8 Indefinite-Lived Intangible Assets. Indefinite-lived intangible assets consist of indefinite-lived reacquired rights representing the value of rights which we had granted to various affiliate credit reporting agencies that were reacquired in the U.S. and Canada. At the time we acquired these agreements, they were considered perpetual in nature under the accounting guidance in place at that time and, therefore, the useful lives are considered indefinite. Indefinite-lived intangible assets are not amortized. We are required to test indefinite-lived intangible assets for impairment annually and whenever events or circumstances indicate that there may be an impairment of the asset value. We perform our annual indefinite-lived intangible asset impairment test as of September 30. The estimated fair value of our indefinite-lived intangible assets exceeded the carrying value as of September 30, 2023. As a result, no impairment was recorded. Our indefinite-lived intangible asset carrying amounts did not change materially during the nine months ended September 30, 2023. Purchased Intangible Assets. Purchased intangible assets represent the estimated acquisition date fair value of acquired intangible assets used in our business. Purchased data files represent the estimated fair value of consumer and commercial data files acquired through our acquisitions of various companies, including a fraud and identity solutions provider and independent credit reporting agencies in the U.S., Australia, Brazil, Dominican Republic and Canada. We expense the cost of modifying and updating credit files in the period such costs are incurred. We amortize all of our purchased intangible assets on a straight-line basis. For additional information about the useful lives related to our purchased intangible assets, see Note 1 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K. Purchased intangible assets at September 30, 2023 and December 31, 2022 consisted of the following: September 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets: (In millions) Purchased data files $ 1,136.5 $ (574.5) $ 562.0 $ 1,090.0 $ (527.8) $ 562.2 Customer relationships 1,036.7 (455.2) 581.5 874.6 (407.4) 467.2 Proprietary database 706.3 (157.3) 549.0 705.9 (115.0) 590.9 Acquired software and technology 222.2 (66.1) 156.1 225.4 (42.6) 182.8 Trade names, non-compete agreements and other intangible assets 83.3 (28.0) 55.3 41.2 (25.8) 15.4 Total definite-lived intangible assets $ 3,185.0 $ (1,281.1) $ 1,903.9 $ 2,937.1 $ (1,118.6) $ 1,818.5 Amortization expense related to purchased intangible assets was $64.4 million and $59.1 million during the three months ended September 30, 2023 and 2022, respectively. Amortization expense related to purchased intangible assets was $185.4 million and $174.4 million during the nine months ended September 30, 2023 and 2022, respectively. Estimated future amortization expense related to definite-lived purchased intangible assets at September 30, 2023 is as follows: Years ending December 31, Amount (In millions) 2023 $ 66.0 2024 252.2 2025 247.4 2026 231.5 2027 218.7 Thereafter 888.1 $ 1,903.9 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt outstanding at September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 (In millions) Commercial paper $ 483.5 $ 566.8 Notes, 3.95%, due June 2023 — 400.0 Notes, 2.6%, due December 2024 750.0 750.0 Notes, 2.6%, due December 2025 400.0 400.0 Notes, 3.25%, due June 2026 275.0 275.0 Term loan, due August 2026 700.0 700.0 Notes, 5.10%, due December 2027 750.0 750.0 Notes, 5.10%, due June 2028 700.0 — Debentures, 6.9%, due July 2028 125.0 125.0 Notes, 3.1%, due May 2030 600.0 600.0 Notes, 2.35%, due September 2031 1,000.0 1,000.0 Notes, 7.0%, due July 2037 250.0 250.0 Other — 0.4 Total debt 6,033.5 5,817.2 Less short-term debt and current maturities (501.0) (967.2) Less unamortized discounts and debt issuance costs (32.1) (29.9) Total long-term debt, net $ 5,500.4 $ 4,820.1 5.1% Senior Notes. In May 2023, we issued $700.0 million aggregate principal amount of 5.1% five 5.1% Senior Notes. In September 2022, we issued $750.0 million aggregate principal amount of 5.1% five Senior Credit Facilities. We have access to a $1.5 billion five-year unsecured revolving credit facility (the “Revolver”) and a $700.0 million delayed draw term loan (“Term Loan”), collectively known as the “Senior Credit Facilities,” both of which mature in August 2026. In March 2023, we amended our Senior Credit Facilities agreement to adjust our debt covenant requirements and incorporate the Secured Overnight Financing Rate (SOFR) into our agreement, among other changes. Borrowings under the Senior Credit Facilities may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions and for other general corporate purposes. The Revolver includes an option to request a maximum of three one-year extensions of the maturity date any time after the first anniversary of the closing date of the Revolver. Availability of the Revolver is reduced by the outstanding principal balance of our commercial paper notes and by any letters of credit issued under the Revolver. As of September 30, 2023, there were $483.5 million of outstanding commercial paper notes, $0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver and $700.0 million outstanding under the Term Loan. Availability under the Revolver was $1,016.1 million at September 30, 2023. Commercial Paper Program. Our $1.5 billion commercial paper ("CP") program has been established through the private placement of commercial paper notes from time-to-time, in which borrowings may bear interest at either a variable or a fixed rate, plus the applicable margin. Maturities of CP can range from overnight to 397 days. Because the CP is backstopped by our Revolver, the amount of CP which may be issued under the program is reduced by the outstanding face amount of any letters of credit issued and by the outstanding borrowings under our Revolver. At September 30, 2023, there were $483.5 million of outstanding CP notes. We have disclosed the net short-term borrowing activity for the nine months ended September 30, 2023 in the Consolidated Statements of Cash Flows. There are no CP borrowings or payments with a maturity date greater than 90 days and less than 365 days for the nine months ended months ended September 30, 2023. For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Canadian Class Actions . In 2017, we experienced a cybersecurity incident following a criminal attack on our systems that involved the theft of personal information of consumers. Five putative Canadian class actions, four of which are on behalf of a national class of approximately 19,000 Canadian consumers, are pending against us in Ontario, British Columbia and Alberta. Each of the proposed Canadian class actions asserts a number of common law and statutory claims seeking monetary damages and other related relief in connection with the 2017 cybersecurity incident. In addition to seeking class certification on behalf of Canadian consumers whose personal information was allegedly impacted by the 2017 cybersecurity incident, in some cases, plaintiffs also seek class certification on behalf of a larger group of Canadian consumers who had contracts for subscription products with Equifax around the time of the incident or earlier and were not impacted by the incident. On December 13, 2019, the court in Ontario granted certification of a nationwide class that includes all impacted Canadians as well as Canadians who had subscription products with Equifax between March 7, 2017 and July 30, 2017 who were not impacted by the incident. We appealed one of the claims on which a class was certified and on June 9, 2021, our appeal was granted by the Ontario Divisional Court. The plaintiff filed a notice of further appeal with the Ontario Court of Appeal, and on November 25, 2022, the Ontario Court of Appeal dismissed the plaintiff’s appeal and upheld the Divisional Court’s ruling in our favor. On January 24, 2023, the plaintiff appealed this decision to the Supreme Court of Canada, and on July 13, 2023, the Supreme Court of Canada dismissed the appeal. All remaining purported class actions are at preliminary stages or stayed. FCA Investigation . The U.K.’s Financial Conduct Authority (“FCA”) opened an enforcement investigation against our U.K. subsidiary, Equifax Limited, in October 2017 in connection with the 2017 cybersecurity incident. We received a notice with the FCA's findings on October 13, 2023, and paid a penalty of $13.8 million to resolve the matter. Data Processing, Outsourcing Services and Other Agreements We have separate agreements with Google, Amazon Web Services, UST Global, Kyndryl and others to outsource portions of our network and security infrastructure, computer data processing operations, applications development, business continuity and recovery services, help desk service and desktop support functions, operation of our voice and data networks, maintenance and related functions and to provide certain other administrative and operational services. The agreements expire between 2023 and 2028. Annual payment obligations in regard to these agreements vary due to factors such as the volume of data processed; changes in our servicing needs as a result of new product offerings, acquisitions or divestitures; the introduction of significant new technologies; foreign currency; or the general rate of inflation. In certain circumstances (e.g., a change in control or for our convenience), we may terminate these data processing and outsourcing agreements, and, in doing so, certain of these agreements require us to pay significant termination fees. Guarantees and General Indemnifications We may issue standby letters of credit and performance and surety bonds in the normal course of business. The aggregate notional amounts of all performance and surety bonds and standby letters of credit was not material at September 30, 2023 and generally have a remaining maturity of one year or less. We may issue other guarantees in the ordinary course of business. The maximum potential future payments we could be required to make under the guarantees in the ordinary course of business was not material at September 30, 2023. We have agreed to guarantee the liabilities and performance obligations (some of which have limitations) of a certain debt collections and recovery management subsidiary under its commercial agreements. We have agreed to standard indemnification clauses in many of our lease agreements for office space, covering such things as tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. Certain of our credit agreements include provisions which require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to certain changes in law or regulations. In conjunction with certain transactions, such as sales or purchases of operating assets or services in the ordinary course of business, or the disposition of certain assets or businesses, we sometimes provide routine indemnifications, the terms of which range in duration and sometimes are not limited. Additionally, the Company has entered into indemnification agreements with its directors and executive officers to indemnify such individuals to the fullest extent permitted by applicable law against liabilities that arise by reason of their status as directors or officers. The Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations. We cannot reasonably estimate our potential future payments under the guarantees and indemnities and related provisions described above because we cannot predict when and under what circumstances these provisions may be triggered. Contingencies In addition to the matters set forth above, we are involved in legal and regulatory matters, government investigations, claims and litigation arising in the ordinary course of business. We periodically assess our exposure related to these matters based on the information which is available. We have recorded accruals in our Consolidated Financial Statements for those matters in which it is probable that we have incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. For additional information about these and other commitments and contingencies, see Note 6 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We are subject to U.S. federal, state and international income taxes. We are generally no longer subject to federal, state, or international income tax examinations by tax authorities for years before 2019 with a few exceptions. Due to the potential for resolution of state and foreign examinations, and the expiration of various statutes of limitations, it is reasonably possible that our gross unrecognized tax benefit balance may change within the next twelve months by a range of $0 to $8.4 million. Effective Tax Rate Our effective income tax rate was 13.9% for the three months ended September 30, 2023, compared to 24.0% for the three months ended September 30, 2022. Our effective income tax rate was 22.0% for the nine months ended September 30, 2023, compared to 25.0% for the nine months ended September 30, 2022. Our effective tax rate was lower for the third quarter and the first nine months of 2023 as compared to the same periods in 2022 due to the write off of a deferred tax liability related to our original investment in BVS which was no longer necessary given the acquisition of the company in the third quarter of 2023, partially offset by the tax impact of the penalty associated with resolution of the investigation of the 2017 cybersecurity incident by the U.K. FCA which is not tax deductible. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in accumulated other comprehensive loss by component, after tax, for the nine months ended September 30, 2023, are as follows: Foreign Pension and other Cash flow Total (In millions) Balance, December 31, 2022 $ (469.3) $ (3.4) $ (1.0) $ (473.7) Other comprehensive loss (90.2) — — (90.2) Balance, September 30, 2023 $ (559.5) $ (3.4) $ (1.0) $ (563.9) Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of September 30, 2023. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES In the second quarter of 2023, we recorded $17.5 million ($12.4 million, net of tax) of restructuring charges, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income. In the third quarter of 2023, we recorded an adjustment of $2.3 million ($1.7 million, net of tax) to the restructuring charge recorded in the second quarter of 2023 as we refined our estimate of the costs associated with that charge. In the fourth quarter of 2022, we recorded $24.0 million ($18.0 million, net of tax) of restructuring charges, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income. These charges were recorded to general corporate expense and resulted from our continuing efforts to realign our internal resources to support the Company’s strategic objectives and primarily relate to a reduction in headcount. As of September 30, 2023, $7.3 million of the second quarter 2023 and substantially all of the fourth quarter 2022 restructuring charges have been paid, with the remaining future payments expected to be completed in the fourth quarter of 2023. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Reportable Segments. We manage our business and report our financial results through the following three reportable segments, which are the same as our operating segments: – Workforce Solutions – U.S. Information Solutions (“USIS”) – International The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in our 2022 Form 10-K. We evaluate the performance of these reportable segments based on their operating revenue, operating income and operating margins, excluding any unusual or infrequent items, if any. The measurement criteria for segment profit or loss and segment assets are substantially the same for each reportable segment. Inter-segment sales and transfers are not material for all periods presented. All transactions between segments are accounted for at fair market value or cost depending on the nature of the transaction and no timing differences occur between segments. A summary of segment products and services is as follows: Workforce Solutions. This segment provides services enabling customers to verify income, employment, educational history, criminal justice data, healthcare professional licensure and sanctions of people in the U.S., as well as providing our employer customers with services that assist them in complying with and automating certain payroll-related and human resource management processes throughout the entire cycle of the employment relationship, including unemployment cost management, employee screening, employee onboarding, tax credits and incentives, I-9 management and compliance, immigration case management, tax form management services and Affordable Care Act management services. U.S. Information Solutions. This segment includes consumer and commercial information services (such as credit information and credit scoring, credit modeling services and portfolio analytics, locate services, fraud detection and prevention services, identity verification services and other consulting services); mortgage services; financial marketing services; identity management; and credit monitoring products sold to resellers or directly to consumers. International. We operate in the following regions: Asia Pacific, Europe, Canada, and Latin America. The International segment includes information services products, which includes consumer and commercial services (such as credit and financial information, credit scoring and credit modeling services), credit and other marketing products and services. In Asia Pacific, Europe, Latin America and Canada, we also provide information, technology and services to support debt collections and recovery management. In Europe and Canada, we also provide credit monitoring products to resellers or directly to consumers. Operating revenue and operating income by operating segment during the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended Nine Months Ended (In millions) September 30, September 30, Operating revenue: 2023 2022 2023 2022 Workforce Solutions $ 577.2 $ 558.9 $ 1,756.3 $ 1,817.1 U.S. Information Solutions 426.0 397.4 1,292.7 1,251.8 International 315.9 288.0 889.7 855.4 Total operating revenue $ 1,319.1 $ 1,244.3 $ 3,938.7 $ 3,924.3 Three Months Ended Nine Months Ended (In millions) September 30, September 30, Operating income: 2023 2022 2023 2022 Workforce Solutions $ 241.2 $ 231.0 $ 734.6 $ 820.6 U.S. Information Solutions 89.7 82.0 271.1 315.4 International 40.2 42.5 107.2 111.9 General Corporate Expense (124.7) (112.6) (424.4) (367.9) Total operating income $ 246.4 $ 242.9 $ 688.5 $ 880.0 Total assets by operating segment at September 30, 2023 and December 31, 2022 are as follows: September 30, December 31, (In millions) 2023 2022 Total assets: Workforce Solutions $ 4,173.0 $ 4,156.5 U.S. Information Solutions 3,314.0 3,291.4 International 3,931.1 3,106.8 General Corporate 930.8 993.2 Total assets $ 12,348.9 $ 11,547.9 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS(if necessary) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to Equifax | $ 162.2 | $ 165.7 | $ 412.9 | $ 588 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Officer Trading Arrangement [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The following table describes any contracts, instructions or written plans for the sale or purchase of Equifax securities and intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act that were adopted by our directors and executive officers during the quarter ended September 30, 2023: Name and Title Date of Adoption of Rule 10b5-1 Trading Plan Scheduled Expiration Date of Rule 10b5-1 Trading Plan(1) Aggregate Number of Securities to Be Purchased or Sold Rodolfo O. Ploder, Executive Vice President, President, Workforce Solutions 8/15/23 8/17/24 Sale of up to 63,652 shares of common stock in multiple transactions John J. Kelley III, Executive Vice President, Chief Legal Officer and Corporate Secretary 8/16/23 2/23/24 Sale of up to 52,221 shares of common stock in multiple transactions Julia A. Houston, Executive Vice President, Chief Strategy and Marketing Officer 8/16/23 2/23/24 Sale of up to 23,485 shares of common stock in multiple transactions (1) A trading plan may also expire on such earlier date that all transactions under the trading plan are completed. | |
Rule 10b5-1 Arrangement Adopted | true | |
Officer Trading Arrangement [Member] | John J. Kelley III [Member] | ||
Trading Arrangements, by Individual | ||
Name | John J. Kelley III | |
Title | Executive Vice President, Chief Legal Officer and Corporate Secretary | |
Adoption Date | 8/16/23 | |
Arrangement Duration | 191 days | |
Aggregate Available | 52,221 | 52,221 |
Officer Trading Arrangement [Member] | Julia A. Houston [Member] | ||
Trading Arrangements, by Individual | ||
Name | Julia A. Houston | |
Title | Executive Vice President, Chief Strategy and Marketing Officer | |
Adoption Date | 8/16/23 | |
Arrangement Duration | 191 days | |
Aggregate Available | 23,485 | 23,485 |
Director Trading Arrangement [Member] | Rodolfo O. Ploder [Member] | ||
Trading Arrangements, by Individual | ||
Name | Rodolfo O. Ploder | |
Title | Executive Vice President, President, Workforce Solutions | |
Adoption Date | 8/15/23 | |
Arrangement Duration | 368 days | |
Aggregate Available | 63,652 | 63,652 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations. We collect, organize and manage various types of financial, demographic, employment, criminal justice data and marketing information. Our products and services enable businesses to make credit and service decisions, manage their portfolio risk, automate or outsource certain payroll-related, tax and human resources business processes, and develop marketing strategies concerning consumers and commercial enterprises. We serve customers across a wide range of industries, including the financial services, mortgage, retail, telecommunications, utilities, automotive, brokerage, healthcare and insurance industries, as well as government agencies. We also enable consumers to manage and protect their financial health through a portfolio of products offered directly to consumers. As of September 30, 2023, we operated in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom, or U.K., Uruguay and the United States of America, or U.S. We also have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia and Singapore. On August 7, 2023, we purchased the remaining interest in our equity investment in a consumer and commercial credit information company in Brazil. We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, criminal justice data, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting institutions, and income and tax information primarily from large to mid-sized companies in the U.S. We process this information utilizing our proprietary information management systems. We also provide information, technology and services to support debt collections and recovery management. |
Basis of Presentation | Basis of Presentation. The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, the instructions to Form 10-Q and applicable sections of SEC Regulation S-X. This Form 10-Q should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). |
Earnings Per Share | Earnings Per Share. Our basic earnings per share, or EPS, is calculated as net income attributable to Equifax divided by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding. The net income amounts used in both our basic and diluted EPS calculations are the same. |
Financial Instruments | Financial Instruments. Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and short and long-term debt. The carrying amounts of these items, other than long-term debt, approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for publicly traded instruments, and for non-publicly traded instruments, through valuation techniques depending on the specific characteristics of the debt instrument, taking into account credit risk. |
Fair Value Measurements | Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing an asset or liability. We use a three level fair value hierarchy to prioritize the inputs used in valuation techniques between observable inputs that reflect quoted prices in active markets, inputs other than quoted prices with observable market data and unobservable data (e.g., a company’s own data). Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. We completed two acquisitions during the nine months ended September 30, 2023 and multiple acquisitions during the year ended December 31, 2022. The values of net assets acquired were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of definite-lived intangible assets acquired in these acquisitions were estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates in the present value calculations. |
Trade Accounts Receivable and Allowance for Doubtful Accounts | Trade Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at cost and are due in less than a year. Significant payment terms for customers are identified in the contract. We do not recognize interest income on our trade accounts receivable. Additionally, we generally do not require collateral from our customers related to our trade accounts receivable. |
Other Current Assets | Other Current Assets. |
Other Assets | Other Assets. Other assets on our Consolidated Balance Sheets primarily represent our investments in unconsolidated affiliates, the Company’s operating lease right-of-use assets, employee benefit trust assets, assets related to life insurance policies covering certain officers of the Company and long-term deferred tax assets. |
Equity Investment | Equity Investment. On August 7, 2023, we purchased the remaining interest of our equity investment in Boa Vista Serviços S.A. ("BVS"), a consumer and commercial credit information bureau in Brazil. Up until the date of acquisition, we recorded this equity investment within Other Assets at fair value, using observable Level 1 inputs. |
Other Current Liabilities | Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the current portion of our operating lease liabilities and various accrued liabilities such as interest expense, income taxes, accrued employee benefits, and insurance expense. Other current liabilities also include the offset to other current assets related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. |
Change in Accounting Principle and Recent Accounting Pronouncements | Change in Accounting Principle. In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The update provides clarifying guidance to reduce diversity in practice stating that contract assets, contract liabilities and deferred revenue acquired in business combinations should be measured in accordance with Accounting Standards Topic 606, rather than the fair value principles of Accounting Standards Topic 805. ASU 2021-08 is effective for all public business entities for annual periods beginning after December 15, 2022. This guidance must be applied on a prospective basis. As of January 1, 2023, we have adopted this standard as it relates to our current year business combinations. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. Recent Accounting Pronouncements. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The update extends the sunset date from ASU No. 2020-04 from December 31, 2022, to December 31, 2024. After this date, entities will no longer be permitted to apply the relief in Topic 848. We are still evaluating the impact, but do not expect the adoption of the standard to have a material impact on our Consolidated Financial Statements. In August 2023, the FASB issued ASU No. 2023-05 "Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement." The amendments in this update address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. The update requires that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). The amendments in this update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. This update will impact us if we enter into any joint venture agreements after January 1, 2025 and we will evaluate the impact accordingly. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Weighted-average shares outstanding (basic) 123.0 122.4 122.7 122.3 Effect of dilutive securities: Stock options and restricted stock units 0.9 0.9 0.9 1.0 Weighted-average shares outstanding (diluted) 123.9 123.3 123.6 123.3 |
Rollforward of Allowance for Doubtful Accounts | Below is a rollforward of our allowance for doubtful accounts for the three and nine months ended September 30, 2023 and 2022, respectively. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Allowance for doubtful accounts, beginning of period $ 17.0 $ 15.6 $ 19.1 $ 13.9 Current period bad debt expense 3.6 1.4 8.8 4.4 Write-offs, net of recoveries (2.3) (1.5) (9.6) (2.8) Allowance for doubtful accounts, end of period $ 18.3 $ 15.5 $ 18.3 $ 15.5 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Based on the information that management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, we disaggregate revenue as follows: Three Months Ended September 30, Change Nine Months Ended September 30, Change Consolidated Operating Revenue 2023 2022 $ % 2023 2022 $ % (In millions) (In millions) Verification Services $ 459.3 $ 454.5 $ 4.8 1 % $ 1,389.1 $ 1,472.4 $ (83.3) (6) % Employer Services 117.9 104.4 13.5 13 % 367.2 344.7 22.5 7 % Total Workforce Solutions 577.2 558.9 18.3 3 % 1,756.3 1,817.1 (60.8) (3) % Online Information Solutions 348.2 314.4 33.8 11 % 1,047.8 987.5 60.3 6 % Mortgage Solutions 27.3 32.1 (4.8) (15) % 90.8 112.3 (21.5) (19) % Financial Marketing Services 50.5 50.9 (0.4) (1) % 154.1 152.0 2.1 1 % Total U.S. Information Solutions 426.0 397.4 28.6 7 % 1,292.7 1,251.8 40.9 3 % Asia Pacific 85.5 87.1 (1.6) (2) % 263.1 263.7 (0.6) — % Europe 85.2 80.7 4.5 6 % 239.6 246.3 (6.7) (3) % Canada 65.1 66.2 (1.1) (2) % 194.7 191.8 2.9 2 % Latin America 80.1 54.0 26.1 48 % 192.3 153.6 38.7 25 % Total International 315.9 288.0 27.9 10 % 889.7 855.4 34.3 4 % Total operating revenue $ 1,319.1 $ 1,244.3 $ 74.8 6 % $ 3,938.7 $ 3,924.3 $ 14.4 — % |
Remaining Performance Obligation | We expect to recognize as revenue the following amounts related to our remaining performance obligations as of September 30, 2023, inclusive of foreign exchange impact: Performance Obligation Amount (In millions) Less than 1 year $ 25.7 1 to 3 years 28.9 3 to 5 years 14.3 Thereafter 21.8 Total remaining performance obligation $ 90.7 |
ACQUISITIONS AND INVESTMENTS (T
ACQUISITIONS AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Consideration Transferred | The following table summarizes the fair value of consideration exchanged to complete the acquisition of BVS: Fair value of consideration Amount (In millions) Cash transferred (1) $ 509.7 Equifax do Brasil common shares issued (2) 176.4 Equifax Brazilian Depositary Receipts ("Equifax BDRs") issued (3) 94.6 Fair value of 10% investment 88.9 Total value of consideration $ 869.6 (1) The cash transferred represents the actual cash transferred as part of the transaction. The cash portion of the consideration was funded primarily with borrowings under our commercial paper program. (2) The fair value of the 2,171,615 Equifax do Brasil common shares issued was determined based on the offer price for the outstanding BVS shares. (3) One Equifax BDR represents one share of Equifax Inc. common stock. The fair value of the 479,725 Equifax BDRs issued was determined based on the share price of Equifax Inc. as of August 7, 2023. |
Summary of Net Assets Acquired | The preliminary valuation of acquired assets and assumed liabilities at the date of the acquisition, include the following: Net assets acquired: Amount (In millions) Cash and cash equivalents $ 239.5 Trade accounts receivable and other current assets 36.2 Other assets, net 48.6 Purchased intangible assets (1) 241.9 Goodwill (2) 407.2 Total assets acquired 973.4 Total liabilities assumed (103.8) Net assets acquired $ 869.6 (1) Purchased intangible assets are further disaggregated in the following table. (2) The goodwill related to BVS is included in the Latin America reporting unit within our International reportable segment. |
Schedule of Definite-lived Intangible Assets | Purchased intangible assets Amount Weighted-average useful life (In millions) (In years) Customer relationships $ 172.4 10.0 Purchased data files 64.3 15.0 Trade names and other intangible assets 5.2 2.4 Total acquired definite-lived intangibles $ 241.9 11.2 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Amount of Goodwill | Changes in the amount of goodwill for the nine months ended September 30, 2023, are as follows: Workforce Solutions U.S. International Total Balance, December 31, 2022 $ 2,520.8 $ 2,004.8 $ 1,858.3 $ 6,383.9 Acquisitions — — 410.4 410.4 Adjustments to initial purchase price allocation (0.7) 1.4 0.3 1.0 Foreign currency translation — — (64.5) (64.5) Balance, September 30, 2023 $ 2,520.1 $ 2,006.2 $ 2,204.5 $ 6,730.8 |
Schedule of Purchased Intangible Assets | Purchased intangible assets at September 30, 2023 and December 31, 2022 consisted of the following: September 30, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets: (In millions) Purchased data files $ 1,136.5 $ (574.5) $ 562.0 $ 1,090.0 $ (527.8) $ 562.2 Customer relationships 1,036.7 (455.2) 581.5 874.6 (407.4) 467.2 Proprietary database 706.3 (157.3) 549.0 705.9 (115.0) 590.9 Acquired software and technology 222.2 (66.1) 156.1 225.4 (42.6) 182.8 Trade names, non-compete agreements and other intangible assets 83.3 (28.0) 55.3 41.2 (25.8) 15.4 Total definite-lived intangible assets $ 3,185.0 $ (1,281.1) $ 1,903.9 $ 2,937.1 $ (1,118.6) $ 1,818.5 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense related to definite-lived purchased intangible assets at September 30, 2023 is as follows: Years ending December 31, Amount (In millions) 2023 $ 66.0 2024 252.2 2025 247.4 2026 231.5 2027 218.7 Thereafter 888.1 $ 1,903.9 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Outstanding | Debt outstanding at September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 (In millions) Commercial paper $ 483.5 $ 566.8 Notes, 3.95%, due June 2023 — 400.0 Notes, 2.6%, due December 2024 750.0 750.0 Notes, 2.6%, due December 2025 400.0 400.0 Notes, 3.25%, due June 2026 275.0 275.0 Term loan, due August 2026 700.0 700.0 Notes, 5.10%, due December 2027 750.0 750.0 Notes, 5.10%, due June 2028 700.0 — Debentures, 6.9%, due July 2028 125.0 125.0 Notes, 3.1%, due May 2030 600.0 600.0 Notes, 2.35%, due September 2031 1,000.0 1,000.0 Notes, 7.0%, due July 2037 250.0 250.0 Other — 0.4 Total debt 6,033.5 5,817.2 Less short-term debt and current maturities (501.0) (967.2) Less unamortized discounts and debt issuance costs (32.1) (29.9) Total long-term debt, net $ 5,500.4 $ 4,820.1 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive loss by component, after tax, for the nine months ended September 30, 2023, are as follows: Foreign Pension and other Cash flow Total (In millions) Balance, December 31, 2022 $ (469.3) $ (3.4) $ (1.0) $ (473.7) Other comprehensive loss (90.2) — — (90.2) Balance, September 30, 2023 $ (559.5) $ (3.4) $ (1.0) $ (563.9) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Revenue, Operating Income by Operating Segment and Total Assets by Operating Segments | Operating revenue and operating income by operating segment during the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended Nine Months Ended (In millions) September 30, September 30, Operating revenue: 2023 2022 2023 2022 Workforce Solutions $ 577.2 $ 558.9 $ 1,756.3 $ 1,817.1 U.S. Information Solutions 426.0 397.4 1,292.7 1,251.8 International 315.9 288.0 889.7 855.4 Total operating revenue $ 1,319.1 $ 1,244.3 $ 3,938.7 $ 3,924.3 Three Months Ended Nine Months Ended (In millions) September 30, September 30, Operating income: 2023 2022 2023 2022 Workforce Solutions $ 241.2 $ 231.0 $ 734.6 $ 820.6 U.S. Information Solutions 89.7 82.0 271.1 315.4 International 40.2 42.5 107.2 111.9 General Corporate Expense (124.7) (112.6) (424.4) (367.9) Total operating income $ 246.4 $ 242.9 $ 688.5 $ 880.0 Total assets by operating segment at September 30, 2023 and December 31, 2022 are as follows: September 30, December 31, (In millions) 2023 2022 Total assets: Workforce Solutions $ 4,173.0 $ 4,156.5 U.S. Information Solutions 3,314.0 3,291.4 International 3,931.1 3,106.8 General Corporate 930.8 993.2 Total assets $ 12,348.9 $ 11,547.9 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Weighted-Average Outstanding Shares used in Calculations of Basic and Diluted EPS (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Weighted-average shares outstanding (basic) (in shares) | 123 | 122.4 | 122.7 | 122.3 |
Effect of dilutive securities: | ||||
Stock options and restricted stock units (in shares) | 0.9 | 0.9 | 0.9 | 1 |
Weighted-average shares outstanding (diluted) (in shares) | 123.9 | 123.3 | 123.6 | 123.3 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) segment shares | Sep. 30, 2023 USD ($) acquisition shares | Sep. 30, 2022 USD ($) shares | Aug. 07, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Fair value of long-term debt | $ 5,100 | $ 5,100 | $ 4,800 | |||
Carrying value of long-term debt | 5,600 | $ 5,600 | $ 5,300 | |||
Number of acquisitions | acquisition | 2 | |||||
Carrying value of equity investment | $ 58 | $ 58 | ||||
Loss on equity investment | 0.2 | |||||
Gain on equity investment | $ 7 | |||||
Unrealized gain (loss) on equity investment | 5.7 | (0.7) | ||||
Gain to fully impair investment | 6.2 | $ 27.5 | 6.2 | $ 27.5 | ||
Number of equity investments sold | segment | 2 | |||||
BVS | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Carrying value of equity investment | $ 88.9 | |||||
Other Current Assets | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Restricted cash and cash equivalents | 28.7 | 28.7 | ||||
Other Current Liabilities | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Restricted cash and cash equivalents | $ 28.7 | $ 28.7 | ||||
Stock options | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive stock options (in shares) | shares | 0 | 0 | 0 | 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Rollforward of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for doubtful accounts, beginning of period | $ 17 | $ 15.6 | $ 19.1 | $ 13.9 |
Current period bad debt expense | 3.6 | 1.4 | 8.8 | 4.4 |
Write-offs, net of recoveries | (2.3) | (1.5) | (9.6) | (2.8) |
Allowance for doubtful accounts, end of period | $ 18.3 | $ 15.5 | $ 18.3 | $ 15.5 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 1,319.1 | $ 1,244.3 | $ 3,938.7 | $ 3,924.3 |
Change in revenue | $ 74.8 | $ 14.4 | ||
Change in revenue (as a percent) | 6% | 0% | ||
Workforce Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 577.2 | 558.9 | $ 1,756.3 | 1,817.1 |
Change in revenue | $ 18.3 | $ (60.8) | ||
Change in revenue (as a percent) | 3% | (3.00%) | ||
Workforce Solutions | Verification Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 459.3 | 454.5 | $ 1,389.1 | 1,472.4 |
Change in revenue | $ 4.8 | $ (83.3) | ||
Change in revenue (as a percent) | 1% | (6.00%) | ||
Workforce Solutions | Employer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 117.9 | 104.4 | $ 367.2 | 344.7 |
Change in revenue | $ 13.5 | $ 22.5 | ||
Change in revenue (as a percent) | 13% | 7% | ||
U.S. Information Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 426 | 397.4 | $ 1,292.7 | 1,251.8 |
Change in revenue | $ 28.6 | $ 40.9 | ||
Change in revenue (as a percent) | 7% | 3% | ||
U.S. Information Solutions | Online Information Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 348.2 | 314.4 | $ 1,047.8 | 987.5 |
Change in revenue | $ 33.8 | $ 60.3 | ||
Change in revenue (as a percent) | 11% | 6% | ||
U.S. Information Solutions | Mortgage Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 27.3 | 32.1 | $ 90.8 | 112.3 |
Change in revenue | $ (4.8) | $ (21.5) | ||
Change in revenue (as a percent) | (15.00%) | (19.00%) | ||
U.S. Information Solutions | Financial Marketing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 50.5 | 50.9 | $ 154.1 | 152 |
Change in revenue | $ (0.4) | $ 2.1 | ||
Change in revenue (as a percent) | (1.00%) | 1% | ||
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 315.9 | 288 | $ 889.7 | 855.4 |
Change in revenue | $ 27.9 | $ 34.3 | ||
Change in revenue (as a percent) | 10% | 4% | ||
International | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 85.5 | 87.1 | $ 263.1 | 263.7 |
Change in revenue | $ (1.6) | $ (0.6) | ||
Change in revenue (as a percent) | (2.00%) | 0% | ||
International | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 85.2 | 80.7 | $ 239.6 | 246.3 |
Change in revenue | $ 4.5 | $ (6.7) | ||
Change in revenue (as a percent) | 6% | (3.00%) | ||
International | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 65.1 | 66.2 | $ 194.7 | 191.8 |
Change in revenue | $ (1.1) | $ 2.9 | ||
Change in revenue (as a percent) | (2.00%) | 2% | ||
International | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenue | $ 80.1 | $ 54 | $ 192.3 | $ 153.6 |
Change in revenue | $ 26.1 | $ 38.7 | ||
Change in revenue (as a percent) | 48% | 25% |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 90.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 3 months |
Total remaining performance obligation | $ 25.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 2 years |
Total remaining performance obligation | $ 28.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 2 years |
Total remaining performance obligation | $ 14.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | |
Total remaining performance obligation | $ 21.8 |
ACQUISITIONS AND INVESTMENTS (D
ACQUISITIONS AND INVESTMENTS (Details) - USD ($) $ in Millions | Aug. 07, 2023 | Sep. 30, 2022 | Mar. 31, 2022 |
BVS | |||
Business Acquisition [Line Items] | |||
Cash transferred | $ 509.7 | ||
BVS | Common Stock | Equifax do Brasil | |||
Business Acquisition [Line Items] | |||
Shares transferred (in shares) | 2,171,615 | ||
BVS | Common Stock | Equifax Inc. | |||
Business Acquisition [Line Items] | |||
Shares transferred (in shares) | 479,725 | ||
Efficient Hire | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 100% | ||
LawLogix | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 100% |
ACQUISITIONS AND INVESTMENTS -
ACQUISITIONS AND INVESTMENTS - Summary of Consideration Transferred (Details) - BVS $ in Millions | Aug. 07, 2023 USD ($) shares |
Business Acquisition [Line Items] | |
Cash transferred | $ 509.7 |
Equifax do Brasil common shares issued | 176.4 |
Equifax Brazilian Depositary Receipts ("Equifax BDRs") issued | 94.6 |
Fair value of 10% investment | 88.9 |
Total value of consideration | $ 869.6 |
Common Stock | Equifax do Brasil | |
Business Acquisition [Line Items] | |
Shares transferred (in shares) | shares | 2,171,615 |
Common Stock | Equifax Inc. | |
Business Acquisition [Line Items] | |
Shares transferred (in shares) | shares | 479,725 |
ACQUISITIONS AND INVESTMENTS _2
ACQUISITIONS AND INVESTMENTS - Summary of Net Assets Acquired (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Aug. 07, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 241.9 | ||
Goodwill | $ 6,730.8 | $ 6,383.9 | |
BVS | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 239.5 | ||
Trade accounts receivable and other current assets | 36.2 | ||
Other assets, net | 48.6 | ||
Identifiable intangible assets | 241.9 | ||
Goodwill | 407.2 | ||
Total assets acquired | 973.4 | ||
Total liabilities assumed | (103.8) | ||
Net assets acquired | $ 869.6 |
ACQUISITIONS AND INVESTMENTS _3
ACQUISITIONS AND INVESTMENTS - Schedule of Definite-lived Intangible Assets (Details) $ in Millions | Aug. 07, 2023 USD ($) |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 241.9 |
Weighted-average useful life | 11 years 2 months 12 days |
Customer relationships | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 172.4 |
Weighted-average useful life | 10 years |
Purchased data files | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 64.3 |
Weighted-average useful life | 15 years |
Trade names and other intangible assets | |
Business Acquisition [Line Items] | |
Identifiable intangible assets | $ 5.2 |
Weighted-average useful life | 2 years 4 months 24 days |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | $ 6,383.9 |
Acquisitions | 410.4 |
Adjustments to initial purchase price allocation | 1 |
Foreign currency translation | (64.5) |
Balance, End of period | 6,730.8 |
Workforce Solutions | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 2,520.8 |
Acquisitions | 0 |
Adjustments to initial purchase price allocation | (0.7) |
Foreign currency translation | 0 |
Balance, End of period | 2,520.1 |
U.S. Information Solutions | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 2,004.8 |
Acquisitions | 0 |
Adjustments to initial purchase price allocation | 1.4 |
Foreign currency translation | 0 |
Balance, End of period | 2,006.2 |
International | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 1,858.3 |
Acquisitions | 410.4 |
Adjustments to initial purchase price allocation | 0.3 |
Foreign currency translation | (64.5) |
Balance, End of period | $ 2,204.5 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to purchased intangible assets | $ 64.4 | $ 59.1 | $ 185.4 | $ 174.4 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Purchased Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 3,185 | $ 2,937.1 |
Accumulated Amortization | (1,281.1) | (1,118.6) |
Net | 1,903.9 | 1,818.5 |
Purchased data files | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,136.5 | 1,090 |
Accumulated Amortization | (574.5) | (527.8) |
Net | 562 | 562.2 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,036.7 | 874.6 |
Accumulated Amortization | (455.2) | (407.4) |
Net | 581.5 | 467.2 |
Proprietary database | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 706.3 | 705.9 |
Accumulated Amortization | (157.3) | (115) |
Net | 549 | 590.9 |
Acquired software and technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 222.2 | 225.4 |
Accumulated Amortization | (66.1) | (42.6) |
Net | 156.1 | 182.8 |
Trade names, non-compete agreements and other intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 83.3 | 41.2 |
Accumulated Amortization | (28) | (25.8) |
Net | $ 55.3 | $ 15.4 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 66 | |
2024 | 252.2 | |
2025 | 247.4 | |
2026 | 231.5 | |
2027 | 218.7 | |
Thereafter | 888.1 | |
Net | $ 1,903.9 | $ 1,818.5 |
DEBT - Schedule of Debt Outstan
DEBT - Schedule of Debt Outstanding (Details) - USD ($) $ in Millions | Sep. 30, 2023 | May 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Aug. 31, 2021 |
Debt Instrument [Line Items] | |||||
Total debt | $ 6,033.5 | $ 5,817.2 | |||
Less short-term debt and current maturities | (501) | (967.2) | |||
Less unamortized discounts and debt issuance costs | (32.1) | (29.9) | |||
Total long-term debt, net | 5,500.4 | 4,820.1 | |||
Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 483.5 | 566.8 | |||
Notes, 3.95%, due June 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 3.95% | ||||
Total debt | $ 0 | 400 | |||
Notes, 2.6%, due December 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 2.60% | ||||
Total debt | $ 750 | 750 | |||
Notes, 2.6%, due December 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 2.60% | ||||
Total debt | $ 400 | 400 | |||
Notes, 3.25%, due June 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 3.25% | ||||
Total debt | $ 275 | 275 | |||
Term loan, due August 2026 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 700 | 700 | $ 700 | ||
Notes, 5.10%, due December 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 5.10% | 5.10% | |||
Total debt | $ 750 | 750 | |||
Notes, 5.10%, due June 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 5.10% | 5.10% | |||
Total debt | $ 700 | 0 | |||
Debentures, 6.9%, due July 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 6.90% | ||||
Total debt | $ 125 | 125 | |||
Notes, 3.1%, due May 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 3.10% | ||||
Total debt | $ 600 | 600 | |||
Notes, 2.35%, due September 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 2.35% | ||||
Total debt | $ 1,000 | 1,000 | |||
Notes, 7.0%, due July 2037 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate (as a percent) | 7% | ||||
Total debt | $ 250 | 250 | |||
Other | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 0.4 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Aug. 31, 2021 USD ($) extension | Sep. 30, 2021 | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 01, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt issued | $ 6,033.5 | $ 5,817.2 | |||||
Letters of credit outstanding, amount | $ 0.4 | ||||||
Commercial paper notes | $ 1,500 | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 1 year | ||||||
Commercial paper, maturity period range | 397 days | 365 days | |||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commercial paper, maturity period range | 90 days | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Credit facility borrowing capacity | $ 1,500 | ||||||
Line of credit, maximum number of extensions | extension | 3 | ||||||
Line of credit facility, expiration date, extension period | 1 year | ||||||
Line of credit facility, available for borrowing | $ 1,016.1 | ||||||
Notes, 5.10%, due June 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate (as a percent) | 5.10% | 5.10% | |||||
Amount issued | $ 700 | ||||||
Debt instrument, term | 5 years | ||||||
Repayments of revolving credit facility | $ 400 | ||||||
Aggregate principal amount of debt issued | $ 700 | 0 | |||||
Notes, 5.10%, due December 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate (as a percent) | 5.10% | 5.10% | |||||
Amount issued | $ 750 | ||||||
Debt instrument, term | 5 years | ||||||
Repayments of revolving credit facility | $ 500 | ||||||
Aggregate principal amount of debt issued | $ 750 | 750 | |||||
Notes, 3.3%, due December 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate (as a percent) | 3.30% | ||||||
Term loan, due August 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt issued | $ 700 | 700 | 700 | ||||
Outstanding borrowings | 700 | ||||||
Commercial paper | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt issued | $ 483.5 | $ 566.8 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 USD ($) claim | Sep. 30, 2023 plaintiff claim | Sep. 30, 2023 claim | Jun. 09, 2021 claim | |
2017 Cybersecurity Incident | Settled Litigation | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Penalty amount | $ | $ 13.8 | |||
Maximum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Debt instrument, term (or less) | 1 year | |||
Canada | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Pending claims | 5 | 5 | 5 | |
Pending national class actions | 4 | 4 | 4 | |
Number of plaintiffs | plaintiff | 19,000 | |||
Number of claims appealed | 1 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Effective income tax rate (as a percent) | 13.90% | 24% | 22% | 25% |
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | $ 0 | $ 0 | ||
Increase in unrecognized tax benefits is reasonably possible | 0 | 0 | ||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | 8,400,000 | 8,400,000 | ||
Increase in unrecognized tax benefits is reasonably possible | $ 8,400,000 | $ 8,400,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Income (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 3,973.3 |
Ending Balance | 4,309.1 |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (473.7) |
Other comprehensive loss | (90.2) |
Ending Balance | (563.9) |
Foreign currency translation adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (469.3) |
Other comprehensive loss | (90.2) |
Ending Balance | (559.5) |
Pension and other postretirement benefit plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (3.4) |
Other comprehensive loss | 0 |
Ending Balance | (3.4) |
Cash flow hedging transactions | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (1) |
Other comprehensive loss | 0 |
Ending Balance | $ (1) |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Second Quarter 2023 | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for restructuring | $ 7.3 | ||
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ (2.3) | 17.5 | $ 24 |
Restructuring charges, net of tax | $ 1.7 | $ 12.4 | $ 18 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Number of operating segments | 3 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Operating Revenue and Operating Income by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Operating revenue | $ 1,319.1 | $ 1,244.3 | $ 3,938.7 | $ 3,924.3 |
Operating income | 246.4 | 242.9 | 688.5 | 880 |
General Corporate Expense | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (124.7) | (112.6) | (424.4) | (367.9) |
Workforce Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 577.2 | 558.9 | 1,756.3 | 1,817.1 |
Workforce Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 241.2 | 231 | 734.6 | 820.6 |
U.S. Information Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 426 | 397.4 | 1,292.7 | 1,251.8 |
U.S. Information Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 89.7 | 82 | 271.1 | 315.4 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 315.9 | 288 | 889.7 | 855.4 |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 40.2 | $ 42.5 | $ 107.2 | $ 111.9 |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Total Assets by Operating Segments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Assets | $ 12,348.9 | $ 11,547.9 |
Operating Segments | Workforce Solutions | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,173 | 4,156.5 |
Operating Segments | U.S. Information Solutions | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,314 | 3,291.4 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,931.1 | 3,106.8 |
General Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 930.8 | $ 993.2 |