Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 05, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $1.25 par value per share | |
Trading Symbol | EFX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 123,611,310 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000033185 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Operating revenue | $ 1,389.4 | $ 1,302 |
Operating expenses: | ||
Cost of services (exclusive of depreciation and amortization below) | 627.7 | 580.4 |
Selling, general and administrative expenses | 372.6 | 366.1 |
Depreciation and amortization | 164.4 | 150.1 |
Total operating expenses | 1,164.7 | 1,096.6 |
Operating income | 224.7 | 205.4 |
Interest expense | (59.7) | (57.6) |
Other income, net | 1.6 | 4.4 |
Consolidated income before income taxes | 166.6 | 152.2 |
Provision for income taxes | (40.5) | (38.7) |
Consolidated net income | 126.1 | 113.5 |
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests | (1.2) | (1.1) |
Net income attributable to Equifax | $ 124.9 | $ 112.4 |
Basic earnings per common share: | ||
Net income attributable to Equifax (in dollars per share) | $ 1.01 | $ 0.92 |
Weighted-average shares used in computing basic earnings per share (in shares) | 123.5 | 122.6 |
Diluted earnings per common share: | ||
Net income attributable to Equifax (in dollars per share) | $ 1 | $ 0.91 |
Weighted-average shares used in computing diluted earnings per share (in shares) | 124.8 | 123.5 |
Dividends per common share (in dollars per share) | $ 0.39 | $ 0.39 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income | $ 126.1 | $ 113.5 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (98.9) | 12.9 |
Change in cumulative gain from cash flow hedging transactions, net | 0.1 | 0 |
Comprehensive income (loss) | 27.3 | 126.4 |
Equifax Shareholders | ||
Net income | 124.9 | 112.4 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (95.4) | 12.6 |
Change in cumulative gain from cash flow hedging transactions, net | 0.1 | 0 |
Comprehensive income (loss) | 29.6 | 125 |
Noncontrolling Interests including Redeemable Noncontrolling Interests | ||
Net income | 1.2 | 1.1 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (3.5) | 0.3 |
Change in cumulative gain from cash flow hedging transactions, net | 0 | 0 |
Comprehensive income (loss) | $ (2.3) | $ 1.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 201 | $ 216.8 |
Trade accounts receivable, net of allowance for doubtful accounts of $16.4 and $16.7 at March 31, 2024 and December 31, 2023, respectively | 1,006.1 | 908.2 |
Prepaid expenses | 170.7 | 142.5 |
Other current assets | 71.7 | 88.8 |
Total current assets | 1,449.5 | 1,356.3 |
Property and equipment: | ||
Capitalized internal-use software and system costs | 2,596 | 2,541 |
Data processing equipment and furniture | 248.4 | 247.9 |
Land, buildings and improvements | 282.5 | 272.9 |
Total property and equipment | 3,126.9 | 3,061.8 |
Less accumulated depreciation and amortization | (1,276.7) | (1,227.8) |
Total property and equipment, net | 1,850.2 | 1,834 |
Noncurrent assets: | ||
Goodwill | 6,761.3 | 6,829.9 |
Indefinite-lived intangible assets | 94.8 | 94.8 |
Purchased intangible assets, net | 1,773.5 | 1,858.8 |
Other assets, net | 322 | 306.2 |
Total assets | 12,251.3 | 12,280 |
Current liabilities: | ||
Short-term debt and current maturities of long-term debt | 880 | 963.4 |
Accounts payable | 198.1 | 197.6 |
Accrued expenses | 306.2 | 245.1 |
Accrued salaries and bonuses | 113.5 | 168.7 |
Deferred revenue | 113.2 | 109.5 |
Other current liabilities | 362.8 | 334.7 |
Total current liabilities | 1,973.8 | 2,019 |
Noncurrent liabilities: | ||
Long-term debt | 4,745.3 | 4,747.8 |
Deferred income tax liabilities, net | 454.1 | 474.9 |
Long-term pension and other postretirement benefit liabilities | 97.7 | 100.1 |
Other long-term liabilities | 268.2 | 250.7 |
Total liabilities | 7,539.1 | 7,592.5 |
Commitments and Contingencies (see Note 6) | ||
Redeemable noncontrolling interests | 131.6 | 135.1 |
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 March 31, 2024 and December 31, 2023; Outstanding shares - 123.6 and 123.3 at March 31, 2024 and December 31, 2023, respectively | 236.6 | 236.6 |
Paid-in capital | 1,824.7 | 1,761.3 |
Retained earnings | 5,685 | 5,608.6 |
Accumulated other comprehensive loss | (526.5) | (431.2) |
Treasury stock, at cost, 65.1 shares and 65.4 shares at March 31, 2024 and December 31, 2023, respectively | (2,652.4) | (2,635.3) |
Stock held by employee benefits trusts, at cost, 0.6 shares at March 31, 2024 and December 31, 2023 | (5.9) | (5.9) |
Total Equifax shareholders’ equity | 4,561.5 | 4,534.1 |
Noncontrolling interests | 19.1 | 18.3 |
Total shareholders' equity | 4,580.6 | 4,552.4 |
Total liabilities, redeemable noncontrolling interests, and shareholders' equity | $ 12,251.3 | $ 12,280 |
Stock held by employee benefits trusts (in shares) | 0.6 | 0.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 16.4 | $ 16.7 |
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) | 123.6 | 123.3 |
Treasury stock (in shares) | 65.1 | 65.4 |
Stock held by employee benefits trusts (in shares) | 0.6 | 0.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Consolidated net income | $ 126.1 | $ 113.5 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 166.6 | 152.2 |
Stock-based compensation expense | 41.2 | 39.7 |
Deferred income taxes | (17.9) | (11.9) |
Gain on fair market value adjustment of equity investments | 0 | (3.1) |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Accounts receivable, net | (102.5) | (60.8) |
Other assets, current and long-term | (15.2) | (25) |
Current and long term liabilities, excluding debt | 54.4 | (53.7) |
Cash provided by operating activities | 252.7 | 150.9 |
Investing activities: | ||
Capital expenditures | (131.9) | (158.3) |
Acquisitions, net of cash acquired | 0 | (4.3) |
Cash used in investing activities | (131.9) | (162.6) |
Financing activities: | ||
Net short-term payments | (83.4) | (160.8) |
Payments on long-term debt | (4.4) | 0 |
Borrowings on long-term debt | 0 | 175 |
Dividends paid to Equifax shareholders | (48.2) | (47.9) |
Distributions paid to noncontrolling interests | (0.4) | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 19.9 | 6.6 |
Payment of taxes related to settlement of equity awards | (15.4) | (15.9) |
Debt issuance costs | 0 | (0.3) |
Cash used in financing activities | (131.9) | (43.3) |
Effect of foreign currency exchange rates on cash and cash equivalents | (4.7) | 2.3 |
Decrease in cash and cash equivalents | (15.8) | (52.7) |
Cash and cash equivalents, beginning of period | 216.8 | 285.2 |
Cash and cash equivalents, end of period | $ 201 | $ 232.5 |
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, 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 | 113.5 | 112.4 | 1.1 | |||||
Other comprehensive income | 12.9 | 12.6 | 0.3 | |||||
Shares issued under stock and benefit plans, net of minimum tax withholdings (in shares) | 0.1 | |||||||
Shares issued under stock and benefit plans, net of minimum tax withholdings | (9.3) | (3) | (6.3) | |||||
Cash dividends | (48.1) | (48.1) | ||||||
Dividends paid to employee benefits trusts | 0.2 | 0.2 | ||||||
Stock-based compensation expense | 39.7 | 39.7 | ||||||
Ending Balance (in shares) at Mar. 31, 2023 | 122.6 | |||||||
Ending Balance at Mar. 31, 2023 | 4,082.2 | $ 236.6 | 1,631.1 | 5,320.3 | (461.1) | (2,657) | (5.9) | 18.2 |
Beginning Balance (in shares) at Dec. 31, 2023 | 123.3 | |||||||
Beginning Balance at Dec. 31, 2023 | 4,552.4 | $ 236.6 | 1,761.3 | 5,608.6 | (431.2) | (2,635.3) | (5.9) | 18.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 126.1 | 124.9 | 1.2 | |||||
Other comprehensive loss | (95.3) | (95.3) | ||||||
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 | 4.8 | 21.9 | (17.1) | |||||
Cash dividends | (48.5) | (48.5) | ||||||
Dividends paid to employee benefits trusts | 0.3 | 0.3 | ||||||
Stock-based compensation expense | 41.2 | 41.2 | ||||||
Dividends paid to noncontrolling interests | (0.4) | (0.4) | ||||||
Ending Balance (in shares) at Mar. 31, 2024 | 123.6 | |||||||
Ending Balance at Mar. 31, 2024 | $ 4,580.6 | $ 236.6 | $ 1,824.7 | $ 5,685 | $ (526.5) | $ (2,652.4) | $ (5.9) | $ 19.1 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends, per share (in dollars per share) | $ 0.39 | $ 0.39 |
CONSOLIDATED STATEMENTS OF ACCU
CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENISVE LOSS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Other Comprehensive Income [Abstract] | ||
Foreign currency translation | $ (522.1) | $ (426.7) |
Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $1.1 and $1.2 at March 31, 2024 and December 31, 2023, respectively | (3.6) | (3.6) |
Cash flow hedging transactions, net of tax of $0.5 at March 31, 2024 and December 31, 2023 | (0.8) | (0.9) |
Accumulated other comprehensive loss | $ (526.5) | $ (431.2) |
CONSOLIDATED STATEMENTS OF AC_2
CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENISVE LOSS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
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 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, 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 ("U.K."), Uruguay and the United States of America ("U.S."). We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. 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, payroll processors, 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 unaudited Consolidated Financial Statements and the accompanying notes 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, 2023 (“2023 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 March 31, 2024 2023 (In millions) Weighted-average shares outstanding (basic) 123.5 122.6 Effect of dilutive securities: Stock options and restricted stock units 1.3 0.9 Weighted-average shares outstanding (diluted) 124.8 123.5 For the three months ended March 31, 2024 and 2023, 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 March 31, 2024 and December 31, 2023, the fair value of our long-term debt, including the current portion, based on observable inputs was $5.3 billion, compared to its carrying value of $5.5 billion for both periods. 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 did not complete any acquisitions during the three months ended March 31, 2024 and we completed two acquisitions during the year ended December 31, 2023. 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 and cost approaches. 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. The cost approach estimates fair value based on determining the amount of money required to replace the asset with another asset with equivalent utility or future service capability. 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 months ended March 31, 2024 and 2023, respectively. Three Months Ended March 31, 2024 2023 (In millions) Allowance for doubtful accounts, beginning of period $ 16.7 $ 19.1 Current period bad debt expense 4.7 3.6 Write-offs, net of recoveries (5.0) (2.6) Allowance for doubtful accounts, end of period $ 16.4 $ 20.1 Other Current Assets. Other current assets on our Consolidated Balance Sheets primarily include amounts receivable from tax authorities and related to vendor rebates. Other current assets also include amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of March 31, 2024, these assets were $29.9 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 $77.3 million as of March 31, 2023, resulting in an unrealized gain of $3.1 million for the three months ended March 31, 2023, which was recorded in Other income, net within the Consolidated Statements of Income. Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the current portion of our operating lease liabilities and various accrued liabilities such as interest expense, income taxes, accrued employee benefits, and insurance expense. Other current liabilities also include the offset to other current assets related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of March 31, 2024, these funds were $29.9 million. These amounts are restricted as to their current use and will be released according to the specific customer agreements. 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 exercise this right at any point. We determined that the noncontrolling interest shareholder rights meet the requirements to be considered redeemable. Therefore, we have classified the noncontrolling interest outside of permanent equity within our Consolidated Balance Sheet. Currently, the noncontrolling interest is not redeemable but it is probable that it will become redeemable in the future. The redeemable noncontrolling interest is reflected using the redemption method as of the balance sheet date. Redeemable noncontrolling interest adjustments to the redemption values are reflected in retained earnings. The adjustment of redemption value at the period end that reflects a redemption value to an amount other than fair value is included as an adjustment to net income attributable to Equifax stockholders for the purposes of the calculation of earnings per share. None of the current period adjustments reflect a redemption value in excess of fair value. The Company's redeemable noncontrolling interests activities for the three months ended March 31, 2024 are summarized as follows: Three Months Ended March 31, Redeemable noncontrolling interests: 2024 (In millions) Redeemable noncontrolling interests, beginning of period $ 135.1 Effect of foreign currency translation attributable to redeemable noncontrolling interest (3.5) Redeemable noncontrolling interests, end of period $ 131.6 Adoption of New Accounting Standards. Reference Rate Reform . In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. 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. The adoption of the standard did not have a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements. Stock Compensation. In March 2024, the FASB issued ASU No. 2024-01 "Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards." The amendments in this update clarify how an entity determines whether a profits interest or similar award (“profits interest award”) is (1) within the scope of ASC 718 or (2) not a share-based payment arrangement and should be accounted for in a manner similar to a cash bonus or profit-sharing arrangement under ASC 710 or other ASC topics. The amendments specifically add an illustrative example that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The fact patterns in the illustrative example focus on the scope conditions in paragraph 718-10-15-3. The illustrative example is intended to reduce (1) complexity in determining whether a profits interest award is subject to the guidance in Topic 718 and (2) existing diversity in practice. The amendments in this update are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. We are still evaluating whether this update will impact the way we account for our stock-based compensation awards. Income Taxes . In December 2023, the FASB issued ASU No. 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The new ASU requires public business entities, on an annual basis, to provide a tabular rate reconciliation (using both percentages and reporting currency amounts) of (1) the reported income tax expense (or benefit) from continuing operations, to (2) the product of the income (or loss) from continuing operations before income taxes and the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile using specific categories and separate disclosure for any reconciling items within certain categories that are equal to or greater than a specified quantitative threshold. A public business entity is required to provide an explanation, if not otherwise evident, of the individual reconciling items disclosed, such as the nature, effect, and underlying causes of the reconciling items and the judgment used in categorizing the reconciling items. For each annual period presented, the ASU requires all reporting entities to disclose the year-to-date amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign. It also requires additional disaggregated information on income taxes paid (net of refunds received) to an individual jurisdiction equal to or greater than 5% of total income taxes paid (net of refunds received). The ASU requires that all reporting entities disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU is effective for public entities for annual periods beginning after December 15, 2024. We are still evaluating the impact on our financial statement disclosures. Segment Reporting . In November 2023, the FASB issued ASU No. 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments in this update address the requirement for a public entity to disclose its significant segment expense categories and amounts for each reportable segment. A significant segment expense is any significant expense incurred by the segment, including direct expenses, shared expenses, allocated corporate overhead, or interest expense that is regularly reported to the chief operating decision maker and is included in the measure of segment profit or loss. The disclosure of significant segment expenses is in addition to the current specifically-enumerated segment expenses required to be disclosed, such as depreciation and interest expense. If a public entity does not disclose any significant segment expenses for a reportable segment, it is required to disclose narratively the nature of the expenses used by the chief operating decision maker to manage the segment's operations. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. 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. Business Combinations . 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, Change Consolidated Operating Revenue 2024 2023 $ % (In millions) Verification Services $ 476.5 $ 455.8 $ 20.7 5 % Employer Services 126.3 140.5 (14.2) (10) % Total Workforce Solutions 602.8 596.3 6.5 1 % Online Information Solutions 380.2 341.0 39.2 12 % Mortgage Solutions 38.0 33.3 4.7 14 % Financial Marketing Services 47.1 47.4 (0.3) (1) % Total U.S. Information Solutions 465.3 421.7 43.6 10 % Latin America 91.1 55.3 35.8 65 % Europe 86.2 75.7 10.5 14 % Asia Pacific 78.2 89.9 (11.7) (13) % Canada 65.8 63.1 2.7 4 % Total International 321.3 284.0 37.3 13 % Total operating revenue $ 1,389.4 $ 1,302.0 $ 87.4 7 % Remaining Performance Obligation – We have elected to disclose only the remaining performance obligations for those contracts with an expected duration of greater than one year and do not disclose the value of remaining performance obligations for contracts in which we recognize revenue at the amount to which we have the right to invoice. We expect to recognize as revenue the following amounts related to our remaining performance obligations as of March 31, 2024, inclusive of foreign exchange impact: Performance Obligation Amount (In millions) Less than 1 year $ 27.9 1 to 3 years 32.1 3 to 5 years 14.7 Thereafter 18.6 Total remaining performance obligation $ 93.3 |
ACQUISITIONS AND INVESTMENTS
ACQUISITIONS AND INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND INVESTMENTS | ACQUISITIONS AND INVESTMENTS 2023 Acquisitions and Investments. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
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 December 1. Changes in the amount of goodwill for the three months ended March 31, 2024, are as follows: Workforce Solutions U.S. International Total Balance, December 31, 2023 $ 2,520.2 $ 2,006.2 $ 2,303.5 $ 6,829.9 Adjustments to initial purchase price allocation — — 1.7 1.7 Foreign currency translation (0.1) — (70.2) (70.3) Balance, March 31, 2024 $ 2,520.1 $ 2,006.2 $ 2,235.0 $ 6,761.3 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 annual impairment test as of December 1, at which point the estimated fair value of our indefinite-lived intangibles exceeded the carrying value. Our indefinite-lived intangible asset carrying amounts did not change materially during the three months ended March 31, 2024. 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, Canada and Dominican Republic. 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 2023 Form 10-K. Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets: (In millions) Purchased data files $ 1,141.8 $ (618.6) $ 523.2 $ 1,158.5 $ (604.2) $ 554.3 Customer relationships 1,040.7 (498.7) 542.0 1,053.5 (484.2) 569.3 Proprietary database 705.7 (185.6) 520.1 705.8 (171.5) 534.3 Acquired software and technology 222.2 (84.2) 138.0 222.5 (75.4) 147.1 Trade names, non-compete agreements and other intangible assets 74.0 (23.8) 50.2 79.6 (25.8) 53.8 Total definite-lived intangible assets $ 3,184.4 $ (1,410.9) $ 1,773.5 $ 3,219.9 $ (1,361.1) $ 1,858.8 Amortization expense related to purchased intangible assets was $67.0 million and $60.7 million during the three months ended March 31, 2024 and 2023, respectively. Estimated future amortization expense related to definite-lived purchased intangible assets at March 31, 2024 is as follows: Years ending December 31, Amount (In millions) 2024 $ 196.1 2025 255.1 2026 239.2 2027 226.5 2028 170.4 Thereafter 686.2 $ 1,773.5 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt outstanding at March 31, 2024 and December 31, 2023 was as follows: March 31, 2024 December 31, 2023 (In millions) Commercial paper ("CP") $ 112.5 $ 196.0 Notes, 2.60%, due December 2024 750.0 750.0 Notes, 2.60%, due December 2025 400.0 400.0 Notes, 3.25%, due June 2026 275.0 275.0 Term loan, due August 2026 691.3 695.6 Notes, 5.10%, due December 2027 750.0 750.0 Notes, 5.10%, due June 2028 700.0 700.0 Debentures, 6.90%, due July 2028 125.0 125.0 Notes, 3.10%, due May 2030 600.0 600.0 Notes, 2.35%, due September 2031 1,000.0 1,000.0 Notes, 7.00%, due July 2037 250.0 250.0 Total debt 5,653.8 5,741.6 Less short-term debt and current maturities (880.0) (963.4) Less unamortized discounts and debt issuance costs (28.5) (30.4) Total long-term debt, net $ 4,745.3 $ 4,747.8 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 CP notes and by any letters of credit issued under the Revolver. As of March 31, 2024, there were $112.5 million of outstanding CP notes, $0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver and $691.3 million outstanding under the Term Loan. Availability under the Revolver was $1,387.1 million at March 31, 2024. Commercial Paper Program. Our $1.5 billion CP program has been established through the private placement of CP 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 March 31, 2024, there were $112.5 million of outstanding CP notes. We have disclosed the net short-term borrowing activity for the three months ended March 31, 2024 in the Consolidated Statements of Cash Flows. There were no CP borrowings or payments with a maturity date greater than 90 days and less than 365 days for the three months ended March 31, 2024. The amount disclosed includes CP borrowings of $97.0 million and payments of $108.8 million with a maturity date greater than 90 days and less than 365 days for the three months ended March 31, 2023. For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our 2023 Form 10-K. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Remaining Matters Related to 2017 Cybersecurity Incident Canadian Class Actions . 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 a material cybersecurity incident in 2017. 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. The Ontario class action has been certified in part but is otherwise at a preliminary stage. All other purported class actions are at preliminary stages or stayed. 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 2024 and 2029. 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 will from time to time issue standby letters of credit, performance or surety bonds or other guarantees in the normal course of business. The aggregate notional amount of all standby letters of credit, performance bonds and surety bonds is not material at March 31, 2024 and these instruments 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 is not material at March 31, 2024. 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. Many of our commercial agreements contain commercially standard indemnification obligations related to tort, material breach or other liabilities that arise during the course of performance under the agreement. These indemnification obligations are typically mutual. We are the lessee under many real estate leases. It is common in these commercial lease transactions for us, as the lessee, to agree to indemnify the lessor and other related third parties for tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. This type of indemnity would typically make us responsible to indemnified parties for liabilities arising out of the conduct of, among others, contractors, licensees and invitees at or in connection with the use or occupancy of the leased premises. This indemnity often extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by either their sole or gross negligence and their willful misconduct. 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 certain of these credit agreements, we also bear the risk of certain changes in tax laws that would subject payments to non-U.S. lenders to withholding taxes. 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. The Company has entered into indemnification agreements with its directors and executive officers. Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers and to advance expenses incurred by such individuals in connection with the related legal proceedings. 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 2023 Form 10-K. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Equifax and its subsidiaries 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 2020. 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 $15.0 million. Effective Tax Rate Our effective income tax rate was 24.3% for the three months ended March 31, 2024, compared to 25.4% for the three months ended March 31, 2023. Our effective tax rate was lower for the first three months of 2024 as compared to the same periods in 2023 due to more favorable discrete benefits, none of which were individually material, as compared to the prior year, which were partially offset by an increase in the foreign rate differential. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in accumulated other comprehensive loss by component, after tax, for the three months ended March 31, 2024, are as follows: Foreign Pension and other Cash flow Total (In millions) Balance, December 31, 2023 $ (426.7) $ (3.6) $ (0.9) $ (431.2) Other comprehensive (loss) income (95.4) — 0.1 (95.3) Balance, March 31, 2024 $ (522.1) $ (3.6) $ (0.8) $ (526.5) Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of March 31, 2024. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES Restructuring costs consist of severance costs, contract termination and associated costs, and other exit and disposal costs. Severance costs relate to a reduction in headcount, contract termination costs primarily relate to penalties for early termination of contracts and associated costs of transition, and other exit and disposal costs primarily relate to real estate exit costs. During the twelve months ended December 31, 2023, we recorded $37.6 million 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 and contract termination and associated costs. As of March 31, 2024, $28.0 million of the 2023 restructuring charges have been paid with the remaining future payments expected to be completed by the fourth quarter of 2024. The changes during the three months ended March 31, 2024 in the liabilities associated with the restructuring charges recorded during 2023, including expenses incurred and cash payments, are as follows: Liability balance as of 12/31/2023 Expenses Incurred Cash Payments Liability balance as of 3/31/2024 Restructuring charges: (In millions) Severance costs $ 13.4 $ — $ (5.1) $ 8.3 Contract terminations and other associated costs 4.9 — (3.3) 1.6 Total $ 18.3 $ — $ (8.4) $ 9.9 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 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. 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 and Latin America, 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 months ended March 31, 2024 and 2023 are as follows: Three Months Ended (In millions) March 31, Operating revenue: 2024 2023 Workforce Solutions $ 602.8 $ 596.3 U.S. Information Solutions 465.3 421.7 International 321.3 284.0 Total operating revenue $ 1,389.4 $ 1,302.0 Three Months Ended (In millions) March 31, Operating income: 2024 2023 Workforce Solutions $ 255.1 $ 248.7 U.S. Information Solutions 92.6 78.6 International 31.9 32.7 General Corporate Expense (154.9) (154.6) Total operating income $ 224.7 $ 205.4 Total assets by operating segment at March 31, 2024 and December 31, 2023 are as follows: March 31, December 31, (In millions) 2024 2023 Total assets: Workforce Solutions $ 4,164.9 $ 4,144.7 U.S. Information Solutions 3,452.1 3,296.1 International 3,773.7 3,909.0 General Corporate 860.6 930.2 Total assets $ 12,251.3 $ 12,280.0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income attributable to Equifax | $ 124.9 | $ 112.4 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Carla J. Chaney [Member] | |
Trading Arrangements, by Individual | |
Name | Carla J. Chaney |
Title | Executive Vice President, Chief Human Resources Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 2/23/24 |
Arrangement Duration | 271 days |
Aggregate Available | 15,282 |
John W. Gamble, Jr. [Member] | |
Trading Arrangements, by Individual | |
Name | John W. Gamble, Jr. |
Title | Executive Vice President, Chief Financial Officer and Chief Operations Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 2/28/24 |
Arrangement Duration | 183 days |
Aggregate Available | 5,000 |
Julia A. Houston [Member] | |
Trading Arrangements, by Individual | |
Name | Julia A. Houston |
Title | Executive Vice President, Chief Strategy and Marketing Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 2/23/24 |
Arrangement Duration | 184 days |
Aggregate Available | 9,095 |
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 March 31, 2024: 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 Carla J. Chaney, Executive Vice President, Chief Human Resources Officer 2/23/24 11/20/24 Sale of up to 15,282 shares of common stock in multiple transactions John W. Gamble, Jr., Executive Vice President, Chief Financial Officer and Chief Operations Officer 2/28/24 8/29/24 Sale of up to 5,000 shares of common stock in multiple transactions Julia A. Houston, Executive Vice President, Chief Strategy and Marketing Officer 2/23/24 8/25/24 Sale of up to 9,095 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, 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 ("U.K."), Uruguay and the United States of America ("U.S."). We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. 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, payroll processors, 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 unaudited Consolidated Financial Statements and the accompanying notes 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, 2023 (“2023 Form 10-K”). |
Earnings Per Share | Earnings Per Share. |
Financial Instruments | Financial Instruments. |
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 did not complete any acquisitions during the three months ended March 31, 2024 and we completed two acquisitions during the year ended December 31, 2023. 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 and cost approaches. 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. The cost approach estimates fair value based on determining the amount of money required to replace the asset with another asset with equivalent utility or future service capability. |
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. |
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 |
Other Current Liabilities | Other Current Liabilities. |
Redeemable Noncontrolling Interest | 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 exercise this right at any point. We determined that the noncontrolling interest shareholder rights meet the requirements to be considered redeemable. Therefore, we have classified the noncontrolling interest outside of permanent equity within our Consolidated Balance Sheet. Currently, the noncontrolling interest is not redeemable but it is probable that it will become redeemable in the future. |
Change in Accounting Principle and Recent Accounting Pronouncements | Adoption of New Accounting Standards. Reference Rate Reform . In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. 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. The adoption of the standard did not have a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements. Stock Compensation. In March 2024, the FASB issued ASU No. 2024-01 "Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards." The amendments in this update clarify how an entity determines whether a profits interest or similar award (“profits interest award”) is (1) within the scope of ASC 718 or (2) not a share-based payment arrangement and should be accounted for in a manner similar to a cash bonus or profit-sharing arrangement under ASC 710 or other ASC topics. The amendments specifically add an illustrative example that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The fact patterns in the illustrative example focus on the scope conditions in paragraph 718-10-15-3. The illustrative example is intended to reduce (1) complexity in determining whether a profits interest award is subject to the guidance in Topic 718 and (2) existing diversity in practice. The amendments in this update are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. We are still evaluating whether this update will impact the way we account for our stock-based compensation awards. Income Taxes . In December 2023, the FASB issued ASU No. 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The new ASU requires public business entities, on an annual basis, to provide a tabular rate reconciliation (using both percentages and reporting currency amounts) of (1) the reported income tax expense (or benefit) from continuing operations, to (2) the product of the income (or loss) from continuing operations before income taxes and the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile using specific categories and separate disclosure for any reconciling items within certain categories that are equal to or greater than a specified quantitative threshold. A public business entity is required to provide an explanation, if not otherwise evident, of the individual reconciling items disclosed, such as the nature, effect, and underlying causes of the reconciling items and the judgment used in categorizing the reconciling items. For each annual period presented, the ASU requires all reporting entities to disclose the year-to-date amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign. It also requires additional disaggregated information on income taxes paid (net of refunds received) to an individual jurisdiction equal to or greater than 5% of total income taxes paid (net of refunds received). The ASU requires that all reporting entities disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU is effective for public entities for annual periods beginning after December 15, 2024. We are still evaluating the impact on our financial statement disclosures. Segment Reporting . In November 2023, the FASB issued ASU No. 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments in this update address the requirement for a public entity to disclose its significant segment expense categories and amounts for each reportable segment. A significant segment expense is any significant expense incurred by the segment, including direct expenses, shared expenses, allocated corporate overhead, or interest expense that is regularly reported to the chief operating decision maker and is included in the measure of segment profit or loss. The disclosure of significant segment expenses is in addition to the current specifically-enumerated segment expenses required to be disclosed, such as depreciation and interest expense. If a public entity does not disclose any significant segment expenses for a reportable segment, it is required to disclose narratively the nature of the expenses used by the chief operating decision maker to manage the segment's operations. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. 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. Business Combinations . 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) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 (In millions) Weighted-average shares outstanding (basic) 123.5 122.6 Effect of dilutive securities: Stock options and restricted stock units 1.3 0.9 Weighted-average shares outstanding (diluted) 124.8 123.5 |
Rollforward of Allowance for Doubtful Accounts | Below is a rollforward of our allowance for doubtful accounts for the three months ended March 31, 2024 and 2023, respectively. Three Months Ended March 31, 2024 2023 (In millions) Allowance for doubtful accounts, beginning of period $ 16.7 $ 19.1 Current period bad debt expense 4.7 3.6 Write-offs, net of recoveries (5.0) (2.6) Allowance for doubtful accounts, end of period $ 16.4 $ 20.1 |
Summary of Noncontrolling Interests Activities | The Company's redeemable noncontrolling interests activities for the three months ended March 31, 2024 are summarized as follows: Three Months Ended March 31, Redeemable noncontrolling interests: 2024 (In millions) Redeemable noncontrolling interests, beginning of period $ 135.1 Effect of foreign currency translation attributable to redeemable noncontrolling interest (3.5) Redeemable noncontrolling interests, end of period $ 131.6 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, Change Consolidated Operating Revenue 2024 2023 $ % (In millions) Verification Services $ 476.5 $ 455.8 $ 20.7 5 % Employer Services 126.3 140.5 (14.2) (10) % Total Workforce Solutions 602.8 596.3 6.5 1 % Online Information Solutions 380.2 341.0 39.2 12 % Mortgage Solutions 38.0 33.3 4.7 14 % Financial Marketing Services 47.1 47.4 (0.3) (1) % Total U.S. Information Solutions 465.3 421.7 43.6 10 % Latin America 91.1 55.3 35.8 65 % Europe 86.2 75.7 10.5 14 % Asia Pacific 78.2 89.9 (11.7) (13) % Canada 65.8 63.1 2.7 4 % Total International 321.3 284.0 37.3 13 % Total operating revenue $ 1,389.4 $ 1,302.0 $ 87.4 7 % |
Remaining Performance Obligation | We expect to recognize as revenue the following amounts related to our remaining performance obligations as of March 31, 2024, inclusive of foreign exchange impact: Performance Obligation Amount (In millions) Less than 1 year $ 27.9 1 to 3 years 32.1 3 to 5 years 14.7 Thereafter 18.6 Total remaining performance obligation $ 93.3 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Amount of Goodwill | Changes in the amount of goodwill for the three months ended March 31, 2024, are as follows: Workforce Solutions U.S. International Total Balance, December 31, 2023 $ 2,520.2 $ 2,006.2 $ 2,303.5 $ 6,829.9 Adjustments to initial purchase price allocation — — 1.7 1.7 Foreign currency translation (0.1) — (70.2) (70.3) Balance, March 31, 2024 $ 2,520.1 $ 2,006.2 $ 2,235.0 $ 6,761.3 |
Schedule of Purchased Intangible Assets | Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets: (In millions) Purchased data files $ 1,141.8 $ (618.6) $ 523.2 $ 1,158.5 $ (604.2) $ 554.3 Customer relationships 1,040.7 (498.7) 542.0 1,053.5 (484.2) 569.3 Proprietary database 705.7 (185.6) 520.1 705.8 (171.5) 534.3 Acquired software and technology 222.2 (84.2) 138.0 222.5 (75.4) 147.1 Trade names, non-compete agreements and other intangible assets 74.0 (23.8) 50.2 79.6 (25.8) 53.8 Total definite-lived intangible assets $ 3,184.4 $ (1,410.9) $ 1,773.5 $ 3,219.9 $ (1,361.1) $ 1,858.8 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense related to definite-lived purchased intangible assets at March 31, 2024 is as follows: Years ending December 31, Amount (In millions) 2024 $ 196.1 2025 255.1 2026 239.2 2027 226.5 2028 170.4 Thereafter 686.2 $ 1,773.5 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt Outstanding | Debt outstanding at March 31, 2024 and December 31, 2023 was as follows: March 31, 2024 December 31, 2023 (In millions) Commercial paper ("CP") $ 112.5 $ 196.0 Notes, 2.60%, due December 2024 750.0 750.0 Notes, 2.60%, due December 2025 400.0 400.0 Notes, 3.25%, due June 2026 275.0 275.0 Term loan, due August 2026 691.3 695.6 Notes, 5.10%, due December 2027 750.0 750.0 Notes, 5.10%, due June 2028 700.0 700.0 Debentures, 6.90%, due July 2028 125.0 125.0 Notes, 3.10%, due May 2030 600.0 600.0 Notes, 2.35%, due September 2031 1,000.0 1,000.0 Notes, 7.00%, due July 2037 250.0 250.0 Total debt 5,653.8 5,741.6 Less short-term debt and current maturities (880.0) (963.4) Less unamortized discounts and debt issuance costs (28.5) (30.4) Total long-term debt, net $ 4,745.3 $ 4,747.8 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive loss by component, after tax, for the three months ended March 31, 2024, are as follows: Foreign Pension and other Cash flow Total (In millions) Balance, December 31, 2023 $ (426.7) $ (3.6) $ (0.9) $ (431.2) Other comprehensive (loss) income (95.4) — 0.1 (95.3) Balance, March 31, 2024 $ (522.1) $ (3.6) $ (0.8) $ (526.5) |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Restructuring Charges | The changes during the three months ended March 31, 2024 in the liabilities associated with the restructuring charges recorded during 2023, including expenses incurred and cash payments, are as follows: Liability balance as of 12/31/2023 Expenses Incurred Cash Payments Liability balance as of 3/31/2024 Restructuring charges: (In millions) Severance costs $ 13.4 $ — $ (5.1) $ 8.3 Contract terminations and other associated costs 4.9 — (3.3) 1.6 Total $ 18.3 $ — $ (8.4) $ 9.9 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 are as follows: Three Months Ended (In millions) March 31, Operating revenue: 2024 2023 Workforce Solutions $ 602.8 $ 596.3 U.S. Information Solutions 465.3 421.7 International 321.3 284.0 Total operating revenue $ 1,389.4 $ 1,302.0 Three Months Ended (In millions) March 31, Operating income: 2024 2023 Workforce Solutions $ 255.1 $ 248.7 U.S. Information Solutions 92.6 78.6 International 31.9 32.7 General Corporate Expense (154.9) (154.6) Total operating income $ 224.7 $ 205.4 Total assets by operating segment at March 31, 2024 and December 31, 2023 are as follows: March 31, December 31, (In millions) 2024 2023 Total assets: Workforce Solutions $ 4,164.9 $ 4,144.7 U.S. Information Solutions 3,452.1 3,296.1 International 3,773.7 3,909.0 General Corporate 860.6 930.2 Total assets $ 12,251.3 $ 12,280.0 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | ||
Weighted-average shares outstanding (basic) (in shares) | 123.5 | 122.6 |
Effect of dilutive securities: | ||
Stock options and restricted stock units (in shares) | 1.3 | 0.9 |
Weighted-average shares outstanding (diluted) (in shares) | 124.8 | 123.5 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2023 USD ($) segment | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Fair value of long-term debt | $ 5,300 | $ 5,300 | |
Carrying value of long-term debt | 5,500 | $ 5,500 | |
Number of acquisitions | segment | 2 | ||
Carrying value of equity investment | $ 77.3 | ||
Unrealized gain (loss) on equity investment | $ 3.1 | ||
Other Current Assets | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted cash and cash equivalents | 29.9 | ||
Other Current Liabilities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted cash and cash equivalents | $ 29.9 | ||
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive stock options (in shares) | shares | 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for doubtful accounts, beginning of period | $ 16.7 | $ 19.1 |
Current period bad debt expense | 4.7 | 3.6 |
Write-offs, net of recoveries | (5) | (2.6) |
Allowance for doubtful accounts, end of period | $ 16.4 | $ 20.1 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Noncontrolling Interests Activities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Equity, Attributable to Noncontrolling Interest [Roll Forward] | |
Redeemable noncontrolling interests, beginning of period | $ 135.1 |
Effect of foreign currency translation attributable to redeemable noncontrolling interest | (3.5) |
Redeemable noncontrolling interests, end of period | $ 131.6 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 1,389.4 | $ 1,302 |
Change in revenue | $ 87.4 | |
Change in revenue (as a percent) | 7% | |
Workforce Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 602.8 | 596.3 |
Change in revenue | $ 6.5 | |
Change in revenue (as a percent) | 1% | |
Workforce Solutions | Verification Services | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 476.5 | 455.8 |
Change in revenue | $ 20.7 | |
Change in revenue (as a percent) | 5% | |
Workforce Solutions | Employer Services | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 126.3 | 140.5 |
Change in revenue | $ (14.2) | |
Change in revenue (as a percent) | (10.00%) | |
U.S. Information Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 465.3 | 421.7 |
Change in revenue | $ 43.6 | |
Change in revenue (as a percent) | 10% | |
U.S. Information Solutions | Online Information Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 380.2 | 341 |
Change in revenue | $ 39.2 | |
Change in revenue (as a percent) | 12% | |
U.S. Information Solutions | Mortgage Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 38 | 33.3 |
Change in revenue | $ 4.7 | |
Change in revenue (as a percent) | 14% | |
U.S. Information Solutions | Financial Marketing Services | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 47.1 | 47.4 |
Change in revenue | $ (0.3) | |
Change in revenue (as a percent) | (1.00%) | |
International | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 321.3 | 284 |
Change in revenue | $ 37.3 | |
Change in revenue (as a percent) | 13% | |
International | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 78.2 | 89.9 |
Change in revenue | $ (11.7) | |
Change in revenue (as a percent) | (13.00%) | |
International | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 86.2 | 75.7 |
Change in revenue | $ 10.5 | |
Change in revenue (as a percent) | 14% | |
International | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 65.8 | 63.1 |
Change in revenue | $ 2.7 | |
Change in revenue (as a percent) | 4% | |
International | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenue | $ 91.1 | $ 55.3 |
Change in revenue | $ 35.8 | |
Change in revenue (as a percent) | 65% |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 93.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 9 months |
Total remaining performance obligation | $ 27.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 2 years |
Total remaining performance obligation | $ 32.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 2 years |
Total remaining performance obligation | $ 14.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | |
Total remaining performance obligation | $ 18.6 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | $ 6,829.9 |
Adjustments to initial purchase price allocation | 1.7 |
Foreign currency translation | (70.3) |
Balance, End of period | 6,761.3 |
Workforce Solutions | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 2,520.2 |
Adjustments to initial purchase price allocation | 0 |
Foreign currency translation | (0.1) |
Balance, End of period | 2,520.1 |
U.S. Information Solutions | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 2,006.2 |
Adjustments to initial purchase price allocation | 0 |
Foreign currency translation | 0 |
Balance, End of period | 2,006.2 |
International | |
Goodwill [Roll Forward] | |
Balance, Beginning of period | 2,303.5 |
Adjustments to initial purchase price allocation | 1.7 |
Foreign currency translation | (70.2) |
Balance, End of period | $ 2,235 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense related to purchased intangible assets | $ 67 | $ 60.7 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Purchased Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 3,184.4 | $ 3,219.9 |
Accumulated Amortization | (1,410.9) | (1,361.1) |
Net | 1,773.5 | 1,858.8 |
Purchased data files | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,141.8 | 1,158.5 |
Accumulated Amortization | (618.6) | (604.2) |
Net | 523.2 | 554.3 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,040.7 | 1,053.5 |
Accumulated Amortization | (498.7) | (484.2) |
Net | 542 | 569.3 |
Proprietary database | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 705.7 | 705.8 |
Accumulated Amortization | (185.6) | (171.5) |
Net | 520.1 | 534.3 |
Acquired software and technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 222.2 | 222.5 |
Accumulated Amortization | (84.2) | (75.4) |
Net | 138 | 147.1 |
Trade names, non-compete agreements and other intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 74 | 79.6 |
Accumulated Amortization | (23.8) | (25.8) |
Net | $ 50.2 | $ 53.8 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 196.1 | |
2025 | 255.1 | |
2026 | 239.2 | |
2027 | 226.5 | |
2028 | 170.4 | |
Thereafter | 686.2 | |
Net | $ 1,773.5 | $ 1,858.8 |
DEBT - Schedule of Debt Outstan
DEBT - Schedule of Debt Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Aug. 31, 2021 |
Debt Instrument [Line Items] | |||
Total debt | $ 5,653.8 | $ 5,741.6 | |
Less short-term debt and current maturities | (880) | (963.4) | |
Less unamortized discounts and debt issuance costs | (28.5) | (30.4) | |
Total long-term debt, net | 4,745.3 | 4,747.8 | |
Commercial paper ("CP") | |||
Debt Instrument [Line Items] | |||
Total debt | $ 112.5 | 196 | |
Notes, 2.60%, due December 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate (as a percent) | 2.60% | ||
Total debt | $ 750 | 750 | |
Notes, 2.60%, 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 | $ 691.3 | 695.6 | $ 700 |
Notes, 5.10%, due December 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate (as a percent) | 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% | ||
Total debt | $ 700 | 700 | |
Debentures, 6.90%, due July 2028 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate (as a percent) | 6.90% | ||
Total debt | $ 125 | 125 | |
Notes, 3.10%, 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, 7.00%, due July 2037 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate (as a percent) | 7% | ||
Total debt | $ 250 | $ 250 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Jul. 01, 2021 USD ($) | Aug. 31, 2021 USD ($) extension | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Aggregate principal amount of debt issued | $ 5,653.8 | $ 5,741.6 | |||
Letters of credit outstanding, amount | $ 0.4 | ||||
Commercial paper notes | $ 1,500 | ||||
Commercial paper borrowings | $ 97 | ||||
Repayments of commercial paper | $ 108.8 | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 1 year | ||||
Commercial paper, maturity period range | 397 days | 365 days | 365 days | ||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Commercial paper, maturity period range | 90 days | 90 days | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility borrowing capacity | $ 1,500 | ||||
Debt instrument, term | 5 years | ||||
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 | $ 1,387.1 | ||||
Term loan, due August 2026 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of debt issued | $ 700 | 691.3 | 695.6 | ||
Outstanding borrowings | 691.3 | ||||
Commercial paper ("CP") | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of debt issued | $ 112.5 | $ 196 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended | |
Mar. 31, 2024 claim plaintiff | Jun. 09, 2021 claim | |
Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Debt instrument, term (or less) | 1 year | |
Canada | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Pending claims | 5 | |
Pending national class actions | 4 | |
Number of plaintiffs | plaintiff | 19,000 | |
Number of claims appealed | 1 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Effective income tax rate (as a percent) | 24.30% | 25.40% |
Minimum | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 0 | |
Increase in unrecognized tax benefits is reasonably possible | 0 | |
Maximum | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Decrease in unrecognized tax benefits is reasonably possible | 15,000,000 | |
Increase in unrecognized tax benefits is reasonably possible | $ 15,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 4,552.4 |
Ending Balance | 4,580.6 |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (431.2) |
Other comprehensive (loss) income | (95.3) |
Ending Balance | (526.5) |
Foreign currency translation adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (426.7) |
Other comprehensive (loss) income | (95.4) |
Ending Balance | (522.1) |
Pension and other postretirement benefit plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (3.6) |
Other comprehensive (loss) income | 0 |
Ending Balance | (3.6) |
Cash flow hedging transactions | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (0.9) |
Other comprehensive (loss) income | 0.1 |
Ending Balance | $ (0.8) |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 37.6 |
Payments for restructuring | 8.4 | |
2023 Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments for restructuring | $ 28 |
RESTRUCTURING CHARGES - Summary
RESTRUCTURING CHARGES - Summary of Changes in Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Liability balance as of 12/31/2023 | $ 18.3 | |
Expenses Incurred | 0 | $ 37.6 |
Cash Payments | (8.4) | |
Liability balance as of 3/31/2024 | 9.9 | 18.3 |
2023 Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Cash Payments | (28) | |
Severance costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability balance as of 12/31/2023 | 13.4 | |
Expenses Incurred | 0 | |
Cash Payments | (5.1) | |
Liability balance as of 3/31/2024 | 8.3 | 13.4 |
Contract terminations and other associated costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability balance as of 12/31/2023 | 4.9 | |
Expenses Incurred | 0 | |
Cash Payments | (3.3) | |
Liability balance as of 3/31/2024 | $ 1.6 | $ 4.9 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Operating revenue | $ 1,389.4 | $ 1,302 |
Operating income | 224.7 | 205.4 |
General Corporate Expense | ||
Segment Reporting Information [Line Items] | ||
Operating income | (154.9) | (154.6) |
Workforce Solutions | ||
Segment Reporting Information [Line Items] | ||
Operating revenue | 602.8 | 596.3 |
Workforce Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income | 255.1 | 248.7 |
U.S. Information Solutions | ||
Segment Reporting Information [Line Items] | ||
Operating revenue | 465.3 | 421.7 |
U.S. Information Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income | 92.6 | 78.6 |
International | ||
Segment Reporting Information [Line Items] | ||
Operating revenue | 321.3 | 284 |
International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income | $ 31.9 | $ 32.7 |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Total Assets by Operating Segments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Assets | $ 12,251.3 | $ 12,280 |
Operating Segments | Workforce Solutions | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,164.9 | 4,144.7 |
Operating Segments | U.S. Information Solutions | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,452.1 | 3,296.1 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,773.7 | 3,909 |
General Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 860.6 | $ 930.2 |