What changed in this filing

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Item 1. Financial Statements

2020-10-22 compared with 2020-07-23 · 109 added, 120 removed, 667 unchanged (26% of the section changed)

2 unchanged sentences

Three Months Ended

September 30,

(In millions, except per share amounts)

7 unchanged sentences

Interest expense ( 37.4 ) ( 28.0 )

Other (loss) income, net ( 7.5 ) 2.8

Other income, net 133.4 2.9

Consolidated income before income taxes 300.4 96.5

12 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

Six Months Ended June 30,

(In millions, except per share amounts) (Unaudited)

Nine Months Ended September 30,

(In millions, except per share amounts)

Operating revenue $ 3,009.1 $ 2,601.8

21 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30,

Three Months Ended September 30,

Shareholders Noncontrolling

8 unchanged sentences

Comprehensive income $ 277.4 $ 1.0 $ 278.4 $ 3.6 $ — $ 3.6

Six Months Ended June 30,

Nine Months Ended September 30,

Shareholders Noncontrolling

11 unchanged sentences

CONSOLIDATED BALANCE SHEETS

June 30, 2020 December 31, 2019

September 30, 2020 December 31, 2019

(In millions, except par values)

1 unchanged sentence

Cash and cash equivalents $ 1,535.6 $ 401.3

Trade accounts receivable, net of allowance for doubtful accounts of $ 16.9 and $ 11.2 at June 30, 2020 and December 31, 2019, respectively

Trade accounts receivable, net of allowance for doubtful accounts of $ 15.8 and $ 11.2 at September 30, 2020 and December 31, 2019, respectively

Prepaid expenses 123.3 88.1

34 unchanged sentences

Authorized shares - 300.0 ;

Issued shares - 189.3 at June 30, 2020 and December 31, 2019;

Outstanding shares - 121.5 and 121.2 at June 30, 2020 and December 31, 2019, respectively

Issued shares - 189.3 at September 30, 2020 and December 31, 2019;

Outstanding shares - 121.6 and 121.2 at September 30, 2020 and December 31, 2019, respectively

Paid-in capital 1,454.1 1,405.1

1 unchanged sentence

Accumulated other comprehensive loss ( 628.5 ) ( 631.6 )

Treasury stock, at cost, 67.2 shares and 67.5 shares at June 30, 2020 and December 31, 2019, respectively

Treasury stock, at cost, 67.1 shares and 67.5 shares at September 30, 2020 and December 31, 2019, respectively

( 2,550.4 ) ( 2,557.4 )

Stock held by employee benefit trusts, at cost, 0.6 shares at June 30, 2020 and December 31, 2019

Stock held by employee benefit trusts, at cost, 0.6 shares at September 30, 2020 and December 31, 2019

( 5.9 ) ( 5.9 )

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

5 unchanged sentences

Deferred income taxes 78.0 ( 81.7 )

Gain on fair market value adjustment of equity investment ( 32.9 ) —

Gain on fair market value adjustment of equity investments ( 162.8 ) —

Changes in assets and liabilities, excluding effects of acquisitions:

14 unchanged sentences

Dividends paid to noncontrolling interests ( 2.6 ) ( 4.8 )

Proceeds from exercise of stock options 22.9 6.1

Proceeds from exercise of stock options and employee stock purchase plan 29.9 15.3

Payment of taxes related to settlement of equity awards — ( 9.7 )

Purchase of redeemable noncontrolling interests ( 9.0 ) —

Debt issuance costs ( 9.8 ) —

6 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND OTHER COMPREHENSIVE LOSS

For the Three Months Ended June 30, 2020

For the Three Months Ended September 30, 2020

Equifax Shareholders

7 unchanged sentences

(In millions, except per share amounts)

Balance, March 31, 2020 121.4 $ 236.6 $ 1,431.7 $ 4,196.9 $ ( 918.9 ) $ ( 2,553.9 ) $ ( 5.9 ) $ 43.3 $ 2,429.8

Balance, June 30, 2020 121.5 $ 236.6 $ 1,447.8 $ 4,248.0 $ ( 681.7 ) $ ( 2,550.7 ) $ ( 5.9 ) $ 40.2 $ 2,734.3

Net income — — — 224.2 — — — 0.8 225.0

7 unchanged sentences

Dividends paid to noncontrolling interests — — — — — — — ( 1.0 ) ( 1.0 )

Other — — — — — — — 0.3 0.3

Balance, June 30, 2020 121.5 $ 236.6 $ 1,447.8 $ 4,248.0 $ ( 681.7 ) $ ( 2,550.7 ) $ ( 5.9 ) $ 40.2 $ 2,734.3

At June 30, 2020, $ 590.1 million was available for future purchases of common stock under our share repurchase authorization.

For the Three Months Ended June 30, 2019

Purchases of noncontrolling interests — — ( 5.1 ) — — — — ( 3.9 ) ( 9.0 )

Balance, September 30, 2020 121.6 $ 236.6 $ 1,454.1 $ 4,423.1 $ ( 628.5 ) $ ( 2,550.4 ) $ ( 5.9 ) $ 37.8 $ 2,966.8

At September 30, 2020, $ 590.1 million was available for future purchases of common stock under our share repurchase authorization.

For the Three Months Ended September 30, 2019

Equifax Shareholders

7 unchanged sentences

(In millions, except per share amounts)

Balance, March 31, 2019 120.8 $ 236.6 $ 1,369.4 $ 4,115.4 $ ( 585.9 ) $ ( 2,567.9 ) $ ( 5.9 ) $ 49.2 $ 2,610.9

Balance, June 30, 2019 120.9 $ 236.6 $ 1,381.5 $ 4,135.5 $ ( 640.0 ) $ ( 2,564.3 ) $ ( 5.9 ) $ 44.5 $ 2,587.9

Net income — — — 81.1 — — — 1.4 82.5

6 unchanged sentences

Redeemable noncontrolling interest adjustment — — — 1.2 — — — ( 1.2 ) —

Dividends paid to noncontrolling interests — — — — — — — ( 4.6 ) ( 4.6 )

Balance, June 30, 2019 120.9 $ 236.6 $ 1,381.5 $ 4,135.5 $ ( 640.0 ) $ ( 2,564.3 ) $ ( 5.9 ) $ 44.5 $ 2,587.9

Balance, September 30, 2019 121.1 $ 236.6 $ 1,392.6 $ 4,170.4 $ ( 717.5 ) $ ( 2,560.4 ) $ ( 5.9 ) $ 43.3 $ 2,559.1

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND OTHER COMPREHENSIVE LOSS

For the Six Months Ended June 30, 2020

For the Nine Months Ended September 30, 2020

Equifax Shareholders

9 unchanged sentences

Net income — — — 432.7 — — — 2.9 435.6

Other comprehensive loss — — — — ( 50.1 ) — — ( 1.7 ) ( 51.8 )

Other comprehensive income (loss) — — — — 3.1 — — ( 1.5 ) 1.6

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.4 — 9.5 — — 7.0 — — 16.5

5 unchanged sentences

Dividends paid to noncontrolling interests — — — — — — — ( 2.6 ) ( 2.6 )

Purchases of noncontrolling interests — — ( 5.1 ) — — — — ( 3.9 ) ( 9.0 )

Cumulative adjustment from change in accounting principle — — — ( 0.4 ) — — — — ( 0.4 )

Other — — — — — — — 0.4 0.4

Balance, June 30, 2020 121.5 $ 236.6 $ 1,447.8 $ 4,248.0 $ ( 681.7 ) $ ( 2,550.7 ) $ ( 5.9 ) $ 40.2 $ 2,734.3

At June 30, 2020, $ 590.1 million was available for future purchases of common stock under our share repurchase authorization.

For the Six Months Ended June 30, 2019

Balance, September 30, 2020 121.6 $ 236.6 $ 1,454.1 $ 4,423.1 $ ( 628.5 ) $ ( 2,550.4 ) $ ( 5.9 ) $ 37.8 $ 2,966.8

At September 30, 2020, $ 590.1 million was available for future purchases of common stock under our share repurchase authorization.

For the Nine Months Ended September 30, 2019

Equifax Shareholders

8 unchanged sentences

Balance, December 31, 2018 120.6 $ 236.6 $ 1,356.6 $ 4,717.8 $ ( 626.3 ) $ ( 2,571.0 ) $ ( 5.9 ) $ 47.9 $ 3,155.7

Net loss — — — ( 489.1 ) — — — 3.0 ( 486.1 )

Net (loss) income — — — ( 408.0 ) — — — 4.4 ( 403.6 )

Other comprehensive loss — — — — ( 91.2 ) — — ( 1.5 ) ( 92.7 )

6 unchanged sentences

Dividends paid to noncontrolling interests — — — — — — — ( 4.8 ) ( 4.8 )

Balance, June 30, 2019 120.9 $ 236.6 $ 1,381.5 $ 4,135.5 $ ( 640.0 ) $ ( 2,564.3 ) $ ( 5.9 ) $ 44.5 $ 2,587.9

Balance, September 30, 2019 121.1 $ 236.6 $ 1,392.6 $ 4,170.4 $ ( 717.5 ) $ ( 2,560.4 ) $ ( 5.9 ) $ 43.3 $ 2,559.1

Accumulated Other Comprehensive Loss consists of the following components:

June 30, 2020 December 31, 2019

September 30, 2020 December 31, 2019

(In millions)

Foreign currency translation $ ( 360.6 ) $ ( 352.4 )

Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $ 85.6 and $ 88.4 at June 30, 2020 and December 31, 2019, respectively

Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $ 84.5 and $ 88.4 at September 30, 2020 and December 31, 2019, respectively

( 266.8 ) ( 278.1 )

Cash flow hedging transactions, net of accumulated tax of $ 0.7 at June 30, 2020 and December 31, 2019, respectively

Cash flow hedging transactions, net of accumulated tax of $ 0.7 at September 30, 2020 and December 31, 2019, respectively

( 1.1 ) ( 1.1 )

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2020

September 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5 unchanged sentences

We also enable consumers to manage and protect their financial health through a portfolio of products offered directly to consumers.

As of June 30, 2020, we operated in the following countries:

As of September 30, 2020, we operated in the following countries:

Argentina, Australia, Canada, Chile, Costa Rica, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom, or U.K., Uruguay and the United States of America, or U.S.

13 unchanged sentences

A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

4 unchanged sentences

Weighted-average shares outstanding (diluted) 123.0 122.3 122.7 122.0

For the three months ended June 30, 2020 and 2019, stock options that were anti-dilutive were 0.7 million and 1.2 million, respectively.

For the six months ended June 30, 2020 and 2019, stock options that were anti-dilutive were 0.8 million and 1.3 million, respectively.

For the three months ended September 30, 2020 and 2019, stock options that were anti-dilutive were no t material.

For the nine months ended September 30, 2020 and 2019, stock options that were anti-dilutive were 0.6 million and 1.1 million, respectively.

Financial Instruments.

2 unchanged sentences

The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for similar publicly traded instruments and for non-publicly traded instruments through valuation techniques involving observable inputs based on the specific characteristics of the debt instrument.

As of June 30, 2020 and December 31, 2019, the fair value of our long-term debt, including the current portion, was $ 4.7 billion and $ 3.6 billion, respectively, compared to its carrying value of $ 4.4 billion and $ 3.4 billion, respectively.

As of September 30, 2020 and December 31, 2019, the fair value of our long-term debt, including the current portion, was $ 4.7 billion and $ 3.6 billion, respectively, compared to its carrying value of $ 4.4 billion and $ 3.4 billion, respectively.

Fair Value Measurements.

5 unchanged sentences

(Liabilities) at

June 30, 2020 Quoted Prices in

September 30, 2020 Quoted Prices in

Active Markets for

8 unchanged sentences

Total $ — $ 38.5 $ ( 38.5 ) $ —

(1) We maintain deferred compensation plans that allow for certain management employees to defer the receipt of compensation (such as salary, incentive compensation and commissions) until a later date based on the terms of the plan.

(1) We maintain deferred compensation plans that allow for certain management employees to defer the receipt of compensation (such as salary and incentive compensation) until a later date based on the terms of the plan.

The liability representing benefits accrued for plan participants is valued at the quoted market prices of the participants’ investment elections.

1 unchanged sentence

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis.

We completed various acquisitions during the six months ended June 30, 2020 and the year ended December 31, 2019.

We completed various acquisitions during the nine months ended September 30, 2020 and the year ended December 31, 2019.

The values of net assets acquired and the resulting goodwill were recorded at fair value using Level 3 inputs.

12 unchanged sentences

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 (Loss).

Below is a rollforward of our allowance for doubtful accounts for the three and six months ended June 30, 2020 and 2019, respectively.

Three Months Ended June 30, Six Months Ended June 30,

Below is a rollforward of our allowance for doubtful accounts for the three and nine months ended September 30, 2020 and 2019, respectively.

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

7 unchanged sentences

Other current assets also include amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services.

As of June 30, 2020, these assets were approximately $ 12.5 million, with a corresponding balance in other current liabilities.

As of September 30, 2020, these assets were approximately $ 18.1 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 the Company’s operating lease right-of-use assets, our investment in unconsolidated affiliates, employee benefit trust assets, and assets related to life insurance policies covering certain officers of the Company.

Other assets on our Consolidated Balance Sheets primarily represent the Company’s operating lease right-of-use assets, our investments in unconsolidated affiliates, employee benefit trust assets, and assets related to life insurance policies covering certain officers of the Company.

Equity Investment.

We record our equity investment in Brazil within Other Assets using the new measurement method of cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions.

As the fair value of the investment has not historically been readily determinable, our investment has been recorded at cost, less impairment.

On September 30, 2020, the company in which we are invested in Brazil underwent an initial public offering and began to trade publicly in Brazilian stock markets.

The carrying value of the investment has been adjusted to $ 133.8 million based on observable Level 1 inputs as of the date noted above, resulting in an unrealized gain of $ 129.9 million for the three and nine months ended September 30, 2020.

All unrealized gains or losses on the investment are recorded in Other Income (Expense), Net within the Consolidated Statements of Income (Loss).

Other Current Liabilities.

1 unchanged sentence

Other current liabilities also include corresponding amounts of other current assets related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services.

As of June 30, 2020, these funds were approximately $ 12.5 million.

As of September 30, 2020, these funds were approximately $ 18.1 million.

These amounts are restricted as to their current use and will be released according to the specific customer agreements.

11 unchanged sentences

This guidance must be applied on a prospective basis.

The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows.

The adoption of this standard did not materially impact our consolidated financial statements or disclosures.

In August 2018, the FASB issued ASU No.

1 unchanged sentence

Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” which eliminates, adds, and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project.

ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, and interim periods therein, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements.

ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, and interim periods therein, but entities are permitted to early adopt either

the entire standard or only the provisions that eliminate or modify the requirements.

The adoption of this standard did not materially impact our consolidated financial statements or disclosures.

3 unchanged sentences

The ASC 350-40 guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as they are incurred.

ASU 2018-15 is effective for fiscal years

beginning after December 15, 2019 and interim periods therein.

ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods therein.

The adoption of the standard did not have a material impact on our consolidated financial statements.

14 unchanged sentences

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 June 30, Change Six Months Ended June 30, Change

Three Months Ended September 30, Change Nine Months Ended September 30, Change

Consolidated Operating Revenue 2020 2019 $ % 2020 2019 $ %

15 unchanged sentences

Remaining Performance Obligation – We have elected to disclose only the remaining performance obligations for those contracts with an expected duration of greater than one year and do not disclose the value of remaining performance obligations for contracts in which we recognize revenue at the amount to which we have the right to invoice.

We expect to recognize as revenue the following amounts related to our remaining performance obligations as of June 30, 2020 inclusive of foreign exchange impact:

We expect to recognize as revenue the following amounts related to our remaining performance obligations as of September 30, 2020 inclusive of foreign exchange impact:

Performance Obligation Amount

9 unchanged sentences

We perform our annual goodwill impairment tests as of September 30.

Changes in the amount of goodwill for the six months ended June 30, 2020, are as follows:

Our annual goodwill impairment testing was completed during the third quarter of 2020.

The estimated fair value for all reporting units exceeded the carrying value for those units as of September 30, 2020.

As a result, no goodwill impairment was recorded.

Changes in the amount of goodwill for the nine months ended September 30, 2020, are as follows:

Solutions Workforce Solutions International Global Consumer Solutions Total

4 unchanged sentences

Foreign currency translation — — 0.5 ( 1.4 ) ( 0.9 )

Balance, June 30, 2020 $ 1,280.7 $ 1,010.7 $ 1,846.8 $ 184.7 $ 4,322.9

Balance, September 30, 2020 $ 1,286.7 $ 1,010.7 $ 1,882.0 $ 186.6 $ 4,366.0

Indefinite-Lived Intangible Assets.

6 unchanged sentences

As a result, no impairment was recorded.

Our indefinite-lived intangible asset carrying amounts did not change materially during the six months ended June 30, 2020.

Our indefinite-lived intangible asset carrying amounts did not change materially during the nine months ended September 30, 2020.

Purchased Intangible Assets.

4 unchanged sentences

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 2019 Form 10-K.

Purchased intangible assets at June 30, 2020 and December 31, 2019 consisted of the following:

June 30, 2020 December 31, 2019

Purchased intangible assets at September 30, 2020 and December 31, 2019 consisted of the following:

September 30, 2020 December 31, 2019

Gross Accumulated

10 unchanged sentences

Total definite-lived intangible assets $ 1,833.4 $ ( 832.0 ) $ 1,001.4 $ 1,820.5 $ ( 775.9 ) $ 1,044.6

Amortization expense related to purchased intangible assets was $ 34.8 million and $ 35.7 million during the three months ended June 30, 2020 and 2019, respectively.

Amortization expense related to purchased intangible assets was $ 69.8 million for the six months ended June 30, 2020 and 2019.

Estimated future amortization expense related to definite-lived purchased intangible assets at June 30, 2020 is as follows:

Amortization expense related to purchased intangible assets was $ 36.0 million and $ 35.1 million during the three months ended September 30, 2020 and 2019, respectively.

Amortization expense related to purchased intangible assets was $ 105.8 million and $ 104.9 million for the nine months ended September 30, 2020 and 2019, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at September 30, 2020 is as follows:

Years ending December 31, Amount

1 unchanged sentence

Thereafter 487.0

Debt outstanding at June 30, 2020 and December 31, 2019 was as follows:

June 30, 2020 December 31, 2019

Debt outstanding at September 30, 2020 and December 31, 2019 was as follows:

September 30, 2020 December 31, 2019

(In millions)

26 unchanged sentences

Interest on the 2024 Notes accrues at a rate of 2.6 % per year and is payable semi-annually in arrears on June 1 and December 1 of each year.

The net proceeds of the sale of the notes were used to repay borrowings under our Receivables Facility and our CP program and for general corporate purposes.

The net proceeds of the sale of the notes were used to repay borrowings under our Receivables Facility and our Commercial Paper program and for general corporate purposes.

We must comply with various non-financial covenants, including certain limitations on mortgages, liens and sale-leaseback transactions, as well as mergers and sales of substantially all of our assets.

7 unchanged sentences

Availability of the Revolver is reduced by the outstanding principal balance of our commercial paper notes and by any letters of credit issued under the facility.

As of June 30, 2020, there were $ 0.7 million of letters of credit outstanding, no principal drawn amounts under the Revolver, and no commercial paper borrowings.

Availability under the Revolver was $ 1.1 billion at June 30, 2020.

As of September 30, 2020, there were $ 0.7 million of letters of credit outstanding, no principal drawn amounts under the Revolver, and no commercial paper borrowings.

Availability under the Revolver was $ 1.1 billion at September 30, 2020.

Commercial Paper Program.

3 unchanged sentences

Because the CP is backstopped by our Revolver, the amount of CP which may be issued under the program is reduced by the outstanding face amount of any letters of credit issued and by the outstanding borrowings under our Revolver.

At June 30, 2020, there were no outstanding commercial paper notes.

At September 30, 2020, there were no outstanding commercial paper notes.

Receivables Funding Facility.

10 unchanged sentences

subsidiaries in connection with the sale of the receivables (but no obligations of Equifax Receivables Funding LLC) are guaranteed by Equifax.

There were no outstanding borrowings under the Receivables Facility at June 30, 2020.

The Receivables Facility was supported by $ 308.2 million of accounts receivable as collateral at June 30, 2020 which, as a retained interest, is included in accounts receivable, net in our Consolidated Balance Sheets.

There were no outstanding borrowings under the Receivables Facility at September 30, 2020.

The Receivables Facility was supported by $ 313.5 million of accounts receivable as collateral at September 30, 2020 which, as a retained interest, is included in accounts receivable, net in our Consolidated Balance Sheets.

For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our 2019 Form 10-K.

36 unchanged sentences

Other Settlements.

Securities Class Action Litigation .

On February 12, 2020, we entered into a settlement agreement to resolve a consolidated putative class action lawsuit pending in the U.S.

District Court for the Northern District of Georgia alleging violations of certain federal securities laws in connection with statements and alleged omissions regarding our cybersecurity systems and controls.

Under the settlement, the Company agreed to create a settlement fund for the benefit of a settlement class consisting of persons and entities who purchased or otherwise acquired publicly-traded Company stock from February 25, 2016 through September 15, 2017, subject to certain exclusions.

On June 26, 2020, we received final court approval of the settlement.

Shareholder Derivative Litigation .

On February 12, 2020, the Company, by and through a committee of independent directors, and individual defendants entered into a settlement agreement to resolve a consolidated putative shareholder derivative action pending in the U.S.

District Court for the Northern District of Georgia alleging claims for breaches of fiduciary duties, unjust enrichment, corporate waste and insider selling by certain defendants, as well as certain claims under the federal securities laws.

The settlement agreement provides for the Company’s adoption of certain governance changes and an insurance recovery for the Company.

On June 22, 2020, we received final court approval for the settlement.

Financial Institutions MDL Class Action .

2 unchanged sentences

The Company also agreed to adopt and/or maintain certain business practices related to its information security program.

On June 4, 2020, we received preliminary court approval of the settlement.

The settlement is subject to a number of other conditions, including final court approval.

We can provide no assurance that all conditions will be satisfied or that final court approval will be obtained.

The court granted final approval of the settlement on October 22, 2020.

Pennsylvania State Court Financial Institution Class Action .

15 unchanged sentences

Canadian Class Actions .

Eight Canadian class actions, six of which are on behalf of a national class of approximately 19,000 Canadian consumers, were filed against us in Ontario, Saskatchewan, Quebec, British Columbia and Alberta.

Five putative Canadian class actions, four of which are on behalf of a national class of approximately 19,000 Canadian consumers, are pending against us in Ontario, British Columbia and Alberta.

Each of the proposed Canadian class actions asserts a number of common law and statutory claims seeking monetary damages and other related relief in connection with the 2017 cybersecurity incident.

The plaintiffs in each of the remaining cases seek class certification/authorization on behalf of Canadian consumers whose personal information was allegedly impacted by the 2017 cybersecurity incident.

In some cases, plaintiffs also seek class certification on behalf of a larger group of Canadian consumers who had contracts for subscription products with Equifax around the time of the incident or earlier and were not impacted by the incident.

On October 21, 2019, the court in the Quebec case dismissed the plaintiff’s motion for authorization to institute a class action, ending the matter.

On December 13, 2019, the court in the active Ontario case granted certification of a nationwide class that includes impacted Canadians as well as Canadians who had subscription products with Equifax between March 7, 2017 and July 30, 2017.

We have sought leave to appeal this decision.

All remaining purported class actions are at preliminary stages.

In addition, one of the cases in Ontario as well as the Saskatchewan case have been stayed.

The appeal of the court’s order staying the Saskatchewan case was dismissed, and the case is permanently stayed.

Individual Consumer Litigation .

We have over one hundred individual consumer actions pending against us in state (general jurisdiction and small claims) and federal courts, including the MDL Court, across the U.S.

related to the 2017 cybersecurity incident.

The plaintiffs/claimants in these cases have generally claimed to have been harmed by alleged actions and/or omissions by Equifax in connection with the 2017 cybersecurity incident and assert a variety of common law and statutory claims seeking primarily monetary damages.

We believe that many of the remaining individual consumer actions will be subject to the settlement in the U.S.

Consumer MDL Litigation discussed above, unless the individual consumers submitted a valid and timely request to be excluded from the settlement.

In addition to seeking class certification on behalf of Canadian consumers whose personal information was allegedly impacted by the 2017 cybersecurity incident, in some cases, plaintiffs also seek class certification on behalf of a larger group of Canadian consumers who had contracts for subscription products with Equifax around the time of the incident or earlier and were not impacted by the incident.

On December 13, 2019, the court in Ontario granted certification of a nationwide class that includes all impacted Canadians as well as Canadians who had subscription products with Equifax between March 7, 2017 and July 30, 2017 who were not impacted by the incident.

Our motion for leave to appeal this decision was granted in part, and our appeal is now pending.

All remaining purported class actions are at preliminary stages or stayed.

Government Investigations .

14 unchanged sentences

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.

In certain circumstances (e.g., a change in control or for our convenience), we may terminate these data processing and outsourcing agreements, and, in doing so, certain of these agreements require us to pay significant termination fees.

Guarantees and General Indemnifications

We may issue standby letters of credit and performance and surety bonds in the normal course of business.

The aggregate notional amounts of all performance and surety bonds and standby letters of credit was no t material at June 30, 2020 and generally have a remaining maturity of one year or less.

The aggregate notional amounts of all performance and surety bonds and standby letters of credit was no t material at September 30, 2020 and generally have a remaining maturity of one year or less.

We may issue other guarantees in the ordinary course of business.

The maximum potential future payments we could be required to make under the guarantees in the ordinary course of business was no t material at June 30, 2020.

The maximum potential future payments we could be required to make under the guarantees in the ordinary course of business was no t material at September 30, 2020.

We have agreed to guarantee the liabilities and performance obligations (some of which have limitations) of a certain debt collections and recovery management variable interest entity under its commercial agreements.

15 unchanged sentences

Effective Tax Rate

Our effective income tax rate was 21.7 % for the three months ended June 30, 2020, compared to 23.3 % for the three months ended June 30, 2019.

Our second quarter effective 2020 tax rate was favorably impacted by a more favorable foreign rate differential.

Our effective income tax rate was 22.9 % for the six months ended June 30, 2020, compared to a 12.2 % benefit for the six months ended June 30, 2019.

Our effective income tax rate was 25.1 % for the three months ended September 30, 2020, compared to 14.5 % for the three months ended September 30, 2019.

Our third quarter effective 2020 tax rate was adversely impacted by the tax treatment associated with the gain on the fair value adjustment of the Brazil investment.

Our effective income tax rate was 24.1 % for the nine months ended September 30, 2020, compared to an 11.7 % benefit for the nine months ended September 30, 2019.

Our effective tax rate was higher year-to-date for 2020 as compared to 2019 due to permanent tax differences resulting from the accrual for losses associated with certain legal proceedings and investigations related to the 2017 cybersecurity incident included in the 2019 effective tax rate.

The 2020 year-to-date rate has been adversely impacted by valuation allowances against the deferred tax assets of certain international operations, however this impact was partially offset by favorable adjustments related to accruals for losses associated with certain legal proceedings and investigations related to the 2017 cybersecurity incident.

The 2020 year-to-date rate has been adversely impacted by valuation allowances against the deferred tax assets of certain international operations as well as the tax treatment associated with the gain on the fair value adjustment of the Brazil investment.

However, these impacts were partially offset by favorable adjustments related to the 2019 legal proceedings.

2019 income taxes were calculated using the discrete method, applying the actual year-to-date effective tax rate to our pre-tax loss.

5 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the six months ended June 30, 2020, are as follows:

Changes in accumulated other comprehensive loss by component, after tax, for the nine months ended September 30, 2020, are as follows:

currency Pension and other

7 unchanged sentences

Net current-period other comprehensive (loss) income ( 8.2 ) 11.3 — 3.1

Balance, June 30, 2020 $ ( 410.0 ) $ ( 270.6 ) $ ( 1.1 ) $ ( 681.7 )

Reclassifications out of accumulated other comprehensive loss for the six months ended June 30, 2020, are as follows:

Balance, September 30, 2020 $ ( 360.6 ) $ ( 266.8 ) $ ( 1.1 ) $ ( 628.5 )

Reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 2020, are as follows:

Details about accumulated other

12 unchanged sentences

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

Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of June 30, 2020.

Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of September 30, 2020.

BENEFIT PLANS

2 unchanged sentences

The following table provides the components of net periodic benefit cost.

The service cost component is included in selling, general and administrative expenses and the other components of net periodic benefit cost are included in other income, net in the Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2020 and 2019:

Pension Benefits Other Benefits

Three Months Ended June 30,

Three Months Ended September 30,

2020 2019 2020 2019

7 unchanged sentences

Pension Benefits Other Benefits

Six months ended June 30,

Nine months ended September 30,

2020 2019 2020 2019

12 unchanged sentences

- International

- Global Consumer Solutions

- Global Consumer Solutions ("GCS")

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 2019 Form 10-K.

17 unchanged sentences

We also sell consumer and credit information to resellers who combine our information with other information to provide direct to consumer monitoring, reports and scores.

Operating revenue and operating income by operating segment during the three and six months ended June 30, 2020 and 2019 are as follows:

Three Months Ended Six Months Ended

(In millions) June 30, June 30,

Operating revenue and operating income by operating segment during the three and nine months ended September 30, 2020 and 2019 are as follows:

Three Months Ended Nine Months Ended

(In millions) September 30, September 30,

Operating revenue:

5 unchanged sentences

Total operating revenue $ 1,068.3 $ 875.7 $ 3,009.1 $ 2,601.8

Three Months Ended Six Months Ended

(In millions) June 30, June 30,

Three Months Ended Nine Months Ended

(In millions) September 30, September 30,

Operating income (loss):

6 unchanged sentences

Total operating income (loss) $ 204.4 $ 121.6 $ 507.2 $ ( 382.5 )

Total assets by operating segment at June 30, 2020 and December 31, 2019 are as follows:

June 30, December 31,

Total assets by operating segment at September 30, 2020 and December 31, 2019 are as follows:

September 30, December 31,

(In millions) 2020 2019

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements