What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2021-02-25 compared with 2020-02-20 · 500 added, 452 removed, 1438 unchanged (40% of the section changed)

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Report of Independent Registered Public Accounting Firm

Consolidated Statements of (Loss) Income for each of the three years in the period ended December 31, 2019

Consolidated Statements of Comprehensive (Loss) Income for each of the three years in the period ended December 31, 2019

Consolidated Statements of Income (Loss) for each of the three years in the period ended December 31, 2020

Consolidated Statements of Comprehensive Income (Loss) for each of the three years in the period ended December 31, 2020

Consolidated Balance Sheets at December 31, 2020 and 2019

Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2020

Consolidated Statements of Shareholders’ Equity and Other Comprehensive (Loss) Income for each of the three years in the period ended December 31, 2019

Consolidated Statements of Shareholders’ Equity and Accumulated Other Comprehensive Loss for each of the three years in the period ended December 31, 2020

Notes to Consolidated Financial Statements

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(the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2019 and 2018, the related consolidated statements of (loss) income, comprehensive (loss) income, cash flows, and shareholders’ equity and other comprehensive income (loss) for each of the three years in the period ended December 31, 2019, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”) and our report dated February 20, 2020 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2020 and 2019, the related consolidated statements of income (loss), comprehensive income (loss), cash flows, and shareholders’ equity and accumulated other comprehensive loss for each of the three years in the period ended December 31, 2020, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”) and our report dated February 25, 2021 expressed an unqualified opinion thereon.

Basis for Opinion

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We have audited the accompanying consolidated balance sheets of Equifax Inc.

(the Company) as of December 31, 2019 and 2018, the related consolidated statements of (loss) income, comprehensive income (loss), cash flows, and shareholders’ equity and other comprehensive income (loss) for each of the three years in the period ended December 31, 2019, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

(the Company) as of December 31, 2020 and 2019, the related consolidated statements of income (loss), comprehensive income (loss), cash flows, and shareholders’ equity and accumulated other comprehensive loss for each of the three years in the period ended December 31, 2020, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S.

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Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risk of material misstatements of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

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We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Loss Contingencies, related to the 2017 cybersecurity incident

Description of the Matter As described in Note 6 to the consolidated financial statements, following the 2017 cybersecurity incident, hundreds of class action and other lawsuits were filed against the Company alleging harm from the 2017 cybersecurity incident.

These actions sought various remedies including monetary and injunctive relief.

The Company was also subject to investigations and inquiries by federal, state and foreign governmental regulatory agencies and officials.

Many of these lawsuits and government investigations have progressed such that they have been settled and paid or settlement agreements have been reached but are subject to finalization or appeal.

However, other matters remain unresolved.

Based on the progression of these matters, the Company believes it is probable that they will incur losses associated with matters where settlement agreements have been reached but are subject to finalization or appeal and the amounts accrued to date represent management’s best estimate of the liability related to these matters.

Management has concluded that it is reasonably possible that losses exceeding the amounts accrued may be incurred but that it is not possible at this time to estimate those amounts.

For the other matters that remain unresolved, management has disclosed that a loss is reasonably possible but cannot be estimated at this time.

Auditing management’s accounting for and disclosure of loss contingencies related to the 2017 cybersecurity regulatory and legal matters required significant judgment given the progression of the status of these matters throughout 2019 and management’s use of estimates when recording its best estimate of the related liability and determining the related disclosures.

How We Addressed the Matter in Our Audit We identified and tested controls over the identification and evaluation of the Company’s regulatory and legal matters related to the 2017 cybersecurity incident as well as management’s assessment of and evaluation of whether the likelihood of loss relating to those matters was either probable or reasonably possible and whether a loss or range of loss was estimable based on the progression of the matters during 2019.

To evaluate the Company’s conclusions, we utilized the involvement of more experienced members of the audit team and attended the Company’s legal meetings with senior management and outside counsel to observe and analyze, among other things, their evaluation of the status of these matters.

In order to evaluate management’s accounting evaluation with regard to the status of these matters, we read the minutes of the meetings of the committees of the board of directors, read summaries of the proceedings and related key correspondence with the representatives of the plaintiffs, U.S.

federal and state and foreign regulatory agencies, requested and received internal and external legal counsel confirmation letters, and obtained representations from the Company with respect to their conclusions.

In order to test the reasonableness of the best estimates recorded by the Company, we performed a search for both corroborating and new or contrary evidence for inputs utilized in the estimates and evaluated the development of the Company’s legal matters through the date of our opinion.

We also assessed the disclosures related to these contingencies in Note 6 to the consolidated financial statements.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company has elected to change its method of accounting for actuarial gains and losses and the calculation of expected return on plan assets related to all of its pension and other postretirement benefit plans during the year ended December 31, 2020.

The Company adopted this change on a retrospective basis.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which they relate.

Goodwill impairment test for the Asia Pacific reporting unit

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In particular, the fair value estimate was sensitive to significant assumptions such as the revenue growth rate, projected operating margin, terminal value, and weighted average cost of capital, which are affected by expectations about future market or economic conditions and the economic performance of the Asia Pacific reporting unit.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process to quantitatively test the Company’s Asia Pacific reporting unit’s goodwill balance for impairment including among others, controls related to management’s review of the significant assumptions described above and the resulting relative fair value for Asia Pacific reporting unit.

To test the estimated fair value of the Asia Pacific reporting unit used in the annual goodwill impairment test, we performed audit procedures that included, among others, assessing the methodologies used to determine the fair value of the Asia Pacific reporting unit, testing the significant assumptions discussed above and testing the underlying data used by the Company in its analysis.

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February 25, 2021

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

Twelve Months Ended

2020 2019 2018

(In millions, except per share amounts)

(In millions, except per share amounts) Revised Revised

Operating revenue $ 4,127.5 $ 3,507.6 $ 3,412.1

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Total operating expenses 3,450.9 3,843.0 2,964.1

Operating (loss) income ( 335.4 ) 448.0 831.7

Operating income (loss) 676.6 ( 335.4 ) 448.0

Interest expense ( 141.6 ) ( 111.7 ) ( 103.5 )

Other income, net 150.2 33.3 25.9

Consolidated (loss) income before income taxes ( 433.0 ) 356.3 746.6

Benefit (provision) for income taxes 40.2 ( 50.0 ) ( 148.6 )

Consolidated net (loss) income ( 392.8 ) 306.3 598.0

Consolidated income (loss) before income taxes 685.2 ( 413.8 ) 370.4

(Provision from) benefit for income taxes ( 159.0 ) 35.7 ( 53.4 )

Consolidated net income (loss) 526.2 ( 378.1 ) 317.0

Net income attributable to noncontrolling interests including redeemable noncontrolling interests ( 6.1 ) ( 6.0 ) ( 6.5 )

Net (loss) income attributable to Equifax $ ( 398.8 ) $ 299.8 $ 587.3

Net income (loss) attributable to Equifax $ 520.1 $ ( 384.1 ) $ 310.5

Basic earnings per common share:

Net (loss) income attributable to Equifax $ ( 3.30 ) $ 2.49 $ 4.89

Net income (loss) attributable to Equifax $ 4.28 $ ( 3.18 ) $ 2.58

Weighted-average shares used in computing basic earnings per share 121.5 120.9 120.4

Diluted earnings per common share:

Net (loss) income attributable to Equifax $ ( 3.27 ) $ 2.47 $ 4.83

Net income (loss) attributable to Equifax $ 4.24 $ ( 3.15 ) $ 2.56

Weighted-average shares used in computing diluted earnings per share 122.8 122.0 121.4

1 unchanged sentence

See Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Twelve Months Ended December 31,

2020 2019 2018

Revised Revised

Equifax Shareholders Noncontrolling Interests Total Equifax Shareholders Noncontrolling Interests Total Equifax Shareholders Noncontrolling Interests Total

(In millions)

Net (loss) income $ ( 398.8 ) $ 6.0 $ ( 392.8 ) $ 299.8 $ 6.5 $ 306.3 $ 587.3 $ 10.7 $ 598.0

Other comprehensive (loss) income:

Net income (loss) $ 520.1 $ 6.1 $ 526.2 $ ( 384.1 ) $ 6.0 $ ( 378.1 ) $ 310.5 $ 6.5 $ 317.0

Other comprehensive income (loss):

Foreign currency translation adjustment 184.0 1.2 185.2 ( 24.4 ) ( 0.5 ) ( 24.9 ) ( 224.7 ) 5.8 ( 218.9 )

Change in unrecognized prior service cost and actuarial gains (losses) related to our pension and other postretirement benefit plans, net 19.0 — 19.0 10.4 — 10.4 8.4 — 8.4

Change in cumulative gain (loss) from cash flow hedging transactions, net 0.1 — 0.1 — — — ( 0.2 ) — ( 0.2 )

Comprehensive (loss) income $ ( 404.1 ) $ 5.5 $ ( 398.6 ) $ 85.5 $ 12.3 $ 97.8 $ 754.2 $ 14.0 $ 768.2

Change in unrecognized prior service cost and actuarial (losses) gains related to our pension and other postretirement benefit plans, net ( 1.1 ) — ( 1.1 ) 4.3 — 4.3 302.2 — 302.2

Change in cumulative gain from cash flow hedging transactions, net 0.1 — 0.1 0.1 — 0.1 — — —

Comprehensive income (loss) $ 703.1 $ 7.3 $ 710.4 $ ( 404.1 ) $ 5.5 $ ( 398.6 ) $ 388.0 $ 12.3 $ 400.3

See Notes to Consolidated Financial Statements.

CONSOLIDATED BALANCE SHEETS

(In millions, except par values)

(In millions, except par values) Revised

Current assets:

Cash and cash equivalents $ 1,684.6 $ 401.3

Trade accounts receivable, net of allowance for doubtful accounts of $11.2 and $10.9 at

December 31, 2019 and 2018, respectively 532.1 469.1

Trade accounts receivable, net of allowance for doubtful accounts of $ 12.9 and $ 11.2 at December 31, 2020 and 2019, respectively

Prepaid expenses 104.1 88.1

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Treasury stock, at cost, 66.9 shares and 67.5 shares at December 31, 2020 and 2019,

respectively ( 2,557.4 ) ( 2,571.0 )

( 2,547.0 ) ( 2,557.4 )

Stock held by employee benefits trusts, at cost, 0.6 shares at December 31, 2020 and 2019, respectively

( 5.9 ) ( 5.9 )

Total Equifax shareholders’ equity 3,168.4 2,578.6

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2020 2019 2018

(In millions)

(In millions) Revised Revised

Operating activities:

Consolidated net (loss) income $ ( 392.8 ) $ 306.3 $ 598.0

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Consolidated net income (loss) $ 526.2 $ ( 378.1 ) $ 317.0

Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:

Depreciation and amortization 399.3 337.3 315.9

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Deferred income taxes 66.5 ( 82.7 ) 1.3

Gain on fair market value adjustment of equity investments ( 149.5 ) — —

Changes in assets and liabilities, excluding effects of acquisitions:

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Financing activities:

Net short-term (repayments) borrowings ( 1.8 ) ( 959.2 ) 252.4

Net short-term repayments ( 0.7 ) ( 1.8 ) ( 959.2 )

Payments on long-term debt ( 125.0 ) ( 250.0 ) ( 100.0 )

Proceeds from issuance of long-term debt 1,123.3 998.3 994.5

Treasury stock purchases — — ( 77.1 )

Dividends paid to Equifax shareholders ( 189.5 ) ( 188.7 ) ( 187.9 )

Dividends paid to noncontrolling interests ( 4.6 ) ( 6.6 ) ( 10.3 )

Proceeds from exercise of stock options 22.3 11.8 19.2

Proceeds from exercise of stock options and employee stock purchase plan 41.7 22.3 11.8

Payment of taxes related to settlement of equity awards ( 15.9 ) ( 10.5 ) ( 19.7 )

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Debt issuance costs ( 9.8 ) ( 5.1 ) ( 7.8 )

Other 0.3 — —

Cash provided by (used in) financing activities 810.8 557.9 ( 311.0 )

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See Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND OTHER COMPREHENSIVE (LOSS) INCOME

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

Equifax Shareholders

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Net income — — — 310.5 — — — 6.5 317.0

Other comprehensive income — — — — 166.9 — — 3.3 170.2

Other comprehensive (loss) income — — — — ( 218.1 ) — — 5.8 ( 212.3 )

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.5 — ( 14.0 ) — — 6.6 — — ( 7.4 )

Impact of Tax Cuts and Job Acts of 2017 — — — 50.0 ( 50.0 ) — — — —

Treasury stock purchased under share repurchase program ($76.55 per share) ( 0.5 ) — — — — ( 77.1 ) — — ( 77.1 )

Cash dividends ($ 1.56 per share)

— — — ( 188.8 ) — — — — ( 188.8 )

Dividends paid to employee benefits trusts — — 0.9 — — — — — 0.9

Stock-based compensation expense — — 42.5 — — — — — 42.5

Cumulative adjustment from change in accounting principle — — — ( 298.4 ) 302.6 — — — 4.2

Redeemable noncontrolling interest adjustment — — — 2.0 — — — ( 2.0 ) —

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Purchase of noncontrolling interests — — ( 5.5 ) — ( 7.0 ) — — ( 16.7 ) ( 29.2 )

Other — — — ( 0.1 ) — — — 0.5 0.4

Balance, December 31, 2017 120.1 236.6 1,332.7 4,600.6 ( 412.0 ) ( 2,577.6 ) ( 5.9 ) 64.6 3,239.0

Net income — — — 299.8 — — — 6.5 306.3

Other comprehensive (loss) income — — — — ( 207.3 ) — — 5.8 ( 201.5 )

Balance, December 31, 2018 (Revised) 120.6 236.6 1,356.6 4,425.9 ( 334.5 ) ( 2,571.0 ) ( 5.9 ) 47.9 3,155.6

Net (loss) income — — — ( 384.1 ) — — — 6.0 ( 378.1 )

Other comprehensive loss — — — — ( 19.9 ) — — ( 0.5 ) ( 20.4 )

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.6 — ( 2.1 ) — — 13.6 — — 11.5

Cash dividends ($ 1.56 per share)

— — — ( 189.6 ) — — — — ( 189.6 )

Dividends paid to employee benefits trusts — — 0.9 — — — — — 0.9

Stock-based compensation expense — — 49.7 — — — — — 49.7

Cumulative adjustment from change in accounting principle — — — 4.2 — — — — 4.2

Redeemable noncontrolling interest adjustment — — — 2.4 — — — ( 2.5 ) ( 0.1 )

Dividends paid to noncontrolling interests — — — — — — — ( 6.6 ) ( 6.6 )

Purchase of noncontrolling interests — — ( 5.5 ) — ( 7.0 ) — — ( 16.7 ) ( 29.2 )

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) income — — — ( 398.8 ) — — — 6.0 ( 392.8 )

Other comprehensive (loss) income — — — — ( 5.3 ) — — ( 0.5 ) ( 5.8 )

Balance, December 31, 2019 (Revised) 121.2 236.6 1,405.1 3,854.6 ( 354.4 ) ( 2,557.4 ) ( 5.9 ) 44.3 2,622.9

Net income — — — 520.1 — — — 6.1 526.2

Other comprehensive income — — — — 183.0 — — 1.2 184.2

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.6 — 15.0 — — 10.4 — — 25.4

Cash dividends ($ 1.56 per share)

— — — ( 190.5 ) — — — — ( 190.5 )

Dividends paid to employee benefits trusts — — 1.0 — — — — — 1.0

Stock-based compensation expense — — 54.7 — — — — — 54.7

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

Redeemable noncontrolling interest adjustment — — — 1.5 — — — ( 1.5 ) —

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

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

Other — — — 0.1 — — — 0.3 0.4

Balance, December 31, 2020 121.8 $ 236.6 $ 1,470.7 $ 4,185.4 $ ( 171.4 ) $ ( 2,547.0 ) $ ( 5.9 ) $ 41.9 $ 3,210.3

1 unchanged sentence

See Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND OTHER COMPREHENSIVE (LOSS) INCOME

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated Other Comprehensive Loss consists of the following components:

2020 2019 2018

Revised Revised

(In millions)

Foreign currency translation $ ( 168.4 ) $ ( 352.4 ) $ ( 328.1 )

Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $88.4, $93.1 and $95.6 in 2019, 2018 and 2017, respectively ( 278.1 ) ( 297.1 ) ( 257.5 )

Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $( 0.5 ), $( 0.2 ) and $( 1.6 ) in 2020, 2019 and 2018, respectively

( 2.0 ) ( 0.9 ) ( 5.2 )

Cash flow hedging transactions, net of tax of $ 0.7 in 2020, 2019 and 2018, respectively

Impact of Tax Cuts and Jobs Act of 2017 — — ( 50.0 )

( 1.0 ) ( 1.1 ) ( 1.2 )

Accumulated other comprehensive loss $ ( 171.4 ) $ ( 354.4 ) $ ( 334.5 )

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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.

We also offer Equifax branded credit services in Russia through a joint venture, have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia, Singapore and the United Arab Emirates, have an investment in a consumer and commercial credit information company in Brazil and have an investment in an identity authentication company in Canada.

We also offer Equifax branded credit services in Russia through a joint venture, have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia, Singapore and the United Arab Emirates and have an investment in a consumer and commercial credit information company in Brazil.

We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting institutions, and income and tax information primarily from large to mid-sized companies in the U.S.

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We believe that the estimates and assumptions inherent in our Consolidated Financial Statements are reasonable, based upon information available to us at the time they are made including the consideration of events that have occurred up until the point these Consolidated Financial Statements have been filed.

These estimates and assumptions affect the reported amounts of

These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities at the date of the financial statements,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenues and expenses during the reporting period.

as well as reported amounts of revenues and expenses during the reporting period.

Actual results could differ materially from these estimates.

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We record revenue on a net basis for those sales in which we have in substance acted as an agent or broker in the transaction and therefore do not have control.

In certain instances within our debt collections and recovery management services in our International operating segment and certain tax management services within our Workforce Solutions operating segment, variable consideration is

Within our debt collections and recovery

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

constrained due to the fact that the revenue is contingent on a particular outcome.

Within our debt collections and recovery management businesses, revenue is calculated as a percentage of debt collected on behalf of the customer and, as such, is primarily recognized when the debt is collected assuming all other revenue recognition criteria are met.

management businesses, revenue is calculated as a percentage of debt collected on behalf of the customer and, as such, is primarily recognized when the debt is collected assuming all other revenue recognition criteria are met.

Within our Workforce Solutions operating segment, the fees for certain of our tax credits and incentives revenue are based on a percentage of the credit delivered to our clients.

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We assess the potential outcome of such examinations to determine the adequacy of our income tax accruals.

We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes on our Consolidated Statements of (Loss) Income.

We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes on our Consolidated Statements of Income (Loss).

We adjust our income tax provision during the period in which we determine that the actual results of the examinations may differ from our estimates or when statutory terms expire.

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Additionally, we generally do not require collateral from our customers related to our trade accounts receivable.

The allowance for doubtful accounts for estimated losses on trade accounts receivable is based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns and the establishment of specific reserves for customers in an adverse financial condition.

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 (Loss) Income.

Bad debt expense was $ 5.4 million, $ 5.6 million and $ 5.0 million during the twelve months ended December 31, 2019, 2018, and 2017, respectively.

Below is a rollforward of our allowance for doubtful accounts for the twelve months ended December 31, 2020 and 2019:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Twelve Months Ended December 30,

(In millions)

Allowance for doubtful accounts, beginning of period $ 11.2 $ 10.9

Current period bad debt expense 6.3 5.4

Write-offs, net of recoveries ( 4.6 ) ( 5.1 )

Allowance for doubtful accounts, end of period $ 12.9 $ 11.2

Other Current Assets.

Other current assets on our Consolidated Balance Sheets include directors and officers liability insurance receivable for costs incurred to date related to the 2017 cybersecurity incident that are reimbursable and probable for recovery under our insurance coverage.

As of December 31, 2019, this insurance receivable balance was approximately $ 112.4 million and we have accrued for the maximum remaining reimbursement amount allowed under the insurance policy.

As of December 31, 2018 the Company had no insurance receivables outstanding.

Other current assets also includes certain current tax receivable accounts.

Other current assets on our Consolidated Balance Sheets included directors and officers liability insurance receivable for costs incurred to date related to the 2017 cybersecurity incident that are reimbursable and probable for recovery under our insurance coverage.

As of December 31, 2019, the insurance receivable balance was approximately $ 112.4 million and we had accrued for the maximum remaining reimbursement amount allowed under the insurance policy.

As of December 31, 2020 all amounts outstanding had been collected and the Company had no insurance receivables outstanding.

Other current assets also include certain current tax receivable accounts.

As of December 31, 2020 and 2019, these assets were approximately $ 21.3 million and $ 35.6 million, respectively.

Additionally, other current assets 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 December 31, 2019 and 2018 these assets were approximately $ 29.3 million and $ 31.0 million, respectively, with fully offsetting balances in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

other current liabilities.

As of December 31, 2020 and 2019 these assets were approximately $ 25.1 million and $ 29.3 million, respectively, with fully offsetting balances in other current liabilities.

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

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Other fixed assets are depreciated over three to seven years.

Upon sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized and included in income from operations on the Consolidated Statements of (Loss) Income, with the classification of any gain or loss dependent on the characteristics of the asset sold or retired.

Upon sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized and included in income from operations on the Consolidated Statements of Income (Loss), with the classification of any gain or loss dependent on the characteristics of the asset sold or retired.

Certain internal-use software and system development costs are capitalized.

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We estimate the undiscounted future cash flows arising from the use and eventual disposition of the related long-lived asset group.

If the carrying value of the long-lived asset group exceeds the estimated future undiscounted cash flows, an impairment loss is recorded based on the amount by which the asset group’s carrying amount exceeds its fair value.

If the carrying value of the long-lived asset group exceeds the estimated future undiscounted cash flows, an impairment loss is

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

recorded based on the amount by which the asset group’s carrying amount exceeds its fair value.

We utilize estimates of discounted future cash flows to determine the asset group’s fair value.

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If further testing is required, we continue with the quantitative impairment test.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In analyzing goodwill for potential impairment in the quantitative impairment test, we use a combination of the income and market approaches to estimate the reporting unit’s fair value.

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If the fair value of a reporting unit exceeds its carrying value, then no further testing is required.

However, if a reporting unit’s fair value were to be less than its carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the reporting unit’s goodwill exceeded its implied value.

Indefinite-lived reacquired rights represent the value of rights which we had granted to various affiliate credit reporting agencies that were reacquired in the U.S.

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All of our other purchased intangible assets are also amortized on a straight-line basis.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Asset Useful Life

Purchased data files 2 to 15

Purchased data files 15

Acquired software and technology 1 to 10

Non-compete agreements 1 to 5

Non-compete agreements 5

Proprietary database 6 to 13

1 unchanged sentence

Trade names 2 to 15

Additionally, included in intangible assets are reacquired rights that represent the value of rights which we had granted to Computer Sciences Corporation that were reacquired in connection with the acquisition of CSC Credit Services in the fourth quarter of 2012 based on the accounting guidance in place at that time.

These reacquired rights were amortized over the remaining term of the affiliation agreement on a straight-line basis and became fully amortized on August 1, 2018.

Other Assets.

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Equity Investment .

We record our equity investments using the alternative 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 investments are not readily determinable.

We monitor the status of our equity investments in order to determine if conditions exist or events and circumstances indicate that they may be impaired in that their carrying amount may exceed the fair value of the investments.

Significant factors that are considered that could be indicative of an impairment include:

changes in business strategy, market conditions, underperformance relative to historical or expected future operating results;

and negative industry or economic trends.

If potential indicators of impairment exist, we estimate the fair value of the investment using a combination

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

of a discounted cash flow analysis and an evaluation of EBITDA and transaction multiples for comparable companies.

If the carrying value of the investments exceed the estimated fair values, an impairment loss is recorded based on the amount by which the investment’s carrying amount exceeds its fair value.

There were no indicators of impairment for 2019, 2018, or 2017.

We record our equity investment in Brazil within Other Assets using the 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 Brazil.

The carrying value of the investment has been adjusted to $ 127.7 million based on observable Level 1 inputs as of December 31, 2020, resulting in an unrealized gain of $ 116.6 million for the twelve months December 31, 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.

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Other current liabilities includes accrued legal expense of $ 379.7 million and $ 589.0 million as of December 31, 2020 and 2019, respectively.

The accrued legal balance primarily consists of $ 563.9 million accruals for losses associated with certain legal proceedings and investigations related to the 2017 cybersecurity incident that have not been paid as of December 31, 2019.

There were no accruals for these losses as of December 31, 2018.

The accrued legal balance primarily consists of $ 355.2 million and $ 563.9 million accruals for losses associated with certain legal proceedings and investigations related to the 2017 cybersecurity incident that have not been paid as of December 31, 2020 and 2019, respectively.

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.

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The expected rate of return on plan assets is based on both our historical returns and forecasted future investment returns by asset class, as provided by our external investment advisor.

Annual differences, if any, between the expected and actual returns on plan assets are included in unrecognized net actuarial gain or loss, a component of other comprehensive income.

In calculating the annual amortization of the unrecognized net actuarial gain or loss, we use a market-related value of assets that smooths actual investment gains and losses on plan assets over a period up to five years.

The resulting unrecognized net actuarial gain or loss amount is recognized in net periodic pension expense over the average remaining life expectancy of the participant group since almost all participants are inactive.

In the fourth quarter of 2020, we voluntarily changed our method of accounting for recognizing actuarial gains and losses and expected return on plan assets for our defined benefit pension and other postretirement benefit plans, as further described below.

Our Consolidated Balance Sheets reflect the funded status of the pension and other postretirement plans.

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Argentina has experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates.

As such, Argentina has been deemed a highly inflationary economy by accounting policymakers.

Beginning in the third quarter of 2018, we accounted for Argentina as a highly inflationary economy by remeasuring the peso denominated monetary assets and liabilities which resulted in the recognition of $ 1.0 million and $ 1.8 million of foreign currency losses that were recorded in other income, net in our Consolidated Statements of (Loss) Income for the twelve months ended December 31, 2019 and 2018, respectively.

As such, Argentina was deemed a highly inflationary economy by accounting policymakers.

Beginning in the third quarter of 2018, we accounted for Argentina as a highly inflationary economy by remeasuring the peso denominated monetary assets and liabilities which resulted in the recognition of $ 0.5 million, $ 1.0 million and $ 1.8 million of foreign currency losses that were recorded in other income, net in our Consolidated Statements of Income (Loss) for the twelve months ended December 31, 2020, 2019 and 2018, respectively.

Other than Argentina, we translate the assets and liabilities of foreign subsidiaries at the year-end rate of exchange and revenue and expenses at the monthly average rates during the year.

We record the resulting translation adjustment in other comprehensive loss, included in accumulated other comprehensive loss, a component of shareholders’ equity.

We also record gains and losses resulting from the translation of intercompany balances of a long-term investment nature in foreign currency translation in other comprehensive loss and accumulated other comprehensive loss.

In the years ended December 31, 2019, 2018, and 2017, we recorded $ 3.0 million, $ 1.6 million and $ 0.5 million of foreign currency transaction losses in our Consolidated Statements of (Loss) Income, respectively.

We also record gains and losses resulting from the translation of intercompany balances of a long-term investment nature in foreign currency

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

translation in other comprehensive loss and accumulated other comprehensive loss.

In the years ended December 31, 2020, 2019 and 2018, we recorded $ 7.5 million, $ 3.0 million and $ 1.6 million of foreign currency transaction losses in our Consolidated Statements of Income (Loss), respectively.

Financial Instruments.

Our financial instruments consist primarily of cash and cash equivalents, accounts and notes receivable, accounts payable and short and long-term debt.

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.

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Fair Value Measurements.

Fair value is determined based on the assumptions marketplace participants use in pricing the asset or liability.

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).

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents assets and liabilities measured at fair value on a recurring basis:

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Total assets and liabilities $ — $ 42.3 $ ( 42.3 ) $ —

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

(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 plans.

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

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As disclosed in Note 3, we completed various acquisitions during the years ended December 31, 2020 and 2019.

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

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 goodwill and definite-lived intangible assets acquired in these acquisitions were estimated primarily based on the income approach.

The fair values of definite-lived intangible assets acquired in these acquisitions were estimated primarily based on the income approach.

The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future.

We developed internal estimates for the expected cash flows and discount rates in the present value calculations.

The fair value of the equity method investment assets acquired are estimated based on the market approach.

Under the market approach, we estimate fair value based on market multiples of comparable companies.

Variable Interest Entities.

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The assets and liabilities of the VIE for which we are the primary beneficiary were not significant to the Company’s consolidated financial statements.

In evaluating whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance as compared to other economic interest holders.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance as compared to other economic interest holders.

This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important.

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The redeemable noncontrolling interests are reflected using the redemption method as of the balance sheet date.

Redeemable noncontrolling interest adjustments to the redemption values are

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

reflected in retained earnings.

Redeemable noncontrolling interest adjustments to the redemption values are reflected in retained earnings.

The adjustment of redemption value at the period end that reflects a redemption value in excess of fair value is included as an adjustment to net income attributable to Equifax stockholders for the purposes of the calculation of earnings per share.

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Additionally, due to the immaterial balance of the redeemable noncontrolling interest, we have elected to maintain the noncontrolling interest in permanent equity, rather than temporary equity, within our Consolidated Balance Sheet.

Change in Accounting Principle.

In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220).” The guidance provides companies the option to eliminate the stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017.

The guidance is effective for annual periods beginning after December 31, 2018, with early adoption permitted for reporting periods for which financial statements have not been issued and can be applied retrospectively.

As such, we adopted this guidance as of December 31, 2017 resulting in the reclassification of $ 50.0 million from accumulated other comprehensive income to retained earnings related to the change in tax rate, as proscribed in the guidance.

In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” This standard requires lessees to record most leases on their balance sheets and expenses on their income statements in a manner similar to current lease accounting.

The guidance also eliminates current real estate-specific provisions for all entities.

For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases.

All entities will classify leases to determine how to recognize lease-related revenue and expense.

The guidance became effective for fiscal years and interim reporting periods beginning after December 15, 2018.

In July 2018, the FASB approved an additional optional transition method by allowing entities to initially apply the new lease standard at the adoption date.

As of January 1, 2019, we adopted the standard using this optional transition method.

The adoption of the standard did not have a material impact on our consolidated financial statements with the most significant impact being the recognition of right-of-use assets and lease liabilities for operating leases in other assets, net and other current and long-term liabilities, respectively, in our Consolidated Balance Sheets.

We have applied the available package of practical expedients, as well as the election not to apply recognition and measurement requirements to short-term leases.

We have implemented internal controls to enable preparation of financial information on adoption.

See Note 12 for further details.

In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities (Topic 815).” The amendments in ASU 2017-12 provide targeted improvements to the accounting for hedging activities to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results.

The adoption of ASU 2017-12 is effective for annual periods beginning after December 15, 2018, although early adoption is permitted.

This guidance must be applied on a prospective basis.

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

Recent Accounting Pronouncements.

In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment (Topic 350).” This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value.

This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted.

This guidance must be applied on a prospective basis.

We do not expect the adoption of this guidance to have a material impact on our annual assessment of goodwill recoverability.

Credit Losses .

Adoption of New Accounting Standards.

In June 2016, the FASB issued ASU No.

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ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019.

We do not expect the adoption of the standard to have a material impact on our Consolidated Financial Statements.

Fair Value Measurements .

As of January 1, 2020, we adopted the standard.

The adoption of the standard did not have a material impact on our consolidated financial statements with the most significant impact being the increase in allowance for doubtful accounts related to our trade accounts receivable.

The adoption adjustment was recorded to Retained Earnings, as seen in the Consolidated Statements of Changes in Equity.

In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment (Topic 350).” This standard eliminates Step 2 from the current goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds the reporting unit’s fair value.

This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted.

This guidance must be applied on a prospective basis.

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

In August 2018, the FASB issued ASU No.

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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 will have an impact on our disclosures and will not materially impact our Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Retirement Benefits .

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

In August 2018, the FASB issued ASU No.

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ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and early adoption is permitted.

The adoption of this standard will have an impact on our disclosures and will not materially impact our Consolidated Financial Statements.

Cloud Computing Arrangements .

We have updated our disclosures in Note 9 to conform with the standard.

In August 2018, the FASB issued ASU No.

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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.

We do not expect the adoption of the standard to have a material impact on our Consolidated Financial Statements.

ASU 2018-15 is effective for fiscal years

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

The guidance also eliminates current real estate-specific provisions for all entities.

For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases.

All entities will classify leases to determine how to recognize lease-related revenue and expense.

The guidance became effective for fiscal years and interim reporting periods beginning after December 15, 2018.

In July 2018, the FASB approved an additional optional transition method by allowing entities to initially apply the new lease standard at the adoption date.

As of January 1, 2019, we adopted the standard using this optional transition method.

We have applied the available package of practical expedients, as well as the election not to apply recognition and measurement requirements to short-term leases.

See Note 12 for further details.

The adoption of ASU 2017-12 is effective for annual periods beginning after December 15, 2018, although early adoption is permitted.

This guidance must be applied on a prospective basis.

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

Recent Accounting Pronouncements.

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.

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.

Change in Accounting Principle.

Under the accounting method change, remeasurement of projected benefit obligation and plan assets are immediately recognized in earnings through net periodic benefit cost within Other Income (Expense) on the Consolidated Statements of Income (Loss), with pension and postretirement plans to be remeasured annually in the fourth quarter or on an interim basis as triggering events require remeasurement.

In addition, we changed our accounting for measuring the market-related value of plan assets from a calculated amount to fair value, no longer recognizing the difference between expected return on assets and actual return on assets over a five year period.

Prior to this accounting method change, unrecognized actuarial gains and losses were included in Accumulated Other Comprehensive Loss on the Consolidated Balance Sheet and were amortized into earnings over the average remaining service period of active employees expected to receive benefits under the plan.

We also determined the market-related value of plan assets based on a calculated market adjustment to reflect investment gains and losses during each of the last five years, with differences between expected and actual return on plan assets recognized at a rate of 20% per year.

While the historical accounting principle was acceptable, we believe that the current accounting policies provide a better representation of the operating results of the Company and the economic performance of plan assets in relation to the measurement of its benefit obligations for the period.

The changes in accounting will more clearly reflect the current period impact of the Company’s pension asset investment strategy to readers of the financial statements.

This change has been applied on a retrospective basis for all prior years presented.

As of January 1, 2018, the cumulative effect of this change resulted in a $ 302.6 million decrease to retained earnings and a corresponding $ 302.6 million decrease to Accumulated Other Comprehensive Loss.

The impact of the change in accounting principle on current and prior period financial information is detailed further in Notes 14 and 15.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenue Recognition.

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2020 Acquisitions and Investments.

In February 2020, we acquired the remaining 40.6 % interest in our India joint venture.

In 2020, the Company also completed an acquisition in our USIS segment to expand the Company's product offerings.

We have completed the allocation of the purchase prices for the 2020 acquisitions.

2019 Acquisitions and Investments.

In April 2019, the Company completed the acquisition of 100 % of Knowledge Works, Inc., d/b/a PayNet, Inc.

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In 2019, the Company completed various acquisitions in our Workforce Solutions segment to expand the Company’s product offerings.

The primary area of the purchase price that is not yet finalized is related to working capital for certain of the Workforce Solutions acquisitions.

Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date.

2018 Acquisitions and Investments.

In July 2018, the Company completed the acquisition of 100 % of DataX Ltd., a national specialty finance credit agency and alternative data provider, in our USIS segment.

In 2018, the Company completed various acquisitions in our Workforce Solutions and International segments to expand the Company’s product offerings.

We have completed the allocation of the purchase prices for the 2019 acquisitions.

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Other liabilities ( 15.0 ) ( 18.4 )

Non-controlling interest — ( 1.8 )

Net assets acquired $ 111.3 $ 278.4

(1) Identifiable intangible assets are further disaggregated in the following table.

(2) The goodwill related to the 2020 acquisitions were recognized in the International and USIS operating segments.

The goodwill related to the International and USIS acquisitions in 2020 are not deductible for tax purposes.

The goodwill related to PayNet is included in the USIS and International operating segments and the goodwill related to the other 2019 acquisitions is included in the Workforce Solutions operating segment.

The goodwill related to PayNet is not tax deductible.

The goodwill related to the Workforce Solutions acquisitions in 2019 is not deductible for tax purposes.

The 2018 goodwill related to DataX Ltd.

is included in the USIS operating segment and the goodwill related to the other 2018 acquisitions is included in the Workforce Solutions and International operating segments and is not deductible for tax purposes.

The goodwill related to PayNet and the Workforce Solutions acquisitions in 2019 are not deductible for tax purposes.

(3) The above reflects the total net assets recorded from the purchase of the remaining interest of the India joint venture, inclusive of the gain due to remeasurement of the prior equity interest.

The primary reasons the purchase price of these acquisitions exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, were expanded growth opportunities from new or enhanced product offerings and geographies, cost savings from the elimination of duplicative activities, and the acquisition of an assembled workforce that are not recognized as assets apart from goodwill.

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Acquired software and technology 0.3 3.0 — 0.0

Purchased data files 68.6 6.9 30.2 11.3

Proprietary database 48.2 12.3 68.6 6.9

Non-compete agreements 0.1 5.0 4.0 5.0

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During 2020, we acquired the remaining interest in our India joint venture whose goodwill was allocated to the International operating segment, and an acquisition for which the acquired goodwill was allocated to the USIS operating segment.

During 2019, we completed the acquisition of PayNet whose goodwill was allocated to the USIS and International operating segments, and various other acquisitions for which the acquired goodwill was allocated to the Workforce Solutions operating segment.

During 2018, we completed the acquisition of DataX Ltd.

whose goodwill was allocated to the USIS operating segment and various other acquisitions for which the acquired goodwill was allocated to the Workforce Solutions and International operating segments.

Changes in the amount of goodwill for the twelve months ended December 31, 2020 and 2019, are as follows:

Solutions Workforce Solutions International Global Consumer Solutions Total

Solutions International Workforce Solutions Global Consumer Solutions Total

(In millions)

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(In millions)

Commercial paper (“CP”) $ — $ —

Notes, 2.30 %, due June 2021

$ 500.0 $ 500.0

Notes, 3.60 %, due Aug 2021

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Notes, 2.60 %, due December 2024

Notes, 2.60 %, due December 2025

Notes, 3.25 %, due June 2026

Debentures, 6.90 %, due July 2028

Notes, 3.1 %, due May 2030

Notes, 7.00 %, due July 2037

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(In millions)

2021 $ 1,101.1

Thereafter 1,250.0

Total debt $ 4,402.2

2.6 % and 3.1 % Senior Notes.

On April 22, 2020, we issued $ 400.0 million aggregate principal amount of 2.6 % five-year Senior Notes due 2025 (the "2025 Notes") and $ 600.0 million aggregate principal amount of 3.1 % ten-year Senior Notes due 2030 (the "2030 Notes") in an underwritten public offering.

Interest on the 2025 Notes accrues at a rate of 2.6 % per year and is payable semi-annually in arrears on June 15 and December 15 of each year.

Interest on the 2030 Notes accrues at a rate of 3.1 % per year and is payable semi-annually in arrears on May 15 and November 15 of each year.

The net proceeds of the sale of the notes were used to repay borrowings under our Receivables Facility and Revolver, while the remaining funds are intended for general corporate purposes, which may include the repayment of a portion of the 2021 debt maturities.

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

The 2025 Notes and 2030 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.

2.6 % Senior Notes.

On November 15, 2019, we issued $ 750.0 million aggregate principal amount of 2.6 % five -year Senior Notes due 2024 (the “2024 Notes”) in an underwritten public offering.

Interest on the 2024 Notes accrue at a rate of 2.6% per year and will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2020.

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.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

limitations on mortgages, liens and sale-leaseback transactions, as well as mergers and sales of substantially all of our assets.

The 2024 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.

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Interest on the 2023 Notes accrues from their date of issuance at a rate of 3.95 % per year and is payable in cash semi-annually in arrears on June 15 and December 15 of each year and began on December 15, 2018.

Interest on the Floating Rate Notes for a particular

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

interest period will be a rate equal to three-month LIBOR on the interest determination date plus 0.87 % per annum and is payable in cash quarterly in arrears on February 15, May 15, August 15, and November 15 of each year and began on August 15, 2018.

Interest on the Floating Rate Notes for a particular interest period will be a rate equal to three-month LIBOR on the interest determination date plus 0.87 % per annum and is payable in cash quarterly in arrears on February 15, May 15, August 15, and November 15 of each year and began on August 15, 2018.

The net proceeds of the sale of the notes were used to repay borrowings under our Revolver, our prior $ 800.0 million three -year delayed draw term loan facility (“Term Loan”) and our CP program.

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to 4.0 to 1.0) for a four consecutive fiscal quarter period following a material acquisition.

As permitted under the terms of the Revolver, we made the election to increase the covenant to 4.0 to 1.0, effective for four consecutive quarters, beginning in the second quarter of 2019 and continuing through the first quarter of 2020.

On April 10, 2020, we amended our existing revolving credit facility to increase the maximum leverage ratio to provide additional financial flexibility.

The amendment increases the maximum leverage ratio, defined as consolidated funded debt divided by consolidated EBITDA for the preceding four quarters, to (i) 4.5 to 1.0 for fiscal quarters ending on June 30, 2020 through and including September 30, 2021 and (ii) 4.0 to 1.0 for the fiscal quarter ending on December 31, 2021.

The maximum leverage ratio will return to 3.5 to 1.0 beginning with the fiscal quarter ending March 31, 2022 and thereafter.

Compliance with this financial covenant is tested quarterly.

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At December 31, 2020, there were no CP notes outstanding.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Receivables Funding Facility.

In December 2019, we amended our $ 225.0 million receivables funding facility (the “Receivables Facility”) to extend the maturity to December 2022.

In the fourth quarter of 2017, Equifax entered into the Receivables Facility which had an original maturity in 2019 and was amended in November 2018 to extend the maturity to November 2020.

In the fourth quarter of 2017, Equifax entered a $ 225.0 million receivables funding facility (the “Receivables Facility”) which had an original maturity in 2019 and was amended in December 2019 to extend the maturity to December 2022.

Under the Receivables Facility, Equifax and certain of its U.S.

subsidiaries sell the eligible third-party receivables of its U.S.

based business, to Equifax Receivables Funding LLC, a consolidated, wholly-owned, bankruptcy-remote subsidiary that may subsequently transfer, without recourse, an undivided interest in these accounts receivable to investors.

The investors have no recourse to the Company’s other assets except for customary repurchase, warranty and indemnity claims.

Creditors of Equifax do not have recourse to the assets of Equifax Receivables Funding LLC.

The Receivables Facility contains standard representations, warranties and covenants made by Equifax and its U.S.

subsidiaries sold the eligible third-party receivables of its U.S.

based business, to Equifax Receivables Funding LLC, a consolidated, wholly-owned, bankruptcy-remote subsidiary that subsequently transferred, without recourse, an undivided interest in these accounts receivable to investors.

The investors had no recourse to the Company’s other assets except for customary repurchase, warranty and indemnity claims.

Creditors of Equifax did not have recourse to the assets of Equifax Receivables Funding LLC.

The Receivables Facility contained standard representations, warranties and covenants made by Equifax and its U.S.

subsidiaries in connection with the sale of the receivables, and any repurchase, warranty or indemnity obligations of the U.S.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

There were no borrowings under the Receivables Facility at December 31, 2019.

The Receivables Facility was supported by $ 221.7 million of accounts receivable as collateral at December 31, 2019 which, as a retained interest, is included in accounts receivable, net in our Consolidated Balance Sheets.

The outstanding amount the Company is allowed to maintain under the Receivables Facility, with a maximum of $ 225 million, may fluctuate based on the availability of eligible receivables and is directly affected by business volumes and credit risks, including receivables payment quality measures such as default and dilution ratios.

If default or dilution ratios increase one percent, the allowable outstanding amount under the Receivables Facility would not materially change.

Interest is payable on borrowings under the Receivables Facility at the cost of funds plus a specified margin.

The specified margin and the monthly unused fee, which we pay on the unused portion of the Receivables Facility, are subject to adjustment based on our debt ratings.

The costs of the Receivables Facility are included in interest expense and were not material in 2019 and 2018.

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

In November 2020, we terminated the Receivables Facility.

2.3 % and 3.25 % Senior Notes.

On May 12, 2016, we issued $ 500.0 million principal amount of 2.3 %, five-year senior notes and $ 275.0 million principal amount of 3.25 %, ten-year senior notes in an underwritten public offering.

Interest is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2016.

Interest 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 prior revolving credit facility and a portion of the borrowings under our commercial paper program incurred to finance the acquisition of Veda.

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Litigation, Claims and Government Investigations.

Following the 2017 cybersecurity incident, hundreds of class actions and other lawsuits were filed against us typically alleging harm from the 2017 cybersecurity incident and seeking various remedies, including monetary and injunctive relief.

In fiscal 2017, we experienced a cybersecurity incident following a criminal attack on our systems that involved the theft of certain personally identifiable information of U.S., Canadian and U.K.

Following the 2017 cybersecurity incident, hundreds of class actions and other lawsuits were filed against us typically alleging harm from the incident and seeking various remedies, including monetary and injunctive relief.

We were also subject to investigations and inquiries by federal, state and foreign governmental agencies and officials regarding the 2017 cybersecurity incident and related matters.

As described below, most of these lawsuits and government investigations have concluded or been resolved, including pursuant to the settlement agreements described below, while others remain ongoing.

Most of these lawsuits and government investigations have concluded or been resolved, including pursuant to the settlement agreements described below, while others remain ongoing.

The Company’s participation in these settlements does not constitute an admission by the Company of any fault or liability, and the Company does not admit fault or liability.

We believe it is probable that we will incur losses associated with certain of the proceedings and investigations related to the 2017 cybersecurity incident.

We recorded expenses, net of insurance recoveries, of $800.9 million in other current liabilities and selling, general, and administrative expenses in our Consolidated Balance Sheets and Statements of (Loss) Income, respectively, as of and for the twelve months ended December 31, 2019, exclusive of our legal and professional services expenses.

The amount accrued represents our best estimate of the liability related to these matters.

The Company will continue to evaluate information as it becomes known and adjust accruals for new information and further developments in accordance with ASC 450-20-25.

While it is reasonably possible that losses exceeding the amount accrued may be incurred, it is not possible at this time to estimate the additional possible loss in excess of the amount already accrued that might result from adverse judgments, settlements, penalties or other resolution of the proceedings and investigations described below based on a number of factors, such as the various stages of these proceedings and investigations, including matters on appeal, that alleged damages have not been specified or are uncertain, the uncertainty as to the certification of a class or classes and the size of any certified class, as applicable, and the lack of resolution on significant factual and legal issues.

The ultimate amount paid on these actions, claims and investigations in excess of the amount already accrued could be material to the Company’s consolidated financial condition, results of operations, or cash flows in future periods.

Consumer Settlement.

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Customer Data Security Breach Litigation, MDL No.

2800 (Consumer Cases) (the “U.S.

Consumer MDL Litigation”), and the investigations of the FTC, the CFPB, the MSAG Group and the NYDFS (collectively, the “Consumer Settlement”).

2800 (the “U.S.

Consumer MDL Litigation”), and the investigations of the FTC, the CFPB, the Attorneys General of 48 states, the District of Columbia and Puerto Rico (the "MSAG Group") and the NYDFS (collectively, the “Consumer Settlement”).

Under the terms of the Consumer Settlement, the Company will contribute $380.5 million to a non-reversionary settlement fund (the “Consumer Restitution Fund”) to provide restitution for U.S.

consumers identified by the Company whose personal information was compromised as a result of the 2017 cybersecurity incident.

The Consumer Restitution Fund will be used to (1) compensate affected consumers for certain unreimbursed costs or expenditures incurred by affected consumers that are fairly traceable to the 2017 cybersecurity incident, (2) provide affected consumers with an opportunity to enroll in at least four years of credit monitoring services provided by a third party unaffiliated with the Company or alternative compensation for affected consumers who already have other credit monitoring services, (3) provide affected consumers with additional benefits such as identity restoration services and (4) pay reasonable attorneys’ fees and reasonable costs and expenses for the plaintiffs’ counsel in the U.S.

Consumer MDL Litigation (not to exceed $80.5 million) and administrative and notice costs.

The Company has agreed to contribute up to an additional $125.0 million to the Consumer Restitution Fund to cover unreimbursed costs and expenditures described in (1) above in the event the $380.5 million in the Consumer Restitution Fund is exhausted.

In accordance with the terms of the Consumer Settlement, in the third quarter of 2019, the Company paid $180.5 million to the MSAG Group and the following monetary penalties:

(1) $100.0 million to the CFPB and (2) $10.0 million to the NYDFS.

As part of the Consumer Settlement, the Company also agreed to implement certain business practice commitments related to consumer assistance and its information security program, including conducting third party assessments of its information security program.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In the third quarter of 2019, the agreements with the FTC and CFPB were approved by the U.S.

District Court for the Northern District of Georgia.

The settlement with the MSAG Group, which consists of substantially similar agreements with each of the participating jurisdictions, was approved by courts in the relevant jurisdiction also in the third quarter of 2019.

consumers identified by the Company whose personal information was compromised as a result of the 2017 cybersecurity incident as well as to pay reasonable attorneys’ fees and reasonable costs and expenses for the plaintiffs’ counsel in the U.S.

Consumer MDL Litigation (not to exceed $80.5 million), settlement administration costs and notice costs.

The Company has agreed to contribute up to an additional $125.0 million to the Consumer Restitution Fund to cover certain unreimbursed costs and expenditures incurred by affected U.S.

consumers in the event the $380.5 million in the Consumer Restitution Fund is exhausted.

The Company also agreed to various business practice commitments related to consumer assistance and its information security program, including conducting third party assessments of its information security program.

On January 13, 2020, the Northern District of Georgia, the U.S.

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Consumer MDL Litigation and numerous other federal court actions relating to the 2017 cybersecurity incident (the “MDL Court”), entered an order granting final approval of the settlement in connection with the U.S.

Consumer MDL Litigation, from which several objectors have appealed.

Until the appeals are finally adjudicated or dismissed, we can provide no assurance that the U.S.

Consumer MDL Litigation.

The MDL Court entered an amended order granting final approval of the settlement on March 17, 2020.

Several objectors have appealed the final approval order.

Until the appeals are finally adjudicated or dismissed and the settlement becomes final in accordance with its terms, we can provide no assurance that the U.S.

Consumer MDL Litigation will be resolved as contemplated by the settlement agreement.

If the MDL Court’s order approving the settlement were reversed by an appellate court, there is a risk that we would not be able to settle the U.S.

If the Court’s order approving the settlement agreement was overturned by an appellate court and not cured in accordance with the terms of the consent orders with the FTC and CFPB, the consent orders with the FTC, CFPB and MSAG Group would remain in place and the Consumer Restitution Fund would be administered by the FTC.

In that event, there is a risk that we would not be able to settle the U.S.

Consumer MDL Litigation on acceptable terms or at all, which could have a material adverse effect on our financial condition.

The Company has accrued its best estimate for estimated probable losses it expects to incur with respect to the Consumer Settlement.

Other Settlements.

Securities Class Action Litigation .

A consolidated putative class action lawsuit alleging violations of certain federal securities laws in connection with statements and alleged omissions regarding our cybersecurity systems and controls was filed against us and our former Chairman and Chief Executive Officer in the U.S.

District Court for the Northern District of Georgia.

The consolidated complaint seeks certification of a class of all persons who purchased or otherwise acquired Equifax securities from February 25, 2016 through September 15, 2017 and unspecified monetary damages, costs and attorneys’ fees.

The Company moved to dismiss the complaint in its entirety.

On January 28, 2019, the court dismissed claims against certain individual defendants and claims challenging certain statements, but allowed other claims against Equifax and our former Chairman and Chief Executive Officer to proceed.

On February 12, 2020, we entered into a settlement agreement to resolve the securities class action lawsuit in which the Company agreed to create a settlement fund for the benefit of class members.

The settlement is subject to a number of conditions, including certification of a settlement class, notice, and preliminary and final court approvals.

We can provide no assurance that all conditions will be satisfied or that the necessary court approvals will be obtained.

The Company recorded an accrual for the settlement amount, net of the estimated insurance recovery, in the Consolidated Balance Sheets and Statements of (Loss) Income as of and for the twelve months ended December 31, 2019.

The Company recorded the estimated insurance recovery to the settlement in the Company’s Consolidated Statements of (Loss) Income for the year ended December 31, 2019.

The estimated insurance recovery was recorded as a receivable in the Company’s Consolidated Balance Sheets as of December 31, 2019.

Shareholder Derivative Litigation .

A consolidated putative shareholder derivative action naming certain of our current and former executives, officers and directors as defendants and naming us as a nominal defendant was filed in the U.S.

District Court for the Northern District of Georgia.

Among other things, the consolidated complaint alleges 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 complaint seeks unspecified damages on behalf of the Company, plus certain equitable relief.

We appointed a committee of independent directors (the “Demand Review Committee”) empowered to evaluate and respond in our best interests to the claims and related litigation demands.

On February 12, 2020, the Company, by and through the Demand Review Committee, and individual defendants entered into a settlement agreement with the plaintiffs which, subject to court approval, will resolve the matter by agreeing to adopt certain governance changes and obtaining an insurance recovery for the Company.

We can provide no assurance that the necessary court approvals will be obtained.

We have recorded an accrual for the amount of attorneys’ fees we estimate that we will pay as part of this settlement in the Company’s Consolidated Balance Sheets as of December 31, 2019.

We have recorded a receivable for the amount of the estimated insurance recovery in the Company’s Consolidated Balance Sheets as of December 31, 2019.

Government Lawsuits .

Separate civil enforcement actions were filed against us in state court by the respective Attorneys General of Indiana and Massachusetts alleging violations of commonwealth/state consumer protection laws and seeking injunctive relief, civil penalties, restitution, costs and other relief.

The Company filed motions to dismiss the actions which were denied.

On December 26, 2019, we filed a motion asking the court in the Indiana action to certify its order denying our motion to dismiss for interlocutory appeal, and that motion was granted on February 6, 2019.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company has reached an agreement in principle with each of the Attorneys General of Massachusetts and Indiana to resolve their actions.

These settlements, in which the Company has agreed to make a monetary payment and to injunctive relief consistent with the MSAG Group settlement, are subject to finalizing definitive settlement agreements and court approval in each respective jurisdiction.

The Company has recorded an accrual for the amount it expects to pay in connection with these settlements.

Financial Institutions MDL Class Action .

Certain class actions were filed by financial institutions and transferred to the MDL Court (the “Financial Institutions MDL Litigation”).

These class actions allege that the financial institutions’ businesses have been placed at risk due to the 2017 cybersecurity incident, generally assert common law claims such as claims for negligence, as well as, in some cases, statutory claims and seek compensatory damages, injunctive relief and other related relief.

The Company moved to dismiss the financial institutions’ consolidated class action complaint in its entirety, and the MDL Court dismissed certain claims, while allowing other claims to proceed.

The financial institution plaintiffs filed a motion to amend their class action complaint which was granted in part and denied in part on December 18, 2019.

The majority of the claims which the financial institutions sought to revive by amendment, however, remained dismissed.

The Company has reached an agreement in principle to enter into a class-wide settlement of the remaining financial institutions’ claims.

Upon submission of the final settlement documents and necessary court approvals, the settlement will resolve any remaining claims that could be asserted by the financial institutions before the MDL Court.

The settlement contemplates payment for claims up to a maximum amount and certain non-monetary relief.

The settlement is subject to a number of conditions, including notice, and preliminary and final court approvals.

We can provide no assurance that all conditions will be satisfied or that the necessary court approvals will be obtained.

The Company has recorded an accrual for the amount it expects to pay in connection with this settlement.

Pennsylvania State Court Financial Institution Class Action .

One of the initial named plaintiffs in Financial Institutions MDL Litigation filed a purported class action suit against us in the Court of Common Pleas of Lawrence County, Pennsylvania on behalf of financial institutions headquartered in Pennsylvania.

The claims being asserted in this matter are substantially similar to claims that previously were dismissed in the MDL proceeding for lack of standing.

We filed preliminary objections to the complaint on September 5, 2019, and a hearing on the preliminary objections is scheduled for June 29, 2020.

The Company has reached an agreement in principle to resolve this matter.

The settlement is subject to court approval, and we can provide no assurance that the necessary court approval will be obtained.

The Company has recorded an accrual for the amount it expects to pay in connection with this settlement.

Indian Tribes Class Actions and City of Chicago Lawsuit .

Three Indian Tribes and the City of Chicago filed separate suits with respect to the 2017 cybersecurity incident, which were subsequently transferred to the MDL Court.

The Indian Tribes brought their claims purportedly on behalf of themselves and other similarly situated federally recognized Indian Tribes and Nations.

The Company has reached an agreement in principle to resolve the three Indian Tribes’ claims as well as an agreement in principle to resolve the City of Chicago’s lawsuit.

The Company has recorded an accrual for the amount it expects to pay in connection with these settlements.

On May 15, 2020, the Company entered into a settlement agreement to resolve the consolidated financial institutions class action cases pending before the MDL Court (the “Financial Institutions MDL Litigation”).

Under the settlement, the Company agreed to pay for valid claims submitted by class members up to a maximum amount, reasonable settlement administration and notice costs, and reasonable attorneys’ fees and expenses.

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

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

Other Matters .

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Set forth below are descriptions of the main categories of these matters.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Georgia State Court Consumer Class Actions .

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On July 27, 2018, the Fulton County Business Court granted the Company’s motion to stay the remaining single case, and on August 17, 2018, the Fulton County Business Court granted the Company’s motion to stay the consolidated case.

These cases remain stayed pending resolution of the U.S.

These cases remain stayed pending final resolution of the U.S.

Consumer MDL Litigation.

Canadian Class Actions .

Eight Canadian class actions, six of which are on behalf of a national class of approximately 19,000 Canadian consumers, have been 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 case 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

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 court’s order staying the Saskatchewan case is on appeal.

Individual Consumer Litigation .

We have several hundred individual consumer actions pending against us in state (general jurisdiction and small claims) and federal courts 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.

Where possible, actions filed in or removed to federal court were noticed for transfer to the MDL Court.

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 the approximately 19,000 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.

We have cooperated with federal, state and foreign governmental agencies and officials investigating or otherwise seeking information, testimony and/or documents, regarding the 2017 cybersecurity incident and related matters.

The FCA opened an enforcement investigation against our U.K.

Except as described below, these investigations have been resolved as discussed in prior filings or there has been no further activity.

The U.K.’s Financial Conduct Authority (“FCA”) opened an enforcement investigation against our U.K.

subsidiary, Equifax Limited, in October 2017.

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We continue to respond to the information requirements and are cooperating with the investigation.

The New York State Attorney General Investor Protection Bureau (“IPB”) issued a subpoena in September 2017 relating to its investigation of whether there has been a violation of the Martin Act.

We have cooperated with the IPB in its investigation, and the IPB has not contacted us regarding the investigation since January 2019.

Although we continue to cooperate in the above investigations and inquiries, an adverse outcome to any such investigations and inquiries could subject us to fines or other obligations, which may have an adverse effect on how we operate our business or our results of operations.

Data Processing, Outsourcing Services and Other Agreements

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During 2020, 2019 and 2018, we paid approximately $ 50 million, $ 52 million and $ 49 million, respectively, for these services.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Under our agreement with Google, we have outsourced certain areas of our network and security infrastructure.

The estimated future minimum contractual obligation under the agreement is approximately $ 120 million for the remaining term, with no individual year’s minimum expected to exceed approximately $ 44 million.

We may terminate certain portions of this agreement without penalty in the event that Google is in material breach of the terms of the agreement.

We may terminate certain portions of this

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

agreement without penalty in the event that Google is in material breach of the terms of the agreement.

During 2020, 2019 and 2018, we paid approximately $ 29 million, $ 14 million and $ 7 million, respectively, for these services.

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Begor’s agreement provide for, among other things, certain payments and benefits in the event of a qualifying termination of employment (i.e., termination of employment by the executive for “good reason” or termination of employment by the Company without “cause,” each as defined in the applicable document) following a change in control of the Company.

In the event of a qualifying termination, the executive will become entitled to continuation of certain employee benefits for two or three years, depending on the eligibility, as well as a lump sum severance payment, all of which differs by executive.

In the event of a qualifying termination, the executive will become entitled to continuation of certain employee benefits for two years, as well as a lump sum severance payment, all of which differs by executive.

Change in control events potentially triggering benefits under the CIC Plan and Mr.

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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 performance bonds, surety bonds, and standby letters of credit is no t material at December 31, 2019 and generally have a remaining maturity of one year or less.

The aggregate notional amount of all performance bonds, surety bonds, and standby letters of credit is not material at December 31, 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 is no t material at December 31, 2019.

The maximum potential future payments we could be required to make under the guarantees is not material at December 31, 2020.

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

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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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 be subject to payments to non-U.S.

In certain of

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

these credit agreements, we also bear the risk of certain changes in tax laws that would be subject to payments to non-U.S.

lenders to withholding taxes.

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We accrue for unpaid legal fees for services performed to date.

The (benefit) provision for income taxes consisted of the following:

The provision from (benefit for) income taxes consisted of the following:

Twelve Months Ended December 31,

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66.5 ( 82.7 ) 1.5

(Benefit) Provision for income taxes $ ( 40.2 ) $ 50.0 $ 148.6

Provision from (benefit for) income taxes $ 159.0 $ ( 35.7 ) $ 53.4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Domestic and foreign (loss) income before income taxes was as follows:

Domestic and foreign income (loss) before income taxes was as follows:

Twelve Months Ended December 31,

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$ 685.2 $ ( 413.8 ) $ 370.4

The (benefit) provision for income taxes reconciles with the U.S.

The provision from (benefit for) income taxes reconciles with the U.S.

federal statutory rate, as follows:

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Foreign 5.5 ( 2.7 ) —

Tax Cuts and Jobs Act of 2017 — — ( 48.3 )

Federal research & development credit ( 15.9 ) ( 14.9 ) ( 13.0 )

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Tax reserves 1.4 1.2 2.4

Equifax Australia settlement — ( 14.1 ) —

Australia settlement — — ( 14.1 )

Legal settlement 0.1 69.1 —

Excess officer’s compensation 5.8 5.1 2.7

Valuation Allowance 7.8 — —

Other ( 1.4 ) 2.7 ( 6.1 )

(Benefit) Provision for income taxes $ ( 40.2 ) $ 50.0 $ 148.6

Provision from (benefit for) income taxes $ 159.0 $ ( 35.7 ) $ 53.4

Effective income tax rate 23.2 % 8.6 % 14.4 %

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Prepaid expenses ( 11.6 ) ( 8.1 )

Investment basis difference ( 41.5 ) ( 1.2 )

Other ( 2.3 ) ( 2.1 )

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We record deferred income taxes on the temporary differences of our foreign subsidiaries and branches, except for the temporary differences related to undistributed earnings of subsidiaries which we consider indefinitely invested.

As of December 31, 2019, we have indefinitely invested $ 262.2 million attributable to undistributed earnings of our Canadian, Chilean and Peruvian subsidiaries.

As of December 31, 2020, we have indefinitely invested $ 247.8 million attributable to undistributed earnings of our Canadian and Chilean subsidiaries.

If these earnings were not considered indefinitely invested, we estimate that $ 23.3 million of deferred withholding tax liability would have been provided.

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credits expire between 2021 through 2029 and the foreign credits have an indefinite expiration period.

We have federal and state §163(j) interest limitation carryovers of $ 23.1 million and $ 216.2 million, respectively, which have an indefinite expiration period.

We have state §163(j) interest limitation carryovers of $ 355.1 million which have an indefinite expiration period.

The tax effected amount of the state §163(j) interest limitation carryovers is $ 3.3 million.

The deferred tax asset related to the net operating loss, capital loss carryforwards, foreign tax credit carryforwards, §163(j) carryforwards, and research and development credit is $ 339.8 million of which $ 250.3 million has been fully reserved in the deferred tax valuation allowance.

Cash paid for income taxes, net of amounts refunded, was $ 62.0 million, $( 2.5 ) million and $ 59.6 million during the twelve months ended December 31, 2020, 2019 and 2018, respectively.

We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes on our Consolidated Statements of (Loss) Income.

We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes on our Consolidated Statements of Income (Loss).

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

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As of December 31, 2020 and 2019, the total amount of unrecognized benefits that, if recognized, would have affected the effective tax rate was $ 26.2 million and $ 23.8 million, respectively, which included interest and penalties of $ 2.8 million and $ 2.6 million, respectively.

During 2019 and 2018, interest and penalties of $ 1.0 million and $ 0.9 million, respectively, were accrued.

During 2020 and 2019, interest and penalties of $ 1.0 million were accrued in each period.

As of December 31, 2020 and 2019, the gross amount of unrecognized tax benefits was $ 41.5 million and $ 27.5 million, respectively.

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For provisional amounts recorded during 2018, adjustments were made in the fourth quarter of 2018 as a result of notices and regulations issued and proposed by the U.S.

Department of the Treasury and the Internal Revenue Service (“Proposed Regulations”) that were issued in the quarter for the §163(j) interest limitation provisions and the foreign tax credits provisions.

Department of the Treasury and the Internal Revenue Service (“Proposed Regulations”) that were issued in the quarter for the Section 163(j) interest limitation provisions and the foreign tax credits provisions

One-Time Transition Tax

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Deferred Tax Assets and Liabilities

As of December 31, 2017, we re-measured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future (which was generally 21%), by recording a provisional amount of $ 85.1 million.

As of December 31, 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future (which was generally 21%), by recording a provisional amount of $ 85.1 million.

Further analysis of certain aspects of the Tax Act and refinement of our calculations during the twelve months ending December 31, 2018 resulted in no material adjustments to our provisional amounts.

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We expect to issue common shares held as either treasury stock or new issue shares upon the exercise of stock options or once shares vest pursuant to restricted stock units or performance share awards.

Total stock-based compensation expense in our Consolidated Statements of (Loss) Income during the twelve months ended December 31, 2019, 2018 and 2017, was as follows:

Total stock-based compensation expense in our Consolidated Statements of Income (Loss) during the twelve months ended December 31, 2020, 2019 and 2018, was as follows:

Twelve Months Ended December 31,

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The binomial model incorporates assumptions regarding anticipated employee exercise behavior, expected stock price volatility, dividend yield and risk-free interest rate.

Anticipated employee exercise behavior and expected post-vesting cancellations over the contractual term used in the binomial model were primarily based on historical exercise patterns.

These historical exercise patterns indicated there was

Anticipated employee exercise behavior and expected post-vesting cancellations over the contractual term used in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

not significantly different exercise behavior between employee groups.

the binomial model were primarily based on historical exercise patterns.

These historical exercise patterns indicated there was not significantly different exercise behavior between employee groups.

For our expected stock price volatility assumption, we weighted historical volatility and implied volatility.

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At December 31, 2020, our total unrecognized compensation cost related to stock options was $ 7.1 million with a weighted-average recognition period of 1.3 years.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes changes in outstanding options and the related weighted-average exercise price per share for the twelve months ended December 31, 2019 and 2018:

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Exercisable at end of year 643 $ 104.95 631 $ 80.81

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other Stock Awards.

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Compensation expense for shares earned based on the Company’s three-year cumulative adjusted earnings per share is recognized on a straight-line basis over the measurement period based on the grant date fair value of our common stock and the number of awards expected to vest at each reporting date.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes changes in these other stock awards during the twelve months ended December 31, 2020, 2019 and 2018 and the related weighted-average grant date fair value:

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At December 31, 2020, our total unrecognized compensation cost related to these nonvested stock awards was $ 39.9 million with a weighted-average recognition period of 1.6 years.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Employee Stock Purchase Plan.

Effective July 1, 2020, the Equifax board approved the 2020 Employee Stock Purchase Plan (“ESPP”).

Under the ESPP, participating employees will have the option to withhold 1 % - 10 % of their annual salary, up to $ 25,000 annually, to purchase Equifax stock at a 5 % discount based on the closing stock price of the final day of the offering period.

The ESPP is noncompensatory in nature, and is treated as any other sale of the Company's equity instruments.

BENEFIT PLANS

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The measurement date for our defined benefit pension plans and other postretirement benefit plans is December 31 of each year.

In the fourth quarter of 2020, we voluntarily changed our accounting principle for recognizing actuarial gains and losses and expected returns on plan assets for our defined benefit pension and postretirement benefit plans.

See Note 1 for amounts recognized related to this change.

The information within this Note has been revised to reflect the change in accounting principle for current and prior periods.

Pension Benefits.

Pension benefits are provided through U.S.

and Canadian defined benefit pension plans and two supplemental executive defined benefit pension plans.

and Canadian defined benefit pension plans and three supplemental executive defined benefit pension plans.

and Canadian Retirement Plans.

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the defined benefit component was also closed to new hires on October 1, 2011.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Effective December 31, 2014, the USRIP plan was frozen for all participants eligible to accrue benefits.

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Under the plan amendment, the service credit for Non-Grandfathered participants froze, but these participants will continue to receive credit for salary increases and vesting service.

Additionally, Non-Grandfathered employees and certain other employees not eligible to participate in the CRIP (i.e., new hires on or after October 1, 2011) are eligible to participate in the enhanced defined contribution component of the CRIP.

In 2019, the Compensation Committee of the Board of Directors approved the termination of the plan.

The CRIP will be frozen effective December 31, 2020 at which date all active members accruing defined benefits shall cease such accruals.

The CRIP was frozen effective December 31, 2020 at which date we ceased accruing benefits for all active members.

The obligation is expected to be settled in 2022 with lump sum distributions and an annuity purchase.

During the twelve months ended December 31, 2020, we made no voluntary contributions to the USRIP or the CRIP.

During the twelve months ended December 31, 2019, we made no voluntary contributions to the USRIP and made contributions of $ 0.2 million to the CRIP.

During the twelve months ended December 31, 2018, we made voluntary contributions of $ 30.0 million to the USRIP and made contributions of $ 0.4 million to the CRIP.

At December 31, 2020, the USRIP met or exceeded ERISA’s minimum funding requirements.

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Supplemental Retirement Plans.

We maintain two supplemental executive retirement programs for certain key employees.

We maintain three supplemental executive retirement programs for certain key employees.

The plans, which are unfunded, provide supplemental retirement payments, based on salary and years of service.

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The accumulated benefit obligation for the USRIP, CRIP and Supplemental Retirement Plans was $ 712.4 million at December 31, 2019.

At December 31, 2020, the USRIP had projected benefit obligations and accumulated benefit obligations in excess of the plan's respective assets.

The fair value of plan assets for this plan were $ 585.3 million and the projected benefit obligation and accumulated benefit obligation were $ 588.4 million at December 31, 2020.

At December 31, 2020, the Supplemental Retirement Plans had projected benefit obligations and accumulated benefit obligations in excess of those plans’ respective assets.

The projected benefit obligation and accumulated benefit obligation for these plans in the aggregate were $ 115.6 million and $ 115.0 million, respectively, and these plans did not have any plan assets at December 31, 2020.

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the CRIP were $ 58.7 million, $ 51.2 million and $ 49.3 million, respectively, at December 31, 2019.

The fair value of plan assets for the CRIP was $ 53.1 million and the projected benefit obligation and accumulated benefit obligation for the CRIP was $ 62.4 million at December 31, 2020.

At December 31, 2019, the USRIP had plan assets in excess of the projected benefit obligations and accumulated benefit obligations.

The fair value of plan assets for this plan were $ 554.0 million and the projected benefit obligation and accumulated benefit obligation were $ 552.9 million at December 31, 2019.

At December 31, 2018, the USRIP and Supplemental Retirement Plans had projected benefit obligations and accumulated benefit obligations in excess of those plans’ respective assets.

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for these plans in the aggregate were $ 615.7 million, $ 615.6 million and $ 488.8 million, respectively, at December 31, 2018.

At December 31, 2019, the Supplemental Retirement Plans had projected benefit obligations and accumulated benefit obligations in excess of those plans’ respective assets.

The projected benefit obligation and accumulated benefit obligation for these plans in the aggregate were $ 108.4 million and $ 108.3 million, respectively, and these plans did not have any plan assets at December 31, 2019.

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the CRIP were $ 58.7 million, $ 51.2 million and $ 49.3 million, respectively, at December 31, 2019.

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Net amount recognized $ ( 128.1 ) $ ( 116.8 ) $ ( 4.9 ) $ ( 3.3 )

Included in accumulated other comprehensive loss at December 31, 2019 and 2018, were the following amounts that have not yet been recognized in net periodic pension cost:

Pension Benefits Other Benefits

2019 2018 2019 2018

(In millions)

Prior service cost, net of accumulated taxes of $0.1 and $1.9 in 2019 and 2018, respectively, for pension benefits and $0.0 million and $(0.3) in 2019 and 2018, respectively, for other benefits $ 0.5 $ 5.9 $ ( 0.2 ) $ ( 0.9 )

Net actuarial loss, net of accumulated taxes of $87.7 and $88.7 in 2019 and 2018, respectively, for pension benefits and $0.6 and $2.8 in 2019 and 2018, respectively, for other benefits 273.1 283.4 4.7 8.7

Accumulated other comprehensive loss $ 273.6 $ 289.3 $ 4.5 $ 7.8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following shows amounts recognized in other comprehensive income (loss) during the twelve months ended December 31, 2019 and 2018:

Changes in plan assets and benefit obligations recognized in other comprehensive income:

Pension Benefits Other Benefits

2019 2018 2019 2018

(In millions)

Amounts arising during the period:

Net actuarial loss (gain), net of taxes of $1.7 in 2019 and $2.6 in 2018, respectively, for pension benefits and $(1.8) in 2019 and $0.0 in 2018, respectively, for other benefits $ 1.4 $ 6.6 $ ( 3.2 ) $ ( 1.5 )

Foreign currency exchange rate gain, net of taxes of $0.1 in 2019 and $(0.1) in 2018, respectively, for pension benefits and $0.0 in 2019 and $0.0 in 2018, respectively, for other benefits 0.2 ( 0.2 ) 0.1 0.3

Prior service cost, net of taxes of $(0.7) in 2019 and $0.0 in 2018, respectively, for pension benefits and $0.0 in 2019 and $0.0 in 2018, respectively for other benefits ( 5.2 ) — — —

Amounts recognized in net periodic benefit cost during the period:

Recognized actuarial loss, net of taxes of $(3.7) and $(4.8) in 2019 and 2018, respectively, for pension benefits and $(0.3) in 2019 and 2018, respectively, for other benefits ( 11.5 ) ( 14.9 ) ( 1.0 ) ( 1.1 )

Amortization of prior service cost, net of taxes of $(0.1) in 2019 and 2018, for pension benefits and $0.2 in 2019 and $0.2 in 2018 for other benefits ( 0.4 ) ( 0.4 ) 0.8 0.8

Curtailments, net of taxes of $(0.1) in 2019 for pension benefits ( 0.2 ) — — —

Total recognized in other comprehensive income $ ( 15.7 ) $ ( 8.9 ) $ ( 3.3 ) $ ( 1.5 )

At December 31, 2020 and 2019 amounts included in accumulated other comprehensive loss related to pension benefit plans which consisted of prior service cost of $ 2.0 million and $ 0.9 million, net of accumulated taxes of $ 0.5 million and $ 0.2 million, respectively.

For the twelve months ended December 31, 2020 and 2019, we recognized a $ 32.2 million loss and $ 4.8 million gain, respectively, through net periodic benefit cost related to the annual mark-to-market remeasurement of our pension and postretirement plans.

For the twelve months ended December 31, 2020 and 2019, amounts recognized through net periodic benefit cost related to prior service cost, curtailments and settlements were not material.

Components of Net Periodic Benefit Cost

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Amortization of prior service cost ( 1.7 ) 0.5 0.5 ( 0.2 ) ( 1.0 ) ( 1.0 )

Recognized actuarial loss (gain) 15.2 19.7 15.5 1.3 1.4 1.3

Recognized actuarial loss (gain) - mark to market 30.4 0.2 7.7 1.8 ( 5.0 ) 0.4

Total net periodic benefit cost (income) $ 16.2 $ ( 2.5 ) $ ( 0.4 ) $ 1.4 $ ( 5.7 ) $ ( 0.6 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following represents the amount of prior service cost and actuarial loss included in accumulated other comprehensive loss that is expected to be recognized in net periodic benefit cost during the twelve months ending December 31, 2020:

Pension Benefits Other Benefits

(In millions)

Actuarial loss, net of taxes of $4.8 for pension benefits and $0.2 for other benefits $ 14.8 $ 0.5

Prior service cost, net of taxes of $(0.1) for pension benefits and $(0.1) for other benefits $ ( 0.1 ) $ ( 0.1 )

Weighted-Average Assumptions

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Rate of compensation increase 4.37 % 4.93 % 4.88 % N/A N/A N/A

During 2020, we adopted the new MP-2020 mortality improvement scale in determining liability for the U.S.

The updated projection scale contributed to a slight decrease in the projected benefit obligation, partially offsetting the decrease in the discount rates in 2020, the net of which resulted in the increase of the projected benefit obligation as of December 31, 2020.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During 2019, we adopted the new Pri-2012 mortality tables and MP-2019 mortality improvement projection scale in determining the liability for the U.S.

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This updated scale, along with the change in the discount rates, contributed to a decrease in the projected benefit obligation as of December 31, 2018.

During 2017, we adopted the new MP-2017 mortality improvement projection scale in determining the liability for the U.S.

This updated scale partially offset the decrease in the discount rates in 2017, the net of which resulted in the increase in the projected benefit obligation as of December 31, 2017.

Discount Rates.

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The yield curve provides discount rates related to a dedicated high-quality bond portfolio whose cash flows extend beyond the current period, from which we choose a rate matched to the expected benefit payments required for each plan.

Expected Return on Plan Assets.

The expected rate of return on plan assets is based on both our historical returns and forecasted future investment returns by asset class, as provided by our external investment advisor.

In 2019, our U.S.

pension plan investment earned 21.4 %, which was above the expected return of 6.7 %.

The expected return for the USRIP for 2020 is 6.5 % following asset allocation changes that resulted in higher allocation to fixed income securities.

The CRIP investment earned 12.7 % in 2019 versus the expected return of 6.0 %.

The expected return for the CRIP for 2020 is 6.0 %.

The calculation of the net periodic benefit cost for the USRIP and CRIP utilizes a market-related value of assets.

The market-related value of assets recognizes the difference between actual returns and expected returns over five years at a rate of 20 % per year.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Expected and Actual Return on Plan Assets.

As stated in Note 1, in the fourth quarter of 2020 we voluntarily changed our method of accounting for recognizing actuarial gains and losses and expected return on plan assets for our defined benefit pension and other postretirement benefit plans.

Under the new accounting principle the expected returns on plan assets are used to estimate pension expense throughout the year and remeasurement of the projected benefit obligation and plan assets are immediately recognized in earnings through net periodic benefit cost within Other Income (Expense) on the Consolidated Statements of Income (Loss), with pension and postretirement plans to be remeasured annually in the fourth quarter.

Prior to 2020, actuarial gains and losses and the differences between the expected and actual return on plan assets were recognized as a component of Accumulated Other Comprehensive Loss, and were subject to amortization into earnings over time.

Healthcare Costs.

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Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plan.

A one-percentage point change in assumed healthcare cost trend rates at December 31, 2019 would have had the following effects:

1-Percentage Point Increase 1-Percentage Point Decrease

(In millions)

Effect on total service and interest cost components $ 0.1 $ ( 0.1 )

Effect on accumulated postretirement benefit obligation $ 1.1 $ ( 1.0 )

We estimate that the future benefits payable for our retirement and postretirement plans are as follows at December 31, 2020:

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Next five fiscal years to December 31, 2030 $ 195.8 $ — $ 7.1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value of Plan Assets.

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(In millions)

Large-Cap Equity (1)

$ 38.5 $ 38.5 $ — $ —

Small- and Mid-Cap Equity (1)

22.7 22.7 — —

International Equity (2)

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Private Equity (3)

12.9 — — 12.9

Hedge Funds (4)

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16.3 — — 16.3

26.3 26.3 — —

Total $ 638.4 $ 64.8 $ 532.2 $ 41.4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements at Reporting Date Using:

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(In millions)

Large-Cap Equity (1)

$ 63.7 $ 63.7 $ — $ —

Small- and Mid-Cap Equity (1)

18.3 18.3 — —

International Equity (2)

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(In millions)

Large-Cap Equity (1)

$ 1.1 $ 1.1 $ — $ —

Small- and Mid-Cap Equity (1)

International Equity (2)

Fixed Income (2)

12.2 — 12.2 —

Private Equity (3)

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(In millions)

Large-Cap Equity (1)

$ 1.7 $ 1.7 $ — $ —

Small- and Mid-Cap Equity (1)

International Equity (2)

1.9 0.3 1.6 —

Fixed Income (2)

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The asset allocation and ranges are approved by our in-house Investment Committee and Plan Administrators, who are Named Fiduciaries under ERISA.

The Investment Committee made the decision in the fourth quarter of 2018, following the completion of an Asset Liability Management study by a third party, to reduce risk in the portfolio by (1) reducing the overall exposure to equities and (2) increasing exposure to fixed income assets that better track the movement in liability.

These actions are designed to better

In an effort to meet asset allocation and funded status objectives of the Plan, assets are categorized as Liability-Hedging Assets and Return-Seeking Assets.

During 2020, the Investment Committee made the decision to reduce exposure to Return-Seeking Assets due to the plan's high funded status.

As of December 31, 2020, the approved allocation ranges are set forth in the table below, with an 80 % targeted allocation to Liability-Hedging Assets and a 20 % targeted allocation to Return-Seeking Assets.

Liability-Hedging Assets represent investments which are meant to provide a hedge relative to the Plan’s

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

protect the funded status of the plan and reduce future funded status volatility.

The Investment Committee may elect to make further changes to the asset allocation strategy as the funded status of the Plan improves.

In an effort to meet asset allocation and funded status objectives of the Plan, assets are categorized as Return-Seeking Assets and Liability-Hedging Assets.

As of December 31, 2019, the approved allocation ranges were 35% to 65% for each asset category, with a 50/50 targeted allocation.

liabilities and consist primarily of fixed income securities.

Return-Seeking Assets include any asset class not intended to hedge the Plan’s liabilities.

At December 31, 2020, these assets included domestic and international equities, private equity (including secondary private equity), real assets, and hedge funds.

Alternative assets have become a smaller part of the asset allocation strategy, as the Plan seeks to maintain a high degree of liquidity.

Liability-Hedging Assets represent investments which are meant to provide a hedge relative to the Plan’s liabilities and consist primarily of fixed income securities.

Additionally, the Plan allows certain of their managers, subject to specific risk constraints, to utilize derivative instruments in order to enhance asset return, reduce volatility or both.

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USRIP 2020 2019 2020 2019

Large-Cap Equity 5% - 20% 5% - 20% 7.4 % 13.2 %

Small- and Mid-Cap Equity 0% - 15% 0% - 15% 4.1 % 3.7 %

Equity 0 % - 20 %

International Equity 0 % - 10 %

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Fixed Income 65 % - 100 %

76.7 % 61.8 %

Cash 0 % - 15 %

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Additionally, this strategy will diversify the plan assets to minimize nonsystemic risk and provide reasonable assurance that no single security or class of security will have a disproportionate impact on the Plan.

Due to the high funded status of the Plan, the Investment Committee of the CRIP has adopted a conservative asset allocation, and in 2019 slightly modified it to allow for the use of the Alternative Credit Strategies to improve overall diversification and reduce exposure to equity markets.

Due to the high funded status of the Plan, the Investment Committee of the CRIP has adopted a conservative asset allocation and in 2020 further continued to de-risk the Plan by reducing equity exposure.

The Investment Committee maintains an investment policy for the CRIP, which imposes certain limitations and restrictions regarding allowable types of investments.

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The following specifies the asset allocation ranges and actual allocation as of December 31, 2020 and 2019:

CRIP Range 2019 2018

CRIP 2020 2019 2020 2019

Public Equities 0 % - 40 %

16.3 % 49.1 %

Fixed Income 60 % - 100 %

75.8 % 50.7 %

Money Market 0 % - 10 %

Alternative Credit 0 % - 10 %

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Equifax Retirement Savings Plans.

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For the years ended December 31, 2020, 2019 and 2018, our contributions related to these plans were $ 13.4 million, $ 13.9 million, and $ 14.1 million, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Deferred Compensation Plans.

We maintain deferred compensation plans that allow for certain management employees and the Board of Directors to defer the receipt of compensation (such as salary, incentive compensation, commissions or shares payable under vested restricted stock units) until a later date based on the terms of the plans.

We maintain deferred compensation plans that allow for certain management employees and the Board of Directors to defer the receipt of compensation (such as salary, incentive compensation or shares payable under vested restricted stock units) until a later date based on the terms of the plans.

The Company also makes contributions to the accounts of certain executives who are not eligible to participate in either of the Supplemental Retirement Plans.

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The assets in these plan trusts which are recorded on our Consolidated Balance Sheets are subject to creditor’s claims in case of insolvency of Equifax Inc.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in accumulated other comprehensive income (loss) by component, after tax, for the twelve months ended December 31, 2019, are as follows:

ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the twelve months ended December 31, 2020, are as follows:

currency Pension and other postretirement benefit plans Cash flow hedging transactions Total

(In millions)

Balance, December 31, 2018 $ ( 328.0 ) $ ( 297.1 ) $ ( 1.2 ) $ ( 626.3 )

Other comprehensive income (loss) before reclassifications ( 24.4 ) 6.9 0.1 ( 17.4 )

Amounts reclassified from accumulated other comprehensive income (loss) — 12.1 — 12.1

Balance, December 31, 2019 (revised) $ ( 352.4 ) $ ( 0.9 ) $ ( 1.1 ) $ ( 354.4 )

Other comprehensive income before reclassifications 184.0 — 0.1 184.1

Amounts reclassified from accumulated other comprehensive loss — ( 1.1 ) — ( 1.1 )

Balance, December 31, 2020 $ ( 168.4 ) $ ( 2.0 ) $ ( 1.0 ) $ ( 171.4 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Reclassifications out of accumulated other comprehensive income(loss) for the twelve months ended December 31, 2019, are as follows:

Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income(loss) Affected line item in the statement where net income is presented

(In millions)

Amortization of pension and other postretirement plan items:

Prior service cost $ ( 0.5 ) (1)

Recognized actuarial loss 16.5 (1)

16.0 Total before tax

( 3.9 ) Tax benefit

$ 12.1 Net of tax

(1) These accumulated other comprehensive income(loss) components are included in the computation of net periodic pension cost (See Note 9 Benefit Plans for additional details).

Changes in accumulated other comprehensive income(loss) related to noncontrolling interests were not material as of December 31, 2019.

Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of December 31, 2020.

RESTRUCTURING CHARGES

In the first quarter of 2019 and the fourth quarter of 2018, we recorded $ 11.5 million ($ 8.8 million, net of tax) and $ 46.1 million ($ 35.0 million, net of tax) of restructuring charges, respectively, all of which were recorded in selling, general and administrative expenses on our Consolidated Statements of (Loss) Income.

In the fourth quarter of 2020, first quarter of 2019 and fourth quarter of 2018, we recorded $ 31.9 million ($ 24.3 million, net of tax), $ 11.5 million ($ 8.8 million, net of tax) and $ 46.1 million ($ 35.0 million, net of tax) of restructuring charges, respectively, all of which were recorded in selling, general and administrative expenses on our Consolidated Statements of Income (Loss).

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.

The 2020, 2019 and 2018 restructuring charges primarily relate to a reduction in headcount.

We paid $ 10.0 million and $ 26.0 million of the 2019 and 2018 restructuring charges, respectively, during the twelve months ending December 31, 2019.

Additionally, we paid $ 11.5 million of the 2018 restructuring charge in the twelve months ending December 31, 2018.

We consider the payments for both charges to be substantially completed as of December 31, 2019.

On January 1, 2019, we adopted ASU 2016-02 using the optional transition method resulting in a cumulative-effect adjustment to our Consolidated Balance Sheets.

Comparative financial statements of prior periods have not been adjusted to apply the new method retrospectively.

The new method of accounting was applied only to leases that have ongoing minimum lease commitments after January 1, 2019, excluding short-term leases.

The effect of the adoption on key financial statement line items for the twelve months ended December 31, 2019 is as follows:

December 31, 2019 Change

Balance Sheet Prior to ASU 2016-02 adoption As reported under ASU 2016-02 $ %

(In millions)

Prepaid expenses $ 90.0 $ 88.1 $ ( 1.9 ) ( 2 ) %

Other assets, net $ 201.7 $ 304.2 $ 102.5 51 %

Total assets $ 7,808.4 $ 7,909.0 $ 100.6 1 %

Other current liabilities $ 763.7 $ 784.1 $ 20.4 3 %

Other long-term liabilities $ 100.4 $ 180.6 $ 80.2 80 %

Total liabilities $ 5,185.5 $ 5,286.1 $ 100.6 2 %

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2020, payments made related to the 2020 restructuring charge were $ 4.1 million, and we consider the payments for the 2019 and 2018 charges to be substantially completed.

We determine if an arrangement is a lease at inception.

Operating lease right-of-use (“ROU”) assets and liabilities are included in other assets, net and other current and long-term liabilities, respectively, in our Consolidated Balance Sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Operating lease ROU assets and lease liabilities are recognized based on the present value of the future fixed lease payments over the lease term at the commencement date.

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Lease expense for operating leases was $ 39.3 million, $ 40.8 million and $ 41.3 million for the twelve months ended December 31, 2020, 2019 and 2018, respectively.

Our leases have remaining lease terms of one year to fourteen years, some of which may include options to extend the lease term up to five years, and some of which may include options to terminate leases within one year.

Our leases have remaining lease terms of one year to thirteen years, some of which may include options to extend the lease term up to five years and some of which may include options to terminate leases within one year.

We have elected to not record operating lease ROU assets and liabilities for short-term leases that have a term of twelve months or less.

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Twelve Months Ended

Operating (loss) income:

Operating income (loss):

2020 2019 2018

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General Corporate Expense ( 591.7 ) ( 1,293.0 ) ( 503.6 )

Total operating (loss) income $ ( 335.4 ) $ 448.0 $ 831.7

Total operating income (loss) $ 676.6 $ ( 335.4 ) $ 448.0

Total assets:

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QUARTERLY FINANCIAL DATA (UNAUDITED)

The following selected quarterly operating results for each quarter of fiscal 2020 and 2019 have been revised to reflect the change in accounting principle as described in Note 1.

Quarterly financial data for 2020 and 2019 was as follows:

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Operating revenue $ 957.9 $ 982.8 $ 1,068.3 $ 1,118.5

Operating income $ 135.9 $ 166.8 $ 204.4 $ 169.5

Consolidated net income $ 118.8 $ 100.4 $ 229.3 $ 77.7

Net income attributable to Equifax $ 116.9 $ 100.2 $ 228.5 $ 74.5

Basic earnings per share*

Net income attributable to Equifax $ 0.96 $ 0.83 $ 1.88 $ 0.61

Diluted earnings per share*

Net income attributable to Equifax $ 0.95 $ 0.82 $ 1.86 $ 0.61

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended

2019 March 31, June 30, September 30, December 31,

(In millions, except per share data)

Operating revenue $ 846.1 $ 880.0 $ 875.7 $ 905.8

Operating (loss) income $ ( 617.9 ) $ 113.8 $ 121.6 $ 47.0

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Net (loss) income attributable to Equifax $ ( 4.55 ) $ 0.57 $ 0.69 $ 0.13

* The sum of the quarterly EPS does not equal the annual EPS due to changes in the weighted-average shares between periods.

Other amounts may not equal the annual total due to rounding between periods.

The comparability of our quarterly financial results during 2020 and 2019 was impacted by certain events, as follows:

• For the year ended December 31, 2019, the Company recorded $ 800.9 million of losses, net of insurance recoveries, associated with certain legal proceedings and government investigations related to the 2017 cybersecurity incident, exclusive of our legal professional services expenses.

Below reflects the quarterly impact of the change in accounting principle on the quarterly financial data presented:

Three Months Ended December 31, 2020

(In millions, except per share data)

Consolidated net income, as computed under previous method $ 97.7

Impact of pension accounting change ( 20.0 )

Consolidated net income, as reported under new method $ 77.7

Net income attributable to Equifax, as computed under previous method $ 94.5

Impact of pension accounting change ( 20.0 )

Net income attributable to Equifax, as reported under new method $ 74.5

Basic earnings per share*

Net income attributable to Equifax, as computed under previous method $ 0.77

Impact of pension accounting change ( 0.16 )

Net income attributable to Equifax, as reported under new method $ 0.61

Diluted earnings per share*

Net income attributable to Equifax, as computed under previous method $ 0.77

Impact of pension accounting change ( 0.16 )

Net income attributable to Equifax, as reported under new method $ 0.61

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended

2020 March 31, June 30, September 30,

(In millions, except per share data)

Consolidated net income, previously reported $ 114.5 $ 96.1 $ 225.0

Impact of pension accounting change 4.3 4.3 4.3

Consolidated net income, revised $ 118.8 $ 100.4 $ 229.3

Net income attributable to Equifax, previously reported $ 112.6 $ 95.9 $ 224.2

Impact of pension accounting change 4.3 4.3 4.3

Net income attributable to Equifax, revised $ 116.9 $ 100.2 $ 228.5

Basic earnings per share*

Net income attributable to Equifax, previously reported $ 0.93 $ 0.79 $ 1.84

Impact of pension accounting change 0.03 0.04 0.04

Net income attributable to Equifax, revised $ 0.96 $ 0.83 $ 1.88

Diluted earnings per share*

Net income attributable to Equifax, previously reported $ 0.92 $ 0.78 $ 1.82

Impact of pension accounting change 0.03 0.04 0.04

Net income attributable to Equifax, revised $ 0.95 $ 0.82 $ 1.86

Three Months Ended

2019 March 31, June 30, September 30, December 31,

(In millions, except per share data)

Operating revenue $ 865.7 $ 876.9 $ 834.2 $ 835.3

Operating income $ 144.2 $ 193.6 $ 64.1 $ 46.1

Consolidated net income $ 93.8 $ 146.1 $ 39.6 $ 26.7

Net income attributable to Equifax $ 90.9 $ 144.8 $ 38.4 $ 25.6

Consolidated net (loss) income, previously reported $ ( 554.4 ) $ 68.3 $ 82.5 $ 10.8

Impact of pension accounting change 2.7 2.7 2.7 6.6

Consolidated net (loss) income, revised $ ( 551.7 ) $ 71.0 $ 85.2 $ 17.4

Net (loss) income attributable to Equifax, previously reported $ ( 555.9 ) $ 66.8 $ 81.1 $ 9.2

Impact of pension accounting change 2.7 2.7 2.7 6.6

Net (loss) income attributable to Equifax, revised $ ( 553.2 ) $ 69.5 $ 83.8 $ 15.8

Basic earnings per share*

Net income attributable to Equifax $ 0.76 $ 1.20 $ 0.32 $ 0.21

Net (loss) income attributable to Equifax, previously reported $ ( 4.60 ) $ 0.55 $ 0.67 $ 0.08

Impact of pension accounting change 0.02 0.03 0.02 0.05

Net (loss) income attributable to Equifax, revised $ ( 4.58 ) $ 0.58 $ 0.69 $ 0.13

Diluted earnings per share*

Net income attributable to Equifax $ 0.75 $ 1.19 $ 0.32 $ 0.21

Net (loss) income attributable to Equifax, previously reported $ ( 4.57 ) $ 0.55 $ 0.66 $ 0.07

Impact of pension accounting change 0.02 0.02 0.03 0.06

Net (loss) income attributable to Equifax, revised $ ( 4.55 ) $ 0.57 $ 0.69 $ 0.13

* The sum of the quarterly EPS does not equal the annual EPS due to changes in the weighted-average shares between periods.

Other amounts may not equal the annual total due to rounding between periods.

The comparability of our quarterly financial results during 2019 and 2018 was impacted by certain events, as follows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

IMPACT OF CHANGE IN ACCOUNTING PRINCIPLE ON CURRENT AND PRIOR PERIOD FINANCIAL STATEMENTS

As discussed in Note 1, we voluntarily changed our method of accounting for recognizing actuarial gains and losses and expected return on plan assets for our defined benefit pension and other postretirement benefit plans.

The following tables reflect the effects of the change in accounting principles on the 2020 and previously reported Consolidated Financial Statements:

Consolidated Statements of Income

Twelve Months Ended December 31, 2020

As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method

(In millions, except per share amounts)

Other income (expense), net $ 159.4 $ ( 9.2 ) $ 150.2

Consolidated income before income taxes 694.4 ( 9.2 ) 685.2

Provision for income taxes ( 161.3 ) 2.3 ( 159.0 )

Consolidated net income 533.1 ( 6.9 ) 526.2

Net income attributable to Equifax $ 527.0 $ ( 6.9 ) $ 520.1

Basic earnings per common share $ 4.34 $ ( 0.06 ) $ 4.28

Diluted earnings per common share $ 4.30 $ ( 0.06 ) $ 4.24

Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018

As Reported Revisions Revised As Reported Revisions Revised

(In millions, except per share amounts)

Other income (expense), net $ 14.1 $ 19.2 $ 33.3 $ 11.8 $ 14.1 $ 25.9

Consolidated income before income taxes ( 433.0 ) 19.2 ( 413.8 ) 356.3 14.1 370.4

Provision for income taxes 40.2 ( 4.5 ) 35.7 ( 50.0 ) ( 3.4 ) ( 53.4 )

Consolidated net income ( 392.8 ) 14.7 ( 378.1 ) 306.3 10.7 317.0

Net income attributable to Equifax $ ( 398.8 ) $ 14.7 $ ( 384.1 ) $ 299.8 $ 10.7 $ 310.5

Basic earnings per common share $ ( 3.30 ) $ 0.12 $ ( 3.18 ) $ 2.49 $ 0.09 $ 2.58

Diluted earnings per common share $ ( 3.27 ) $ 0.12 $ ( 3.15 ) $ 2.47 $ 0.09 $ 2.56

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Comprehensive Income Attributable to Equifax

Twelve Months Ended December 31, 2020

As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method

(In millions, except per share amounts)

Net Income $ 527.0 $ ( 6.9 ) $ 520.1

Other comprehensive income:

Foreign currency translation adjustment 184.0 — 184.0

Change in unrecognized prior service cost and actuarial (losses) gains related to our pension and other postretirement benefit plans, net ( 8.0 ) 6.9 ( 1.1 )

Change in cumulative gain from cash flow hedging, net 0.1 — 0.1

Comprehensive income $ 703.1 $ — $ 703.1

Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018

As Reported Revisions Revised As Reported Revisions Revised

(In millions, except per share amounts)

Net Income $ ( 398.8 ) $ 14.7 $ ( 384.1 ) $ 299.8 $ 10.7 $ 310.5

Other comprehensive income:

Foreign currency translation adjustment ( 24.4 ) — ( 24.4 ) ( 224.7 ) — ( 224.7 )

Change in unrecognized prior service cost and actuarial gains (losses) related to our pension and other postretirement benefit plans, net 19.0 ( 14.7 ) 4.3 10.4 291.8 302.2

Change in cumulative gain from cash flow hedging, net 0.1 — 0.1 — — —

Comprehensive income $ ( 404.1 ) $ — $ ( 404.1 ) $ 85.5 $ 302.5 $ 388.0

Consolidated Statements of Financial Position

December 31, 2020

As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method

(In millions, except per share amounts)

Retained Earnings $ 4,469.5 $ ( 284.1 ) $ 4,185.4

Accumulated other comprehensive loss $ ( 455.5 ) $ 284.1 $ ( 171.4 )

December 31, 2019

As Reported Revisions Revised

(In millions, except per share amounts)

Retained Earnings $ 4,131.8 $ ( 277.2 ) $ 3,854.6

Accumulated other comprehensive loss $ ( 631.6 ) $ 277.2 $ ( 354.4 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Cash Flows

December 31, 2020

As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method

(In millions, except per share amounts)

Operating activities:

Consolidated net income $ 533.1 $ ( 6.9 ) $ 526.2

Adjustments to reconcile net income to net cash provided by operating activities:

Deferred Income Taxes $ 68.6 $ ( 2.1 ) $ 66.5

Changes in assets and liabilities, excluding effects of acquisitions:

Current and long-term liabilities, excluding debt $ 97.9 $ 9.0 $ 106.9

Cash provided by operating activities $ 946.2 $ — $ 946.2

Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018

As Reported Revisions Revised As Reported Revisions Revised

(In millions, except per share amounts)

Operating activities:

Consolidated net (loss) income $ ( 392.8 ) $ 14.7 $ ( 378.1 ) $ 306.3 $ 10.7 $ 317.0

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Deferred Income Taxes $ ( 87.2 ) $ 4.5 $ ( 82.7 ) $ ( 2.3 ) $ 3.6 $ 1.3

Changes in assets and liabilities, excluding effects of acquisitions:

Current and long-term liabilities, excluding debt $ 546.9 $ ( 19.2 ) $ 527.7 $ 62.6 $ ( 14.3 ) $ 48.3

Cash provided by operating activities $ 313.8 $ — $ 313.8 $ 672.2 $ — $ 672.2

Consolidated Statements of Shareholders' Equity and Accumulated Other Comprehensive Loss

As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method

(In millions, except per share amounts)

Beginning of period retained earnings $ 4,131.8 $ ( 277.2 ) $ 3,854.6

Net income $ 527.0 $ ( 6.9 ) $ 520.1

End of period retained earnings $ 4,469.5 $ ( 284.1 ) $ 4,185.4

Beginning of period accumulated other comprehensive loss $ ( 631.6 ) $ 277.2 $ ( 354.4 )

Other comprehensive income $ 176.1 $ 6.9 $ 183.0

End of period accumulated other comprehensive loss $ ( 455.5 ) $ 284.1 $ ( 171.4 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As Reported Revisions Revised As Reported Revisions Revised

(In millions, except per share amounts)

Beginning of period retained earnings $ 4,717.8 $ ( 291.9 ) $ 4,425.9 $ 4,600.6 $ — $ 4,600.6

Net (loss) income $ ( 398.8 ) $ 14.7 $ ( 384.1 ) $ 299.8 $ 10.7 $ 310.5

Cumulative adjustment from change in accounting principle $ — $ — $ — $ 4.2 $ ( 302.6 ) $ ( 298.4 )

End of period retained earnings $ 4,131.8 $ ( 277.2 ) $ 3,854.6 $ 4,717.8 $ ( 291.9 ) $ 4,425.9

Beginning of period accumulated other comprehensive loss $ ( 626.3 ) $ 291.9 $ ( 334.4 ) $ ( 412.0 ) $ — $ ( 412.0 )

Other comprehensive loss $ ( 5.3 ) $ ( 14.7 ) $ ( 20.0 ) $ ( 207.3 ) $ ( 10.7 ) $ ( 218.0 )

Cumulative adjustment from change in accounting principle $ — $ — $ — $ — $ 302.6 $ 302.6

End of period accumulated other comprehensive loss $ ( 631.6 ) $ 277.2 $ ( 354.4 ) $ ( 626.3 ) $ 291.9 $ ( 334.4 )

Accumulated Other Comprehensive Loss

As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method

(In millions, except per share amounts)

Foreign currency translation $ ( 168.5 ) $ — $ ( 168.5 )

Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax

( 286.0 ) 284.1 ( 1.9 )

Cash flow hedging transactions, net of tax

( 1.0 ) — ( 1.0 )

Accumulated other comprehensive loss $ ( 455.5 ) $ 284.1 $ ( 171.4 )

As Reported Revisions Revised As Reported Revisions Revised

(In millions, except per share amounts)

Foreign currency translation $ ( 352.4 ) $ — $ ( 352.4 ) $ ( 328.0 ) $ — $ ( 328.0 )

Unrecognized actuarial losses and prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax

( 278.1 ) 277.2 $ ( 0.9 ) ( 297.1 ) 291.9 $ ( 5.2 )

Cash flow hedging transactions, net of tax

( 1.1 ) — $ ( 1.1 ) ( 1.2 ) — $ ( 1.2 )

Accumulated other comprehensive loss $ ( 631.6 ) $ 277.2 $ ( 354.4 ) $ ( 626.3 ) $ 291.9 $ ( 334.4 )

SUBSEQUENT EVENT

The Company acquired 100 % of the ordinary shares of Kount, which closed on February 10, 2021, for cash consideration of approximately $ 640 million.

Kount will be reported within the USIS business unit.

The Company will account for this acquisition in accordance with ASC 805, Business Combinations , which requires the assets acquired and the liabilities assumed to be measured at fair value at the date of the acquisition.

The accounting for the acquisition is incomplete as of the date of our filing.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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-K

Item 8. Financial Statements and Supplementary Data