What changed in this filing

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Item 1. Business

2022-02-24 compared with 2021-02-25 · 172 added, 187 removed, 276 unchanged (57% of the section changed)

is a global data, analytics and technology company.

We provide information solutions for businesses, governments and consumers, and we provide human resources business process outsourcing services for employers.

We provide information solutions for businesses, governments and consumers, and we provide human resources business process automation and outsourcing services for employers.

We have a large and diversified group of clients, including financial institutions, corporations, government agencies and individuals.

Our services are based on comprehensive databases of consumer and business information derived from numerous sources including credit, financial assets, telecommunications and utility payments, employment, income, demographic and marketing data.

We use advanced statistical techniques, machine learning and proprietary software tools to analyze available data to create customized insights, decision-making solutions and processing services for our clients.

We also provide information, technology and services to support debt collections and recovery management.

Additionally, we are a leading provider of payroll-related and human resource management business process outsourcing services in the United States of America (“U.S.”).

We use advanced statistical techniques, machine learning and proprietary software tools to analyze available data to create customized insights, decision-making and process automation solutions and processing services for our clients.

We are a leading provider of information and solutions used in payroll-related and human resource management business process services in the United States of America (“U.S.”).

For consumers, we provide products and services to help people understand, manage and protect their personal information and make more informed financial decisions.

Additionally, we also provide information, technology and services to support debt collections and recovery management.

We currently operate in four global regions:

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We maintain support operations in the Republic of Ireland, Chile, Costa Rica and India.

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 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 and Singapore and have an investment in a consumer and commercial credit information company in Brazil.

Equifax was originally incorporated under the laws of the State of Georgia in 1913, and its predecessor company dates back to 1899.

As used herein, the terms Equifax, the Company, we, our and us refer to Equifax Inc., a Georgia corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Equifax Inc.

We are organized and report our business results in four operating segments, as follows:

We are organized and report our business results in three operating segments, as follows:

• Workforce Solutions — provides services enabling customers to verify income, employment, educational history, criminal history, healthcare professional licensure and sanctions (Verification Services) of people in the U.S., as well as providing our employer customers with services that assist them in complying with and automating certain payroll-related and human resource management processes throughout the entire cycle of the employment relationship, including unemployment cost management, employee screening, employee onboarding, tax credits and incentives, I-9 management and compliance, tax form management services and Affordable Care Act management services (Employer Services).

In the last four years, Workforce Solutions has established operations in Canada, Australia and more recently in the U.K.

Information Solutions (“USIS”) — provides consumer and commercial information solutions to businesses in the U.S.

including online information, decisioning technology solutions, fraud and identity management services, analytical services, portfolio management services, mortgage reporting and marketing services.

• Workforce Solutions — provides services enabling customers to verify income and employment (Verification Services) of people in the U.S., as well as providing our employer customers with services that assist them in complying with and automating certain payroll-related and human resource management processes throughout the entire cycle of the employment relationship, including unemployment cost management, employee onboarding, tax credits and incentives, I-9 management and compliance, tax form management services and Affordable Care Act management services (Employer Services).

Workforce Solutions recently established operations in Canada and Australia.

including online information, decisioning technology solutions, identity management services, analytical services, fraud management services, portfolio management services, mortgage reporting and marketing services.

We provide products to consumers in the U.S.

to enable them to understand and monitor their credit and help protect their identity.

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

• International — provides products and services similar to those available in the USIS operating segment but with variations by geographic region.

We also provide information, technology and services to support debt collections and recovery management.

This operating segment is comprised of our Canada, Europe, Latin America and Asia Pacific business units.

• Global Consumer Solutions — provides products to consumers in the U.S., Canada and the U.K., enabling them to understand and monitor their credit and monitor and help protect their identity.

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

In addition, we also provide products to consumers in Canada, the U.K.

and Australia to enable them to understand and monitor their credit and help protect their identity.

This operating segment is comprised of our Asia Pacific, Europe, Latin America and Canada business units.

It also includes our joint ventures in Russia, Cambodia, Malaysia and Singapore and investment in a consumer and commercial credit information company in Brazil.

In the fourth quarter of 2021, we integrated our Global Consumer Solutions business into our USIS, Workforce Solutions and International operating segments.

consumer credit monitoring solutions businesses have been moved into the Online Information Solutions business of USIS with the U.S.

consumer identity theft protection business moved to the Employer Services business of Workforce Solutions.

All international consumer credit monitoring solutions businesses in Canada and Europe have been moved into the respective country operations within the International operating segment.

These changes in operating segments align with how we manage our business as of the fourth quarter of 2021.

All segment disclosures within this Form 10-K have been restated to reflect this change in reportable segments.

Our Business Strategy

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Our business strategy is driven by the following imperatives:

• Lead our industry in data security.

We are focused on being a leader in our industry in the effectiveness of our data and technology security practices.

This includes building an Equifax culture that considers data and technology security, and more broadly risk management, as a primary requirement in all decisions.

This also includes the extensive use of advanced data and technology security tools, techniques, services and processes in order to enhance our ability to protect the information with which we are entrusted from fraudulent access.

• Transform our technology.

We have undertaken a cloud data and technology transformation in order to rebuild our technology infrastructure, accelerate our migration to a public cloud environment, employ virtual private cloud deployment techniques, and rationalize and rebuild our application portfolio using cloud-native services.

Our investment in cloud-native technology is enabling the creation of our single data fabric and implementation of best-in-class cloud-based tools and capabilities.

Our goal is to leverage our cloud data and technology transformation to accelerate innovation and new product development;

• Leverage our Equifax cloud capabilities and technology investment to accelerate innovation, new products and growth.

We are executing a cloud data and technology transformation that is rebuilding our technology infrastructure, including a migration to a public cloud environment that employs virtual private cloud deployment techniques.

We are rationalizing and rebuilding our application portfolio using cloud-native services.

Our move to cloud-native technology is enabling the creation of our single data fabric and implementation of best-in-class cloud-based tools and capabilities.

Our growth strategy is to leverage our cloud data and technology transformation to accelerate innovation and new product development;

deliver market-leading capabilities to our customers;

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and strengthen system resiliency and uptime.

• Lead in data and analytics, to develop unparalleled analytical insights leveraging Equifax’s unique data.

We use proprietary advanced analytical platforms, including capabilities in machine learning and advanced visualization tools, to leverage our unique data to develop leading analytical insights that enhance the precision of our customers’ decisioning activities.

As a part of the rebuilding of our technology infrastructure, we are also rebuilding our analytical platforms using cloud native services in a public cloud environment.

We strive to continue to advance these capabilities through ongoing data monetization activities, the acquisition of distinctive and differentiated assets, and continued advancement of capabilities in artificial intelligence and machine learning.

As part of our technology transformation, we are investing to simplify our customers’ access to our leading analytical platforms, in order to speed the development of unique insights and the conversion of these insights into new products and services consumable by our customers through our delivery platforms.

We offer a wide array of products, ranging from custom products for large clients, to software-as-a-service-based decisioning and data access technology platforms that are cost-effective for clients of all sizes.

We also develop predictive scores and analytics, some of which leverage multiple data assets, to help clients acquire new customers and manage their existing customer relationships.

We develop a broad array of industry, risk management, cross-sell and account acquisition models to enhance the precision of our clients’ decisioning activities.

We also develop custom and generic solutions that enable customers to effectively manage their debt collection and recovery portfolios.

• Improve the consumer user experience.

Equifax understands the importance of providing consumers with user-friendly capabilities to see, understand and question their consumer credit file and information.

As part of our technology transformation, we are rebuilding our digital and call center technology infrastructure to provide an experience focused on making consumers’ interactions with Equifax as effective and efficient as possible.

• Leverage and expand our differentiated portfolio of data assets.

We use proprietary advanced analytical platforms, including capabilities in machine learning, artificial intelligence and advanced visualization tools, to leverage our unique data to develop leading analytical insights that enhance the precision of our customers’ decisioning activities.

Based on our cloud native data and technology transformation, we are investing to simplify our customers’ access to our leading analytical platforms, in order to speed the development of unique insights and the conversion of these insights into innovative new products and services consumable by our customers through our delivery platforms.

We strive to advance these capabilities and bring our customers multi-data solutions at scale by expanding our unique and differentiated data assets and analytics through organic growth, M&A and partnerships.

• Foster a culture of customer centricity.

We are focused on building a culture in which the customer is at the center of our decision processes and we exceed customer expectations by delivering solutions with speed, flexibility, stability and performance.

Our focus on customer centricity will enable us to be more proactive in solving problems better and faster for customers while delivering enhanced operational readiness to provide a better customer experience.

• Deliver growth while enhancing profitability and shareholder returns.

We strive to accelerate innovation through expanded customer focus and collaboration.

We intend to leverage our cloud native technology and unique data assets and capabilities, as well as customer expertise and customer data and technology assets, to help us jointly create high-value analytical products and services targeted at a broader range of customer needs.

We seek to expand partnerships in order to further broaden the key customer domains and verticals that our products and services are able to serve.

We seek to increase our share of clients’ spend on information-related services through these new products and services, price our products and services in accordance with the value they represent to our customers, increase the

range of current products and services utilized by our clients, and improve the quality and effectiveness of our support for both customers and consumers.

We are focused on maintaining a culture in which the customer is at the center of our decision processes and we exceed customer expectations by delivering solutions with speed, flexibility, stability and performance.

We prioritize engagement with our customers and strive to accelerate innovation through our expanded customer focus and collaboration.

We seek to leverage our cloud native technology and unique data assets and capabilities, as well as customer expertise and customer data and technology assets, to drive the development of high-value analytical products and services targeted at a broader range of customer needs.

Our focus on customer centricity enables us to be more proactive in solving problems better and faster for customers while delivering enhanced operational readiness to provide a better customer experience.

• Execute strategic acquisitions that expand our capabilities and drive revenue growth.

A critical lever of our strategy is inorganic growth through accretive and strategic acquisitions that drive incremental annual revenue growth.

Our acquisition priorities are clear and focused on re-investing in bolt-on acquisitions that expand our unique differentiated data assets and solutions to strengthen and grow our core businesses.

We continue to invest, including through acquisitions and partnerships, to expand our addressable markets and the data and capabilities we offer to solve customer challenges across the services we provide in Workforce Solutions and to expand our access to differentiated data including across identity authentication, fraud mitigation and risk management.

We believe there are opportunities to continue to expand in the U.S.

and internationally, across the existing financial, mortgage, telecommunications, automotive, insurance, healthcare, government and other markets that we serve, as well as in new and emerging market segments.

We continue to invest, including through acquisitions and partnerships, to expand our addressable markets and the data and capabilities we offer to solve customer challenges ranging from identity authentication to risk management.

We seek to enhance shareholder value through the disciplined execution of these imperatives and by positioning ourselves as a premier and trusted provider of high value information solutions.

and internationally, across the existing financial, mortgage, telecommunications, automotive, insurance, healthcare, talent management, human resource services, government and other markets that we serve, as well as in new and emerging market segments.

• Continue our leadership in data security.

We are committed to being an industry leader in security.

We have built an Equifax culture that prioritizes security, and we consider data and technology security, and more broadly risk management, as a primary requirement in all decisions.

We make extensive use of advanced data and

technology security tools, techniques, services and processes in order to enhance our ability to protect the information with which we are entrusted.

We are committed to working openly with our peers, customers, and partners to tackle emerging security challenges, document best practices, provide vital data security thought leadership and work together to deliver solutions that benefit both the security community and consumers.

• Build a world-class Equifax team by investing in talent to drive our strategy and promote a culture of innovation.

At Equifax, we are focused on nurturing our people by providing meaningful opportunities for career advancement and development, fostering an inclusive and diverse work environment, and promoting employee engagement and recognition.

We regularly undertake talent initiatives to attract, develop and retain our top talent.

At Equifax, we are committed to nurturing a culture where diverse talent thrives.

We are focused on providing meaningful opportunities for career advancement and development, fostering an inclusive work environment, and promoting employee engagement and recognition.

We leverage our enterprise-wide talent initiatives to develop, retain and attract a highly-qualified workforce in order to promote our culture of innovation, add diverse perspectives and deliver on our business strategy.

We seek to enhance shareholder value through the disciplined execution of these imperatives and by positioning our Company as a global data, analytics and technology leader with industry-leading security.

Markets and Clients

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The following table summarizes the various end-user markets we serve:

(1) The Mortgage vertical as a percentage of consolidated revenue increased to 32% in 2020 from 20% in 2019 due to the significant growth in U.S.

mortgage volume.

(1) Predominantly sold to companies who serve the direct-to-consumer market and includes other small end user markets.

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We also market our products and services through indirect channels, including alliance partners, joint ventures and other resellers.

In addition, we sell through the internet.

In addition, we market our products directly to consumers through eCommerce channels.

Revenue from international clients, including end users and resellers, amounted to 22% of our total revenue in 2021, 23% of our total revenue in 2020 and 29% of our total revenue in 2019.

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The following chart summarizes the key products and services offered by each of the business units within our segments:

USIS Workforce Solutions International

Online Information Solutions Financial Marketing Services Mortgage Services Verification Services Employer Services Europe Asia Pacific Latin America Canada Global Consumer Solutions

Online data X X X X X X X X

Portfolio management services X X X X X X X X

Analytical services X X X X X X X X X X

Technology services X X X X X X

Identity management and fraud X X X X X X X

Workforce Solutions USIS International

Verification Services Employer Services Online Information Solutions Financial Marketing Services Europe Asia Pacific Latin America Canada

Online data X X X X X X

Portfolio management services X X X X X X X

Analytical services X X X X X X X X

Technology services X X X X X

Identity verification services X X X X X X X

Fraud management services X X X X X X X

Marketing services X X X X X

Direct-to-consumer credit monitoring X X

Direct-to-consumer credit monitoring X X X X

Employment and income verification services X X X

Talent management X X

Business process outsourcing (BPO) X X X

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For the operating revenue, operating income and total assets for each segment see Note 13 of the Notes to the Consolidated Financial Statements in Item 8 of this report.

Workforce Solutions

Workforce Solutions operates in the U.S.

through two business units:

Verification Services.

Verification Services include employment, income, educational history, criminal history, healthcare professional licensure and sanctions verification services.

Our online verification services enable third-party verifiers including various governmental agencies, mortgage originators, credit card and automotive lenders and pre-employment screeners to verify the employee’s employment status and income information.

We also offer an offline manual verification service, which expands employment verification to locate data outside our existing automated database.

We also offer various government direct data services, where we process tax forms on behalf of our customers with the applicable government agency.

In addition, Verification Services administers a comprehensive source of incarceration, justice and people-based risk intelligence data.

Employer Services.

These services are aimed at reducing the cost of the human resources function of businesses through a broad suite of services including assisting with employment tax matters designed to reduce the cost of unemployment claims through effective claims representation and management and efficient processing to better manage the tax rate that employers are assessed for unemployment taxes;

comprehensive services designed to research the availability of employment-related tax credits (e.g., federal work opportunity tax credits and employee retention credits), and to process the necessary filings and assist the client in obtaining the tax credit;

tax form management services (which include initial distribution, reissuance and correction of W-2 and 1095-C forms);

paperless pay services that enable employees to electronically receive pay statement information as well as review and change direct deposit account or W-4 information;

I-9 management services designed to help clients electronically comply with the immigration laws that require employers to complete an I-9 form for each new hire;

onboarding services using an online platform to complete the new hire process for employees of corporations and government agencies;

and identity theft protection services.

In addition, we provide software and services to employers to assist in their compliance with the Affordable Care Act.

The Work Number ® is our key repository of employment and income data serving our Verification Services and Employer Services business units.

We rely on payroll data received from over two million organizations to regularly update the

The updates occur as employers and other data contributors transmit data electronically to Equifax from their payroll systems.

Employers provide this data to us so that we can handle verification requests on behalf of each employer.

We use this data to provide automated employment and income verification services to verifiers, who are lenders, employers/background screeners, and government agencies.

The fees we charge for services in these two business units are generally on a per transaction basis.

We have not experienced significant turnover in the employer contributors to the database because we generally do not charge them to add their employment data to The Work Number ® database and the verification service we offer relieves them of the administrative burden and expense of responding to third-party employment verification requests while providing them with the assurance that the process is automated and not subject to human interpretation.

The Work Number ® database held over 535 million current and historic employment records at December 31, 2021.

Workforce Solutions has established an income and employment verification service in Canada and Australia, known as Verification Exchange.

Workforce Solutions is in the process of building a similar income and employment verification service business in the U.K.

At present, revenues from these services in all three regions mentioned are insignificant.

USIS provides consumer and commercial information solutions to businesses in the U.S.

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Our software platforms and analytical capabilities can integrate all types of information, including third-party and client information, to enhance the insights and decisioning process to help further mitigate the risk of granting credit, predict the risk of bankruptcy, indicate the applicant’s risk potential for account delinquency, ensure the identity of the consumer and reduce exposure to fraud.

Identity verification and fraud management products combine financial and non-financial identity information and activity to provide identity verification and authentication services, to assist customers in assessing the risk of loss due to account takeover, identity theft and chargebacks.

These risk management services enable our clients to monitor risks and opportunities and proactively manage their portfolios.

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These decisioning technology applications assist with a wide variety of decisioning activities, including determining pre-approved offers, cross-selling of various products, determining deposit amounts for telephone and utility companies and verifying the identity of their customers.

We have also compiled commercial databases regarding businesses in the U.S., which include loan, credit card, public records and leasing history data, trade

accounts receivable performance, and Secretary of State and Securities and Exchange Commission registration information.

We have also compiled commercial databases regarding businesses in the U.S., which include loan, credit card, public records and leasing history data, trade accounts receivable performance and Secretary of State and Securities and Exchange Commission registration information.

We offer scoring and analytical services that provide additional information to help mitigate the credit risk assumed by our clients.

Online Information Solutions also includes our consumer solutions product suite that give U.S.

consumers information to enable them to understand and monitor their credit to monitor and help protect their identity.

Equifax products offer monitoring features for consumers who are concerned about identity theft, including credit report monitoring from all three credit bureaus, internet scanning, bank account monitoring and lost wallet support.

Products may also be available indirectly through relationships with business partners who distribute our products or provide these services to their employees or customers.

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

Mortgage Solutions.

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Mortgage lenders use these tri-merge reports in making their mortgage underwriting decisions.

Additionally, we offer services designed to alert lenders to changes in a consumer’s credit status during the underwriting period and securitized portfolio risk assessment services for evaluating inherent portfolio risk.

Additionally, we offer services designed to alert lenders to changes in

a consumer’s credit status during the underwriting period and securitized portfolio risk assessment services for evaluating inherent portfolio risk.

Financial Marketing Services.

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Clients for these products primarily include institutions in the banking, brokerage, retail, insurance and mortgage industries as well as companies primarily focused on digital and interactive marketing.

Workforce Solutions

Workforce Solutions operates in the U.S.

through two business units:

Verification Services.

Verification Services include employment and income verification services.

We also offer an offline manual verification service, which expands employment verification to locate data outside our existing automated database.

We also offer various government direct data services, where we process tax forms on behalf of our customers with the applicable government agency.

Employer Services.

These services are aimed at reducing the cost of the human resources function of businesses through a broad suite of services including assisting with employment tax matters designed to reduce the cost of unemployment claims through effective claims representation and management and efficient processing and to better manage the tax rate that employers are assessed for unemployment taxes;

comprehensive services designed to research the availability of employment-related tax credits (e.g., federal work opportunity tax credits), and to process the necessary filings and assist the client in obtaining the tax credit;

tax form management services (which include initial distribution, reissuance and correction of W-2 and 1095-C forms);

paperless pay services that enable employees to electronically receive pay statement information as well as review and change direct deposit account or W-4 information;

I-9 management services designed to help clients electronically comply with the immigration laws that require employers to complete an I-9 form for each new hire;

and onboarding services using an online platform to complete the new hire process for employees of corporations and government agencies.

In addition, we provide software and services to employers to assist in their compliance with the Affordable Care Act.

The Work Number ® is our key repository of employment and income data serving our Verification Services and Employer Services business units.

We rely on payroll data received from over one million organizations to regularly update the database.

The updates occur as employers and other data contributors transmit data electronically to Equifax from their payroll systems.

Employers provide this data to us so that we can handle verification requests on behalf of each employer.

We use this data to provide automated employment and income verification services to verifiers, who are lenders, employers/background screeners, and government agencies.

The fees we charge for services in these two business units are generally on a per transaction basis.

The Work Number ® database is over 460 million current and historic employment records at December 31, 2020.

Workforce Solutions has established an income and employment verification service in Canada, known as Verification Exchange.

Workforce Solutions is in the process of building a similar income and employment verification service business in Australia.

At present, revenues from these services in Canada and Australia are insignificant.

International

The International operating segment includes our Asia Pacific, Europe, Latin America and Canada business units.

It also includes our joint ventures in Russia, Cambodia, Malaysia and Singapore and investment in a consumer and commercial credit information company in Brazil.

These business units offer products that are similar to those available in the USIS operating segment, but with variations by geographic region.

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We also maintain support operations in the Republic of Ireland, Chile, Costa Rica, and India.

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

We also provide information, technology and services to support debt collections and recovery management in Asia Pacific, Europe, Canada and Latin America.

Asia Pacific.

Our Asia Pacific operation provides consumer and commercial information solutions products, marketing products, workforce solutions, and consumer credit protection products.

We offer a full range of products, generated from credit records and other data, including credit reporting and scoring, decisioning technology, risk management, identity management, authentication and fraud detection services.

Our consumer and commercial products are the primary source of revenue in each of the countries in which we operate and include credit reporting, decisioning tools and risk management services.

We also provide information, technology and services to support debt collections and recovery management.

Additionally, we provide a variety of consumer and commercial marketing products generated from information databases, including business profile analysis, business prospect lists and database management.

The countries in which we operate include Australia, New Zealand and India, as well as through joint ventures in Russia, Cambodia, Malaysia and Singapore.

Our Europe operation provides information solutions, fraud detection services, debt collection services and marketing products.

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In the U.K., this includes a contract to provide these services to the U.K.

Asia Pacific.

Our Asia Pacific operation provides consumer and commercial information solutions products, marketing products, workforce solutions, and consumer credit protection products.

Our consumer and commercial products are the primary source of revenue in each of the countries in which we operate and include credit reporting, decisioning tools and risk management services.

We also provide information, technology and services to support debt collections and recovery management.

The countries in which we operate include Australia, New Zealand and India, as well as through joint ventures in Russia, Cambodia, Malaysia, Singapore and the United Arab Emirates.

Latin America.

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Additionally, we provide a variety of consumer and commercial marketing products generated from our credit information databases, including business profile analysis, business prospect lists and database management.

The countries in this region in which we operate include Argentina, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay.

countries in this region in which we operate include Argentina, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay.

We also have an investment in a consumer and commercial credit information company in Brazil.

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We offer many products in Canada, including credit reporting and scoring, consumer and commercial marketing, risk management, fraud detection and modeling services, identity management and authentication services, together with certain of our decisioning products that facilitate pre-approved offers of credit and automate a variety of credit decisions.

We also provide information, technology and services to support debt collections and recovery management in Canada.

Global Consumer Solutions

Our Global Consumer Solutions (“GCS”) products give consumers information to enable them to understand and monitor their credit and monitor and help protect their identity.

Country specific versions of our products are available to consumers in the U.S., Canada, and the U.K.

primarily over the internet.

Products may also be available indirectly through relationships with business partners who distribute our products or provide these services to their employees or customers.

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

We experience seasonality in certain of our revenue streams.

Revenue generated by the online consumer information services component of our USIS operating segment is typically the lowest during the first quarter, when consumer lending activity is at a seasonal low.

Revenue generated from the Employer Services business unit within the Workforce Solutions operating segment is generally higher in the first quarter due primarily to the provision of Form W-2 and 1095-C services that occur in the first quarter each year.

Revenue generated from our financial wealth asset products and data management services in our Financial Marketing Services business is generally higher in the fourth quarter each year due to the significant portion of our annual renewals and deliveries which occur in the fourth quarter of each year.

Mortgage related revenue is generally higher in the second and third quarters of the year due to the increase in consumer home purchasing during the summer in the U.S.

We also provide information, technology and services to support debt collections and recovery management, as well as data, technology and services to facilitate the search of land data and process real estate transactions in Canada.

The market for our products and services is highly competitive and is subject to constant change.

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Sources of competition are numerous and include the following:

• Competition in the Verification Services market, for both the U.S.

and key International segments of Australia, Canada and the U.K., includes employers who manage verifications in-house, lenders who obtain verifications directly from employers, and other online and offline verification companies, such as Experian, Thomas & Company and niche providers.

Third parties may also seek to obtain verifications directly from employees by leveraging paper copies of information or by seeking employee credentials to access information systems.

Competition in the U.S.

Employer Services market is diverse and includes in-house management of such services or the outsourcing of one or more of such services to other third-party outsourced providers like Experian and Thomas & Company;

human resources consulting firms such as Mercer and Towers Watson;

human resources management services providers such as Workday, Oracle and SAP;

payroll processors such as ADP, Paychex and Ceridian;

accounting firms such as PwC and EY;

and hundreds of smaller companies that provide one or multiple offerings that compete with our Employer Services business.

• Competition for our credit information solutions and direct-to-consumer solutions products varies by both application and industry, but generally includes two global consumer credit reporting companies, Experian and TransUnion, both of which offer a product suite similar to our credit information solutions.

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• Competition for our commercial solutions products primarily includes Experian, Dun & Bradstreet and Moody's, and providers of these services in the international markets we serve.

• Competition in the Verification Services market includes employers who manage verifications in-house, lenders who obtain verifications directly from employers, and other online and offline verification companies, such as Corporate Cost Control, Thomas & Company and First Advantage.

Competition in the Employer Services market is diverse and includes in-house management of such services or the outsourcing of one or more of such services to other third-party outsourced providers like Corporate Cost Control and Thomas & Company;

human resources consulting firms such as Mercer and Towers Watson;

human resources management services providers such as Oracle and Silk Road;

payroll processors such as ADP, Paychex and Ceridian;

accounting firms such as PwC and EY;

and hundreds of smaller companies that provide one or multiple offerings that compete with our Employer Services business.

• Competition for our debt collection and recovery management software, services and analytics is similar to the competition for our consumer credit information solutions.

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technical performance including system response time and availability;

access to unique proprietary databases;

access to unique proprietary

quickness of response, flexibility and client services and support;

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existing market penetration;

proprietary technology;

and new product innovation.

Technology and Intellectual Property

We generally seek protection under U.S.

federal, state and foreign laws for strategic or financially important intellectual property developed in connection with our business.

Certain intellectual property, where appropriate, is protected by filing for registration under applicable trademark and patent laws.

We own a number of patents registered in the U.S.

and in several foreign countries.

We also have both registered and common law trademarks, service marks, logos and internet domain names in the U.S.

and in many foreign countries, the most important of which are “Equifax,” “The Work Number,” “Interconnect,” “Equifax Ignite,” and variations thereof.

We rely on various intellectual property laws, confidentiality procedures and contractual provisions to protect strategic or valuable intellectual property developed in connection with our business.

We register, and apply for registration of, certain intellectual property in the U.S.

and several foreign countries under applicable patent laws.

We also have registered and common law trademarks, service marks, logos and internet domain names in the U.S.

and in many foreign countries, the most important of which include “Equifax,” “The Work Number,” “Interconnect,” “Equifax Ignite,” and variations thereof.

These marks are used in connection with many of our product lines and services.

We believe that, in the aggregate, the rights under our patents and trademarks are generally important to our operations and competitive position, but we do not regard any of our businesses as being dependent upon any single patent or group of patents.

However, certain Company trademarks, which contribute to our identity and the recognition of our products and services, including but not limited to the “Equifax” trademark, are an integral part of our business, and their loss could have a significant negative impact on us.

We also protect certain of our confidential intellectual property and technology with trade secret laws where applicable and through the use of nondisclosure agreements and other means of protecting and limiting access to and use of such information.

Our intellectual property rights are generally important to our operations and competitive position, but no single intellectual property right or group of intellectual property rights is solely responsible for protecting our businesses.

Certain Company trademarks, including the “Equifax” trademark, which contribute to our brand identity and the recognition of our products and services, are more important to our business, and their loss could have a significant negative impact on us.

We license other companies to use certain data, software and other technology and intellectual property rights we own or control, primarily as core components of our products and services, on terms that are consistent with customary industry standards and that are designed to protect our interest in our intellectual property.

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In particular, we are subject to U.S.

federal, state, local and foreign laws regarding the collection, protection, dissemination and use of personal information we have in our possession.

federal, state, local and foreign laws regarding the collection, protection, dissemination and use of personal information we collect, process or otherwise have in our possession.

Failure to satisfy those legal and regulatory requirements, or the adoption of new laws or regulations, could have a significant negative impact on our results of operations, financial condition or liquidity.

federal, state, local and foreign laws and regulations are evolving and can be subject to significant change, particularly given the recent change in U.S.

presidential administrations and the new U.S.

federal, state, local and foreign laws and regulations are evolving and can be subject to significant change, particularly given the 2021 change in U.S.

presidential administration and the U.S.

In addition, the application and interpretation of these laws and regulations are often uncertain.

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Federal Laws and Regulation

The Fair Credit Reporting Act (“FCRA”) regulates consumer reporting agencies, including us, as well as data furnishers and users of consumer reports such as banks and other companies.

The Fair Credit Reporting Act (“FCRA”) regulates consumer reporting agencies, including many of our U.S.

operations, as well as data furnishers and users of consumer reports such as banks and other companies.

FCRA provisions govern the accuracy, fairness and privacy of information in the files of consumer reporting agencies (“CRAs”) that engage in the practice of assembling or evaluating certain information relating to consumers for certain specified purposes.

The FCRA limits the type of information that may be reported by CRAs, limits the distribution and use of consumer reports and establishes consumer rights to access, freeze and dispute information in their credit files.

CRAs are required to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates and if a consumer disputes the accuracy of any information in the consumer’s file, to conduct a reasonable reinvestigation.

CRAs are required to make available to consumers a free annual credit report and free credit freezes.

The FCRA imposes many other requirements on CRAs, data furnishers and users of consumer report information.

imposes many other requirements on CRAs, data furnishers and users of consumer report information.

Violation of the FCRA can result in civil and criminal penalties.

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• The New York State Department of Financial Services (“NYDFS”) has enacted extensive regulatory requirements applicable to CRAs that require registration with that agency, prohibit unfair and deceptive consumer practices and require compliance with significant portions of the NYDFS cybersecurity rules.

• We or certain of our operations are also subject to and affected by new and evolving state privacy and data security laws such as new data broker registration requirements in California and Vermont, and the California Consumer Privacy Act (“CCPA”).

• We or certain of our operations are also subject to and affected by new and evolving state privacy and data security laws such as data broker registration requirements in California and Vermont, and the California Consumer Privacy Act (“CCPA”).

The CCPA became effective January 1, 2020 and imposes additional data privacy requirements on many businesses operating in the state, including, potentially, with respect to employee data in addition to consumer data.

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In November 2020, California voters passed the California Privacy Rights Act (“CPRA”), which maintains the core framework but expands the requirements of the CCPA effective January 1, 2023.

We may also become subject to and affected by new and proposed state privacy laws similar to the CCPA.

A number of state legislatures, including New York and Washington, have introduced comprehensive data privacy legislation modeled after, and which contain certain elements of, the CCPA or the European Union's General Data Protection Regulation (“GDPR”), which is an extremely broad privacy law.

We may also become subject to and affected by new and proposed state privacy laws similar to the CCPA and CPRA, such as the Virginia Consumer Data Protection Act (“VCDPA”) which becomes effective January 1, 2023, and the Colorado Privacy Act (“CPA”) which becomes effective July 1, 2023.

A number of other state legislatures, including New York, Florida and Washington, have introduced comprehensive data privacy legislation modeled after, and which contain certain elements of, the CCPA, VCDPA or the European Union's General Data Protection Regulation (“GDPR”), which is an extremely broad privacy law.

Additional state legislatures are expected to consider similar legislation in 2022.

If enacted, such laws may contain variations and impose new compliance risks and obligations on the Company.

If enacted, such laws may contain variations and impose new compliance risks and obligations on us.

• State banking and financial services regulatory agencies have asserted either express or implied authority under applicable state laws to examine us as a third-party service provider to financial institutions, and in certain cases to bring enforcement actions against us.

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• In the U.K.

, we are subject to a regulatory framework which provides for primary regulation by the Financial Conduct Authority (the “FCA”).

, we are subject to a regulatory framework that provides for regulation by the Financial Conduct Authority (the “FCA”).

The FCA focuses on consumer protection, the integrity of the U.K.

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Effective December 2019, the FCA framework under which we operate has included the “senior managers and certification regime” which, among other things will allow the FCA to bring an enforcement action directly against designated personnel who do not take reasonable steps to avoid non-compliance.

Our core credit reporting and debt collections services and recovery management businesses in the U.K.

Our core credit

reporting and debt collections services and recovery management businesses in the U.K.

are subject to FCA supervision.

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In addition, the GDPR includes data breach notification requirements and it establishes the ability of regulators to pursue substantial penalties for non-compliance.

In addition to the GDPR, each EU member state may include specific requirements regarding personal data breaches in its local data protection regulations.

• In Canada , federal and provincial laws govern how we collect, use or disclose personal information in the course of our commercial activities.

Federally, the Personal Information Protection and Electronic Documents Act governs the collection, use and disclosure of personal information by organizations in the private sector.

Federally, the Personal Information Protection and Electronic Documents Act (“PIPEDA”) governs the collection, use and disclosure of personal information by organizations in the private sector.

Businesses must follow the fair information principles set forth in PIPEDA to protect personal information, including:

accountability, identifying purposes, consent, limiting collection, limiting use, disclosure and retention, accuracy, safeguards, openness, individual access and compliance.

It sets out specific obligations with respect to accountability and identifying purposes, consent, collection, use, disclosure, retention, accuracy, safeguards, personal data breach reporting, individual access and compliance.

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At present, each province has credit reporting legislation, with the exception of the Territories (Northwest Territories, Yukon, and Nunavut).

Generally speaking, the legislation regulates the contents of credit files, the length of time information can be included on a credit file and who can receive credit reports.

Generally speaking, the legislation regulates the contents of credit files, the length of time information can be included on a credit file, who can receive credit reports and consumer rights pertaining to the maintenance of credit reports.

• In Latin America, data protection and credit reporting laws and regulations vary considerably among Latin American countries.

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These countries, however, have laws that govern the functioning of credit bureaus.

Other countries, such as Argentina, Uruguay, Peru, Costa Rica and most recently Brazil have enacted comprehensive data protection legislation similar to the EU's GDPR.

Other countries, such as Argentina, Uruguay, Peru, Costa Rica, Mexico and most recently Brazil have enacted comprehensive data protection legislation similar to the EU's GDPR.

The EU recognizes Argentina and Uruguay as having adequate levels of protection for personal data transfers and processing.

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Our credit reporting business, Equifax Information Services and Solutions, is a member of an external dispute resolution scheme, the Australian Financial Complaints Authority, which has been approved by the OAIC to handle privacy and credit reporting complaints and make binding determinations.

The OAIC can register codes of practice under the Privacy Act

1988, and has registered the Privacy (Credit Reporting) Code 2014.

The OAIC can register codes of practice under the Privacy Act 1988, and has registered the Privacy (Credit Reporting) Code 2014.

The Australian Competition and Consumer Commission (“ACCC”) is the agency responsible for enforcing the Competition and Consumer Act of 2010 and related legislation concerning consumer protection and competition.

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Equifax Australasia Credit Ratings Pty Limited (formerly named Corporate Scorecard Pty Limited, one of our Australian subsidiaries) holds an Australia Financial Services License, which allows it to provide general advice to wholesale clients by issuing a credit rating, and has been approved in New Zealand as a rating agency by the Reserve Bank of New Zealand under section 86 of the Non-bank Deposit Takers Act of 2013 (NZ).

The Australian Securities and Investments Commission regulates that business and has authority to investigate, prosecute, ban individuals, and to seek civil penalties.

New federal legislation came into effect in February 2021 mandating the supply by large banks of comprehensive credit information to credit reporting bodies, including Equifax, imposing certain disclosure, storage and reporting obligations on the credit reporting bodies, requiring the provision by credit reporting bodies of free credit reports to consumers up to four times per year, permitting the reporting of financial hardship information within the credit reporting system and requiring the Attorney-General to review and report on the credit reporting system before October 1, 2024.

• In New Zealand, the regulatory framework provides for primary regulation under the Office of the Privacy Commissioner (“NZ OPC”).

The NZ OPC investigates complaints relating to the collection, use, holding and disclosure of personal information, both credit-related and non-credit related.

The NZ OPC can make a finding that there has been an interference with privacy but cannot impose civil penalties.

The Australian Securities and Investments Commission regulates corporations and has

authority to investigate, prosecute, ban individuals and to seek civil penalties.

New federal legislation came into effect in February 2021 mandating the supply by banks of comprehensive credit information to credit reporting bodies, including Equifax, imposing certain disclosure, storage and reporting obligations on the credit reporting bodies, requiring the provision by credit reporting bodies of free credit reports to consumers up to four times per year, permitting the reporting of financial hardship information within the credit reporting system and requiring the Attorney-General to review and report on the credit reporting system before October 1, 2024.

• In New Zealand, the regulatory framework provides for primary regulation under the Privacy Act 2020.

The Office of the Privacy Commissioner (“NZ OPC”) investigates complaints relating to the collection, use, holding and disclosure of personal information, both credit-related and non-credit related.

The NZ OPC can make a finding that there has been an interference with privacy but cannot impose civil penalties for this.

In extreme cases where there has been an interference with privacy, it can refer these cases to the Director of Human Rights for determination in the Human Rights Review Tribunal.

The NZ OPC can issue practice codes under the Privacy Act 2020 and has issued and subsequently amended the Credit Reporting Privacy Code 2020.

New Zealand passed a new Privacy Act in 2020 that significantly expanded its privacy law.

A self-regulatory body, the Retail Credit Association of New Zealand addresses reciprocity of data issues relating to comprehensive credit reporting and data standards.

The Privacy Act 2020 contains newly introduced mandatory data breach reporting.

The Retail Credit Association of New Zealand is an industry association which addresses reciprocity of data issues relating to comprehensive credit reporting and data standards.

• In India , various legislation including the Information Technology Act of 2000 and rules framed thereunder and the Credit Information Companies (Regulation) Act of 2005 and rules and regulations framed thereunder, establishes a federal data protection framework.

Entities that collect and maintain personal data and/or credit information must ensure that it is complete, accurate and safeguarded, and must adopt certain privacy principles with respect to collecting, processing, preserving, sharing and using such data and/or credit information.

The Indian parliament is expected to pass legislation that would allow individuals to sue for damages in the case of a data breach, if the entity negligently failed to implement reasonable security practices and procedures to protect personal data and/or credit information and in December 2019 legislators introduced the Personal Data Protection Bill, which is expected to be considered in 2021 with amendments.

The Indian parliament is expected to pass legislation that provides greater protection to individuals' personal data.

To this end, Indian legislators introduced the Personal Data Protection Bill in December 2019, which is expected to be considered in 2022 with amendments.

This bill is expected to be enacted and eventually to impose additional privacy and data security requirements.

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As a result, changes to those regulatory frameworks could impact the services we provide.

For instance, if the federal government or a state government mandates the use of E-Verify, our I-9 service may be impacted if the federal government changes the requirements for individuals to work in the United States.

The Unemployment Cost Management service could be impacted if a state government changes the requirements for employers to process and/or protest unemployment claims.

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Equifax employed approximately 12,700 employees in 23 countries as of December 31, 2021.

Our global employee base consisted of approximately 2,100 employees in our USIS business unit, 2,700 employees in our Workforce Solutions business unit, 3,900 employees in our International business unit, 500 employees in our Global Consumer Solutions business unit, and 2,200 employees in our corporate Centers of Excellence.

In 2020, we hired over 2,300 new employees and promoted approximately 1,100 employees as we continue to grow and transform our businesses around the world.

Our global employee base consisted of approximately 3,300 employees in our Workforce Solutions business unit, 2,600 employees in our USIS business unit, 4,400 employees in our International business unit and 2,400 employees in our corporate Centers of Excellence.

In 2021, we hired approximately 3,500 new employees and promoted approximately 1,800 employees as we continue to grow and transform our businesses around the world.

Inclusion and Diversity

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This key leadership position reports directly to our Chief Human Resources Officer and is responsible for activating our talent strategy with a focus on furthering an inclusive and diverse workforce and culture.

We are advancing this strategy through deepening our commitment to employee affinity networks around the world, open dialogues to enhance understanding and mutual listening, on-going I&D focused training, and cultural heritage celebrations.

We’ve consistently improved enterprise-wide trends around representation and promotions for both women and employees of diverse ethnic backgrounds, and pride ourselves on promoting and hiring highly-qualified candidates who enhance our culture, add diverse perspectives, and deliver on our business strategy.

Women and leaders of diverse ethnic backgrounds make up over half of Equifax’s senior leadership team, including three of the four business unit leaders.

We are advancing this strategy through deepening our commitment to employee networks around the world, open dialogues to enhance understanding, ongoing inclusion and diversity-focused training and cultural heritage celebrations.

We have consistently improved enterprise-wide trends around representation and promotions for both women and employees of diverse ethnic backgrounds, and pride ourselves on promoting and hiring highly-qualified candidates who enhance our culture, add diverse perspectives and deliver on our business strategy.

Women and leaders of diverse ethnic backgrounds make up over half of Equifax’s senior leadership team, including all three of our business unit leaders.

Consistent with our commitment to diversity, we recently implemented the requirement for diverse candidate slates for all higher level management roles.

Workforce Health and Safety

In fiscal year 2020, the COVID-19 pandemic had a significant impact on our people.

The safety and wellbeing of our employees remains paramount, and we took several actions to best serve our employees.

These included:

• ensured that no employees lost their roles or experienced furloughs due to COVID by actively shifting employees to other roles to protect full employment;

• transitioned all non-essential employees to work from home early in the pandemic;

• established rigorous social distancing, sanitization and restricted occupancy requirements for all worksites;

• extended extra paid time off when person or family member under their care contracted COVID;

• provided all employees globally an extra day of paid time off to support mental health and well-being;

• provided nearly 4,000 employees around the world who are not bonus eligible a special employee appreciation bonus.

In fiscal year 2021, the COVID-19 pandemic continued to have a significant impact on our people.

The safety and well-being of our employees remains paramount and we comply with all federal, state and local jurisdictional safety and health requirements.

See “Recent Events and Company Outlook” included in Item 7., “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for additional detail regarding the impact of COVID-19 on our company.

2017 Cybersecurity Incident

In 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.

Criminals exploited a software vulnerability in a U.S.

website application to gain unauthorized access to our network.

In March 2017, the U.S.

Department of Homeland Security distributed a notice concerning the software vulnerability.

We undertook efforts to identify and remediate vulnerable systems;

however, the vulnerability in the website application that was exploited was not identified by our security processes.

We discovered unusual network activity in late-July 2017 and upon discovery promptly investigated the activity.

Once the activity was identified as potential unauthorized access, we acted to stop the intrusion and engaged a leading, independent cybersecurity firm to conduct a forensic investigation to determine the scope of the unauthorized access, including the specific information impacted.

Based on our forensic investigation, the unauthorized access occurred from mid-May 2017 through July 2017.

No evidence was found that the Company’s core consumer, employment and income, or commercial reporting databases were accessed.

On February 10, 2020, the U.S.

Department of Justice announced that four members of the Chinese People’s Liberation Army were indicted on criminal charges for their involvement in the 2017 cybersecurity incident.

The Company has taken actions to provide consumers with tools to protect their credit data.

Immediately following the announcement of the 2017 cybersecurity incident, the Company devoted substantial resources to notify people of the incident

and to provide free services to assist people in monitoring their credit and identity information.

Since then, the Company has been focused on implementing significant improvements to its data security systems, technology platforms and risk management processes, in an effort to underpin its business strategy.

Forward-Looking Statements

This report contains information that may constitute “forward-looking statements.” Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “may” and similar expressions identify forward-looking statements, which generally are not historical in nature.

All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to future operating results, the 2017 cybersecurity incident, improvements in our information technology and data security infrastructure, including as a part of our cloud data and technology transformation, our strategy, our ability to mitigate or manage disruptions posed by COVID-19, the impact of COVID-19 and changes in U.S.

and worldwide economic conditions that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services, our culture, our ability to innovate, the market acceptance of new products and services and similar statements about our business plans are forward-looking statements.

All statements that address future operating performance and events or developments that we expect or anticipate will occur in the future, including statements relating to future operating results, improvements in our information technology and data security infrastructure, including as a part of our cloud data and technology transformation, our strategy, the expected financial and operational benefits, synergies and growth from our acquisitions, our ability to mitigate or manage disruptions posed by COVID-19, the extent of the impact of COVID-19, changes in U.S.

and worldwide economic conditions, such as rising interest rates and inflation, that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services, our culture, our ability to innovate, the market acceptance of new products and services and similar statements about our business plans are forward-looking statements.

Management believes that these forward-looking statements are reasonable as and when made.

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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 1. Business