What changed in this filing

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Item 1. Financial Statements

2024-07-22 compared with 2024-04-22 · 169 added, 76 removed, 486 unchanged (34% of the section changed)

11 unchanged sentences

Interest expense ( 57.3 ) ( 60.7 )

Other (expense) income, net

Consolidated income before income taxes 224.6 192.1

Provision for income taxes ( 59.4 ) ( 52.7 )

Consolidated net income 165.2 139.4

Net income attributable to noncontrolling interests including redeemable noncontrolling interests ( 1.3 ) ( 1.1 )

Net income attributable to Equifax $ 163.9 $ 138.3

Basic earnings per common share:

Net income attributable to Equifax $ 1.32 $ 1.13

Weighted-average shares used in computing basic earnings per share 123.7 122.7

Diluted earnings per common share:

Net income attributable to Equifax $ 1.31 $ 1.12

Weighted-average shares used in computing diluted earnings per share 124.8 123.8

Dividends per common share $ 0.39 $ 0.39

See Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF INCOME

Six Months Ended June 30,

(In millions, except per share amounts)

Operating revenue $ 2,819.9 $ 2,619.6

Operating expenses:

Cost of services (exclusive of depreciation and amortization below) 1,258.6 1,168.4

Selling, general and administrative expenses 725.2 709.2

Depreciation and amortization 329.2 299.8

Total operating expenses 2,313.0 2,177.4

Operating income 506.9 442.2

Interest expense ( 117.1 ) ( 118.3 )

Other income, net 1.3 20.4

13 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31,

Three Months Ended June 30,

Shareholders Noncontrolling

6 unchanged sentences

Foreign currency translation adjustment ( 17.8 ) ( 11.4 ) ( 29.2 ) 15.2 ( 0.2 ) 15.0

Comprehensive income (loss) $ 146.1 $ ( 10.1 ) $ 136.0 $ 153.5 $ 0.9 $ 154.4

Six Months Ended June 30,

Shareholders Noncontrolling

Interests including Redeemable Noncontrolling Interests

Total Equifax

Shareholders Noncontrolling

Interests including Redeemable Noncontrolling Interests

(In millions)

Net income $ 288.7 $ 2.5 $ 291.2 $ 250.6 $ 2.3 $ 252.9

Other comprehensive income (loss):

Foreign currency translation adjustment ( 113.3 ) ( 14.9 ) ( 128.2 ) 27.8 0.1 27.9

Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net 0.1 — 0.1 — — —

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

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(In millions, except par values) March 31, 2024 December 31, 2023

(In millions, except par values) June 30, 2024 December 31, 2023

Current assets:

Cash and cash equivalents $ 181.9 $ 216.8

Trade accounts receivable, net of allowance for doubtful accounts of $ 16.4 and $ 16.7 at March 31, 2024 and December 31, 2023, respectively

Trade accounts receivable, net of allowance for doubtful accounts of $ 16.7 at June 30, 2024 and December 31, 2023

1,012.4 908.2

36 unchanged sentences

Authorized shares - 300.0 ;

Issued shares - 189.3 at March 31, 2024 and December 31, 2023;

Outstanding shares - 123.6 and 123.3 at March 31, 2024 and December 31, 2023, respectively

Issued shares - 189.3 at June 30, 2024 and December 31, 2023;

Outstanding shares - 123.7 and 123.3 at June 30, 2024 and December 31, 2023, respectively

Paid-in capital 1,856.8 1,761.3

1 unchanged sentence

Accumulated other comprehensive loss ( 544.3 ) ( 431.2 )

Treasury stock, at cost, 65.1 shares and 65.4 shares at March 31, 2024 and December 31, 2023, respectively

Treasury stock, at cost, 65.0 shares and 65.4 shares at June 30, 2024 and December 31, 2023, respectively

( 2,647.6 ) ( 2,635.3 )

Stock held by employee benefits trusts, at cost, 0.6 shares at March 31, 2024 and December 31, 2023

Stock held by employee benefits trusts, at cost, 0.6 shares at June 30, 2024 and December 31, 2023

( 5.9 ) ( 5.9 )

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(In millions)

5 unchanged sentences

Deferred income taxes ( 39.6 ) ( 5.6 )

Gain on fair market value adjustment of equity investments — ( 3.1 )

Gain on fair market value adjustment and gain on sale of equity investments — ( 13.6 )

Changes in assets and liabilities, excluding effects of acquisitions:

6 unchanged sentences

Acquisitions, net of cash acquired — ( 4.3 )

Cash received from divestitures — 6.9

Cash used in investing activities ( 268.6 ) ( 318.7 )

14 unchanged sentences

See Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

For the Three Months Ended March 31, 2024

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the Three Months Ended June 30, 2024

Equifax Shareholders

6 unchanged sentences

(In millions, except per share amounts)

Balance, December 31, 2023 123.3 $ 236.6 $ 1,761.3 $ 5,608.6 $ ( 431.2 ) $ ( 2,635.3 ) $ ( 5.9 ) $ 18.3 $ 4,552.4

Balance, March 31, 2024 123.6 $ 236.6 $ 1,824.7 $ 5,685.0 $ ( 526.5 ) $ ( 2,652.4 ) $ ( 5.9 ) $ 19.1 $ 4,580.6

Net income — — — 163.9 — — — 1.1 165.0

6 unchanged sentences

Dividends paid to noncontrolling interests — — — — — — — ( 3.0 ) ( 3.0 )

Balance, March 31, 2024 123.6 $ 236.6 $ 1,824.7 $ 5,685.0 $ ( 526.5 ) $ ( 2,652.4 ) $ ( 5.9 ) $ 19.1 $ 4,580.6

For the Three Months Ended March 31, 2023

Balance, June 30, 2024 123.7 $ 236.6 $ 1,856.8 $ 5,800.4 $ ( 544.3 ) $ ( 2,647.6 ) $ ( 5.9 ) $ 16.8 $ 4,712.8

For the Three Months Ended June 30, 2023

Equifax Shareholders

6 unchanged sentences

(In millions, except per share amounts)

Balance, March 31, 2023 122.6 $ 236.6 $ 1,631.1 $ 5,320.3 $ ( 461.1 ) $ ( 2,657.0 ) $ ( 5.9 ) $ 18.2 $ 4,082.2

Net income — — — 138.3 — — — 1.1 139.4

Other comprehensive income (loss) — — — — 15.2 — — ( 0.2 ) 15.0

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.1 — 6.6 — — 2.4 — — 9.0

Cash dividends ($ 0.39 per share)

— — — ( 48.1 ) — — — — ( 48.1 )

Dividends paid to employee benefits trusts — — 0.2 — — — — — 0.2

Stock-based compensation expense — — 12.6 — — — — — 12.6

Dividends paid to noncontrolling interests — — — — — — — ( 2.0 ) ( 2.0 )

Balance, June 30, 2023 122.7 $ 236.6 $ 1,650.5 $ 5,410.5 $ ( 445.9 ) $ ( 2,654.6 ) $ ( 5.9 ) $ 17.1 $ 4,208.3

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

For the Six Months Ended June 30, 2024

Equifax Shareholders

Accumulated Other Comprehensive Loss Stock

Held By Employee Benefits Trusts Total Shareholders'

Outstanding Amount Paid-In

Capital Retained

Earnings Treasury

Stock Noncontrolling

(In millions, except per share amounts)

Balance, December 31, 2023 123.3 $ 236.6 $ 1,761.3 $ 5,608.6 $ ( 431.2 ) $ ( 2,635.3 ) $ ( 5.9 ) $ 18.3 $ 4,552.4

Net income — — — 288.7 — — — 2.2 290.9

Other comprehensive loss — — — — ( 113.1 ) — — ( 0.3 ) ( 113.4 )

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.4 — 34.7 — — ( 12.3 ) — — 22.4

Cash dividends ($ 0.78 per share)

— — — ( 96.9 ) — — — — ( 96.9 )

Dividends paid to employee benefits trusts — — 0.5 — — — — — 0.5

Stock-based compensation expense — — 60.3 — — — — — 60.3

Dividends paid to noncontrolling interests — — — — — — — ( 3.4 ) ( 3.4 )

Balance, June 30, 2024 123.7 $ 236.6 $ 1,856.8 $ 5,800.4 $ ( 544.3 ) $ ( 2,647.6 ) $ ( 5.9 ) $ 16.8 $ 4,712.8

For the Six Months Ended June 30, 2023

Equifax Shareholders

Accumulated Other Comprehensive Loss Stock

Held By Employee Benefits Trusts

Outstanding Amount Paid-In

Capital Retained

Earnings Treasury

Stock Noncontrolling

Interests Total Shareholders'

(In millions, except per share amounts)

Balance, December 31, 2022 122.5 $ 236.6 $ 1,594.2 $ 5,256.0 $ ( 473.7 ) $ ( 2,650.7 ) $ ( 5.9 ) $ 16.8 $ 3,973.3

Net income — — — 250.6 — — — 2.3 252.9

Other comprehensive income — — — — 27.8 — — 0.1 27.9

4 unchanged sentences

Stock-based compensation expense — — 52.2 — — — — — 52.2

Balance, March 31, 2023 122.6 $ 236.6 $ 1,631.1 $ 5,320.3 $ ( 461.1 ) $ ( 2,657.0 ) $ ( 5.9 ) $ 18.2 $ 4,082.2

Dividends paid to noncontrolling interests — — — — — — — ( 2.1 ) ( 2.1 )

Balance, June 30, 2023 122.7 $ 236.6 $ 1,650.5 $ 5,410.5 $ ( 445.9 ) $ ( 2,654.6 ) $ ( 5.9 ) $ 17.1 $ 4,208.3

Accumulated Other Comprehensive Loss consists of the following components:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(In millions)

Foreign currency translation $ ( 540.0 ) $ ( 426.7 )

Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $ 1.1 and $ 1.2 at March 31, 2024 and December 31, 2023, respectively

Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $ 1.1 and $ 1.2 at June 30, 2024 and December 31, 2023, respectively

( 3.5 ) ( 3.6 )

Cash flow hedging transactions, net of tax of $ 0.5 at March 31, 2024 and December 31, 2023

Cash flow hedging transactions, net of tax of $ 0.5 at June 30, 2024 and December 31, 2023

( 0.8 ) ( 0.9 )

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

June 30, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5 unchanged sentences

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

As of March 31, 2024, we operated in the following countries:

As of June 30, 2024, we operated in the following countries:

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

13 unchanged sentences

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

Three Months Ended March 31,

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

2024 2023 2024 2023

(In millions)

3 unchanged sentences

Weighted-average shares outstanding (diluted) 124.8 123.8 124.7 123.7

For the three months ended March 31, 2024 and 2023, stock options that were anti-dilutive were not material.

For the three and six months ended June 30, 2024 and 2023, stock options that were anti-dilutive were not material.

Financial Instruments.

2 unchanged sentences

The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for publicly traded instruments, and for non-publicly traded instruments, through valuation techniques depending on the specific characteristics of the debt instrument, taking into account credit risk.

As of March 31, 2024 and December 31, 2023, the fair value of our long-term debt, including the current portion, based on observable inputs was $ 5.3 billion, compared to its carrying value of $ 5.5 billion for both periods.

As of June 30, 2024 and December 31, 2023, the fair value of our long-term debt, including the current portion, based on observable inputs was $ 5.3 billion compared to its carrying value of $ 5.5 billion for both periods.

Fair Value Measurements.

2 unchanged sentences

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

We did not complete any acquisitions during the three months ended March 31, 2024 and we completed two acquisitions during the year ended December 31, 2023.

We did not complete any acquisitions during the six months ended June 30, 2024 and we completed two acquisitions during the year ended December 31, 2023.

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

13 unchanged sentences

Increases to the allowance for doubtful accounts are recorded as bad debt expense, which are included in selling, general and administrative expenses on the accompanying Consolidated Statements of Income.

Below is a rollforward of our allowance for doubtful accounts for the three months ended March 31, 2024 and 2023, respectively.

Three Months Ended March 31,

Below is a rollforward of our allowance for doubtful accounts for the three and six months ended June 30, 2024 and 2023, respectively.

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

2024 2023 2024 2023

(In millions)

6 unchanged sentences

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

As of March 31, 2024, these assets were $ 29.9 million, with a corresponding balance in other current liabilities.

As of June 30, 2024, these assets were $ 36.8 million, with a corresponding balance in other current liabilities.

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

6 unchanged sentences

recorded this equity investment within Other Assets at fair value, using observable Level 1 inputs.

The carrying value of the investment was $ 77.3 million as of March 31, 2023, resulting in an unrealized gain of $ 3.1 million for the three months ended March 31, 2023, which was recorded in Other income, net within the Consolidated Statements of Income.

The carrying value of the investment was $ 87.7 million as of June 30, 2023, resulting in an unrealized gain of $ 4.3 million and $ 7.2 million for the three and six months ended June 30, 2023, respectively, which was recorded in Other income, net within the Consolidated Statements of Income.

During the quarter ended June 30, 2023, we sold our interest in an equity investment.

The overall sale proceeds exceeded the total carrying value of the investments and we recorded a gain of $ 6.2 million in Other income, net within the Consolidated Statements of Income.

Other Current Liabilities.

1 unchanged sentence

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

As of March 31, 2024, these funds were $ 29.9 million.

As of June 30, 2024, these funds were $ 36.8 million.

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

11 unchanged sentences

None of the current period adjustments reflect a redemption value in excess of fair value.

The Company's redeemable noncontrolling interests activities for the three months ended March 31, 2024 are summarized as follows:

Three Months Ended March 31,

The Company's redeemable noncontrolling interests activities for the three and six months ended June 30, 2024 are summarized as follows:

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

Redeemable noncontrolling interests:

1 unchanged sentence

Redeemable noncontrolling interests, beginning of period $ 131.6 $ 135.1

Net income attributable to redeemable noncontrolling interest 0.2 0.3

Effect of foreign currency translation attributable to redeemable noncontrolling interest ( 11.0 ) ( 14.6 )

19 unchanged sentences

The fact patterns in the illustrative example focus on the scope conditions in paragraph 718-10-15-3.

The illustrative example is intended

to reduce (1) complexity in determining whether a profits interest award is subject to the guidance in Topic 718 and (2) existing diversity in practice.

The illustrative example is intended to reduce (1) complexity in determining whether a profits interest award is subject to the guidance in Topic 718 and (2) existing diversity in practice.

The amendments in this update are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods.

We are still evaluating whether this update will impact the way we account for our stock-based compensation awards.

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.

Income Taxes .

27 unchanged sentences

Based on the information that management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, we disaggregate revenue as follows:

Three Months Ended March 31, Change

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

Consolidated Operating Revenue 2024 2023 $ % 2024 2023 $ %

(In millions)

(In millions) (In millions)

Verification Services $ 515.9 $ 474.0 $ 41.9 9 % $ 992.3 $ 929.8 $ 62.5 7 %

12 unchanged sentences

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

We expect to recognize as revenue the following amounts related to our remaining performance obligations as of March 31, 2024, inclusive of foreign exchange impact:

We expect to recognize as revenue the following amounts related to our remaining performance obligations as of June 30, 2024, inclusive of foreign exchange impact:

Performance Obligation Amount

12 unchanged sentences

We perform our annual goodwill impairment test as of December 1.

Changes in the amount of goodwill for the three months ended March 31, 2024, are as follows:

Changes in the amount of goodwill for the six months ended June 30, 2024, are as follows:

Workforce Solutions U.S.

3 unchanged sentences

Foreign currency translation ( 0.1 ) — ( 84.4 ) ( 84.5 )

Balance, March 31, 2024 $ 2,520.1 $ 2,006.2 $ 2,235.0 $ 6,761.3

Balance, June 30, 2024 $ 2,520.1 $ 2,006.2 $ 2,220.2 $ 6,746.5

Indefinite-Lived Intangible Assets.

4 unchanged sentences

We perform our annual indefinite-lived intangible asset annual impairment test as of December 1, at which point the estimated fair value of our indefinite-lived intangibles exceeded the carrying value.

Our indefinite-lived intangible asset carrying amounts did not change materially during the three months ended March 31, 2024.

Our indefinite-lived intangible asset carrying amounts did not change during the six months ended June 30, 2024.

Purchased Intangible Assets.

4 unchanged sentences

For additional information about the useful lives related to our purchased intangible assets, see Note 1 of the Notes to Consolidated Financial Statements in our 2023 Form 10-K.

Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 consisted of the following:

March 31, 2024 December 31, 2023

Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at June 30, 2024 and December 31, 2023 consisted of the following:

June 30, 2024 December 31, 2023

Gross Accumulated

9 unchanged sentences

Total definite-lived intangible assets $ 3,160.7 $ ( 1,470.4 ) $ 1,690.3 $ 3,219.9 $ ( 1,361.1 ) $ 1,858.8

Amortization expense related to purchased intangible assets was $ 67.0 million and $ 60.7 million during the three months ended March 31, 2024 and 2023, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at March 31, 2024 is as follows:

Amortization expense related to purchased intangible assets was $ 65.3 million and $ 60.3 million during the three months ended June 30, 2024 and 2023, respectively.

Amortization expense related to purchased intangible assets was $ 132.4 million and $ 121.0 million during the six months ended June 30, 2024 and 2023, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at June 30, 2024 is as follows:

Years ending December 31, Amount

1 unchanged sentence

Thereafter 678.5

Debt outstanding at March 31, 2024 and December 31, 2023 was as follows:

March 31, 2024 December 31, 2023

Debt outstanding at June 30, 2024 and December 31, 2023 was as follows:

June 30, 2024 December 31, 2023

(In millions)

16 unchanged sentences

Senior Credit Facilities.

We have access to a $ 1.5 billion five-year unsecured revolving credit facility (the “Revolver”) and a $ 700.0 million delayed draw term loan (“Term Loan”), collectively known as the “Senior Credit Facilities,” both of which mature in August 2026.

In March 2023, we amended our Senior Credit Facilities agreement to adjust our debt covenant requirements and incorporate the Secured Overnight Financing Rate (SOFR) into our agreement, among other changes.

We have access to a $ 1.5 billion five-year unsecured revolving credit facility (the “Revolver”), which matures in August 2027, and a $ 700.0 million delayed draw term loan (“Term Loan”), which matures in August 2026, collectively known as the “Senior Credit Facilities.” In March 2023, we amended our Senior Credit Facilities agreement to adjust our debt covenant requirements and incorporate the Secured Overnight Financing Rate (SOFR) into our agreement, among other changes.

Borrowings under the Senior Credit Facilities may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions and for other general corporate purposes.

The Revolver includes an option to request a maximum of three one-year extensions of the maturity date any time after the first anniversary of the closing date of the Revolver.

In May 2024, we exercised our first option to extend the maturity date by one year , from August 2026 to August 2027, and amended the Revolver agreement to replace a discontinued reference rate for Canadian Dollar-denominated commitments.

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

As of March 31, 2024, there were $ 112.5 million of outstanding CP notes, $ 0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver and $ 691.3 million outstanding under the Term Loan.

Availability under the Revolver was $ 1,387.1 million at March 31, 2024.

As of June 30, 2024, there were no outstanding CP notes, $ 0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver, and $ 686.9 million outstanding under the Term Loan.

Availability under the Revolver was $ 1,499.6 million at June 30, 2024.

Commercial Paper Program.

1 unchanged sentence

Maturities of CP can range from overnight to 397 days.

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

At March 31, 2024, there were $ 112.5 million of outstanding CP notes.

disclosed the net short-term borrowing activity for the three months ended March 31, 2024 in the Consolidated Statements of Cash Flows.

There were no CP borrowings or payments with a maturity date greater than 90 days and less than 365 days for the three months ended March 31, 2024.

The amount disclosed includes CP borrowings of $ 97.0 million and payments of $ 108.8 million with a maturity date greater than 90 days and less than 365 days for the three months ended March 31, 2023.

Because the CP is backstopped by our Revolver, the amount of CP

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

At June 30, 2024, there were no outstanding CP notes.

We have disclosed the net short-term borrowing activity for the six months ended June 30, 2024 in the Consolidated Statements of Cash Flows.

There were no CP borrowings or payments with a maturity date greater than 90 days and less than 365 days for the six months ended June 30, 2024 or for the six months ended June 30, 2023.

For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our 2023 Form 10-K.

7 unchanged sentences

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

In December 2021, we received a Civil Investigative Demand (a “CID”) from the Consumer Financial Protection Bureau (“CFPB”) as part of its investigation into our consumer disputes process at our USIS business unit in order to determine whether we have followed Fair Credit Reporting Act requirements for the proper handling of consumer disputes.

The CID requested the production of documents and answers to written questions.

In January 2023, the CFPB informed us that its enforcement division would be investigating our previously-disclosed coding issue identified within a legacy server environment in the U.S.

that impacted how some credit scores were calculated during a three-week period in 2022.

The staff of the CFPB has informed us that the CFPB intends to seek injunctive and civil money penalties against us based on allegations related to the consumer disputes investigation and the coding issue investigation.

We expect to engage in discussions with the CFPB and we are cooperating with the CFPB in its investigations.

Data Processing, Outsourcing Services and Other Agreements

9 unchanged sentences

We will from time to time issue standby letters of credit, performance or surety bonds or other guarantees in the normal course of business.

The aggregate notional amount of all standby letters of credit, performance bonds and surety bonds is not material at March 31, 2024 and these instruments generally have a remaining maturity of one year or less.

The aggregate notional amount of all standby letters of credit, performance bonds and surety bonds is not material at June 30, 2024 and these instruments generally have a remaining maturity of one year or less.

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

The maximum potential future payments we could be required to make under the guarantees is not material at March 31, 2024.

The maximum potential future payments we could be required to make under the guarantees is not material at June 30, 2024.

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

6 unchanged sentences

Certain of our credit agreements include provisions which require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to certain changes in law or regulations.

In certain of

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

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

lenders to withholding taxes.

8 unchanged sentences

We have recorded accruals in our Consolidated Financial Statements for those matters in which it is probable that we have incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated.

While it is reasonably possible that we will incur losses associated for certain of these matters, it is not possible at this time to estimate the amount of loss or range of possible losses that might result from their resolution.

The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable.

For additional information about these and other commitments and contingencies, see Note 6 of the Notes to Consolidated Financial Statements in our 2023 Form 10-K.

1 unchanged sentence

federal, state and international income taxes.

We are generally no longer subject to federal, state, or international income tax examinations by tax authorities for years before 2020.

We are generally no longer subject to federal, state, or international income tax examinations by tax authorities for years before 2020 with a few exceptions.

Due to the potential for resolution of state and foreign examinations, and the expiration of various statutes of limitations, it is reasonably possible that our gross unrecognized tax benefit balance may change within the next twelve months by a range of $ 0 to $ 10.0 million.

Effective Tax Rate

Our effective income tax rate was 24.3 % for the three months ended March 31, 2024, compared to 25.4 % for the three months ended March 31, 2023.

Our effective tax rate was lower for the first three months of 2024 as compared to the same periods in 2023 due to more favorable discrete benefits, none of which were individually material, as compared to the prior year, which were partially offset by an increase in the foreign rate differential.

Our effective income tax rate was 26.4 % for the three months ended June 30, 2024, compared to 27.4 % for the three months ended June 30, 2023.

Our effective income tax rate was 25.5 % for the six months ended June 30, 2024, compared to 26.6 % for the six months ended June 30, 2023.

Our effective tax rate was lower for the three and six months ended June 30, 2024 as compared to the same periods in 2023 due to more favorable discrete benefits in the current year primarily due to the expiration of the statute of limitations related to uncertain tax positions.

ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the three months ended March 31, 2024, are as follows:

Changes in accumulated other comprehensive loss by component, after tax, for the six months ended June 30, 2024, are as follows:

currency translation adjustment Pension and other

5 unchanged sentences

Other comprehensive (loss) income ( 113.3 ) 0.1 0.1 ( 113.1 )

Balance, March 31, 2024 $ ( 522.1 ) $ ( 3.6 ) $ ( 0.8 ) $ ( 526.5 )

Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of March 31, 2024.

Balance, June 30, 2024 $ ( 540.0 ) $ ( 3.5 ) $ ( 0.8 ) $ ( 544.3 )

The change in accumulated other comprehensive loss related to noncontrolling interests including redeemable noncontrolling interests was $ 14.9 million as of June 30, 2024.

RESTRUCTURING CHARGES

3 unchanged sentences

These charges were recorded to general corporate expense and resulted from our continuing efforts to realign our internal resources to support the Company’s strategic objectives and primarily relate to a reduction in headcount and contract termination and associated costs.

As of March 31, 2024, $ 28.0 million of the 2023 restructuring charges have been paid with the remaining future payments expected to be completed by the fourth quarter of 2024.

The changes during the three months ended March 31, 2024 in the liabilities associated with the restructuring charges recorded during 2023, including expenses incurred and cash payments, are as follows:

As of June 30, 2024, substantially all of the 2023 restructuring charges have been paid with the remaining future payments expected to be completed by the fourth quarter of 2024.

The changes during the six months ended June 30, 2024 in the liabilities associated with the restructuring charges recorded during 2023, including expenses incurred and cash payments, are as follows:

Liability balance as of 12/31/2023 Expenses Incurred Cash Payments Liability balance as of 6/30/2024

26 unchanged sentences

Asia Pacific, Europe, Canada, and Latin America.

The International segment includes information services products, which includes consumer and commercial services (such as credit

and financial information, credit scoring and credit modeling services), credit and other marketing products and services.

The International segment includes information services products, which includes consumer and commercial services (such as credit and financial information, credit scoring and credit modeling services), credit and other marketing products and services.

In Asia Pacific, Europe and Latin America, we also provide information, technology and services to support debt collections and recovery management.

In Europe and Canada, we also provide credit monitoring products to resellers or directly to consumers.

Operating revenue and operating income by operating segment during the three months ended March 31, 2024 and 2023 are as follows:

Three Months Ended

(In millions) March 31,

Operating revenue and operating income by operating segment during the three and six months ended June 30, 2024 and 2023 are as follows:

Three Months Ended Six Months Ended

(In millions) June 30, June 30,

Operating revenue:

2024 2023 2024 2023

Workforce Solutions $ 612.9 $ 582.8 $ 1,215.7 $ 1,179.1

2 unchanged sentences

Total operating revenue $ 1,430.5 $ 1,317.6 $ 2,819.9 $ 2,619.6

Three Months Ended

(In millions) March 31,

Three Months Ended Six Months Ended

(In millions) June 30, June 30,

Operating income:

2024 2023 2024 2023

Workforce Solutions $ 272.7 $ 244.6 $ 527.8 $ 493.4

3 unchanged sentences

Total operating income $ 282.2 $ 236.9 $ 506.9 $ 442.2

Total assets by operating segment at March 31, 2024 and December 31, 2023 are as follows:

March 31, December 31,

Total assets by operating segment at June 30, 2024 and December 31, 2023 are as follows:

June 30, December 31,

(In millions) 2024 2023

6 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements