What changed in this filing

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Item 1. Financial Statements

2024-10-21 compared with 2024-07-22 · 112 added, 93 removed, 562 unchanged (27% of the section changed)

2 unchanged sentences

Three Months Ended

September 30,

(In millions, except per share amounts)

7 unchanged sentences

Interest expense ( 56.3 ) ( 62.8 )

Other (expense) income, net

Other income, net

Consolidated income before income taxes 193.8 190.7

12 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions, except per share amounts)

22 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30,

Three Months Ended September 30,

Shareholders Noncontrolling

7 unchanged sentences

Comprehensive income (loss) $ 220.5 $ 1.0 $ 221.5 $ 44.2 $ ( 0.5 ) $ 43.7

Six Months Ended June 30,

Nine Months Ended September 30,

Shareholders Noncontrolling

12 unchanged sentences

CONSOLIDATED BALANCE SHEETS

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

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

Current assets:

Cash and cash equivalents $ 468.2 $ 216.8

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

Trade accounts receivable, net of allowance for doubtful accounts of $ 17.1 and $ 16.7 at September 30, 2024 and December 31, 2023, respectively

Prepaid expenses 133.7 142.5

35 unchanged sentences

Authorized shares - 300.0 ;

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

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

Outstanding shares - 123.9 and 123.3 at September 30, 2024 and December 31, 2023, respectively

Paid-in capital 1,897.1 1,761.3

1 unchanged sentence

Accumulated other comprehensive loss ( 465.1 ) ( 431.2 )

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

Treasury stock, at cost, 64.8 shares and 65.4 shares at September 30, 2024 and December 31, 2023, respectively

( 2,646.9 ) ( 2,635.3 )

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

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

( 5.9 ) ( 5.9 )

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

19 unchanged sentences

Payments on long-term debt ( 695.6 ) ( 575.0 )

Borrowings on long-term debt — 872.9

Proceeds from issuance of long-term debt 649.8 872.9

Dividends paid to Equifax shareholders ( 144.8 ) ( 143.7 )

3 unchanged sentences

Debt issuance costs ( 5.2 ) ( 6.0 )

Cash used in financing activities ( 280.7 ) ( 217.2 )

Cash (used in) provided by financing activities ( 345.0 ) 63.5

Effect of foreign currency exchange rates on cash and cash equivalents ( 10.7 ) ( 6.1 )

Decrease in cash and cash equivalents ( 34.9 ) ( 121.1 )

Increase in cash and cash equivalents 251.4 127.4

Cash and cash equivalents, beginning of period 216.8 285.2

2 unchanged sentences

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

Equifax Shareholders

6 unchanged sentences

(In millions, except per share amounts)

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

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

Net income — — — 141.3 — — — 1.4 142.7

Other comprehensive loss — — — — ( 17.8 ) — — ( 0.4 ) ( 18.2 )

Other comprehensive income (loss) — — — — 79.2 — — ( 0.1 ) 79.1

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.2 — 28.4 — — 0.7 — — 29.1

4 unchanged sentences

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

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

Balance, September 30, 2024 123.9 $ 236.6 $ 1,897.1 $ 5,893.2 $ ( 465.1 ) $ ( 2,646.9 ) $ ( 5.9 ) $ 17.1 $ 4,926.1

For the Three Months Ended September 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

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

Net income — — — 162.2 — — — 2.1 164.3

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

Other comprehensive loss — — — — ( 118.0 ) — — ( 2.6 ) ( 120.6 )

Shares issued under stock and benefit plans, net of minimum tax withholdings — — 1.6 — — 0.7 — — 2.3

3 unchanged sentences

Stock-based compensation expense — — 9.1 — — — — — 9.1

Shares issued in acquisition of Boa Vista Serviços 0.5 — 75.3 — — 19.3 — — 94.6

Dividends paid to noncontrolling interests — — — — — — — ( 0.8 ) ( 0.8 )

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

Balance, September 30, 2023 123.2 $ 236.6 $ 1,736.6 $ 5,524.5 $ ( 563.9 ) $ ( 2,634.6 ) $ ( 5.9 ) $ 15.8 $ 4,309.1

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

Equifax Shareholders

15 unchanged sentences

Dividends paid to noncontrolling interests — — — — — — — ( 4.4 ) ( 4.4 )

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

Balance, September 30, 2024 123.9 $ 236.6 $ 1,897.1 $ 5,893.2 $ ( 465.1 ) $ ( 2,646.9 ) $ ( 5.9 ) $ 17.1 $ 4,926.1

For the Nine Months Ended September 30, 2023

Equifax Shareholders

9 unchanged sentences

Net income — — — 412.9 — — — 4.3 417.2

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

Other comprehensive loss — — — — ( 90.2 ) — — ( 2.5 ) ( 92.7 )

Shares issued under stock and benefit plans, net of minimum tax withholdings 0.2 — 5.1 — — ( 3.2 ) — — 1.9

3 unchanged sentences

Stock-based compensation expense — — 61.3 — — — — — 61.3

Shares issued in acquisition of Boa Vista Serviços 0.5 — 75.3 — — 19.3 — — 94.6

Dividends paid to noncontrolling interests — — — — — — — ( 2.8 ) ( 2.8 )

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

Balance, September 30, 2023 123.2 $ 236.6 $ 1,736.6 $ 5,524.5 $ ( 563.9 ) $ ( 2,634.6 ) $ ( 5.9 ) $ 15.8 $ 4,309.1

Accumulated Other Comprehensive Loss consists of the following components:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In millions)

Foreign currency translation $ ( 460.8 ) $ ( 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 June 30, 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 September 30, 2024 and December 31, 2023, respectively

( 3.5 ) ( 3.6 )

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

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

( 0.8 ) ( 0.9 )

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2024

September 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 June 30, 2024, we operated in the following countries:

As of September 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 June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

4 unchanged sentences

Weighted-average shares outstanding (diluted) 125.2 123.9 124.9 123.6

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

For the three and nine months ended September 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 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.

As of September 30, 2024 and December 31, 2023, the fair value of our long-term debt, including the current portion, based on observable inputs was $ 5.4 billion and $ 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 six months ended June 30, 2024 and we completed two acquisitions during the year ended December 31, 2023.

We did not complete any acquisitions during the nine months ended September 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 and six months ended June 30, 2024 and 2023, respectively.

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

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

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

2024 2023 2024 2023

7 unchanged sentences

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

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

As of September 30, 2024, these assets were $ 58.3 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 $ 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 carrying value of the investment was adjusted to $ 88.9 million as of the closing date, based on quoted market prices, resulting in a loss of $ 0.2 million and a gain of $ 7.0 million for the three and nine months ended September 30, 2023, respectively, which was recorded in Other income, net within the Consolidated Statements of Income.

During the nine months ended September 30, 2023, in addition to the BVS activity mentioned above, we sold our interest in a separate 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.

2 unchanged sentences

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

As of September 30, 2024, these funds were $ 58.3 million.

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

Redeemable Noncontrolling Interest.

As part of the merger consideration issued to complete the acquisition of BVS, we issued shares of one of our subsidiaries, Equifax do Brasil, thus resulting in a noncontrolling interest.

As part of the merger consideration issued to complete the acquisition of BVS, we issued shares of one of our subsidiaries, Equifax do Brasil S.A.

("Equifax do Brasil"), thus resulting in a noncontrolling interest.

We recognized the noncontrolling interest at fair value at the date of acquisition.

8 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 and six months ended June 30, 2024 are summarized as follows:

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

Redeemable noncontrolling interests:

The Company's redeemable noncontrolling interests activities for the three and nine months ended September 30, 2024 and 2023, respectively, are summarized as follows:

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

2024 2023 2024 2023

(In millions)

Redeemable noncontrolling interests, beginning of period $ 120.8 $ — $ 135.1 $ —

Fair value of the redeemable noncontrolling interest at the acquisition date — 176.4 — 176.4

Net income attributable to redeemable noncontrolling interest — 0.9 0.2 0.9

11 unchanged sentences

2020-04 from December 31, 2022 to December 31, 2024.

After this date, entities will no longer be permitted to apply the relief in Topic 848.

After this date, entities will no longer be permitted to

apply the relief in Topic 848.

The adoption of the standard did not have a material impact on our Consolidated Financial Statements.

27 unchanged sentences

The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024.

We are still evaluating the impact, but do not expect the adoption of the standard to have a material impact on our Consolidated Financial Statements.

We are still evaluating the impact on our financial statement disclosures.

Business Combinations .

8 unchanged sentences

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

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

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

Consolidated Operating Revenue 2024 2023 $ % 2024 2023 $ %

14 unchanged sentences

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

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

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

Performance Obligation Amount

8 unchanged sentences

In the first quarter of 2023, the Company acquired a company in Canada within the International operating segment.

On August 7, 2023, we acquired the remaining interest of our investment in BVS, a consumer and commercial credit information company in Brazil, within the International operating segment for approximately $ 510 million in cash, 2,171,615 shares of Equifax do Brasil, and 479,725 shares of Equifax Inc.

common stock.

We previously owned a 10 % investment in BVS.

GOODWILL AND INTANGIBLE ASSETS

2 unchanged sentences

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

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

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

Workforce Solutions U.S.

3 unchanged sentences

Foreign currency translation ( 0.1 ) — ( 31.1 ) ( 31.2 )

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

Balance, September 30, 2024 $ 2,520.1 $ 2,006.2 $ 2,203.7 $ 6,730.0

Indefinite-Lived Intangible Assets.

3 unchanged sentences

We are required to test indefinite-lived intangible assets for impairment annually and whenever events or circumstances indicate that there may be an impairment of the asset value.

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

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

We perform our annual indefinite-lived intangible asset annual impairment test as of December 1.

Our indefinite-lived intangible asset carrying amounts did not change during the nine months ended September 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 June 30, 2024 and December 31, 2023 consisted of the following:

June 30, 2024 December 31, 2023

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

September 30, 2024 December 31, 2023

Gross Accumulated

9 unchanged sentences

Total definite-lived intangible assets $ 3,178.0 $ ( 1,545.9 ) $ 1,632.1 $ 3,219.9 $ ( 1,361.1 ) $ 1,858.8

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:

Amortization expense related to purchased intangible assets was $ 64.6 million and $ 64.4 million during the three months ended September 30, 2024 and 2023, respectively.

Amortization expense related to purchased intangible assets was $ 197.0 million and $ 185.4 million during the nine months ended September 30, 2024 and 2023, respectively.

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

Years ending December 31, Amount

1 unchanged sentence

Thereafter 680.5

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

June 30, 2024 December 31, 2023

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

September 30, 2024 December 31, 2023

(In millions)

7 unchanged sentences

Debentures, 6.90 %, due July 2028

Notes, 4.80 %, due September 2029

Notes, 3.10 %, due May 2030

6 unchanged sentences

Total long-term debt, net $ 4,721.1 $ 4,747.8

Senior Credit Facilities.

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.

4.8 % Senior Notes.

In August 2024, we issued $ 650.0 million in aggregate principal amount of 4.8 % five -year Senior Notes due 2029 (the "2029 Notes") in an underwritten public offering.

Interest on the 2029 Notes accrues at a rate of 4.8 % per year and is payable semi-annually in arrears on March 15 and September 15 of each year.

The net proceeds of the sale of the 2029 Notes were ultimately used for general corporate purposes, including the repayment of indebtedness outstanding under our delayed draw term loan (the "Term Loan") which was due in August 2026.

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

The 2029 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.

Senior Credit Facility.

We have access to a $ 1.5 billion five-year unsecured revolving credit facility (the “Revolver”), which matures in August 2027.

In March 2023, we amended the Revolver (as well as our then-outstanding Term Loan) to adjust our debt covenant requirements and incorporate the Secured Overnight Financing Rate (SOFR) into our agreement, among other changes.

Borrowings under the Revolver 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.

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 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.

As of September 30, 2024, there were no outstanding CP notes, $ 1.4 million of letters of credit outstanding, and no outstanding borrowings under the Revolver.

Availability under the Revolver was $ 1,498.6 million at September 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 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.

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 September 30, 2024, there were no outstanding CP notes.

We have disclosed the net short-term borrowing activity for the nine months ended September 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 nine months ended September 30, 2024 or for the nine months ended September 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.

12 unchanged sentences

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.

We are engaging 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 June 30, 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 September 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 June 30, 2024.

The maximum potential future payments we could be required to make under the guarantees is not material at September 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.

25 unchanged sentences

Effective Tax Rate

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.

Our effective income tax rate was 26.4 % for the three months ended September 30, 2024, compared to 13.9 % for the three months ended September 30, 2023.

Our effective income tax rate was 25.8 % for the nine months ended September 30, 2024, compared to 22.0 % for the nine months ended September 30, 2023.

Our effective tax rate was higher for the three and nine months ended September 30, 2024 as compared to the same periods in 2023 due to the write off in the third quarter of 2023 of a deferred tax liability related to our original investment in BVS which was no longer necessary given the acquisition of BVS in August 2023.

ACCUMULATED OTHER COMPREHENSIVE LOSS

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

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

currency translation adjustment Pension and other

5 unchanged sentences

Other comprehensive (loss) income ( 34.1 ) 0.1 0.1 ( 33.9 )

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.

Balance, September 30, 2024 $ ( 460.8 ) $ ( 3.5 ) $ ( 0.8 ) $ ( 465.1 )

The change in accumulated other comprehensive loss related to noncontrolling interests including redeemable noncontrolling interests for the nine months ended September 30, 2024 was $ 15.2 million.

RESTRUCTURING CHARGES

1 unchanged sentence

Severance costs relate to a reduction in headcount, contract termination costs primarily relate to penalties for early termination of contracts and associated costs of transition, and other exit and disposal costs primarily relate to real estate exit costs.

During the twelve months ended December 31, 2023, we recorded $ 37.6 million of restructuring charges, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income.

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

As of 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:

In the third quarter of 2024, we recorded $ 41.6 million ($ 29.5 million, net of tax) of restructuring charges for the realignment of resources and other costs, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income.

These charges were recorded to general corporate expense and predominantly relate to our ongoing efforts toward completion of our technology transformation in order to support the Company's strategic objectives.

As of September 30, 2024, $ 8.6 million of the third quarter 2024 restructuring charges have been paid, with payments continuing in the fourth quarter of 2024 and the remaining future payments expected to be completed in 2025.

In the second quarter of 2023, we recorded $ 17.5 million ($ 12.4 million, net of tax) of restructuring charges, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income.

In the third quarter of 2023, we recorded an adjustment of $ 2.3 million ($ 1.7 million, net of tax) to the restructuring charge recorded in the second quarter of 2023 as we refined our estimate of the costs associated with that charge.

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

Liability balance as of 12/31/2023 Expenses Incurred Cash Payments Liability balance as of 9/30/2024

3 unchanged sentences

Contract terminations and other associated costs 4.9 7.7 ( 6.9 ) 5.7

Other exit and disposal costs — 1.5 — 1.5

Total $ 18.3 $ 41.6 $ ( 23.8 ) $ 36.1

24 unchanged sentences

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 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 and operating income by operating segment during the three and nine months ended September 30, 2024 and 2023 are as follows:

Three Months Ended Nine Months Ended

(In millions) September 30, September 30,

Operating revenue:

4 unchanged sentences

Total operating revenue $ 1,441.8 $ 1,319.1 $ 4,261.7 $ 3,938.7

Three Months Ended Six Months Ended

(In millions) June 30, June 30,

Three Months Ended Nine Months Ended

(In millions) September 30, September 30,

Operating income:

5 unchanged sentences

Total operating income $ 247.1 $ 246.4 $ 754.0 $ 688.5

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

June 30, December 31,

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

September 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