false2021Q30000033185--12-31322800.948380.580.5125.0380.5435419,000100000331852021-01-012021-09-30xbrli:shares00000331852021-10-08iso4217:USD00000331852021-07-012021-09-3000000331852020-07-012020-09-30iso4217:USDxbrli:shares00000331852020-01-012020-09-300000033185us-gaap:ParentMember2021-07-012021-09-300000033185us-gaap:NoncontrollingInterestMember2021-07-012021-09-300000033185us-gaap:ParentMember2020-07-012020-09-300000033185us-gaap:NoncontrollingInterestMember2020-07-012020-09-300000033185us-gaap:ParentMember2021-01-012021-09-300000033185us-gaap:NoncontrollingInterestMember2021-01-012021-09-300000033185us-gaap:ParentMember2020-01-012020-09-300000033185us-gaap:NoncontrollingInterestMember2020-01-012020-09-3000000331852021-09-3000000331852020-12-3100000331852019-12-3100000331852020-09-300000033185us-gaap:CommonStockMember2021-06-300000033185us-gaap:AdditionalPaidInCapitalMember2021-06-300000033185us-gaap:RetainedEarningsMember2021-06-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000033185us-gaap:TreasuryStockMember2021-06-300000033185us-gaap:TrustForBenefitOfEmployeesMember2021-06-300000033185us-gaap:NoncontrollingInterestMember2021-06-3000000331852021-06-300000033185us-gaap:RetainedEarningsMember2021-07-012021-09-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000033185us-gaap:CommonStockMember2021-07-012021-09-300000033185us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000033185us-gaap:TreasuryStockMember2021-07-012021-09-300000033185us-gaap:CommonStockMember2021-09-300000033185us-gaap:AdditionalPaidInCapitalMember2021-09-300000033185us-gaap:RetainedEarningsMember2021-09-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000033185us-gaap:TreasuryStockMember2021-09-300000033185us-gaap:TrustForBenefitOfEmployeesMember2021-09-300000033185us-gaap:NoncontrollingInterestMember2021-09-300000033185us-gaap:CommonStockMember2020-06-300000033185us-gaap:AdditionalPaidInCapitalMember2020-06-300000033185us-gaap:RetainedEarningsMember2020-06-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000033185us-gaap:TreasuryStockMember2020-06-300000033185us-gaap:TrustForBenefitOfEmployeesMember2020-06-300000033185us-gaap:NoncontrollingInterestMember2020-06-3000000331852020-06-300000033185us-gaap:RetainedEarningsMember2020-07-012020-09-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000033185us-gaap:CommonStockMember2020-07-012020-09-300000033185us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000033185us-gaap:TreasuryStockMember2020-07-012020-09-300000033185us-gaap:CommonStockMember2020-09-300000033185us-gaap:AdditionalPaidInCapitalMember2020-09-300000033185us-gaap:RetainedEarningsMember2020-09-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000033185us-gaap:TreasuryStockMember2020-09-300000033185us-gaap:TrustForBenefitOfEmployeesMember2020-09-300000033185us-gaap:NoncontrollingInterestMember2020-09-300000033185us-gaap:CommonStockMember2020-12-310000033185us-gaap:AdditionalPaidInCapitalMember2020-12-310000033185us-gaap:RetainedEarningsMember2020-12-310000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000033185us-gaap:TreasuryStockMember2020-12-310000033185us-gaap:TrustForBenefitOfEmployeesMember2020-12-310000033185us-gaap:NoncontrollingInterestMember2020-12-310000033185us-gaap:RetainedEarningsMember2021-01-012021-09-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000033185us-gaap:CommonStockMember2021-01-012021-09-300000033185us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300000033185us-gaap:TreasuryStockMember2021-01-012021-09-300000033185us-gaap:CommonStockMember2019-12-310000033185us-gaap:AdditionalPaidInCapitalMember2019-12-310000033185us-gaap:RetainedEarningsMember2019-12-310000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000033185us-gaap:TreasuryStockMember2019-12-310000033185us-gaap:TrustForBenefitOfEmployeesMember2019-12-310000033185us-gaap:NoncontrollingInterestMember2019-12-310000033185us-gaap:RetainedEarningsMember2020-01-012020-09-300000033185us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300000033185us-gaap:CommonStockMember2020-01-012020-09-300000033185us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300000033185us-gaap:TreasuryStockMember2020-01-012020-09-300000033185us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000033185srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000033185us-gaap:EmployeeStockOptionMember2021-07-012021-09-300000033185us-gaap:EmployeeStockOptionMember2020-07-012020-09-300000033185us-gaap:EmployeeStockOptionMember2021-01-012021-09-300000033185us-gaap:EmployeeStockOptionMember2020-01-012020-09-300000033185us-gaap:OtherCurrentAssetsMember2021-09-300000033185us-gaap:OtherCurrentLiabilitiesMember2021-09-300000033185efx:WorkforceMemberefx:VerificationServicesMember2021-07-012021-09-300000033185efx:WorkforceMemberefx:VerificationServicesMember2020-07-012020-09-30xbrli:pure0000033185efx:WorkforceMemberefx:VerificationServicesMember2021-01-012021-09-300000033185efx:WorkforceMemberefx:VerificationServicesMember2020-01-012020-09-300000033185efx:EmployerServicesMemberefx:WorkforceMember2021-07-012021-09-300000033185efx:EmployerServicesMemberefx:WorkforceMember2020-07-012020-09-300000033185efx:EmployerServicesMemberefx:WorkforceMember2021-01-012021-09-300000033185efx:EmployerServicesMemberefx:WorkforceMember2020-01-012020-09-300000033185efx:WorkforceMember2021-07-012021-09-300000033185efx:WorkforceMember2020-07-012020-09-300000033185efx:WorkforceMember2021-01-012021-09-300000033185efx:WorkforceMember2020-01-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:OnlineInformationSolutionsMember2021-07-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:OnlineInformationSolutionsMember2020-07-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:OnlineInformationSolutionsMember2021-01-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:OnlineInformationSolutionsMember2020-01-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:MortgageSolutionsMember2021-07-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:MortgageSolutionsMember2020-07-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:MortgageSolutionsMember2021-01-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberefx:MortgageSolutionsMember2020-01-012020-09-300000033185efx:FinancialMarketingServicesMemberefx:UnitedStatesConsumerInformationSolutionsMember2021-07-012021-09-300000033185efx:FinancialMarketingServicesMemberefx:UnitedStatesConsumerInformationSolutionsMember2020-07-012020-09-300000033185efx:FinancialMarketingServicesMemberefx:UnitedStatesConsumerInformationSolutionsMember2021-01-012021-09-300000033185efx:FinancialMarketingServicesMemberefx:UnitedStatesConsumerInformationSolutionsMember2020-01-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMember2021-07-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMember2020-07-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMember2021-01-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMember2020-01-012020-09-300000033185srt:AsiaPacificMemberefx:InternationalMember2021-07-012021-09-300000033185srt:AsiaPacificMemberefx:InternationalMember2020-07-012020-09-300000033185srt:AsiaPacificMemberefx:InternationalMember2021-01-012021-09-300000033185srt:AsiaPacificMemberefx:InternationalMember2020-01-012020-09-300000033185srt:EuropeMemberefx:InternationalMember2021-07-012021-09-300000033185srt:EuropeMemberefx:InternationalMember2020-07-012020-09-300000033185srt:EuropeMemberefx:InternationalMember2021-01-012021-09-300000033185srt:EuropeMemberefx:InternationalMember2020-01-012020-09-300000033185srt:LatinAmericaMemberefx:InternationalMember2021-07-012021-09-300000033185srt:LatinAmericaMemberefx:InternationalMember2020-07-012020-09-300000033185srt:LatinAmericaMemberefx:InternationalMember2021-01-012021-09-300000033185srt:LatinAmericaMemberefx:InternationalMember2020-01-012020-09-300000033185country:CAefx:InternationalMember2021-07-012021-09-300000033185country:CAefx:InternationalMember2020-07-012020-09-300000033185country:CAefx:InternationalMember2021-01-012021-09-300000033185country:CAefx:InternationalMember2020-01-012020-09-300000033185efx:InternationalMember2021-07-012021-09-300000033185efx:InternationalMember2020-07-012020-09-300000033185efx:InternationalMember2021-01-012021-09-300000033185efx:InternationalMember2020-01-012020-09-300000033185efx:GlobalConsumerSolutionsMember2021-07-012021-09-300000033185efx:GlobalConsumerSolutionsMember2020-07-012020-09-300000033185efx:GlobalConsumerSolutionsMember2021-01-012021-09-300000033185efx:GlobalConsumerSolutionsMember2020-01-012020-09-3000000331852021-10-012021-09-3000000331852022-01-012021-09-3000000331852024-01-012021-09-3000000331852026-01-012021-09-300000033185efx:KountMember2021-02-100000033185efx:KountMember2021-02-102021-02-100000033185efx:HiretechAndI2VerifyMember2021-03-310000033185efx:HealthEfxAndTeletrackMember2021-09-300000033185efx:ApprissInsightsMemberus-gaap:SubsequentEventMember2021-10-010000033185efx:ApprissInsightsMemberus-gaap:SubsequentEventMember2021-10-012021-10-010000033185efx:IndiaJointVentureMember2020-02-290000033185efx:WorkforceMember2020-12-310000033185efx:UnitedStatesConsumerInformationSolutionsMember2020-12-310000033185efx:InternationalMember2020-12-310000033185efx:GlobalConsumerSolutionsMember2020-12-310000033185efx:WorkforceMember2021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMember2021-09-300000033185efx:InternationalMember2021-09-300000033185efx:GlobalConsumerSolutionsMember2021-09-300000033185us-gaap:DatabasesMember2021-09-300000033185us-gaap:DatabasesMember2020-12-310000033185us-gaap:CustomerRelationshipsMember2021-09-300000033185us-gaap:CustomerRelationshipsMember2020-12-310000033185efx:ProprietaryDatabaseMember2021-09-300000033185efx:ProprietaryDatabaseMember2020-12-310000033185efx:TechnologyAndSoftwareMember2021-09-300000033185efx:TechnologyAndSoftwareMember2020-12-310000033185efx:TradenamesAndOtherMember2021-09-300000033185efx:TradenamesAndOtherMember2020-12-310000033185us-gaap:NoncompeteAgreementsMember2021-09-300000033185us-gaap:NoncompeteAgreementsMember2020-12-310000033185us-gaap:CommercialPaperMember2021-09-300000033185us-gaap:CommercialPaperMember2020-12-310000033185efx:NotesTwoPointThreeZeroDueJuneTwoThousandTwentyOneMember2021-09-300000033185efx:NotesTwoPointThreeZeroDueJuneTwoThousandTwentyOneMember2020-12-310000033185efx:NotesThreePointSixZeroDueAugustTwoThousandTwentyOneMember2021-09-300000033185efx:NotesThreePointSixZeroDueAugustTwoThousandTwentyOneMember2020-12-310000033185efx:NotesFloatingRateDueAugustTwoThousandTwentyOneMember2021-09-300000033185efx:NotesFloatingRateDueAugustTwoThousandTwentyOneMember2020-12-310000033185efx:NotesThreePointThreeZeroDueDecemberTwoThousandTwentyTwoMember2021-09-300000033185efx:NotesThreePointThreeZeroDueDecemberTwoThousandTwentyTwoMember2020-12-310000033185efx:NotesThreePointNineFiveDueJuneTwoThousandTwentyThreeMember2021-09-300000033185efx:NotesThreePointNineFiveDueJuneTwoThousandTwentyThreeMember2020-12-310000033185efx:NotesTwoPointSixZeroPercentDueDecember2024Member2021-09-300000033185efx:NotesTwoPointSixZeroPercentDueDecember2024Member2020-12-310000033185efx:NotesTwoPointSixZeroPercentDueDecember2025Member2021-09-300000033185efx:NotesTwoPointSixZeroPercentDueDecember2025Member2020-12-310000033185efx:NotesThreePointTwoFiveDueJuneTwoThousandTwentySixMember2021-09-300000033185efx:NotesThreePointTwoFiveDueJuneTwoThousandTwentySixMember2020-12-310000033185efx:TermLoanDueAugust2026Member2021-09-300000033185efx:TermLoanDueAugust2026Member2020-12-310000033185efx:DebenturesSixPointNineZeroPercentDueJulyTwentyTwentyEightMember2021-09-300000033185efx:DebenturesSixPointNineZeroPercentDueJulyTwentyTwentyEightMember2020-12-310000033185efx:NotesThreePointOnePercentDueMay2030Member2021-09-300000033185efx:NotesThreePointOnePercentDueMay2030Member2020-12-310000033185efx:NotesTwoPointThreeFivePercentDueSeptember2031Member2021-09-300000033185efx:NotesTwoPointThreeFivePercentDueSeptember2031Member2020-12-310000033185efx:NotesSevenPointZeroPercentDueJulyTwentyThirtySevenMember2021-09-300000033185efx:NotesSevenPointZeroPercentDueJulyTwentyThirtySevenMember2020-12-310000033185efx:DebtOtherMember2021-09-300000033185efx:DebtOtherMember2020-12-310000033185efx:NotesTwoPointThreeFivePercentDueSeptember2031Member2021-08-110000033185efx:NotesTwoPointThreeFivePercentDueSeptember2031Member2021-08-112021-08-110000033185efx:NotesThreePointSixZeroDueAugustTwoThousandTwentyOneMember2021-08-112021-08-110000033185efx:NotesFloatingRateDueAugustTwoThousandTwentyOneMember2021-08-112021-08-110000033185efx:NotesTwoPointSixZeroPercentDueDecember2025Member2020-04-220000033185efx:NotesThreePointOnePercentDueMay2030Member2020-04-220000033185efx:NotesTwoPointSixZeroPercentDueDecember2025Member2020-04-222020-04-220000033185efx:NotesThreePointOnePercentDueMay2030Member2020-04-222020-04-220000033185us-gaap:RevolvingCreditFacilityMember2020-04-222020-04-220000033185efx:UnsecuredRevolvingCreditFacilityDueSeptember2023Member2021-08-310000033185us-gaap:RevolvingCreditFacilityMember2021-08-310000033185us-gaap:RevolvingCreditFacilityMember2021-08-012021-08-310000033185efx:TermLoanDueAugust2026Member2021-08-31efx:extension0000033185us-gaap:RevolvingCreditFacilityMember2021-09-300000033185srt:MaximumMember2021-01-012021-09-300000033185us-gaap:OtherCurrentLiabilitiesMemberefx:CybersecurityIncidentMember2019-01-012019-12-31efx:office0000033185efx:CybersecurityIncidentMember2019-07-220000033185efx:CybersecurityIncidentMember2019-07-192019-07-220000033185srt:MaximumMemberefx:CybersecurityIncidentMember2019-07-192019-07-22efx:claim0000033185stpr:GA2017-12-310000033185stpr:GA2017-01-012017-12-310000033185country:CA2017-12-31efx:plaintiff0000033185country:CA2017-01-012017-12-310000033185country:CA2019-12-130000033185srt:MinimumMember2021-09-300000033185srt:MaximumMember2021-09-3000000331852020-03-310000033185us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000033185us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000033185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000033185us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300000033185us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-09-300000033185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-09-300000033185us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300000033185us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300000033185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-09-300000033185us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-10-012020-12-310000033185efx:RestructuringChargesIncurredIn2020Member2020-10-012021-09-300000033185efx:RestructuringChargesIncurredIn2020Member2021-07-012021-09-300000033185efx:RestructuringChargesIncurredIn2020Member2021-01-012021-09-30efx:segment0000033185efx:WorkforceMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000033185efx:WorkforceMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300000033185efx:WorkforceMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000033185efx:WorkforceMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300000033185us-gaap:OperatingSegmentsMemberefx:InternationalMember2021-07-012021-09-300000033185us-gaap:OperatingSegmentsMemberefx:InternationalMember2020-07-012020-09-300000033185us-gaap:OperatingSegmentsMemberefx:InternationalMember2021-01-012021-09-300000033185us-gaap:OperatingSegmentsMemberefx:InternationalMember2020-01-012020-09-300000033185us-gaap:OperatingSegmentsMemberefx:GlobalConsumerSolutionsMember2021-07-012021-09-300000033185us-gaap:OperatingSegmentsMemberefx:GlobalConsumerSolutionsMember2020-07-012020-09-300000033185us-gaap:OperatingSegmentsMemberefx:GlobalConsumerSolutionsMember2021-01-012021-09-300000033185us-gaap:OperatingSegmentsMemberefx:GlobalConsumerSolutionsMember2020-01-012020-09-300000033185us-gaap:CorporateNonSegmentMember2021-07-012021-09-300000033185us-gaap:CorporateNonSegmentMember2020-07-012020-09-300000033185us-gaap:CorporateNonSegmentMember2021-01-012021-09-300000033185us-gaap:CorporateNonSegmentMember2020-01-012020-09-300000033185efx:WorkforceMemberus-gaap:OperatingSegmentsMember2021-09-300000033185efx:WorkforceMemberus-gaap:OperatingSegmentsMember2020-12-310000033185efx:UnitedStatesConsumerInformationSolutionsMemberus-gaap:OperatingSegmentsMember2021-09-300000033185efx:UnitedStatesConsumerInformationSolutionsMemberus-gaap:OperatingSegmentsMember2020-12-310000033185us-gaap:OperatingSegmentsMemberefx:InternationalMember2021-09-300000033185us-gaap:OperatingSegmentsMemberefx:InternationalMember2020-12-310000033185us-gaap:OperatingSegmentsMemberefx:GlobalConsumerSolutionsMember2021-09-300000033185us-gaap:OperatingSegmentsMemberefx:GlobalConsumerSolutionsMember2020-12-310000033185us-gaap:CorporateNonSegmentMember2021-09-300000033185us-gaap:CorporateNonSegmentMember2020-12-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2021
 
OR
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                                      to                                      .
 
Commission File Number: 001-06605
 

EQUIFAX INC.
(Exact name of registrant as specified in its charter) 
Georgia 58-0401110
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
 
1550 Peachtree Street N.W. Atlanta Georgia 30309
(Address of principal executive offices) (Zip Code)
 
404-885-8000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common stock, $1.25 par value per share EFX New York Stock Exchange
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes       No   
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes       No   
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No  

On October 8, 2021, there were 122,001,519 shares of the registrant’s common stock outstanding.
1


EQUIFAX INC.
 
QUARTERLY REPORT ON FORM 10-Q
 
QUARTER ENDED SEPTEMBER 30, 2021
 
INDEX
 
    Page
4
4
 
4
5
 
6
 
7
 
8
 
9
 
 
 
 
2


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. Management believes that these forward-looking statements are reasonable as and when made. However, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, “Item 1A. Risk Factors,” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2020, as well as subsequent reports filed with the Securities and Exchange Commission. As a result of such risks and uncertainties, we urge you not to place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
3


PART I.  FINANCIAL INFORMATION
 
ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)
 
EQUIFAX INC.
 

CONSOLIDATED STATEMENTS OF INCOME
 
(Unaudited)
Three Months Ended 
September 30,
  2021 2020
(In millions, except per share amounts)
Operating revenue $ 1,222.9  $ 1,068.3 
Operating expenses:    
Cost of services (exclusive of depreciation and amortization below) 489.0  433.2 
Selling, general and administrative expenses 344.2  330.0 
Depreciation and amortization 116.5  100.7 
Total operating expenses 949.7  863.9 
Operating income 273.2  204.4 
Interest expense (35.0) (37.4)
Other income, net 27.2  139.1 
Consolidated income before income taxes 265.4  306.1 
Provision for income taxes (58.8) (76.8)
Consolidated net income 206.6  229.3 
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests (1.2) (0.8)
Net income attributable to Equifax $ 205.4  $ 228.5 
Basic earnings per common share:    
Net income attributable to Equifax $ 1.68  $ 1.88 
Weighted-average shares used in computing basic earnings per share 121.9  121.5 
Diluted earnings per common share:    
Net income attributable to Equifax $ 1.66  $ 1.86 
Weighted-average shares used in computing diluted earnings per share 123.7  123.0 
Dividends per common share $ 0.39  $ 0.39 

See Notes to Consolidated Financial Statements.
4

EQUIFAX INC.
CONSOLIDATED STATEMENTS OF INCOME
 
(Unaudited)

Nine Months Ended September 30,
2021 2020
(In millions, except per share amounts)
Operating revenue $ 3,670.7  $ 3,009.1 
Operating expenses:
Cost of services (exclusive of depreciation and amortization below) 1,455.3  1,256.5 
Selling, general and administrative expenses 981.4  955.9 
Depreciation and amortization 348.2  289.5 
Total operating expenses 2,784.9  2,501.9 
Operating income 885.8  507.2 
Interest expense (107.1) (104.7)
Other income, net 32.3  188.3 
Consolidated income before income taxes 811.0  590.8 
Provision for income taxes (185.5) (142.2)
Consolidated net income 625.5  448.6 
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests (3.4) (2.9)
Net income attributable to Equifax $ 622.1  $ 445.7 
Basic earnings per common share:
Net income attributable to Equifax $ 5.11  $ 3.67 
Weighted-average shares used in computing basic earnings per share 121.8  121.4 
Diluted earnings per common share:
Net income attributable to Equifax $ 5.04  $ 3.63 
Weighted-average shares used in computing diluted earnings per share 123.5  122.7 
Dividends per common share $ 1.17  $ 1.17 

See Notes to Consolidated Financial Statements.
5

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
(Unaudited)
 
  Three Months Ended September 30,
2021 2020
Equifax
Shareholders
Noncontrolling
Interests
Total Equifax
Shareholders
Noncontrolling
Interests
Total
  (In millions)
Net income $ 205.4  $ 1.2  $ 206.6  $ 228.5  $ 0.8  $ 229.3 
Other comprehensive income (loss):            
Foreign currency translation adjustment (100.1) (1.2) (101.3) 49.4  0.2  49.6 
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net 1.2    1.2  (0.6) —  (0.6)
Comprehensive income $ 106.5  $   $ 106.5  $ 277.3  $ 1.0  $ 278.3 


Nine Months Ended September 30,
2021 2020
Equifax
Shareholders
Noncontrolling
Interests
Total Equifax
Shareholders
Noncontrolling
Interests
Total
(In millions)
Net income $ 622.1  $ 3.4  $ 625.5  $ 445.7  $ 2.9  $ 448.6 
Other comprehensive income (loss):
Foreign currency translation adjustment (84.9) (0.7) (85.6) (8.2) (1.5) (9.7)
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net 0.6    0.6  (1.7) —  (1.7)
Comprehensive income $ 537.8  $ 2.7  $ 540.5  $ 435.8  $ 1.4  $ 437.2 


See Notes to Consolidated Financial Statements.
6

EQUIFAX INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)
September 30, 2021 December 31, 2020
(In millions, except par values)  
ASSETS    
Current assets:    
Cash and cash equivalents $ 2,025.5  $ 1,684.6 
Trade accounts receivable, net of allowance for doubtful accounts of $11.3 and $12.9 at September 30, 2021 and December 31, 2020, respectively
694.6  630.6 
Prepaid expenses 120.5  104.1 
Other current assets 49.7  59.0 
Total current assets 2,890.3  2,478.3 
Property and equipment:    
Capitalized internal-use software and system costs 1,624.2  1,374.5 
Data processing equipment and furniture 301.8  299.9 
Land, buildings and improvements 245.4  239.1 
Total property and equipment 2,171.4  1,913.5 
Less accumulated depreciation and amortization (918.5) (774.1)
Total property and equipment, net 1,252.9  1,139.4 
Goodwill 5,169.2  4,495.8 
Indefinite-lived intangible assets 95.0  94.9 
Purchased intangible assets, net 1,271.6  997.8 
Other assets, net 404.3  405.6 
Total assets $ 11,083.3  $ 9,611.8 
LIABILITIES AND EQUITY  
Current liabilities:    
Short-term debt and current maturities of long-term debt $ 500.6  $ 1,101.1 
Accounts payable 192.5  159.1 
Accrued expenses 213.9  251.8 
Accrued salaries and bonuses 222.1  250.3 
Deferred revenue 108.1  108.3 
Other current liabilities 649.7  612.5 
Total current liabilities 1,886.9  2,483.1 
Long-term debt 4,969.4  3,277.3 
Deferred income tax liabilities, net 372.6  332.3 
Long-term pension and other postretirement benefit liabilities 114.3  130.7 
Other long-term liabilities 185.0  178.1 
Total liabilities 7,528.2  6,401.5 
Commitments and Contingencies (see Note 6)
Equifax shareholders' equity:  
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none
  — 
Common stock, $1.25 par value: Authorized shares - 300.0;
Issued shares - 189.3 at September 30, 2021 and December 31, 2020;
Outstanding shares - 122.0 and 121.8 at September 30, 2021 and December 31, 2020, respectively
236.6  236.6 
Paid-in capital 1,517.6  1,470.7 
Retained earnings 4,677.4  4,185.4 
Accumulated other comprehensive loss (255.7) (171.4)
Treasury stock, at cost, 66.7 shares and 66.9 shares at September 30, 2021 and December 31, 2020, respectively
(2,630.8) (2,547.0)
Stock held by employee benefit trusts, at cost, 0.6 shares at September 30, 2021 and December 31, 2020
(5.9) (5.9)
Total Equifax shareholders’ equity 3,539.2  3,168.4 
Noncontrolling interests including redeemable noncontrolling interests 15.9  41.9 
Total equity 3,555.1  3,210.3 
Total liabilities and equity $ 11,083.3  $ 9,611.8 

 See Notes to Consolidated Financial Statements.
7

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(Unaudited)
Nine Months Ended September 30,
  2021 2020
(In millions)
Operating activities:    
Consolidated net income $ 625.5  $ 448.6 
Adjustments to reconcile consolidated net income to net cash provided by operating activities:    
Depreciation and amortization 354.9  295.2 
Stock-based compensation expense 44.8  43.9 
Deferred income taxes 12.6  82.2 
Loss (gain) on fair market value adjustment of equity investments 0.1  (162.8)
Gain on divestiture (0.2) — 
Changes in assets and liabilities, excluding effects of acquisitions:  
Accounts receivable, net (54.9) (76.1)
Other assets, current and long-term 5.1  29.6 
Current and long term liabilities, excluding debt (38.4) (11.6)
Cash provided by operating activities 949.5  649.0 
Investing activities:  
Capital expenditures (332.9) (309.5)
Acquisitions, net of cash acquired (1,108.9) (61.4)
Cash received from divestiture 1.5  — 
Investment in unconsolidated affiliates, net   (10.0)
Cash used in investing activities (1,440.3) (380.9)
Financing activities:  
Net short-term borrowings 499.2  0.3 
Payments on long-term debt (1,100.2) (125.0)
Borrowings on long-term debt 1,697.3  1,123.3 
Treasury stock purchases (69.9) — 
Dividends paid to Equifax shareholders (142.6) (142.1)
Dividends paid to noncontrolling interests (6.5) (2.6)
Proceeds from exercise of stock options and employee stock purchase plan 33.4  29.9 
Payment of taxes related to settlement of equity awards (43.9) — 
Purchase of noncontrolling interests (11.2) (9.0)
Debt issuance costs (13.2) (9.8)
Other   0.3 
Cash provided by financing activities 842.4  865.3 
Effect of foreign currency exchange rates on cash and cash equivalents (10.7) 0.9 
Increase in cash and cash equivalents 340.9  1,134.3 
Cash and cash equivalents, beginning of period 1,684.6  401.3 
Cash and cash equivalents, end of period $ 2,025.5  $ 1,535.6 
 
See Notes to Consolidated Financial Statements.
8

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
 
(Unaudited)

For the Three Months Ended September 30, 2021
 
  Equifax Shareholders    
Accumulated Other Comprehensive Loss Stock
Held By Employee Benefits Trusts
  Common Stock          
Shares
Outstanding
Amount Paid-In
Capital
Retained
Earnings
Treasury
Stock
Noncontrolling
Interests
Total
Equity
  (In millions, except per share amounts)
Balance, June 30, 2021 121.8  $ 236.6  $ 1,506.8  $ 4,505.7  $ (156.8) $ (2,625.9) $ (5.9) $ 38.1  $ 3,498.6 
Net income       205.4        1.2  206.6 
Other comprehensive loss         (98.9)     (1.2) (100.1)
Shares issued under stock and benefit plans, net of minimum tax withholdings 0.2    (0.3)     (4.9)     (5.2)
Cash dividends ($0.39 per share)
      (47.8)         (47.8)
Dividends paid to employee benefits trusts     0.2            0.2 
Stock-based compensation expense     10.9            10.9 
Purchases of redeemable noncontrolling interests               (7.6) (7.6)
Redeemable noncontrolling interest adjustment       14.0        (14.0)  
Dividends paid to noncontrolling interests               (0.7) (0.7)
Other       0.1        0.1  0.2 
Balance, September 30, 2021 122.0  $ 236.6  $ 1,517.6  $ 4,677.4  $ (255.7) $ (2,630.8) $ (5.9) $ 15.9  $ 3,555.1 


For the Three Months Ended September 30, 2020
  Equifax Shareholders    
Accumulated Other Comprehensive Loss Stock
Held By Employee Benefits Trusts
  Common Stock          
Shares
Outstanding
Amount Paid-In
Capital
Retained
Earnings
Treasury
Stock
Noncontrolling
Interests
Total
Equity
  (In millions, except per share amounts)
Balance, June 30, 2020 121.5  $ 236.6  $ 1,447.8  $ 3,979.5  $ (413.2) $ (2,550.7) $ (5.9) $ 40.2  $ 2,734.3 
Net income —  —  —  228.5  —  —  —  0.8  229.3 
Other comprehensive income —  —  —  —  48.8  —  —  0.2  49.0 
Shares issued under stock and benefit plans, net of minimum tax withholdings 0.1  —  (1.0) —  —  0.3  —  —  (0.7)
Cash dividends ($0.39 per share)
—  —  —  (47.6) —  —  —  —  (47.6)
Dividends paid to employee benefits trusts —  —  0.2  —  —  —  —  —  0.2 
Stock-based compensation expense —  —  12.2  —  —  —  —  —  12.2 
Redeemable noncontrolling interest adjustment —  —  —  (1.5) —  —  —  1.5  — 
Dividends paid to noncontrolling interests —  —  —  —  —  —  —  (1.0) (1.0)
Purchases of noncontrolling interests —  —  (5.1) —  —  —  —  (3.9) (9.0)
Balance, September 30, 2020 121.6  $ 236.6  $ 1,454.1  $ 4,158.9  $ (364.4) $ (2,550.4) $ (5.9) $ 37.8  $ 2,966.7 
9

EQUIFAX INC.

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

For the Nine Months Ended September 30, 2021
 
Equifax Shareholders
Accumulated Other Comprehensive Loss Stock
Held By Employee Benefits Trusts
Common Stock
Shares
Outstanding
Amount Paid-In
Capital
Retained
Earnings
Treasury
Stock
Noncontrolling
Interests
Total
Equity
(In millions, except per share amounts)
Balance, December 31, 2020 121.8  $ 236.6  $ 1,470.7  $ 4,185.4  $ (171.4) $ (2,547.0) $ (5.9) $ 41.9  $ 3,210.3 
Net income       622.1        3.4  625.5 
Other comprehensive loss         (84.3)     (0.7) (85.0)
Shares issued under stock and benefit plans, net of minimum tax withholdings 0.6    3.4      (13.9)     (10.5)
Treasury stock purchased under share repurchase program* (0.4)         (69.9)     (69.9)
Cash dividends ($1.17 per share)
      (143.3)         (143.3)
Dividends paid to employee benefits trusts     0.7            0.7 
Stock-based compensation expense     44.8            44.8 
Purchases of redeemable noncontrolling interests               (7.6) (7.6)
Redeemable noncontrolling interest adjustment       13.2        (13.2)  
Dividends paid to noncontrolling interests               (6.5) (6.5)
Purchases of noncontrolling interests     (1.8)         (1.8) (3.6)
Other     (0.2)         0.4  0.2 
Balance, September 30, 2021 122.0  $ 236.6  $ 1,517.6  $ 4,677.4  $ (255.7) $ (2,630.8) $ (5.9) $ 15.9  $ 3,555.1 

*At September 30, 2021, $520.2 million was available for future purchases of common stock under our share repurchase authorization.

For the Nine Months Ended September 30, 2020

Equifax Shareholders
Accumulated Other Comprehensive Loss Stock
Held By Employee Benefits Trusts
Common Stock
Shares
Outstanding
Amount Paid-In
Capital
Retained
Earnings
Treasury
Stock
Noncontrolling
Interests
Total
Equity
(In millions, except per share amounts)
Balance, December 31, 2019 121.2  $ 236.6  $ 1,405.1  $ 3,854.6  $ (354.4) $ (2,557.4) $ (5.9) $ 44.3  $ 2,622.9 
Net income —  —  —  445.7  —  —  —  2.9  448.6 
Other comprehensive loss —  —  —  —  (10.0) —  —  (1.5) (11.5)
Shares issued under stock and benefit plans, net of minimum tax withholdings 0.4  —  9.5  —  —  7.0  —  —  16.5 
Cash dividends ($1.17 per share)
—  —  —  (142.8) —  —  —  —  (142.8)
Dividends paid to employee benefits trusts —  —  0.7  —  —  —  —  —  0.7 
Stock-based compensation expense —  —  43.9  —  —  —  —  —  43.9 
Redeemable noncontrolling interest adjustment —  —  —  1.8  —  —  —  (1.8) — 
Dividends paid to noncontrolling interests —  —  —  —  —  —  —  (2.6) (2.6)
Purchases of noncontrolling interests —  —  (5.1) —  —  —  —  (3.9) (9.0)
Cumulative adjustment from change in accounting principle —  —  —  (0.4) —  —  —  —  (0.4)
Other —  —  —  —  —  —  —  0.4  0.4 
Balance, September 30, 2020 121.6  $ 236.6  $ 1,454.1  $ 4,158.9  $ (364.4) $ (2,550.4) $ (5.9) $ 37.8  $ 2,966.7 

10





Accumulated Other Comprehensive Loss consists of the following components:
 
September 30, 2021 December 31, 2020
  (In millions)
Foreign currency translation $ (253.3) $ (168.4)
Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $0.3 and $0.5 at September 30, 2021 and December 31, 2020, respectively
(1.4) (2.0)
Cash flow hedging transactions, net of accumulated tax of $0.6 and $0.7 at September 30, 2021 and December 31, 2020, respectively
(1.0) (1.0)
Accumulated other comprehensive loss $ (255.7) $ (171.4)
 

See Notes to Consolidated Financial Statements.
11


EQUIFAX INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
September 30, 2021
 
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
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.

Nature of Operations.  We collect, analyze and manage various types of financial, demographic, employment and marketing information. Our products and services enable businesses to make credit and service decisions, manage their portfolio risk, automate or outsource certain payroll-related, tax and human resources business processes, and develop marketing strategies concerning consumers and commercial enterprises. We serve customers across a wide range of industries, including the financial services, mortgage, retail, telecommunications, utilities, automotive, brokerage, healthcare and insurance industries, as well as government agencies. We also enable consumers to manage and protect their financial health through a portfolio of products offered directly to consumers. As of September 30, 2021, we operated in the following countries: Argentina, Australia, Canada, Chile, Costa Rica, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom, or U.K., Uruguay and the United States of America, or U.S. 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.
 
We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting institutions, and income and tax information primarily from large to mid-sized companies in the U.S. We process this information utilizing our proprietary information management systems. We also provide information, technology and services to support debt collections and recovery management.
 
Basis of Presentation.  The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, the instructions to Form 10-Q and applicable sections of SEC Regulation S-X. This Form 10-Q should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”).
 
Our unaudited Consolidated Financial Statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the periods presented and are of a normal recurring nature.
 
Earnings Per Share.  Our basic earnings per share, or EPS, is calculated as net income attributable to Equifax divided by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options, restricted stock units, or other contracts to issue common stock were exercised and resulted in additional common shares outstanding. The net income amounts used in both our basic and diluted EPS calculations are the same. A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows: 
  Three Months Ended September 30, Nine Months Ended September 30,
  2021 2020 2021 2020
  (In millions)
Weighted-average shares outstanding (basic) 121.9  121.5  121.8  121.4 
Effect of dilutive securities:  
Stock options and restricted stock units 1.8  1.5  1.7  1.3 
Weighted-average shares outstanding (diluted) 123.7  123.0  123.5  122.7 
 
For the three and nine months ended September 30, 2021 and for the three months ended September 30, 2020, stock options that were anti-dilutive were not material. For the nine months ended September 30, 2020, stock options that were anti-dilutive were 0.6 million.
 
12


Financial Instruments.  Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and short and long-term debt. The carrying amounts of these items, other than long-term debt, approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for similar publicly traded instruments and for non-publicly traded instruments through valuation techniques involving observable inputs based on the specific characteristics of the debt instrument. As of September 30, 2021 and December 31, 2020, the fair value of our long-term debt, including the current portion, was $5.3 billion and $4.8 billion, respectively, compared to its carrying value of $5.0 billion and $4.4 billion, respectively.
 
Fair Value Measurements.  Fair value is determined based on the assumptions marketplace participants use in pricing the asset or liability. We use a three level fair value hierarchy to prioritize the inputs used in valuation techniques between observable inputs that reflect quoted prices in active markets, inputs other than quoted prices with observable market data and unobservable data (e.g., a company’s own data).
     
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. We completed several acquisitions during the nine months ended September 30, 2021 and the year ended December 31, 2020. The values of net assets acquired and the resulting goodwill were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and definite-lived intangible assets acquired in these acquisitions were internally or externally estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates used in the present value calculations.

Trade Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at cost. Significant payment terms for customers are identified in the contract. We do not recognize interest income on our trade accounts receivable. Additionally, we generally do not require collateral from our customers related to our trade accounts receivable.

The allowance for doubtful accounts is based on management's estimate for expected credit losses for outstanding trade accounts receivables. We determine expected credit losses based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns and the establishment of specific reserves for customers in an adverse financial condition. We also consider expected changes in macroeconomic conditions that may impact the collectability of outstanding receivables in determining expected credit losses. We reassess the adequacy of the allowance for doubtful accounts each reporting period. Increases to the allowance for doubtful accounts are recorded as bad debt expense, which are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Income. Below is a rollforward of our allowance for doubtful accounts for the three and nine months ended September 30, 2021 and 2020, respectively.
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(In millions)
Allowance for doubtful accounts, beginning of period $ 11.2  $ 16.9  $ 12.9  $ 11.2 
Current period bad debt expense 1.2  0.2  1.2  7.1 
Write-offs, net of recoveries (1.1) (1.3) (2.8) (2.5)
Allowance for doubtful accounts, end of period $ 11.3  $ 15.8  $ 11.3  $ 15.8 

Other Current Assets. Other current assets on our Consolidated Balance Sheets include amounts receivable from tax authorities. 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 September 30, 2021, these assets were approximately $18.9 million, with a corresponding balance in other current liabilities. These amounts are restricted as to their current use, and will be released according to the specific customer agreements.
 
Other Assets.  Other assets on our Consolidated Balance Sheets primarily represent our investments in unconsolidated affiliates, the Company’s operating lease right-of-use assets, employee benefit trust assets, long-term deferred tax assets and assets related to life insurance policies covering certain officers of the Company.

Equity Investment. We record our equity investment in Brazil within Other Assets at fair value, using observable Level 1 inputs. The carrying value of the investment has been adjusted to $124.9 million as of September 30, 2021 based on quoted market prices, resulting in an unrealized gain of $17.3 million and unrealized loss of $0.1 million for the three and nine months ended September 30, 2021. The carrying value of the investment was $133.8 million as of September 30, 2020,
13


resulting in an unrealized gain of $129.9 million for the three and nine months ended September 30, 2020. All unrealized gains or losses on the investment are recorded in Other income, net within the Consolidated Statements of Income.
 
Other Current Liabilities. Other current liabilities on our Consolidated Balance Sheets consist of the current portion of operating lease liabilities and various accrued liabilities such as costs related to the 2017 cybersecurity incident as described more fully in Note 6. Other current liabilities also include corresponding amounts of other current assets related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of September 30, 2021, these funds were approximately $18.9 million. These amounts are restricted as to their current use and will be released according to the specific customer agreements.

Recent Accounting Pronouncements. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We are still evaluating the impact, but do not expect the adoption of the standard to have a material impact on our Consolidated Financial Statements.

2. REVENUE

Revenue Recognition. 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 September 30, Change Nine Months Ended September 30, Change
Consolidated Operating Revenue 2021 2020 $ % 2021 2020 $ %
(In millions) (In millions)
Verification Services $ 402.7  $ 301.1  $ 101.6  34  % $ 1,182.3  $ 773.2  $ 409.1  53  %
Employer Services 105.3  75.7  29.6  39  % 302.2  258.2  44.0  17  %
Total Workforce Solutions 508.0  376.8  131.2  35  % 1,484.5  1,031.4  453.1  44  %
Online Information Solutions 286.3  284.7  1.6  % 886.2  800.3  85.9  11  %
Mortgage Solutions 46.2  55.4  (9.2) (17) % 149.7  149.4  0.3  —  %
Financial Marketing Services 55.3  46.2  9.1  20  % 167.1  145.4  21.7  15  %
Total U.S. Information Solutions 387.8  386.3  1.5  —  % 1,203.0  1,095.1  107.9  10  %
Asia Pacific 88.7  80.2  8.5  11  % 267.0  215.1  51.9  24  %
Europe 67.7  58.7  9.0  15  % 204.8  173.2  31.6  18  %
Latin America 44.6  40.4  4.2  11  % 130.3  117.8  12.5  11  %
Canada 44.4  38.7  5.7  15  % 135.6  108.5  27.1  25  %
Total International 245.4  218.0  27.4  13  % 737.7  614.6  123.1  20  %
Global Consumer Solutions 81.7  87.2  (5.5) (6) % 245.5  268.0  (22.5) (8) %
Total operating revenue $ 1,222.9  $ 1,068.3  $ 154.6  14  % $ 3,670.7  $ 3,009.1  $ 661.6  22  %

14


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 September 30, 2021, inclusive of foreign exchange impact:
Performance Obligation Amount
(In millions)
Less than 1 year $ 31.1 
1 to 3 years 32.1 
3 to 5 years 20.7 
Thereafter 36.2 
Total remaining performance obligation $ 120.1 
    
3. ACQUISITIONS AND INVESTMENTS

2021 Acquisitions and Investments. On February 10, 2021, the Company acquired 100% of Kount, a provider of fraud prevention and digital identity solutions for $640 million within the U.S. Information Solutions (“USIS”) business unit. Additionally in the first quarter of 2021, the Company acquired 100% of HIREtech and i2Verify within the Workforce Solutions business unit as well as a small acquisition and purchase of the remaining noncontrolling interest of a business within our International business unit. In the third quarter of 2021, the Company acquired 100% of Health e(fx) and Teletrack within the Workforce Solutions and USIS business units, respectively, as well as the purchase of the remaining noncontrolling interest of a business within our International business unit. All of these acquisitions expand the Company's data assets as well as product offerings. The purchase price allocations for these acquisitions are not yet finalized and open areas consist of income taxes and working capital for all acquisitions and purchased intangibles for third quarter acquisitions. Accordingly, adjustments may be made to the values of the assets acquired and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date.

Additionally, the Company acquired 100% of Appriss Insights on October 1, 2021, for cash consideration of approximately $1.825 billion. Appriss Insights is a source of risk and criminal justice intelligence information and will be reported within the Workforce Solutions business unit. The Company will account for this acquisition in accordance with ASC 805, Business Combinations, which requires the assets acquired and the liabilities assumed to be measured at fair value at the date of the acquisition. The accounting for the acquisition is incomplete as of the date of this filing.

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

4. GOODWILL AND INTANGIBLE ASSETS
 
Goodwill.  Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment tests as of September 30.

Our annual goodwill impairment testing was completed during the third quarter of 2021. The estimated fair value for all reporting units exceeded the carrying value for those units as of September 30, 2021. As a result, no goodwill impairment was recorded.


15


Changes in the amount of goodwill for the nine months ended September 30, 2021, are as follows:
Workforce Solutions U.S.
Information
Solutions
International Global Consumer Solutions Total
 
Balance, December 31, 2020 $ 1,010.7  $ 1,286.7  $ 2,007.9  $ 190.5  $ 4,495.8 
Acquisitions 223.8  487.2  18.4    729.4 
Adjustments to initial purchase price allocation   0.7      0.7 
Foreign currency translation     (56.9) 1.5  (55.4)
Divestitures     (1.3)   (1.3)
Balance, September 30, 2021 $ 1,234.5  $ 1,774.6  $ 1,968.1  $ 192.0  $ 5,169.2 

Indefinite-Lived Intangible Assets.  Indefinite-lived intangible assets consist of indefinite-lived reacquired rights representing the value of rights which we had granted to various affiliate credit reporting agencies that were reacquired in the U.S. and Canada. At the time we acquired these agreements, they were considered perpetual in nature under the accounting guidance in place at that time and, therefore, the useful lives are considered indefinite. Indefinite-lived intangible assets are not amortized. 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 impairment test as of September 30. The estimated fair value of our indefinite-lived intangible assets exceeded the carrying value as of September 30, 2021. As a result, no impairment was recorded. Our indefinite-lived intangible asset carrying amounts did not change materially during the nine months ended September 30, 2021.
 
Purchased Intangible Assets.  Purchased intangible assets represent the estimated acquisition date fair value of acquired intangible assets used in our business. Purchased data files represent the estimated acquisition date fair value of consumer information files acquired primarily through the purchase of independent credit reporting agencies in the U.S., Canada and Australia. We expense the cost of modifying and updating credit files in the period such costs are incurred. We amortize all of our purchased intangible assets on a straight-line basis. 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 2020 Form 10-K.

Purchased intangible assets at September 30, 2021 and December 31, 2020 consisted of the following:
  September 30, 2021 December 31, 2020
Gross Accumulated
Amortization
Net Gross Accumulated
Amortization
Net
Definite-lived intangible assets: (In millions)
Purchased data files $ 1,107.4  $ (449.4) $ 658.0  $ 913.7  $ (399.2) $ 514.5 
Customer relationships 788.5  (348.9) 439.6  680.1  (331.4) 348.7 
Proprietary database 190.1  (44.8) 145.3  148.6  (30.7) 117.9 
Acquired software and technology 26.5  (13.8) 12.7  115.3  (106.6) 8.7 
Trade names and other intangible assets 20.4  (12.3) 8.1  14.4  (9.4) 5.0 
Non-compete agreements 11.1  (3.2) 7.9  6.5  (3.5) 3.0 
Total definite-lived intangible assets $ 2,144.0  $ (872.4) $ 1,271.6  $ 1,878.6  $ (880.8) $ 997.8 
 
Amortization expense related to purchased intangible assets was $40.1 million and $36.0 million during the three months ended September 30, 2021 and 2020, respectively. Amortization expense related to purchased intangible assets was $119.6 million and $105.8 million during the nine months ended September 30, 2021 and 2020, respectively.

16


Estimated future amortization expense related to definite-lived purchased intangible assets at September 30, 2021 is as follows:
Years ending December 31,
Amount
  (In millions)
2021 $ 41.6 
2022 164.7 
2023 158.0 
2024 149.0 
2025 145.5 
Thereafter 612.8 
  $ 1,271.6 


5. DEBT
 
Debt outstanding at September 30, 2021 and December 31, 2020 was as follows:
September 30, 2021 December 31, 2020
  (In millions)
Commercial paper $ 500.0  $ — 
Notes, 2.3%, due June 2021
  500.0 
Notes, 3.6%, due August 2021
  300.0 
Notes, Floating Rate, due August 2021   300.0 
Notes, 3.3%, due December 2022
500.0  500.0 
Notes, 3.95%, due June 2023
400.0  400.0 
Notes, 2.6%, due December 2024
750.0  750.0 
Notes, 2.6%, due December 2025
400.0  400.0 
Notes, 3.25%, due June 2026
275.0  275.0 
Term loan, due August 2026 700.0  — 
Debentures, 6.9%, due July 2028
125.0  125.0 
Notes, 3.1%, due May 2030
600.0  600.0 
Notes, 2.35%, due September 2031
1,000.0  — 
Notes, 7.0%, due July 2037
250.0  250.0 
Other 1.1  2.2 
Total debt 5,501.1  4,402.2 
Less short-term debt and current maturities (500.6) (1,101.1)
Less unamortized discounts and debt issuance costs (31.1) (23.8)
Total long-term debt, net $ 4,969.4  $ 3,277.3 
 
2.35% Senior Notes. On August 11, 2021, we issued $1.0 billion aggregate principal amount of 2.35% ten-year Senior Notes due 2031 (the “2031 Notes”) in an underwritten public offering. Interest on the 2031 Notes accrues at a rate of 2.35% per year and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2022. The net proceeds of the sale of the 2031 Notes were used to repay the $300.0 million 3.6% Senior Notes due 2021 and $300.0 million Floating Rate Notes due 2021. The remaining proceeds will be used for general corporate purposes, which may include the repayment of borrowings under the our commercial paper program or the funding of acquisitions, including the Company’s $1.825 billion acquisition of Appriss Insights. 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 2031 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.

2.6% and 3.1% Senior Notes. On April 22, 2020, we issued $400.0 million aggregate principal amount of 2.6% five-year Senior Notes due 2025 (the “2025 Notes”) and $600.0 million aggregate principal amount of 3.1% ten-year Senior Notes due 2030 (the “2030 Notes”) in an underwritten public offering. Interest on the 2025 Notes accrues at a rate of 2.6% per year
17


and is payable semi-annually in arrears on June 15 and December 15 of each year. Interest on the 2030 Notes accrues at a rate of 3.1% per year and is payable semi-annually in arrears on May 15 and November 15 of each year. The net proceeds of the sale of the notes were used to repay borrowings under a $225.0 million receivables funding facility (“Receivables Facility”) that was terminated in November 2020, while the remaining funds were used for general corporate purposes, which included the repayment of a portion of the 2021 debt maturities. We must comply with various non-financial covenants, including certain limitations on mortgages, liens and sale-leaseback transactions, as well as mergers and sales of substantially all of our assets. The 2025 Notes and 2030 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.

Senior Credit Facilities.  In August 2021, the Company refinanced the existing unsecured revolving credit facility of $1.1 billion set to expire September 2023, and entered into a new $1.5 billion five-year unsecured revolving credit facility (the “Revolver”) and a new $700.0 million delayed draw term loan (“Term Loan”), collectively known as the “Senior Credit Facilities,” both which mature in August 2026. Borrowings under the Senior Credit Facilities may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions, including the acquisition of Appriss Insights, 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. Availability of the Revolver is reduced by the outstanding principal balance of our commercial paper notes and by any letters of credit issued under the Revolver. As of September 30, 2021, there were $500.0 million of outstanding commercial paper notes, $0.7 million of letters of credit outstanding, no outstanding borrowings under the Revolver and $700 million outstanding under the Term Loan. Availability under the Revolver was $1.0 billion at September 30, 2021.
 
Commercial Paper Program.  In the third quarter of 2021, we increased the size of our commercial paper program from $1.1 billion to $1.5 billion, consistent with the increase in our Revolver. The $1.5 billion commercial paper program has been established through the private placement of commercial paper notes from time-to-time, in which borrowings may bear interest at either a floating rate or a fixed rate, plus the applicable margin. Maturities of commercial paper can range from overnight to 397 days. Because the commercial paper is backstopped by our Revolver, the amount of commercial paper 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, 2021, there were $500.0 million of outstanding commercial paper notes.

For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our 2020 Form 10-K.
 
6. COMMITMENTS AND CONTINGENCIES

Litigation, Claims and Government Investigations Related to the 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. consumers. Following the 2017 cybersecurity incident, hundreds of class actions and other lawsuits were filed against us typically alleging harm from the incident and seeking various remedies, including monetary and injunctive relief. We were also subject to investigations and inquiries by federal, state and foreign governmental agencies and officials regarding the 2017 cybersecurity incident and related matters. Most of these lawsuits and government investigations have concluded or been resolved, including pursuant to the settlement agreements described below, while others remain ongoing. The Company’s participation in these settlements does not constitute an admission by the Company of any fault or liability, and the Company does not admit fault or liability.

We believe it is probable that we will incur losses associated with certain of the proceedings and investigations related to the 2017 cybersecurity incident. In 2019, we recorded expenses, net of insurance recoveries, of $800.9 million in other current liabilities in our Consolidated Balance Sheets, exclusive of our legal and professional services expenses. The amount accrued represents our best estimate of the liability related to these matters. The Company will continue to evaluate information as it becomes known and adjust accruals for new information and further developments in accordance with ASC 450-20-25. While it is reasonably possible that losses exceeding the amount accrued may be incurred, it is not possible at this time to estimate the additional possible loss in excess of the amount already accrued that might result from adverse judgments, settlements, penalties or other resolution of the proceedings and investigations described below based on a number of factors, such as the various stages of these proceedings and investigations, including matters on appeal, that alleged damages have not been specified or are uncertain, the uncertainty as to the certification of a class or classes and the size of any certified class, as applicable, and the lack of resolution on significant factual and legal issues. The ultimate amount paid on these actions, claims and investigations in excess of the amount already accrued could be material to the Company’s consolidated financial condition, results of operations, or cash flows in future periods.

18


Consumer Settlement. On July 19, 2019 and July 22, 2019, we entered into multiple agreements that resolve the U.S. consolidated consumer class action cases, captioned In re: Equifax, Inc. Customer Data Security Breach Litigation, MDL No. 2800 (the “U.S. Consumer MDL Litigation”), and the investigations of the FTC, the CFPB, the Attorneys General of 48 states, the District of Columbia and Puerto Rico and the NYDFS (collectively, the “Consumer Settlement”). Under the terms of the Consumer Settlement, the Company will contribute $380.5 million to a non-reversionary settlement fund (the “Consumer Restitution Fund”) to provide restitution for U.S. consumers identified by the Company whose personal information was compromised as a result of the 2017 cybersecurity incident as well as to pay reasonable attorneys’ fees and reasonable costs and expenses for the plaintiffs’ counsel in the U.S. Consumer MDL Litigation (not to exceed $80.5 million), settlement administration costs and notice costs. The Company has agreed to contribute up to an additional $125.0 million to the Consumer Restitution Fund to cover certain unreimbursed costs and expenditures incurred by affected U.S. consumers in the event the $380.5 million in the Consumer Restitution Fund is exhausted. The Company also agreed to various business practice commitments related to consumer assistance and its information security program, including conducting third party assessments of its information security program.

On January 13, 2020, the Northern District of Georgia, the U.S. District Court overseeing centralized pre-trial proceedings for the U.S. Consumer MDL Litigation and numerous other federal court actions relating to the 2017 cybersecurity incident (the “MDL Court”), entered an order granting final approval of the settlement in connection with the U.S. Consumer MDL Litigation. The MDL Court entered an amended order granting final approval of the settlement (the “Final Approval Order”) on March 17, 2020. Several objectors appealed the Final Approval Order to the U.S. Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”). On June 3, 2021, the Eleventh Circuit issued an order reversing the MDL Court’s grant of incentive awards to class representatives, but affirming all other aspects of the Final Approval Order. Several objectors filed petitions with the Eleventh Circuit seeking a rehearing, and on July 29, 2021, the Eleventh Circuit denied those petitions. On August 12, 2021, the MDL Court made the Eleventh Circuit’s mandate the judgment of the MDL Court. Since that time, one objector has filed a petition for a writ of certiorari with the U.S. Supreme Court. The deadline for any other objectors to file such petitions is October 27, 2021. Until all such petitions to the U.S. Supreme Court are finally adjudicated or dismissed, we can provide no assurance that the U.S. Consumer MDL Litigation will be resolved as contemplated by the settlement agreement. If the Eleventh Circuit’s June 3, 2021 order affirming approval of the settlement (except with respect to incentive awards, as discussed above) is reviewed and reversed by the U.S. Supreme Court, there is a risk that we would not be able to settle the U.S. Consumer MDL Litigation on acceptable terms or at all, which could have a material adverse effect on our financial condition and results of operations.

Other Matters. We face other lawsuits and government investigations related to the 2017 cybersecurity incident that have not yet been concluded or resolved. These ongoing matters may result in judgments, fines or penalties, settlements or other relief. We dispute the allegations in the remaining lawsuits and intend to defend against such claims. Set forth below are descriptions of the main categories of these matters.

Georgia State Court Consumer Class Actions. Four putative class actions arising from the 2017 cybersecurity incident were filed against us in Fulton County Superior Court and Fulton County State Court in Georgia based on similar allegations and theories as alleged in the U.S. Consumer MDL Litigation and seek monetary damages, injunctive relief and other related relief on behalf of Georgia citizens. These cases were transferred to a single judge in the Fulton County Business Court and three of the cases were consolidated into a single action. On July 27, 2018, the Fulton County Business Court granted the Company’s motion to stay the remaining single case, and on August 17, 2018, the Fulton County Business Court granted the Company’s motion to stay the consolidated case. These cases remain stayed pending final resolution of the U.S. Consumer MDL Litigation.

Canadian Class Actions. Five putative Canadian class actions, four of which are on behalf of a national class of approximately 19,000 Canadian consumers, are pending against us in Ontario, British Columbia and Alberta. Each of the proposed Canadian class actions asserts a number of common law and statutory claims seeking monetary damages and other related relief in connection with the 2017 cybersecurity incident. In addition to seeking class certification on behalf of Canadian consumers whose personal information was allegedly impacted by the 2017 cybersecurity incident, in some cases, plaintiffs also seek class certification on behalf of a larger group of Canadian consumers who had contracts for subscription products with Equifax around the time of the incident or earlier and were not impacted by the incident.

On December 13, 2019, the court in Ontario granted certification of a nationwide class that includes all impacted Canadians as well as Canadians who had subscription products with Equifax between March 7, 2017 and July 30, 2017 who were not impacted by the incident. We appealed one of the claims on which a class was certified and on June 9, 2021, our appeal was granted by the Ontario Divisional Court. The plaintiff has since filed a notice of further appeal. All remaining purported class actions are at preliminary stages or stayed.

19


Government Investigations. We have cooperated with federal, state and foreign governmental agencies and officials investigating or otherwise seeking information, testimony and/or documents, regarding the 2017 cybersecurity incident and related matters and most of these investigations have been resolved as discussed in prior filings.

The U.K.’s Financial Conduct Authority (“FCA”) opened an enforcement investigation against our U.K. subsidiary, Equifax Limited, in October 2017. The investigation by the FCA has involved a number of information requirements and interviews. We continue to respond to the information requirements and are cooperating with the investigation.

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

Data Processing, Outsourcing Services and Other Agreements

We have separate agreements with Google, Amazon Web Services, IBM, Tata Consultancy Services and others to outsource portions of our network and security infrastructure, computer data processing operations, applications development, business continuity and recovery services, help desk service and desktop support functions, operation of our voice and data networks, maintenance and related functions and to provide certain other administrative and operational services. Annual payment obligations in regard to these agreements vary due to factors such as the volume of data processed; changes in our servicing needs as a result of new product offerings, acquisitions or divestitures; the introduction of significant new technologies; foreign currency; or the general rate of inflation. In certain circumstances (e.g., a change in control or for our convenience), we may terminate these data processing and outsourcing agreements, and, in doing so, certain of these agreements require us to pay significant termination fees.

Guarantees and General Indemnifications

We may issue standby letters of credit and performance and surety bonds in the normal course of business. The aggregate notional amounts of all performance and surety bonds and standby letters of credit was not material at September 30, 2021 and generally have a remaining maturity of one year or less. We may issue other guarantees in the ordinary course of business. The maximum potential future payments we could be required to make under the guarantees in the ordinary course of business was not material at September 30, 2021. We have agreed to guarantee the liabilities and performance obligations (some of which have limitations) of a certain debt collections and recovery management variable interest entity under its commercial agreements.

We have agreed to standard indemnification clauses in many of our lease agreements for office space, covering such things as tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. 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 conjunction with certain transactions, such as sales or purchases of operating assets or services in the ordinary course of business, or the disposition of certain assets or businesses, we sometimes provide routine indemnifications, the terms of which range in duration and sometimes are not limited. Additionally, the Company has entered into indemnification agreements with its directors and executive officers to indemnify such individuals to the fullest extent permitted by applicable law against liabilities that arise by reason of their status as directors or officers. The Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations.

We cannot reasonably estimate our potential future payments under the guarantees and indemnities and related provisions described above because we cannot predict when and under what circumstances these provisions may be triggered.

Contingencies

In addition to the matters set forth above, we are involved in legal and regulatory matters, government investigations, claims and litigation arising in the ordinary course of business. We periodically assess our exposure related to these matters based on the information that is available. 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.

For additional information about these and other commitments and contingencies, see Note 6 of the Notes to Consolidated Financial Statements in our 2020 Form 10-K.

20


7. INCOME TAXES
 
We are subject to U.S. 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 2017 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 $6.7 million.
 
Effective Tax Rate

Our effective income tax rate was 22.1% for the three months ended September 30, 2021, compared to 25.1% for the three months ended September 30, 2020. Our effective income tax rate was 22.9% for the nine months ended September 30, 2021, compared to 24.1% for the nine months ended September 30, 2020. Our effective tax rate was lower for the third quarter and first nine months of 2021 as compared to 2020 due to a lower foreign income tax rate differential in 2021 due to the changes in fair value of our investment in Brazil.

In the first quarter of 2020, the adverse economic effects of the COVID-19 pandemic caused the Company to reassess the need for valuation allowances against deferred tax assets. As a result of this analysis, the Company determined it was necessary to place valuation allowances against deferred tax assets of certain subsidiaries. The total amount of the valuation allowances recorded in the first quarter of 2020 was approximately $7.0 million.

8. ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Changes in accumulated other comprehensive loss by component, after tax, for the nine months ended September 30, 2021, are as follows:
Foreign
currency
Pension and other
postretirement
benefit plans
Cash flow
hedging
transactions
Total
  (In millions)
Balance, December 31, 2020 $ (168.4) $ (2.0) $ (1.0) $ (171.4)
Other comprehensive income before reclassifications (84.9)     (84.9)
Amounts reclassified from accumulated other comprehensive loss   0.6    0.6 
Net current-period other comprehensive income (loss) (84.9) 0.6    (84.3)
Balance, September 30, 2021 $ (253.3) $ (1.4) $ (1.0) $ (255.7)
 
Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of September 30, 2021.

9. RESTRUCTURING CHARGES
 
In the fourth quarter of 2020, we recorded $31.9 million ($24.3 million, net of tax) 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. To date, we have paid $25.5 million of the 2020 restructuring costs with $4.3 million and $21.5 million of it paid during the three and nine months ended September 30, 2021, respectively. The remaining future payments are expected to be completed in the fourth quarter of 2021.

10. SEGMENT INFORMATION
 
Reportable Segments.  We manage our business and report our financial results through the following four reportable segments, which are the same as our operating segments:

Workforce Solutions
U.S. Information Solutions (“USIS”)
International
Global Consumer Solutions (“GCS”)
21


 
The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in our 2020 Form 10-K. We evaluate the performance of these reportable segments based on their operating revenues, operating income and operating margins, excluding unusual or infrequent items, if any. The measurement criteria for segment profit or loss and segment assets are substantially the same for each reportable segment. Inter-segment sales and transfers are not material for all periods presented. All transactions between segments are accounted for at fair market value or cost depending on the nature of the transaction, and no timing differences occur between segments.
 
A summary of segment products and services is as follows:
 
Workforce Solutions.  This segment includes employment, income and social security number verification services as well as complementary payroll-based transaction services and employment tax management services.

U.S. Information Solutions.  This segment includes consumer and commercial information services (such as credit information and credit scoring, credit modeling services and portfolio analytics (decisioning tools), which are derived from our databases of business credit and financial information, locate services, fraud detection and prevention services, identity verification services and other consulting services); mortgage loan origination services; financial marketing services; and identity management.
 
International.  This 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, Latin America and Canada, we also provide information, technology and services to support debt collections and recovery management.
 
Global Consumer Solutions.  This segment includes credit information, credit monitoring and identity theft protection products sold directly and indirectly to consumers via the internet and in various hard-copy formats in the U.S., Canada, and the U.K. We also sell consumer and credit information to resellers who combine our information with other information to provide direct to consumer monitoring, reports and scores.

Operating revenue and operating income by operating segment during the three and nine months ended September 30, 2021 and 2020 are as follows:
  Three Months Ended Nine Months Ended
(In millions) September 30, September 30,
Operating revenue: 2021 2020 2021 2020
Workforce Solutions $ 508.0  $ 376.8  $ 1,484.5  $ 1,031.4 
U.S. Information Solutions 387.8  386.3  1,203.0  1,095.1 
International 245.4  218.0  737.7  614.6 
Global Consumer Solutions 81.7  87.2  245.5  268.0 
Total operating revenue $ 1,222.9  $ 1,068.3  $ 3,670.7  $ 3,009.1 
 
  Three Months Ended Nine Months Ended
(In millions) September 30, September 30,
Operating income: 2021 2020 2021 2020
Workforce Solutions $ 253.1  $ 193.2  $ 783.0  $ 500.8 
U.S. Information Solutions 116.7  128.6  382.5  349.3 
International 27.9  25.4  85.1  34.5 
Global Consumer Solutions 11.8  12.5  37.7  33.4 
General Corporate Expense (136.3) (155.3) (402.5) (410.8)
Total operating income $ 273.2  $ 204.4  $ 885.8  $ 507.2 

22


Total assets by operating segment at September 30, 2021 and December 31, 2020 are as follows:
  September 30, December 31,
(In millions) 2021 2020
Total assets:    
Workforce Solutions $ 2,019.2  $ 1,601.3 
U.S. Information Solutions 2,912.6  2,177.1 
International 3,268.8  3,368.3 
Global Consumer Solutions 328.5  319.1 
General Corporate 2,554.2  2,146.0 
Total assets $ 11,083.3  $ 9,611.8 

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
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.
 
All references to earnings per share data in Management’s Discussion and Analysis, or MD&A, are to diluted earnings per share, or EPS, unless otherwise noted. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding.
 
BUSINESS OVERVIEW
 
Equifax Inc. 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 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 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.

We currently operate in four global regions: North America (U.S. and Canada), Asia Pacific (Australia, New Zealand and India), Europe (the U.K., Spain and Portugal) and Latin America (Argentina, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay). 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 and Singapore and have an investment in a consumer and commercial credit information company in Brazil.

Recent Events and Company Outlook
As further described in our 2020 Form 10-K, we operate in the U.S., which represented 78% of our revenue in 2020, and internationally in more than 20 countries. Our products and services span a wide variety of vertical markets including financial services, mortgage, federal, state and local governments, automotive, telecommunications and many others.
In March 2020, the World Health Organization designated the novel coronavirus disease (“COVID-19”) as a global pandemic. The impact of COVID-19 and related actions to attempt to control its spread began to impact our consolidated operating results in the first quarter of 2020. During 2020, the impact on the operating results in each country in which we operate differed based on the conditions and the vertical markets we serve in that country with the impact of the pandemic experienced most severely by our International business. Details of the impact of COVID-19 to our 2020 results can be found under the heading “Segment Financial Results” in the Management’s Discussion and Analysis of Financial Condition and Results of Operation section of the 2020 Form 10-K. In the third quarter and first nine months of 2021, as efforts to minimize the spread of COVID-19 have been more successful and access to vaccinations has increased, our consolidated revenue grew when compared to 2020, reflecting the U.S. mortgage market demand in 2021 compared to 2020, recovering country
23


economies, Equifax-initiative growth and, to a lesser extent, revenue from acquired companies. A more thorough discussion of our business unit results are included under the heading “Segment Financial Results” in the Management’s Discussion and Analysis of Financial Condition and Results of Operation section of this Form 10-Q. We are unable to determine the severity or duration of the impact of the COVID-19 pandemic on the individual markets in the countries we serve or how this impact will change with time. Although consolidated revenue has grown during the third quarter and first nine months of 2021 when compared to 2020, due to the uncertain effects on the global economy caused by the impact of COVID-19, the impact on our future results of operations related to the COVID-19 pandemic are unclear.

We expect that the global COVID-19 pandemic will continue to impact our business and results of operations. While the COVID-19 pandemic affects the countries in which we operate, our critical priorities remain as follows:

(i)the health and safety of our employees and their families;
(ii)providing support to consumers;
(iii)helping our customers execute their changing business plans by providing innovative solutions combining our unique data assets and leading analytical and technology capabilities; and
(iv)executing on our cloud technology, data and security transformation per our previously stated plans.
We are generally following the requirements and protocols published by the U.S. Centers for Disease Control and the World Health Organization, and federal, state and local governments. In jurisdictions where local restrictions have been lifted, as is the case at our major U.S. locations, our employees are returning to work to their assigned offices in conjunction with jurisdictional guidance. In jurisdictions where the local restrictions that were implemented to prevent the further spread of the virus allow, our employees can work from their assigned offices or from home. Generally across our facilities, we have undertaken actions to make these sites safer. We have also substantially reduced employee travel. If public health authorities dictate further measures to limit further spread of the virus, we may need to reinstate our business continuity plans in certain countries or regions in which we operate. As of the date of this filing, we do not believe our work from home and return to office protocols have materially adversely impacted our internal controls, financial reporting systems or our operations.
Our data and analytics, product and sales teams are focused on how to refine existing products and services, as well as generate new products and services, to meet the changing needs of our customers in this environment. Our technology teams continue to execute on our cloud technology, data and security transformation, including the continued migration of our technology to cloud native environments. To date, the change to our working environment has not caused material disruptions in the execution of these plans.
As a response to the ongoing COVID-19 pandemic, we implemented plans to manage our costs. We limited the addition of new employees and third party contracted services, limited most travel except where necessary to meet customer or regulatory needs, and acted to limit discretionary spending. The pace of recovery of the global economy from the COVID-19 induced recession remains uncertain and may affect certain markets or regions we serve differently. Any future asset impairment charges, increase in allowance for doubtful accounts, or restructuring charges could be more likely and will be dependent on the severity and duration of the pandemic.
In light of the evolving health, social, economic and business environment, governmental regulations or mandates, and business disruptions that could occur, the potential impact that COVID-19 could have on our financial condition and operating results remains uncertain.
For more information, see “Item 1A. Risk Factors—Our business has been and will continue to be negatively impacted by the recent COVID-19 outbreak,” in our 2020 Form 10-K.
24


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. consumers. 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.
As a result of the 2017 cybersecurity incident, we were subject to a significant number of proceedings and investigations as described in Part II, “Item 1. Legal Proceedings” in this Form 10-Q. We did not record any settlement expenses related to the resolution of these proceedings and investigations for the three or nine months ended September 30, 2021 and 2020. To date, we have recorded legal settlement expenses, net of insurance recoveries, of $800.9 million in selling, general, and administrative expenses in our Consolidated Statements of Income (Loss). As of September 30, 2021, $345.0 million is outstanding on the Consolidated Balance Sheet within other current liabilities related to the U.S. Consumer MDL Litigation. The amounts accrued represent our best estimate of the liability related to these matters. The Company will continue to evaluate information as it becomes known and adjust accruals for new information and further developments in accordance with ASC 450-20-25.
Future Costs
We are currently executing substantial initiatives in security and consumer support, and a company-wide transformation of our technology platforms to cloud based technologies, which we refer to as our technology transformation, and incurred substantially increased expenses and capital expenditures in 2018, 2019 and 2020 related to these initiatives. We expect to continue to incur additional expenses and capital expenditures in the remainder of 2021 related to these initiatives, although at reduced levels compared to those incurred in 2020.

We will recognize the expenses and capital expenditures referenced herein as they are incurred.

Segment and Geographic Information

Segments.  The Workforce Solutions segment consists of the Verification Services and Employer Services business lines. Verification Services revenue is transaction-based and is derived primarily from employment and income verification. Employer Services revenue is derived from our provision of certain human resources business process outsourcing services that include both transaction and subscription based product offerings. These services include unemployment claims management, employment-based tax credit services and other complementary employment-based transaction services.

The USIS segment consists of three service lines: Online Information Solutions, Mortgage Solutions, and Financial Marketing Services. Online Information Solutions and Mortgage Solutions revenue is principally transaction-based and is derived from our sales of products such as consumer and commercial credit reporting and scoring, identity management, fraud detection and modeling services. USIS also markets certain decisioning software services that facilitate and automate a variety of consumer and commercial credit-oriented decisions. Financial Marketing Services revenue is principally project and subscription based and is derived from our sales of batch credit and consumer wealth information such as those that assist clients in acquiring new customers, cross-selling to existing customers and managing portfolio risk.
 
The International segment consists of Asia Pacific, Europe, Latin America and Canada. Canada’s services are similar to our USIS offerings. Asia Pacific, Europe and Latin America are made up of varying mixes of service lines that are generally consistent with those in our USIS reportable segment. We also provide information and technology services to support lenders and other creditors in the collections and recovery management process.
 
GCS revenue is both transaction and subscription based and is derived from the sale of credit monitoring and identity theft protection products, which we deliver electronically to consumers primarily via the internet in the U.S., Canada, and the
25


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

Geographic Information.  We currently have operations in the following countries: Argentina, Australia, Canada, Chile, Costa Rica, Ecuador, El Salvador, Honduras, India, Mexico, New Zealand, Paraguay, Peru, Portugal, the Republic of Ireland, Spain, the U.K., Uruguay and the U.S. We also offer Equifax branded credit services in Russia through a joint venture, have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia and Singapore and have an investment in a consumer and commercial credit information company in Brazil. Approximately 79% and 78% of our revenue was generated in the U.S. during the three months ended September 30, 2021 and 2020, respectively. Approximately 79% and 78% of our revenue was generated in the U.S. during the nine months ended September 30, 2021 and 2020, respectively.
 
Key Performance Indicators.  Management focuses on a variety of key indicators to monitor operating and financial performance. These performance indicators include measurements of operating revenue, change in operating revenue, operating income, operating margin, net income, diluted earnings per share, cash provided by operating activities and capital expenditures. The key performance indicators for the three and nine months ended September 30, 2021 and 2020 were as follows:
Key Performance Indicators
Three Months Ended September 30, Nine months ended September 30,
2021 2020 2021 2020
(In millions, except per share data) (In millions, except per share data)
Operating revenue $ 1,222.9  $ 1,068.3  $ 3,670.7  $ 3,009.1 
Operating revenue change 14  % 22  % 22  % 16  %
Operating income $ 273.2  $ 204.4  $ 885.8  $ 507.2 
Operating margin 22.3  % 19.1  % 24.1  % 16.9  %
Net income attributable to Equifax $ 205.4  $ 228.5  $ 622.1  $ 445.7 
Diluted earnings per share $ 1.66  $ 1.86  $ 5.04  $ 3.63 
Cash provided by operating activities $ 398.4  $ 367.0  $ 949.5  $ 649.0 
Capital expenditures* $ 121.0  $ (112.3) $ 345.9  $ (309.6)

*Amounts include accruals for capital expenditures.
 
Operational and Financial Highlights
 
We repurchased 0.4 million shares of our common stock on the open market for $69.9 million during the first nine months of 2021. At September 30, 2021, $520.2 million was available for future purchases of common stock under our share repurchase authorization.

We paid out $142.6 million or $1.17 per share in dividends to our shareholders during the first nine months of 2021.
 
26


RESULTS OF OPERATIONS—THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
 
Consolidated Financial Results
 
Operating Revenue
  Three Months Ended September 30, Change Nine Months Ended September 30, Change
Consolidated Operating Revenue 2021 2020 $ % 2021 2020 $ %
  (In millions) (In millions)
Workforce Solutions $ 508.0  $ 376.8  $ 131.2  35  % $ 1,484.5  $ 1,031.4  $ 453.1  44