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 June 30, ~~2022~~2023


☐			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 July ~~8, 2022,~~7, 2023, there were ~~122,400,219~~122,720,094 shares of the registrant’s common stock outstanding.

EQUIFAX INC.

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED JUNE 30, ~~2022~~2023

INDEX


		Page
PART I.	Financial Information	4
Item 1.	Financial Statements (Unaudited)	4
	Consolidated Statements of Income—Three Months Ended June 3 0 , ~~2022~~2023 and ~~2021~~2022	4
	Consolidated Statements of Income—Six Months Ended June 30, ~~2022~~202 3 and ~~2021~~20 2 2	5
	Consolidated Statements of Comprehensive ~~Income—Three~~Income —Three and Six Months Ended June 30, 202 3 0 and 20 ~~, 2022 and 2021~~2 2	6

	Consolidated Balance Sheets—June 3 0 , ~~2022~~2023 and December 31, ~~2021~~2022	7
	Consolidated Statements of Cash Flows—Six M ~~onths~~ Months Ended June 3 0 , ~~2022~~2023 and ~~2021~~2022	8
	Consolidated Statements of Shareholders' Equity—Three Months Ended June 3 0 , 2023 and 2022	9

	Consolidated Statements of Shareholders' Equity and Accumulated Other Comprehensive Loss—~~Three~~Six Months Ended June 30, 202 3 0 and 20 ~~, 2022 and 2021~~2	9
	~~Consolidated Statements of Shareholders' Equity and Accumulated Other Comprehensive Loss—Six Months Ended June 30, 2022 and 2021~~2	10
	Notes to Consolidated Financial Statements (Unaudited)	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3534
Item 4.	Controls and Procedures	3534
PART II.	Other Information	3635
Item 1.	Legal Proceedings	3635
Item 1A.	Risk Factors	3736
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3736
Item 6.	Exhibits	3938
Signatures		4039

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 future operating performance and events or developments that we expect or anticipate will occur in the future, including statements relating to future operating results, improvements in our information technology and data security infrastructure, including as a part of our cloud data and technology transformation, our strategy, the expected financial and operational benefits, synergies and growth from our acquisitions, ~~our ability to mitigate or manage disruptions posed by COVID-19, the extent of the impact of COVID-19,~~ changes ~~in the U.S. mortgage market environment, as well as changes more generally~~ in U.S. and worldwide economic conditions, such as rising interest rates and inflation, that materially impact consumer spending, consumer debt and employment and the demand for Equifax's products and services, our culture, our ability to innovate, the market acceptance of new products and services and similar statements about our business plans are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. 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.~~projections, including without limitation our expectations regarding the Company’s outlook, long-term organic and inorganic growth, and customer acceptance of our business solutions referenced above under “Item 1. Business” and below in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation — Business Overview.” 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, ~~2021,~~2022, 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.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


		Three Months Ended June 30,					Three Months Ended June 30,
		2022		2021			2023		2022
(In millions, except per share amounts)	(In millions, except per share amounts)					(In millions, except per share amounts)
Operating revenue	Operating revenue	$	1,316.7	$	1,234.8	Operating revenue	$	1,317.6	$	1,316.7
Operating expenses:	Operating expenses:					Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	Cost of services (exclusive of depreciation and amortization below)	542.1		483.0		Cost of services (exclusive of depreciation and amortization below)	588.0		542.1
Selling, general and administrative expenses	Selling, general and administrative expenses	330.2		328.4		Selling, general and administrative expenses	343.1		330.2
Depreciation and amortization	Depreciation and amortization	139.8		117.4		Depreciation and amortization	149.6		139.8
Total operating expenses	Total operating expenses	1,012.1		928.8		Total operating expenses	1,080.7		1,012.1
Operating income	Operating income	304.6		306.0		Operating income	236.9		304.6
Interest expense	Interest expense	(41.6)		(34.9)		Interest expense	(60.7)		(41.6)
Other income, net	Other income, net	1.8		6.0		Other income, net	15.9		1.8
Consolidated income before income taxes	Consolidated income before income taxes	264.8		277.1		Consolidated income before income taxes	192.1		264.8
Provision for income taxes	Provision for income taxes	(63.4)		(61.2)		Provision for income taxes	(52.7)		(63.4)

Consolidated net income	Consolidated net income	201.4		215.9		Consolidated net income	139.4		201.4
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(0.8)		(0.8)		Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(1.1)		(0.8)

Net income attributable to Equifax	Net income attributable to Equifax	$	200.6	$	215.1	Net income attributable to Equifax	$	138.3	$	200.6

Basic earnings per common share:	Basic earnings per common share:					Basic earnings per common share:

Net income attributable to Equifax	Net income attributable to Equifax	$	1.64	$	1.77	Net income attributable to Equifax	$	1.13	$	1.64
Weighted-average shares used in computing basic earnings per share	Weighted-average shares used in computing basic earnings per share	122.4		121.8		Weighted-average shares used in computing basic earnings per share	122.7		122.4
Diluted earnings per common share:	Diluted earnings per common share:					Diluted earnings per common share:

Net income attributable to Equifax	Net income attributable to Equifax	$	1.63	$	1.74	Net income attributable to Equifax	$	1.12	$	1.63
Weighted-average shares used in computing diluted earnings per share	Weighted-average shares used in computing diluted earnings per share	123.3		123.5		Weighted-average shares used in computing diluted earnings per share	123.8		123.3
Dividends per common share	Dividends per common share	$	0.39	$	0.39	Dividends per common share	$	0.39	$	0.39

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


		Six Months Ended June 30,					Six Months Ended June 30,
		2022		2021			2023		2022
(In millions, except per share amounts)	(In millions, except per share amounts)					(In millions, except per share amounts)
Operating revenue	Operating revenue	$	2,680.0	$	2,447.8	Operating revenue	$	2,619.6	$	2,680.0
Operating expenses:	Operating expenses:					Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	Cost of services (exclusive of depreciation and amortization below)	1,095.5		966.2		Cost of services (exclusive of depreciation and amortization below)	1,168.4		1,095.5
Selling, general and administrative expenses	Selling, general and administrative expenses	670.5		637.3		Selling, general and administrative expenses	709.2		670.5
Depreciation and amortization	Depreciation and amortization	276.9		231.7		Depreciation and amortization	299.8		276.9
Total operating expenses	Total operating expenses	2,042.9		1,835.2		Total operating expenses	2,177.4		2,042.9
Operating income	Operating income	637.1		612.6		Operating income	442.2		637.1
Interest expense	Interest expense	(81.4)		(72.1)		Interest expense	(118.3)		(81.4)
Other income, net	Other income, net	12.9		5.1		Other income, net	20.4		12.9
Consolidated income before income taxes	Consolidated income before income taxes	568.6		545.6		Consolidated income before income taxes	344.3		568.6
Provision for income taxes	Provision for income taxes	(144.4)		(126.8)		Provision for income taxes	(91.4)		(144.4)

Consolidated net income	Consolidated net income	424.2		418.8		Consolidated net income	252.9		424.2
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(1.8)		(2.1)		Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(2.3)		(1.8)

Net income attributable to Equifax	Net income attributable to Equifax	$	422.4	$	416.7	Net income attributable to Equifax	$	250.6	$	422.4

Basic earnings per common share:	Basic earnings per common share:					Basic earnings per common share:

Net income attributable to Equifax	Net income attributable to Equifax	$	3.45	$	3.42	Net income attributable to Equifax	$	2.04	$	3.45
Weighted-average shares used in computing basic earnings per share	Weighted-average shares used in computing basic earnings per share	122.3		121.8		Weighted-average shares used in computing basic earnings per share	122.6		122.3
Diluted earnings per common share:	Diluted earnings per common share:					Diluted earnings per common share:

Net income attributable to Equifax	Net income attributable to Equifax	$	3.42	$	3.38	Net income attributable to Equifax	$	2.03	$	3.42
Weighted-average shares used in computing diluted earnings per share	Weighted-average shares used in computing diluted earnings per share	123.4		123.4		Weighted-average shares used in computing diluted earnings per share	123.7		123.4
Dividends per common share	Dividends per common share	$	0.78	$	0.78	Dividends per common share	$	0.78	$	0.78

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		Three Months Ended June 30,												Three Months Ended June 30,
		2022				2021								2023						2022
		Equifax Shareholders		Noncontrolling Interests		Total		Equifax Shareholders		Noncontrolling Interests		Total				Equifax Shareholders		Noncontrolling Interests			Total		Equifax Shareholders		Noncontrolling Interests		Total
		(In millions)												(In millions)
Net income	Net income	$	200.6	$	0.8	$	201.4	$	215.1	$	0.8	$	215.9		Net income	$	138.3	$	1.1		$	139.4	$	200.6	$	0.8	$	201.4
Other comprehensive income (loss):	Other comprehensive income (loss):														Other comprehensive income (loss):
Foreign currency translation adjustment	Foreign currency translation adjustment	(196.2)		0.1		(196.1)		4.8		(0.4)		4.4			Foreign currency translation adjustment	15.2		(0.2)			15.0		(196.2)		0.1		(196.1)
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	(0.5)		—		(0.5)		(0.3)		—		(0.3)			Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	—		—			—		(0.5)		—		(0.5)

Comprehensive income	Comprehensive income	$	3.9	$	0.9	$	4.8	$	219.6	$	0.4	$	220.0		Comprehensive income	$	153.5	$	0.9		$	154.4	$	3.9	$	0.9	$	4.8


		Six Months Ended June 30,												Six Months Ended June 30,
		2022				2021								2023						2022
		Equifax Shareholders		Noncontrolling Interests		Total		Equifax Shareholders		Noncontrolling Interests		Total				Equifax Shareholders		Noncontrolling Interests			Total		Equifax Shareholders		Noncontrolling Interests		Total
		(In millions)												(In millions)
Net income	Net income	$	422.4	$	1.8	$	424.2	$	416.7	$	2.1	$	418.8		Net income	$	250.6	$	2.3		$	252.9	$	422.4	$	1.8	$	424.2
Other comprehensive income (loss):	Other comprehensive income (loss):														Other comprehensive income (loss):
Foreign currency translation adjustment	Foreign currency translation adjustment	(118.2)		(0.2)		(118.4)		15.2		0.5		15.7			Foreign currency translation adjustment	27.8		0.1			27.9		(118.2)		(0.2)		(118.4)
Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	(0.8)		—		(0.8)		(0.6)		—		(0.6)			Change in unrecognized prior service cost related to our pension and other postretirement benefit plans, net	—		—			—		(0.8)		—		(0.8)

Comprehensive income	Comprehensive income	$	303.4	$	1.6	$	305.0	$	431.3	$	2.6	$	433.9		Comprehensive income	$	278.4	$	2.4		$	280.8	$	303.4	$	1.6	$	305.0

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In millions, except par values)	(In millions, except par values)	June 30, 2022		December 31, 2021		(In millions, except par values)	June 30, 2023		December 31, 2022
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	223.6	$	224.7	Cash and cash equivalents	$	164.1	$	285.2
Trade accounts receivable, net of allowance for doubtful accounts of $15.6 and $13.9 at June 30, 2022 and December 31, 2021, respectively		892.9		727.6
Trade accounts receivable, net of allowance for doubtful accounts of $17.0 and $19.1 at June 30, 2023 and December 31, 2022, respectively						Trade accounts receivable, net of allowance for doubtful accounts of $17.0 and $19.1 at June 30, 2023 and December 31, 2022, respectively	935.9		857.7
Prepaid expenses	Prepaid expenses	153.9		108.4		Prepaid expenses	148.7		134.3
Other current assets	Other current assets	82.9		60.2		Other current assets	66.7		93.3
Total current assets	Total current assets	1,353.3		1,120.9		Total current assets	1,315.4		1,370.5
Property and equipment:	Property and equipment:					Property and equipment:
Capitalized internal-use software and system costs	Capitalized internal-use software and system costs	1,908.7		1,727.3		Capitalized internal-use software and system costs	2,350.9		2,139.1
Data processing equipment and furniture	Data processing equipment and furniture	302.7		299.6		Data processing equipment and furniture	284.2		281.4
Land, buildings and improvements	Land, buildings and improvements	256.5		250.3		Land, buildings and improvements	264.9		261.6
Total property and equipment	Total property and equipment	2,467.9		2,277.2		Total property and equipment	2,900.0		2,682.1
Less accumulated depreciation and amortization	Less accumulated depreciation and amortization	(1,034.0)		(961.3)		Less accumulated depreciation and amortization	(1,178.0)		(1,095.1)
Total property and equipment, net	Total property and equipment, net	1,433.9		1,315.9		Total property and equipment, net	1,722.0		1,587.0
Goodwill	Goodwill	6,238.7		6,258.1		Goodwill	6,401.2		6,383.9
Indefinite-lived intangible assets	Indefinite-lived intangible assets	94.9		94.9		Indefinite-lived intangible assets	94.9		94.8
Purchased intangible assets, net	Purchased intangible assets, net	1,827.4		1,898.0		Purchased intangible assets, net	1,699.1		1,818.5
Other assets, net	Other assets, net	273.0		353.1		Other assets, net	305.3		293.2
Total assets	Total assets	$	11,221.2	$	11,040.9	Total assets	$	11,537.9	$	11,547.9
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Short-term debt and current maturities of long-term debt	Short-term debt and current maturities of long-term debt	$	1,611.7	$	824.8	Short-term debt and current maturities of long-term debt	$	169.1	$	967.2
Accounts payable	Accounts payable	190.4		211.6		Accounts payable	148.3		250.8
Accrued expenses	Accrued expenses	224.6		237.5		Accrued expenses	271.1		229.0
Accrued salaries and bonuses	Accrued salaries and bonuses	158.7		257.9		Accrued salaries and bonuses	128.8		138.7
Deferred revenue	Deferred revenue	109.4		121.3		Deferred revenue	109.7		132.9
Other current liabilities	Other current liabilities	338.4		638.2		Other current liabilities	265.2		296.6
Total current liabilities	Total current liabilities	2,633.2		2,291.3		Total current liabilities	1,092.2		2,015.2
Long-term debt	Long-term debt	4,073.5		4,470.1		Long-term debt	5,503.0		4,820.1
Deferred income tax liabilities, net	Deferred income tax liabilities, net	395.4		358.2		Deferred income tax liabilities, net	460.5		460.3
Long-term pension and other postretirement benefit liabilities	Long-term pension and other postretirement benefit liabilities	121.3		130.1		Long-term pension and other postretirement benefit liabilities	97.4		100.4
Other long-term liabilities	Other long-term liabilities	176.8		190.0		Other long-term liabilities	176.5		178.6
Total liabilities	Total liabilities	7,400.2		7,439.7		Total liabilities	7,329.6		7,574.6
Commitments and Contingencies (see Note 6)	Commitments and Contingencies (see Note 6)	0		0		Commitments and Contingencies (see Note 6)

Equifax shareholders' equity:	Equifax shareholders' equity:					Equifax shareholders' equity:
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none	Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none	—		—		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 June 30, 2022 and December 31, 2021; Outstanding shares - 122.4 and 122.1 at June 30, 2022 and December 31, 2021, respectively		236.6		236.6
Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at June 30, 2023 and December 31, 2022; Outstanding shares - 122.7 and 122.5 at June 30, 2023 and December 31, 2022, respectively						Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at June 30, 2023 and December 31, 2022; Outstanding shares - 122.7 and 122.5 at June 30, 2023 and December 31, 2022, respectively	236.6		236.6
Paid-in capital	Paid-in capital	1,563.2		1,536.7		Paid-in capital	1,650.5		1,594.2
Retained earnings	Retained earnings	5,078.1		4,751.6		Retained earnings	5,410.5		5,256.0
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(414.4)		(295.4)		Accumulated other comprehensive loss	(445.9)		(473.7)
Treasury stock, at cost, 66.3 shares and 66.6 shares at June 30, 2022 and December 31, 2021, respectively		(2,652.6)		(2,639.2)
Stock held by employee benefit trusts, at cost, 0.6 shares at June 30, 2022 and December 31, 2021		(5.9)		(5.9)
Treasury stock, at cost, 66.0 shares and 66.2 shares at June 30, 2023 and December 31, 2022, respectively						Treasury stock, at cost, 66.0 shares and 66.2 shares at June 30, 2023 and December 31, 2022, respectively	(2,654.6)		(2,650.7)
Stock held by employee benefit trusts, at cost, 0.6 shares at June 30, 2023 and December 31, 2022						Stock held by employee benefit trusts, at cost, 0.6 shares at June 30, 2023 and December 31, 2022	(5.9)		(5.9)

Total Equifax shareholders’ equity	Total Equifax shareholders’ equity	3,805.0		3,584.4		Total Equifax shareholders’ equity	4,191.2		3,956.5
Noncontrolling interests including redeemable noncontrolling interests	Noncontrolling interests including redeemable noncontrolling interests	16.0		16.8		Noncontrolling interests including redeemable noncontrolling interests	17.1		16.8
Total equity	Total equity	3,821.0		3,601.2		Total equity	4,208.3		3,973.3
Total liabilities and equity	Total liabilities and equity	$	11,221.2	$	11,040.9	Total liabilities and equity	$	11,537.9	$	11,547.9

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


		Six Months Ended June 30,					Six Months Ended June 30,
		2022		2021			2023		2022
		(In millions)					(In millions)
Operating activities:	Operating activities:					Operating activities:
Consolidated net income	Consolidated net income	$	424.2	$	418.8	Consolidated net income	$	252.9	$	424.2
Adjustments to reconcile consolidated net income to net cash provided by operating activities:	Adjustments to reconcile consolidated net income to net cash provided by operating activities:					Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation and amortization	Depreciation and amortization	281.2		236.4		Depreciation and amortization	304.3		281.2
Stock-based compensation expense	Stock-based compensation expense	36.7		33.9		Stock-based compensation expense	52.2		36.7

Deferred income taxes	Deferred income taxes	26.7		14.1		Deferred income taxes	(5.6)		26.7
(Gain) loss on fair market value adjustment and gain on sale of equity investments		(2.4)		17.5
Gain on divestiture		—		(0.2)
Gain on fair market value adjustment and gain on sale of equity investments						Gain on fair market value adjustment and gain on sale of equity investments	(13.6)		(2.4)

Changes in assets and liabilities, excluding effects of acquisitions:	Changes in assets and liabilities, excluding effects of acquisitions:					Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net	Accounts receivable, net	(170.5)		(51.3)		Accounts receivable, net	(75.3)		(170.5)
Other assets, current and long-term	Other assets, current and long-term	(43.4)		5.3		Other assets, current and long-term	(10.0)		(43.4)
Current and long term liabilities, excluding debt	Current and long term liabilities, excluding debt	(475.7)		(123.4)		Current and long term liabilities, excluding debt	(91.9)		(475.7)
Cash provided by operating activities	Cash provided by operating activities	76.8		551.1		Cash provided by operating activities	413.0		76.8
Investing activities:	Investing activities:					Investing activities:
Capital expenditures	Capital expenditures	(315.4)		(235.5)		Capital expenditures	(321.3)		(315.4)
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	(111.4)		(861.6)		Acquisitions, net of cash acquired	(4.3)		(111.4)

Cash received from divestiture		98.1		1.5
Cash received from divestitures						Cash received from divestitures	6.9		98.1

Cash used in investing activities	Cash used in investing activities	(328.7)		(1,095.6)		Cash used in investing activities	(318.7)		(328.7)
Financing activities:	Financing activities:					Financing activities:
Net short-term borrowings	Net short-term borrowings	386.7		(0.6)		Net short-term borrowings	(411.2)		386.7
Payments on long-term debt	Payments on long-term debt	—		(500.1)		Payments on long-term debt	(575.0)		—
Borrowings on long-term debt						Borrowings on long-term debt	872.9		—

Treasury stock purchases		—		(69.9)
Dividends paid to Equifax shareholders	Dividends paid to Equifax shareholders	(95.7)		(95.0)		Dividends paid to Equifax shareholders	(95.6)		(95.7)
Dividends paid to noncontrolling interests	Dividends paid to noncontrolling interests	(2.4)		(5.8)		Dividends paid to noncontrolling interests	(2.1)		(2.4)
Proceeds from exercise of stock options and employee stock purchase plan	Proceeds from exercise of stock options and employee stock purchase plan	8.7		25.1		Proceeds from exercise of stock options and employee stock purchase plan	16.5		8.7
Payment of taxes related to settlement of equity awards	Payment of taxes related to settlement of equity awards	(32.3)		(30.4)		Payment of taxes related to settlement of equity awards	(16.9)		(32.3)

Purchase of noncontrolling interests		—		(3.6)

Debt issuance costs						Debt issuance costs	(5.8)		—

Cash provided by (used in) financing activities		265.0		(680.3)
Cash (used in) provided by financing activities						Cash (used in) provided by financing activities	(217.2)		265.0
Effect of foreign currency exchange rates on cash and cash equivalents	Effect of foreign currency exchange rates on cash and cash equivalents	(14.2)		(1.7)		Effect of foreign currency exchange rates on cash and cash equivalents	1.8		(14.2)
Decrease in cash and cash equivalents	Decrease in cash and cash equivalents	(1.1)		(1,226.5)		Decrease in cash and cash equivalents	(121.1)		(1.1)
Cash and cash equivalents, beginning of period	Cash and cash equivalents, beginning of period	224.7		1,684.6		Cash and cash equivalents, beginning of period	285.2		224.7
Cash and cash equivalents, end of period	Cash and cash equivalents, end of period	$	223.6	$	458.1	Cash and cash equivalents, end of period	$	164.1	$	223.6

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

For the Three Months Ended June 30, ~~2022~~2023


		Equifax Shareholders																														Equifax Shareholders
									Accumulated Other Comprehensive Loss								Stock Held By Employee Benefits Trusts																										Accumulated Other Comprehensive Loss						Stock Held By Employee Benefits Trusts
		Common Stock																												Common Stock
		Shares Outstanding	Amount		Paid-In Capital		Retained Earnings				Treasury Stock								Noncontrolling Interests				Total Equity							Shares Outstanding			Amount			Paid-In Capital			Retained Earnings						Treasury Stock						Noncontrolling Interests			Total Equity
		(In millions, except per share amounts)																														(In millions, except per share amounts)
Balance, March 31, 2022		122.3	$	236.6	$	1,548.8	$	4,925.5			$	(217.7)			$	(2,653.2)			$	(5.9)			$	17.0			$	3,851.1
Balance, March 31, 2023																													Balance, March 31, 2023			122.6		$	236.6		$	1,631.1		$	5,320.3		$	(461.1)		$	(2,657.0)		$	(5.9)		$	18.2		$	4,082.2

Net income	Net income	—	—		—		200.6				—				—				—				0.8				201.4				Net income		—			—			—			138.3			—			—			—			1.1			139.4
Other comprehensive income (loss)	Other comprehensive income (loss)	—	—		—		—		(196.7)				—				—				0.1				(196.6)				Other comprehensive income (loss)			—		—			—			—			15.2			—			—			(0.2)			15.0
Shares issued under stock and benefit plans, net of minimum tax withholdings	Shares issued under stock and benefit plans, net of minimum tax withholdings	0.1	—		(0.2)		—		—				0.6				—				—				0.4				Shares issued under stock and benefit plans, net of minimum tax withholdings			0.1		—			6.6			—			—			2.4			—			—			9.0

Cash dividends ($0.39 per share)	Cash dividends ($0.39 per share)	—	—		—		(48.0)		—				—				—				—				(48.0)				Cash dividends ($0.39 per share)			—		—			—			(48.1)			—			—			—			—			(48.1)
Dividends paid to employee benefits trusts	Dividends paid to employee benefits trusts	—	—		0.2		—		—				—				—				—				0.2				Dividends paid to employee benefits trusts			—		—			0.2			—			—			—			—			—			0.2
Stock-based compensation expense	Stock-based compensation expense	—	—		14.4		—		—				—				—				—				14.4				Stock-based compensation expense			—		—			12.6			—			—			—			—			—			12.6

Dividends paid to noncontrolling interests	Dividends paid to noncontrolling interests	—	—		—		—		—				—				—				(1.9)				(1.9)				Dividends paid to noncontrolling interests			—		—			—			—			—			—			—			(2.0)			(2.0)

Balance, June 30, 2022		122.4	$	236.6	$	1,563.2	$	5,078.1	$	(414.4)			$	(2,652.6)			$	(5.9)			$	16.0			$	3,821.0
Balance, June 30, 2023																													Balance, June 30, 2023			122.7		$	236.6		$	1,650.5		$	5,410.5		$	(445.9)		$	(2,654.6)		$	(5.9)		$	17.1		$	4,208.3

For the Three Months Ended June 30, ~~2021~~2022

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, March 31, 2021 121.7 $ 236.6 $ 1,489.5 $ 4,342.0 $ (161.3) $ (2,582.9) $ (5.9) $ 39.0 $ 3,357.0
Net income — — — 215.1 — — — 0.8 215.9
Other comprehensive income — — — — 4.5 — — (0.4) 4.1
Shares issued under stock and benefit plans, net of minimum tax withholdings 0.3 — 4.0 — — (7.1) — — (3.1)
Treasury stock purchased under share repurchase program (0.2) — — — — (35.9) — — (35.9)
Cash dividends ($0.39 per share) — — — (47.8) — — — — (47.8)
Dividends paid to employee benefits trusts — — 0.2 — — — — — 0.2
Stock-based compensation expense — — 13.3 — — — — — 13.3
Redeemable noncontrolling interest adjustment — — — (3.6) — — — 3.6 —
Dividends paid to noncontrolling interests — — — — — — — (5.1) (5.1)
Other — — (0.2) — — — — 0.2 —
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


	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, March 31, 2022	122.3	$	236.6	$	1,548.8	$	4,925.5	$	(217.7)	$	(2,653.2)	$	(5.9)	$	17.0	$	3,851.1
Net income	—	—		—		200.6		—		—		—		0.8		201.4
Other comprehensive income (loss)	—	—		—		—		(196.7)		—		—		0.1		(196.6)
Shares issued under stock and benefit plans, net of minimum tax withholdings	0.1	—		(0.2)		—		—		0.6		—		—		0.4

Cash dividends ($0.39 per share)	—	—		—		(48.0)		—		—		—		—		(48.0)
Dividends paid to employee benefits trusts	—	—		0.2		—		—		—		—		—		0.2
Stock-based compensation expense	—	—		14.4		—		—		—		—		—		14.4


Dividends paid to noncontrolling interests	—	—		—		—		—		—		—		(1.9)		(1.9)



Balance, June 30, 2022	122.4	$	236.6	$	1,563.2	$	5,078.1	$	(414.4)	$	(2,652.6)	$	(5.9)	$	16.0	$	3,821.0

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE LOSS

(Unaudited)

For the Six Months Ended June 30, ~~2022~~2023


		Equifax Shareholders																														Equifax Shareholders
									Accumulated Other Comprehensive Loss								Stock Held By Employee Benefits Trusts																										Accumulated Other Comprehensive Loss								Stock Held By Employee Benefits Trusts
		Common Stock																										Common Stock
		Shares Outstanding	Amount		Paid-In Capital		Retained Earnings				Treasury Stock								Noncontrolling Interests			Total Equity								Shares Outstanding			Amount			Paid-In Capital			Retained Earnings						Treasury Stock								Noncontrolling Interests			Total Equity
		(In millions, except per share amounts)																														(In millions, except per share amounts)
Balance, December 31, 2021		122.1	$	236.6	$	1,536.7	$	4,751.6			$	(295.4)			$	(2,639.2)				$	(5.9)		$	16.8		$	3,601.2
Balance, December 31, 2022																													Balance, December 31, 2022			122.5		$	236.6		$	1,594.2		$	5,256.0				$	(473.7)			$	(2,650.7)				$	(5.9)		$	16.8		$	3,973.3

Net income	Net income	—	—		—		422.4				—				—				—			1.8			424.2						Net income		—			—			—			250.6			—				—				—			2.3			252.9
Other comprehensive loss		—	—		—		—		(119.0)				—				—			(0.2)			(119.2)
Other comprehensive income																													Other comprehensive income			—		—			—			—			27.8				—				—			0.1			27.9
Shares issued under stock and benefit plans, net of minimum tax withholdings	Shares issued under stock and benefit plans, net of minimum tax withholdings	0.3	—		(10.4)		—		—				(13.4)				—			—			(23.8)						Shares issued under stock and benefit plans, net of minimum tax withholdings			0.2		—			3.6			—			—				(3.9)				—			—			(0.3)

Cash dividends ($0.78 per share)	Cash dividends ($0.78 per share)	—	—		—		(95.9)		—				—				—			—			(95.9)						Cash dividends ($0.78 per share)			—		—			—			(96.1)			—				—				—			—			(96.1)
Dividends paid to employee benefits trusts	Dividends paid to employee benefits trusts	—	—		0.2		—		—				—				—			—			0.2						Dividends paid to employee benefits trusts			—		—			0.5			—			—				—				—			—			0.5
Stock-based compensation expense	Stock-based compensation expense	—	—		36.7		—		—				—				—			—			36.7						Stock-based compensation expense			—		—			52.2			—			—				—				—			—			52.2

Dividends paid to noncontrolling interests	Dividends paid to noncontrolling interests	—	—		—		—		—				—				—			(2.4)			(2.4)						Dividends paid to noncontrolling interests			—		—			—			—			—				—				—			(2.1)			(2.1)

Balance, June 30, 2022		122.4	$	236.6	$	1,563.2	$	5,078.1	$	(414.4)			$	(2,652.6)			$	(5.9)		$	16.0		$	3,821.0
Balance, June 30, 2023																													Balance, June 30, 2023			122.7		$	236.6		$	1,650.5		$	5,410.5		$	(445.9)			$	(2,654.6)			$	(5.9)		$	17.1		$	4,208.3

*~~At June 30, 2022, $520.2 million was available for future purchases of common stock under our share repurchase authorization.~~

For the Six Months Ended June 30, ~~2021~~2022

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 — — — 416.7 — — — 2.1 418.8
Other comprehensive income — — — — 14.6 — — 0.5 15.1
Shares issued under stock and benefit plans, net of minimum tax withholdings 0.4 — 3.7 — — (9.0) — — (5.3)
Treasury stock purchased under share repurchase program (0.4) — — — — (69.9) — — (69.9)
Cash dividends ($0.78 per share) — — — (95.5) — — — — (95.5)
Dividends paid to employee benefits trusts — — 0.5 — — — — — 0.5
Stock-based compensation expense — — 33.9 — — — — — 33.9
Redeemable noncontrolling interest adjustment — — — (0.9) — — — 0.9 —
Dividends paid to noncontrolling interests — — — — — — — (5.8) (5.8)
Purchases of noncontrolling interests — — (1.8) — — — — (1.8) (3.6)
Other — — (0.2) — — — — 0.3 0.1
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


	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, 2021	122.1	$	236.6	$	1,536.7	$	4,751.6	$	(295.4)	$	(2,639.2)	$	(5.9)	$	16.8	$	3,601.2
Net income	—	—		—		422.4		—		—		—		1.8		424.2
Other comprehensive loss	—	—		—		—		(119.0)		—		—		(0.2)		(119.2)
Shares issued under stock and benefit plans, net of minimum tax withholdings	0.3	—		(10.4)		—		—		(13.4)		—		—		(23.8)

Cash dividends ($0.78 per share)	—	—		—		(95.9)		—		—		—		—		(95.9)
Dividends paid to employee benefits trusts	—	—		0.2		—		—		—		—		—		0.2
Stock-based compensation expense	—	—		36.7		—		—		—		—		—		36.7


Dividends paid to noncontrolling interests	—	—		—		—		—		—		—		(2.4)		(2.4)



Balance, June 30, 2022	122.4	$	236.6	$	1,563.2	$	5,078.1	$	(414.4)	$	(2,652.6)	$	(5.9)	$	16.0	$	3,821.0

Accumulated Other Comprehensive Loss consists of the following components:


		June 30, 2022		December 31, 2021			June 30, 2023		December 31, 2022
		(In millions)					(In millions)
Foreign currency translation	Foreign currency translation	$	(410.7)	$	(292.5)	Foreign currency translation	$	(441.5)	$	(469.3)
Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $0.7 and $0.4 at June 30, 2022 and December 31, 2021, respectively		(2.7)		(1.9)
Cash flow hedging transactions, net of accumulated tax of $0.6 at June 30, 2022 and December 31, 2021		(1.0)		(1.0)
Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $1.1 and $1.2 at June 30, 2023 and December 31, 2022, respectively						Unrecognized prior service cost related to our pension and other postretirement benefit plans, net of accumulated tax of $1.1 and $1.2 at June 30, 2023 and December 31, 2022, respectively	(3.4)		(3.4)
Cash flow hedging transactions, net of accumulated tax of $0.6 at June 30, 2023 and December 31, 2022						Cash flow hedging transactions, net of accumulated tax of $0.6 at June 30, 2023 and December 31, 2022	(1.0)		(1.0)

Accumulated other comprehensive loss	Accumulated other comprehensive loss	$	(414.4)	$	(295.4)	Accumulated other comprehensive loss	$	(445.9)	$	(473.7)

See Notes to Consolidated Financial Statements.

EQUIFAX INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, ~~2022~~2023

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, organize and manage various types of financial, demographic, employment, criminal ~~history~~justice data 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 June 30, ~~2022,~~2023, we operated in the following countries: Argentina, Australia, Canada, Chile, Costa Rica, Dominican Republic, 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 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 have a joint venture in Russia that offers consumer credit services; however, we determined as of March 31, 2022 to exit our ownership position, wrote the value of the investment to zero and expect no future economic benefit from the joint venture's operations going forward.

We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, criminal ~~history,~~justice data, 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, ~~2021~~2022 (“~~2021~~2022 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 reporting period. 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. 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 June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions)
Weighted-average shares outstanding (basic) 122.4 121.8 122.3 121.8
Effect of dilutive securities:
Stock options and restricted stock units 0.9 1.7 1.1 1.6
Weighted-average shares outstanding (diluted) 123.3 123.5 123.4 123.4


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In millions)
Weighted-average shares outstanding (basic)	122.7	122.4	122.6	122.3
Effect of dilutive securities:
Stock options and restricted stock units	1.1	0.9	1.1	1.1
Weighted-average shares outstanding (diluted)	123.8	123.3	123.7	123.4

For the three and six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, stock options that were anti-dilutive were not material.

Financial Instruments. Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and short and long-term debt. The carrying amounts of these items, other than long-term debt, approximate their fair market values due to the short-term nature of these instruments. The fair value of our fixed-rate debt is determined using Level 2 inputs such as quoted market prices for publicly traded instruments, and for non-publicly traded instruments, through valuation techniques depending on the specific characteristics of the debt instrument, taking into account credit risk. As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the fair value of our long-term debt, including the current portion, was ~~$4.7~~$5.2 billion and ~~$5.2~~$4.8 billion compared to its carrying value of ~~$5.0~~$5.6 billion and $5.3 billion, respectively.

Fair Value Measurements. Fair value is determined based on the assumptions marketplace participants use in pricing an asset or liability. We use a three level fair value hierarchy to prioritize the inputs used in valuation techniques between observable inputs that reflect quoted prices in active markets, inputs other than quoted prices with observable market data and unobservable data (e.g., a company’s own data).

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. We completed ~~multiple acquisitions~~one acquisition during the six months ended June 30, ~~2022~~2023 and multiple acquisitions during the year ended December 31, ~~2021.~~2022. The values of ~~certain~~net assets acquired were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of definite-lived intangible assets acquired in these acquisitions were estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates in the present value calculations.

Trade Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at cost and are due in less than a year. 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, the establishment of specific reserves for customers in an adverse financial condition and adjusted based upon our expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. We reassess the adequacy of the allowance for doubtful accounts each reporting period. Increases to the allowance for doubtful accounts are recorded as bad debt expense, which are included in selling, general and administrative expenses on the accompanying Consolidated Statements of Income. Below is a rollforward of our allowance for doubtful accounts for the three and six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021			2023		2022		2023		2022
		(In millions)									(In millions)
Allowance for doubtful accounts, beginning of period	Allowance for doubtful accounts, beginning of period	$	14.9	$	11.8	$	13.9	$	12.9	Allowance for doubtful accounts, beginning of period	$	20.1	$	14.9	$	19.1	$	13.9
Current period bad debt expense	Current period bad debt expense	1.8		0.3		3.0		—		Current period bad debt expense	1.7		1.8		5.2		3.0
Write-offs, net of recoveries	Write-offs, net of recoveries	(1.1)		(0.9)		(1.3)		(1.7)		Write-offs, net of recoveries	(4.8)		(1.1)		(7.3)		(1.3)
Allowance for doubtful accounts, end of period	Allowance for doubtful accounts, end of period	$	15.6	$	11.2	$	15.6	$	11.2	Allowance for doubtful accounts, end of period	$	17.0	$	15.6	$	17.0	$	15.6

Other Current Assets. Other current assets on our Consolidated Balance Sheets primarily include amounts receivable related to vendor rebates and 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 June 30, ~~2022,~~2023, these assets were ~~$26.8~~$25.7 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.~~Company and long-term deferred tax assets.

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 $87.7 million as of June 30, 2023 based on quoted market prices, resulting in an unrealized gain of $4.3 million and $7.2 million for the three and six months ended June 30, 2023.

The carrying value of the investment was $54.1 million as of June 30, 2022, ~~based on quoted market prices,~~ resulting in an unrealized loss of $34.2 million and $6.4 million for the three and six months ended June 30, 2022. ~~The carrying value of the investment was $117.9 million as of June 30, 2021, resulting in an unrealized loss of~~

$5.6 million and $17.5 million for the three and six months ended June 30, 2021. We have a joint venture in Russia that offers consumer credit services; however, we determined as of March 31, 2022 to exit our ownership position, expect no future economic benefit from the joint venture's operations going forward and recorded a $19.5 million loss to fully impair the investment. All unrealized gains or losses on these investments were recorded in Other income, net within the Consolidated Statements of Income.

During the quarter ended June 30, 2023, we sold our interest in an equity investment. The overall sale proceeds exceeded the total carrying value of the investments, and we have recorded a gain of $6.2 million in Other income, net within the Consolidated Statements of Income. During the quarter ended June 30, 2022, we sold our interest in 2two equity investments. The overall sale proceeds exceeded the total carrying value of the investments, and we ~~have~~ recorded a gain of $27.5 million 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 our operating lease liabilities and various accrued liabilities such as ~~costs related to the 2017 cybersecurity incident as described more fully in Note 6,~~ interest expense, ~~and~~income taxes, accrued employee ~~benefits.~~benefits, and insurance expense. Other current liabilities also include the offset to other current assets related to amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services. As of June 30, ~~2022,~~2023, these funds were ~~$26.8~~$25.7 million. These amounts are restricted as to their current use and will be released according to the specific customer agreements.

~~Recent~~Change in Accounting ~~Pronouncements.~~Principle. In October 2021, the ~~FASB~~Financial Accounting Standards Board ("FASB") issued ~~ASU~~Accounting Standards Update ("ASU") No. 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The update provides clarifying guidance to reduce diversity in practice stating that contract assets, ~~and~~ contract liabilities and deferred revenue acquired in business combinations should be measured in accordance with Accounting Standards Topic 606, rather than the fair value principles of Accounting Standards Topic 805. ASU 2021-08 is effective for all public business entities for annual periods beginning after December 15, ~~2022, although early adoption is permitted.~~2022. This guidance must be applied on a prospective basis. As of January 1, 2023, we have adopted this standard as it relates to our current year business combinations. The adoption of this guidance isdid not ~~expected to~~ have a material impact on our financial position, results of operations or cash flows.

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. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The update extends the sunset date from ASU No. 2020-04 from December 31, 2022, to December 31, 2024. After this date, entities will no longer be permitted to apply the relief in Topic 848. 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 June 30,				Change				Six Months Ended June 30,				Change					Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
Consolidated Operating Revenue	Consolidated Operating Revenue	2022		2021		$		%		2022		2021		$		%		Consolidated Operating Revenue	2023		2022		$		%		2023		2022		$		%
		(In millions)								(In millions)									(In millions)								(In millions)
Verification Services	Verification Services	$	504.5	$	394.5	$	110.0	28	%	$	1,017.8	779.6		$	238.2	31	%	Verification Services	$	474.0	$	504.5	$	(30.5)	(6)	%	$	929.8	1,017.8		$	(88.0)	(9)	%
Employer Services	Employer Services	104.7		107.5		(2.8)		(3)	%	240.3		209.6		30.7		15	%	Employer Services	108.8		104.7		4.1		4	%	249.3		240.3		9.0		4	%
Total Workforce Solutions	Total Workforce Solutions	609.2		502.0		107.2		21	%	1,258.1		989.2		268.9		27	%	Total Workforce Solutions	582.8		609.2		(26.4)		(4)	%	1,179.1		1,258.1		(79.0)		(6)	%
Online Information Solutions	Online Information Solutions	329.2		347.8		(18.6)		(5)	%	673.0		699.9		(26.9)		(4)	%	Online Information Solutions	358.6		329.2		29.4		9	%	699.6		673.0		26.6		4	%
Mortgage Solutions	Mortgage Solutions	36.8		49.3		(12.5)		(25)	%	80.3		103.4		(23.1)		(22)	%	Mortgage Solutions	30.3		36.8		(6.5)		(18)	%	63.5		80.3		(16.8)		(21)	%
Financial Marketing Services	Financial Marketing Services	55.4		58.6		(3.2)		(5)	%	101.1		111.8		(10.7)		(10)	%	Financial Marketing Services	56.1		55.4		0.7		1	%	103.6		101.1		2.5		2	%
Total U.S. Information Solutions	Total U.S. Information Solutions	421.4		455.7		(34.3)		(8)	%	854.4		915.1		(60.7)		(7)	%	Total U.S. Information Solutions	445.0		421.4		23.6		6	%	866.7		854.4		12.3		1	%
Asia Pacific	Asia Pacific	90.1		91.6		(1.5)		(2)	%	176.6		178.6		(2.0)		(1)	%	Asia Pacific	87.7		90.1		(2.4)		(3)	%	177.6		176.6		1.0		1	%
Europe	Europe	79.8		76.7		3.1		4	%	165.6		153.7		11.9		8	%	Europe	78.7		79.8		(1.1)		(1)	%	154.4		165.6		(11.2)		(7)	%
Canada	Canada	64.0		64.7		(0.7)		(1)	%	125.7		125.4		0.3		—	%	Canada	66.5		64.0		2.5		4	%	129.6		125.7		3.9		3	%
Latin America	Latin America	52.2		44.1		8.1		18	%	99.6		85.8		13.8		16	%	Latin America	56.9		52.2		4.7		9	%	112.2		99.6		12.6		13	%
Total International	Total International	286.1		277.1		9.0		3	%	567.5		543.5		24.0		4	%	Total International	289.8		286.1		3.7		1	%	573.8		567.5		6.3		1	%
Total operating revenue	Total operating revenue	$	1,316.7	$	1,234.8	$	81.9	7	%	$	2,680.0	$	2,447.8	$	232.2	9	%	Total operating revenue	$	1,317.6	$	1,316.7	$	0.9	—	%	$	2,619.6	$	2,680.0	$	(60.4)	(2)	%

Remaining Performance Obligation – We have elected to disclose only the remaining performance obligations for those contracts with an expected duration of greater than one year and do not disclose the value of remaining performance obligations for contracts in which we recognize revenue at the amount to which we have the right to invoice. We expect to recognize as revenue the following amounts related to our remaining performance obligations as of June 30, ~~2022,~~2023, inclusive of foreign exchange impact:


Performance Obligation	Amount
	(In millions)
Less than 1 year	$	~~29.3~~26.4
1 to 3 years	~~36.6~~31.0
3 to 5 years	~~18.8~~15.2
Thereafter	~~30.3~~23.5
Total remaining performance obligation	$	~~115.0~~96.1

3. ACQUISITIONS AND INVESTMENTS

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

2022 Acquisitions and Investments. In the first quarter of 2022, the Company acquired 100% of Efficient Hire, a provider of cloud recruiting, onboarding and HRhuman resources management solutions, within the Workforce Solutions operating segment, and Data Crédito, a consumer credit reporting agency in the Dominican Republic, within the International operating segment. These acquisitions expand the Company's data assets and product offerings and broaden our geographic footprint. The Company has accounted for these acquisitions 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 purchase price allocations for the acquisitions are not yet finalized and open areas relate to measurement of income taxes and working capital. Accordingly, adjustments may be made to the values of the assets and liabilities assumed as additional information is obtained about the facts and circumstances that existed at the valuation date.

~~2021 Acquisitions and Investments.~~ In the first quarter of 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.

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~~test as of September 30.

Changes in the amount of goodwill for the six months ended June 30, ~~2022,~~2023, are as follows:


		Workforce Solutions		U.S. Information Solutions		International		Total			Workforce Solutions		U.S. Information Solutions		International		Total

Balance, December 31, 2021		$	2,365.4	$	1,900.1	$	1,992.6	$	6,258.1
Balance, December 31, 2022										Balance, December 31, 2022	$	2,520.8	$	2,004.8	$	1,858.3	$	6,383.9
Acquisitions	Acquisitions	44.9		—		27.0		71.9		Acquisitions	—		—		4.4		4.4
Adjustments to initial purchase price allocation	Adjustments to initial purchase price allocation	1.4		(0.2)		(5.2)		(4.0)		Adjustments to initial purchase price allocation	(0.1)		2.2		0.3		2.4
Foreign currency translation	Foreign currency translation	—		—		(87.3)		(87.3)		Foreign currency translation	0.1		—		10.4		10.5

Balance, June 30, 2022		$	2,411.7	$	1,899.9	$	1,927.1	$	6,238.7
Balance, June 30, 2023										Balance, June 30, 2023	$	2,520.8	$	2,007.0	$	1,873.4	$	6,401.2

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.~~30, at which point the estimated fair value of our indefinite-lived intangibles exceeded the carrying value. Our indefinite-lived intangible asset carrying amounts did not change materially during the six months ended June 30, ~~2022.~~2023.

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~~and commercial data files acquired ~~primarily~~ through ~~the purchase~~our acquisitions of various companies, including a fraud and identity solutions provider and independent credit reporting agencies in the U.S., Australia, Dominican Republic and Canada. 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 ~~2021~~2022 Form 10-K.

Purchased intangible assets at June 30, ~~2022~~2023 and December 31, ~~2021~~2022 consisted of the following:


		June 30, 2022						December 31, 2021							June 30, 2023						December 31, 2022
		Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net			Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite-lived intangible assets:	Definite-lived intangible assets:	(In millions)												Definite-lived intangible assets:	(In millions)
Purchased data files	Purchased data files	$	1,100.2	$	(495.6)	$	604.6	$	1,103.1	$	(466.0)	$	637.1	Purchased data files	$	1,088.0	$	(562.9)	$	525.1	$	1,090.0	$	(527.8)	$	562.2
Customer relationships	Customer relationships	825.8		(377.3)		448.5		805.2		(354.9)		450.3		Customer relationships	878.2		(442.9)		435.3		874.6		(407.4)		467.2

Proprietary database	Proprietary database	708.0		(87.1)		620.9		710.2		(59.3)		650.9		Proprietary database	706.3		(143.3)		563.0		705.9		(115.0)		590.9
Acquired software and technology	Acquired software and technology	164.3		(29.3)		135.0		160.0		(18.9)		141.1		Acquired software and technology	222.7		(57.4)		165.3		225.4		(42.6)		182.8
Trade names and other intangible assets	Trade names and other intangible assets	25.0		(15.5)		9.5		23.9		(12.6)		11.3		Trade names and other intangible assets	22.4		(19.0)		3.4		26.7		(19.6)		7.1
Non-compete agreements	Non-compete agreements	13.6		(4.7)		8.9		11.0		(3.7)		7.3		Non-compete agreements	14.5		(7.5)		7.0		14.5		(6.2)		8.3
Total definite-lived intangible assets	Total definite-lived intangible assets	$	2,836.9	$	(1,009.5)	$	1,827.4	$	2,813.4	$	(915.4)	$	1,898.0	Total definite-lived intangible assets	$	2,932.1	$	(1,233.0)	$	1,699.1	$	2,937.1	$	(1,118.6)	$	1,818.5

Amortization expense related to purchased intangible assets was ~~$57.9~~$60.3 million and ~~$40.1~~$57.9 million during the three months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively. Amortization expense related to purchased intangible assets was ~~$115.2~~$121.0 million and ~~$79.5~~$115.2 million during the six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at June 30, ~~2022~~2023 is as follows:


Years ending December 31,	Years ending December 31,	Amount		Years ending December 31,	Amount
		(In millions)			(In millions)
2022		$	115.3
2023	2023	223.5		2023	$	119.6
2024	2024	212.9		2024	227.9
2025	2025	207.9		2025	223.1
2026	2026	195.9		2026	209.0
2027				2027	196.2
Thereafter	Thereafter	871.9		Thereafter	723.3
		$	1,827.4		$	1,699.1

5. DEBT

Debt outstanding at June 30, ~~2022~~2023 and December 31, ~~2021~~2022 was as follows:


		June 30, 2022		December 31, 2021			June 30, 2023		December 31, 2022
		(In millions)					(In millions)
Commercial paper	Commercial paper	$	711.0	$	321.9	Commercial paper	$	156.0	$	566.8

Notes, 3.3%, due December 2022		500.0		500.0
Notes, 3.95%, due June 2023	Notes, 3.95%, due June 2023	400.0		400.0		Notes, 3.95%, due June 2023	—		400.0
Notes, 2.6%, due December 2024	Notes, 2.6%, due December 2024	750.0		750.0		Notes, 2.6%, due December 2024	750.0		750.0
Notes, 2.6%, due December 2025	Notes, 2.6%, due December 2025	400.0		400.0		Notes, 2.6%, due December 2025	400.0		400.0
Notes, 3.25%, due June 2026	Notes, 3.25%, due June 2026	275.0		275.0		Notes, 3.25%, due June 2026	275.0		275.0

Term loan, due August 2026	Term loan, due August 2026	700.0		700.0		Term loan, due August 2026	700.0		700.0
Notes, 5.10%, due December 2027						Notes, 5.10%, due December 2027	750.0		750.0
Notes, 5.10%, due June 2028						Notes, 5.10%, due June 2028	700.0		—
Debentures, 6.9%, due July 2028	Debentures, 6.9%, due July 2028	125.0		125.0		Debentures, 6.9%, due July 2028	125.0		125.0
Notes, 3.1%, due May 2030	Notes, 3.1%, due May 2030	600.0		600.0		Notes, 3.1%, due May 2030	600.0		600.0
Notes, 2.35%, due September 2031	Notes, 2.35%, due September 2031	1,000.0		1,000.0		Notes, 2.35%, due September 2031	1,000.0		1,000.0
Notes, 7.0%, due July 2037	Notes, 7.0%, due July 2037	250.0		250.0		Notes, 7.0%, due July 2037	250.0		250.0
Other	Other	0.7		3.2		Other	—		0.4
Total debt	Total debt	5,711.7		5,325.1		Total debt	5,706.0		5,817.2
Less short-term debt and current maturities	Less short-term debt and current maturities	(1,611.7)		(824.8)		Less short-term debt and current maturities	(169.1)		(967.2)
Less unamortized discounts and debt issuance costs	Less unamortized discounts and debt issuance costs	(26.5)		(30.2)		Less unamortized discounts and debt issuance costs	(33.9)		(29.9)
Total long-term debt, net	Total long-term debt, net	$	4,073.5	$	4,470.1	Total long-term debt, net	$	5,503.0	$	4,820.1

~~2.35%~~5.1% Senior ~~Notes~~Notes.. In ~~August 2021,~~May 2023, we issued ~~$1.0 billion~~$700.0 million aggregate principal amount of ~~2.35% ten-year~~5.1% five-year Senior Notes due ~~2031~~2028 (the ~~“2031 Notes”~~"2028 Notes") in an underwritten public offering. Interest on the ~~2031~~2028 Notes accrues at a rate of ~~2.35%~~5.1% per year and is payable semi-annually in arrears on ~~March 15~~June 1 and ~~September 15~~December 1 of each year. The net proceeds of the sale of the ~~2031~~2028 Notes were ultimately used to repay our then-outstanding ~~$300.0~~$400.0 million ~~3.6%~~3.95% Senior Notes due ~~2021 and $300.0 million Floating Rate Notes due 2021.~~June 2023 at maturity. The remaining proceeds were used to position us to fund the merger of Boa Vista Serviços S.A., a Brazilian consumer credit bureau and for general corporate purposes, including the repayment of borrowings under our commercial paper ~~program and the funding of acquisitions, including our acquisition of Appriss Insights in the fourth quarter of 2021.~~program. 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~~2028 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.

5.1% Senior Notes. In September 2022, we issued $750.0 million aggregate principal amount of 5.1% five-year Senior Notes due 2027 (the "2027 Notes") in an underwritten public offering. Interest on the 2027 Notes accrues at a rate of 5.1% per year and is payable semi-annually in arrears on June 15 and December 15 of each year. The net proceeds of the sale of the 2027 Notes were ultimately used to repay, in October 2022, our then-outstanding $500.0 million 3.30% Senior Notes due December 2022. The remaining proceeds were used for general corporate purposes, including the repayment of borrowings under our commercial paper program. 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 2027 Notes are unsecured and rank equally with all of our other unsecured and unsubordinated indebtedness.

Senior Credit Facilities. In August 2021, we refinanced our 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 of which mature in August 2026. In March 2023, we amended our Senior Credit Facilities agreement to adjust our debt covenant requirements and incorporate the Secured Overnight Financing Rate (SOFR) into our agreement, among other changes. Borrowings under the Senior Credit Facilities may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions and for other general corporate purposes. The Revolver includes an option to request a maximum of 3three 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 June 30, ~~2022,~~2023, there were ~~$711.0~~$156.0 million of outstanding commercial paper notes, $0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver and $700.0 million outstanding under the Term Loan. Availability under the Revolver was ~~$788.6~~$1,343.6 million at June 30, ~~2022.~~2023.

Commercial Paper Program. In the third quarter of 2021, we increased the size of our commercial paper (“CP”) program from $1.1 billion to $1.5 billion, consistent with the increase in our Revolver. The $1.5 billion CP 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 variable or a fixed rate, plus the applicable margin. Maturities of CP can range from overnight to 397 days. Because the CP is backstopped by our Revolver, the amount of CP which may be issued under the program is reduced by the outstanding face amount of any letters of credit issued and by the outstanding borrowings under our Revolver. At June 30, ~~2022,~~2023, there were ~~$711.0~~$156.0 million of outstanding CP notes. We have disclosed the net short-term borrowing activity for the quarter ended June 30, 2023 in the Consolidated Statements of Cash Flows. There are no CP borrowings or payments with a maturity date greater than 90 days and less than 365 days for the three months ended June 30, 2023.

For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our ~~2021~~2022 Form 10-K.

6. COMMITMENTS AND CONTINGENCIES

~~Litigation, Claims and Government Investigations Related to the 2017 Cybersecurity Incident.~~ Canadian Class Actions. In 2017, we experienced a cybersecurity incident following a criminal attack on our systems that involved the theft of ~~certain personally identifiable~~personal 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 and in prior filings, 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.

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.

~~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”). The Consumer Settlement became effective on January 11, 2022. Under the terms of the Consumer Settlement, the Company contributed $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.

~~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 these matters.

~~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 with the Ontario Court of Appeal, ~~which was argued before~~and on November 25, 2022, the Ontario Court of Appeal dismissed the plaintiff’s appeal and upheld the Divisional Court’s ruling in ~~June 2022.~~our favor. On January 24, 2023, the plaintiff appealed this decision to the Supreme Court of Canada, and on July 13, 2023, the Supreme Court of Canada dismissed the appeal. All remaining purported class actions are at preliminary stages or stayed.

FCA Investigation. The U.K.’s Financial Conduct Authority (“FCA”) opened an enforcement investigation against our U.K. subsidiary, Equifax Limited, in October ~~2017.~~2017 in connection with the 2017 cybersecurity incident. The investigation by the FCA has involved a number of information requirements and interviews. We ~~continue to respond~~have responded to the information requirements and ~~are cooperating~~continue to cooperate with the investigation. We have been advised by the FCA that it intends to send us a notice with the FCA's findings and proposed penalty, which we anticipate will result in the initiation of settlement discussions. At this time, we are unable to predict the outcome of this FCA investigation, including whether the investigation will result in any settlement, action or proceeding against us.

Although we continue to cooperate in the Canadian class action proceedings and the FCA investigation, an adverse outcome to any such proceedings and investigation could subject us to fines or other obligations, which could have a material adverse effect on our financial condition, results of operations, or cash flows in future periods.

Data Processing, Outsourcing Services and Other Agreements

We have separate agreements with Google, Amazon Web Services, ~~IBM, Tata Consultancy Services~~UST Global, Kyndryl 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 ~~data~~ and ~~cloud computing~~data networks, maintenance and related functions and to provide certain other administrative and operational services. The agreements expire between ~~2022~~2023 and ~~2027.~~2028. 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 June 30, ~~2022~~2023 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 June 30, ~~2022.~~2023. We have agreed to guarantee the liabilities and performance obligations (some of which have limitations) of a certain debt collections and recovery management subsidiary under its commercial agreements.

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 which 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 ~~2021~~2022 Form 10-K.

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 ~~2018~~2019 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 ~~$6.3~~$8.5 million.

Effective Tax Rate

Our effective income tax rate was 27.4% for the three months ended June 30, 2023, compared to 23.9% for the three months ended June 30, ~~2022, compared to 22.1% for the three months ended June 30, 2021.~~2022. Our effective income tax rate was 26.6% for the six months ended June 30, 2023, compared to 25.4% for the six months ended June 30, ~~2022, compared to 23.2% for the six months ended June 30, 2021.~~2022. Our effective tax rate was higher for the second quarter ~~and first six months~~ of ~~2022~~2023 as compared to ~~2021~~2022 due to a greater foreign income tax rate ~~differential. The increase in~~differential and less favorable discrete items. Our effective rate was higher for the six months ended June 30, 2023 as compared to 2022 due to a greater foreign income tax rate ~~differential was primarily driven by the adjustment to fully impair our investment in Russia.~~differential.

8. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the six months ended June 30, ~~2022,~~2023, are as follows:
Foreign
currency Pension and other
postretirement
benefit plans Cash flow
hedging
transactions Total
(In millions)
Balance, December 31, 2021 $ (292.5) $ (1.9) $ (1.0) $ (295.4)
Other comprehensive loss before reclassifications (131.8) — — (131.8)
Amounts reclassified from accumulated other comprehensive loss 13.6 (0.8) — 12.8
Net current-period other comprehensive income (loss) (118.2) (0.8) — (119.0)
Balance, June 30, 2022 $ (410.7) $ (2.7) $ (1.0) $ (414.4)


	Foreign currency translation adjustment		Pension and other postretirement benefit plans		Cash flow hedging transactions		Total
	(In millions)
Balance, December 31, 2022	$	(469.3)	$	(3.4)	$	(1.0)	$	(473.7)
Other comprehensive income	27.8		—		—		27.8


Balance, June 30, 2023	$	(441.5)	$	(3.4)	$	(1.0)	$	(445.9)

Changes in accumulated other comprehensive loss related to noncontrolling interests were not material as of June 30, ~~2022.~~2023.

9. RESTRUCTURING CHARGES

In the ~~fourth~~second quarter of ~~2021,~~2023, we recorded ~~$8.6~~$17.5 million ($~~6.5~~12.4 million, net of tax) of restructuring charges, all of which were recorded in selling, general and administrative expenses within our Consolidated Statements of Income. ~~This charge was~~In the fourth quarter of 2022, we recorded $24.0 million ($18.0 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. As of June 30, ~~2022, $4.9~~2023, $0.9 million and $19.7 million of the second quarter 2023 and fourth quarter ~~2021~~2022 restructuring ~~charge has~~charges have been paid, respectively, with the remaining future payments expected to be completed later in ~~2022.~~2023.

10. SEGMENT INFORMATION

Reportable Segments. We manage our business and report our financial results through the following 3three reportable segments, which are the same as our operating segments:

–Workforce Solutions

–U.S. Information Solutions (“USIS”)

–International

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 ~~2021~~2022 Form 10-K. We evaluate the performance of these reportable segments based on their operating ~~revenues,~~revenue, operating income and operating margins, excluding any 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~~provides services enabling customers to verify income, employment, ~~income,~~educational history, criminal ~~history~~justice data, healthcare professional licensure and ~~social security number verification services~~sanctions of people in the U.S. (Verification Services), as well as ~~complementary payroll-based transaction~~providing our employer customers with services that assist them in complying with and automating certain payroll-related and human resource management processes throughout the entire cycle of the employment relationship, including unemployment cost management, employee screening, employee onboarding, tax credits and incentives, I-9 management and compliance, immigration case management, tax form management services and ~~identity theft protection products offered directly to consumers and through employers.~~Affordable Care Act 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, locate services, fraud detection and prevention services, identity verification services and other consulting services); mortgage services; financial marketing services; identity management; and credit monitoring products sold to resellers or directly to consumers.

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, ~~Canada~~Latin America and ~~Latin America~~Canada, we also provide information, technology and services to support debt collections and recovery management. In Europe and Canada, we also provide credit monitoring products to resellers or directly to consumers.

Operating revenue and operating income by operating segment during the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 are as follows:


		Three Months Ended				Six Months Ended					Three Months Ended				Six Months Ended
(In millions)	(In millions)	June 30,				June 30,				(In millions)	June 30,				June 30,
Operating revenue:	Operating revenue:	2022		2021		2022		2021		Operating revenue:	2023		2022		2023		2022
Workforce Solutions	Workforce Solutions	$	609.2	$	502.0	$	1,258.1	$	989.2	Workforce Solutions	$	582.8	$	609.2	$	1,179.1	$	1,258.1
U.S. Information Solutions	U.S. Information Solutions	421.4		455.7		854.4		915.1		U.S. Information Solutions	445.0		421.4		866.7		854.4
International	International	286.1		277.1		567.5		543.5		International	289.8		286.1		573.8		567.5
Total operating revenue	Total operating revenue	$	1,316.7	$	1,234.8	$	2,680.0	$	2,447.8	Total operating revenue	$	1,317.6	$	1,316.7	$	2,619.6	$	2,680.0


		Three Months Ended				Six Months Ended					Three Months Ended				Six Months Ended
(In millions)	(In millions)	June 30,				June 30,				(In millions)	June 30,				June 30,
Operating income:	Operating income:	2022		2021		2022		2021		Operating income:	2023		2022		2023		2022
Workforce Solutions	Workforce Solutions	$	281.2	$	265.8	$	589.7	$	531.5	Workforce Solutions	$	244.6	$	281.2	$	493.4	$	589.7
U.S. Information Solutions	U.S. Information Solutions	112.0		136.7		233.5		291.6		U.S. Information Solutions	102.8		112.0		181.4		233.5
International	International	32.4		33.4		69.4		63.2		International	34.4		32.4		67.0		69.4
General Corporate Expense	General Corporate Expense	(121.0)		(129.9)		(255.5)		(273.7)		General Corporate Expense	(144.9)		(121.0)		(299.6)		(255.5)
Total operating income	Total operating income	$	304.6	$	306.0	$	637.1	$	612.6	Total operating income	$	236.9	$	304.6	$	442.2	$	637.1

Total assets by operating segment at June 30, ~~2022~~2023 and December 31, ~~2021~~2022 are as follows:


		June 30,		December 31,			June 30,		December 31,
(In millions)	(In millions)	2022		2021		(In millions)	2023		2022
Total assets:	Total assets:					Total assets:
Workforce Solutions	Workforce Solutions	$	4,043.7	$	3,888.3	Workforce Solutions	$	4,197.0	$	4,156.5
U.S. Information Solutions	U.S. Information Solutions	3,114.9		3,091.4		U.S. Information Solutions	3,310.5		3,291.4
International	International	3,153.1		3,271.5		International	3,117.8		3,106.8
General Corporate	General Corporate	909.5		789.7		General Corporate	912.6		993.2
Total assets	Total assets	$	11,221.2	$	11,040.9	Total assets	$	11,537.9	$	11,547.9

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Equifax Inc. MD&A is provided as a supplement to and should be read in conjunction with our consolidated financial statements and the accompanying Notes to Financial Statements in Item 1 of this Form 10-Q. This section discusses the results of our operations for the three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021.~~2022. All percentages have been calculated using unrounded amounts for each of the periods presented.

All references to earnings per share data in 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 automation and outsourcing services for employers. We have a large and diversified group of clients, including financial institutions, corporations, government agencies and individuals. Our services are based on comprehensive databases of consumer and business information derived from numerous sources including credit, financial assets, telecommunications and utility payments, employment, income, educational history, criminal ~~history,~~justice data, healthcare professional licensure and sanctions, 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 and process automation solutions and processing services for our clients. We are a leading provider of e-commerce fraud and charge back protection services in North America as well as information and solutions used in payroll-related and human resource management business process 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. Additionally, we also provide information, technology and services to support debt collections and recovery ~~management.~~management

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, Dominican Republic, 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 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 have a joint venture in Russia that offers consumer credit services; however, we determined as of March 31, 2022 to exit our ownership position, wrote the value of the investment to zero and expect no future economic benefit from the joint venture's operations going forward.

Recent Events and Company Outlook

As further described in our ~~2021~~2022 Form 10-K, we operate in the U.S., which represented 78% of our revenue in ~~2021,~~2022, and internationally in ~~more than 20~~19 countries. Our products and services span a wide variety of vertical markets including financial services, mortgage, talent solutions, federal, state and local governments, automotive, telecommunications, e-commerce and many others.

Demand for our services tends to be correlated to general levels of economic activity and to consumer credit activity, small business commercial credit, ~~and~~ marketing activity, identity and fraud, and employee hiring and onboarding activity. ~~The impact of the COVID-19 pandemic~~Demand is also enhanced by our initiatives to expand our products, capabilities and related actions to attempt to control its spread began to impact our consolidated operating results in the first quarter of 2020. During 2020, overall revenue grew, reflecting strong U.S. mortgage market demand in 2020 compared to 2019 and growth across our Workforce Solutions business. In 2021 and 2022 to-date, as efforts to minimize the spread of COVID-19 were more successful and access to vaccinations increased, our consolidated revenue grew when compared to prior year, reflecting recovering country economies, growth from Equifax initiatives and, to a lesser extent, revenue from acquired companies. The continued impact of the COVID-19 pandemic remains uncertain and may affect certain markets or regions we serve differently. To date, changes to our working environment as a result of COVID-19 have not caused material disruptions in the execution of our strategic plans and have not impacted our internal controls, financial reporting systems or operations.served.

~~In light of the evolving health, social, economic and business environment, governmental regulations or mandates, and business disruptions~~For 2023, we expect that ~~could occur, the potential impact that COVID-19 could have on our financial condition and operating results remains unclear. For more information, see “Item 1A. Risk Factors—Our business has been and may continue to be negatively impacted by the COVID-19 pandemic,”~~ ~~in our 2021 Form 10-K.~~

~~For 2022, our planning assumes economies in which we operate continue to show growth relative to 2021. In the~~ U.S.~~, 2022~~ economic activity, as measured by GDP, ~~is expected~~ to grow but ~~not~~ at ~~the same~~a slower rate of growth than experienced in ~~2021. We expect modest growth in consumer credit, excluding mortgage, over the course of~~ 2022. Our ~~outlook~~forecast assumes the U.S. mortgage market, as measured by ~~credit inquiries, will~~originations, is expected to decline by ~~greater than 46 percent on average for the remaining six months of 2022~~about 37% in 2023 versus ~~the same period in 2021.~~2022. The U.S. mortgage market, particularly the mortgage refinance portion of the U.S. mortgage market, can be ~~further~~significantly impacted by U.S. interest rates ~~and~~which therefore impacts mortgage ~~rates.~~rates available to consumers. In the ~~international~~International markets in which we operate, ~~we expect 2022~~in particular in Australia, the U.K. and Canada, our forecast also assumes economic activity, as measured by GDP, to grow in 2023 but ~~less~~at slower rates than ~~the rates of growth experienced~~ in ~~2021.~~2022.

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.~~verification, as well as criminal justice data. 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, modeling services and consumer credit monitoring services. USIS also markets certain decisioning software services which facilitate and automate a variety of consumer and commercial credit-oriented decisions. Online Information Solutions also includes our U.S. consumer credit monitoring solutions business. 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, Canada and Latin America. 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.

Geographic Information. We currently have operations in the following countries: Argentina, Australia, Canada, Chile, Costa Rica, Dominican Republic, 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 have investments in consumer and/or commercial credit information companies through joint ventures in Cambodia, Malaysia ~~Singapore~~ and ~~Russia~~Singapore and have an investment in a consumer and commercial credit information company in Brazil. We determined as of March 31, 2022 to exit our ownership position in Russia, wrote the value of the investment to zero and expect no future economic benefit from the joint venture's operations going forward. Approximately 78% of our revenue was generated in the U.S. during the three months ended June 30, ~~2022~~2023 and ~~2021, respectively.~~2022. Approximately ~~79%~~78% and ~~78%~~79% of our revenue was generated in the U.S. during the six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

Seasonality. We experience seasonality in certain of our revenue streams. Revenue generated by the online consumer information services component of our USIS operating segment is typically the lowest during the first quarter, when consumer

lending activity is at a seasonal low. Revenue generated from the Employer Services business unit within the Workforce Solutions operating segment is generally higher in the first quarter due primarily to the provision of Form W-2 and 1095-C services that occur in the first quarter each year. Revenue generated from our financial wealth asset products and data management services in our Financial Marketing Services business is generally higher in the fourth quarter each year due to the significant portion of our annual renewals and deliveries which occur then. Mortgage related revenue is generally higher in the second and third quarters of the year due to the increase in consumer home purchasing during the summer in the U.S. Any change in the U.S. mortgage market has a corresponding impact on revenue and operating profit for our business within the Workforce Solutions and USIS operating segments.

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 six months ended June 30, ~~2022~~2023 and ~~2021~~2022 were as follows:


		Key Performance Indicators													Key Performance Indicators
		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021				2023			2022			2023			2022
		(In millions, except per share data)													(In millions, except per share data)
Operating revenue	Operating revenue	$	1,316.7		$	1,234.8		$	2,680.0		$	2,447.8		Operating revenue	$	1,317.6		$	1,316.7		$	2,619.6		$	2,680.0
Operating revenue change	Operating revenue change	7		%	26		%	9		%	26		%	Operating revenue change	—		%	7		%	(2)		%	9		%
Operating income	Operating income	$	304.6		$	306.0		$	637.1		$	612.6		Operating income	$	236.9		$	304.6		$	442.2		$	637.1
Operating margin	Operating margin	23.1		%	24.8		%	23.8		%	25.0		%	Operating margin	18.0		%	23.1		%	16.9		%	23.8		%
Net income attributable to Equifax	Net income attributable to Equifax	$	200.6		$	215.1		$	422.4		$	416.7		Net income attributable to Equifax	$	138.3		$	200.6		$	250.6		$	422.4
Diluted earnings per share	Diluted earnings per share	$	1.63		$	1.74		$	3.42		$	3.38		Diluted earnings per share	$	1.12		$	1.63		$	2.03		$	3.42
Cash provided by operating activities	Cash provided by operating activities	$	275.3		$	407.7		$	76.8		$	551.1		Cash provided by operating activities	$	262.1		$	275.3		$	413.0		$	76.8
Capital expenditures*	Capital expenditures*	$	(152.5)		$	(117.4)		$	293.3		$	(224.9)		Capital expenditures*	$	(149.9)		$	(152.5)		$	(302.9)		$	(293.3)

*Amounts include accruals for capital expenditures.

Operational and Financial Highlights

•We did not repurchase any shares from public market transactions ~~in 2022. We repurchased 0.4 million shares of our common stock on the open market for $69.9 million~~ during the first six months of ~~2021.~~2023 and 2022. At June 30, ~~2022,~~2023, $520.2 million was available for future purchases of common stock under our share repurchase authorization.

•We paid out ~~$95.7~~$95.6 million or $0.78 per share in dividends to our shareholders during the first six months of ~~2022.~~2023.

RESULTS OF OPERATIONS—THREE AND SIX MONTHS ENDED JUNE 30, ~~2022~~2023 AND ~~2021~~2022

Consolidated Financial Results

Operating Revenue


		Three Months Ended June 30,				Change				Six Months Ended June 30,				Change					Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
Consolidated Operating Revenue	Consolidated Operating Revenue	2022		2021		$		%		2022		2021		$		%		Consolidated Operating Revenue	2023		2022		$		%		2023		2022		$		%
		(In millions)								(In millions)									(In millions)								(In millions)
Workforce Solutions	Workforce Solutions	$	609.2	$	502.0	$	107.2	21	%	$	1,258.1	$	989.2	$	268.9	27	%	Workforce Solutions	$	582.8	$	609.2	$	(26.4)	(4)	%	$	1,179.1	$	1,258.1	$	(79.0)	(6)	%
U.S. Information Solutions	U.S. Information Solutions	421.4		455.7		(34.3)		(8)	%	854.4		915.1		(60.7)		(7)	%	U.S. Information Solutions	445.0		421.4		23.6		6	%	866.7		854.4		12.3		1	%
International	International	286.1		277.1		9.0		3	%	567.5		543.5		24.0		4	%	International	289.8		286.1		3.7		1	%	573.8		567.5		6.3		1	%
Consolidated operating revenue	Consolidated operating revenue	$	1,316.7	$	1,234.8	$	81.9	7	%	$	2,680.0	$	2,447.8	$	232.2	9	%	Consolidated operating revenue	$	1,317.6	$	1,316.7	$	0.9	—	%	$	2,619.6	$	2,680.0	$	(60.4)	(2)	%

Revenue increased by ~~$81.9~~$0.9 million, or ~~7%,~~flat, and decreased by ~~$232.2~~$60.4 million, or 9%2%, for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. Total revenue was negatively impacted by foreign exchange rates, which decreased revenue by ~~$23.0~~$15.5 million, or 2%1%, and ~~$35.6~~$38.9 million, or 1%, for the second quarter and first six months of ~~2022,~~2023, compared to the same periods in ~~2021.~~2022.

Revenue in the second quarter ~~and first six months of 2022~~ increased primarily due to growth in ~~Workforce Solutions~~USIS, Employer Services, and International, partially offset by ~~a decline~~declines in Verification Services. Revenue in the first six months of 2023 decreased primarily due to declines in Verification Services, partially offset by growth in USIS, ~~business.~~Employer Services, and International.

Operating Expenses


		Three Months Ended June 30,				Change				Six Months Ended June 30,				Change					Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
Consolidated Operating Expenses	Consolidated Operating Expenses	2022		2021		$		%		2022		2021		$		%		Consolidated Operating Expenses	2023		2022		$		%		2023		2022		$		%
		(In millions)								(In millions)									(In millions)								(In millions)
Consolidated cost of services	Consolidated cost of services	$	542.1	$	483.0	$	59.1	12	%	$	1,095.5	$	966.2	$	129.3	13	%	Consolidated cost of services	$	588.0	$	542.1	$	45.9	8	%	$	1,168.4	$	1,095.5	$	72.9	7	%
Consolidated selling, general and administrative expenses	Consolidated selling, general and administrative expenses	330.2		328.4		1.8		1	%	670.5		637.3		33.2		5	%	Consolidated selling, general and administrative expenses	343.1		330.2		12.9		4	%	709.2		670.5		38.7		6	%
Consolidated depreciation and amortization expense	Consolidated depreciation and amortization expense	139.8		117.4		22.4		19	%	276.9		231.7		45.2		20	%	Consolidated depreciation and amortization expense	149.6		139.8		9.8		7	%	299.8		276.9		22.9		8	%
Consolidated operating expenses	Consolidated operating expenses	$	1,012.1	$	928.8	$	83.3	9	%	$	2,042.9	$	1,835.2	$	207.7	11	%	Consolidated operating expenses	$	1,080.7	$	1,012.1	$	68.6	7	%	$	2,177.4	$	2,042.9	$	134.5	7	%

Cost of services increased ~~$59.1~~$45.9 million and ~~$129.3~~$72.9 million in the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The increases for both periods were primarily due to higher royalty costs, people costs and production costs, which include third party cloud usage ~~fees.~~fees and software costs. The impact of changes in foreign exchange rates on costs of services led to a decrease of ~~$12.4~~$6.1 million and ~~$19.0~~$16.8 million in the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022.

Selling, general and administrative expenses increased ~~$1.8~~$12.9 million and ~~$33.2~~$38.7 million for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~increase in the second quarter was~~increases were primarily due to increases in ~~sales and marketing related costs, offset by a decrease in~~ people ~~costs related to incentive plans. The increase in the first six months of 2022 was driven by an increase in sales and marketing related~~ costs. The impact of changes in foreign currency exchange rates led to a decrease in selling, general and administrative expenses of ~~$6.4~~$4.7 million and ~~$10.0~~$11.1 million for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022.

Depreciation and amortization expense increased ~~$22.4~~$9.8 million and ~~$45.2~~$22.9 million for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~increase was~~increases were due to the higher amortization of purchased intangible assets related to recent acquisitions and increased amortization of capitalized internal-use software and system costs from technology transformation capital spending incurred previously. The impact of changes in foreign currency exchange rates led to a decrease in depreciation and amortization expense of ~~$3.0~~$1.1 million and ~~$4.8~~$3.1 million for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022.

Operating Income and Operating Margin


		Three Months Ended June 30,						Change				Six Months Ended June 30,						Change					Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
Consolidated Operating Income	Consolidated Operating Income	2022			2021			$		%		2022			2021			$		%		Consolidated Operating Income	2023			2022			$		%		2023			2022			$		%
		(In millions)										(In millions)											(In millions)										(In millions)
Consolidated operating revenue	Consolidated operating revenue	$	1,316.7		$	1,234.8		$	81.9	7	%	$	2,680.0		$	2,447.8		$	232.2	9	%	Consolidated operating revenue	$	1,317.6		$	1,316.7		$	0.9	—	%	$	2,619.6		$	2,680.0		$	(60.4)	(2)	%
Consolidated operating expenses	Consolidated operating expenses	1,012.1			928.8			83.3		9	%	2,042.9			1,835.2			207.7		11	%	Consolidated operating expenses	1,080.7			1,012.1			68.6		7	%	2,177.4			2,042.9			134.5		7	%
Consolidated operating income	Consolidated operating income	$	304.6		$	306.0		$	(1.4)	—	%	$	637.1		$	612.6		$	24.5	4	%	Consolidated operating income	$	236.9		$	304.6		$	(67.7)	(22)	%	$	442.2		$	637.1		$	(194.9)	(31)	%
Consolidated operating margin	Consolidated operating margin	23.1		%	24.8		%			(1.7)	pts	23.8		%	25.0		%			(1.2)	pts	Consolidated operating margin	18.0		%	23.1		%			(5.1)	pts	16.9		%	23.8		%			(6.9)	pts

Total company operating margin decreased by ~~1.7~~5.1 percentage points and ~~1.2~~6.9 percentage points in the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The margin ~~decrease was~~decreases were due to the aforementioned increased operating ~~expense~~expenses and amortization ~~expense that outpaced revenue growth~~expenses during the ~~period.~~periods as well as lower reported revenue during the six months ended June 30, 2023.

Interest Expense and Other Income, net


		Three Months Ended June 30,						Change				Six Months Ended June 30,						Change					Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
Consolidated Interest Expense and Other Income, net	Consolidated Interest Expense and Other Income, net	2022			2021			$		%		2022			2021			$		%		Consolidated Interest Expense and Other Income, net	2023			2022			$		%		2023			2022			$		%
		(In millions)										(In millions)											(In millions)										(In millions)
Consolidated interest expense	Consolidated interest expense	$	(41.6)		$	(34.9)		$	(6.7)	19	%	$	(81.4)		$	(72.1)		$	(9.3)	13	%	Consolidated interest expense	$	(60.7)		$	(41.6)		$	(19.1)	46	%	$	(118.3)		$	(81.4)		$	(36.9)	45	%
Consolidated other income, net	Consolidated other income, net	1.8			6.0			(4.2)		nm		12.9			5.1			7.8		nm		Consolidated other income, net	15.9			1.8			14.1		nm		20.4			12.9			7.5		58	%
Average cost of debt	Average cost of debt	2.9		%	3.4		%					2.9		%	3.4		%					Average cost of debt	4.2		%	2.9		%					4.1		%	2.9		%
Total consolidated debt, net, at quarter end	Total consolidated debt, net, at quarter end	$	5,685.2		$	3,881.6		$	1,803.6	46	%	$	5,685.2		$	3,881.6		$	1,803.6	46	%	Total consolidated debt, net, at quarter end	$	5,672.1		$	5,685.2		$	(13.1)	nm		$	5,672.1		$	5,685.2		$	(13.1)	nm

nm - not meaningful

Interest expense increased by ~~$6.7~~$19.1 million and ~~$9.3~~$36.9 million in the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The increase for the second quarter and first six months of ~~2022~~2023 was due to higher interest rates attributable to debt ~~balances in~~agreements entered into during 2022 ~~when compared to the same periods of 2021 due to the purchase of Insights in the fourth quarter of 2021.~~and 2023.

Other income, net, ~~decreased~~increased by ~~$4.2~~$14.1 million in the second quarter of ~~2022,~~2023, as compared to the same period in ~~2021.~~2022. Other income, net, increased by ~~$7.8~~$7.5 million in the first six months of ~~2022,~~2023, compared to the same period in ~~2021.~~2022. The ~~decrease~~increase for the second quarter and first six months of ~~2022~~2023 was due to the fair value adjustment of our investment in Brazil ~~offset by gains associated with the~~and gain on sale of ~~two~~an equity ~~investments. The increase for~~investment during the first six months of 2022 was due to gains associated with the sale of two equity method investments and the fair value adjustment of our investment in Brazil, partially offset by the other-than-temporary impairment recognized in the firstsecond quarter of ~~2022 related to our equity investment in Russia.~~2023.

Income Taxes


		Three Months Ended June 30,						Change				Six Months Ended June 30,						Change					Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
Consolidated Provision for Income Taxes	Consolidated Provision for Income Taxes	2022			2021			$		%		2022			2021			$		%		Consolidated Provision for Income Taxes	2023			2022			$		%		2023			2022			$		%
		(In millions)										(In millions)											(In millions)										(In millions)
Consolidated provision for income taxes	Consolidated provision for income taxes	$	(63.4)		$	(61.2)		$	(2.2)	4	%	$	(144.4)		$	(126.8)		$	(17.6)	14	%	Consolidated provision for income taxes	$	(52.7)		$	(63.4)		$	10.7	(17)	%	$	(91.4)		$	(144.4)		$	53.0	(37)	%
Effective income tax rate	Effective income tax rate	23.9		%	22.1		%					25.4		%	23.2		%					Effective income tax rate	27.4		%	23.9		%					26.6		%	25.4		%

Net Income


		Three Months Ended June 30,				Change				Six Months Ended June 30,				Change					Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
Consolidated Net Income	Consolidated Net Income	2022		2021		$		%		2022		2021		$		%		Consolidated Net Income	2023		2022		$		%		2023		2022		$		%
		(In millions, except per share amounts)								(In millions, except per share amounts)									(In millions, except per share amounts)								(In millions, except per share amounts)
Consolidated operating income	Consolidated operating income	$	304.6	$	306.0	$	(1.4)	—	%	$	637.1	$	612.6	$	24.5	4	%	Consolidated operating income	$	236.9	$	304.6	$	(67.7)	(22)	%	$	442.2	$	637.1	$	(194.9)	(31)	%
Consolidated interest expense and other income (expense), net	Consolidated interest expense and other income (expense), net	(39.8)		(28.9)		(10.9)		38	%	(68.5)		(67.0)		(1.5)		2	%	Consolidated interest expense and other income (expense), net	(44.8)		(39.8)		(5.0)		13	%	(97.9)		(68.5)		(29.4)		43	%
Consolidated provision for income taxes	Consolidated provision for income taxes	(63.4)		(61.2)		(2.2)		4	%	(144.4)		(126.8)		(17.6)		14	%	Consolidated provision for income taxes	(52.7)		(63.4)		10.7		(17)	%	(91.4)		(144.4)		53.0		(37)	%
Consolidated net income	Consolidated net income	201.4		215.9		(14.5)		(7)	%	424.2		418.8		5.4		1	%	Consolidated net income	139.4		201.4		(62.0)		(31)	%	252.9		424.2		(171.3)		(40)	%

Net income attributable to noncontrolling interests	Net income attributable to noncontrolling interests	(0.8)		(0.8)		—		—	%	(1.8)		(2.1)		0.3		16	%	Net income attributable to noncontrolling interests	(1.1)		(0.8)		(0.3)		38	%	(2.3)		(1.8)		(0.5)		28	%
Net income attributable to Equifax	Net income attributable to Equifax	$	200.6	$	215.1	$	(14.5)	(7)	%	$	422.4	$	416.7	$	5.7	1	%	Net income attributable to Equifax	$	138.3	$	200.6	$	(62.3)	(31)	%	$	250.6	$	422.4	$	(171.8)	(41)	%
Diluted earnings per common share:	Diluted earnings per common share:																	Diluted earnings per common share:

Net income attributable to Equifax	Net income attributable to Equifax	$	1.63	$	1.74	$	(0.11)	(6)	%	$	3.42	$	3.38	$	0.04	1	%	Net income attributable to Equifax	$	1.12	$	1.63	$	(0.51)	(31)	%	$	2.03	$	3.42	$	(1.39)	(41)	%
Weighted-average shares used in computing diluted earnings per share	Weighted-average shares used in computing diluted earnings per share	123.3		123.5						123.4		123.4						Weighted-average shares used in computing diluted earnings per share	123.8		123.3						123.7		123.4

Consolidated net income decreased by ~~$14.5~~$62.0 million and ~~increased by $5.4~~$171.3 million for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~decrease for the second quarter of 2022 is~~decreases were due to ~~increased interest, other and income tax expenses in 2022 as~~lower levels of operating income ~~levels remained similar across both periods. The increase for the first six months of 2022 is due to increased operating income resulting from increased revenue, partially offset by~~and higher ~~tax~~interest expense ~~for the first six months of 2022.~~in 2023.

Segment Financial Results

Workforce Solutions


		Three Months Ended June 30,						Change				Six Months Ended June 30,						Change					Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
Workforce Solutions	Workforce Solutions	2022			2021			$		%		2022			2021			$		%		Workforce Solutions	2023			2022			$		%		2023			2022			$		%
		(In millions)										(In millions)											(In millions)										(In millions)
Operating revenue:	Operating revenue:																					Operating revenue:
Verification Services	Verification Services	$	504.5		$	394.5		$	110.0	28	%	$	1,017.8		$	779.6		$	238.2	31	%	Verification Services	$	474.0		$	504.5		$	(30.5)	(6)	%	$	929.8		$	1,017.8		$	(88.0)	(9)	%
Employer Services	Employer Services	104.7			107.5			(2.8)		(3)	%	240.3			209.6			30.7		15	%	Employer Services	108.8			104.7			4.1		4	%	249.3			240.3			9.0		4	%
Total operating revenue	Total operating revenue	$	609.2		$	502.0		$	107.2	21	%	$	1,258.1		$	989.2		$	268.9	27	%	Total operating revenue	$	582.8		$	609.2		$	(26.4)	(4)	%	$	1,179.1		$	1,258.1		$	(79.0)	(6)	%
% of consolidated revenue	% of consolidated revenue	46		%	41		%					47		%	40		%					% of consolidated revenue	44		%	46		%					45		%	47		%
Total operating income	Total operating income	$	281.2		$	265.8		$	15.4	6	%	$	589.7		$	531.5		$	58.2	11	%	Total operating income	$	244.6		$	281.2		$	(36.6)	(13)	%	$	493.4		$	589.7		$	(96.3)	(16)	%
Operating margin	Operating margin	46.2		%	53.0		%			(6.8)	pts	46.9		%	53.7		%			(6.8)	pts	Operating margin	42.0		%	46.2		%			(4.2)	pts	41.8		%	46.9		%			(5.1)	pts

Workforce Solutions revenue ~~increased~~decreased by ~~21%~~4% and ~~27%~~6% in the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~increases~~decreases for both periods were due to ~~strong growth~~a decline in Verification Services, ~~driven~~partially offset by growth in ~~non-mortgage verticals and acquisition revenue in both Verification and~~ Employer Services.

Verification Services

Revenue ~~increased~~decreased by ~~28%~~6% and ~~31%~~9% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The decrease in revenue for both periods was due to declines in mortgage and consumer finance verticals, offset by an increase in revenue within the government vertical. The second quarter was also impacted by a decrease within the talent solutions vertical.

Employer Services

Revenue increased by 4% in the second quarter and first six months of 2023, compared to the same periods in 2022. The increase in revenue for both periods was due to ~~strong growth~~revenue from recently acquired companies and an increase in ~~talent solutions, government, other non-mortgage verticals,~~I-9 revenue, partially offset with lower employee services and acquisition revenue principally from Insights, offset by a decline in the mortgage vertical due to significantly slower U.S. mortgage origination activity in 2022 due to higher interest rates. Verification Services benefited across all verticals from the continued growth of employment and income records in The Work Number database.unemployment claims revenue.

~~Employer Services~~

Revenue decreased by 3% and increased by 15% in the second quarter and first six months of 2022, respectively, compared to the same periods in 2021. The decrease for the second quarter of 2022 is due to a decrease in unemployment claims management revenue as the number of claims has returned to pre-COVID-19 levels in 2022 after having been significantly higher in 2021 due to the economic impact of COVID-19 on the U.S. economy. The increase for the first six months of 2022 was due to acquisition revenue and growth in employee services, partially offset by a decrease in unemployment claims revenue.

Workforce Solutions Operating Margin

Operating margin decreased to 42.0% for the second quarter of 2023 from 46.2% for the second quarter of 2022, ~~from 53.0%~~and to 41.8% for the ~~second quarter~~first six months of ~~2021, and to~~2023 from 46.9% for the first six months of ~~2022 from 53.7% for the first six months of 2021.~~2022. The decreased margin for both periods is due tothe decline in revenue and increased ~~purchased intangible asset amortization costs,~~ royalty costs, people costs and production costs ~~which all grew faster than the increase in revenue.~~and increased purchased intangible asset amortization.

USIS


		Three Months Ended June 30,						Change				Six Months Ended June 30,						Change					Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
U.S. Information Solutions	U.S. Information Solutions	2022			2021			$		%		2022			2021			$		%		U.S. Information Solutions	2023			2022			$		%		2023			2022			$		%
		(In millions)										(In millions)											(In millions)										(In millions)
Operating revenue:	Operating revenue:																					Operating revenue:
Online Information Solutions	Online Information Solutions	$	329.2		$	347.8		$	(18.6)	(5)	%	$	673.0		$	699.9		$	(26.9)	(4)	%	Online Information Solutions	$	358.6		$	329.2		$	29.4	9	%	$	699.6		$	673.0		$	26.6	4	%
Mortgage Solutions	Mortgage Solutions	36.8			49.3			(12.5)		(25)	%	80.3			103.4			(23.1)		(22)	%	Mortgage Solutions	30.3			36.8			(6.5)		(18)	%	63.5			80.3			(16.8)		(21)	%
Financial Marketing Services	Financial Marketing Services	55.4			58.6			(3.2)		(5)	%	101.1			111.8			(10.7)		(10)	%	Financial Marketing Services	56.1			55.4			0.7		1	%	103.6			101.1			2.5		2	%
Total operating revenue	Total operating revenue	$	421.4		$	455.7		$	(34.3)	(8)	%	$	854.4		$	915.1		$	(60.7)	(7)	%	Total operating revenue	$	445.0		$	421.4		$	23.6	6	%	$	866.7		$	854.4		$	12.3	1	%
% of consolidated revenue	% of consolidated revenue	32		%	37		%					32		%	37		%					% of consolidated revenue	34		%	32		%					33		%	32		%
Total operating income	Total operating income	$	112.0		$	136.7		$	(24.7)	(18)	%	$	233.5		$	291.6		$	(58.1)	(20)	%	Total operating income	$	102.8		$	112.0		$	(9.2)	(8)	%	$	181.4		$	233.5		$	(52.1)	(22)	%
Operating margin	Operating margin	26.6		%	30.0		%			(3.4)	pts	27.3		%	31.9		%			(4.6)	pts	Operating margin	23.1		%	26.6		%			(3.5)	pts	20.9		%	27.3		%			(6.4)	pts

USIS revenue ~~decreased~~increased by 8%6% and 7%1% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~decreases~~increase in ~~both periods were~~the second quarter was due to growth in online non-mortgage revenue and revenue from acquisitions. Mortgage revenue in the ~~negative impact of declining~~second quarter declined slightly, as growth in online mortgage ~~inquiry volumes on both~~was offset by declines in mortgage solutions. The increase in the first six months was due to growth in online ~~services~~non-mortgage revenue and ~~mortgage solutions,~~revenue from acquisitions, partially offset by ~~acquisition-related revenue~~declines in both online mortgage and ~~growth in non-mortgage online services.~~mortgage solutions. The decline in mortgage ~~related online revenue and mortgage solutions~~ revenue is due to ~~declining~~continued declines in mortgage inquiry volumes ~~caused by higher interest rates~~ during both periods of ~~2022 compared to the overall strength of the U.S. mortgage market in the prior year.~~2023.

Online Information Solutions

Revenue ~~decreased~~increased by 5%9% and 4% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~decreases~~increases for both periods were ~~due to declining mortgage origination volumes compared to the prior year, partially offset~~driven by ~~revenue from acquisitions and~~ continued growth of non-mortgage online ~~services.~~services, commercial risk and revenue from acquisitions. During the second quarter of 2023, online mortgage contributed to an increase in revenue, while there was an overall decline in online mortgage revenue across the first six months of 2023 due to a larger decline in the first quarter of 2023.

Mortgage Solutions

Revenue decreased by ~~25%~~18% and ~~22%~~21% in the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021. Total~~2022. The decreases in both periods were due to declining mortgage ~~market credit inquiries reported by USIS declined by 33% and 29% in the second quarter and first six months of 2022, respectively,~~inquiry volumes, as compared to the prior year.

Financial Marketing Services

Revenue ~~decreased~~increased by 5%1% and ~~10%~~2% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~decreases~~increases for the second quarter and first six months ~~of 2022~~ were driven by ~~lower fraud,~~growth in risk ~~management~~ and ~~other~~ data services ~~revenue,~~ partially offset by ~~growth~~declines in marketing ~~and wealth data sales.~~services.

USIS Operating Margin

USIS operating margin decreased to 23.1% for the second quarter of 2023 from 26.6% for the second quarter of 2022 ~~from 30.0%~~and to 20.9% for the ~~second quarter~~first six months of ~~2021 and to~~2023 from 27.3% for the first six months of ~~2022 from 31.9% for the first six months of 2021.~~2022. The margin decrease for both periods iswas due to ~~the decrease~~an increase in ~~revenue~~operating expenses and ~~increase in~~ depreciation expense related to increased capitalized software development spending and cloud production costs, ~~partially offset by a decrease in royalty costs driven by the overall mortgage market decline.~~as well as incentives.

International


		Three Months Ended June 30,						Change				Six Months Ended June 30,						Change					Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
International	International	2022			2021			$		%		2022			2021			$		%		International	2023			2022			$		%		2023			2022			$		%
		(In millions)										(In millions)											(In millions)										(In millions)
Operating revenue:	Operating revenue:																					Operating revenue:
Asia Pacific	Asia Pacific	$	90.1		$	91.6		$	(1.5)	(2)	%	$	176.6		$	178.6		$	(2.0)	(1)	%	Asia Pacific	$	87.7		$	90.1		$	(2.4)	(3)	%	$	177.6		$	176.6		$	1.0	1	%
Europe	Europe	79.8			76.7			3.1		4	%	165.6			153.7			11.9		8	%	Europe	78.7			79.8			(1.1)		(1)	%	154.4			165.6			(11.2)		(7)	%
Canada	Canada	64.0			64.7			(0.7)		(1)	%	125.7			125.4			0.3		—	%	Canada	66.5			64.0			2.5		4	%	129.6			125.7			3.9		3	%
Latin America	Latin America	52.2			44.1			8.1		18	%	99.6			85.8			13.8		16	%	Latin America	56.9			52.2			4.7		9	%	112.2			99.6			12.6		13	%
Total operating revenue	Total operating revenue	$	286.1		$	277.1		$	9.0	3	%	$	567.5		$	543.5		$	24.0	4	%	Total operating revenue	$	289.8		$	286.1		$	3.7	1	%	$	573.8		$	567.5		$	6.3	1	%
% of consolidated revenue	% of consolidated revenue	22		%	22		%					21		%	23		%					% of consolidated revenue	22		%	22		%					22		%	21		%
Total operating income	Total operating income	$	32.4		$	33.4		$	(1.0)	(3)	%	$	69.4		$	63.2		$	6.2	10	%	Total operating income	$	34.4		$	32.4		$	2.0	6	%	$	67.0		$	69.4		$	(2.4)	(3)	%
Operating margin	Operating margin	11.3		%	12.1		%			(0.8)	pts	12.2		%	11.6		%			0.6	pts	Operating margin	11.9		%	11.3		%			0.6	pts	11.7		%	12.2		%			(0.5)	pts

International revenue increased by ~~3% and 4%~~1% in both the second quarter and the first six months of ~~2022, respectively,~~2023, compared to the same periods in ~~2021.~~2022. On a local currency basis, revenue increased by ~~11%~~7% and 8% in the second quarter and first six months of ~~2022,~~2023, respectively, driven by growth in our credit reporting business across all geographies. This increase was partially offset by volume declines in our debt services business in Europe. Local currency fluctuations against the U.S. dollar negatively impacted revenue by ~~$23.0~~$15.5 million, or 8%6%, for the second quarter of ~~2022,~~2023, and by ~~$35.6~~$38.9 million, or 7%, for the first six months of ~~2022.~~2023.

Asia Pacific

On a local currency basis, revenue increased by 6%4% and 7% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The increases in both periods were driven by ~~our~~stronger volumes within commercial, ~~consumer, identity and~~ fraud and ~~background check verifications~~direct to consumer businesses, offset by a decline in ~~Australia, in addition to growth in India due to higher consumer volumes.~~the human resources solutions business. Local currency fluctuations against the U.S. dollar negatively impacted revenue by ~~$7.2~~$5.7 million, or 8%7%, and ~~$12.7~~$11.5 million, or 7%6%, for the second quarter and first six months of ~~2022,~~2023, respectively. Reported revenue decreased by 2%3% and increased by 1% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022.

Europe

On a local currency basis, revenue ~~increased~~decreased by ~~16%~~2% and 3% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~increases~~decreases in both periods were driven by ~~growth in the~~lower debt placements within our debt services business, ~~with higher volumes in the public sector,~~ partially offset by ~~a decline~~stronger consumer volumes in ~~the consumer direct business.~~our credit bureau agency businesses in Europe. Local currency fluctuations against the U.S. dollar positively impacted revenue by $0.2 million, or 1.0%, and negatively impacted revenue by ~~$9.2~~$6.7 million, or ~~12%, and $12.4 million, or 8%~~4%, for the second quarter and first six months of ~~2022,~~2023, respectively. Reported revenue ~~increased~~decreased by 4%1% and 8%7% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022.

Canada

On a local currency basis, revenue increased by ~~2% for~~8% in both the second quarter and first six months of ~~2022, respectively,~~2023, compared to the same periods in ~~2021.~~2022. The increases in both periods were driven by ~~higher batch credit volumes, partially offset by declines~~increases in consumer, ~~services, mortgage related products,~~stronger fraud volumes and ~~online businesses~~commercial due to ~~interest rate increases.~~revenue from recently acquired companies. Local currency fluctuations against the U.S. dollar negatively impacted revenue by ~~$2.0~~$2.8 million, or 3%4%, and ~~$2.1~~$6.2 million or 2%5%, for the second quarter and first six months of ~~2022,~~2023, respectively. Reported revenue ~~decreased~~increased by 1%4% and ~~remained flat~~3% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022.

Latin America

On a local currency basis, revenue increased by ~~28%~~23% and ~~26%~~27% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The increases in both periods reflect local currency growth across most countries, ~~driven by price increases mainly in~~primarily Argentina and Chile, related to stronger pricing, as well as growth due to ~~acquisition revenue.~~revenue from a recently acquired

company in the Dominican Republic, partially offset by a decline in Mexico. Local currency fluctuations against the U.S. dollar negatively impacted revenue by ~~$4.5~~$7.2 million, or ~~10%~~14%, and ~~$8.4~~$14.6 million, or ~~10%~~14%, for the second quarter and first six months of ~~2022, respectively, primarily within Argentina and Chile.~~2023, respectively. Reported revenue increased by ~~18%~~9% and ~~16%~~13% for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022.

International Operating Margin

Operating margin ~~decreased~~increased to 11.9% for the second quarter of 2023 from 11.3% for the second quarter of 2022 ~~from 12.1%~~and decreased to 11.7% for the ~~second quarter~~first six months of ~~2021 and increased to~~2023 from 12.2% for the first six months of ~~2022 from 11.6% for the first six months of 2021.~~2022. The ~~decreased~~increased margin for the second quarter of ~~2022~~2023 is due to ~~higher cloud production costs and depreciation expense~~lower expenses related to ~~technology transformation project spending, partially offset by higher revenue.~~discretionary items and people costs. The ~~increased~~decreased margin for the first six months of ~~2022~~2023 is mainly due to ~~higher~~the decline in debt services revenue ~~and lower purchased intangible asset amortization costs~~which outpaced the decline in ~~Australia,~~operating expenses, partially offset by ~~higher cloud production costs and depreciation expense~~lower expenses related to ~~technology transformation project spending.~~

discretionary items and people costs.

General Corporate Expense


		Three Months Ended June 30,				Change				Six Months Ended June 30,				Change					Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
General Corporate Expense	General Corporate Expense	2022		2021		$		%		2022		2021		$		%		General Corporate Expense	2023		2022		$		%		2023		2022		$		%
		(In millions)								(In millions)									(In millions)								(In millions)
General corporate expense	General corporate expense	$	121.0	$	129.9	$	(8.9)	(7)	%	$	255.5	$	273.7	$	(18.2)	(7)	%	General corporate expense	$	144.9	$	121.0	$	23.9	20	%	$	299.6	$	255.5	$	44.1	17	%

Our general corporate expenses are unallocated costs that are incurred at the corporate level and include those expenses impacted by corporate direction, including shared services, technology, security, data and analytics, administrative, legal, restructuring, and the portion of management incentive compensation determined by total company-wide performance.

General corporate expense ~~decreased~~increased by ~~$8.9~~$23.9 million and ~~$18.2~~$44.1 million for the second quarter and first six months of ~~2022,~~2023, respectively, compared to the same periods in ~~2021.~~2022. The ~~decrease~~increase was due to ~~reduced~~increased people costs, primarily due to restructuring charges and incentive plans.

LIQUIDITY AND FINANCIAL CONDITION

Management assesses liquidity in terms of our ability to generate cash to fund operating, investing and financing activities. We continue to generate substantial cash from operating activities, remain in a strong financial position and manage our capital structure to meet short- and long-term objectives including reinvestment in existing businesses and completing strategic acquisitions.

Funds generated by operating activities, our Revolver and related CP program, more fully described below, are our most significant sources of liquidity. At June 30, ~~2022,~~2023, we had ~~$223.6~~$164.1 million in cash balances, as well as ~~$788.6~~$1,343.6 million available to borrow under our Revolver.

Sources and Uses of Cash

We believe that our existing cash balance, liquidity available from our CP and Revolver, cash generated from ongoing operations and continued access to public or private debt markets will be sufficient to satisfy cash requirements over the next 12 months and beyond. While there was no significant change in our cash requirements as of June 30, ~~2022~~2023 compared to December 31, ~~2021,~~2022, we have utilized existing CP and Revolver capacity, together with cash from operating activities, to meet our current obligations. ~~This includes~~During the ~~$345.0~~first quarter of 2023, we borrowed $175.0 million ~~consumer class action settlement payment that was made in January 2022 related to the U.S. Consumer MDL Litigation settlement that became effective~~ on ~~January 11, 2022. In addition, we plan~~our Revolver to pay ~~off~~down CP. We subsequently repaid the ~~$500.0 million Senior Notes due December 2022 with a combination~~Revolver in full during the second quarter of ~~operating cash flow, available capacity under our Revolver and related CP program, or borrowings in the public or private debt markets.~~2023.

Fund Transfer Limitations. The ability of certain of our subsidiaries and associated companies to transfer funds to the U.S. may be limited, in some cases, by certain restrictions imposed by foreign governments. These restrictions do not, individually or in the aggregate, materially limit our ability to service our indebtedness, meet our current obligations or pay dividends. As of June 30, ~~2022,~~2023, we held ~~$194.4~~$148.2 million of cash in our foreign subsidiaries.

Information about our cash flows, by category, is presented in the Consolidated Statements of Cash Flows. The following table summarizes our cash flows for the six months ended June 30, ~~2022~~2023 and ~~2021:~~2022:


		Six Months Ended June 30,				Change			Six Months Ended June 30,				Change
Net cash provided by (used in):	Net cash provided by (used in):	2022		2021		2022 vs. 2021		Net cash provided by (used in):	2023		2022		2023 vs. 2022
		(In millions)							(In millions)
Operating activities	Operating activities	$	76.8	$	551.1	$	(474.3)	Operating activities	$	413.0	$	76.8	$	336.2
Investing activities	Investing activities	$	(328.7)	$	(1,095.6)	$	766.9	Investing activities	$	(318.7)	$	(328.7)	$	10.0
Financing activities	Financing activities	$	265.0	$	(680.3)	$	945.3	Financing activities	$	(217.2)	$	265.0	$	(482.2)

Operating Activities

Cash provided by operating activities in the six months ended June 30, ~~2022 decreased~~2023 increased by ~~$474.3~~$336.2 million compared to the prior year period primarily due to the $345.0 million consumer class action settlement payment that was made in January 2022 related to the U.S. Consumer MDL Litigation settlement that became effective on January 11, 2022 ~~and an increase~~that did not recur in ~~working capital during the year.~~2023.

Investing Activities

Capital Expenditures


		Six Months Ended June 30,				Change			Six Months Ended June 30,				Change
Net cash used in:	Net cash used in:	2022		2021		2022 vs. 2021		Net cash used in:	2023		2022		2023 vs. 2022
		(In millions)							(In millions)
Capital expenditures*	Capital expenditures*	$	(315.4)	$	(235.5)	$	(79.9)	Capital expenditures*	$	(321.3)	$	(315.4)	$	(5.9)

*Amounts above are total cash outflows for capital expenditures.

Our capital expenditures are used for developing, enhancing and deploying new and existing software in support of our expanding product set, replacing or adding equipment, updating systems for regulatory compliance, the licensing of certain software applications, investing in system reliability, security and disaster recovery enhancements, and updating or expanding our office facilities.

Capital expenditures paid in the first six months of ~~2022~~2023 increased by ~~$79.9~~$5.9 million from the same period in ~~2021. We are continuing~~2022 due to ~~invest~~our continued investment in enhanced technology ~~systems~~applications and cloud infrastructure as part of our technology transformation.

Acquisitions, Divestitures and Investments
Six Months Ended June 30, Change
Net cash used in: 2022 2021 2022 vs. 2021
(In millions)
Acquisitions, net of cash acquired $ (111.4) $ (861.6) $ 750.2
Cash received from divestiture $ 98.1 $ 1.5 $ 96.6


	Six Months Ended June 30,				Change
Net cash (used in) provided by:	2023		2022		2023 vs. 2022
	(In millions)
Acquisitions, net of cash acquired	$	(4.3)	$	(111.4)	$	107.1
Cash received from divestitures	$	6.9	$	98.1	$	(91.2)

During the first six months of 2023, we acquired a Canadian company within our International segment and completed the sale of an equity investment. During the first six months of 2022, we acquired Efficient Hire within our Workforce Solutions segment and Data Crédito within our International segment. During the first six months of 2022, we reported $98.1 million of cash inflows from investing activities associated with cash received from the sale of two investments and the pending sale of another investment. During the first six months of 2021, we acquired Kount within our USIS segment, HIREtech and i2Verify within our Workforce Solutions segment and a small tuck-in acquisition within our International segment. In addition, in 2021, we sold a small business within our International segment.multiple equity investments.

Financing Activities

Borrowings and Credit Facility Availability


		Six Months Ended June 30,				Change			Six Months Ended June 30,				Change
Net cash provided by (used in):		2022		2021		2022 vs. 2021
Net cash (used in) provided by:								Net cash (used in) provided by:	2023		2022		2023 vs. 2022
		(In millions)							(In millions)
Net short-term borrowings	Net short-term borrowings	$	386.7	$	(0.6)	$	387.3	Net short-term borrowings	$	(411.2)	$	386.7	$	(797.9)
Payments on long-term debt	Payments on long-term debt	$	—	$	(500.1)	$	500.1	Payments on long-term debt	$	(575.0)	$	—	$	(575.0)

Borrowings on long-term debt								Borrowings on long-term debt	$	872.9	$	—	$	872.9

Credit Facilities Availability

In August 2021, we refinanced our existing unsecured revolving credit facility of $1.1 billion that was set to expire in September 2023, and entered into a new $1.5 billion five-year unsecured Revolver ~~and~~as well as a new $700.0 million delayed draw Term Loan ~~collectively known as~~(collectively, the “Senior Credit ~~Facilities,”~~Facilities”), both of 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 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.

In the third quarter of 2021, we increased the size of our CP program from $1.1 billion to $1.5 billion, consistent with the increase in our Revolver. Our $1.5 billion CP program has been established to allow for borrowing through the private placement of CP with maturities ranging from overnight to 397 days. We may use the proceeds of CP for general corporate purposes. The CP program is supported by our Revolver and the total amount of CP which may be issued is reduced by the amount of any outstanding borrowings under our Revolver.

As of June 30, ~~2022,~~2023, there were $0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver, $700.0 million outstanding under the Term Loan and ~~$711.0~~$156.0 million of outstanding CP notes. Availability under the Revolver was ~~$788.6~~$1,343.6 million at June 30, ~~2022.~~2023.

At June 30, ~~2022, 75%~~2023, 85% of our debt was fixed-rate debt and ~~25%~~15% was ~~effectively~~ variable debt. Our variable-rate debt consists of our outstanding term loan and CP. The interest rates reset periodically, depending on the terms of the respective financing agreements. At June 30, ~~2022,~~2023, the interest rate on our variable-rate debt ranged from ~~1.25%~~5.25% to ~~2.94%~~6.45%.

Borrowing and Repayment Activity

We primarily borrow under our CP program and Revolver as needed and as availability allows.

Net short-term borrowings primarily represent net borrowings or repayments of outstanding amounts under our CP program. ~~There were no borrowings or payments~~

Borrowings on long-term debt ~~for~~represent $175.0 million of borrowings on our Revolver during the first ~~six months~~quarter of ~~2022 or 2021.~~2023 and the issuance of $700.0 million of 5.1% Senior Notes in the second quarter of 2023. Repayments on long-term debt represent $175.0 million of repayments on our Revolver and repayment of our $400.0 million 3.95% Senior Notes during the second quarter of 2023.

Debt Covenants. A downgrade in our credit ratings would increase the cost of borrowings under our CP program, Revolver and Term Loan, and could limit or, in the case of a significant downgrade, preclude our ability to issue CP. Our outstanding indentures and comparable instruments also contain customary covenants including, for example, limits on mortgages, liens, sale/leaseback transactions, mergers and sales of assets.

In August 2021, we entered into ~~our new~~the Senior Credit Facilities ~~as noted above~~ in anticipation of the Appriss Insights ~~acquisition, which provides additional financial flexibility. The~~acquisition. In March 2023, we amended the Senior Credit Facilities, ~~include~~resulting in a modification of our required maximum leverage ratio, among other changes. As amended, the Senior Credit Facilities require a maximum leverage ratio, defined as consolidated funded debt divided by consolidated EBITDA, ~~for~~of (i) 4.25 to 1.0 commencing with the ~~preceding four quarters,~~fourth quarter of ~~(i)~~2022 through the fourth quarter of 2023 and (ii) 3.75 to 1.0 ~~initially, (ii) 4.25 to 1.0~~commencing with the first quarter of 2024 and for ~~the first~~each fiscal quarter ending after the consummation of the Company’s acquisition of Appriss Insights on October 1, 2021, until the fourth fiscal quarter ending September 30, 2022, (iii) 4.0 to 1.0 for the fifth fiscal quarter ending December 31, 2022 until the sixth fiscal quarter ending March 31, 2023 and (iv) 3.75 to 1.0 for the seventh fiscal quarter ending June 30, 2023 and thereafter

through the remaining term of the ~~Revolver.~~Senior Credit Facilities. We may also elect to increase the maximum leverage ratio by 0.5 to 1.0 (subject to a maximum leverage ratio of 4.75 to 1.0) in connection with certain material acquisitions if we satisfy certain requirements. The Senior Credit Facilities also permit cash in excess of $175 million to be netted against debt in the calculation of the leverage ratio, subject to certain restrictions.

As of June 30, ~~2022,~~2023, we were in compliance with all of our debt covenants.

We do not have any credit rating triggers that would accelerate the maturity of a material amount of the outstanding debt; however, our ~~3.3% senior notes due 2022, 3.95% senior notes due 2023,~~ 2.6% senior notes due 2024, 2.6% senior notes due 2025, 3.25% senior notes due 2026, 5.1% senior notes due 2027, 5.1% senior notes due 2028, 3.1% senior notes due 2030, 2.35% senior notes due 2031 and 7.0% senior notes due 2037 (collectively, the “Senior Notes”) contain change in control provisions. If the Company experiences a change of control or publicly announces the Company’s intention to effect a change of control and the rating on the Senior Notes is lowered by Standard & Poor’s (“S&P”) and Moody’s Investors Service (“Moody’s”) below an investment grade rating within 60 days of such change of control or notice thereof, then the Company will be required to offer to repurchase the Senior Notes at a price equal to 101% of the aggregate principal amount of the Senior Notes plus accrued and unpaid interest. As of June 30, 2022, our S&P credit rating was BBB with a stable outlook and our Moody’s credit rating was Baa2 with a stable outlook. These ratings are subject to change as events and circumstances change.

For additional information about our debt, including the terms of our financing arrangements, basis for variable interest rates and debt covenants, see Note 5 of the Notes to Consolidated Financial Statements in our ~~2021~~2022 Form 10-K.

Equity Transactions


		Six Months Ended June 30,				Change			Six Months Ended June 30,				Change
Net cash provided by (used in):		2022		2021		2022 vs. 2021
Net cash (used in) provided by:								Net cash (used in) provided by:	2023		2022		2023 vs. 2022
		(In millions)							(In millions)
Treasury stock repurchases		$	—	$	(69.9)	$	69.9

Dividends paid to Equifax shareholders	Dividends paid to Equifax shareholders	$	(95.7)	$	(95.0)	$	(0.7)	Dividends paid to Equifax shareholders	$	(95.6)	$	(95.7)	$	0.1
Dividends paid to noncontrolling interests	Dividends paid to noncontrolling interests	$	(2.4)	$	(5.8)	$	3.4	Dividends paid to noncontrolling interests	$	(2.1)	$	(2.4)	$	0.3
Proceeds from exercise of stock options and employee stock purchase plan	Proceeds from exercise of stock options and employee stock purchase plan	$	8.7	$	25.1	$	(16.4)	Proceeds from exercise of stock options and employee stock purchase plan	$	16.5	$	8.7	$	7.8
Payment of taxes related to settlement of equity awards	Payment of taxes related to settlement of equity awards	$	(32.3)	$	(30.4)	$	(1.9)	Payment of taxes related to settlement of equity awards	$	(16.9)	$	(32.3)	$	15.4

Purchase of noncontrolling interests		$	—	$	(3.6)	$	3.6

Sources and uses of cash related to equity during the six months ended June 30, ~~2022~~2023 and ~~2021~~2022 were as follows:

- During the first six months of 2023 and 2022, we did not repurchase any shares of our common stock on the open market. ~~During the first six months of 2021, we repurchased $0.4 million shares of our common stock for $69.9 million.~~

- We maintained our quarterly dividend of $0.39 per share in the second quarter of ~~2022.~~2023. We paid cash dividends to Equifax shareholders of ~~$95.7~~$95.6 million and ~~$95.0~~$95.7 million, or $0.78 per share, during the six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

- We received cash of ~~$8.7~~$16.5 million and ~~$25.1~~$8.7 million during the first six months of ~~2022~~2023 and ~~2021,~~2022, respectively, from the exercise of stock options and the employee stock purchase plan.

At June 30, ~~2022,~~2023, the Company had $520.2 million remaining for stock repurchases under the existing authorization from the board of directors.

Contractual Obligations, Commercial Commitments and Other Contingencies

Our contractual obligations and commercial commitments have not changed materially from those reported in our ~~2021~~2022 Form 10-K. For additional information about certain obligations and contingencies, see Note 6 of the Notes to Consolidated Financial Statements in this Form 10-Q.

Off-Balance Sheet Arrangements

There have been no material changes with respect to our off-balance sheet arrangements from those presented in our ~~2021~~2022 Form 10-K.

Benefit Plans

At December 31, ~~2021,~~2022, our U.S. Retirement Income Plan met or exceeded ERISA’s minimum funding requirements. In the future, we expect to make minimum funding contributions as required and may make discretionary contributions, depending on certain circumstances, including market conditions and our liquidity needs. We believe additional funding contributions, if any, would not prevent us from continuing to meet our liquidity needs, which are primarily funded from cash flows generated by operating activities, available cash and cash equivalents, our CP program and our Revolver.

For our non-U.S., tax-qualified retirement plans, we fund an amount sufficient to meet minimum funding requirements but no more than allowed as a tax deduction pursuant to applicable tax regulations. For our non-qualified supplementary retirement plans, we fund the benefits as they are paid to retired participants, but accrue the associated expense and liabilities in accordance with U.S. GAAP.

For additional information about our benefit plans, see Note 9 of the Notes to Consolidated Financial Statements in our ~~2021~~2022 Form 10-K.

Foreign Currency

Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. Beginning in the third quarter of 2018, we have accounted for Argentina as a highly inflationary economy which resulted in the recognition of a $0.1 million foreign currency ~~gain~~loss and a $0.1 million foreign currency ~~loss~~gain that was recorded in other income, net in our Consolidated Statements of Income during the three months ~~and six months~~ ended June 30, ~~2022~~2023 and ~~June 30, 2021,~~2022 respectively.

RECENT ACCOUNTING PRONOUNCEMENTS

For information about new accounting pronouncements and the potential impact on our Consolidated Financial Statements, see Note 1 of the Notes to Consolidated Financial Statements in this Form 10-Q and Note 1 of the Notes to Consolidated Financial Statements in our ~~2021~~2022 Form 10-K.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

The Company’s Consolidated Financial Statements are prepared in conformity with U.S. GAAP. This requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities in our Consolidated Financial Statements and the Notes to Consolidated Financial Statements. We believe the most complex and sensitive judgments, because of their significance to the Consolidated Financial Statements, result primarily from the need to make estimates and assumptions about the effects of matters that are inherently uncertain. The “Application of Critical Accounting Policies and Estimates” section in the MD&A, and Note 1 of the Notes to Consolidated Financial Statements, in our ~~2021~~2022 Form 10-K describe the significant accounting estimates and policies used in the preparation of our Consolidated Financial Statements. Although we believe that our estimates, assumptions and judgments are reasonable, they are based upon information available at the time. Actual results may differ significantly from these estimates under different assumptions, judgments or conditions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For information regarding our exposure to certain market risks, see “Quantitative and Qualitative Disclosures about Market Risk,” in Part II, Item 7A of our ~~2021~~2022 Form 10-K. There were no material changes to our market risk exposure during the three and six months ended June 30, ~~2022.~~2023.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, an evaluation was carried out by the Company’s management, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures were effective as of the end of the period covered by this report. In addition, no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

~~Litigation and Investigations related~~Remaining Matters Related to ~~the~~ 2017 Cybersecurity Incident

Canadian Class Actions.In 2017, we experienced a cybersecurity incident following a criminal attack on our systems that involved the theft of ~~certain personally identifiable~~personal 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 and in prior filings, 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.

~~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”). The Consumer Settlement became effective on January 11, 2022. Under the terms of the Consumer Settlement, the Company contributed $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.

~~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 these matters.

~~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.

~~Although~~ We have been advised by the FCA that it intends to send us a notice with the FCA's findings and proposed penalty, which we ~~continue to cooperate~~anticipate will result in the ~~Canadian class action proceedings and~~initiation of settlement discussions. At this time, we are unable to predict the outcome of this FCA investigation, ~~an adverse outcome to~~including whether the investigation will result in any ~~such proceedings and investigation could subject us to fines~~settlement, action or ~~other obligations, which could have a material adverse effect on our financial condition, results of operations, or cash flows in future periods.~~proceeding against us.

CFPB ~~Matter~~Matters

In December 2021, we received a Civil Investigative Demand (a “CID”) from the CFPB as part of its investigation into our consumer disputes process in order to determine whether we have followed the ~~Fair Credit Reporting Act's~~FCRA's requirements for the proper handling of consumer disputes. The CID requests the production of documents and answers to written questions. We are cooperating with the CFPB in its investigation and are in discussions with the CFPB regarding our response to the CID.

In January 2023, the CFPB informed us that its enforcement division will be investigating our previously-disclosed coding issue identified within a legacy server environment in the U.S. slated to be migrated to the new Equifax cloud infrastructure which impacted how some credit scores were calculated during a three-week period in 2022. We are cooperating with the CFPB in its investigation.

In July 2023, we received a CID from the CFPB as part of its investigation into data accuracy and dispute handling at our Workforce Solutions business unit in order to determine whether we have followed the FCRA's requirements. The CID requests the production of documents and answers to written questions. We are cooperating with the CFPB in its investigation and are in discussions with the CFPB regarding our response to the CID.

At this time, we are unable to predict the outcome of ~~this~~these CFPB ~~investigation,~~investigations, including whether the ~~investigation~~investigations will result in any ~~action~~actions or ~~proceeding~~proceedings against us.

Other

Equifax has been named as a defendant in various other legal actions, including administrative claims, regulatory matters, government investigations, class actions and other litigation arising in connection with our business. Some of the legal actions include claims for substantial compensatory or punitive damages or claims for indeterminate amounts of damages. We believe we have defenses to and, where appropriate, will contest many of these matters. Given the number of these matters,

some are likely to result in adverse judgments, penalties, injunctions, fines or other relief. We may explore potential settlements before a case is taken through trial because of the uncertainty and risks inherent in the litigation process.

For information regarding our accounting for legal contingencies, see Note 6 of the Notes to Consolidated Financial Statements in this Form 10-Q.

ITEM 1A. RISK FACTORS

There have been no material changes with respect to the risk factors disclosed in our ~~2021~~2022 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table contains information with respect to purchases made by or on behalf of Equifax or any “affiliated purchaser” (as defined in Rule 10b-18(a) (3) under the Securities Exchange Act of 1934), of our common stock during ~~our second~~the quarter ended June 30, ~~2022:~~2023:
Total
Number
of Shares Average
Price
Paid Total Number
of Shares Purchased
as Part of
Publicly-Announced Maximum Number
(or Approximate
Dollar Value)
of Shares that May
Yet Be Purchased
Under the Plans or
Period Purchased (1) Per Share (2) Plans or Programs Programs (3)
April 1 - April 30, 2022 380 $ — — $ 520,168,924
May 1 - May 31, 2022 10,961 $ — — $ 520,168,924
June 1 - June 30, 2022 862 $ — — $ 520,168,924
Total 12,203 — 520,168,924


	Total Number of Shares	Average Price Paid		Total Number of Shares Purchased as Part of Publicly-Announced	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or
Period	Purchased (1)	Per Share (2)		Plans or Programs	Programs (3)
April 1 - April 30, 2023	3,100	$	—	—	$	520,168,924
May 1 - May 31, 2023	1,640	$	—	—	$	520,168,924
June 1 - June 30, 2023	347	$	—	—	$	520,168,924
Total	5,087	—		—	$	520,168,924

(1)The total number of shares purchased for the quarter includes shares surrendered, or deemed surrendered, in satisfaction of the exercise price and/or to satisfy tax withholding obligations in connection with the exercise of employee stock options, totaling ~~380~~3,100 shares for the month of April ~~2022, 10,961~~2023, 1,640 shares for the month of May ~~2022,~~2023, and ~~862~~347 shares for the month of June ~~2022.~~2023.

(2)Average price paid per share for shares purchased as part of our share repurchase program (includes brokerage commissions). For the quarter ended June 30, ~~2022~~2023 we did not repurchase any shares of our common stock under our share repurchase program.

(3)At June 30, ~~2022,~~2023, the amount authorized for future share repurchases under the share repurchase program was $520.2 million. The program does not have a stated expiration date.

Dividend and Share Repurchase Restrictions

Our Revolver restricts our ability to pay cash dividends on our capital stock or repurchase capital stock if a default or event of default exists or would result if these payments were to occur, according to the terms of the applicable credit agreements.

ITEM 5. OTHER INFORMATION

Rule 10b5-1 Trading Plans of Directors and Executive Officers

The following table describes any contracts, instructions or written plans for the sale or purchase of Equifax securities and intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act that were adopted by our directors and executive officers during the second quarter of 2023:

Name and Title

Date of Adoption of Rule 10b5-1 Trading Plan

Scheduled Expiration Date of Rule 10b5-1 Trading Plan(1)

Aggregate Number of Securities to Be Purchased or Sold

Bryson R. Koehler,

Executive Vice President, Chief Technology, Product and D&A Officer

5/15/23

11/20/23

Sale of up to 11,000 shares of common stock in multiple transactions

(1) A trading plan may also expire on such earlier date that all transactions under the trading plan are completed.

During the second quarter of 2023, none of our directors or executive officers terminated a Rule 10b5-1 trading plan or adopted or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).

ITEM 6. EXHIBITS


Exhibit No.						Description






4.1						Eleventh Supplemental Indenture, dated as of May 16, 2023, between Equifax Inc. and the Trustee, including the form of Note as Exhibit A (incorporated by reference to Exhibit 4.1 to Equifax's Form 8-K filed May 16, 2023).
10.1						Equifax Inc. 2023 Omnibus Incentive Plan (incorporated by reference to Annex C to Equifax's definitive proxy statement filed March 23, 2023).
31.1						Rule 13a-14(a) Certification of Chief Executive Officer
31.2						Rule 13a-14(a) Certification of Chief Financial Officer
32.1						Section 1350 Certification of Chief Executive Officer
32.2						Section 1350 Certification of Chief Financial Officer
101.INS						XBRL Instance Document
101.SCH						XBRL Taxonomy Extension Schema Document
101.CAL						XBRL Taxonomy Extension Calculation Linkbase
101.DEF						XBRL Taxonomy Extension Definition Linkbase
101.LAB						XBRL Taxonomy Extension Label Linkbase
101.PRE						XBRL Taxonomy Extension Presentation Linkbase
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

3938

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		Equifax Inc.
		(Registrant)

Date:	July ~~21, 2022~~25, 2023	By:	/s/ Mark W. Begor
			Mark W. Begor
			Chief Executive Officer
			(Principal Executive Officer)

Date:	July ~~21, 2022~~25, 2023		/s/ John W. Gamble, Jr.
			John W. Gamble, Jr.
			Executive Vice President, Chief Financial Officer
			and Chief Operations Officer
			(Principal Financial Officer)

Date:	July ~~21, 2022~~25, 2023		/s/ James M. Griggs
			James M. Griggs
			Chief Accounting Officer and Corporate Controller
			(Principal Accounting Officer)

4039


	Foreign currency		Pension and other postretirement benefit plans		Cash flow hedging transactions		Total
	(In millions)
Balance, December 31, 2021	$	(292.5)	$	(1.9)	$	(1.0)	$	(295.4)
Other comprehensive loss before reclassifications	(131.8)		—		—		(131.8)
Amounts reclassified from accumulated other comprehensive loss	13.6		(0.8)		—		12.8
Net current-period other comprehensive income (loss)	(118.2)		(0.8)		—		(119.0)
Balance, June 30, 2022	$	(410.7)	$	(2.7)	$	(1.0)	$	(414.4)