Equifax Inc 10-Q for FY2024 Q3

Equifax Inc (EFX)

10-Q 2024-10-21 For: 2024-09-30

Added on April 11, 2026

About this 10-Q

Equifax Inc filed this 10-Q on October 21, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.44B; up 9.3% from $1.32B a year earlier
Net income: $141.3M; down 12.9% from net income of $162.2M a year earlier
Diluted EPS: $1.13; down 13.7% from $1.31 a year earlier

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Georgia			58-0401110
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			Identification No.)


		Page
PART I.	Financial Information	4
Item 1.	Financial Statements (Unaudited)	4
	Consolidated Statements of Income—Three Months Ended September 30, 2024 and 2023	4
	Consolidated Statements of Income—Nine Months Ended September 30, 2024 and 2023	5
	Consolidated Statements of Comprehensive Income (Loss)—Three and Nine Months Ended Septe mber 30, 2024 and 2023	6

	Consolidated Balance Sheets—September 30, 2024 and December 31, 2023	7
	Consolidated Statements of Cash Flows—Ni ne Months Ended September 30, 2024 and 2023	8
	Consolidated Statements of Shareholders' Equity—Three Months Ended September 30, 2024 and 2023	9
	Consolidated Statements of Shareholders' Equity and Accumulated Other Comprehensive Loss—Nine Months Ended September 30, 2024 and 2023	10

	Notes to Consolidated Financial Statements (Unaudited)	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
PART II.	Other Information	38
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 5	Other Information	40
Item 6.	Exhibits	41
Signatures		42


	Three Months Ended September 30,
	2024		2023
(In millions, except per share amounts)
Operating revenue	$	1,441.8	$	1,319.1
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	645.2		585.2
Selling, general and administrative expenses	380.4		333.1
Depreciation and amortization	169.1		154.4
Total operating expenses	1,194.7		1,072.7
Operating income	247.1		246.4
Interest expense	(56.3)		(62.8)
Other income, net	3.0		7.1
Consolidated income before income taxes	193.8		190.7
Provision for income taxes	(51.1)		(26.4)


Consolidated net income	142.7		164.3
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(1.4)		(2.1)

Net income attributable to Equifax	$	141.3	$	162.2




Basic earnings per common share:


Net income attributable to Equifax	$	1.14	$	1.32
Weighted-average shares used in computing basic earnings per share	123.9		123.0
Diluted earnings per common share:


Net income attributable to Equifax	$	1.13	$	1.31
Weighted-average shares used in computing diluted earnings per share	125.2		123.9
Dividends per common share	$	0.39	$	0.39


	Nine Months Ended September 30,
	2024		2023
(In millions, except per share amounts)
Operating revenue	$	4,261.7	$	3,938.7
Operating expenses:
Cost of services (exclusive of depreciation and amortization below)	1,903.7		1,753.5
Selling, general and administrative expenses	1,105.7		1,042.3
Depreciation and amortization	498.3		454.4
Total operating expenses	3,507.7		3,250.2
Operating income	754.0		688.5
Interest expense	(173.4)		(181.1)
Other income, net	4.3		27.7
Consolidated income before income taxes	584.9		535.1
Provision for income taxes	(151.0)		(117.9)


Consolidated net income	433.9		417.2
Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests	(3.8)		(4.3)

Net income attributable to Equifax	$	430.1	$	412.9




Basic earnings per common share:


Net income attributable to Equifax	$	3.48	$	3.36
Weighted-average shares used in computing basic earnings per share	123.7		122.7
Diluted earnings per common share:


Net income attributable to Equifax	$	3.44	$	3.34
Weighted-average shares used in computing diluted earnings per share	124.9		123.6
Dividends per common share	$	1.17	$	1.17


	Three Months Ended September 30,
	2024				2023
	Equifax Shareholders		Noncontrolling Interests including Redeemable Noncontrolling Interests		Total		Equifax Shareholders		Noncontrolling Interests including Redeemable Noncontrolling Interests		Total
	(In millions)
Net income	$	141.3	$	1.4	$	142.7	$	162.2	$	2.1	$	164.3
Other comprehensive income (loss):
Foreign currency translation adjustment	79.2		(0.4)		78.8		(118.0)		(2.6)		(120.6)



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


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


(In millions, except par values)	September 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	468.2	$	216.8
Trade accounts receivable, net of allowance for doubtful accounts of $17.1 and $16.7 at September 30, 2024 and December 31, 2023, respectively	953.6		908.2
Prepaid expenses	133.7		142.5
Other current assets	97.6		88.8
Total current assets	1,653.1		1,356.3
Property and equipment:
Capitalized internal-use software and system costs	2,789.7		2,541.0
Data processing equipment and furniture	257.4		247.9
Land, buildings and improvements	285.9		272.9
Total property and equipment	3,333.0		3,061.8
Less accumulated depreciation and amortization	(1,417.1)		(1,227.8)
Total property and equipment, net	1,915.9		1,834.0
Goodwill	6,730.0		6,829.9
Indefinite-lived intangible assets	94.8		94.8
Purchased intangible assets, net	1,632.1		1,858.8
Other assets, net	318.4		306.2
Total assets	$	12,344.3	$	12,280.0
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current maturities of long-term debt	$	750.5	$	963.4
Accounts payable	152.8		197.6
Accrued expenses	263.0		245.1
Accrued salaries and bonuses	206.1		168.7
Deferred revenue	111.7		109.5
Other current liabilities	390.3		334.7
Total current liabilities	1,874.4		2,019.0
Long-term debt	4,721.1		4,747.8
Deferred income tax liabilities, net	342.5		474.9
Long-term pension and other postretirement benefit liabilities	95.2		100.1
Other long-term liabilities	264.5		250.7
Total liabilities	7,297.7		7,592.5
Commitments and Contingencies (see Note 6)

Redeemable noncontrolling interests	120.5		135.1
Equifax shareholders' equity:
Preferred stock, $0.01 par value: Authorized shares - 10.0; Issued shares - none	—		—
Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at September 30, 2024 and December 31, 2023; Outstanding shares - 123.9 and 123.3 at September 30, 2024 and December 31, 2023, respectively	236.6		236.6
Paid-in capital	1,897.1		1,761.3
Retained earnings	5,893.2		5,608.6
Accumulated other comprehensive loss	(465.1)		(431.2)
Treasury stock, at cost, 64.8 shares and 65.4 shares at September 30, 2024 and December 31, 2023, respectively	(2,646.9)		(2,635.3)
Stock held by employee benefits trusts, at cost, 0.6 shares at September 30, 2024 and December 31, 2023	(5.9)		(5.9)

Total Equifax shareholders’ equity	4,909.0		4,534.1
Noncontrolling interests	17.1		18.3
Total shareholders' equity	4,926.1		4,552.4
Total liabilities, redeemable noncontrolling interests, and shareholders' equity	$	12,344.3	$	12,280.0


	Equifax Shareholders
								Accumulated Other Comprehensive Loss				Stock Held By Employee Benefits Trusts				Total Shareholders' Equity
	Common Stock
	Shares Outstanding	Amount		Paid-In Capital		Retained Earnings				Treasury Stock				Noncontrolling Interests
	(In millions, except per share amounts)
Balance, June 30, 2024	123.7	$	236.6	$	1,856.8	$	5,800.4	$	(544.3)	$	(2,647.6)	$	(5.9)	$	16.8	$	4,712.8

Net income	—	—		—		141.3		—		—		—		1.4		142.7
Other comprehensive income (loss)	—	—		—		—		79.2		—		—		(0.1)		79.1
Shares issued under stock and benefit plans, net of minimum tax withholdings	0.2	—		28.4		—		—		0.7		—		—		29.1

Cash dividends ($0.39 per share)	—	—		—		(48.5)		—		—		—		—		(48.5)
Dividends paid to employee benefits trusts	—	—		0.2		—		—		—		—		—		0.2
Stock-based compensation expense	—	—		11.7		—		—		—		—		—		11.7




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



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


	Three Months Ended September 30,				Change				Nine Months Ended September 30,				Change
Consolidated Operating Revenue	2024		2023		$		%		2024		2023		$		%
	(In millions)								(In millions)
Verification Services	$	524.9	$	459.3	$	65.6	14	%	$	1,517.2	$	1,389.1	$	128.1	9	%
Employer Services	95.1		117.9		(22.8)		(19)	%	318.4		367.2		(48.8)		(13)	%
Total Workforce Solutions	620.0		577.2		42.8		7	%	1,835.6		1,756.3		79.3		5	%
Online Information Solutions	381.1		348.2		32.9		9	%	1,139.1		1,047.8		91.3		9	%
Mortgage Solutions	38.0		27.3		10.7		39	%	116.4		90.8		25.6		28	%
Financial Marketing Services	57.8		50.5		7.3		14	%	165.0		154.1		10.9		7	%
Total U.S. Information Solutions	476.9		426.0		50.9		12	%	1,420.5		1,292.7		127.8		10	%
Latin America	96.7		80.1		16.6		21	%	285.1		192.3		92.8		48	%
Europe	94.9		85.2		9.7		11	%	269.3		239.6		29.7		12	%
Asia Pacific	88.5		85.5		3.0		4	%	251.4		263.1		(11.7)		(4)	%
Canada	64.8		65.1		(0.3)		—	%	199.8		194.7		5.1		3	%
Total International	344.9		315.9		29.0		9	%	1,005.6		889.7		115.9		13	%
Total operating revenue	$	1,441.8	$	1,319.1	$	122.7	9	%	$	4,261.7	$	3,938.7	$	323.0	8	%


Performance Obligation	Amount
	(In millions)
Less than 1 year	$	32.5
1 to 3 years	37.2
3 to 5 years	17.9
Thereafter	15.2
Total remaining performance obligation	$	102.8


	Workforce Solutions		U.S. Information Solutions		International		Total

Balance, December 31, 2023	$	2,520.2	$	2,006.2	$	2,303.5	$	6,829.9

Adjustments to initial purchase price allocation	—		—		(68.7)		(68.7)
Foreign currency translation	(0.1)		—		(31.1)		(31.2)

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


	September 30, 2024						December 31, 2023
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite-lived intangible assets:	(In millions)
Purchased data files	$	1,153.6	$	(670.3)	$	483.3	$	1,158.5	$	(604.2)	$	554.3
Customer relationships	1,036.6		(542.4)		494.2		1,053.5		(484.2)		569.3

Proprietary database	705.6		(213.8)		491.8		705.8		(171.5)		534.3
Acquired software and technology	218.0		(97.6)		120.4		222.5		(75.4)		147.1
Trade names, non-compete agreements and other intangible assets	64.2		(21.8)		42.4		79.6		(25.8)		53.8

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


Years ending December 31,	Amount
	(In millions)
2024	$	64.8
2025	254.0
2026	238.2
2027	225.4
2028	169.2
Thereafter	680.5
	$	1,632.1


	Foreign currency translation adjustment		Pension and other postretirement benefit plans		Cash flow hedging transactions		Total
	(In millions)
Balance, December 31, 2023	$	(426.7)	$	(3.6)	$	(0.9)	$	(431.2)
Other comprehensive (loss) income	(34.1)		0.1		0.1		(33.9)


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


	Nine Months Ended September 30,
	2024		2023
	(In millions)
Operating activities:
Consolidated net income	$	433.9	$	417.2
Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation and amortization	506.9		461.0
Stock-based compensation expense	71.9		61.3

Deferred income taxes	(45.2)		(67.9)
Gain on fair market value adjustment and gain on sale of equity investments	—		(13.8)

Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net	(47.8)		(86.4)
Other assets, current and long-term	(13.3)		(16.0)
Current and long term liabilities, excluding debt	93.3		39.3
Cash provided by operating activities	999.7		794.7
Investing activities:
Capital expenditures	(392.6)		(455.6)
Acquisitions, net of cash acquired	—		(276.0)

Cash received from divestitures	—		6.9

Cash used in investing activities	(392.6)		(724.7)
Financing activities:
Net short-term payments	(195.9)		(83.6)
Payments on long-term debt	(695.6)		(575.0)
Proceeds from issuance of long-term debt	649.8		872.9

Dividends paid to Equifax shareholders	(144.8)		(143.7)
Distributions paid to noncontrolling interests	(4.4)		(2.8)
Proceeds from exercise of stock options and employee stock purchase plan	67.5		18.6
Payment of taxes related to settlement of equity awards	(16.4)		(16.9)


Debt issuance costs	(5.2)		(6.0)


	September 30, 2024		December 31, 2023
	(In millions)
Commercial paper ("CP")	$	—	$	196.0



Notes, 2.60%, due December 2024	750.0		750.0
Notes, 2.60%, due December 2025	400.0		400.0
Notes, 3.25%, due June 2026	275.0		275.0

Term loan, due August 2026	—		695.6
Notes, 5.10%, due December 2027	750.0		750.0
Notes, 5.10%, due June 2028	700.0		700.0
Debentures, 6.90%, due July 2028	125.0		125.0
Notes, 4.80%, due September 2029	650.0		—
Notes, 3.10%, due May 2030	600.0		600.0
Notes, 2.35%, due September 2031	1,000.0		1,000.0
Notes, 7.00%, due July 2037	250.0		250.0
Other	0.5		—
Total debt	5,500.5		5,741.6
Less short-term debt and current maturities	(750.5)		(963.4)
Less unamortized discounts and debt issuance costs	(28.9)		(30.4)
Total long-term debt, net	$	4,721.1	$	4,747.8


	Liability balance as of 12/31/2023		Expenses Incurred		Cash Payments		Liability balance as of 9/30/2024
Restructuring charges:	(In millions)
Severance costs	$	13.4	$	32.4	$	(16.9)	$	28.9
Contract terminations and other associated costs	4.9		7.7		(6.9)		5.7
Other exit and disposal costs	—		1.5		—		1.5

Total	$	18.3	$	41.6	$	(23.8)	$	36.1


	Three Months Ended				Nine Months Ended
(In millions)	September 30,				September 30,
Operating revenue:	2024		2023		2024		2023
Workforce Solutions	$	620.0	$	577.2	$	1,835.6	$	1,756.3
U.S. Information Solutions	476.9		426.0		1,420.5		1,292.7
International	344.9		315.9		1,005.6		889.7
Total operating revenue	$	1,441.8	$	1,319.1	$	4,261.7	$	3,938.7


	September 30,		December 31,
(In millions)	2024		2023
Total assets:
Workforce Solutions	$	4,109.9	$	4,144.7
U.S. Information Solutions	3,412.3		3,296.1
International	3,763.0		3,909.0
General Corporate	1,059.1		930.2
Total assets	$	12,344.3	$	12,280.0


	Key Performance Indicators
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(In millions, except per share data)
Operating revenue	$	1,441.8		$	1,319.1		$	4,261.7		$	3,938.7
Operating revenue change	9		%	6		%	8		%	—		%
Operating income	$	247.1		$	246.4		$	754.0		$	688.5
Operating margin	17.1		%	18.7		%	17.7		%	17.5		%
Net income attributable to Equifax	$	141.3		$	162.2		$	430.1		$	412.9
Diluted earnings per share	$	1.13		$	1.31		$	3.44		$	3.34
Cash provided by operating activities	$	479.5		$	381.7		$	999.7		$	794.7
Capital expenditures*	$	(123.2)		$	(145.7)		$	(378.9)		$	(448.6)


	Nine Months Ended September 30,				Change
Net cash provided by (used in):	2024		2023		2024 vs. 2023
	(In millions)
Operating activities	$	999.7	$	794.7	$	205.0
Investing activities	$	(392.6)	$	(724.7)	$	332.1
Financing activities	$	(345.0)	$	63.5	$	(408.5)


	Nine Months Ended September 30,				Change
Net cash used in:	2024		2023		2024 vs. 2023
	(In millions)
Capital expenditures*	$	(392.6)	$	(455.6)	$	63.0


	Nine Months Ended September 30,				Change
Net cash (used in) provided by:	2024		2023		2024 vs. 2023
	(In millions)
Acquisitions, net of cash acquired	$	—	$	(276.0)	$	276.0
Cash received from divestitures	$	—	$	6.9	$	(6.9)


	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)
July 1 - July 31, 2024	32,143	$	—	—	$	520,168,924
August 1 - August 31, 2024	683	$	—	—	$	520,168,924
September 1 - September 30, 2024	673	$	—	—	$	520,168,924
Total	33,499	$	—	—	$	520,168,924


Exhibit No.						Description




4.1						Twelfth Supplemental Indenture, dated as of August 15, 2024, 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 August 15, 2024)
10.1*						Equifax Inc. 2020 Employee Stock Purchase Plan
10.2*						Amendment No. 1 to the Equifax Inc. 2020 Employee Stock Purchase Plan
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)


		Equifax Inc.
		(Registrant)

Date:	October 21, 2024	By:	/s/ Mark W. Begor
			Mark W. Begor
			Chief Executive Officer
			(Principal Executive Officer)

Date:	October 21, 2024		/s/ John W. Gamble, Jr.
			John W. Gamble, Jr.
			Executive Vice President, Chief Financial Officer
			and Chief Operations Officer
			(Principal Financial Officer)

Date:	October 21, 2024		/s/ James M. Griggs
			James M. Griggs
			Chief Accounting Officer and Corporate Controller
			(Principal Accounting Officer)


1.	I have reviewed this quarterly report on Form 10-Q of Equifax Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.