Equifax 2010 Annual Report Download - page 14

As used herein, the terms Equifax, the Company, we, our and us
refer to Equifax Inc., a Georgia corporation, and its consolidated
subsidiaries as a combined entity, except where it is clear that the
terms mean only Equifax Inc.
All references to earnings per share data in Management’s Discus-
sion and Analysis, or MD&A, are to diluted earnings per share, or
EPS, unless otherwise noted. Diluted EPS is calculated to reflect the
potential dilution that would occur if stock options or other contracts
to issue common stock were exercised and resulted in additional
common shares outstanding.
BUSINESS OVERVIEW
We are a leading global provider of information solutions, employ-
ment, income and identity verifications and human resources
business process outsourcing services. We leverage some of
the largest sources of consumer and commercial data, along with
advanced analytics and proprietary technology, to create custom-
ized insights which enable our business customers to grow faster,
more efficiently, and more profitably, and to inform and empower
consumers.
Businesses rely on us for consumer and business credit intelligence,
credit portfolio management, fraud detection, decisioning technology,
marketing tools, and human resources and payroll services. We also
offer a portfolio of products that enable individual consumers to man-
age their financial affairs and protect their identity. Our revenue
stream is diversified among individual consumers and among busi-
nesses across a wide range of industries and international
geographies.
Segment and Geographic Information
Segments. The U.S. Consumer Information Solutions, or USCIS,
segment, the largest of our five segments, consists of three product
and service lines: Online Consumer Information Solutions, or OCIS;
Mortgage Solutions; and Consumer Financial Marketing Services.
OCIS and Mortgage Solutions revenue is principally transaction-
based and is derived from our sales of products such as consumer
credit reporting and scoring, mortgage settlement services, identity
verification, fraud detection and modeling services. USCIS also
markets certain of our decisioning products which facilitate and
automate a variety of consumer credit-oriented decisions. Consumer
Financial Marketing Services revenue is principally project- and
subscription-based and is derived from our sales of batch credit,
consumer wealth or demographic 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 Latin America, Europe and
Canada Consumer. Canada Consumer’s products and services are
similar to our USCIS offerings, while Europe and Latin America are
made up of varying mixes of product lines that are in our USCIS,
North America Commercial Solutions and North America Personal
Solutions reportable segments.
The TALX segment consists of The Work Number�and Tax and Tal-
ent Management business units. The Work Number revenue is
transaction-based and is derived primarily from employment, income
and social security number verifications. Tax and Talent Management
revenues are derived from our provision of certain human resources
business process outsourcing services that include both transaction-
and subscription-based product offerings. These services assist our
customers with the administration of unemployment claims and
employer-based tax credits and the assessment of new hires.
North America Personal Solutions revenue is both transaction- and
subscription-based and is derived from the sale of credit monitoring,
debt management and identity theft protection products, which
we deliver to consumers through the mail and electronically via the
internet.
North America Commercial Solutions revenue is principally transac-
tion-based, with the remainder project-based, and is derived from the
sale of business information, credit scores and portfolio analytics that
enable customers to utilize our reports to make financial, marketing
and purchasing decisions related to businesses.
Geographic Information. We currently operate in the following
countries: Argentina, Brazil, Canada, Chile, Costa Rica, Ecuador,
El Salvador, Honduras, Paraguay, Peru, Portugal, the Republic of
Ireland, Spain, the U.K., Uruguay, and the U.S. Our operations in
Costa Rica and the Republic of Ireland focus on data handling and
customer support activities. We own an equity interest in a consumer
credit information company in Russia. During 2009, we formed a joint
venture to provide a broad range of credit data and information solu-
tions in India. Of the countries we operate in, 73% of our revenue
was generated in the U.S. during the twelve months ended
December 31, 2010.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EQUIFAX 2010 ANNUAL REPORT
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