Equifax 2003 Annual Report Download - page 65

NOTES TO CONSOLIDATED FINANCIAL STATEM ENTS
62 EQUIFAX. INFORMATION THAT EMPOWERS.
2002 First Second Third Fourth
Operating revenue $259.0 $268.0 $289.7 $292.6
Operating income $ 79.3 $ 87.6 $ 89.7 $ 94.7
Income from continuing
operations $ 42.0 $ 47.9 $ 49.7 $ 51.7
Net income $ 41.7 $ 47.5 $ 38.9 $ 49.9
Per Common Share (Basic):
Income from
continuing operations $ 0.31 $ 0.35 $ 0.37 $ 0.38
Net income $ 0.31 $ 0.35 $ 0.29 $ 0.37
Per Common Share (Diluted):
Income from continuing
operations $ 0.30 $ 0.34 $ 0.36 $ 0.38
Net income $ 0.30 $ 0.34 $ 0.28 $ 0.36
14. SEGM ENT INFORM ATION
Our operations are organized into five reportable segments, three
(“Equifax North America,” “Equifax Europe,” and “Equifax Latin
America”) of which are dedicated to the marketing and selling of our
core product lines (i.e., Information Services, Marketing Services and
Consumer Direct Services) and related business operations within
finite geographic regions. The “Other” reportable segment pertains to
an inactive product line. We also separately disclose the financial
information pertaining to our divested operations. The accounting
policies of the segments are the same as those described in our
summary of significant accounting and reporting policies (Note 1). We
evaluate the performance of these segments based on their operating
revenues, operating income, and operating margins, excluding any
unusual or infrequent items (if any). Inter-segment sales and transfers
are not material. The measurement criteria for segment profit or loss
and segment assets are substantially the same for each reportable
segment. All transactions between segments are accounted for at
cost, and no timing differences occur between segments.
The 2003 and 2002 operating results for our commercial services
business component in Spain have been reclassified to discontin-
ued operations and are not included in Equifax Europe’s reported
segment results as shown below. However, the 2001 operating
results for this business component have not been reclassified to
discontinued operations since they were not material, and there-
fore are included in the Equifax Europe’s reported segment results
as shown below for that year (see Note 3).
Goodwill amortization in 2001 for all business segments has
been reclassified to a separate line to provide for comparability
with 2003 and 2002.
A more detailed description of these reportable segments and their
products and services is as follows:
Equifax North America Comprises the Information Services,
Marketing Services, and Consumer Direct operating segments.
Products and services are provided in the United States and Canada
and consist of Information Services which includes consumer and
commercial services such as credit information, and credit scoring,
credit modeling services, locate service, fraud detection and preven-
tion services, mortgage loan origination information services, iden-
tity verification services, and other consulting services; Marketing
Services which includes credit card marketing services, and con-
sumer demographic and lifestyle information services; Predicative
Analytical Science Services which includes consulting in the formu-
lation and execution of decision strategies to maximize revenue
opportunities for the customers of our Information and M arketing
Services businesses; and Consumer Direct credit and finance prod-
ucts sold directly to individuals.
Equifax Europe Comprises the United Kingdom, Italy, and Spain
businesses. Products and services offerings consist of Information
Services including consumer and commercial services such as
credit and financial information, credit scoring, and credit modeling
services; and Credit Marketing Services.
Equifax Latin America Comprises the Argentina, Brazil, Chile,
El Salvador, Peru, and Uruguay businesses. Products and services
offerings consist of Information Services including consumer and
commercial services such as credit and financial information, credit
scoring, and credit modeling services; and Credit Marketing Services.
Other Pertains to lottery services relating solely to a contract to
provide services to the state of California. Services under this
contractual arrangement ceased during 2002. No further revenue
or operating income has been received since second quarter 2002
or is expected to recur.
Divested Operations Pertains to the City Directory businesses
divested in the fourth quarter of 2001.
Segment information for 2003, 2002, and 2001 is as follows:
(in millions) 2003 2002 2001
Operating Revenue:
Equifax North America $1,015.0 $902.2 $ 852.4
Equifax Europe 130.5 126.1 141.1
Equifax Latin America 79.9 76.6 106.7
Other –4.4 9.6
1,225.4 1,109.3 1,109.8
Divested Operations ––29.2
$1,225.4 $1,109.3 $1,139.0