Equifax 2004 Annual Report Download - page 79

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N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
15.฀SEGMENT฀INFORMATION
Our operations are organized into four reportable segments,
with three primary reportable segments (i.e. “Equifax North
America,” “Equifax Europe” and “Equifax Latin America”)
dedicated to the marketing and selling of our core product
lines (i.e. Information Services, Marketing Services and
Personal Solutions) and related business operations within
fi nite geographic regions. The fourth reportable segment
(“Other”) pertains to an inactive product line. We also sepa-
rately disclose the fi nancial information pertaining to our
divested operations. The accounting policies of the segments
are the same as those described in our summary of signifi -
cant accounting and reporting policies (Note 1). We evaluate
the performance of these segments based on their operating
revenues, operating income and operating margins, exclud-
ing any unusual or infrequent items (if any). Inter-segment
sales and transfers are not material. The measurement
criteria for segment profi t 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 2004, 2003 and 2002 operating results for our Italian
business and the commercial services business component
in Spain have been reclassifi ed to discontinued operations
and are not included in the Equifax Europe’s reported seg-
ment results as shown below. (Note 3)
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 Personal Solutions
operating segments. Products and services are provided in
the U.S. 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 prevention
services, mortgage loan origination information services,
identity verifi cation services and other consulting services;
Marketing Services which includes credit card marketing
services and consumer demographic and lifestyle informa-
tion services; Predictive Analytical Science Services which
includes consulting in the formulation and execution of
decision strategies to maximize revenue opportunities for the
customers of our Information and Marketing Services busi-
nesses; and Personal Solutions credit and fi nance products
sold directly to individuals.
Equifax Europe.
Comprises the U.K. and Spain oper-
ating segments. Products and services offerings consist
of Information Services including consumer and com-
mercial services such as credit and fi nancial information,
credit scoring and credit modeling services; and Credit
Marketing Services.
Equifax Latin America.
Comprises the Argentina,
Brazil, Chile, El Salvador, Peru and Uruguay operating seg-
ments. Product and service offerings consist of Information
Services including consumer and commercial services such
as credit and fi nancial information, credit scoring and credit
modeling services and Credit Marketing Services.
Other.
Pertains to lottery services relating solely to a con-
tract to provide services to the state of California. Services
under this contract ceased during 2002. No further revenue
or operating income has been received since the second
quarter 2002 or is expected to recur.
Divested Operations.
Pertains to the Italian mortgage
information services business divested in the fourth quarter
of 2004 and the commercial services business component of
Spain divested in the third quarter of 2002.
Segment information for 2004, 2003 and 2002 is as follows:
Twelve Months Ended
December 31,
(in millions)
2004
2003 2002
Operating Revenue:
Equifax North America
Information Services
$ 707.1
$ 679.8 $ 588.0
Marketing Services
236.1
265.7 274.8
Personal Solutions
96.1
69.5 39.4
Equifax North America
1,039.3
1,015.0 902.2
Equifax Europe
142.0
115.8 112.1
Equifax Latin America
91.5
79.9 76.6
Other
–
– 4.4
–
–
$1,272.8
$1,210.7 $1,095.3