Equifax 2008 Annual Report Download - page 14

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
As used herein, the terms Equifax, the Company, we, our cross-selling to existing customers and managing portfolio
and us refer to Equifax Inc., a Georgia corporation, and its risk.
consolidated subsidiaries as a combined entity, except The International segment consists of Canada Consumer,
where it is clear that the terms mean only Equifax Inc. Europe and Latin America. Canada Consumer’s products
All references to earnings per share data in Management’s and services are similar to our USCIS offerings, while
Discussion and Analysis, or MD&A, are to diluted earnings Europe and Latin America are made up of varying mixes of
per share, or EPS, unless otherwise noted. Diluted EPS is product lines that are in our USCIS, North America Com-
calculated to reflect the potential dilution that would occur mercial Solutions and North America Personal Solutions
if stock options or other contracts to issue common stock reportable segments.
were exercised and resulted in additional common shares The TALX segment consists of The Work Numberand Tax
outstanding. and Talent Management business units. The Work Number
revenue is transaction-based and is derived primarily from
BUSINESS OVERVIEW verification of employment and income data of employees
in the U.S. reported to us by employers. Tax and Talent
We are a leading global provider of information solutions,
Management revenues are derived from our provision of
employment and income verification and human resources
certain human resources business process outsourcing ser-
business process outsourcing services. We leverage some
vices that include both transaction- and subscription-based
of the largest sources of consumer and commercial data,
product offerings. These services assist our customers with
along with advanced analytics and proprietary technology,
the administration of unemployment claims and employer-
to create customized insights which enable our business
based tax credits and the assessment of new hires.
customers to grow faster, more efficiently, more profitably
and to inform and empower consumers. North America Personal Solutions revenue is both transac-
tion- and subscription-based and is derived from the sale
Businesses rely on us for consumer and business credit
of credit monitoring and identity theft protection products,
intelligence, credit portfolio management, fraud detection,
which we deliver to consumers through the mail and elec-
decisioning technology, marketing tools, and human
tronically via the internet.
resources and payroll services. We also offer a portfolio of
products that enable individual consumers to manage their North America Commercial Solutions revenue is principally
financial affairs and protect their identity. Our revenue transaction-based and is derived from the sale of business
stream is diversified among individual consumers and information, credit scores and portfolio analytics that enable
among businesses across a wide range of industries and customers to utilize our reports to make financial, market-
international geographies. ing and purchasing decisions related to businesses.
Geographic Information. We currently operate in the fol-
Segment and Geographic Information
lowing countries: Argentina, Brazil, Canada, Chile, Costa
Segments. The U.S. Consumer Information Solutions, or Rica, Ecuador, El Salvador, Honduras, Peru, Portugal, the
USCIS, segment, the largest of our five segments, consists Republic of Ireland, Spain, the U.K., Uruguay, and the U.S.
of four product and service lines: Online Consumer Infor- Our operations in Costa Rica and the Republic of Ireland
mation Solutions, or OCIS; Mortgage Solutions; Credit Mar- focus on data processing and customer support activities.
keting Services; and Direct Marketing Services. OCIS and During the second quarter of 2008, we expanded into Rus-
Mortgage Solutions revenue is principally transaction-based sia by acquiring an equity interest in a consumer credit
and is derived from our sales of products such as con- information company. Of the countries we operate in, 73%
sumer credit reporting and scoring, mortgage settlement of our revenue was generated in the U.S. during the twelve
services, identity verification, fraud detection and modeling months ended December 31, 2008.
services. USCIS also markets certain of our decisioning
Key Performance Indicators. Management focuses on a
products which facilitate and automate a variety of con-
variety of key indicators to monitor operating and financial
sumer credit-oriented decisions. A significant majority of
performance. These performance indicators include mea-
USCIS products are delivered electronically. Credit Market-
surements of operating revenue, change in operating reve-
ing Services and Direct Marketing Services revenue is prin-
nue, operating income, operating margin, net income,
cipally project- and subscription-based and is derived from
diluted earnings per share, cash provided by operating
our sales of batch credit or demographic information such
activities and capital expenditures. The key performance
as those that assist clients in acquiring new customers,
12 EQUIFAX INC.