8-KOther EventsExhibits & Filings

EQUIFAX INC 8-K Report, Corporate Update (Jul 30, 2010)

Filed July 30, 2010For Securities:EFX

Summary

This 8-K filing from Equifax Inc. (EFX) on July 30, 2010, primarily announces the recasting of its financial statements to reflect the divestiture of two business segments: Equifax Enabling Technologies LLC (APPRO) and its Direct Marketing Services (DMS) division. These businesses, sold for approximately $72 million and $117 million respectively, are now presented as discontinued operations. This change requires restating prior period financial information to properly segregate the results of the disposed segments from the company's ongoing operations. The recasting impacts various sections of the company's previously filed 2009 Form 10-K and its First Quarter 2010 Form 10-Q. Investors should review the revised financial data, including selected financial data, Management's Discussion and Analysis (MD&A), and financial statements, to understand the financial performance of Equifax's continuing operations and the impact of these significant divestitures.

Key Highlights

  • 1Equifax Inc. divested its APPRO loan origination software product line for approximately $72 million.
  • 2Equifax Inc. sold its Direct Marketing Services (DMS) division for approximately $117 million.
  • 3Both APPRO and DMS are now accounted for as discontinued operations.
  • 4Prior period financial information in the 2009 Form 10-K is being recast to reflect these divestitures.
  • 5Financial information for the quarter ended March 31, 2010, in the First Quarter 2010 10-Q is also being recast.
  • 6The purpose of the filing is to provide investors with a clearer view of the financial performance of Equifax's continuing operations.

Frequently Asked Questions

Equifax filed this 8-K to formally announce and provide recast financial information reflecting the sale of its APPRO loan origination software business and its Direct Marketing Services (DMS) division. These businesses are now being reported as discontinued operations, meaning their past financial results are separated from Equifax's ongoing business activities.

Equifax sold its APPRO legal entity for approximately $72 million and its DMS division for approximately $117 million, totaling roughly $189 million in proceeds from these divestitures.

Equifax is recasting its financial statements to accurately present its financial performance. By treating APPRO and DMS as discontinued operations, the company can clearly distinguish the revenues, expenses, and profits of its core, continuing businesses from those of the divested segments. This provides investors with a more accurate understanding of the company's ongoing operational health.

Reporting segments as 'discontinued operations' means that the financial results of these segments are presented separately from the company's continuing operations. Prior period financial statements are restated to reflect this separation, allowing for a clearer comparison of the performance of the ongoing business over time. Any gains or losses from the sale of these segments are also reported.