8-KRegulation FDExhibits & Filings

EQUIFAX INC 8-K Report, Regulation FD Disclosure (Nov 6, 2013)

Filed November 6, 2013For Securities:EFX

Summary

This Form 8-K filing from Equifax Inc. (EFX), dated November 6, 2013, discloses a retrospective adjustment to the purchase price allocation for the December 28, 2012 acquisition of CSC Credit Services Inc. This adjustment reclassified certain intangible assets, increasing amortizable assets and decreasing non-amortizable ones. As a consequence, Equifax recorded an additional $7.7 million in amortization expense ($4.8 million net of tax) for the third quarter of 2013. This brings the year-to-date amortization expense in line with the adjusted intangible assets since the acquisition date. Importantly, this adjustment had no impact on cash provided by operating activities, nor on a non-GAAP basis, adjusted EPS excluding acquisition-related amortization.

Key Highlights

  • 1Equifax made a purchase price allocation adjustment for the CSC Credit Services Acquisition completed in December 2012.
  • 2The adjustment increased amortizable acquisition-related intangible assets and decreased non-amortizable ones.
  • 3An additional $7.7 million ($4.8 million net of tax) in amortization expense was recognized in Q3 2013.
  • 4The adjustment corrects year-to-date amortization expense to reflect the adjusted intangible assets from the acquisition date.
  • 5There was no impact on cash provided by operating activities.
  • 6Non-GAAP adjusted EPS, excluding acquisition-related amortization, was also unaffected by this adjustment.
  • 7A reconciliation of financial statements and non-GAAP measures is provided in Exhibit 99.1.

Frequently Asked Questions

This filing is to disclose a correction to the purchase price allocation related to the prior acquisition of CSC Credit Services Inc. This correction impacts how intangible assets from that acquisition are treated for amortization purposes.

The adjustment resulted in an additional $7.7 million ($4.8 million net of tax) of amortization expense being recognized in the third quarter of 2013. While this increases GAAP reported amortization, it did not affect cash flow from operations or non-GAAP adjusted EPS (excluding acquisition-related amortization).

No, the filing explicitly states that the adjustment had no impact on cash provided by operating activities.

More detailed information, including a reconciliation of certain Consolidated Statements of Income balances and non-GAAP financial measures, is available in Exhibit 99.1 filed with this Form 8-K.