REVENUE
On January 1, 2018 we adopted ASU 2014-09 using the modified retrospective approach. Comparative financial statements of prior periods have not been adjusted to apply the new method retrospectively. The new method of accounting was applied only to contracts that were not completed at the date of application as well as to the contracts entered into on or after January 1, 2018. Additionally, we reflected the aggregate effect of all modifications to these contracts when identifying the satisfied and unsatisfied performance obligations, as well as determining the transaction price and allocating the transaction price.
The effect of the adoption on key financial statement line items for the twelve months ended December 31, 2018 and as of December 31, 2018 is as follows:
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Twelve Months Ended
December 31, 2018 |
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Change |
Income Statement |
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Prior to ASU 2014-09 adoption |
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As reported under ASU 2014-09 |
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$ |
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% |
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(In millions, except per share data) |
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Operating revenue |
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$ |
3,410.3 |
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$ |
3,412.1 |
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$ |
1.8 |
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— |
% |
Consolidated income from operations before income taxes |
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$ |
354.5 |
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$ |
356.3 |
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$ |
1.8 |
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1 |
% |
Consolidated net income |
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$ |
304.9 |
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$ |
306.3 |
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$ |
1.4 |
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— |
% |
Net income attributable to Equifax |
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$ |
298.4 |
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$ |
299.8 |
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$ |
1.4 |
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— |
% |
Basic earnings per common share: |
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Net income attributable to Equifax |
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$ |
2.48 |
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$ |
2.49 |
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$ |
0.01 |
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— |
% |
Diluted earnings per common share: |
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Net income attributable to Equifax |
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$ |
2.46 |
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$ |
2.47 |
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$ |
0.01 |
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— |
% |
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December 31, 2018 |
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Change |
Balance Sheet |
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Prior to ASU 2014-09 adoption |
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As reported under ASU 2014-09 |
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$ |
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% |
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(In millions) |
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Other current assets |
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$ |
109.4 |
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$ |
109.6 |
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$ |
0.2 |
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— |
% |
Other assets, net |
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$ |
155.3 |
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$ |
162.4 |
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$ |
7.1 |
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5 |
% |
Total assets |
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$ |
7,145.9 |
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$ |
7,153.2 |
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$ |
7.3 |
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— |
% |
Deferred income tax liabilities, net |
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$ |
314.5 |
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$ |
316.2 |
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$ |
1.7 |
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1 |
% |
Total liabilities |
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$ |
3,995.8 |
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$ |
3,997.5 |
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$ |
1.7 |
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— |
% |
Retained earnings |
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$ |
4,712.2 |
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$ |
4,717.8 |
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$ |
5.6 |
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— |
% |
Total shareholders’ equity |
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$ |
3,150.1 |
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$ |
3,155.7 |
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$ |
5.6 |
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— |
% |
Total liabilities and equity |
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$ |
7,145.9 |
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$ |
7,153.2 |
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$ |
7.3 |
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— |
% |
Revenue Recognition. Based on the information management reviews internally for evaluating operating segment performance and nature, amount, timing, and uncertainty of revenue and cash flows affected by economic factors, we disaggregate revenue as follows:
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Twelve Months Ended
December 31, |
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Change |
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Change |
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2018 |
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2017 |
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2017 |
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2016 |
Consolidated Operating Revenue |
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2018 |
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2017 |
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2016 |
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$ |
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% |
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$ |
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% |
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(In millions) |
Online Information Solutions |
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$ |
877.5 |
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$ |
889.6 |
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$ |
879.3 |
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$ |
(12.1 |
) |
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(1 |
)% |
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$ |
10.3 |
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1 |
% |
Mortgage Solutions |
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153.6 |
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148.9 |
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$ |
142.2 |
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$ |
4.7 |
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3 |
% |
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$ |
6.7 |
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5 |
% |
Financial Marketing Services |
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216.2 |
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224.2 |
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$ |
215.0 |
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$ |
(8.0 |
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(4 |
)% |
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$ |
9.2 |
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4 |
% |
Total U.S. Information Solutions |
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1,247.3 |
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1,262.7 |
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$ |
1,236.5 |
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$ |
(15.4 |
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(1 |
)% |
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$ |
26.2 |
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2 |
% |
Asia Pacific |
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325.6 |
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308.9 |
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$ |
244.2 |
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$ |
16.7 |
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5 |
% |
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$ |
64.7 |
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26 |
% |
Europe |
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287.3 |
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273.8 |
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$ |
253.6 |
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$ |
13.5 |
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5 |
% |
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$ |
20.2 |
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8 |
% |
Latin America |
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206.6 |
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213.6 |
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$ |
183.9 |
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$ |
(7.0 |
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(3 |
)% |
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$ |
29.7 |
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16 |
% |
Canada |
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146.7 |
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136.0 |
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$ |
121.9 |
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$ |
10.7 |
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8 |
% |
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$ |
14.1 |
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12 |
% |
Total International |
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966.2 |
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932.3 |
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$ |
803.6 |
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$ |
33.9 |
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4 |
% |
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$ |
128.7 |
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16 |
% |
Verification Services |
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567.0 |
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501.5 |
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$ |
437.3 |
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$ |
65.5 |
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13 |
% |
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$ |
64.2 |
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15 |
% |
Employer Services |
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259.8 |
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262.7 |
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$ |
264.9 |
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$ |
(2.9 |
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(1 |
)% |
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$ |
(2.2 |
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(1 |
)% |
Total Workforce Solutions |
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826.8 |
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764.2 |
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$ |
702.2 |
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$ |
62.6 |
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8 |
% |
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$ |
62.0 |
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9 |
% |
Global Consumer Solutions |
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371.8 |
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403.0 |
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$ |
402.6 |
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$ |
(31.2 |
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(8 |
)% |
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$ |
0.4 |
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— |
% |
Total operating revenue |
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$ |
3,412.1 |
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$ |
3,362.2 |
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$ |
3,144.9 |
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$ |
49.9 |
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1 |
% |
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$ |
217.3 |
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7 |
% |
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