EQUIFAX INC

Previous wording

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Equifax Inc. MD&A is provided as a supplement to and should be read in conjunction with our consolidated financial statements and the accompanying Notes to Financial Statements in Item 1 of this Form 10-Q. This section discusses the results of our operations for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. All percentages have been calculated using unrounded amounts for each of the periods presented.

Current wording

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Equifax Inc. MD&A is provided as a supplement to and should be read in conjunction with our consolidated financial statements and the accompanying Notes to Financial Statements in Item 1 of this Form 10-Q. This section discusses the results of our operations for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023. All percentages have been calculated using unrounded amounts for each of the periods presented.

Previous wording

For 2024, our planning assumes that U.S. economic activity, as measured by GDP, is expected to grow but at a slower rate of growth than experienced in 2023. Our plan assumes the U.S. mortgage market, as measured by credit inquiries, is expected to decline by about 11% in 2024 versus 2023. The U.S. mortgage market, particularly the mortgage refinance portion of the U.S. mortgage market, can be significantly impacted by U.S. interest rates which impact mortgage rates available to consumers. In the international markets in which we operate, in particular in Australia, the U.K. and Canada, our planning also assumes economic activity, as measured by GDP, to grow in 2024 but at slower rates than in 2023.

Current wording

For 2024, our planning assumes that U.S. economic activity, as measured by GDP, is expected to grow but at a slower rate of growth than experienced in 2023. Our plan assumes the U.S. mortgage market, as measured by credit inquiries, is expected to decline by about 11% in 2024 versus 2023. The U.S. mortgage market, particularly the mortgage refinance portion of the U.S. mortgage market, can be significantly impacted by U.S. interest rates which impact mortgage rates available to consumers. In the international markets in which we operate, in particular in Australia and Canada, our planning also assumes economic activity, as measured by GDP, to grow in 2024 but at slower rates than in 2023, and in the U.K. for GDP to grow nominally.

Previous wording

Geographic Information. We currently have operations in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the U.K., Uruguay and the U.S. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. Approximately 77% and 78% of our revenue was generated in the U.S. during the three months ended March 31, 2024 and 2023, respectively.

Current wording

Geographic Information. We currently have operations in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the U.K., Uruguay and the U.S. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. Approximately 76% and 78% of our revenue was generated in the U.S. during the three months ended June 30, 2024 and 2023, respectively. Approximately 77% and 78% of our revenue was generated in the U.S. during the six months ended June 30, 2024 and 2023, respectively.

Previous wording

Key Performance Indicators. Management focuses on a variety of key indicators to monitor operating and financial performance. These performance indicators include measurements of operating revenue, change in operating revenue, operating income, operating margin, net income, diluted earnings per share, cash provided by operating activities and capital expenditures. The key performance indicators for the three months ended March 31, 2024 and 2023 were as follows:

Current wording

Key Performance Indicators. Management focuses on a variety of key indicators to monitor operating and financial performance. These performance indicators include measurements of operating revenue, change in operating revenue, operating income, operating margin, net income, diluted earnings per share, cash provided by operating activities and capital expenditures. The key performance indicators for the three and six months ended June 30, 2024 and 2023 were as follows:

Previous wording

•We did not repurchase any shares from public market transactions during the first three months of 2024 and 2023. At March 31, 2024, $520.2 million was available for future purchases of common stock under our share repurchase authorization.

Current wording

•We did not repurchase any shares from public market transactions during the first six months of 2024 and 2023. At June 30, 2024, $520.2 million was available for future purchases of common stock under our share repurchase authorization.

Previous wording

•We paid out $48.2 million or $0.39 per share in dividends to our shareholders during the first three months of 2024.

Current wording

•We paid out $96.4 million or $0.78 per share in dividends to our shareholders during the first six months of 2024.

Previous wording

Revenue increased by $87.4 million, or 7%, for the first quarter of 2024, compared to the same period in 2023. Total revenue was negatively impacted by foreign exchange rates, which decreased revenue by $20.2 million, or 2%, for the first quarter of 2024, compared to same period in 2023.

Current wording

Revenue increased by $112.9 million, or 9%, and increased by $200.3 million, or 8%, for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. Total revenue was negatively impacted by foreign exchange rates, which decreased revenue by $32.2 million, or 2%, and $52.3 million, or 2%, for the second quarter and first six months of 2024, compared to the same periods in 2023.

Previous wording

Revenue in the first quarter of 2024 increased due to revenue growth in USIS, International and Workforce Solutions. International revenue growth was driven by growth in Latin America primarily from the Boa Vista Serviços S.A. ("BVS") acquisition. USIS revenue growth was primarily due to growth in mortgage related online services. Workforce Solutions revenue growth was due to growth in non-mortgage verticals within Verification Services, partially offset by declines in mortgage revenue and declines in Employer Services due to lower tax credit revenue.

Current wording

Revenue in both periods increased due to growth in International, USIS, and Workforce Solutions. International revenue growth for both periods is driven by growth in Latin America primarily from the Boa Vista Serviços S.A. ("BVS") acquisition, completed in August 2023, and local currency growth in Argentina. USIS revenue growth in both periods is primarily due to growth in mortgage related online services. Workforce Solutions revenue growth for both periods is primarily due to growth in non-mortgage verticals within Verification Services, partially offset by declines in mortgage revenue and declines in Employer Services due to lower tax credit revenue.

Previous wording

Cost of services increased $47.3 million in the first quarter of 2024, compared to the same period in 2023. The increase is primarily due to higher royalty costs, costs from BVS which was acquired in the third quarter of 2023, higher costs of purchased data and information, and higher third party cloud usage fees and software costs. The impact of changes in foreign exchange rates on costs of services led to a decrease of $5.8 million in the first quarter of 2024, compared to the same period in 2023.

Current wording

Cost of services increased $42.9 million and $90.2 million in the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in both periods is primarily due to higher royalty and revenue share costs, costs from BVS which was acquired in the third quarter of 2023, and higher third party cloud usage fees, partially offset by lower people costs. The impact of changes in foreign exchange rates on costs of services led to a decrease of $9.6 million and $15.4 million in the second quarter and first six months of 2024, respectively, compared to the same periods in 2023.

Previous wording

Selling, general and administrative expenses increased $6.5 million for the first quarter of 2024, compared to the same period in 2023. The increase is primarily due to costs from BVS which was acquired in the third quarter of 2023, as well as higher legal expenses. The impact of changes in foreign currency exchange rates led to a decrease in selling, general and administrative expenses of $8.5 million for the first quarter of 2024, compared to the same period in 2023.

Current wording

Selling, general and administrative expenses increased $9.5 million and $16.0 million for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in both periods is primarily due to costs from BVS which was acquired in the third quarter of 2023, partially offset by a decrease in people costs. The impact of changes in foreign currency exchange rates led to a decrease in selling, general and administrative expenses of $12.2 million and $20.8 million for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023.

Previous wording

Depreciation and amortization expense increased $14.3 million for the first quarter of 2024, compared to the same period in 2023. The increase is due to higher amortization of purchased intangible assets related to the BVS acquisition, as well as increased amortization of capitalized internal-use software and system costs from technology transformation capital spending incurred previously. The impact of changes in foreign currency exchange rates led to an increase in depreciation and amortization expense of $0.1 million for the first quarter of 2024 compared to the same period in 2023.

Current wording

Depreciation and amortization expense increased $15.2 million and $29.4 million for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase for both periods is primarily due to increased amortization of capitalized internal-use software and system costs from technology transformation capital spending incurred previously, as well as higher amortization of purchased intangible assets related to the BVS acquisition. The impact of changes in foreign currency exchange rates led to a decrease in depreciation and amortization expense of $0.8 million for the second quarter of 2024 and $0.7 million for the first six months of 2024, compared to the same periods in 2023.

Previous wording

Total company operating margin increased by 0.4 percentage points in the first quarter of 2024, compared to the same period in 2023. The margin increase was due to the aforementioned higher reported revenue, partially offset by the increased operating expenses and amortization expenses during the period.

Current wording

Total company operating margin increased by 1.7 percentage points and 1.1 percentage points in the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The margin increase for both periods is due to the aforementioned higher reported revenue partially offset by the increased operating expenses and amortization expenses during the period.

Previous wording

Interest Expense and Other Income, net

Current wording

Interest Expense and Other (Expense) Income, net

Previous wording

Other income, net, decreased $2.8 million in the first quarter of 2024, as compared to the same period in 2023. The decrease for the first quarter of 2024 was due to the gain on fair market value adjustment of our investment in BVS in the first quarter of 2023 that did not recur in the first quarter of 2024 due to our acquisition of BVS in the third quarter of 2023, partially offset by higher interest income as compared to the first quarter of 2023.

Current wording

Other (expense) income, net, decreased by $16.2 million and $19.1 million in the second quarter of 2024 and in the first six months of 2024, respectively, as compared to the same periods in 2023. The decrease for both periods is primarily due to the gain on fair market value adjustment of our investment in BVS in the second quarter and first six months of 2023 that did not recur in the same periods of 2024 due to our acquisition of BVS in the third quarter of 2023, as well as the sale of an investment in 2023 that did not recur in 2024.

Previous wording

Our effective income tax rate was 24.3% for the three months ended March 31, 2024, compared to 25.4% for the three months ended March 31, 2023. Our effective tax rate was lower for the first three months of 2024 as compared to the same periods in 2023 due to more favorable discrete benefits, none of which were individually material, as compared to the prior year, which were partially offset by an increase in the foreign rate differential.

Current wording

Our effective income tax rate was 26.4% for the three months ended June 30, 2024, compared to 27.4% for the three months ended June 30, 2023. Our effective income tax rate was 25.5% for the six months ended June 30, 2024, compared to 26.6% for the six months ended June 30, 2023. Our effective tax rate was lower for the three and six months ended June 30, 2024 as compared to the same periods in 2023 due to more favorable discrete benefits in the current year primarily due to the expiration of the statute of limitations related to uncertain tax positions.

Previous wording

Consolidated net income increased by $12.6 million for the first quarter of 2024, compared to the same period in 2023. The increase for the first quarter of 2024 was due to higher levels of operating income from increased revenue, partially offset by increased operating expenses, higher income tax expense, higher interest expense, and lower levels of other income, net.

Current wording

Consolidated net income increased by $25.8 million and $38.3 million for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in both periods is due to higher levels of operating income from increased revenue, partially offset by increased operating expenses, lower levels of other income, net, and higher income tax expense.

Previous wording

Workforce Solutions revenue increased by 1% in the first quarter of 2024, compared to the same period in 2023. The increase is due to an increase in non-mortgage verticals within Verification Services, partially offset by declines in mortgage revenue and declines in Employer Services due to lower tax credit revenue.

Current wording

Workforce Solutions revenue increased by 5% and increased by 3% in the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in revenue for both periods is due to an increase in non-mortgage verticals within Verification Services, partially offset by declines in mortgage revenue and declines in Employer Services due to lower tax credit revenue.

Previous wording

Verification Services. Revenue increased by 5% for the first quarter of 2024, compared to the same period in 2023. The increase in revenue is primarily due to growth in the government vertical, partially offset by declines in the mortgage vertical.

Current wording

Revenue increased by 9% and increased 7% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in revenue for both periods is primarily due to growth in the government and talent verticals, partially offset by declines in the mortgage vertical.

Previous wording

Employer Services. Revenue decreased by 10% in the first quarter of 2024, compared to the same period in 2023. The decrease for the first quarter of 2024 is primarily due to lower Employee Retention Credit ("ERC") revenue. The ERC revenue decrease is driven by the wind down of the program, accelerated by the IRS pausing new claims processing in the third quarter of 2023.

Current wording

revenue. The ERC revenue decrease is driven by the wind down of the program, accelerated by the IRS pausing new claims processing in the third quarter of 2023.

Previous wording

Workforce Solutions Operating Margin. Operating margin increased to 42.3% for the first quarter of 2024 from 41.7% for the first quarter of 2023. The increased margin is due to the aforementioned increase in revenue.

Current wording

Operating margin increased to 44.5% for the second quarter of 2024 from 42.0% for the second quarter of 2023, and increased to 43.4% for the first six months of 2024 from 41.8% for the first six months of 2023. The increased margin for both periods is due to the aforementioned increase in revenue.

Previous wording

U.S. Information Solutions revenue increased by 10% for the first quarter of 2024, compared to the same period in 2023. The increase is due to growth in online revenue primarily from growth in mortgage related online services, as well as growth in consumer solutions revenue and Mortgage Solutions. Growth in mortgage related online revenue and Mortgage Solutions was due to both annual pricing actions and increased mortgage prequalification credit inquiry revenue.

Current wording

USIS revenue increased by 7% and 9% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase for both periods is due to growth in mortgage related online services, as well as growth in Mortgage Solutions and consumer solutions revenue. Growth in mortgage related online revenue and Mortgage Solutions was due to both increased product prices and increased mortgage prequalification credit inquiry revenue.

Previous wording

Online Information Solutions. Revenue increased by 12% for the first quarter of 2024, compared to the same period in 2023. The increase is due to higher mortgage revenue due to annual pricing actions and higher mortgage prequalification credit inquiry revenue, as well as continued growth of consumer solutions revenue.

Current wording

Revenue increased by 5% and 8% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase for both periods is driven by higher mortgage revenue due to increased product prices and higher mortgage prequalification credit inquiry revenue, as well as continued growth of consumer solutions revenue.

Previous wording

Mortgage Solutions. Revenue increased by 14% in the first quarter of 2024, compared to the same period in 2023. The increase is due to both annual pricing actions and higher mortgage prequalification credit inquiry revenue.

Current wording

Revenue increased by 33% and 23% in the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in both periods is due to both increased product prices and higher mortgage prequalification credit inquiry revenue.

Previous wording

Financial Marketing Services. Revenue decreased by 1% for the first quarter of 2024, compared to the same period in 2023. The decrease is driven by declines in credit marketing services, as well as risk and data services.

Current wording

Revenue increased by 7% and 3% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase for both periods is driven by growth in credit marketing services.

Previous wording

USIS Operating Margin. USIS operating margin increased to 19.9% for the first quarter of 2024 from 18.6% for the first quarter of 2023. The margin increase is due to the increase in revenue, partially offset by an increase in operating expenses. The increase in operating expenses is primarily due to increased royalty expenses, increased amortization of capitalized internal-use software and system costs from technology transformation capital spending incurred previously and third party cloud usage fees.

Current wording

USIS operating margin decreased to 20.6% for the second quarter of 2024 from 23.1% for the second quarter of 2023 and decreased to 20.3% for the first six months of 2024 from 20.9% for the first six months of 2023. The margin decrease for both periods is due to an increase in operating expenses, partially offset by an increase in revenue. The increase in operating expenses in both periods is primarily due to increased royalty expenses, particularly in the mortgage vertical, increased amortization of capitalized internal-use software and system costs from technology transformation capital spending incurred previously, and third party cloud usage fees.

Previous wording

International revenue increased by 13% in the first quarter of 2024, compared to the same period in 2023. On a local currency basis, revenue increased by 20% in the first quarter of 2024, driven by revenue growth in Latin America from the BVS acquisition, as well as growth in Europe and Canada, partially offset by a decline in Australia. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $20.0 million, or 7%, for the first quarter of 2024.

Current wording

International revenue increased by 17% and 15% in the second quarter and the first six months of 2024, respectively, compared to the same periods in 2023. On a local currency basis, revenue increased by 28% and 24% in the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in both periods is driven by Latin America, primarily due to revenue from the BVS acquisition and local currency growth in Argentina, as well as growth in Europe and Canada, partially offset by a decline in Australia. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $32.2 million, or 11%, for the second quarter of 2024, and by $52.3 million, or 9%, for the first six months of 2024.

Previous wording

Latin America. On a local currency basis, revenue increased by 102% for the first quarter of 2024, compared to the same period in 2023. The increase in revenue is primarily due to revenue from the BVS acquisition and local currency growth in Argentina. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $21 million, or 37%, for the first quarter of 2024, primarily within Argentina. Reported revenue increased by 65% for the first quarter of 2024, compared to the same period in 2023.

Current wording

On a local currency basis, revenue increased by 124% and 113% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in both periods is primarily due to revenue from the BVS acquisition, which was $41.2 million and $82.4 millionin the second quarter and first six months of 2024, respectively, as well as from local currency growth in Argentina. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $30.1 million, or 53%, and $50.6 million, or 45%, for the second quarter and first six months of 2024, respectively, primarily in Argentina and Chile. Reported revenue increased by 71% and 68% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023.

Previous wording

Europe. On a local currency basis, revenue increased by 10% for the first quarter of 2024, compared to the same period in 2023. The increase is due to growth in the credit reporting businesses in the U.K., as well as growth in our debt services business in the U.K. Local currency fluctuations against the U.S. dollar positively impacted revenue by $3 million, or 4%, for the first quarter of 2024. Reported revenue increased by 14% for the first quarter of 2024, compared to the same period in 2023.

Current wording

On a local currency basis, revenue increased by 12% and 11% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The increase in both periods is primarily due to growth in the debt services and credit reporting businesses in the U.K. Local currency fluctuations against the U.S. dollar positively impacted revenue by $0.4 million, or less than 1%, and $3.6 million, or 2%, for the second quarter and first six months of 2024, respectively. Reported revenue increased by 12% and 13% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023.

Previous wording

Asia Pacific. On a local currency basis, revenue decreased by 10% for the first quarter of 2024, compared to the same period in 2023. The decrease is primarily driven by Australia due to declines in the commercial and consumer credit reporting businesses. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $3.0 million, or 3%, for the first quarter of 2024. Reported revenue decreased by 13% for the first quarter of 2024, compared to the same period in 2023.

Current wording

On a local currency basis, revenue decreased by 2% and 6% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. The decrease in both periods is primarily driven by Australia due to declines in the commercial and consumer credit reporting businesses. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $1.2 million, or 2%, and $4.2 million, or 2%, for the second quarter and first six months of 2024, respectively. Reported revenue decreased by 4% and 8% for the second quarter and first six months of 2024, respectively, compared to the same periods in 2023.

Previous wording

Canada. On a local currency basis, revenue increased by 4% for the first quarter of 2024, compared to the same period in 2023. The increase is driven by growth in the direct to consumer, commercial and identity and fraud businesses. Local currency fluctuations against the U.S. dollar positively impacted revenue by $0.2 million, or 0.3%, for the first quarter of 2024. Reported revenue increased by 4% for the first quarter of 2024, compared to the same period in 2023.

Current wording

On a local currency basis, revenue increased by 6% and 5% in the second quarter and first six months of 2024, respectively, compared to the same periods in 2023. Revenue growth in both periods is driven by growth in the direct to consumer and the consumer credit reporting businesses. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $1.3 million, or 2%, and $1.1 million or 1%, for the second quarter and first six months of 2024, respectively. Reported revenue increased by 4% for both the second quarter and first six months of 2024 compared to the same periods in 2023.

Previous wording

International Operating Margin. Operating margin decreased to 9.9% for the first quarter of 2024 from 11.5% for the first quarter of 2023. The decrease in margin for the first quarter of 2024 is principally due to higher amortization of purchased intangible assets related to the BVS acquisition.

Current wording

Operating margin was flat at 11.9% for both the second quarter of 2024 and the second quarter of 2023 and decreased to 10.9% for the first six months of 2024 from 11.7% for the first six months of 2023. The margin decrease for the first six months of 2024 compared to the first six months of 2023 is due to higher amortization costs, principally due to higher amortization of purchased intangible assets related to the BVS acquisition.

Previous wording

Funds generated by operating activities, our $1.5 billion five-year unsecured revolving credit facility ("Revolver") and related commercial paper ("CP") program, more fully described below, are our most significant sources of liquidity. At March 31, 2024, we had $201.0 million in cash and cash equivalents, as well as $1,387.1 million available to borrow under our Revolver.

Current wording

Funds generated by operating activities, our $1.5 billion five-year unsecured revolving credit facility ("Revolver") and related commercial paper ("CP") program, more fully described below, are our most significant sources of liquidity. At June 30, 2024, we had $181.9 million in cash and cash equivalents, as well as $1,499.6 million available to borrow under our Revolver.

Previous wording

We believe that our existing cash balance, liquidity available from our CP and Revolver, cash generated from ongoing operations and continued access to public or private debt markets will be sufficient to satisfy cash requirements over the next 12 months and beyond. While there was no significant change in our cash requirements as of March 31, 2024 compared to December 31, 2023, we have utilized existing CP and Revolver capacity, together with cash from operating activities, to meet our current obligations.

Current wording

We believe that our existing cash balance, liquidity available from our CP and Revolver, cash generated from ongoing operations and continued access to public or private debt markets will be sufficient to satisfy cash requirements over the next 12 months and beyond. While there was no significant change in our cash requirements as of June 30, 2024 compared to December 31, 2023, we have utilized cash from operating activities to meet our current obligations.

Previous wording

Fund Transfer Limitations. The ability of certain of our subsidiaries and associated companies to transfer funds to the U.S. may be limited, in some cases, by certain restrictions imposed by foreign governments. These restrictions do not, individually or in the aggregate, materially limit our ability to service our indebtedness, meet our current obligations or pay dividends. As of March 31, 2024, we held $187.5 million of cash in our foreign subsidiaries.

Current wording

Fund Transfer Limitations. The ability of certain of our subsidiaries and associated companies to transfer funds to the U.S. may be limited, in some cases, by certain restrictions imposed by foreign governments. These restrictions do not, individually or in the aggregate, materially limit our ability to service our indebtedness, meet our current obligations or pay dividends. As of June 30, 2024, we held $157.6 million of cash in our foreign subsidiaries.

Previous wording

Information about our cash flows, by category, is presented in the Consolidated Statements of Cash Flows. The following table summarizes our cash flows for the three months ended March 31, 2024 and 2023:

Current wording

Information about our cash flows, by category, is presented in the Consolidated Statements of Cash Flows. The following table summarizes our cash flows for the six months ended June 30, 2024 and 2023:

Previous wording

Cash provided by operating activities in the three months ended March 31, 2024 increased by $101.8 million compared to the prior year period primarily due to changes in our working capital position and increased net income.

Current wording

Cash provided by operating activities in the six months ended June 30, 2024 increased by $107.2 million compared to the prior year period primarily due to improved net income and changes in our working capital position.

Previous wording

Capital expenditures paid in the first three months of 2024 decreased by $26.4 million from the same period in 2023 due to lower capitalized software costs and lower spending on technology infrastructure as compared to the first quarter of 2023 as we continue to make progress toward completion of our technology transformation.

Current wording

Capital expenditures paid in the first six months of 2024 decreased by $52.7 million from the same period in 2023 due to lower capitalized software costs and lower spending on technology infrastructure as compared to the first six months of 2023 as we continue to make progress toward completion of our technology transformation.

Previous wording

We have access to a $1.5 billion five-year unsecured revolving credit facility (Revolver) and a $700.0 million delayed draw term loan (Term Loan), collectively known as the “Senior Credit Facilities,” both of which mature in August 2026. Borrowings under the Senior Credit Facilities may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions and for other general corporate purposes. The Revolver includes an option to request a maximum of three one-year extensions of the maturity date any time after the first anniversary of the closing date of the Revolver. Availability of the Revolver is reduced by the outstanding principal balance of our CP notes and by any letters of credit issued under the Revolver.

Current wording

We have access to a $1.5 billion five-year unsecured revolving credit facility (Revolver), which matures in August 2027, and a $700.0 million delayed draw term loan ("Term Loan"), which matures in August 2026, collectively known as the “Senior Credit Facilities.” Borrowings under the Senior Credit Facilities may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions and for other general corporate purposes. The Revolver includes an option to request a maximum of three one-year extensions of the maturity date any time after the first anniversary of the closing date of the Revolver. In May 2024, we exercised our first option to extend the maturity date by one year, from August 2026 to August 2027, and amended the Revolver agreement to replace a discontinued reference rate for Canadian Dollar-denominated commitments. Availability of the Revolver is reduced by the outstanding principal balance of our CP notes and by any letters of credit issued under the Revolver.

Previous wording

Our $1.5 billion CP program has been established to allow for borrowing through the private placement of CP with maturities ranging from overnight to 397 days. We may use the proceeds of CP for general corporate purposes. The CP program is supported by our Revolver and the total amount of CP which may be issued is reduced by the amount of any outstanding borrowings under our Revolver and by any letters of credit issued under the facility.

Current wording

Our $1.5 billion CP program has been established to allow for borrowing through the private placement of CP with maturities ranging from overnight to 397 days. We may use the proceeds of CP for general corporate purposes. The CP program is supported by our Revolver and the total amount of CP that may be issued is reduced by the amount of any outstanding borrowings under our Revolver and by any letters of credit issued under the facility.

Previous wording

As of March 31, 2024, there were $0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver, $691.3 million outstanding under the Term Loan and $112.5 million of outstanding CP notes. Availability under the Revolver was $1,387.1 million at March 31, 2024.

Current wording

As of June 30, 2024, there were $0.4 million of letters of credit outstanding, no outstanding borrowings under the Revolver, $686.9 million outstanding under the Term Loan, and no outstanding CP notes. Availability under the Revolver was $1,499.6 million at June 30, 2024.