Equifax 2002 Annual Report Download - page 59

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Long-Term Incentive Plans We have key management long-
term incentive plans for certain key officers that provide for cash
awards at the end of various measurement periods based on the
growth in earnings per share and/or various other criteria over the
measurement period. For certain awards, the employee may elect
to receive some or all of their distribution as an equity interest.
Expense for these plans can vary between years due to revisions
of estimates of future distributions under the plans, which are
based on the likelihood that the performance criteria will be met.
The total expense under these plans was $1.6 million in 2002, and
$4.5 million in 2001, and a credit to expense of $3.1 million in 2000.
9.
EMPLOYEE BENEFITS
In 1998, we adopted SFAS No. 132, “Employers’ Disclosures
about Pensions and Other Postretirement Benefits.” This state-
ment revises employers’ disclosures about pension and other
postretirement benefit plans. It does not change the measurement
or recognition of these plans.
Pension Benefits Pension benefits are provided through U.S.
and Canadian defined benefit pension plans and a supplemental
executive defined benefit pension plan.
U.S. and Canadian Retirement Plans: We have a non-contributory
qualified retirement plan covering most U.S. salaried employees
and maintain a defined benefit plan for most salaried employees
in Canada. Benefits are primarily a function of salary and years
of service.
Supplemental Retirement Plan: We maintain a supplemental
executive retirement program for certain key employees. The plan,
which is unfunded, provides supplemental retirement payments
based on salary and years of service.
Other Benefits We maintain certain health care and life insur-
ance benefit plans for eligible retired employees. Substantially all
of our U.S. employees may become eligible for these benefits if
they reach retirement age while working for us and satisfy certain
years of service requirements. We accrue the cost of providing
these benefits over the active service period of the employee.
55
A reconciliation of the benefit obligations, plan assets, and funded status of the plans are as follows (in millions):
Pension Benefits Other Benefits
Change in benefit obligation 2002 2001 2002 2001
Benefit obligation at beginning of year $442.6 $422.1 $23.1 $22.5
Service cost 4.8 5.8 0.7 0.7
Interest cost 30.8 31.9 1.6 1.6
Actuarial loss 32.7 48.5 4.8 2.0
Plan amendments 0.7 –––
Foreign currency exchange 0.3 (1.5) ––
Curtailments –(1.5) ––
Spin-off of Certegy –(27.3) –(1.8)
Settlements –(0.3) ––
Benefits paid (34.7) (35.1) (2.2) (1.9)
Benefit obligation at end of year $477.2 $442.6 $28.0 $23.1
Pension Benefits Other Benefits
Change in plan assets 2002 2001 2002 2001
Fair value of plan assets at beginning of year $446.3 $549.2 $0.0 $0.2
Actual return on plan assets (55.7) (33.0) (0.5) –
Employer contribution 19.2 12.3 4.0 –
Foreign currency exchange 0.4 (2.1) ––
Spin-off of Certegy –(45.0) ––
Benefits paid (34.7) (35.1) –(0.2)
Fair value of plan assets at end of year $375.5 $446.3 $3.5 $–