Equifax 2006 Annual Report Download - page 80

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
78 EQUIFAX 2006 ANNUAL REPORT
The investment goal is to achieve the composite return
calculated based on the above benchmark allocation plus 1%
over successive four-year periods. An additional objective is
to provide a real rate of return of 3.0% when compared with
the Canadian Consumer Price Index, also over successive
four-year periods. The actual investment returns for the
CRIP were 14.1% for 2006 and 11.7% for 2005.
U.S. Employee Retirement Savings Plan. The Group Plans
Administrative Committee determines annual contributions,
within specifi ed ranges, to our U.S. employee retirement sav-
ings plan for the benefi t of eligible employees, in the form of
units of Equifax common stock. Employees may transfer all
or a part of these Equifax common stock investments into
other available investments within the plan, at any time.
Our matching contributions are expensed. Expenses for
this plan were $3.7 million, $3.8 million and $3.2 million
for the twelve months ended December 31, 2006, 2005
and 2004, respectively.
Foreign Retirement Plans. We also maintain defi ned contri-
bution plans for certain employees in the U.K. and Canada.
For the years ended December 31, 2006, 2005 and 2004,
our expenses related to these plans were not material.
Deferred Compensation Plans. We maintain three deferred
compensation plans that allow for certain management
employees and the Board of Directors to defer the receipt of
compensation (such as salary, incentive compensation, com-
missions, and/or stock from the exercise of stock options or
vested shares) until a later date based on the terms of the
plans. The benefits under these deferred compensation
plans are guaranteed by the assets of a grantor trust which,
through our funding, purchased variable life insurance pol-
icies on certain consenting individuals, with this trust as
benefi ciary. The purpose of this trust is to ensure the distri-
bution of benefi ts accrued by participants of the deferred
compensation plans in case of a change in control, as defi ned
in the trust agreement.
Long-Term Incentive Plan. We have a shareholder-
approved Key Management Incentive Plan (Annual Incentive
Plan) for certain key offi cers that provides for annual or long-
term cash awards at the end of various measurement periods,
based on the earnings per share and/or various other criteria
over the measurement period. Our total accrued incentive
compensation for all incentive plans included in accrued sala-
ries and bonuses on our Consolidated Balance Sheets was
$34.8 million and $34.0 million at December 31, 2006 and
2005, respectively.
10.
SALE OF INVESTMENT IN INTERSECTIONS INC.
(“INTERSECTIONS”)
On May 5, 2004, Equifax, through its wholly-owned sub-
sidiary CD Holdings, Inc. (“CD Holdings”), completed the
sale of 3,755,792 shares of common stock it owned in
Intersections Inc., a provider of identity theft protection
and credit management services, in an underwritten public
offering of common stock for net proceeds of $59.4 million.
Immediately prior to the public offering, CD Holdings
converted a $20.0 million senior secured convertible note
issued to it by Intersections in November 2001 into
3,755,792 shares of Intersections common stock, or approx-
imately 26.9% of Intersections’ outstanding common
stock. The book value of our investment in Intersections
was $22.3 million, including accrued interest of $2.3 million.
In 2004, we recorded a gain on the sale of $23.0 million, net
of income taxes of $13.8 million, which is included in other
income, net on the accompanying Consolidated Statement
of Income.
11.
SEVERANCE CHARGE
During the fourth quarter of 2006, we approved a plan for
certain organizational changes, effective January 1, 2007.
This plan provides for the realignment of our operations,
resulting in the elimination of approximately 170 posi-
tions, with expected payments totaling $6.4 million,
pre-tax, and $4.0 million, net of tax, primarily in 2007. In
accordance with SFAS No. 112, “Employer’s Accounting
for Postemployment Benefi ts – An Amendment of FASB
Statements No. 5 and 43,” the severance cost liabilities
were recognized in the fourth quarter of 2006 as payment
was probable and estimable under existing plans.