Equifax 2012 Annual Report Download - page 69

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Equifax 2012 Annual Report
Equifax Retirement Savings Plans. Equifax sponsors a tax qualified
defined contribution plan, the Equifax Inc. 401(k) Plan, or the Plan.
We provide a discretionary match of participants’ contributions, up to
four or six percent of employee eligible pay depending on certain
eligibility rules under the Plan. We also provide a discretionary direct
contribution to certain eligible employees, the percentage of which is
based upon an employee’s years of service. Company contributions
for the Plan during the twelve months ended December 31, 2012,
2011 and 2010 were $17.8 million, $15.6 million and $14.6 million,
respectively.
Foreign Retirement Plans. We also maintain defined contribution
plans for certain employees in the U.K., Ireland and Canada. For the
years ended December 31, 2012, 2011 and 2010, our expenses
related to these plans were not material.
Deferred Compensation Plans. We maintain deferred compensa-
tion plans that allow for certain management employees and the
Board of Directors to defer the receipt of compensation (such as sal-
ary, incentive compensation, commissions or vested restricted stock
units) until a later date based on the terms of the plans. The benefits
under our deferred compensation plans are guaranteed by the assets
of a grantor trust which, through our funding, purchased variable life
insurance policies on certain consenting individuals, with this trust as
beneficiary. The purpose of this trust is to ensure the distribution of
benefits accrued by participants of the deferred compensation plans
in case of a change in control, as defined in the trust agreement.
Long-Term Incentive Plan. We have a shareholder-approved Key
Management Incentive Plan (Annual Incentive Plan) for certain key
officers 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 salaries and bonuses on our Consolidated Balance Sheets
was $90.7 million and $66.5 million at December 31, 2012 and 2011,
respectively.
Employee Benefit Trusts. We maintain employee benefit trusts for
the purpose of satisfying obligations under certain benefit plans.
These trusts held 0.6 million shares of Equifax stock with a value, at
cost, of $5.9 million at December 31, 2012 and 2011, as well as
cash, which was not material for both periods presented. The
employee benefits trusts are as follows:
• The Executive Life and Supplemental Retirement Benefit Plan
Grantor Trust is used to ensure that the insurance premiums due
under the Executive Life and Supplemental Retirement Benefit Plan
are paid in case we fail to make scheduled payments following a
change in control, as defined in this trust agreement.
• The Supplemental Retirement Plan Grantor Trust’s assets are
dedicated to ensure the payment of benefits accrued under our
Supplemental Retirement Plan in case of a change in control, as
defined in this trust agreement.
The assets in these plans which are recorded on our Consolidated
Balance Sheets are subject to creditors claims in case of insolvency
of Equifax Inc.
12. SEGMENT INFORMATION
Reportable Segments. We manage our business and report our
financial results through the following five reportable segments, which
are the same as our operating segments:
• U.S. Consumer Information Solutions
• International
• Workforce Solutions
• North America Personal Solutions
• North America Commercial Solutions
The accounting policies of the reportable segments are the same as
those described in our summary of significant accounting policies
(see Note 1). We evaluate the performance of these reportable seg-
ments based on their operating revenues, operating income and
operating margins, excluding any unusual or infrequent items, if any.
Inter-segment sales and transfers are not material for all periods
presented. The measurement criteria for segment profit or loss and
segment assets are substantially the same for each reportable seg-
ment. All transactions between segments are accounted for at cost,
and no timing differences occur between segments.
A summary of segment products and services is as follows:
U.S. Consumer Information Solutions. This segment includes
consumer information services (such as credit information and credit
scoring, credit modeling services, locate services, fraud detection and
prevention services, identity verification services and other consulting
services); mortgage loan origination information, appraisal, title and
closing services; consumer financial marketing services; and identity
management.
International. This segment includes information services products,
which includes consumer and commercial services (such as credit
and financial information, credit scoring and credit modeling services),
credit and other marketing products and services, and products and
services sold directly to consumers.
Workforce Solutions. This segment includes employment, income
and social security number verification services (known as Verification
Services) and employment tax and talent management services
(known as Employer Services).
North America Personal Solutions. This segment includes credit
information, credit monitoring and identity theft protection products
sold directly to consumers via the Internet and in various hard-copy
formats.