Equifax 2003 Annual Report Download - page 58

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NOTES TO CONSOLIDATED FINANCIAL STATEM ENTS
EQUIFAX. INFORMATION THAT EMPOWERS. 55
The USRIP and the Supplemental Retirement Plan both have accumulated benefit obligations in excess of those plans’ respective
assets as of December 31, 2003. The aggregate projected benefit obligation, accumulated benefit obligation, and fair value of plan assets
(in millions) for these two plans are $483.9, $469.2, and $398.3, respectively, as of December 31, 2003, and $451.2, $436.4, and $344.8,
respectively, as of December 31, 2002.
The increase in minimum liability included in other comprehensive income was $3.6 million as of December 31, 2003 and $179.4 million
as of December 31, 2002.
Components of Net Periodic Benefit Cost:
Pension Benefits Other Benefits
(In millions) 2003 2002 2001 2003 2002 2001
Service cost $5.9 $4.8 $ 5.8 $0.6 $0.7 $0.7
Interest cost 30.8 30.8 31.9 1.7 1.6 1.6
Expected return on plan assets (43.4) (47.3) (47.1) (0.5) (0.4) –
Amortization of initial
unrecognized net (asset) ––0.1 –––
Amortization of prior service cost 0.1 –0.3 (0.1) (0.2) (0.5)
Recognized actuarial loss 4.8 0.2 0.1 0.5 ––
Curtailment gain ––– –––
Settlement gain ––0.3 –––
Net periodic benefit cost (income) $ (1.8) $(11.5) $ (8.6) $2.2 $1.7 $1.8
The net pension income shown above includes income amounts allocated to discontinued operations of $0, $0, and $2.1 million in 2003,
2002, and 2001, respectively.
Assumptions:
The weighted-average assumptions used to determine benefit obligations at December 31:
Pension Benefits Other Benefits
2003 2002 2003 2002
Discount Rate 6.25% 6.75% 6.25% 6.75%
Rate of compensation increase 4.25% 4.25% N/A N/A
The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Pension Benefits Other Benefits
2003 2002 2003 2002
Discount Rate 6.75% 7.25% 6.75% 7.25%
Expected return on plan assets 8.75% 9.50% 8.75% 9.50%
Rate of compensation increase 4.25% 4.25% N/A N/A
The discount rate used to calculate the USRIP funded status was
decreased from 6.75% for year-end 2002 to 6.25% for year-end
2003. The effect of this change was an increase in year-end 2003
benefit obligation (and reduction in funded status) of $24.9 million.
The discount rate used to calculate the USRIP pension income
was decreased from 7.25% for 2002 pension income to 6.75% for
2003. The effect of this change was a decrease in 2003 income of
$3.3 million.