Equifax 2004 Annual Report Download - page 70

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N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
68
Other comprehensive income includes a $2.6 million decrease in the minimum pension liability as of December 31, 2004
and a $3.6 million increase as of December 31, 2003.
Components of Net Periodic Benefi t Cost:
(in millions)
Pension Benefi ts Other Benefi ts
2004
2003 2002
2004
2003 2002
Components of Net Periodic Benefi t Cost
Service cost
$ 7.3
$ 6.0 $ 4.8
$ 0.4
$ 0.6 $ 0.7
Interest cost
31.3
31.0 30.8
1.6
1.7 1.6
Expected return on plan assets
(43.8)
(43.7) (47.3)
(0.9)
(0.5) (0.4)
Amortization of prior service cost
0.5
0.1 –
0.7
(0.1) (0.2)
Recognized actuarial (gain) loss
14.0
4.8 0.2
–
0.5 –
–
–
Total net periodic benefi t cost
$ 9.3
$ (1.8) $(11.5)
$ 1.8
$ 2.2 $ 1.7
Assumptions:
(in millions)
Pension Benefi ts Other Benefi ts
2004
2003
2004
2003
Weighted-Average Assumption to Determine
Benefi t Obligations at the End of the Year
Discount rate
5.92%
6.25%
5.92%
6.25%
Rate of compensation increase
4.34%
4.25%
N/A
N/A
(in millions)
Pension Benefi ts Other Benefi ts
2004
2003 2002
2004
2003 2002
Weighted-Average Assumption to Determine
Net Periodic Benefi t Cost for Years Ending
Discount rate
6.25%
6.75% 7.25%
6.25%
6.75% 7.25%
Expected return on plan assets
8.68%
8.75% 9.50%
8.75%
8.75% 9.50%
Rate of compensation increase
4.25%
4.25% 4.25%
N/A
N/A N/A
The decrease in the liability discount rate was the primary cause for the increase in the pension benefi t obligation for 2004.
The increase in the value of the pension plan assets was primarily related to a 13.2% investment return which was greater
than the 8.75% expected rate of return set at December 31, 2003. The calculation of the net periodic benefi t cost for
the USRIP utilizes a market-related value of assets. The market-related value of assets recognizes the difference between
actual returns and expected returns over fi ve years at a rate of 20% per year.