Equifax 2007 Annual Report Download - page 80

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
78 EQUIFAX | 2007 ANNUAL REPORT
The following specifi es the asset allocation ranges and actual
allocation as of December 31, 2007 and 2006:
Actual
CRIP Range 2007 2006
Canadian Equities 30%–50% 39.1% 37.7%
U.S. Equities 9%–29% 19.3% 20.4%
International Equities 0%–19% 9.5% 12.0%
Fixed Income 20%–40% 30.0% 29.8%
Money Market 0%–10% 2.1% 0.1%
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 1.7% for 2007 and 14.1%
for 2006.
Equifax Retirement Savings Plans. Equifax sponsored two tax
qualifi ed defi ned contribution plans in 2007, the Equifax Inc. 401(k)
Plan, or Equifax Plan, and the TALX Corporation Savings and
Retirement Plan, or TALX Plan. The Company assumed sponsor-
ship of the TALX Plan upon the acquisition of TALX. The TALX
Plan was subsequently merged into the Equifax Plan.
The Group Plans Administrative Committee governs both plans
and determines the employer matching contributions, within
specified ranges, for the benefit of eligible employees of each
respective plan. The employer matching contributions to the TALX
Plan were invested according to participant direction. The employer
matching contributions to the Equifax Plan are invested in the
Equifax Stock Fund, a unitized stock fund investment option within
the Equifax Plan. Participants may divest of this stock fund into
other available investment options within the Equifax Plan at any
time. Our matching contributions are expensed. Expenses for the
two plans in 2007 were $5.6 million. Expenses for the Equifax Plan
in 2006 and 2005 were $3.7 million and $3.8 million, respectively.
Foreign Retirement Plans. We also maintain defi ned contribution
plans for certain employees in the U.K. and Canada. For the years
ended December 31, 2007, 2006 and 2005, our expenses related
to these plans were not material.
Deferred Compensation Plans. We maintain 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, commissions, and/or stock from the
exercise of stock options or vested shares) until a later date based
on the terms of the plans. The benefi ts under our deferred compensa-
tion 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 benefi ciary. The
purpose of this trust is to ensure the distribution 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 salaries and bonuses on our Consolidated
Balance Sheets was $53.6 million and $34.8 million at December 31,
2007 and 2006, respectively.
10.
SEVERANCE CHARGE
During the fourth quarter of 2006, we approved a plan for certain
organizational changes, effective January 1, 2007. This plan provided
for the realignment of our operations, resulting in the elimination
of approximately 170 positions, with expected payments totaling
$6.4 million, pre-tax, and $4.0 million, net of tax. 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 2006 as payment was
probable and estimable under existing plans. The realignment
activities provided for by this plan were substantially complete at
December 31, 2007.
11.
RELATED PARTY TRANSACTIONS
SUNTRUST BANKS, INC., OR SUNTRUST
We consider SunTrust a related party because L. Phillip Humann,
a member of our Board of Directors, was the Chairman and Chief
Executive Offi cer of SunTrust through January 1, 2007, and has
continued to serve as SunTrust’s Chairman since that date. Larry L.
Prince, a member of our Board of Directors, is also a director of
SunTrust. Our relationships with SunTrust are described more
fully as follows:
• We paid SunTrust $4.2 million, $3.1 million and $3.2 million,
respectively, during the twelve months ended December 31,
2007, 2006 and 2005 for services such as lending, foreign
exchange, debt underwriting, cash management, trust, invest-
ment management, acquisition valuation, and shareholder
services relationships.
• We also provide credit management services to SunTrust, as a
customer, from whom we recognized revenue of $6.0 million,
$4.9 million and $3.9 million, respectively, during the
twelve months ended December 31, 2007, 2006 and 2005.
The corresponding outstanding accounts receivable balances
due from SunTrust at December 31, 2007 and 2006
were immaterial.