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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
as well as the current forecast of expected future returns for our Fair Value of Plan Assets. The fair value of the pension assets at
asset classes, which is lower than the prior year. December 31, 2009, is as follows:
Fair Value Measurements at Reporting
The calculation of the net periodic benefit cost for the USRIP and
Date Using:
CRIP utilizes a market-related value of assets. The market-related
Quoted
value of assets recognizes the difference between actual returns
Prices
and expected returns over five years at a rate of 20% per year. in Active Significant
Markets for Other Significant
Healthcare Costs. An initial 8.5% annual rate of increase in the per Fair Value at Identical Observable Unobservable
capita cost of covered healthcare benefits was assumed for 2010. December 31, Assets Inputs Inputs
Description 2009 (Level 1) (Level 2) (Level 3)
The rate was assumed to decrease gradually to an ultimate rate of
5.0% by 2015. Assumed healthcare cost trend rates have a signifi- (In millions)
Large-Cap Equity(1) $ 77.3 $ 77.3 $ — $ —
cant effect on the amounts reported for the healthcare plan. A
one-percentage point change in assumed healthcare cost trend Small and Mid-Cap Equity(1) 22.6 22.6 — —
rates at December 31, 2009 would have had the following effects: International Equity(1) 92.4 92.4 — —
Fixed Income(1) 142.8 142.8 — —
1-Percentage 1-Percentage Private Equity(2) 25.6 — — 25.6
(In millions) Point Increase Point Decrease Hedge Funds(3) 65.0 — — 65.0
Real Assets(1)(4) 27.6 23.9 — 3.7
Effect on total service and
Cash and Cash
interest cost components $ 0.2 $ (0.2) Equivalents(1) 52.1 52.1 — —
Effect on accumulated
Total $ 505.4 $ 411.1 $ — $ 94.3
postretirement benefit
(1) Fair value is based on observable market prices for the assets.
obligation $ 3.1 $ (2.7)
(2) Private equity investments are initially valued at cost. Fund managers peri-
odically review the valuations utilizing subsequent company-specific transac-
We estimate that the future benefits payable for our retirement and tions or deterioration in the company’s financial performance to determine if
postretirement plans are as follows at December 31, 2009: fair value adjustments are necessary. Private equity investments are typically
viewed as long term, less liquid investments with return of capital coming
U.S. Defined Non-U.S. Defined Other via cash distributions from the sale of underlying fund assets. The Plan
Years ending December 31, Benefit Plans Benefit Plans Benefit Plans intends to hold these investments through each fund’s normal life cycle and
wind down period.
(In millions)
2010 $ 39.2 $ 2.4 $ 3.2
2011 $ 39.7 $ 2.4 $ 3.3
2012 $ 40.0 $ 2.5 $ 3.2
2013 $ 40.1 $ 2.5 $ 3.0
2014 $ 40.1 $ 2.5 $ 3.0
Next five fiscal years to
December 31, 2019 $ 201.7 $ 14.1 $ 12.8
68 EQUIFAX 2009 ANNUAL REPORT
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