Equifax 2011 Annual Report Download - page 63

retirement plan will freeze the Canadian Retirement Income Plan, or
CRIP, a qualified defined benefit pension plan, for employees who do
not meet retirement-eligibility status under the CRIP as of
December 31, 2012 (‘‘Non-Grandfathered’’ participants). Under the
plan amendments, the service credit for Non-Grandfathered
participants will freeze, but these participants will continue to receive
credit for salary increases and vesting service. Additionally, Non-
Grandfathered employees and certain other employees not eligible to
participate in the CRIP (i.e., new hires on or after October 1, 2011)
will be able to participate in an enhanced defined contribution
component of the CRIP.
We assessed the plan amendment’s potential impact to our
Consolidated Financial Statements in accordance with ASC 715 as of
September 14, 2011. Factors considered during our assessment
included the materiality of the CRIP’s assets and liabilities, the CRIP’s
funded status and discussion with the plan’s actuaries regarding the
range of possible fluctuation in valuation inputs from December 31,
2010 to September 14, 2011. Based on our assessment, we
determined that a remeasurement was not necessary as the effect of
the plan amendments was immaterial.
During the twelve months ended December 31, 2011, we made
contributions of $40.0 million to the USRIP and $2.6 million to the
CRIP. During the twelve months ended December 31, 2010, we
made contributions of $50.0 million to the USRIP and $1.6 million to
the CRIP. At December 31, 2011, the USRIP met or exceeded
ERISA’s minimum funding requirements.
The annual report produced by our consulting actuaries specifies the
funding requirements for our plans, based on projected benefits for
plan participants, historical investment results on plan assets, current
discount rates for liabilities, assumptions for future demographic
developments and recent changes in statutory requirements. We may
elect to make additional discretionary contributions to our plans in
excess of minimum funding requirements, subject to statutory
limitations.
Supplemental Retirement Plans. We maintain two supplemental
executive retirement programs for certain key employees. The plans,
which are unfunded, provide supplemental retirement payments,
based on salary and years of service.
Other Benefits. We maintain certain healthcare and life insurance
benefit plans for eligible retired employees. Substantially all of our
U.S. employees may become eligible for the healthcare benefits if
they reach retirement age while working for us and satisfy certain
years of service requirements. The retiree life insurance program cov-
ers employees who retired on or before December 31, 2003. We
accrue the cost of providing healthcare benefits over the active
service period of the employee.
Obligations and Funded Status. A reconciliation of the projected benefit obligations, plan assets and funded status of the plans is as follows:
Pension Benefits Other Benefits
(In millions) 2011 2010 2011 2010
Change in projected benefit obligation
Benefit obligation at January 1, $ 678.0 $ 624.2 $ 33.6 $ 33.5
Service cost 6.4 6.4 0.6 0.5
Interest cost 34.5 34.9 1.6 1.7
Plan participants’ contributions ——1.1 1.1
Amendments —0.6 ——
Actuarial loss (gain) 70.0 50.5 (3.0) 1.2
Foreign currency exchange rate changes (1.2) 1.8 ——
Benefits paid (41.6) (40.4) (4.0) (4.5)
Projected benefit obligation at December 31, 746.1 678.0 29.9 33.5
Change in plan assets
Fair value of plan assets at January 1, 569.9 505.4 18.9 17.3
Actual return on plan assets 9.2 47.5 0.4 1.6
Employer contributions 46.6 55.4 2.9 3.4
Plan participants’ contributions ——1.1 1.1
Foreign currency exchange rate changes (1.1) 2.0 ——
Benefits paid (41.6) (40.4) (4.0) (4.5)
Fair value of plan assets at December 31, 583.0 569.9 19.3 18.9
Funded status of plan $(163.1) $(108.1) $(10.6) $(14.6)
EQUIFAX 2011 ANNUAL REPORT 61