Equifax 2011 Annual Report Download - page 69

Equifax Retirement Savings Plans. Equifax sponsors a tax qualified
defined contribution plan, the Equifax Inc. 401(k) Plan, or the Plan.
We provide a discretionary match of participants’ contributions, up to
four or six percent of employee eligible pay depending on certain
eligibility rules under the Plan. We also provide a discretionary direct
contribution to certain eligible employees, the percentage of which is
based upon an employee’s years of service. Company contributions
for the Plan during the twelve months ended December 31, 2011,
2010 and 2009 were $15.6 million, $14.6 million and $13.8 million,
respectively.
Foreign Retirement Plans. We also maintain defined contribution
plans for certain employees in the U.K., Ireland and Canada. For the
years ended December 31, 2011, 2010 and 2009, our expenses
related to these plans were not material.
Deferred Compensation Plans. We maintain deferred compensa-
tion plans that allow for certain management employees and the
Board of Directors to defer the receipt of compensation (such as sal-
ary, incentive compensation, commissions or vested restricted stock
units) until a later date based on the terms of the plans. The benefits
under our deferred compensation 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
beneficiary. The purpose of this trust is to ensure the distribution of
benefits accrued by participants of the deferred compensation plans
in case of a change in control, as defined in the trust agreement.
Long-Term Incentive Plan. We have a shareholder-approved Key
Management Incentive Plan (Annual Incentive Plan) for certain key
officers 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 $66.5 million and $61.9 million at December 31, 2011 and 2010,
respectively.
Employee Benefit Trusts. We maintain employee benefit trusts for
the purpose of satisfying obligations under certain benefit plans.
These trusts held 0.6 million and 2.1 million shares of Equifax stock
with a value, at cost, of $5.9 million and $41.2 million at
December 31, 2011 and 2010, respectively, as well as cash, which
was not material for both periods presented. The employee benefits
trusts are as follows:
• The Executive Life and Supplemental Retirement Benefit Plan
Grantor Trust is used to ensure that the insurance premiums due
under the Executive Life and Supplemental Retirement Benefit Plan
are paid in case we fail to make scheduled payments following a
change in control, as defined in this trust agreement.
• The Supplemental Executive Retirement Plans Grantor Trust’s
assets are dedicated to ensure the payment of benefits accrued
under our Supplemental Executive Retirement Plans in case of a
change in control, as defined in this trust agreement.
The assets in these plans which are recorded on our Consolidated
Balance Sheets are subject to creditors claims in case of insolvency
of Equifax Inc.
12. RESTRUCTURING CHARGES
2009 Restructuring Charges. In the fourth quarter of 2009, we
recorded a $16.4 million restructuring charge ($10.4 million, net of
tax) in selling, general and administrative expenses on our
Consolidated Statements of Income primarily related to headcount
reductions of approximately 400 positions. This charge resulted from
our continuing efforts to align our business to better support our
strategic objectives. Generally, severance benefits for our U.S.
employees are paid through monthly payroll according to the number
of weeks of severance benefit provided to the employee, while our
international employees receive a lump sum severance payment for
their benefit. Payments related to this charge were not material during
the twelve months ended December 31, 2011 and all payments have
been substantially completed as of December 31, 2011.
During the first quarter of 2009, we recorded in selling, general and
administrative expenses in our Consolidated Statements of Income
an $8.4 million restructuring charge ($5.4 million, net of tax) associ-
ated with headcount reductions of approximately 300 positions. This
charge resulted from our efforts to reduce and manage our expenses
and to maintain our financial results in the face of a weak global
economy and reduced revenues. Payments related to this charge
were not material during the twelve months ended December 31,
2011 and all payments have been substantially completed as of
December 31, 2011.
Restructuring charges are recorded in general corporate expense.
Restructuring charges related to discontinued operations were
$4.1 million during 2009.
13. SEGMENT INFORMATION
Reportable Segments. We manage our business and report our
financial results through the following five reportable segments, which
are the same as our operating segments:
• U.S. Consumer Information Solutions
• TALX Workforce Solutions
• International
• North America Personal Solutions
• North America Commercial Solutions
EQUIFAX 2011 ANNUAL REPORT 67