Equifax 2013 Annual Report Download - page 31

57 EQUIFAX 2013 ANNUAL REPORT
The following table represents the net amounts recognized, or the funded status of our pension and other postretirement benefit plans, in our
Consolidated Balance Sheets at December 31, 2013 and 2012:
Pension Benefits Other Benefits
(In millions) 2013 2012 2013 2012
Amounts recognized in the statements of financial position consist of:
Noncurrent assets $— $— $ 5.1 $—
Current liabilities (3.9) (3.7) (0.2) —
Long-term liabilities (64.8) (165.1) (2.9) (5.9)
Net amount recognized $(68.7) $(168.8) $ 2.0 $(5.9)
Included in accumulated other comprehensive loss at December 31, 2013 and 2012, were the following amounts that have not yet been
recognized in net periodic pension cost:
Pension Benefits Other Benefits
(In millions) 2013 2012 2013 2012
Prior service cost, net of accumulated taxes of $3.1 and $3.5 in 2013 and 2012,
respectively, for pension benefits and $(2.6) and $(0.3) in 2013 and 2012,
respectively, for other benefits $ 5.1 $ 6.0 $(4.3) $(0.4)
Net actuarial loss, net of accumulated taxes of $112.0 and $151.5 in 2013 and
2012, respectively, for pension benefits and $2.8 and $4.6 in 2013 and 2012,
respectively, for other benefits 196.7 262.9 4.7 7.9
Accumulated other comprehensive loss $201.8 $268.9 $ 0.4 $ 7.5
The following shows amounts recognized in other comprehensive income (loss) during the twelve months ended December 31, 2013 and
2012:
Changes in plan assets and benefit obligations recognized in other comprehensive income:
Pension Benefits Other Benefits
(In millions) 2013 2012 2013 2012
Amounts arising during the period:
Net actuarial loss (gain), net of taxes of $(32.6) and $21.8 in 2013 and 2012,
respectively, for pension benefits and $0.1 and $(0.8) in 2013 and 2012,
respectively, for other benefits $(54.9) $ 36.2 $ 0.1 $(1.8)
Foreign currency exchange rate (gain) loss, net of taxes of $(0.2) and $0.0 in 2013
and 2012, respectively, for pension benefits (0.3) 0.1 ——
Prior service (credit) cost, net of taxes of $(0.3) and $2.8 in 2013 and 2012,
respectively, for pension benefits and $(3.1) in 2013 for other benefits (0.6) 4.7 (5.4) —
Amounts recognized in net periodic benefit cost during the period:
Recognized actuarial loss, net of taxes of $(6.4) and $(5.9) in 2013 and 2012,
respectively, for pension benefits and $(1.2) and $(0.4) in 2013 and 2012,
respectively, for other benefits (10.6) (10.1) (2.0) (0.7)
Amortization of prior service cost, net of taxes of $(0.5) and $(0.3) in 2013 and
2012, respectively, for pension benefits and $0.2 and $0.1 in 2013 and 2012,
respectively, for other benefits (0.8) (0.5) 0.3 0.1
Curtailments, net of taxes of $(10.6) in 2012 for pension benefits — (18.4) ——
Settlements, net of taxes of $(19.5) in 2012 —(33.5) ——
Total recognized in other comprehensive income $(67.2) $(21.5) $(7.0) $(2.4)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
58 EQUIFAX 2013 ANNUAL REPORT
Components of Net Periodic Benefit Cost.
Pension Benefits Other Benefits
(In millions) 2013 2012 2011 2013 2012 2011
Service cost $ 5.4 $ 6.5 $ 6.4 $ 0.5 $ 0.5 $ 0.6
Interest cost 28.9 33.4 34.5 1.1 1.2 1.6
Expected return on plan assets (39.0) (46.6) (46.6) (1.6) (1.6) (1.7)
Amortization of prior service cost 1.3 0.8 0.8 (0.5) (0.2) (0.2)
Recognized actuarial loss 17.0 16.0 12.0 3.2 1.1 1.3
Net periodic benefit cost 13.6 10.1 7.1 2.7 1.0 1.6
Curtailments —(0.2) — ———
Settlements —38.9 — ———
Total net periodic benefit cost $ 13.6 $ 48.8 $ 7.1 $ 2.7 $ 1.0 $ 1.6
The following represents the amount of prior service cost and actuarial loss included in accumulated other comprehensive loss that is
expected to be recognized in net periodic benefit cost during the twelve months ending December 31, 2014:
(In millions) Pension Benefits Other Benefits
Actuarial loss, net of taxes of $(4.8) for pension benefits and $(0.2) for other benefits $8.2 $ 0.4
Prior service cost, net of taxes of $(0.3) for pension benefits and $0.4 for other benefits $0.5 $(0.8)
Weighted-Average Assumptions.
Pension Benefits Other Benefits
Weighted-average assumptions used to determine benefit obligations at
December 31, 2013 2012 2013 2012
Discount rate 5.07% 4.17% 4.49% 4.03%
Rate of compensation increase 3.26% 3.56% N/A N/A
Pension Benefits Other Benefits
Weighted-average assumptions used to determine
net periodic benefit cost at December 31, 2013 2012 2011 2013 2012 2011
Discount rate 4.17% 4.60% 5.24% 4.03% 4.29% 4.90%
Expected return on plan assets 7.43% 7.67% 7.73% 7.50% 7.75% 7.75%
Rate of compensation increase 3.26% 4.41% 4.37% 4.23% N/A N/A
Discount Rates. We determine our discount rates primarily based on
high-quality, fixed-income investments and yield-to-maturity analyses
specific to our estimated future benefit payments available as of the
measurement date. Discount rates are reset annually on the
measurement date to reflect current market conditions. We use a
third-party yield curve to develop our discount rates. The yield curve
provides discount rates related to a dedicated high-quality bond
portfolio whose cash flows extend beyond the current period, from
which we choose a rate matched to the expected benefit payments
required for each plan.
Expected Return on Plan Assets. The expected rate of return on plan
assets is based on both our historical returns and forecasted future
investment returns by asset class, as provided by our external invest-
ment advisor. In 2013, our U.S. pension plan investment returns of
11.4% exceeded the expected return of 7.5% for the fourth time in
the last five years. The expected return for the USRIP for 2014
remains at 7.5%, which is consistent with the rate used in 2013. The
CRIP earned 13.5% in 2013 also exceeding its expected return of
6.75% for the fourth time in five years. The CRIP has a lower
expected return due to a higher asset allocation to fixed income
securities.
The calculation of the net periodic benefit cost for the USRIP and
CRIP utilizes a market-related value of assets. The market-related
value of assets recognizes the difference between actual returns and
expected returns over five years at a rate of 20% per year.
Healthcare Costs. For the U.S. plan, an initial 7.0% annual rate of
increase in the per capita cost of covered healthcare benefits was
assumed for 2014 for pre-Medicare coverage. The rate was assumed
to decrease gradually to an ultimate rate of 5.0% by 2020. An initial
7.0% annual rate of increase in the per capita cost of covered health-
care benefits was assumed for 2014 for post-Medicare coverage.