Equifax 2013 Annual Report Download - page 33

61 EQUIFAX 2013 ANNUAL REPORT
The following specifies the asset allocation ranges and actual alloca-
tion as of December 31, 2013 and 2012:
Actual
CRIP Range 2013 2012
Canadian Equities 25% − 50% 35.0% 35.6%
U.S. Equities 0% − 19% 0.0% 0.0%
International Equities 0% − 19% 15.0% 14.1%
Fixed Income 30% − 70% 49.0% 49.9%
Money Market 0% − 10% 1.0% 0.4%
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 credited years of service. Company
contributions for the Plan during the twelve months ended
December 31, 2013, 2012 and 2011 were $21.3 million, $17.8 mil-
lion and $15.6 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, 2013, 2012 and 2011, 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, make investments in
certain mutual funds. 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.
Annual Incentive Plan. We have a shareholder-approved Key
Management Incentive Plan (Annual Incentive Plan), which is a
component of our amended and restated 2008 Omnibus 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, revenue 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 $51.8 million and $70.0 million at
December 31, 2013 and 2012, 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 shares of Equifax stock with a value, at
cost, of $5.9 million at December 31, 2013 and 2012, 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 Retirement Plan Grantor Trust’s assets are
dedicated to ensure the payment of benefits accrued under our
Supplemental Retirement Plan 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 creditor’s claims in case of insolvency
of Equifax Inc.
12. ACCUMULATED OTHER COMPREHENSIVE INCOME
Changes in accumulated other comprehensive income by
component, after tax, for the twelve months ended December 31,
2013, are as follows:
(In millions)
Foreign
currency
Pension and
other pos-
tretirement
benefit
plans
Cash flow
hedging
transactions Total
Balance, December 31,
2012 $ (83.6) $(276.4) $(2.0) $(362.0)
Other comprehensive
income before
reclassifications (24.9) 61.1 0.1 36.3
Amounts reclassified from
accumulated other
comprehensive income — 13.1 — 13.1
Net current-period other
comprehensive income (24.9) 74.2 0.1 49.4
Balance, December 31,
2013 $(108.5) $(202.2) $(1.9) $(312.6)
Reclassifications out of accumulated other comprehensive income for
the twelve months ended December 31, 2013, are as follows:
Details about accumulated other
comprehensive income components
Amount reclassified
from accumulated
other comprehensive
income
(1)
Affected line item in
the statement where
net income is
presented
(in millions)
Amortization of pension and other
postretirement plan items:
Prior service cost $ (0.8)
(2)
Recognized actuarial loss (20.2)
(2)
(21.0) Total before tax
7.9 Tax benefit
$(13.1) Net of tax
(1) Amounts in parentheses indicate expense recognized in the
Consolidated Statements of Income.
(2) These accumulated other comprehensive income components
are included in the computation of net periodic pension cost
(See Note 11 Benefit Plans for additional details).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
62 EQUIFAX 2013 ANNUAL REPORT
Changes in accumulated other comprehensive income related to
noncontrolling interests were not material as of December 31, 2013.
13. RESTRUCTURING CHARGES
In the fourth quarter of 2013, we recorded a restructuring charge to
realign internal resources of $9.3 million ($5.9 million, net of tax) in
selling, general and administrative expenses on our Consolidated
Statements of Income primarily related to headcount reductions of
approximately 160 positions. This charge resulted from our continu-
ing 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, 2013 and all payments are expected to
be substantially completed by the end of 2014. Restructuring
charges are recorded in general corporate expense.
14. 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
• International
• Workforce Solutions
• North America Personal Solutions
• North America Commercial Solutions
The accounting policies of the reportable segments are the same as
those described in our summary of significant accounting policies
(see Note 1). We evaluate the performance of these reportable seg-
ments based on their operating revenues, operating income and
operating margins, excluding any unusual or infrequent items, if any.
Inter-segment sales and transfers are not material for all periods
presented. The measurement criteria for segment profit or loss and
segment assets are substantially the same for each reportable seg-
ment. All transactions between segments are accounted for at cost,
and no timing differences occur between segments.
A summary of segment products and services is as follows:
U.S. Consumer Information Solutions. This segment includes
consumer information services (such as credit information and credit
scoring, credit modeling services, locate services, fraud detection and
prevention services, identity verification services and other consulting
services); mortgage loan origination information, appraisal, title and
closing services; consumer financial marketing services; and identity
management.
International. This segment includes information services products,
which includes consumer and commercial services (such as credit
and financial information, credit scoring and credit modeling services),
credit and other marketing products and services, and products and
services sold directly to consumers.
Workforce Solutions. This segment includes employment, income
and social security number verification services (known as Verification
Services) and employment tax and talent management services
(known as Employer Services).
North America Personal Solutions. This segment includes credit
information, credit monitoring and identity theft protection products
sold directly to consumers via the Internet and in various hard-copy
formats.
North America Commercial Solutions. This segment includes com-
mercial products and services such as business credit and
demographic information, credit scores and portfolio analytics (deci-
sioning tools), which are derived from our databases of business
credit, financial and demographic information.
Segment information for the twelve months ended December 31,
2013, 2012 and 2011 and as of December 31, 2013 and 2012 is as
follows:
Twelve Months Ended
December 31,
(in millions) 2013 2012 2011
Operating revenue:
U.S. Consumer Information Solutions $1,013.4 $ 869.3 $ 765.0
International 513.5 486.2 492.9
Workforce Solutions 474.1 442.1 382.1
North America Personal Solutions 207.4 185.5 163.9
North America Commercial Solutions 95.5 89.9 89.3
Total operating revenue $2,303.9 $2,073.0 $1,893.2