Equifax 2015 Annual Report Download - page 33

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the rate used for 2015. The CRIP has a lower expected return due to a higher asset allocation to fixed income securities. Our
weighted-average expected rate of return for both plans for 2016 is 7.12% which is slightly lower than the 2015 expected rate.
Annual differences, if any, between the expected and actual returns on plan assets are included in unrecognized net
actuarial gain or loss, a component of other comprehensive income. In calculating the annual amortization of the unrecognized
net actuarial gain or loss, we use a market-related value of assets that smooths actual investment gains and losses on plan assets
over a period up to five years. The resulting unrecognized net actuarial gain or loss amount is recognized in net periodic
pension expense over the average remaining life expectancy of the participant group since almost all participants are
inactive. The market-related value of our assets was $543.3 million at December 31, 2015. We do not expect our 2016 net
periodic benefit cost, which includes the effect of the market-related value of assets, to be materially different than our 2015
cost. See Note 11 of the Notes to the Consolidated Financial Statements for details on changes in the pension benefit obligation
and the fair value of plan assets.
Effectifactualresultsdifferfromassumptions — We do not believe there is a reasonable likelihood that there will be a
material change in the future estimates or assumptions that are used in our actuarial valuations. Adjusting our weighted-average
expected long-term rate of return (7.12% at December 31, 2015) by 50 basis points would change our estimated pension
expense in 2016 by approximately $2.7 million. Adjusting our weighted-average discount rate (4.86% at December 31, 2015)
by 50 basis points would change our estimated pension expense in 2016 by approximately $0.4 million. However, if actual
results are not consistent with our estimates or assumptions, we may be exposed to changes in pension expense that could be
material.
Purchase Accounting for Acquisitions
We account for acquisitions under Accounting Standards Codification 805, BusinessCombinations, which changed the
application of the acquisition method of accounting in a business combination and also modified the way assets acquired and
liabilities assumed are recognized on a prospective basis. In general, the acquisition method of accounting requires companies
to record assets acquired and liabilities assumed at their respective fair market values at the date of acquisition. We primarily
estimate fair value of identified intangible assets using discounted cash flow analyses based on market participant based inputs.
Any amount of the purchase price paid that is in excess of the estimated fair values of net assets acquired is recorded in the line
item Goodwill in our Consolidated Balance Sheets. Transaction costs, as well as costs to reorganize acquired companies, are
expensed as incurred in our Consolidated Statements of Income.
Judgmentsanduncertainties — We consider accounting for business combinations critical because management's
judgment is used to determine the estimated fair values assigned to assets acquired and liabilities assumed and amortization
periods for intangible assets, which can materially affect the our results of operations.
Effectifactualresultsdifferfromassumptions — Although management believes that the judgments and estimates
discussed herein are reasonable, actual results could differ, and we may be exposed to an impairment charge if we are unable to
recover the value of the recorded net assets.
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