Equifax 2015 Annual Report Download - page 71

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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, 2016:
Pension
Benefits
Other
Benefits
(Inmillions)
Actuarial loss, net of taxes of $5.1 for pension benefits and $0.3 for other benefits $8.5 $0.5
Prior service cost, net of taxes of $0.3 for pension benefits and $(0.4) for other benefits $0.5 $(0.7)
Weighted-Average Assumptions
Weighted-average assumptions used to determine
benefit obligations at December 31,
Pension Benefits Other Benefits
2015 2014 2015 2014
Discount rate 4.86%4.26%4.39%4.05%
Rate of compensation increase 4.71%4.59%N/A N/A
Weighted-average assumptions used to determine
net periodic benefit cost at December 31,
Pension Benefits Other Benefits
2015 2014 2013 2015 2014 2013
Discount rate 4.26%5.07%4.17%4.05%4.49%4.03%
Expected return on plan assets 7.44%7.43%7.43%7.50%7.50%7.50%
Rate of compensation increase 4.71%3.34%3.26%N/A 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 investment advisor. In 2015, our U.S. pension
plan investment losses of 1.1% were below the expected return of 7.5% for the second time in seven years. The expected return
for the USRIP for 2016 is 7.25%, which is a reduction from the rate used in 2015. The CRIP earned 2.9% in 2015 which was
below its expected return of 6.75% for the second time in seven years. The expected return for the CRIP for 2016 is 6.0%,
which is a reduction from the rate used in 2015. 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 2016 for pre-Medicare coverage. The rate was assumed to decrease gradually to an
ultimate rate of 5.0% by 2022. An initial 7.0% annual rate of increase in the per capita cost of covered healthcare benefits was
assumed for 2016 for post-Medicare coverage. For the Canadian plan, an initial 6.5% annual rate of increase in the per capita
cost of covered healthcare benefits was assumed for 2016. The rate was assumed to decrease gradually to an ultimate rate of
5.0% by 2019. Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plan. A
one-percentage point change in assumed healthcare cost trend rates at December 31, 2015 would have had the following
effects:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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