First Data 2007 Annual Report Download - page 136

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The total fair value of shares vested (measured as of the date of vesting excluding the impact of accelerated vesting) was $9.8 million, $3.9 million and
$8.5 million during the predecessor periods from January 1, 2007 through September 24, 2007 and the twelve months ended December 31, 2006 and 2005,
respectively.
Note 16: Employee Benefit Plans
Defined Contribution Plans
FDC maintains a defined contribution savings plan covering virtually all of the Company's U.S. employees and a Defined Contribution Pension Plan for
employees in the United Kingdom. The plans provide tax-deferred amounts for each participant, consisting of employee elective contributions, Company
matching and discretionary Company contributions.
Prior to the merger, the Company provided non-qualified deferred compensation plans for certain highly compensated employees. The plans provided
tax-deferred contributions and matching of Company contributions under the defined contribution plans otherwise limited by the IRS or plan limits. These
plans were terminated in October 2007.
The aggregate amounts charged to expense in connection with these plans were approximately $14.7 million for the successor period from
September 25, 2007 through December 31, 2007 and for the predecessor were $39.8 million for the period from January 1, 2007 through September 24, 2007,
$50.4 million in 2006, and $53.6 million in 2005.
Defined Benefit Plans
The Company has a defined benefit pension plan which is frozen and covers certain full-time employees in the U.S. Prior to the Western Union spin-
off, the Company-sponsored U.S. plan participated in a master trust along with other defined benefit pension plans the majority of which related to Western
Union. Upon spin-off, Western Union continued to sponsor its pension plans, and the master trust investments associated with these plans were transferred to
a separate Western Union trust. The Company also has separate plans covering certain employees located in the United Kingdom, Greece and Germany. The
United Kingdom Defined Benefit Plan is no longer offered to new employees; however, the Company is required to continue offering benefits to employees
that were participating in the plan as of August 1, 2004. The cost of retirement benefits for eligible employees, measured by length of service, compensation
and other factors, is being funded in accordance with laws and regulations of the respective countries.
In December 2006, the Company adopted the recognition provision of SFAS 158. This statement requires a company to recognize the funded status of a
benefit plan as an asset or a liability in its statement of financial position ("the recognition provision"). In addition, a company is required to measure plan
assets and benefit obligations as of the date of its fiscal year-end statement of financial position ("the measurement date provision"). The measurement date
provision is effective for fiscal years ending after December 15, 2008. As a result of the merger, the Company measured the benefit plan assets and
obligations as of the merger date and allocated purchase price to each plan equal to its funded status. Unrecognized gains and losses recorded to other
comprehensive income in predecessor periods will no longer amortize into the Consolidated Statements of Income as a component of net periodic pension
cost for the successor period. Additionally, for its new basis of accounting, the successor Company elected December 31 as the measurement date for its
plans. As such, the adoption of the measurement date provisions of SFAS No. 158 has no impact on the Company's financial position or results of operations.
In predecessor periods, the Company used a September 30 measurement date for its plans. As a result of the aforementioned change in measurement date, the
Company recorded a purchase accounting adjustment to goodwill to true up net periodic benefit expense for the predecessor period.
The following table provides a reconciliation of the changes in the plans' projected benefit obligation and fair value of assets over the successor period
from September 25, 2007 through December 31, 2007, the predecessor periods from September 30, 2006 through September 24, 2007 and the year ended
September 30, 2006, and a statement of the funded status as of the respective period ends.
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