First Data 2007 Annual Report Download - page 137

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Successor Predecessor
Period from
September 25
through
December 31, 2007
Period from
September 30,
2006 through
September 24,
2007
September 30,
2006
(in millions)
Change in benefit obligation
Benefit obligation at beginning of period $ 738.8 $ 708.2 $ 610.1
Service costs 2.7 10.6 11.5
Interest costs 10.8 36.6 32.4
Actuarial (gain)/loss (3.8) (21.9) 10.8
Acquired benefit obligations — 4.3 —
Termination benefits (a) — 1.4 3.6
Benefits paid (7.0) (22.0) (24.0)
Plan participant contributions 0.6 2.6 2.8
Foreign currency translation (9.8) 19.0 61.0
Benefit obligation at end of period 732.3 738.8 708.2
Change in plan assets
Fair value of plan assets at the beginning of period 626.7 546.1 451.1
Actual return on plan assets 9.1 52.7 42.9
Company contributions 27.5 31.9 27.4
Plan participant contributions 0.6 2.6 2.8
Benefits paid (6.6) (21.5) (23.5)
Foreign currency translation (8.5) 14.9 45.4
Fair value of plan assets at end of period 648.8 626.7 546.1
Funded status of the plans $ (83.5) $ (112.1) $ (162.1)
(a) Restructuring activities in Europe resulted in an increase in the projected benefit obligation.
The net pension liability of $83.5 million at December 31, 2007 is made up of $1.9 million of non-current assets, $0.7 million of current liabilities and
$84.7 million of non-current liabilities. The projected benefit asset is included in "Other assets" and the liabilities are included in "Accounts payable and other
liabilities" on the Consolidated Balance Sheets.
As of December 31, 2007, the projected benefit obligation was in excess of the fair value of plan assets for all pension plans with the exception of the
U.S. plan. The Company made an additional $20.0 million contribution to the U.S. plan in November 2007 resulting in the fair value of assets exceeding the
projected benefit obligation in the amount of $1.9 million. As of September 30, 2006, the projected benefit obligation was in excess of the fair value of plan
assets for all pension plans.
The accumulated benefit obligation for all defined benefit pension plans was $649.2 million at December 31,2007, $656.7 million at September 24,
2007 and $613.5 million at September 30, 2006.
The following table summarizes the activity in other comprehensive income for the successor period from September 25, 2007 through December 31,
2007 and the predecessor periods from January 1, 2007 through September 24, 2007 and the years ended December 31, 2006 and 2005, net of tax, excluding
discontinued operations:
Successor Predecessor
Period from
September 25
through
December 31,
Period from
January 1
through
September 24, Year Ended December 31,
(in millions) 2007 2007 2006 2005
Total unrecognized gain/(loss) included in other comprehensive income at the beginning of period — $ (109.8) $ (67.5) $ (84.5)
Adjustment for adoption of SFAS 158 — — (46.3) —
Unrecognized gain/(loss) arising during the period $ 1.1 — (0.8) 8.1
Reclassification into earnings from other comprehensive income — — 5.7 7.1
Foreign currency translation 0.5 — (0.9) 1.8
Total unrecognized gain/(loss) included in other comprehensive income at end of period $ 1.6 $ (109.8) $ (109.8) $ (67.5)
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