First Data 2007 Annual Report Download - page 139

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Plan Assets
The Company's pension plan asset allocation at December 31, 2007 and September 30, 2006, and target allocation based on the investment policy are as
follows:
Percentage of Plan Assets
at Measurement Date
Asset Category 2007 2006
Equity securities 61% 62%
Debt securities 38% 37%
Other 1% 1%
Total 100% 100%
Asset Category
Target
allocation
Target
allocation
U.S. plans Foreign plans
Equity securities 30% 70%
Debt securities 68% 30%
Other 0-10% 0%
The following table details plan assets invested in related party securities:
2006
Plan Asset Holdings (b)
Shares
(in thousands)
Fair Market
Value
(in millions)
% of Total
Plan Assets
FDC common stock (a) 4.7 $ 0.2 0.04%
Bank of New York common stock 7.4 $ 0.3 0.05%
(a) The fair market value reflects the pre-spin-off value of FDC common stock.
(b) All related party plan asset investments were terminated in 2007.
The maturities of debt securities at December 31, 2007 range from current to 80 years with a weighted-average maturity of 15 years.
The Company employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term
return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities and plan funded status. The
investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S. and
non-U.S. stocks, as well as growth, value, and small and large capitalizations. Other assets, primarily private equity, are used judiciously to enhance long-term
returns while improving portfolio diversification. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio
reviews, annual liability measurements, and periodic asset and liability studies.
Contributions
Contributions to plan assets in 2008 are expected to be approximately $40 million.
The estimated future benefit payments, which reflect expected future service, are expected to be $19.5 million in 2008, $19.8 million in 2009, $20.8
million in 2010, $22.1 million in 2011, $23.5 million in 2012 and $147.0 million in 2013 through 2017.
The Company does not offer post-retirement health care or other insurance benefits for retired employees.
Note 17: Segment Information
Operating segments are defined by SFAS No. 131, "Disclosures About Segments of an Enterprise and Related Information" ("SFAS 131") as
components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker
("CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance. FDC's CODM is its Chief Executive Officer. FDC
classifies its businesses into four segments: First Data Commercial Services, First Data Financial Institution Services, First Data International and Integrated
Payment Systems.
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