MoneyGram 2006 Annual Report Download - page 93

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Following are the components recognized in the Consolidated Balance Sheets relating to the Company's pension, SERP and
postretirement plans at December 31:
Pension and SERPs Postretirement Benefits
(Amounts in thousands) 2006 2005 2006 2005
Components recognized in the Consolidated Balance Sheets:
Pension and other postretirement benefits liability $ (82,662) $ (83,739) $ (14,778) $ (13,255)
Intangible asset — 1,890 — —
Deferred tax asset 29,605 25,945 762 —
Accumulated other comprehensive income:
Unrealized losses for pension and postretirement benefits, net of tax 45,856 — 1,285 —
Prior service cost for pension and postretirement benefits, net of tax 2,475 — (1,360) —
Additional minimum liability — 42,331 — —
The projected benefit obligation and accumulated benefit obligation for the pension, SERP and postretirement benefit plans are in excess
of the fair value of plan assets as shown below:
Pension Plan Combined SERPs Postretirement Benefits
(Amounts in thousands) 2006 2005 2006 2005 2006 2005
Projected benefit obligation $ 145,932 $ 143,280 $ 68,481 $ 59,240 $ 14,778 $ 12,390
Accumulated benefit obligation 145,932 143,280 54,464 49,224 — —
Fair value of plan assets 131,751 108,773 — — — —
Estimated future benefit payments for the Company's pension, SERP and postretirement benefit plans are as follows:
2007 2008 2009 2010 2011 2012-16
Pension and SERPs $ 12,586 $ 12,734 $ 13,129 $ 13,253 $ 13,392 $ 73,078
Postretirement benefits 247 275 314 352 390 2,705
There are no required contributions for the pension plan in 2007. The Company will continue to make contributions to the SERP plans
and postretirement benefit plan to the extent benefits are paid. Aggregate benefits paid for the unfunded plans are expected to be
$4.1 million in 2007.
Employee Savings Plan — The Company has an employee savings plan that qualifies under Section 401(k) of the Internal Revenue Code.
Contributions to, and costs of, the 401(k) defined contribution plan totaled $2.8 million, $2.2 million and $1.9 million in 2006, 2005 and
2004, respectively. At the time of the Distribution, MoneyGram's new savings plan assumed all liabilities under the Viad Corp Capital
Accumulation Plan and Viad Corp Employees Stock Ownership Plan (the "Viad Plans") for benefits of the current and former employees
assigned to MoneyGram, and the related trust received a transfer of the corresponding account balances. MoneyGram does not have an
employee stock ownership plan.
Employee Equity Trust — Viad sold treasury stock in 1992 to its employee equity trust to fund certain existing employee compensation
and benefit plans. In connection with the spin-off, Viad transferred 1,632,964 shares of MoneyGram common stock to the MoneyGram
International, Inc. Employee Equity Trust (the "Trust") to be used by MoneyGram to fund the issuance of stock in connection with
employee compensation and benefit plans. The fair market value of the shares held by this Trust is recorded in "Unearned employee
benefits" in the Company's Consolidated Balance Sheets and is reduced as stock is issued from the trust to fund employee benefits. As of
December 31, 2006, 456,393 shares of MoneyGram common stock remained in the Trust.
Deferred Compensation Plans — Viad had a deferred compensation plan for its non-employee directors and a deferred compensation
plan for certain members of management which allowed for the deferral of compensation in the form of stock units or cash. In connection
with the deferred compensation plans, Viad funded certain amounts through a rabbi trust. In connection with the spin-off, the Company
paid a dividend of $7.3 million to Viad, which was used to pay certain
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