MoneyGram 2009 Annual Report Download - page 111

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2008
(Amounts in thousands) Level 1 Level 2 Level 3 Total
Equity securities $ — $ 55,202 $ — $ 55,202
Fixed income 12,661 18,790 — 31,451
Real estate — — 4,835 4,835
Other 2,175 1,888 — 4,063
Total financial assets $ 14,836 $ 75,880 $ 4,835 $ 95,551
The Company's pension plan assets include one security that the Company considers to be a Level 3 asset for valuation purposes. This
security is an investment in a real estate joint venture and requires the use of unobservable inputs in its fair value measurement. The fair
value of this asset as of December 31, 2009 and 2008 was $5.7 million and $4.8 million, respectively. The change in fair value of this
asset resulted in an unrealized gain on the fair value of $0.9 million for 2009, with no change in fair value for 2008.
Plan Financial Information — Net periodic benefit expense (income) for the defined benefit pension plan and SERPs and postretirement
benefit plans includes the following components for the years ended December 31:
Pension and SERPs Postretirement Benefits
(Amounts in thousands) 2009 2008 2007 2009 2008 2007
Service cost $ 894 $ 1,069 $ 2,298 $ 572 $ 543 $ 697
Interest cost 12,659 12,678 11,900 837 822 837
Expected return on plan assets (9,403) (10,275) (10,083) — — —
Amortization of prior service cost (credit) 346 414 483 (352) (352) (294)
Recognized net actuarial loss 3,777 2,528 4,226 — — 90
Curtailment (gain) loss (1,535) 658 — (12,804) — —
Net periodic benefit expense (income) $ 6,738 $ 7,072 $ 8,824 $ (11,747) $ 1,013 $ 1,330
On January 1, 2008, the Company adopted a change in measurement date for its defined benefit pension plan and SERPs and the defined
benefit postretirement benefit plans in accordance with applicable accounting guidance. The change in measurement date was adopted
using the transition method of measuring its plan assets and benefit obligations as of January 1, 2008. Net periodic costs of $0.4 million
for the period from the Company's previous measurement date of November 30, 2007 through January 1, 2008 were recognized as a
separate adjustment to "Retained loss," net of tax. Changes in the fair value of the plan assets and benefit obligation for this period were
recognized as an adjustment of $1.5 million to the opening balance of "Accumulated other comprehensive loss" in 2008.
The Company recognized a net $1.5 million curtailment gain in 2009 from the amendment of two SERPs and accumulated participant
terminations. The amendment of the postretirement benefit plan resulted in a curtailment gain of $12.8 million in 2009. During 2008, the
Company recorded a curtailment loss of $0.7 million under the SERPs related to the departure of the Company's former chief executive
officer and another executive officer. The postretirement benefits expense for 2009, 2008 and 2007 was reduced by less than $0.4 million
due to subsidies received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Subsidies to be received
under the Medicare Act in 2010 are not expected to be material. F-35