MoneyGram 2010 Annual Report Download - page 121

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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) 2010 2009 2008 2010 2009 2008
Service cost $ — $ 894 $ 1,069 $ — $ 572 $ 543
Interest cost 11,876 12,659 12,678 253 837 822
Expected return on plan assets (8,664) (9,403) (10,275) — — —
Amortization of prior service cost (credit) 84 346 414 — (352) (352)
Recognized net actuarial loss 4,782 3,777 2,528 15 — —
Curtailment (gain) loss — (1,535) 658 — (12,804) —
Net periodic expense (benefit) $ 8,078 $ 6,738 $ 7,072 $ 268 $ (11,747) $ 1,013
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 2010, 2009 and 2008 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 2011 are not expected to be material.
Amounts recognized in other comprehensive income (loss) and net periodic benefit expense as of December 31 are as follows:
2010
Pension and Postretirement
(Amounts in thousands) SERPs Benefits
Net actuarial loss $ 10,150 $ 1,100
Prior service credit — (4,153)
Amortization of net actuarial loss (4,782) (15)
Amortization of prior service cost (84) —
Total recognized in other comprehensive income (loss) $ 5,284 $ (3,068)
Total recognized in net periodic expense $ 8,078 $ 268
Total recognized in net periodic expense and other comprehensive income (loss) $ 13,362 $ (2,800)
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