Western Union 2007 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2007 Western Union annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

66
WESTERN UNION 2007 Annual Report
On December 31, 2006, the Company adopted the recogni-
tion and disclosure provisions of SFAS No. 158, which requires
the Company to recognize the funded status of its pension plans
in its Consolidated Balance Sheets as of December 31, 2006 with
a corresponding adjustment to “Accumulated other comprehen-
sive loss,” net of tax. Due to the frozen status of the Company’s
pension plans, the Company’s funded status of its pension plans
was already refl ected in its Consolidated Balance Sheets, and
therefore, no such adjustment was required to “Other liabilities,”
“Deferred tax liability, net” or “Accumulated other comprehensive
loss” on adoption of SFAS No. 158.
The following table provides a reconciliation of the changes in the pension plans’ benefi t obligations and fair value of assets for
the plan years ended September 30, 2007 and 2006, and a statement of the funded status of the plans as of September 30, 2007
and 2006 (in millions):
September 30, 2007 2006
CHANGE IN BENEFIT OBLIGATION
Projected benefi t obligation at October 1, $459.0 $494.1
Interest costs 24.6 24.8
Actuarial gain (12.5) (13.5)
Benefi ts paid (45.1) (46.4)
Projected benefi t obligation at September 30, 426.0 459.0
CHANGE IN PLAN ASSETS
Fair value of plan assets at October 1, 406.1 424.3
Actual return on plan assets 37.4 28.2
Benefi ts paid (45.1) (46.4)
Fair value of plan assets at September 30, 398.4 406.1
Funded status of the plan (27.6) (52.9)
Unrecognized amounts, principally unrecognized actuarial loss 73.1 98.1
Total recognized $ 45.5 $ 45.2
Accumulated benefi t obligation 426.0 459.0
Differences in expected returns on plan assets estimated at the
beginning of the year versus actual returns, and assumptions
used to estimate the beginning of year projected benefi t obliga-
tion versus the end of year obligation (principally discount rate
and mortality assumptions) are, on a combined basis, considered
actuarial gains and losses. Such actuarial gains and losses are
recognized as a component of “Comprehensive income” over
the average remaining life expectancy of the plan participants.
Included in “Accumulated other comprehensive loss” at December
31, 2007 is $2.7 million ($1.7 million, net of tax) of unrecognized
actuarial losses that are expected to be recognized in net periodic
pension cost during the year ended December 31, 2008.
The following table provides the amounts recognized in the Consolidated Balance Sheets (in millions):
December 31, 2007 2006
Accrued benefi t liability $(27.6) $(52.9)
Accumulated other comprehensive loss 73.1 98.1
Net amount recognized $ 45.5 $ 45.2