Western Union 2009 Annual Report Download - page 118

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The following table provides a reconciliation of the changes in the pension plans’ projected benefit
obligations, fair value of assets and the funded status (in millions):
2009 2008
Change in projected benefit obligation
Projected benefit obligation at January 1, 2009 and October 1, 2007 ......... $398.8 $ 426.0
Measurement date adjustment (a) ................................... — 6.1
Interest costs .................................................. 23.6 24.4
Actuarial loss/(gain) ............................................. 21.1 (5.6)
Benefits paid .................................................. (43.4) (54.9)
Employee termination benefits ..................................... — 2.8
Projected benefit obligation at December 31, .......................... $400.1 $ 398.8
Change in plan assets
Fair value of plan assets at January 1, ................................ $291.7 $ 398.4
Actual return on plan assets ....................................... 23.5 (51.8)
Benefits paid .................................................. (43.4) (54.9)
Company contributions........................................... 4.1 —
Fair value of plan assets at December 31, ............................. 275.9 291.7
Funded status of the plan at December 31, ............................ $(124.2) $(107.1)
Accumulated benefit obligation at December 31,........................ $400.1 $ 398.8
(a) Represents the adjustment to retained earnings of $0.1 million for the period from October 1, 2007
through December 31, 2007. This adjustment consists of interest costs of $6.1 million, offset by
$6.2 million which represents the expected return on plan assets less amortization of the actuarial loss.
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 benefit obligation 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”
and amortized to income over the average remaining life expectancy of the plan participants. Included in
“Accumulated other comprehensive loss” at December 31, 2009 is $6.2 million ($3.9 million, net of tax) of
actuarial losses that are expected to be recognized in net periodic pension cost during the year ended
December 31, 2010.
The following table provides the amounts recognized in the Consolidated Balance Sheets (in millions):
2009 2008
December 31,
Accrued benefit liability .......................................... $(124.2) $(107.1)
Accumulated other comprehensive loss (pre-tax) ........................ 169.0 150.3
Net amount recognized........................................... $ 44.8 $ 43.2
104
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)