Western Union 2013 Annual Report Download - page 231

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
121
In addition, the Company sponsors a non-qualified deferred compensation plan for a select group of highly compensated
United States employees. The plan provides tax-deferred contributions and the restoration of Company matching contributions
otherwise limited under the 401(k).
The aggregate amount charged to expense in connection with all of the above plans was $16.9 million, $15.3 million and
$12.8 million during the years ended December 31, 2013, 2012 and 2011, respectively.
Defined Benefit Plan
The Company has one frozen defined benefit pension plan (the "Plan") for which it had a recorded unfunded pension obligation
of $70.4 million and $102.1 million as of December 31, 2013 and 2012, respectively, included in "Other liabilities" in the
Consolidated Balance Sheets. The Company made contributions of $15.7 million and $25.0 million to the Plan in the years ended
December 31, 2013 and 2012, respectively, including discretionary contributions of $5 million for the year ended December 31,
2012. The Company will be required to fund approximately $13 million to the Plan in 2014.
The Company recognizes the funded status of the Plan in its Consolidated Balance Sheets with a corresponding adjustment
to "Accumulated other comprehensive loss," net of tax.
The following table provides a reconciliation of the changes in the Plan's projected benefit obligation, fair value of assets and
the funded status (in millions):
2013 2012
Change in projected benefit obligation:
Projected benefit obligation as of January 1, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 418.8 $ 414.4
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 14.7
Actuarial (gain)/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25.4) 30.2
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39.3)(40.5)
Projected benefit obligation as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 366.2 $ 418.8
Change in plan assets:
Fair value of plan assets as of January 1, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 316.7 $ 301.7
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 30.5
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39.3)(40.5)
Company contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.7 25.0
Fair value of plan assets as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295.8 316.7
Funded status of the Plan as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (70.4) $ (102.1)
Accumulated benefit obligation as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 366.2 $ 418.8
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" as of December 31, 2013 is $10.4 million ($6.6 million, net of
tax) of actuarial losses that are expected to be recognized in net periodic benefit cost during the year ended December 31, 2014.