Western Union 2014 Annual Report Download - page 261

2014 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
123
11. Employee Benefit Plans
Defined Contribution Plans
The Western Union Company Incentive Savings Plan (the "401(k)") covers eligible employees on the United States payroll
of the Company. Employees who make voluntary contributions to this plan receive up to a 4% Company matching contribution.
All matching contributions are immediately vested.
The Company administers more than 25 defined contribution plans in various countries globally on behalf of approximately
2,000 employee participants as of December 31, 2014. Such plans have vesting and employer contribution provisions that vary
by country.
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 $17.4 million, $16.9 million and
$15.3 million during the years ended December 31, 2014, 2013 and 2012, respectively.
Defined Benefit Plan
The Company has a frozen defined benefit pension plan (the "Plan") for which it had a recorded unfunded pension obligation
of $74.9 million and $70.4 million as of December 31, 2014 and 2013, respectively, included in "Other liabilities" in the Consolidated
Balance Sheets. The Company made contributions of $13.2 million and $15.7 million to the Plan in the years ended December 31,
2014 and 2013, respectively. The Company will be required to fund approximately $18 million to the Plan in 2015.
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):
2014 2013
Change in projected benefit obligation:
Projected benefit obligation as of January 1, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 366.2 $ 418.8
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.6 12.1
Actuarial loss/(gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.8 (25.4)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37.8)(39.3)
Projected benefit obligation as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 377.8 $ 366.2
Change in plan assets:
Fair value of plan assets as of January 1, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 295.8 $ 316.7
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.7 2.7
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37.8)(39.3)
Company contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2 15.7
Fair value of plan assets as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302.9 295.8
Funded status of the Plan as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (74.9) $ (70.4)
Accumulated benefit obligation as of December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 377.8 $ 366.2