First Data 2008 Annual Report Download - page 173

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
as an asset or a liability in its statement of financial position ("the recognition provision"). In addition, a company is required to measure plan assets and
benefit obligations as of the date of its fiscal year-end statement of financial position ("the measurement date provision"). The measurement date provision
was effective for fiscal years ending after December 15, 2008. As a result of the merger, the Company measured the benefit plan assets and obligations as of
the merger date and allocated purchase price to each plan equal to its funded status. Unrecognized gains and losses recorded to other comprehensive income in
predecessor periods no longer amortize into the Consolidated Statements of Operations as a component of net periodic pension cost for the successor period.
Additionally, for its new basis of accounting, the Company elected December 31 as the measurement date for its plans. As such, the adoption of the
measurement date provisions of SFAS No. 158 had no impact on the Company's financial position or results of operations. In predecessor periods, the
Company used a September 30 measurement date for its plans. As a result of the aforementioned change in measurement date, the Company recorded a
purchase accounting adjustment to goodwill to true up net periodic benefit expense for the predecessor period.
The following table provides a reconciliation of the changes in the plans' projected benefit obligation and fair value of assets for the year ended
December 31, 2008, the successor period from September 25, 2007 through December 31, 2007, and the predecessor period from September 30, 2006 through
September 24, 2007, as well as a statement of the funded status as of the respective period ends.
Successor Predecessor
(in millions)
December 31,
2008
Period from
September 25
through
December 31,
2007
Period from
September 30,
2006 through
September 24,
2007
Change in benefit obligation
Benefit obligation at beginning of period $ 732.3 $ 738.8 $ 708.2
Service costs 10.8 2.7 10.6
Interest costs 41.1 10.8 36.6
Actuarial (gain)/loss (78.0) (3.8) (21.9)
Acquired benefit obligations 3.1 — 4.3
Termination benefits (a) (1.9) — 1.4
Benefits paid (26.9) (7.0) (22.0)
Plan participant contributions 2.1 0.6 2.6
Foreign currency translation (138.5) (9.8) 19.0
Benefit obligation at end of period 544.1 732.3 738.8
Change in plan assets
Fair value of plan assets at the beginning of period 648.8 626.7 546.1
Actual return on plan assets (84.0) 9.1 52.7
Company contributions 60.5 27.5 31.9
Plan participant contributions 2.3 0.6 2.6
Benefits paid (26.0) (6.6) (21.5)
Foreign currency translation (129.0) (8.5) 14.9
Fair value of plan assets at end of period 472.6 648.8 626.7
Funded status of the plans $ (71.5) $ (83.5) $ (112.1)
(a) Related to restructuring activities in Europe.
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