First Data 2008 Annual Report Download - page 174

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The net pension liability of $71.5 million at December 31, 2008 is made up of non-current liabilities. The net pension liability of $83.5 million at
December 31, 2007 was made up of $1.9 million of non-current assets and $85.4 million of non-current liabilities. The projected benefit asset was included in
"Other long-term assets" and the liabilities were included in "Other long-term liabilities" on the Consolidated Balance Sheets.
As of December 31, 2008, the projected benefit obligation was in excess of the fair value of plan assets for all pension plans. As of December 31, 2007,
the projected benefit obligation was in excess of the fair value of plan assets for all pension plans with the exception of the U.S. plan. The Company made an
additional $20.0 million contribution to the U.S. plan in November 2007 resulting in the fair value of assets exceeding the projected benefit obligation in the
amount of $1.9 million as of December 31, 2007.
The accumulated benefit obligation for all defined benefit pension plans was $495.2 million at December 31, 2008, $649.2 million at December 31,
2007 and $656.7 million at September 24, 2007.
The following table summarizes the activity in other comprehensive income for the year ended December 31 2008, the successor period from
September 25, 2007 through December 31, 2007, the predecessor period from January 1, 2007 through September 24, 2007 and the year ended December 31,
2006, net of tax, excluding discontinued operations:
Successor Predecessor
(in millions)
Year ended
December 31,
2008
Period from
September 25
through
December 31,
2007
Period from
January 1
through
September 24,
2007
Year ended
December 31,
2006
Total unrecognized gain/(loss) included in other comprehensive income at the beginning of period $ 1.6 — $ (109.8) $ (67.5)
Adjustment for adoption of SFAS 158 — — — (46.3)
Unrecognized gain/(loss) arising during the period (30.0) $ 1.1 — (0.8)
Reclassification into earnings from other comprehensive income — — — 5.7
Foreign currency translation (0.5) 0.5 — (0.9)
Total unrecognized gain/(loss) included in other comprehensive income at end of period $ (28.9) $ 1.6 $ (109.8) $ (109.8)
Amounts recorded in other comprehensive income represent unrecognized net actuarial gains and losses. The Company does not have prior year service
costs or credits or net transition assets or obligations.
The following table provides the components of net periodic benefit cost for the plans:
Successor Predecessor
(in millions)
Year ended
December 31,
2008
Period from
September 25
through
December 31,
2007
Period from
January 1
through
September 24,
2007
Year ended
December 31,
2006
Service costs $ 10.8 $ 2.7 $ 8.0 $ 11.5
Interest costs 41.1 10.8 27.4 32.4
Expected return on plan assets (42.4) (11.1) (35.7) (33.4)
Amortization — — 7.7 9.1
Net periodic benefit expense $ 9.5 $ 2.4 $ 7.4 $ 19.6
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