First Data 2008 Annual Report Download - page 176

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The maturities of debt securities at December 31, 2008 range from current to 89 years with a weighted-average maturity of 11 years.
The Company employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term
return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities and plan funded status. The
investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S. and
non-U.S. stocks, as well as growth, value, and small and large capitalizations. Other assets, primarily private equity, are used judiciously to enhance long-term
returns while improving portfolio diversification. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio
reviews, annual liability measurements, and periodic asset and liability studies.
Contributions
Contributions to plan assets in 2009 are expected to be approximately $34 million.
The estimated future benefit payments, which reflect expected future service, are expected to be $18.8 million in 2009, $19.3 million in 2010, $20.4
million in 2011, $21.6 million in 2012, $23.1 million in 2013 and $144.3 million in 2014 through 2018.
The Company does not offer post-retirement health care or other insurance benefits for retired employees.
Note 17: Segment Information
Operating segments are defined by SFAS No. 131, "Disclosures About Segments of an Enterprise and Related Information" ("SFAS 131"), as
components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM, or decision-making group, in
deciding how to allocate resources and in assessing performance. FDC's CODM is its Chief Executive Officer. FDC classifies its businesses into five
segments: Merchant Services, Financial Services, International, Prepaid Services and Integrated Payment Systems.
Management and 2008 Segment Reorganization
As discussed in Note 1, the Company started operating under a new segment structure effective January 1, 2008. In connection with this segment
realignment, the Company excluded interest income derived from sources other than settlement asset portfolios and indirect corporate overhead from segment
results. A summary of how the segments were structured in 2008 follows:
Segment Description
Merchant Services Comprised of businesses that provide services which facilitate the merchants' ability to accept credit, debit, stored-value and loyalty
cards. The segment's processing and acquiring services include authorization, transaction capture, settlement, chargeback handling,
and internet-based transaction processing. Merchant services also provide POS solutions and other equipment necessary to capture
merchant transactions. A majority of these services pertain to transactions in which consumer payments to merchants are made
through a card association (such as Visa or MasterCard), a debit network, or another payment network (such as Discover).
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