First Data 2009 Annual Report Download - page 153

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other Comprehensive Income
The income tax effects allocated to and the cumulative balance of each component of OCI are as follows (in
millions):
Successor
Beginning
Balance
Cumulative
Effect
Adjustment
Net of Tax
Pretax
Gain
(Loss)
Amount
Tax
(Benefit)
Expense
Net-of-
Tax
Amount
Ending
Balance
December 31, 2009
Unrealized gains (losses) on securities ....... $ (11.2) $(27.1) $ 17.2 $ 6.3 $ 10.9 $ (27.4)
Unrealized gains (losses) on hedging
activities ............................ (352.3) — 172.5 62.3 110.2 (242.1)
Foreign currency translation adjustment ...... (542.5) — 209.2 (14.5) 223.7 (318.8)
Pension liability adjustment ............... (28.9) — (101.1) (36.6) (64.5) (93.4)
$(934.9) $(27.1) $ 297.8 $ 17.5 $ 280.3 $(681.7)
December 31, 2008
Unrealized gains (losses) on securities ....... $ — $ — $ (17.7) $ (6.5) $ (11.2) $ (11.2)
Unrealized gains (losses) on hedging
activities ............................ (109.1) — (387.3) (144.1) (243.2) (352.3)
Foreign currency translation adjustment ...... 14.0 — (584.4) (27.9) (556.5) (542.5)
Minimum pension liability adjustment ........... 1.6 — (47.6) (17.1) (30.5) (28.9)
$ (93.5) $ — $(1,037.0) $(195.6) $(841.4) $(934.9)
September 25, 2007 through December 31, 2007
Unrealized gains (losses) on hedging
activities ............................ $ — $ — $ (174.0) $ (64.9) $(109.1) $(109.1)
Foreign currency translation adjustment ...... — — 25.8 11.8 14.0 14.0
Minimum pension liability adjustment ....... — — 2.5 0.9 1.6 1.6
$ — $ — $ (145.7) $ (52.2) $ (93.5) $ (93.5)
Predecessor
Beginning
Balance
Cumulative
Effect
Adjustment
Pretax
Gain
(Loss)
Amount
Tax
(Benefit)
Expense
Net-of-
Tax
Amount
Ending
Balance
January 1, 2007 through September 24, 2007
Unrealized gains (losses) on securities ...... $18.1 $— $(29.0) $(10.8) $ (18.2) $ (0.1)
Unrealized gains (losses) on hedging
activities ............................ (4.4) — 0.9 0.5 0.4 (4.0)
Foreign currency translation adjustment ..... 79.2 — 96.0 (27.1) 123.1 202.3
Minimum pension liability adjustment ...... (63.5) — — — — (63.5)
Adjustment to initially apply new accounting
guidance ............................ (46.3) — — — — (46.3)
$(16.9) $— $ 67.9 $(37.4) $105.3 $ 88.4
The Company recognized a cumulative effect adjustment of $43.3 million pretax ($27.1 million net of tax)
in unrealized losses on securities and a corresponding increase in retained earnings. The cumulative effect
adjustment was equal to the amount of an other-than-temporary-impairment previously recorded in the Statement
of Operations less the three percent credit loss for NextStudent.
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