First Data 2009 Annual Report Download - page 161

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 15: Employee Benefit Plans
Defined Contribution Plans
FDC maintains defined contribution savings plans covering virtually all of the Company’s U.S. employees
and defined contribution pension plans for international employees primarily in the United Kingdom. The plans
provide tax-deferred amounts for each participant, consisting of employee elective contributions, Company
matching and discretionary Company contributions.
Prior to the merger, the Company provided non-qualified deferred compensation plans for certain highly
compensated employees. The plans provided tax-deferred contributions and matching of Company contributions
under the defined contribution plans otherwise limited by the IRS or plan limits. These plans were terminated in
October 2007.
The aggregate amounts charged to expense in connection with these plans were $38.3 million in 2009, $35.4
million in 2008, $14.7 million for the successor period from September 25, 2007 through December 31, 2007 and
$39.8 million for the predecessor period from January 1, 2007 through September 24, 2007.
Defined Benefit Plans
The Company has a defined benefit pension plan which is frozen and covers certain full-time employees in
the U.S. The Company also has separate plans covering certain employees located in the United Kingdom,
Greece, Austria and Germany. As of June 30, 2009, the Company eliminated future benefits relating to length of
service, compensation and other factors related to its defined benefit pension plan that covers certain employees
in the United Kingdom. The Company has accounted for the elimination of benefits as a curtailment which
resulted in a re-measurement of the plan assets and benefit obligation. In addition, the Company changed certain
assumptions used in the measurement of its benefit obligation. The re-measurement resulted in a net increase to
the net pension liability and a loss, net of income taxes, recorded to other comprehensive income of
approximately $53 million due most significantly to a change in the discount rate assumption. This loss is
partially offset by a benefit recorded, net of income taxes, to other comprehensive income of approximately $8
million related to the curtailment of the plan. The curtailment will also decrease service cost expense in future
periods.
The Company uses December 31 as the measurement date for its plans.
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