First Data 2009 Annual Report Download - page 163

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table summarizes the activity in other comprehensive income, net of tax:
Successor Predecessor
(in millions)
Year ended
December 31,
2009
Year ended
December 31,
2008
Period from
September 25,
2007 through
December 31,
2007
Period from
January 1,
2007 through
September 24,
2007
Total unrecognized gain/(loss) included in other
comprehensive income at the beginning of period . . . $(28.9) $ 1.6 — $(109.8)
Unrecognized gain/(loss) arising during the period .... (73.1) (30.0) $ 1.1 —
Curtailment ................................... 7.7 — — —
Amortization of deferred gains/(losses) to net periodic
benefit expense (a) ........................... 0.9 — — —
Foreign currency translation ...................... — (0.5) 0.5 —
Total unrecognized gain/(loss) included in other
comprehensive income at end of period ........... $(93.4) $(28.9) $ 1.6 $(109.8)
(a) Expected amortization of deferred losses to net periodic benefit expense in 2010 is $2.2 million pretax.
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,
2009
Year ended
December 31,
2008
Period from
September 25,
2007 through
December 31,
2007
Period from
January 1,
2007 through
September 24,
2007
Service costs ....................... $ 6.6 $10.8 $ 2.7 $ 8.0
Interest costs ....................... 37.6 41.1 10.8 27.4
Expected return on plan assets ......... (35.3) (42.4) (11.1) (35.7)
Amortization ....................... 1.3 — — 7.7
Net periodic benefit expense ........... $10.2 $ 9.5 $ 2.4 $ 7.4
Assumptions
The weighted-average rate assumptions used in the measurement of the Company’s benefit obligation are as
follows:
Successor Predecessor
December 31,
2009
December 31,
2008
Period from
September 25,
2007 through
December 31,
2007
Period from
January 1,
2007 through
September 24,
2007
Discount rate ....................... 5.62% 6.52% 5.98% 5.95%
Rate of compensation increase* ........ 4.00% 3.76% 4.09% 4.09%
* 2009 applies to a plan in Greece. 2008 and 2007 apply to plans in the United Kingdom, Germany, Greece
and Austria.
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