First Data 2009 Annual Report Download - page 166

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(in millions)
Fair Value Measurement
Using Significant
Unobservable Inputs
(Level 3) Insurance
annuity contracts
Fair Value Measurement
Using Significant
Unobservable Inputs
(Level 3) Private
investment funds
non-redeemable
Beginning balance December 31, 2008 ..................... $4.5 $0.9
Actual return on plan assets .......................... 0.8 (0.4)
Distributions ...................................... — (0.1)
Ending balance December 31, 2009 ........................ $5.3 $0.4
Cash and Cash Equivalents
The Company’s domestic Plan holds cash and cash equivalents of $0.5 million which consists of an
investment in shares of a registered money market fund. The fair value is determined by year end Net Asset
Values (“NAV’s”) publicly reported on national exchanges as of December 31, 2009. The Company’s United
Kingdom Plan holds cash of $8.0 million which consists of demand deposits.
Registered Investment Companies
The Company’s domestic Plan is invested in shares of two mutual funds that are registered with the
Securities and Exchange Commission. Prices of these funds are based on NAV’s calculated by the funds and are
publicly reported on national exchanges. The domestic Plan measures fair value of these investments using the
NAV’s provided by the fund managers.
Private Investment Funds—Redeemable
The Company’s domestic and United Kingdom Plans are invested in shares or units of several private
investment funds, not the underlying assets. Redeemable private investment funds include collective trusts,
comingled funds, limited partnerships, limited liability corporations and group trusts. The funds calculate NAV’s
on a periodic basis and are available only from the fund managers. Private investment funds are redeemable at
the NAV’s.
Private Investment Funds—Non-Redeemable
The Company’s domestic Plan has investments in several partnerships (limited partnership and limited
liability corporations) for which the domestic Plan has no ability to redeem or transfer its interests; therefore,
there is no market in which the domestic Plan can exit these investments. As a result, the domestic Plan measures
fair value of these investments using estimates of fair value which come from partner capital statements provided
by the partnerships.
Insurance Annuity Contracts
The Company’s United Kingdom Plan is invested in several insurance annuity contracts. The value of these
contracts is calculated by estimating future payments and discounting them to present value. As a result, there is
no market for the Plan to exit these investments.
Contributions
Contributions to plan assets in 2010 are expected to be approximately $34 million.
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