First Data 2011 Annual Report Download - page 111

Registered investment companies. The Company's domestic plan has investments in shares of mutual funds, primarily small
and mid-cap equity funds, that are registered with the Securities and Exchange Commission. Prices of these funds are based on Net
Asset Values ("NAV") calculated by the funds and are publicly reported on national exchanges. The plan measures fair value of these
investments using the NAV provided by the fund managers.
Fixed income securities. The Company's domestic plan has investments in several fixed income securities, primarily corporate
bonds. The bonds were valued under a market approach using observable inputs including reported trades, benchmark yields, broker/
dealer quotes, issuer spreads and other standard inputs.
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, pooled funds, limited partnerships and limited liability corporations. The funds calculate NAV on a periodic basis and are
available only from the fund managers. Private investment funds are redeemable at the NAV.
Private investment funds—non-redeemable. The Company's domestic plan has investments in several partnerships (limited
partnership and limited liability corporations) for which the plan has a limited ability to redeem or transfer its interests; therefore, there
is an illiquid market in which the plan can exit these investments. As a result, the 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 the plans in 2012 are expected to be approximately $32 million.
The estimated future benefit payments, which reflect expected future service, are expected to be as follows:
Year ended December 31,
(in millions) Amount
2012 $ 23.2
2013 24.8
2014 26.4
2015 27.9
2016 31.6
2017-2021 181.6
The Company does not offer post-retirement health care or other insurance benefits for retired employees.
Note 15: Segment Information
Operating segments are defined as components of an enterprise about which separate financial information is available that is
evaluated regularly by a company's chief operating decision maker ("CODM"), or decision-making group, in deciding how to allocate
resources and in assessing performance. First Data's CODM is its Chief Executive Officer. The Company is organized in three
segments: Retail and Alliance Services, Financial Services and International.
The business segment measurements provided to and evaluated by the chief operating decision maker are computed in
accordance with the principles listed below.
• The accounting policies of the operating segments are the same as those described in the summary of significant
accounting policies.
• Segment results exclude divested businesses. The Company sold a merchant acquiring business in Canada as well as a
debit and credit card issuing and acquiring processing business in Austria, both reported within the International segment,
in November 2009 and August 2009, respectively. The International performance measures have been adjusted for 2009
to exclude the results of divested businesses.
• Segment revenue includes equity earnings in affiliates (excluding amortization expense) and intersegment revenue. Retail
and Alliance Services segment revenue does not include equity earnings because it is reported using proportionate
consolidation as described below.
• Segment revenue excludes reimbursable debit network fees, postage and other revenue.
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