First Data 2012 Annual Report Download - page 100

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table presents the aggregate amounts charged to expense in connection with these plans:
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 primarily in the United Kingdom, Germany, Greece and Austria.
In December 2011, the Company received judicial confirmation that a change in U.K. law restricted the Company’ s ability to
eliminate the effects of future compensation increases on the plan’ s benefits associated with a curtailment recorded in 2009. As a
result, benefits related to future compensation increases were reinstated but the plan remained frozen to benefit accruals related to
length of service and all other factors. The Company recorded a loss of approximately $7 million, net of income taxes, in other
comprehensive income in 2011. In December 2012, the Company initiated actions to freeze the plan benefits related to future salary
increases subject to participant approval. The Company expects to record a curtailment gain in other comprehensive income in 2013.
The Company uses December 31 as the measurement date for its plans.
The following table provides a reconciliation of the changes in the plans’ projected benefit obligations and fair value of assets
for the years ended December 31, 2012 and 2011, as well as a statement of the funded status as of the respective period ends.
(a) Related to restructuring activities in Europe.
100
Year ended December 31,
(in millions) Amount
2012 $45.2
2011 42.7
2010 41.1
As of December 31,
(in millions) 2012 2011
Change in benefit obligation
Benefit obligation at beginning of perio
d
$ 798.5 $725.9
Service costs 5.0 6.1
Interest costs 37.7 39.8
U.K. plan benefit reinstatemen
t
—
10.9
Actuarial (gain)/loss 79.0 35.7
Termination benefits (a) 0.1 0.9
Benefits paid (29.8) (27.5)
Foreign currency translation 18.6 6.7
Benefit obligation at end of period 909.1 798.5
Change in plan assets
Fair value of plan assets at the beginning of perio
d
721.1 656.3
Actual return on plan assets 61.0 53.9
Company contributions 31.6 29.9
Benefits paid (26.4)(25.7)
Foreign currency translation 18.5 6.7
Fair value of plan assets at end of period 805.8 721.1
Funded status of the plans $ (103.3) $(77.4)