FDC 2017 Annual Report

FI R S T D A T A C O R P O R A TI O N N O T E S T O T H E C O N S O LI D A T E D FI N A N CI A L S T A T E M E N T S ( C o nti n u e d) 1 0 4 N ot e 1 5: E m pl o y e e B e n efit Pl a ns D efi n e d C o nt ri b uti o n Pl a ns T h e C o m p a n y m ai nt ai ns d efi n e d c o ntri b uti o n b e n efit pl a ns c o v eri n g virt u all y all of t h e C o m p a n y’s U. S. e m pl o y e es a n d d efi n e d c o ntri b uti o n p e nsi o n pl a ns f or i nt er n ati o n al e m pl o y e es pri m aril y i n t h e U nit e d Ki n g d o m a n d A ustr ali a. T h e pl a ns pr o vi d e t a x- d ef err e d a m o u nts f or e a c h p arti ci p a nt, c o nsisti n g of e m pl o y e e el e cti v e c o ntri b uti o ns, C o m p a n y m at c hi n g a n d dis cr eti o n ar y C o m p a n y c o ntri b uti o ns. Eff e cti v e J a n u ar y 1, 2 0 1 4, t h e C o m p a n y s us p e n d e d m at c hi n g c o ntri b uti o ns f or all U. S. p arti ci p a nts. As a r es ult, t h e U. S. Pl a n is n o l o n g er a s af e h ar b or pl a n. T h e f oll o wi n g t a bl e pr es e nts t h e a g gr e g at e a m o u nts c h ar g e d t o e x p e ns e i n c o n n e cti o n wit h t h es e pl a ns: Ye a r e n d e d D e c e m b e r 3 1, (i n milli o ns) A m o u nt 2 0 1 7 $ 1 0 2 0 1 6 1 1 2 0 1 5 1 2 D efi n e d B e n efit Pl a ns T h e C o m p a n y h as d efi n e d b e n efit p e nsi o n pl a ns w hi c h ar e fr o z e n a n d c o v ers c ert ai n f ull-ti m e e m pl o y e es i n t h e U nit e d Ki n g d o m a n d t h e U. S. T h e C o m p a n y als o h as s e p ar at e pl a ns c o v eri n g c ert ai n e m pl o y e es l o c at e d pri m aril y i n G er m a n y, Gr e e c e, a n d A ustri a. T h e C o m p a n y c o ntri b ut e d c as h i n t h e a m o u nt of $ 1 9 milli o n, $ 1 9 milli o n, a n d $ 1 2 milli o n t o d efi n e d b e n efit pl a ns f or t h e y e ars e n d e d D e c e m b er 3 1, 2 0 1 7, 2 0 1 6, a n d 2 0 1 5, r es p e cti v el y. T h e C o m p a n y r e c o g ni z es t h e f u n d e d st at us of its d efi n e d b e n efit p e nsi o n pl a ns, m e as ur e d as t h e diff er e n c e b et w e e n t h e f air v al u e of t h e pl a n ass ets a n d t h e pr oj e ct e d b e n efit o bli g ati o n, i n t h e c o ns oli d at e d b al a n c e s h e ets, as f oll o ws: As of D e c e m b e r 3 1, (i n milli o ns) 2 0 1 7 2 0 1 6 U. K. pl a n: Pl a n b e n efit o bli g ati o ns $ ( 6 8 6) $ ( 7 1 3) F air v al u e of pl a n ass ets 8 9 1 8 0 8 N et p e nsi o n ass ets ( a) 2 0 5 9 5 U. S. a n d ot h e r f o r ei g n pl a ns: Pl a n b e n efit o bli g ati o ns ( 2 3 4) ( 2 2 2) F air v al u e of pl a n ass ets 1 6 6 1 3 7 N et p e nsi o n li a biliti es ( b) ( 6 8) ( 8 5) F u n d e d st at us of t h e pl a ns $ 1 3 7 $ 1 0 ( a) P e nsi o n ass ets ar e i n cl u d e d i n “ Ot h er l o n g-t er m ass ets ” of t h e c o ns oli d at e d b al a n c e s h e ets. ( b) P e nsi o n li a biliti es ar e i n cl u d e d i n “ Ot h er l o n g-t er m li a biliti es ” of t h e c o ns oli d at e d b al a n c e s h e ets. T h e a c c u m ul at e d b e n efit o bli g ati o n f or all d efi n e d b e n efit p e nsi o n pl a ns w as $ 9 2 0 milli o n a n d $ 9 3 5 milli o n as of D e c e m b er 3 1, 2 0 1 7 a n d 2 0 1 6, r es p e cti v el y. B as e d o n t h e v al u ati o n t e c h ni q u es d es cri b e d i n n ot e 1 " S u m m ar y of Si g nifi c a nt A c c o u nti n g P oli ci es, " as of D e c e m b er 3 1, 2 0 1 7, Pl a n ass ets ar e c o m pris e d of a p pr o xi m at el y 2 0 % of L e v el 1 s e c uriti es, 8 0 % of L e v el 2 s e c uriti es, a n d a n i m m at eri al a m o u nt of L e v el 3 s e c uriti es w hi c h c o m pris e l ess t h a n 1 % of t ot al pl a n ass ets. T h e Pl a n p ai d b e n efits i n t h e a m o u nt of $ 5 9 milli o n, $ 3 9 milli o n, a n d $ 4 1 milli o n f or t h e p eri o ds e n d e d D e c e m b er 3 1, 2 0 1 7, 2 0 1 6 , a n d 2 0 1 5, r es p e cti v el y. T h e esti m at e d f ut ur e b e n efit p a y m e nts, w hi c h r efl e ct e x p e ct e d f ut ur e s er vi c e, ar e e x p e ct e d t o b e as f ol l o ws: