MoneyGram 2008 Annual Report Download - page 124

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Deferred Financing Costs — In connection with the waivers obtained on the Senior Facility and the 364-Day Facility during the first
quarter of 2008, the Company capitalized transaction costs of $1.5 million. The Company also capitalized $19.6 million and
$33.4 million of transaction costs for the amendment and restatement of the Senior Facility and the issuance of the Notes, respectively.
These costs were capitalized in "Other assets" in the Consolidated Balance Sheets and are being amortized over the life of the related debt
using the effective interest method. Amortization of deferred financing costs recorded in "Interest expense" in the Consolidated
Statements of (Loss) Income for the years ended December 30, 2008, 2007 and 2006 were $5.5 million, $0.2 million and $0.2 million,
respectively. In accordance with EITF Issue No. 96-19, Debtor's Accounting for a Modification or Exchange of Debt Instruments , the
Company has accounted for the amendments to the Senior Facility as a debt extinguishment. As a result, the Company recognized a
$1.5 million debt extinguishment loss in the Consolidated Statements of (Loss) Income during the first quarter of 2008 which reduced
deferred financing costs. In addition, the Company expensed $0.4 million of unamortized deferred financing costs in connection with the
termination of the 364-Day Facility in the first quarter of 2008.
Interest Paid in Cash — The Company paid $84.0 million, $11.6 million and $8.5 million in 2008, 2007 and 2006, respectively.
Maturities — Maturities of long-term debt for each of the five years succeeding December 31, 2008 are as follows:
(Amounts in thousands)
2009 $ 2,500
2010 2,500
2011 2,500
2012 2,500
2013 483,125
Debt Swaps — In September 2005, the Company entered into two interest rate swap agreements with a total notional amount of
$150.0 million to hedge our variable rate debt. These swap agreements were designated as cash flow hedges. At December 31, 2007, the
interest rate debt swaps had an average fixed pay rate of 4.3 percent and an average variable receive rate of 4.5 percent. In the first half of
2008, the Company terminated these agreements. See Note 7 — Derivative Financial Instruments for further information regarding the
Company's interest rate swaps.
Note 11 — Pensions and Other Benefits
Pension Benefits — In connection with the spin-off, the Company assumed sponsorship of approximately 92 percent of the benefit
obligation for the Viad Corp Retirement Income Plan (the "Pension Plan") and all of the related assets. The Pension Plan is a frozen non-
contributory defined benefit pension plan under which no new service or compensation credits are accrued by the plan participants. Cash
accumulation accounts continue to be credited with interest credits until participants withdraw their money from the Pension Plan. It is
our policy to fund the minimum required contribution for the year.
Supplemental Executive Retirement Plans (SERPs) — In connection with the spin-off, the Company assumed responsibility for
approximately 87 percent of the benefit obligation for the Viad SERP. In addition, the Company is a sponsor of the MoneyGram
International, Inc. SERP. The SERPs are frozen, unfunded non-qualified defined benefit pension plans which provide postretirement
income to their participants. It is our policy to fund the SERPs as benefits are paid.
Postretirement Benefits Other Than Pensions — The Company has unfunded defined benefit postretirement plans that provide medical
and life insurance for eligible employees, retirees and dependents. The related postretirement benefit liabilities are recognized over the
period that services are provided by the employees. The Company's
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