MoneyGram 2008 Annual Report Download - page 44
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Table of Contents
(losses) are allocated based upon the allocation of average investable balances. Our derivatives portfolio is also managed on a
consolidated level; however, each derivative instrument is utilized in a manner that can be identified to a particular segment. Our interest
rate swaps used to hedge variable rate commissions are identified with the official check product in Payment Systems segment, while our
forward foreign exchange contracts are identified with our money transfer product in the Global Funds Transfer segment. Our interest
rate swaps related to variable rate debt are identified to our Corporate activities, with the related income (expense) included in
unallocated interest expense. Other unallocated expenses include pension and benefit obligation expense, director deferred compensation
plan expense and other miscellaneous corporate expenses not allocated to the segments. Table 5 reconciles "Total segment operating
(loss) income" to "(Loss) income from continuing operations before income taxes" as reported in the Consolidated Statements of (Loss)
Income.
Table 5 — Segment Information
YEAR ENDED DECEMBER 31, 2008 2007 2006
(Amounts in thousands)
Operating (loss) income:
Global Funds Transfer $ 95,788 $ (60,410) $ 152,579
Payment Systems (286,763) (920,130) 41,619
Total segment operating (loss) income (190,975) (980,540) 194,198
Interest expense 95,020 11,055 7,928
Debt extinguishment loss 1,499 — —
Valuation loss on embedded derivatives 16,030 — —
Other unallocated expenses 33,667 1,672 9,497
(Loss) income from continuing operations before income taxes $ (337,191) $ (993,267) $ 176,773
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