MoneyGram 2008 Annual Report Download - page 72

Table of Contents
significantly different from the expected return used to determine the benefit obligation. In addition, the participants of our plans are
relatively young, providing the plan assets with sufficient time to recover to historical return rates. Changing the expected rate of return
by 50 basis points would have increased/decreased 2008 pension expense by $0.6 million.
Income Taxes — We are subject to income taxes in the United States and various foreign jurisdictions. Income before taxes is adjusted
for various differences between local tax laws and generally accepted accounting principles. Determination of taxable income in any
jurisdiction requires the interpretation of the related tax laws and regulations and the use of estimates and assumptions regarding
significant future events such as the amount, timing and character of deductions and the sources and character of income and tax credits.
Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions or our level of operations or profitability
in each taxing jurisdiction could have an impact on the amount of income taxes that we provide during any given year.
Deferred tax assets and liabilities are recorded based on the difference between the income tax basis of assets and liabilities and their
carrying amounts for financial reporting purposes at the applicable enacted statutory tax rates. Management assesses the likelihood of
whether deferred tax assets will be realized based on the weight of available evidence. To the extent management believes that recovery
is not likely, a valuation allowance is established in the period in which the determination is made. To the extent that a valuation
allowance is established or increased, an expense within the tax provision is included in our Consolidated Statements of (Loss) Income.
On January 1, 2007, we adopted FIN No. 48, Accounting for Uncertainty in Income Taxes, which requires a two-step approach to
recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the
weight of available evidence indicates that it is more likely than not that the position will be sustained upon audit by the tax authority,
including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that
is more than 50 percent likely of being realized upon settlement. Our tax filings for various periods are subject to audit by various tax
authorities. Actual tax amounts may be materially different from amounts accrued based upon the results of audits by the tax authorities.
The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate based on
current information and management's best estimate, as well as any applicable related net interest and penalties.
Prior to our spin-off from Viad, income taxes were determined on a separate return basis as if we had not been eligible to be included in
the consolidated income tax return of Viad and its affiliates. We are considered the divesting entity in the spin-off and treated as the
"accounting successor" to Viad, with the continuing business of Viad is referred to as "New Viad." As part of the spin-off, we entered
into a Tax Sharing Agreement with Viad which provides for, among other things, the allocation between us and New Viad of federal,
state, local and foreign tax liabilities and tax liabilities resulting from the audit or other adjustment to previously filed tax returns.
Although we believe that we have appropriately proportioned such taxes between ourself and Viad, subsequent adjustments may occur
upon filing of amended returns or resolution of audits by various taxing authorities.
See Note 3 — Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements for further information on
key accounting policies.
Recent Accounting Developments
Recent accounting developments are set forth in Note 3 — Summary of Significant Accounting Policies of the Notes to Consolidated
Financial Statements.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K and the documents incorporated by reference herein may contain forward-looking statements with
respect to the financial condition, results of operation, plans, objectives, future performance and business of MoneyGram International,
Inc. and its subsidiaries. Statements preceded by, followed by or that include words such as "may," "will," "expect," "anticipate,"
"continue," "estimate," "project," "believes" or
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