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62
WESTERN UNION 2007 Annual Report
The following summarizes contractual maturities of state and municipal obligations as of December 31, 2007 (in millions):
Amortized Fair
Cost Value
Due within 1 year $ 32.8 $ 33.0
Due after 1 year through 5 years 35.1 35.6
Due after 5 years through 10 years — —
Due after 10 years 119.4 119.4
$187.3 $188.0
Preferred stock with a fair value of $5.8 million as of December
31, 2007 is not included above because the securities do not
have fi xed maturities. Actual maturities may differ from contractual
maturities because issuers may have the right to call or prepay
the obligations or the Company may have the right to put the
obligation back to the issuer prior to its contractual maturity.
Aggregate unrealized losses on the Company’s investment
securities as of December 31, 2007 and 2006 were $1.1 million
and $0.1 million, respectively. The unrealized losses on such
investments as of December 31, 2007 were deemed to be
temporary as the duration of the loss has been short, and the
Company has the intent and ability to hold these securities
until a recovery.
||
7. Other Assets and Other Liabilities
The following table summarizes the components of other assets and other liabilities (in millions):
December 31, 2007 2006
Other assets:
Equity method investments $211.3 $165.1
Amounts advanced to agents, net of discounts 93.1 112.4
Deferred customer set up costs 41.9 45.5
Prepaid commissions 22.5 37.8
Accounts receivable, net 22.5 24.3
Prepaid expenses 19.8 16.6
Debt issue costs 13.5 14.6
Derivative fi nancial instruments 8.1 0.6
Other 65.3 86.5
Total other assets $498.0 $503.4
Other liabilities:
Deferred revenue $ 74.2 $ 83.3
Derivative fi nancial instruments 37.2 12.8
Pension obligations 27.6 52.9
Other 43.9 51.3
Total other liabilities $182.9 $200.3
Amounts advanced to agents
From time to time, the Company makes advances and loans to
agents. In 2006, the Company signed a six year agreement with
one of its existing agents which included a four year loan of
$140.0 million to the agent. The terms of the loan agreement
require that a percentage of commissions earned by the agent
(61% in 2008 and 64% in 2009) be withheld by us as repayment
of the loan and the agent remains obligated to repay the loan if
commissions earned are not suffi cient. The Company imputes
interest on this below-market rate note receivable, and has
recorded the note net of a discount of $22.5 million and $37.8
million as of December 31, 2007 and 2006, respectively. The
remaining loan receivable balance relating to this agent as of
December 31, 2007 and 2006, net of discount, was $67.5 million
and $82.2 million, respectively. Other advances and loans out-
standing as of December 31, 2007 and 2006 were $25.6 million
and $30.2 million, respectively.