Western Union 2009 Annual Report Download - page 111

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The following summarizes contractual maturities of investment securities as of December 31, 2009 (in
millions):
Amortized
Cost
Fair
Value
Due within 1 year .................................................... $ 76.5 $ 76.6
Due after 1 year through 5 years ......................................... 597.9 605.9
Due after 5 years through 10 years ....................................... 68.8 70.8
Due after 10 years.................................................... 469.3 469.5
$1,212.5 $1,222.8
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 prior to its contractual
maturity, as with variable rate demand notes. Variable rate demand notes, having a fair value of $22.1 million,
$27.4 million and $452.4 million are included in the “Due after 1 year through 5 years,” “Due after 5 years
through 10 years” and “Due after 10 years” categories, respectively, in the table above.
8. Fair Value Measurements
Fair value, as defined by the relevant accounting standards, represents the exchange price that would be
received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market
for the asset or liability in an orderly transaction between market participants on the measurement date. For
additional information on how Western Union measures fair value, refer to Note 2, “Summary of Significant
Accounting Policies.”
The following table reflects assets and liabilities that were measured and carried at fair value on a
recurring basis as of December 31, 2009 (in millions):
Level 1 Level 2 Level 3
Assets/Liabilities
at Fair Value
Fair Value Measurement Using
Assets:
State and municipal obligations .................... $— $ 696.4 $ — $ 696.4
State and municipal variable rate demand notes ........ — 513.8 — 513.8
Corporate debt securities ......................... — 12.4 — 12.4
Other ....................................... 0.2 — — 0.2
Derivatives ................................... — 109.4 0.5 109.9
Total assets ...................................... $0.2 $1,332.0 $0.5 $1,332.7
Liabilities:
Derivatives ................................... $— $ 80.6 $ — $ 80.6
Total liabilities .................................... $— $ 80.6 $ — $ 80.6
The Level 3 assets above represent an immaterial portion of the derivatives portfolio related to the
Custom House acquisition for which credit judgments are deemed to be a significant input to the
determination of fair value.
No non-recurring fair value adjustments were recorded during the year ended December 31, 2009, except
those associated with the acquisitions as disclosed in Note 3, “Acquisitions.”
97
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)