Western Union 2009 Annual Report Download - page 123

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The income tax effects allocated to and the cumulative balance of each component of accumulated other
comprehensive loss were as follows (in millions):
2009 2008 2007
Beginning balance, January 1 ....................................... $ (30.0) $(68.8) $(73.5)
Unrealized gains/(losses) on investments securities:
Unrealized gains/(losses) ...................................... 11.5 (2.4) (2.1)
Tax (expense)/benefit ....................................... (4.3) 0.9 0.7
Reclassification adjustment for (gains)/losses ....................... (2.7) 4.3 (0.2)
Tax expense/(benefit) ....................................... 1.0 (1.6) 0.1
Net unrealized gains/(losses) on investment securities .............. 5.5 1.2 (1.5)
Unrealized (losses)/gains on hedging activities:
Unrealized (losses)/gains ...................................... (43.6) 82.6 (55.9)
Tax benefit/(expense) ....................................... 8.9 (15.0) 14.6
Reclassification adjustment for (gains)/losses ....................... (32.9) 25.1 31.3
Tax expense/(benefit) ....................................... 5.1 (3.5) (4.4)
Net unrealized (losses)/gains on hedging activities ................ (62.5) 89.2 (14.4)
Foreign currency translation adjustments:
Foreign currency translation adjustments ........................... (21.6) (8.0) 8.1
Tax benefit/(expense) ....................................... 7.6 2.8 (2.8)
Reclassification adjustment for disposal of investment (a) .............. (23.1) — —
Tax expense (a) ........................................... 8.1 — —
Net foreign currency translation adjustments .................... (29.0) (5.2) 5.3
Unrealized (losses)/gains on pension liability:
Unrealized (losses)/gains ...................................... (22.2) (76.1) 20.9
Tax benefit/(expense) ....................................... 8.7 28.0 (7.9)
Reclassification adjustment for losses ............................. 3.6 2.7 3.6
Tax benefit ............................................... (1.4) (1.0) (1.3)
Net unrealized (losses)/gains on pension liability ................. (11.3) (46.4) 15.3
Other comprehensive (loss)/income .................................. (97.3) 38.8 4.7
Ending balance, December 31 ...................................... $(127.3) $(30.0) $(68.8)
(a) The year ended December 31, 2009 includes the impact to the foreign currency translation account of the
surrender of the Company’s interest in FEXCO Group. See Note 3, “Acquisitions.”
The components of accumulated other comprehensive loss, net of tax, were as follows (in millions):
2009 2008 2007
Unrealized gains/(losses) on investment securities ................ $ 6.4 $ 0.9 $ (0.3)
Unrealized (losses)/gains on hedging activities ................... (17.0) 45.5 (43.7)
Foreign currency translation adjustment ........................ (10.9) 18.1 23.3
Pension liability adjustment ................................. (105.8) (94.5) (48.1)
$(127.3) $(30.0) $(68.8)
Cash Dividends Paid
During the fourth quarter of 2009, the Company’s Board of Directors declared a quarterly cash dividend
of $0.06 per common share representing $41.2 million in total dividends. During the fourth quarter of 2008
109
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)