Western Union 2009 Annual Report Download - page 77
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with interest. Due to the uncertainty surrounding this tax deposit, the amount has not been reflected in
the table above.
(c) Many of our contracts contain clauses that allow us to terminate the contract with notice and with a
termination penalty. Termination penalties are generally an amount less than the original obligation.
Obligations under certain contracts are usage-based and are, therefore, estimated in the above amounts.
Historically, we have not had any significant defaults of our contractual obligations or incurred
significant penalties for termination of our contractual obligations.
(d) We have estimated our pension plan funding requirements, including interest, using assumptions that are
consistent with current pension funding rates. The actual minimum required amounts each year will vary
based on the actual discount rate and asset returns when the funding requirement is calculated. In
addition, we may make a discretionary contribution of up to approximately $10 million to the plans in
2010, which has not been reflected in the table above.
(e) Represents the liability position of our foreign currency derivative contracts as of December 31, 2009,
which will fluctuate based on market conditions.
(f) This line item primarily includes the expected payment of $71.0 million related to the agreement and
settlement with the State of Arizona, including amounts to be paid to fund a multi-state not-for-profit
organization promoting safety and security along the United States and Mexico border, in which
California, Texas and New Mexico will participate with Arizona. The table above excludes certain
additional investments in our compliance programs along the United States and Mexico border and the
engagement of a monitor of that program of approximately $23 million to be incurred over the next two
to four years also related to the agreement and settlement with the State of Arizona due to the
uncertainty over the timing of payments. This balance also represents accrued and unpaid initial
payments for new and renewed agent contracts as of December 31, 2009.
Other Commercial Commitments
We had $88.0 million in outstanding letters of credit and bank guarantees at December 31, 2009, with
expiration dates through 2015, certain of which contain a one-year renewal option. The letters of credit and
bank guarantees are primarily held in connection with lease arrangements and certain agent agreements. We
expect to renew the letters of credit and bank guarantees prior to expiration in most circumstances.
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