Western Union 2010 Annual Report Download - page 101

$3,473.6 million, respectively, at December 31, 2010 and had a carrying value and fair value of $3,048.5 million and
$3,211.3 million, respectively, at December 31, 2009 (see Note 15).
The fair value of the assets in the Trust, which holds the assets for the Company’s defined benefit plans, are
disclosed in Note 11.
9. Other Assets and Other Liabilities
The following table summarizes the components of other assets and other liabilities (in millions):
2010 2009
December 31,
Other assets:
Equity method investments ................................................................................ $ 85.7 $ 87.4
Derivatives ....................................................................................................... 69.8 109.9
Prepaid expenses .............................................................................................. 50.1 27.1
Other receivables .............................................................................................. 26.2 63.4
Amounts advanced to agents, net of discounts .................................................... 25.3 37.5
Receivables from First Data............................................................................... 24.1 24.8
Deferred customer set up costs .......................................................................... 20.4 26.1
Accounts receivable, net .................................................................................... 13.8 12.1
Debt issue costs ................................................................................................ 12.8 12.3
Receivable for securities sold, net of reserve ....................................................... — 30.6
Other ............................................................................................................... 22.2 11.0
Total other assets ..................................................................................................... $ 350.4 $ 442.2
Other liabilities:
Pension obligations ........................................................................................... $ 112.8 $ 124.2
Derivatives ....................................................................................................... 80.9 80.6
Deferred revenue .............................................................................................. 37.3 45.4
Other ............................................................................................................... 23.5 23.0
Total other liabilities ................................................................................................ $ 254.5 $ 273.2
Receivable for securities sold
On September 15, 2008, Western Union requested redemption of its shares from the Reserve International
Liquidity Fund, Ltd. (the “Fund”), a money market fund, totaling $298.1 million. Western Union included the value
of the receivable in “Other assets” in the Consolidated Balance Sheets. At the time the redemption request was
made, the Company was informed by the Reserve Management Company, the Fund’s investment advisor, that the
Company’s redemption trades would be honored at a $1.00 per share net asset value despite losses the Fund had
incurred on certain holdings resulting in the Fund subsequently reducing its net asset value. In 2009, the Company
received partial distributions totaling $255.5 million from the Fund and recorded a reserve of $12 million,
representing the estimated impact of a pro-rata distribution of the Fund. On December 31, 2010, the Company
received a final distribution from the Fund totaling $36.9 million. As a result of the final distribution, the Company
recovered $6.3 million of the related reserve, the impact of which is included in “Other income” in the Consolidated
Statements of Income.
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