Western Union 2010 Annual Report Download - page 64

Contractual Obligations
The following table summarizes our contractual obligations to third parties as of December 31, 2010 and the
effect such obligations are expected to have on our liquidity and cash flows in future periods (in millions):
Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years
Payments Due by Period
Items related to amounts included on
our balance sheet:
Borrowings, including interest (a) ........ $ 5,166.8 $ 876.7 $ 314.1 $ 752.2 $ 3,223.8
Unrecognized tax benefits (b).............. 671.1 — — — —
Estimated pension funding (c) ............. 124.6 22.1 45.0 38.3 19.2
Foreign currency derivative
contracts (d) ................................... 80.9 69.7 9.6 1.6 —
Other (e) ............................................ 12.6 4.7 5.2 2.7 —
Other Contractual Obligations:
Purchase obligations (f) ...................... 148.9 52.5 47.0 34.4 15.0
Operating leases ................................. 105.9 29.9 38.4 22.6 15.0
Other (g)............................................ 152.0 140.0 12.0 — —
$ 6,462.8 $ 1,195.6 $ 471.3 $ 851.8 $ 3,273.0
(a) We have estimated our interest payments based on (i) the assumption that we will continue to have no
commercial paper borrowings outstanding (ii) the assumption that no debt issuances or renewals will occur
upon the maturity dates of our notes, although we intend to refinance in 2011 the remaining balance of
$696.3 million of our 5.400% Notes which are scheduled to mature in November 2011 and (iii) an estimate of
future interest rates on our interest rate swap agreements based on projected LIBOR rates.
(b) Unrecognized tax benefits include associated interest and penalties. The timing of related cash payments for
substantially all of these liabilities is inherently uncertain because the ultimate amount and timing of such
liabilities is affected by factors which are variable and outside our control.
(c) We have estimated our pension plan funding requirements, including interest, using assumptions that are
consistent with current pension funding rates. The unfunded pension liability included in “Other liabilities” in
the Consolidated Balance Sheets is the present value of the estimated pension plan funding requirements
disclosed above. 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 $3.0 million to the plan in 2011, which has not been reflected in the table
above.
(d) Represents the liability position of our foreign currency derivative contracts as of December 31, 2010, which
will fluctuate based on market conditions.
(e) This line item relates to accrued and unpaid initial payments for new and renewed agent contracts as of
December 31, 2010.
(f) Many of our contracts contain clauses that allow us to terminate the contract with notice and with a
terminations 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.
(g) This line item primarily relates to the agreement we entered into on December 31, 2010 to acquire the
remaining 70% interest, which we currently do not own, in Angelo Costa S.r.l., one of our largest money
transfer agents in Europe. We will acquire the 70% interest for cash of A100 million (approximately
$133 million based on currency exchange rates at December 31, 2010), less a working capital adjustment
62