Western Union 2010 Annual Report Download - page 88

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Settlement assets and obligations consisted of the following (in millions):
2010 2009
December 31,
Settlement assets:
Cash and cash equivalents ............................................................................ $ 133.8 $ 161.9
Receivables from selling agents and business-to-business customers ............... 1,132.3 1,004.4
Investment securities.................................................................................... 1,369.1 1,222.8
$ 2,635.2 $ 2,389.1
Settlement obligations:
Money transfer, money order and payment service payables ........................... $ 2,170.0 $ 1,954.8
Payables to agents ....................................................................................... 465.2 434.3
$ 2,635.2 $ 2,389.1
Property and Equipment
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the
lesser of the estimated life of the related assets (generally three to 10 years for equipment, furniture and fixtures, and
30 years for buildings) or the lease term. Maintenance and repairs, which do not extend the useful life of the
respective assets, are charged to expense as incurred.
Property and equipment consisted of the following (in millions):
2010 2009
December 31,
Equipment ............................................................................................................... $ 401.5 $ 368.5
Buildings................................................................................................................. 77.5 75.2
Leasehold improvements .......................................................................................... 51.9 50.0
Furniture and fixtures............................................................................................... 30.3 28.1
Land and improvements ........................................................................................... 16.9 16.9
Projects in process ................................................................................................... 2.0 1.0
580.1 539.7
Less accumulated depreciation .................................................................................. (383.6) (335.4)
Property and equipment, net ..................................................................................... $ 196.5 $ 204.3
Amounts charged to expense for depreciation of property and equipment were $61.5 million, $55.9 million and
$61.7 million during the years ended December 31, 2010, 2009 and 2008, respectively.
Deferred Customer Set Up Costs
The Company capitalizes direct incremental costs not to exceed related deferred revenues associated with the
enrollment of customers in the Equity Accelerator program, a service that allows consumers to make mortgage
payments based on a customized payment program. Deferred customer set up costs, included in “Other assets” in
the Consolidated Balance Sheets, are amortized to “Cost of services” in the Consolidated Statements of Income
over the length of the customer’s expected participation in the program, generally five to seven years. Actual
customer attrition data is assessed at least annually and the amortization period is adjusted prospectively.
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