Western Union 2011 Annual Report Download - page 79

Contractual Obligations
The following table summarizes our contractual obligations to third parties as of December 31, 2011 and the
effect such obligations are expected to have on our liquidity and cash flows in future periods (in millions):
Payments Due by Period
Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years
Items related to amounts included on our
balance sheet:
Borrowings, including interest (a) ......... $ 5,388.1 $ 474.5 $ 1,113.6 $ 1,260.3 $ 2,539.7
IRS Agreement (b) ..................... 190.0 190.0 — — —
Estimated pension funding (c) ............ 84.7 20.2 43.2 21.3 —
Unrecognized tax benefits (d) ............ 144.4 — — — —
Foreign currency and interest rate derivative
contracts (e) ........................ 86.6 86.4 0.2 — —
Other (f) ............................. 30.2 22.0 6.8 1.4 —
Other Contractual Obligations:
Purchase obligations (g) ................ 41.7 22.7 16.7 2.3 —
Operating leases ....................... 142.7 38.8 53.0 31.8 19.1
Other (h) ............................. 23.7 16.7 7.0 — —
$ 6,132.1 $ 871.3 $ 1,240.5 $ 1,317.1 $ 2,558.8
(a) We have estimated our interest payments based on (i) commercial paper borrowings outstanding as of
December 31, 2011, and the assumption that these commercial paper borrowings will be repaid upon
maturity and that no new issuances will occur in 2012, (ii) the assumption that no debt issuances or renewals
will occur upon the maturity dates of our notes, and (iii) an estimate of future interest rates on our floating
rate debt and interest rate swap agreements based on projected LIBOR rates.
(b) In December 2011, we reached an agreement with the IRS resolving substantially all of the issues related to
the restructuring of our international operations in 2003. As a result of the IRS Agreement, we expect to
make cash payments to the IRS and various state tax authorities in 2012 totaling approximately $190 million
to cover the remaining portion of the additional tax and interest.
(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 $5 million to the plan in 2012, which has not been reflected in the table
above.
(d) 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.
(e) Represents the liability position of our foreign currency and interest rate derivative contracts as of
December 31, 2011, which will fluctuate based on market conditions.
(f) This line item relates to accrued and unpaid initial payments for new and renewed agent contracts as of
December 31, 2011.
(g) 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.
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