Western Union 2013 Annual Report Download - page 210

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
100
Receivables from Business Solutions customers arise from cross-currency payment transactions in the Business Solutions
segment. Receivables occur when funds have been paid out to a beneficiary but not yet received from the customer. Aside from
these receivables, the credit risk associated with spot foreign currency exchange contracts is largely mitigated, as in most cases
the Company requires the receipt of funds from customers before releasing the associated cross-currency payment.
Settlement obligations consist of money transfer, money order and payment service payables and payables to agents. Money
transfer payables represent amounts to be paid to transferees when they request their funds. Money order payables represent
amounts not yet presented for payment. Most agents typically settle with transferees first and then obtain reimbursement from the
Company. Payment service payables represent amounts to be paid to utility companies, auto finance companies, mortgage servicers,
financial service providers, government agencies and others. Due to the agent funding and settlement process, payables to agents
represent amounts due to agents for money transfers that have been settled with transferees.
Settlement assets and obligations consisted of the following (in millions):
December 31,
2013 2012
Settlement assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 538.6 $ 574.5
Receivables from selling agents and Business Solutions customers . . . . . . . . . . . . . . . . . . . . . . . . . 981.3 1,025.3
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750.5 1,514.8
$ 3,270.4 $ 3,114.6
Settlement obligations:
Money transfer, money order and payment service payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,376.6 $ 2,297.1
Payables to agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 893.8 817.5
$ 3,270.4 $ 3,114.6
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 and 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):
December 31,
2013 2012
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 416.1 $ 384.6
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3 80.0
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.3 65.6
Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.3 33.4
Land and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.9 16.9
Projects in process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.6 0.1
638.5 580.6
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (428.6)(384.5)
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 209.9 $ 196.1