Western Union 2014 Annual Report Download - page 218

2014 FORM 10-K
80
Contractual Obligations
The following table summarizes our contractual obligations to third parties as of December 31, 2014 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) . . . . . . . . . . . . . . . . . . . $ 5,141.0 $ 659.4 $ 1,759.3 $ 802.2 $ 1,920.1
IRS Agreement and related state tax payments (b). . . . . . . 100.0 100.0 — — —
Estimated pension funding (c) . . . . . . . . . . . . . . . . . . . . . . 46.1 17.7 3.3 10.1 15.0
Unrecognized tax benefits (d). . . . . . . . . . . . . . . . . . . . . . . 108.5 — — — —
Foreign currency and interest rate derivative contracts (e) 317.1 300.4 15.8 0.9 —
Other (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.7 13.4 3.4 1.5 0.4
Other Contractual Obligations:
Purchase obligations (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . 165.3 97.1 61.6 6.6 —
Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.4 39.2 60.8 30.2 14.2
$ 6,041.1 $ 1,227.2 $ 1,904.2 $ 851.5 $ 1,949.7
____________
(a) We have estimated our interest payments based on (i) the assumption that no debt issuances or renewals will occur upon
the maturity dates of our notes and (ii) an estimate of future interest rates on our 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 have made cash payments to the IRS and
various state tax authorities of $94.1 million as of December 31, 2014. We have estimated that we will make payments of
approximately $100 million in 2015 to cover the remaining portion of the additional tax and interest; however, certain of
these payments may be made after 2015.
(c) We have estimated our pension plan funding requirements, including interest, using assumptions that are consistent with
current pension funding rates. The actual minimum required amounts each year will vary based on the actual discount rate
and asset returns when the funding requirement is calculated.
(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, 2014,
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, 2014.
(g) Many of our contracts contain clauses that allow us to terminate the contract with notice and with a termination 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.