Western Union 2014 Annual Report Download - page 275

2014 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
137
15. Borrowings
The Company’s outstanding borrowings consisted of the following (in millions):
December 31, 2014 December 31, 2013
Notes:
6.500% notes due 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 500.0
Floating rate notes (effective rate of 1.2%) due 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.0 250.0
2.375% notes due 2015 (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.0 250.0
5.930% notes due 2016 (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.0 1,000.0
2.875% notes (effective rate of 2.0%) due 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.0 500.0
3.650% notes due 2018 (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.0 400.0
3.350% notes due 2019 (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.0 250.0
5.253% notes (effective rate of 4.6%) due 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.9 324.9
6.200% notes due 2036 (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.0 500.0
6.200% notes due 2040 (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.0 250.0
Other borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6 5.7
Total borrowings at par value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,730.5 4,230.6
Fair value hedge accounting adjustments, net (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3 0.9
Unamortized discount, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15.4)(18.5)
Total borrowings at carrying value (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,720.4 $ 4,213.0
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(a) The difference between the stated interest rate and the effective interest rate is not significant.
(b) The Company utilizes interest rate swaps designated as fair value hedges to effectively change the interest rate payments
on a portion of its notes from fixed-rate payments to short-term LIBOR-based variable rate payments in order to manage
its overall exposure to interest rates. The changes in fair value of these interest rate swaps result in an offsetting hedge
accounting adjustment recorded to the carrying value of the related note. These hedge accounting adjustments will be
reclassified as reductions to or increases in "Interest expense" in the Consolidated Statements of Income over the life of
the related notes, and cause the effective rate of interest to differ from the notes’ stated rate.
(c) As of December 31, 2014, the Company’s weighted-average effective rate on total borrowings was approximately 4.4%.
The following summarizes the Company's maturities of borrowings at par value as of December 31, 2014 (in millions):
Due within 1 year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500.0
Due after 1 year through 2 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.0
Due after 2 years through 3 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505.6
Due after 3 years through 4 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.0
Due after 4 years through 5 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.0
Due after 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,074.9
The Company’s obligations with respect to its outstanding notes, as described below, rank equally.