First Data 2009 Annual Report Download - page 241

Chase Paymentech
NOTES TO COMBINED FINANCIAL STATEMENTS
For the years ended December 31, 2007 and 2006 and
the year ended December 31, 2005 (unaudited) (Continued)
The following table presents the Company’s estimated amortization expense relating to intangible assets as
of December 31, 2007, for the following years ending December 31, (in thousands):
2008 ..................................................... $17,448
2009 ..................................................... 13,444
2010 ..................................................... 11,989
2011 ..................................................... 11,284
2012 ..................................................... 9,492
Thereafter ................................................ 9,291
$ 72,948
NOTE 8—FAIR VALUE OF FINANCIAL INSTRUMENTS
Carrying amounts for certain of the Company’s financial instruments including cash and cash equivalents,
accounts receivable, receivables related to merchant processing, accounts payable and liabilities related to
merchant processing approximate fair value due to their short maturities. COLI policies included in other assets
are recorded at their cash surrender values, which approximate fair value. Accordingly, these instruments are not
presented in the following table. The following table provides carrying amounts and estimated fair values of
certain financial instruments (in thousands):
2007 2006
Carrying
amount
Estimated
fair value
Carrying
amount
Estimated
fair value
Marketable securities classified as investments ................. $71,772 $71,772 $133,385 $133,385
Current portion of long-term debt ........................... — — 16,922 15,956
The following methods and assumptions were used to estimate the fair value of each class of financial
instrument for which it is practicable to estimate that value:
Marketable securities classified as investments: These investments are carried at fair value, which is
estimated based on quoted market prices.
Current portion of long-term debt: The fair value of the current portion of long-term debt is based on the
present value of estimated cash flow for debt service based on the Company’s incremental borrowing rate.
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