-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RmKEemCJB01zgWGXBjAwa4jA3Y6FIdx82rm7h9ePowKoXUFsCH9XPKE7yJDe8jjA 01/LTa/orG3qLexwIwrTzA== 0001193125-09-064211.txt : 20090326 0001193125-09-064211.hdr.sgml : 20090326 20090326160431 ACCESSION NUMBER: 0001193125-09-064211 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20090325 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090326 DATE AS OF CHANGE: 20090326 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Western Union CO CENTRAL INDEX KEY: 0001365135 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 204531180 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32903 FILM NUMBER: 09706769 BUSINESS ADDRESS: STREET 1: 12500 EAST BELFORD AVENUE CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: (720) 332-3361 MAIL ADDRESS: STREET 1: 12500 EAST BELFORD AVENUE CITY: ENGLEWOOD STATE: CO ZIP: 80112 8-K 1 d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported) March 26, 2009

THE WESTERN UNION COMPANY

(Exact Name of Registrant as Specified in its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

 

001-32903   20-4531180
(Commission File Number)   (I.R.S. Employer Identification No.)

 

12500 East Belford Avenue, Englewood, Colorado   80112
(Address of Principal Executive Offices)   (Zip Code)

(866) 405-5012

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 8.01 Other Events.

Attached as Exhibit 100 to this report are the following materials from the Annual Report on Form 10-K of The Western Union Company (the “Company”) for the year-ended December 31, 2008, filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2009, formatted in eXtensible Business Reporting Language: (i) the Consolidated Statements of Income, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Stockholders’ (Deficiency)/Equity/Net Investment in The Western Union Company, (v) related notes to these financial statements tagged as blocks of text, (vi) Schedule I, and (vii) Document and Entity Information.

Users of this data are advised pursuant to Rule 401 of Regulation S-T that the information contained in the XBRL Related Documents (as defined in Regulation S-T) is unaudited, and that these documents are not the official financial statements the Company filed with the SEC. The purpose of submitting these XBRL Related Documents is to test the format and technology, and, as a result investors should not rely on the information in this report, including the attached files, when making investment decisions.

In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including each of the exhibits listed below, shall not be deemed “filed” for purposes of Section 11 of the Securities Act of 1933, as amended (the “Securities Act”) or Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of those sections, and is not part of any registration statement to which it may relate, and shall not be incorporated by reference into any registration or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

 

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibits are included herewith:

 

Exhibit

Number

  

Description

100

   The following materials from the Annual Report on Form 10-K of The Western Union Company for the year-ended December 31, 2008, filed on February 19, 2009, formatted in eXtensible Business Reporting Language: (i) the Consolidated Statements of Income, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Stockholders’ (Deficiency)/Equity/Net Investment in The Western Union Company, (v) related notes to these financial statements tagged as blocks of text, (vi) Schedule I, and (vii) Document and Entity Information.

 

1


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    THE WESTERN UNION COMPANY
March 26, 2009     By:   /s/ Sarah J. Kilgore
        Name:   Sarah J. Kilgore
        Title:   Assistant Secretary

 

2


EXHIBIT INDEX

 

Exhibit 100.INS

   XBRL Instance Document

Exhibit 100.SCH

   XBRL Taxonomy Extension Schema Document

Exhibit 100.CAL

   XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit 100.DEF

   XBRL Taxonomy Extension Definition Linkbase Document

Exhibit 100.LAB

   XBRL Taxonomy Extension Label Linkbase Document

Exhibit 100.PRE

   XBRL Taxonomy Extension Presentation Linkbase Document

 

3

EX-100.INS 2 wu-20081231.xml XBRL INSTANCE DOCUMENT 510200000 2811800000 0 -62100000 0 0 0 0 2873900000 0 1421700000 -314800000 7700000 -73500000 -437100000 208000000 -19900000 772000000 0 -900000 5784200000 0.01 2000000000 749800000 749800000 7500000 -68800000 350100000 -341100000 279700000 251500000 1793100000 263600000 236800000 1639500000 334100000 5733500000 5784200000 498000000 182900000 1 10000000 0 0 200300000 453100000 50700000 3338000000 1319200000 1319200000 7500000 -68800000 -341100000 453100000 0 749800000 0 0 5578300000 0.01 2000000000 709600000 709600000 7100000 -30000000 385700000 -14400000 381600000 284000000 1295600000 270100000 276500000 1674200000 350600000 5586400000 5578300000 858100000 198000000 1 10000000 0 0 192300000 29200000 -8100000 3143500000 1207500000 1207500000 7100000 -30000000 -14400000 29200000 0 709600000 0 0 911500000 1.20 1.19 7700000 600000 68700000 2430500000 3158800000 12900000 34800000 1335100000 421100000 271600000 59800000 63400000 60700000 -27500000 53400000 26400000 40100000 187300000 -384700000 1108900000 914000000 23700000 1311400000 24300000 -400000 10800000 7500000 -29300000 12400000 19900000 7700000 66500000 0 124100000 140000000 63800000 14400000 3000000 324600000 20000000 4386000000 80800000 2400000000 119700000 4470200000 728300000 23300000 14200000 19900000 768600000 764500000 10100000 35700000 -4100000 4100000 160200000 7500000 4097200000 776200000 148200000 995100000 653900000 -21200000 154500000 3696600000 0 2953900000 0 80800000 -7700000 902600000 914000000 -400000 10800000 7500000 -29300000 -400000 10800000 7500000 -29300000 600000 14200000 532700000 80800000 7700000 215700000 19900000 1300000 765300000 5400000 698300000 4097200000 -525000000 -900000 371400000 1.13 1.11 30000000 4300000 74800000 2808400000 3578200000 -600000 4200000 49100000 1222400000 365100000 340900000 43400000 15300000 -16200000 -21600000 189000000 185800000 79400000 -530100000 -202000000 1103500000 857300000 -99600000 1322000000 14600000 -1500000 15300000 5300000 -14400000 1700000 726800000 30000000 0 35800000 80900000 6100000 83500000 27700000 -3000000 13600000 32000000 0 216100000 0 139100000 4900200000 769800000 50200000 50200000 678400000 772900000 760200000 0 0 0 0 0 0 0 0 0 771300000 8300000 -315400000 0 3989800000 0 0 0 53800000 211800000 -200000 7700000 862000000 857300000 -1500000 15300000 5300000 -14400000 -1500000 15300000 5300000 -14400000 -73500000 4300000 50200000 -437100000 41500000 30000000 -600000 857300000 900000 -461800000 207400000 53800000 -65100000 677500000 462000000 -19900000 235400000 -2300000 -22700000 772000000 2800000 0 -32400000 22700000 -900000 10600000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>7. Investment Securities </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Investment securities, classified within “Settlement assets” in the Consolidated Balance Sheets, consist primarily of high-quality state and municipal debt instruments. Substantially all of the Company’s investment securities were marketable securities during all periods presented. The Company is required to maintain specific high-quality, investment grade securities and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable state regulations. Western Union does not hold financial instruments for trading purposes. All investment securities are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk. Western Union regularly monitors credit risk and attempts to mitigate its exposure by making high-quality investments. At Decem ber&nbsp;31, 2008, the significant majority of the Company’s investment securities had credit ratings of “AA-” or better from a major credit rating agency. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Unrealized gains and losses on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive income or loss, net of related deferred taxes. Proceeds from the sale and maturity of available-for-sale securities during the years ended December&nbsp;31, 2008, 2007 and 2006 were $2,811.5 million, $177.7 million and $62.6 million, respectively. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During 2008, the Company increased its investment securities primarily through the addition of various state and municipal variable rate demand note securities which can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week, but that have maturity dates ranging from 2012 to 2046. Generally, these securities are used by the Company for short-term liquidity needs and are held for short periods of time, typically less than 30 days. As a result, this has increased the frequency of purchases and proceeds received by the Company. At December 31, 2008, 53% of the Company’s investments in state and municipal debt securities were variable rate demand notes and the remainder are fixed rate securities. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Gains and losses on investments are calculated using the specific-identification method and are recognized during the period the investment is sold or when an investment experiences an other-than-temporary decline in value below cost or amortized cost. When an investment is deemed to have an other-than-temporary decline in value it is reduced to its fair value, which becomes the new cost basis of the investment. Western Union considers both qualitative and quantitative indicators when judging whether a decline in value of an investment is other-than-temporary in nature, including, but not limited to, the length of time the investment has been in an unrealized loss position, the significance of the unrealized loss relative to the carrying amount of the investment and our intent and ability to hold the investment until a forecasted recovery. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The components of investment securities, all of which are classified as available-for-sale, are as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="55%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> <P style="WIDTH: 64pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>December&nbsp;31, 2008</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Amortized</B></FONT><BR><FONT face="Times New Roman" size=1><B>Cost</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross</B></FONT><BR><FONT face="Times New Roman" size=1><B>Unrealized</B></FONT><BR><FONT face="Times New Roman" size=1><B>Gains</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Losses</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Net<BR>Unrealized<BR>Gains/(Losses)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and municipal obligations</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>400.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>401.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt securities issued by foreign governments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>404.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>405.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="54%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> <P style="WIDTH: 64pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>December&nbsp;31, 2007</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Amortized<BR>Cost</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Gains</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Losses</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Net<BR>Unrealized<BR>Gains/(Losses)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and municipal obligations</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>187.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>188.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Preferred stock of a government sponsored enterprise</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>194.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>There were no investments with a single issuer or individual securities representing greater than 10% of total investment securities as of December&nbsp;31, 2008 and 2007. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following summarizes contractual maturities of investment securities as of December&nbsp;31, 2008 (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="84%"></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Amortized<BR>Cost</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due within 1 year</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>45.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>46.2</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after 1 year through 5 years</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>127.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>128.7</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after 5 years through 10 years</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after 10 years</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>228.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>228.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>404.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>405.6</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay the obligations or the Company may have the right to put the obligation back to the issuer prior to its contractual maturity. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the year ended December&nbsp;31, 2008, the Company recognized an other-than-temporary impairment of $1.7 million on its preferred stock investments in the Federal Home Loan Mortgage Corporation, a government sponsored enterprise, and a realized loss of $2.9 million on the later sale of these investments during the year ended December&nbsp;31, 2008, for a total impact of $4.6 million. As of December&nbsp;31, 2008, the Company has no remaining investments in preferred stock of government sponsored enterprises. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On July&nbsp;18, 2008, the Company entered into an agreement with IPS, a subsidiary of First Data, which modified the existing business relationship with respect to the issuance and processing of money orders. Under the terms of the agreement, beginning on October&nbsp;1, 2009 (the “Transition Date”), IPS will assign and transfer to the Company certain operating assets used by IPS to issue money orders and an amount of cash sufficient to satisfy all outstanding money order liabilities. On the Transition Date, the Company will assume IPS’s role as issuer of the money orders, including its obligation to pay outstanding money orders, and will terminate the </FONT><FONT face="Times New Roman" size=2>existing agreement whereby IPS pays Western Union a fixed return on the outstanding money order balances (which vary from day to day but approximate $800 million). Following the Transition Date, Western Union will invest the cash received from IPS in high-quality, investment grade securities in accordance with applicable regulations, which are the same as those currently governing the investment of the Company’s United States originated money transfer principal. In anticipation of the Company’s exposure to fluctuations in interest rates, the Company has entered into interest rate swaps on certain of its fixed rate notes. Through a combination of the revenue generated from these investment securities and the anticipated interest expense savings resulting from the interest rate swaps, the Company estimates that it should be able to retain subsequent to the Transition Date, on a pre-tax income basis through 2011, a comparable rate of return as it is receiving under its current agreement with IPS. Refer to Note 14 for additional information on the interest rate swaps. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Subsequent to the Transition Date, all revenue generated from the management of the investment portfolio will be retained by the Company and none will be shared with its agents. IPS will continue to provide to the Company clearing services necessary for payment of the money orders in exchange for the payment by the Company to IPS of a per-item administrative fee. The Company will no longer provide to IPS the services required under the original money order agreement or receive from IPS the fee for such services. </FONT></P> -497500000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>4. Acquisitions </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In December 2008, the Company acquired 80% of its existing money transfer agent in Peru for a purchase price of $35.0 million. The aggregate consideration paid was $29.7 million, net of a holdback reserve of $3.0 million. The Company acquired cash of $2.3 million as part of the acquisition. The $3.0 million holdback reserve will be paid in annual $1.0 million increments beginning December 2009, subject to the terms of the agreement. The results of operations of the acquiree have been included in the Company’s consolidated financial statements since the acquisition date. The preliminary purchase price allocation resulted in $10.1 million of identifiable intangible assets, a significant portion of which were attributable to the acquiree’s network of subagents. The identifiable intangible assets are being amortized over three to 10 years and goodwill of $24.8 million was recorded, which is expected to be deductible for income tax purposes. The purchase price allocation is preliminary and subject to change after the valuation of identifiable assets and certain other assets and liabilities is finalized. In addition, the Company has the option to acquire the remaining 20% of the money transfer agent and the money transfer agent has the option to sell the remaining 20% to the Company within 12 months after December 2013 at fair value. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On August&nbsp;1, 2008, the Company acquired the money transfer assets from its existing money transfer agent in Panama for a purchase price of $18.3 million. The consideration paid was $14.3 million, net of a holdback reserve of $4.0 million. The $4.0 million holdback reserve is scheduled to be paid $0.5 million, $1.2 million, $1.2 million and $1.1 million in February 2009,&nbsp;August 2009,&nbsp;August 2010 and August 2011, respectively, subject to the terms of the agreement. The results of operations of the acquiree have been included in the Company’s consolidated financial statements since the acquisition date. The preliminary purchase price allocation resulted in $5.6 million of identifiable intangible assets, a significant portion of which were attributable to the acquiree’s network of subagents. The identifiable intangible assets are being amortized over three to s even years and goodwill of $14.2 million was recorded, which is not expected to be deductible for income tax purposes. The purchase price allocation is preliminary and subject to change after the valuation of identifiable assets and certain other assets and liabilities is finalized. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In October 2007, the Company entered into agreements totaling $18.3 million to convert its non-participating interest in an agent in Singapore to a fully participating 49% equity interest and to extend the agent relationship at more favorable commission rates to Western Union. As a result, the Company earns a pro-rata share of profits and has enhanced voting rights. The Company also has the right to add additional agent relationships in Singapore. In addition, in October 2007, the Company completed an agreement to acquire a 25% ownership interest in an agent in Jamaica and to extend the term of the agent relationship for $29.0 million. The aggregate consideration paid resulted in $20.2 million of identifiable intangible assets, including capitalized contract costs, which are being amortized over seven to 10 years. Western Union’s investments in these agents are accounted for under the equity method of accounting. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 3px; VERTICAL-ALIGN: top; TEXT-INDENT: 4%; LINE-HEIGHT: 95%"><FONT face="Times New Roman" size=2>In December 2006, the Company acquired Servicio Electronico de Pago S.A. and related entities (“SEPSA”), which operates under the brand name Pago Fácil</FONT><FONT face="Times New Roman" size=1><SUP>SM</SUP></FONT><FONT face="Times New Roman" size=2>, for a total purchase price of $69.8 million, less cash acquired of $3.0 million. Pago Fácil provides consumer-to-business payments and prepaid mobile phone top-up services in Argentina. Previously, the Company held a 25% interest in Pago Fácil, which was treated as an equity method investment. As a result of acquiring the additional 75% ownership, the Company’s entire investment in and results of operations of Pago Fácil have been included in the consolidated financial statements since the acquisition date. The purc hase price allocation resulted in $28.1 million of identifiable intangible assets, a significant portion of which were attributable to the Pago Fácil service mark and acquired agent and biller relationships. The identifiable intangible assets were calculated based on the additional 75% ownership interest acquired, and are being amortized over two to 25 years. After adjusting the additional acquired net assets to fair value, goodwill of $44.5 million was recorded, substantially all of which is eligible for amortization for tax purposes across various jurisdictions. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The pro forma impact of all acquisitions on net income in 2008, 2007 and 2006 was immaterial. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table presents changes to goodwill for the years ended December&nbsp;31, 2008 and 2007 (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="61%"></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Consumer-to-<BR>Consumer</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Consumer-to-<BR>Business</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Other</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Total</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>January&nbsp;1, 2007 balance</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,392.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>243.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,648.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Purchase price adjustments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(3.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(5.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Currency translation</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>December&nbsp;31, 2007 balance</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,389.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>235.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,639.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Acquisitions</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>39.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>39.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Purchase price adjustments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Currency translation</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(3.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(3.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>December&nbsp;31, 2008 balance</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,427.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>232.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,674.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> 1.26 1.24 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>6. Commitments and Contingencies </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In the normal course of business, Western Union is subject to claims and litigation. Management of Western Union believes such matters involving a reasonably possible chance of loss will not, individually or in the aggregate, result in a material adverse effect on Western Union’s financial position, results of operations and cash flows. Western Union accrues for loss contingencies as they become probable and estimable. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On September&nbsp;25, 2008, the Company was served with a purported class action complaint alleging that Western Union willfully and negligently violated the Fair and Accurate Credit Transactions Act of 2003 (“FACTA”) by providing debit and credit card expiration dates on electronically printed receipts for transactions initiated on the Company’s website. On November&nbsp;12, 2008, the Company received notification that the class action complaint was voluntarily dismissed. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company has $77.0 million in outstanding letters of credit and bank guarantees at December&nbsp;31, 2008 with expiration dates through 2015, certain of which contain a one-year renewal option. The letters of credit and bank guarantees are primarily held in connection with lease arrangements and certain agent agreements. The Company expects to renew the letters of credit and bank guarantees prior to expiration in most circumstances. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Pursuant to the separation and distribution agreement with First Data in connection with the Spin-off (see Note 1), First Data and the Company are each liable for, and agreed to perform, all liabilities with respect to their respective businesses. In addition, the separation and distribution agreement also provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of the Company’s business with the Company and financial responsibility for the obligations and liabilities of First Data’s retained businesses with First Data. The Company also entered into a tax allocation agreement that sets forth the rights and obligations of First Data and the Company with respect to taxes imposed on their respective businesses both prior to and after the Spin-off as well as potential tax obligations for which the Company may be liable in co njunction with the Spin-off (see Note 10). </FONT></P> 28400000 <P style="MARGIN-TOP: 4px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT </B></FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following lists the condensed financial information for the parent company as of December&nbsp;31, 2008 and 2007 and statements of income and cash flows for each of the three years in the period ended December&nbsp;31, 2008. </FONT></P> <P style="MARGIN-TOP: 24px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>THE WESTERN UNION COMPANY </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>CONDENSED BALANCE SHEETS </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>(PARENT COMPANY ONLY) </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>(in millions, except per share amounts) </B></FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="82%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Assets</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and cash equivalents</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>281.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>36.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Property and equipment, net of accumulated depreciation of $3.1 and $14.1, respectively</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>33.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>66.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>106.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>51.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Investment in subsidiaries</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,387.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,564.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,807.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,719.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Liabilities and Stockholders’ (Deficiency)/Equity</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Liabilities:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accounts payable and accrued liabilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>54.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>72.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Payable to subsidiaries, net</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>622.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>254.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Borrowings</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,137.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,338.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other liabilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total liabilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,815.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,668.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Stockholders’ (Deficiency)/Equity:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Preferred stock, $1.00 par value; 10 shares authorized; no shares issued</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Common stock, $0.01 par value; 2,000 shares authorized and 709.6 and 749.8 shares issued and outstanding at December&nbsp;31, 2008 and 2007, respectively</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capital deficiency</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(14.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(341.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Retained earnings</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>453.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accumulated other comprehensive loss</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(30.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(68.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total stockholders’ (deficiency)/equity</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(8.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>50.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total liabilities and stockholders’ (deficiency)/equity</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,807.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,719.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 100px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2>See Notes to Condensed Financial Statements. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>THE WESTERN UNION COMPANY </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>CONDENSED STATEMENTS OF OPERATIONS </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>(PARENT COMPANY ONLY) </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>(in millions) </B></FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="70%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>For&nbsp;the&nbsp;Years&nbsp;Ended&nbsp;December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Revenues</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expenses</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Operating income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest expense</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(171.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(188.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(34.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Derivative losses, net</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Loss before equity in earnings of affiliates and income taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(168.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(187.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(33.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity in earnings of affiliates, net of tax</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,022.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>972.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>934.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Income tax benefit</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>64.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>72.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>919.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>857.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>914.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 380px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2>See Notes to Condensed Financial Statements. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>THE WESTERN UNION COMPANY </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>CONDENSED STATEMENTS OF CASH FLOW </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>(PARENT COMPANY ONLY) </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>(in millions) </B></FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="72%"></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>For the Years Ended December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Cash flows from operating activities</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net cash provided by operating activities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,145.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>772.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,914.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Cash flows from investing activities</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Purchases of property and equipment</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capital contributed to subsidiary</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(379.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2,400.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net cash used in investing activities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(381.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2,400.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Cash flows from financing activities</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Advances from subsidiaries</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>397.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>166.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>83.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Proceeds from issuance of borrowings</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>500.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,986.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Principal payments on borrowings</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(500.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net (repayments)/proceeds from commercial paper</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(255.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>324.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net (repayments)/proceeds from net borrowings under credit facilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(3.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Proceeds from exercise of options</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>300.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>216.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>80.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash dividends to public stockholders</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(28.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(30.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Common stock repurchased</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,314.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(726.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(19.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Dividends to First Data</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2,953.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net cash used in financing activities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(900.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(363.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(503.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net change in cash and cash equivalents</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>244.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and cash equivalents at beginning of year</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>36.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and cash equivalents at end of year</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>281.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>36.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 250px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2>See Notes to Condensed Financial Statements. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>THE WESTERN UNION COMPANY </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>NOTES TO CONDENSED FINANCIAL STATEMENTS </B></FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>1. Basis of Presentation </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Western Union Company (“the Parent”) is a holding company that conducts substantially all of its business operations through its subsidiaries. Under a parent company only presentation, the Parent’s investments in its consolidated subsidiaries are presented under the equity method of accounting, and the condensed financial statements do not present the financial statements of the Parent and its subsidiaries on a consolidated basis. The financial statements for the periods presented prior to September&nbsp;29, 2006 do not include all of the actual expenses that would have been incurred had the Parent been a stand-alone entity during the period presented and do not reflect the Parent’s results of operations, financial position and cash flows had it been a stand-alone company during the period presented. These financial statements should be read in conjunction with T he Western Union Company’s consolidated financial statements. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>2. Restricted Net Assets </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Certain assets of the Parent’s subsidiaries totaling approximately $193 million constitute restricted net assets, as there are legal or regulatory limitations on transferring such assets outside of the countries where the respective assets are located, or because they constitute undistributed earnings of affiliates of the Parent accounted for under the equity method of accounting. As of December&nbsp;31, 2008, the Parent is in a stockholders’ deficiency position of $8.1 million, and as such, all of the restricted net assets of the Parent’s subsidiaries currently exceeds 25% of the consolidated net assets of the Parent and its subsidiaries, thus requiring this Schedule I, “Condensed Financial Information of the Registrant”. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>3. Related Party Transactions </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Excess cash generated from operations of the Parent’s subsidiaries that is not required to meet certain regulatory requirements is paid periodically to the Parent and is reflected as “Payable to subsidiaries, net” in the Condensed Balance Sheet as of December&nbsp;31, 2008. The Parent’s subsidiaries periodically distribute excess cash balances to the Parent in the form of a dividend. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the year ended December&nbsp;31, 2006 and in connection with the spin-off from First Data on September&nbsp;29, 2006, the Parent paid a dividend to First Data as consideration for the contribution by First Data of its money transfer and consumer payments businesses (see Note 1 to The Western Union Company Consolidated Financial Statements). </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Parent files a consolidated U.S. federal income tax return, and also a number of consolidated state income tax returns on behalf of its subsidiaries. In these circumstances, the Parent is responsible for remitting income tax payments on behalf of the consolidated group. The Parent’s provision for income taxes has been computed as if it were a separate tax-paying entity. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>4. Commitments and Contingencies </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Parent provides guarantees of the performance on property leases to its subsidiaries for properties located in various facilities in the United States and Mexico. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company provides a parental guarantee to one of its subsidiaries for letters of credit to certain agents. These letters of credit are amended quarterly. As of December&nbsp;31, 2008, $33.6 million of letters of credit were outstanding. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> 10900000 82300000 3093000000 3927000000 15900000 61700000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>14. Derivatives </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company is exposed to foreign currency risk resulting from fluctuations in exchange rates, primarily the euro, and to a lesser degree the British pound, Canadian dollar, other European currencies, and the Australian dollar, related to forecasted revenues and also on settlement assets and obligations denominated in these and other currencies. Additionally, the Company is exposed to interest rate risk related to changes in market rates </FONT><FONT face="Times New Roman" size=2>both prior to and subsequent to the issuance of debt. The Company uses derivatives to minimize its exposures related to adverse changes in foreign currency exchange rates and interest rates and not to engage in speculative derivative activities. Foreign currency forward contracts and interest rate swaps of varying maturities are used in these risk management activities. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company executes derivative financial instruments, which it designates as hedges, with established financial institutions having credit ratings of “A” or better from major rating agencies. The credit risk inherent in these agreements represents the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. The Company performs a review of the credit risk of these counterparties at the inception of the hedge, on a quarterly basis and as circumstances warrant. The Company also monitors the concentration of its contracts with any individual counterparty. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements, but takes action (including termination of contracts) when doubt arises about the counterparties’ ability to perform. The Company’s foreign currency exposures are in liquid currencies, consequently there is minimal risk that appropriate derivatives to maintain the hedging program would not be available in the future. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The details of each designated hedging relationship are formally documented at the inception of the arrangement, including the risk management objective, hedging strategy, hedged item, specific risks being hedged, the derivative instrument, how effectiveness is being assessed and how ineffectiveness, if any, will be measured. The derivative must be highly effective in offsetting the changes in cash flows or fair value of the hedged item, and effectiveness is evaluated quarterly on a retrospective and prospective basis. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Foreign Currency Hedging </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s policy is to use longer-term foreign currency forward contracts, with maturities of up to three years at inception and a targeted weighted-average maturity of approximately one year at any point in time, to mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies. At December&nbsp;31, 2008, the Company’s longer-term foreign currency forward contracts had maturities of a maximum of 24 months with a weighted average maturity of one year. The Company assesses the effectiveness of these foreign currency forward contracts based on changes in the spot rate of the affected currencies during the period of designation. Accordingly, all changes in the fair value of the hedges not considered effective or portions of the hedge that are excluded from the measure of effectiveness are recognized immediately in “Derivative (losses)/gains, net” within the Company’s Consolidated Statements of Income. Differences between changes in the forward rates and spot rates, along with all changes in the fair value during periods in which the instrument was not designated as a hedge, were excluded from the measure of effectiveness. Prior to September&nbsp;29, 2006, the Company did not have derivatives that qualified for hedge accounting in accordance with SFAS No.&nbsp;133. As such, the effect of the changes in the fair value of these hedges prior to September&nbsp;29, 2006 is included in “Derivative (losses)/gains, net”. On September&nbsp;29, 2006 and during the fourth quarter of 2006, the Company began entering into new derivative contracts in accordance with its revised foreign currency derivatives and hedging processes, which were designated and qualify as cash flow hedges under SFAS No.&nbsp;133. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company also uses short duration foreign currency forward contracts, generally with maturities from a few days up to one month, to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement. In addition, forward contracts, typically with maturities of less than one year, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash positions. None of these contracts are designated as hedges pursuant to SFAS No.&nbsp;133. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The aggregate United States dollar notional amount of foreign currency forward contracts held by the Company as of December&nbsp;31, 2008 are (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="84%" align=center border=0> <TBODY> <TR> <TD width="89%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Contracts not designated as hedges:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Euro</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>276.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>British pound</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34.6</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26.6</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=3 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Contracts designated as hedges:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Euro</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>556.3</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>British pound</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>106.8</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Canadian dollar</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>101.3</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>75.2</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Interest Rate Hedging </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company utilizes interest rate swaps to effectively change the interest rate payments on a portion of its notes due 2011 and 2016 from fixed-rate payments to short-term LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. The Company designates these derivatives as fair value hedges utilizing the short-cut method in SFAS No.&nbsp;133, which permits an assumption of no ineffectiveness if certain criteria are met. The change in fair value of the interest rate swaps is offset by a change in the balance of the debt being hedged within the Company’s “Borrowings” in the Consolidated Balance Sheets and interest expense has been adjusted to include the effects of payments made and received under the swaps. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>At December&nbsp;31, 2008 and 2007, the Company held interest rate swaps in an aggregate notional amount of $660 million and $75 million, respectively. The notional amounts outstanding at December&nbsp;31, 2008 included interest rate swaps entered into by the Company to reduce the economic exposure from fluctuations in interest rates that will impact the return on pre-tax income the Company receives under its existing agreement with IPS (Note 7). </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the fourth quarter of 2008, the Company terminated an aggregate notional amount of $195 million of interest rate swaps. The Company received cash of $10.7 million on the termination of these swaps, the offset of which was recognized in “Borrowings” and will be reclassified as a reduction to “Interest expense” over the life of the 2011 notes. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In 2006, the Company executed forward starting interest rate swaps designated as cash flow hedges to fix the interest rate in connection with an anticipated issuance of fixed rate debt securities. The Company terminated the interest rate swaps in conjunction with the November 2006 issuance of the 2011 and 2036 Notes described in Note 15 by paying cash of approximately $18.6 million to the counterparties, resulting in ineffectiveness of $0.6 million, which was immediately recognized in “Derivative gains/(losses), net” in the Consolidated Statements of Income. The remaining $18.0 million loss on the hedges was included in “Accumulated other comprehensive loss” and is being reclassified as an increase to “Interest expense” over the life of the related notes. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Balance Sheet </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table summarizes the fair value of derivatives reported in the Consolidated Balance Sheets as of December&nbsp;31, 2008 and 2007 (in millions). </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="53%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=7><FONT face="Times New Roman" size=1><B>Asset Derivatives</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=7><FONT face="Times New Roman" size=1><B>Liability Derivatives</B></FONT></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle rowSpan=2><FONT face="Times New Roman" size=1><B>Balance Sheet<BR>Location</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>Fair Value</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle rowSpan=2><FONT face="Times New Roman" size=1><B>Balance Sheet<BR>Location</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>Fair Value</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Derivatives—hedges:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest rate fair value hedges</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Other&nbsp;assets</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>48.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Other&nbsp;liabilities</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency cash flow hedges</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Other assets</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>65.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Other liabilities</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34.7</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>113.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34.7</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Derivatives—undesignated:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Other assets</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Other liabilities</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.5</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.5</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total derivatives</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>116.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table summarizes the fair value of derivatives held at December&nbsp;31, 2008 and their expected maturities (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="57%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Total</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2009</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2010</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2011</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2012</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2013</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Thereafter</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency hedges—cash flow</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>58.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>40.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>17.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency hedges—undesignated</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest rate hedges—fair value</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>48.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>106.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>55.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>33.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following tables summarize the location and amount of gains and losses of derivatives in the Consolidated Statements of Income segregated by designated, qualifying SFAS No.&nbsp;133 hedging instruments and those that are not, for the years ended December&nbsp;31, 2008, 2007 and 2006 (in millions). </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Fair Value Hedges – Gain/(Loss) </I></B></FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="32%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD width="12%"></TD> <TD vAlign=bottom width="2%"></TD> <TD width="12%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap rowSpan=3> <P style="WIDTH: 38pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>Derivatives</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>Gain/(Loss) Recognized in Income on<BR>Derivative</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle rowSpan=3> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=center><FONT face="Times New Roman" size=1><B>Hedged&nbsp;Items </B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=12> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=1><B>Gain/(Loss) Recognized in Income on </B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=center><FONT face="Times New Roman" size=1><B>Related&nbsp;Hedged Item</B></FONT></P></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Location</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=8><FONT face="Times New Roman" size=1><B>Amount</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=center><FONT face="Times New Roman" size=1><B>Location</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>Amount</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2008&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2007&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2006&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2008&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2007&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2006&nbsp;&nbsp;</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest rate contracts&nbsp;(a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>Interest&nbsp;expense</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>58.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>Fixed-rate&nbsp;debt</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Interest&nbsp;expense</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>(54.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>(3.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total gain/(loss)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>58.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>(54.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>(3.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Cash Flow Hedges – Gain/(Loss) </I></B></FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="30%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD width="13%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap rowSpan=3> <P style="WIDTH: 38pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>Derivatives</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=9 rowSpan=2><FONT face="Times New Roman" size=1><B>Amount&nbsp;of&nbsp;Gain/(Loss)</B></FONT><BR><FONT face="Times New Roman" size=1><B>Recognized in OCI on<BR>Derivative (Effective<BR>Portion)</B></FONT></TD> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=12> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=1><B>Gain/(Loss) Reclassified from<BR>Accumulated OCI into Income</B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=center><FONT face="Times New Roman" size=1><B>(Effective Portion)</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=11><FONT face="Times New Roman" size=1><B>Gain/(Loss) Recognized in Income on</B></FONT><BR><FONT face="Times New Roman" size=1><B>Derivative (Ineffective Portion and Amount<BR>Excluded from Effectiveness Testing) (b)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=center><FONT face="Times New Roman" size=1><B>Location</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>Amount</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Location</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=9><FONT face="Times New Roman" size=1><B>Amount</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2008&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2007&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2006&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2008&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2007&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2006&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2008&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2007&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2006&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency contracts</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>82.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(55.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(11.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>Revenue</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(23.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(29.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>Derivative<BR>(losses)/gains,&nbsp;net</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(9.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest rate<BR>contracts&nbsp;(c)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>(18.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>Interest&nbsp;expense</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>Derivative<BR>(losses)/gains,&nbsp;net</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>(0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total gain/(loss)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>82.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(55.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(29.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(25.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(31.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(9.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Undesignated – Gain/(Loss) </I></B></FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="57%"></TD> <TD vAlign=bottom width="3%"></TD> <TD width="22%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap rowSpan=3> <P style="WIDTH: 38pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>Derivatives</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=11> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=center><FONT face="Times New Roman" size=1><B>Gain/(Loss)&nbsp;Recognized in Income on Derivative</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=center><FONT face="Times New Roman" size=1><B>Location</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=9><FONT face="Times New Roman" size=1><B>Amount</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2008&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2007&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2006&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency contracts (d)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>Cost&nbsp;of&nbsp;services</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(21.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(19.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency contracts (e)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>Derivative&nbsp;(losses)/gains,&nbsp;net</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(22.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total gain/(loss)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(24.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(42.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The net gain of $3.9 million in interest expense in 2008 from the fair value hedges represents the net interest received on the swaps during the year. The fair value of all future receipts and payments on the swaps are completely offset by changes in the value of the hedged debt.</FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(b)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The portion of change in fair value of a derivative excluded from the effectiveness assessment for foreign currency forward contracts designated as cash flow hedges represents the difference between changes in forward rates and spot rates. The ineffectiveness recognized in interest rate contracts is attributable to certain forecasted debt hedges and the timing of the related debt issuance changing from original expectation. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(c)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The Company incurred an $18.0 million loss on the termination of these swaps which is included in “Accumulated other comprehensive loss” and is reclassified as an increase to interest expense over the life of the related notes. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(d)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(e)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The derivative contracts used in the Company’s revenue hedging program are not designated as hedges in the final month of the contract. In 2006, the loss also includes losses associated with certain foreign currency forward contracts that did not qualify as hedges under derivative accounting rules prior to September&nbsp;29, 2006. </FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>An accumulated other comprehensive pre-tax gain of $44.5 million related to the foreign currency forward contracts is expected to be reclassified into revenue within the next 12 months as of December&nbsp;31, 2008. Approximately $1.7 million of losses on the forecasted debt issuance hedges are expected to be recognized in interest expense within the next 12 months as of December&nbsp;31, 2008.&nbsp;No amounts have been reclassified into earnings as a result of the underlying transaction being considered probable of not occurring within the specified time period. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>16. Stock Compensation Plans </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Stock Compensation Plans </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><I>The Western Union Company 2006 Long-Term Incentive Plan </I></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Western Union Company 2006 Long-Term Incentive Plan (“2006 LTIP”) provides for the granting of stock options, restricted stock awards and units, unrestricted stock awards, and other equity-based awards, to employees and other key individuals who perform services for the Company. A maximum of 120.0&nbsp;million shares of common stock may be awarded under the 2006 LTIP, of which 37.3&nbsp;million shares are available as of December&nbsp;31, 2008. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Options granted under the 2006 LTIP are issued with exercise prices equal to the fair market value of Western Union common stock on the grant date, have 10-year terms, and vest over four equal annual increments beginning 12 months after the date of grant. Compensation expense related to stock options is recognized over the requisite service period. The requisite service period for stock options is the same as the vesting period, with the exception of retirement eligible employees, who have shorter requisite service periods ending when the employees become retirement eligible. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Restricted stock awards and units granted under the 2006 LTIP typically become 100% vested on the three year anniversary of the grant date. The fair value of the awards granted is measured based on the fair market value of the shares on the date of grant, and the related compensation expense is recognized over the requisite service period which is the same as the vesting period. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On September&nbsp;29, 2006, the Company awarded a founders’ grant of either restricted stock awards or units to certain employees who are not otherwise eligible to receive stock-based awards under the 2006 LTIP. These awards vested in two equal annual increments on the first and second anniversary of the grant date. The fair value of the awards granted was measured based on the when-issued closing price of the Company’s common stock of $19.13 on the grant date and was recognized ratably over the vesting period. Included in the 3.5&nbsp;million restricted stock awards and units issued under the 2006 LTIP described in the preceding paragraph, were 0.3&nbsp;million restricted stock awards or units issued in connection with the founders’ grant. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><I>The Western Union Company 2006 Non-Employee Director Equity Compensation Plan </I></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Western Union Company 2006 non-employee director equity compensation plan (“2006 Director Plan”) provides for the granting of equity-based awards to non-employee directors of the Company. Options granted under the 2006 Director Plan are issued with exercise prices equal to the fair market value of Western Union common stock at the grant date, have 10-year terms, and vest immediately. Since options and stock units under this plan vest immediately, compensation expense is recognized on the date of grant based on the fair market value of the awards when granted. Awards under the plan may be settled immediately unless the participant elects to defer the receipt of the common shares under applicable plan rules. A maximum of 1.5&nbsp;million shares of common stock may be awarded under the 2006 Director Plan. As of December&nbsp;31, 2008, the Company has issued 0.4&nbsp;milli on options and 0.1&nbsp;million unrestricted stock units to non-employee directors of the Company. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>First Data Stock Options and Employee Stock Purchase Plan Rights </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Prior to the Spin-off, Western Union participated in the First Data plans that provided for the granting of stock options to employees and other key individuals who performed services for the Company. Options granted under the First Data plans were issued with exercise prices equivalent to the fair market value of First Data common stock on the dates of grant, substantially all had 10-year terms and became exercisable in four equal </FONT><FONT face="Times New Roman" size=2>annual increments beginning 12 months after the dates of grant. The requisite service period for stock options was the same as the vesting period, with the exception of retirement eligible employees who have shorter requisite service periods ending when the employees become retirement eligible. Compensation expense related to stock options was recognized over the requisite service period, except as discussed further under “Stock-Based Compensation” below for certain options granted prior to the adoption of SFAS No.&nbsp;123R. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the first quarter of 2006, First Data issued restricted stock awards or restricted stock units to certain employees which were contingent upon the achievement of certain performance criterion which were met on the date of Distribution. The awards had provisions to vest at a rate of 33%&nbsp;per year on the anniversary date of the grant. The fair value of the awards granted in February 2006 were measured based on the fair market value of the shares on the date of grant. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Prior to the Spin-off, employees of the Company were able to participate in a First Data instituted employee stock purchase plan (“ESPP”). Amounts accumulated through payroll deductions elected by eligible employees were used to make quarterly purchases of First Data common stock at a 15% discount from the lower of the market price at the beginning or end of the quarter. The fair value of these awards was recognized as compensation expense in the Consolidated Statements of Income for the year ended December&nbsp;31, 2006 in accordance with the provisions of SFAS No.&nbsp;123R. Western Union has not adopted an employee stock purchase plan. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>First Data received all cash proceeds related to the exercise of stock options and ESPP shares sold by Western Union employees during all periods prior to the Spin-off. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Impact of Spin-Off to Stock–Based Awards Granted Under First Data Plans </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>At the time of the Spin-off, First Data converted stock options, restricted stock awards and restricted stock units (collectively, “Stock-Based Awards”) of First Data stock held by Western Union and First Data employees. For Western Union employees, outstanding First Data Stock-Based Awards were converted to new Western Union Stock-Based Awards at a conversion ratio of 2.1955 Western Union Stock-Based Awards for every First Data Stock-Based Award held prior to the Spin-off. The conversion was based on the pre-distribution First Data closing price with due bills of $42.00 relative to the Western Union when-issued closing price of $19.13 on September&nbsp;29, 2006. For First Data employees, each First Data Stock-Based Award held prior to the Spin-off was converted into one replacement First Data Stock-Based Award and one Western Union Stock-Based Award. The new Western Union and Fir st Data Stock-Based Awards maintained their pre-conversion aggregate intrinsic values, and, in the case of stock options, their ratio of the exercise price per share to their fair market value per share. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>All converted Stock-Based Awards, which had not vested prior to September&nbsp;24, 2007, were subject to the terms and conditions applicable to the original First Data Stock-Based Awards, including change of control provisions which required full vesting upon a change of control of First Data. Accordingly, upon the completion of the acquisition of First Data on September&nbsp;24, 2007 by an affiliate of Kohlberg Kravis Roberts&nbsp;&amp; Co.’s (“KKR”), all of these remaining converted unvested Western Union Stock-Based Awards vested. In connection with this accelerated vesting, the Company incurred a non-cash pre-tax charge of $22.3 million during the year ended December&nbsp;31, 2007 for such awards held by Western Union employees. Approximately one-third of this charge was recorded within “Cost of services” and two-thirds was recorded within “Selling, general and administrative expense” in the Consolidated Statements of Income. As a result of this accelerated vesting, there is no remaining unamortized compensation expense associated with such converted Stock-Based Awards. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The conversion of each stock option held by Western Union employees on the date of the Spin-off constituted a modification of those stock option awards under the provisions of SFAS No.&nbsp;123R resulting in total additional stock based compensation charges of $3.4 million, of which $1.5 million and $1.9 million were recognized during the years ended December&nbsp;31, 2007 and 2006, respectively. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>After the Spin-off, the Company receives all cash proceeds related to the exercise of all Western Union stock options, and recognizes all stock compensation expense and retains the resulting tax benefits relating to Western Union awards held by Western Union employees. First Data recognizes all stock-based compensation expense and retains all associated tax benefits for Western Union Stock-Based Awards held by First Data employees. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Stock Option Activity </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>A summary of Western Union stock option activity relating to Western Union and First Data employees for the year ended December&nbsp;31, 2008 is as follows (options and aggregate intrinsic value in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="56%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>Year Ended December&nbsp;31, 2008</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Options</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Weighted-Average<BR>Exercise Price</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Weighted-Average<BR>Remaining<BR>Contractual Term</B></FONT><BR><FONT face="Times New Roman" size=1><B>(Years)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Aggregate<BR>Intrinsic<BR>Value</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Outstanding at January&nbsp;1,</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>59.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.32</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Granted</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21.26</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Exercised</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(17.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16.47</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cancelled / forfeited</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22.72</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Outstanding at December&nbsp;31,</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>43.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19.11</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Western Union options exercisable at December&nbsp;31,</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.90</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.7</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company received $289.7 million, $211.8 million and $80.8 million in cash proceeds related to the exercise of stock options during the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. Upon the exercise of stock options, shares of common stock are issued from authorized common shares. The Company maintains a share repurchase program (Note 13). </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s calculated pool of excess tax benefits available to absorb write-offs of deferred tax assets in subsequent periods was approximately $15.3 million as of December&nbsp;31, 2008. The Company realized total tax benefits during the years ended December&nbsp;31, 2008, 2007 and 2006 from stock option exercises of $13.5 million, $10.7 million and $1.9 million, respectively. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The total intrinsic value of stock options exercised during the years ended December&nbsp;31, 2008, 2007 and 2006 was $134.0 million, $91.0 million and $42.1 million, respectively. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Restricted Stock Awards and Restricted Stock Units </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>A summary of Western Union activity for restricted stock awards and units relating to Western Union and First Data employees for the year ended December&nbsp;31, 2008 is listed below (awards/units in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="71%"></TD> <TD vAlign=bottom width="11%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="11%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>Year Ended December&nbsp;31,&nbsp;2008</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Number<BR>Outstanding</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Weighted-Average<BR>Grant-Date&nbsp;Fair&nbsp;Value</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Non-vested at January&nbsp;1, 2008</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19.39</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Granted</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21.86</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Vested</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19.28</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Forfeited</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20.32</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Non-vested at December&nbsp;31, 2008</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20.32</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Stock-Based Compensation </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table sets forth the total impact on earnings for stock-based compensation expense recognized in the Consolidated Statements of Income resulting from stock options, restricted stock awards, restricted stock units and ESPP rights for Western Union employees for the years ended December&nbsp;31, 2008, 2007 and 2006 (in millions, except per share data). Although Western Union has not adopted an employee stock purchase plan, the Company’s employees were allowed to participate in First Data’s ESPP prior to the Spin-off. A benefit to earnings is reflected as a positive and a reduction to earnings is reflected as a negative. </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="79%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>Year&nbsp;Ended December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Stock-based compensation expense impact on income before income taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(26.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(50.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(30.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Income tax benefit from stock-based compensation expense</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net income impact</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(18.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(35.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(20.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Earnings per share:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.03</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.05</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.03</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.03</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.05</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.03</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>As discussed previously, the Company incurred a pre-tax charge of $22.3 million during the year ended December&nbsp;31, 2007 upon the completion of the acquisition of First Data on September&nbsp;24, 2007 by an affiliate of KKR. Also included in stock-based compensation expense above for the year ended December&nbsp;31, 2006 is $6.8 million of allocated stock-based compensation related to employees of First Data providing administrative services to the Company prior to the Spin-off. There was no stock-based compensation capitalized during the years ended December&nbsp;31, 2008, 2007 and 2006. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>As of December&nbsp;31, 2008, there was $33.4 million of total unrecognized compensation cost, net of assumed forfeitures, related to non-vested stock options which is expected to be recognized over a weighted-average period of 2.6 years, and there was $10.0 million of total unrecognized compensation cost, net of assumed forfeitures, related to non-vested restricted stock awards and restricted stock units which is expected to be recognized over a weighted-average period of 1.8 years. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Fair Value Assumptions </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company used the following assumptions for the Black-Scholes option pricing model to determine the value of First Data stock options and ESPP rights granted to Western Union employees before the Spin-off and the value of Western Union options granted to such employees after the Spin-off. </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="74%"></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>Year Ended December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Stock options granted (post-spin grants):</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average risk-free interest rate</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average dividend yield</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Volatility</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>31.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>23.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected term (in years)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average fair value</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.57</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.35</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.12</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Stock options granted (pre-spin grants):</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average risk-free interest rate</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average dividend yield</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Volatility</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>23.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected term (in years)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average fair value (pre-spin)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.39</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>ESPP:</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average risk-free interest rate</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average dividend yield</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Volatility</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>23.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected term (in years)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.25</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average fair value (pre-spin)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.94</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>For periods presented prior to the spin-off date of September&nbsp;29, 2006, all stock-based compensation awards were made by First Data, and used First Data assumptions for volatility, dividend yield and term. Western Union assumptions, which are described in the paragraphs below, were utilized for grants made by Western Union on September&nbsp;29, 2006 and subsequent thereto. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2><I>Expected volatility</I>—Expected volatility varies by group based on the expected option term. For the Company’s Board of Directors and executives, the expected volatility for the 2008, 2007 and 2006 grants was 31.3%, 26.9% and 28.4%, respectively. The expected volatility for the Company’s non-executive employees was 31.9%, 22.8% and 24.7% for the 2008, 2007 and 2006 grants, respectively. Beginning in 2008, Western Union used a blend of implied volatility and peer group historical volatility. The Company’s peer group historical volatility was determined using companies in similar industries and/or market capitalization. The Company’s implied volatility was calculated using the market price of traded options on Western Union’s common stock. Prior to 2008, Western Union’s volatility was determined based entirely on the calculated peer g roup historical volatility since there was not sufficient trading history for Western Union’s common stock or traded options. Beginning in 2006, First Data used the implied volatility method for estimating expected volatility for all stock options granted and ESPP rights. First Data calculated its implied volatility using the market price of traded options on First Data’s common stock. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2><I>Expected dividend yield</I>—The Company’s expected annual dividend yield is the calculation of the annualized Western Union dividend of $0.04 per common share divided by a rolling 12 month average Western Union stock price on each respective grant date. First Data’s dividend yield was the calculation of the annualized </FONT><FONT face="Times New Roman" size=2>First Data dividend amount of $0.24 divided by a rolling 12 month average First Data stock price as of the most recent grant date for which First Data granted options to Western Union employees. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2><I>Expected term</I>—Western Union’s expected term is 5.8 years for non-executive employees, and 7.5 years for the Board of Directors and executives. The Company’s expected term of options was based upon, among other things, historical exercises (including the exercise history of First Data’s awards), the vesting term of the Company’s options, the cancellation history of the Company’s employees options in First Data stock and the options’ contractual term of ten years. First Data has also aggregated stock option awards into classes. For each class, the expected term is primarily based on the results of a study performed on the historical exercise and post-vesting employment termination behavior for similar grants. First Data’s expected terms were as follows: 4.5 years for non-executive employees, 7 years for the Board of Directors and 7.5 years for its executives. The expected term of ESPP rights were determined to be 0.25 years as purchase rights are achieved over the course of the quarter in which the employee participated in the ESPP. Once the shares have been purchased, the employee can sell their respective shares. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2><I>Risk-free interest rate</I>—The risk-free rate for stock options granted during the period is determined by using a U.S. Treasury rate for the period that coincided with the expected terms listed above. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The assumptions used to calculate the fair value of options granted will be evaluated and revised, as necessary, to reflect market conditions and the Company’s historical experience and future expectations. The calculated fair value is recognized as compensation cost in the Company’s financial statements over the requisite service period of the entire award. Compensation cost is recognized only for those options expected to vest, with forfeitures estimated at the date of grant and evaluated and adjusted periodically to reflect the Company’s historical experience and future expectations. Any change in the forfeiture assumption will be accounted for as a change in estimate, with the cumulative effect of the change on periods previously reported being reflected in the financial statements of the period in which the change is made. In the future, as more historical data is availab le to calculate the volatility of Western Union stock and the actual terms Western Union employees hold options, expected volatility and expected term may change which could substantially change the grant-date fair value of future stock option awards and, ultimately, the recorded compensation expense. </FONT></P> -100000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>8. Fair Value Measurements </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>As discussed in Note 2, the Company adopted the provisions of SFAS No.&nbsp;157 on January&nbsp;1, 2008. SFAS No.&nbsp;157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For additional information on how Western Union measures fair value, refer to Note 2, “Summary of Significant Accounting Policies.” </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table reflects assets and liabilities that are measured and carried at fair value on a recurring basis as of December&nbsp;31, 2008 (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="48%"></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=8><FONT face="Times New Roman" size=1><B>Fair&nbsp;Value&nbsp;Measurement&nbsp;Using</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2 rowSpan=2><FONT face="Times New Roman" size=1><B>Assets/Liabilities</B></FONT><BR><FONT face="Times New Roman" size=1><B>at Fair Value</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;1&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;2&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;3&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and municipal debt instruments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>401.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>401.7</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt securities issued by foreign governments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.9</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Derivatives</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>116.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>116.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>522.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>522.4</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Liabilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Derivatives</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total liabilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> 1238700000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>10. Income Taxes </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The components of pretax income, generally based on the jurisdiction of the legal entity, are as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="73%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=8><FONT face="Times New Roman" size=1><B>Year Ended December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Components of pretax income:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Domestic</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>416.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>529.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>707.1</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>822.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>693.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>628.0</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,238.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,222.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,335.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The provision for income taxes is as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="73%"></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=8><FONT face="Times New Roman" size=1><B>Year Ended December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Federal</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>234.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>287.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>331.1</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and local</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>30.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34.5</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>54.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>51.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>55.5</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>319.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>365.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>421.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Domestic taxes have been incurred on certain pre-tax income amounts that were generated by the Company’s foreign operations. Accordingly, the percentage obtained by dividing the total federal, state and local tax provision by the domestic pretax income, all as shown in the preceding tables, may be higher than the statutory tax rates in the United States. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s effective tax rates differ from statutory rates as follows: </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="81%"></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=7><FONT face="Times New Roman" size=1><B>Year&nbsp;Ended&nbsp;December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2008&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2007&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>&nbsp;&nbsp;2006&nbsp;&nbsp;</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Federal statutory rate</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>35.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>35.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>35.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State income taxes, net of federal income tax benefits</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign rate differential</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(11.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Federal tax credits</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Effective tax rate</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>25.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>31.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union’s provision for income taxes consists of the following components (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="79%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=9><FONT face="Times New Roman" size=1><B>Year Ended December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Current:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Federal</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>219.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>284.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>314.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and local</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>25.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>33.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>49.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>50.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>61.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total current taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>303.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>360.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>408.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Federal</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>17.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and local</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(4.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(5.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total deferred taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>319.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>365.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>421.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of Western Union’s assets and liabilities. The following table outlines the principal components of deferred tax items (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="86%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred tax assets related to:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Reserves and accrued expenses</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>45.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>40.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Pension obligations</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>39.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>11.8</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred revenue</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.4</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14.3</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total deferred tax assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>94.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>70.7</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred tax liabilities related to:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Property, equipment and intangibles</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>349.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>321.8</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.5</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total deferred tax liabilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>364.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>334.3</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net deferred tax liability</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>270.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>263.6</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Uncertain Tax Positions </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company has established contingency reserves for material, known tax exposures, including potential tax audit adjustments with respect to its international operations, which were restructured in 2003. The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review. While the Company believes its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Company’s income tax expense would include (i)&nbsp;any changes in tax reserves arising from material changes during the period in the facts and circumstances (i.e. new information) surrounding a tax issue, and (ii)&nbsp;any difference from the Company ’s tax position as recorded in the financial statements and the final resolution of a tax issue during the period. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company adopted the provisions of FIN 48 on January&nbsp;1, 2007. The cumulative effect of applying this interpretation resulted in a reduction of $0.6 million to the January&nbsp;1, 2007 balance of retained earnings. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s financial statements, and are reflected in “Income taxes payable” in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="81%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance at January&nbsp;1,</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>251.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>166.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Increases—positions taken in current period (a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>93.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>78.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Increases—positions taken in prior periods (b)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>28.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Decreases—positions taken in prior periods</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Decreases—settlements with taxing authorities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Decreases—lapse of applicable statute of limitations</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(4.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(4.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance at December&nbsp;31,</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>361.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>251.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes recurring accruals for issues which initially arose in previous periods. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(b)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Changes to positions taken in prior periods relate to changes in estimates used to calculate prior period unrecognized tax benefits. </FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>A substantial portion of the Company’s unrecognized tax benefits relate to the 2003 restructuring of the Company’s international operations whereby the Company’s income from certain foreign-to-foreign money transfer transactions has been taxed at relatively low foreign tax rates compared to the Company’s combined federal and state tax rates in the United States. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $352.4 million and $243.2 million as of December&nbsp;31, 2008 and 2007, respectively, excluding interest and penalties. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company recognizes interest and penalties with respect to unrecognized tax benefits in income tax expense and records the associated liability in “Income taxes payable” in its Consolidated Balance Sheets. The Company recognized $11.6 million, $13.5 million and $5.6 million in interest and penalties during the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. The Company has accrued $35.8 million and $24.8 million for the payment of interest and penalties at December&nbsp;31, 2008 and 2007, respectively. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company has identified no uncertain tax position for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within 12 months, except for recurring accruals on existing uncertain tax positions. The change in unrecognized tax benefits during the years ended December&nbsp;31, 2008 and 2007 is substantially attributable to such recurring accruals and the resolution of certain tax Spin-off matters with First Data. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company and its subsidiaries file tax returns for the United States, for multiple states and localities, and for various non-United States jurisdictions, and the Company has identified the United States and Ireland as its two major tax jurisdictions. The United States federal income tax returns of First Data, which include the Company, are eligible to be examined for the years 2002 through 2006. The Company’s United States federal income tax returns since the Spin-off are also eligible to be examined. The United States Internal Revenue Service (“IRS”) has issued a report of the results of its examination of the United States federal consolidated income tax return of First Data for 2002, and the Company believes that the resolution of the adjustments that </FONT><FONT face="Times New Roman" size=2>affect the Company proposed in the report will not result in a ma terial change to the Company’s financial position. In addition, the IRS completed its examination of the United States federal consolidated income tax returns of First Data for 2003 and 2004, which included the Company, and issued a Notice of Deficiency in December 2008. The Notice of Deficiency alleges significant additional taxes, interest and penalties owed with respect to a variety of adjustments involving the Company and its subsidiaries, and the Company generally has responsibility for taxes associated with these potential Company-related adjustments under the tax allocation agreement with First Data executed at the time of the Spin-off. The Company agrees with a number of the adjustments in the Notice of Deficiency; however, the Company does not agree with the Notice of Deficiency regarding several substantial adjustments representing total alleged additional tax and penalties due of approximately $114 million. As of December 31, 2008, interest on the alleged amounts due for unagreed adjustment s would be approximately $23 million. A substantial part of the alleged amounts due for these unagreed adjustments relates to the Company’s international restructuring, which took effect in the fourth quarter 2003, and, accordingly, the alleged amounts due related to such restructuring largely are attributable to 2004. The Company expects to contest those adjustments with which it does not agree with by filing a petition in the United States Tax Court. The Company believes its overall reserves are adequate, including those associated with the adjustments alleged in the Notice of Deficiency. If the IRS’ position in the Notice of Deficiency is sustained, the Company’s tax provision related to 2003 and later years would materially increase. The Irish income tax returns of certain subsidiaries for the years 2004 and forward are eligible to be examined by the Irish tax authorities, although no examinations have commenced. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>At December&nbsp;31, 2008, no provision had been made for United States federal and state income taxes on foreign earnings of approximately $1.6 billion, which are expected to be reinvested outside the United States indefinitely. Upon distribution of those earnings to the United States in the form of actual or constructive dividends, the Company would be subject to United States income taxes (subject to an adjustment for foreign tax credits), state income taxes and possible withholding taxes payable to various foreign countries. Determination of this amount of unrecognized deferred United States tax liability is not practicable because of the complexities associated with its hypothetical calculation. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Tax Allocation Agreement with First Data </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company and First Data each are liable for taxes imposed on their respective businesses both prior to and after the Spin-off. If such taxes have not been appropriately apportioned between First Data and the Company, subsequent adjustments may occur that may impact the Company’s financial position or results of operations. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Also under the tax allocation agreement, with respect to taxes and other liabilities that result from a final determination that is inconsistent with the anticipated tax consequences of the Spin-off (as set forth in the private letter ruling and relevant tax opinion), (“Spin-off Related Taxes”), the Company will be liable to First Data for any such Spin-off Related Taxes attributable solely to actions taken by or with respect to the Company. In addition, the Company will also be liable for 50% of any Spin-off Related Taxes (i)&nbsp;that would not have been imposed but for the existence of both an action by the Company and an action by First Data or (ii)&nbsp;where the Company and First Data each take actions that, standing alone, would have resulted in the imposition of such Spin-off Related Taxes. The Company may be similarly liable if it breaches certain representations or covenants set forth in the tax allocation agreement. If the Company is required to indemnify First Data for taxes incurred as a result of the Spin-off being taxable to First Data, it likely would have a material adverse effect on the Company’s business, financial position and results of operations. First Data generally will be liable for all Spin-off Related Taxes, other than those described above. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> 319700000 230300000 35200000 91200000 -6900000 -27500000 171200000 171600000 45200000 -1297700000 -453700000 1253900000 919000000 -116300000 1355000000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>12. Operating Lease Commitments </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union leases certain real properties for use as customer service centers and administrative and sales offices. Western Union also leases data communications terminals, computers and office equipment. Certain of these leases contain renewal options and escalation provisions. Total rent expense under operating leases was $39.7 million, $31.6 million and $29.2 million during the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>As of December&nbsp;31, 2008, the minimum aggregate rental commitments under all noncancelable operating leases, net of sublease income commitments aggregating $8.2 million through 2014, are as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="84%" align=center border=0> <TBODY> <TR> <TD width="89%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> <P style="WIDTH: 92pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>Year Ending December&nbsp;31,</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2009</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>23.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2010</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>17.5</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2011</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.9</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2012</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2013</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.2</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Thereafter</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.3</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total future minimum lease payments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>102.6</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>1. Formation of the Entity and Basis of Presentation </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 3px; VERTICAL-ALIGN: top; TEXT-INDENT: 4%; LINE-HEIGHT: 95%"><FONT face="Times New Roman" size=2>The Western Union Company (“Western Union” or the “Company”) is a leader in global money transfer, providing people with fast, reliable and convenient ways to send money around the world. The Western Union<FONT face="Times New Roman" size=1><SUP>®</SUP></FONT> brand is globally recognized. The Company’s services are available through a network of agent locations in more than 200 countries and territories. Each location in the Company’s agent network is capable of providing one or more of the Company’s services. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Western Union business consists of the following segments: </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Consumer-to-consumer—money transfer services between consumers, primarily through a global network of third-party agents using the Company’s multi-currency, real-time money transfer processing systems. This service is available for international cross-border transfers—that is, the transfer of funds from one country to another—and, in certain countries, intra-country transfers—that is, money transfers from one location to another in the same country. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Consumer-to-business—the processing of payments from consumers to businesses and other organizations that receive consumer payments, including utilities, auto finance companies, mortgage servicers, financial service providers and government agencies, referred to as “billers,” through Western Union’s network of third-party agents and various electronic channels. The segment’s revenue was primarily generated in the United States during all periods presented. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 3px; VERTICAL-ALIGN: top; TEXT-INDENT: 4%; LINE-HEIGHT: 95%"><FONT face="Times New Roman" size=2>All businesses that have not been classified into the consumer-to-consumer or consumer-to-business segments are reported as “Other” and include the Company’s money order and prepaid services businesses. The Company’s money orders are issued by Integrated Payment Systems Inc. (“IPS”), a subsidiary of First Data Corporation (“First Data”), to consumers at retail locations primarily in the United States and Canada. See Note 7, “Investment Securities” for discussion regarding the agreement executed between the Company and IPS on July&nbsp;18, 2008 whereby the Company will assume the responsibility for issuing money orders effective October&nbsp;1, 2009. Western Union also markets a Western Union branded prepaid MasterCard<FONT face="Times New Roman" size=1>< ;SUP>®</SUP></FONT> card, a Western Union branded prepaid Visa<FONT face="Times New Roman" size=1><SUP>®</SUP></FONT> card, and provides top-up services for third parties that allow consumers to pay in advance for mobile phone and other services. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these assets are located, or which constitute undistributed earnings of affiliates of the Company accounted for under the equity method of accounting. However, there are generally no limitations on the use of these assets within those countries. As of December&nbsp;31, 2008, the amount of net assets subject to these limitations totaled approximately $193 million. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Various aspects of the Company’s services and businesses are subject to United States federal, state and local regulation, as well as regulation by foreign jurisdictions, including certain banking and other financial services regulations. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Spin-off from First Data </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On January&nbsp;26, 2006, the First Data Board of Directors announced its intention to pursue the distribution of 100% of its money transfer and consumer payments businesses and its interest in a Western Union money transfer agent, as well as related assets, including real estate, through a tax-free distribution to First Data shareholders (the “Separation” or “Spin-off”).&nbsp;Effective on September&nbsp;29, 2006, First Data completed the separation and the distribution of these businesses by distributing The Western Union Company common stock to First Data shareholders (the “Distribution”). Prior to the Distribution, the Company had been a segment of First Data. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In connection with the Spin-off, the Company reported a $4.1 billion dividend to First Data in the accompanying consolidated statements of stockholders’ (deficiency)/equity/net investment in The Western Union Company, consisting of the issuance of $3.4 billion in debt and a cash payment to First Data of $100.0 million. The remaining dividend was comprised of cash, consideration for an ownership interest held by a First Data subsidiary in a Western Union agent which had already been reflected as part of the Company, settlement of net intercompany receivables (exclusive of certain intercompany notes as described in the following paragraph), and transfers of certain liabilities, net of assets. Since the amount of the dividend exceeded the historical cost of the Company’s net assets at the time of the Spin-off, a capital deficiency resulted. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company also settled certain intercompany notes receivable and payable with First Data along with related interest and currency swap agreements associated with such notes as part of the Spin-off. The net settlement of the principal and related swaps resulted in a net cash inflow of $724.0 million to the Company’s cash flows from financing activities. The net settlement of interest on such notes receivable and payable of $40.7&nbsp;million was reflected in cash flows from operating activities in the Company’s Consolidated Statement of Cash Flows. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>As part of the Spin-off, the Company also executed several non-cash transactions, including the issuance of $1.0 billion in notes to First Data in partial consideration for the contribution by First Data to the Company of its money transfer and consumer payments businesses (Note 15). The Company did not receive any proceeds from the subsequent private offering of the notes. In addition, First Data transferred to the Company its headquarters in Englewood, Colorado and certain other fixed assets with a net book value of $66.5 million, the Company transferred to First Data certain investments with a net book value of $20.9 million, and reclassified certain tax and employee-related obligations from intercompany liabilities totaling $193.8 million. First Data also distributed 765.3&nbsp;million shares of Western Union’s common stock to holders of First Data common stock. </FONT></P& gt; <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Basis of Presentation </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The financial statements in this Annual Report on Form 10-K for periods ending on or after the Distribution are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. The financial statements for the period presented prior to the Distribution are presented on a combined basis and represent those entities that were ultimately transferred to the Company as part of the Spin-off. The assets and liabilities presented have been reflected on a historical basis, as prior to the Distribution such assets and liabilities presented were 100% owned by First Data. The Consolidated Statement of Income for the year ended December&nbsp;31, 2006 includes expense allocations for certain corporate functions historically provided to Western Union by First Data, including treasury, tax, accounting and reporting, mergers and acquisitions, risk management, legal, internal audit, procurement, human resources, investor relations and information technology. If possible, these allocations were made on a specific identification basis. Otherwise, the expenses related to services provided to Western Union by First Data were allocated to Western Union based on the relative percentages, as compared to First Data’s other businesses, of headcount or other appropriate methods depending on the nature of each item of cost to be allocated. However, the financial statements for the period presented prior to the Distribution do not include all of the actual expenses that would have been incurred had Western Union been a stand-alone entity during the period presented and do not reflect Western Union’s combined results of operations and cash flows had Western Union been a stand-alone company during the period presented. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>All significant intercompany transactions and accounts have been eliminated. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Consistent with industry practice, the accompanying Consolidated Balance Sheets are unclassified due to the short-term nature of Western Union’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> 42900000 1200000 -46400000 -5200000 89200000 16600000 1314500000 28400000 42800000 0 82800000 1000000 53900000 17000000 0 -255300000 41900000 500000000 300500000 <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>19. Quarterly Financial Information (Unaudited) </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Summarized quarterly results for the years ended December&nbsp;31, 2008 and 2007 are as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="55%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> <P style="WIDTH: 59pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>2008 by Quarter:</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q1</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q2</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q3</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q4</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Year Ended<BR>December&nbsp;31,<BR>2008</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Revenues</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,265.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,347.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,377.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,291.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,282.0</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expenses (a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>956.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,010.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,002.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>957.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,927.0</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other expense, net</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>28.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>42.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>116.3</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Income before income taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>292.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>308.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>333.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>305.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,238.7</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Provision for income taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>85.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>76.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>92.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>65.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>319.7</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>207.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>231.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>240.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>239.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>919.0</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Earnings per share:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.28</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.31</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.33</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.34</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.26</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.27</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.31</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.33</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.34</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.24</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average shares outstanding:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>746.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>736.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>724.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>712.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>730.1</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>756.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>747.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>737.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>713.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>738.2</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes $24.2 million in the first quarter, $22.9 million in the second quarter, $3.2 million in the third quarter and $32.6 million in the fourth quarter of restructuring and related expenses. For more information, see Note 3, “Restructuring and Related Expenses.” </FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="55%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> <P style="WIDTH: 59pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>2007 by Quarter:</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q1</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q2</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q3</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Q4</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Year Ended<BR>December&nbsp;31,<BR>2007</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Revenues</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,131.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,202.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,257.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,309.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,900.2</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expenses (b)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>826.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>880.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>927.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>944.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,578.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other expense, net</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>23.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>99.6</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Income before income taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>282.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>298.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>306.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>335.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,222.4</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Provision for income taxes</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>88.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>93.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>90.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>91.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>365.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>204.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>216.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>243.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>857.3</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Earnings per share:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.25</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.27</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.29</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.32</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.13</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.25</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.26</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.28</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.32</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.11</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Weighted-average shares outstanding:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>768.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>764.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>757.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>749.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>760.2</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>783.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>779.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>767.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>761.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>772.9</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(b)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes a non-cash pre-tax stock compensation accelerated vesting charge of $22.3 million during the third quarter of 2007. For more information, see Note 16. </FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>5. Related Party Transactions </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Related Party Transactions with First Data </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Consolidated Statement of Income for the year ended December&nbsp;31, 2006 prior to the Spin-off includes expense allocations for certain corporate functions historically provided to Western Union by First Data. If possible, these allocations were made on a specific identification basis. Otherwise, the expenses related to services provided to Western Union by First Data were allocated to Western Union based on relative percentages, as compared to First Data’s other businesses, of headcount or other appropriate methods depending on the nature of each item or cost to be allocated. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Charges for functions historically provided to Western Union by First Data are primarily attributable to First Data’s performance of many shared services that the Company utilized prior to the Spin-off. First Data continued to provide certain of these services subsequent to the Spin-off through a transition services agreement until September&nbsp;29, 2007. In addition, prior to the Spin-off, the Company participated in certain First Data insurance, benefit and incentive plans, and it received services directly related to the operations of its businesses such as call center services, credit card processing, printing and mailing. The Consolidated Statement of Income reflects charges incurred prior to the Spin-off from First Data and its affiliates for these services of $152.4 million for the year ended December&nbsp;31, 2006. Included in these charges are amounts recognized for stock-b ased compensation expense, as well as net periodic benefit income associated with the Company’s pension plans. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Included in “Interest income from First Data, net” in the Consolidated Statement of Income for the year ended December&nbsp;31, 2006 was interest income of $37.4 million earned on notes receivable from First Data subsidiaries and interest expense of $1.7 million incurred on notes payable to First Data which were settled in connection with the Spin-off. Certain of the notes receivable were euro denominated, and as such, the Company had related foreign currency swap agreements to mitigate the foreign exchange impact to the Company on such notes. Included in “Foreign exchange effect on notes receivable from First Data, net” in the Consolidated Statement of Income during the year ended December&nbsp;31, 2006 are foreign exchange gains of $10.1 million from the revaluation of these euro denominated notes receivable and related foreign currency swap agreements. </F ONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the period from January&nbsp;1, 2006 through September&nbsp;29, 2006, the Company recognized commission revenues from a First Data subsidiary in connection with its money order business of $23.6 million. Subsequent to the Spin-off, the Company continues to recognize commission revenue from this First Data subsidiary. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Other Related Party Transactions </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company has ownership interests in certain of its agents accounted for under the equity method of accounting. The Company pays these agents, as it does its other agents, commissions for money transfer and other services provided on the Company’s behalf. Commissions paid to these agents for the years ended December&nbsp;31, 2008, 2007 and 2006 totaled $305.9 million, $256.6 million and $212.2 million, respectively. For those agents where an ownership interest was acquired during the year, only amounts paid subsequent to the investment date have been reflected as a related party transaction. </FONT></P> 500000000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>3. Restructuring and Related Expenses </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><I>Missouri and Texas Closures </I></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On February&nbsp;25, 2008, the Company decided to pursue decision bargaining negotiations with our union employees regarding the possible closure of the Company’s facilities in Missouri and Texas. On March&nbsp;14, 2008, the Company announced its decision to close substantially all of its facilities in Missouri and Texas and enter into effects bargaining with the union regarding severance and other benefits for the approximately 650 affected union employees, responsible for performing certain call center, settlement and operational accounting functions. On May&nbsp;29, 2008, the Company and the union entered into a Memorandum of Agreement which resolved the effects of the restructuring decisions on the affected union employees and concluded that the Company’s collective bargaining agreement with the union would not be renewed. The decision also resulted in the elimination of certain management positions in these same facilities. The Company completed the transition of these operations to existing Company facilities and third-party providers during the fourth quarter of 2008. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In conjunction with the decision, the Company incurred severance and employee related benefit expenses for all union and certain affected management employees, facility closure expenses and other expenses associated with the relocation of these operations to existing Company facilities and third-party providers, including costs related to hiring, training, relocation, travel and professional fees. Included in the facility closure expenses are non-cash expenses related to fixed asset and leasehold improvement write-offs and acceleration of depreciation and amortization. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><I>Other Reorganizations </I></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During 2008, in addition to the Missouri and Texas closures, the Company restructured some of its operations and relocated or eliminated certain shared service and call center positions. The relocated positions were moved to the Company’s existing facilities or outsourced service providers. The Company has incurred all of the expenses related to these reorganization activities during 2008 and expects substantially all remaining accruals, primarily related to severance for terminated employees, to be paid in 2009. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><I>Activity </I></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table summarizes the activity for the restructuring and related expenses discussed above and the related restructuring accruals for the year ended December&nbsp;31, 2008 (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="58%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Severance<BR>and<BR>Employee<BR>Related</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Asset Write-<BR>Offs and<BR>Incremental<BR>Depreciation</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Lease<BR>Terminations</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Other&nbsp;(e)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Total</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><I>Missouri and Texas Closures:</I></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance, December&nbsp;31, 2007</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expenses (a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>46.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash payments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(17.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(17.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(36.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Non-cash (charges)/benefits (a):</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Loan assumption (b)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Employee related costs (c)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Asset write-offs (d)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance, December&nbsp;31, 2008</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><I>Other Reorganizations:</I></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance, December&nbsp;31, 2007</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expenses (a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>31.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>36.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash payments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(8.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(4.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(12.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Non-cash charges (a):</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Asset write-offs (d)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Stock compensation charges (f)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance, December&nbsp;31, 2008</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><I>Total Plans:</I></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance, December&nbsp;31, 2007</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expenses (a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>44.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>82.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash payments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(25.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(21.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(49.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Non-cash (charges)/benefits (a):</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Loan assumption (b)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Employee related costs (c)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Asset write-offs (d)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Stock compensation charges (f)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance, December&nbsp;31, 2008</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>25.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Non-cash expenses and expense reductions discussed in footnotes (b), (c), (d)&nbsp;and (f)&nbsp;below are included in “Expenses.” However, these amounts were recognized outside of the restructuring accrual. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(b)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>In connection with the termination of a lease, the Company assumed a market rate loan from the landlord, which is included in other borrowings as of December 31, 2008, in lieu of a cash payment. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(c)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Employee related costs include an expense reduction from the curtailment of certain employee benefits and additional employee benefit plan costs. The curtailment of certain employee benefits relates to accrued benefits for certain union employees, where the union employees were no longer entitled to such benefits upon the expiration of the union contract in August 2008. Such curtailment resulted in a reduction to expenses of $9.5 million. The offsetting employee benefit plan costs of $2.8 million relate to the termination of certain retirement eligible union and management plan participants in our defined benefit pension plans. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(d)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Asset write-offs include write-offs of fixed assets and leasehold improvements and accelerated depreciation and amortization. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(e)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Other expenses related to the relocation of various operations to existing Company facilities and third-party providers include hiring, training, relocation, travel and professional fees. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(f)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Stock compensation charges represent costs associated with the modification of stock options and restricted stock awards and units for terminated employees. </FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Restructuring and related expenses are reflected in the Consolidated Statements of Income as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="84%" align=center border=0> <TBODY> <TR> <TD width="79%"></TD> <TD vAlign=bottom width="17%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Year Ended<BR>December&nbsp;31,&nbsp;2008</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cost of services</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>62.8</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Selling, general and administrative</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total restructuring and related expenses, pre-tax</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>82.9</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total restructuring and related expenses, net of tax</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>51.6</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>While these items are identifiable to the Company’s segments, these expenses have been excluded from the measurement of segment operating profit provided to the chief operating decision maker (“CODM”) for purposes of assessing segment performance and decision making with respect to resource allocation. Of the Company’s total restructuring and related expenses of $82.9 million, $56.1 million, $23.4 million and $3.4 million are attributable to the Company’s consumer-to-consumer, consumer-to-business and other segments, respectively. </FONT></P> 144900000 5282000000 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>15. Borrowings </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s outstanding borrowings at December&nbsp;31, 2008 and 2007 consist of the following (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="52%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>December&nbsp;31, 2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>December&nbsp;31, 2007</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Carrying&nbsp;Value</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair&nbsp;Value&nbsp;(d)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Carrying&nbsp;Value</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair&nbsp;Value&nbsp;(d)</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due in less than one year:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Commercial paper</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>82.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>82.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>338.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>338.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Term loan</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>500.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>500.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Floating rate notes, due November 2008 (a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>500.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>495.2</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD> <TD colSpan=3 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due in greater than one year:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>5.400% notes, net of discount, due 2011 (b)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,042.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>962.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,002.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,012.0</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>5.930% notes, net of discount, due 2016 (c)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,014.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>903.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>999.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,001.2</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>6.200% notes, net of discount, due 2036</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>497.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>391.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>497.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>473.1</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other borrowings</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total borrowings</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,143.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,846.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,338.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,319.7</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The floating rate notes were redeemed upon maturity on November&nbsp;17, 2008. </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(b)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>At December&nbsp;31, 2008 and 2007, the Company held interest rate swaps related to the 5.400% notes due 2011 (“2011 Notes”) with an aggregate notional amount of $550 million and $75 million, respectively. The carrying value of the 2011 Notes has been adjusted for the impact of these hedges. During the fourth quarter of 2008, the Company terminated an aggregate notional amount of $195 million of interest rate swaps. The Company received cash of $10.7 million on the termination of these swaps, the offset of which is reflected in “Borrowings” and will be reclassified as a reduction to “Interest expense” over the life of the 2011 notes. For further information regarding the interest rate swaps, refer to Note 14, “Derivatives.” </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(c)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>At December&nbsp;31, 2008, the Company held an interest rate swap related to the 5.930% notes due 2016 (“2016 Notes”) with an aggregate notional amount of $110 million. The carrying value of the 2016 Notes has been adjusted for the impact of these hedges. For further information regarding the interest rate swap, refer to Note 14, “Derivatives.” </FONT></TD></TR></TBODY></TABLE> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(d)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>The fair value of commercial paper approximates its carrying value due to the short term nature of the obligations. The fair value of the term loan approximates its carrying value as it is a variable rate loan and Western Union credit spreads did not move significantly between the date of the borrowing (December 5, 2008) and December&nbsp;31, 2008. The fair value of the fixed rate notes is determined by obtaining quotes from multiple, independent banks. </FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Exclusive of discounts and the fair value of the interest rate swaps, maturities of borrowings as of December&nbsp;31, 2008 are $582.9 million in 2009, $1.0 billion in 2011 and $1.5 billion thereafter. There are no contractual maturities on borrowings during 2010 and 2012. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s obligations with respect to its outstanding borrowings, as described below, rank equally. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Commercial Paper Program </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On November&nbsp;3, 2006, the Company established a commercial paper program pursuant to which the Company may issue unsecured commercial paper notes (the “Commercial Paper Notes”) in an amount not to exceed $1.5 billion outstanding at any time. The Commercial Paper Notes may have maturities of up to 397 days from date of issuance. Interest rates for borrowings are based on market rates at the time of issuance. The Company’s commercial paper borrowings at December&nbsp;31, 2008 and 2007 had weighted-average interest rates of approximately 4.1% and 5.5%, respectively, and weighted-average initial terms of 27 days and 36 days, respectively. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Revolving Credit Facility </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On September&nbsp;27, 2006, the Company entered into a five-year unsecured revolving credit facility, which includes a $1.5 billion revolving credit facility, a $250.0 million letter of credit sub-facility and a $150.0 million swing line sub-facility (the “Revolving Credit Facility”). The Revolving Credit Facility contains certain covenants that, among other things, limit or restrict the ability of the Company and other significant subsidiaries to grant certain types of security interests, incur debt or enter into sale and leaseback transactions. The Company is also required to maintain compliance with a consolidated interest coverage ratio covenant. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On September&nbsp;28, 2007, the Company entered into an amended and restated credit agreement, the primary purpose of which was to extend the maturity by one year from its original five-year $1.5 billion facility entered into in 2006. No other material changes were made in the amended and restated facility. As of December&nbsp;31, 2008, the Company had $1.4 billion available to borrow, which is net of the Company’s current commercial paper borrowings backed by this revolving credit facility. The revolving credit facility, which is diversified through a group of globally recognized banks, is used to provide general liquidity for the Company and to support the commercial paper program, which the Company believes enhances its short-term credit rating. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Interest due under the Revolving Credit Facility is fixed for the term of each borrowing and is payable according to the terms of that borrowing. Generally, interest is calculated using a selected LIBOR rate plus an interest rate margin of 19 basis points. A facility fee of 6 basis points on the total facility is also payable quarterly, regardless of usage. The facility fee percentage is determined based on the Company’s credit rating assigned by Standard&nbsp;&amp; Poor’s Ratings Services (“S&amp;P”) and/or Moody’s Investor Services, Inc. (“Moody’s”). </FONT><FONT face="Times New Roman" size=2>In addition, to the extent the aggregate outstanding borrowings under the Revolving Credit Facility exceed 50% of the related aggregate commitments, a utilization fee of 5 basis points as of December&nbsp;31, 2008 based upon such ratings is payable to the lenders on the aggregate outstanding borrowings. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Term Loan </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On December&nbsp;5, 2008, the Company entered into a senior, unsecured, 364-day term loan in an aggregate principal amount of $500 million (the “Term Loan”) with a syndicate of lenders. The Term Loan contains covenants which, among other things, limit or restrict the Company’s ability to sell or transfer assets or enter into a merger or consolidate with another company, grant certain types of security interests, incur certain types of liens, impose restrictions on subsidiary dividends, enter into sale and leaseback transactions, or incur certain subsidiary level indebtedness. The Company is also required to maintain compliance with a consolidated interest coverage ratio covenant. Prepayments of loans are allowed and are required based on the cash proceeds from other indebtedness, issuance of equity, or sale of assets over $250 million. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Term Loan allows the selection between two different respective interest rate calculations. For the current interest rate, the Company selected an interest rate calculated using the one-month LIBOR plus a 2% applicable margin (3.875% at December&nbsp;31, 2008).<B> </B>A loan fee is also payable quarterly, beginning December&nbsp;31, 2008, on the total loan (50 basis points as of December&nbsp;31, 2008). The applicable margin and loan fee percentage are determined based on our credit ratings assigned by S&amp;P and/or Moody’s. A duration fee is payable 90 days and 180 days after the closing date of December&nbsp;5, 2008 equal to 0.25% and 0.50%, respectively, of the loan balance on each date. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Notes </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On September&nbsp;29, 2006, the Company issued to First Data $1.0 billion aggregate principal amount of unsecured notes maturing on October&nbsp;1, 2016 in partial consideration for the contribution by First Data to the Company of its money transfer and consumer payments businesses in connection with the Spin-off. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Interest on the 2016 Notes is payable semiannually on April&nbsp;1 and October&nbsp;1 each year based on a fixed per annum interest rate of 5.930%. The indenture governing the 2016 Notes contains covenants that, among other things, limit or restrict the ability of the Company and other significant subsidiaries to grant certain types of security interests, incur debt (in the case of significant subsidiaries) or enter into sale and leaseback transactions. The Company may redeem the 2016 Notes at any time prior to maturity at the applicable treasury rate plus 20 basis points. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On November&nbsp;17, 2006, the Company issued $2 billion aggregate principal amount of the Company’s unsecured fixed and floating rate notes, comprised of $500 million aggregate principal amount of the Company’s Floating Rate Notes due 2008 (the “Floating Rate Notes”), $1 billion aggregate principal amount of 5.400% Notes due 2011 and $500 million aggregate principal amount of 6.200% Notes due 2036 (the “2036 Notes”). The Floating Rate Notes were redeemed upon maturity in November 2008. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Interest with respect to the 2011 Notes and 2036 Notes is payable semiannually on May&nbsp;17 and November&nbsp;17 each year based on fixed per annum interest rates of 5.400% and 6.200%, respectively. The indenture governing the 2011 Notes and 2036 Notes contains covenants that, among other things, limit or restrict the ability of the Company and other significant subsidiaries to grant certain types of security interests, incur debt (in the case of significant subsidiaries), or enter into sale and leaseback transactions. The Company may redeem the 2011 Notes and the 2036 Notes at any time prior to maturity at the applicable treasury rate plus 15 basis points and 25 basis points, respectively. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>17. Segments </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>As previously described in Note 1, the Company classifies its businesses into two reportable segments: consumer-to-consumer and consumer-to-business. Operating segments are defined by SFAS No.&nbsp;131, “<I>Disclosures About Segments of an Enterprise and Related Information</I>,” as components of an enterprise which constitute businesses, about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding where to allocate resources and in assessing performance. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The consumer-to-consumer reporting segment is viewed as one global network where a money transfer can be sent from one location to another, anywhere in the world. The segment is now managed as two regions, primarily to coordinate agent network management and marketing activities. The CODM makes decisions regarding resource allocation and monitors performance based on specific corridors within and across these regions, but also reviews total revenue and operating profit of each region. These regions frequently interact on transactions with consumers and share processes, systems and licenses, thereby constituting one global consumer-to-consumer money transfer network. Each region and corridor also offer generally the same services distributed by the same agent network, have the same types of customers, are subject to similar regulatory requirements, are processed on the same system, and have similar economic characteristics, allowing the geographic regions to be aggregated into one reporting segment. </FONT><FONT face="Times New Roman" size=2>Consumer-to-consumer segment revenue typically increases sequentially from the first quarter to the fourth quarter each year and declines from the fourth quarter to the first quarter of the following year. This seasonal fluctuation is related to the holiday season in various countries in the fourth quarter. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>All businesses that have not been classified into consumer-to-consumer or consumer-to-business are reported as “Other.” These businesses primarily include the Company’s money order and prepaid services businesses. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s reportable segments are reviewed separately below because each reportable segment represents a strategic business unit that offers different products and serves different markets. The business segment measurements provided to, and evaluated by, the Company’s CODM are computed in accordance with the following principles: </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Corporate and other overhead is allocated to the segments primarily based on a percentage of the segments’ revenue. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Expenses incurred in connection with the development of certain new service offerings, including costs to develop mobile money transfer services, new prepaid service offerings and non-recurring costs incurred to effect the Spin-off are included in “Other”. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Restructuring and related activities of $82.9 million for the year ended December&nbsp;31, 2008 have not been allocated to the segments. While these items are identifiable to the Company’s segments, they are not included in the measurement of segment operating profit provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation. For additional information on restructuring and related activities refer to Note 3. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>In connection with the change in control of First Data, the Company incurred an accelerated stock-based compensation vesting charge of $22.3 million during the year ended December&nbsp;31, 2007. Of the $22.3 million charge, $18.9 million, $3.0 million and $0.4 million were allocated to the consumer-to-consumer, consumer-to-business and other segments, respectively. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>All items not included in operating income are excluded. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table presents the Company’s reportable segment results for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="73%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=9><FONT face="Times New Roman" size=1><B>Years Ended December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Revenues:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Consumer:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Transaction fees</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,532.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,286.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,059.0</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign exchange revenue</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>893.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>769.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>652.4</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other revenues</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>45.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>33.5</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,471.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,093.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,744.9</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Business:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Transaction fees</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>668.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>665.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>593.7</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign exchange revenue</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other revenues</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>48.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>52.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>41.0</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>719.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>719.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>636.2</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Transaction fees</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>39.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>43.9</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Commission and other revenues</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>50.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>49.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>45.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>90.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>87.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>89.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total revenues</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,282.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,900.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,470.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Operating income:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Consumer</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,222.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,078.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,069.7</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Business</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>199.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>223.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>223.3</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.4</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total segment operating income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,437.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,322.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,311.4</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Restructuring and related expenses</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(82.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total consolidated operating income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,355.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,322.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,311.4</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Assets:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Consumer</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,305.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,734.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,456.0</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Business</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>819.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>885.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>740.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>453.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>163.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>124.9</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,578.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,784.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,321.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Depreciation and amortization:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Consumer</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>111.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>98.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>80.6</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Business</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.1</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total segment depreciation and amortization</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>136.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>123.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>103.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Restructuring and related expenses</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total depreciation and amortization</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>144.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>123.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>103.5</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capital expenditures:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Consumer</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>114.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>155.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>174.8</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Consumer-to-Business</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>30.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>28.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21.1</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.4</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total capital expenditures</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>153.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>192.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>202.3</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Information concerning principal geographic areas was as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="73%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom rowSpan=2><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=8><FONT face="Times New Roman" size=1><B>Years Ended December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Revenue:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>United States</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,760.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,825.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,889.3</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>International</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,522.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,074.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,580.9</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,282.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,900.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,470.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Long-lived assets:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>United States</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>162.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>172.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>157.3</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>International</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>30.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>28.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>192.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>200.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>176.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The geographic split of revenue above has been determined based upon the country where a money transfer is initiated and the country where a money transfer is paid with revenue being split 50% between the two countries. Long-lived assets, consisting of “Property and equipment, net,” are presented based upon the location of the assets. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>A majority of Western Union’s consumer-to-consumer transactions involve at least one non-United States location. Based on the method used to attribute revenue between countries described in the paragraph above, no individual country outside the United States accounted for more than 10% of segment revenue for the years ended December&nbsp;31, 2008, 2007 and 2006. In addition, no individual agent or biller accounted for greater than 10% of consumer-to-consumer or consumer-to-business segment revenue, respectively, during these periods. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>18. Subsequent Event </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In February 2009, the Company entered into an agreement to acquire the money transfer business of European-based FEXCO, one of the Company’s largest agents providing services in the United Kingdom, Spain, Ireland and other European countries. Prior to the acquisition, the Company holds a 24.65% interest in FEXCO Group Holdings (FEXCO Group), which is a holding company for both the money transfer business as well as various unrelated businesses. The Company will surrender its 24.65% interest in FEXCO Group and pay €123.1 million (approximately $160 million based on currency exchange rates at deal signing) as consideration for the overall money transfer business. The acquisition is expected to close in the first half of 2009, subject to regulatory approvals and satisfaction of closing conditions. The acquisition will be recognized at 100% of the fair value of the money transfer business , which will exceed the cash consideration of €123.1 million given the non-cash consideration conveyed via the sale of our interest in FEXCO Group. The fair value of the money transfer business will be determined upon closing and is subject to fluctuation due to changes in exchange rates and other valuation inputs. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> 834000000 26300000 <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>2. Summary of Significant Accounting Policies </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Use of Estimates </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Principles of Consolidation </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union consolidates financial results when it will absorb a majority of an entity’s expected losses or residual returns or when it has the ability to exert control over the entity. Control is normally established when ownership interests exceed 50% in an entity. However, when Western Union does not have the ability to exercise control over a majority-owned entity as a result of other investors having contractual rights over the management and operations of the entity, it accounts for the entity under the equity method. As of December&nbsp;31, 2008 and 2007, there were no greater-than-50%-owned affiliates whose financial statements were not consolidated. Western Union utilizes the equity method of accounting when it is able to exercise significant influence over the entity’s operations, which generally occurs when Western Union has an ownership interest of between 20% and 50 % in an entity. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Restructuring and Related Expenses </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company records severance-related expenses once they are both probable and estimable in accordance with the provisions of Statement of Financial Accounting Standards (“SFAS”) No.&nbsp;112, “<I>Employers’ Accounting for Post-Employment Benefits</I>” for severance provided under an ongoing benefit arrangement. One-time, involuntary benefit arrangements and other exit costs are accounted for under the provisions of SFAS No.&nbsp;146, “<I>Accounting for Costs Associated with Exit or Disposal Activities</I>.” Costs arising under the Company’s defined benefit pension plans from curtailing future service of employees participating in the plans and providing enhanced benefits are accounted for under the provisions of SFAS No.&nbsp;88, “<I>Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits</I>.” The Company also evaluates impairment issues associated with restructuring activities under the provisions of SFAS No.&nbsp;144, “<I>Accounting for the Impairment or Disposal of Long-Lived Assets</I>.” Restructuring and related expenses consist of direct and incremental costs associated with restructuring and related activities, including severance, outplacement and other employee related benefits; facility closure and migration of the Company’s IT infrastructure; other expenses related to relocation of various operations to existing Company facilities and third-party providers, including hiring, training, relocation, travel and professional fees. Also included in facility closure expenses are non-cash expenses related to fixed asset and leasehold improvement write-offs and acceleration of depreciation and amortization. For more information on the Company’s restructuring and related e xpenses see Note 3, “Restructuring and Related Expenses.” </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Earnings Per Share </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Prior to September&nbsp;29, 2006, all outstanding shares of Western Union were owned by First Data. Accordingly, for the period prior to the completion of the Distribution on September&nbsp;29, 2006, basic and diluted earnings per share are computed using Western Union’s shares outstanding as of that date. Unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share subsequent to September&nbsp;29, 2006 reflects the potential dilution that could occur if outstanding stock options at the presented date are exercised and shares of </FONT><FONT face="Times New Roman" size=2>restricted stock have vested, using the treasury stock meth od. The treasury stock method assumes proceeds from the exercise price of stock options, the unamortized compensation expense and assumed tax benefits of options and restricted stock are available to acquire shares at an average price throughout the year, and therefore, reduce the dilutive effect throughout the year. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>As of December&nbsp;31, 2008, 2007 and 2006, there were 8.0&nbsp;million, 10.4&nbsp;million and 4.9&nbsp;million, respectively, outstanding options to purchase shares of Western Union stock excluded from the diluted earnings per share calculation under the treasury stock method as their effect was anti-dilutive. Prior to the September&nbsp;29, 2006 spin-off date, there were no potentially dilutive instruments outstanding. Of the 43.6&nbsp;million outstanding options to purchase shares of common stock of the Company, approximately 47% are held by employees of First Data. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table provides the calculation of diluted weighted-average shares outstanding, and only considers the potential dilution for stock options, restricted stock awards and restricted stock units for the periods subsequent to the spin-off date of September&nbsp;29, 2006 (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="82%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>For the Year Ended</B></FONT><BR><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic weighted-average shares</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>730.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>760.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>764.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Common stock equivalents</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted weighted-average shares outstanding</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>738.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>772.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>768.6</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Fair Value Measurements </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Effective January&nbsp;1, 2008, the Company determines the fair market values of its financial assets and liabilities, as well as non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis, based on the fair value hierarchy established in SFAS No.&nbsp;157, “<I>Fair Value Measurements</I>” (“SFAS No. 157”). The standard describes three levels of inputs that may be used to measure fair value. </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2><B>Level 1:</B> Quoted prices in active markets for identical assets or liabilities. Western Union’s financial instruments that base fair value determinations on Level 1 inputs are not material. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2><B>Level 2:</B> Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Most of Western Union’s assets or liabilities fall within Level 2 and include state and municipal debt instruments, other foreign investment securities, and derivative assets and liabilities. Western Union utilizes pricing services to value its Level 2 financial instruments. For most of these assets, the Company utilizes pricing services that use multiple prices as inputs to determine daily market values. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2><B>Level 3:</B> Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. The Company currently has no Level 3 assets or liabilities that are measured at fair value on a recurring basis. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Pursuant to the Financial Accounting Standards Boards (“FASB”) Staff Position No.&nbsp;157-2, “<I>Effective Date of FASB Statement No.&nbsp;157</I>” (“FSB No.&nbsp;157-2”), the effective date of SFAS No.&nbsp;157 for certain non-financial assets and liabilities that are measured at fair value but are recognized or disclosed at fair value on a non-recurring basis has been deferred to fiscal years beginning after November&nbsp;15, 2008. The Company is primarily impacted by this deferral as it relates to non-financial assets and liabilities initially measured at fair </FONT><FONT face="Times New Roman" size=2>value in a business combination (but not measured at fair value in subsequent periods) and fair value measurements in impairment testing. The Company will adopt these remaining provisions of SFAS No.&nbsp;1 57 effective January&nbsp;1, 2009. The Company does not expect the impact to be significant on its financial position, results of operations and cash flows. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Except as it pertains to an investment redemption discussed in Note 9, carrying amounts for Western Union financial instruments, including cash and cash equivalents, settlement cash and cash equivalents, settlement receivables, settlement obligations, borrowings under the commercial paper program and other short-term notes payable, approximate fair value due to their short maturities. Investment securities, included in settlement assets, and derivative financial instruments are carried at fair value and included in Note 8, “Fair Value Measurements.” Fixed and floating rate notes are carried at their discounted notional amounts, except for portions of notes hedged by interest rate swap agreements as disclosed in Note 14. The fair market values of fixed and floating rate notes are also disclosed in Note 15 and are based on market quotations. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>For more information on the fair value of financial instruments see Note 8, “Fair Value Measurements.” </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Cash and Cash Equivalents </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Highly liquid investments (other than those included in settlement assets) with maturities of three months or less at the date of purchase (that are readily convertible to cash), are considered to be cash equivalents and are stated at cost, which approximates market value. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union maintains cash and cash equivalent balances with various financial institutions, including a substantial portion in money market funds. Western Union limits the concentration of its cash and cash equivalents with any one institution; however, such balances often exceed United States federal deposit insurance limits. Western Union regularly reviews investment concentrations and credit worthiness of these institutions, and has relationships with a globally diversified list of banks and financial institutions. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Allowance for Doubtful Accounts </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union records an allowance for doubtful accounts when it is probable that the related receivable balance will not be collected based on its history of collection experience, known collection issues, such as agent suspensions and bankruptcies, and other matters the Company identifies in its routine collection monitoring. The allowance for doubtful accounts was $21.6 million and $13.8 million at December&nbsp;31, 2008 and 2007, respectively, and is recorded in the same Consolidated Balance Sheet caption as the related receivable. During the years ended December&nbsp;31, 2008, 2007 and 2006, the provision for doubtful accounts reflected in the Consolidated Statements of Income was $26.6 million, $23.5 million and $24.4 million, respectively. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Settlement Assets and Obligations </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Settlement assets represent funds received or to be received from agents for unsettled money transfers and consumer payments. Western Union records corresponding settlement obligations relating to amounts payable under money transfer and payment service arrangements. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Settlement assets consist of cash and cash equivalents, receivables from selling agents and investment securities. Cash received by Western Union agents generally becomes available to Western Union within one week after initial receipt by the agent. Cash equivalents consist of short-term time deposits, commercial paper and other highly liquid investments. Receivables from selling agents represent funds collected by such agents, but in transit to Western Union. Western Union has a large and diverse agent base, thereby reducing the credit </FONT><FONT face="Times New Roman" size=2>risk of the Company from any one agent. In addition, Western Union performs ongoing credit evaluations of its agents’ financial condition and credit worthiness. See Note 7 for information concerning the Company’s investment securities. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Settlement obligations consist of money transfer and payment service payables and payables to agents. Money transfer payables represent amounts to be paid to transferees when they request their funds. Most agents typically settle with transferees first and then obtain reimbursement from Western Union. 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. Payment service payables represent amounts to be paid to utility companies, auto finance companies, mortgage servicers, financial service providers, government agencies and others. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Settlement assets and obligations are comprised of the following (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="78%"></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Settlement assets:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and cash equivalents</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>42.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>203.5</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Receivables from selling agents</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>759.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>921.9</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Investment securities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>405.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193.8</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,207.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,319.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Settlement obligations:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Money transfer and payment service payables</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>799.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>870.8</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Payables to agents</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>408.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>448.4</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,207.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,319.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Property and Equipment </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Property and equipment are stated at cost, except for acquired assets which are recorded at fair market value under purchase accounting rules. 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, 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. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Property and equipment consists of the following (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="79%"></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equipment</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>319.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>289.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Leasehold improvements</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>38.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Furniture and fixtures</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>25.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Land and improvements</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Buildings</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>70.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Projects in process</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>476.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>451.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Less accumulated depreciation</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(284.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(251.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Property and equipment, net</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>192.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>200.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B></B></FONT></P><FONT size=1>&nbsp;</FONT> <P></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Amounts charged to expense for depreciation of property and equipment were $61.7 million, $49.1 million and $34.8 million during the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Deferred Customer Set Up Costs </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company capitalizes direct incremental costs not to exceed related deferred revenues associated with the enrollment of customers in the Equity Accelerator program, a service that allows consumers to complete automated clearing house (“ACH”) transactions to make recurring mortgage payments. Deferred customer set up costs, included in “Other assets” in the Consolidated Balance Sheets, are amortized to “Cost of services” in the Consolidated Statements of Income over the length of the customer’s expected participation in the program, generally five to seven years. Actual customer attrition data is assessed at least annually and the amortization period is adjusted prospectively. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Goodwill </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Goodwill represents the excess of purchase price over the fair value of tangible and other intangible assets acquired, less liabilities assumed arising from business combinations. The Company’s annual goodwill impairment test did not identify any goodwill impairment during the years ended December&nbsp;31, 2008, 2007 and 2006. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Other Intangible Assets </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Other intangible assets primarily consist of contract costs (primarily amounts paid to agents in connection with establishing and renewing long-term contracts) and software. Other intangible assets are amortized on a straight-line basis over the length of the contract or benefit periods. Included in “Cost of services” in the Consolidated Statements of Income is amortization expense of approximately $82.3 million, $74.8 million and $68.7 million for the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company capitalizes initial payments for new and renewed agent contracts to the extent recoverable through future operations, contractual minimums and/or penalties in the case of early termination. The Company’s accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company develops software that is used in providing services. Software development costs are capitalized once technological feasibility of the software has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed all planning and designing activities that are necessary to determine that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is available for general use. Software development costs and purchased software are generally amortized over a term of three to five years. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B>&nbsp;</B></FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table provides the components of other intangible assets (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="51%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=7><FONT face="Times New Roman" size=1><B>December&nbsp;31, 2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>December&nbsp;31, 2007</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Weighted-<BR>Average<BR>Amortization<BR>Period<BR>(in&nbsp;years)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Initial<BR>Cost</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Net of<BR>Accumulated<BR>Amortization</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Initial<BR>Cost</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Net of<BR>Accumulated<BR>Amortization</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capitalized contract costs</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>316.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>213.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>274.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193.1</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Acquired contracts</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>78.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>49.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>42.8</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Acquired trademarks</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>43.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>38.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>44.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>41.0</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Developed software</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>78.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Purchased or acquired software</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>82.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>32.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other intangibles</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>28.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>28.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.5</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total other intangibles</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>627.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>350.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>570.9</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>334.1</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The estimated future aggregate amortization expense for existing other intangible assets as of December&nbsp;31, 2008 is expected to be $81.6 million in 2009, $72.9 million in 2010, $59.9 million in 2011, $39.4 million in 2012, $26.8 million in 2013 and $70.0 million thereafter. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Other intangible assets are reviewed for impairment on an annual basis and whenever events indicate that their carrying amount may not be recoverable. In such reviews, estimated undiscounted cash flows associated with these assets or operations are compared with their carrying values to determine if a write-down to fair value (normally measured by the present value technique) is required. Western Union did not record any impairment related to other intangible assets during the years ended December&nbsp;31, 2008, 2007 and 2006. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Revenue Recognition </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s revenues are primarily derived from consumer money transfer transaction fees that are based on the principal amount of the money transfer and the locations from and to which funds are transferred. Consumer money transfer transaction fees are set by the Company and recorded as revenue at the time of sale. In certain consumer money transfer transactions involving different send and receive currencies, the Company generates revenue based on the difference between the exchange rate set by Western Union to the consumer and the rate at which Western Union or its agents are able to acquire currency. This foreign exchange revenue is recorded at the time the related transaction fee revenue is recognized. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company also offers several consumer-to-business payment services, including payments from consumers to billers. Revenues for these services are primarily derived from transaction fees, which are recorded as revenue when payments are sent to the intended recipients. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s Equity Accelerator service requires a consumer to pay an upfront enrollment fee to participate in this mortgage payment service. These enrollment fees are deferred and recognized into income over the length of the customer’s expected participation in the program, generally five to seven years. Actual customer attrition data is assessed at least annually and the period over which revenue is recognized is adjusted prospectively. Many factors impact the duration of the expected customer relationship, including interest rates, refinance activity and trends in consumer behavior. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company sells money orders issued by IPS under the Western Union brand and manages the agent network through which such money orders are sold. Western Union recognizes monthly commissions from IPS based on a fixed investment yield on the average investable balance resulting from the sale of money orders. W</FONT><FONT face="Times New Roman" size=2>estern Union also recognizes transaction fees collected from the Company’s agents at the time a money order is issued to the consumer. See Note 7, “Investment Securities” for discussion regarding the agreement executed between the Company and IPS on July&nbsp;18, 2008 whereby the Company will assume the responsibility for issuing money orders effective October&nbsp;1, 2009. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Loyalty Program </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union operates a loyalty program which consists of points that are awarded to program participants. Such points may be redeemed for either a discount on future money transfers or merchandise. The Company estimates the distribution between awards of merchandise and discounts based on recent redemption history and trends, measured on a quarterly basis. Revenue is deferred for the portion of points expected to be ultimately redeemed for discounts in a manner that reflects the consumer’s progress toward earning such discounts. Costs associated with the redemption of merchandise are reflected in operating expenses in the Consolidated Statements of Income. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Cost of Services </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Cost of services primarily consists of agent commissions and expenses for call centers, settlement operations, and related information technology costs. Expenses within these functions include personnel, software, equipment, telecommunications, bank fees, depreciation and amortization and other expenses incurred in connection with providing money transfer and other payment services. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Advertising Costs </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Advertising costs are charged to operating expenses as incurred or at the time the advertising first takes place. Advertising costs for the years ended December&nbsp;31, 2008, 2007 and 2006 were $247.1 million, $264.2 million and $261.4 million, respectively. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Income Taxes </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>For periods subsequent to the Spin-off, Western Union files its own United States federal and state income tax returns. Western Union files its own separate tax returns in foreign jurisdictions for periods prior to and subsequent to the Spin-off, and foreign taxes are paid in each respective jurisdiction locally. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Prior to the Spin-off, Western Union’s taxable income was included in the consolidated United States federal income tax return of First Data and also in a number of state income tax returns filed with First Data on a combined or unitary basis. Western Union’s provision for income taxes was computed as if it were a separate tax-paying entity for periods prior to the Spin-off, and federal and state income taxes payable were remitted to First Data prior to the Spin-off. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union accounts for income taxes under the liability method, which requires that deferred tax assets and liabilities be determined based on the expected future income tax consequences of events that have been recognized in the consolidated financial statements. Deferred tax assets and liabilities are recognized based on temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company adopted the provisions of FASB Interpretation No.&nbsp;48, <I>“Accounting for Uncertainty in Income Taxes”</I> (“FIN 48”), on January&nbsp;1, 2007. FIN 48 addresses the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under FIN 48, the Company recognizes the tax benefits from an uncertain tax position only when it is more likely than not, </FONT><FONT face="Times New Roman" size=2>based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realiz ed upon ultimate resolution. As a result of the implementation of FIN 48, the Company recognized an increase in the liability for unrecognized tax benefits plus associated accrued interest and penalties of $0.6 million, which was accounted for as a reduction to the January&nbsp;1, 2007 balance of retained earnings. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Foreign Currency Translation </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The U.S. dollar is the functional currency for all of Western Union’s businesses except certain investments and subsidiaries located primarily in Ireland, Argentina and Peru. Foreign currency denominated assets and liabilities for those entities for which the local currency is the functional currency are translated into United States dollars based on exchange rates prevailing at the end of the period. Revenues and expenses are translated at average exchange rates prevailing during the period. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of those entities where the functional currency is not the United States dollar are included as a component of “Accumulated other comprehensive loss.” Foreign currency translation gains and losses on assets and liabilities of foreign operations in which the United States dollar is the fu nctional currency are recognized in operations. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Derivatives </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union utilizes derivatives to mitigate foreign currency and interest rate risk. The Company recognizes all derivatives in the “Other assets” and “Other liabilities” captions in the accompanying Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in cash flows from operating activities in the Consolidated Statements of Cash Flows other than those previously designated as cash flow hedges that were determined to not qualify for hedge accounting as described in Note 14. </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Cash Flow hedges—Changes in the fair value of derivatives that are designated and qualify as cash flow hedges in accordance with SFAS No.&nbsp;133, “<I>Accounting for Derivative Instruments and Hedging Activities</I>,” as amended and interpreted (“SFAS No.&nbsp;133”) are recorded in “Accumulated other comprehensive loss.” Cash flow hedges consist of foreign currency hedging of forecasted revenues, as well as, from time to time, hedges of anticipated fixed rate debt issuances. Derivative fair value changes that are captured in Accumulated other comprehensive loss are reclassified to revenues in the same period or periods the hedged item affects earnings. The portion of the change in fair value that is excluded from the measure of effectiveness is recognized immediately in “Derivative (losses)/gains, net.” </FONT></P></TD></TR></TBODY>< ;/TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Fair Value hedges—Changes in the fair value of derivatives that are designated as fair value hedges of fixed rate debt in accordance with SFAS No.&nbsp;133 are recorded in interest expense. The offsetting change in value attributable to changes in the benchmark interest rate of the related debt instrument is also recorded in interest expense consistent with the related derivative’s change. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="5%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD> <TD vAlign=top width="1%"><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=top align=left> <P align=left><FONT face="Times New Roman" size=2>Undesignated—Derivative contracts entered into to reduce the variability related to (a)&nbsp;settlement assets and obligations, generally with maturities of a few days up to one month, and (b)&nbsp;certain foreign currency denominated cash positions, generally with maturities of less than one year, are not designated as hedges for accounting purposes and, as such, changes in their fair value are included in “Cost of services” consistent with foreign exchange rate fluctuations on the related settlement assets and obligations or cash positions. </FONT></P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B></B></FONT></P><FONT size=1>&nbsp;</FONT> <P></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company also had certain other foreign currency swap arrangements with First Data, prior to September&nbsp;29, 2006, to mitigate the foreign exchange impact on certain euro denominated notes receivable with First Data. These foreign currency swaps did not qualify for hedge accounting and, accordingly, the fair value changes of these agreements were reported in the accompanying Consolidated Statements of Income as “Foreign exchange effect on notes receivable from First Data, net.” The fair value of these swaps were settled in cash along with the related notes receivable in connection with the Spin-off. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The fair value of the Company’s derivatives is derived from standardized models that use market based inputs (e.g., forward prices for foreign currency). </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Stock-Based Compensation </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company currently has a stock-based compensation plan that provides for the granting of Western Union stock options, restricted stock awards and restricted stock units to employees and other key individuals who perform services for the Company. In addition, the Company has a stock-based compensation plan that provides for grants of Western Union stock options and stock unit awards to non-employee directors of the Company. Prior to the Spin-off, employees of Western Union participated in First Data’s stock-based compensation plans. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period and also requires an estimate of forfeitures when calculating compensation expense. The Company recognizes compensation expense on awards on a straight-line basis over the requisite service period for the entire award. Refer to Note 16 for additional discussion regarding details of the Company’s stock-based compensation plans. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>New Accounting Pronouncements </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In March 2008, the FASB issued SFAS No.&nbsp;161, “<I>Disclosures about Derivative Instruments and Hedging Activities, an amendment of SFAS No.&nbsp;133</I>” (“SFAS No.&nbsp;161”). SFAS No.&nbsp;161 is required for financial statements issued for fiscal years and interim periods beginning after November&nbsp;15, 2008 and early adoption is permitted. SFAS No.&nbsp;161 requires additional disclosures about how and why the companies use derivatives, how derivatives and related hedged items are accounted for under SFAS No.&nbsp;133, and how derivatives and related hedged items affect a company’s financial position, results of operations, and cash flows. The Company’s derivative disclosures already incorporate many of the provisions outlined in SFAS No.&nbsp;161. Accordingly, the Company does not expect that the adopti on of this pronouncement in 2009 will have a significant impact on the Company’s financial position, results of operations and cash flows. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In December 2007, the FASB issued SFAS No.&nbsp;141R, “<I>Business Combinations</I>” (“SFAS No.&nbsp;141R”). This statement establishes a framework to disclose and account for business combinations. The adoption of the requirements of SFAS No.&nbsp;141R applies prospectively to business combinations for which the acquisition date is on or after fiscal years beginning after December&nbsp;15, 2008 and may not be early adopted. The impact of the adoption of SFAS No.&nbsp;141R will depend upon the nature and terms of business combinations that the Company consummates on or after January&nbsp;1, 2009. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In December 2007, the FASB issued SFAS No.&nbsp;160, “<I>Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No.&nbsp;51</I>” (“SFAS No.&nbsp;160”). The statement establishes accounting and reporting standards for a noncontrolling interest in a subsidiary. The adoption of the requirements of SFAS No.&nbsp;160 is effective for fiscal years and interim periods within those fiscal years, beginning after December&nbsp;15, </FONT><FONT face="Times New Roman" size=2>2008 and may not be early adopted. The Company does not expect the impact of the adoption of SFAS No.&nbsp;160 to be significant on the financial position, results of operations and cash flows, as the Company’s current non-controlling interests are immaterial. </FONT></P> 26300000 738200000 730100000 <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>9. Other Assets and Other Liabilities </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table summarizes the components of other assets and other liabilities (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="86%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other assets:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Receivable for securities sold</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>298.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity method investments</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>213.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>211.3</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Derivatives</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>116.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.1</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Amounts advanced to agents, net of discounts</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>69.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>93.1</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred customer set up costs</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>41.9</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Receivables from First Data</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9.1</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Prepaid expenses</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20.6</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19.8</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accounts receivable, net</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt issue costs</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13.5</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Prepaid commissions</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22.5</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>42.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>56.2</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total other assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>858.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>498.0</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other liabilities:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Pension obligations</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>107.1</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>27.6</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred revenue</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>59.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74.2</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Derivatives</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37.2</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>43.9</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total other liabilities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>198.0</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>182.9</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Receivable for securities sold </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On September&nbsp;15, 2008, Western Union requested redemption of its shares in the Reserve International Liquidity Fund, Ltd., a money market fund, (the “Fund”) totaling $298.1 million. The Company had not received any portion of the redemption payment prior to December&nbsp;31, 2008, and accordingly, reclassified the total amount due from “Cash and cash equivalents” to “Other assets” in the Consolidated Balance Sheet as of December&nbsp;31, 2008. At the time the redemption request was made, the Company was informed by the Reserve Management Company, the Fund’s investment advisor (the “Manager”), that the Company’s redemption trades would be honored at a $1.00 per share net asset value. On January&nbsp;30, 2009, the Company received a partial distribution from the Fund of $193.6 million. The Company expects to re ceive the remaining payment based on the maturities of the underlying investments in the Fund and the status of the litigation process. The Company believes that due to uncertainty surrounding the outcome of litigation facing the Fund, as well as potential variability in the ultimate amount and related timing of the recovery of this balance, the fair value of this financial asset may be less than the related carrying value. There is a risk that the redemption process could be delayed and that the Company could receive less than the $1.00 per share net asset value should pro-rata distribution occur. Based on net asset information provided by the Fund, the Company’s exposure related to pro-rata distribution could be $12 million, excluding settlement costs incurred by the Fund. However, based on written and verbal representations from the Manager to date and the Company’s current legal position regarding the Company’s redemption priority, the Company believes that it is entitled to such fun ds, and is vigorously pursuing collection of the remaining distribution. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Amounts advanced to agents, net of discounts </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>From time to time, the Company makes advances and loans to agents. In 2006, the Company signed a six year agreement with one of its existing agents which included a four year loan of $140.0 million to the agent. The terms of the loan agreement require that a percentage of commissions earned by the agent (64% in 2009) be withheld by us as repayment of the loan and the agent remains obligated to repay the loan if commissions earned are not sufficient. The Company imputes interest on this below-market rate note receivable, and has recorded the note net of a discount of $3.0 million and $22.5 million as of December&nbsp;31, 2008 and 2007, respectively. The remaining loan receivable balance relating to this agent as of December&nbsp;31, 2008 and 2007, net of discount, was $47.0 million and $67.5 million, respectively. Other advances and loans outstanding as of December&nbsp;31, 2008 and 2007 were $22.3 million and $25.6 million, respectively. </FONT></P> 0 0 0 0 0 0 0 0 0 896300000 -6900000 0 4240800000 298100000 0 <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>13. Stockholders’ Equity </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Accumulated other comprehensive loss </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Accumulated other comprehensive loss includes all changes in equity during a period that have yet to be recognized in income, except those resulting from transactions with shareholders. The major components include foreign currency translation adjustments, pension liability adjustments, unrealized gains and losses on investment securities and gains or losses from cash flow hedging activities. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The assets and liabilities of foreign subsidiaries whose functional currency is not the United States dollar are translated using the appropriate exchange rate as of the end of the year. Foreign currency translation adjustments represent unrealized gains and losses on assets and liabilities arising primarily from the difference in the foreign country currency compared to the United States dollar. These gains and losses are accumulated in comprehensive income. When a foreign subsidiary is substantially liquidated, the cumulative translation gain or loss is removed from “Accumulated other comprehensive loss” and is recognized as a component of the gain or loss on the sale of the subsidiary. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>A pension liability adjustment associated with our defined benefit pension plans is recognized for the difference between estimated assumptions (e.g., asset returns, discount rates, mortality) and actual results. The </FONT><FONT face="Times New Roman" size=2>amount in “Accumulated other comprehensive loss” is amortized to income over the remaining life expectancy of the plan participants. Details of the pension plans’ assets and obligations are explained further in Note 11. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>We record unrealized gains and losses on investment securities that are available for sale, primarily municipal securities, in accumulated other comprehensive income until the investment is either sold or deemed other-than-temporarily impaired. See Note 7 for further discussion. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The effective portion of the change in fair value of derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income. Generally, amounts are recognized in income when the related forecasted transaction affects earnings. See Note 14 for further discussion. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The income tax effects allocated to and the cumulative balance of each component of accumulated other comprehensive loss are as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="79%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Beginning balance, January&nbsp;1</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(68.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(73.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(62.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net unrealized gains/(losses) on investment securities:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unrealized losses, net of tax benefits of $(0.9) in 2008, $(0.7) in 2007 and $(0.3) in 2006</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Reclassification adjustment for losses/(gains) included in net income, net of tax benefit/(expense) of $1.6 in 2008, $(0.1) in 2007, and $0.0 in 2006</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net unrealized gains/(losses) on investment securities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net unrealized gains/(losses) on hedging activities:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unrealized gains/(losses), net of tax expense/(benefit) of $15.0 in 2008, $(14.6) in 2007 and $(1.6) in 2006</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>67.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(41.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(27.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Reclassification adjustment for losses /(gains) included in net income, net of tax benefit/(expense) of $3.5 in 2008, $4.4 in 2007, and $(0.1) in 2006</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net unrealized gains/(losses) on hedging activities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>89.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(14.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(29.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net foreign currency translation adjustments and loss on disposal:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency translation adjustments, net of tax (benefit)/expense of $(2.8) in 2008, $2.8 in 2007, and $4.2 in 2006</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(5.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Reclassification adjustment for loss on disposal included in net income</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net foreign currency translation adjustments and loss on disposal</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(5.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net unrealized (losses)/gains on pension liability:</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unrealized (losses)/gains, net of tax (benefit)/expense of $(28.0) in 2008, $7.9 in 2007, and $0.3 in 2006</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(48.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Reclassification adjustment for losses included in net income, net of tax benefit of $1.0 in 2008, $1.3 in 2007, and $1.6 in 2006</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net unrealized (losses)/gains on pension liability</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(46.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other comprehensive income/(loss)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>38.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(11.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Ending balance, December&nbsp;31</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(30.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(68.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(73.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The components of accumulated other comprehensive loss were as follows (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="75%"></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unrealized (losses)/gains on investment securities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unrealized (losses)/gains on hedging activities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>45.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(43.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(29.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Foreign currency translation adjustment</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>23.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Pension liability adjustment</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(94.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(48.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(63.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(30.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(68.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(73.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Cash Dividends Paid </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the fourth quarter of 2008, the Company’s Board of Directors declared a cash dividend of $0.04 per common share, representing $28.4 million which was paid on December&nbsp;31, 2008 to shareholders of record on December&nbsp;22, 2008. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the fourth quarter of 2007, the Company’s Board of Directors declared a cash dividend of $0.04 per common share, representing $30.0 million which was paid on December&nbsp;28, 2007 to shareholders of record on December&nbsp;14, 2007. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During the fourth quarter of 2006, the Company’s Board of Directors declared a cash dividend of $0.01 per common share, representing $7.7 million which was paid in December 2006. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Share Repurchases </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Since September 2006, the Board of Directors has authorized common stock repurchases of up to $3.0 billion consisting of a $1.0 billion authorization in June 2008 (“2008 Authorization”), a $1.0 billion authorization in December 2007 (“2007 Authorization”) and a $1.0 billion authorization in September 2006. Both the 2007 Authorization and the authorization in September 2006 have been fully utilized. During the years ended December&nbsp;31, 2008, 2007 and 2006, 58.1&nbsp;million, 34.7&nbsp;million and 0.9&nbsp;million shares, respectively, have been repurchased for $1,313.9 million, $726.5 million and $19.9 million, respectively, excluding commissions, at an average cost of $22.60, $20.93 and $22.78 per share, respectively. As of December&nbsp;31, 2008, $939.7 million remains available under the 2008 Authorization for purchases through December&nbsp ;31, 2009. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During December 2007, the Company’s Board of Directors adopted resolutions to retire all of its existing treasury stock, thereby restoring the status of the Company’s common stock held in treasury as “authorized but unissued”. The resulting impact to the Company’s Consolidated Balance Sheet was the elimination of $462.0 million held in “Treasury stock” and a decrease in “Common stock” of $0.2 million and “Retained earnings” of $461.8 million. There is no change to the Company’s overall equity position as a result of this retirement. All shares repurchased by the Company subsequent to this resolution will also be retired at the time such shares are reacquired. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>11. Employee Benefit Plans </B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Defined Contribution Plans </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company’s Board of Directors approved The Western Union Company Incentive Savings Plan (“401(k)”) as of September&nbsp;29, 2006, covering eligible non-union employees on the United States payroll of Western Union after the spin-off date. Employees that make voluntary contributions to this plan receive up to a 4% Western Union matching contribution. All matching contributions are immediately 100% vested. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company has a 401(k) plan covering its former union employees. Due to the restructuring and related activities discussed in Note 3, the Company’s expenses under this plan are immaterial. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company administers 16 defined contribution plans in various countries globally on behalf of approximately 600 employee participants as of December&nbsp;31, 2008. Such plans have vesting and employer contribution provisions that vary by country. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In addition, Western Union’s Board of Directors adopted a non-qualified deferred compensation plan for highly compensated employees. The plan provides tax-deferred contributions, matching and the restoration of Company matching contributions otherwise limited under the 401(k). </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Prior to the spin-off from First Data, eligible full-time non-union employees of the Company were covered under a First Data sponsored defined contribution incentive savings plan. Employees who made voluntary contributions to this plan, received up to a 3% Western Union matching contribution, service related contributions of 1.5% to 3% of eligible employee compensation, certain other additional employer contributions, and additional discretionary Company contributions. In addition, First Data provided non-qualified deferred compensation plans for certain highly compensated employees. These plans provided tax-deferred contributions, matching and the restoration of Company contributions under the defined contribution plans otherwise limited by IRS or plan limits. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The aggregate amount charged to expense in connection with all of the above plans was $12.5 million, $11.6 million and $10.8 million during the years ended December&nbsp;31, 2008, 2007 and 2006, respectively. </FONT></P> <P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Defined Benefit Plans </I></B></FONT></P> <P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>On January&nbsp;1, 2008, the Company adopted the remaining provisions of SFAS No. 158, “<I>Employers Accounting for Defined Benefit Pension and Other Postretirement Plans—An Amendment of SFAS No.&nbsp;87, 88, 106 and 132(R)</I>” (“SFAS No.&nbsp;158”), which required the Company to change its plan measurement date to December&nbsp;31 effective January&nbsp;1, 2008. The Company elected the alternative transition method, and accordingly, the Company prepared a 15-month projection of net periodic benefit income for the period from October&nbsp;1, 2007 through December&nbsp;31, 2008. The pro-rated portion of net periodic benefit income of $0.1 million for the period from October&nbsp;1, 2007 through December&nbsp;31, 2007 was reflected as an increase to “Retained earnings” on January&nbsp;1, 2008. </F ONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company has two frozen defined benefit pension plans for which it had a recorded unfunded pension obligation of $107.1 million as of December&nbsp;31, 2008, included in “Other liabilities” in the Consolidated Balance Sheets. No contributions were made to these plans by First Data or Western Union during the years ended December&nbsp;31, 2008, 2007 and 2006. Due to the impact of recently enacted legislation, the Company will not be required to contribute to these plans during 2009, but estimates it will be required to contribute approximately $20 to $25 million in 2010. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The Company recognizes the funded status of its pension plans in its Consolidated Balance Sheets with a corresponding adjustment to “Accumulated other comprehensive loss,” net of tax. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table provides a reconciliation of the changes in the pension plans’ benefit obligations, fair value of assets and a statement of the funded status (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="80%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Change in benefit obligation</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Projected benefit obligation at October&nbsp;1,</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>426.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>459.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>SFAS 158 measurement date adjustment (a)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest costs</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Actuarial gain</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(5.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(12.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Benefits paid</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(54.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(45.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Employee termination benefits</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Projected benefit obligation at December&nbsp;31, 2008 and September&nbsp;30, 2007</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>398.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>426.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD height=8></TD> <TD colSpan=4 height=8></TD> <TD colSpan=4 height=8></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Change in plan assets</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Fair value of plan assets at October&nbsp;1,</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>398.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>406.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Actual return on plan assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(51.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Benefits paid</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(54.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(45.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Fair value of plan assets at December&nbsp;31, 2008 and September&nbsp;30, 2007</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>291.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>398.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Funded status of the plan</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(107.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(27.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accumulated benefit obligation</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>398.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>426.0</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">&nbsp;</P> <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD> <TD vAlign=top align=left><FONT face="Times New Roman" size=2>Represents the adjustment to retained earnings of $0.1 million for the period from October&nbsp;1, 2007 through December&nbsp;31, 2007. This adjustment consists of interest costs of $6.1 million, offset by $6.2 million which represents the expected return on plan assets less amortization of the actuarial loss. </FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Differences in expected returns on plan assets estimated at the beginning of the year versus actual returns, and assumptions used to estimate the beginning of year projected benefit obligation versus the end of year obligation (principally discount rate and mortality assumptions) are, on a combined basis, considered actuarial gains and losses. Such actuarial gains and losses are recognized as a component of “Comprehensive income” and amortized to income over the average remaining life expectancy of the plan participants. Included in “Accumulated other comprehensive loss” at December&nbsp;31, 2008 is $3.6 million ($2.3 million, net of tax) of actuarial losses that are expected to be recognized in net periodic pension cost during the year ended December&nbsp;31, 2009. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table provides the amounts recognized in the Consolidated Balance Sheets (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="82%"></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accrued benefit liability</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(107.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(27.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accumulated other comprehensive loss</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>150.3</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>73.1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net amount recognized</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>43.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>45.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The following table provides the components of net periodic benefit cost/(income) for the plans (in millions): </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="79%"></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="4%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>December&nbsp;31,</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest cost</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected return on plan assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(27.5</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(28.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(29.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Amortization of actuarial loss</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.7</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.6</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Employee termination costs</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.8</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>—&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net periodic benefit cost/(income)</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.4</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.2</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(0.9</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>During 2008, the Company recorded $2.8 million of expense relating to the termination of certain retirement eligible union and management plan participants in connection with the restructuring and related activities disclosed in Note 3. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The pension liability included in other accumulated comprehensive loss, net of tax, increased/(decreased) $46.4 million, ($15.3) million and ($10.8) million in 2008, 2007 and 2006, respectively. The significant comprehensive loss in 2008 was caused by a decline in the fair value of plan assets, which was primarily attributable to a decrease in the value of the equity securities within the plan asset portfolio. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The weighted-average rate assumptions used in the measurement of the Company’s benefit obligation are as follows: </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="84%" align=center border=0> <TBODY> <TR> <TD width="85%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Discount rate</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.26</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.02</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The weighted-average rate assumptions used in the measurement of the Company’s net cost (income) are as follows: </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="84%" align=center border=0> <TBODY> <TR> <TD width="78%"></TD> <TD vAlign=bottom width="6%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Discount rate</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6.02</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.62</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.24</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected long-term return on plan assets</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.50</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.50</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7.50</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>SFAS No.&nbsp;87 requires the sponsor of a defined benefit plan to measure the plan’s obligations and annual expense using assumptions that reflect best estimates and are consistent to the extent that each assumption reflects expectations of future economic conditions. As the bulk of the pension benefits will not be paid for many years, the computation of pension expenses and benefits is based on assumptions about future interest rates and expected rates of return on plan assets. In general, pension obligations are most sensitive to the discount rate assumption, and it is set based on the rate at which the pension benefits could be settled effectively. The discount rate is determined by matching the timing and amount of anticipated payouts under the plans to the rates from a AA spot rate yield curve. The curve is derived from AA bonds of varying maturities. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Western Union employs a building block approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term historical relationships between equities and fixed-income securities are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established using a building block approach with proper consideration of diversification and re-balancing. Peer data and historical returns are reviewed to check for reasonableness and appropriateness. </FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1>&nbsp;</FONT></P> <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Pension plan asset allocation at December&nbsp;31, 2008 and September&nbsp;30, 2007, and target allocations based on investment policies, are as follows: </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="84%" align=center border=0> <TBODY> <TR> <TD width="75%"></TD> <TD vAlign=bottom width="11%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap rowSpan=2> <P style="WIDTH: 51pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>Asset Category</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=4><FONT face="Times New Roman" size=1><B>Percentage&nbsp;of&nbsp;Plan&nbsp;Assets<BR>at&nbsp;Measurement&nbsp;Date</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity securities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>41</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt securities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>75</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>58</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>100</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>100</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>&nbsp;&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom>&nbsp;</TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom>&nbsp;</TD> <TD>&nbsp;</TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="84%" align=center border=0> <TBODY> <TR> <TD width="81%"></TD> <TD vAlign=bottom width="15%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Target&nbsp;Allocation</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity securities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>25-35</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt securities</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>65-75</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>In consideration of the frozen status of the Plans, the Company decided to implement a risk reduction strategy in 2008. As a result, the Company increased its allocation to debt securities from equity securities. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>Certain members of the Company’s Board of Directors and management are affiliated with companies whose securities are held in Western Union’s pension trust, which is managed by independent asset managers. Therefore, these affiliated companies are considered related parties. The following table details plan assets invested in these related party securities as of December&nbsp;31, 2008 and September&nbsp;30, 2007: </FONT></P> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="70%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap rowSpan=2> <P style="WIDTH: 105pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>Plan Corporate Bond Holdings</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=7><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Principal<BR>(in&nbsp;millions)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair&nbsp;Market<BR>Value</B></FONT><BR><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>%&nbsp;of&nbsp;Total<BR>Plan&nbsp;Assets</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Allstate Corporation corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.23</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Hasbro Inc. corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.06</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Bristol-Myers Squibb corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.7</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.24</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>HBOS PLC corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.08</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>New York Life Insurance Company corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.5</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.14</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">&nbsp;</P> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="70%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap rowSpan=2> <P style="WIDTH: 105pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>Plan Corporate Bond Holdings</B></FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=7><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Principal<BR>(in&nbsp;millions)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair&nbsp;Market<BR>Value</B></FONT><BR><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>%&nbsp;of&nbsp;Total<BR>Plan&nbsp;Assets</B></FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Allstate Corporation corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.8</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.20</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Hasbro Inc. corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.2</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.05</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mellon FDG corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.3</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.08</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR> <TR> <TD vAlign=top> <P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>New York Life Insurance Company corporate bond</FONT></P></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.4</FONT></TD> <TD vAlign=bottom><FONT size=1>&nbsp;&nbsp;</FONT></TD> <TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.10</FONT></TD> <TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>%</FONT></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The maturities of debt securities at December&nbsp;31, 2008 range from less than one year to approximately 60 years with a weighted-average maturity of 20 years. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The assets of the Company’s defined benefit plans are managed in a third-party master trust. The investment policy and allocation of the assets in the master trust are overseen by the Company’s Investment Council. Western Union employs a total return investment approach whereby a mix of equities and fixed income investments are used in an effort to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities and plan funded status. The investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments </FONT><FONT face="Times New Roman" size=2>are diversified across United States and non-United States stocks, as well as securities deemed to be growth, value, and small and large capitalizations. Other assets, primarily private equity, are used judiciously in an effort to enhance long-term returns while improving portfolio diversification. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and periodic asset and liability studies. </FONT></P> <P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2>The estimated future benefit payments are expected to be $43.7 million in 2009, $42.4 million in 2010, $41.1 million in 2011, $39.9 million in 2012, $38.5 million in 2013 and $169.1 million in 2014 through 2018. </FONT></P> 1315200000 289700000 600000 200000 957800000 919000000 1200000 -46400000 -5200000 89200000 1200000 -46400000 -5200000 89200000 10900000 26300000 289500000 28400000 -100000 919000000 1314600000 -58100000 17900000 10-K false 2008-12-31 THE WESTERN UNION COMPANY 0001365135 WU --12-31 Yes No Yes Large Accelerated Filer 17900000000 710000000 0001365135 2008-12-31 0001365135 2008-01-01 2008-12-31 0001365135 wu:CommonStockSharesMember 2008-01-01 2008-12-31 0001365135 us-gaap:RetainedEarningsMember 2008-01-01 2008-12-31 0001365135 us-gaap:AdditionalPaidInCapitalMember 2008-01-01 2008-12-31 0001365135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2008-01-01 2008-12-31 0001365135 us-gaap:ComprehensiveIncomeMember 2008-01-01 2008-12-31 0001365135 us-gaap:CommonStockMember 2008-01-01 2008-12-31 0001365135 2008-01-01 2008-12-31 0001365135 wu:TreasuryStockSharesMember 2007-01-01 2007-12-31 0001365135 wu:ParentCompanyNetInvestmentMember 2007-01-01 2007-12-31 0001365135 wu:CommonStockSharesMember 2007-01-01 2007-12-31 0001365135 us-gaap:TreasuryStockMember 2007-01-01 2007-12-31 0001365135 us-gaap:RetainedEarningsMember 2007-01-01 2007-12-31 0001365135 us-gaap:AdditionalPaidInCapitalMember 2007-01-01 2007-12-31 0001365135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2007-01-01 2007-12-31 0001365135 us-gaap:ComprehensiveIncomeMember 2007-01-01 2007-12-31 0001365135 us-gaap:CommonStockMember 2007-01-01 2007-12-31 0001365135 2007-01-01 2007-12-31 0001365135 wu:TreasuryStockSharesMember 2006-01-01 2006-12-31 0001365135 wu:ParentCompanyNetInvestmentMember 2006-01-01 2006-12-31 0001365135 wu:CommonStockSharesMember 2006-01-01 2006-12-31 0001365135 us-gaap:TreasuryStockMember 2006-01-01 2006-12-31 0001365135 us-gaap:RetainedEarningsMember 2006-01-01 2006-12-31 0001365135 us-gaap:AdditionalPaidInCapitalMember 2006-01-01 2006-12-31 0001365135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2006-01-01 2006-12-31 0001365135 us-gaap:ComprehensiveIncomeMember 2006-01-01 2006-12-31 0001365135 us-gaap:CommonStockMember 2006-01-01 2006-12-31 0001365135 2006-01-01 2006-12-31 0001365135 wu:TreasuryStockSharesMember 2008-12-31 0001365135 wu:ParentCompanyNetInvestmentMember 2008-12-31 0001365135 wu:CommonStockSharesMember 2008-12-31 0001365135 us-gaap:TreasuryStockMember 2008-12-31 0001365135 us-gaap:RetainedEarningsMember 2008-12-31 0001365135 us-gaap:AdditionalPaidInCapitalMember 2008-12-31 0001365135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2008-12-31 0001365135 us-gaap:CommonStockMember 2008-12-31 0001365135 2008-12-31 0001365135 wu:TreasuryStockSharesMember 2007-12-31 0001365135 wu:ParentCompanyNetInvestmentMember 2007-12-31 0001365135 wu:CommonStockSharesMember 2007-12-31 0001365135 us-gaap:TreasuryStockMember 2007-12-31 0001365135 us-gaap:RetainedEarningsMember 2007-12-31 0001365135 us-gaap:AdditionalPaidInCapitalMember 2007-12-31 0001365135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2007-12-31 0001365135 us-gaap:CommonStockMember 2007-12-31 0001365135 2007-12-31 0001365135 wu:TreasuryStockSharesMember 2006-12-31 0001365135 wu:ParentCompanyNetInvestmentMember 2006-12-31 0001365135 wu:CommonStockSharesMember 2006-12-31 0001365135 us-gaap:TreasuryStockMember 2006-12-31 0001365135 us-gaap:RetainedEarningsMember 2006-12-31 0001365135 us-gaap:AdditionalPaidInCapitalMember 2006-12-31 0001365135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2006-12-31 0001365135 us-gaap:CommonStockMember 2006-12-31 0001365135 2006-12-31 0001365135 wu:TreasuryStockSharesMember 2005-12-31 0001365135 wu:ParentCompanyNetInvestmentMember 2005-12-31 0001365135 wu:CommonStockSharesMember 2005-12-31 0001365135 us-gaap:TreasuryStockMember 2005-12-31 0001365135 us-gaap:RetainedEarningsMember 2005-12-31 0001365135 us-gaap:AdditionalPaidInCapitalMember 2005-12-31 0001365135 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2005-12-31 0001365135 us-gaap:CommonStockMember 2005-12-31 0001365135 2005-12-31 iso4217:USD shares iso4217:USD shares As further described in Note 5, total expenses include amounts paid to related parties of $305.9 million, $256.6 million and $364.6 million for the years ended December 31, 2008, 2007 and 2006, respectively. 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