Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

Note 17 — Condensed Consolidating Financial Statements

In the event the Company offers debt securities pursuant to its registration statement on Form S-3, such debt securities may be guaranteed by certain of its subsidiaries. Accordingly, the Company is providing condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. If the Company issues debt securities, the following 100 percent directly or indirectly owned subsidiaries could fully and unconditionally guarantee the debt securities on a joint and several basis: MoneyGram Payment Systems Worldwide, Inc.; MoneyGram Payment Systems, Inc.; and MoneyGram of New York LLC (collectively, the “Guarantors”).

The following information represents condensed, consolidating Balance Sheets as of June 30, 2012 and December 31, 2011, along with condensed, consolidating Statements of (Loss) Income, Statements of Comprehensive (Loss) Income and Statements of Cash Flows for the three and six months ended June 30, 2012 and 2011. The condensed, consolidating financial information presents financial information in separate columns for MoneyGram International, Inc. on a parent-only basis carrying its investment in subsidiaries under the equity method; Guarantors on a combined basis, carrying investments in subsidiaries that are not expected to guarantee the debt (collectively, the “Non-Guarantors”) under the equity method; Non-Guarantors on a combined basis; and eliminating entries. The eliminating entries primarily reflect intercompany transactions, such as accounts receivable and payable, fee revenue and commissions expense and the elimination of equity investments and income in subsidiaries.

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING BALANCE SHEETS

AS OF JUNE 30, 2012

(Amounts in thousands)	Parent			Subsidiary Guarantors			Non- Guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—		$	—		$	—	$	—		$	—
Cash and cash equivalents (substantially restricted)		547			2,457,501			90,209		—			2,548,257
Receivables, net (substantially restricted)		—			1,248,250			18,632		—			1,266,882
Short-term investments (substantially restricted)		—			500,000			24,055		—			524,055
Available-for-sale investments (substantially restricted)		—			85,281			—		—			85,281
Property and equipment		—			89,941			27,091		—			117,032
Goodwill		—			306,878			121,813		—			428,691
Other assets		10,072			185,225			19,567		—			214,864
Equity investments in subsidiaries		80,798			173,247			—		(254,045	)		—
Intercompany receivables		—			173,416			—		(173,416	)		—
Total assets	$	91,417		$	5,219,739		$	301,367	$	(427,461	)	$	5,185,062
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Payment service obligations	$	—		$	4,102,134		$	53,746	$	—		$	4,155,880
Debt		—			810,365			—		—			810,365
Pension and other postretirement benefits		—			114,606			1,747		—			116,353
Accounts payable and other liabilities		84,860			111,855			21,852		—			218,567
Intercompany liabilities		122,660			(19	)		50,775		(173,416	)		—
Total liabilities		207,520			5,138,941			128,120		(173,416	)		5,301,165
Total stockholders’ (deficit) equity		(116,103	)		80,798			173,247		(254,045	)		(116,103	)
Total liabilities and stockholders’ (deficit) equity	$	91,417		$	5,219,739		$	301,367	$	(427,461	)	$	5,185,062

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING BALANCE SHEETS

AS OF DECEMBER 31, 2011

(Amounts in thousands)	Parent			Subsidiary Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—		$	—	$	—	$	—		$	—
Cash and cash equivalents (substantially restricted)		524			2,462,106		109,544		—			2,572,174
Receivables, net (substantially restricted)		—			1,204,903		15,162		—			1,220,065
Short-term investments (substantially restricted)		—			500,000		22,024		—			522,024
Available-for-sale investments (substantially restricted)		—			102,771		—		—			102,771
Property and equipment		—			87,172		29,169		—			116,341
Goodwill		—			306,878		121,813		—			428,691
Other assets		4,820			190,295		18,397		—			213,512
Equity investments in subsidiaries		85,436			177,385		—		(262,821	)		—
Intercompany receivables		—			187,441		—		(187,441	)		—
Total assets	$	90,780		$	5,218,951	$	316,109	$	(450,262	)	$	5,175,578
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Payment service obligations	$	—		$	4,138,418	$	66,957	$	—		$	4,205,375
Debt		—			810,888		—		—			810,888
Pension and other postretirement benefits		—			118,580		1,672		—			120,252
Accounts payable and other liabilities		54,803			65,629		28,829		—			149,261
Intercompany liabilities		146,175			—		41,266		(187,441	)		—
Total liabilities		200,978			5,133,515		138,724		(187,441	)		5,285,776
Total stockholders’ (deficit) equity		(110,198	)		85,436		177,385		(262,821	)		(110,198	)
Total liabilities and stockholders’ (deficit) equity	$	90,780		$	5,218,951	$	316,109	$	(450,262	)	$	5,175,578

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF (LOSS) INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2012

(Amounts in thousands)	Parent			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
REVENUE
Fee and other revenue	$	—		$	352,844		$	71,870		$	(98,008	)	$	326,706
Investment revenue		—			3,238			198			—			3,436
Total revenue		—			356,082			72,068			(98,008	)		330,142
EXPENSES
Fee and other commissions expense		—			184,742			42,263			(80,332	)		146,673
Investment commissions expense		—			103			—			—			103
Total commissions expense		—			184,845			42,263			(80,332	)		146,776
Compensation and benefits		—			42,292			16,738			—			59,030
Transaction and operations support		8,845			93,676			13,163			(17,676	)		98,008
Occupancy, equipment and supplies		—			8,572			3,570			—			12,142
Depreciation and amortization		—			7,967			3,086			—			11,053
Total operating expenses		8,845			337,352			78,820			(98,008	)		327,009
OPERATING (LOSS) INCOME		(8,845	)		18,730			(6,752	)		—			3,133
Other expense
Interest expense		—			17,637			—			—			17,637
Other		347			—			—			—			347
Total other expenses, net		347			17,637			—			—			17,984
(Loss) income before income taxes		(9,192	)		1,093			(6,752	)		—			(14,851	)
Income tax (benefit) expense		(3,563	)		15,239			(1,471	)		—			10,205
(Loss) income after income taxes		(5,629	)		(14,146	)		(5,281	)		—			(25,056	)
Equity (loss) income in subsidiaries		(19,427	)		(5,281	)		—			24,708			—
NET (LOSS) INCOME	$	(25,056	)	$	(19,427	)	$	(5,281	)	$	24,708		$	(25,056	)

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF (LOSS) INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2012

(Amounts in thousands)	Parent			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
REVENUE
Fee and other revenue	$	—		$	693,211		$	141,182		$	(192,769	)	$	641,624
Investment revenue		—			6,181			432			—			6,613
Total revenue		—			699,392			141,614			(192,769	)		648,237
EXPENSES
Fee and other commissions expense		—			364,196			80,136			(155,744	)		288,588
Investment commissions expense		—			180			—			—			180
Total commissions expense		—			364,376			80,136			(155,744	)		288,768
Compensation and benefits		—			86,318			31,776			—			118,094
Transaction and operations support		10,611			157,698			24,938			(37,025	)		156,222
Occupancy, equipment and supplies		—			17,591			6,762			—			24,353
Depreciation and amortization		—			15,566			6,170			—			21,736
Total operating expenses		10,611			641,549			149,782			(192,769	)		609,173
OPERATING (LOSS) INCOME		(10,611	)		57,843			(8,168	)		—			39,064
Other expense
Interest expense		—			35,520			—			—			35,520
Other		347			—			—			—			347
Total other expenses, net		347			35,520			—			—			35,867
(Loss) income before income taxes		(10,958	)		22,323			(8,168	)		—			3,197
Income tax (benefit) expense		(4,181	)		23,600			(1,435	)		—			17,984
(Loss) income after income taxes		(6,777	)		(1,277	)		(6,733	)		—			(14,787	)
Equity (loss) income in subsidiaries		(8,010	)		(6,733	)		—			14,743			—
NET (LOSS) INCOME	$	(14,787	)	$	(8,010	)	$	(6,733	)	$	14,743		$	(14,787	)

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF INCOME (LOSS)

FOR THE THREE MONTHS ENDED JUNE 30, 2011

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
REVENUE
Fee and other revenue	$	—		$	297,495		$	67,045		$	(60,466	)	$	304,074
Investment revenue		—			5,751			128			—			5,879
Total revenue		—			303,246			67,173			(60,466	)		309,953
EXPENSES
Fee and other commissions expense		—			140,855			37,004			(42,298	)		135,561
Investment commissions expense		—			111			—			—			111
Total commissions expense		—			140,966			37,004			(42,298	)		135,672
Compensation and benefits		—			42,949			14,964			—			57,913
Transaction and operations support		1,471			64,174			11,117			(18,168	)		58,594
Occupancy, equipment and supplies		—			8,749			2,888			—			11,637
Depreciation and amortization		—			8,957			2,922			—			11,879
Total operating expenses		1,471			265,795			68,895			(60,466	)		275,695
OPERATING (LOSS) INCOME		(1,471	)		37,451			(1,722	)		—			34,258
Other (income) expense
Net securities gains		—			(32,816	)		—			—			(32,816	)
Interest expense		—			22,873			—			—			22,873
Other		5,520			9,336			—			—			14,856
Total other expenses (income), net		5,520			(607	)		—			—			4,913
(Loss) income before income taxes		(6,991	)		38,058			(1,722	)		—			29,345
Income tax (benefit) expense		(2,417	)		5,058			300			—			2,941
(Loss) income after income taxes		(4,574	)		33,000			(2,022	)		—			26,404
Equity income (loss) in subsidiaries		30,978			(2,022	)		—			(28,956	)		—
NET INCOME (LOSS)	$	26,404		$	30,978		$	(2,022	)	$	(28,956	)	$	26,404

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF INCOME (LOSS)

FOR THE SIX MONTHS ENDED JUNE 30, 2011

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors		Eliminations			Consolidated
REVENUE
Fee and other revenue	$	—		$	582,173		$	130,318	$	(118,408	)	$	594,083
Investment revenue		—			9,686			208		—			9,894
Total revenue		—			591,859			130,526		(118,408	)		603,977
EXPENSES
Fee and other commissions expense		—			275,943			63,946		(75,268	)		264,621
Investment commissions expense		—			251			—		—			251
Total commissions expense		—			276,194			63,946		(75,268	)		264,872
Compensation and benefits		(31	)		87,091			30,148		—			117,208
Transaction and operations support		2,495			130,250			19,398		(43,140	)		109,003
Occupancy, equipment and supplies		—			17,560			5,830		—			23,390
Depreciation and amortization		—			17,994			5,551		—			23,545
Total operating expenses		2,464			529,089			124,873		(118,408	)		538,018
OPERATING (LOSS) INCOME		(2,464	)		62,770			5,653		—			65,959
Other (income) expense
Net securities gains		—			(32,816	)		—		—			(32,816	)
Interest expense		—			43,486			—		—			43,486
Other		5,520			9,336			—		—			14,856
Total other expenses, net		5,520			20,006			—		—			25,526
(Loss) income before income taxes		(7,984	)		42,764			5,653		—			40,433
Income tax (benefit) expense		(2,764	)		2,148			600		—			(16	)
(Loss) income after income taxes		(5,220	)		40,616			5,053		—			40,449
Equity income (loss) in subsidiaries		45,669			5,053			—		(50,722	)		—
NET INCOME (LOSS)	$	40,449		$	45,669		$	5,053	$	(50,722	)	$	40,449

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2012

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
NET (LOSS) INCOME	$	(25,056	)	$	(19,427	)	$	(5,281	)	$	24,708		$	(25,056	)
OTHER COMPREHENSIVE (LOSS) INCOME
Net unrealized gains on available-for-sale securities:
Net holding gains arising during the period, net of tax expense of $53		434			434			—			(434	)		434
Pension and postretirement benefit plans:
Reclassification of prior service credit for pension and postretirement benefit plans recorded to net income, net of tax expense of $56		(93	)		(93	)		—			93			(93	)
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax benefit of $595		972			972			—			(972	)		972
Unrealized foreign currency translation gains, net of tax benefit of $1,127		(1,839	)		(1,839	)		(1,506	)		3,345			(1,839	)
Other comprehensive (loss) income		(526	)		(526	)		(1,506	)		2,032			(526	)
COMPREHENSIVE (LOSS) INCOME	$	(25,582	)	$	(19,953	)	$	(6,787	)	$	26,740		$	(25,582	)

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2012

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
NET (LOSS) INCOME	$	(14,787	)	$	(8,010	)	$	(6,733	)	$	14,743		$	(14,787	)
OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized gains on available-for-sale securities:
Net holding gains arising during the period, net of tax expense of $585		1,408			1,408			—			(1,408	)		1,408
Pension and postretirement benefit plans:
Reclassification of prior service credit for pension and postretirement benefit plans recorded to net income, net of tax expense of $113		(185	)		(185	)		—			185			(185	)
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax benefit of $1,191		1,944			1,944			—			(1,944	)		1,944
Unrealized foreign currency translation gains, net of tax expense of $125		204			204			(444	)		240			204
Other comprehensive income (loss)		3,371			3,371			(444	)		(2,927	)		3,371
COMPREHENSIVE (LOSS) INCOME	$	(11,416	)	$	(4,639	)	$	(7,177	)	$	11,816		$	(11,416	)

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTHS ENDED JUNE 30, 2011

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
NET INCOME (LOSS)	$	26,404		$	30,978		$	(2,022	)	$	(28,956	)	$	26,404
OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized gains on available-for-sale securities:
Net holding gains arising during the period, net of tax expense of $0		3,083			3,083			—			(3,083	)		3,083
Reclassification adjustment for net realized losses included in net income, net of tax benefit of $0		4			4			—			(4	)		4
Pension and postretirement benefit plans:
Reclassification of prior service credit for pension and postretirement benefit plans recorded to net income, net of tax expense of $57		(92	)		(92	)		—			92			(92	)
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax benefit of $620		1,012			1,012			—			(1,012	)		1,012
Unrealized foreign currency translation gains, net of tax expense of $205		334			471			182			(653	)		334
Other comprehensive income (loss)		4,341			4,478			182			(4,660	)		4,341
COMPREHENSIVE INCOME (LOSS)	$	30,745		$	35,456		$	(1,840	)	$	(33,616	)	$	30,745

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE SIX MONTHS ENDED JUNE 30, 2011

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors		Eliminations			Consolidated
NET INCOME (LOSS)	$	40,449		$	45,669		$	5,053	$	(50,722	)	$	40,449
OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized gains on available-for-sale securities:
Net holding gains arising during the period, net of tax expense of $0		5,028			5,028			—		(5,028	)		5,028
Reclassification adjustment for net realized losses included in net income, net of tax expense of $0		4			4			—		(4	)		4
Pension and postretirement benefit plans:
Reclassification of prior service credit for pension and postretirement benefit plans recorded to net income, net of tax expense of $114		(185	)		(185	)		—		185			(185	)
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax benefit of $1,242		2,024			2,024			—		(2,024	)		2,024
Unrealized foreign currency translation gains, net of tax expense of $648		1,058			1,520			551		(2,071	)		1,058
Other comprehensive income (loss)		7,929			8,391			551		(8,942	)		7,929
COMPREHENSIVE INCOME (LOSS)	$	48,378		$	54,060		$	5,604	$	(59,664	)	$	48,378

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED JUNE 30, 2012

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	13,406		$	(10,339	)	$	(488	)	$	—		$	2,579
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of available-for-sale investments (substantially restricted)		—			8,447			—			—			8,447
Purchases of short-term investments (substantially restricted)		—			(100,000	)		(12,733	)		—			(112,733	)
Proceeds from maturities of short-term investments (substantially restricted)		—			100,000			13,525			—			113,525
Purchases of property and equipment, net of disposals		—			(8,986	)		(2,677	)		—			(11,663	)
Proceeds from disposal of assets and businesses		—			219			—			—			219
Capital contribution from subsidiary guarantors		—			(2,373	)		—			2,373			—
Net cash (used in) provided by investing activities		—			(2,693	)		(1,885	)		2,373			(2,205	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on debt		—			(375	)		—			—			(375	)
Proceeds from exercise of stock options		1			—			—			—			1
Intercompany financings		(13,407	)		13,407			—			—			—
Capital contribution to non-guarantors		—			—			2,373			(2,373	)		—
Net cash (used in) provided by financing activities		(13,406	)		13,032			2,373			(2,373	)		(374	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		—			—			—			—			—
CASH AND CASH EQUIVALENTS - Beginning of period		—			—			—			—			—
CASH AND CASH EQUIVALENTS - End of period	$	—		$	—		$	—		$	—		$	—

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2012

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	23,493		$	(15,573	)	$	4,295		$	—		$	12,215
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of available-for-sale investments (substantially restricted)		—			19,267			—			—			19,267
Purchases of short-term investments (substantially restricted)		—			(300,000	)		(24,489	)		—			(324,489	)
Proceeds from maturities of short-term investments (substantially restricted)		—			300,000			23,638			—			323,638
Purchases of property and equipment, net of disposals		—			(23,811	)		(6,484	)		—			(30,295	)
Proceeds from disposal of assets and businesses		—			391			—			—			391
Capital contribution from subsidiary guarantors		—			(3,040	)		—			3,040			—
Net cash (used in) provided by investing activities		—			(7,193	)		(7,335	)		3,040			(11,488	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on debt		—			(750	)		—			—			(750	)
Proceeds from exercise of stock options		23			—			—			—			23
Intercompany financings		(23,516	)		23,516			—			—			—
Capital contribution to non-guarantors		—			—			3,040			(3,040	)		—
Net cash (used in) provided by financing activities		(23,493	)		22,766			3,040			(3,040	)		(727	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		—			—			—			—			—
CASH AND CASH EQUIVALENTS - Beginning of period		—			—			—			—			—
CASH AND CASH EQUIVALENTS - End of period	$	—		$	—		$	—		$	—		$	—

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED JUNE 30, 2011

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	3,391		$	135,816		$	9,889		$	—		$	149,096
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of available-for-sale investments (substantially restricted)		—			14,281			—			—			14,281
Proceeds from settlement of investments (substantially restricted)		—			19,221			—			—			19,221
Purchases of short-term investments (substantially restricted)		—			(100,000	)		(11,259	)		—			(111,259	)
Proceeds from maturities of short-term investments (substantially restricted)		—			—			5,316			—			5,316
Purchases of property and equipment, net of disposals		—			(9,898	)		(5,319	)		—			(15,217	)
Cash paid for acquisitions, net of cash acquired		—			—			(53	)		—			(53	)
Dividends to parent/Capital contribution from subsidiary guarantors		241,315			(1,426	)		—			(239,889	)		—
Net cash provided by (used in) investing activities		241,315			(77,822	)		(11,315	)		(239,889	)		(87,711	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt		—			389,025			—			—			389,025
Transaction costs for issuance and amendment of debt		—			(17,062	)		—			—			(17,062	)
Payment on debt		—			(191,250	)		—			—			(191,250	)
Additional consideration in connection with conversion of mezzanine equity		(218,333	)		—			—			—			(218,333	)
Transaction costs for the conversion and issuance of stock		(3,469	)		—			—			—			(3,469	)
Cash dividends paid		(20,477	)		—			—			—			(20,477	)
Proceeds from exercise of stock options		181			—			—			—			181
Intercompany financings		(2,608	)		2,608			—			—			—
Dividends from subsidiary guarantors/Capital contribution to non-guarantors		—			(241,315	)		1,426			239,889			—
Net cash (used in) provided by financing activities		(244,706	)		(57,994	)		1,426			239,889			(61,385	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		—			—			—			—			—
CASH AND CASH EQUIVALENTS - Beginning of period		—			—			—			—			—
CASH AND CASH EQUIVALENTS - End of period	$	—		$	—		$	—		$	—		$	—

MONEYGRAM INTERNATIONAL, INC.

CONDENSED, CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2011

				Subsidiary			Non-
(Amounts in thousands)	Parent			Guarantors			Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	675		$	119,737		$	25,220		$	—		$	145,632
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of available-for-sale investments (substantially restricted)		—			31,743			—			—			31,743
Proceeds from settlement of investments (substantially restricted)		—			19,221			—			—			19,221
Purchases of short-term investments (substantially restricted)		—			(294,142	)		(22,558	)		—			(316,700	)
Proceeds from maturities of short-term investments (substantially restricted)		—			200,500			5,316			—			205,816
Purchases of property and equipment		—			(14,157	)		(10,033	)		—			(24,190	)
Cash paid for acquisitions, net of cash acquired		—			—			(53	)		—			(53	)
Dividends to parent/Capital contribution from subsidiary guarantors		241,315			(2,108	)		—			(239,207	)		—
Net cash provided by (used in) investing activities		241,315			(58,943	)		(27,328	)		(239,207	)		(84,163	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt		—			389,025			—			—			389,025
Transaction costs for issuance and amendment of debt		—			(17,062	)		—			—			(17,062	)
Payment on debt		—			(191,250	)		—			—			(191,250	)
Additional consideration in connection with conversion of mezzanine equity		(218,333	)		—			—			—			(218,333	)
Transaction costs for the conversion and issuance of stock		(3,736	)		—			—			—			(3,736	)
Cash dividends paid		(20,477	)		—			—			—			(20,477	)
Proceeds from exercise of stock options		364			—			—			—			364
Intercompany financings		192			(192	)		—			—			—
Dividends from subsidiary guarantors/Capital contribution to non-guarantors		—			(241,315	)		2,108			239,207			—
Net cash (used in) provided by financing activities		(241,990	)		(60,794	)		2,108			239,207			(61,469	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		—			—			—			—			—
CASH AND CASH EQUIVALENTS - Beginning of period		—			—			—			—			—
CASH AND CASH EQUIVALENTS - End of period	$	—		$	—		$	—		$	—		$	—