Revenue Increases 4%
2012 Full Year Revenue
Outlook Affirmed
Increasing EPS Outlook for Tax
Benefit
Company Executing Against Strategic Plan
ENGLEWOOD, Colo.--(BUSINESS WIRE)--
The Western Union Company (NYSE: WU) today reported financial results
for the 2012 second quarter.
Financial highlights for the quarter included:
-
Revenue of $1.4 billion, a reported increase of 4%, or 7% constant
currency, compared to last year’s second quarter
-
Pro forma revenue increase of 2% constant currency, including Travelex
Global Business Payments (TGBP) in the prior year period
-
Operating margin of 24.3% compared to 25.7% in the prior year.
Operating margin was 25.3% excluding TGBP integration expenses of $14
million, compared to 26.3% excluding $9 million of restructuring
expenses in the prior year period. Second quarter operating margin
excluding TGBP integration expenses of 25.3% increased from 24.3% in
the first quarter
-
Consumer-to-Consumer operating margins were consistent with prior
year. The decrease in consolidated operating margin compared to prior
year was primarily due to the acquisition of TGBP, including
intangibles amortization, and incremental investments related to
compliance and Ventures
-
EBITDA margin excluding TGBP integration expenses of 29.3%, compared
to 29.7% excluding restructuring expenses in the prior year period and
28.9% in the first quarter
-
Effective tax rate of 12.5%, compared to 21.1% in the prior year and
14.8% in the first quarter. The effective tax rate in the second
quarter included a non-recurring benefit from favorable resolution of
certain foreign and U.S. tax positions
-
EPS of $0.44, compared to $0.41 in the prior year. EPS excluding TGBP
integration expense of $0.46, compared to $0.42 in the prior year
excluding restructuring expenses. Prior year EPS included a gain of
$0.03 related to the Company’s previous 30% ownership position in
Angelo Costa S
.r.l.
-
Year-to-date cash provided by operating activities of $446 million,
including the impact of tax payments of approximately $100 million
relating to the agreement with the U.S. Internal Revenue Service
announced December 15, 2011
Western Union President and Chief Executive Officer
Hikmet Ersek
commented, “Overall we are on track for our full year financial
outlook. In the quarter, our core consumer money transfer business,
which represents over 80% of Company revenue, delivered solid 3%
constant currency growth with consistent margins. The Middle East and
Africa, Asia Pacific, and Latin America regions and on-line money
transfer performed well, more than offsetting the impact of consumer
slowdowns in Southern Europe and some expected softness in certain
countries. The global diversification of our portfolio and resiliency of
our consumers continue to drive revenue growth and strong cash flow,
even in a challenging economic environment.”
Ersek continued, “We continue to invest for the future to support our
strategic growth areas of Global Consumer Financial Services, Business
Solutions, and Ventures. We are further expanding our consumer network,
and now have 510,000 agent locations across the world. Business
Solutions global expansion is on track and new customer acquisition is
strong. In Ventures, our westernunion.com on-line money transfer service
continues to deliver strong growth while we develop new capabilities,
and our prepaid business will soon benefit from a significant increase
in distribution points in the U.S.”
Ersek added, “The long-term opportunities are strong, and we believe in
our growth strategies for the future. Our business continues to generate
significant free cash flow, and we have returned over $430 million to
shareholders through the combination of share repurchase and dividends
in the first half of the year. We remain committed to strong cash
deployment for our shareholders.”
Additional highlights for the quarter included:
-
Consumer-to-Consumer (C2C) revenue flat on a reported basis and an
increase of 3% constant currency, on transaction growth of 4%
-
C2C represented 81% of Company revenue
-
North America region revenue flat with the prior year period
-
Europe and the CIS region revenue decrease of 8%, including a
negative 5% impact from currency translation
-
Middle East and Africa (MEA) region revenue increase of 3%,
including a negative 3% impact from currency translation
-
Asia Pacific (APAC) region revenue increase of 4%, including a
negative 2% impact from currency translation
-
Latin America and the Caribbean (LACA) region revenue increase of
5%, including a negative 2% impact from currency translation
-
westernunion.com revenue increase of 23%, including a negative 4%
impact from currency translation
-
C2C operating margin of 28.5% compared to 28.6% in the prior year
-
Consumer-to-Business (C2B) payments revenue decrease of 3% reported
and flat constant currency
-
C2B represented 11% of Company revenue
-
C2B operating margin of 22.4% compared to 24.6% in the prior year
-
Business Solutions revenue of $92 million, compared to $31 million in
the prior year
-
Business Solutions represented 6% of Company revenue
-
Pro forma revenue increase of 4% constant currency, including TGBP
revenue in the prior year period
-
Operating loss of $15 million, including $15 million of
depreciation and amortization and $14 million of TGBP integration
expenses (integration expenses include approximately $1 million
that is also included in depreciation and amortization), compared
to an operating loss of $2 million in the prior year (prior year
does not include TGBP)
-
Electronic channels revenue increase of 26%
-
Electronic channels, which include westernunion.com, account based
money transfer, and mobile money transfer, represented 3% of total
Company revenue (included in the various segments)
-
Prepaid revenue increase of 6%
-
Prepaid including third party top-up represented 1% of Company
revenue
-
Agent locations of approximately 510,000 as of June 30
-
Share repurchases of $163 million (10 million shares at an average
price of $16.87 per share) and dividends declared of $0.10 per share
or $61 million in the quarter
Additional Statistics
Additional key statistics for the quarter and historical trends can be
found in the supplemental tables included with this press release.
2012 Outlook
The Company affirms its full year 2012 revenue and EBITDA margin outlook
provided on April 24, and has increased its earnings per share outlook,
primarily due to the tax benefit recorded in the second quarter. The
Company has reduced its operating margin outlook due to increased
compliance related costs; reduced its Business Solutions revenue
outlook; and increased its outlook for cash flow from operations due to
timing of tax payments.
The Company now expects the following outlook for 2012:
Revenue
-
Constant currency revenue growth in a range of +6% to +8%, including a
+4% benefit from the full year inclusion of TGBP
-
GAAP revenue growth 2% lower than constant currency
-
Business Solutions pro forma constant currency revenue growth of
mid-single digits, including TGBP revenue in the prior year period
Operating Margins
-
GAAP operating margin of approximately 24.5%. The Company’s previous
outlook for GAAP operating margin was approximately 25%
-
Operating margin of approximately 25.5% excluding TGBP integration
costs. The Company’s previous outlook was approximately 26%
-
EBITDA margin excluding TGBP integration costs of approximately 30%
-
The operating margin outlook decrease is due to incremental compliance
costs of approximately $15 million related to the Dodd-Frank Consumer
Financial Protection Bureau remittance disclosure rules, and other
incremental compliance costs primarily related to the Southwest Border
agreement
Tax Rate
-
The Company anticipates an effective tax rate in a range of 15% to
16%, including the non-recurring benefit recorded in the second
quarter. The Company’s previous outlook was 16% to 17%
Earnings Per Share
-
GAAP EPS in a range of $1.68 to $1.72, which compares to the previous
outlook of $1.65 to $1.70
-
EPS excluding TGBP integration expenses in a range of $1.73 to $1.77,
which compares to the previous outlook of $1.70 to $1.75
Cash Flow from Operations
-
Cash flow from operations in a range of $1.1 billion to $1.2 billion,
or $1.2 billion to $1.3 billion excluding anticipated tax payments of
approximately $100 million relating to the IRS agreement announced on
December 15, 2011. The cash flow from operations increased due to
timing of the anticipated tax payments
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures because
management believes that these metrics provide meaningful supplemental
information in addition to the GAAP metrics and provide comparability
and consistency to prior periods. These non-GAAP financial measures
include revenue change constant currency adjusted, pro forma revenue
change TGBP and constant currency adjusted, operating income margin
excluding restructuring expense, operating income margin excluding
restructuring and TGBP integration expense, EBITDA margin excluding
restructuring and TGBP integration expense, earnings per share
restructuring and TGBP integration expense adjusted,
Consumer-to-Consumer segment revenue change constant currency adjusted,
Consumer-to-Business segment revenue change constant currency adjusted,
Business Solutions segment pro forma revenue change TGBP and constant
currency adjusted, 2012 revenue change outlook constant currency
adjusted, 2012 operating income margin outlook TGBP integration expense
adjusted, 2012 EBITDA margin outlook TGBP integration expense adjusted,
2012 earnings per share outlook TGBP integration expense adjusted, 2012
operating cash flow outlook IRS Agreement adjusted, and additional
measures found in the supplemental schedule included with this press
release.
Reconciliations of non-GAAP to comparable GAAP measures are available in
the accompanying schedules and in the “Investor Relations” section of
the Company’s website at www.westernunion.com.
EBITDA
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
results from taking operating income and adjusting for depreciation and
amortization expenses. The 2012 EBITDA has been adjusted to exclude TGBP
integration expense, and the 2011 EBITDA has been adjusted to exclude
restructuring expenses and TGBP integration expense. EBITDA results
provide an additional performance measurement calculation which helps
neutralize the income statement effect of assets acquired in prior
periods.
TGBP Integration
The Company expects approximately $50 million of integration expense for
TGBP in 2012, of which approximately $14 million was incurred in the
second quarter. TGBP integration expense consists primarily of severance
and other benefits, retention, direct and incremental expense consisting
of facility relocation, consolidation and closures; IT systems
integration; amortization of a transitional trademark license; and other
expenses such as training, travel, and professional fees. Integration
expense does not include costs related to the completion of the TGBP
acquisition.
Restructuring
The Company did not incur any restructuring expenses in the second
quarter of 2012. The Company recorded $9 million of restructuring
charges in the second quarter of 2011. Approximately $0.5 million was
included in cost of services and $8.4 million was included in selling,
general, and administrative expense. The restructuring charges relate
primarily to organizational changes designed to simplify business
processes, move decision-making closer to the marketplace, and create
operating efficiencies. The Company realized pre-tax savings from the
initiatives of approximately $55 million in 2011, and expects $70
million annualized beginning in 2012. Restructuring expenses are not
reflected in segment operating results.
Restructuring expenses include expenses related to severance,
outplacement and other related benefits; facility closure and migration
of IT infrastructure; and other expenses related to relocation of
various operations to new or existing Company facilities and third-party
providers, including hiring, training, relocation, travel, and
professional fees. Also included in the facility closure expenses are
non-cash expenses related to fixed asset and leasehold improvement
write-offs, and the acceleration of depreciation and amortization.
Currency
Constant currency results assume foreign revenues and expenses are
translated from foreign currencies to the U.S. dollar, net of the effect
of foreign currency hedges, at rates consistent with those in the prior
year. Constant currency results also assume any benefit or loss caused
by foreign exchange fluctuations between foreign currencies and the U.S.
dollar, net of the effect of foreign currency hedges, would have been
consistent with the prior year. Additionally, the measurement assumes
the impact of fluctuations in foreign currency derivatives not
designated as hedges and the portion of fair value that is excluded from
the measure of effectiveness for those contracts designated as hedges is
consistent with the prior year.
Investor and Analyst Conference Call and Slide
Presentation
The Company will host a conference call and webcast, including slides,
at 8:30 a.m. Eastern Time today. To listen to the conference call live
via telephone, dial 866-450-8367 (U.S.) or +1-412-317-5427 (outside the
U.S.) ten minutes prior to the start of the call. The pass code is
6061472.
The conference call and accompanying slides will be available via
webcast at http://ir.westernunion.com.
Registration for the event is required, so please register at least five
minutes prior to the scheduled start time.
A replay of the call will be available approximately two hours after the
call ends through August 3, 2012, at 877-344-7529 (U.S.) or
+1-412-317-0088 (outside the U.S.). The pass code is 6061472. A webcast
replay will be available at http://ir.westernunion.com
for the same time period.
Please note: All statements made by Western Union officers on this call
are the property of Western Union and subject to copyright protection.
Other than the replay, Western Union has not authorized, and disclaims
responsibility for, any recording, replay or distribution of any
transcription of this call.
Safe Harbor Compliance Statement for Forward-Looking Statements
This press release contains certain statements that are forward-looking
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult
to predict. Actual outcomes and results may differ materially from those
expressed in, or implied by, our forward-looking statements. Words such
as “expects,” “intends,” “anticipates,” “believes,” “estimates,”
“guides,” “provides guidance,” “provides outlook” and other similar
expressions or future or conditional verbs such as “will,” “should,”
“would” and “could” are intended to identify such forward-looking
statements. Readers of this press release by The Western Union Company
(the “Company,” “Western Union,” “we,” “our” or “us”) should not rely
solely on the forward-looking statements and should consider all
uncertainties and risks discussed in the “Risk Factors” section and
throughout the Annual Report on Form 10-K for the year ended
December 31, 2011. The statements are only as of the date they are made,
and the Company undertakes no obligation to update any forward-looking
statement.
Possible events or factors that could cause results or performance to
differ materially from those expressed in our forward-looking statements
include the following: (i) events related to our business and industry,
such as: deterioration in consumers' and clients' confidence in our
business, or in money transfer and payment service providers generally;
changes in general economic conditions and economic conditions in the
regions and industries in which we operate, including global economic
downturns and financial market disruptions; political conditions and
related actions in the United States and abroad which may adversely
affect our business and economic conditions as a whole; interruptions of
United States government relations with countries in which we have or
are implementing material agent contracts; changes in, and failure to
manage effectively exposure to, foreign exchange rates, including the
impact of the regulation of foreign exchange spreads on money transfers
and payment transactions; changes in immigration laws, interruptions in
immigration patterns and other factors related to migrants; our ability
to adapt technology in response to changing industry and consumer needs
or trends; our failure to develop and introduce new services and
enhancements, and gain market acceptance of such services; mergers,
acquisitions and integration of acquired businesses and technologies
into our Company, and the realization of anticipated financial benefits
from these acquisitions; decisions to downsize, sell or close units, or
to transition operating activities from one location to another or to
third parties, particularly transitions from the United States to other
countries; decisions to change our business mix; failure to manage
credit and fraud risks presented by our agents, clients and consumers or
non-performance by our banks, lenders, other financial services
providers or insurers; adverse movements and volatility in capital
markets and other events which affect our liquidity, the liquidity of
our agents or clients, or the value of, or our ability to recover our
investments or amounts payable to us; any material breach of security or
safeguards of or interruptions in any of our systems; our ability to
attract and retain qualified key employees and to manage our workforce
successfully; our ability to maintain our agent network and business
relationships under terms consistent with or more advantageous to us
than those currently in place; adverse rating actions by credit rating
agencies; failure to compete effectively in the money transfer industry
with respect to global and niche or corridor money transfer providers,
banks and other money transfer services providers, including
telecommunications providers, card associations, card-based payment
providers and electronic and Internet providers; our ability to protect
our brands and our other intellectual property rights; our failure to
manage the potential both for patent protection and patent liability in
the context of a rapidly developing legal framework for intellectual
property protection; changes in tax laws and unfavorable resolution of
tax contingencies; cessation of various services provided to us by
third-party vendors; material changes in the market value or liquidity
of securities that we hold; restrictions imposed by our debt
obligations; significantly slower growth or declines in the money
transfer market and other markets in which we operate; and changes in
industry standards affecting our business; (ii) events related to our
regulatory and litigation environment, such as: the failure by us, our
agents or their subagents to comply with laws and regulations designed
to detect and prevent money laundering, terrorist financing, fraud and
other illicit activity; changes in United States or foreign laws, rules
and regulations including the Internal Revenue Code, governmental or
judicial interpretations thereof and industry practices and standards;
liabilities resulting from a failure of our agents or subagents to
comply with laws and regulations; increased costs due to regulatory
initiatives and changes in laws, regulations and industry practices and
standards affecting our agents; liabilities and unanticipated
developments resulting from governmental investigations and consent
agreements with, or enforcement actions by, regulators, including those
associated with compliance with, or a failure to comply with the
settlement agreement with the State of Arizona; the impact on our
business of the Dodd-Frank Wall Street Reform and Consumer Protection
Act, the rules promulgated there-under and the creation of the Consumer
Financial Protection Bureau; liabilities resulting from litigation,
including class-action lawsuits and similar matters, including costs,
expenses, settlements and judgments; failure to comply with regulations
regarding consumer privacy and data use and security; effects of
unclaimed property laws; failure to maintain sufficient amounts or types
of regulatory capital to meet the changing requirements of our
regulators worldwide; and changes in accounting standards, rules and
interpretations; and (iii) other events, such as: adverse consequences
from our spin-off from First Data Corporation; catastrophic events; and
management's ability to identify and manage these and other risks.
About Western Union
The Western Union Company (NYSE: WU) is a leader in global payment
services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western
Union Business Solutions branded payment services, Western Union
provides consumers and businesses with fast, reliable and convenient
ways to send and receive money around the world, to send payments and to
purchase money orders. As of June 30, 2012, the Western Union, Vigo and
Orlandi Valuta branded services were offered through a combined network
of approximately 510,000 agent locations in 200 countries and
territories. In 2011, The Western Union Company completed 226 million
consumer-to-consumer transactions worldwide, moving $81 billion of
principal between consumers, and 425 million business payments. For more
information, visit www.westernunion.com.
WU-F, WU-G
|
THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
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Notes*
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2Q11
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3Q11
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4Q11
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FY2011
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1Q12
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2Q12
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|
YTD 2Q12
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Consolidated Metrics
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Consolidated revenues (GAAP) - YoY % change
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7
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%
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|
6
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%
|
|
5
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%
|
|
6
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%
|
|
9
|
%
|
|
4
|
%
|
|
6
|
%
|
Consolidated revenues (constant currency) - YoY % change
|
|
a
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|
5
|
%
|
|
5
|
%
|
|
6
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%
|
|
5
|
%
|
|
9
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%
|
|
7
|
%
|
|
8
|
%
|
Agent locations
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|
|
|
470,000
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|
|
485,000
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|
|
485,000
|
|
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485,000
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|
|
495,000
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|
|
510,000
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|
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510,000
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Consumer-to-Consumer (C2C) Segment
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Revenues (GAAP) - YoY % change
|
|
|
|
8
|
%
|
|
6
|
%
|
|
3
|
%
|
|
5
|
%
|
|
4
|
%
|
|
0
|
%
|
|
2
|
%
|
Revenues (constant currency) - YoY % change
|
|
e
|
|
5
|
%
|
|
4
|
%
|
|
3
|
%
|
|
4
|
%
|
|
5
|
%
|
|
3
|
%
|
|
4
|
%
|
Operating margin
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|
|
|
28.6
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%
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|
29.0
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%
|
|
28.0
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%
|
|
28.6
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%
|
|
27.7
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%
|
|
28.5
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%
|
|
28.1
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%
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Transactions (in millions)
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56.31
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57.64
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59.00
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|
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225.79
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56.37
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|
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58.49
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|
|
114.86
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Transactions - YoY% change
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|
|
|
6
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%
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|
5
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%
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|
5
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%
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|
6
|
%
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|
7
|
%
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|
4
|
%
|
|
5
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%
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total principal ($ - billions)
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20.6
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21.1
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20.6
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81.3
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|
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19.5
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|
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20.1
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|
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39.6
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Principal per transaction ($ - dollars)
|
|
|
|
365
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|
|
366
|
|
|
349
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|
|
360
|
|
|
346
|
|
|
344
|
|
|
345
|
|
Principal per transaction - YoY % change
|
|
|
|
4
|
%
|
|
3
|
%
|
|
(2)
|
%
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|
1
|
%
|
|
(4)
|
%
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|
(6)
|
%
|
|
(5)
|
%
|
Principal per transaction (constant currency) - YoY % change
|
|
f
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0
|
%
|
|
0
|
%
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|
(1)
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%
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|
0
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%
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(3)
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%
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|
(3)
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%
|
|
(3)
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%
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-border principal ($ - billions)
|
|
|
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18.6
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19.0
|
|
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18.5
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|
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73.2
|
|
|
17.5
|
|
|
18.2
|
|
|
35.7
|
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Cross-border principal - YoY % change
|
|
|
|
10
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%
|
|
8
|
%
|
|
2
|
%
|
|
7
|
%
|
|
2
|
%
|
|
(2)
|
%
|
|
0
|
%
|
Cross-border principal (constant currency) - YoY % change
|
|
g
|
|
6
|
%
|
|
5
|
%
|
|
3
|
%
|
|
5
|
%
|
|
3
|
%
|
|
1
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe and CIS region revenues - YoY % change
|
|
t, u
|
|
8
|
%
|
|
3
|
%
|
|
(1)
|
%
|
|
3
|
%
|
|
0
|
%
|
|
(8)
|
%
|
|
(4)
|
%
|
Europe and CIS region transactions - YoY % change
|
|
t, u
|
|
3
|
%
|
|
0
|
%
|
|
(1)
|
%
|
|
1
|
%
|
|
1
|
%
|
|
(2)
|
%
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America region revenues - YoY % change
|
|
t, v
|
|
3
|
%
|
|
5
|
%
|
|
2
|
%
|
|
3
|
%
|
|
5
|
%
|
|
0
|
%
|
|
2
|
%
|
North America region transactions - YoY % change
|
|
t, v
|
|
7
|
%
|
|
6
|
%
|
|
5
|
%
|
|
7
|
%
|
|
6
|
%
|
|
2
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East and Africa region revenues - YoY % change
|
|
t, w
|
|
6
|
%
|
|
5
|
%
|
|
2
|
%
|
|
4
|
%
|
|
6
|
%
|
|
3
|
%
|
|
5
|
%
|
Middle East and Africa region transactions - YoY % change
|
|
t, w
|
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
3
|
%
|
|
9
|
%
|
|
9
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APAC region revenues - YoY % change
|
|
t, x
|
|
14
|
%
|
|
10
|
%
|
|
6
|
%
|
|
10
|
%
|
|
7
|
%
|
|
4
|
%
|
|
5
|
%
|
APAC region transactions - YoY % change
|
|
t, x
|
|
10
|
%
|
|
7
|
%
|
|
9
|
%
|
|
9
|
%
|
|
6
|
%
|
|
5
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LACA region revenues - YoY % change
|
|
t, y
|
|
8
|
%
|
|
5
|
%
|
|
3
|
%
|
|
7
|
%
|
|
2
|
%
|
|
5
|
%
|
|
3
|
%
|
LACA region transactions - YoY % change
|
|
t, y
|
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
|
8
|
%
|
|
5
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
westernunion.com region revenues - YoY % change
|
|
t, z
|
|
40
|
%
|
|
43
|
%
|
|
39
|
%
|
|
37
|
%
|
|
39
|
%
|
|
23
|
%
|
|
30
|
%
|
westernunion.com region transactions - YoY % change
|
|
t, z
|
|
29
|
%
|
|
33
|
%
|
|
35
|
%
|
|
29
|
%
|
|
41
|
%
|
|
35
|
%
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International revenues (GAAP) - YoY % change
|
|
aa
|
|
8
|
%
|
|
5
|
%
|
|
2
|
%
|
|
5
|
%
|
|
4
|
%
|
|
0
|
%
|
|
2
|
%
|
International revenues (constant currency) - YoY % change
|
|
h, aa
|
|
5
|
%
|
|
4
|
%
|
|
3
|
%
|
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
|
4
|
%
|
International transactions - YoY % change
|
|
aa
|
|
5
|
%
|
|
4
|
%
|
|
5
|
%
|
|
5
|
%
|
|
6
|
%
|
|
4
|
%
|
|
5
|
%
|
International principal per transaction ($ - dollars)
|
|
aa
|
|
399
|
|
|
401
|
|
|
381
|
|
|
393
|
|
|
378
|
|
|
378
|
|
|
378
|
|
International principal per transaction - YoY % change
|
|
aa
|
|
6
|
%
|
|
4
|
%
|
|
(1)
|
%
|
|
3
|
%
|
|
(3)
|
%
|
|
(5)
|
%
|
|
(4)
|
%
|
International principal per transaction (constant currency) - YoY %
change
|
|
i, aa
|
|
1
|
%
|
|
1
|
%
|
|
(1)
|
%
|
|
1
|
%
|
|
(2)
|
%
|
|
(2)
|
%
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International revenues excl. US origination (GAAP) - YoY % change
|
|
bb
|
|
10
|
%
|
|
6
|
%
|
|
2
|
%
|
|
6
|
%
|
|
4
|
%
|
|
(1)
|
%
|
|
2
|
%
|
International revenues excl. US origination (constant currency) -
YoY % change
|
|
j, bb
|
|
5
|
%
|
|
4
|
%
|
|
3
|
%
|
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
|
4
|
%
|
International transactions excl. US origination - YoY % change
|
|
bb
|
|
6
|
%
|
|
5
|
%
|
|
5
|
%
|
|
6
|
%
|
|
7
|
%
|
|
5
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic channels revenues - YoY % change
|
|
cc
|
|
39
|
%
|
|
40
|
%
|
|
36
|
%
|
|
35
|
%
|
|
38
|
%
|
|
26
|
%
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Business (C2B) Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change
|
|
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
(3)
|
%
|
|
(1)
|
%
|
Revenues (constant currency) - YoY % change
|
|
k
|
|
2
|
%
|
|
3
|
%
|
|
3
|
%
|
|
2
|
%
|
|
3
|
%
|
|
0
|
%
|
|
1
|
%
|
Operating margin
|
|
|
|
24.6
|
%
|
|
21.0
|
%
|
|
27.3
|
%
|
|
23.9
|
%
|
|
26.5
|
%
|
|
22.4
|
%
|
|
24.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions (B2B) Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change
|
|
|
|
15
|
%
|
|
31
|
%
|
|
**
|
|
**
|
|
**
|
|
**
|
|
**
|
Revenues (constant currency) - YoY % change
|
|
l
|
|
7
|
%
|
|
22
|
%
|
|
**
|
|
**
|
|
**
|
|
**
|
|
**
|
Operating margin
|
|
|
|
(5.7)
|
%
|
|
(4.8)
|
%
|
|
(2.8)
|
%
|
|
(6.0)
|
%
|
|
(17.0)
|
%
|
|
(15.7)
|
%
|
|
(16.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total Company Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer segment revenues
|
|
|
|
84
|
%
|
|
84
|
%
|
|
83
|
%
|
|
84
|
%
|
|
81
|
%
|
|
81
|
%
|
|
81
|
%
|
Europe and CIS region revenues
|
|
t, u
|
|
24
|
%
|
|
24
|
%
|
|
23
|
%
|
|
24
|
%
|
|
22
|
%
|
|
22
|
%
|
|
22
|
%
|
North America region revenues
|
|
t, v
|
|
22
|
%
|
|
22
|
%
|
|
21
|
%
|
|
22
|
%
|
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
Middle East and Africa region revenues
|
|
t, w
|
|
15
|
%
|
|
16
|
%
|
|
16
|
%
|
|
15
|
%
|
|
15
|
%
|
|
15
|
%
|
|
15
|
%
|
APAC region revenues
|
|
t, x
|
|
12
|
%
|
|
12
|
%
|
|
12
|
%
|
|
12
|
%
|
|
12
|
%
|
|
12
|
%
|
|
12
|
%
|
LACA region revenues
|
|
t, y
|
|
9
|
%
|
|
8
|
%
|
|
9
|
%
|
|
9
|
%
|
|
9
|
%
|
|
9
|
%
|
|
9
|
%
|
westernunion.com region revenues
|
|
t, z
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
Consumer-to-Business segment revenues
|
|
|
|
12
|
%
|
|
12
|
%
|
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
|
11
|
%
|
Business Solutions segment revenues
|
|
|
|
2
|
%
|
|
2
|
%
|
|
5
|
%
|
|
3
|
%
|
|
6
|
%
|
|
6
|
%
|
|
6
|
%
|
Electronic channels revenues
|
|
cc
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
Prepaid revenues
|
|
dd
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Marketing expense
|
|
ee
|
|
4.1
|
%
|
|
4.5
|
%
|
|
4.4
|
%
|
|
4.1
|
%
|
|
3.8
|
%
|
|
3.7
|
%
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See page 15 of the press release for the applicable Note
references and the reconciliation of non-GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Calculation of growth percentage is not meaningful due to the
impact of the TGBP acquisition in November 2011.
|
|
|
THE WESTERN UNION COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
(in millions, except per share amounts)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2012
|
|
2011
|
|
Change
|
|
2012
|
|
2011
|
|
Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction fees
|
|
$
|
1,059.4
|
|
|
$
|
1,057.0
|
|
|
-
|
|
|
$
|
2,100.3
|
|
|
$
|
2,055.0
|
|
|
2
|
%
|
Foreign exchange revenues
|
|
|
334.6
|
|
|
|
279.2
|
|
|
20
|
%
|
|
|
657.2
|
|
|
|
535.3
|
|
|
23
|
%
|
Other revenues
|
|
|
31.1
|
|
|
|
30.1
|
|
|
3
|
%
|
|
|
61.0
|
|
|
|
59.0
|
|
|
3
|
%
|
Total revenues
|
|
|
1,425.1
|
|
|
|
1,366.3
|
|
|
4
|
%
|
|
|
2,818.5
|
|
|
|
2,649.3
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
797.5
|
|
|
|
764.2
|
|
|
4
|
%
|
|
|
1,580.5
|
|
|
|
1,509.6
|
|
|
5
|
%
|
Selling, general and administrative
|
|
|
281.7
|
|
|
|
251.4
|
|
|
12
|
%
|
|
|
559.6
|
|
|
|
476.1
|
|
|
18
|
%
|
Total expenses (a)
|
|
|
1,079.2
|
|
|
|
1,015.6
|
|
|
6
|
%
|
|
|
2,140.1
|
|
|
|
1,985.7
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
345.9
|
|
|
|
350.7
|
|
|
(1)
|
%
|
|
|
678.4
|
|
|
|
663.6
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
1.2
|
|
|
|
1.3
|
|
|
(8)
|
%
|
|
|
2.7
|
|
|
|
2.5
|
|
|
8
|
%
|
Interest expense
|
|
|
(45.1
|
)
|
|
|
(44.2
|
)
|
|
2
|
%
|
|
|
(89.5
|
)
|
|
|
(87.6
|
)
|
|
2
|
%
|
Derivative gains/(losses), net
|
|
|
(0.7
|
)
|
|
|
(1.3
|
)
|
|
(46)
|
%
|
|
|
0.9
|
|
|
|
0.6
|
|
|
50
|
%
|
Other income, net
|
|
|
8.8
|
|
|
|
26.9
|
|
|
(67)
|
%
|
|
|
7.7
|
|
|
|
29.0
|
|
|
(73)
|
%
|
Total other expense, net
|
|
|
(35.8
|
)
|
|
|
(17.3
|
)
|
|
(b
|
)
|
|
|
(78.2
|
)
|
|
|
(55.5
|
)
|
|
41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
310.1
|
|
|
|
333.4
|
|
|
(7)
|
%
|
|
|
600.2
|
|
|
|
608.1
|
|
|
(1)
|
%
|
Provision for income taxes
|
|
|
38.9
|
|
|
|
70.2
|
|
|
(45)
|
%
|
|
|
81.7
|
|
|
|
134.7
|
|
|
(39)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
271.2
|
|
|
$
|
263.2
|
|
|
3
|
%
|
|
$
|
518.5
|
|
|
$
|
473.4
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.44
|
|
|
$
|
0.42
|
|
|
5
|
%
|
|
$
|
0.84
|
|
|
$
|
0.74
|
|
|
14
|
%
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.41
|
|
|
7
|
%
|
|
$
|
0.84
|
|
|
$
|
0.74
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
610.9
|
|
|
|
631.1
|
|
|
|
|
|
|
615.0
|
|
|
|
639.0
|
|
|
|
Diluted
|
|
|
613.1
|
|
|
|
635.8
|
|
|
|
|
|
|
617.5
|
|
|
|
644.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share:
|
|
$
|
0.10
|
|
|
$
|
0.08
|
|
|
25
|
%
|
|
$
|
0.20
|
|
|
$
|
0.15
|
|
|
33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Total expenses includes TGBP integration expense of $3.4 million
and $3.6 million in cost of services and $11.1 million and $17.3
million in selling, general and administrative for the three and six
months ended June 30, 2012, respectively, and restructuring and
related expenses of $0.5 million and $7.4 million in cost of
services and $8.4 million and $25.5 million in selling, general and
administrative for the three and six months ended June 30, 2011,
respectively.
|
(b) Calculation not meaningful.
|
|
|
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2012
|
|
2011
|
Assets
|
|
|
|
|
Cash and cash equivalents (a)
|
|
$
|
1,403.8
|
|
|
$
|
1,370.9
|
|
Settlement assets
|
|
|
3,103.3
|
|
|
|
3,091.2
|
|
Property and equipment, net of accumulated depreciation
|
|
|
|
|
of $391.0 and $429.7, respectively
|
|
|
196.4
|
|
|
|
198.1
|
|
Goodwill
|
|
|
3,174.1
|
|
|
|
3,198.9
|
|
Other intangible assets, net of accumulated amortization
|
|
|
|
|
of $473.2 and $462.5, respectively
|
|
|
861.6
|
|
|
|
847.4
|
|
Other assets
|
|
|
426.8
|
|
|
|
363.4
|
|
Total assets
|
|
$
|
9,166.0
|
|
|
$
|
9,069.9
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
496.0
|
|
|
$
|
535.0
|
|
Settlement obligations
|
|
|
3,103.3
|
|
|
|
3,091.2
|
|
Income taxes payable
|
|
|
189.6
|
|
|
|
302.4
|
|
Deferred tax liability, net
|
|
|
388.8
|
|
|
|
389.7
|
|
Borrowings
|
|
|
3,673.1
|
|
|
|
3,583.2
|
|
Other liabilities
|
|
|
262.4
|
|
|
|
273.6
|
|
Total liabilities
|
|
|
8,113.2
|
|
|
|
8,175.1
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock, $1.00 par value; 10 shares
|
|
|
|
|
authorized; no shares issued
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.01 par value; 2,000 shares authorized;
|
|
|
|
|
604.5 shares and 619.4 shares issued and outstanding as of
|
|
|
|
|
June 30, 2012 and December 31, 2011, respectively
|
|
|
6.0
|
|
|
|
6.2
|
|
Capital surplus
|
|
|
311.0
|
|
|
|
247.1
|
|
Retained earnings
|
|
|
842.8
|
|
|
|
760.0
|
|
Accumulated other comprehensive loss
|
|
|
(107.0
|
)
|
|
|
(118.5
|
)
|
Total stockholders' equity
|
|
|
1,052.8
|
|
|
|
894.8
|
|
Total liabilities and stockholders' equity
|
|
$
|
9,166.0
|
|
|
$
|
9,069.9
|
|
|
|
|
|
|
_______
|
|
|
|
|
(a) Approximately $710 million was held by entities outside of the
United States as of June 30, 2012.
|
|
THE WESTERN UNION COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in millions)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash Flows From Operating Activities
|
|
|
|
|
Net income
|
|
$
|
518.5
|
|
|
$
|
473.4
|
|
Adjustments to reconcile net income to net cash provided by operating
|
|
|
activities:
|
|
|
|
|
Depreciation
|
|
|
31.3
|
|
|
|
30.4
|
|
Amortization
|
|
|
91.6
|
|
|
|
60.9
|
|
Gain on revaluation of equity interest
|
|
|
-
|
|
|
|
(29.4
|
)
|
Other non-cash items, net
|
|
|
1.2
|
|
|
|
3.6
|
|
Increase/(decrease) in cash, excluding the effects of acquisitions,
|
|
|
|
|
resulting from changes in:
|
|
|
|
|
Other assets
|
|
|
(19.8
|
)
|
|
|
(3.4
|
)
|
Accounts payable and accrued liabilities
|
|
|
(45.3
|
)
|
|
|
(48.4
|
)
|
Income taxes payable (a)
|
|
|
(111.1
|
)
|
|
|
42.4
|
|
Other liabilities
|
|
|
(20.7
|
)
|
|
|
(23.2
|
)
|
Net cash provided by operating activities
|
|
|
445.7
|
|
|
|
506.3
|
|
|
|
|
|
|
Cash Flows From Investing Activities
|
|
|
|
|
Capitalization of contract costs
|
|
|
(78.3
|
)
|
|
|
(44.8
|
)
|
Capitalization of purchased and developed software
|
|
|
(15.6
|
)
|
|
|
(4.0
|
)
|
Purchases of property and equipment
|
|
|
(27.4
|
)
|
|
|
(26.6
|
)
|
Acquisition of businesses
|
|
|
(4.8
|
)
|
|
|
(135.7
|
)
|
Net cash used in investing activities
|
|
|
(126.1
|
)
|
|
|
(211.1
|
)
|
|
|
|
|
|
Cash Flows From Financing Activities
|
|
|
|
|
Proceeds from exercise of options
|
|
|
45.0
|
|
|
|
91.6
|
|
Cash dividends paid
|
|
|
(122.3
|
)
|
|
|
(95.0
|
)
|
Common stock repurchased
|
|
|
(302.4
|
)
|
|
|
(658.5
|
)
|
Net proceeds from commercial paper
|
|
|
93.0
|
|
|
|
-
|
|
Net proceeds from issuance of borrowings
|
|
|
-
|
|
|
|
299.0
|
|
Net cash used in financing activities
|
|
|
(286.7
|
)
|
|
|
(362.9
|
)
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
32.9
|
|
|
|
(67.7
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
1,370.9
|
|
|
|
2,157.4
|
|
Cash and cash equivalents at end of period
|
|
$
|
1,403.8
|
|
|
$
|
2,089.7
|
|
|
|
|
|
|
_______
|
|
|
|
|
(a) The Company made tax payments of approximately $100 million
through the second quarter of 2012 due to the December 2011
agreement with the United States Internal Revenue Services ("IRS")
resolving substantially all of the issues related to the
restructuring of our international operations in 2003 ("IRS
Agreement").
|
|
THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2012
|
|
2011
|
|
Change
|
|
2012
|
|
2011
|
|
Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer (C2C):
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction fees
|
|
$
|
893.6
|
|
|
$
|
898.0
|
|
|
-
|
|
|
$
|
1,765.6
|
|
|
$
|
1,737.8
|
|
|
2
|
%
|
Foreign exchange revenues
|
|
|
248.9
|
|
|
|
245.4
|
|
|
1
|
%
|
|
|
488.3
|
|
|
|
472.8
|
|
|
3
|
%
|
Other revenues
|
|
|
12.5
|
|
|
|
11.7
|
|
|
7
|
%
|
|
|
25.7
|
|
|
|
22.6
|
|
|
14
|
%
|
Total Consumer-to-Consumer:
|
|
|
1,155.0
|
|
|
|
1,155.1
|
|
|
-
|
|
|
|
2,279.6
|
|
|
|
2,233.2
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Business (C2B):
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction fees
|
|
$
|
142.1
|
|
|
$
|
144.1
|
|
|
(1)
|
%
|
|
$
|
289.8
|
|
|
$
|
288.8
|
|
|
-
|
|
Foreign exchange revenues
|
|
|
0.9
|
|
|
|
2.3
|
|
|
(61)
|
%
|
|
|
1.7
|
|
|
|
3.2
|
|
|
(47)
|
%
|
Other revenues
|
|
|
6.4
|
|
|
|
7.1
|
|
|
(10)
|
%
|
|
|
13.0
|
|
|
|
14.7
|
|
|
(12)
|
%
|
Total Consumer-to-Business:
|
|
|
149.4
|
|
|
|
153.5
|
|
|
(3)
|
%
|
|
|
304.5
|
|
|
|
306.7
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions (B2B) (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction fees
|
|
$
|
10.0
|
|
|
$
|
1.1
|
|
|
(d
|
)
|
|
$
|
16.5
|
|
|
$
|
2.0
|
|
|
(d
|
)
|
Foreign exchange revenues
|
|
|
82.5
|
|
|
|
30.1
|
|
|
(d
|
)
|
|
|
162.6
|
|
|
|
56.9
|
|
|
(d
|
)
|
Other revenues
|
|
|
-
|
|
|
|
0.2
|
|
|
(d
|
)
|
|
|
0.3
|
|
|
|
0.4
|
|
|
(d
|
)
|
Total Business Solutions:
|
|
|
92.5
|
|
|
|
31.4
|
|
|
(d
|
)
|
|
|
179.4
|
|
|
|
59.3
|
|
|
(d
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues:
|
|
$
|
28.2
|
|
|
$
|
26.3
|
|
|
7
|
%
|
|
$
|
55.0
|
|
|
$
|
50.1
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated revenues
|
|
$
|
1,425.1
|
|
|
$
|
1,366.3
|
|
|
4
|
%
|
|
$
|
2,818.5
|
|
|
$
|
2,649.3
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer
|
|
$
|
328.9
|
|
|
$
|
329.8
|
|
|
-
|
|
|
$
|
640.2
|
|
|
$
|
638.4
|
|
|
-
|
|
Consumer-to-Business
|
|
|
33.5
|
|
|
|
37.7
|
|
|
(11)
|
%
|
|
|
74.6
|
|
|
|
72.3
|
|
|
3
|
%
|
Business Solutions (b)
|
|
|
(14.5
|
)
|
|
|
(1.8
|
)
|
|
(d
|
)
|
|
|
(29.3
|
)
|
|
|
(6.1
|
)
|
|
(d
|
)
|
Other
|
|
|
(2.0
|
)
|
|
|
(6.1
|
)
|
|
(67)
|
%
|
|
|
(7.1
|
)
|
|
|
(8.1
|
)
|
|
(12)
|
%
|
Total segment operating income
|
|
|
345.9
|
|
|
|
359.6
|
|
|
(4)
|
%
|
|
|
678.4
|
|
|
|
696.5
|
|
|
(3)
|
%
|
Restructuring and related expenses (c)
|
|
|
-
|
|
|
|
(8.9
|
)
|
|
(d
|
)
|
|
|
-
|
|
|
|
(32.9
|
)
|
|
(d
|
)
|
Total consolidated operating income
|
|
$
|
345.9
|
|
|
$
|
350.7
|
|
|
(1)
|
%
|
|
$
|
678.4
|
|
|
$
|
663.6
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer
|
|
|
28.5
|
%
|
|
|
28.6
|
%
|
|
(0.1)
|
%
|
|
|
28.1
|
%
|
|
|
28.6
|
%
|
|
(0.5)
|
%
|
Consumer-to-Business
|
|
|
22.4
|
%
|
|
|
24.6
|
%
|
|
(2.2)
|
%
|
|
|
24.5
|
%
|
|
|
23.6
|
%
|
|
0.9
|
%
|
Business Solutions
|
|
|
(15.7)
|
%
|
|
|
(5.7)
|
%
|
|
(10.0)
|
%
|
|
|
(16.3)
|
%
|
|
|
(10.3)
|
%
|
|
(6.0)
|
%
|
Total consolidated operating income margin
|
|
|
24.3
|
%
|
|
|
25.7
|
%
|
|
(1.4)
|
%
|
|
|
24.1
|
%
|
|
|
25.0
|
%
|
|
(0.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer
|
|
$
|
37.9
|
|
|
$
|
35.1
|
|
|
8
|
%
|
|
$
|
80.7
|
|
|
$
|
68.3
|
|
|
18
|
%
|
Consumer-to-Business
|
|
|
3.8
|
|
|
|
5.1
|
|
|
(25)
|
%
|
|
|
7.7
|
|
|
|
10.3
|
|
|
(25)
|
%
|
Business Solutions
|
|
|
15.4
|
|
|
|
4.6
|
|
|
(d
|
)
|
|
|
30.6
|
|
|
|
9.0
|
|
|
(d
|
)
|
Other
|
|
|
1.9
|
|
|
|
1.1
|
|
|
73
|
%
|
|
|
3.9
|
|
|
|
2.4
|
|
|
63
|
%
|
Total segment depreciation and amortization
|
|
|
59.0
|
|
|
|
45.9
|
|
|
29
|
%
|
|
|
122.9
|
|
|
|
90.0
|
|
|
37
|
%
|
Restructuring and related expenses (c)
|
|
|
-
|
|
|
|
0.7
|
|
|
(d
|
)
|
|
|
-
|
|
|
|
1.3
|
|
|
(d
|
)
|
Total consolidated depreciation and amortization
|
|
$
|
59.0
|
|
|
$
|
46.6
|
|
|
27
|
%
|
|
$
|
122.9
|
|
|
$
|
91.3
|
|
|
35
|
%
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The significant change in Business Solutions revenues for the
three and six months ended June 30, 2012 was primarily the result of
the acquisition of Travelex Global Business Payments on November 7,
2011.
|
(b) Business Solutions operating loss includes $14.5 million and
$20.9 million related to TGBP integration expense for the three and
six months ended June 30, 2012, respectively.
|
(c) Restructuring and related expenses are excluded from the
measurement of segment operating profit provided to the Chief
Operating Decision Maker for purposes of assessing segment
performance and decision making with respect to resource allocation.
|
(d) Calculation not meaningful.
|
|
THE WESTERN UNION COMPANY
|
NOTES TO KEY STATISTICS
|
(in millions, unless indicated otherwise)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Union's management believes the non-GAAP financial measures
presented provide meaningful supplemental information regarding our
operating results to assist management, investors, analysts, and
others in understanding our financial results and to better analyze
trends in our underlying business, because they provide consistency
and comparability to prior periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A non-GAAP financial measure should not be considered in isolation
or as a substitute for the most comparable GAAP financial measure. A
non-GAAP financial measure reflects an additional way of viewing
aspects of our operations that, when viewed with our GAAP results
and the reconciliation to the corresponding GAAP financial measure,
provide a more complete understanding of our business. Users of the
financial statements are encouraged to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. A reconciliation of non-GAAP
financial measures to the most directly comparable GAAP financial
measures is included below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All adjusted year-over-year changes were calculated using prior year
reported amounts, unless indicated otherwise.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q11
|
|
3Q11
|
|
4Q11
|
|
FY2011
|
|
1Q12
|
|
2Q12
|
|
YTD 2Q12
|
|
Consolidated Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Revenues, as reported (GAAP)
|
|
$
|
1,366.3
|
|
|
$
|
1,410.8
|
|
|
$
|
1,431.3
|
|
|
$
|
5,491.4
|
|
|
$
|
1,393.4
|
|
|
$
|
1,425.1
|
|
|
$
|
2,818.5
|
|
|
|
Foreign currency translation impact (m)
|
|
|
(32.5
|
)
|
|
|
(18.2
|
)
|
|
|
10.4
|
|
|
|
(38.0
|
)
|
|
|
8.1
|
|
|
|
34.6
|
|
|
|
42.7
|
|
|
|
Revenues, constant currency adjusted
|
|
$
|
1,333.8
|
|
|
$
|
1,392.6
|
|
|
$
|
1,441.7
|
|
|
$
|
5,453.4
|
|
|
$
|
1,401.5
|
|
|
$
|
1,459.7
|
|
|
$
|
2,861.2
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
$
|
1,273.4
|
|
|
$
|
1,329.6
|
|
|
$
|
1,357.0
|
|
|
$
|
5,192.7
|
|
|
$
|
1,283.0
|
|
|
$
|
1,366.3
|
|
|
$
|
2,649.3
|
|
|
|
Pro forma prior year revenues, TGBP adjusted (n)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
1,338.0
|
|
|
$
|
1,426.0
|
|
|
$
|
2,764.0
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
7
|
%
|
|
|
6
|
%
|
|
|
5
|
%
|
|
|
6
|
%
|
|
|
9
|
%
|
|
|
4
|
%
|
|
|
6
|
%
|
|
|
Revenue change, constant currency adjusted
|
|
|
5
|
%
|
|
|
5
|
%
|
|
|
6
|
%
|
|
|
5
|
%
|
|
|
9
|
%
|
|
|
7
|
%
|
|
|
8
|
%
|
|
|
Pro forma revenue change, TGBP adjusted
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
4
|
%
|
|
|
0
|
%
|
|
|
2
|
%
|
|
|
Pro forma revenue change, TGBP and constant currency adjusted (m)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
5
|
%
|
|
|
2
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
Operating income, as reported (GAAP)
|
|
$
|
350.7
|
|
|
$
|
363.0
|
|
|
$
|
358.4
|
|
|
$
|
1,385.0
|
|
|
$
|
332.5
|
|
|
$
|
345.9
|
|
|
$
|
678.4
|
|
|
|
Reversal of restructuring and related expenses (o)
|
|
|
8.9
|
|
|
|
13.9
|
|
|
|
-
|
|
|
|
46.8
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
Reversal of TGBP integration expense (p)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
4.8
|
|
|
|
4.8
|
|
|
|
6.4
|
|
|
|
14.5
|
|
|
|
20.9
|
|
|
|
Operating income, excl. restructuring and TGBP integration expense
|
|
$
|
359.6
|
|
|
$
|
376.9
|
|
|
$
|
363.2
|
|
|
$
|
1,436.6
|
|
|
$
|
338.9
|
|
|
$
|
360.4
|
|
|
$
|
699.3
|
|
|
|
Operating income margin, as reported (GAAP)
|
|
|
25.7
|
%
|
|
|
25.7
|
%
|
|
|
25.0
|
%
|
|
|
25.2
|
%
|
|
|
23.9
|
%
|
|
|
24.3
|
%
|
|
|
24.1
|
%
|
|
|
Operating income margin, excl. restructuring
|
|
|
26.3
|
%
|
|
|
26.7
|
%
|
|
|
25.0
|
%
|
|
|
26.1
|
%
|
|
|
23.9
|
%
|
|
|
24.3
|
%
|
|
|
24.1
|
%
|
|
|
Operating income margin, excl. restructuring and TGBP integration
expense
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
25.4
|
%
|
|
|
26.2
|
%
|
|
|
24.3
|
%
|
|
|
25.3
|
%
|
|
|
24.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
Operating income, as reported (GAAP)
|
|
$
|
350.7
|
|
|
$
|
363.0
|
|
|
$
|
358.4
|
|
|
$
|
1,385.0
|
|
|
$
|
332.5
|
|
|
$
|
345.9
|
|
|
$
|
678.4
|
|
|
|
Reversal of depreciation and amortization (q)
|
|
|
46.6
|
|
|
|
45.9
|
|
|
|
55.4
|
|
|
|
192.6
|
|
|
|
63.9
|
|
|
|
59.0
|
|
|
|
122.9
|
|
|
|
EBITDA (q)
|
|
$
|
397.3
|
|
|
$
|
408.9
|
|
|
$
|
413.8
|
|
|
$
|
1,577.6
|
|
|
$
|
396.4
|
|
|
$
|
404.9
|
|
|
$
|
801.3
|
|
|
|
Reversal of restructuring and related expenses (o)
|
|
|
8.2
|
|
|
|
13.9
|
|
|
|
-
|
|
|
|
45.5
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
Reversal of TGBP integration expense excluding trademark
amortization (p)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
4.8
|
|
|
|
4.8
|
|
|
|
6.4
|
|
|
|
13.0
|
|
|
|
19.4
|
|
|
|
EBITDA, excl. restructuring and TGBP integration expense
|
|
$
|
405.5
|
|
|
$
|
422.8
|
|
|
$
|
418.6
|
|
|
$
|
1,627.9
|
|
|
$
|
402.8
|
|
|
$
|
417.9
|
|
|
$
|
820.7
|
|
|
|
EBITDA margin
|
|
|
29.1
|
%
|
|
|
29.0
|
%
|
|
|
28.9
|
%
|
|
|
28.7
|
%
|
|
|
28.4
|
%
|
|
|
28.4
|
%
|
|
|
28.4
|
%
|
|
|
EBITDA margin, excl. restructuring and TGBP integration expense
|
|
|
29.7
|
%
|
|
|
30.0
|
%
|
|
|
29.2
|
%
|
|
|
29.6
|
%
|
|
|
28.9
|
%
|
|
|
29.3
|
%
|
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
|
|
Net income, as reported (GAAP)
|
|
$
|
263.2
|
|
|
$
|
239.7
|
|
|
$
|
452.3
|
|
|
$
|
1,165.4
|
|
|
$
|
247.3
|
|
|
$
|
271.2
|
|
|
$
|
518.5
|
|
|
|
Reversal of restructuring and related expenses, net of income tax
benefit (o)
|
|
|
5.9
|
|
|
|
9.7
|
|
|
|
-
|
|
|
|
32.0
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
Net income, restructuring adjusted
|
|
$
|
269.1
|
|
|
$
|
249.4
|
|
|
$
|
452.3
|
|
|
$
|
1,197.4
|
|
|
$
|
247.3
|
|
|
$
|
271.2
|
|
|
$
|
518.5
|
|
|
|
Reversal of IRS Agreement tax provision benefit (r)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
(204.7
|
)
|
|
|
(204.7
|
)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
Net income, restructuring and IRS Agreement adjusted
|
|
$
|
269.1
|
|
|
$
|
249.4
|
|
|
$
|
247.6
|
|
|
$
|
992.7
|
|
|
$
|
247.3
|
|
|
$
|
271.2
|
|
|
$
|
518.5
|
|
|
|
Reversal of TGBP integration expense, net of income tax benefit (p)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
3.1
|
|
|
|
3.1
|
|
|
|
4.3
|
|
|
|
10.2
|
|
|
|
14.5
|
|
|
|
Net income, restructuring, IRS Agreement and TGBP integration
expense adjusted
|
|
$
|
269.1
|
|
|
$
|
249.4
|
|
|
$
|
250.7
|
|
|
$
|
995.8
|
|
|
$
|
251.6
|
|
|
$
|
281.4
|
|
|
$
|
533.0
|
|
|
|
Diluted earnings per share ("EPS"), as reported (GAAP) ($ - dollars)
|
|
$
|
0.41
|
|
|
$
|
0.38
|
|
|
$
|
0.73
|
|
|
$
|
1.84
|
|
|
$
|
0.40
|
|
|
$
|
0.44
|
|
|
$
|
0.84
|
|
|
|
Impact from restructuring and related expenses, net of income tax
benefit (o) ($ - dollars)
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
-
|
|
|
|
0.05
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
Diluted EPS, restructuring adjusted ($ - dollars)
|
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
$
|
0.73
|
|
|
$
|
1.89
|
|
|
$
|
0.40
|
|
|
$
|
0.44
|
|
|
$
|
0.84
|
|
|
|
Impact from IRS Agreement tax provision benefit (r) ($ - dollars)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
(0.33
|
)
|
|
|
(0.32
|
)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
Diluted EPS, restructuring and IRS Agreement adjusted ($ - dollars)
|
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
1.57
|
|
|
$
|
0.40
|
|
|
$
|
0.44
|
|
|
$
|
0.84
|
|
|
|
Impact from TGBP integration expense, net of income tax benefit (p)
($ - dollars)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
Diluted EPS, restructuring, IRS Agreement and TGBP integration
expense adjusted ($ - dollars)
|
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
1.57
|
|
|
$
|
0.40
|
|
|
$
|
0.46
|
|
|
$
|
0.86
|
|
|
|
Diluted weighted-average shares outstanding
|
|
|
635.8
|
|
|
|
627.1
|
|
|
|
621.7
|
|
|
|
634.2
|
|
|
|
621.9
|
|
|
|
613.1
|
|
|
|
617.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e)
|
|
Revenues, as reported (GAAP)
|
|
$
|
1,155.1
|
|
|
$
|
1,193.3
|
|
|
$
|
1,181.9
|
|
|
$
|
4,608.4
|
|
|
$
|
1,124.6
|
|
|
$
|
1,155.0
|
|
|
$
|
2,279.6
|
|
|
|
Foreign currency translation impact (m)
|
|
|
(31.4
|
)
|
|
|
(17.9
|
)
|
|
|
8.0
|
|
|
|
(39.1
|
)
|
|
|
5.2
|
|
|
|
30.1
|
|
|
|
35.3
|
|
|
|
Revenues, constant currency adjusted
|
|
$
|
1,123.7
|
|
|
$
|
1,175.4
|
|
|
$
|
1,189.9
|
|
|
$
|
4,569.3
|
|
|
$
|
1,129.8
|
|
|
$
|
1,185.1
|
|
|
$
|
2,314.9
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
$
|
1,073.1
|
|
|
$
|
1,128.3
|
|
|
$
|
1,151.8
|
|
|
$
|
4,383.4
|
|
|
$
|
1,078.1
|
|
|
$
|
1,155.1
|
|
|
$
|
2,233.2
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
8
|
%
|
|
|
6
|
%
|
|
|
3
|
%
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
0
|
%
|
|
|
2
|
%
|
|
|
Revenue change, constant currency adjusted
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
5
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f)
|
|
Principal per transaction, as reported ($ - dollars)
|
|
$
|
365
|
|
|
$
|
366
|
|
|
$
|
349
|
|
|
$
|
360
|
|
|
$
|
346
|
|
|
$
|
344
|
|
|
$
|
345
|
|
|
|
Foreign currency translation impact (m) ($ - dollars)
|
|
|
(14
|
)
|
|
|
(11
|
)
|
|
|
2
|
|
|
|
(6
|
)
|
|
|
3
|
|
|
|
11
|
|
|
|
7
|
|
|
|
Principal per transaction, constant currency adjusted ($ - dollars)
|
|
$
|
351
|
|
|
$
|
355
|
|
|
$
|
351
|
|
|
$
|
354
|
|
|
$
|
349
|
|
|
$
|
355
|
|
|
$
|
352
|
|
|
|
Prior year principal per transaction, as reported ($ - dollars)
|
|
$
|
351
|
|
|
$
|
355
|
|
|
$
|
356
|
|
|
$
|
355
|
|
|
$
|
360
|
|
|
$
|
365
|
|
|
$
|
363
|
|
|
|
Principal per transaction change, as reported
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
(2)
|
%
|
|
|
1
|
%
|
|
|
(4)
|
%
|
|
|
(6)
|
%
|
|
|
(5)
|
%
|
|
|
Principal per transaction change, constant currency adjusted
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
(1)
|
%
|
|
|
0
|
%
|
|
|
(3)
|
%
|
|
|
(3)
|
%
|
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
|
|
Cross-border principal, as reported ($ - billions)
|
|
$
|
18.6
|
|
|
$
|
19.0
|
|
|
$
|
18.5
|
|
|
$
|
73.2
|
|
|
$
|
17.5
|
|
|
$
|
18.2
|
|
|
$
|
35.7
|
|
|
|
Foreign currency translation impact (m) ($ - billions)
|
|
|
(0.8
|
)
|
|
|
(0.6
|
)
|
|
|
0.2
|
|
|
|
(1.2
|
)
|
|
|
0.2
|
|
|
|
0.6
|
|
|
|
0.8
|
|
|
|
Cross-border principal, constant currency adjusted ($ - billions)
|
|
$
|
17.8
|
|
|
$
|
18.4
|
|
|
$
|
18.7
|
|
|
$
|
72.0
|
|
|
$
|
17.7
|
|
|
$
|
18.8
|
|
|
$
|
36.5
|
|
|
|
Prior year cross-border principal, as reported ($ - billions)
|
|
$
|
16.8
|
|
|
$
|
17.6
|
|
|
$
|
18.1
|
|
|
$
|
68.6
|
|
|
$
|
17.1
|
|
|
$
|
18.6
|
|
|
$
|
35.7
|
|
|
|
Cross-border principal change, as reported
|
|
|
10
|
%
|
|
|
8
|
%
|
|
|
2
|
%
|
|
|
7
|
%
|
|
|
2
|
%
|
|
|
(2)
|
%
|
|
|
0
|
%
|
|
|
Cross-border principal change, constant currency adjusted
|
|
|
6
|
%
|
|
|
5
|
%
|
|
|
3
|
%
|
|
|
5
|
%
|
|
|
3
|
%
|
|
|
1
|
%
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h)
|
|
International revenues, as reported (GAAP)
|
|
$
|
962.9
|
|
|
$
|
995.7
|
|
|
$
|
995.5
|
|
|
$
|
3,855.8
|
|
|
$
|
936.9
|
|
|
$
|
964.3
|
|
|
$
|
1,901.2
|
|
|
|
Foreign currency translation impact (m)
|
|
|
(30.7
|
)
|
|
|
(17.4
|
)
|
|
|
7.5
|
|
|
|
(38.0
|
)
|
|
|
4.9
|
|
|
|
29.2
|
|
|
|
34.1
|
|
|
|
International revenues, constant currency adjusted
|
|
$
|
932.2
|
|
|
$
|
978.3
|
|
|
$
|
1,003.0
|
|
|
$
|
3,817.8
|
|
|
$
|
941.8
|
|
|
$
|
993.5
|
|
|
$
|
1,935.3
|
|
|
|
Prior year international revenues, as reported (GAAP)
|
|
$
|
890.8
|
|
|
$
|
944.0
|
|
|
$
|
972.4
|
|
|
$
|
3,669.2
|
|
|
$
|
901.7
|
|
|
$
|
962.9
|
|
|
$
|
1,864.6
|
|
|
|
International revenue change, as reported (GAAP)
|
|
|
8
|
%
|
|
|
5
|
%
|
|
|
2
|
%
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
0
|
%
|
|
|
2
|
%
|
|
|
International revenue change, constant currency adjusted
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
|
International principal per transaction, as reported ($ - dollars)
|
|
$
|
399
|
|
|
$
|
401
|
|
|
$
|
381
|
|
|
$
|
393
|
|
|
$
|
378
|
|
|
$
|
378
|
|
|
$
|
378
|
|
|
|
Foreign currency translation impact (m) ($ - dollars)
|
|
|
(18
|
)
|
|
|
(13
|
)
|
|
|
3
|
|
|
|
(8
|
)
|
|
|
4
|
|
|
|
14
|
|
|
|
9
|
|
|
|
International principal per transaction, constant currency adjusted
($ - dollars)
|
|
$
|
381
|
|
|
$
|
388
|
|
|
$
|
384
|
|
|
$
|
385
|
|
|
$
|
382
|
|
|
$
|
392
|
|
|
$
|
387
|
|
|
|
Prior year international principal per transaction, as reported ($ -
dollars)
|
|
$
|
376
|
|
|
$
|
384
|
|
|
$
|
386
|
|
|
$
|
382
|
|
|
$
|
390
|
|
|
$
|
399
|
|
|
$
|
394
|
|
|
|
International principal per transaction change, as reported
|
|
|
6
|
%
|
|
|
4
|
%
|
|
|
(1)
|
%
|
|
|
3
|
%
|
|
|
(3)
|
%
|
|
|
(5)
|
%
|
|
|
(4)
|
%
|
|
|
International principal per transaction change, constant currency
adjusted
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
(1)
|
%
|
|
|
1
|
%
|
|
|
(2)
|
%
|
|
|
(2)
|
%
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(j)
|
|
International excl. US origination revenues, as reported (GAAP)
|
|
$
|
788.6
|
|
|
$
|
822.2
|
|
|
$
|
815.5
|
|
|
$
|
3,158.5
|
|
|
$
|
759.6
|
|
|
$
|
784.1
|
|
|
$
|
1,543.7
|
|
|
|
Foreign currency translation impact (m)
|
|
|
(30.7
|
)
|
|
|
(17.4
|
)
|
|
|
7.5
|
|
|
|
(38.0
|
)
|
|
|
4.9
|
|
|
|
29.2
|
|
|
|
34.1
|
|
|
|
International excl. US origination revenues, constant currency
adjusted
|
|
$
|
757.9
|
|
|
$
|
804.8
|
|
|
$
|
823.0
|
|
|
$
|
3,120.5
|
|
|
$
|
764.5
|
|
|
$
|
813.3
|
|
|
$
|
1,577.8
|
|
|
|
Prior year international excl. US origination revenues, as reported
(GAAP)
|
|
$
|
719.2
|
|
|
$
|
774.3
|
|
|
$
|
797.6
|
|
|
$
|
2,990.9
|
|
|
$
|
732.2
|
|
|
$
|
788.6
|
|
|
$
|
1,520.8
|
|
|
|
International excl. US origination revenues change, as reported
(GAAP)
|
|
|
10
|
%
|
|
|
6
|
%
|
|
|
2
|
%
|
|
|
6
|
%
|
|
|
4
|
%
|
|
|
(1)
|
%
|
|
|
2
|
%
|
|
|
International excl. US origination revenues change, constant
currency adjusted
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Business Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(k)
|
|
Revenues, as reported (GAAP)
|
|
$
|
153.5
|
|
|
$
|
155.3
|
|
|
$
|
153.9
|
|
|
$
|
615.9
|
|
|
$
|
155.1
|
|
|
$
|
149.4
|
|
|
$
|
304.5
|
|
|
|
Foreign currency translation impact (m)
|
|
|
1.1
|
|
|
|
1.5
|
|
|
|
2.5
|
|
|
|
6.4
|
|
|
|
2.9
|
|
|
|
3.5
|
|
|
|
6.4
|
|
|
|
Revenues, constant currency adjusted
|
|
$
|
154.6
|
|
|
$
|
156.8
|
|
|
$
|
156.4
|
|
|
$
|
622.3
|
|
|
$
|
158.0
|
|
|
$
|
152.9
|
|
|
$
|
310.9
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
610.7
|
|
|
$
|
153.2
|
|
|
$
|
153.5
|
|
|
$
|
306.7
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
(3)
|
%
|
|
|
(1)
|
%
|
|
|
Revenue change, constant currency adjusted
|
|
|
2
|
%
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
2
|
%
|
|
|
3
|
%
|
|
|
0
|
%
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(l)
|
|
Revenues, as reported (GAAP)
|
|
$
|
31.4
|
|
|
$
|
33.6
|
|
|
$
|
68.2
|
|
|
$
|
161.1
|
|
|
$
|
86.9
|
|
|
$
|
92.5
|
|
|
$
|
179.4
|
|
|
|
Foreign currency translation impact (m)
|
|
|
(2.2
|
)
|
|
|
(2.1
|
)
|
|
|
(0.1
|
)
|
|
|
(5.7
|
)
|
|
|
(0.1
|
)
|
|
|
0.9
|
|
|
|
0.8
|
|
|
|
Revenues, constant currency adjusted
|
|
$
|
29.2
|
|
|
$
|
31.5
|
|
|
$
|
68.1
|
|
|
$
|
155.4
|
|
|
$
|
86.8
|
|
|
$
|
93.4
|
|
|
$
|
180.2
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
106.7
|
|
|
$
|
27.9
|
|
|
$
|
31.4
|
|
|
$
|
59.3
|
|
|
|
Pro forma prior year revenues, TGBP adjusted (n)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
82.9
|
|
|
$
|
91.1
|
|
|
$
|
174.0
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
15
|
%
|
|
|
31
|
%
|
|
**
|
|
**
|
|
**
|
|
**
|
|
**
|
|
|
Revenue change, constant currency adjusted
|
|
|
7
|
%
|
|
|
22
|
%
|
|
**
|
|
**
|
|
**
|
|
**
|
|
**
|
|
|
Pro forma revenue change, TGBP adjusted
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
5
|
%
|
|
|
2
|
%
|
|
|
3
|
%
|
|
|
Pro forma revenue change, TGBP and constant currency adjusted (m)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
4
|
%
|
|
|
4
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Outlook Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue change (GAAP)
|
|
|
4
|
%
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation impact (s)
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue change, constant currency adjusted
|
|
|
6
|
%
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin (GAAP)
|
|
|
24.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TGBP integration expense impact (p)
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin, TGBP integration expense adjusted
|
|
|
25.5
|
%
|
|
|
|
|
|
|
|
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Operating income margin (GAAP)
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24.5
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%
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Depreciation and amortization impact (q)
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4.5
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%
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TGBP integration expense impact (p)
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1.0
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%
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EBITDA margin, TGBP integration expense adjusted
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30.0
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%
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Range
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EPS guidance (GAAP) ($ - dollars)
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$
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1.68
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$
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1.72
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TGBP integration expense impact, net of tax benefit (p) ($ - dollars)
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0.05
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0.05
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EPS guidance, TGBP integration expense adjusted ($ - dollars)
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$
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1.73
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$
|
1.77
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Range
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Operating cash flow (GAAP) ($ - billions)
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$
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1.1
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$
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1.2
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Payments on IRS Agreement (r) ($ - billions)
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0.1
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0.1
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Operating cash flow, IRS Agreement adjusted ($ - billions)
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$
|
1.2
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$
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1.3
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Non-GAAP related notes:
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(m)
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Represents the impact from the fluctuation in exchange rates between
all foreign currency denominated amounts and the United States
dollar. Constant currency results exclude any benefit or loss caused
by foreign exchange fluctuations between foreign currencies and the
United States dollar, net of foreign currency hedges, which would
not have occurred if there had been a constant exchange rate. In pro
forma calculations, also includes the currency impact of $(1.6)
million and $(1.3) million for the three and six months ended June
30, 2012 associated with the acquisition of Travelex Global Business
Payments ("TGBP").
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(n)
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Represents the pro forma incremental impact of TGBP on Consolidated
and Business Solutions segment revenues. Pro forma revenues presents
the results of operations of the Company and its Business Solutions
segment as they may have appeared had the acquisition of TGBP
occurred as of January 1, 2011. The pro forma information is
provided for illustrative purposes only and does not purport to
present what the actual results of operations would have been had
the acquisition actually occurred on the date indicated. The results
of operations for TGBP have been included in Consolidated and
Business Solutions segment revenues from November 7, 2011, the date
of acquisition.
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(o)
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Restructuring and related expenses consist of direct and incremental
expenses including the impact from fluctuations in exchange rates
associated with restructuring and related activities, consisting of
severance, outplacement and other related benefits; facility closure
and migration of the Company's IT infrastructure; and other expenses
related to the relocation of various operations to new or existing
Company facilities and third-party providers, including hiring,
training, relocation, travel, and professional fees. Also included
in the facility closure expenses are non-cash expenses related to
fixed asset and leasehold improvement write-offs and the
acceleration of depreciation and amortization. Restructuring and
related expenses were not allocated to the segments.
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(p)
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TGBP integration expense consists primarily of severance and other
benefits, retention, direct and incremental expense consisting of
facility relocation, consolidation and closures; IT systems
integration; amortization of a transitional trademark license; and
other expenses such as training, travel and professional fees.
Integration expense does not include costs related to the completion
of the TGBP acquisition.
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(q)
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Earnings before Interest, Taxes, Depreciation and Amortization
(EBITDA) results from taking operating income and adjusting for
depreciation and amortization expenses.
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(r)
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|
Represents the impact from the tax benefit in December 2011 due to
the agreement with the IRS resolving substantially all issues
related to the restructuring of our international operations in 2003
of $204.7 million. The Company made tax payments of approximately
$100 million through the second quarter of 2012 and expects to pay
the majority of the remaining tax payments of approximately $90
million in 2013.
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(s)
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|
Represents the estimated impact from the fluctuation in exchange
rates between all foreign currency denominated amounts and the
United States dollar. Constant currency results exclude any
estimated benefit or loss caused by foreign exchange fluctuations
between foreign currencies and the United States dollar, net of
foreign currency hedges, which would not have occurred if there had
been a constant exchange rate.
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Other notes:
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(t)
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Geographic split is determined based upon the region where the money
transfer is initiated and the region where the money transfer is
paid. For transactions originated and paid in different regions, the
Company splits the transaction count and revenue between the two
regions, with each region receiving 50%. For money transfers
initiated and paid in the same region, 100% of the revenue and
transactions are attributed to that region. For money transfers
initiated through the Company’s websites (“westernunion.com”), 100%
of the revenue and transactions are attributed to that business.
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(u)
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|
Represents the Europe and the Commonwealth of Independent States
("CIS") region of our Consumer-to-Consumer segment.
|
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(v)
|
|
Represents the North America region, including the United States,
Mexico, and Canada, of our Consumer-to-Consumer segment.
|
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(w)
|
|
Represents the Middle East and Africa region of our
Consumer-to-Consumer segment.
|
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(x)
|
|
Represents the Asia Pacific ("APAC") region of our
Consumer-to-Consumer segment, including India, China, and South Asia.
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(y)
|
|
Represents the Latin America and the Caribbean ("LACA") region of
our Consumer-to-Consumer segment.
|
|
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(z)
|
|
Represents transactions initiated on westernunion.com which are
primarily paid out at Western Union agent locations in the
respective regions.
|
|
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(aa)
|
|
Represents transactions between and within foreign countries
(excluding Canada and Mexico), transactions originated in the United
States or Canada and paid elsewhere, and transactions originated
outside the United States or Canada and paid in the United States or
Canada. Excludes all transactions between or within the United
States and Canada and all transactions to and from Mexico.
|
|
|
|
(bb)
|
|
Represents transactions between and within foreign countries
(excluding Canada and Mexico). Excludes all transactions originated
in the United States and all transactions to and from Mexico.
|
|
|
|
(cc)
|
|
Represents revenue generated from electronic channels, which include
westernunion.com, account based money transfer and mobile money
transfer (included in the various segments).
|
|
|
|
(dd)
|
|
Represents revenue from prepaid services. This revenue is included
within Other.
|
|
|
|
(ee)
|
|
Marketing expense includes advertising, events, costs to administer
loyalty programs, and the cost of employees dedicated to marketing
activities.
|
![](https://webarchive.library.unt.edu/web/20121219211457im_/http://cts.businesswire.com/ct/CT?id=bwnews&sty=20120724005346r1&sid=acqr4&distro=nx)
Source: Western Union