UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 26, 2011

THE WESTERN UNION COMPANY
(Exact name of registrant as specified in its charter)

 
					
Delaware	 	001-32903	 	20-4531180	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	

12500 East Belford Avenue
Englewood, Colorado	 	80112	
(Address of principal executive offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (866) 405-5012
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02.	Results of Operations and Financial Condition	
On April 26, 2011, The Western Union Company (the “Company”) issued a press release relating to the Company’s earnings for the first quarter of fiscal year 2011 (the “Earnings Release”). A copy of the Earnings Release is attached as Exhibit 99.1. The information furnished under this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.
 
Item 7.01.	Regulation FD Disclosure	
In connection with the issuance of the Earnings Release, the Company is holding a public conference call and webcast on April 26, 2011 at 4:30 p.m. Eastern Time, during which Hikmet Ersek, President and Chief Executive Officer, and Scott T. Scheirman, Executive Vice President and Chief Financial Officer, will provide the presentation attached as Exhibit 99.2. Information regarding access to the conference call and webcast is set forth in the Earnings Release. The information furnished under this Item 7.01, including Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.
 
Item 9.01.	Financial Statements and Exhibits	
The following is a list of the Exhibits furnished herewith.

Exhibit
Number	  	Description of Exhibit	
		
99.1	  	Press release issued by the Company on April 26, 2011.	
		
99.2	  	Presentation of the Company dated April 26, 2011.	
 
2

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

Dated: April 26, 2011	 		 	THE WESTERN UNION COMPANY	
				
	 		 	By:	 	/s/    D ARREN A. D RAGOVICH        	
	 		 		 	Darren A. Dragovich	
	 		 		 	Assistant Secretary	
 
3

EXHIBIT INDEX

Exhibit
No.	  	Description	
		
99.1	  	Press release of The Western Union Company dated April 26, 2011.	
		
99.2	  	Presentation of The Western Union Company dated April 26, 2011.	
 
4

Exhibit 99.1

			
Contacts:	 		
Media	 	Investors	
Tom Fitzgerald	 	Mike Salop	
720-332-4374	 	720-332-8276	
tom.fitzgerald@westernunion.com	 	mike.salop@westernunion.com	
Western Union Reports First Quarter Results
Revenue Increases 4%
$525 Million of Share Repurchases in Quarter
2011 Financial Outlook Affirmed

Englewood, Colo., Apr. 26, 2011 – The Western Union Company (NYSE: WU) today reported financial results for the 2011 first quarter.
Financial highlights for the quarter included:
 
 	•	 	Revenue of $1.3 billion, a reported and constant currency increase of 4% compared to last year’s first quarter	
 
 	•	 	Operating margin of 24.4%, or 26.3% excluding restructuring expenses, compared to 25.6% in the prior year (no restructuring expenses in prior year period)	
 
 	•	 	EPS of $0.32, or $0.35 excluding restructuring expenses, compared to $0.30 in the prior year (no restructuring expenses in prior year period)	
 
 	•	 	Cash provided by operating activities of $252 million	
 
 	•	 	Restructuring expenses of $24 million, or $16 million after-tax, related to organizational changes and other actions as previously disclosed by the Company	
Operational highlights for the quarter included:
 
 	•	 	Consumer-to-consumer (C2C) reported and constant currency revenue increase of 5% on transaction growth of 7%; C2C represented 84% of Company revenues	
 
 	•	 	Europe, Middle East, Africa and South Asia (EMEASA) region revenue increase of 2% on transaction growth of 4%	
 
 	•	 	Americas region revenue increase of 6% on transaction growth of 8%	
 
 	•	 	Asia Pacific (APAC) region revenue increase of 14% on transaction growth of 11%	
 
 	•	 	C2C operating margin of 28.6% compared to 27.4% in prior year	
 
 	•	 	Global Business Payments revenue flat	
 
 	•	 	Bill payments revenue decrease of 2%	
 
 	•	 	Western Union Business Solutions revenue increase of 13%	
 
 	•	 	Global Business Payments operating margin of 16.5% compared to 20.7% in the prior year and 13.3% in the fourth quarter of 2010	
 
1

 	•	 	Electronic channels revenue increase of over 20%. Electronic channels, which include westernunion.com, account based money transfer, and mobile money transfer, represented 3% of total company revenue for the quarter	
 
 	•	 	Prepaid cards in force of over 1 million, with retail distribution available at 10,000 U.S. locations	
 
 	•	 	Growth in agent locations to 455,000	
 
 	•	 	Share repurchases of $525 million (25 million shares at an average price of $20.95 per share), and $45 million of quarterly dividends paid	
Additional Statistics
Additional key statistics for the quarter and historical trends can be found in the supplemental table included with this press release.
Western Union President and Chief Executive Officer Hikmet Ersek said , “The first quarter results demonstrate the benefits of our diversified business, with presence in more than 200 countries and territories. Strong revenue growth in Asia Pacific and solid increases in the Americas and much of Europe helped deliver another good quarter. Our U.S. domestic money transfer growth trends continued, bill payments revenue declines slowed, and Western Union Business Solutions provided strong growth.”
Ersek continued, “Progress continued with our other strategic initiatives of expanding electronic channels and developing our product portfolio. We recently signed agreements to add on-line banking money transfer to our suite of services offered by US Bank, which is our first such agreement with a Top 10 bank in the U.S., and with Emirates NBD Bank in the UAE. We further developed our mobile money transfer capabilities across the world with new agreements in the Middle East and Africa and enablement of more agent locations for cash to mobile service. In prepaid, we have exceeded one million cards in force in the U.S., and will be introducing prepaid products in some international markets this year.”
Ersek added, “We deployed capital constructively in the quarter, as we repurchased $525 million of shares. Last week we completed the acquisition of one of our leading money transfer network agents in Europe, Angelo Costa S.r.l. This acquisition will allow us to more directly access our network locations, more quickly introduce new products and services, and gain scale benefits on costs by leveraging existing European infrastructure. Our business model continues to generate strong cash flow, which we plan to invest back in the business, utilize for strategic acquisitions to aid our growth strategies, and return to shareholders through stock repurchase and dividends.”
 
2

2011 Outlook
The Company affirms its full year 2011 financial outlook provided on February 1st:
 
 	•	 	Constant currency revenue growth in a range of +3% to +4%	
 
 	•	 	GAAP revenue growth similar to constant currency	
 
 	•	 	GAAP operating margin of approximately 26%	
 
 	•	 	Operating margin of approximately 27%, excluding restructuring charges	
 
 	•	 	GAAP EPS of $1.41 to $1.46	
 
 	•	 	EPS excluding restructuring charges of $1.47 to $1.52	
 
 	•	 	GAAP cash flows from operating activities of $1.2 billion to $1.3 billion	
Non-GAAP Measures
Western Union presents a number of non-GAAP measurements 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 measurements include revenue change constant currency adjusted, operating income margin and earnings per share excluding restructuring expenses, consumer-to-consumer segment revenue change constant currency adjusted, 2011 earnings per share outlook excluding restructuring expenses, 2011 operating income margin outlook excluding restructuring expenses, 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 web site at www.westernunion.com .
Restructuring
Western Union incurred $24 million in restructuring expenses in the first quarter from previously announced actions. Approximately $7 million was included in cost of services and $17 million was included in selling, general, and administrative expense. The Company did not incur any restructuring expenses in the first quarter of 2010.
For the 2010 full year, Western Union incurred $60 million in restructuring expenses from previously announced actions. Approximately $15 million was included in cost of services and $45 million was included in selling, general, and administrative expense.
The Company expects to record a total of approximately $50 million of restructuring charges in 2011. The restructuring charges relate primarily to organizational changes designed to simplify business processes, move decision-making closer to the marketplace, and leverage the cost structure. The Company realized pre-tax savings from the initiatives of $8 million in 2010, and expects approximately $50 million of savings in 2011, and $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
 
3

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 4:30 p.m. Eastern Time today. To listen to the conference call live via telephone, dial 800-299-0433 (U.S.) or +1-617-801-9712 (outside the U.S.) ten minutes prior to the start of the call. The pass code is 61990926.
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 May 3, 2011, at 888-286-8010 (U.S.) or +1-617-801-6888 (outside the U.S.). The pass code is 51022490. 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.
 
4

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, 2010. 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: changes in immigration laws, 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 products, services and enhancements, and gain market acceptance of such products; the failure by us, our agents or subagents to comply with our business and technology standards and contract requirements or applicable laws and regulations, especially laws designed to prevent money laundering, terrorist financing and anti-competitive behavior, and/or changing regulatory or enforcement interpretations of those laws; the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules promulgated there-under; changes in United States or foreign laws, rules and regulations including the Internal Revenue Code, and governmental or judicial interpretations thereof; changes in general economic conditions and economic conditions in the regions and industries in which we operate; political conditions and related actions in the United States and abroad which may adversely affect our businesses 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; our ability to resolve tax matters with the Internal Revenue Service and other tax authorities consistent with our reserves; failure to comply with the settlement agreement with the State of Arizona; liabilities and unanticipated developments resulting from litigation and regulatory investigations and similar matters, including costs, expenses, settlements and judgments; mergers, acquisitions and integration of acquired businesses and technologies into our Company, and the realization of anticipated financial benefits from these acquisitions; failure to maintain sufficient amounts or types of regulatory capital to meet the changing requirements of our regulators worldwide; deterioration in consumers’ and clients’ confidence in our business, or in money transfer providers generally; 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; any material breach of security 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; failure to implement agent contracts according to schedule; 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; cessation of various services provided to us by third-party vendors; 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; 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; changes in industry standards affecting our business; changes in accounting standards, rules and interpretations; significantly slower growth or declines in the money transfer market and other markets in which we operate; adverse consequences from our spin-off from First Data Corporation; decisions to change our business mix; 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. The Western Union, Vigo and Orlandi Valuta branded services are offered through a combined network of approximately 455,000 agent locations in 200 countries and territories. In 2010, The Western Union Company completed 214 million consumer-to-consumer transactions worldwide, moving $76 billion of principal between consumers, and 405 million business payments. For more information, visit www.westernunion.com .
WU-F, WU-G
 
5

THE WESTERN UNION COMPANY
KEY STATISTICS
(unaudited)

 	  	Notes*	 	  	1Q10	 	 	2Q10	 	 	3Q10	 	 	4Q10	 	 	FY2010	 	 	1Q11	 	
Consolidated Metrics	  				  				 				 				 				 				 			 	
Consolidated revenue (GAAP) - YoY % change	  				  	 	3	 % 	 	 	2	 % 	 	 	1	 % 	 	 	3	 % 	 	 	2	 % 	 	 	4	 % 	
Consolidated revenue (constant currency) - YoY   % change	  	 	a	  	  	 	1	 % 	 	 	3	 % 	 	 	3	 % 	 	 	5	 % 	 	 	3	 % 	 	 	4	 % 	
Agent locations	  				  	 	420,000	  	 	 	430,000	  	 	 	435,000	  	 	 	445,000	  	 	 	445,000	  	 	 	455,000	  	
							 	
Consumer-to-Consumer Segment	  				  				 				 				 				 				 			 	
Revenue (GAAP) - YoY % change	  				  	 	3	 % 	 	 	1	 % 	 	 	1	 % 	 	 	3	 % 	 	 	2	 % 	 	 	5	 % 	
Revenue (constant currency) - YoY % change	  	 	d	  	  	 	0	 % 	 	 	2	 % 	 	 	3	 % 	 	 	5	 % 	 	 	3	 % 	 	 	5	 % 	
Operating margin	  				  	 	27.4	 % 	 	 	29.1	 % 	 	 	29.9	 % 	 	 	27.0	 % 	 	 	28.4	 % 	 	 	28.6	 % 	
							 	
Transactions - (in millions)	  				  	 	49.61	  	 	 	53.05	  	 	 	54.91	  	 	 	56.17	  	 	 	213.74	  	 	 	52.84	  	
Transactions - YoY % change	  				  	 	8	 % 	 	 	9	 % 	 	 	10	 % 	 	 	9	 % 	 	 	9	 % 	 	 	7	 % 	
							 	
Total Principal ($ - billions)	  				  	 	17.7	  	 	 	18.6	  	 	 	19.5	  	 	 	20.0	  	 	 	75.8	  	 	 	19.0	  	
Cross-border Principal ($ - billions)	  				  	 	16.1	  	 	 	16.8	  	 	 	17.6	  	 	 	18.1	  	 	 	68.6	  	 	 	17.1	  	
Cross-border Principal - YoY % change	  				  	 	7	 % 	 	 	6	 % 	 	 	4	 % 	 	 	6	 % 	 	 	6	 % 	 	 	7	 % 	
Cross-border Principal (constant currency) - YoY % change	  	 	f	  	  	 	4	 % 	 	 	7	 % 	 	 	6	 % 	 	 	7	 % 	 	 	6	 % 	 	 	6	 % 	
							 	
Principal per transaction ($ - dollars)	  				  	 	357	  	 	 	351	  	 	 	355	  	 	 	356	  	 	 	355	  	 	 	360	  	
Principal per transaction - YoY % change	  				  	 	0	 % 	 	 	(2	)% 	 	 	(4	)% 	 	 	(3	)% 	 	 	(2	)% 	 	 	1	 % 	
Principal per transaction (constant currency) - YoY % change	  	 	e	  	  	 	(3	)% 	 	 	(2	)% 	 	 	(3	)% 	 	 	(1	)% 	 	 	(2	)% 	 	 	1	 % 	
							 	
International revenue (GAAP) - YoY % change	  	 	m	  	  	 	6	 % 	 	 	2	 % 	 	 	2	 % 	 	 	3	 % 	 	 	3	 % 	 	 	5	 % 	
International revenue (constant currency) - YoY % change	  	 	g, m	  	  	 	3	 % 	 	 	4	 % 	 	 	4	 % 	 	 	5	 % 	 	 	4	 % 	 	 	5	 % 	
International transactions - YoY % change	  	 	m	  	  	 	8	 % 	 	 	7	 % 	 	 	7	 % 	 	 	8	 % 	 	 	8	 % 	 	 	5	 % 	
International principal per transaction ($ - dollars)	  	 	m	  	  	 	381	  	 	 	376	  	 	 	384	  	 	 	386	  	 	 	382	  	 	 	390	  	
International principal per transaction - YoY % change	  	 	m	  	  	 	1	 % 	 	 	(1	)% 	 	 	(3	)% 	 	 	(1	)% 	 	 	(1	)% 	 	 	2	 % 	
International principal per transaction (constant currency) - YoY % change	  	 	i, m	  	  	 	(2	)% 	 	 	0	 % 	 	 	(1	)% 	 	 	1	 % 	 	 	(1	)% 	 	 	2	 % 	
							 	
International revenue excl. US origination (GAAP) - YoY % change	  	 	n	  	  	 	7	 % 	 	 	1	 % 	 	 	1	 % 	 	 	3	 % 	 	 	3	 % 	 	 	5	 % 	
International revenue excl. US origination (constant currency) - YoY % change	  	 	h, n	  	  	 	4	 % 	 	 	3	 % 	 	 	4	 % 	 	 	5	 % 	 	 	4	 % 	 	 	5	 % 	
International transactions excl. US origination - YoY % change	  	 	n	  	  	 	8	 % 	 	 	7	 % 	 	 	7	 % 	 	 	8	 % 	 	 	8	 % 	 	 	6	 % 	
							 	
EMEASA region revenue - YoY % change	  	 	l, t	  	  	 	5	 % 	 	 	(1	)% 	 	 	(2	)% 	 	 	(1	)% 	 	 	0	 % 	 	 	2	 % 	
EMEASA region transactions - YoY % change	  	 	l, t	  	  	 	6	 % 	 	 	5	 % 	 	 	5	 % 	 	 	6	 % 	 	 	5	 % 	 	 	4	 % 	
EMEASA region operating margin**	  	 	l, t	  	  				 				 				 				 	 	28.4	 % 	 			 	
							 	
India revenue - YoY % change	  	 	y	  	  	 	7	 % 	 	 	4	 % 	 	 	2	 % 	 	 	8	 % 	 	 	5	 % 	 	 	8	 % 	
India transactions - YoY % change	  	 	y	  	  	 	6	 % 	 	 	3	 % 	 	 	2	 % 	 	 	6	 % 	 	 	4	 % 	 	 	6	 % 	

THE WESTERN UNION COMPANY
KEY STATISTICS
(unaudited)

 	  	Notes*	  	1Q10	 	 	2Q10	 	 	3Q10	 	 	4Q10	 	 	FY2010	 	 	1Q11	 	
Americas region revenue - YoY % change	  	l, s	  	 	(3	)% 	 	 	1	 % 	 	 	2	 % 	 	 	7	 % 	 	 	2	 % 	 	 	6	 % 	
Americas region transactions - YoY % change	  	l, s	  	 	8	 % 	 	 	12	 % 	 	 	13	 % 	 	 	11	 % 	 	 	11	 % 	 	 	8	 % 	
Americas region operating margin**	  	l, s	  				 				 				 				 	 	28.2	 % 	 			 	
							 	
Domestic revenue - YoY % change	  	o	  	 	(13	)% 	 	 	(10	)% 	 	 	(6	)% 	 	 	7	 % 	 	 	(6	)% 	 	 	8	 % 	
Domestic transactions - YoY % change	  	o	  	 	18	 % 	 	 	28	 % 	 	 	35	% 	 	 	29	 % 	 	 	28	 % 	 	 	21	 % 	
							 	
Mexico revenue - YoY % change	  	p	  	 	(7	)% 	 	 	4	 % 	 	 	(1	)% 	 	 	3	 % 	 	 	0	 % 	 	 	1	 % 	
Mexico transactions - YoY % change	  	p	  	 	(3	)% 	 	 	5	 % 	 	 	2	 % 	 	 	3	 % 	 	 	2	 % 	 	 	1	 % 	
							 	
APAC region revenue - YoY % change	  	l, u	  	 	14	 % 	 	 	11	 % 	 	 	12	 % 	 	 	14	 % 	 	 	13	 % 	 	 	14	 % 	
APAC region transactions - YoY % change	  	l, u	  	 	15	 % 	 	 	14	 % 	 	 	15	 % 	 	 	14	 % 	 	 	14	 % 	 	 	11	 % 	
APAC region operating margin**	  	l, u	  				 				 				 				 	 	28.7	 % 	 			 	
							 	
China revenue - YoY % change	  	z	  	 	21	 % 	 	 	11	 % 	 	 	6	 % 	 	 	6	 % 	 	 	10	 % 	 	 	12	 % 	
China transactions - YoY % change	  	z	  	 	8	 % 	 	 	6	 % 	 	 	6	 % 	 	 	7	 % 	 	 	7	 % 	 	 	5	 % 	
							 	
Global Business Payments Segment	  		  				 				 				 				 				 			 	
Revenue - YoY % change	  		  	 	4	 % 	 	 	9	 % 	 	 	5	 % 	 	 	0	 % 	 	 	4	 % 	 	 	0	 % 	
Operating margin	  		  	 	20.7	 % 	 	 	18.9	 % 	 	 	15.1	 % 	 	 	13.3	 % 	 	 	17.0	 % 	 	 	16.5	 % 	
Transactions - in millions	  		  	 	98.2	  	 	 	98.0	  	 	 	103.4	  	 	 	105.3	  	 	 	404.9	  	 	 	105.9	  	
Transactions - YoY % change	  		  	 	(7	)% 	 	 	(6	)% 	 	 	(2	)% 	 	 	6	 % 	 	 	(2	)% 	 	 	8	 % 	
Bill Payments revenue - YoY % change	  	w	  	 	(10	)% 	 	 	(8	)% 	 	 	(7	)% 	 	 	(5	)% 	 	 	(8	)% 	 	 	(2	)% 	
Business Solutions revenue - YoY % change	  	x	  	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	32	 % 	 	 	N/A	  	 	 	13	 % 	
							 	
% of Total Company Revenue	  		  				 				 				 				 				 			 	
Consumer-to-Consumer segment revenue	  		  	 	84	 % 	 	 	84	 % 	 	 	85	 % 	 	 	85	 % 	 	 	84	 % 	 	 	84	 % 	
EMEASA region revenue	  	l, t	  	 	44	 % 	 	 	44	 % 	 	 	44	 % 	 	 	44	 % 	 	 	44	 % 	 	 	43	 % 	
Americas region revenue	  	l, s	  	 	31	 % 	 	 	32	 % 	 	 	32	 % 	 	 	32	 % 	 	 	31	 % 	 	 	32	 % 	
APAC region revenue	  	l, u	  	 	9	 % 	 	 	8	 % 	 	 	9	 % 	 	 	9	 % 	 	 	9	 % 	 	 	9	 % 	
Mexico revenue	  	p	  	 	6	 % 	 	 	6	 % 	 	 	6	 % 	 	 	5	 % 	 	 	6	 % 	 	 	5	 % 	
India & China revenue	  	q	  	 	7	 % 	 	 	7	 % 	 	 	7	 % 	 	 	7	 % 	 	 	7	 % 	 	 	8	 % 	
Electronic channels revenue	  	v	  	 	2	 % 	 	 	2	 % 	 	 	2	 % 	 	 	2	 % 	 	 	2	 % 	 	 	3	 % 	
Global Business Payments segment revenue	  		  	 	15	 % 	 	 	14	 % 	 	 	13	 % 	 	 	13	 % 	 	 	14	 % 	 	 	14	 % 	
Bill Payments revenue	  	w	  	 	13	 % 	 	 	12	 % 	 	 	11	 % 	 	 	11	 % 	 	 	12	 % 	 	 	12	 % 	
Business Solutions revenue	  	x	  	 	2	 % 	 	 	2	 % 	 	 	2	 % 	 	 	2	 % 	 	 	2	 % 	 	 	2	 % 	
Prepaid revenue	  	aa	  	 	0	 % 	 	 	0	 % 	 	 	1	 % 	 	 	0	 % 	 	 	0	 % 	 	 	1	 % 	
Marketing expense	  	r	  	 	3.5	 % 	 	 	4.1	 % 	 	 	3.7	 % 	 	 	5.0	 % 	 	 	4.1	 % 	 	 	3.4	 % 	
 
*	See page 12 of the press release for the applicable Note references and the reconciliation of non-GAAP measures.	
**	Regional operating margins are provided on an annual basis only.	

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)

 	  	Three Months Ended 
 March 31, 	 	
 	  	2011 	 	 	2010 	 	 	Change 	 	
Revenues:	  				 				 				
Transaction fees	  	$	998.0	  	 	$	965.7	  	 	 	3	 % 	
Foreign exchange revenues	  	 	256.1	  	 	 	238.1	  	 	 	8	 % 	
Other revenues	  	 	28.9	  	 	 	28.9	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 				
Total revenues	  	 	1,283.0	  	 	 	1,232.7	  	 	 	4	 % 	
				
Expenses:	  				 				 				
Cost of services (a)	  	 	745.4	  	 	 	714.6	  	 	 	4	 % 	
Selling, general and administrative (b)	  	 	224.7	  	 	 	202.3	  	 	 	11	 % 	
	  	 	 	 	 	 	 	 	 				
Total expenses	  	 	970.1	  	 	 	916.9	  	 	 	6	 % 	

Operating income	  	 	312.9	  	 	 	315.8	  	 	 	(1	)% 	
				
Other income/(expense):	  				 				 				
Interest income	  	 	1.2	  	 	 	0.9	  	 	 	33	 % 	
Interest expense	  	 	(43.4	) 	 	 	(38.8	) 	 	 	12	 % 	
Derivative gains/(losses), net	  	 	1.9	  	 	 	(0.9	) 	 	 	(c	) 	
Other income/(expense), net	  	 	2.1	  	 	 	(1.0	) 	 	 	(c	) 	
	  	 	 	 	 	 	 	 	 				
Total other expense, net	  	 	(38.2	) 	 	 	(39.8	) 	 	 	(4	)% 	

Income before income taxes	  	 	274.7	  	 	 	276.0	  	 	 	—  	  	
Provision for income taxes	  	 	64.5	  	 	 	68.1	  	 	 	(5	)% 	

Net income	  	$	210.2	  	 	$	207.9	  	 	 	1	 % 	

Earnings per share:	  				 				 				
Basic	  	$	0.32	  	 	$	0.30	  	 	 	7	 % 	
Diluted	  	$	0.32	  	 	$	0.30	  	 	 	7	 % 	
				
Weighted-average shares outstanding:	  				 				 				
Basic	  	 	646.9	  	 	 	681.9	  	 				
Diluted	  	 	652.1	  	 	 	684.2	  	 				

(a)	Cost of services includes restructuring and related expenses of $6.9M for the three months ended March 31, 2011.	
(b)	Selling, general and administrative expenses includes $17.1M of restructuring and related expenses for the three months ended March 31, 2011.	
(c)	Calculation not meaningful.	

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)

 	  	March 31,
2011	 	 	December 31,
2010	 	
Assets	  				 				
Cash and cash equivalents (a)	  	$	2,215.8	  	 	$	2,157.4	  	
Settlement assets	  	 	2,533.6	  	 	 	2,635.2	  	
Property and equipment, net of accumulated depreciation of $398.0 and $383.6, respectively	  	 	194.1	  	 	 	196.5	  	
Goodwill	  	 	2,159.3	  	 	 	2,151.7	  	
Other intangible assets, net of accumulated amortization of $466.1 and $441.2, respectively	  	 	421.1	  	 	 	438.0	  	
Other assets	  	 	363.8	  	 	 	350.4	  	
	  	 	 	 	 	 	 	 	
Total assets	  	$	7,887.7	  	 	$	7,929.2	  	

Liabilities and Stockholders’ Equity	  				 				
Liabilities:	  				 				
Accounts payable and accrued liabilities	  	$	528.5	  	 	$	520.4	  	
Settlement obligations	  	 	2,533.6	  	 	 	2,635.2	  	
Income taxes payable	  	 	411.3	  	 	 	356.6	  	
Deferred tax liability, net	  	 	273.5	  	 	 	289.9	  	
Borrowings	  	 	3,583.3	  	 	 	3,289.9	  	
Other liabilities	  	 	277.2	  	 	 	254.5	  	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	7,607.4	  	 	 	7,346.5	  	
			
Stockholders’ equity:	  				 				
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued	  	 	—  	  	 	 	—  	  	
Common stock, $0.01 par value; 2,000 shares authorized; 633.2 shares and 654.0 shares issued and outstanding at March 31, 2011, and December 31, 2010, respectively	  	 	6.3	  	 	 	6.5	  	
Capital surplus	  	 	197.2	  	 	 	117.4	  	
Retained earnings	  	 	230.2	  	 	 	591.6	  	
Accumulated other comprehensive loss	  	 	(153.4	) 	 	 	(132.8	) 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	280.3	  	 	 	582.7	  	
	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	7,887.7	  	 	$	7,929.2	  	

(a)	At March 31, 2011, approximately $1,039 million was held by entities outside of the United States.	

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)

 	  	Three Months Ended
March 31,	 	
 	  	2011	 	 	2010	 	
Cash Flows From Operating Activities	  				 				
Net income	  	$	210.2	  	 	$	207.9	  	
Adjustments to reconcile net income to net cash provided by operating activities:	  				 				
Depreciation	  	 	15.0	  	 	 	14.7	  	
Amortization	  	 	29.7	  	 	 	27.3	  	
Stock compensation expense	  	 	7.5	  	 	 	10.4	  	
Other non-cash items, net	  	 	(14.7	) 	 	 	3.8	  	
Increase/(decrease) in cash, excluding the effects of acquisitions, resulting from changes in:	  				 				
Other assets	  	 	(11.5	) 	 	 	46.4	  	
Accounts payable and accrued liabilities	  	 	(20.2	) 	 	 	(35.5	) 	
Income taxes payable (a)	  	 	41.0	  	 	 	(202.1	) 	
Other liabilities	  	 	(5.4	) 	 	 	1.5	  	
	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	251.6	  	 	 	74.4	  	
			
Cash Flows From Investing Activities	  				 				
Capitalization of contract costs	  	 	(7.1	) 	 	 	(3.7	) 	
Capitalization of purchased and developed software	  	 	(2.5	) 	 	 	(3.9	) 	
Purchases of property and equipment	  	 	(12.3	) 	 	 	(7.1	) 	
Repayments of notes receivable issued to agents	  	 	—  	  	 	 	16.9	  	
	  	 	 	 	 	 	 	 	
Net cash (used in)/provided by investing activities	  	 	(21.9	) 	 	 	2.2	  	
			
Cash Flows From Financing Activities	  				 				
Proceeds from exercise of options	  	 	72.3	  	 	 	8.6	  	
Cash dividends paid	  	 	(44.7	) 	 	 	(40.5	) 	
Common stock repurchased (b)	  	 	(498.4	) 	 	 	(200.1	) 	
Net proceeds from issuance of borrowings	  	 	299.5	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(171.3	) 	 	 	(232.0	) 	

Net change in cash and cash equivalents	  	 	58.4	  	 	 	(155.4	) 	
Cash and cash equivalents at beginning of period	  	 	2,157.4	  	 	 	1,685.2	  	
	  	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	2,215.8	  	 	$	1,529.8	  	

(a)	The Company made a $250 million refundable tax deposit with the IRS in first quarter 2010.	
(b)	Additional common stock repurchases of $26.8 million were initiated but not settled at March 31, 2011 pursuant to an existing Rule 10b5-1 plan.	

THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)

 	  	Three Months Ended
March 31,	 	
 	  	2011	 	 	2010	 	 	Change	 	
Revenues:	  				 				 				
Consumer-to-Consumer:	  				 				 				
Transaction fees	  	$	839.8	  	 	$	807.0	  	 	 	4	 % 	
Foreign exchange revenues	  	 	227.4	  	 	 	211.9	  	 	 	7	 % 	
Other revenues	  	 	10.9	  	 	 	11.3	  	 	 	(4	)% 	
	  	 	 	 	 	 	 	 	 				
Total Consumer-to-Consumer:	  	 	1,078.1	  	 	 	1,030.2	  	 	 	5	 % 	
				
Global Business Payments:	  				 				 				
Transaction fees	  	 	145.6	  	 	 	148.0	  	 	 	(2	)% 	
Foreign exchange revenues	  	 	28.7	  	 	 	26.2	  	 	 	10	 % 	
Other revenues	  	 	7.8	  	 	 	7.6	  	 	 	3	 % 	
	  	 	 	 	 	 	 	 	 				
Total Global Business Payments:	  	 	182.1	  	 	 	181.8	  	 	 	—  	  	
				
Total Other:	  	 	22.8	  	 	 	20.7	  	 	 	10	 % 	

Total consolidated revenues	  	$	1,283.0	  	 	$	1,232.7	  	 	 	4	 % 	
	  	 	 	 	 	 	 	 	 				
Operating income/(loss):	  				 				 				
Consumer-to-Consumer	  	$	308.6	  	 	$	282.7	  	 	 	9	 % 	
Global Business Payments	  	 	30.1	  	 	 	37.6	  	 	 	(20	)% 	
Other	  	 	(1.8	) 	 	 	(4.5	) 	 	 	(60	)% 	
	  	 	 	 	 	 	 	 	 				
Total segment operating income	  	 	336.9	  	 	 	315.8	  	 	 	7	 % 	
Restructuring and related expenses (a)	  	 	(24.0	) 	 	 	—  	  	 	 	 	(b) 	
	  	 	 	 	 	 	 	 	 				
Total consolidated operating income	  	$	312.9	  	 	$	315.8	  	 	 	(1	)% 	
	  	 	 	 	 	 	 	 	 				
Operating income/(loss) margin:	  				 				 				
Consumer-to-Consumer	  	 	28.6	% 	 	 	27.4	% 	 	 	1.2	 % 	
Global Business Payments	  	 	16.5	% 	 	 	20.7	% 	 	 	(4.2	)% 	
Other	  	 	 	(b) 	 	 	 	(b) 	 	 	 	(b) 	
Total consolidated operating income margin	  	 	24.4	% 	 	 	25.6	% 	 	 	(1.2	)% 	
				
Depreciation and amortization:	  				 				 				
Consumer-to-Consumer	  	$	33.2	  	 	$	31.0	  	 	 	7	 % 	
Global Business Payments	  	 	9.6	  	 	 	8.6	  	 	 	12	 % 	
Other	  	 	1.3	  	 	 	2.4	  	 	 	(46	)% 	
	  	 	 	 	 	 	 	 	 				
Total segment depreciation and amortization	  	 	44.1	  	 	 	42.0	  	 	 	5	 % 	
Restructuring and related expenses (a)	  	 	0.6	  	 	 	—  	  	 	 	 	(b) 	
	  	 	 	 	 	 	 	 	 				
Total consolidated depreciation and amortization	  	$	44.7	  	 	$	42.0	  	 	 	6	 % 	

(a)	Restructuring 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.	
(b)	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 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 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.

 	  	 	  	1Q10	 	 	2Q10	 	 	3Q10	 	 	4Q10	 	 	FY2010	 	 	1Q11	 	
Consolidated Metrics	  				 				 				 				 				 			 	
(a)	  	Revenues, as reported (GAAP)	  	$	1,232.7	  	 	$	1,273.4	  	 	$	1,329.6	  	 	$	1,357.0	  	 	$	5,192.7	  	 	$	1,283.0	  	
	  	Foreign currency translation impact (j)	  	 	(20.0	) 	 	 	16.1	  	 	 	22.2	  	 	 	18.5	  	 	 	36.8	  	 	 	2.3	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Revenues, constant currency adjusted	  	$	1,212.7	  	 	$	1,289.5	  	 	$	1,351.8	  	 	$	1,375.5	  	 	$	5,229.5	  	 	$	1,285.3	  	
	  	Prior year revenues, as reported (GAAP)	  	$	1,201.2	  	 	$	1,254.3	  	 	$	1,314.1	  	 	$	1,314.0	  	 	$	5,083.6	  	 	$	1,232.7	  	
	  	Revenue change, as reported (GAAP)	  	 	3	% 	 	 	2	% 	 	 	1	% 	 	 	3	% 	 	 	2	% 	 	 	4	% 	
	  	Revenue change, constant currency adjusted	  	 	1	% 	 	 	3	% 	 	 	3	% 	 	 	5	% 	 	 	3	% 	 	 	4	% 	
							 	
(b)	  	Operating income, as reported (GAAP)	  	$	315.8	  	 	$	311.0	  	 	$	351.2	  	 	$	322.1	  	 	$	1,300.1	  	 	$	312.9	  	
	  	Reversal of restructuring and related expenses (k)	  	 	N/A	  	 	 	34.5	  	 	 	14.0	  	 	 	11.0	  	 	 	59.5	  	 	 	24.0	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Operating income, excluding restructuring	  	$	315.8	  	 	$	345.5	  	 	$	365.2	  	 	$	333.1	  	 	$	1,359.6	  	 	$	336.9	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Operating income margin, as reported (GAAP)	  	 	25.6	% 	 	 	24.4	% 	 	 	26.4	% 	 	 	23.7	% 	 	 	25.0	% 	 	 	24.4	% 	
	  	Operating income margin, excluding restructuring	  	 	N/A	  	 	 	27.1	% 	 	 	27.5	% 	 	 	24.5	% 	 	 	26.2	% 	 	 	26.3	% 	
							 	
(c)	  	Net income, as reported (GAAP)	  	$	207.9	  	 	$	221.0	  	 	$	238.4	  	 	$	242.6	  	 	$	909.9	  	 	$	210.2	  	
	  	Foreign currency translation impact, net of income tax (j)	  	 	(0.7	) 	 	 	5.5	  	 	 	2.4	  	 	 	1.4	  	 	 	8.6	  	 	 	4.8	  	
	  	Reversal of restructuring and related expenses, including foreign currency translation impacts, net of income tax benefit (k)	  	 	N/A	  	 	 	22.4	  	 	 	9.5	  	 	 	6.4	  	 	 	38.3	  	 	 	16.4	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Net income, constant currency and restructuring adjusted	  	$	207.2	  	 	$	248.9	  	 	$	250.3	  	 	$	250.4	  	 	$	956.8	  	 	$	231.4	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted earnings per share (“EPS”), as reported (GAAP) ($ - dollars)	  	$	0.30	  	 	$	0.33	  	 	$	0.36	  	 	$	0.37	  	 	$	1.36	  	 	$	0.32	  	
	  	Impact from restructuring and related expenses, net of income tax benefit (k) ($ - dollars)	  	 	N/A	  	 	 	0.03	  	 	 	0.01	  	 	 	0.01	  	 	 	0.06	  	 	 	0.03	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted EPS, restructuring adjusted ($ - dollars)	  	$	0.30	  	 	$	0.36	  	 	$	0.37	  	 	$	0.38	  	 	$	1.42	  	 	$	0.35	  	
	  	Foreign currency translation impact, net of income tax (j) ($ - dollars)	  	 	—  	  	 	 	0.01	  	 	 	0.01	  	 	 	—  	  	 	 	0.01	  	 	 	—  	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted EPS, constant currency and restructuring adjusted ($ - dollars)	  	$	0.30	  	 	$	0.37	  	 	$	0.38	  	 	$	0.38	  	 	$	1.43	  	 	$	0.35	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted weighted-average shares outstanding	  	 	684.2	  	 	 	671.6	  	 	 	661.3	  	 	 	658.4	  	 	 	668.9	  	 	 	652.1	  	

THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(in millions, unless indicated otherwise)
(unaudited)

 	  	 	  	1Q10	 	 	2Q10	 	 	3Q10	 	 	4Q10	 	 	FY2010	 	 	1Q11	 	
Consumer-to-Consumer Segment	  				 				 				 				 				 			 	
(d)	  	Revenues, as reported (GAAP)	  	$	1,030.2	  	 	$	1,073.1	  	 	$	1,128.3	  	 	$	1,151.8	  	 	$	4,383.4	  	 	$	1,078.1	  	
	  	Foreign currency translation impact (j)	  	 	(21.9	) 	 	 	15.0	  	 	 	21.2	  	 	 	18.0	  	 	 	32.3	  	 	 	2.2	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Revenues, constant currency adjusted	  	$	1,008.3	  	 	$	1,088.1	  	 	$	1,149.5	  	 	$	1,169.8	  	 	$	4,415.7	  	 	$	1,080.3	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year revenues, as reported (GAAP)	  	$	1,003.7	  	 	$	1,065.5	  	 	$	1,117.8	  	 	$	1,113.7	  	 	$	4,300.7	  	 	$	1,030.2	  	
	  	Revenue change, as reported (GAAP)	  	 	3	 % 	 	 	1	 % 	 	 	1	 % 	 	 	3	 % 	 	 	2	 % 	 	 	5	 % 	
	  	Revenue change, constant currency adjusted	  	 	0	 % 	 	 	2	 % 	 	 	3	 % 	 	 	5	 % 	 	 	3	 % 	 	 	5	 % 	
							 	
(e)	  	Principal per transaction, as reported ($ - dollars)	  	$	357	  	 	$	351	  	 	$	355	  	 	$	356	  	 	$	355	  	 	$	360	  	
	  	Foreign currency translation impact (j) ($ - dollars)	  	 	(11	) 	 	 	2	  	 	 	7	  	 	 	5	  	 	 	1	  	 	 	(1	) 	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Principal per transaction, constant currency adjusted ($ - dollars)	  	$	346	  	 	$	353	  	 	$	362	  	 	$	361	  	 	$	356	  	 	$	359	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year principal per transaction, as reported ($ - dollars)	  	$	358	  	 	$	358	  	 	$	371	  	 	$	365	  	 	$	363	  	 	$	357	  	
	  	Principal per transaction change, as reported	  	 	0	 % 	 	 	(2	)% 	 	 	(4	)% 	 	 	(3	)% 	 	 	(2	)% 	 	 	1	 % 	
	  	Principal per transaction change, constant currency adjusted	  	 	(3	)% 	 	 	(2	)% 	 	 	(3	)% 	 	 	(1	)% 	 	 	(2	)% 	 	 	1	 % 	
							 	
(f)	  	Cross-border principal, as reported ($ - billions)	  	$	16.1	  	 	$	16.8	  	 	$	17.6	  	 	$	18.1	  	 	$	68.6	  	 	$	17.1	  	
	  	Foreign currency translation impact (j) ($ - billions)	  	 	(0.5	) 	 	 	0.1	  	 	 	0.4	  	 	 	0.3	  	 	 	0.3	  	 	 	—  	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Cross-border principal, constant currency adjusted ($ - billions)	  	$	15.6	  	 	$	16.9	  	 	$	18.0	  	 	$	18.4	  	 	$	68.9	  	 	$	17.1	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year cross-border principal, as reported ($ - billions)	  	$	15.0	  	 	$	15.9	  	 	$	17.0	  	 	$	17.1	  	 	$	65.0	  	 	$	16.1	  	
	  	Cross-border principal change, as reported	  	 	7	 % 	 	 	6	 % 	 	 	4	 % 	 	 	6	 % 	 	 	6	 % 	 	 	7	 % 	
	  	Cross-border principal change, constant currency adjusted	  	 	4	 % 	 	 	7	 % 	 	 	6	 % 	 	 	7	 % 	 	 	6	 % 	 	 	6	 % 	
							 	
(g)	  	International revenues, as reported (GAAP)	  	$	862.0	  	 	$	890.8	  	 	$	944.0	  	 	$	972.4	  	 	$	3,669.2	  	 	$	901.7	  	
	  	Foreign currency translation impact (j)	  	 	(20.8	) 	 	 	15.7	  	 	 	21.7	  	 	 	18.4	  	 	 	35.0	  	 	 	2.6	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	International revenues, constant currency adjusted	  	$	841.2	  	 	$	906.5	  	 	$	965.7	  	 	$	990.8	  	 	$	3,704.2	  	 	$	904.3	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year international revenues, as reported (GAAP)	  	$	814.8	  	 	$	875.0	  	 	$	926.5	  	 	$	943.4	  	 	$	3,559.7	  	 	$	862.0	  	
	  	International revenue change, as reported (GAAP)	  	 	6	 % 	 	 	2	 % 	 	 	2	 % 	 	 	3	 % 	 	 	3	 % 	 	 	5	 % 	
	  	International revenue change, constant currency adjusted	  	 	3	 % 	 	 	4	 % 	 	 	4	 % 	 	 	5	 % 	 	 	4	 % 	 	 	5	 % 	
							 	
(h)	  	International excl. US origination revenues, as reported (GAAP)	  	$	699.8	  	 	$	719.2	  	 	$	774.3	  	 	$	797.6	  	 	$	2,990.9	  	 	$	732.2	  	
	  	Foreign currency translation impact (j)	  	 	(20.8	) 	 	 	15.7	  	 	 	21.7	  	 	 	18.4	  	 	 	35.0	  	 	 	2.6	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	International excl. US origination revenues, constant currency adjusted	  	$	679.0	  	 	$	734.9	  	 	$	796.0	  	 	$	816.0	  	 	$	3,025.9	  	 	$	734.8	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year international excl. US origination revenues, as reported (GAAP)	  	$	654.8	  	 	$	712.5	  	 	$	765.5	  	 	$	778.0	  	 	$	2,910.8	  	 	$	699.8	  	
	  	International excl. US origination revenue change, as reported (GAAP)	  	 	7	 % 	 	 	1	 % 	 	 	1	 % 	 	 	3	 % 	 	 	3	 % 	 	 	5	 % 	
	  	International excl. US origination revenue change, constant currency adjusted	  	 	4	 % 	 	 	3	 % 	 	 	4	 % 	 	 	5	 % 	 	 	4	 % 	 	 	5	 % 	
							 	
(i)	  	International principal per transaction, as reported ($ - dollars)	  	$	381	  	 	$	376	  	 	$	384	  	 	$	386	  	 	$	382	  	 	$	390	  	
	  	Foreign currency translation impact (j) ($ - dollars)	  	 	(13	) 	 	 	3	  	 	 	8	  	 	 	7	  	 	 	2	  	 	 	(2	) 	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	International principal per transaction, constant currency adjusted ($ - dollars)	  	$	368	  	 	$	379	  	 	$	392	  	 	$	393	  	 	$	384	  	 	$	388	  	
	  		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year international principal per transaction, as reported ($ - dollars)	  	$	377	  	 	$	380	  	 	$	395	  	 	$	390	  	 	$	386	  	 	$	381	  	
	  	International principal per transaction change, as reported	  	 	1	 % 	 	 	(1	)% 	 	 	(3	)% 	 	 	(1	)% 	 	 	(1	)% 	 	 	2	 % 	
	  	International principal per transaction change, constant currency adjusted	  	 	(2	)% 	 	 	0	 % 	 	 	(1	)% 	 	 	1	 % 	 	 	(1	)% 	 	 	2	 % 	

THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(in millions, unless indicated otherwise)
(unaudited)

   	  	Range	 	
2011 EPS Outlook	  				
EPS guidance (GAAP) ($ - dollars)	  	$	1.41	  	 	$	1.46	  	
Impact from restructuring and related expenses, net of income tax benefit (k) ($ - dollars)	  	 	0.06	  	 	 	0.06	  	
	  	 	 	 	 	 	 	 	
EPS guidance, restructuring adjusted ($ - dollars)	  	$	1.47	  	 	$	1.52	  	

2011 Operating Income Margin Outlook	  				 				
Operating income margin (GAAP)	  	 	26.0	% 	 				
Impact from restructuring and related expenses (k)	  	 	1.0	% 	 				
	  	 	 	 	 				
Operating income margin, restructuring adjusted	  	 	27.0	% 	 				
	  	 	 	 	 				
Non-GAAP related notes:
 
(j)	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 addition, to compute constant currency earnings per share, the Company 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 was consistent with the prior year.	
 
(k)	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.	
Other notes:
 
(l)	Geographic split is determined based upon the region where the money transfer is initiated and the region where the money transfer is paid, with each transaction and the related revenue being split 50% between the two regions. For those money transfer transactions that are initiated and paid in the same region, 100% of the revenue is attributed to that region.	
 
(m)	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 as reflected in (o) and (p) below.	
 
(n)	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 as reflected in (o) and (p) below.	
 
(o)	Represents all transactions between and within the United States and Canada.	
 
(p)	Represents all transactions to and from Mexico.	
 
(q)	Represents all transactions to and from India and China.	
 
(r)	Marketing expense includes advertising, events, loyalty programs and the cost of employees dedicated to marketing activities.	
 
(s)	Represents the Americas region of our consumer-to-consumer segment, which includes North America, Latin America, the Caribbean and South America.	
 
(t)	Represents the Europe, Middle East, Africa and South Asia region of our consumer-to-consumer segment, including India.	
 
(u)	Represents the Asia Pacific region of our consumer-to-consumer segment.	
 
(v)	Represents revenue generated from electronic channels, which include westernunion.com, account based money transfer, and mobile money transfer.	
 
(w)	Represents revenue from the Company’s Bill Payments services, which allow consumers to make payments to a variety of organizations including utilities, auto finance companies, mortgage servicers, financial service providers, government agencies and other businesses. This revenue is included within the Global Business Payments segment.	
 
(x)	Represents revenue from the Company’s Business Solutions services, which facilitate cross-border, cross-currency business-to-business payment transactions. This revenue is included within the Global Business Payments segment.	
 
(y)	Represents all transactions to and from India.	
 
(z)	Represents all transactions to and from China.	
 
(aa)	Represents revenue from prepaid services. This revenue is included within the Other segment.	

	

Western Union
First Quarter 2011
Earnings Webcast & Conference Call
April 26, 2011
Exhibit 99.2	

	

Mike Salop
Senior Vice President, Investor Relations
*
*
*
*
*
*
*
*
*	

	

Safe Harbor
3
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,
2010.
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:
changes
in
immigration
laws,
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 products, services and enhancements, and gain market acceptance of
such
products;
the
failure
by
us,
our
agents
or
subagents
to
comply
with
our
business
and
technology
standards
and
contract
requirements
or
applicable
laws
and
regulations,
especially
laws
designed
to
prevent
money
laundering,
terrorist
financing
and
anti-competitive
behavior,
and/or
changing
regulatory
or
enforcement
interpretations
of
those
laws;
the
impact
on
our
business
of
the
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act
and the rules promulgated there-under; changes in United States or foreign laws, rules and regulations including the Internal Revenue Code, and
governmental
or
judicial
interpretations
thereof;
changes
in
general
economic
conditions
and
economic
conditions
in
the
regions
and
industries
in
which
we
operate;
political
conditions
and
related
actions
in
the
United
States
and
abroad
which
may
adversely
affect
our
businesses
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;
our
ability
to
resolve
tax
matters
with
the
Internal
Revenue
Service
and
other
tax
authorities
consistent
with
our
reserves;
failure
to
comply
with
the
settlement
agreement
with
the
State
of
Arizona;
liabilities
and
unanticipated
developments
resulting
from
litigation
and
regulatory
investigations
and
similar
matters,
including
costs,
expenses,
settlements
and
judgments;
mergers,
acquisitions
and
integration
of
acquired
businesses
and
technologies
into
our
Company,
and
the
realization
of
anticipated
financial
benefits
from
these
acquisitions;
failure
to
maintain
sufficient
amounts
or
types
of
regulatory
capital
to
meet
the
changing
requirements
of
our
regulators
worldwide;
deterioration
in
consumers'
and
clients'
confidence
in
our
business,
or
in
money
transfer
providers
generally;
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;
any
material
breach
of
security
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;
failure
to
implement
agent
contracts
according
to
schedule;
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;
cessation
of
various
services
provided
to
us
by
third-party
vendors;
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;
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;
changes
in
industry
standards
affecting
our
business;
changes
in
accounting
standards,
rules
and
interpretations;
significantly
slower
growth
or
declines
in
the
money
transfer
market
and
other
markets
in
which
we
operate;
adverse
consequences
from
our
spin-off
from
First
Data
Corporation;
decisions
to
change
our
business
mix;
catastrophic
events;
and
management's
ability
to
identify
and
manage
these
and
other
risks.	

	

*
*
*
*
*
*
*
*
*
Hikmet Ersek
President
& Chief Executive Officer	

	

Q1 Highlights
Total revenue increased 4%
Strong trends continue in C2C
5% revenue growth, reported and constant currency
Domestic money transfer revenue increased 8%
Bill Payments
Revenue decline moderated to -2%
Margins improved versus Q4
Business Solutions revenue grew 13%
5
Good Start to 2011
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.	

	

Electronic Channels & Prepaid Q1 Highlights
Account-based money transfer
Over 35% transaction growth
Agreements in place with over 45 banks globally
Westernunion.com
Over 40% transaction growth in international markets
Transactions increased by over 15% globally
Mobile
16 agreements in place
Over 85,000 locations enabled for cash-to-mobile in 49 countries
Prepaid
Over one million prepaid cards-in-force
Approximately $180 million principal loaded through 500,000+ loads
6
Electronic Channels 3% of Total Revenue	

	

7
Go To Market Leadership
•
Consumer Money Transfer and Bill Payments
•
Global Sales and Network Management
•
New Products and Services
•
Business Solutions
•
Electronic Channels
•
Stored Value Programs
•
Global Marketing
•
Communications and Social Responsibility
David Yates
EVP & President
Business Development and Innovation
Stewart Stockdale
EVP & President
Global Consumer Financial Services
Diane Scott
EVP & Chief Marketing Officer	

	

*
*
*
*
*
*
*
*
*
Scott Scheirman
Executive Vice President
& Chief Financial Officer	

	

Revenue
9
($ in millions)
$1,233
$1,283
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
Consolidated revenue up 4%,
reported and constant
currency
Transaction fees increased
3%
Foreign exchange revenue
increased 8%
$29
$29
$256
$238
$966
$988
Q1 2010
Q1 2011
Transaction Fee
Foreign Exchange
Other	

	

C2C Remittance Trends
10
+7%
C2C Transactions
(millions)
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
C2C Revenue growth 5%,
reported and constant currency
Total Q1 Western Union cross-
border principal of $17 billion
Increased 7% on a reported basis
Increased 6% constant currency
Principal per transaction
Increased 1% on a reported and
constant currency basis
50
53
Q1 2010
Q1 2011	

	

Consumer-to-Consumer
11
Revenue
Transactions
Q1 2011
2%
4%
Europe, Middle East, Africa, S. Asia
43% of Western Union revenue
Europe constant currency revenue trends similar to Q4
India grew revenue 8% and transactions 6%
Completed acquisition of super-agent, Angelo Costa, earlier this month	

	

12
Revenue
Transactions
Americas
6%
8%
32% of Western Union revenue
Domestic money transfer grew revenue 8% and transactions 21%
Mexico grew revenue and transactions 1%
Signed US Bank to account based money transfer
Q1 2011
Consumer-to-Consumer	

	

13
Revenue
Transactions
Asia Pacific
14%
11%
9% of Western Union revenue
Many markets contributing to growth
China grew revenue 12% and transactions 5%
Signed China Construction Bank
Q1 2011
Consumer-to-Consumer	

	

C2C Transaction and Revenue Growth
14
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
+7%
+5%
+5%
Transaction
Growth
Price Reductions
Other Mix
Constant
Currency
Revenue Growth
Currency Impact
Reported
Revenue Growth
Q1 2011	

	

Global Business Payments
15
Revenue
Transactions
Global Business Payments
0%
8%
14% of Western Union revenue
Bill payments revenue decline moderated to -2%
Business Solutions grew revenue 13%
Q1 2011	

	

16
Operating Margin –
Q1 2011
Note: See appendix for reconciliation of Non-GAAP to GAAP measures
GAAP
Excluding
Restructuring
(1)
Q1 2011 consolidated operating margin excludes restructuring charges
Operating margin excluding
restructuring, +70 basis points
•
Revenue leverage
•
Other efficiencies, including
restructuring savings
•
Negative foreign exchange
impact
•
Increased investment spending
25.6%
24.4%
25.6%
26.3%	

	

17
C2C Operating Margin
C2C 84% of total company
revenue
Operating Margin +120 basis
points YoY
Improvement due to the same
factors as for consolidated
margin	

	

18
Global Business Payments
Operating Margin
GBP 14% of total company
revenue
Operating margin:
vs. Prior Year
Revenue declines and mix shifts in
U.S. bill payments
Investments in Business Solutions
vs. Prior Quarter
Lower integration expenses in
Business Solutions
Restructuring savings and other
cost structure changes in bill
payments	

	

19
Financial Strength
Q1 2011
Cash Flow from Operations
$252 million
Capital Expenditures
$22 million
Stock Repurchases
$525 million
Dividends Paid
$45 million
Cash Balance, March 31, 2011
$2.2 billion
Debt Outstanding, March 31, 2011
$3.6 billion	

	

2011 Outlook
20
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
Constant currency revenue in the range of 3% to 4%
GAAP revenue growth similar to constant currency
GAAP operating margin of approximately 26%
Operating margin of approximately 27%, excluding restructuring
charges
GAAP EPS of $1.41 to $1.46
EPS excluding restructuring charges of $1.47 to $1.52
GAAP cash flows from operating activities of $1.2 billion to $1.3 billion	

	

*
*
*
*
*
*
*
*
*
Questions & Answers	

	

Appendix
First Quarter 2011 Earnings
Webcast & Conference Call
April 26, 2011
22	

	

Non-GAAP Measures
23
Western
Union's
management
believes
the
non-GAAP
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.
These
non-GAAP
measurements
include
revenue
change
constant
currency
adjusted,
operating
income
margin
and
earnings
per
share
excluding
restructuring
expenses,
effective
tax
rate
excluding
restructuring
expenses,
consumer-to-consumer
segment
revenue
change
constant
currency
adjusted,
consumer-to-consumer
segment
principal
per
transaction
change
constant
currency
adjusted,
consumer-to-consumer
cross-border
principal
change
constant
currency
adjusted,
consumer-to-consumer
international
revenues
constant
currency
adjusted,
2011
earnings
per
share
outlook
excluding
restructuring
expenses,
and
2011
operating
income
margin
outlook
excluding
restructuring
expenses.
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
measures
to
the
most
directly
comparable
GAAP
financial
measures
is
included
below.	

	

Reconciliation of Non-GAAP Measures
24
1Q10
2Q10
3Q10
4Q10
FY2010
1Q11
Consolidated Metrics
Revenues, as reported (GAAP)
1,232.7
$      
1,273.4
$      
1,329.6
$      
1,357.0
$      
5,192.7
$      
1,283.0
$        
Foreign currency translation impact (a)
(20.0)
           
16.1
             
22.2
             
18.5
             
36.8
             
2.3
                 
Revenues, constant currency adjusted
1,212.7
$      
1,289.5
$      
1,351.8
$      
1,375.5
$      
5,229.5
$      
1,285.3
$        
Prior year revenues, as reported (GAAP)
1,201.2
$      
1,254.3
$      
1,314.1
$      
1,314.0
$      
5,083.6
$      
1,232.7
$        
Revenue change, as reported (GAAP)
3
%
2
%
1
%
3
%
2
%
4
%
Revenue change, constant currency adjusted
1
%
3
%
3
%
5
%
3
%
4
%
Operating income, as reported (GAAP)
315.8
$        
311.0
$        
351.2
$        
322.1
$        
1,300.1
$      
312.9
$           
Reversal of restructuring and related expenses (b)
N/A
34.5
             
14.0
             
11.0
             
59.5
             
24.0
               
Operating income, excluding restructuring
315.8
$        
345.5
$        
365.2
$        
333.1
$        
1,359.6
$      
336.9
$           
Operating income margin, as reported (GAAP)
25.6
%
24.4
%
26.4
%
23.7
%
25.0
%
24.4
%
Operating income margin, excluding restructuring
N/A
27.1
%
27.5
%
24.5
%
26.2
%
26.3
%

Effective tax rate, as reported (GAAP)
24.7
%
18.8
%
22.7
%
15.9
%
20.5
%
23.5
%
Impact from restructuring expenses, net of income tax benefit (b)
N/A
1.9
%
0.5
%
0.6
%
0.7
%
0.6
%
Effective tax rate, restructuring adjusted
24.7
%
20.7
%
23.2
%
16.5
%
21.2
%
24.1
%
Net income, as reported (GAAP)
207.9
$        
221.0
$        
238.4
$        
242.6
$        
909.9
$        
210.2
$           
Foreign currency translation impact, net of income tax (a)
(0.7)
             
5.5
               
2.4
               
1.4
               
8.6
               
4.8
                 
Reversal of restructuring and related expenses, including foreign currency translation impacts, net of income tax benefit (b)
N/A
22.4
             
9.5
               
6.4
               
38.3
             
16.4
               
Net income, constant currency and restructuring adjusted
207.2
$        
248.9
$        
250.3
$        
250.4
$        
956.8
$        
231.4
$           
Diluted earnings per share ("EPS"), as reported (GAAP) ($ - dollars)
0.30
$          
0.33
$          
0.36
$          
0.37
$          
1.36
$          
0.32
$              
Impact from restructuring and related expenses, net of income tax benefit (b) ($ - dollars)
N/A
0.03
             
0.01
             
0.01
             
0.06
0.03
               
Diluted EPS, restructuring adjusted ($ - dollars)
0.30
$          
0.36
$          
0.37
$          
0.38
$          
1.42
$          
0.35
$              
Foreign currency translation impact, net of income tax (a) ($ - dollars)
-
              
0.01
             
0.01
             
-
              
0.01
             
-
                 
Diluted EPS, constant currency and restructuring adjusted ($ - dollars)
0.30
$          
0.37
$          
0.38
$          
0.38
$          
1.43
$          
0.35
$              
Diluted weighted-average shares outstanding
684.2
          
671.6
          
661.3
          
658.4
          
668.9
          
652.1

	

Reconciliation of Non-GAAP Measures
25
1Q10
2Q10
3Q10
4Q10
FY2010
1Q11
Consumer-to-Consumer Segment
Revenues, as reported (GAAP)
1,030.2
$      
1,073.1
$      
1,128.3
$      
1,151.8
$      
4,383.4
$      
1,078.1
$        
Foreign currency translation impact (a)
(21.9)
           
15.0
             
21.2
             
18.0
             
32.3
             
2.2
                 
Revenues, constant currency adjusted
1,008.3
$      
1,088.1
$      
1,149.5
$      
1,169.8
$      
4,415.7
$      
1,080.3
$        
Prior year revenues, as reported (GAAP)
1,003.7
$      
1,065.5
$      
1,117.8
$      
1,113.7
$      
4,300.7
$      
1,030.2
$        
Revenue change, as reported (GAAP)
3
%
1
%
1
%
3
%
2
%
5
%
Revenue change, constant currency adjusted
0
%
2
%
3
%
5
%
3
%
5
%
Principal per transaction, as reported ($ - dollars)
357
$           
351
$           
355
$           
356
$           
355
$           
360
$               
Foreign currency translation impact (a) ($ - dollars)
(11)
2
7
5
1
(1)
Principal per transaction, constant currency adjusted  ($ - dollars)
346
$           
353
$           
362
$           
361
$           
356
$           
359
$               
Prior year principal per transaction, as reported  ($ - dollars)
358
$           
358
$           
371
$           
365
$           
363
$           
357
$               
Principal per transaction change, as reported
0
%
(2)%
(4)%
(3)%
(2)%
1
%
Principal per transaction change, constant currency adjusted
(3)%
(2)%
(3)%
(1)%
(2)%
1
%
Cross-border principal, as reported ($ - billions)
16.1
$          
16.8
$          
17.6
$          
18.1
$          
68.6
$          
17.1
$              
Foreign currency translation impact (a) ($ - billions)
(0.5)
             
0.1
               
0.4
               
0.3
               
0.3
               
-
                 
Cross-border principal, constant currency adjusted ($ - billions)
15.6
$          
16.9
$          
18.0
$          
18.4
$          
68.9
$          
17.1
$              
Prior year cross-border principal, as reported ($ - billions)
15.0
$          
15.9
$          
17.0
$          
17.1
$          
65.0
$          
16.1
$              
Cross-border principal change, as reported
7
%
6
%
4
%
6
%
6
%
7
%
Cross-border principal change, constant currency adjusted
4
%
7
%
6
%
7
%
6
%
6
%
International revenues, as reported (GAAP)
862.0
$        
890.8
$        
944.0
$        
972.4
$        
3,669.2
$      
901.7
$           
Foreign currency translation impact (a)
(20.8)
           
15.7
             
21.7
             
18.4
             
35.0
             
2.6
                 
International revenues, constant currency adjusted
841.2
$        
906.5
$        
965.7
$        
990.8
$        
3,704.2
$      
904.3
$           
Prior year international revenues, as reported (GAAP)
814.8
$        
875.0
$        
926.5
$        
943.4
$        
3,559.7
$      
862.0
$           
International revenue change, as reported (GAAP)
6
%
2
%
2
%
3
%
3
%
5
%
International revenue change, constant currency adjusted
3
%
4
%
4
%
5
%
4
%
5
%	

	

Reconciliation of Non-GAAP Measures
26
2011 EPS Outlook
EPS guidance (GAAP) ($ - dollars)
1.41
$          
1.46
$          
Impact from restructuring and related expenses, net of income tax benefit (b) ($ - dollars)
0.06
             
0.06
             
EPS guidance, restructuring adjusted ($ - dollars)
1.47
$          
1.52
$          
2011 Operating Income Margin Outlook
Operating income margin (GAAP)
26.0
%
Impact from restructuring and related expenses (b)
1.0
%
Operating income margin, restructuring adjusted
27.0
%
Range	

	

Footnote explanations
27
a)
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
addition,
to
compute
constant
currency
earnings
per
share,
the
Company
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
was
consistent
with
the
prior
year.
b)
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.