UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 24, 2012

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)	 	(I.R.S. Employer
Identification No.)	

12500 East Belford Avenue
Englewood, Colorado	 	80112	
(Address of principal executive offices)	 	(Zip Code)	
(866) 405-5012
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	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 24, 2012, The Western Union Company (the “Company”) issued a press release relating to the Company’s earnings for the first quarter of fiscal year 2012 (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 24, 2012 at 8:30 a.m. Eastern Time, during which Hikmet Ersek, President and Chief Executive Officer, and Scott T. Scheirman, Executive Vice President, Chief Financial Officer and Global Operations, 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 24, 2012.	
		
99.2	  	Presentation of the Company dated April 24, 2012.	
 
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 24, 2012	 		 	THE WESTERN UNION COMPANY	
					
	 		 		 	By:	 	/s/    D ARREN A. D RAGOVICH        	
	 		 		 	Name:	 	Darren A. Dragovich	
	 		 		 	Title:	 	Assistant Secretary	
 
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EXHIBIT INDEX

Exhibit
No.	  	Description	
		
99.1	  	Press release of The Western Union Company dated April 24, 2012.	
		
99.2	  	Presentation of The Western Union Company dated April 24, 2012.	

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 9%, Strong Electronic Channels Growth
2012 Financial Outlook Affirmed
Company Reaches 500,000 Agent Locations in April

	  	 	  		
Englewood, Colo., Apr. 24, 2012 – The Western Union Company (NYSE: WU) today reported financial results for the 2012 first quarter.
Financial highlights for the quarter included:
 
 	•	 	Revenue of $1.4 billion, a reported and constant currency increase of 9% compared to last year’s first quarter. Pro forma revenue increase of 4%, or 5% constant currency including Travelex Global Business Payments (TGBP) in the prior year period	
 
 	•	 	Operating margin of 23.9% compared to 24.4% in the prior year. Excluding TGBP integration expenses of $6 million operating margin was 24.3%, compared to 26.3% excluding $24 million of restructuring expenses in the prior year period	
 
 	•	 	The decrease in operating margin was primarily due to an increased operating loss in Business Solutions, including TGBP intangibles amortization, and incremental costs related to investments, compliance, and timing of certain expenses. The Company maintains its full year outlook for GAAP operating margin of approximately 25% and operating margin excluding TGBP integration costs of approximately 26%	
 
 	•	 	EBITDA margin excluding TGBP integration expenses of 28.9%, compared to 29.7% excluding restructuring expenses in the prior year period	
 
 	•	 	Cash provided by operating activities of $215 million, including the impact of tax payments of approximately $65 million relating to the agreement with the U.S. Internal Revenue Service announced December 15, 2011	
 
 	•	 	EPS of $0.40, compared to $0.32 in the prior year, or $0.35 in the prior year excluding restructuring expenses. EPS excluding TGBP integration expenses was also $0.40	
 
1

Additional highlights for the quarter included:
 
 	•	 	Consumer-to-Consumer (C2C) revenue increase of 4% reported and 5% constant currency, on transaction growth of 7%	
 
 	•	 	C2C represented 81% of Company revenue	
 
 	•	 	North America region revenue increase of 5%	
 
 	•	 	Europe and the CIS region revenue flat with the prior year period	
 
 	•	 	Middle East and Africa (MEA) region revenue increase of 6%	
 
 	•	 	Asia Pacific (APAC) region revenue increase of 7%	
 
 	•	 	Latin America and the Caribbean (LACA) region revenue increase of 2%	
 
 	•	 	westernunion.com revenue increase of 39%	
 
 	•	 	C2C operating margin of 27.7% compared to 28.6% in the prior year	
 
 	•	 	Consumer-to-Business (C2B) payments revenue increase of 1% reported and 3% constant currency	
 
 	•	 	C2B represented 11% of Company revenue	
 
 	•	 	C2B operating margin of 26.5% compared to 22.6% in the prior year	
 
 	•	 	Business Solutions revenue of $87 million, compared to $28 million in the prior year	
 
 	•	 	Business Solutions represented 6% of Company revenue	
 
 	•	 	Pro forma revenue increase of 5%, or 4% constant currency, including TGBP revenue in the prior year period	
 
 	•	 	Operating loss of $15 million, including $14 million of intangibles amortization and $6 million of TGBP integration expenses, compared to an operating loss of $4 million in the prior year (prior year does not include TGBP)	
 
 	•	 	Electronic channels revenue increase of 38%	
 
 	•	 	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 17%	
 
 	•	 	Prepaid including third party top-up represented 1% of Company revenue	
 
 	•	 	Agent locations of 495,000 as of March 31	
 
 	•	 	Share repurchases of $147 million (8 million shares at an average price of $17.69 per share) and dividends declared of $0.10 per share or $62 million in the quarter (dividend per share increased 25% from prior quarter)	
Additional Statistics
Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release.
 
2

Western Union President and Chief Executive Officer Hikmet Ersek commented, “Overall, we started off the year in line with our outlook. Our Consumer-to-Consumer segment growth accelerated compared to the fourth quarter, as strength in North America and the Middle East and Africa offset some expected softness in the Europe and CIS region. We further expanded our global network, including increasing our U.S. banking and European retail presence, and in April we reached 500,000 Agent locations across the world.”
Ersek continued, “While our core is delivering, we are also making progress on evolving our new businesses. The integration of Travelex Global Business Payments is on track, as we continue to establish the foundation for growth in Business Solutions. In Ventures, our westernunion.com on-line money transfer service delivered almost 40% revenue growth in the quarter, and is now available from 23 countries. We also advanced our strategy of offering more services to more customers with the introduction of WU Pay. This innovative electronic payments platform allows on-line shoppers to pay for purchases directly from their bank account or in cash at Western Union locations. Westernunion.com consumers will also be able to utilize WU Pay to fund on-line money transfers.”
Ersek added, “Strong capital deployment remains a priority. In addition to reinvesting in the business, we returned over $200 million to shareholders through the combination of share repurchase and dividends, and we plan to remain active with capital deployment throughout the year.”
2012 Outlook
The Company affirms its full year 2012 financial outlook provided on February 7:
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	
Operating Margins
 
 	•	 	GAAP operating margin of approximately 25%	
 
 	•	 	Operating margin of approximately 26% excluding TGBP integration costs	
 
 	•	 	EBITDA margin excluding TGBP integration costs of approximately 30%	
Earnings Per Share
 
 	•	 	GAAP EPS in a range of $1.65 to $1.70	
 
 	•	 	EPS excluding TGBP integration expenses of $1.70 to $1.75	
Cash Flow from Operations
 
 	•	 	Cash flow from operations in a range of $1.0 billion to $1.1 billion, or $1.2 billion to $1.3 billion excluding anticipated tax payments of approximately $200 million relating to the IRS agreement announced on December 15, 2011	
 
3

Investor Day
The Company will host an Investor Day Meeting on Wednesday May 9, 2012 in New York City, beginning at 8:30 a.m. Eastern Time.
Additional information including event details and location, registration instructions, and Web participation directions is available on the company’s investor relations website at http://ir.westernunion.com. A webcast replay will be available following the event.
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 adjusted, pro forma revenue change TGBP and constant currency adjusted, operating income margin excluding restructuring and TGBP integration expense, EBITDA margin excluding restructuring and TGBP integration expense, earnings per share restructuring, IRS agreement 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 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.
 
4

TGBP Integration
The Company expects approximately $50 million of integration expense for TGBP in 2012, of which approximately $6 million were incurred in the first 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; 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 first quarter of 2012. The Company recorded $24 million of restructuring charges in the first quarter of 2011. Approximately $7 million was included in cost of services and $17 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 4289188.
 
5

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, 2012, at 877-344-7529 (U.S.) or +1-412-317-0088 (outside the U.S.). The pass code is 4289188. 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 throughout the Annual Report on Form 10-K for the year ended December 31, 2011, including those described under “Risk Factors”. 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
 
6

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; 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; 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 March 31, 2012, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of approximately 495,000 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
 
7

THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)

 	  	Notes*	 	  	1Q11	 	 	2Q11	 	 	3Q11	 	 	4Q11	 	 	FY2011	 	 	1Q12	 	
Consolidated Metrics	  				  				 				 				 				 				 			 	
Consolidated revenues (GAAP) - YoY % change	  				  	 	4	% 	 	 	7	% 	 	 	6	% 	 	 	5	% 	 	 	6	% 	 	 	9	% 	
Consolidated revenues (constant currency) - YoY % change	  	 	a	  	  	 	4	% 	 	 	5	% 	 	 	5	% 	 	 	6	% 	 	 	5	% 	 	 	9	% 	
Agent locations	  				  	 	455,000	  	 	 	470,000	  	 	 	485,000	  	 	 	485,000	  	 	 	485,000	  	 	 	495,000	  	
							 	
Consumer-to-Consumer (C2C) Segment	  				  				 				 				 				 				 			 	
Revenues (GAAP) - YoY % change	  				  	 	5	% 	 	 	8	% 	 	 	6	% 	 	 	3	% 	 	 	5	% 	 	 	4	% 	
Revenues (constant currency) - YoY % change	  	 	e	  	  	 	5	% 	 	 	5	% 	 	 	4	% 	 	 	3	% 	 	 	4	% 	 	 	5	% 	
Operating margin	  				  	 	28.6	% 	 	 	28.6	% 	 	 	29.0	% 	 	 	28.0	% 	 	 	28.6	% 	 	 	27.7	% 	
							 	
Transactions (in millions)	  				  	 	52.84	  	 	 	56.31	  	 	 	57.64	  	 	 	59.00	  	 	 	225.79	  	 	 	56.37	  	
Transactions - YoY% change	  				  	 	7	% 	 	 	6	% 	 	 	5	% 	 	 	5	% 	 	 	6	% 	 	 	7	% 	
							 	
Total principal ($ - billions)	  				  	 	19.0	  	 	 	20.6	  	 	 	21.1	  	 	 	20.6	  	 	 	81.3	  	 	 	19.5	  	
Principal per transaction ($ - dollars)	  				  	 	360	  	 	 	365	  	 	 	366	  	 	 	349	  	 	 	360	  	 	 	346	  	
Principal per transaction - YoY % change	  				  	 	1	% 	 	 	4	% 	 	 	3	% 	 	 	(2	)% 	 	 	1	% 	 	 	(4	)% 	
Principal per transaction (constant currency) - YoY % change	  	 	f	  	  	 	1	% 	 	 	0	% 	 	 	0	% 	 	 	(1	)% 	 	 	0	% 	 	 	(3	)% 	
							 	
Cross-border principal ($ - billions)	  				  	 	17.1	  	 	 	18.6	  	 	 	19.0	  	 	 	18.5	  	 	 	73.2	  	 	 	17.5	  	
Cross-border principal - YoY % change	  				  	 	7	% 	 	 	10	% 	 	 	8	% 	 	 	2	% 	 	 	7	% 	 	 	2	% 	
Cross-border principal (constant currency) - YoY % change	  	 	g	  	  	 	6	% 	 	 	6	% 	 	 	5	% 	 	 	3	% 	 	 	5	% 	 	 	3	% 	
							 	
Europe and CIS region revenues - YoY % change	  	 	t, u	  	  	 	1	% 	 	 	8	% 	 	 	3	% 	 	 	(1	)% 	 	 	3	% 	 	 	0	% 	
Europe and CIS region transactions - YoY % change	  	 	t, u	  	  	 	3	% 	 	 	3	% 	 	 	0	% 	 	 	(1	)% 	 	 	1	% 	 	 	1	% 	
							 	
North America region revenues - YoY % change	  	 	t, v	  	  	 	4	% 	 	 	3	% 	 	 	5	% 	 	 	2	% 	 	 	3	% 	 	 	5	% 	
North America region transactions - YoY % change	  	 	t, v	  	  	 	9	% 	 	 	7	% 	 	 	6	% 	 	 	5	% 	 	 	7	% 	 	 	6	% 	
							 	
Middle East and Africa region revenues - YoY % change	  	 	t, w	  	  	 	1	% 	 	 	6	% 	 	 	5	% 	 	 	2	% 	 	 	4	% 	 	 	6	% 	
Middle East and Africa region transactions - YoY % change	  	 	t, w	  	  	 	3	% 	 	 	3	% 	 	 	3	% 	 	 	4	% 	 	 	3	% 	 	 	9	% 	
							 	
APAC region revenues - YoY % change	  	 	t, x	  	  	 	12	% 	 	 	14	% 	 	 	10	% 	 	 	6	% 	 	 	10	% 	 	 	7	% 	
APAC region transactions - YoY % change	  	 	t, x	  	  	 	10	% 	 	 	10	% 	 	 	7	% 	 	 	9	% 	 	 	9	% 	 	 	6	% 	
							 	
LACA region revenues - YoY % change	  	 	t, y	  	  	 	11	% 	 	 	8	% 	 	 	5	% 	 	 	3	% 	 	 	7	% 	 	 	2	% 	
LACA region transactions - YoY % change	  	 	t, y	  	  	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	5	% 	 	 	8	% 	
 
8

THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)

 	  	Notes*	 	  	1Q11	 	 	2Q11	 	 	3Q11	 	 	4Q11	 	 	FY2011	 	 	1Q12	 	
westernunion.com region revenues - YoY % change	  	 	t, z	  	  	 	24	% 	 	 	40	% 	 	 	43	% 	 	 	39	% 	 	 	37	% 	 	 	39	% 	
westernunion.com region transactions - YoY % change	  	 	t, z	  	  	 	19	% 	 	 	29	% 	 	 	33	% 	 	 	35	% 	 	 	29	% 	 	 	41	% 	
							 	
International revenues (GAAP) - YoY % change	  	 	aa	  	  	 	5	% 	 	 	8	% 	 	 	5	% 	 	 	2	% 	 	 	5	% 	 	 	4	% 	
International revenues (constant currency) - YoY % change	  	 	h, aa	  	  	 	5	% 	 	 	5	% 	 	 	4	% 	 	 	3	% 	 	 	4	% 	 	 	4	% 	
International transactions - YoY % change	  	 	aa	  	  	 	5	% 	 	 	5	% 	 	 	4	% 	 	 	5	% 	 	 	5	% 	 	 	6	% 	
International principal per transaction ($ - dollars)	  	 	aa	  	  	 	390	  	 	 	399	  	 	 	401	  	 	 	381	  	 	 	393	  	 	 	378	  	
International principal per transaction - YoY % change	  	 	aa	  	  	 	2	% 	 	 	6	% 	 	 	4	% 	 	 	(1	)% 	 	 	3	% 	 	 	(3	)% 	
International principal per transaction (constant currency) - YoY % change	  	 	i, aa	  	  	 	2	% 	 	 	1	% 	 	 	1	% 	 	 	(1	)% 	 	 	1	% 	 	 	(2	)% 	
							 	
International revenues excl. US origination (GAAP) - YoY % change	  	 	bb	  	  	 	5	% 	 	 	10	% 	 	 	6	% 	 	 	2	% 	 	 	6	% 	 	 	4	% 	
International revenues excl. US origination (constant currency) - YoY % change	  	 	j, bb	  	  	 	5	% 	 	 	5	% 	 	 	4	% 	 	 	3	% 	 	 	4	% 	 	 	4	% 	
International transactions excl. US origination - YoY % change	  	 	bb	  	  	 	6	% 	 	 	6	% 	 	 	5	% 	 	 	5	% 	 	 	6	% 	 	 	7	% 	
							 	
Electronic channels revenues - YoY % change	  	 	cc	  	  	 	24	% 	 	 	39	% 	 	 	40	% 	 	 	36	% 	 	 	35	% 	 	 	38	% 	
							 	
Consumer-to-Business (C2B) Segment	  				  				 				 				 				 				 			 	
Revenues (GAAP) - YoY % change	  				  	 	(2	)% 	 	 	2	% 	 	 	2	% 	 	 	2	% 	 	 	1	% 	 	 	1	% 	
Revenues (constant currency) - YoY % change	  	 	k	  	  	 	(1	)% 	 	 	2	% 	 	 	3	% 	 	 	3	% 	 	 	2	% 	 	 	3	% 	
Operating margin	  				  	 	22.6	% 	 	 	24.6	% 	 	 	21.0	% 	 	 	27.3	% 	 	 	23.9	% 	 	 	26.5	% 	
							 	
Business Solutions (B2B) Segment	  				  				 				 				 				 				 			 	
Revenues (GAAP) - YoY % change	  				  	 	13	% 	 	 	15	% 	 	 	31	% 	 	 	*	* 	 	 	*	* 	 	 	*	* 	
Revenues (constant currency) - YoY % change	  	 	l	  	  	 	8	% 	 	 	7	% 	 	 	22	% 	 	 	*	* 	 	 	*	* 	 	 	*	* 	
Operating margin	  				  	 	(15.4	)% 	 	 	(5.7	)% 	 	 	(4.8	)% 	 	 	(2.8	)% 	 	 	(6.0	)% 	 	 	(17.0	)% 	
							 	
% of Total Company Revenue	  				  				 				 				 				 				 			 	
Consumer-to-Consumer segment revenues	  				  	 	84	% 	 	 	84	% 	 	 	84	% 	 	 	83	% 	 	 	84	% 	 	 	81	% 	
Europe and CIS region revenues	  	 	t, u	  	  	 	23	% 	 	 	24	% 	 	 	24	% 	 	 	23	% 	 	 	24	% 	 	 	22	% 	
North America region revenues	  	 	t, v	  	  	 	22	% 	 	 	22	% 	 	 	22	% 	 	 	21	% 	 	 	22	% 	 	 	21	% 	
Middle East and Africa region revenues	  	 	t, w	  	  	 	16	% 	 	 	15	% 	 	 	16	% 	 	 	16	% 	 	 	15	% 	 	 	15	% 	
APAC region revenues	  	 	t, x	  	  	 	12	% 	 	 	12	% 	 	 	12	% 	 	 	12	% 	 	 	12	% 	 	 	12	% 	
LACA region revenues	  	 	t, y	  	  	 	9	% 	 	 	9	% 	 	 	8	% 	 	 	9	% 	 	 	9	% 	 	 	9	% 	
westernunion.com region revenues	  	 	t, z	  	  	 	2	% 	 	 	2	% 	 	 	2	% 	 	 	2	% 	 	 	2	% 	 	 	2	% 	
Consumer-to-Business segment revenues	  				  	 	12	% 	 	 	12	% 	 	 	12	% 	 	 	11	% 	 	 	11	% 	 	 	11	% 	
Business Solutions segment revenues	  				  	 	2	% 	 	 	2	% 	 	 	2	% 	 	 	5	% 	 	 	3	% 	 	 	6	% 	
Electronic channels revenues	  	 	cc	  	  	 	3	% 	 	 	3	% 	 	 	3	% 	 	 	3	% 	 	 	3	% 	 	 	3	% 	
Prepaid revenues	  	 	dd	  	  	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	
Marketing expense	  	 	ee	  	  	 	3.4	% 	 	 	4.1	% 	 	 	4.5	% 	 	 	4.4	% 	 	 	4.1	% 	 	 	3.8	% 	
 
*	See page 14 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.	
 
9

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

 	  	Three Months Ended
March 31,	 	
 	  	2012	 	 	2011	 	 	Change	 	
Revenues:	  				 				 				
Transaction fees	  	$	1,040.9	  	 	$	998.0	  	 	 	4	% 	
Foreign exchange revenues	  	 	322.6	  	 	 	256.1	  	 	 	26	% 	
Other revenues	  	 	29.9	  	 	 	28.9	  	 	 	3	% 	
	  	 	 	 	 	 	 	 	 				
Total revenues	  	 	1,393.4	  	 	 	1,283.0	  	 	 	9	% 	
				
Expenses:	  				 				 				
Cost of services	  	 	783.0	  	 	 	745.4	  	 	 	5	% 	
Selling, general and administrative	  	 	277.9	  	 	 	224.7	  	 	 	24	% 	
	  	 	 	 	 	 	 	 	 				
Total expenses (a)	  	 	1,060.9	  	 	 	970.1	  	 	 	9	% 	

Operating income	  	 	332.5	  	 	 	312.9	  	 	 	6	% 	
				
Other income/(expense):	  				 				 				
Interest income	  	 	1.5	  	 	 	1.2	  	 	 	25	% 	
Interest expense	  	 	(44.4	) 	 	 	(43.4	) 	 	 	2	% 	
Derivative gains, net	  	 	1.6	  	 	 	1.9	  	 	 	(16	)% 	
Other income/(expense), net	  	 	(1.1	) 	 	 	2.1	  	 	 	  	(b) 	
	  	 	 	 	 	 	 	 	 				
Total other expense, net	  	 	(42.4	) 	 	 	(38.2	) 	 	 	11	% 	

Income before income taxes	  	 	290.1	  	 	 	274.7	  	 	 	6	% 	
Provision for income taxes	  	 	42.8	  	 	 	64.5	  	 	 	(34	)% 	

Net income	  	$	247.3	  	 	$	210.2	  	 	 	18	% 	
	  	 	 	 	 	 	 	 	 				
Earnings per share:	  				 				 				
Basic	  	$	0.40	  	 	$	0.32	  	 	 	25	% 	
Diluted	  	$	0.40	  	 	$	0.32	  	 	 	25	% 	
				
Weighted-average shares outstanding:	  				 				 				
Basic	  	 	619.1	  	 	 	646.9	  	 				
Diluted	  	 	621.9	  	 	 	652.1	  	 				

(a)	Total expenses includes TGBP integration expense of $0.2 million in cost of services and $6.2 million in selling, general and administrative for the three months ended March 31, 2012 and restructuring and related expenses of $6.9 million in cost of services and $17.1 million in selling, general and administrative for the three months ended March 31, 2011.	
(b)	Calculation not meaningful.	
 
10

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

 	  	March 31,
2012	 	 	December 31,
2011	 	
Assets	  				 				
Cash and cash equivalents (a)	  	$	1,395.9	  	 	$	1,370.9	  	
Settlement assets	  	 	3,185.1	  	 	 	3,091.2	  	
Property and equipment, net of accumulated depreciation of $445.2 and $429.7, respectively	  	 	196.3	  	 	 	198.1	  	
Goodwill	  	 	3,166.3	  	 	 	3,198.9	  	
Other intangible assets, net of accumulated amortization of $433.6 and $462.5, respectively	  	 	878.3	  	 	 	847.4	  	
Other assets	  	 	375.9	  	 	 	363.4	  	
	  	 	 	 	 	 	 	 	
Total assets	  	$	9,197.8	  	 	$	9,069.9	  	

Liabilities and Stockholders’ Equity	  				 				
Liabilities:	  				 				
Accounts payable and accrued liabilities	  	$	498.3	  	 	$	535.0	  	
Settlement obligations	  	 	3,185.1	  	 	 	3,091.2	  	
Income taxes payable	  	 	259.6	  	 	 	302.4	  	
Deferred tax liability, net	  	 	392.0	  	 	 	389.7	  	
Borrowings	  	 	3,633.7	  	 	 	3,583.2	  	
Other liabilities	  	 	261.7	  	 	 	273.6	  	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	8,230.4	  	 	 	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; 613.9 shares and 619.4 shares issued and outstanding as of March 31, 2012 and December 31, 2011, respectively	  	 	6.1	  	 	 	6.2	  	
Capital surplus	  	 	298.9	  	 	 	247.1	  	
Retained earnings	  	 	794.9	  	 	 	760.0	  	
Accumulated other comprehensive loss	  	 	(132.5	) 	 	 	(118.5	) 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	967.4	  	 	 	894.8	  	
	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	   9,197.8	  	 	$	9,069.9	  	

(a)	Approximately $723 million was held by entities outside of the United States as of March 31, 2012.	
 
11

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

 	  	Three Months Ended
March 31,	 	
 	  	2012	 	 	2011	 	
Cash Flows From Operating Activities	  				 				
Net income	  	$	247.3	  	 	$	210.2	  	
Adjustments to reconcile net income to net cash provided by operating activities:	  				 				
Depreciation	  	 	15.3	  	 	 	15.0	  	
Amortization	  	 	48.6	  	 	 	29.7	  	
Other non-cash items, net	  	 	1.6	  	 	 	(7.2	) 	
Increase/(decrease) in cash, excluding the effects of acquisitions, resulting from changes in:	  				 				
Other assets	  	 	(10.1	) 	 	 	(11.5	) 	
Accounts payable and accrued liabilities	  	 	(35.7	) 	 	 	(20.2	) 	
Income taxes payable (a)	  	 	(40.1	) 	 	 	41.0	  	
Other liabilities	  	 	(11.9	) 	 	 	(5.4	) 	
	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	215.0	  	 	 	251.6	  	
			
Cash Flows From Investing Activities	  				 				
Capitalization of contract costs	  	 	(55.8	) 	 	 	(7.1	) 	
Capitalization of purchased and developed software	  	 	(5.8	) 	 	 	(2.5	) 	
Purchases of property and equipment	  	 	(14.2	) 	 	 	(12.3	) 	
	  	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(75.8	) 	 	 	(21.9	) 	
			
Cash Flows From Financing Activities	  				 				
Proceeds from exercise of options	  	 	41.2	  	 	 	72.3	  	
Cash dividends paid	  	 	(61.6	) 	 	 	(44.7	) 	
Common stock repurchased	  	 	(146.8	) 	 	 	(498.4	) 	
Net proceeds from commercial paper	  	 	53.0	  	 	 	—  	  	
Net proceeds from issuance of borrowings	  	 	—  	  	 	 	299.5	  	
	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(114.2	) 	 	 	(171.3	) 	

Net change in cash and cash equivalents	  	 	25.0	  	 	 	58.4	  	
Cash and cash equivalents at beginning of period	  	 	1,370.9	  	 	 	2,157.4	  	
	  	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	1,395.9	  	 	$	2,215.8	  	

(a)	The Company made tax payments of approximately $65 million in the first quarter of 2012 due to the December 2011 agreement with the United States Internal Revenue Services (“IRS”) resolving substiantially all of the issues related to the restructuring of our international operations in 2003 (“IRS Agreement”).	
 
12

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

 	  	Three Months Ended
March 31,	 	
 	  	2012	 	 	2011	 	 	Change	 	
Revenues:	  				 				 				
Consumer-to-Consumer (C2C):	  				 				 				
Transaction fees	  	$	872.0	  	 	$	839.8	  	 	 	4	% 	
Foreign exchange revenues	  	 	239.4	  	 	 	227.4	  	 	 	5	% 	
Other revenues	  	 	13.2	  	 	 	10.9	  	 	 	21	% 	
	  	 	 	 	 	 	 	 	 				
Total Consumer-to-Consumer:	  	 	1,124.6	  	 	 	1,078.1	  	 	 	4	% 	
				
Consumer-to-Business (C2B):	  				 				 				
Transaction fees	  	$	147.7	  	 	$	144.7	  	 	 	2	% 	
Foreign exchange revenues	  	 	0.8	  	 	 	0.9	  	 	 	(11	)% 	
Other revenues	  	 	6.6	  	 	 	7.6	  	 	 	(13	)% 	
	  	 	 	 	 	 	 	 	 				
Total Consumer-to-Business:	  	 	155.1	  	 	 	153.2	  	 	 	1	% 	
				
Business Solutions (B2B) (a):	  				 				 				
Transaction fees	  	$	6.5	  	 	$	0.9	  	 	 	  	(d) 	
Foreign exchange revenues	  	 	80.1	  	 	 	26.8	  	 	 	  	(d) 	
Other revenues	  	 	0.3	  	 	 	0.2	  	 	 	  	(d) 	
	  	 	 	 	 	 	 	 	 				
Total Business Solutions:	  	 	86.9	  	 	 	27.9	  	 	 	  	(d) 	
				
Other:	  				 				 				
Total revenues:	  	$	26.8	  	 	$	23.8	  	 	 	13	% 	
				
Total consolidated revenues	  	$	1,393.4	  	 	$	1,283.0	  	 	 	9	% 	
	  	 	 	 	 	 	 	 	 				
Operating income/(loss):	  				 				 				
Consumer-to-Consumer	  	$	311.3	  	 	$	308.6	  	 	 	1	% 	
Consumer-to-Business	  	 	41.1	  	 	 	34.6	  	 	 	19	% 	
Business Solutions (b)	  	 	(14.8	) 	 	 	(4.3	) 	 	 	  	(d) 	
Other	  	 	(5.1	) 	 	 	(2.0	) 	 	 	  	(d) 	
	  	 	 	 	 	 	 	 	 				
Total segment operating income	  	 	332.5	  	 	 	336.9	  	 	 	(1	)% 	
Restructuring and related expenses (c)	  	 	—  	  	 	 	(24.0	) 	 	 	  	(d) 	
	  	 	 	 	 	 	 	 	 				
Total consolidated operating income	  	$	332.5	  	 	$	312.9	  	 	 	6	% 	

Operating income margin:	  				 				 				
Consumer-to-Consumer	  	 	27.7	% 	 	 	28.6	% 	 	 	(0.9	)% 	
Consumer-to-Business	  	 	26.5	% 	 	 	22.6	% 	 	 	3.9	% 	
Business Solutions	  	 	(17.0	)% 	 	 	(15.4	)% 	 	 	(1.6	)% 	
Total consolidated operating income margin	  	 	23.9	% 	 	 	24.4	% 	 	 	(0.5	)% 	
				
Depreciation and amortization:	  				 				 				
Consumer-to-Consumer	  	$	42.8	  	 	$	33.2	  	 	 	29	% 	
Consumer-to-Business	  	 	3.9	  	 	 	5.2	  	 	 	(25	)% 	
Business Solutions	  	 	15.2	  	 	 	4.4	  	 	 	  	(d) 	
Other	  	 	2.0	  	 	 	1.3	  	 	 	54	% 	
	  	 	 	 	 	 	 	 	 				
Total segment depreciation and amortization	  	 	63.9	  	 	 	44.1	  	 	 	45	% 	
Restructuring and related expenses (c)	  	 	—  	  	 	 	0.6	  	 	 	  	(d) 	
	  	 	 	 	 	 	 	 	 				
Total consolidated depreciation and amortization	  	$	63.9	  	 	$	44.7	  	 	 	43	% 	

(a)	The significant change in Business Solutions revenues for the three months ended March 31, 2012 was primarily the result of the acquisition of Travelex Global Business Payments on November 7, 2011.	
(b)	Business Solutions operating loss includes $6.4 million related to TGBP integration expense in the first quarter of 2012.	
(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.	
 
13

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.

 	  	 	 	1Q11	 	 	2Q11	 	 	3Q11	 	 	4Q11	 	 	FY2011	 	 	1Q12	 	
	  	Consolidated Metrics	 				 				 				 				 				 			 	
(a)	  	Revenues, as reported (GAAP)	 	$	1,283.0	  	 	$	1,366.3	  	 	$	1,410.8	  	 	$	1,431.3	  	 	$	5,491.4	  	 	$	1,393.4	  	
	  	Foreign currency translation impact (m)	 	 	2.3	  	 	 	(32.5	) 	 	 	(18.2	) 	 	 	10.4	  	 	 	(38.0	) 	 	 	8.1	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Revenues, constant currency adjusted	 	$	1,285.3	  	 	$	1,333.8	  	 	$	1,392.6	  	 	$	1,441.7	  	 	$	5,453.4	  	 	$	1,401.5	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year revenues, as reported (GAAP)	 	$	1,232.7	  	 	$	1,273.4	  	 	$	1,329.6	  	 	$	1,357.0	  	 	$	5,192.7	  	 	$	1,283.0	  	
	  	Pro forma prior year revenues, TGBP adjusted (n)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	$	1,338.0	  	
	  	Revenue change, as reported (GAAP)	 	 	4	% 	 	 	7	% 	 	 	6	% 	 	 	5	% 	 	 	6	% 	 	 	9	% 	
	  	Revenue change, constant currency adjusted	 	 	4	% 	 	 	5	% 	 	 	5	% 	 	 	6	% 	 	 	5	% 	 	 	9	% 	
	  	Pro forma revenue change, TGBP adjusted	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	4	% 	
	  	Pro forma revenue change, TGBP and constant currency adjusted	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	5	% 	
							 	
(b)	  	Operating income, as reported (GAAP)	 	$	312.9	  	 	$	350.7	  	 	$	363.0	  	 	$	358.4	  	 	$	1,385.0	  	 	$	332.5	  	
	  	Reversal of restructuring and related expenses (o)	 	 	24.0	  	 	 	8.9	  	 	 	13.9	  	 	 	—  	  	 	 	46.8	  	 	 	—  	  	
	  	Reversal of TGBP integration expense (p)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	4.8	  	 	 	4.8	  	 	 	6.4	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Operating income, excl. restructuring and TGBP integration expense	 	$	336.9	  	 	$	359.6	  	 	$	376.9	  	 	$	363.2	  	 	$	1,436.6	  	 	$	338.9	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Operating income margin, as reported (GAAP)	 	 	24.4	% 	 	 	25.7	% 	 	 	25.7	% 	 	 	25.0	% 	 	 	25.2	% 	 	 	23.9	% 	
	  	Operating income margin, excl. restructuring	 	 	26.3	% 	 	 	26.3	% 	 	 	26.7	% 	 	 	25.0	% 	 	 	26.1	% 	 	 	23.9	% 	
	  	Operating income margin, excl. restructuring and TGBP integration expense	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	25.4	% 	 	 	26.2	% 	 	 	24.3	% 	
							 	
(c)	  	Operating income, as reported (GAAP)	 	$	312.9	  	 	$	350.7	  	 	$	363.0	  	 	$	358.4	  	 	$	1,385.0	  	 	$	332.5	  	
	  	Reversal of depreciation and amortization (q)	 	 	44.7	  	 	 	46.6	  	 	 	45.9	  	 	 	55.4	  	 	 	192.6	  	 	 	63.9	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	EBITDA (q)	 	$	357.6	  	 	$	397.3	  	 	$	408.9	  	 	$	413.8	  	 	$	1,577.6	  	 	$	396.4	  	
	  	Reversal of restructuring and related expenses (o)	 	 	23.4	  	 	 	8.2	  	 	 	13.9	  	 	 	—  	  	 	 	45.5	  	 	 	—  	  	
	  	Reversal of TGBP integration expense (p)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	4.8	  	 	 	4.8	  	 	 	6.4	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	EBITDA, excl. restructuring and TGBP integration expense	 	$	381.0	  	 	$	405.5	  	 	$	422.8	  	 	$	418.6	  	 	$	1,627.9	  	 	$	402.8	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	EBITDA margin	 	 	27.9	% 	 	 	29.1	% 	 	 	29.0	% 	 	 	28.9	% 	 	 	28.7	% 	 	 	28.4	% 	
	  	EBITDA margin, excl. restructuring and TGBP integration expense	 	 	29.7	% 	 	 	29.7	% 	 	 	30.0	% 	 	 	29.2	% 	 	 	29.6	% 	 	 	28.9	% 	
							 	
(d)	  	Net income, as reported (GAAP)	 	$	210.2	  	 	$	263.2	  	 	$	239.7	  	 	$	452.3	  	 	$	1,165.4	  	 	$	247.3	  	
	  	Reversal of restructuring and related expenses, net of income tax benefit (o)	 	 	16.4	  	 	 	5.9	  	 	 	9.7	  	 	 	—  	  	 	 	32.0	  	 	 	—  	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Net income, restructuring adjusted	 	$	226.6	  	 	$	269.1	  	 	$	249.4	  	 	$	452.3	  	 	$	1,197.4	  	 	$	247.3	  	
	  	Reversal of IRS Agreement tax provision benefit (r)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	(204.7	) 	 	 	(204.7	) 	 	 	—  	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Net income, restructuring and IRS Agreement adjusted	 	$	226.6	  	 	$	269.1	  	 	$	249.4	  	 	$	247.6	  	 	$	992.7	  	 	$	247.3	  	
	  	Reversal of TGBP integration expense, net of income tax benefit (p)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	3.1	  	 	 	3.1	  	 	 	4.3	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Net income, restructuring, IRS Agreement and TGBP integration expense adjusted	 	$	226.6	  	 	$	269.1	  	 	$	249.4	  	 	$	250.7	  	 	$	995.8	  	 	$	251.6	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted earnings per share (“EPS”), as reported (GAAP) ($ - dollars)	 	$	0.32	  	 	$	0.41	  	 	$	0.38	  	 	$	0.73	  	 	$	1.84	  	 	$	0.40	  	
	  	Impact from restructuring and related expenses, net of income tax benefit (o) ($ - dollars)	 	 	0.03	  	 	 	0.01	  	 	 	0.02	  	 	 	—  	  	 	 	0.05	  	 	 	—  	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted EPS, restructuring adjusted ($ - dollars)	 	$	0.35	  	 	$	0.42	  	 	$	0.40	  	 	$	0.73	  	 	$	1.89	  	 	$	0.40	  	
	  	Impact from IRS Agreement tax provision benefit (r) ($ - dollars)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	(0.33	) 	 	 	(0.32	) 	 	 	—  	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted EPS, restructuring and IRS Agreement adjusted ($ - dollars)	 	$	0.35	  	 	$	0.42	  	 	$	0.40	  	 	$	0.40	  	 	$	1.57	  	 	$	0.40	  	
	  	Impact from TGBP integration expense, net of income tax benefit (p) ($ - dollars)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted EPS, restructuring, IRS Agreement and TGBP integration expense adjusted ($ - dollars)	 	$	0.35	  	 	$	0.42	  	 	$	0.40	  	 	$	0.40	  	 	$	1.57	  	 	$	0.40	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Diluted weighted-average shares outstanding	 	 	652.1	  	 	 	635.8	  	 	 	627.1	  	 	 	621.7	  	 	 	634.2	  	 	 	621.9	  	
 
14

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

 	  	 	 	1Q11	 	 	2Q11	 	 	3Q11	 	 	4Q11	 	 	FY2011	 	 	1Q12	 	
	  	Consumer-to-Consumer Segment	 				 				 				 				 				 			 	
(e)	  	Revenues, as reported (GAAP)	 	$	1,078.1	  	 	$	1,155.1	  	 	$	1,193.3	  	 	$	1,181.9	  	 	$	4,608.4	  	 	$	1,124.6	  	
	  	Foreign currency translation impact (m)	 	 	2.2	  	 	 	(31.4	) 	 	 	(17.9	) 	 	 	8.0	  	 	 	(39.1	) 	 	 	5.2	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Revenues, constant currency adjusted	 	$	1,080.3	  	 	$	1,123.7	  	 	$	1,175.4	  	 	$	1,189.9	  	 	$	4,569.3	  	 	$	1,129.8	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year revenues, as reported (GAAP)	 	$	1,030.2	  	 	$	1,073.1	  	 	$	1,128.3	  	 	$	1,151.8	  	 	$	4,383.4	  	 	$	1,078.1	  	
	  	Revenue change, as reported (GAAP)	 	 	5	% 	 	 	8	% 	 	 	6	% 	 	 	3	% 	 	 	5	% 	 	 	4	% 	
	  	Revenue change, constant currency adjusted	 	 	5	% 	 	 	5	% 	 	 	4	% 	 	 	3	% 	 	 	4	% 	 	 	5	% 	
							 	
(f)	  	Principal per transaction, as reported ($ - dollars)	 	$	360	  	 	$	365	  	 	$	366	  	 	$	349	  	 	$	360	  	 	$	346	  	
	  	Foreign currency translation impact (m) ($ - dollars)	 	 	(1	) 	 	 	(14	) 	 	 	(11	) 	 	 	2	  	 	 	(6	) 	 	 	3	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Principal per transaction, constant currency adjusted ($ - dollars)	 	$	359	  	 	$	351	  	 	$	355	  	 	$	351	  	 	$	354	  	 	$	349	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year principal per transaction, as reported ($ - dollars)	 	$	357	  	 	$	351	  	 	$	355	  	 	$	356	  	 	$	355	  	 	$	360	  	
	  	Principal per transaction change, as reported	 	 	1	% 	 	 	4	% 	 	 	3	% 	 	 	(2	)% 	 	 	1	% 	 	 	(4	)% 	
	  	Principal per transaction change, constant currency adjusted	 	 	1	% 	 	 	0	% 	 	 	0	% 	 	 	(1	)% 	 	 	0	% 	 	 	(3	)% 	
							 	
(g)	  	Cross-border principal, as reported ($ - billions)	 	$	17.1	  	 	$	18.6	  	 	$	19.0	  	 	$	18.5	  	 	$	73.2	  	 	$	17.5	  	
	  	Foreign currency translation impact (m) ($ - billions)	 	 	—  	  	 	 	(0.8	) 	 	 	(0.6	) 	 	 	0.2	  	 	 	(1.2	) 	 	 	0.2	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Cross-border principal, constant currency adjusted ($ - billions)	 	$	17.1	  	 	$	17.8	  	 	$	18.4	  	 	$	18.7	  	 	$	72.0	  	 	$	17.7	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year cross-border principal, as reported ($ - billions)	 	$	16.1	  	 	$	16.8	  	 	$	17.6	  	 	$	18.1	  	 	$	68.6	  	 	$	17.1	  	
	  	Cross-border principal change, as reported	 	 	7	% 	 	 	10	% 	 	 	8	% 	 	 	2	% 	 	 	7	% 	 	 	2	% 	
	  	Cross-border principal change, constant currency adjusted	 	 	6	% 	 	 	6	% 	 	 	5	% 	 	 	3	% 	 	 	5	% 	 	 	3	% 	
							 	
(h)	  	International revenues, as reported (GAAP)	 	$	901.7	  	 	$	962.9	  	 	$	995.7	  	 	$	995.5	  	 	$	3,855.8	  	 	$	936.9	  	
	  	Foreign currency translation impact (m)	 	 	2.6	  	 	 	(30.7	) 	 	 	(17.4	) 	 	 	7.5	  	 	 	(38.0	) 	 	 	4.9	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	International revenues, constant currency adjusted	 	$	904.3	  	 	$	932.2	  	 	$	978.3	  	 	$	1,003.0	  	 	$	3,817.8	  	 	$	941.8	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year international revenues, as reported (GAAP)	 	$	862.0	  	 	$	890.8	  	 	$	944.0	  	 	$	972.4	  	 	$	3,669.2	  	 	$	901.7	  	
	  	International revenue change, as reported (GAAP)	 	 	5	% 	 	 	8	% 	 	 	5	% 	 	 	2	% 	 	 	5	% 	 	 	4	% 	
	  	International revenue change, constant currency adjusted	 	 	5	% 	 	 	5	% 	 	 	4	% 	 	 	3	% 	 	 	4	% 	 	 	4	% 	
							 	
(i)	  	International principal per transaction, as reported ($ - dollars)	 	$	390	  	 	$	399	  	 	$	401	  	 	$	381	  	 	$	393	  	 	$	378	  	
	  	Foreign currency translation impact (m) ($ - dollars)	 	 	(2	) 	 	 	(18	) 	 	 	(13	) 	 	 	3	  	 	 	(8	) 	 	 	4	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	International principal per transaction, constant currency adjusted ($ - dollars)	 	$	388	  	 	$	381	  	 	$	388	  	 	$	384	  	 	$	385	  	 	$	382	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year international principal per transaction, as reported ($ - dollars)	 	$	381	  	 	$	376	  	 	$	384	  	 	$	386	  	 	$	382	  	 	$	390	  	
	  	International principal per transaction change, as reported	 	 	2	% 	 	 	6	% 	 	 	4	% 	 	 	(1	)% 	 	 	3	% 	 	 	(3	)% 	
	  	International principal per transaction change, constant currency adjusted	 	 	2	% 	 	 	1	% 	 	 	1	% 	 	 	(1	)% 	 	 	1	% 	 	 	(2	)% 	
							 	
(j)	  	International excl. US origination revenues, as reported (GAAP)	 	$	732.2	  	 	$	788.6	  	 	$	822.2	  	 	$	815.5	  	 	$	3,158.5	  	 	$	759.6	  	
	  	Foreign currency translation impact (m)	 	 	2.6	  	 	 	(30.7	) 	 	 	(17.4	) 	 	 	7.5	  	 	 	(38.0	) 	 	 	4.9	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	International excl. US origination revenues, constant currency adjusted	 	$	734.8	  	 	$	757.9	  	 	$	804.8	  	 	$	823.0	  	 	$	3,120.5	  	 	$	764.5	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year international excl. US origination revenues, as reported (GAAP)	 	$	699.8	  	 	$	719.2	  	 	$	774.3	  	 	$	797.6	  	 	$	2,990.9	  	 	$	732.2	  	
	  	International excl. US origination revenues change, as reported (GAAP)	 	 	5	% 	 	 	10	% 	 	 	6	% 	 	 	2	% 	 	 	6	% 	 	 	4	% 	
	  	International excl. US origination revenues change, constant currency adjusted	 	 	5	% 	 	 	5	% 	 	 	4	% 	 	 	3	% 	 	 	4	% 	 	 	4	% 	
 
15

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

 	  	 	 	1Q11	 	 	2Q11	 	 	3Q11	 	 	4Q11	 	 	FY2011	 	 	1Q12	 	
	  	Consumer-to-Business Segment	 				 				 				 				 				 			 	
(k)	  	Revenues, as reported (GAAP)	 	$	153.2	  	 	$	153.5	  	 	$	155.3	  	 	$	153.9	  	 	$	615.9	  	 	$	155.1	  	
	  	Foreign currency translation impact (m)	 	 	1.3	  	 	 	1.1	  	 	 	1.5	  	 	 	2.5	  	 	 	6.4	  	 	 	2.9	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Revenues, constant currency adjusted	 	$	154.5	  	 	$	154.6	  	 	$	156.8	  	 	$	156.4	  	 	$	622.3	  	 	$	158.0	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year revenues, as reported (GAAP)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	$	610.7	  	 	$	153.2	  	
	  	Revenue change, as reported (GAAP)	 	 	(2	)% 	 	 	2	% 	 	 	2	% 	 	 	2	% 	 	 	1	% 	 	 	1	% 	
	  	Revenue change, constant currency adjusted	 	 	(1	)% 	 	 	2	% 	 	 	3	% 	 	 	3	% 	 	 	2	% 	 	 	3	% 	
							 	
	  	Business Solutions Segment	 				 				 				 				 				 			 	
(l)	  	Revenues, as reported (GAAP)	 	$	27.9	  	 	$	31.4	  	 	$	33.6	  	 	$	68.2	  	 	$	161.1	  	 	$	86.9	  	
	  	Foreign currency translation impact (m)	 	 	(1.3	) 	 	 	(2.2	) 	 	 	(2.1	) 	 	 	(0.1	) 	 	 	(5.7	) 	 	 	(0.1	) 	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Revenues, constant currency adjusted	 	$	26.6	  	 	$	29.2	  	 	$	31.5	  	 	$	68.1	  	 	$	155.4	  	 	$	86.8	  	
	  		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Prior year revenues, as reported (GAAP)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	$	106.7	  	 	$	27.9	  	
	  	Pro forma prior year revenues, TGBP adjusted (n)	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	$	82.9	  	
	  	Revenue change, as reported (GAAP)	 	 	13	% 	 	 	15	% 	 	 	31	% 	 	 	*	* 	 	 	*	* 	 	 	*	* 	
	  	Revenue change, constant currency adjusted	 	 	8	% 	 	 	7	% 	 	 	22	% 	 	 	*	* 	 	 	*	* 	 	 	*	* 	
	  	Pro forma revenue change, TGBP adjusted	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	5	% 	
	  	Pro forma revenue change, TGBP and constant currency adjusted	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	N/A	  	 	 	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)	 	 	25	% 	 				 				 				 				 				
	  	TGBP integration expense impact (p)	 	 	1	% 	 				 				 				 				 				
	  		 	 	 	 	 				 				 				 				 				
	  	Operating income margin, TGBP integration expense adjusted	 	 	26	% 	 				 				 				 				 				

	  	Operating income margin (GAAP)	 	 	25	% 	 				 				 				 				 				
	  	Depreciation and amortization impact (q)	 	 	4	% 	 				 				 				 				 				
	  	TGBP integration expense impact (p)	 	 	1	% 	 				 				 				 				 				
	  		 	 	 	 	 				 				 				 				 				
	  	EBITDA margin, TGBP integration expense adjusted	 	 	30	% 	 				 				 				 				 				

 	  	 	 	Range	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	EPS guidance (GAAP) ($ - dollars)	 	$	1.65	  	 	$	1.70	  	 				 				 				 				
	  	TGBP integration expense impact, net of tax benefit (p) ($ - dollars)	 	 	0.05	  	 	 	0.05	  	 				 				 				 				
	  		 	 	 	 	 	 	 	 	 				 				 				 				
	  	EPS guidance, TGBP integration expense adjusted ($ - dollars)	 	$	1.70	  	 	$	1.75	  	 				 				 				 				

 	  	 	 	Range	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	Operating cash flow (GAAP) ($ - billions)	 	$	1.0	  	 	$	1.1	  	 				 				 				 				
	  	Payments on IRS Agreement (r) ($ - billions)	 	 	0.2	  	 	 	0.2	  	 				 				 				 				
	  		 	 	 	 	 	 	 	 	 				 				 				 				
	  	Operating cash flow, IRS Agreement adjusted ($ - billions)	 	$	1.2	  	 	$	1.3	  	 				 				 				 				

16

THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(in millions, unless indicated otherwise)
(Unaudited)
Non-GAAP related notes: 
 
(m)	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 $0.3 million for the three months ended March 31, 2012 associated with the acquisition of Travelex Global Business Payments (“TGBP”).	
 
(n)	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.	
 
(o)	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.	
 
(p)	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; and other expenses such as training, travel and professional fees. Integration expense does not include costs related to the completion of the TGBP acquisition.	
 
(q)	Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) results from taking operating income and adjusting for depreciation and amortization expenses.	
 
(r)	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. Additionally, represents the impact of the anticipated tax payments of approximately $190 million related to the agreement with the IRS discussed above.	
 
(s)	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.	
Other notes:
 
(t)	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.	
 
(u)	Represents the Europe and the Commonwealth of Independent States (“CIS”) region of our Consumer-to-Consumer segment.	
 
(v)	Represents the North America region, including the United States, Mexico, and Canada, of our Consumer-to-Consumer segment.	
 
(w)	Represents the Middle East and Africa region of our Consumer-to-Consumer segment.	
 
(x)	Represents the APAC region of our Consumer-to-Consumer segment, including India, China, and South Asia.	
 
(y)	Represents the Latin America and the Caribbean region (“LACA”) of our Consumer-to-Consumer segment.	
 
(z)	Represents transactions initiated on westernunion.com which are primarily paid out at Western Union agent locations in the respective regions.	
 
(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.	
 
17

	

Western Union
First Quarter 2012
Earnings Webcast & Conference Call
April 24, 2012
Exhibit 99.2	

	

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

	

New segment structure beginning Q1 2012
Consumer-to-Consumer (C2C) now reporting six regions:
Europe and Commonwealth of Independent States (CIS)
North America including US, Canada, Mexico
Middle East and Africa
Asia Pacific including India and South Asia (APAC)
Latin America and the Caribbean (LACA)
westernunion.com (from all geographic regions)
Consumer-to-Business (C2B)
Business Solutions
Other (primarily Retail Money Order, Prepaid and Mobile
Money Transfer)
3
Q1 New Segment Structure	

	

Safe Harbor
4
This presentation 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
presentation
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
throughout
the
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2011, including those described under “Risk Factors”. 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;
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; 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.	

	

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

	

C2C revenue growth accelerated
4% reported, or 5% constant currency*
Reached 500,000 Agent locations in April
Business Solutions integration on track
Pro forma revenue growth 5%, or 4% constant currency*
Strong progress in Ventures
westernunion.com money transfer revenue increased 39%
6
Q1 Highlights
Returned over $200 million through                             
buyback and dividends
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.	

	

New services
WU Pay electronics payment platform launched
Key agreements
Mobile money transfer to integrate with Ericsson’s platforms
Acxsys agreement for international account based money
transfer for customers of Canadian banks
Business Solutions launched pension payment services for
Mercer Outsourcing in the U.K. enabling payments to 80
countries
7
Q1 Highlights	

	

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

	

Revenue
9
($ in millions)
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.
Consolidated revenue up 9%
reported and constant currency
adjusted*
Pro forma revenue increase
4%, or 5% constant currency,
including Travelex Global
Business Payments (TGBP) in
prior period*
Transaction fees increased 4%
Foreign exchange revenue
increased 26%
TGBP acquisition aided FX
revenue	

	

Consumer-to-Consumer
10
C2C 81% of Company revenue
C2C revenue growth of 4% reported, or 5% constant currency*
Transaction growth of 7%
Total Q1 Western Union cross-border principal of $18 billion
Increased 2% on a reported basis
Increased 3% constant currency*
Principal per transaction
Declined 4% on a reported basis
Declined 3% on a constant currency basis*
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.	

	

Consumer-to-Consumer
11
Regions
Revenue
Growth
Transaction
Growth
% of Total
Revenue
Europe and CIS
0%
1%
22%
North America
5%
6%
21%
Middle East and Africa
6%
9%
15%
Asia Pacific
7%
6%
12%
Latin America and Caribbean
2%
8%
9%
westernunion.com
39%
41%
2%
Q1 2012	

	

Electronic Channels & Prepaid Highlights
Account-based money transfer
Revenue increased 43%
Agreements in place with nearly 90 banks globally
westernunion.com
C2C revenue increased 39%
Total WU.com revenue increased 37% (includes C2B)
Prepaid
Revenue increased 17%
Over $260 million loaded through 600,000 loads
12
Electronic Channels Revenue Growth 38%	

	

C2C Transaction and Revenue Growth
13
Q1 2012
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.	

	

Consumer-to-Business
14
C2B 11% of Company revenue
Revenue increased 1%, or 3% constant currency*
Led by growth in South America
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.	

	

Business Solutions
15
Business Solutions 6% of Company revenue
Pro forma revenue increased 5%*, or 4% constant currency*, including
TGBP in the prior year period
Strong growth in Australia, softness in North America and the U.K.
New customer acquisitions remain strong
Integration of TGBP progressing on track
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.	

	

16
Operating Margin
GAAP
Excluding
Restructuring and
TGBP Integration
Expenses*
Operating margin excluding
restructuring expense and TGBP
integration expense declined 200
basis points
•
Business Solutions results
negatively impacted margin,
including $10 million of
incremental TGBP intangibles
amortization
•
Higher marketing, additional
investments, compliance
costs, and timing of expenses, 
partially offset by benefits from
revenue leverage, currency,
restructuring savings and
reduced bank fees
•
Expect full year margin to be in
line with financial outlook
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.	

	

17
C2C Operating Margin
Operating margin decreased 90 basis
points from prior year
•
Increased marketing, Costa and
Finint acquisition related expenses, 
investments in WU.com and
compliance costs
•
Partially offset by benefits from
revenue leverage, currency, and
restructuring savings	

	

18
C2B Operating Margin
Operating margin improvement
Primarily due to the benefit of
lower debit processing expenses
related to Durbin	

	

19
Business Solutions Operating Margin
Operating Loss
Operating loss of $15 million compared to an operating loss of $4
million in the prior year period
Includes $14 million of intangibles amortization in current quarter and
$4 million in the prior year period
Includes $6 million of integration expenses in the current quarter	

	

20
Financial Strength
1Q 2012
Cash Flow from Operations*
$215 million
Capital Expenditures
$76 million
Stock Repurchases
$147 million
Dividends Paid
$62 million
Cash Balance, March 31, 2012
$1.4 billion
Debt Outstanding, March 31, 2012
$3.6 billion
*
Note:
Includes
the
impact
of
tax
payments
of
approximately
$65
million
relating
to
the
agreement with the U.S. Internal Revenue Service announced December 15, 2011	

	

2012 Outlook
21
February 2012 Outlook Affirmed
Constant currency revenue growth in the range of 6% to 8%*, including 4%
benefit from a full year of TGBP
GAAP revenue growth 2% lower than constant currency
Operating margins expected to be similar to 2011
GAAP operating margin of approximately 25%
Operating margin excluding TGBP integration costs of approximately 26%*
EBITDA margin of approximately 30% excluding TGBP integration costs*
GAAP EPS in a range of $1.65 to $1.70, or $1.70 to $1.75 excluding TGBP
integration expense*
GAAP
cash
flows
from
operations
in
range
of
$1.0
billion
to
$1.1
billion,
or
$1.2
billion to $1.3 billion excluding estimated tax payments of approximately $200
million related to the IRS agreement*
*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.	

	

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

	

Appendix
First Quarter 2012 Earnings
Webcast & Conference Call
April 24, 2012
23	

	

Non-GAAP Measures
24
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. These non-GAAP financial measures
include revenue change constant currency adjusted, pro forma revenue change TGBP adjusted, pro forma
revenue change TGBP and constant currency adjusted, operating income margin excluding restructuring
and TGBP integration expense, EBITDA margin excluding restructuring and TGBP integration expense,
earnings per share restructuring, IRS Agreement and TGBP integration expense adjusted, Consumer-to-
Consumer segment revenue change constant currency adjusted, Consumer-to-Consumer segment
principal per transaction change constant currency adjusted, Consumer-to-Consumer segment cross-
border principal change constant currency adjusted, Consumer-to-Business segment revenue change
constant
currency
adjusted,
Business
Solutions
segment
pro
forma
revenue
change
TGBP
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, and 2012 operating cash flow outlook IRS
Agreement adjusted.
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.  Amounts included below are in millions, unless indicated otherwise.	

	

Reconciliation of Non-GAAP Measures
25
1Q11
2Q11
3Q11
4Q11
FY2011
1Q12
Consolidated Metrics
Revenues, as reported (GAAP)
1,283.0
$     
1,366.3
$     
1,410.8
$     
1,431.3
$     
5,491.4
$     
1,393.4
$ 
Foreign currency translation impact (a)
2.3
(32.5)
(18.2)
10.4
(38.0)
8.1
Revenues, constant currency adjusted
1,285.3
$     
1,333.8
$     
1,392.6
$     
1,441.7
$     
5,453.4
$     
1,401.5
$ 
Prior year revenues, as reported (GAAP)
1,232.7
$     
1,273.4
$     
1,329.6
$     
1,357.0
$     
5,192.7
$     
1,283.0
$ 
Pro forma prior year revenues, TGBP adjusted (b)
N/A
N/A
N/A
N/A
N/A
1,338.0
$ 
Revenue change, as reported (GAAP)
4
%
7
%
6
%
5
%
6
%
9
%
Revenue change, constant currency adjusted
4
%
5
%
5
%
6
%
5
%
9
%
Pro forma revenue change, TGBP adjusted
N/A
N/A
N/A
N/A
N/A
4
%
Pro forma revenue change, TGBP and constant currency adjusted
N/A
N/A
N/A
N/A
N/A
5
%
Operating income, as reported (GAAP)
312.9
$       
350.7
$       
363.0
$       
358.4
$       
1,385.0
$     
332.5
$    
Reversal of  restructuring and related expenses (c)
24.0
8.9
13.9
-
46.8
-
Reversal of  TGBP integration expense (d)
N/A
N/A
N/A
4.8
4.8
6.4
Operating income, excl. restructuring and TGBP integration expense
336.9
$       
359.6
$       
376.9
$       
363.2
$       
1,436.6
$     
338.9
$    
Operating income margin, as reported (GAAP)
24.4%
25.7%
25.7%
25.0%
25.2%
23.9%
Operating income margin, excl. restructuring
26.3%
26.3%
26.7%
25.0%
26.1%
23.9%
Operating income margin, excl. restructuring and TGBP integration expense
N/A
N/A
N/A
25.4%
26.2%
24.3%
Operating income, as reported (GAAP)
312.9
$       
350.7
$       
363.0
$       
358.4
$       
1,385.0
$     
332.5
$    
Reversal of  depreciation and amortization (e)
44.7
46.6
45.9
55.4
192.6
63.9
EBITDA (e)
357.6
$       
397.3
$       
408.9
$       
413.8
$       
1,577.6
$     
396.4
$    
Reversal of  restructuring and related expenses (c)
23.4
8.2
13.9
-
45.5
-
Reversal of  TGBP integration expense (d)
N/A
N/A
N/A
4.8
4.8
6.4
EBITDA, excl. restructuring and TGBP integration expense
381.0
$       
405.5
$       
422.8
$       
418.6
$       
1,627.9
$     
402.8
$    
EBITDA margin
27.9%
29.1%
29.0%
28.9%
28.7%
28.4%
EBITDA margin, excl. restructuring and TGBP integration expense
29.7%
29.7%
30.0%
29.2%
29.6%
28.9%
Net income, as reported (GAAP)
210.2
$       
263.2
$       
239.7
$       
452.3
$       
1,165.4
$     
247.3
$    
Reversal of  restructuring and related expenses, net of  income tax benefit (c)
16.4
5.9
9.7
-
32.0
-
Net income, restructuring adjusted
226.6
$       
269.1
$       
249.4
$       
452.3
$       
1,197.4
$     
247.3
$    
Reversal of  IRS Agreement tax provision benefit (f)
N/A
N/A
N/A
(204.7)
(204.7)
-
Net income, restructuring and IRS Agreement adjusted
226.6
$       
269.1
$       
249.4
$       
247.6
$       
992.7
$       
247.3
$    
Reversal
of
TGBP
integration
expense,
net
of
income
tax
benefit
(d)
N/A
N/A
N/A
3.1
3.1
4.3
Net income, restructuring, IRS Agreement and TGBP integration expense adjusted
226.6
$       
269.1
$       
249.4
$       
250.7
$       
995.8
$       
251.6
$    
Diluted
earnings
per
share
("EPS"),
as
reported
(GAAP)
($
-
dollars)
0.32
$         
0.41
$         
0.38
$         
0.73
$         
1.84
$         
0.40
$     
Impact
from
restructuring
and
related
expenses,
net
of
income
tax
benefit
(c)
($
-
dollars)
0.03
0.01
0.02
-
0.05
-
Diluted
EPS,
restructuring
adjusted
($
-
dollars)
0.35
$         
0.42
$         
0.40
$         
0.73
$         
1.89
$         
0.40
$     
Impact
from
IRS
Agreement
tax
provision
benefit
(f)
($
-
dollars)
N/A
N/A
N/A
(0.33)
(0.32)
-
Diluted
EPS,
restructuring
and
IRS
Agreement
adjusted
($
-
dollars)
0.35
$         
0.42
$         
0.40
$         
0.40
$         
1.57
$         
0.40
$     
Impact
from
TGBP
integration
expense,
net
of
income
tax
benefit
(d)
($
-
dollars)
N/A
N/A
N/A
-
-
-
Diluted
EPS,
restructuring,
IRS
Agreement
and
TGBP
integration
expense
adjusted
($
-
dollars)
0.35
$         
0.42
$         
0.40
$         
0.40
$         
1.57
$         
0.40
$     
Diluted weighted-average shares outstanding
652.1
635.8
627.1
621.7
634.2
621.9	

	

Reconciliation of Non-GAAP Measures
26
1Q11
2Q11
3Q11
4Q11
FY2011
1Q12
Consumer-to-Consumer Segment
Revenues, as reported (GAAP)
1,078.1
$     
1,155.1
$     
1,193.3
$     
1,181.9
$     
4,608.4
$     
1,124.6
$ 
Foreign currency translation impact (a)
2.2
(31.4)
(17.9)
8.0
(39.1)
5.2
Revenues, constant currency adjusted
1,080.3
$     
1,123.7
$     
1,175.4
$     
1,189.9
$     
4,569.3
$     
1,129.8
$ 
Prior year revenues, as reported (GAAP)
1,030.2
$     
1,073.1
$     
1,128.3
$     
1,151.8
$     
4,383.4
$     
1,078.1
$ 
Revenue change, as reported (GAAP)
5
%
8
%
6
%
3
%
5
%
4
%
Revenue change, constant currency adjusted
5
%
5
%
4
%
3
%
4
%
5
%
Principal
per
transaction,
as
reported
($
-
dollars)
360
$          
365
$          
366
$          
349
$          
360
$          
346
$      
Foreign
currency
translation
impact
(a)
($
-
dollars)
(1)
(14)
(11)
2
(6)
3
Principal
per
transaction,
constant
currency
adjusted
($
-
dollars)
359
$          
351
$          
355
$          
351
$          
354
$          
349
$      
Prior
year
principal
per
transaction,
as
reported
($
-
dollars)
357
$          
351
$          
355
$          
356
$          
355
$          
360
$      
Principal per transaction change, as reported
1
%
4
%
3
%
(2)%
1
%
(4)%
Principal per transaction change, constant currency adjusted
1
%
0
%
0
%
(1)%
0
%
(3)%
Cross-border
principal,
as
reported
($
-
billions)
17.1
$         
18.6
$         
19.0
$         
18.5
$         
73.2
$         
17.5
$     
Foreign
currency
translation
impact
(a)
($
-
billions)
-
(0.8)
(0.6)
0.2
(1.2)
0.2
Cross-border
principal,
constant
currency
adjusted
($
-
billions)
17.1
$         
17.8
$         
18.4
$         
18.7
$         
72.0
$         
17.7
$     
Prior
year
cross-border
principal,
as
reported
($
-
billions)
16.1
$         
16.8
$         
17.6
$         
18.1
$         
68.6
$         
17.1
$     
Cross-border principal change, as reported
7
%
10
%
8
%
2
%
7
%
2
%
Cross-border principal change, constant currency adjusted
6
%
6
%
5
%
3
%
5
%
3
%
Consumer-to-Business Segment
Revenues, as reported (GAAP)
153.2
$       
153.5
$       
155.3
$       
153.9
$       
615.9
$       
155.1
$    
Foreign currency translation impact (a)
1.3
1.1
1.5
2.5
6.4
2.9
Revenues, constant currency adjusted
154.5
$       
154.6
$       
156.8
$       
156.4
$       
622.3
$       
158.0
$    
Prior year revenues, as reported (GAAP)
N/A
N/A
N/A
N/A
610.7
$       
153.2
$    
Revenue change, as reported (GAAP)
(2)%
2
%
2
%
2
%
1
%
1
%
Revenue change, constant currency adjusted
(1)%
2
%
3
%
3
%
2
%
3
%
Business Solutions Segment
Revenues, as reported (GAAP)
27.9
$         
31.4
$         
33.6
$         
68.2
$         
161.1
$       
86.9
$     
Foreign currency translation impact (a)
(1.3)
(2.2)
(2.1)
(0.1)
(5.7)
(0.1)
Revenues, constant currency adjusted
26.6
$         
29.2
$         
31.5
$         
68.1
$         
155.4
$       
86.8
$     
Prior year revenues, as reported (GAAP)
N/A
N/A
N/A
N/A
106.7
$       
27.9
$     
Pro forma prior year revenues, TGBP adjusted (b)
N/A
N/A
N/A
N/A
N/A
82.9
$     
Revenue change, as reported (GAAP)
13
%
15
%
31
%
***
***
***
Revenue change, constant currency adjusted
8
%
7
%
22
%
***
***
***
Pro forma revenue change, TGBP adjusted
N/A
N/A
N/A
N/A
N/A
5
%
Pro forma revenue change, TGBP and constant currency adjusted
N/A
N/A
N/A
N/A
N/A
4
%
*** Calculation of growth percentage is not meaningful due to the impact of the TGBP acquisition in November 2011.	

	

Reconciliation of Non-GAAP Measures
27
2012 Outlook Metrics
Revenue change (GAAP)
4
%
6
%
Foreign currency translation impact (g)
2
%
2
%
Revenue change, constant currency adjusted
6
%
8
%
Operating income margin (GAAP)
25
%
TGBP integration expense impact (d)
1
%
Operating income margin, TGBP integration expense adjusted
26
%
Operating income margin (GAAP)
25
%
Depreciation and amortization impact (e)
4
%
TGBP integration expense impact (d)
1
%
EBITDA margin, TGBP integration expense adjusted
30
%
EPS guidance (GAAP) 
1.65
$         
1.70
$         
TGBP
integration
expense
impact,
net
of
tax
benefit
(d)
0.05
0.05
EPS guidance, TGBP integration expense adjusted
1.70
$         
1.75
$         
Operating cash flow (GAAP)
1.0
$           
1.1
$           
Payments on IRS Agreement (f)
0.2
0.2
Operating cash flow, IRS Agreement adjusted  ($ -
1.2
$           
1.3
$           
Range
Range
Range
billions)
($ -
dollars)
($ -
dollars)
($ -
dollars)
($ -
billions)
($ -
billions)	

	

Footnote explanations
28
Non-GAAP related notes:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
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. 
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.  Additionally, represents the impact of the anticipated tax payments of approximately $190 million related to the agreement with the IRS discussed above.
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; and
other expenses such as training, travel and professional fees. Integration expense does not include costs related to the completion of the TGBP acquisition.
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 $0.3 million for the three months ended March 31, 2012 associated with the acquisition of Travelex Global Business Payments ("TGBP"). 
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.
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.           
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) results from taking operating income and adjusting for depreciation and amortization expenses.