Market Overview

Western Union Reports Second Quarter Results

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Strong digital growth
Operating margin 20%
Over
$420 million returned to shareholders year-to-date

The Western Union Company (NYSE:WU), a global leader in cross-border,
cross-currency money movement, today reported second quarter financial
results and an updated outlook for 2018.

In the second quarter, the Company generated revenue of $1.4 billion,
which increased 2% compared to the prior year, or 3% on a constant
currency basis. Growth was led by the consumer money transfer business,
which increased 4%, or 3% constant currency, driven by strong
performance from westernunion.com.

"We continue to execute our long-term strategy, focusing on expanding
digital offerings, enhancing the customer experience, entering new
cross-border opportunities, and creating operating efficiencies," said
president and CEO Hikmet Ersek.

Ersek added, "The second quarter again demonstrated the stability of our
global consumer money transfer business and our progress in digital, as
westernunion.com money transfer revenues increased 22%. We are also
expanding our retail presence, adding large agents such as the
Albertsons grocery chain to our network."

GAAP earnings per share in the quarter was $0.47 compared to $0.35 in
the prior year period. On an adjusted basis, earnings per share was
$0.46 compared to $0.50 in the prior year period. The increase in GAAP
earnings per share was primarily due to a NYDFS settlement accrual and
WU Way related expenses incurred in the prior year period, while the
decrease in adjusted earnings per share was primarily due to a lower
adjusted operating profit margin and higher adjusted tax rate in the
current year period.

Executive vice president and CFO Raj Agrawal stated, "We delivered solid
20% operating margins in the quarter and utilized our strong free cash
flow to return significant funds to shareholders. We are continuing to
drive financial performance while investing in our long-term strategic
initiatives."

Q2 Business Unit Highlights

  • Consumer-to-Consumer (C2C) revenues, which represented 80% of total
    Company revenue in the quarter, increased 4%, or 3% constant currency,
    while transactions grew 5%. Geographically, constant currency revenue
    growth was led by sends originated in Latin America, Europe, and North
    America, partially offset by declines in the Middle East and Africa.

    Westernunion.com
    C2C revenues increased 22%, or 21% constant currency, and transactions
    increased 26%. Westernunion.com is now in 45 countries and territories
    and represented 11% of total C2C revenue in the quarter.
  • Western Union Business Solutions revenues declined 4%, or 6% on a
    constant currency basis. Business Solutions represented 7% of total
    Company revenues in the quarter.
  • Other revenues, which primarily consist of bill payments businesses in
    the U.S. and Argentina, declined 2%, or increased 9% on a constant
    currency basis. Other revenues represented 13% of total Company
    revenues in the quarter.

Additional Q2 Financial Highlights

  • GAAP operating margin in the quarter was 20.1%, which compares to
    15.6% in the prior year period, or 21.7% in the prior year on an
    adjusted basis. GAAP operating profit of $284 million compares to $215
    million in the prior year, or $299 million in the prior year on an
    adjusted basis. The GAAP operating margin and operating profit
    increases were primarily due to NYDFS settlement and WU Way related
    expenses incurred in the prior year period, while the adjusted margin
    and profit decreases were primarily due to timing of marketing and
    compliance related spending.
  • The effective tax rate in the quarter was 14.8% compared to 9.7% in
    the prior year period. On an adjusted basis, the tax rate was 17.3%
    compared to 11.2% in the prior year period. The increase in the tax
    rate was primarily due to nonrecurring benefits in the prior year and
    timing items in the current period.
  • The Company returned $336 million to shareholders in the second
    quarter, consisting of $250 million in share repurchases and $86
    million of dividends, and returned $423 million year-to-date.
    Year-to-date cash flow from operating activities was $299 million,
    including the impact of a $60 million first quarter payment for the
    previously announced NYDFS settlement and approximately $27 million of
    outflows for prior year WU Way expenses.

Adjustment Items

Adjusted metrics for the 2018 second quarter exclude the impact of a
$6.2 million tax benefit related to changes in estimates for the
provisional accounting for United States tax reform legislation enacted
in December 2017 (the "Tax Act").

Adjusted metrics for the 2017 second quarter exclude $35 million of WU
Way related expenses and the associated tax benefits and a $49 million
accrual related to the NYDFS settlement.

2018 Outlook

The Company affirmed its financial outlook for 2018, which was
previously reported on May 1, with the following adjustments: the GAAP
revenue outlook was adjusted to reflect changes in exchange rates and
the GAAP earnings per share outlook was adjusted to reflect the second
quarter benefit related to the 2017 Tax Act.

Revenue

  • Low single-digit GAAP revenue increase (previously low to mid-single
    digit increase) and low to mid-single digit increase in constant
    currency revenue

Operating Profit Margin

  • Operating margin of approximately 20%

Tax Rate

  • GAAP effective tax rate of approximately 13% to 14% (previously
    approximately 14%) and adjusted tax rate of approximately 14% to 15%
    (previously approximately 15%)

Earnings per Share

  • GAAP EPS in a range of $1.82 to $1.92 (previously $1.81 to $1.91) and
    adjusted EPS in a range of $1.80 to $1.90

Cash Flow

  • Cash flow from operating activities of approximately $800 million,
    which includes approximately $200 million of outflows for the
    combination of anticipated final tax payments related to the agreement
    with the U.S. Internal Revenue Service announced in 2011, the NYDFS
    settlement payment, and WU Way payments related to 2017 expenses

Additional Statistics

Additional key statistics for the quarter and historical trends can be
found in the supplemental tables included with this press release.

Expenses related to the NYDFS settlement and the WU Way business
transformation are not included in operating segment results, as they
are excluded from the measurement of segment operating income provided
to the chief operating decision maker for purposes of assessing segment
performance and decision making with respect to resource allocation.
Expenses associated with the WU Way business transformation initiative
were effectively complete as of December 31, 2017.

All amounts included in the supplemental tables to this press release
are rounded to the nearest tenth of a million, except as otherwise
noted. As a result, the percentage changes and margins disclosed herein
may not recalculate precisely using the rounded amounts provided.

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. Constant currency results assume
foreign revenues 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.

These non-GAAP financial measures include consolidated revenue change
constant currency adjusted; Consumer-to-Consumer segment revenue change
constant currency adjusted; Consumer-to-Consumer segment
westernunion.com revenue change constant currency adjusted; Business
Solutions segment revenue change constant currency adjusted; Other
revenue change constant currency adjusted; consolidated operating
income, excluding the impact from NYDFS Settlement, WU Way business
transformation expenses; consolidated operating margin, excluding NYDFS
Settlement and WU Way business transformation expenses; effective tax
rate excluding NYDFS Settlement, WU Way business transformation expenses
and Tax Act; earnings per share, excluding NYDFS Settlement, WU Way
business transformation expenses and Tax Act; effective tax rate
outlook, excluding Tax Act; earnings per share outlook, excluding Tax
Act; and additional measures found in the supplemental tables included
with this press release. Although the expenses related to the WU Way
business transformation are specific to that initiative, the types of
expenses related to the WU Way business transformation are similar to
expenses that the Company has previously incurred and can reasonably be
expected to incur in the future.

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 http://ir.westernunion.com.

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 via
telephone, dial 1 (888) 317-6003 (U.S.) or +1 (412) 317-6061 (outside
the U.S.) ten minutes prior to the start of the call. The pass code is
1459772.

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 webcast replay will be available at http://ir.westernunion.com.

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 "may," "will,"
"should," "would," "could," and "might" are intended to identify such
forward-looking statements. Readers of this press release of 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, 2017. 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: changes in general economic conditions and economic conditions
in the regions and industries in which we operate, including global
economic and trade downturns, or significantly slower growth or declines
in the money transfer, payment service, and other markets in which we
operate, including downturns or declines related to interruptions in
migration patterns, or non-performance by our banks, lenders, insurers,
or other financial services providers; failure to compete effectively in
the money transfer and payment service industry, including among other
things, with respect to price, with global and niche or corridor money
transfer providers, banks and other money transfer and payment service
providers, including electronic, mobile and Internet-based services,
card associations, and card-based payment providers, and with digital
currencies and related protocols, and other innovations in technology
and business models; political conditions and related actions in the
United States and abroad which may adversely affect our business and
economic conditions as a whole, including interruptions of United States
or other government relations with countries in which we have or are
implementing significant business relationships with agents or clients;
deterioration in customer confidence in our business, or in money
transfer and payment service providers generally; our ability to adopt
new technology and develop and gain market acceptance of new and
enhanced services in response to changing industry and consumer needs or
trends; 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;
any material breach of security, including cybersecurity, or safeguards
of or interruptions in any of our systems or those of our vendors or
other third parties; cessation of or defects in various services
provided to us by third-party vendors; mergers, acquisitions and
integration of acquired businesses and technologies into our Company,
and the failure to realize anticipated financial benefits from these
acquisitions, and events requiring us to write down our goodwill;
failure to manage credit and fraud risks presented by our agents,
clients and consumers; failure to maintain our agent network and
business relationships under terms consistent with or more advantageous
to us than those currently in place, including due to increased costs or
loss of business as a result of increased compliance requirements or
difficulty for us, our agents or their subagents in establishing or
maintaining relationships with banks needed to conduct our services;
decisions to change our business mix; changes in tax laws, or their
interpretation, including with respect to United States tax reform
legislation enacted in December 2017 (the "Tax Act") and potential
related state income tax impacts, and unfavorable resolution of tax
contingencies; adverse rating actions by credit rating agencies; our
ability to realize the anticipated benefits from business
transformation, productivity and cost-savings, and other related
initiatives, which may include decisions to downsize or to transition
operating activities from one location to another, and to minimize any
disruptions in our workforce that may result from those initiatives; our
ability to protect our brands and our other intellectual property rights
and to defend ourselves against potential intellectual property
infringement claims; our ability to attract and retain qualified key
employees and to manage our workforce successfully; material changes in
the market value or liquidity of securities that we hold; restrictions
imposed by our debt obligations; (ii) events related to our regulatory
and litigation environment, such as: liabilities or loss of business
resulting from a failure by us, our agents or their subagents to comply
with laws and regulations and regulatory or judicial interpretations
thereof, including laws and regulations designed to protect consumers,
or detect and prevent money laundering, terrorist financing, fraud and
other illicit activity; increased costs or loss of business due to
regulatory initiatives and changes in laws, regulations and industry
practices and standards, including changes in interpretations in the
United States, the European Union and globally, affecting us, our agents
or their subagents, or the banks with which we or our agents maintain
bank accounts needed to provide our services, including related to
anti-money laundering regulations, anti-fraud measures, our licensing
arrangements, customer due diligence, agent and subagent due diligence,
registration and monitoring requirements, consumer protection
requirements, remittances, and immigration; liabilities, increased costs
or loss of business and unanticipated developments resulting from
governmental investigations and consent agreements with or enforcement
actions by regulators, including those associated with the settlement
agreements with the United States Department of Justice, certain United
States Attorney's Offices, the United States Federal Trade Commission,
the Financial Crimes Enforcement Network of the United States Department
of Treasury, and various state attorneys general (the "Joint Settlement
Agreements"), and those associated with the January 4, 2018 consent
order which resolved a matter with the New York State Department of
Financial Services (the "NYDFS Consent Order"); liabilities resulting
from litigation, including class-action lawsuits and similar matters,
and regulatory actions, including costs, expenses, settlements and
judgments; failure to comply with regulations and evolving industry
standards regarding consumer privacy and data use and security,
including with respect to the General Data Protection Regulation
("GDPR") approved by the European Union ("EU"); the ongoing impact on
our business from the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the "Dodd-Frank Act"), as well as regulations issued
pursuant to it and the actions of the Consumer Financial Protection
Bureau and similar legislation and regulations enacted by other
governmental authorities in the United States and abroad related to
consumer protection; effects of unclaimed property laws or their
interpretation or the enforcement thereof; failure to maintain
sufficient amounts or types of regulatory capital or other restrictions
on the use of our working capital to meet the changing requirements of
our regulators worldwide; changes in accounting standards, rules and
interpretations or industry standards affecting our business; and (iii)
other events, such as: adverse tax 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 global leader in cross-border,
cross-currency money movement. Our omnichannel platform connects the
digital and physical worlds and makes it possible for consumers and
businesses to send and receive money and make payments with speed, ease,
and reliability. As of June 30, 2018, our network included over 550,000
retail agent locations offering Western Union, Vigo or Orlandi Valuta
branded services in more than 200 countries and territories, with the
capability to send money to billions of accounts. Additionally, westernunion.com,
our fastest growing channel in 2017, is available in 45 countries and
territories to move money around the world. In 2017, we moved over $300
billion in principal in nearly 130 currencies and processed 32
transactions every second across all our services. With our global
reach, Western Union moves money for better, connecting family, friends
and businesses to enable financial inclusion and support economic
growth. For more information, visit www.westernunion.com.

WU-G

 
 
THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
                               
Notes* 2Q17 3Q17 4Q17 FY2017 1Q18 2Q18 YTD 2Q18
 
Consolidated Metrics
Consolidated revenues (GAAP) - YoY % change 0 % 2 % 5 % 2 % 7 % 2 % 4 %
Consolidated revenues (constant currency) - YoY % change a 2 % 3 % 4 % 3 % 5 % 3 % 4 %
Consolidated operating income/(loss) (GAAP) - YoY % change (18 )% (2 )% 19 % (2 )% 10 % 32 % 20 %
Consolidated operating income (constant currency adjusted, excluding
Goodwill impairment, NYDFS Consent Order, Joint Settlement
Agreements and WU Way business transformation expenses) - YoY %
change
b 10 % 0 % 0 % 3 % 5 % (4 )% 0 %
Consolidated operating margin (GAAP) jj 15.6 % 19.4 % (17.5 )% 8.6 % 19.1 % 20.1 % 19.6 %
Consolidated operating margin (excluding Goodwill impairment, NYDFS
Consent Order, Joint Settlement Agreements and WU Way business
transformation expenses)
c 21.7 % 20.7 % 18.0 % 20.0 % 19.1 % 20.1 % 19.6 %
 
Consumer-to-Consumer (C2C) Segment
Revenues (GAAP) - YoY % change (1 )% 1 % 5 % 1 % 7 % 4 % 6 %
Revenues (constant currency) - YoY % change g 1 % 1 % 4 % 2 % 5 % 3 % 4 %
Operating margin jj 24.9 % 23.5 % 21.5 % 23.1 % 22.2 % 23.6 % 22.9 %
 
Transactions (in millions) 69.9 69.2 71.4 275.8 67.8 73.1 140.9
Transactions - YoY % change 3 % 2 % 3 % 3 % 4 % 5 % 4 %
 
Total principal ($ - billions) $ 20.4 $ 21.0 $ 21.3 $ 81.8 $ 20.8 $ 22.4 $ 43.2
Principal per transaction ($ - dollars) $ 293 $ 302 $ 300 $ 297 $ 307 $ 306 $ 307
Principal per transaction - YoY % change (3 )% 1 % 3 % 0 % 5 % 5 % 5 %
Principal per transaction (constant currency) - YoY % change h (2 )% 0 % 0 % (1 )% 2 % 3 % 3 %
 
Cross-border principal ($ - billions) $ 18.7 $ 19.0 $ 19.5 $ 74.5 $ 18.9 $ 20.4 $ 39.3
Cross-border principal - YoY % change 1 % 4 % 6 % 3 % 9 % 9 % 9 %
Cross-border principal (constant currency) - YoY % change i 2 % 2 % 4 % 2 % 5 % 8 % 7 %
 
NA region revenues (GAAP) - YoY % change aa, bb 3 % 1 % 3 % 2 % 4 % 3 % 4 %
NA region revenues (constant currency) - YoY % change j, aa, bb 3 % 1 % 3 % 3 % 4 % 3 % 3 %
NA region transactions - YoY % change aa, bb 4 % 2 % 1 % 3 % 1 % 2 % 2 %
 
EU & CIS region revenues (GAAP) - YoY % change aa, cc (2 )% 2 % 6 % 1 % 14 % 9 % 11 %
EU & CIS region revenues (constant currency) - YoY % change k, aa, cc 2 % 1 % 2 % 2 % 5 % 4 % 4 %
EU & CIS region transactions - YoY % change aa, cc 7 % 7 % 7 % 7 % 8 % 9 % 9 %
 
MEASA region revenues (GAAP) - YoY % change aa, dd (12 )% (8 )% 1 % (8 )% 0 % (4 )% (2 )%
MEASA region revenues (constant currency) - YoY % change l, aa, dd (11 )% (8 )% 0 % (7 )% (1 )% (5 )% (3 )%
MEASA region transactions - YoY % change aa, dd (10 )% (11 )% (2 )% (10 )% (2 )% (1 )% (1 )%
 
LACA region revenues (GAAP) - YoY % change aa, ee 21 % 19 % 21 % 22 % 20 % 11 % 15 %
LACA region revenues (constant currency) - YoY % change m, aa, ee 22 % 22 % 23 % 23 % 25 % 20 % 23 %
LACA region transactions - YoY % change aa, ee 16 % 17 % 17 % 17 % 17 % 16 % 17 %
 
APAC region revenues (GAAP) - YoY % change aa, ff (4 )% (1 )% 0 % (2 )% 2 % (5 )% (1 )%
APAC region revenues (constant currency) - YoY % change n, aa, ff (2 )% 1 % 0 % 0 % 0 % (5 )%

(3

)%

APAC region transactions - YoY % change aa, ff (1 )% 0 % 3 % 0 % 1 % 0 % 1 %
 
International revenues - YoY % change gg (3 )% 1 % 6 % 0 % 9 % 4 % 7 %
International transactions - YoY % change gg 2 % 3 % 6 % 3 % 6 % 7 % 6 %
International revenues - % of C2C segment revenues gg 66 % 67 % 67 % 66 % 67 % 66 % 67 %
 
United States originated revenues - YoY % change hh 3 % 1 % 3 % 3 % 4 % 3 % 3 %
United States originated transactions - YoY % change hh 4 % 1 % 0 % 2 % 1 % 2 % 2 %
United States originated revenues - % of C2C segment revenues hh 34 % 33 % 33 % 34 % 33 % 34 % 33 %
 
westernunion.com revenues (GAAP) - YoY % change ii 21 % 23 % 22 % 23 % 23 % 22 % 23 %
westernunion.com revenues (constant currency) - YoY % change o, ii 23 % 23 % 22 % 24 % 20 % 21 % 21 %
westernunion.com transactions - YoY % change ii 25 % 24 % 22 % 24 % 24 % 26 % 25 %
 
% of Consumer-to-Consumer Revenue
Regional Revenues:
NA region revenues aa, bb 37 % 36 % 37 % 37 % 36 % 37 % 37 %
EU & CIS region revenues aa, cc 31 % 31 % 31 % 31 % 32 % 32 % 32 %
MEASA region revenues aa, dd 16 % 16 % 16 % 16 % 16 % 15 % 15 %
LACA region revenues aa, ee 8 % 9 % 9 % 8 % 9 % 9 % 9 %
APAC region revenues aa, ff 8 % 8 % 7 % 8 % 7 % 7 % 7 %
westernunion.com revenues ii 9 % 10 % 10 % 10 % 11 % 11 % 11 %
 
Business Solutions (B2B) Segment
Revenues (GAAP) - YoY % change (4 )% 2 % (4 )% (3 )% 3 % (4 )% 0 %
Revenues (constant currency) - YoY % change p (1 )% 1 % (8 )% (3 )% (2 )% (6 )% (4 )%
Operating margin 5.5 % 9.1 % (3.2 )% 3.6 % 2.9 % 1.2 % 2.1 %
 
Other (primarily bill payments businesses in United States and
Argentina)
Revenues (GAAP) - YoY % change 9 % 9 % 11 % 9 % 4 % (2 )% 1 %
Revenues (constant currency) - YoY % change r 12 % 13 % 14 % 12 % 10 % 9 % 10 %
Operating margin 12.1 % 10.5 % 7.9 % 10.7 % 10.1 % 8.5 % 9.3 %
 
% of Total Company Revenue
Consumer-to-Consumer segment revenues 79 % 79 % 80 % 79 % 79 % 80 % 79 %
Business Solutions segment revenues 7 % 7 % 6 % 7 % 7 % 7 % 7 %
Other revenues 14 % 14 % 14 % 14 % 14 % 13 % 14 %
 
* See the "Notes to Key Statistics" section of the press release for
the applicable Note references and the reconciliation of non-GAAP
financial measures.
 
 
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
 
   

Three Months Ended
June 30,

   

Six Months Ended
June 30,

2018   2017   % Change   2018   2017   % Change  
Revenues $ 1,411.1 $ 1,378.9

2

% $ 2,800.5 $ 2,681.3

4

%
Expenses:
Cost of services (a) 829.2 842.3 (2 )% 1,654.6 1,642.2 1 %
Selling, general and administrative   298.3     321.2   (7 )%   597.4     583.6   2 %
Total expenses (b)   1,127.5     1,163.5   (3 )%   2,252.0     2,225.8   1 %
Operating income 283.6 215.4 32 % 548.5 455.5 20 %
Other income/(expense):
Interest income 1.3 1.4 0 % 2.0 2.5 (19 )%
Interest expense (37.5 ) (35.7 ) 5 % (73.0 ) (67.0 ) 9 %
Other income, net (a)   8.1     3.3  

(c

)

  12.5     6.5   91 %
Total other expense, net   (28.1 )   (31.0 ) (9 )%   (58.5 )   (58.0 ) 1 %
Income before income taxes 255.5 184.4 39 % 490.0 397.5 23 %
Provision for income taxes   37.9     17.9  

(c

)

  58.8     69.3   (15 )%
Net income $ 217.6   $ 166.5   31 % $ 431.2   $ 328.2   31 %
Earnings per share:
Basic $ 0.48 $ 0.35 37 % $ 0.94 $ 0.69 36 %
Diluted $ 0.47 $ 0.35 34 % $ 0.93 $ 0.69 35 %
Weighted-average shares outstanding:
Basic 457.2 469.4 458.8 474.6
Diluted 459.6 472.0 461.6 477.7
Cash dividends declared per common share $ 0.19 $ 0.175 9 % $ 0.38 $ 0.35 9 %

________

(a)   On January 1, 2018, the Company adopted an accounting pronouncement
that requires the non-service costs of the defined benefit pension
plan to be presented outside a subtotal of income from operations,
with adoption retrospective for periods previously presented. The
adoption of this standard resulted in reductions to "Cost of
services" and "Other income, net" of $0.6 million and $1.2 million
for the three and six months ended June 30, 2017, respectively, from
the amounts previously reported.
 
(b) For the three and six months ended June 30, 2017, total WU Way
business transformation expenses were $35.0 million and $49.3
million, respectively, including $19.5 million and $23.7 million in
cost of services and $15.5 million and $25.6 million in selling,
general and administrative, respectively.
 
(c) Calculation not meaningful.
 
 
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
           
June 30, December 31,
2018 2017
Assets
Cash and cash equivalents $ 938.3 $ 838.2
Settlement assets 4,011.8 4,188.9
Property and equipment, net of accumulated depreciation of
$669.3 and $635.7, respectively 241.8 214.2
Goodwill 2,725.0 2,727.9
Other intangible assets, net of accumulated amortization of
$1,011.8 and $1,042.7, respectively 546.5 586.3
Other assets   652.2     675.9  
Total assets $ 9,115.6   $ 9,231.4  
Liabilities and Stockholders' Deficit
Liabilities:
Accounts payable and accrued liabilities $ 587.2 $ 718.5
Settlement obligations 4,011.8 4,188.9
Income taxes payable 1,164.4 1,252.0
Deferred tax liability, net 166.2 173.0
Borrowings 3,331.8 3,033.6
Other liabilities   305.5     356.8  
Total liabilities 9,566.9 9,722.8
 
Stockholders' deficit:
Preferred stock, $1.00 par value; 10 shares authorized;
no shares issued
Common stock, $0.01 par value; 2,000 shares authorized;
448.7 shares and 459.0 shares issued and outstanding as of
June 30, 2018 and December 31, 2017, respectively 4.5 4.6
Capital surplus 732.1 697.8
Accumulated deficit (939.9 ) (965.9 )
Accumulated other comprehensive loss   (248.0 )   (227.9 )
Total stockholders' deficit   (451.3 )   (491.4 )
Total liabilities and stockholders' deficit $ 9,115.6   $ 9,231.4  
 
 
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
 
       

Six Months Ended
June 30,

2018     2017
Cash Flows From Operating Activities
Net income $ 431.2 $ 328.2
Adjustments to reconcile net income to net cash provided by/(used
in) operating activities:
Depreciation 38.7 37.7
Amortization 93.7 93.9
Other non-cash items, net (0.7 ) 104.2
Increase/(decrease) in cash resulting from changes in:
Other assets (42.7 ) (25.8 )
Accounts payable and accrued liabilities (140.4 ) (606.9 )
Income taxes payable (84.4 ) (3.7 )
Other liabilities   3.3     48.4  
Net cash provided by/(used in) operating activities 298.7 (24.0 )
Cash Flows From Investing Activities
Capitalization of contract costs (19.2 ) (20.5 )
Capitalization of purchased and developed software (13.0 ) (22.6 )
Purchases of property and equipment (58.3 ) (32.2 )
Purchases of non-settlement related investments and other (2.5 ) (25.7 )
Proceeds from maturity of non-settlement related investments and
other
12.9 21.2
Purchases of held-to-maturity non-settlement related investments (1.4 ) (36.8 )
Proceeds from held-to-maturity non-settlement related investments   12.8     25.3  
Net cash used in investing activities (68.7 ) (91.3 )
Cash Flows From Financing Activities
Cash dividends paid (173.3 ) (164.8 )
Common stock repurchased (252.6 ) (386.6 )
Net proceeds from commercial paper - 445.0
Net proceeds from issuance of borrowings 297.8 396.2
Proceeds from exercise of options 8.9 7.2
Other financing activities   (5.2 )   -  
Net cash (used in)/provided by financing activities   (124.4 )   297.0  
Net change in cash, cash equivalents and restricted cash 105.6 181.7
Cash, cash equivalents and restricted cash at beginning of period   844.4     877.5  
Cash, cash equivalents and restricted cash at end of period $ 950.0   $ 1,059.2  
 
 
THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
 
   

Three Months Ended
June 30,

   

Six Months Ended
June 30,

2018   2017   % Change   2018   2017   % Change  
Revenues:
Consumer-to-Consumer $ 1,127.5 $ 1,087.3 4 % $ 2,218.5 $ 2,102.3 6 %
Business Solutions 93.1 96.6 (4 )% 189.8 190.2 0 %
Other (a)   190.5     195.0   (2 )%   392.2     388.8   1 %
Total consolidated revenues $ 1,411.1   $ 1,378.9   2 % $ 2,800.5   $ 2,681.3   4 %
Operating income (b):
Consumer-to-Consumer $ 266.2 $ 270.4 (2 )% $ 507.9 $ 498.4 2 %
Business Solutions 1.1 5.3 (80 )% 3.9 7.7 (49 )%
Other (a)   16.3     23.7   (32 )%   36.7     47.7   (23 )%
Total segment operating income (b) 283.6 299.4 (5 )% 548.5 553.8 (1 )%
NYDFS Consent Order (c) (49.0 )

(d

)

(49.0 )

(d

)

Business transformation expenses (c)       (35.0 )

(d

)

      (49.3 )

(d

)

Total consolidated operating income (b) $ 283.6   $ 215.4   32 % $ 548.5   $ 455.5   20 %
Operating income margin (b):
Consumer-to-Consumer 23.6 % 24.9 % (1.3 )% 22.9 % 23.7 % (0.8 )%
Business Solutions 1.2 % 5.5 % (4.3 )% 2.1 % 4.1 % (2.0 )%
Other (a) 8.5 % 12.1 % (3.6 )% 9.3 % 12.3 % (3.0 )%
Total consolidated operating income margin (b) 20.1 % 15.6 % 4.5 % 19.6 % 17.0 % 2.6 %

________

(a)   Consists primarily of the Company's bill payments businesses in the
United States and Argentina.
 
(b) On January 1, 2018, the Company adopted an accounting pronouncement
that requires the non-service costs of a defined benefit pension
plan to be presented outside a subtotal of income from operations,
with adoption retrospective for periods previously presented. The
adoption of this standard resulted in an increase of $0.6 million
and $1.2 million to operating income for the three and six months
ended June 30, 2017, respectively, from the amounts previously
reported, and this increase was allocated among the segments in a
method consistent with the original allocation of this expense.
 
(c) Expenses related to the NYDFS Consent Order and the WU Way business
transformation are excluded from the measurement of segment
operating income provided to the chief operating decision maker for
purposes of assessing segment performance and decision making with
respect to resource allocation.
 
(d) Calculation not meaningful.
 
 

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

(Unaudited)

Western Union's management believes the non-GAAP financial measures
presented provide meaningful supplemental information regarding our
operating results to assist management, investors, analysts, and others
in understanding our financial results and to better analyze trends in
our underlying business, because they provide consistency and
comparability to prior periods.

A non-GAAP financial measure should not be considered in isolation or as
a substitute for the most comparable GAAP financial measure. A non-GAAP
financial measure reflects an additional way of viewing aspects of our
operations that, when viewed with our GAAP results and the
reconciliation to the corresponding GAAP financial measure, provide a
more complete understanding of our business. Users of the financial
statements are encouraged to review our financial statements and
publicly-filed reports in their entirety and not to rely on any single
financial measure. A reconciliation of non-GAAP financial measures to
the most directly comparable GAAP financial measures is included below.
All adjusted year-over-year changes were calculated using prior year
amounts. Although the expenses related to the WU Way are specific to
that initiative, the types of expenses related to the WU Way initiative
are similar to expenses that the Company has previously incurred and can
reasonably be expected to incur in the future.

      2Q17       3Q17       4Q17       FY2017       1Q18       2Q18       YTD 2Q18  
Consolidated Metrics
(a) Revenues, as reported (GAAP) $ 1,378.9 $ 1,404.7 $ 1,438.3 $ 5,524.3 $ 1,389.4 $ 1,411.1 $ 2,800.5
Foreign currency translation impact (s)   29.0     7.7     (5.5 )   61.3     (18.9 )   9.1     (9.8 )
Revenues, constant currency adjusted $ 1,407.9   $ 1,412.4   $ 1,432.8   $ 5,585.6   $ 1,370.5   $ 1,420.2   $ 2,790.7  
Prior year revenues, as reported (GAAP) $ 1,375.7 $ 1,377.8 $ 1,371.7 $ 5,422.9 $ 1,302.4 $ 1,378.9 $ 2,681.3
Revenue change, as reported (GAAP) 0 % 2 % 5 % 2 % 7 % 2 % 4 %
Revenue change, constant currency adjusted 2 % 3 % 4 % 3 % 5 % 3 % 4 %
 
(b) Operating income/(loss), as reported (GAAP) (jj) $ 215.4 $ 272.2 $ (251.9 ) $ 475.8 $ 264.9 $ 283.6 $ 548.5
Foreign currency translation impact (s) 6.8 8.9 13.3 44.0 3.4 2.9 6.3
Goodwill impairment (t) N/A N/A 464.0 464.0 N/A N/A N/A
NYDFS Consent Order (u) 49.0 11.0 60.0 N/A N/A N/A
Joint Settlement Agreements (v) 8.0 8.0 N/A N/A N/A
WU Way business transformation expenses (w)   35.0     9.9     35.2     94.4     N/A     N/A     N/A  
Operating income, constant currency adjusted, excluding Goodwill
impairment, NYDFS Consent Order, Joint Settlement Agreements and WU
Way business transformation expenses
$ 306.2   $ 299.0   $ 271.6   $ 1,146.2   $ 268.3   $ 286.5   $ 554.8  
Prior year operating income, excluding NYDFS Consent Order, Joint
Settlement Agreements and WU Way business transformation expenses
$ 278.2 $ 299.2 $ 271.5 $ 1,108.3 $ 254.4 $ 299.4 $ 553.8
Operating income change, as reported (GAAP) (18 )% (2 )% 19 % (2 )% 10 % 32 % 20 %
Operating income change, constant currency adjusted, excluding
Goodwill impairment, NYDFS Consent Order, Joint Settlement
Agreements and WU Way business transformation expenses
10 % 0 % 0 % 3 % 5 % (4 )% 0 %
 
(c) Operating income/(loss), as reported (GAAP) (jj) $ 215.4 $ 272.2 $ (251.9 ) $ 475.8 $ 264.9 $ 283.6 $ 548.5
Goodwill impairment (t) N/A N/A 464.0 464.0 N/A N/A N/A
NYDFS Consent Order (u) 49.0 11.0 60.0 N/A N/A N/A
Joint Settlement Agreements (v) 8.0 8.0 N/A N/A N/A
WU Way business transformation expenses (w)   35.0     9.9     35.2     94.4     N/A     N/A     N/A  
Operating income, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements and WU Way business
transformation expenses
$ 299.4   $ 290.1   $ 258.3   $ 1,102.2   $ 264.9   $ 283.6   $ 548.5  
Operating margin, as reported (GAAP) (jj) 15.6 % 19.4 % (17.5 )% 8.6 % 19.1 % 20.1 % 19.6 %
Operating margin, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements and WU Way business
transformation expenses
21.7 % 20.7 % 18.0 % 20.0 % 19.1 % 20.1 % 19.6 %
 
(d) Operating income/(loss), as reported (GAAP) (jj) $ 215.4 $ 272.2 $ (251.9 ) $ 475.8 $ 264.9 $ 283.6 $ 548.5
Reversal of depreciation and amortization   65.2     65.5     65.8     262.9     66.7     65.7     132.4  
EBITDA (y) $ 280.6   $ 337.7   $ (186.1 ) $ 738.7   $ 331.6   $ 349.3   $ 680.9  
Goodwill impairment (t) N/A N/A 464.0 464.0 N/A N/A N/A
NYDFS Consent Order (u) 49.0 11.0 60.0 N/A N/A N/A
Joint Settlement Agreements (v) 8.0 8.0 N/A N/A N/A
WU Way business transformation expenses (w)   35.0     9.9     35.2     94.4     N/A     N/A     N/A  
Adjusted EBITDA, excluding Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements and WU Way business transformation
expenses
$ 364.6   $ 355.6   $ 324.1   $ 1,365.1   $ 331.6   $ 349.3   $ 680.9  
Operating margin, as reported (GAAP) (jj) 15.6 % 19.4 % (17.5 )% 8.6 % 19.1 % 20.1 % 19.6 %
EBITDA margin 20.4 % 24.0 % (13.0 )% 13.4 % 23.9 % 24.7 % 24.3 %
Adjusted EBITDA margin, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements and WU Way business
transformation expenses
26.4 % 25.3 % 22.5 % 24.7 % 23.9 % 24.7 % 24.3 %
 

(e)  

Net income/(loss), as reported (GAAP) $ 166.5 $ 235.6 $ (1,120.9 ) $ (557.1 ) $ 213.6 $ 217.6 $ 431.2
Goodwill impairment (t) N/A N/A 464.0 464.0 N/A N/A N/A
NYDFS Consent Order (u) 49.0 11.0 60.0 N/A N/A N/A
Joint Settlement Agreements (v) 8.0 8.0 N/A N/A N/A
WU Way business transformation expenses (w) 35.0 9.9 35.2 94.4 N/A N/A N/A
Income tax benefit from Goodwill impairment (t) N/A N/A (17.2 ) (17.2 ) N/A N/A N/A
Income tax benefit from Joint Settlement Agreements (v) (2.9 ) (2.9 ) N/A N/A N/A
Income tax benefit from WU Way business transformation expenses (w) (12.3 ) (2.7 ) (11.1 ) (31.1 ) N/A N/A N/A
Income tax expense/(benefit) from Tax Act (x)   N/A     N/A     828.3     828.3     (6.0 )   (6.2 )   (12.2 )
Goodwill impairment, NYDFS Consent Order, Joint Settlement
Agreements and WU Way business transformation expenses, net of
income tax expense/(benefit) and Tax Act
  71.7     12.3     1,310.2     1,403.5     (6.0 )   (6.2 )   (12.2 )
Net income, excluding Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements, WU Way business transformation expenses
and Tax Act
$ 238.2   $ 247.9   $ 189.3   $ 846.4   $ 207.6   $ 211.4   $ 419.0  
Diluted earnings/(loss) per share ("EPS"), as reported (GAAP) ($ -
dollars)
$ 0.35 $ 0.51 $ (2.44 ) $ (1.19 ) $ 0.46 $ 0.47 $ 0.93
EPS impact as a result of Goodwill impairment ($ - dollars) (t) N/A N/A $ 1.01 $ 1.00 N/A N/A N/A
EPS impact as a result of NYDFS Consent Order ($ - dollars) (u) $ 0.10 $ $ 0.02 $ 0.13 N/A N/A N/A
EPS impact as a result of Joint Settlement Agreements ($ - dollars)
(v)
$ $ 0.02 $ $ 0.02 N/A N/A N/A
EPS impact as a result of WU Way business transformation expenses ($
- dollars) (w)
$ 0.07 $ 0.02 $ 0.08 $ 0.20 N/A N/A N/A
EPS impact from income tax benefit from Goodwill impairment ($ -
dollars) (t)
N/A N/A

$

(0.04 ) $ (0.04 ) N/A N/A N/A
EPS impact from income tax benefit from Joint Settlement Agreements
($ - dollars) (v)
$ $ (0.01 ) $ $ (0.01 ) N/A N/A N/A
EPS impact from income tax benefit from WU Way business
transformation expenses ($ - dollars) (w)
$ (0.02 ) $ (0.01 ) $ (0.02 ) $ (0.07 ) N/A N/A N/A
EPS impact as a result of Tax Act ($ - dollars) (x)   N/A     N/A  

$

1.80

  $ 1.76   $ (0.01 ) $ (0.01 ) $ (0.02 )
EPS impact as a result of Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements and WU Way business transformation
expenses, net of income tax expense/(benefit) and Tax Act ($ -
dollars)
$ 0.15   $ 0.02   $ 2.85   $ 2.99   $ (0.01 ) $ (0.01 ) $ (0.02 )
Diluted EPS, excluding Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements, WU Way business transformation expenses
and Tax Act ($ - dollars)
$ 0.50   $ 0.53   $ 0.41   $ 1.80   $ 0.45   $ 0.46   $ 0.91  
Diluted weighted-average shares outstanding (z) 472.0 465.4 462.9 470.9 463.6 459.6 461.6
 
(f) Effective tax rate, as reported (GAAP) 10 % 2 % (288 )% 260 % 9 % 15 % 12 %
Impact from Goodwill impairment (t) N/A N/A 773 % (146 )% N/A N/A N/A
Impact from NYDFS Consent Order (u) (2 )% 0 % (29 )% (8 )% N/A N/A N/A
Impact from Joint Settlement Agreements (v) 0 % 1 % 0 % (1 )% N/A N/A N/A
Impact from WU Way business transformation expenses (w) 3 % 1 % (67 )% (7 )% N/A N/A N/A
Impact from Tax Act (x)   N/A     N/A     (375 )%   (85 )%   2 %   2 %   2 %
Effective tax rate, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements, WU Way business transformation
expenses and Tax Act
  11 %   4 %   14 %   13 %   11 %   17 %   14 %
 
Consumer-to-Consumer Segment
(g) Revenues, as reported (GAAP) $ 1,087.3 $ 1,107.7 $ 1,144.5 $ 4,354.5 $ 1,091.0 $ 1,127.5 $ 2,218.5
Foreign currency translation impact (s)   20.8     1.8     (9.0 )   37.7     (26.4 )   (9.6 )   (36.0 )
Revenues, constant currency adjusted $ 1,108.1   $ 1,109.5   $ 1,135.5   $ 4,392.2   $ 1,064.6   $ 1,117.9   $ 2,182.5  
Prior year revenues, as reported (GAAP) $ 1,095.8 $ 1,098.9 $ 1,092.5 $ 4,304.6 $ 1,015.0 $ 1,087.3 $ 2,102.3
Revenue change, as reported (GAAP) (1 )% 1 % 5 % 1 % 7 % 4 % 6 %
Revenue change, constant currency adjusted 1 % 1 % 4 % 2 % 5 % 3 % 4 %
 
(h) Principal per transaction, as reported ($ - dollars) $ 293 $ 302 $ 300 $ 297 $ 307 $ 306 $ 307
Foreign currency translation impact ($ - dollars) (s)   3     (2 )   (6 )   (1 )   (10 )   (4 )   (7 )
Principal per transaction, constant currency adjusted ($ - dollars) $ 296   $ 300   $ 294   $ 296   $ 297   $ 302   $ 300  
Prior year principal per transaction, as reported ($ - dollars) $ 301 $ 300 $ 292 $ 298 $ 292 $ 293 $ 292
Principal per transaction change, as reported (3 )% 1 % 3 % 0 % 5 % 5 % 5 %
Principal per transaction change, constant currency adjusted (2 )% 0 % 0 % (1 )% 2 % 3 % 3 %
 
(i) Cross-border principal, as reported ($ - billions) $ 18.7 $ 19.0 $ 19.5 $ 74.5 $ 18.9 $ 20.4 $ 39.3
Foreign currency translation impact ($ - billions) (s)   0.2     (0.2 )   (0.4 )   (0.2 )   (0.7 )   (0.2 )   (0.9 )
Cross-border principal, constant currency adjusted ($ - billions) $ 18.9   $ 18.8   $ 19.1   $ 74.3   $ 18.2   $ 20.2   $ 38.4  
Prior year cross-border principal, as reported ($ - billions) $ 18.5 $ 18.4 $ 18.3 $ 72.5 $ 17.3 $ 18.7 $ 36.0
Cross-border principal change, as reported 1 % 4 % 6 % 3 % 9 % 9 % 9 %
Cross-border principal change, constant currency adjusted 2 % 2 % 4 % 2 % 5 % 8 % 7 %
 
(j) NA region revenue change, as reported (GAAP) 3 % 1 % 3 % 2 % 4 % 3 % 4 %
NA region foreign currency translation impact (s)   0 %   0 %   0 %   1 %   0 %   0 %   (1 )%
NA region revenue change, constant currency adjusted   3 %   1 %   3 %   3 %   4 %   3 %   3 %
 
(k) EU & CIS region revenue change, as reported (GAAP) (2 )% 2 % 6 % 1 % 14 % 9 % 11 %
EU & CIS region foreign currency translation impact (s)   4 %   (1 )%   (4 )%   1 %   (9 )%   (5 )%   (7 )%
EU & CIS region revenue change, constant currency adjusted   2 %   1 %   2 %   2 %   5 %   4 %   4 %
 
(l) MEASA region revenue change, as reported (GAAP) (12 )% (8 )% 1 % (8 )% 0 % (4 )% (2 )%
MEASA region foreign currency translation impact (s)   1 %   0 %   (1 )%   1 %   (1 )%   (1 )%   (1 )%
MEASA region revenue change, constant currency adjusted   (11 )%   (8 )%   0 %   (7 )%   (1 )%   (5 )%   (3 )%
 
(m) LACA region revenue change, as reported (GAAP) 21 % 19 % 21 % 22 % 20 % 11 % 15 %
LACA region foreign currency translation impact (s)   1 %   3 %   2 %   1 %   5 %   9 %   8 %
LACA region revenue change, constant currency adjusted   22 %   22 %   23 %   23 %   25 %   20 %   23 %
 
(n) APAC region revenue change, as reported (GAAP) (4 )% (1 )% 0 % (2 )% 2 % (5 )% (1 )%
APAC region foreign currency translation impact (s)   2 %   2 %   0 %   2 %   (2 )%   0 %   (2 )%
APAC region revenue change, constant currency adjusted   (2 )%   1 %   0 %   0 %   0 %   (5 )%   (3 )%
 
(o) westernunion.com revenue change, as reported (GAAP) 21 % 23 % 22 % 23 % 23 % 22 % 23 %
westernunion.com foreign currency translation impact (s)   2 %   0 %   0 %   1 %   (3 )%   (1 )%   (2 )%
westernunion.com revenue change, constant currency adjusted   23 %   23 %   22 %   24 %   20 %   21 %   21 %
 
Business Solutions Segment
(p) Revenues, as reported (GAAP) $ 96.6 $ 99.4 $ 94.3 $ 383.9 $ 96.7 $ 93.1 $ 189.8
Foreign currency translation impact (s)   3.2     (1.2 )   (3.0 )   1.8     (4.8 )   (2.7 )   (7.5 )
Revenues, constant currency adjusted $ 99.8   $ 98.2   $ 91.3   $ 385.7   $ 91.9   $ 90.4   $ 182.3  
Prior year revenues, as reported (GAAP) $ 100.8 $ 97.2 $ 98.8 $ 396.0 $ 93.6 $ 96.6 $ 190.2
Revenue change, as reported (GAAP) (4 )% 2 % (4 )% (3 )% 3 % (4 )% 0 %
Revenue change, constant currency adjusted (1 )% 1 % (8 )% (3 )% (2 )% (6 )% (4 )%
 
(q) Operating income/(loss), as reported (GAAP) (jj) $ 5.3 $ 9.1 $ (3.0 ) $ 13.8 $ 2.8 $ 1.1 $ 3.9
Reversal of depreciation and amortization   10.6     10.6     10.7     42.5     10.6     10.5     21.1  
EBITDA (y) $ 15.9   $ 19.7   $ 7.7   $ 56.3   $ 13.4   $ 11.6   $ 25.0  
Operating income margin, as reported (GAAP) (jj) 5.5 % 9.1 % (3.2 )% 3.6 % 2.9 % 1.2 % 2.1 %
EBITDA margin 16.6 % 19.8 % 8.1 % 14.7 % 13.8 % 12.6 % 13.2 %
 
(r) Other (primarily bill payments businesses in United States and
Argentina)
Revenues, as reported (GAAP) $ 195.0 $ 197.6 $ 199.5 $ 785.9 $ 201.7 $ 190.5 $ 392.2
Foreign currency translation impact (s)   5.0     7.1     6.5     21.8     12.3     21.4     33.7  
Revenues, constant currency adjusted $ 200.0   $ 204.7   $ 206.0   $ 807.7   $ 214.0   $ 211.9   $ 425.9  
Prior year revenues, as reported (GAAP) $ 179.1 $ 181.7 $ 180.4 $ 722.3 $ 193.8 $ 195.0 $ 388.8
Revenue change, as reported (GAAP) 9 % 9 % 11 % 9 % 4 % (2 )% 1 %
Revenue change, constant currency adjusted 12 % 13 % 14 % 12 % 10 % 9 % 10 %
 
2018 Consolidated Outlook Metrics
Range
Earnings per share (GAAP) ($ - dollars) $ 1.82 $ 1.92
Impact as a result of Tax Act ($ - dollars) (x)   (0.02 )   (0.02 )
Earnings per share excluding Tax Act ($ - dollars) $ 1.80   $ 1.90  
       
Effective tax rate (GAAP) 13 % 14 %
Impact from Tax Act (x)   1 %   1 %
Effective tax rate excluding Tax Act   14 %   15 %

Non-GAAP related notes:

(s)   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. We
believe that this measure provides management and investors with
information about operating results and trends that eliminates
currency volatility and provides greater clarity regarding, and
increases the comparability of, our underlying results and trends.
 
(t) Represents a non-cash goodwill impairment charge related to our
Business Solutions reporting unit. The impairment primarily resulted
from a decrease in projected revenue growth rates and EBITDA
margins. These projections were reevaluated due to the declines in
revenues and operating results recognized in the fourth quarter of
2017, which were significantly below management's expectations.
Additionally, as disclosed in prior Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q, the total estimated fair value of
the Business Solutions reporting unit previously included value
derived from strategies to optimize United States cash flow
management and global liquidity by utilizing international cash
balances (including balances generated by other operating segments)
to initially fund global principal payouts for Business Solutions
transactions initiated in the United States that would have been
available to certain market participants. However, the December 2017
enactment of tax reform into United States law ("Tax Act")
eliminated any fair value associated with these cash management
strategies. This charge has been excluded from segment operating
income, as this charge has been excluded from the measurement of
segment operating income provided to the chief operating decision
maker for purposes of assessing segment performance and decision
making with respect to resource allocation. We believe that, by
excluding the effects of significant charges associated with
non-cash impairment charges that can impact operating trends,
management and investors are provided with a measure that increases
the comparability of our underlying operating results.
 
(u) Represents the impact from an accrual for a consent order with the
New York State Department of Financial Services ("NYDFS") related to
matters identified as part of the Joint Settlement Agreements
(referred to above as the "NYDFS Consent Order" or the "NYDFS
Settlement"), as described in our Form 8-K filed with the Securities
and Exchange Commission on January 4, 2018. Amounts related to the
NYDFS Consent Order were recognized in the second and fourth
quarters of 2017, and the expenses had no related income tax
benefit. These expenses have been excluded from segment operating
income, as these expenses are excluded from the measurement of
segment operating income provided to the chief operating decision
maker for purposes of assessing segment performance and decision
making with respect to resource allocation. We believe that, by
excluding the effects of significant charges associated with the
settlement of litigation that can impact operating trends,
management and investors are provided with a measure that increases
the comparability of our underlying operating results.
 
(v) Represents the impact from the settlement agreements related to (1)
a Deferred Prosecution Agreement with the United States Department
of Justice, and the United States Attorney's Offices for the Eastern
and Middle Districts of Pennsylvania, the Central District of
California, and the Southern District of Florida, (2) a Stipulated
Order for Permanent Injunction and Final Judgment with the United
States Federal Trade Commission ("FTC"), and (3) a Consent to the
Assessment of Civil Money Penalty with the Financial Crimes
Enforcement Network of the United States Department of Treasury
(referred to above, collectively, as the "Joint Settlement
Agreements"), to resolve the respective investigations of those
agencies, as described in our Form 8-K filed with the Securities and
Exchange Commission on January 20, 2017, and related matters.
Amounts related to these matters were recognized in the second,
third, and fourth quarters of 2016 and the full year 2016 results.
Additionally, in the third quarter of 2017, we recorded an
additional accrual in the amount of $8 million related to an
independent compliance auditor, pursuant to the terms of the Joint
Settlement Agreements. These expenses have been excluded from our
segment operating income, as these expenses are excluded from the
measurement of segment operating income provided to the chief
operating decision maker for purposes of assessing segment
performance and decision making with respect to resource allocation.
Additionally, income tax benefit was adjusted in the fourth quarter
of 2016 to reflect the revised determination, based on final
agreement terms. We believe that, by excluding the effects of
significant charges associated with the settlement of litigation
that can impact operating trends, management and investors are
provided with a measure that increases the comparability of our
underlying operating results.
 
(w) Represents the expenses incurred to transform our operating model,
focusing on technology transformation, network productivity,
customer and agent process optimization, and organizational redesign
to better drive efficiencies and growth initiatives ("WU Way
business transformation expenses"). Amounts related to the WU Way
business transformation expenses were recognized beginning in the
second quarter of 2016, and each subsequent quarter in 2017. As of
December 31, 2017, expenses associated with the WU Way initiative
were effectively complete. These expenses have been excluded from
our segment operating income, as these expenses are excluded from
the measurement of segment operating income provided to the chief
operating decision maker for purposes of assessing segment
performance and decision making with respect to resource allocation.
We believe that, by excluding the effects of significant charges
associated with the transformation of our operating model that can
impact operating trends, management and investors are provided with
a measure that increases the comparability of our other underlying
operating results. Although the expenses related to the WU Way are
specific to that initiative, the types of expenses related to the WU
Way initiative are similar to expenses that the Company has
previously incurred and can reasonably be expected to incur in the
future.
 
(x) Represents the estimated impact to our provision for income taxes
related to the Tax Act, primarily due to a tax on previously
undistributed earnings of certain foreign subsidiaries, partially
offset by the remeasurement of deferred tax assets and liabilities
and other tax balances to reflect the lower federal income tax rate,
among other effects. Certain of the Tax Act's impacts have been
provisionally estimated and will likely be adjusted in future
periods as we complete our accounting for these matters in 2018, in
accordance with a recent staff accounting bulletin issued by the SEC.
 
(y) Earnings before Interest, Taxes, Depreciation and Amortization
("EBITDA") results from taking operating income and adjusting for
depreciation and amortization expenses. EBITDA results provide an
additional performance measurement calculation which helps
neutralize the operating income effect of assets acquired in prior
periods.
 
(z) For the three months and twelve months ended December 31, 2017,
non-GAAP diluted weighted-average shares outstanding includes 3.3
million and 3.0 million shares, respectively. These shares are
excluded from the Company's GAAP diluted weighted-average shares
outstanding, as they are anti-dilutive due to the Company's GAAP net
losses for the respective periods.
 

Other notes:

(aa) Geographic split for transactions and revenue, including
transactions initiated through westernunion.com, is determined
entirely based upon the region where the money transfer is initiated.
 
(bb) Represents the North America (United States and Canada) ("NA")
region of our Consumer-to-Consumer segment.
 
(cc) Represents the Europe and the Russia/Commonwealth of Independent
States ("EU & CIS") region of our Consumer-to-Consumer segment.
 
(dd) Represents the Middle East, Africa, and South Asia ("MEASA") region
of our Consumer-to-Consumer segment, including India and certain
South Asian countries, which consist of Bangladesh, Bhutan,
Maldives, Nepal, and Sri Lanka.
 
(ee) Represents the Latin America and the Caribbean ("LACA") region of
our Consumer-to-Consumer segment, including Mexico.
 
(ff) Represents the East Asia and Oceania ("APAC") region of our
Consumer-to-Consumer segment.
 
(gg) Represents transactions, including westernunion.com transactions
initiated outside the United States, between and within foreign
countries (including Canada and Mexico). Excludes all transactions
originated in the United States.
 
(hh) Represents transactions originated in the United States, including
intra-country transactions and westernunion.com transactions
initiated from the United States.
 
(ii)

Represents transactions conducted and funded through Western Union
branded websites and mobile apps (referred to throughout as
"westernunion.com").

 
(jj) On January 1, 2018, the Company adopted an accounting pronouncement
that requires the non-service costs of a defined benefit pension
plan to be presented outside a subtotal of income from operations,
with adoption retrospective for periods previously presented. The
adoption of this standard resulted in increases to operating income
in the amount of $0.6 million for each quarter of 2017, $2.4 million
for the year ended December 31, 2017, $0.8 million for each of the
first, second, and fourth quarters of 2016, $0.9 million for the
third quarter of 2016, and $3.3 million for the year ended December
31, 2016.

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