Western Union 2006 Annual Report Download

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The words Thank You have always been synonymous with Western
Union. Throughout our 150-year history, our business has been
centered on making people’s lives easier and more productive.
Without Western Union, people all over the world would not be
able to work
,
travel or provide for their families in the way that
they currently do. It’s no wonder then that Thank You is something
that every Western Union employee hears countless times each
day. And in 2006, Thank You took on an entirely new meaning,
becoming an internal theme that speaks to the consumers, employees,
agents and shareholders who have helped us get to this: the most
exciting phase in our entire history.
THE WESTERN UNION COMPANY
2006 ANNUAL REPORT

Table of contents

  • Page 1
    ... countless times each day. And in 2006, Thank You took on an entirely new meaning, becoming an internal theme that speaks to the consumers, employees, agents and shareholders who have helped us get to this: the most exciting phase in our entire history. THE WESTERN UNION COMPANY 2006 ANNUAL REPORT

  • Page 2
    Consumers ...A Letter from the CEO ...Business Overview ...Employees ...Financial Report ... 01 10 14 18 28

  • Page 3
    With each transaction comes a feeling of thankfulness and pride.

  • Page 4
    "It's important for me to provide for my family back home. With Western Union, I can be there for them." 2 WESTERN UNION 2006 Annual Report

  • Page 5
    Consumers 3

  • Page 6
    "Every time I hear a piano I think about how I'm helping my grandson with lessons of his own." 4 WESTERN UNION 2006 Annual Report

  • Page 7
    "There is a Western Union right down the street - with hours that work with my schedule." Consumers 5

  • Page 8
    "Using westernunion.com gives us the ï¬,exibility to send our bill payments from anywhere." 6 WESTERN UNION 2006 Annual Report

  • Page 9
    "My brother is helping me with my tuition and using Western Union gives him great comfort that the money will arrive quickly." Consumers 7

  • Page 10
    "I wanted to help the Hurricane Katrina victims the minute I heard the news. Western Union is a convenient way to get money to those in need right away." 8 WESTERN UNION 2006 Annual Report

  • Page 11
    "I can walk into any of Argentina's Pago Fácil locations to send my utility bill payments quickly and conveniently." Consumers 9

  • Page 12
    ...are excited about the opportunities that await us and those we serve. We remain committed to offering diverse, financial services that help people stay in touch around the corner or around the world." CHRISTINA GOLD President and CEO The Western Union Company 10 WESTERN UNION 2006 Annual Report

  • Page 13
    A Letter from the CEO 11

  • Page 14
    ... five years ago the agent network was merely 120,000 agent locations, with more than one-third of those being in the United States. We grew our Gold Card program to 8 million active cards, up from just 1.5 million in 2003. And on December 15, 2006 - our busiest day ever - we successfully handled...

  • Page 15
    ... tripled our number of agent locations. We've increased market share and begun life as a public company. Our cash ï¬,ow has never been stronger. We are constantly expanding and diversifying our global distribution. And we've grown our agent relationships and introduced new service offerings. The...

  • Page 16
    ...cash payment options that allow our consumers to send fast, convenient bill payments on a one-time or recurring basis. C2B transactions account for nearly 15% of our total revenue. OTHER Western Union is a trusted source for money orders, prepaid cards and other financial services. These services...

  • Page 17
    ... Top 100 America's Greatest Brands - USA Media Cristal Award - France Best Use of Television - Germany Seven percent of annual revenues are invested back into the company through worldwide marketing and advertising efforts. A capable global system that completes an average of 13 transactions per...

  • Page 18
    ... where Western Union has agent locations: NORTH AMERICA Anguilla Antigua and Barbuda Aruba Barbados Belize Bonaire British Virgin Islands Canada Cayman Islands Costa Rica Cuba Curaçao Dominica Dominican Republic El Salvador Grenada Guatemala Haiti Honduras Jamaica Mexico Montserrat Nicaragua...

  • Page 19
    ...Australia Cook Islands Federated States of Micronesia Fiji French Polynesia Kiribati Marshall Islands New Caledonia New Zealand Niue Northern Marianas Palau Papua New Guinea Solomon Islands Tonga Tuvalu Vanuatu Western Samoa * Agent locations include locations of Western Union's affiliates Orlandi...

  • Page 20
    ONE WORLD. ONE HOME. Now is a great time to invest in Western Union. With more and more people leaving their homes and their families to make a living in foreign lands, the value of our services increases immensely. As does the value of everything that makes our services possible: Capability, ...

  • Page 21
    ... are most needed. The truth is, we believe that Western Union's capabilities are unmatched. While there are others that have the ability to transfer money internationally, they lack a comparable network of employees and agent locations covering nearly every corner of the globe. In 2006, our capital...

  • Page 22
    ... potential. China. India. The Philippines. And the Middle East, just to name a few. There has never been a greater demand for our services. Hundreds of millions of people are currently living outside of their home countries and using Western Union® services to remain connected to their families and...

  • Page 23
    ... proud to be here as a member of this family. There is no reward or feeling that can compare to being able to make such a monumental difference in the lives of so many people. 2006 saw the implementation of many new and tremendous initiatives, both personally and professionally. Our Founder's Grant...

  • Page 24
    ... Vice President Bank of Ayudhya PCL Western Union Agent Thailand GABRIEL PAREDES President and CEO Universal Storefront Services Corporation Western Union Agent Philippines RAYMA CRESWEL CEO Australian Newsagent's Federation Western Union Agent Australia 22 WESTERN UNION 2006 Annual Report

  • Page 25
    ... reason our Western Union Gold Card loyalty program has more than 8 million active cards and reached 62 countries in 2006. And their long tenure with Western Union gives them the knowledge and insight to create customized solutions on a local basis. We are always looking to implement new strategies...

  • Page 26
    ...plus 1 program - a plan designed to promote job growth and improve economic conditions in Mexico. This, along with other grassroots community efforts, helps us service our consumers on a whole different level. FRED NIEHAUS Senior Vice President Public Affairs 24 WESTERN UNION 2006 Annual Report

  • Page 27
    ... Red Cross and America's Second Harvest - providing disaster relief, education and human service programs. Internationally, we're helping the Asia Foundation educate and empower migrant women in Jintang County, China, while giving homeless children in Mumbai, India, a new life through the Vatsalya...

  • Page 28
    ... absolute necessity for living - it has a profound effect that no other feeling can match. It's something that could only happen with the 5,900 employees and 300,000 agent locations that are The Western Union Company. Top row from left to right: LAUREN KIM Korean Language Department MOHAMED PATEL...

  • Page 29
    Employees 27

  • Page 30
    ... stay connected, brings vitality to relationships. And thinking responsibly for the company and the community is the anchor of how we do business. We will strive to meet our consumers' expectations in the highest manner possible, remain strongly positioned in a fast-growing worldwide market and...

  • Page 31
    ...19 Compound Annual Growth Rates are calculated using the three year period from 2004 to 2006. FINANCIAL REVIEW TABLE OF CONTENTS Management Team ...30 Forward-Looking Statements...32 Selected Financial Data ...32 Our Business ...34 Management's Discussion and Analysis of Financial Condition and...

  • Page 32
    ... Latin America/Caribbean GROVER WRAY Executive Vice President and General Manager Western Union Payment Services Executive Vice President Operations and IT Executive Vice President and Chief Financial Officer Executive Vice President Human Resources 30 WESTERN UNION 2006 Annual Report

  • Page 33
    ... Vice President and Chief Financial Officer Altria Group Inc. CHRISTINA A. GOLD Former President Global Marketing and Category Development Kraft Foods Inc. ALAN J. LACY Advisor to Professionally Funded, Privately Held Ventures ROBERTO G. MENDOZA President and Chief Operating Officer Staples Inc...

  • Page 34
    ...and retain qualified key employees; changes in foreign exchange rates, including the impact of foreign exchange spreads on money transfer transactions; adverse movements and volatility in debt and equity capital markets; political conditions and related actions by the United States and abroad which...

  • Page 35
    ... money transfer services worldwide. Amounts include Vigo Remittance Corp. transactions since the acquisition date of October 21, 2005. (f) Consumer-to-business transactions include Quick Collect, Western Union Convenience Pay, Speedpay, Equity Accelerator, and Pago Fácil transactions processed...

  • Page 36
    ...telephone or the Internet, and to make cash payments in person at an agent location. We process electronic payments using the consumer's credit card, debit card or bank account. We process cash payments much like we process consumer-to-consumer transactions. || History and Development Western Union...

  • Page 37
    ... agent locations worldwide, in some countries we also offer the ability to send money over the Internet or the telephone, using a credit or debit card. Some agent locations also accept debit cards to initiate a transaction. We also offer consumers several options to receive a money transfer. While...

  • Page 38
    ... Transfer service allows Western Union consumers to send funds by telephone without visiting an agent location. Consumers call a toll-free number in the United States or the United Kingdom and use a debit card or credit card to initiate a transaction. The money transfer is then available for pay...

  • Page 39
    ... accounts. CASH PAY M EN TS. Consumers use our Quick Collect service to send guaranteed funds to businesses and government agencies from over 50,000 Western Union agent locations across the United States and Canada, using cash and, in select locations, a debit card. Consumers use our Convenience Pay...

  • Page 40
    ... through our agent network primarily in the United States and the Internet. Our "top-up" services allow consumers to pre-pay for mobile phone or other services, and otherwise store value with service providers that can be accessed by the consumer in the future. 38 WESTERN UNION 2006 Annual Report

  • Page 41
    ... operating in two business segments: || The consumer-to-business service allows consumers to transfer money to a biller. This service is available at many of our Western Union agent locations and in some instances through the Internet or by telephone primarily in the United States. In December 2006...

  • Page 42
    ...Company the subsidiaries that operated its money transfer and consumer payments businesses and its interest in a Western Union money transfer agent, as well as related assets, including real estate. First Data received a private letter ruling from the Internal Revenue Service and an opinion from tax...

  • Page 43
    ...statements of income include expense allocations for certain corporate functions historically provided to Western Union by First Data, including treasury, tax, accounting and reporting, mergers and acquisitions, risk management, legal, internal audit, procurement, human resources, investor relations...

  • Page 44
    ... we receive in connection with the sale of money orders, enrollment fees received when consumers enroll in our Equity Accelerator ® program (a recurring mortgage payment service program), revenue recorded for reimbursable costs incurred to operate payment services programs and investment income...

  • Page 45
    ... per share amounts) REVENUES: 2006 2005 Transaction fees Foreign exchange revenue Commission and other revenues Total revenues EXPENSES: $3,696.6 653.9 119.7 4,470.2 $3,354.8 531.0 102.1 3,987.9 $3,006.1 449.6 91.9 3,547.6 10% 23% 17% 12% 12% 18% 11% 12% Cost of services Selling, general...

  • Page 46
    ..., and higher enrollment fee income due to more customers participating in the Equity Accelerator program. In addition, 2006 commission and other revenue benefited from higher investment income on higher money transfer and payment services settlement asset balances. Operating Expenses Overview The...

  • Page 47
    ... loyalty programs and employees dedicated to marketing activities. Incremental independent public company expenses of $25 million in 2006 relate to staffing additions and related costs to replace First Data support, corporate governance, information technology, corporate branding and global affairs...

  • Page 48
    ... Revenue Service ("IRS") pursuant to its Advance Pricing Agreement ("APA") program. However, we were notified by the IRS in October 2006 that we will not be able to conclude an arrangement acceptable to us through the APA Program. Thus, the tax aspects of the 2003 restructuring will be addressed...

  • Page 49
    ...2006 revenue was generated in the United States. Businesses not considered part of the segments described above are categorized as "Other." Also included in "Other" are recruiting and relocation expenses associated with hiring senior management positions new to our company and consulting costs used...

  • Page 50
    ... consumers in the United States. As a result, the frequency of money transfer transactions involving these consumers has decreased and some competitors have lowered prices and foreign exchange spreads in certain markets. In 2006, Western Union was also a party in two sets of legal disputes pending...

  • Page 51
    ... the increase in total consumer-toconsumer money transfer revenue and transaction growth in all periods presented was the growth in transactions at existing agent locations, the number of agent locations and marketing campaigns promoting Western Union services. The majority of transaction growth is...

  • Page 52
    ... by our Speedpay ® and Equity Accelerator services. The growth rates in 2006 compared to 2005 also benefited from cash bill payments experiencing a slight revenue growth for the year ended December 31, 2006 versus a decline in 2005. In addition, our Western Union Convenience Pay® or "Convenience...

  • Page 53
    ... us with adequate time to replace the services currently provided by First Data. Further financial information relating to each of our segments' external revenue, operating profit measures and total assets is set forth in Note 17 to our Consolidated Financial Statements. || Capital Resources and...

  • Page 54
    ... of our business, we receive funds from money transfers and certain other payment processing services sold in advance of settlement with payment recipients. These funds (referred to as "Settlement assets" on our consolidated balance sheets) are not used to support our operations. However, we do have...

  • Page 55
    ... in cash ï¬,ow provided by operating activities also benefited from the delay in the payment of accrued income taxes of approximately $70 million related to the fourth quarter of 2006 which will be paid in the first quarter of 2007 due to the Company's spin-off from First Data, while income taxes...

  • Page 56
    ... on this below-market rate note receivable and have recorded this note net of a discount of $37.8 million as of December 31, 2006. Purchase of Equity Method Investments In 2004, we purchased 30% interests in two of our international money transfer agents. The aggregate purchase price paid was $42...

  • Page 57
    ... of debt issue costs Principal payments on borrowings Net proceeds from the issuance of commercial paper Proceeds from net borrowings under credit facilities Proceeds from exercise of options Cash dividends to public stockholders Purchase of treasury shares Net cash provided by/(used in) financing...

  • Page 58
    ... our headquarters in Englewood, Colorado and certain other fixed assets with a net book value of $66.5 million, and we transferred to First Data certain investments with a net book value of $20.9 million. We also reclassified liabilities totaling $193.8 million relating to certain tax and employee...

  • Page 59
    ... in outstanding letters of credit and bank guarantees at December 31, 2006, with expiration dates through 2011, certain of which contain a one-year renewal option. The letters of credit and bank guarantees are held primarily in connection with lease arrangements and agent settlement agreements. We...

  • Page 60
    ... is inconsistent with the anticipated tax consequences (as set forth in the private letter ruling) in connection with the spin-off (and certain related transactions) if such transactions do not qualify for tax-free treatment under the Internal Revenue Code, we may be liable to First Data for all or...

  • Page 61
    ... within that specified time period. Capitalized Costs We capitalize initial payments for new contracts and contract renewals associated with agent contracts and software costs. Capitalization of these costs is subject to strict accounting policy criteria and requires management judgment as to the...

  • Page 62
    .... In certain consumer money transfer transactions involving different send and receive currencies, we generate revenue based on the difference between the exchange rate set by us to the consumer and the rate at which we or our agents are able to acquire currency helping to further provide protection...

  • Page 63
    ...xed rate interest-bearing securities, which may include investments made from cash received from our money transfer business and other related payment services awaiting redemption. We have classified these investments as available-for-sale within settlement assets in the consolidated balance sheets...

  • Page 64
    ... accepted accounting principles. As discussed in Note 2 to the consolidated financial statements, effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123(R), "Share Based Payment". Denver, Colorado February 22, 2007 62 WESTERN UNION 2006 Annual Report

  • Page 65
    ..., except per share amounts) REVENUES: 2006 2005 2004 Transaction fees Foreign exchange revenue Commission and other revenues Total revenues EXPENSES: $3,696.6 653.9 119.7 4,470.2 $3,354.8 531.0 102.1 3,987.9 $3,006.1 449.6 91.9 3,547.6 Cost of services Selling, general and administrative...

  • Page 66
    ... treasury stock at cost, 0.9 shares at December 31, 2006 Total Stockholders' (Deficiency)/Net Investment in The Western Union Company Total Liabilities and Stockholders' (Deficiency)/ Net Investment in The Western Union Company See Notes to Consolidated Financial Statements. $ 554.8 1,282.5 52...

  • Page 67
    ..., net of debt issue costs Principal payments on borrowings Net proceeds from issuance of commercial paper Proceeds from net borrowings under credit facilities Proceeds from exercise of options Cash dividends to public stockholders Purchase of treasury shares Net cash provided by/(used in) financing...

  • Page 68
    ...First Data Conversion of net investment in The Western Union Company into capital deficiency Stock-based compensation Common Stock Dividends Purchase of treasury shares Options exercised Tax benefits from employee stock option plans Unrealized losses on investment securities, net of tax Unrealized...

  • Page 69
    ...Shares Amount Net Investment in The Western Union Company Capital Deficiency Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' (Deficiency)/Net Investment in The Western Union Company... $925.3 $927.4 (3.0) 1.7 (13.6) $736.7 $751.6 Consolidated Financial Statements 67

  • Page 70
    ...Company's money order business sells Western Union branded money orders issued by Integrated Payment Systems Inc. ("IPS"), a subsidiary of First Data, to consumers at non-bank retail locations primarily in the United States and Canada. Western Union's prepaid service business markets a Western Union...

  • Page 71
    ... The Company reclassified certain tax and employee-related obligations from intercompany liabilities totaling $193.8 million. First Data distributed 765.3 million shares of Western Union's common stock to holders of First Data common stock. || 2. Summary of Significant Accounting Policies Use of...

  • Page 72
    ... three months or less at the date of purchase (that are readily convertible to cash) are considered to be cash equivalents and are stated at cost, which approximates market value. Western Union maintains cash and cash equivalent balances with various financial institutions. Western Union limits the...

  • Page 73
    ... agent. Cash equivalents consist of short-term time deposits, commercial paper and other highly liquid investments. Receivables from selling agents represent funds collected by such agents, but in transit to Western Union. Western Union has a large and diverse agent base, thereby reducing the credit...

  • Page 74
    ... the sale of money orders. Western Union also recognizes transaction fees collected from the Company's agents at the time a money order is issued to the consumer. Loyalty Program Western Union operates a loyalty program which consists of points that are awarded to program participants. Such points...

  • Page 75
    ... Data prior to the spin-off. The state and other income tax provisions represent applicable taxes payable to the various jurisdictions in which Western Union operates. Foreign taxes are paid in each respective jurisdiction locally. Western Union accounts for income taxes under the liability method...

  • Page 76
    ...grants of Western Union stock options and stock unit awards to non-employee directors of the Company. Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 123R, "Share-Based Payment" ("SFAS No. 123R"), using the modified prospective method. SFAS No...

  • Page 77
    .... Western Union's investments in these agents are accounted for under the equity method of accounting. In August 2003, the Company acquired a 51% ownership interest in EPOSS Limited ("EPOSS"), a United Kingdom based seller of prepaid products in Europe, for $12.2 million, including cash acquired...

  • Page 78
    ... support, transaction validation services, hosting and operating banking software in its data center, access to a risk management application, software development services and payroll card services. Services provided by Western Union to First Data include providing bill payment processing services...

  • Page 79
    ... letters of credit and bank guarantees at December 31, 2006 with expiration dates through 2011, certain of which contain a one-year renewal option. The letters of credit and bank guarantees are primarily held in connection with lease arrangements and agent settlement agreements. The Company expects...

  • Page 80
    ... of the following (in millions): December 31, 2006 2005 Settlement assets: Cash and cash equivalents Receivables from selling agents, net Investment securities Settlement obligations: Money transfer and payment services payables Payables to agents $ 714.5 568.0 $1,282.5 $521.2 390.8 $912.0 $ 348...

  • Page 81
    ... fair value of Western Union's investment securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2006 and 2005...

  • Page 82
    ...): December 31, 2006 2005 OTHER ASSETS: Equity method investments Amounts advanced to agents, net of discounts Deferred customer set up costs Prepaid commissions Accounts receivable, net Receivable from First Data for stock option proceeds Prepaid expenses Debt issue costs Derivative financial...

  • Page 83
    ... Federal tax credits Other Effective tax rate 35.0% 2.0% (6.3)% (0.3)% 1.1% 31.5% 35.0% 2.0% (5.8)% (0.4)% 0.2% 31.0% 35.0% 2.0% (4.7)% (0.5)% (0.2)% 31.6% Western Union's income tax provision consists of the following components (in millions): Year Ended December 31, 2006 2005 2004 Current...

  • Page 84
    ... anticipated tax consequences (as set forth in the private letter ruling) in connection with the spin-off (and certain related transactions) if such transactions do not qualify for tax-free treatment under the Internal Revenue Code, the Company will be liable to First Data (i) for any such taxes or...

  • Page 85
    ... First Data or Western Union in 2005 and 2006. As part of the Distribution, Western Union is responsible for any remaining underfunded pension obligations. Western Union does not currently anticipate contributing to the plans in 2007. A September 30 measurement date is used for the Company's plans...

  • Page 86
    .... Western Union employs a building block approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term historical relationships between equities and fixed-income securities are preserved consistent with the widely accepted capital market...

  • Page 87
    ...-term disability plan for union employees. The Company's obligations pursuant to these plans are immaterial. || 12. Operating Lease Commitments Western Union leases certain real properties for use as customer service centers and administrative and sales offices. Western Union also leases data...

  • Page 88
    ... a quarterly cash dividend of $0.01 per common share representing $7.7 million which was paid in December 2006. || 14. Derivative Financial Instruments The Company is exposed to foreign currency risk resulting from ï¬,uctuations in exchange rates, primarily the euro and British pound, related to...

  • Page 89
    ... 31, 2006. The aggregate United States dollar equivalent notional amount of foreign currency forward contracts held by the Company with external third parties as of the balance sheet dates are as follows (in millions): December 31, 2006 2005 Contracts not designated as hedges: Euro British pound...

  • Page 90
    ... prior to the commercial paper program expiration in 2011. The Commercial Paper Notes may have maturities of up to 397 days from date of issuance. Interest rates for borrowings are based on market rates at the time of issuance. The Company's commercial paper borrowings at December 31, 2006 were $324...

  • Page 91
    ... interest thereon to the date of redemption. In connection with the issuance of the 2011 Notes, the 2016 Notes, the 2036 Notes, and the Floating Rate Notes, the Company filed a registration statement on Form S-4 with the Securities and Exchange Commission on December 22, 2006, which provided the...

  • Page 92
    ... of equity-based awards to non-employee directors of the Company. Options granted under the 2006 LTIP are issued with exercise prices equal to the fair market value of Western Union common stock on the grant date, have 10-year terms, and vest over four equal annual increments beginning 12 months...

  • Page 93
    ... substitute stock options, representing those stock options held by Western Union employees that were converted from First Data stock options to Western Union options at a conversion ratio of 2.1955, have exercise prices equal to the fair market value of a share of common stock on the grant date, as...

  • Page 94
    ...39 $17.84 $17.19 7 6 $367.2 $316.4 (a) Transfer from First Data, net represents stock options held by First Data employees who became employees of Western Union prior to the spin-off. The conversion factor for the number of shares and exercise price for the information displayed above is the ratio...

  • Page 95
    ... from accelerated vesting. The Company must recognize compensation expense related to any awards outside of the First Data 2002 Long-Term Incentive Plan that were not fully vested as of January 1, 2006, as well as options granted after that date under either the First Data plan or the Western Union...

  • Page 96
    ... of Western Union options granted subsequent to the spin-off and First Data stock options and ESPP rights granted to Western Union employees prior to the spin-off for the years ended December 31, 2006, 2005 and 2004 was estimated at the date of grant using a Black-Scholes option pricing model with...

  • Page 97
    ... market prices of a variety of traded options, the market price of First Data stock, the exercise price and remaining term of the traded options, the expected dividends and the risk-free rate. EXPECTED DIVIDEND YIELD - The Company's expected annual dividend yield is calculated based on Western Union...

  • Page 98
    ...operating income. || The consumer-to-consumer reporting segment is viewed as one global network where a money transfer can be sent from one location to another, anywhere in the world. The segment is managed as three regions, primarily to coordinate agent network management and marketing activities...

  • Page 99
    ..., 2006 2005 2004 Revenue: United States International Total Long-lived assets: United States International Total $ 157.3 18.8 $ 176.1 $ $ 70.5 11.9 82.4 $ $ 61.7 9.0 70.7 $1,889.3 2,580.9 $4,470.2 $1,842.7 2,145.2 $3,987.9 $1,708.3 1,839.3 $3,547.6 Notes to Consolidated Financial Statements 97

  • Page 100
    ... two countries. Long-lived assets, consisting of "Property and equipment, net," are presented based upon the location of the assets. A majority of Western Union's consumer-to-consumer transactions involve at least one non-United States location. Based on the method used to attribute revenue between...

  • Page 101
    ... 2006, we implemented new internal control procedures to improve the effectiveness of our review over accounting for derivative financial instruments and to ensure that these transactions are accounted for in accordance with generally accepted accounting principles in the United States of America...

  • Page 102
    ... owners. Certifications The Company filed certifications of the CEO and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 as Exhibits to the Western Union 2006 Form 10-K report filed with the United States Securities and Exchange Commission. 100 WESTERN UNION 2006 Annual Report

  • Page 103
    © 20 07 THE WESTERN UNION COMPANY. ALL RIGHTS RESERVED. || DESIGN: VSA PARTNERS, INC. || PRIMARY PHOTOGR APHY: JOHN KERNICK

  • Page 104
    WESTERN UNION 12500 BELFORD AVENUE ENGLEWOOD, CO 80112 USA