Western Union 2008 Annual Report Download - page 47

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4545
Consolidated
Financial
Statements
Consolidated Statements of Income
Year Ended December 31,
(in millions, except per share amounts) 2008 2007 2006
REVENUES:
Transaction fees $4,240.8 $3,989.8 $3,696.6
Foreign exchange revenue 896.3 771.3 653.9
Commission and other revenues 144.9 139.1 119.7
Total revenues 5,282.0 4,900.2 4,470.2
EXPENSES:
Cost of services 3,093.0 2,808.4 2,430.5
Selling, general and administrative 834.0 769.8 728.3
Total expenses* 3,927.0 3,578.2 3,158.8
Operating income 1,355.0 1,322.0 1,311.4
OTHER (EXPENSE)/INCOME:
Interest income 45.2 79.4 40.1
Interest expense (171.2) (189.0) (53.4)
Derivative (losses)/gains, net (6.9) 8.3 (21.2)
Foreign exchange effect on notes receivable from First Data, net — — 10.1
Interest income from First Data, net — — 35.7
Other income, net 16.6 1.7 12.4
Total other (expense)/income, net (116.3) (99.6) 23.7
Income before income taxes 1,238.7 1,222.4 1,335.1
Provision for income taxes 319.7 365.1 421.1
Net income $ 919.0 $ 857.3 $ 914.0
Earnings per share:
Basic $ 1.26 $ 1.13 $ 1.20
Diluted $ 1.24 $ 1.11 $ 1.19
Weighted-average shares outstanding:
Basic 730.1 760.2 764.5
Diluted 738.2 772.9 768.6
* As further described in Note 5, total expenses include amounts paid to related parties of $305.9 million, $256.6 million and $364.6 million for the years ended
December31, 2008, 2007 and 2006, respectively.
See Notes to Consolidated Financial Statements.