Western Union 2009 Annual Report Download - page 49

ITEM 6. SELECTED FINANCIAL DATA
The financial information in this Annual Report on Form 10-K for periods ending on or after
September 29, 2006 is presented on a consolidated basis and includes the accounts of the Company and our
majority-owned subsidiaries. On September 29, 2006, First Data Corporation (“First Data”) distributed 100%
of 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, through a tax-free distribution to First Data shareholders
(“Spin-off ”). The Spin-off by First Data of its money transfer and consumer payments businesses became
effective on September 29, 2006 through a distribution of 100% of the common stock of The Western Union
Company to the holders of record of First Data’s common stock (the “Distribution”). The financial information
for the periods presented prior to the Distribution is presented on a combined basis and represents those
entities that were ultimately transferred to the Company as part of the Spin-off. The assets and liabilities
presented have been reflected on a historical basis, as prior to the Distribution such assets and liabilities
presented were 100% owned by First Data. The financial statements for the periods presented prior to the
Distribution do not include all of the actual expenses that would have been incurred had Western Union been a
stand-alone entity during the periods presented and do not reflect Western Union’s combined results of
operations, financial position and cash flows had Western Union been a stand-alone company during the
periods presented.
Our selected historical financial data are not necessarily indicative of our future financial position, future
results of operations or future cash flows.
You should read the information set forth below in conjunction with our historical consolidated financial
statements and the notes to those statements included elsewhere in this Annual Report on Form 10-K.
(in millions, except per share data) 2009 2008 2007 2006 2005
Year ended December 31,
Statements of Income Data:
Revenues (a).............................. $5,083.6 $ 5,282.0 $4,900.2 $4,470.2 $3,987.9
Operating expenses (b) (c) (d) ................. 3,800.9 3,927.0 3,578.2 3,158.8 2,718.7
Operating income (b) (c) (d) .................. 1,282.7 1,355.0 1,322.0 1,311.4 1,269.2
Interest income (e) ......................... 9.4 45.2 79.4 40.1 7.6
Interest expense (f) ......................... (157.9) (171.2) (189.0) (53.4) (1.7)
Other (expense)/income, net, excluding interest
income and interest expense (g) .............. (2.7) 9.7 10.0 37.0 69.0
Income before income taxes (b) (c) (d) (e) (f) (g). . . 1,131.5 1,238.7 1,222.4 1,335.1 1,344.1
Net income (b) (c) (d) (e) (f) (g) ............... 848.8 919.0 857.3 914.0 927.4
Depreciation and amortization ................. 154.2 144.0 123.9 103.5 79.5
Cash Flow Data:
Net cash provided by operating activities . . ....... 1,218.1 1,253.9 1,103.5 1,108.9 1,002.8
Capital expenditures (h) ..................... (98.9) (153.7) (192.1) (202.3) (65.0)
Common stock repurchased (i) ................ (400.2) (1,314.5) (726.8) (19.9) —
Dividends to First Data ...................... — — — 2,953.9 417.2
Earnings Per Share Data:
Basic (b) (c) (d) (e) (f) (g) (j) ................. $ 1.21 $ 1.26 $ 1.13 $ 1.20 $ 1.21
Diluted (b) (c) (d) (e) (f) (g) (j) ................ $ 1.21 $ 1.24 $ 1.11 $ 1.19 $ 1.21
Cash dividends to stockholders per common share . . $ 0.06 $ 0.04 $ 0.04 $ 0.01 —
Key Indicators (unaudited):
Consumer-to-consumer transactions (k) . . . ....... 196.1 188.1 167.7 147.1 118.5
Global business payments transactions (l) . ....... 414.8 412.1 404.5 249.4 215.1
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