Western Union 2011 Annual Report Download - page 114

THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes the restructuring and related expenses by reportable segment (in millions).
These expenses have not been allocated to the Company’s segments disclosed in Note 17. While these items are
identifiable to the Company’s segments, these expenses have been excluded from the measurement of segment
operating profit provided to the chief operating decision maker (“CODM”) for purposes of assessing segment
performance and decision making with respect to resource allocation.
Consumer-to-
Consumer
Global
Business
Payments Other Total
2010 expenses .......................................... $ 44.7 $ 12.8 $ 2.0 $ 59.5
2011 expenses .......................................... 33.7 11.2 1.9 46.8
Total expenses .......................................... $ 78.4 $ 24.0 $ 3.9 $ 106.3
The Company did not incur any material restructuring and related expenses in the year ended December 31,
2009.
5. Related Party Transactions
The Company has ownership interests in certain of its agents accounted for under the equity method of
accounting. The Company pays these agents, as it does its other agents, commissions for money transfer and
other services provided on the Company’s behalf. Commission expense recognized for these agents for the years
ended December 31, 2011, 2010 and 2009 totaled $131.9 million, $183.5 million and $203.2 million,
respectively. Commission expense recognized for Finint prior to October 31, 2011, Costa prior to April 20, 2011,
and FEXCO prior to February 24, 2009, the date of the acquisitions (see Note 3), was considered a related party
transaction.
In July 2009, the Company appointed a director who is also a director for a company holding significant
investments in two of the Company’s existing agents. These agents had been agents of the Company prior to the
director being appointed to the board. The Company recognized commission expense of $58.8 million,
$52.9 million and $54.2 million for the years ended December 31, 2011, 2010 and 2009, respectively, related to
these agents.
6. Commitments and Contingencies
Letters of Credit and Bank Guarantees
The Company had approximately $120 million in outstanding letters of credit and bank guarantees as of
December 31, 2011 with expiration dates through 2015, the majority of which contain a one-year renewal option.
The letters of credit and bank guarantees are primarily held in connection with lease arrangements and certain
agent agreements. The Company expects to renew the letters of credit and bank guarantees prior to expiration in
most circumstances.
Litigation and Related Contingencies
In the second quarter of 2009, the Antitrust Division of the United States Department of Justice (“DOJ”)
served one of the Company’s subsidiaries with a grand jury subpoena requesting documents in connection with
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