Western Union 2011 Annual Report Download - page 133

THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, the components of accumulated other comprehensive loss, net of tax, were as follows (in
millions):
2011 2010 2009
Unrealized gains on investment securities ............................. $ 4.9 $ 3.1 $ 6.4
Unrealized gains/(losses) on hedging activities ......................... 5.1 (21.9) (17.0)
Foreign currency translation adjustment .............................. (6.3) (4.3) (10.9)
Pension liability adjustment ........................................ (122.2) (109.7) (105.8)
$ (118.5) $ (132.8) $ (127.3)
Cash Dividends Paid
During 2011, the Company’s Board of Directors declared quarterly cash dividends of $0.08 per common share
in the second through fourth quarters of 2011 and $0.07 per share in the first quarter representing $194.2 million
in total dividends. Of this amount, $49.6 million was paid on both December 30, 2011 and October 7, 2011,
$50.3 million was paid on June 30, 2011 and $44.7 million was paid on March 31, 2011. During 2010, the
Company’s Board of Directors declared quarterly cash dividends of $0.07 per common share in the fourth quarter
and $0.06 per common share in each of the first three quarters representing $165.3 million in total dividends. Of
this amount, $45.8 million was paid on December 31, 2010, $39.4 million was paid on October 14, 2010,
$39.6 million was paid on June 30, 2010 and $40.5 million was paid on March 31, 2010. During the fourth
quarter of 2009, the Company’s Board of Directors declared an annual cash dividend of $0.06 per common share
representing $41.2 million in total dividends, paid on December 30, 2009.
On February 7, 2012, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per share
payable on March 30, 2012.
Share Repurchases
During the years ended December 31, 2011, 2010 and 2009, 40.3 million, 35.6 million and 24.8 million shares,
respectively, have been repurchased for $800.0 million, $584.5 million and $400.0 million, respectively,
excluding commissions, at an average cost of $19.83, $16.44 and $16.10 per share, respectively. As of
December 31, 2011, $615.5 million remains available under share repurchase authorizations approved by the
Board of Directors through December 31, 2012.
14. Derivatives
The Company is exposed to foreign currency exchange risk resulting from fluctuations in exchange rates,
primarily the euro, and to a lesser degree the British pound, Canadian dollar and other currencies, related to
forecasted money transfer revenues and on money transfer settlement assets and obligations. The Company is
also exposed to risk from derivative contracts written to its customers arising from its cross-currency
business-to-business payments operations. Additionally, the Company is exposed to interest rate risk related to
changes in market rates both prior to and subsequent to the issuance of debt. The Company uses derivatives to
(a) minimize its exposures related to changes in foreign currency exchange rates and interest rates and
(b) facilitate cross-currency business-to-business payments by writing derivatives to customers.
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