Western Union 2011 Annual Report Download - page 59
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The following table sets forth our consolidated results of operations for the years ended December 31, 2011,
2010 and 2009.
Years Ended December 31,
% Change
2011
vs. 2010
2010
vs. 2009(in millions, except per share amounts) 2011 2010 2009
Revenues:
Transaction fees .......................... $ 4,220.2 $ 4,055.3 $ 4,036.2 4% 0%
Foreign exchange revenues ................. 1,151.2 1,018.8 910.3 13% 12%
Other revenues ........................... 120.0 118.6 137.1 1% (13)%
Total revenues ............................. 5,491.4 5,192.7 5,083.6 6% 2%
Expenses:
Cost of services .......................... 3,102.0 2,978.4 2,874.9 4% 4%
Selling, general and administrative ........... 1,004.4 914.2 926.0 10% (1)%
Total expenses ............................. 4,106.4 3,892.6 3,800.9 5% 2%
Operating income ........................... 1,385.0 1,300.1 1,282.7 7% 1%
Other income/(expense):
Interest income ........................... 5.2 2.8 9.4 86% (70)%
Interest expense .......................... (181.9) (169.9) (157.9) 7% 8%
Derivative gains/(losses), net ................ 14.0 (2.5) (2.8) * *
Other income, net ......................... 52.3 14.7 0.1 * *
Total other expense, net ...................... (110.4) (154.9) (151.2) (29)% 2%
Income before income taxes ................... 1,274.6 1,145.2 1,131.5 11% 1%
Provision for income taxes .................... 109.2 235.3 282.7 (54)% (17)%
Net income ................................ $ 1,165.4 $ 909.9 $ 848.8 28% 7%
Earnings per share:
Basic ................................... $ 1.85 $ 1.37 $ 1.21 35% 13%
Diluted ................................. $ 1.84 $ 1.36 $ 1.21 35% 12%
Weighted-average shares outstanding:
Basic ................................... 630.6 666.5 698.9
Diluted ................................. 634.2 668.9 701.0
* Calculation not meaningful
Revenues overview
The majority of transaction fees and foreign exchange revenues were contributed by our
consumer-to-consumer segment for all periods presented, which is discussed in greater detail in “Segment
Discussion.”
2011 compared to 2010
Consolidated revenue increased 6% during the year ended December 31, 2011 due to consumer-to-consumer
transaction growth and the weakening of the United States dollar compared to most other foreign currencies,
which positively impacted revenue, offset by slight price reductions. The weakening of the United States dollar
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