Western Union 2011 Annual Report Download - page 64

Segment Discussion
We manage our business around the consumers and businesses we serve and the types of services we offer.
Each of our two segments addresses a different combination of consumer groups, distribution networks and
services offered. Our segments are consumer-to-consumer and global business payments. Businesses not
considered part of these segments are categorized as “Other.”
The business segment measurements provided to, and evaluated by, our CODM are computed in accordance
with the following principles:
• The accounting policies of the reporting segments are the same as those described in the summary of
significant accounting policies.
• Corporate and other overhead is allocated to the segments primarily based on a percentage of the
segments’ revenue compared to total revenue.
• Expenses incurred in connection with mergers and acquisitions are included in “Other.”
• We incurred expenses of $46.8 million and $59.5 million for restructuring and related activities for the
years ended December 31, 2011 and 2010, respectively, which were not allocated to segments. No
expenses were recognized for restructuring and related activities in 2009. While these items were
identifiable to our segments, they were not included in the measurement of segment operating profit
provided to the CODM for purposes of assessing segment performance and decision making with respect
to resource allocation. For additional information on restructuring and related activities, refer to
“Operating expenses overview.”
• During 2009, we recorded an accrual of $71.0 million resulting from the multi-state agreement and settlement,
which was not allocated to the segments. While this item was identifiable to our consumer-to-consumer
segment, it was not included in the measurement of segment operating profit provided to the CODM for
purposes of assessing segment performance and decision making with respect to resource allocation. For
additional information on the settlement accrual, refer to “Operating expenses overview.”
• All items not included in operating income are excluded from the segments.
The following table sets forth the components of segment revenues as a percentage of the consolidated totals
for the years ended December 31, 2011, 2010 and 2009.
Years Ended December 31,
2011 2010 2009
Consumer-to-consumer (a)
EMEASA ........................................................... 43% 44% 45%
Americas ............................................................ 32% 31% 32%
APAC .............................................................. 9% 9% 8%
Total consumer-to-consumer .............................................. 84% 84% 85%
Global business payments ................................................. 14% 14% 14%
Other ................................................................. 2% 2% 1%
100% 100% 100%
(a) The consumer-to-consumer geographic split is determined based upon the region where the money transfer
is initiated and the region where the money transfer is paid. For transactions originated and paid in different
regions, we split the revenue between the two regions, with each region receiving 50%. For money transfers
initiated and paid in the same region, 100% of the revenue is attributed to that region.
57