Western Union 2011 Annual Report Download - page 77

On April 20, 2011, we acquired the remaining 70% interest in Costa, one of our largest money transfer agents
in Europe, for cash consideration of €95 million ($135.7 million), which included a reduction of €5 million ($7.1
million) for an initial working capital adjustment pursuant to the terms of the purchase agreement. The final
consideration is subject to an additional working capital adjustment. We previously held a 30% equity interest in
Costa.
On September 1, 2009, we acquired Canada-based Custom House, a provider of international
business-to-business payment services, for cash consideration of $371.0 million for all of the common shares of
this business and acquired cash of $2.5 million.
On February 24, 2009, we acquired the money transfer business of European-based FEXCO Group Holdings
(“FEXCO Group”), one of our largest agents providing services in a number of European countries, primarily the
United Kingdom, Spain, Sweden and Ireland. We surrendered our 24.65% interest in FEXCO Group and paid
€123.1 million ($157.4 million) as consideration for all of the common shares of the money transfer business and
acquired cash of $11.8 million.
Share Repurchases and Dividends
During the years ended December 31, 2011, 2010 and 2009, 40.3 million, 35.6 million and 24.8 million,
respectively, of shares were 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 our
Board of Directors through December 31, 2012.
On February 7, 2012, our Board of Directors declared a quarterly cash dividend of $0.10 per share payable on
March 30, 2012. During 2011, our Board of Directors declared quarterly cash dividends of $0.08 per common
share in each of the last three quarters and $0.07 per common share in the first quarter representing
$194.2 million in total dividends. During the year ended December 31, 2010, our 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. During the fourth quarter of 2009, our
Board of Directors declared a cash dividend of $0.06 per common share representing $41.2 million in total
dividends. These amounts were paid to shareholders of record in the respective month the dividend was declared,
except for the September 2011 and 2010 declared dividends, which were paid in October 2011 and 2010,
respectively.
Debt Service Requirements
Our 2012 debt service requirements will include payments on existing borrowings and any future borrowings
under our commercial paper program and interest payments on all outstanding indebtedness. We have the ability
to use existing financing sources, including our Revolving Credit Facility or commercial paper program, and
cash generated from operations to meet our debt obligations as they come due.
Our ability to continue to grow the business, make acquisitions, return capital to shareholders, including share
repurchases and dividends, and service our debt will depend on our ability to continue to generate excess
operating cash through our operating subsidiaries and to continue to receive dividends from those operating
subsidiaries, our ability to obtain adequate financing and our ability to identify acquisitions that align with our
long-term strategy.
Off-Balance Sheet Arrangements
Other than facility and equipment leasing arrangements disclosed in Note 12 to our Consolidated Financial
Statements, we have no material off-balance sheet arrangements that have or are reasonably likely to have a
material current or future effect on our financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources.
70