Western Union 2012 Annual Report Download - page 105

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THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
100
The goodwill recognized for TGBP of $704.3 million is attributable to expected synergies, the projected long-term business
growth in current and new markets and an assembled workforce and relates entirely to the Business Solutions segment. The goodwill
recognized for Finint and Costa of $153.6 million and $174.2 million, respectively, is attributable to growth opportunities that will
arise from the Company directly managing its agent relationships, expected synergies, projected long-term business growth and
an assembled workforce and relates entirely to the Consumer-to-Consumer segment. Goodwill expected to be deductible for income
tax purposes for TGBP, Finint and Costa is approximately $488.4 million, $97.0 million and $104.9 million, respectively.
The following table presents changes to goodwill for the years ended December 31, 2012 and 2011 (in millions):
Consumer-to-
Consumer
Consumer-to-
Business
Business
Solutions Other Total
January 1, 2011 balance . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,619.9 $ 227.2 $ 289.4 $ 15.2 $ 2,151.7
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325.4 — 728.7 — 1,054.1
Currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(2.3)(4.4)(0.2)(6.9)
December 31, 2011 balance . . . . . . . . . . . . . . . . . . . . . . . $ 1,945.3 $ 224.9 $ 1,013.7 $ 15.0 $ 3,198.9
Purchase price adjustments. . . . . . . . . . . . . . . . . . . . . . . . 2.4 — (24.4)—
(22.0)
Currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(3.8) 6.7 (0.1) 2.8
December 31, 2012 balance . . . . . . . . . . . . . . . . . . . . . . . $ 1,947.7 $ 221.1 $ 996.0 $ 14.9 $ 3,179.7
4. Productivity and Cost-Savings Initiatives and Restructuring and Related Expenses
Productivity and Cost-Savings Initiatives
In the fourth quarter of 2012, the Company began implementing additional initiatives to improve productivity and reduce
costs. For the year ended December 31, 2012, the Company incurred $30.9 million of employee termination benefits and other
costs related to these initiatives, of which $20.9 million and $4.0 million were attributable to the Company's Consumer-to-Consumer
and Consumer-to-Business segments, respectively, and $6.0 million was attributable to Other. These costs include costs related to
termination benefits received by two of the Company's executives. Additional productivity and cost-savings initiatives will be
implemented in 2013.
The following table summarizes the activity for the employee termination benefits and other costs related to the productivity
and cost-savings initiatives accruals as of December 31, 2012 (in millions):
Severance,
Outplacement
and Related
Benefits Other (b) Total
Balance, January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $—$—$—
Expenses (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.9 2.0 30.9
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.2)(0.4)(5.6)
Non-cash benefit (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 — 2.0
Balance, December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25.7 $ 1.6 $ 27.3
Cumulative expenses incurred to date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28.9 $ 2.0 $ 30.9
Additional expenses expected to be incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.0 33.0 45.0
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40.9 $ 35.0 $ 75.9
____________
(a) Expenses include a non-cash benefit for adjustments to stock compensation for awards forfeited by employees.
(b) Other expenses related to the relocation of various operations to new and existing Company facilities and third-party providers
including expenses for hiring, training, relocation, travel and professional fees. All such expenses were recorded when incurred.