Western Union 2012 Annual Report Download - page 58

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The following table sets forth our consolidated results of operations for the years ended December 31, 2012, 2011 and 2010.
% Change
Year Ended December 31, 2012 2011
(in millions, except per share amounts) 2012 2011 2010 vs. 2011 vs. 2010
Revenues:
Transaction fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,210.0 $ 4,220.2 $ 4,055.3 — % 4 %
Foreign exchange revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,332.7 1,151.2 1,018.8 16 % 13 %
Other revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.1 120.0 118.6 2 % 1 %
Total revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,664.8 5,491.4 5,192.7 3 % 6 %
Expenses:
Cost of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,194.2 3,102.0 2,978.4 3 % 4 %
Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . . . 1,140.6 1,004.4 914.2 14 % 10 %
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,334.8 4,106.4 3,892.6 6 % 5 %
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,330.0 1,385.0 1,300.1 (4)% 7 %
Other income/(expense):
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 5.2 2.8 6 % 86 %
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (179.6)(181.9)(169.9)(1)% 7%
Derivative gains/(losses), net. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 14.0 (2.5) (96)% *
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.4 52.3 14.7 (76)% *
Total other expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (161.2)(110.4)(154.9) 46 % (29)%
Income before income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,168.8 1,274.6 1,145.2 (8)% 11 %
Provision for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.9 109.2 235.3 31 % (54)%
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,025.9 $ 1,165.4 $ 909.9 (12)% 28 %
Earnings per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.70 $ 1.85 $ 1.37 (8)% 35 %
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.69 $ 1.84 $ 1.36 (8)% 35 %
Weighted-average shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604.9 630.6 666.5
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607.4 634.2 668.9
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* 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.”
2012 compared to 2011
Consolidated revenue increased 3% during the year ended December 31, 2012 due to the acquisition of TGBP, which
contributed approximately 4% to consolidated revenue growth for the period, and Consumer-to-Consumer transaction growth of
2%, partially offset by the strengthening of the United States dollar compared to most other foreign currencies and slight price
reductions. The strengthening of the United States dollar compared to most other foreign currencies negatively impacted revenue
growth by approximately 2% in the year ended December 31, 2012.
Foreign exchange revenues increased for the year ended December 31, 2012 compared to the same period in 2011 primarily
due to the acquisition of TGBP.