Western Union 2012 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2012 Western Union annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

57
Earnings per share decreased for the year ended December 31, 2012 compared to the corresponding previous period as a result
of the previously described factors impacting net income, offset by lower weighted-average shares outstanding. Earnings per share
increased for the year ended December 31, 2011 compared to the corresponding previous period as a result of the previously
described factors impacting net income, mainly from the tax related benefit discussed above, and lower weighted-average shares
outstanding. The lower number of shares outstanding was due to stock repurchases exceeding stock option exercises.
Segment Discussion
We manage our business around the consumers and businesses we serve and the types of services we offer. Each of our three
segments addresses a different combination of consumer groups, distribution networks and services offered. Our segments are
Consumer-to-Consumer, Consumer-to-Business and Business Solutions. 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 reportable 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.
• Costs incurred for the investigation and closing of acquisitions are included in “Other.”
• There were no restructuring and related expenses incurred during the year ended December 31, 2012, but we incurred
expenses of $46.8 million and $59.5 million for the years ended December 31, 2011 and 2010, respectively, which were
not allocated to the segments. 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.”
• 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, 2012, 2011 and 2010.
Year Ended December 31,
2012 2011 2010
Consumer-to-Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81% 84% 84%
Consumer-to-Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11% 11% 12%
Business Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6% 3% 2%
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2% 2% 2%
100% 100% 100%