Western Union 2013 Annual Report Download - page 187

2013 FORM 10-K
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Acquisition of Businesses
On November 7, 2011, we acquired TGBP from Travelex Holdings Limited for cash consideration of £596 million ($956.5
million), net of a final working capital adjustment which resulted in a return of £15 million ($24.1 million) of purchase consideration
in the third quarter of 2012. In connection with the July 5, 2011 purchase agreement, on May 4, 2012, we also acquired the French
assets of TGBP for cash consideration of £3 million ($4.8 million) after receiving regulatory approval.
On October 31, 2011, we acquired the remaining 70% interest in Finint, one of our largest money transfer agents in Europe,
for cash consideration of €99.6 million ($139.4 million). We previously held a 30% equity interest in Finint.
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). We previously held a 30% equity interest in Costa.
Share Repurchases and Dividends
During the years ended December 31, 2013, 2012 and 2011, 25.7 million, 51.0 million and 40.3 million shares, respectively,
were repurchased for $393.6 million, $771.9 million and $800.0 million, respectively, excluding commissions, at an average cost
of $15.29, $15.12 and $19.83 per share, respectively.
On February 11, 2014, the Board of Directors authorized $500 million of common stock repurchases through June 30, 2015.
Our Board of Directors declared quarterly cash dividends of $0.125 per common share in all four quarters of 2013, representing
$277.2 million in total dividends. During 2012, our Board of Directors declared a quarterly cash dividend of $0.125 per common
share in the fourth quarter and $0.10 per common share in the first three quarters representing $254.2 million in total dividends.
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. These amounts were paid to
shareholders of record in the respective quarter the dividend was declared, except for the September 2012 and 2011 declared
dividends, which were paid in October 2012 and 2011, respectively.
On February 21, 2014, our Board of Directors declared a quarterly cash dividend of $0.125 per common share payable on
March 31, 2014.
Debt Service Requirements
Our 2014 and future debt service requirements will include payments on any future borrowings under our commercial paper
program and interest payments on all outstanding indebtedness. In March 2013, our floating rate notes of $300.0 million matured
and were repaid from our cash balances, including amounts from proceeds from the issuance of our fixed rate notes due 2015 and
2017. In February 2014, our 2014 Notes will mature, and we plan to use our existing cash to fund this repayment. Overall, we
have the ability to use cash, including cash generated from operations, proceeds from the sale of our non-settlement related
investments, and our Revolving Credit Facility, and could also access commercial paper and other financing sources to meet our
debt obligations as they come due.
Our ability to continue to grow the business, make investments in our business, make acquisitions, return capital to shareholders,
including through dividends and share repurchases, 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 Part II, Item 8, Financial Statements and Supplementary
Data, Note 12, "Operating Lease Commitments," 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.