Western Union 2013 Annual Report Download - page 206

2013 FORM 10-K
96
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Formation of the Entity and Basis of Presentation
The Western Union Company ("Western Union" or the "Company") is a leader in global money movement and payment
services, providing people and businesses with fast, reliable and convenient ways to send money and make payments around the
world. The Western Union® brand is globally recognized. The Company's services are primarily available through a network of
agent locations in more than 200 countries and territories. Each location in the Company's agent network is capable of providing
one or more of the Company's services.
The Western Union business consists of the following segments:
• Consumer-to-Consumer - The Consumer-to-Consumer operating segment facilitates money transfers between two
consumers, primarily through a network of third-party agents. The Company's multi-currency, real-time money transfer
service is viewed by the Company as one interconnected global network where a money transfer can be sent from one
location to another, around the world. This service is available for international cross-border transfers - that is, the transfer
of funds from one country to another - and, in certain countries, intra-country transfers - that is, money transfers from
one location to another in the same country. This segment also includes money transfer transactions that can be initiated
through websites and account based money transfers.
• Consumer-to-Business - The Consumer-to-Business operating segment facilitates bill payments from consumers to
businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service
providers, government agencies and other businesses. The significant majority of the segment's revenue was generated
in the United States during all periods presented, with the remainder primarily generated in Argentina.
• Business Solutions - The Business Solutions operating segment facilitates payment and foreign exchange solutions,
primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and
individuals. The majority of the segment's business relates to exchanges of currency at the spot rate which enables
customers to make cross-currency payments. In addition, in certain countries, the Company writes foreign currency
forward and option contracts for customers to facilitate future payments. Travelex Global Business Payments ("TGBP"),
which was acquired in November 2011 (see Note 4), is included in this segment.
All businesses that have not been classified in the above segments are reported as "Other" and primarily include the Company's
money order, prepaid and other businesses and services, in addition to costs for the review and closing of acquisitions.
There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these
assets are located. However, there are generally no limitations on the use of these assets within those countries. Additionally, the
Company must meet minimum capital requirements in some countries in order to maintain operating licenses. As of December 31,
2013, the amount of net assets subject to these limitations totaled approximately $335 million.
Various aspects of the Company's services and businesses are subject to United States federal, state and local regulation, as
well as regulation by foreign jurisdictions, including certain banking and other financial services regulations.