Western Union 2013 Annual Report Download - page 208

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
98
The following table provides the calculation of diluted weighted-average shares outstanding (in millions):
For the Year Ended December 31,
2013 2012 2011
Basic weighted-average shares outstanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556.6 604.9 630.6
Common stock equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 2.5 3.6
Diluted weighted-average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 559.7 607.4 634.2
Fair Value Measurements
The Company determines the fair values of its assets and liabilities that are recognized or disclosed at fair value in accordance
with the hierarchy described below. The fair values of the assets and liabilities held in the Company's defined benefit plan trust
("Trust") are recognized or disclosed utilizing the same hierarchy. The following three levels of inputs may be used to measure
fair value:
• Level 1: Quoted prices in active markets for identical assets or liabilities.
• Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices
in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities. For most of these assets, the Company utilizes pricing services that
use multiple prices as inputs to determine daily market values. In addition, the Trust has other investments that fall within
Level 2 that are valued at net asset value which is not quoted on an active market; however, the unit price is based on
underlying investments which are traded on an active market. Further, these investments have no redemption restrictions,
and redemptions can generally be done monthly or quarterly with required notice ranging from three to 60 days.
• Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value
of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires
significant management judgment or estimation. The Company has Level 3 assets that are recognized and disclosed at
fair value on a non-recurring basis related to the Company's business combinations, where the values of the intangible
assets and goodwill acquired in a purchase are derived utilizing one of the three recognized approaches: the market
approach, the income approach or the cost approach.
Carrying amounts for many of the Company's financial instruments, including cash and cash equivalents, settlement cash and
cash equivalents, and settlement receivables and settlement obligations approximate fair value due to their short maturities.
Investment securities and derivative financial instruments are carried at fair value and included in Note 8. Fixed rate notes are
carried at their original issuance values as adjusted over time to accrete that value to par, except for portions of notes hedged by
interest rate swap agreements as disclosed in Note 14. The fair values of fixed rate notes are also disclosed in Note 8 and are based
on market quotations. For more information on the fair value of financial instruments, see Note 8.
The fair values of non-financial assets and liabilities related to the Company's business combinations are disclosed in Note 4.
The fair values of financial assets and liabilities related to the Trust are disclosed in Note 11.