Western Union 2013 Annual Report Download - page 252

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
142
17. Segments
As previously described in Note 1, the Company classifies its businesses into three segments: Consumer-to-Consumer,
Consumer-to-Business and Business Solutions. Operating segments are defined as components of an enterprise that engage in
business activities, about which separate financial information is available that is evaluated regularly by the Company's CODM
in deciding where to allocate resources and in assessing performance.
The Consumer-to-Consumer operating segment facilitates money transfers between two consumers. The Company's 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, including related transactions that can be initiated through websites and account based
money transfers. The segment includes five geographic regions whose functions are limited to generating, managing and
maintaining agent relationships and localized marketing activities and also includes the Company's online money transfer service
conducted through Western Union branded websites ("westernunion.com"). By means of common processes and systems, these
regions and westernunion.com create an interconnected network for consumer transactions, thereby constituting one global
Consumer-to-Consumer money transfer business and one operating segment.
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 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.
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.
The Company's reportable segments are reviewed separately below because each reportable segment represents a strategic
business unit that offers different products and serves different markets. The business segment measurements provided to, and
evaluated by, the Company's 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 review and closing of acquisitions are included in "Other."
• The Company incurred restructuring and related expenses of $46.8 million during the year ended December 31, 2011
which were not allocated to the Company's segments. While these items were identifiable to the Company's 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 Note 3.
• All items not included in operating income are excluded from the segments.