Western Union 2014 Annual Report Download - page 201

2014 FORM 10-K
63
Earnings per share
During the years ended December 31, 2014, 2013 and 2012, basic earnings per share were $1.60, $1.43 and $1.70, respectively,
and diluted earnings per share were $1.59, $1.43 and $1.69, respectively. Outstanding options to purchase Western Union stock
and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential
dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested.
As of December 31, 2014, 2013 and 2012, there were 15.5 million, 21.2 million and 23.3 million, respectively, of outstanding
options to purchase shares of Western Union stock excluded from the diluted earnings per share calculation under the treasury
stock method as their effect was anti-dilutive.
Fluctuations in our earnings per share for the years ended December 31, 2014 and 2013 compared to the prior year are a result
of the previously described factors impacting net income and lower weighted-average shares outstanding. For both the years ended
December 31, 2014 and 2013 compared to the prior year, the lower number of shares outstanding was due to stock repurchases
exceeding stock issuances related to the Company's stock compensation programs.
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 and services not considered part of these
segments are categorized as "Other."
The business segment measurements provided to, and evaluated by, our chief operating decision maker 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."
• 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, 2014, 2013 and 2012.
Year Ended December 31,
2014 2013 2012
Consumer-to-Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80% 80% 81%
Consumer-to-Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11% 11% 11%
Business Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7% 7% 6%
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2% 2% 2%
100% 100% 100%