Western Union 2014 Annual Report Download - page 268

2014 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
130
Cash Dividends Paid
Cash dividends paid for the years ended December 31, 2014, 2013 and 2012 were $265.2 million, $277.2 million and $254.2
million, respectively. Dividends per share declared quarterly by the Company's Board of Directors during the years ended 2014,
2013 and 2012 were as follows:
Year Q1 Q2 Q3 Q4
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.125 $ 0.125 $ 0.125 $ 0.125
2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.125 $ 0.125 $ 0.125 $ 0.125
2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.10 $ 0.10 $ 0.10 $ 0.125
On February 10, 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.155 per common share
payable on March 31, 2015.
Share Repurchases
During the years ended December 31, 2014, 2013 and 2012, 29.3 million, 25.7 million and 51.0 million shares, respectively,
have been repurchased for $488.1 million, $393.6 million and $771.9 million, respectively, excluding commissions, at an average
cost of $16.63, $15.29 and $15.12 per share, respectively. These amounts represent shares authorized by the Board of Directors
for repurchase under the publicly announced authorizations. As of December 31, 2014, $11.9 million remained available under
the share repurchase authorization approved by the Company's Board of Directors through June 30, 2015. The amounts included
in the "Common stock repurchased" line in the Company's Consolidated Statements of Cash Flows represent both shares authorized
by the Board of Directors for repurchase under the publicly announced authorization, described earlier, as well as shares withheld
from employees to cover tax withholding obligations on restricted stock units that have vested.
On February 10, 2015, the Company's Board of Directors authorized $1.2 billion of common stock repurchases through
December 31, 2017.
14. Derivatives
The Company is exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the euro,
and to a lesser degree the Canadian dollar, British pound, Australian dollar, Swiss franc, and other currencies, related to forecasted
money transfer revenues and on money transfer settlement assets and obligations. The Company is also exposed to risk from
derivative contracts written to its customers arising from its cross-currency Business Solutions payments operations. Additionally,
the Company is exposed to interest rate risk related to changes in market rates both prior to and subsequent to the issuance of debt.
The Company uses derivatives to (a) minimize its exposures related to changes in foreign currency exchange rates and interest
rates and (b) facilitate cross-currency Business Solutions payments by writing derivatives to customers.
The Company executes derivatives with established financial institutions, with the substantial majority of these financial
institutions having credit ratings of "A-" or better from a major credit rating agency. The Company also writes Business Solutions
derivatives mostly with small and medium size enterprises. The primary credit risk inherent in derivative agreements represents
the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. The Company performs a
review of the credit risk of these counterparties at the inception of the contract and on an ongoing basis. The Company also monitors
the concentration of its contracts with any individual counterparty. The Company anticipates that the counterparties will be able
to fully satisfy their obligations under the agreements, but takes action when doubt arises about the counterparties' ability to perform.
These actions may include requiring Business Solutions customers to post or increase collateral, and for all counterparties, the
possible termination of the related contracts. The Company's hedged foreign currency exposures are in liquid currencies;
consequently, there is minimal risk that appropriate derivatives to maintain the hedging program would not be available in the
future.