Western Union 2014 Annual Report Download - page 283

2014 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
145
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 Chief
Operating Decision Maker ("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. 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 include the Company's money
order and other 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."
• All items not included in operating income are excluded from the segments.