Western Union 2015 Annual Report Download - page 126

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• Our Business Solutions business is heavily dependent on global trade. A downturn in global trade or the failure of long-
term import growth rates to return to historic levels could have an adverse effect on our business, financial condition, results
of operations, cash flows, and our Cash Management Strategies. Additionally, as customer hedging activity in our Business
Solutions business generally varies with currency volatility, we have experienced and may experience in the future lower
foreign exchange revenues in periods of lower currency volatility.
• Our exposure to receivables from our agents, consumers and businesses could impact us. For more information on this risk,
see risk factor, "We face credit, liquidity and fraud risks from our agents, consumers and businesses that could adversely
affect our business, financial condition, results of operations, and cash flows."
• The market value of the securities in our investment portfolio may substantially decline. The impact of that decline in value
may adversely affect our liquidity, financial condition, and results of operations.
• The counterparties to the derivative financial instruments that we use to reduce our exposure to various market risks,
including changes in interest rates and foreign exchange rates, may fail to honor their obligations, which could expose us
to risks we had sought to mitigate. This includes the exposure generated by the Business Solutions business, where we write
derivative contracts to our customers as part of our cross-currency payments business, and we typically hedge the net
exposure through offsetting contracts with established financial institution counterparties. That failure could have an adverse
effect on our financial condition, results of operations, and cash flows.
• We may be unable to refinance our existing indebtedness as it becomes due or we may have to refinance on unfavorable
terms, which could require us to dedicate a substantial portion of our cash flow from operations to payments on our debt,
thereby reducing funds available for working capital, capital expenditures, acquisitions, share repurchases, dividends, and
other purposes.
• Our revolving credit facility with a consortium of banks is one source for funding liquidity needs and also backs our
commercial paper program. If any of the banks participating in our credit facility fails to fulfill its lending commitment to
us, our short-term liquidity and ability to support borrowings under our commercial paper program could be adversely
affected.
• The third-party service providers on whom we depend may experience difficulties in their businesses, which may impair
their ability to provide services to us and have a potential impact on our own business. The impact of a change or temporary
stoppage of services may have an adverse effect on our business, financial condition, results of operations, and cash flows.
• Banks upon which we rely to conduct our business could fail or be unable to satisfy their obligations to us. This could lead
to our inability to access funds and/or credit losses for us and could adversely impact our ability to conduct our business.
• Insurers we utilize to mitigate our exposures to litigation and other risks may be unable to or refuse to satisfy their obligations
to us, which could have an adverse effect on our liquidity, financial condition, results of operations, and cash flows.
• If market disruption and volatility occurs, we could experience difficulty in accessing capital on favorable terms and our
business, financial condition, results of operations, and cash flows could be adversely impacted.
201 FORM 10-K
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