Western Union 2015 Annual Report Download - page 132

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Acquisitions and integration of new businesses create risks and may affect operating results.
We have acquired and may acquire businesses both inside and outside the United States. As of December 31, 2015, we had
$3,163.8 million of goodwill comprising approximately 33% of our total assets, including $1,950.1 million of goodwill in our
Consumer-to-Consumer reporting unit and $996.0 million of goodwill in our Business Solutions reporting unit. If we or our
reporting units do not generate operating cash flows at levels consistent with our expectations, we may be required to write
down the goodwill on our balance sheet, which could have a significant adverse impact on our financial condition and results
of operations in future periods. See the "Critical Accounting Policies and Estimates" discussion in Part II, Item 7, Management's
Discussion and Analysis of Financial Condition and Results of Operation, for more detail.
In addition to the risk of goodwill impairment, the acquisition and integration of businesses involve a number of other risks.
The core risks involve valuation (negotiating a fair price for the business based on inherently limited due diligence) and integration
(managing the complex process of integrating the acquired company's people, products and services, technology and other assets
in an effort to realize the projected value of the acquired company and the projected synergies of the acquisition). In addition,
the need in some cases to improve regulatory compliance standards is another risk associated with acquiring companies, see
"Risks Related to Our Regulatory and Litigation Environment" below. Acquisitions often involve additional or increased risks
including, for example:
• realizing the anticipated financial benefits from these acquisitions and where necessary, improving internal controls of these
acquired businesses;
• managing geographically separated organizations, systems and facilities;
• managing multi-jurisdictional operating, tax and financing structures;
• integrating personnel with diverse business backgrounds and organizational cultures;
• integrating the acquired technologies into our Company;
• complying with regulatory requirements, including those particular to the industry and jurisdiction of the acquired business;
• enforcing intellectual property rights in some foreign countries;
• entering new markets with the services of the acquired businesses; and
• general economic and political conditions, including legal and other barriers to cross-border investment in general, or by
United States companies in particular.
Integrating operations could cause an interruption of, or divert resources from, one or more of our businesses and could
result in the loss of key personnel. The diversion of management's attention and any delays or difficulties encountered in
connection with an acquisition and the integration of the acquired company's operations could have an adverse effect on our
business, financial condition, results of operations, and cash flows.
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