Western Union 2015 Annual Report Download - page 231

THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
129
Cash Dividends Paid
Cash dividends paid for the years ended December 31, 2015, 2014 and 2013 were $316.5 million, $265.2 million and $277.2
million, respectively. Dividends per share declared quarterly by the Company's Board of Directors during the years ended 2015,
2014 and 2013 were as follows:
Year Q1 Q2 Q3 Q4
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.155 $ 0.155 $ 0.155 $ 0.155
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.125 $ 0.125 $ 0.125 $ 0.125
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.125 $ 0.125 $ 0.125 $ 0.125
On February 9, 2016, the Company's Board of Directors declared a quarterly cash dividend of $0.16 per common share payable
on March 31, 2016.
Share Repurchases
During the years ended December 31, 2015, 2014 and 2013, 25.1 million, 29.3 million and 25.7 million shares, respectively,
have been repurchased for $500.0 million, $488.1 million and $393.6 million, respectively, excluding commissions, at an average
cost of $19.96, $16.63 and $15.29 per share, respectively. These amounts represent shares authorized by the Board of Directors
for repurchase under the publicly announced authorizations. As of December 31, 2015, $711.9 million remained available under
the share repurchase authorization approved by the Company's Board of Directors through December 31, 2017. 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.
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 British pound, Canadian dollar, Australian dollar, Swiss franc, and other currencies, related to forecasted
money transfer revenues and on money transfer settlement assets and obligations as well as on certain foreign currency denominated
cash and other asset and liability positions. 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.
201 FORM 10 K
5 -