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b

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2024

 

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

 

Commission File Number: 001-32903

img156427762_0.jpg 

THE WESTERN UNION COMPANY

(Exact name of registrant as specified in its charter)

 

 

 

Delaware
(State or Other Jurisdiction of
Incorporation or Organization)

 

20-4531180
(I.R.S. Employer
Identification No.)

 

7001 EAST BELLEVIEW AVENUE
Denver, Colorado 80237
(Address of principal executive offices)

 

 

Registrant’s telephone number, including area code: (866) 405-5012

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of each class

Trading symbol

Name of each exchange on which registered

Common Stock, $0.01 Par Value

WU

The New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b‑2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer☐ Non-accelerated filer ☐

Smaller reporting company Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No

As of July 25, 2024, 337,778,981 shares of the registrant’s common stock were outstanding.

 

 

 

 

 


THE WESTERN UNION COMPANY

INDEX

 

PAGE
NUMBER

PART I FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

3

 

 

 

 

Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023

3

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023

4

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023

5

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023

6

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023

8

 

 

 

 

Notes to Condensed Consolidated Financial Statements

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

43

 

 

 

Item 4.

Controls and Procedures

43

 

 

 

 

Review Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)

44

 

 

 

PART II OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

45

 

 

 

Item 1A.

Risk Factors

45

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

45

 

 

 

Item 3.

Defaults Upon Senior Securities

45

 

 

 

Item 4.

Mine Safety Disclosures

45

 

 

 

Item 5.

Other Information

45

 

 

 

Item 6.

Exhibits

46

 

 

2


PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in millions, except per share amounts)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues

 

$

1,066.4

 

 

$

1,170.0

 

 

$

2,115.5

 

 

$

2,206.9

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

 

663.9

 

 

 

698.9

 

 

 

1,305.2

 

 

 

1,328.4

 

Selling, general, and administrative

 

 

211.8

 

 

 

228.5

 

 

 

427.5

 

 

 

431.2

 

Total expenses

 

 

875.7

 

 

 

927.4

 

 

 

1,732.7

 

 

 

1,759.6

 

Operating income

 

 

190.7

 

 

 

242.6

 

 

 

382.8

 

 

 

447.3

 

Other income/(expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

3.7

 

 

 

4.2

 

 

 

6.8

 

 

 

7.4

 

Interest expense

 

 

(31.1

)

 

 

(27.0

)

 

 

(57.2

)

 

 

(52.0

)

Other income/(expense), net

 

 

1.9

 

 

 

(3.4

)

 

 

2.8

 

 

 

(5.3

)

Total other expense, net

 

 

(25.5

)

 

 

(26.2

)

 

 

(47.6

)

 

 

(49.9

)

Income before income taxes

 

 

165.2

 

 

 

216.4

 

 

 

335.2

 

 

 

397.4

 

Provision for income taxes

 

 

24.2

 

 

 

40.2

 

 

 

51.5

 

 

 

69.4

 

Net income

 

$

141.0

 

 

$

176.2

 

 

$

283.7

 

 

$

328.0

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.42

 

 

$

0.47

 

 

$

0.83

 

 

$

0.88

 

Diluted

 

$

0.41

 

 

$

0.47

 

 

$

0.83

 

 

$

0.87

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

338.6

 

 

 

375.0

 

 

 

341.5

 

 

 

374.7

 

Diluted

 

 

339.6

 

 

 

375.6

 

 

 

342.6

 

 

 

375.6

 

 

See Notes to Condensed Consolidated Financial Statements.

3


THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in millions)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income

 

$

141.0

 

 

$

176.2

 

 

$

283.7

 

 

$

328.0

 

Other comprehensive income, net of reclassifications and tax (Note 9):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains/(losses) on investment securities

 

 

(1.2

)

 

 

(11.4

)

 

 

(5.8

)

 

 

8.6

 

Unrealized gains/(losses) on hedging activities

 

 

0.2

 

 

 

(10.8

)

 

 

11.0

 

 

 

(21.1

)

Total other comprehensive income/(loss)

 

 

(1.0

)

 

 

(22.2

)

 

 

5.2

 

 

 

(12.5

)

Comprehensive income

 

$

140.0

 

 

$

154.0

 

 

$

288.9

 

 

$

315.5

 

 

See Notes to Condensed Consolidated Financial Statements.

4


THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except per share amounts)

 

 

June 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,033.0

 

 

$

1,268.6

 

Settlement assets

 

 

3,648.3

 

 

 

3,687.0

 

Property and equipment, net of accumulated depreciation of $440.5 and $438.8, respectively

 

 

82.6

 

 

 

91.4

 

Goodwill

 

 

2,056.4

 

 

 

2,034.6

 

Other intangible assets, net of accumulated amortization of $652.3 and $685.9, respectively

 

 

347.0

 

 

 

380.2

 

Other assets

 

 

804.0

 

 

 

737.0

 

Total assets

 

$

7,971.3

 

 

$

8,198.8

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

376.5

 

 

$

453.0

 

Settlement obligations

 

 

3,648.3

 

 

 

3,687.0

 

Income taxes payable

 

 

454.0

 

 

 

659.5

 

Deferred tax liability, net

 

 

144.0

 

 

 

147.6

 

Borrowings

 

 

2,635.8

 

 

 

2,504.6

 

Other liabilities

 

 

271.9

 

 

 

268.1

 

Total liabilities

 

 

7,530.5

 

 

 

7,719.8

 

 

 

 

 

 

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $1.00 par value; 10 shares authorized; no shares issued

 

 

 

 

 

 

Common stock, $0.01 par value; 2,000 shares authorized; 337.8 shares and 350.5 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

 

 

3.4

 

 

 

3.5

 

Capital surplus

 

 

1,050.8

 

 

 

1,031.9

 

Accumulated deficit

 

 

(451.3

)

 

 

(389.1

)

Accumulated other comprehensive loss

 

 

(162.1

)

 

 

(167.3

)

Total stockholders' equity

 

 

440.8

 

 

 

479.0

 

Total liabilities and stockholders' equity

 

$

7,971.3

 

 

$

8,198.8

 

 

See Notes to Condensed Consolidated Financial Statements.

5


THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)

 

 

Six Months Ended

 

 

June 30,

 

 

2024

 

 

2023

 

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

283.7

 

 

$

328.0

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

18.7

 

 

 

20.1

 

Amortization

 

 

74.0

 

 

 

72.4

 

Other non-cash items, net

 

 

50.4

 

 

 

35.6

 

Decrease in cash, excluding the effects of acquisitions and divestitures, resulting from changes in:

 

 

 

 

 

 

Other assets

 

 

(72.9

)

 

 

(52.7

)

Accounts payable and accrued liabilities

 

 

(75.3

)

 

 

(52.0

)

Income taxes payable

 

 

(208.8

)

 

 

(86.4

)

Other liabilities

 

 

(9.6

)

 

 

(1.0

)

Net cash provided by operating activities

 

 

60.2

 

 

 

264.0

 

Cash flows from investing activities

 

 

 

 

 

 

Payments for capitalized contract costs

 

 

(5.2

)

 

 

(32.9

)

Payments for internal use software

 

 

(43.2

)

 

 

(46.0

)

Purchases of property and equipment

 

 

(16.1

)

 

 

(11.2

)

Purchases of settlement investments

 

 

(251.6

)

 

 

(198.3

)

Proceeds from the sale of settlement investments

 

 

171.8

 

 

 

66.8

 

Maturities of settlement investments

 

 

96.9

 

 

 

54.3

 

Proceeds from the sale of non-settlement investments

 

 

 

 

 

100.0

 

Other investing activities

 

 

(21.0

)

 

 

2.2

 

Net cash used in investing activities

 

 

(68.4

)

 

 

(65.1

)

Cash flows from financing activities

 

 

 

 

 

 

Cash dividends and dividend equivalents paid (Note 9)

 

 

(162.3

)

 

 

(178.7

)

Common stock repurchased (Note 9)

 

 

(180.8

)

 

 

(6.0

)

Net proceeds from commercial paper

 

 

129.9

 

 

 

494.6

 

Principal payments on borrowings

 

 

 

 

 

(300.0

)

Proceeds from exercise of options

 

 

 

 

 

0.3

 

Net change in settlement obligations

 

 

(78.5

)

 

 

(619.8

)

Other financing activities

 

 

(0.9

)

 

 

0.1

 

Net cash used in financing activities

 

 

(292.6

)

 

 

(609.5

)

Net change in cash and cash equivalents, including settlement, and restricted cash

 

 

(300.8

)

 

 

(410.6

)

Cash and cash equivalents, including settlement, and restricted cash at beginning of period

 

 

1,786.2

 

 

 

2,040.7

 

Cash and cash equivalents, including settlement, and restricted cash at end of period

 

$

1,485.4

 

 

$

1,630.1

 

 

See Notes to Condensed Consolidated Financial Statements.

 

 

 

6


THE WESTERN UNION COMPANY

SUPPLEMENTAL CASH FLOW INFORMATION

(Unaudited)

(in millions)

 

 

 

June 30,

 

 

 

2024

 

 

2023

 

Reconciliation of balance sheet cash and cash equivalents to cash flows:

 

 

 

 

 

 

Cash and cash equivalents on balance sheet

 

$

1,033.0

 

 

$

1,585.9

 

Settlement cash and cash equivalents (Note 8)

 

 

434.7

 

 

 

11.1

 

Restricted cash in Other assets

 

 

17.7

 

 

 

33.1

 

Cash and cash equivalents, including settlement, and restricted cash at end of period

 

$

1,485.4

 

 

$

1,630.1

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2024

 

 

2023

 

Supplemental cash flow information:

 

 

 

 

 

 

Interest paid

 

$

55.6

 

 

$

50.9

 

Income taxes paid

 

$

262.7

 

 

$

162.3

 

 

See Notes to Condensed Consolidated Financial Statements.

7


THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

Common Stock

 

 

Capital

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

Shares

 

 

Amount

 

 

Surplus

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance, December 31, 2023

 

 

350.5

 

 

$

3.5

 

 

$

1,031.9

 

 

$

(389.1

)

 

$

(167.3

)

 

$

479.0

 

Net income

 

 

 

 

 

 

 

 

 

 

 

142.7

 

 

 

 

 

 

142.7

 

Stock-based compensation

 

 

 

 

 

 

 

 

8.7

 

 

 

 

 

 

 

 

 

8.7

 

Common stock dividends and dividend equivalents declared ($0.235 per share)

 

 

 

 

 

 

 

 

 

 

 

(81.9

)

 

 

 

 

 

(81.9

)

Repurchase and retirement of common shares

 

 

(12.3

)

 

 

(0.1

)

 

 

 

 

 

(156.7

)

 

 

 

 

 

(156.8

)

Shares issued under stock-based compensation plans

 

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.2

 

 

 

6.2

 

Balance, March 31, 2024

 

 

339.6

 

 

$

3.4

 

 

$

1,040.6

 

 

$

(485.0

)

 

$

(161.1

)

 

$

397.9

 

Net income

 

 

 

 

 

 

 

 

 

 

 

141.0

 

 

 

 

 

 

141.0

 

Stock-based compensation

 

 

 

 

 

 

 

 

10.2

 

 

 

 

 

 

 

 

 

10.2

 

Common stock dividends and dividend equivalents declared ($0.235 per share)

 

 

 

 

 

 

 

 

 

 

 

(80.4

)

 

 

 

 

 

(80.4

)

Repurchase and retirement of common shares

 

 

(2.0

)

 

 

 

 

 

 

 

 

(26.9

)

 

 

 

 

 

(26.9

)

Shares issued under stock-based compensation plans

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.0

)

 

 

(1.0

)

Balance, June 30, 2024

 

 

337.8

 

 

$

3.4

 

 

$

1,050.8

 

 

$

(451.3

)

 

$

(162.1

)

 

$

440.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

Common Stock

 

 

Capital

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

Shares

 

 

Amount

 

 

Surplus

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance, December 31, 2022

 

 

373.5

 

 

$

3.7

 

 

$

995.9

 

 

$

(353.9

)

 

$

(167.9

)

 

$

477.8

 

Net income

 

 

 

 

 

 

 

 

 

 

 

151.8

 

 

 

 

 

 

151.8

 

Stock-based compensation

 

 

 

 

 

 

 

 

8.0

 

 

 

 

 

 

 

 

 

8.0

 

Common stock dividends and dividend equivalents declared ($0.235 per share)

 

 

 

 

 

 

 

 

 

 

 

(88.6

)

 

 

 

 

 

(88.6

)

Repurchase and retirement of common shares

 

 

(0.5

)

 

 

(0.1

)

 

 

 

 

 

(6.1

)

 

 

 

 

 

(6.2

)

Shares issued under stock-based compensation plans

 

 

1.4

 

 

 

0.1

 

 

 

0.2

 

 

 

 

 

 

 

 

 

0.3

 

Other comprehensive income (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9.7

 

 

 

9.7

 

Balance, March 31, 2023

 

 

374.4

 

 

$

3.7

 

 

$

1,004.1

 

 

$

(296.8

)

 

$

(158.2

)

 

$

552.8

 

Net income

 

 

 

 

 

 

 

 

 

 

 

176.2

 

 

 

 

 

 

176.2

 

Stock-based compensation

 

 

 

 

 

 

 

 

9.5

 

 

 

 

 

 

 

 

 

9.5

 

Common stock dividends and dividend equivalents declared ($0.235 per share)

 

 

 

 

 

 

 

 

 

 

 

(89.5

)

 

 

 

 

 

(89.5

)

Repurchase and retirement of common shares

 

 

 

 

 

 

 

 

 

 

 

(0.3

)

 

 

 

 

 

(0.3

)

Shares issued under stock-based compensation plans

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22.2

)

 

 

(22.2

)

Balance, June 30, 2023

 

 

374.5

 

 

$

3.7

 

 

$

1,013.6

 

 

$

(210.4

)

 

$

(180.4

)

 

$

626.5

 

 

See Notes to Condensed Consolidated Financial Statements.

8


THE WESTERN UNION COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Business and Basis of Presentation

Business

The Western Union Company (“Western Union” or the “Company”) is a leader in cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments with fast, reliable, and convenient ways to send money and make payments around the world. The Western Union® brand is globally recognized. The Company’s services are available through a network of agent locations in more than 200 countries and territories and also through money transfer transactions conducted and funded through websites and mobile applications marketed under the Company’s brands (“Branded Digital”) and transactions initiated on internet and mobile applications hosted by the Company’s third-party white label partners. Each location in the Company’s agent network is capable of providing one or more of the Company’s services.

The Western Union business consists of the following operating segments:

Consumer Money Transfer - The Consumer Money Transfer segment facilitates money transfers, which are primarily sent from retail agent locations worldwide or through websites and mobile devices. The Company’s money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.
Consumer Services - The Consumer Services segment includes the Company’s bill payment services which facilitate payments for consumers, businesses, and other organizations, as well as the Company’s money order services, retail foreign exchange services, prepaid cards, lending partnerships, digital wallets, and media network.

See Note 14 for further information regarding the Company’s segments.

On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business, and the final closing for this transaction occurred on July 1, 2023. See Note 4 for further information regarding this transaction.

There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these assets are located. However, there are generally no limitations on the use of these assets within those countries. Additionally, the Company must meet minimum capital requirements in some countries in order to maintain operating licenses. As of December 31, 2023, the Company's restricted net assets associated with these asset limitations and minimum capital requirements totaled approximately $440 million.

Various aspects of the Company’s services and businesses are subject to United States federal, state, and local regulation, as well as regulation by foreign jurisdictions, including certain banking and other financial services regulations.

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited and were prepared in accordance with the instructions for Form 10‑Q and Article 10 of Regulation S-X. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted.

The unaudited condensed consolidated financial statements in this quarterly report are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts have been eliminated as of June 30, 2024 and December 31, 2023 and for all periods presented.

9


Table of Contents

THE WESTERN UNION COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

In the opinion of management, these condensed consolidated financial statements include all the normal recurring adjustments necessary to fairly present the Company’s condensed consolidated results of operations, financial position, and cash flows as of June 30, 2024 and for all periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements within the Company’s Annual Report on Form 10‑K for the year ended December 31, 2023.

Consistent with industry practice, the accompanying Condensed Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board issued a new accounting pronouncement regarding segment reporting. The standard requires that public entities expand reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The Company is required to adopt the new standard for its 2024 annual reporting and effective January 1, 2025 for its interim reporting, using a retrospective approach. Management is currently evaluating the potential impact that the adoption of this standard will have on the Company’s disclosures.

In December 2023, the Financial Accounting Standards Board issued a new accounting pronouncement regarding income tax disclosures. The standard requires that public entities disclose more consistent and detailed categories in their statutory to effective income tax rate reconciliations and further disaggregate income taxes paid by jurisdiction. The Company is required to adopt the new standard for its 2025 annual reporting, using a prospective approach. Management is currently evaluating the potential impact that the adoption of this standard will have on the Company’s disclosures.

2. Revenue

The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, pay-in and pay-out method, the principal amount sent, and the difference between the exchange rate set by the Company to the customer and a rate available in the wholesale foreign exchange market, when the money transfer involves different send and receive currencies. The Company also offers other consumer services, for which revenue is impacted by similar factors. The Company analyzes its different services individually to determine the appropriate basis for revenue recognition. For additional information on the Company's different services, refer to the Company’s consolidated financial statements within the Company’s Annual Report on Form 10‑K for the year ended December 31, 2023.

Revenues from consumer money transfers are included in the Company’s Consumer Money Transfer segment and revenues from consumer bill payment and other services are included in the Company’s Consumer Services segment. Revenues from business-to-business foreign exchange and payment services were included in the Company’s Business Solutions segment. See Note 14 for further information on the Company’s segments.

The substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three and six months

10


Table of Contents

THE WESTERN UNION COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

ended June 30, 2024 and 2023 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.

 

Three Months Ended June 30, 2024

 

 

Consumer

 

 

 

 

 

 

 

 

Money

 

 

Consumer

 

 

 

 

 

Transfer

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

North America

 

$

376.3

 

 

$

37.2

 

 

$

413.5

 

Europe and CIS

 

 

233.9

 

 

 

16.9

 

 

 

250.8

 

Middle East, Africa, and South Asia

 

 

168.5

 

 

 

0.1

 

 

 

168.6

 

Latin America and the Caribbean

 

 

107.6

 

 

 

30.4

 

 

 

138.0

 

Asia Pacific

 

 

49.8

 

 

 

 

 

 

49.8

 

Revenues from contracts with customers

 

$

936.1

 

 

$

84.6

 

 

$

1,020.7

 

Other revenues (a)

 

 

28.9

 

 

 

16.8

 

 

 

45.7

 

Total revenues

 

$

965.0

 

 

$

101.4

 

 

$

1,066.4

 

 

 

Three Months Ended June 30, 2023

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

 

 

 

Transfer

 

 

Services(b)

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

372.3

 

 

$

 

 

$

33.8

 

 

$

406.1

 

Europe and CIS

 

 

246.0

 

 

 

6.5

 

 

 

4.7

 

 

 

257.2

 

Middle East, Africa, and South Asia

 

 

264.8

 

 

 

 

 

 

0.1

 

 

 

264.9

 

Latin America and the Caribbean

 

 

99.8

 

 

 

 

 

 

27.3

 

 

 

127.1

 

Asia Pacific

 

 

54.8

 

 

 

 

 

 

 

 

 

54.8

 

Revenues from contracts with customers

 

$

1,037.7

 

 

$

6.5

 

 

$

65.9

 

 

$

1,110.1

 

Other revenues (a)

 

 

34.5

 

 

 

7.8

 

 

 

17.6

 

 

 

59.9

 

Total revenues

 

$

1,072.2

 

 

$

14.3

 

 

$

83.5

 

 

$

1,170.0

 

 

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

Money

 

 

Consumer

 

 

 

 

 

Transfer

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

North America

 

$

730.8

 

 

$