Western Union Reports First Quarter Results

  Western Union Reports First Quarter Results

       Solid business performance with continued strong digital growth

                     Full year financial outlook affirmed

               More than $300 million returned to shareholders

Business Wire

ENGLEWOOD, Colo. -- May 2, 2017

The Western Union Company (NYSE: WU) today reported first quarter financial
results and affirmed its outlook for 2017, which was previously provided on
February 9, 2017.

In the first quarter the Company generated revenue of $1.3 billion, which was
flat compared to the prior year, or increased 3% on a constant currency basis.

Earnings per share of $0.33 includes a ($0.02) impact from expenses associated
with the WU Way business transformation program. Excluding the WU Way related
expenses, earnings per share of $0.35 compares to $0.37 in the same period
last year. The decline in earnings per share in the current quarter primarily
resulted from the tax impact of changes in the internal ownership structure of
certain of the Company’s international subsidiaries. These changes are
expected to result in lower taxes of a comparable amount for the remainder of
the year.

“We are pleased with the start to the year, as our money transfer business
delivered solid performance, led by digital,” said President and Chief
Executive Officer Hikmet Ersek. “Westernunion.com money transfer transactions
increased 27 percent, and our consumer bill payments business produced very
good growth.”

“We also further expanded our digital network. We now have online transaction
sites in 40 countries, including across the European Union, and mobile apps in
18 markets, allowing consumers to send to over 200 countries and territories
around the world,” Ersek added.

Executive Vice President and Chief Financial Officer Raj Agrawal stated, “The
first quarter results have us on track to deliver our full year financial
outlook. We are executing our business plans, while continuing to implement
the WU Way business transformation program. We also returned more than $300
million to our shareholders in the quarter through share repurchases and
dividends.”

The WU Way program is intended to transform the Company’s operating model to
better enable innovation, improve the customer experience, and drive cost
efficiencies. The program includes implementation of lean management
techniques, organizational redesign, and other initiatives.

Q1 Business Unit Highlights

  * Consumer-to-Consumer (C2C) revenues were flat, or increased 2% on a
    constant currency basis. Transactions grew 2%, driven by strong increases
    from westernunion.com. Geographically, constant currency revenue growth
    was led by transactions originated in the Latin America and Caribbean,
    North America, and Europe and CIS regions, which was partially offset by
    declines from oil producing countries in the Middle East, Africa, and
    South Asia region.

    Westernunion.com C2C revenues increased 26%, or 28% on a constant currency
    basis, on transaction growth of 27%. Westernunion.com represented 9% of
    total C2C revenue in the quarter.
  * Consumer-to-Business (C2B) revenues increased 8% in the quarter, or 10% on
    a constant currency basis. The growth was driven by the Argentina walk-in
    and U.S. electronic bill payments businesses.
  * Western Union Business Solutions revenues declined 6%, or decreased 3% on
    a constant currency basis. Revenue was impacted by the termination of a
    partner contract and reductions in sales of hedging products.

Additional Q1 Financial Highlights

  * GAAP operating margin in the quarter was 18.4%. Excluding the impact of
    the WU Way related expenses, adjusted operating margin was 19.5%, which
    compares to 19.9% in the prior year period. The decline compared to prior
    year was primarily due to the negative impact of foreign exchange and
    unfavorable customer and funding mix in C2B, partially offset by timing of
    marketing spend.
  * GAAP operating profit in the quarter was $240 million. Excluding the $14
    million of WU Way related expenses, adjusted operating income of $254
    million compared to $259 million in the prior year period. The current
    quarter operating income reflects a negative impact of approximately $15
    million from changes in foreign exchange rates.
  * The effective tax rate in the quarter was 24.1%, or 24.8% excluding the
    impact of the WU Way related expenses, which compares to 14.6% in the
    prior year period. The increase was due to the discrete items mentioned
    above, and the Company’s full year outlook for the effective tax rate
    remains at 11% GAAP, and 13% adjusted for WU Way related expenses.
  * Cash flow from operating activities totaled $86 million, which includes
    $151 million of payments related to the settlement with federal and state
    governments announced in January 2017, and approximately $19 million of WU
    Way related payments. Excluding these items, cash flow from operating
    activities was $256 million in the quarter.
  * The Company returned $308 million to shareholders in the first quarter,
    consisting of $225 million of share repurchases and $83 million of
    dividends.

2017 Outlook

The Company affirmed its full year outlook for 2017, which was previously
reported on February 9:

Revenue

  * Flat to low single digit decrease in GAAP revenues, or a low single digit
    increase constant currency.

Operating Profit Margin

  * GAAP operating margin of approximately 18% and adjusted operating margin
    of approximately 20%. Adjusted operating margins exclude approximately
    $100 million of expected WU Way related expenses.

Earnings per Share

  * GAAP EPS in a range of $1.48 to $1.60 and adjusted EPS in a range of $1.63
    to $1.75. Adjusted EPS excludes the impact of the WU Way related expenses.

Cash Flow

  * GAAP cash flow from operating activities of approximately $200 million,
    which includes $591 million of payments related to the settlement with
    federal and state governments announced in January 2017, approximately
    $100 million of anticipated final tax payments relating to the agreement
    announced with the U.S. Internal Revenue Service in December 2011, and WU
    Way related payments. Excluding these items, expected cash flow from
    operating activities would be approximately $1 billion.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found
in the supplemental tables included with this press release. As discussed in
the Company’s Form 8-K filed with the SEC on April 27, 2017, beginning in the
first quarter of 2017, the Company implemented a new region structure in its
Consumer-to-Consumer operating segment due to leadership and organizational
structure changes within the Company. Additionally, beginning January 1, 2017,
the geographic split for transactions and revenue in the C2C segment,
including transactions initiated through westernunion.com, is determined
entirely based upon the region where the money transfer is initiated. Prior to
January 1, 2017, for transactions originated and paid in different regions,
the Company split the transaction count and revenue between the two regions,
with each region receiving 50%. Therefore, regional results for the prior
periods presented within this press release have been adjusted for this new
region structure and to attribute the transactions and revenue entirely to the
region where the transaction was initiated.

Expenses related to the settlement with federal and state governments
announced in January 2017 and the WU Way business transformation are not
included in operating segment results, as they are excluded from the
measurement of segment operating income provided to the chief operating
decision maker for purposes of assessing segment performance and decision
making with respect to resource allocation.

All amounts included in the supplemental tables to this press release are
rounded to the nearest tenth of a million, except as otherwise noted. As a
result, the percentage changes and margins disclosed herein may not
recalculate precisely using the rounded amounts provided.

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because
management believes that these metrics provide meaningful supplemental
information in addition to the GAAP metrics and provide comparability and
consistency to prior periods. Constant currency results assume foreign
revenues are translated from foreign currencies to the U.S. dollar, net of the
effect of foreign currency hedges, at rates consistent with those in the prior
year.

These non-GAAP financial measures include consolidated revenue change constant
currency adjusted; Consumer-to-Consumer segment revenue change constant
currency adjusted; Consumer-to-Consumer segment westernunion.com revenue
change constant currency adjusted; Consumer-to-Business segment revenue change
constant currency adjusted; Business Solutions segment revenue change constant
currency adjusted; consolidated operating income, excluding WU Way business
transformation expenses; consolidated operating margin, excluding Joint
Settlement Agreements (as defined in the notes below) and WU Way business
transformation expenses; effective tax rate, excluding Joint Settlement
Agreements and WU Way business transformation expenses; earnings/(loss) per
share, excluding Joint Settlement Agreements and WU Way business
transformation expenses; cash flow from operating activities, excluding
payments for Joint Settlement Agreements and WU Way business transformation
expenses; operating margin outlook excluding WU Way business transformation
expenses; earnings per share outlook excluding WU Way business transformation
expenses; cash flow from operating activities outlook, excluding payments for
Joint Settlement Agreements, WU Way business transformation expenses, and IRS
Agreement payments; and additional measures found in the supplemental tables
included with this press release. Although the expenses related to the WU Way
business transformation are specific to that initiative, the types of expenses
related to the WU Way business transformation are similar to expenses that the
Company has previously incurred and can reasonably be expected to incur in the
future.

Reconciliations of non-GAAP to comparable GAAP measures are available in the
accompanying schedules and in the “Investor Relations” section of the
Company’s website at http://ir.westernunion.com.

Investor and Analyst Conference Call and Slide Presentation

The Company will host a conference call and webcast, including slides, at 4:30
p.m. Eastern Time today. To listen to the conference call via telephone, dial
1 (888) 317- 6003 (U.S.) or +1 (412) 317- 6061 (outside the U.S.) ten minutes
prior to the start of the call. The pass code is 2739953.

The conference call and accompanying slides will be available via webcast at
http://ir.westernunion.com. Registration for the event is required, so please
register at least five minutes prior to the scheduled start time.

A webcast replay will be available at http://ir.westernunion.com.

Please note: All statements made by Western Union officers on this call are
the property of Western Union and subject to copyright protection. Other than
the replay, Western Union has not authorized, and disclaims responsibility
for, any recording, replay or distribution of any transcription of this call.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict. Actual outcomes
and results may differ materially from those expressed in, or implied by, our
forward-looking statements. Words such as "expects," "intends," "anticipates,"
"believes," "estimates," "guides," "provides guidance," "provides outlook" and
other similar expressions or future or conditional verbs such as "may,"
"will," "should," "would," "could," and "might" are intended to identify such
forward-looking statements. Readers of this press release of The Western Union
Company (the "Company," "Western Union," "we," "our" or "us") should not rely
solely on the forward-looking statements and should consider all uncertainties
and risks discussed in the "Risk Factors" section and throughout the Annual
Report on Form 10-K for the year ended December 31, 2016. The statements are
only as of the date they are made, and the Company undertakes no obligation to
update any forward-looking statement.

Possible events or factors that could cause results or performance to differ
materially from those expressed in our forward-looking statements include the
following: (i) events related to our business and industry, such as: changes
in general economic conditions and economic conditions in the regions and
industries in which we operate, including global economic and trade downturns,
or significantly slower growth or declines in the money transfer, payment
service, and other markets in which we operate, including downturns or
declines related to interruptions in migration patterns, or non-performance by
our banks, lenders, insurers, or other financial services providers; failure
to compete effectively in the money transfer and payment service industry,
including among other things, with respect to price, with global and niche or
corridor money transfer providers, banks and other money transfer and payment
service providers, including electronic, mobile and Internet-based services,
card associations, and card-based payment providers, and with digital
currencies and related protocols, and other innovations in technology and
business models; political conditions and related actions in the United States
and abroad which may adversely affect our business and economic conditions as
a whole, including interruptions of United States or other government
relations with countries in which we have or are implementing significant
business relationships with agents or clients; deterioration in customer
confidence in our business, or in money transfer and payment service providers
generally; our ability to adopt new technology and develop and gain market
acceptance of new and enhanced services in response to changing industry and
consumer needs or trends; changes in, and failure to manage effectively,
exposure to foreign exchange rates, including the impact of the regulation of
foreign exchange spreads on money transfers and payment transactions; any
material breach of security, including cybersecurity, or safeguards of or
interruptions in any of our systems or those of our vendors or other third
parties; cessation of or defects in various services provided to us by
third-party vendors; mergers, acquisitions and integration of acquired
businesses and technologies into our Company, and the failure to realize
anticipated financial benefits from these acquisitions, and events requiring
us to write down our goodwill; failure to manage credit and fraud risks
presented by our agents, clients and consumers; failure to maintain our agent
network and business relationships under terms consistent with or more
advantageous to us than those currently in place, including due to increased
costs or loss of business as a result of increased compliance requirements or
difficulty for us, our agents or their subagents in establishing or
maintaining relationships with banks needed to conduct our services; decisions
to change our business mix; changes in tax laws, or their interpretation, and
unfavorable resolution of tax contingencies; adverse rating actions by credit
rating agencies; our ability to realize the anticipated benefits from business
transformation, productivity and cost-savings, and other related initiatives,
which may include decisions to downsize or to transition operating activities
from one location to another, and to minimize any disruptions in our workforce
that may result from those initiatives; our ability to protect our brands and
our other intellectual property rights and to defend ourselves against
potential intellectual property infringement claims; our ability to attract
and retain qualified key employees and to manage our workforce successfully;
material changes in the market value or liquidity of securities that we hold;
restrictions imposed by our debt obligations; (ii) events related to our
regulatory and litigation environment, such as: liabilities or loss of
business resulting from a failure by us, our agents or their subagents to
comply with laws and regulations and regulatory or judicial interpretations
thereof, including laws and regulations designed to protect consumers, or
detect and prevent money laundering, terrorist financing, fraud and other
illicit activity; increased costs or loss of business due to regulatory
initiatives and changes in laws, regulations and industry practices and
standards, including changes in interpretations in the United States, the
European Union and globally, affecting us, our agents or their subagents, or
the banks with which we or our agents maintain bank accounts needed to provide
our services, including related to anti-money laundering regulations,
anti-fraud measures, our licensing arrangements, customer due diligence, agent
and subagent due diligence, registration and monitoring requirements, consumer
protection requirements, remittances, and immigration; liabilities, increased
costs or loss of business and unanticipated developments resulting from
governmental investigations and consent agreements with or enforcement actions
by regulators, including those associated with compliance with or failure to
comply with the settlement agreement with the State of Arizona, as amended, or
with the settlement agreements with the United States Department of Justice,
certain United States Attorney's Offices, the United States Federal Trade
Commission, the Financial Crimes Enforcement Network of the United States
Department of Treasury, and various state attorneys general; the impact on our
business from the Dodd-Frank Wall Street Reform and Consumer Protection Act,
as well as regulations issued pursuant to it and the actions of the Consumer
Financial Protection Bureau and similar legislation and regulations enacted by
other governmental authorities related to consumer protection; liabilities
resulting from litigation, including class-action lawsuits and similar
matters, and regulatory actions, including costs, expenses, settlements and
judgments; failure to comply with regulations and evolving industry standards
regarding consumer privacy and data use and security; effects of unclaimed
property laws; failure to maintain sufficient amounts or types of regulatory
capital or other restrictions on the use of our working capital to meet the
changing requirements of our regulators worldwide; changes in accounting
standards, rules and interpretations or industry standards affecting our
business; and (iii) other events, such as: adverse tax consequences from our
spin-off from First Data Corporation; catastrophic events; and management's
ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is a leader in global payment services.
Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business
Solutions branded payment services, Western Union provides consumers and
businesses with fast, reliable and convenient ways to send and receive money
around the world, to send payments and to purchase money orders. As of March
31, 2017, the Western Union, Vigo and Orlandi Valuta branded services were
offered through a combined network of over 550,000 agent locations in 200
countries and territories and over 150,000 ATMs and kiosks, and included the
capability to send money to billions of accounts. In 2016, The Western Union
Company completed 268 million consumer-to-consumer transactions worldwide,
moving $80 billion of principal between consumers, and 523 million business
payments. For more information, visit www.westernunion.com.

WU-G

THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
                                                                                                           
                         Notes*     1Q16          2Q16          3Q16          4Q16           FY2016         1Q17
                                                                                                             
Consolidated Metrics
Consolidated
revenues (GAAP) -                     (2   )%       (1   )%       (2   )%       (1    )%       (1    )%       0    %
YoY % change
Consolidated
revenues (constant       a            3    %        3    %        2    %        4     %        3     %        3    %
currency) - YoY %
change
Consolidated
operating                             (5   )%       4    %        (9   )%       (211  )%       (56   )%       (7   )%
income/(loss) (GAAP)
- YoY % change
Consolidated
operating income
(constant currency,
excluding Joint
Settlement
Agreements, WU Way       b            1    %        5    %        5    %        6     %        4     %        4    %
business
transformation
expenses, and 2015
Paymap Settlement
Agreement) - YoY %
change
Consolidated
operating margin                      19.9 %        18.9 %        20.2 %        (22.9 )%       8.9   %        18.4 %
(GAAP)
Consolidated
operating margin
(excluding Joint
Settlement               c            19.9 %        20.2 %        21.7 %        19.7  %        20.4  %        19.5 %
Agreements and WU
Way business
transformation
expenses)
                                                                                                             
Consumer-to-Consumer
(C2C) Segment
Revenues (GAAP) -                     (2   )%       (1   )%       (1   )%       0     %        (1    )%       0    %
YoY % change
Revenues (constant
currency) - YoY %        h            1    %        2    %        1    %        3     %        2     %        2    %
change
Operating margin         v, w         22.7 %        23.0 %        25.1 %        22.8  %        23.4  %        22.4 %
                                                                                                             
Transactions (in                      63.7          67.7          67.8          69.1           268.3          65.3
millions)
Transactions - YoY %                  3    %        3    %        2    %        2     %        3     %        2    %
change
                                                                                                             
Total principal ($ -                $ 19.1        $ 20.4        $ 20.3        $ 20.2         $ 80.0         $ 19.1
billions)
Principal per
transaction ($ -                    $ 299         $ 301         $ 300         $ 292          $ 298          $ 292
dollars)
Principal per
transaction - YoY %                   (5   )%       (5   )%       (5   )%       (3    )%       (5    )%       (2   )%
change
Principal per
transaction              i            (3   )%       (4   )%       (4   )%       (2    )%       (3    )%       (1   )%
(constant currency)
- YoY % change
                                                                                                             
Cross-border
principal ($ -                      $ 17.3        $ 18.5        $ 18.4        $ 18.3         $ 72.5         $ 17.3
billions)
Cross-border
principal - YoY %                     (2   )%       (1   )%       (3   )%       (1    )%       (2    )%       1    %
change
Cross-border
principal (constant      j            1    %        0    %        (2   )%       1     %        0     %        2    %
currency) - YoY %
change
                                                                                                             
NA region revenues
(GAAP) - YoY %           y, z         4    %        6    %        7    %        8     %        6     %        3    %
change
NA region revenues       k, y,
(constant currency)      z            5    %        7    %        7    %        8     %        7     %        4    %
- YoY % change
NA region
transactions - YoY %     y, z         7    %        7    %        7    %        8     %        7     %        5    %
change
                                                                                                             
EU & CIS region
revenues (GAAP) -        y, aa        (3   )%       (2   )%       (2   )%       (2    )%       (2    )%       (1   )%
YoY % change
EU & CIS region
revenues (constant       l, y,        0    %        0    %        2    %        4     %        1     %        4    %
currency) - YoY %        aa
change
EU & CIS region
transactions - YoY %     y, aa        4    %        5    %        3    %        5     %        4     %        8    %
change
                                                                                                             
MEASA region
revenues (GAAP) -        y, bb        (4   )%       (7   )%       (16  )%       (14   )%       (10   )%       (13  )%
YoY % change
MEASA region
revenues (constant       m, y,        (1   )%       (6   )%       (14  )%       (12   )%       (8    )%       (10  )%
currency) - YoY %        bb
change
MEASA region
transactions - YoY %     y, bb        (5   )%       (8   )%       (14  )%       (17   )%       (11   )%       (15  )%
change
                                                                                                             
APAC region revenues
(GAAP) - YoY %           y, cc        (6   )%       (2   )%       2    %        (2    )%       (2    )%       (2   )%
change
APAC region revenues     n, y,
(constant currency)      cc           (2   )%       1    %        2    %        (1    )%       0     %        (1   )%
- YoY % change
APAC region
transactions - YoY %     y, cc        (7   )%       (5   )%       (5   )%       (6    )%       (6    )%       (2   )%
change
                                                                                                             
LACA region revenues
(GAAP) - YoY %           y, dd        (16  )%       (7   )%       0    %        11    %        (3    )%       26   %
change
LACA region revenues     o, y,
(constant currency)      dd           (4   )%       3    %        9    %        20    %        7     %        25   %
- YoY % change
LACA region
transactions - YoY %     y, dd        8    %        11   %        15   %        18    %        13    %        17   %
change
                                                                                                             
International
revenues - YoY %         ee           (5   )%       (4   )%       (5   )%       (4    )%       (4    )%       (2   )%
change
International
transactions - YoY %     ee           0    %        0    %        (2   )%       (1    )%       (1    )%       1    %
change
International
revenues - % of C2C      ee           67   %        67   %        67   %        66    %        67    %        66   %
segment revenues
                                                                                                             
United States
originated revenues      ff           5    %        7    %        7    %        8     %        7     %        4    %
- YoY % change
United States
originated               ff           8    %        8    %        7    %        8     %        8     %        4    %
transactions - YoY %
change
United States
originated revenues      ff           33   %        33   %        33   %        34    %        33    %        34   %
- % of C2C segment
revenues
                                                                                                             
westernunion.com
revenues (GAAP) -        gg           16   %        19   %        26   %        27    %        22    %        26   %
YoY % change
westernunion.com
revenues (constant       p, gg        18   %        20   %        28   %        30    %        24    %        28   %
currency) - YoY %
change
westernunion.com
transactions - YoY %     gg           25   %        25   %        29   %        28    %        27    %        27   %
change
                                                                                                             
% of
Consumer-to-Consumer
Revenue
Regional Revenues:
NA region revenues       y, z         36   %        36   %        37   %        37    %        36    %        37   %
EUR & CIS region         y, aa        30   %        31   %        31   %        31    %        31    %        30   %
revenues
MEASA region             y, bb        19   %        18   %        17   %        16    %        18    %        17   %
revenues
APAC region revenues     y, cc        8    %        8    %        8    %        8     %        8     %        8    %
LACA region revenues     y, dd        7    %        7    %        7    %        8     %        7     %        8    %
westernunion.com         gg           7    %        8    %        8    %        9     %        8     %        9    %
revenues
                                                                                                             
Consumer-to-Business
(C2B) Segment
Revenues (GAAP) -                     (1   )%       (2   )%       (3   )%       (4    )%       (3    )%       8    %
YoY % change
Revenues (constant
currency) - YoY %        q            12   %        12   %        11   %        9     %        11    %        10   %
change
Operating margin         w            14.6 %        11.7 %        9.5  %        5.7   %        10.4  %        12.2 %
                                                                                                             
Business Solutions
(B2B) Segment
Revenues (GAAP) -                     1    %        3    %        (4   )%       (3    )%       (1    )%       (6   )%
YoY % change
Revenues (constant
currency) - YoY %        r            6    %        6    %        0    %        1     %        3     %        (3   )%
change
Operating margin         w            2.4  %        5.2  %        4.0  %        9.7   %        5.3   %        2.5  %
                                                                                                             
% of Total Company
Revenue
Consumer-to-Consumer                  78   %        80   %        80   %        80    %        79    %        78   %
segment revenues
Consumer-to-Business                  12   %        11   %        11   %        11    %        12    %        13   %
segment revenues
Business Solutions                    8    %        7    %        7    %        7     %        7     %        7    %
segment revenues
 
* See the "Notes to Key Statistics" section of the press release for the applicable Note references and the
reconciliation of non-GAAP financial measures.
 
 

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
 
                                      Three Months Ended
                                      March 31,
                                      2017            2016            % Change
Revenues                              $ 1,302.4       $ 1,297.7       0     %
Expenses:
Cost of services                        800.5           779.4         3     %
Selling, general and                    262.4           259.7         1     %
administrative
Total expenses (a)                      1,062.9         1,039.1       2     %
Operating income                        239.5           258.6         (7)   %
Other income/(expense):
Interest income                         1.1             0.9           32    %
Interest expense                        (31.3   )       (40.5   )     (23)  %
Derivative gains, net                   2.6             0.5           (b)
Other income/(expense), net             1.2             (2.0    )     (b)
Total other expense, net                (26.4   )       (41.1   )     (36)  %
Income before income taxes              213.1           217.5         (2)   %
Provision for income taxes              51.4            31.8          62    %
Net income                            $ 161.7         $ 185.7         (13)  %
Earnings per share:
Basic                                 $ 0.34          $ 0.37          (8)   %
Diluted                               $ 0.33          $ 0.37          (11)  %
Weighted-average shares
outstanding:
Basic                                   479.8           500.0
Diluted                                 483.4           503.2
Cash dividends declared per           $ 0.175         $ 0.16          9     %
common share

________

      For the three months ended March 31, 2017, total WU Way business
(a)   transformation expenses were $14.3 million, including $4.2 million in
      cost of services and $10.1 million in selling, general and
      administrative.
(b)   Calculation not meaningful.
       
       

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
 
                                                  March 31,       December 31,
                                                  2017            2016
Assets
Cash and cash equivalents (a)                     $ 1,323.3       $  877.5
Settlement assets                                   3,452.0          3,749.1
Property and equipment, net of
accumulated depreciation of $617.3 and              209.3            220.5
$600.0, respectively
Goodwill                                            3,162.0          3,162.0
Other intangible assets, net of
accumulated amortization of $996.5 and              649.6            664.2
$958.2, respectively
Other assets                                        689.8            746.3    
Total assets                                      $ 9,486.0       $  9,419.6  
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued liabilities          $ 973.7         $  1,129.6
Settlement obligations                              3,452.0          3,749.1
Income taxes payable                                402.5            407.3
Deferred tax liability, net                         135.3            85.9
Borrowings                                          3,490.9          2,786.1
Other liabilities                                   281.3            359.4    
Total liabilities                                   8,735.7          8,517.4
                                                                   
Stockholders' equity:
Preferred stock, $1.00 par value; 10                —                —
shares authorized; no shares issued
Common stock, $0.01 par value; 2,000
shares authorized; 472.0 shares and 481.5
shares issued and outstanding as of March           4.7              4.8
31, 2017 and December 31, 2016,
respectively
Capital surplus                                     659.7            640.9
Retained earnings                                   259.7            419.3
Accumulated other comprehensive loss                (173.8  )        (162.8  )
Total stockholders' equity                          750.3            902.2    
Total liabilities and stockholders'               $ 9,486.0       $  9,419.6  
equity

________

(a)   Approximately $700 million was held by entities outside of the United
      States as of both March 31, 2017 and December 31, 2016.
       
       

THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
 
                                                   Three Months Ended
                                                   March 31,
                                                   2017            2016
                                                                    
Cash Flows From Operating Activities
Net income                                         $ 161.7         $ 185.7
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation                                         18.6            17.5
Amortization                                         47.8            48.1
Other non-cash items, net                            76.0            36.7
Increase/(decrease) in cash, resulting
from changes in:
Other assets                                         (20.4   )       (36.9   )
Accounts payable and accrued liabilities             (192.7  )       (51.0   )
Income taxes payable                                 (5.2    )       14.1
Other liabilities                                    0.5             (1.5    )
Net cash provided by operating activities            86.3            212.7
Cash Flows From Investing Activities
Capitalization of contract costs                     (6.8    )       (20.2   )
Capitalization of purchased and developed            (11.7   )       (13.1   )
software
Purchases of property and equipment                  (7.9    )       (14.6   )
Purchases of non-settlement related                  (21.3   )       (11.2   )
investments and other
Proceeds from maturity of non-settlement             —               11.0
related investments and other
Purchases of held-to-maturity                        (15.2   )       (15.2   )
non-settlement related investments
Proceeds from held-to-maturity                       12.3            —        
non-settlement related investments
Net cash used in investing activities                (50.6   )       (63.3   )
Cash Flows From Financing Activities
Cash dividends paid                                  (83.3   )       (79.3   )
Common stock repurchased                             (219.3  )       (233.2  )
Net proceeds from commercial paper                   310.0           —
Net proceeds from issuance of borrowings             396.9           —
Proceeds from exercise of options and                5.8             7.2      
other
Net cash provided by/(used in) financing             410.1           (305.3  )
activities
Net change in cash and cash equivalents              445.8           (155.9  )
Cash and cash equivalents at beginning of            877.5           1,315.9  
period
Cash and cash equivalents at end of period         $ 1,323.3       $ 1,160.0  
                                                                              
                                                                              

THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
 
                                      Three Months Ended
                                      March 31,
                                       
                                      2017            2016            % Change
Revenues:
Consumer-to-Consumer                  $ 1,015.0       $ 1,017.4       0      %
Consumer-to-Business                    168.2           156.1         8      %
Business Solutions                      93.6            99.2          (6)    %
Other                                   25.6            25.0          2      %
Total consolidated revenues           $ 1,302.4       $ 1,297.7       0      %
Operating income:
Consumer-to-Consumer                  $ 227.6         $ 231.3         (2)    %
Consumer-to-Business                    20.5            22.9          (10)   %
Business Solutions                      2.3             2.4           (2)    %
Other                                   3.4             2.0           68     %
Total segment operating income        $ 253.8         $ 258.6         (2)    %
Business transformation expenses        (14.3   )       —             (b)
(a)
Total consolidated operating          $ 239.5         $ 258.6         (7)    %
income
Operating income margin:
Consumer-to-Consumer                    22.4    %       22.7    %     (0.3)  %
Consumer-to-Business                    12.2    %       14.6    %     (2.4)  %
Business Solutions                      2.5     %       2.4     %     0.1    %
Total consolidated operating            18.4    %       19.9    %     (1.5)  %
income margin

________

      Expenses related to the WU Way business transformation are excluded from
(a)   the measurement of segment operating income provided to the chief
      operating decision maker for purposes of assessing segment performance
      and decision making with respect to resource allocation.
(b)   Calculation not meaningful.
       
       

                          THE WESTERN UNION COMPANY
                           NOTES TO KEY STATISTICS
                  (in millions, unless indicated otherwise)
                                 (Unaudited)

Western Union’s management believes the non-GAAP financial measures presented
provide meaningful supplemental information regarding our operating results to
assist management, investors, analysts, and others in understanding our
financial results and to better analyze trends in our underlying business,
because they provide consistency and comparability to prior periods.

A non-GAAP financial measure should not be considered in isolation or as a
substitute for the most comparable GAAP financial measure. A non-GAAP
financial measure reflects an additional way of viewing aspects of our
operations that, when viewed with our GAAP results and the reconciliation to
the corresponding GAAP financial measure, provide a more complete
understanding of our business. Users of the financial statements are
encouraged to review our financial statements and publicly-filed reports in
their entirety and not to rely on any single financial measure. A
reconciliation of non-GAAP financial measures to the most directly comparable
GAAP financial measures is included below. All adjusted year-over-year changes
were calculated using prior year reported amounts. Although the expenses
related to the WU Way are specific to that initiative, the types of expenses
related to the WU Way initiative are similar to expenses that the Company has
previously incurred and can reasonably be expected to incur in the future.

                             1Q16           2Q16           3Q16           4Q16           FY2016         1Q17
      Consolidated Metrics
(a)   Revenues, as           $ 1,297.7      $ 1,375.7      $ 1,377.8      $ 1,371.7      $ 5,422.9      $ 1,302.4
      reported (GAAP)
      Foreign currency
      translation impact       57.4           48.9           52.1           58.7           217.1          30.1     
      (t)
      Revenues, constant     $ 1,355.1      $ 1,424.6      $ 1,429.9      $ 1,430.4      $ 5,640.0      $ 1,332.5  
      currency adjusted
      Prior year revenues,   $ 1,320.9      $ 1,383.6      $ 1,399.2      $ 1,380.0      $ 5,483.7      $ 1,297.7
      as reported (GAAP)
      Revenue change, as       (2      )%     (1      )%     (2      )%     (1      )%     (1      )%     0       %
      reported (GAAP)
      Revenue change,
      constant currency        3       %      3       %      2       %      4       %      3       %      3       %
      adjusted
                                                                                                                   
      Operating
(b)   income/(loss), as      $ 258.6        $ 260.3        $ 278.3        $ (313.5  )    $ 483.7        $ 239.5
      reported (GAAP)
      Foreign currency
      translation impact       16.8           23.5           21.9           28.0           90.2           15.0
      (t)
      Joint Settlement         N/A            15.0           15.0           571.0          601.0          N/A
      Agreements (v)
      WU Way business
      transformation           N/A            2.1            5.0            13.2           20.3           14.3     
      expenses (w)
      Operating income,
      constant currency
      adjusted, excluding
      Joint Settlement       $ 275.4        $ 300.9        $ 320.2        $ 298.7        $ 1,195.2      $ 268.8    
      Agreements and WU
      Way business
      transformation
      expenses
      Prior year operating
      income, excluding      $ 272.3        $ 286.1        $ 304.5        $ 281.8        $ 1,144.7      $ 258.6
      Paymap Settlement
      Agreement (u)
      Operating income
      change, as reported      (5      )%     4       %      (9      )%     (211    )%     (56     )%     (7      )%
      (GAAP)
      Operating income
      change, constant
      currency adjusted,
      excluding Joint
      Settlement
      Agreements, WU Way       1       %      5       %      5       %      6       %      4       %      4       %
      business
      transformation
      expenses, and 2015
      Paymap Settlement
      Agreement
                                                                                                                   
      Operating
(c)   income/(loss), as      $ 258.6        $ 260.3        $ 278.3        $ (313.5  )    $ 483.7        $ 239.5
      reported (GAAP)
      Joint Settlement         N/A            15.0           15.0           571.0          601.0          N/A
      Agreements (v)
      WU Way business
      transformation           N/A            2.1            5.0            13.2           20.3           14.3     
      expenses (w)
      Operating income,
      excluding Joint
      Settlement
      Agreements and WU      $ 258.6        $ 277.4        $ 298.3        $ 270.7        $ 1,105.0      $ 253.8    
      Way business
      transformation
      expenses
      Operating margin, as     19.9    %      18.9    %      20.2    %      (22.9   )%     8.9     %      18.4    %
      reported (GAAP)
      Operating margin,
      excluding Joint
      Settlement
      Agreements and WU        19.9    %      20.2    %      21.7    %      19.7    %      20.4    %      19.5    %
      Way business
      transformation
      expenses
                                                                                                                   
      Operating
(d)   income/(loss), as      $ 258.6        $ 260.3        $ 278.3        $ (313.5  )    $ 483.7        $ 239.5
      reported (GAAP)
      Reversal of
      depreciation and         65.6           65.9           66.4           65.3           263.2          66.4     
      amortization
      EBITDA (x)             $ 324.2        $ 326.2        $ 344.7        $ (248.2  )    $ 746.9        $ 305.9    
      Joint Settlement         N/A            15.0           15.0           571.0          601.0          N/A
      Agreements (v)
      WU Way business
      transformation           N/A            2.1            5.0            13.2           20.3           14.3     
      expenses (w)
      Adjusted EBITDA,
      excluding Joint
      Settlement
      Agreements and WU      $ 324.2        $ 343.3        $ 364.7        $ 336.0        $ 1,368.2      $ 320.2    
      Way business
      transformation
      expenses
      Operating margin, as     19.9    %      18.9    %      20.2    %      (22.9   )%     8.9     %      18.4    %
      reported (GAAP)
      EBITDA margin            25.0    %      23.7    %      25.0    %      (18.1   )%     13.8    %      23.5    %
      Adjusted EBITDA
      margin, excluding
      Joint Settlement
      Agreements and WU        25.0    %      25.0    %      26.5    %      24.5    %      25.2    %      24.6    %
      Way business
      transformation
      expenses
                                                                                                                   
(e)   Net income/(loss),     $ 185.7        $ 205.6        $ 216.9        $ (355.0  )    $ 253.2        $ 161.7
      as reported (GAAP)
      Joint Settlement         N/A            15.0           15.0           571.0          601.0          N/A
      Agreements (v)
      WU Way business
      transformation           N/A            2.1            5.0            13.2           20.3           14.3
      expenses (w)
      Income tax
      expense/(benefit)
      from Joint               N/A            (5.4    )      (5.5    )      5.5            (5.4    )      N/A
      Settlement
      Agreements (v)
      Income tax benefit
      from WU Way business     N/A            (0.8    )      (1.8    )      (4.8    )      (7.4    )      (5.0    )
      transformation
      expenses (w)
      Joint Settlement
      Agreements and WU
      Way business
      transformation           N/A            10.9           12.7           584.9          608.5          9.3      
      expenses, net of
      income tax
      expense/(benefit)
      Net income,
      excluding Joint
      Settlement
      Agreements and WU
      Way business           $ 185.7        $ 216.5        $ 229.6        $ 229.9        $ 861.7        $ 171.0    
      transformation
      expenses, net of
      income tax
      expense/(benefit)
      Diluted
      earnings/(loss) per
      share ("EPS"), as      $ 0.37         $ 0.42         $ 0.44         $ (0.73   )    $ 0.51         $ 0.33
      reported (GAAP) ($ -
      dollars)
      EPS impact as a
      result of Joint
      Settlement               N/A          $ 0.03         $ 0.03         $ 1.17         $ 1.22           N/A
      Agreements ($ -
      dollars) (v)
      EPS impact as a
      result of WU Way
      business                 N/A          $ —            $ 0.01         $ 0.03         $ 0.04         $ 0.03
      transformation
      expenses ($ -
      dollars) (w)
      EPS impact from
      income tax
      expense/(benefit)
      from Joint               N/A          $ (0.01   )    $ (0.01   )    $ 0.01         $ (0.01   )      N/A
      Settlement
      Agreements ($ -
      dollars) (v)
      EPS impact from
      income tax benefit
      from WU Way business     N/A          $ —            $ —            $ (0.01   )    $ (0.01   )    $ (0.01   )
      transformation
      expenses ($ -
      dollars) (w)
      EPS impact as a
      result of Joint
      Settlement
      Agreements and WU
      Way business             N/A          $ 0.02         $ 0.03         $ 1.20         $ 1.24         $ 0.02     
      transformation
      expenses, net of
      income tax
      expense/(benefit) ($
      - dollars)
      Diluted EPS,
      excluding Joint
      Settlement
      Agreements and WU        0.37         $ 0.44         $ 0.47         $ 0.47         $ 1.75         $ 0.35     
      Way business
      transformation
      expenses ($ -
      dollars)
      Diluted
      weighted-average         503.2          493.0          490.3          483.6          493.5          483.4
      shares outstanding
                                                                                                                   
(f)   Effective tax rate,      14.6    %      7.6     %      9.6     %      (4.9    )%     25.9    %      24.1    %
      as reported (GAAP)
      Impact from Joint
      Settlement               N/A            1.8     %      1.6     %      9.7     %      (15.9   )%     N/A
      Agreements (v)
      Impact from WU Way
      business                 N/A            0.3     %      0.5     %      1.7     %      0.5     %      0.7     %
      transformation
      expenses (w)
      Effective tax rate,
      excluding Joint
      Settlement
      Agreements and WU        14.6    %      9.7     %      11.7    %      6.5     %      10.5    %      24.8    %
      Way business
      transformation
      expenses
                                                                                                                   
      Cash flow from
(g)   operating activities   $ 212.7        $ 272.9        $ 336.3        $ 220.0        $ 1,041.9      $ 86.3
      (GAAP)
      Joint Settlement
      Agreements payments      N/A            N/A            N/A            N/A            N/A            151.3
      (v)
      Payments of WU Way
      business                 N/A            N/A            1.1            6.3            7.4            18.6     
      transformation
      expenses (w)
      Cash flow from
      operating
      activities,
      excluding payments
      for Joint Settlement   $ 212.7        $ 272.9        $ 337.4        $ 226.3        $ 1,049.3      $ 256.2    
      Agreements and WU
      Way business
      transformation
      expenses
                                                                                                                   
      Consumer-to-Consumer
      Segment
(h)   Revenues, as           $ 1,017.4      $ 1,095.8      $ 1,098.9      $ 1,092.5      $ 4,304.6      $ 1,015.0
      reported (GAAP)
      Foreign currency
      translation impact       30.5           23.0           25.3           33.4           112.2          24.1     
      (t)
      Revenues, constant     $ 1,047.9      $ 1,118.8      $ 1,124.2      $ 1,125.9      $ 4,416.8      $ 1,039.1  
      currency adjusted
      Prior year revenues,   $ 1,038.3      $ 1,101.5      $ 1,112.9      $ 1,091.2      $ 4,343.9      $ 1,017.4
      as reported (GAAP)
      Revenue change, as       (2      )%     (1      )%     (1      )%     0       %      (1      )%     0       %
      reported (GAAP)
      Revenue change,
      constant currency        1       %      2       %      1       %      3       %      2       %      2       %
      adjusted
                                                                                                                   
      Principal per
(i)   transaction, as        $ 299          $ 301          $ 300          $ 292          $ 298          $ 292
      reported ($ -
      dollars)
      Foreign currency
      translation impact       7              3              3              4              4              3        
      (t) ($ - dollars)
      Principal per
      transaction,
      constant currency      $ 306          $ 304          $ 303          $ 296          $ 302          $ 295      
      adjusted ($ -
      dollars)
      Prior year principal
      per transaction, as    $ 315          $ 316          $ 315          $ 303          $ 312          $ 299
      reported ($ -
      dollars)
      Principal per
      transaction change,      (5      )%     (5      )%     (5      )%     (3      )%     (5      )%     (2      )%
      as reported
      Principal per
      transaction change,      (3      )%     (4      )%     (4      )%     (2      )%     (3      )%     (1      )%
      constant currency
      adjusted
                                                                                                                   
      Cross-border
(j)   principal, as          $ 17.3         $ 18.5         $ 18.4         $ 18.3         $ 72.5         $ 17.3
      reported ($ -
      billions)
      Foreign currency
      translation impact       0.4            0.2            0.2            0.2            1.0            0.2      
      (t) ($ - billions)
      Cross-border
      principal, constant    $ 17.7         $ 18.7         $ 18.6         $ 18.5         $ 73.5         $ 17.5     
      currency adjusted ($
      - billions)
      Prior year
      cross-border
      principal, as          $ 17.5         $ 18.8         $ 18.9         $ 18.4         $ 73.6         $ 17.3
      reported ($ -
      billions)
      Cross-border
      principal change, as     (2      )%     (1      )%     (3      )%     (1      )%     (2      )%     1       %
      reported
      Cross-border
      principal change,        1       %      0       %      (2      )%     1       %      0       %      2       %
      constant currency
      adjusted
                                                                                                                   
      NA region revenue
(k)   change, as reported      4       %      6       %      7       %      8       %      6       %      3       %
      (GAAP)
      NA region foreign
      currency translation     1       %      1       %      0       %      0       %      1       %      1       %
      impact (t)
      NA region revenue
      change, constant         5       %      7       %      7       %      8       %      7       %      4       %
      currency adjusted
                                                                                                                   
      EU & CIS region
(l)   revenue change, as       (3      )%     (2      )%     (2      )%     (2      )%     (2      )%     (1      )%
      reported (GAAP)
      EU & CIS region
      foreign currency         3       %      2       %      4       %      6       %      3       %      5       %
      translation impact
      (t)
      EU & CIS region
      revenue change,          0       %      0       %      2       %      4       %      1       %      4       %
      constant currency
      adjusted
                                                                                                                   
      MEASA region revenue
(m)   change, as reported      (4      )%     (7      )%     (16     )%     (14     )%     (10     )%     (13     )%
      (GAAP)
      MEASA region foreign
      currency translation     3       %      1       %      2       %      2       %      2       %      3       %
      impact (t)
      MEASA region revenue
      change, constant         (1      )%     (6      )%     (14     )%     (12     )%     (8      )%     (10     )%
      currency adjusted
                                                                                                                   
      APAC region revenue
(n)   change, as reported      (6      )%     (2      )%     2       %      (2      )%     (2      )%     (2      )%
      (GAAP)
      APAC region foreign
      currency translation     4       %      3       %      0       %      1       %      2       %      1       %
      impact (t)
      APAC region revenue
      change, constant         (2      )%     1       %      2       %      (1      )%     0       %      (1      )%
      currency adjusted
                                                                                                                   
      LACA region revenue
(o)   change, as reported      (16     )%     (7      )%     0       %      11      %      (3      )%     26      %
      (GAAP)
      LACA region foreign
      currency translation     12      %      10      %      9       %      9       %      10      %      (1      )%
      impact (t)
      LACA region revenue
      change, constant         (4      )%     3       %      9       %      20      %      7       %      25      %
      currency adjusted
                                                                                                                   
      westernunion.com
(p)   revenue change, as       16      %      19      %      26      %      27      %      22      %      26      %
      reported (GAAP)
      westernunion.com
      region foreign           2       %      1       %      2       %      3       %      2       %      2       %
      currency translation
      impact (t)
      westernunion.com
      revenue change,          18      %      20      %      28      %      30      %      24      %      28      %
      constant currency
      adjusted
                                                                                                                   
      Consumer-to-Business
      Segment
(q)   Revenues, as           $ 156.1        $ 154.2        $ 155.7        $ 155.2        $ 621.2        $ 168.2
      reported (GAAP)
      Foreign currency
      translation impact       20.9           21.9           22.8           21.5           87.1           3.8      
      (t)
      Revenues, constant     $ 177.0        $ 176.1        $ 178.5        $ 176.7        $ 708.3        $ 172.0    
      currency adjusted
      Prior year revenues,   $ 157.8        $ 157.9        $ 160.1        $ 161.9        $ 637.7        $ 156.1
      as reported (GAAP)
      Revenue change, as       (1      )%     (2      )%     (3      )%     (4      )%     (3      )%     8       %
      reported (GAAP)
      Revenue change,
      constant currency        12      %      12      %      11      %      9       %      11      %      10      %
      adjusted
                                                                                                                   
      Business Solutions
      Segment
(r)   Revenues, as           $ 99.2         $ 100.8        $ 97.2         $ 98.8         $ 396.0        $ 93.6
      reported (GAAP)
      Foreign currency
      translation impact       4.6            3.0            3.5            3.9            15.0           2.8      
      (t)
      Revenues, constant     $ 103.8        $ 103.8        $ 100.7        $ 102.7        $ 411.0        $ 96.4     
      currency adjusted
      Prior year revenues,   $ 98.0         $ 97.6         $ 101.2        $ 101.9        $ 398.7        $ 99.2
      as reported (GAAP)
      Revenue change, as       1       %      3       %      (4      )%     (3      )%     (1      )%     (6      )%
      reported (GAAP)
      Revenue change,
      constant currency        6       %      6       %      0       %      1       %      3       %      (3      )%
      adjusted
                                                                                                                   
(s)   Operating income, as   $ 2.4          $ 5.2          $ 3.9          $ 9.6          $ 21.1         $ 2.3
      reported (GAAP)
      Reversal of
      depreciation and         12.6           13.1           13.2           11.9           50.8           10.6     
      amortization
      EBITDA (x)             $ 15.0         $ 18.3         $ 17.1         $ 21.5         $ 71.9         $ 12.9     
      Operating income
      margin, as reported      2.4     %      5.2     %      4.0     %      9.7     %      5.3     %      2.5     %
      (GAAP)
      EBITDA margin            15.1    %      18.2    %      17.5    %      21.8    %      18.1    %      13.7    %
                                                                                                                   
                                                                                                                   
      2017 Consolidated
      Outlook Metrics
      Operating margin         18      %
      (GAAP)
      WU Way business
      transformation           2       %
      expenses (w)
      Operating margin,
      excluding WU Way
      business                 20      %
      transformation
      expenses
                                                                                                                   
                             Range
      Earnings per share     $ 1.48         $ 1.60
      (GAAP) ($ - dollars)
      WU Way business
      transformation           0.15           0.15     
      expenses ($ -
      dollars) (w)
      Earnings per share,
      excluding WU Way
      business               $ 1.63         $ 1.75     
      transformation
      expenses ($ -
      dollars)
                                                                                                                   
      Effective tax rate       11      %
      (GAAP)
      Impact from WU Way
      business                 2       %
      transformation
      expenses (w)
      Effective tax rate,
      excluding WU Way
      business                 13      %
      transformation
      expenses
                                                                                                                   
                                                                                                                   

Non-GAAP related notes:
        Represents the impact from the fluctuation in exchange rates between
        all foreign currency denominated amounts and the United States dollar.
        Constant currency results exclude any benefit or loss caused by
        foreign exchange fluctuations between foreign currencies and the
(t)     United States dollar, net of foreign currency hedges, which would not
        have occurred if there had been a constant exchange rate. We believe
        that this measure provides management and investors with information
        about operating results and trends that eliminates currency volatility
        and provides greater clarity regarding, and increases the
        comparability of, our underlying results and trends.
         
        Represents the impact from a settlement agreement reached with the
        Consumer Financial Protection Bureau regarding the Equity Accelerator
        service of Paymap, Inc., a subsidiary of the Company (the "Paymap
        Settlement Agreement"), included in full year 2015 results. We believe
(u)     that, by excluding the effects of significant charges associated with
        the settlement of litigation that can impact operating trends,
        management and investors are provided with a measure that increases
        the comparability of our underlying operating results. See below for
        reconciliation of prior year operating income, excluding Paymap
        Settlement Agreement.
         
                       1Q15         2Q15         3Q15      4Q15      FY2015
        Operating
        income, as     $  272.3     $  250.8     $ 304.5   $ 281.8   $ 1,109.4
        reported
        (GAAP)
        Paymap
        Settlement        N/A          35.3        N/A       N/A       35.3
        Agreement
        Operating
        income,
        excluding      $  272.3     $  286.1     $ 304.5   $ 281.8   $ 1,144.7
        Paymap
        Settlement
        Agreement
         
         
        Represents the impact from the settlement agreements related to (1) a
        Deferred Prosecution Agreement with the United States Department of
        Justice, and the United States Attorney’s Offices for the Eastern and
        Middle Districts of Pennsylvania, the Central District of California,
        and the Southern District of Florida, (2) a Stipulated Order for
        Permanent Injunction and Final Judgment with the United States Federal
        Trade Commission ("FTC"), (3) a Consent to the Assessment of Civil
        Money Penalty with the Financial Crimes Enforcement Network of the
        United States Department of Treasury (collectively, the “Joint
        Settlement Agreements”), to resolve the respective investigations of
        those agencies, as described in our Form 8-K filed with the Securities
        and Exchange Commission on January 20, 2017, and related matters.
(v)     Amounts related to these matters were recognized in the second, third,
        and fourth quarters of 2016 and the full year 2016 results. These
        expenses have been excluded from our segment operating income, as
        these expenses are excluded from the measurement of segment operating
        income provided to the chief operating decision maker for purposes of
        assessing segment performance and decision making with respect to
        resource allocation. Additionally, income tax benefit was adjusted in
        the fourth quarter of 2016 to reflect the revised determination, based
        on final agreement terms. We believe that, by excluding the effects of
        significant charges associated with the settlement of litigation that
        can impact operating trends, management and investors are provided
        with a measure that increases the comparability of our underlying
        operating results.
         
        Represents the expenses incurred to transform our operating model,
        focusing on technology transformation, network productivity, customer
        and agent process optimization, and organizational redesign to better
        drive efficiencies and growth initiatives (“WU Way business
        transformation expenses”). Amounts related to the WU Way business
        transformation expenses were recognized beginning in the second
        quarter of 2016, and each subsequent quarter. These expenses have been
        excluded from our segment operating income, as these expenses are
        excluded from the measurement of segment operating income provided to
(w)     the chief operating decision maker for purposes of assessing segment
        performance and decision making with respect to resource allocation.
        We believe that, by excluding the effects of significant charges
        associated with the transformation of our operating model that can
        impact operating trends, management and investors are provided with a
        measure that increases the comparability of our other underlying
        operating results. Although the expenses related to the WU Way are
        specific to that initiative, the types of expenses related to the WU
        Way initiative are similar to expenses that the Company has previously
        incurred and can reasonably be expected to incur in the future.
         
        Earnings before Interest, Taxes, Depreciation and Amortization
        ("EBITDA") results from taking operating income and adjusting for
(x)     depreciation and amortization expenses. EBITDA results provide an
        additional performance measurement calculation which helps neutralize
        the operating income effect of assets acquired in prior periods.
         
Other notes:
         
        Geographic split for transactions and revenue, including transactions
        initiated through westernunion.com, is determined entirely based upon
        the region where the money transfer is initiated. Prior to January 1,
        2017, for transactions originated and paid in different regions, we
(y)     split the transaction count and revenue between the two regions, with
        each region receiving 50%. Therefore, regional results for all periods
        previously presented have also been adjusted to attribute the
        transactions and revenue entirely to the region where the transaction
        was initiated.
         
(z)     Represents the North America (United States and Canada) ("NA") region
        of our Consumer-to-Consumer segment.
         
(aa)    Represents the Europe and the Russia/Commonwealth of Independent
        States ("EU & CIS") region of our Consumer-to-Consumer segment.
         
        Represents the Middle East, Africa, and South Asia ("MEASA") region of
(bb)    our Consumer-to-Consumer segment, including India and certain South
        Asian countries, which consist of Bangladesh, Bhutan, Maldives, Nepal,
        and Sri Lanka.
         
(cc )   Represents the East Asia and Oceania ("APAC") region of our
        Consumer-to-Consumer segment.
         
(dd)    Represents the Latin America and the Caribbean ("LACA") region of our
        Consumer-to-Consumer segment, including Mexico.
         
        Represents transactions, including westernunion.com transactions
(ee)    initiated outside the United States, between and within foreign
        countries (including Canada and Mexico). Excludes all transactions
        originated in the United States.
         
        Represents transactions originated in the United States, including
(ff)    intra-country transactions and westernunion.com transactions initiated
        from the United States.
         
(gg)    Represents transactions initiated on westernunion.com.

View source version on businesswire.com:
http://www.businesswire.com/news/home/20170502006406/en/

Contact:

The Western Union Company
Media:
Dan Diaz, 720-332-5564
daniel.diaz@westernunion.com
or
Investors:
Mike Salop, 720-332-8276
mike.salop@westernunion.com
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