THE WESTERN UNION COMPANY (NYSE:WU) Files An 8-K Other Events

ME Staff 8-k
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THE WESTERN UNION COMPANY (NYSE:WU) Files An 8-K Other Events

Item 8.01.

Other Events.
Beginning in the first quarter of 2017, The Western Union Company
(Western Union or the Company) implemented a new region structure
in its Consumer-to-Consumer operating segment due to leadership and
organizational structure changes within the Company. The Company
views its Consumer-to-Consumer money transfer service as one
interconnected global network where a money transfer can be sent
from one location to another, around the world. The segment
includes five geographic regions whose functions are primarily
related to generating, managing and maintaining agent relationships
and localized marketing activities. The Company includes its online
money transfer services initiated through Western Union branded
websites (“westernunion.com”) in its regions. By means of common
processes and systems, these regions, including westernunion.com,
create an interconnected network for consumer transactions, thereby
constituting one global Consumer-to-Consumer money transfer
business and one operating segment. The Company is filing this
Current Report on Form 8-K so investors can understand the effect
of the new region structure. The new regions are as follows:
Region Description
Former Region Description
Significant Changes
North America (United States and Canada) (“NA”)
North America
Excludes Mexico
Europe and Russia/CIS (“EU CIS”)
Europe and CIS
None
Middle East, Africa, and South Asia (“MEASA”)
Middle East and Africa
Includes India and certain other South Asian countries
(a)
East Asia and Oceania (“APAC”)
Asia Pacific (“APAC”)
Excludes India and certain other South Asian countries
(a)
Latin America and the Caribbean (“LACA”)
Latin America and the Caribbean (“LACA”)
Includes Mexico

>

(a)
These other South Asian countries include Bangladesh,
Bhutan, Maldives, Nepal, and Sri Lanka.
In addition, beginning January 1, 2017, the geographic split for
transactions and revenue in the Company’s disclosures, including
transactions initiated through westernunion.com, will be 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 periods
presented in the tables below have been adjusted to attribute the
transactions and revenue entirely to the region where the
transaction was initiated.
The following table provides reclassified region revenue and
transaction changes for the Company’s Consumer-to-Consumer segment
for previously presented periods.
Consumer-to-Consumer (C2C) Segment
1Q16
2Q16
3Q16
4Q16
FY2016
NA region revenues (GAAP) – YoY % change
%
%
%
%
%
NA region foreign currency translation impact (a)
%
%
%
%
%
NA region revenues (constant currency) – YoY % change
%
%
%
%
%
NA region transactions – YoY % change
%
%
%
%
%
EU CIS region revenues (GAAP) – YoY % change
(3
)%
(2
)%
(2
)%
(2
)%
(2
)%
EU CIS region foreign currency translation impact (a)
%
%
%
%
%
EU CIS region revenues (constant currency) – YoY % change
%
%
%
%
%
EU CIS region transactions – YoY % change
%
%
%
%
%
MEASA region revenues (GAAP) – YoY % change
(4
)%
(7
)%
(16
)%
(14
)%
(10
)%
MEASA region foreign currency translation impact (a)
%
%
%
%
%
MEASA region revenues (constant currency) – YoY % change
(1
)%
(6
)%
(14
)%
(12
)%
(8
)%
MEASA region transactions – YoY % change
(5
)%
(8
)%
(14
)%
(17
)%
(11
)%
APAC region revenues (GAAP) – YoY % change
(6
)%
(2
)%
%
(2
)%
(2
)%
APAC region foreign currency translation impact (a)
%
%
%
%
%
APAC region revenues (constant currency) – YoY % change
(2
)%
%
%
(1
)%
%
APAC region transactions – YoY % change
(7
)%
(5
)%
(5
)%
(6
)%
(6
)%
LACA region revenues (GAAP) – YoY % change
(16
)%
(7
)%
%
%
(3
)%
LACA region foreign currency translation impact (a)
%
%
%
%
%
LACA region revenues (constant currency) – YoY % change
(4
)%
%
%
%
%
LACA region transactions – YoY % change
%
%
%
%
%
__________
(a)
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 United
States dollar, net of foreign currency hedges, which
would not have occurred if there had been a constant
exchange rate. The Company believes 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.
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 the Company’s 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 in the table above.
The following table provides reclassified regional revenues for the
Consumer-to-Consumer segment as a percentage of the total
Consumer-to-Consumer revenues. Where reported separately below,
westernunion.com consists of 50% of the transactions and revenue
that are initiated through westernunion.com.
% of Consumer-to-Consumer Revenue
1Q16
2Q16
3Q16
4Q16
FY2016
Regional Revenues:
NA region revenues
%
%
%
%
%
EU CIS region revenues
%
%
%
%
%
MEASA region revenues
%
%
%
%
%
APAC region revenues
%
%
%
%
%
LACA region revenues
%
%
%
%
%
westernunion.com revenues
%
%
%
%
%
Additionally, beginning with the Company’s Form 10-Q for the three
months ended March 31, 2017, the Company will report total
“Revenues” in its Consolidated Statements of Income for all
periods presented and will no longer present the subcaptions
previously reported, including “Transaction fees”, “Foreign
exchange revenues”, and “Other revenues”.
These changes in regions, geographic split for transactions and
revenue, and revenue reporting have been and will be reflected
retrospectively, but do not revise or restate the Company’s
Consolidated Statements of Income, Consolidated Balance Sheets,
Consolidated Statements of Stockholders’ Equity or Consolidated
Statements of Cash Flows for prior periods.


About THE WESTERN UNION COMPANY (NYSE:WU)

The Western Union Company (Western Union) is a provider of money movement and payment services. The Company operates through three segments: Consumer-to-Consumer, Consumer-to-Business and Business Solutions. Western Union’s Consumer-to-Consumer segment is engaged in individual money transfers from one consumer to another. The Company’s Consumer-to-Business segment provides options to make one-time or recurring payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers, government agencies and other businesses. Western Union’s Business Solutions segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. The Company’s services are primarily available through a network of agent locations in approximately 200 countries and territories.

THE WESTERN UNION COMPANY (NYSE:WU) Recent Trading Information

THE WESTERN UNION COMPANY (NYSE:WU) closed its last trading session down -0.12 at 19.98 with 4,863,794 shares trading hands.