The Western Union Company (WU) 10-Q 30 Oct 09 2009 Q3 Quarterly report Financial data

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009		3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Revenues:
Transaction fees	$1,040		1098.6		2998.4		3200.7
Foreign exchange revenue	237.6		238.7		659.9		681
Commission and other revenues	36.5		40.1		111.3		108.7
Total revenues	1314.1		1377.4		3769.6		3990.4
Expenses:
Cost of services	742.6		785.6		2,112		2343.6
Selling, general and administrative	290		216.6		693.5		626.1
Total expenses	1032.6	[1]	1002.2	[1]	2805.5	[1]	2969.7	[1]
Operating income	281.5		375.2		964.1		1020.7
Other income/(expense):
Interest income	1.9		8.7		8.4		39.1
Interest expense	-39.3		-40.4		-119.1		-128.7
Derivative gains/(losses), net	0.4		-14.4		-2.4		(10)
Other income/(expense), net	2		3.9		-3.6		12.4
Total other expense, net	(35)		-42.2		-116.7		-87.2
Income before income taxes	246.5		333		847.4		933.5
Provision for income taxes	65.5		92.2		222.3		254.1
Net income	$181		240.8		625.1		679.4
Earnings per share:
Basic	0.26		0.33		0.89		0.92
Diluted	0.26		0.33		0.89		0.91
Weighted-average shares outstanding:
Basic	698.4		724.9		702		736
Diluted	701.6		737.2		703.9		747.6
[1]As further described in Note 8, total expenses include amounts for related parties of $66.0 million and $80.4 million for the three months ended September 30, 2009 and 2008, respectively, and $191.3 million and $233.4 million for the nine months ended September 30, 2009 and 2008, respectively.

1_Condensed Consolidated Statem

Condensed Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Related parties	$66	80.4	191.3	233.4

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
Assets
Cash and cash equivalents	1625.4	1295.6
Settlement assets	1256.1	1207.5
Property and equipment, net of accumulated depreciation of $322.3 and $284.0, respectively	198.3	192.3
Goodwill	2146.6	1674.2
Other intangible assets, net of accumulated amortization of $329.5 and $276.5, respectively	505.5	350.6
Other assets	482.3	858.1
Total assets	6214.2	5578.3
Liabilities:
Accounts payable and accrued liabilities	512.3	385.7
Settlement obligations	1256.1	1207.5
Income taxes payable	511.4	381.6
Deferred tax liability, net	276.3	270.1
Borrowings	3052.4	3143.5
Other liabilities	278.1	198
Total liabilities	5886.6	5586.4
Commitments and contingencies (Note 7)	-	-
Stockholders' equity/(deficiency):
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued	0	0
Common stock, $0.01 par value; 2,000 shares authorized; 694.9 shares and 709.6 shares issued and outstanding at September 30, 2009 and December 31, 2008, respectively	6.9	7.1
Capital surplus/(deficiency)	23.2	-14.4
Retained earnings	425.6	29.2
Accumulated other comprehensive loss	-128.1	(30)
Total stockholders' equity/(deficiency)	327.6	-8.1
Total liabilities and stockholders' equity/(deficiency)	6214.2	5578.3

2_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, except Per Share data	Sep. 30, 2009	Dec. 31, 2008
Property and equipment, accumulated depreciation	322.3	$284
Other intangible assets, accumulated amortization	329.5	276.5
Preferred stock, par value	$1	$1
Preferred stock, shares authorized	10	10
Preferred stock, shares issued	0	0
Common stock, par value	0.01	0.01
Common stock, shares authorized	2,000	2,000
Common stock, shares issued	694.9	709.6
Common stock, shares outstanding	694.9	709.6

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities
Net income	625.1	679.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	41.1	46.5
Amortization	70.4	60.4
Other non-cash items, net	39	49.4
Increase/(decrease) in cash, excluding the effects of acquisitions, resulting from changes in:
Other assets	-20.8	-63.4
Accounts payable and accrued liabilities	88.4	63.5
Income taxes payable	131.2	103
Other liabilities	-16.4	-13.5
Net cash provided by operating activities	958	925.3
Cash flows from investing activities
Capitalization of contract costs	-18.2	-68.8
Capitalization of purchased and developed software	-8.6	-15.5
Purchases of property and equipment	-40.1	-40.7
Acquisition of businesses, net of cash acquired	-514.9	-18.2
Proceeds from/(increase in) receivable for securities sold	234.9	-298.1
Notes receivable issued to agents	0	(1)
Repayments of notes receivable issued to agents	17.4	18.9
Net cash used in investing activities	-329.5	-423.4
Cash flows from financing activities
Net repayments of commercial paper	-82.8	-256.2
Net proceeds from issuance of borrowings	496.6	0
Principal payments on borrowings	(500)	0
Proceeds from exercise of options	12.7	296.2
Common stock repurchased	-225.2	-1205.4
Net cash used in financing activities	-298.7	-1165.4
Net change in cash and cash equivalents	329.8	-663.5
Cash and cash equivalents at beginning of period	1295.6	1793.1
Cash and cash equivalents at end of period	1625.4	1129.6
Supplemental cash flow information:
Interest paid	104.9	92.5
Income taxes paid	111.3	158.2

1. Business and Basis of Presen

1. Business and Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1. Business and Basis of Presentation	1. Business and Basis of Presentation Business The Western Union Company (Western Union or the Company) is a leader in global money transfer, providing people with fast, reliable and convenient ways to send money around the world. The Western Union brand is globally recognized. The Companys services are available through a network of agent locations in more than 200 countries and territories. Each location in the Companys agent network is capable of providing one or more of the Companys services. The Western Union business consists of the following segments: Consumer-to-consumermoney transfer services between consumers, primarily through a global network of third-party agents using the Companys multi-currency, real-time money transfer processing systems. This service is available for international cross-border transfersthat is, the transfer of funds from one country to anotherand, in certain countries, intra-country transfersthat is, money transfers from one location to another in the same country. Global business payments (formerly consumer-to-business)the processing of payments from consumers or businesses to other businesses. The Companys business payments are available to be made to a variety of organizations including utilities, auto finance companies, mortgage servicers, financial service providers, government agencies and other businesses. As described further in Note 3, Acquisitions, the Company acquired Canada-based Custom House, Ltd. (Custom House), a provider of international business-to-business payment services, which is included in this segment. Custom House facilitates cross-border, cross-currency payment transactions. While the Company continues to pursue further international expansion of its offerings in this segment, the segments revenue was primarily generated in the United States during all periods presented. All businesses that have not been classified into the consumer-to-consumer or global business payments segments are reported as Other and include the Companys money order and prepaid services businesses. Prior to October1, 2009, the Companys money orders were issued by Integrated Payment Systems Inc. (IPS), a subsidiary of First Data Corporation (First Data), to consumers at retail locations primarily in the United States and Canada. Effective October1, 2009, the Company assumed the responsibility for issuing money orders as discussed further in Note 9, Settlement Assets and Settlement Obligations. The Company also offers Western Union branded Visa and Mastercard prepaid cards and provides certain prepaid services for third parties. There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these assets are located, or which constitute undistributed earnings of affiliates of the Company accounted for under the equity method of accounting. However, there are generally no limitations on the use of these assets within those countries. As of September30, 2009, the amount of net assets subject to these limitations totaled approximately $170 million. Various aspects of the Companys services and businesses are subject to U

2. Earnings Per Share

2. Earnings Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2. Earnings Per Share	2. Earnings Per Share The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options, the unamortized compensation expense and assumed tax benefits of options and restricted stock are available to acquire shares at an average market price throughout the year, and therefore, reduce the dilutive effect. For the three months ended September30, 2009 and 2008, there were 30.0million and 5.7million, respectively, of outstanding options to purchase shares of Western Union stock excluded from the diluted earnings per share calculation as their effect was anti-dilutive. For the nine months ended September30, 2009 and 2008, there were 38.1million and 7.4million, respectively, of outstanding options to purchase shares of Western Union stock excluded from the diluted earnings per share calculation as their effect was anti-dilutive. During the three and nine months ended September30, 2009, the average market price of the Companys common stock was lower than the exercise price for most of its outstanding options, resulting in higher anti-dilutive shares than in the comparable prior periods. The following table provides the calculation of diluted weighted-average shares outstanding (in millions): ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 Basic weighted-average shares outstanding 698.4 724.9 702.0 736.0 Common stock equivalents 3.2 12.3 1.9 11.6 Diluted weighted-average shares outstanding 701.6 737.2 703.9 747.6

3. Acquisitions

3. Acquisitions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3. Acquisitions	3. Acquisitions Custom House, Ltd. On September1, 2009, the Company acquired Canada-based Custom House, a provider of international business-to-business payment services, for $371.0 million. The acquisition of Custom House will allow the Company to enter the international business-to-business payments market. Custom House facilitates cross-border, cross-currency payment transactions. These payment transactions are conducted through various channels including the telephone and internet. The significant majority of Custom Houses revenue is from exchanges of currency at the spot rate enabling customers to make cross-currency payments. The credit risk arising from these spot foreign currency exchange contracts is largely mitigated, as in most cases Custom House requires the receipt of funds from customers before releasing the associated cross-currency payment. In addition, this business writes foreign currency forward and option contracts for their customers to facilitate future payments. The duration of these derivatives contracts is generally nine months or less. The significant majority of Custom Houses revenue is generated from transactions involving different currencies, in which Custom House generates revenue based on the difference between the exchange rate set by Custom House to the customer and the rate at which Custom House is able to acquire currency or forward and option contracts. This foreign exchange revenue is recorded at the time the customer initiates a trade with Custom House. The results of operations for Custom House have been included in the Companys consolidated financial statements from the date of acquisition, September1, 2009. The Company recorded the assets and liabilities of Custom House at fair value. The following table summarizes the preliminary allocation of purchase price: Assets: Cash acquired $ 2.5 Settlement assets 152.5 Property and equipment 6.5 Goodwill 274.3 Other intangible assets 118.1 Other assets 75.8 Total assets $ 629.7 Liabilities: Accounts payable and accrued liabilities $ 23.1 Settlement obligations 152.5 Deferred tax liability, net 31.9 Other liabilities 51.2 Total liabilities 258.7 Total consideration, including cash acquired $ 371.0 The valuation of assets acquired resulted in $118.1 million of identifiable intangible assets, $99.8 million of which were attributable to customer and other contractual relationships and were valued using an income approach and $18.3 million of other intangibles, which were valued using both income and cost approaches. These fair values were derived using primarily unobservable Level 3 inputs which require significant management judgment and estimation. For the remaining assets and liabilities, fair value approximated carrying value. The intangible assets related to customer and other contractual relationships are being amortized over 10 to 12 years. The remaining intangibles are being amortized over three to five years. The goodwill recognized of $274.3 million is attributable to the proje

4. Receivable for Securities So

4. Receivable for Securities Sold
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4. Receivable for Securities Sold	4. Receivable for Securities Sold On September15, 2008, Western Union requested redemption of its shares in the Reserve International Liquidity Fund, Ltd. (the Fund), a money market fund, totaling $298.1 million. Western Union included the value of the receivable in Other assets in the Condensed Consolidated Balance Sheet as of December31, 2008. At the time the redemption request was made, the Company was informed by the Reserve Management Company, the Funds investment advisor (the Manager), that the Companys redemption trades would be honored at a $1.00 per share net asset value. In 2009, the Company received partial distributions totaling $234.9 million from the Fund ($193.6 million and $41.3 million in January and June 2009, respectively). The Company continues to vigorously pursue collection of the remaining balance and believes it has a right to full payment of the remaining amount based on the written and verbal representations from the Manager and the Companys legal position. However, given the increased uncertainty surrounding the numerous third-party legal claims associated with the Fund, the Company reserved $12 million representing the estimated impact of a pro-rata distribution of the Fund during the three months ended June30, 2009. As of September30, 2009, the Company had a remaining receivable balance of $51.2 million, net of the related reserve, which is included in Other assets in the Condensed Consolidated Balance Sheet. If further deterioration occurs in the underlying assets in the Fund, or if the Fund incurs legal and/or administrative costs during the distribution process, the Company may record additional reserves related to the remaining receivable balance, which could negatively affect its financial position, results of operations and cash flows.

5. Restructuring and Related Ex

5. Restructuring and Related Expenses
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5. Restructuring and Related Expenses	5. Restructuring and Related Expenses Missouri and Texas Closures During 2008, the Company closed substantially all of its facilities in Missouri and Texas and did not renew the Companys collective bargaining agreement with the unionized workers employed at these locations. The decision also resulted in the elimination of certain management positions in these same facilities and resulted, along with other actions, in the Company no longer having employees working in the United States under a collective bargaining agreement. The Company incurred severance and employee related benefit expenses for all union and certain affected management employees, facility closure expenses and other expenses associated with the relocation of these operations to existing Company facilities and third-party providers, including costs related to hiring, training, relocation, travel and professional fees. The Company incurred cumulative total expenses of $46.3 million comprised of $13.1 million, $7.3 million, $7.8 million and $18.1 million in severance and other employee related costs, asset write-offs and incremental depreciation, lease terminations and other restructurings expenses, respectively, through December31, 2008. No additional restructuring and related expenses were incurred in the three and nine months ended September30, 2009. Other Reorganizations Also during 2008, in addition to the Missouri and Texas closures, the Company restructured some of its operations and relocated or eliminated certain shared service and call center positions. The relocated positions were moved to the Companys existing facilities or outsourced service providers in 2008. The Company incurred cumulative total expenses of $36.6 million comprised of $31.2 million, $0.6 million and $4.8 million in severance and other employee related costs, asset write-offs and incremental depreciation and other restructuring expenses, respectively, through December31, 2008. No additional restructuring and related expenses were incurred in the three and nine months ended September30, 2009. Total Plans The following table summarizes the activity for the related restructuring accrual balances for the nine months ended September30, 2009 (in millions): Restructuringaccrual balances at December31, 2008 CashPayments Restructuringaccrual balances at September 30, 2009 Missouri and Texas Closures: Severance and employee related $ 2.7 $ (2.5 ) $ 0.2 Other 0.3 (0.3 ) Total $ 3.0 $ (2.8 ) $ 0.2 Other Reorganizations: Severance and employee related $ 22.1 $ (18.5 ) $ 3.6 Other 0.7 (0.6 ) 0.1 Total $ 22.8 $ (19.1 ) $ 3.7 For the year ended December31, 2008, the Company recognized cumulative expenses of $62.8 million and $20.1 million in Cost of services and Selling, general and administrative, respectively. The Company did not incur any material restructuring and related expenses in the three and nine months ended September30, 2009. Restructuri

6. Fair Value Measurements

6. Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6. Fair Value Measurements	6. Fair Value Measurements Fair value, as defined by the relevant accounting standards, represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For additional information on how Western Union measures fair value, refer to the Companys Annual Report on Form 10-K for the year ended December31, 2008. The following table reflects assets and liabilities that were measured and carried at fair value on a recurring basis (in millions): September30, 2009 FairValueMeasurementUsing Assets/ Liabilities at Fair Value Level1 Level2 Level3 Assets: State and municipal debt instruments $ $ 316.5 $ $ 316.5 Debt securities issued by foreign governments 0.1 1.6 1.7 Derivatives 124.4 1.4 125.8 Total assets $ 0.1 $ 442.5 $ 1.4 $ 444.0 Liabilities: Derivatives $ $ 100.3 $ $ 100.3 Total liabilities $ $ 100.3 $ $ 100.3 The Level 3 assets above represent an immaterial portion of the derivatives portfolio related to the Custom House acquisition for which credit judgments are deemed to be a significant input to the determination of fair value. No non-recurring fair value adjustments were recorded in the three and nine months ended September30, 2009, except those associated with the acquisitions as disclosed in Note 3, Acquisitions. Other Fair Value Measurements The carrying amounts for Western Union financial instruments, including cash and cash equivalents, settlement cash and cash equivalents, settlement receivables and settlement obligations approximate fair value due to their short maturities. Fixed and floating rate notes are carried at their discounted notional amounts, except for portions of notes hedged by interest rate swap agreements. The fair market values of fixed and floating rate notes are based on market quotations as of September30, 2009. The Companys borrowings had a carrying value and fair value of $3,052.4 million and $3,243.4 million, respectively, at September30, 2009 and had a carrying value and fair value of $3,143.5 million and $2,846.7 million, respectively, at December31, 2008 (see Note 13).

7. Commitments and Contingencie

7. Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7. Commitments and Contingencies	7. Commitments and Contingencies In the normal course of business, Western Union is subject to claims and litigation. Management of Western Union believes such matters involving a reasonably possible chance of loss will not, individually or in the aggregate, result in a material adverse effect on Western Unions financial position, results of operations and cash flows. Western Union accrues for loss contingencies as they become probable and estimable. During the three and nine months ended September30, 2009, the Company recorded an accrual of $71.0 million for an anticipated agreement and settlement with the State of Arizona. The anticipated agreement and settlement includes resolution of all outstanding legal issues and claims with the State and a multi-state agreement to fund a not-for-profit organization promoting safety and security along the United States and Mexico border. The accrual includes amounts for reimbursement to the State of Arizona for its costs associated with this matter. As part of the anticipated agreement, the Company expects to make certain investments in its compliance programs of approximately $23 million to be incurred over the next two to three years. While the $71.0 million in charges were identifiable to the Companys consumer-to-consumer segment, they were not included in the measurement of segment operating profit provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation. As the agreement has not yet been finalized, the accrual and related amounts are subject to change. The United States Department of Justice (DOJ) served one of the Companys subsidiaries with a grand jury subpoena requesting documents in connection with an investigation into money transfers from the United States to the Dominican Republic during the last several years. The Company is cooperating fully with the DOJ investigation. Due to the stage of the DOJ investigation, the Company is unable to predict the outcome of the investigation or the possible loss or range of loss, if any, associated with the resolution of any charges that may be brought against the Company. The Company had $85.5 million in outstanding letters of credit and bank guarantees at September30, 2009 with expiration dates through 2015, certain of which contain a one-year renewal option. The letters of credit and bank guarantees are primarily held in connection with lease arrangements and certain agent agreements. The Company expects to renew the letters of credit and bank guarantees prior to expiration in most circumstances. In May 2007, the Company initiated litigation against MoneyGram Payment Systems, Inc. (MoneyGram) for infringement of the Companys Money Transfer by Phone patents by MoneyGrams FormFree service. On September24, 2009, a jury found that MoneyGram was liable for patent infringement and awarded the Company $16.5 million in damages. In accordance with its policies, the Company does not recognize gain contingencies in earnings until realization and collectability are assured and, therefore, due to MoneyGrams challenges to the verdict, the Company has not recognized any amounts in its

8. Related Party Transactions

8. Related Party Transactions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8. Related Party Transactions	8. Related Party Transactions The Company has ownership interests in certain of its agents accounted for under the equity method of accounting. The Company pays these agents, as it does its other agents, commissions for money transfer and other services provided on the Companys behalf. Commission expense recognized for these agents for the three months ended September30, 2009 and 2008 totaled $52.2 million and $80.4 million, respectively, and $151.9 million and $233.4 million for the nine months ended September30, 2009 and 2008, respectively. Commission expense recognized for FEXCO prior to February24, 2009, the date of the acquisition, were considered related party transactions. In July 2009, the Company appointed a director who is also a director for a company holding significant investments in two of the Companys existing agents. These agents had been agents of the Company prior to the director being appointed to the board. The Company recognized commission expense of $13.8 million and $39.4 million, respectively, for the three and nine months ended September30, 2009 related to these agents.

9. Settlement Assets and Settle

9. Settlement Assets and Settlement Obligations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9. Settlement Assets and Settlement Obligations	9. Settlement Assets and Settlement Obligations Settlement assets represent funds received or to be received from agents for unsettled money transfers and consumer payments. Western Union records corresponding settlement obligations relating to amounts payable under money transfer and payment service arrangements. Settlement assets and obligations also include amounts receivable from and payable to businesses for the value of customer cross-currency payment transactions related to the global business payments segment. Settlement assets and obligations were comprised of the following (in millions): September30, 2009 December31, 2008 Settlement assets: Cash and cash equivalents $ 192.0 $ 42.3 Receivables from selling agents and business-to-business customers 745.9 759.6 Investment securities 318.2 405.6 $ 1,256.1 $ 1,207.5 Settlement obligations: Money transfer and payment service payables $ 854.6 $ 799.5 Payables to agents 401.5 408.0 $ 1,256.1 $ 1,207.5 Receivables from international business-to-business customers arise from cross-currency payment transactions in the global business payments segment. Receivables (for currency to be received) and payables (for the cross-currency payment to be made) are recognized at trade date for these transactions. The credit risk arising from these spot foreign currency exchange contracts is largely mitigated, as in most cases Custom House requires the receipt of funds from customers before releasing the associated cross-currency payment. Investment securities consist primarily of high-quality state and municipal debt instruments. Substantially all of the Companys investment securities were marketable securities during the periods presented. The Company is required to maintain specific high-quality, investment grade securities and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable state regulations. Western Union does not hold investment securities for trading purposes. All investment securities are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk. Western Union regularly monitors credit risk and attempts to mitigate its exposure by making high-quality investments. At September30, 2009, the majority of the Companys investment securities had credit ratings of AA- or better from a major credit rating agency. Unrealized gains and losses on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive income or loss, net of related deferred taxes. Gains and losses on investments are calculated using the specific-identification method and are recognized during the period the investment is sold or when an investment experiences an other-than-temporary decline in value. Proceeds from the sale and maturity of available-for-sale securities during the nine months ended September30, 2009 and 2008 were $4.

10. Comprehensive Income

10. Comprehensive Income
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10. Comprehensive Income	10. Comprehensive Income The components of other comprehensive income, net of tax, were as follows (in millions): ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 Net income $ 181.0 $ 240.8 $ 625.1 $ 679.4 Unrealized gains/(losses) on investments securities: Unrealized gains/(losses) 3.1 (3.4 ) 6.1 (3.8 ) Tax (expense)/benefit (1.2 ) 1.3 (2.3 ) 1.4 Reclassification adjustment for (gains)/losses (0.9 ) 2.6 (2.6 ) 4.3 Tax expense/(benefit) 0.4 (1.0 ) 1.0 (1.6 ) Net unrealized gains/(losses) on investment securities 1.4 (0.5 ) 2.2 0.3 Unrealized (losses)/gains on hedging activities: Unrealized (losses)/gains (32.2 ) 86.7 (52.8 ) 41.5 Tax benefit/(expense) 6.0 (12.2 ) 9.8 (7.2 ) Reclassification adjustment for (gains)/losses (5.7 ) 11.5 (38.6 ) 38.7 Tax expense/(benefit) 0.8 (1.3 ) 5.8 (5.2 ) Net unrealized (losses)/gains on hedging activities(a) (31.1 ) 84.7 (75.8 ) 67.8 Foreign currency translation adjustments: Foreign currency translation adjustments 4.9 (13.1 ) (17.4 ) (2.2 ) Tax (expense)/benefit (1.5 ) 4.6 6.3 0.8 Reclassification adjustment for disposal of investment(b) (23.1 ) Tax expense (b) 8.1 Net foreign currency translation adjustments 3.4 (8.5 ) (26.1 ) (1.4 ) Unrealized gains/(losses) on pension liability: Unrealized loss (1.0 ) Tax benefit 0.1 Reclassification adjustment for losses 0.9 4.4 2.7 5.8 Tax benefit (0.3 ) (1.6 ) (1.1 ) (2.1 ) Net unrealized gains on pension liability 0.6 2.8 1.6 2.8 Total other comprehensive income $ 155.3 $ 319.3 $ 527.0 $ 748.9 (a) The beginning balance in Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheet at January1, 2009 related to hedging activities was a gain of $45.5 million and the ending balance at September30, 2009 was a loss of $30.3 million. See Note 12, Derivatives-Cash Flow Hedges for more information on the unrealized (losses)/gains on hedging activities. (b) The nine months ended September30, 2009 includes the impact to the foreign currency translation account of the surrender of the Companys interest in the FEXCO Group. See Note 3, Acquisitions.

11. Employee Benefit Plans

11. Employee Benefit Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11. Employee Benefit Plans	11. Employee Benefit Plans Defined Benefit Plans The Company has two frozen defined benefit pension plans for which it has a recorded unfunded pension obligation of $102.1 million and $107.1 million as of September30, 2009 and December31, 2008, respectively, which were included in Other liabilities in the Condensed Consolidated Balance Sheets. No contributions were made to these plans by the Company in 2008. Due to the closure of one of its facilities in Missouri (see Note 5) and a recent agreement with the Pension Benefit Guaranty Corporation, the Company funded $4.1 million into one of its subsidiarys pension plans during the third quarter of 2009. Pursuant to final guidance issued by the Internal Revenue Service (IRS) in September 2009, the Company made certain interest rate elections under the Pension Protection Act which will require it to fund approximately $15 million to the plans in 2010, which is less than was previously anticipated. The following table provides the components of net periodic benefit cost/(income) for the defined benefit pension plans (in millions): ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 Interest cost $ 5.9 $ 6.1 $ 17.7 $ 18.2 Expected return on plan assets (6.2 ) (6.8 ) (18.5 ) (20.6 ) Amortization of actuarial loss 0.9 0.6 2.7 2.0 Employee termination costs 2.8 Net periodic benefit cost/(income) $ 0.6 $ (0.1 ) $ 1.9 $ 2.4 During the second quarter of 2008, the Company recorded $2.8 million of expenses related to the termination of certain retirement eligible union and management plan participants in connection with the restructuring and related activities, as disclosed in Note 5.

12. Derivatives

12. Derivatives
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12. Derivatives	12. Derivatives The Company is exposed to foreign currency risk resulting from fluctuations in exchange rates, primarily the euro, and to a lesser degree the British pound, Canadian dollar and other currencies, related to forecasted money transfer revenues and on money transfer settlement assets and obligations. Subsequent to the acquisition of Custom House, the Company is also exposed to risk from derivative contracts written to its customers arising from its cross-currency business-to-business payments operations. Additionally, the Company is exposed to interest rate risk related to changes in market rates both prior to and subsequent to the issuance of debt. The Company uses derivatives to (a)minimize its exposures related to changes in foreign currency exchange rates and interest rates and to (b)facilitate cross-currency business-to-business payments by writing derivatives to customers and entering into offsetting derivatives with established financial institution counterparties, or by holding sufficient foreign currency positions to cover those transactions, to mitigate the derivative risk. Foreign currency forward and option contracts and interest rate swaps of varying maturities are used in these activities. Foreign CurrencyConsumer-to-Consumer The Companys policy is to use longer-term foreign currency forward contracts, with maturities of up to 36 months at inception and a targeted weighted-average maturity of approximately one year, to mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies related to its consumer-to-consumer business. At September30, 2009, the Companys longer-term foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year. The Company assesses the effectiveness of these foreign currency forward contracts based on changes in the spot rate of the affected currencies during the period of designation. Accordingly, all changes in the fair value of the hedges not considered effective or portions of the hedge that are excluded from the measure of effectiveness are recognized immediately in Derivative gains/(losses), net within the Companys Condensed Consolidated Statements of Income. The Company also uses short duration foreign currency forward contracts, generally with maturities from a few days up to one month, to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement related to its consumer-to-consumer business. In addition, forward contracts, typically with maturities of less than one year, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash positions. None of these contracts are designated as accounting hedges. The Company executes these derivatives with established financial institutions. The substantial majority of these financial institutions have credit ratings of A- or better from a major credit rating agency. The credit risk inherent in these agreements represents the possibility that a loss may

13. Borrowings

13. Borrowings
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13. Borrowings	13. Borrowings The Companys outstanding borrowings consisted of the following (in millions): September30, 2009 December31, 2008 CarryingValue FairValue(e) CarryingValue FairValue(e) Due in less than one year: Commercial paper $ $ $ 82.9 $ 82.9 Term loan (a) 500.0 500.0 Due in greater than one year: 5.400% notes, net of discount, due 2011 (b) 1,037.5 1,066.6 1,042.8 962.9 6.500% notes, net of discount, due 2014 (c) 498.5 557.1 5.930% notes, net of discount, due 2016 (d) 1,012.9 1,088.5 1,014.4 903.5 6.200% notes, net of discount, due 2036 497.5 525.2 497.4 391.4 Other borrowings 6.0 6.0 6.0 6.0 Total borrowings $ 3,052.4 $ 3,243.4 $ 3,143.5 $ 2,846.7 (a) The term loan due in December 2009 (Term Loan) was paid and financed with the issuance of the 6.500% notes due 2014 (2014 Notes) on February26, 2009. (b) At September30, 2009 and December31, 2008, the Company held interest rate swaps related to the 5.400% notes due 2011 (2011 Notes) with an aggregate notional amount of $750 million and $550 million, respectively. During 2008, the Company terminated an aggregate notional amount of $195 million of interest rate swaps. The Company received cash, excluding interest, of $10.7 million on the termination of these swaps, the offset of which is reflected in Borrowings and will be reclassified as a reduction to Interest expense over the life of the 2011 Notes. (c) The 2014 Notes were issued on February26, 2009 and the proceeds were used to redeem the Term Loan. (d) At December31, 2008, the Company held an interest rate swap related to the 5.930% notes due 2016 (2016 Notes) with an aggregate notional amount of $110 million. During the first quarter of 2009, the Company terminated the swap. The Company received cash, excluding interest, of $14.6 million on the termination of this swap, the offset of which is reflected in Borrowings and will be reclassified as a reduction to Interest expense over the life of the 2016 Notes. For further information regarding the interest rate swap, refer to Note 12, Derivatives. (e) At December31, 2008, the fair value of commercial paper approximated its carrying value due to the short term nature of the obligations. The fair value of the Term Loan approximated its carrying value as it was a variable rate loan and Western Union credit spreads did not move significantly between the date of the borrowing (December 5, 2008) and December31, 2008. The fair value of the fixed rate notes is determined by obtaining quotes from multiple independent banks and excludes the impact of discounts and related interest rate swaps. Exclusive of discounts and the fair value of the interest rate swaps, maturities of borrowings as of September30, 2009 are $1.0 billion in 2011, $500 million in 2014 and $1.5 billion thereafter. The Companys obligations with respect to its outstanding borrowings as described above ra

14. Income Taxes

14. Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14. Income Taxes	14. Income Taxes The Companys effective tax rates on pre-tax income for the three months ended September30, 2009 and 2008 were 26.6% and 27.7%, respectively, and 26.2% and 27.2% for the nine months ended September30, 2009 and 2008, respectively. The Company continues to benefit from an increasing proportion of profits being foreign-derived and therefore taxed at lower rates than its combined federal and state tax rates in the United States. In addition, in the second quarter of 2008, the Company implemented additional foreign tax efficient strategies consistent with its overall tax planning which impacted its effective tax rate for all subsequent periods. Uncertain Tax Positions The Company has established contingency reserves for material, known tax exposures, including potential tax audit adjustments with respect to its international operations, which were restructured in 2003. The Companys tax reserves reflect managements judgment as to the resolution of the issues involved if subject to judicial review. While the Company believes its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Companys income tax expense would include (i)any changes in tax reserves arising from material changes during the period in the facts and circumstances (i.e. new information) surrounding a tax issue, and (ii)any difference from the Companys tax position as recorded in the financial statements and the final resolution of a tax issue during the period. Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Companys financial statements, and are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of September30, 2009 and December31, 2008, was $456.0 million and $361.2 million, respectively, excluding interest and penalties. A substantial portion of the Companys unrecognized tax benefits relate to the 2003 restructuring of the Companys international operations whereby the Companys income from certain foreign-to-foreign money transfer transactions has been taxed at relatively low foreign tax rates compared to the Companys combined federal and state tax rates in the United States. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $447.4 million and $352.4 million as of September30, 2009 and December31, 2008, respectively, excluding interest and penalties. The Company recognizes interest and penalties with respect to unrecognized tax benefits in Provision for income taxes in its Condensed Consolidated Statements of Income, and records the associated liability in Income taxes payable in its Condensed Consolidated Balance Sheets. The Company recognized $3.9 million and $2.8 million in interest and penalties during the three months ended September30, 2009 and 2008, respectively, and $10.4 million and $9.3 million during th

15. Stock Compensation Plans

15. Stock Compensation Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15. Stock Compensation Plans	15. Stock Compensation Plans 2006 LTIP In February 2009, the Compensation Committee of the Companys board of directors granted the Companys executives long-term incentive awards under the 2006 Long-Term Incentive Plan (2006 LTIP) which consisted of one-third restricted stock units, one-third stock option awards and one-third performance-based cash awards. The performance-based cash awards are based on strategic performance objectives for the next two years and are payable in equal installments on the second and third anniversaries of the award, assuming the applicable performance objectives are satisfied. Based on their contributions to the Company and additional assumed responsibilities, certain executives received an incremental grant of restricted stock units which fully vest on the fourth anniversary of the grant date. Additionally, non-executive employees of the Company participating in the 2006 LTIP received annual equity grants of 50% stock option awards and 50% restricted stock units, representing a change from the 75% stock option awards and 25% restricted stock awards or units previously granted under the 2006 LTIP. The employee stock option awards vest in 25% increments on each of the first through fourth anniversaries of the grant date and restricted stock units vest in full on the third anniversary of the grant date. Stock Option Activity A summary of Western Union stock option activity for the nine months ended September30, 2009 was as follows (options and aggregate intrinsic value in millions): Nine Months Ended September30, 2009 Options Weighted-Average Exercise Price Weighted-Average Remaining ContractualTerm (Years) Aggregate Intrinsic Value Outstanding at January1, 43.6 $ 19.11 Granted 3.7 12.27 Exercised (1.1 ) 13.08 Cancelled/forfeited (1.9 ) 18.98 Outstanding at September30, 44.3 $ 18.69 5.1 $ 59.4 Options exercisable at September30, 37.1 $ 19.10 4.5 $ 35.2 As of September30, 2009 and 2008, approximately 42% and 48%, respectively, of outstanding options to purchase shares of common stock of the Company were held by employees of First Data. The total intrinsic value of stock options exercised during the nine months ended September30, 2009 and 2008 were $3.7 million and $132.2 million, respectively. Restricted Stock Awards and Restricted Stock Units A summary of Western Union activity for restricted stock awards and units for the nine months ended September30, 2009 is listed below (awards/units in millions): Nine Months Ended September 30, 2009 Number Outstanding Weighted-Average Grant-Date FairValue Non-vested at January1, 1.2 $ 20.32 Granted 1.7 12.35 Vested (0.6 ) 18.94 Forfeited (0.1 ) 17.95 Non-vested at September 30, 2.2 $ 14.59 Stock-Based Compensation The following table sets forth the total impact on earnings for stock-based compensation expense recognized in the Condensed Consolida

16. Segments

16. Segments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
16. Segments	16. Segments As previously described in Note 1, the Company classifies its businesses into two reportable segments: consumer-to-consumer and global business payments. Operating segments are defined as components of an enterprise which constitute businesses, about which separate financial information is available that is evaluated regularly by the Companys chief operating decision maker (CODM) in deciding where to allocate resources and in assessing performance. The consumer-to-consumer reporting segment is viewed as one global network where a money transfer can be sent from one location to another, anywhere in the world. The segment, which consists of three regions, is now managed as two areas, primarily to coordinate agent network management and marketing activities. The CODM makes decisions regarding resource allocation and monitors performance based on specific corridors within and across these regions, but also reviews total revenue and operating profit of each region. These regions frequently interact on transactions with consumers and share processes, systems and licenses, thereby constituting one global consumer-to-consumer money transfer network. The regions and corridors generally offer the same services distributed by the same agent network, have the same types of customers, are subject to similar regulatory requirements, are processed on the same system and have similar economic characteristics, allowing the geographic regions to be aggregated into one reporting segment. The global business payments (formerly consumer-to-business) segment processes payments from consumers or businesses to other businesses. The results of the Companys existing consumer-to-business operations as well as the newly acquired Custom House business have been combined in this segment as both are focused on facilitating payments. For further information on Custom House, see Note 3, Acquisitions. All businesses that have not been classified into consumer-to-consumer or global business payments are reported as Other. These businesses primarily include the Companys money order and prepaid services businesses. Expenses incurred in connection with the development of certain new service offerings, including costs to develop mobile money transfer services, new prepaid service offerings and costs incurred in connection with mergers and acquisitions are included in Other. During the three and nine months ended September30, 2009, the Company recorded an accrual of $71.0 million for an anticipated agreement and settlement with the State of Arizona. The anticipated agreement and settlement includes resolution of all outstanding legal issues and claims with the State and a multi-state agreement to fund a not-for-profit organization promoting safety and security along the United States and Mexico border. While this item was identifiable to the Companys consumer-to-consumer segment, it was not included in the measurement of segment operating profit provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation. For additional information on the settlement accrual, refer to Note 7. During the

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Form Type	10-Q
Amendment	false
Report Period	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 28, 2009
Entity [Text Block]
Trading Symbol	WU
Company Name	Western Union CO
Central Index Key (CIK)	0001365135
Company Fiscal Year End Date	--12-31
Accelerated Filing Status	Large Accelerated Filer
Common Stock Shares Outstanding		692,108,687