NEWS OF WESTERN UNION TODAY by pengxiuhui

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									                             NEWS OF WESTERN UNION TODAY

    Western Union issued its 2007 Annual Report (10K) on February 26, 2008. Total 2007 revenue was $4.9 billion,
a 10% increase over 2006. The financial information presented in its Annual Report appears to indicate that it
successfully navigated its first year as a public company. Ernst & Young, the company’s Independent Registered
Public Accounting Firm expressed an unqualified opinion on both the company’s 2007 financial statements as well
as on the company’s internal control over financial reporting (Pages 75-76). You can access the complete report at
www.westernunion.com or at www.sec.gov.
    The company continues to meet the minimum funding standards of the PBGC and does not plan to contribute
any money to the Western Union pension plans in 2008 (Page 64). As of September 30, 2007, the projected benefit
obligation was $426.0 million and the fair value of plan assets was $398.4 million. As might be expected, the amount
to be paid out in benefits is decreasing each year and the company estimates that trend will continue (Pages 101-104).
Here is some other interesting information contained in the report:
    • To conduct its international business, WU has 96 subsidiaries as of 12/31/2007 (Exhibit 21)
    • 83% of total revenue is derived from consumer-to-consumer transactions – (11% from “Domestic” transactions,
that is, “all transactions between and within the United States and Canada”; 7% from “Mexico” transactions, that
is “all transactions to and from Mexico”; and 65% is derived from “International” or all consumer-to-consumer
transactions other than “Domestic” and “Mexico”.) (Page 10)
    • 15% of total revenue comes from Consumer-to-business transactions and 2% fall into an “Other” category.
(Page 10)
    • In a “back to the future” moment, WU is now offering a lower-cost option of “Next Day” delivery of a “money
transfer available for payment the next morning after the money transfer is sent”. This option is available in certain
US markets for domestic service and also for some international money transfers including Mexico. (Page 11)
    • With labor contracts with the Communications Workers of America (CWA) expiring in August 2008, the
company has decided to “pursue decision bargaining negotiations with the CWA regarding the possible closure of
the Company’s facilities in Bridgeton, MO, St. Charles, MO and Dallas, TX”. (Page 31)
    • “In 2007, consumers transferred $64 billion in consumer-to-consumer transactions through WU in both cross-
border and intra-country transactions, of which $57 billion related to cross-border transactions.” (Page 12)
   • “Foreign Exchange revenues represented approximately 16% of WU’s total consolidated revenues for the year
ended December 31, 2007” (Page 44)




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