Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Western Union CO | d8k.htm |
| EX-99.1 - PRESS RELEASE - Western Union CO | dex991.htm |
 Western Union
Second Quarter 2010
Earnings Webcast & Conference Call
July 27, 2010
Exhibit 99.2 |
 Mike
Salop Senior Vice President, Investor Relations
*
*
* |
 Safe
Harbor This presentation 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 “will,”
“should,”
“would”
and “could”
are intended to identify such forward-looking statements. Readers of this
presentation by 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, 2009. 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: changes in immigration laws, patterns and other factors related to
migrants; our ability to adapt technology in response to changing industry
and consumer needs or trends; our failure to develop and introduce new products, services and enhancements, and gain market acceptance
of such products; the failure by us, our agents or subagents to comply with our
business and technology standards and contract requirements or applicable
laws and regulations, especially laws designed to prevent money laundering and terrorist financing, and/or changing regulatory or
enforcement
interpretations
of
those
laws;
failure
to
comply
with
the
settlement
agreement
with
the
State
of
Arizona;
the
impact
on
our
business
of
the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules
promulgated thereunder; changes in United States or foreign laws, rules and
regulations including the Internal Revenue Code of 1986, as amended, and governmental or judicial interpretations thereof; changes in
general economic conditions and economic conditions in the regions and industries
in which we operate; adverse movements and volatility in capital markets and
other events which affect our liquidity, the liquidity of our agents or clients, or the value of, or our ability to recover our investments or
amounts payable to us; political conditions and related actions in the United
States and abroad which may adversely affect our businesses and economic
conditions as a whole; interruptions of United States government relations with countries in which we have or are implementing material
agent contracts; our ability to resolve tax matters with the Internal Revenue
Service and other tax authorities consistent with our reserves; mergers,
acquisitions and integration of acquired businesses and technologies into our
company, and the realization of anticipated financial benefits from these
acquisitions; 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; failure to maintain sufficient amounts or types of regulatory capital to meet the
changing requirements of our regulators worldwide; our ability to maintain our
agent network and business relationships under terms consistent with or more
advantageous to us than those currently in place; failure to implement agent contracts according to schedule; deterioration in consumers’
and
clients’
confidence
in
our
business,
or
in
money
transfer
providers
generally;
failure
to
manage
credit
and
fraud
risks
presented
by
our
agents,
clients and consumers or non-performance by our banks, lenders, other financial
services providers or insurers; any material breach of security of or
interruptions in any of our systems; adverse rating actions by credit rating
agencies; liabilities and unanticipated developments resulting from litigation
and regulatory investigations and similar matters, including costs, expenses,
settlements and judgments; failure to compete effectively in the money
transfer
industry
with
respect
to
global
and
niche
or
corridor
money
transfer
providers,
banks
and
other
money
transfer
services
providers,
including
telecommunications providers, card associations, card-based payment providers
and electronic and internet providers; our ability to protect our brands and
our other intellectual property rights; our failure to manage the potential both for patent protection and patent liability in the context of a
rapidly developing legal framework for intellectual property protection; cessation
of various services provided to us by third-party vendors; changes in
industry standards affecting our business; changes in accounting
standards, rules and interpretations; our ability to attract and retain qualified
key employees and to manage our workforce successfully; significantly slower
growth or declines in the money transfer market and other markets in which
we operate; adverse consequences from our spin-off from First Data Corporation; decisions to downsize, sell or close units, or to transition
operating activities from one location to another or to third parties, particularly
transitions from the United States to other countries; decisions to change
our business mix; catastrophic events; and management’s ability to identify and manage these and other risks.
3 |
 Christina Gold
President & Chief Executive Officer
*
*
* |
 Overview
Continued momentum
Diversified portfolio
Americas improvement
Strong margins and shareholder payout
Global network, emerging opportunities
5
Foundation for future growth |
 Hikmet
Ersek
Chief Operating Officer
& CEO-Elect
*
*
* |
 Q2
Highlights Consumer-to-Consumer money transfer
Broad-based growth
Americas leading improvement
Continued growth internationally
Global Business Payments
Custom House expanded
U.S. bill payment declined as expected
Electronic Channels
Prepaid: >500,000 prepaid cards; >8,000 locations offering
cards Westernunion.com: >60% transaction growth in international
markets Account-based money transfer: >70% transaction growth,
20 banks Mobile: >60,000 locations enabled, 17 countries
7 |
 Consumer-to-Consumer
8
Revenue
Transactions
Q2 2010
(1)%
5%
Europe, Middle East, Africa, S. Asia
44% of Western Union revenue
EMEASA constant currency revenue increased
Transaction growth in European Union
Solid performance in Russia
Modest transaction declines in Gulf |
 9
Revenue
Transactions
Americas
1%
12%
32% of Western Union revenue
Momentum continued from recent quarters
Positive quarter for Mexico
Solid performance in U.S Outbound
28% U.S. domestic money transfer transaction growth; >30%
operating margin
Q2 2010
Consumer-to-Consumer |
 10
Revenue
Transactions
Asia Pacific
11%
14%
8% of Western Union revenue
Philippines transaction growth remained strong
China grew revenue 11% on 6% transaction increase
Opportunities in Japanese market
Q2 2010
Consumer-to-Consumer |
 Global Business Payments
11
Revenue
Transactions
Global Business Payments
9%
(6)%
14% of Western Union revenue
Custom House revenue increased to $28 million; investing to expand
Challenges in U.S. bill payments; integrating with Americas
Pago Facil continued positive performance
Q2 2010 |
 Restructuring Overview
Objectives:
Enhance speed and execution
Drive long-term growth
Realize cost efficiencies
Reduce layers and leverage cost structure
Leverage global centers of excellence
On-going commitment to process improvement
12 |
 Scott Scheirman
Executive Vice President
& Chief Financial Officer
*
*
* |
 Revenue
14
($ in millions)
$1,254
Consolidated revenue up 2%
or up 3% constant currency
adjusted
Transaction fees flat
Foreign exchange revenue
increased 15%, primarily due
to Custom House
$1,273
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
|
 C2C
Remittance Trends Total Q2 Western Union cross-
border principal of $17 billion
Increased 6% on reported basis
Increased 7% constant currency
Principal per transaction declined 2%
15
+9%
C2C Transactions
(millions)
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
|
 +9%
+2%
+1%
Transaction
Growth
Domestic
Price
Reduction /
Mix
Other Price
Reductions
Other Mix
Constant
Currency
Revenue
Growth
Currency
Impact
GAAP
Revenue
Growth
C2C Transaction and Revenue Growth
16
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
Q2 2010 |
 17
Operating Margin
Consistent operating margin
YoY excluding restructuring
•
Lower marketing
•
Custom House investment
and amortization
Operating margin excluding
restructuring improved 150
basis points from Q1 10
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
|
 Restructuring Update
18
~$80 million restructuring charges expected through 2011
Majority to occur in 2010
$35 million restructuring charge in Q2
~$10 million in Cost of Services
~$25 million in SG&A
~$50 million annualized pre-tax savings in 2012
~$10 million savings in 2010
$30 million to $40 million savings in 2011
Significant savings, enhancing
speed/execution, and driving growth |
 19
C2C Operating Margin
C2C operating margin
increased 150 basis points YoY
Lower marketing
Operational efficiencies
C2C operating margin
improved 170 basis points from
Q1 10
Expect full year C2C margin
expansion in 2010 compared to
2009 |
 20
Global Business Payments
Operating Margin
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
Segment margin declined YoY
Custom House investments
and amortization
Reduced volumes in U.S. bill
payment business
Custom House
Base business profitable
Slightly dilutive in 2010 due to
investment spending and
amortization
GAAP
Excluding
Custom
House |
 21
Financial Strength
YTD
Cash Flow from Operations Excluding Tax Deposit
$576 million
Refundable IRS Tax Deposit
($250) million
GAAP Cash Flow from Operations
$326 million
Capital Expenditures
$44 million
Stock Repurchases
$417 million
Dividends
$80 million
Cash Balance, June 30, 2010
$1.7 billion
Debt Outstanding, June 30, 2010
$3.3 billion
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
|
 2010
Outlook 22
GAAP revenue in a range of -2% to +1%
Constant currency revenue growth 2% higher than GAAP (0% to +3%)
GAAP EPS of $1.24 to $1.29, including $0.07 of restructuring charges
EPS excluding restructuring charges of $1.31 to $1.36
Constant currency EPS $0.02 higher
GAAP
cash
flow
from
operating
activities
of
$800
million
to
$900
million,
including a $250 million reduction due to the first quarter refundable tax
deposit
Raising constant currency revenue
and EPS, excluding restructuring
Note: See appendix for reconciliation of Non-GAAP to GAAP measures.
|
 Questions & Answers
Hikmet
Ersek
& Scott Scheirman
*
*
* |
 Appendix
Second Quarter 2010 Earnings
Webcast & Conference Call
July 27, 2010
24 |
 Western Union's management believes the non-GAAP 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. These non-GAAP
measurements include revenue change constant currency adjusted, operating
income margin excluding restructuring expenses, earnings per share and
earnings per share change excluding restructuring expenses, earnings per share
constant currency adjusted excluding restructuring expenses,
consumer-to-consumer segment revenue change constant currency
adjusted, international consumer-to-consumer revenue change constant
currency adjusted, consumer-to-consumer cross-border principal constant
currency adjusted, consumer-to-consumer principal per transaction constant
currency adjusted, Global Business Payments revenue change excluding Custom
House, Global Business Payments operating income margin excluding Custom
House, cash flows from operations excluding refundable IRS tax deposit, 2010
revenue outlook constant currency adjusted, 2010 operating income margin
outlook excluding restructuring expenses, 2010 earnings per share outlook
excluding restructuring expenses and 2010 full year effective tax rate outlook
excluding restructuring expenses. 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 measures to the most directly comparable GAAP
financial measures is included below. Non-GAAP Measures
|
 Reconciliation of Non-GAAP Measures
26
2Q09
3Q09
4Q09
FY2009
1Q10
2Q10
YTD 2Q10
Consolidated Metrics
Revenues, as reported (GAAP)
$ 1,254.3
$ 1,314.1
$ 1,314.0
$ 5,083.6
$ 1,232.7
$ 1,273.4
$ 2,506.1
Foreign currency translation impact (a)
60.1
31.1
(32.4)
119.5
(20.0)
16.1
(3.9)
Revenues, constant currency adjusted
$ 1,314.4
$ 1,345.2
$ 1,281.6
$ 5,203.1
$ 1,212.7
$ 1,289.5
$ 2,502.2
Reversal of Custom House revenues (e)
N/A
(7.9)
(22.9)
(30.8)
(25.6)
(28.5)
(54.1)
Revenues, constant currency adjusted, excluding Custom House
$ 1,314.4
$ 1,337.3
$ 1,258.7
$ 5,172.3
$ 1,187.1
$ 1,261.0
$ 2,448.1
Prior year revenues, as reported (GAAP)
$ 1,347.1
$ 1,377.4
$ 1,291.6
$ 5,282.0
$ 1,201.2
$ 1,254.3
$ 2,455.5
Revenue change, as reported (GAAP)
(7)%
(5)%
2 %
(4)%
3 %
2 %
2 %
Revenue change, constant currency adjusted
(2)%
(2)%
(1)%
(1)%
1 %
3 %
2 %
Revenue change, constant currency adjusted, excluding Custom
House (2)%
(3)%
(3)%
(2)%
(1)%
1 %
0 %
Operating income, as reported (GAAP)
$ 341.7
$ 281.5
$ 318.6
$ 1,282.7
$ 315.8
$ 311.0
$ 626.8
Reversal of settlement accrual (b)
N/A
71.0
N/A
71.0
N/A
N/A
N/A
Reversal of restructuring and related expenses (c)
N/A
N/A
N/A
N/A
N/A
34.5
34.5
Operating income, excluding settlement accrual and restructuring
$ 341.7
$ 352.5
$ 318.6
$ 1,353.7
$ 315.8
$ 345.5
$ 661.3
Operating income margin, as reported (GAAP)
27.2 %
21.4 %
24.2 %
25.2 %
25.6 %
24.4 %
25.0 %
Operating income margin, excluding settlement accrual and
restructuring N/A
26.8 %
N/A
26.6 %
N/A
27.1 %
26.4 %
Net income, as reported (GAAP)
$ 220.2
$ 181.0
$ 223.7
$ 848.8
$ 207.9
$ 221.0
$ 428.9
Foreign currency translation impact, net of income tax (a)
(4.2)
(12.0)
(0.5)
(7.4)
(0.7)
5.5
4.8
Reversal of settlement accrual, net of income tax benefit (b)
N/A
53.9
N/A
53.9
N/A
N/A
N/A
Reversal of restructuring and related expenses, net of income tax
benefit (c) N/A
N/A
N/A
N/A
N/A
22.4
22.4
Net income, constant currency, settlement accrual, and restructuring
adjusted $ 216.0
$ 222.9
$ 223.2
$ 895.3
$ 207.2
$ 248.9
$ 456.1
Diluted earnings per share ("EPS"), as reported (GAAP) ($
- dollars)
$ 0.31
$ 0.26
$ 0.32
$ 1.21
$ 0.30
$ 0.33
$ 0.63
Impact from restructuring and related expenses, net of income tax
benefit (c) ($ - dollars)
N/A
N/A
N/A
N/A
N/A
0.03
0.04
Diluted EPS, restructuring adjusted ($ -
dollars)
$ 0.31
$ 0.26
$ 0.32
$ 1.21
$ 0.30
$ 0.36
$ 0.67
Diluted EPS change, restructuring adjusted
N/A
N/A
N/A
N/A
N/A
16%
N/A
Foreign currency translation impact, net of income tax (a) ($
- dollars)
-
(0.01)
-
(0.01)
-
0.01
-
Impact from settlement accrual, net of tax benefit (b) ($ -
dollars)
N/A
0.07
N/A
0.08
N/A
N/A
N/A
Diluted EPS, constant currency, settlement accrual, and restructuring
adjusted ($ - dollars)
$ 0.31
$ 0.32
$ 0.32
$ 1.28
$ 0.30
$ 0.37
$ 0.67
Diluted weighted-average shares outstanding ($ -
dollars)
702.7
701.6
693.2
701.0
684.2
671.6
677.9
Cash flows from operations, as reported
$ 249.7
$ 351.7
$ 260.1
$ 1,218.1
$ 74.4
$ 251.7
$ 326.1
Reversal of refundable IRS tax deposit (d)
N/A
N/A
N/A
N/A
250.0
N/A
250.0
Cash flows from operations, tax deposit adjusted
$ 249.7
$ 351.7
$ 260.1
$ 1,218.1
$ 324.4
$ 251.7
$ 576.1 |
 Reconciliation of Non-GAAP Measures
27
2Q09
3Q09
4Q09
FY2009
1Q10
2Q10
YTD 2Q10
Consumer-to-Consumer Segment
Revenues, as reported (GAAP)
$ 1,065.5
$ 1,117.8
$ 1,113.7
$ 4,300.7
$ 1,030.2
$ 1,073.1
$ 2,103.3
Foreign currency translation impact (a)
55.2
24.4
(36.2)
101.3
(21.9)
15.0
(6.9)
Revenues, constant currency adjusted
$ 1,120.7
$ 1,142.2
$ 1,077.5
$ 4,402.0
$ 1,008.3
$ 1,088.1
$ 2,096.4
Prior year revenues, as reported (GAAP)
$ 1,145.4
$ 1,178.1
$ 1,094.3
$ 4,471.6
$ 1,003.7
$ 1,065.5
$ 2,069.2
Revenue change, as reported (GAAP)
(7)%
(5)%
2 %
(4)%
3 %
1 %
2 %
Revenue change, constant currency adjusted
(2)%
(3)%
(2)%
(2)%
0 %
2 %
1 %
Principal
per
transaction,
as
reported
($
-
dollars)
$
358
$
371
$
365
$
363
$
357
$
351
$
354 Foreign
currency
translation
impact
(a)
($
-
dollars)
24
12
(14)
12
(11)
2
(5)
Principal
per
transaction,
constant
currency
adjusted
($
-
dollars)
$
382
$
383
$
351
$
375
$
346
$
353
$
349 Prior
year
principal
per
transaction,
as
reported
($
-
dollars)
$
402
$
401
$
372
$
392
$
358
$
358
$
358 Principal per transaction change, as reported
(11)%
(7)%
(2)%
(7)%
0 %
(2)%
(1)%
Principal per transaction change, constant currency adjusted
(5)%
(4)%
(6)%
(5)%
(3)%
(2)%
(2)%
Cross-border
principal,
as
reported
($
-
billions)
$
15.9
$
17.0
$
17.1
$
65.0
$
16.1
$
16.8
$
32.9 Foreign
currency
translation
impact
(a)
($
-
billions)
1.1
0.5
(0.7)
2.0
(0.5)
0.1
(0.4)
Cross-border
principal,
constant
currency
adjusted
($
-
billions)
$
17.0
$
17.5
$
16.4
$
67.0
$
15.6
$
16.9
$
32.5 Prior
year
cross-border
principal,
as
reported
($
-
billions)
$
17.2
$
17.8
$
16.6
$
67.1
$
15.0
$
15.9
$
30.9 Cross-border principal change, as reported
(8)%
(5)%
3 %
(3)%
7 %
6 %
6 %
Cross-border principal change, constant currency adjusted
(1)%
(1)%
(1)%
0 %
4 %
7 %
5 %
International revenues, as reported (GAAP)
$ 875.0
$ 926.5
$ 943.4
$ 3,559.7
$ 862.0
$ 890.8
$ 1,752.8
Foreign currency translation impact (a)
53.5
22.6
(35.8)
96.0
(20.8)
15.7
(5.1)
International revenues, constant currency adjusted
$ 928.5
$ 949.1
$ 907.6
$ 3,655.7
$ 841.2
$ 906.5
$ 1,747.7
Prior year international revenues, as reported (GAAP)
$ 919.5
$ 950.6
$ 891.2
$ 3,605.1
$ 814.8
$ 875.0
$ 1,689.8
International revenue change, as reported (GAAP)
(5)%
(3)%
6 %
(1)%
6 %
2 %
4 %
International revenue change, constant currency adjusted
1 %
0 %
2 %
1 %
3 %
4 %
3 % |
 Reconciliation of Non-GAAP Measures
28
2Q09
3Q09
4Q09
FY2009
1Q10
2Q10
YTD 2Q10
Global Business Payments Segment
.
Revenues, as reported (GAAP)
$ 164.4
$ 171.3
$ 181.8
$ 691.7
$ 181.8
$ 179.3
$ 361.1
Reversal of Custom House revenues (e)
N/A
(7.9)
(22.9)
(30.8)
(25.6)
(28.5)
(54.1)
Revenues, excluding Custom House
$ 164.4
$ 163.4
$ 158.9
$ 660.9
$ 156.2
$ 150.8
$ 307.0
Prior year revenues, as reported (GAAP)
$ 179.4
$ 176.4
$ 174.2
$ 719.8
$ 174.2
$ 164.4
$ 338.6
Revenue change, as reported (GAAP)
(8)%
(3)%
4 %
(4)%
4 %
9 %
7 %
Revenue change, excluding Custom House
N/A
(7)%
(9)%
(8)%
(10)%
(8)%
(9)%
Operating income, as reported (GAAP)
$
44.1
$
41.6
$
35.7 $
171.9
$
37.6
$
33.8
$
71.4 Reversal of Custom House operating loss (e)
N/A
1.3
4.9
6.2
3.1
4.6
7.7
Operating income, excluding Custom House
$
44.1
$
42.9
$
40.6 $
178.1
$
40.7
$
38.4
$
79.1 Operating income margin, as reported (GAAP)
26.8 %
24.3 %
19.6 %
24.9 %
20.7 %
18.9 %
19.8 %
Operating income margin, excluding Custom House
N/A
26.3 %
25.5 %
26.9 %
26.1 %
25.5 %
25.8 % |
 Reconciliation of Non-GAAP Measures
29
2010 Revenue Outlook
Range
Revenue change (GAAP)
(2)%
1 %
Foreign currency translation impact (f)
2 %
2 %
Revenue change, constant currency adjusted
0 %
3 %
2010 Operating Income Margin Outlook
Range
Operating income margin (GAAP)
24.5%
25.0%
Impact from restructuring and related expenses (c)
1.5%
1.5%
Operating income margin, restructuring adjusted
26.0%
26.5%
2010 EPS Outlook
Range
EPS guidance (GAAP) ($ -
dollars)
$1.24
$1.29
Impact from restructuring and related expenses, net of income tax
benefit (c) ($ - dollars)
0.07
0.07
EPS guidance, restructuring adjusted ($ -
dollars)
$1.31
$1.36
2010 Full Year Effective Tax Rate Outlook
Range
Full year effective tax rate (GAAP)
22.5%
23.5%
Impact from restructuring and related expenses, net of income tax
benefit (c) 0.5%
0.5%
Full year effective tax rate, restructuring adjusted
23.0%
24.0% |
 Footnote explanations
30
(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. In addition, to
compute constant currency earnings per share, the Company assumes the impact of fluctuations in foreign currency
derivatives not designated as hedges and the portion of fair value that is
excluded from the measure of effectiveness for those contracts designated
as hedges was consistent with the prior year. (b) Accrual for an agreement to
resolve the Company's disputes with the State of Arizona and certain other states and to fund a multi-state
not-for-profit organization focused on border safety and security
("settlement accrual"). This item has been included in the selling,
general and administrative expense line of the consolidated statements of income,
and was not allocated to the segments. (c)
Restructuring
and
related
expenses
consist
of
direct
and
incremental
costs
associated
with
restructuring
and
related
activities,
including
severance, outplacement and other employee related benefits; facility closure and
migration of our IT infrastructure; other expenses related to relocation of
various operations to new or existing Company facilities and third-party providers, including hiring, training,
relocation, travel, and professional fees. Also included in the facility closure
expenses are non-cash expenses related to fixed asset and leasehold
improvement write-offs and acceleration of depreciation. For purposes of calculating the adjusted non-GAAP 2010 earnings
per share and full year effective tax rate outlook, the estimated 2010
restructuring and related expenses are net of an estimated income tax
benefit of $22 million. Restructuring and related expenses were not allocated to the segments.
(d)
The Company made a $250 million refundable tax deposit with the IRS in first
quarter 2010. (e)
Represents
the
incremental
impact
from
the
acquisition
of
Custom
House
on
consolidated
revenue,
Global
Business
Payments
segment
revenue and Global Business Payments segment operating income.
(f)
Represents
the
estimated
impact
from
the
fluctuation
in
exchange
rates
between
all
foreign
currency
denominated
amounts
and
the
United States dollar. Constant currency results exclude any estimated 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. In addition, to compute constant currency earnings per
share, the Company assumes the estimated impact of fluctuations in foreign
currency derivatives not designated as hedges and the portion of fair value that is excluded from the measure of
effectiveness for those contracts designated as hedges is consistent with the
prior year. |